The rental rates and capital value for office segment have remained steady inspite of healthy demand for CRE in the key markets of Bengaluru that was countered by supply keeping the cap rates range bound. Mumbai office market saw lower supply with better demand pushing vacancy down, but yields did not change significantly. The return expectation in this stable yield environment remained unchanged with cap rates being range bound.The industrial cap rates remained flat owing to stabilization of yields and asset values as sustained demand from the third party logistic (3PL) players, eCommerce, and fast-moving consumer goods (FMCG) sectors is countered by new supply in Mumbai.

“RBI has maintained an accommodative stand in the interest rates despite the inflation being at the higher end of the targeted tolerance band. Further, the GDP growth rates are revised to be higher for 2024, backed by the growth of private consumption, investment indexes, and trade merchandise, indicating a positive Marco-economic climate. This is indicative of the RBI to continue maintaining an accommodative stance in the short term which will continue to ensure ease of capital supply in the market, pushing up both consumer and institutional investments. It will provide an impetus to the real estate assets where cost of financing and mortgage rates are likely to remain stable, thereby supporting the demand in the market. Additionally, it will lend support to demand keeping capital value and NOIs growth trends constant in yield-based real assets due to both operational and financial costs being range bound, resulting in stabilised cap rates in most asset classes.”, says Ajay Sharma, Managing Director, Valuation Services, Colliers India.

“Given the yields of commercial, retail and industrial segments, the overall real estate sector will witness stable growth, and there will be increased interest in investments leading to significant capital flow to these assets.”, adds Sharma.

Also Read: MTHL to drive investments for resort homes in Alibaug

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By Varun Singh

On Wednesday the legislative assembly passed a bill that will benefit the investors in the real estate industry.

Investors form a major part of the real estate sector, who buy a property, and hold on it for a certain period and then sell so that they can make profits.

So as to boost the real estate sector and to let investors get a relief too, the legislative assembly passed a bill that will extend the duration to avail the stamp duty benefits from one year to three years.

Currently, if an investor or a homebuyer sellers the flat within a year, of registering the sale, then during the fresh registration the stamp duty charged is only on the difference of the amount between the two consideration.

For example, if one has bought an apartment for Rs 1 crore and paid a stamp duty of Rs 5 lakh at 5% on it during registration and then the same investor decides to sells the flat within a year for Rs 1.5 crore. Now, as the deal is being carried out within a year of payment of stamp duty and registration, the new buyer now instead of paying the entire stamp duty, will only pay the stamp duty on the difference.

The period of one year now has been extended to a period of three years by the legislative assembly.

According to a report as per existing norms, if an investor buys and sells the flat within a year, the investor gets concession in stamp duty. However, most real estate projects are getting completed in three years and the number of investors availing the benefits is very minimal.

“In the wake of the pandemic, the investors need to be given some relief. If the current one-year duration is extended to three years, then not just the real estate sector will get a boost but there will also be a rise in the sale of the houses which will lead to increasing the government’s revenue,” said Revenue Minister Balasaheb Thorat was quoted by Indian Express.

Dinesh Doshi, Managing Director, Tulsi Realty, said, “This is a positive step for the real estate sector as well as for the end user home buyer or investor , it is win win situation for buyer who wants to retain or trade as a tangible investment, I personally appreciate the step taken by Maharashtra govt.”

Also Read: 9672 home sales in December generated stamp duty revenue of Rs 758 crore

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By Varun Singh

In an interesting order MahaRERA told a developer that claims of a homebuyer cannot be denied, merely by saying that they are investors and ot allottees.

The reason for this, MahaRERA told the developer that since the complainants have invested their money in the MahaRERA project.

Kamal Agrawal and Babita Agrawal approached MahaRERA against Sakla Enterprises.

The complaints of the Agrawal family was that they wanted MahaRERA to direct the builder to execute the registered agreement for sale with them and hand over possession too.

The Agrawal family claimed that they booked five flats in Sagar Complex, Boisar, for total consideration of Rs 15 lakh for each flat.

The complainants claimed they have paid entire consideration and they were issued five separate allottement letters dated October 9, 2017 igned by the developer and was duly notarized.

As per the allotment letter the developer had agreed to handover the possession within a period of two years or else the developer had agreed to buy back the flats.

To support their claim the complainants even uploaded the allotment letter cum agreement signed y both the parties.

The developer resisted the claims of the complainant and stated that the complainants aren’t allottees but are investor.

The developer further stated the complainants approached the developer for investment purposes, for which the developer handed over blank allotment letters to them as a security.

The developer stated the content of the allotment letter show that the complainants are investor since they were earning returns by investing the amount.

MahaRERA, member Dr Vijay Satbir Singh, stated that provision section 13 of RERA provided that the promoter cannot accept more than 10% amount from the allottees without first registering the agreement for sale with the allottee.

Singh stated that, “The promoter should not have accepted the money from the complainants without first registering the agreements for sale with the complainants.”

MahaRERA told the developer it cannot deny the claims of the complainants meerely by saying that they are investor and not allottees since the complainants have invested their money in the registered project.

The developer was then directed by the developer to execute registered agreement for sale in accordance with the allotment letters cum agreements dated October 9, 2017, failing which the money paid by the complainant be refunded.

Also Read: Builder Knocks MahaRERA Door For Payments From Homebuyers

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