By Varun Singh

It is Diwali and we will also talk about positive aspects of real estate industry.

So in the month of October 2021, the sales that took place had surpassed home sales figures of October 2020.

But now as per an analysis of registration data by SquareFeatIndia it has come to the fore, that not just sales but also more rental deals took place in the month of October when compared to October 2020.

While taking about home sales, let’s discuss how many home’s were registered in October 2020, the number stood at 7928.

Whereas, in October 2021, the number of home sales registered stood at 8576.

Ok a lot has been spoken about home sales and the comparison between October 2021 and 2020.

Let’s now talk about the story that we are taking about.

There are two types of rental agreements that are registered with the state government’s Department of Registration and Stamps.

They are physical registration and e-registration

Physical Rental deals in October 2021, stood at 3087, the same in October 2020 was 2715.

Which clearly shows that even physical rental deals in October 2021 were more than that of 2020.

Not only this, e-registration of rental agreements stood in October 2021 at a total of 21158.

Whereas e-registration of rental agreement stood at a mere 19835 in October 2020.

This shows that more e-rental agreements were registered in October 2021.

More people took homes on rent in October 2021 than that of October 2020.

Leave and license agreements are registered with state department and even this generates revenue for the government.

For example via physical registration in October 2020 revenue generated was Rs 5.08 crore.

Which in October 2021 was 5.81 crore, via e-registration the revenue in this month stood at Rs 3.52 crore.

In October 2020 the revenue via e-registration of Rental agreements stood at Rs 3.11 crore.

Finally not just more agreements were registered in last month, but also more revenue was generated for the state government.

Also Read: At Rs 94 lac/month Is this North India’s Biggest Rental Deal?

The post More Rental deals took place in Oct 21 than Oct 20 appeared first on Square Feat India.

By Varun Singh

e-Registration is the new norm when it comes to registering of rental agreement.

In Feb 2014 the number of rental agreements registered online stood at a mere 12.

The number of e-Registration of rental agreements grew to 21,500 in Feb 2021.

This is the second highest ever e-Registration of leave and license agreement in the recorded history of Mumbai’s real estate market.

The most number of e-Registration of leave and license agreement was in December 2020.

In the month of December 2020 a total of 22,438 rental agreement were registered online.

If attention is paid to the details, then since 2016, the number of online registrations of leave and license agreements begun showing rise.

But why is the number of online registration of leave and license going up?

Yashika Rohiira of Karma Realtors says, convenience is the most important reason why people opt for e-Registration of rental agreements.

“In online registration the agent comes to the home of the tenant or the landlord with the laptop and the required machines. There exists already a format, it is available in soft copy and once filled can be uploaded easily online,” said Yashika.

Meanwhile, the rental market has performed better in the top luxury market.

Amidst various industry reforms in the last seven years, multiple new trends emerged in the Indian residential real estate market. Strikingly, housing rentals in key luxury markets saw better y-o-y growth between 2014-2020 than average capital prices in the same localities.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “The average rentals for a house of minimum 2,000 sq. ft. size in the top 7 cities’ key luxury hotspots rose anywhere between 17% to 26% in 2020, as compared to 2014. In the same period, average capital prices in these micro-markets saw a maximum rise of 15% – and some even saw a marginal dip.”

“ANAROCK data also reveals that from 2014 to 2020, rental prices in the top luxury markets saw consistent y-o-y growth – averaging between 3-6% annually.” 

Anuj Puri, Chairman – ANAROCK Property Consultants 

According to ANAROCK in 2017, various structural reforms like RERA and GST were implemented. After this period, most localities only saw a marginal capital price rise averaging between 1-3% – while rental markets continued their growth run.

Also Read: Builders To Sell Homes Online.

The post e-Registration Of Rental Agreement From 12 In Feb 2014 Grows To 21.5k In Feb 2021 appeared first on Square Feat India.

By Varun Singh

Real Estate market is not all about carrying out home sales. A major protion of the the real estate industry comprises of rent.

If any given month in the city of Mumbai 5,000 home sales take place then over 15k rent agreements are also registered.

The less spoken rent market of Mumbai has shown an exponential growth over the past few years.

In January 2017, the rent market stood at 15,106 agreements. The figure jumped to 22,514 in January 2021.

The figures includes both leave and license (physical) as well as leave and license (e-registration).

Data accessed by SquareFeatIndia shows that over the years, rental agreeemnts being registered has increased.

The other important fact that has cone out to the fore is that more people prefer digital registration over physical.

Also Read: Physical registration of Leave & License re-starts

For example, in the month of January 2017, a total of 7,566 rental agreements were physically registered.

This figure is more than 7,540 e-registration of leave and licenses that took place in 2017.

“Work from home has shot up for many sectors.Hence instead of employees going daily to office, they prefer a good house where they can stay and work both peacefully. This has happened more post covid19 . Post covid lot of people found the need for space,hence they decided to buy and take house on temporary rent till they get possession. One category, is of people who after liking a gated community, move in the complex to take experience before buying. Even pre covid ,over grown families decided to move out and take properties on rent. The preferred choice is mostly a gated community with amenities.”

Rajiv Jain, Ruchika Shelters

However, in January 2021, the physical registration came down to 3,791, whereas the e-registration figures grew to 18,723.

Also Read: Physical registration of leave and license agreement stopped till end of July

This also goes to show that many opting for an apartment on rent prefer the digital mode of registration over personally visiting the office and registering the agreement.

Meanwhile, if one has to gauage the rise in sheer number of homes, offices and shops being put on rent, then it has also increased drastically.

“A lot of re-sizing of homes and offices has taken place due to work from home. In 2021, most of the crowd has come back to the city, resulting in the residential apartments being leased out quickly. There has also been a slight reduction in the rents of commercial units, which is the actual reason of growth in the rental market. With schools and colleges opening soon, there’s a spurt expected in the rental market by April 2021.”

Yashika Rohira, Karma Realtors

In January 2017, total 15,106 rent agreements were registered, the figure grew to 19,064 in 2018.

It has been since then seeing a rise in January 2020 a total of 21,174 rent agreement were registered.

Finally in January 2021, the number grew to it five year high at 22,514 rental agreements being registered.

Also Read: Nov 2020 Sees Highest Rental Deals Since 2012

The post Rent Market In Jan 2021 Sees A 5 Year High appeared first on Square Feat India.

By Varun Singh

On Tuesday the Inspector General of Registration and Controller of Stamps, Omprakash Deshmukh issued a circular allowing physical registration of leave and license agreements.

A complete halt was brought in by the department via a circular in April on physical registration of the leave and license agreements. It was to be followed till July 2020.

Also Read: Physical registration of leave and license agreement stopped till end of July

However, on June 2, Deshmukh issued a fresh circular which amended the earlier clause.

The new circular allows sub registrars in all the offices of registration to carry out physical registration of leave and license. The registration can be carried out if other documents for registration are less in numbers.

When contacted Deshmukh confirmed that the circular has been issued by his office. He said. “All the offices that are open for registration in Mumbai and other cities will follow this order. Offices in containment zones are still not open to public.”

In May, ten offices of registrations were opened in the city of Mumbai.

According to Adv Vinod Sampat, President, Registration Fee & Stamp Duty Payers Association, there are many restrictions as regards to e-registration of Leave & License agreements. To begin with document has to be in the format prescribed by the department.

“The present draft of Leave & License as suggested by department may not take into consideration various clauses like lock in period, penalty clause, NOC of CHS, use of premises by employees of Corporates,” he said,

Sampat says, now parties can register the Leave & License agreement with their clauses by approaching the Sub registrar subject to their being a vacant time slot with Jt. Sub Registrar. This is a good move for one and all.”

Meanwhile, the circular emphasizes that registration office staff should encourage and inform people to use the facility of e-registration.

In the month of May, only in Mumbai a total revenue of Rs 18.12 crore was collected via registration. Of this 990 documents registered were that of leave and license and all were via e-registration.

The May revenue was 4 lakh per cent more than the money collected in April which stood at Rs 43,574.

Also Read: May month’s registration income in Mumbai jumps 4 lac % from April

The post Physical registration of Leave & License re-starts appeared first on Square Feat India.