CREDAI hails infra status move for affordable housing

Welcoming Union Housing Minister Mr Ajay Maken's move to accord infrastructure status to affordable housing, realtors' apex body CREDAI called for extending similar treatment to the entire housing sector.

"We are happy that the Centre has come half way through on the developers and customers' demand for according infrastructure status to the housing sector to facilitate easy financing and other benefits and to give a much-needed boost to the most important need of a man after food and water," said Mr. Lalit Kumar Jain, National President of CREDAI.

CREDAI - Confederation of Real Estate Developers Associations of India - has over 10,000 members and associations in 20 cities across the country.

Mr. Jain said Mr Maken, in his speech in Mumbai at an international conference, has made a good beginning and "we hope he will move further in a positive direction."

CREDAI has been relentlessly campaigning for infrastructure status for housing sector, declaring it as an industry and creation of special housing zones with tax reliefs on the line of SZEZ," Mr Jain pointed out.

He expressed the hope that the State Government will take note of Mr. Maken's suggestion to increase FSI limits so as to encourage housing for slums that sprang up in central locations.

"We have been stressing that nobody would like to be displaced from the area where one has grown up and has his source of income there. Relocating such people - who are in millions - will only lead to added pressure on the existing infrastructure like travelling," Mr. Jain argued.

Half of Mumbai lives in slums and the solution to housing shortage is manifold. Mass rental housing for the benefit of people with transferable jobs and those who cannot immediately buy houses of their own, affordable housing for low income groups and economically weaker sections with enhanced FSI limits and special housing zones on the outskirts like Navi Mumbai and Thane and Mira-Bhayander are some of the solutions that CREDAI has suggested.

CREDAI has also put forth a plan of action to the government to come with realty reforms covering banking and administration. Affordable finance for affordable housing sector and speedy or single-window system of clearances, automation of the project clearance process to eliminate human interaction that causes corruption are among the steps that CREDAI suggested.

Mr. Jain expressed the hope that the Centre will follow-up with Mr. Maken's welcome move and announce some pragmatic and practical measures to give boost to the housing sector.

Housing, along with construction industry, contributes as much as 11% to the GDP and supports some 400 industries which can substantially multiply if supported with proactive policies. Hence revival of housing sector is vital for rejuvenating the national economy, he added.

For the original post visit: http://economictimes.indiatimes.com/markets/real-estate/news/credai-hails-infra-status-move-for-affordable-housing/articleshow/18347588.cms

Schools move south for more space

CHENNAI: When Irudaya Gandhi's husband left for Dubai last year, she had two options - continue to live with her children in their apartment in Royapettah or move closer to her parents' house in Chitalapakkam. For the 37-year-old the choice was obvious and she moved.

"Three years ago, the choice may not have been so easy because I have the children's education to think about. I realised there are many schools in the suburbs and decided to move," said Gandhi, whose children study at N S N Matriculation Higher Secondary School.

Five to seven years ago it was not uncommon to find families moving out of the suburbs in search of good schools in the city. Over the last couple of years, with the development in the suburbs, urban experts have been noticing a trend of reverse migration where families are moving back to the suburbs.

"While education is among the driving forces for this trend of reverse migration, there are other factors such as congestion in the city, pollution and skyrocketing real estate prices that are driving people to the suburbs," said Raj Cherubal, founder of Chennai City Connect, an NGO that works on infrastructure issues.

The lack of space and soaring real estate prices within the city have pushed people wishing to start schools outside the city limits. "To start a new school within the city is close to impossible. The management has to deal with outdated and unnecessary regulations regarding the size of the buildings and space, among others. The process is relatively hassle-free while setting up a school in the suburbs," he said.

Many schools have mushroomed in the southern suburbs such as Chromepet, Chitalapakkam, East Tambaram, Palavanthangal and Madipakkam. "When we set up our school in Nanganallur, there were hardly any educational institutions here. Within a decade, at least 10 recognised schools have come up," said K Vasudevan, principal of Prince Matriculation Higher Secondary School, which has more than 2,700 students.

With the development of the suburbs, connectivity to the city has also improved, drawing more students from the city. Although education is the driving force, families who have moved say staying in a suburb has other advantages. "Water is available in plenty. It is relatively less noisy, congested and polluted," says K Jeevan who moved to Indira Nagar two years ago after renting out his house in Vadapalani.

"Today, only a few banks are headquartered on Anna Salai. A large number of companies and factories are in Sriperambudur or on OMR, which were very different places 15 years ago. Residential clusters have started coming up here. With different types of schools coming up, people have no reason not to set up base here," said P Vishnucharan, correspondent of Shree Niketan Group of Schools in Tiruvallur.

Real estate prices have gone up by close to 40%, say builders. "The prices have touched Rs 3,200 to 3,500 per sq.ft. Despite the rise, the demand is high as the cost is less than the city," says Prakash Challa, national vice-president of real estate body CREDAI.

For the original post visit: http://timesofindia.indiatimes.com/city/chennai/Schools-move-south-for-more-space/articleshow/18327309.cms

Housing demand robust in tier II and tier III cities

Top six cities — Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad and Chennai saw housing sales drop by 16 per cent to around 2 lakh units during 2012 because of high property prices, weak business sentiment and costlier home loan, as per a report by property consultant Knight Frank but real estate companies say housing demand continues to be robust in tier II and III cities.

Many developers were reluctant to launch new residential projects as a result of which the launches in 2012 slump by 30 per cent. “The overall residential market in these cities was plagued by high property prices, relatively higher mortgage rates, weak business sentiments and a bleak employment scenario. This is reflected in the launches which declined by 30 per cent in 2012 in comparison to a fall of 7 per cent in 2011.

“It is true that the high interest rates and input cost kept housing prices elevated in 2012,” confirmed realty firm OMAXE CMD Rohtas Goel when contacted by The Pioneer. “Housing demand continues to be robust in tier II and III city as affordability is a key factor in these cities even for middle income group. Cities like Jaipur, Indore, Lucknow, New Chandigarh have always found flavour amongst the people due to infrastructure boost and employment opportunities in these cities,” he added.

Realty firm Parsvnath Developers Chairman Pardeep Jain admitted that demand for housing differed from cities to cities. “In my view demand in 2012 was good on city to city basis,” Jain added.

Similarly developers’ apex body CREDAI Chairman, Lalit Kumar Jain said: “While there could be different statistics on the real estate industry performance, it is certain that the general atmosphere is not at all conducive for great sale of properties. First the cost of realty has been shooting up due to a variety of reasons like the ever increasing cost of inputs like cement, steel and even labour”.

“Adding to this was the inordinate delays in getting approvals. The cost of funding for both the developer and buyer was and still is very high. This has adversely impacted the project execution and even sales. There are quite a few projects that have been halted for want of funds and ever increasing costs,” he added.

The six cities witnessed launch of 2,41,811 homes in 2012 as against 3,43,142 dwelling units in the previous year, the report said, adding that absorption declined to 2,09,787 units in 2012 from 2,49,127 homes in the previous year. "This can be clearly seen by closely studying the gap between the launch and the absorption numbers. This gap reduced to 32,000 units in 2012 compared to 82,000 and 94,000 units in 2010 and 2011, respectively," Knight Frank said.

The two biggest residential markets i.e. NCR and Mumbai account for almost 60 per cent of total absorption, followed by Bengaluru (13 per cent), Pune (11 per cent), Chennai (9 per cent) and Hyderabad (7 per cent). Recently Finance Minister P Chidambaram had asked the developers to sell their unsold inventory at a lower price.

On upcoming policy review by RBI Goel, said: “It is widely expected that RBI will reduce rates as it is imperative for rates to come down in view of the economic condition.” Parsvnath Developers Chairman quantified his expecation on rate cut when he said: “We expect RBI cut rate by 50 basis point.”

“We expect the RBI to take a pragmatic and practical view of real estate industry that contributes almost 5 per cent to the GDP (Coupled with the construction industry, the contribution amounts to 11 per cent ). RBI, unfortunately, has negative approach towards real estate and the risk weightage of 1.25 percent that it gives discourages commercial banks from funding our projects,” CREDAI Chairman expressed his views on policy rates.

“We, therefore, expect RBI to cut down the repo rate and facilitate a drop in the rates of interest. Instead of choking supply by restricting funds, RBI should take steps to ensure increased supply of housing stock and allow the demand-supply market scenario to function to the benefit of the ultimate buyer,” he added.

CREDAI Chairman also said that the sector needed immediate banking reforms to rejuvenate the real industry to revive the economy as realty supports 400 plus industries. Real estate can be the new growth engine for the economy and we are sure the planners, bankers and the government realizes this indisputable fact”.

For the original post visit: http://www.dailypioneer.com/business/124670-housing-demand-robust-in-tier-ii-and-tier-iii-cities.html

Chennai witnessing demand for luxurious penthouses

Chennai

Penthouses stand apart from other apartments by two factors – height and luxury. Typically, penthouses are located on the topmost floor(s) of the residential block, with exclusive private terraces and other luxury amenities. Height restrictions on residential buildings were recently lifted in Chennai and luxury, for those that can afford it, has never been a restricted commodity. A rise in the number of penthouses, presently being seen in the city, is an obvious indicator of a realestate boom.

Historically, penthouses have always stood as a symbol of economic growth. First conceived in New York the “Roaring Twenties” decade, they were built to accommodate the space shortage in highly developed urban areas, juxtaposed with the increasing affluence of those who were making big money in an economy that seemed rock-steady at the time.

Even as basic salaries stay put, affluence is increasing among the high-income groups, driving a demand for penthouses from those who don’t mind paying a little extra for the exclusivity. Developers who pay close attention to the whims of elite clients have woken up to the trend and are offering elaborate customisation, outfitting the deluxe pads with everything and the kitchen sink. “It is a segment that has been steadily picking up over a period of time,” says Kalpana Murthy, Associate Director of Residential Services at Cushman and Wakefield.

Kalpana has met several clients who are specific about their demands for a penthouse and do not want to settle for less. Although statistics that deal purely with the proliferation of penthouses are hard to come by, it is largely accepted that the trend is catching on in a rapid way. “Despite the increase, I wouldn’t say that there are as many penthouses in the city as there are in Bangalore,” says Kalpana, citing Bangalore’s expansive green cover and the perceived lack thereof in Chennai as a reason to blame. “Buildings are getting higher and it is the right time to promote the greening of our communities to prevent it from becoming a sterile concrete jungle,” she says.

Another deciding factor that has worked against Chennai’s favour has been the shortage of unique features at most penthouse projects, which the luxury clientele are normally keen on. In this regard, Chennai has only begun to shed its conservative thinking and key value-additions like smart home technology, automated security and surveillance systems, swanky automobile elevators and roof-top jacuzzis are yet to become viable, if not popular. Basics like water-proofing, tiling, fittings and fixtures, and space-allocation for the support-staff also deserve the highest attention. As Kalpana points out, “If the penthouse above my apartment has a rooftop swimming pool, I’ll naturally be concerned about my ceiling leaking out!”

Larger accommodation area (whether single or duplex), open-to-sky terraces and high-end specs are the three main characteristics of penthouses but Kalpana urges that there is a lot more to look into when you go shopping for one. “The expanse of the total built-up area and the private area is to be looked into. A minimum area of 500 square feet of private terrace is the norm. A built-up area of four bedrooms alone does not command the exclusivity of penthouse,” she says, adding, “When a penthouse occupies the entire floor, the non-FSI area is not a common area and yet it involves a certain amount of construction cost to the builder which has to be compensated,” Norms for Non-FSI garden space, terrace space, floor rise charges and PLC also influence prices but given the extra area that’s available, penthouses can be an interior decorator’s dream feels Kalpana.

Sandeep Mehta, who is the President of CREDAI and the Managing Director of Jain’s Housing and Construction Limited, believes that premium prices command the best facilities and in Saligramam, the uppermost floor has been converted into a luxury floor with penthouse apartments of 3,000 to 4,000 square feet in size. Sandeep acknowledges that builders have to try and upgrade specifications suiting to the needs of high-end buyers and stresses on the livability aspect. In paperback fiction, penthouses may have gained a reputation of being high-end bachelor pads and swanky lovenests but they are also ideal for families. “The proximity to nature, availability of breathable air, lack of noise and pollution give penthouses the warmth and feel of a villa of an independent house within an apartment block,” he says. At Savithanjali, a project by Marg Properties, located near Kelambakkam, penthouses are designed with no common-wall sharing. “Given the preferential location, penthouses have an in-built advantage because of the height. At Savithanjali, the penthouse at the 16th floor offers expansive views of the sea and of OMR at night,” says B Balaji, the spokesperson.

At present, things are getting heated with the announcement of Akshaya’s Abov, which will be Chennai’s tallest residential tower. The penthouse on the 38th floor at Abov could be Chennai’s most exciting one as yet. “The duplex apartment at 11,000 Square feet will have South India’s largest floor plate for a penthouse of 6,800 Square feet, offering the architect plenty of scope to play with form,” says Chitty Babu, Chairman and Managing Director of Akshaya Properties. The distinction could mark the first step in making Chennai a hot destination for luxury penthouses but high-costs ensure a limited supply and accessibility to only those with deeppockets. Maybe money can’t buy you love, but penthouses could well be the next best thing.

Source: Times Property, The Times of India, Chennai

Reforms in real estate key to GDP growth: Credai

Reforms in real estate sector hold the key to the Government achieving GDP growth targets, according to Pradeep Jain, Chairman, Confederation of Real Estate Developers Associations of India.

Tax reforms and measures to access low cost funds through external commercial borrowings are needed, he said.

He told mediapersons that the sector impacts more than 250 manufacturing and services industries including steel and cement.

A fillip to real estate development holds immense potential for boosting economic activity and job generation. Supporting the real estate sector is important for the Government to achieve growth targets of 7-8 per cent.

Also, residential development needs to be supported to address the housing needs of the public, he said.

In the coming Budget, Credai, the apex representative body of builders, hopes to be granted industry status, measures to bring down home loan rates and bank support for project development. Tax concessions for affordable housing and income tax relief will help, he said.

Prevailing policies are unfavourable to builders sourcing bank funds. They are now dependent on presales and internal generation. This does not help increase housing supply. Providing industry status to housing will help the builders access bank funds, he said.

External commercial borrowings have to be through the automatic route and not approval route, which is time consuming, he said.

Reforms in real estate sector relate to bringing down tax load on projects – often up to 50 per cent of the sale price is towards tax revenue, he said.

The delay in project sanctions is worsening – it takes 2-3 years for a project to be cleared in Delhi city, he said. In general the delays have gone up to 36-40 months from 18-24 months.

There are pockets like Punjab where projects are cleared in 48 hours and 15 days is the deadline after which projects are deemed to be cleared. Bihar and Gujarat are aggressive in speeding up clearances. Such initiatives are needed in more States, he said.

For the original post visit: http://www.thehindubusinessline.com/news/real-estate/reforms-in-real-estate-key-to-gdp-growth-credai/article4279859.ece

Chennai real estate market shows upswing

Chennai: City realtors couldn’t have asked for more. Despite concerns about high interest rates, rising input costs and delayed approval process, the residential segment in the city witnessed nothing short of a boom in 2012. Be it budget homes, gated communities, premium apartments, luxury villas or super-luxury houses, Chen­nai consumers got a lot of choices to explore this year.

Though the real estate scene across the country was bleak, Chennai market sustained its momentum driven by end-user demand and conservative approach by investors. “The year 2012 was an amazing year for TN developers,” said T. Chitty Babu, national secretary of the Confederation of Real Estate Association of India (Credai). “Driven by job opportunities created by the state, especially Chennai, through various government initiatives, there was a steady flow of outsiders coming in, creating the need for residential spaces,” he added.

Tamil Nadu has been creating over 1 lakh jobs for the last three years in succession through various government initiatives in infrastructure development. Interestingly, this was not limited to the IT sector which was seriously hit by recession. “IT jobs are only about 30-40 per cent; it was other sectors such as auto, ancillaries, telecom, textile, etc., that kept up the flow,” said Babu. Redrawing Chennai corporation’s limit to include more suburbs in the ambit of Greater Chenn­ai proved boon for developers promoting projects along the peripheral areas.

OMR, Sholiganallur, Ora­ga­dam, Porur, Perambur, Sriperumbudur, etc., got a new lease of life with land being mopped by realtors for bigger projects. Shooting rentals pushed for personal purchases that kept the market vibrant so much so that Chennai recorded the maximum price increase in property rates during the year at 16 per cent. But this was only in central business districts, clarified Nandakumar, member of Credai, Chennai. “Though the market did well against all odds, these oddities resulted in increase in input costs, shortage of labour and resources like sand, brick and cement,” he said. Input costs shot up by 12-18 per cent during the year, he added.

Revision in guideline values and stamp duty registration charges during the year may have swelled the government's kitty but have eroded profits, complain developers. “Though project launches kept happening throughout the year, such price hikes had an impact on the number of actual registrations," said Mu.K. Selvaraj, secretary of Builder's Associ­ation of India, Chennai.

Despite all odds, with Chennai being perceived as a safer place to live, a steady demand for residential spaces kept the market momentum, said Babu.

For the original post visit: http://www.deccanchronicle.com/121224/news-current-affairs/article/chennai-real-estate-market-shows-upswing

Slash housing prices, sell off real estate inventory: CREDAI to builders

Leading realtors' body Confederation of Real Estate Developers' Association of India (CREDAI) has asked its members to seriously consider selling off maximum inventories by reducing prices.

"The developer community is willing to consider the suggestions made by the Finance Minister P Chidambaram to unlock the value of the unsold stock. We have asked our members across the country to seriously consider the proposal to sell (the unsold stock) in maximum numbers," Credai national president Lalit Kumar Jain said in a statement.

The governing council of Credai had met at Kochi over the weekend where it was decided to consider the suggestion to sell maximum number of housing units by reducing the prices to the extent possible, it said.

Earlier, the developers' apex body had refused to offload the inventories at discounted rates saying that realtors would not be able to reduce the prices as they have invested heavily in the projects.

Meanwhile, Credai has also appealed to the finance ministry to look into the suggestions made by it to revive the real estate industry to rejuvenate the economy slow down, Jain said.

"We are happy at the positive manner in which the ministry has mooted proposals to help the developer community.

We are confident that it will also positively respond to the various constructing suggestions made by us," he said.

Credai has made certain suggestions including single window system of clearances to speed up the process, asking banks to reduce rates of interest for projects and buyers as well and create a congenial atmosphere to encourage affordable and mass housing, the release said.

Besides, the realtors' body has also suggested declaring housing sector as infrastructure or industry, provide certain tax exemptions, setting up of a comprehensive realty regulator and to provide special incentives for skill development, among others.

For the original post visit: http://www.indianexpress.com/news/slash-housing-prices-sell-off-real-estate-inventory-credai-to-builders/1039837/0

Pay more for that dream nest

Invest or hedge? That is the dilemma confronting Ramesh who wants to have a small, comfortable nest in the city. Just when he thought he would buy one some months ago, property prices went north as the input cost went up. “I was planning to buy a house in the city. But now I am having second thoughts as I really can’t afford one. I will perhaps wait and watch before zeroing in on a flat on the city’s suburbs instead,” he says.

According to a ballpark estimate by T Chitty Babu, national secretary of the Confederation of Real Estate Developers’ Associations of India, “The price per square feet of flats in the city has gone up by Rs 150 to Rs 200 due to the spurt in the cost of cement and other building materials.” Take cement. “We were expecting its price to decline to Rs 230 for a bag of 50 kg due to monsoon. On the contrary, it shot up to Rs 340 at the retail end. Ditto steel. A ton of steel, which was earlier priced at Rs 18,000, now costs Rs 58,000,” points out Babu. Manpower cost too has spiraled.

Though the cost of cement dipped a tad in the North and neighbouring Andhra Pradesh due to the monsoon, there has been no change in its price tag here, says R Radhakrishnan, former national president of the Builders Association of India and chairman of The Southern Builder’s Charitable Trust.

Sand too is acting pricey. After a court-imposed a ban on the existing sand mines, which triggered scarcity, Chief Minister Jayalalithaa ordered opening of new sand mines to meet the demand. Yet, the market has not cooled down. At present, fine sand costs around Rs 50 per cft as against the coarse variety, which is priced around Rs 32 per cft. Those who cannot afford fine sand buy the coarse one and put it through a sieve to get fine sand. In the process, 50 per cent of the material is lost, says Madhavan, a builder based in Ambattur.

All that has had a cascading effect on the end product. Among the worst hit are property builders. “We build flats after fixing the price and entering into an agreement with customers. Since the spurt in prices came after we struck a deal with customers, we can’t pass it on to them,” rues a spokesperson of Embassy Group, which has completed developing over 5.3 million sq ft of residential spaces. The rise in cement prices and building materials, including sand, has resulted in 10 to 15 per cent jump in the cost of constructing a building, he says.

Babu describes the cement price rise as artificial and blames the manufacturers for below capacity production. “Cement factories are producing only 40 per cent of the capacity, which is why there is a shortage,” he claims. As if that was not enough, cement firms are mulling over a fresh increase in price to factor in the hike in freight rates because of the recent jump in diesel prices. Can’t really expect a price cushion from them.

Small builders, like Ganesan of Sri Ganesh Builders, too are feeling the pinch. He says the rise in cement prices affected business for people like him in a big way. For, small builders often borrow money to build flats, hoping to make handsome profits during their subsequent sale. They are now struggling due to the big rise in construction cost and want immediate government intervention to arrest the artificial rise of cement prices.

According to real estate consultant K K Raman, the rise in material cost has hit the city’s suburbs harder because that is where a lot of construction is happening. Since flats are sold at fixed, pre-determined prices, they put pressure on the builders’ profit margins, he argues.

Then there is this nagging worry that builders could compromise on quality to offset the rise in cost - if they cannot pass it on to the buyer - to keep their profit margins intact. After all, developers are not doing it for charity, isn’t it, goes the logic. Radhakrishnan concurs. More than private constructions, it is the quality of workmanship at government infrastructure projects that could really be compromised, he fears.

The Builders Association of India intends to take up issue of cement cartel with Prime Minister Manmohan Singh, says Radhakrishnan. The association also plans to pressure the Union commerce ministry to waive excise duty on import of cement. “This will deflate the cement price and a 50 kg bag that now costs Rs 340 will slip to Rs 250,” he adds. “Last time when such a situation arose, the government intervened. We expect decisive intervention again,” says Babu.

So, invest or hedge? It’s a no brainer; people would rather hedge than invest in such a situation, right? Wrong. There has been no impact on the real estate sector here, claims CREDAI. “The demand for dwelling units continues. It won’t decline as the State is still facing shortage of houses,” adds Babu. Siva Krishnan, head of residential services (Chennai), Jones Lang LaSalle India, says Chennai is still the best city to invest in despite lack of quality land and rise in construction demand. “Land prices are rising as the supply of good land is limited,” he says.

Source: http://ibnlive.in.com/news/pay-more-for-that-dream-nest/292185-60-120.html

Builders' body asks FM to bring in sops for real estate

MUMBAI: After finance minister P Chidambaram asked realtors to sell off unsold flats at discounted prices, CREDAI, the apex body of real estate developers in the country, put the ball in the minister's court and said he should take immediate steps to boost housing stock supply through special incentives to the affordable segment.

Chidambaram had reportedly asked commercial banks to put pressure on developers to clear their inventory and lower the prices to get the economy running.

CREDAI national president Lalit Kumar Jain said the government has finally realized that "real estate kick-starts economic development". He described the reported figure of unsold housing stock of 500,000 in the country as "unrealistic". "CREDAI appeals to Chidamabaram to look at ways to bring down the cost of construction while taking steps to encourage buyers to have houses of their own," said Jain.

"We ourselves have asked member developers to start selling even at rock bottom prices as long as three month ago as nobody would like to block his capital by sitting on unsold stock and that too in a very high interest regime. On one hand, banks are discouraged to lend to real estate developers while on the other cost of fund from non-banking sources is prohibitively high," said Jain.

CREDAI has also volunteered to work with the Indian Banks' Association on the proposed committee on housing sector, which was mooted by the FM. The organization said for the past two years, liquidity in general and access to bank credits in particular has been restricted due to variety of risks. "Just as any other sector of economy, the real estate sector has also found it difficult to tap bank resources, bank credits," it said. It estimated that funding by commercial banks in the organized real estate industry is negligible.

Banks and finance companies are still wary of financing the real estate sector as RBI always keeps it in the negative list. "It is ironic that while home loans area top priority, the home developers are not," Jain regretted.

Referring to concerns over prevailing high prices of houses, he said it is akin to the typical egg-and-chicken scenario.

"The general sentiments in the market and economy are preventing buyers to move and developers are unable to bring down the prices because of very high cost of construction. Hence the demand-supply mismatch continues with the housing shortage crossing the 26 million mark," he said.The other key factors that add to the high cost of realty are the ever-increasing local municipal taxes, ready-reckoner rates for deciding stamp duty, cess and VAT. For instance, the burden on developers in Mumbai has risen on account of fungible area. The cost of labour has gone up by as high as 60% over the past two years, it said.

Source: http://timesofindia.indiatimes.com/city/mumbai/Builders-body-asks-FM-to-bring-in-sops-for-real-estate/articleshow/15610429.cms

CREDAI seeks PM intervention to curb black money in realty biz

New Delhi: CREDAI, the apex body for real estate developers, on Thursday sought Prime Minister's intervention to bring reforms for curbing black money in the realty sector.

The Confederation of Real Estate Developers Association of India (CREDAI) suggested reforms in four key areas that impact the real estate - administrative, land, tax and banking.

"The economic reforms initiated by Manmohan Singh as the Finance Minister over 20 years ago have seen the end of the Licence Raj, but the real estate sector is still governed by controls and increased controls," CREDAI President Mr Lalit Kumar Jain said in a statement.

He regretted that industry's demand for quick approvals of project through single-window clearnce system has received poor response from authorities like the Environment Ministry.

"We are victims of the system, not the beneficiaries! We hate this system which makes us look ugly. We curse every person who exploits us to give us a legitimate permission which we deserve instantly and without any illegitimate demand," Jain observed.

CREDAI has been pointing out that there are over 40 clearances that a developer is supposed to get which leads to human interaction with over 150 officials at various stages.

"Any delay at any stage obviously gives rise to 'greasing of palms' as the developer is always anxious to finish his project in time and avoid delays," Jain said, while appealing to the Prime Minister to urgently call for discussions on comprehensive reforms for realty sector.

Commenting on the recent White Paper on Black Money, CREDAI said: "It is a good attempt at focusing the nation?s attention on the issue, but it unfortunately picks on the real estate and deals with just a couple of issues like the Stamp Duty as though that is the only cause of the problem".

Jain lamented that the developer community has become a favourite punching bag for many whenever they talk about the national curse. "We too hate the system that labels us as crooks, cheats and breeders of black money," he said.

PTI

Source: http://zeenews.india.com/business/realestate/latest-news/credai-seeks-pm-intervention-to-curb-black-money-in-realty-biz_48720.html

Rupee depreciation makes real estate attractive to NRI

MANGALORE: The depreciating rupee may be a concern for the economy, but builders here are laughing all the way to the bank. The real estate here which was reeling under pressure due to high interest costs and inflation is suddenly active again from the past couple of weeks with a slew of new projects being launched. In the past three weeks 16 new projects totaling a minimum of a thousand apartments have been launched indicating robust demand and stepped up activity in the construction sector here.

PMA Razak, president, Mangalore Chapter of the Confederation of Real Estate Developers' Associations of India (CREDAI), told TOI that the falling rupee has made investment in real estate an attractive proposition for NRIs. Razak said an NRI who wanted to buy property here had indicated that NRIs were averse to buying property in the Middle East due to the uncertain climate and wanted to invest here as rupee had depreciated by 30% which made investment here attractive. Due to rupee depreciation, a Rs 60 lakh worth of property here now costs United Arab Emirates Dirham (AED) 3.75 lakh, which was costing AED 4.44 lakh just a month back.

The same holds good for all Middle Eastern currencies like Saudi Arabian Riyal (SAR), Bahrain Dinar (BHD) and Kuwaiti Dinar (KWD). Razak says 82% of the bookings in ongoing projects from his firm Plama Developers, of which he is the chairman and MD, are NRIs. A project becomes viable if there are 50% bookings and almost all Mangalore projects have close to 60% bookings,'' he said. Also, he notes that there is a strong demand from Mumbai-based Mangaloreans who want a second home in the city. Making investment attractive is the pre launch rates which are Rs 100 to Rs 50 less per sq ft.

At present the going rates for properties in the city range from Rs 4,000 to Rs 4,500 per sq ft and in the outskirts it is Rs 2,700 to Rs 3,500 per sq ft. Inland Infrastructure Developers MD Siraj Ahmed says the inflow of funds into property sector has increased by 25% from the earlier 50% due to rupee depreciation. At the same time not all money is flowing into real estate as NRIs perceive the property prices here are high from returns of investment point of view. So money is also getting locked in high interest deposits,'' said Ahmed whose majority clientele is NRIs.

Source: http://articles.timesofindia.indiatimes.com/2012-05-28/middle-east-news/31876715_1_nris-rupee-depreciation-dirham

CMDA recommends changes in parking in non-IT buildings

Chennai

Chennai residents are increasingly facing the problem of parking and even roads are not spared for use as parking slots in many areas. On a representation from the CREDAI to modify development regulations, the CMDA has recommended to the government for allowing car parking in the upper floors on non-IT buildings.

So far, parking in the upper floors above stilt floors was permitted in the case of IT buildings and hence the need to amend the development regulations. At the same time, the authorities prefer to prevent unauthorised conversion of parking space for other purposes either by way of collecting security deposit or any other means.

There are advantages while permitting parking space in the upper floors. The cost of construction may be reduced when compared to the construction of basement floors apart from limitations in digging. In some areas, the water table may be very high that will act as a barrier for construction of basement floors.

The CMDA’s monitoring committee of the regulatory authority while approving the suggestion felt that a charge shall be made by the developer/owner for the undivided share of the land/premises transferred by way of sale deed or lease deed executed.

The covered car parking may be allowed up to ground plus three floors above ground level in cases of residential and commercial developments and the same shall not be included in the computation of FSI and coverage. A parking security deposit at Rs 500 per sqm will be collected and refunded after three years of occupation of the building.

A certification for the designs to withstand the earthquakes, for the upper parking floors from the Class I structural engineer may also be insisted since Chennai happens to be in seismic zone III.

Industry sources say that this will go a long way in easing the vehicle parking congestion in residential complexes as well make way for the vehicular movement on roads in residential localities. The plan will have to be now approved by the government before amendment to DC rules.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/cmda-recommends-changes-in-parking-in-non-it-buildings

Real estate developers plan strike in October

Developers in the country may go on strike in October if the Government does not listen to their demands. The Chairman of the Mangalore chapter of CREDAI (Confederation of Real Estate Developers’ Association of India), Mr P.M.A. Razak, said this at the inauguration of a property fair in Mangalore on Saturday.

Mr Razak said they want the Government to resolve issues related to delay in sanctioning of projects, and to control the increase in price of cement and steel in the country.

Mr Razak said there has been an unnecessary delay of two-three years in the sanctioning of most projects in the country. In contrast, projects are sanctioned within a few days in many developing countries.

Delays in sanctioning would lead to the cost escalation of projects. He said nearly 45 per cent of cost escalations were on account of delays in sanctioning.

Referring to the increase in the price of steel and cement, he said the Government should set up a regulatory authority to control the price of these resources.

The CREDAI would approach the Prime Minister in June, seeking his intervention to solve various problems of the construction industry in the country.

CREDAI has tentatively decided to go on strike in October, if their demands are not met, he said.

Source: http://www.thehindubusinessline.com/industry-and-economy/economy/article3436029.ece

Tamil Nadu ranked second in transparency in realty sector

Chennai

The Real Estate Transparency Survey 2011-12 ranks Tamil Nadu second only behind Andhra Pradesh on various parameters while determining transparency. The state is followed by Maharashtra, Gujarat, NCR-Delhi and Karnataka on the transparency index of 20 leading Indian states. The study was conducted by the Confederation of Real Estate Developers Association of India (CREDAI) in association with property consultants Jones Lang LaSalle.

Of the five factors that have been taken into consideration while arriving at the ratings, Tamil Nadu also ranks second as far as availability of market information and reforms in urban local bodies are concerned. The report explains that there is easy flow of information in the sector through real estate portals, financial statements of listed developers and real estate indices, while several urban reforms have been carried out under the JNNURM. Colonel P Isaac, General Manager, Project Coordination of Appaswamy Real Estates says, “The interaction with customers helps us achieve this. At every stage of the deal, we update them with the materials used and their cost. We also ensure that the necessary governmental approvals are in place to proceed with buying and constructing a house or an apartment.”

“The study is the outcome of a survey, where the respondents were asked about parameters such as experience with government machinery, legal aspects, and time required for permissions and the levels of corruption. We have also studied government policies and their track record for deciding on factors such as inclusive and sustainable development,” says S Senthilkumaran, President, CREDAI, Trichy chapter.

In what would sound like music to the ears of buyers plagued by the prohibitive costs of the estimated super built-up area, more than 90 per cent of the developers have expressed their willingness to provide actual measurements for calculating saleable and carpet area to buyers and also agreed on the need to define a uniform carpet area and saleable area across the country. Mathews Joseph, Marketing Head of TVH says, “The market in Tamil Nadu is driven by the end user who wishes to spend his savings to buy his dream home; hence it has became prudent for them to transact with developers with a good reputation. Of late, we have witnessed new players in the real estate market, who are originally from other industries. They have good experience and now, we have some international real estate brands entering the market. These factors are also responsible for enabling the market to evolve.”

A majority of the developers are also not inclined towards disclosing the source of funds or the shareholding pattern in their projects. The report goes on to add that the proposed Real Estate Regulatory Authority will make the stakeholders more responsible towards their commitments and infuse more confidence, which is currently lacking in the industry.

Source: Times Property, The Times of India, Chennai

Chennai realty market on the rise

Chennai

After the downturn in 2009 that had spelt doom for the economy, though for a short while, property prices are on an upward spiral and the realty sector is now witnessing a boom reminiscent of the pre-recession days.

The demand for property in Chennai continues to remain high and recovery has been better than other major cities in the south such as Bangalore and Hyderabad. The many projects that have been launched in the suburbs in the last few months are a pointer to this fact.

The nature of investors in the Chennai market has a lot to do with its growth story. “The rise in property prices in Chennai has, perhaps, not been as steep as in other cities such as Mumbai and Bangalore. In cities like Mumbai, a lot of speculators work are at work in the market,” says Prakash Challa, National Vice President, CREDAI. “During the downturn, there was a drop in prices of about 15- 20% and postrecession, the pent-up demand was partly responsible for the quick recovery of the market in the city,” he says.

In the last decade, there has been a huge growth in the manufacturing and the service sectors in the city. While OMR (Old Mahabalipuram Road) has become a favourite destination for the new-age IT employees, old manufacturing centres on the outskirts of the city are finding new takers. “Most buyers in these areas are from the working class. Employees of the IT and manufacturing sectors consist of a huge chunk of buyers in these areas. They have the means and buying property here gives them proximity to their workplace,” says Wilson Mathews, Director, Sales and Marketing, True Value Homes, explaining the rising popularity of places like Mogappair, Ambattur and GST (Grand Southern Trunk Road).

Last month, Daimler India, the subsidiary of Stuttgart-based Daimler AG announced a new assembly line at their manufacturing facility in Oragandam. Perhaps, developments like these have given investors a reason to believe that these areas too will develop in a big way in the future. Mukesh Kumar Kothari, a city based businessman, has bought land on the outskirts hoping to capitalise on the growth in these areas. “It is difficult to buy property within the city. Hence I have bought a plot on the outskirts because I feel in the coming years, the price will increase and there will be more development in these areas,” he says.

The price rise in the city is being ascribed to the increased price of land. The recent hike in the guideline value has only added to the cost. “In 2005, the cost of land in Sholinganallur was Rs 1.5 crore per acre. By 2008, it suddenly rose to Rs 20 crore per acre,” says Prakash, who feels that the cost of construction has gone up adding to the cost of land. “In 2005-06, the cost of construction was Rs 1000 per sq ft, while it has now increased to Rs 1600 per sq ft. The steel price has drastically increased, so much so that there has been a jump of over 50% in the last three months. The mining sector is riddled with scams and there is some kind of cartelisation in the cement and steel industry. The cetheir ment manufacturers capacity \ in the have last doubled three years, though the production is only one-fourth of the capacity,” he says.

The increase in the cost of construction might be indicative of some kind of artificial shortage in the steel and cement industry, though Alex Jacob, a citybased Structural Designer feels that the price hike is a result of increased construction activities. “So much construction is happening and even with higher prices, people are buying,” he says.

While all this might give consumers some reason to buy, it has not gone down well with everyone. With political instability, property prices in places like Hyderabad have not seen a major hike and many are looking towards Hyderabad as well.

Srinath Narayanan, a citybased Chartered Accountant, feels that places like Coimbatore and Hyderabad might be a better bet. “Chennai market is not accessible for all investors anymore. With the available resources, it is simply not possible to invest in areas like Kodambakkam or Mylapore,” he says.

But investors are hopeful of development on the outskirts as well. “Though I belong to Chennai and definitely plan to live here, I might buy property elsewhere for investment purpose, but what I buy in Chennai, is for my residential purpose,” says Varadharajan, a city-based banker, who has bought a flat in Chrompet.

“The place was considered to be quite far from the city initially. But now, with the city limits expanding, these areas are also well equipped with necessary infrastructure,” he says.

It is a well-known fact that the Chennai real estate is predominantly an end-user’s market. “This very fact gives the realty scene in the city some stability. People are buying in spite of high prices because they know that if they don’t decide now, the prices will increase even further. Infrastructure is shaping up well, with the metro rail work and other development activities. NRIs, originally from Chennai, are now hopeful of the potential that the city holds,” says Wilson. The investors might also agree.

Written by Arjun Narayanan

Source: Times Property, The Times of India, Chennai

More than half of Chennai’s population lives in rented houses: Census

Chennai

More than half the city’s population lives in rented houses. With fewer independent houses and cost of apartments becoming prohibitively high, a majority of the people have not been able to buy their own homes, a fact reflected by the final census data on Tamil Nadu that was released in the city on Tuesday.

The census figures showed that only 47.2% of Chennaiites stay in houses they own. The report, which covers 11.06 lakh households in Chennai district enumerated in the census exercise in May and June last year, shows that there has been a tiny 0.1% rise in the number of people in Chennai who own their homes. In the 2001 census, 47.1% of people in the city stayed in houses they owned.

“Anybody who does not pay a rent to stay in a place is considered to own the accommodation,” said C Chandramouli, registrar-general and census commissioner. The census does not differentiate between squatters and legitimate property owners.

The figures are indicative of a huge rental market in the city that caters to more than 50% of the population that comprises non-permanent residents. Many Chennaiites own more than one apartment in the city.

Additional houses are rented out to migrant employees who have moved into the city in recent years. Many of them are in the IT and manufacturing sectors. In the past year, the state created one lakh additional jobs, of which Chennai garnered the largest share. Many of these jobs were taken by people below 30 who did not own houses.

There has nonetheless been a significant growth in purchase of apartments by migrants, said T Chitty Babu, secretary, Confederation of Real Estate Developers’ Association of India.

“Few people from outside the city purchased apartments in Chennai till 2005,” he said. “But a recent study by the association revealed that almost 40% of new home buyers are affluent migrants, most of whom are youngsters employed in the IT and manufacturing sectors, up from 10% to 15% four years ago. This trend is visible across Chennai.”

The relatively low cost of land in neighbouring Kancheepuram and Tiruvallur districts has drawn home buyers to those areas. In Kancheepuram, 70.5% of households are occupied by owners and 67.8% of the Tiruvallur population lives in their own homes.

In rural areas like Ariyalur (91.4%) and Dharmapuri (90.5%) the percentage of owner-occupied houses is even higher.

Source: The Times of India, Chennai

Chennai Corporation in talks to relax housing area norms

Chennai

In a move aimed at curtailing the rising number of unauthorized constructions in the city, the Chennai Corporation on Friday met officials from the Chennai Metropolitan Development Authority (CMDA) and Tamil Nadu Housing Board (TNHB) to request them to reduce the minimum area required to construct a residential building in the city.

Urban planning experts and builders though are a bit wary. They say the move may create practical difficulties in adhering to building regulations and would increase congestion.

The civic body wants the CMDA to reduce the minimum area required for construction of a residential house in a detached building area from 80 square metres or 861 square feet, to 50 square metres or 538 square feet. Civic body officials say a smaller area will make individual houses more affordable to middle class families.

“Land prices even in congested parts of the city are in the range of 1 crore per ground. An 861 square feet plot costs more than 35 lakh, but a 538 square feet plot will be around 22 lakh only,” said a corporation official, seeking to justify the move would make housing affordable for many.

A detached building area is any residential locality in the city where a minimum set back area has to be maintained between buildings. Builders do not show any interest to redevelop small plots. “Small plots usually fail to get clearance beyond two storeys, so it can’t house too many families,” says a corporation official.

Corporation officials say this regulation leads to many residents resorting to unauthorized constructions. “They just go ahead and construct beyond the permitted floor space index, do not leave setbacks or construct extra floors illegally,” says a corporation engineer. The civic body sealed 71 buildings after March 2011. If rules are relaxed, more people will adhere to the rules, they feel.

Urban planners say this move is just a temporary solution to address the acute shortage of land. “Now even a detached area will start looking like continuous building area,” says M G Devasahayam, an urban planning expert. “It will surely lead to more congestion, the existing development control regulations will have to be reworked and it does not comply with the second master plan of the CMDA,” he said.

Private builders too agree. “Even if the setback space on three sides is reduced from 1.5 metre to 1 metre, we are left with just 260 square feet. Though FSI will allow us to build 800 square feet, we cannot achieve it in two floors,” says N Nandakumar, secretary of the Confederation of Real Estate Developers’ Association of India (Credai), Chennai chapter.

He said the quality of housing will be another casualty. “This rule must apply mainly to the narrow lanes in old parts of Chennai, and if more then two dwelling units are allowed to reside, what is the kind of footprint we are likely to create?” asks Nandakumar.

Urban experts urge the government to study the land still left unused that could provide space for housing in the city for the economically weaker sections. CMDA and housing board officials remained non-committal because they feel the plan is currently in very initial stages.

Source: The Times of India, Chennai

Trichy witnesses increased interest from home buyers

Chennai/Trichy

It is aptly called the heart of Tamil Nadu, and located in a manner that a trip to either the southernmost tip of Tamil Nadu, Kanyakumari or the capital, Chennai is approximately a six-hour drive.

In many ways, the simple life that the city professes – has inspired many from different parts of the State, to invest in the city and its charms. Their dream home, after all, needs to be located in a land of peace. And Trichy is the ideal destination for more reasons than one.

TRANSPORT

It is one of the most accessible cities, connected by a vast network of roads, railways and air routes. It is also home to the South Indian Railway Company, established during British rule. Frequent train services to all parts of South India begin here and domestic flights fly in and out of the city regularly.

INDUSTRIES

Trichy is home to industrial giants like Bharath Heavy Electricals Limited (BHEL), Indian Ordnance Factory, Trichy (OFT) and Cethar Vessels, have helped the city grow in providing employment and better living standards. “Trichy has grown massively in the industrial sector and many companies are looking at invest in the city today,” says S Senguttavan, CEO, G K Industrial Park, “Currently, there are eight companies from Malaysia, Chennai and Coimbatore that operate in the park and we planning to open more in the future.” Such industries and parks help in the improvement of the city’s outskirts.

CENTRE OF LEARNING

One of the most important features of the city is its many educational institutions. It is said that even during the British era, these institutes were recognised as renowned centres of learning. Colleges like Bishop Heber and St Joseph’s were established during this period. Nationally renowned institutes like Indian Institute of Management (IIM), National Institute of Technology (NIT), Bharathidasan Institute of Management (BIM) and Sastra University are all located in the city and provide many opportunities to the student community. “As an institution, NIT has grown over the years and ensured quality education to students who come here from different parts of the country,” says Dr S Sundarrajan, Director, NIT.

HEALTHCARE

Trichy is well and truly a healthcare hub. Leading medical stalwarts like Vasan Health Care, Kaveri Medical Hospital (KMC) and the recent foray of Cethar Vessels into the scheme of things, has made the city an ideal destination for the healthcare industry. Dr S Chandra Kumar, Managing Director, KMC, believes that the city has grown at a significant rate in its health standards over the last five years. “We have performed over 100 renal transplants, 500 open heart surgeries and a joint replacement surgery too,” he says, “We also offer health services for rural people at subsidised rates and have plans to promote better health standards in general.”

A RETIREE’S RETREAT

Trichy is highly regarded as a retirement paradise and many elderly folk have settled down here, enamoured by its peace and quiet. People like investing in small houses or flats and thus get some rest in this city, which is still a small town at heart. P Arunachalam who has recently launched with a retirement gated community – Ponni Delta in the city believes that factors like low congestion and less pollution make Trichy a preferred retirement destination. “Trichy is a Tier Two city that guarantees a peaceful retired life at an affordable price,” he says, “We thus came up with the concept of providing high-end facilities like security, housekeeping and health services apart from other factors that promote peaceful lifestyle to senior citizens.”

A HUB OF INVESTMENT

Given all these favourable qualities, Trichy has now become a major destination for real estate players to set up base. Many gated communities, high-rise apartments and villas are now being constructed. “The construction of large-scale gated communities has led to the growth of the city and has increased its land and market value,” says B Senthil Kumar, Secretary, CREDAI Trichy who feels that the most important reason behind big investments is the fact that the city is one of the safest regions in the State. “The government should now develop water and transportation facilities to ensure that uniform development takes place,” he signs off.

Source: Times Property in The Times of India, Chennai

Domestic buying sees a rise in real estate market

Once NRIs lapped up almost 40 p.c. of apartment units sold

Bangalore's real estate market, which once saw non-resident Indians (NRIs) lapping up almost 40 per cent of the total apartment units sold, has seen a change now, according to industry insiders.

With the increasing number of domestic buyers investing in the realty sector now, the NRIs share in total sales of apartment units has dropped to about 20 per cent in the recent times.

Bangalore's market has been attracting investments from the expat Indian population, mostly Kannadigas, residing in the U.S., West Asia, Singapore, Australia and New Zealand.

Approximately 30,000 apartment units are sold in Bangalore annually now. In fact, 2007 recorded the highest number of units ever sold annually at 40,000 units.

“The percentage of local buyers investing in apartment units has gone up from 60 per cent to almost 80 per cent now with increasing disposable income with families as well as accessibility to housing loan,” Shankar Sastri, Secretary of Confederation of Real Estate Developers' Associations of India (CREDAI), Bangalore, told The Hindu.

Bangalore as a real estate market, he said, always interested the NRIs so much so that many developers had representative offices in the U.S., West Asia and Singapore even two decades ago.

Besides, the realty market here had done well in the last two years due to stability, pricing, safety, said R. Nagaraj Reddy, president-elect of CREDAI, Bangalore.

He added that Bangalore has always remained a “preferred city” among those wishing to invest in housing sector.

This trend of change in the profile of apartment buyers is being seen in housing applications too, says State Bank of India Chief General Manager (Bangalore circle) Ashwini Mehra.

“There are more number of applications from domestic buyers now though there is a continued interest from NRIs residing in the U.S. and West Asia. Nearly 20 per cent of the total housing loan disbursement has gone to NRIs,” he said and added that nearly 80 per cent of the applications in the NRI category came from those residing in the U.S. and West Asia.

T. Venkatesh Babu, a strategist with a leading Bangalore-based real estate company, said that the number of NRI buyers may have come down, as those regions are facing economic uncertainty.

“People tend to conserve cash in such situations and may not like to make high value housing investment,” he said. Also, the speculative buying in Bangalore-market has come down significantly after the 2008-2009 crash, he said.

Interestingly, a large number of domestic purchasers of apartments in Bangalore are from Delhi, Bihar, Uttar Pradesh, and partly from Hyderabad and Chennai. “Most housing loan applicants are young service sector professionals, including those in IT and ITES, who may have come to work here,” Mr. Mehra said.

He also acknowledged that Bangalore real estate sector may have benefited from the Telangana crisis with some spill-over coming here, though a major share has gone to Visakhapatnam.

Source: http://www.thehindu.com/news/cities/bangalore/article2937502.ece

CREDAI property fair draws positive response

Chennai

The 3-day event by Confederation of Real Estate Developers’ Association of India (CREDAI), Tamil Nadu members, drew an encouraging response from prospective home buyers in and around the city. The property fair showcased 250 plus properties in Chennai Trade Centre from developers across the city.

Over 32,000 people visited the event and the volume of business generated by 65-member developers during the show has been estimated to have crossed Rs 100 crore. The developers are quite upbeat over the outcome of the show and the impending potential for housing market in and around the city for the rest of the year.

Housing finance companies and banks have issued in-principal sanctions for home loans worth Rs 150 crore on submission of basic documents during the show. The encouraging response for home loans could be attributed to the flexibility in terms of lending rate and concessions extended during the show. Even the property developers have offered sops by way of reduction in rates for those who were buying during the event.

According to CREDAI sources, residential properties in the price range of Rs 50 lakh to Rs 4 crore including high-end homes drew good response. The properties showcased during the show varied from Rs 15 lakh to Rs 10 crore covering apartments, villas and developed plots. A majority of the response was from the end users who have evinced keen interest to invest in residential properties.

The number of exhibitors was more than previous years and the layout was done in such a manner to give a thrust to the concept stalls over traditional cubicles. This has given a better image of the exhibits in a market where fierce competition dominates today.

In order to create awareness about the intricacies involved in the home buying exercise, leading law firm Rank Associates has been engaged to provide free legal advisory services to prospective buyers. CREDAI Tamil Nadu has a consumer redressal mechanism and the grievances received have been passed on to the committee for quick processing.

As the overall response to the Fairpro 2012 has exceeded CREDAI’s own expectations, they are contemplating to extend the show to NRIs as well in future in select countries like Middle East, Singapore and UK.

Source: http://content.magicbricks.com/credai-property-fair-draws-positive-response