New home launches in NCR decline 39% in January-March

The property market of the National Capital Region (NCR) saw a 39 per cent fall in the new launches of apartments to about 7,600 units during January-March period compared with the previous quarter, global realty consultant Cushman & Wakefield said today.

In the top eight cities of the country, Cushman & Wakefield (C&W) said that an estimated 38,000 residential units were launched in the first quarter of 2013, registering a marginal fall of about 2 per cent over the previous quarter.

These major eight cities are -- NCR, Chennai, Kolkata, Bengaluru, Mumbai, Hyderabad, Pune and Ahmedabad.

"National Capital Region (NCR) witnessed the launch of approximately 7,600 units, a decline of 39 per cent compared to the previous quarter," C&W said in a statement.

The new launches were concentrated in the suburban locations of Gurgaon (66 per cent) and Noida (34 per cent) with over 80 per cent of units catering to the mid-range segment.

"Due to the subdued demand, Noida witnessed a steep decline in new launches at close to 70 per cent and ended up being the primary contributor for the overall decline in number of launches in the NCR," the consultant said.

Chennai, Mumbai, Hyderabad and Ahmedabad also witnessed decline in new launches of residential units by 39 per cent, 3 per cent, 89 per cent and 62 per cent, respectively.

"New residential units launched more than doubled in Bengaluru and Pune in the last quarter, increasing by 144 per cent and 109 per cent, respectively," C&W said. Kolkata saw a modest increase of three per cent.

On prices, the report said that most locations in Delhi witnessed stable capital values in both mid and high-end segments.

However, capital values in high-end segment in South Central Delhi witnessed 15 per cent appreciation over last year due to limited supply and high demand.

Among the suburban locations, Gurgaon saw higher appreciation due to the high demand from both end-users, the workforce working in the various companies located here and investors, coupled with the limited project completions.

Gurgaon saw a change in the capital values in the luxury/high-end and mid-end residential segment at 29 per cent and 18 per cent respectively over last year, C&W said.

"The country's residential market witnessed some vibrant launch activity during the quarter despite the sluggish economic environment. Funding will remain a major challenge for developers while executing these projects," C&W executive managing director (South Asia) Shveta Jain said.

"Capital values have largely remained stable across most micro markets except for some key locations in NCR, Chennai and Bengaluru. Prices are expected to remain largely stable in the coming months as developers will be looking mainly to boost sale and increase cash flows in projects being currently executed," Ms. Jain added.

source:- http://profit.ndtv.com/news/industries/article-new-home-launches-in-ncr-decline-39-in-january-march-322962

Real Estate Bill seeks to protect middle class interests: Ajay Maken

The Real Estate (Regulation and Development) Bill, which was cleared by the Cabinet on Tuesday, seeks to protect middle class interests, Minister for Housing & Urban Poverty Alleviation Ajay Maken said on Wednesday.

The Bill, which seeks to protect those buying homes from being conned by real estate developers, will be introduced in the next session of Parliament, Mr Maken added. Parliament is likely to meet for its Monsoon Session in July.

The Real Estate Bill aims to create a real estate regulator to protect home buyers from unscrupulous property developers. It has provisions for tough penalty for putting out misleading/deceptive advertisements about projects. The proposed legislation also makes it necessary for builders to get all important clearances before they sell apartments.

Mr Maken told NDTV that 22 states, including key states of Gujarat and Madhya Pradesh, governed by the BJP, have supported the Bill. However, some states like Chhattisgarh have opposed the Bill, he added.

Real Estate is a state subject and the cooperation of states is necessary to push the key legislation, Pranay Vakil of Knight Frank told NDTV.

Highlighting the significant provisions of the Bill, Mr Maken said property developers need to put project money for a specific project.  (Read: What Real Estate Bill means for you in 10 simple points)

"They can't raise money for project A and then use it to buy land for another project, say B," he said.

This will prevent developers from diverting funds meant for construction and ensure timely completion of projects, analysts said.

Mr Maken said the Bill would make it mandatory for real estate agents to register them with the regulator.

source:- http://profit.ndtv.com/news/industries/article-real-estate-bill-seeks-to-protect-middle-class-interests-ajay-maken-323042

Mumbai housing prices soar by 66 per cent in 4 years

New Delhi: Housing prices have increased by an average 66 per cent in Mumbai over the last four years on account of steady demand and rising input cost, according to property consultant Jones Lang LaSalle (JLL).

The increase has been even higher at 70 per cent in Thane and 74 per cent in Navi Mumbai.

"The cumulative price escalation figures for Mumbai, Thane and Navi Mumbai represent the highest among all cities in India," JLL India Managing Director (West) Ramesh Nair said in a statement.

Gurgaon and Bangalore saw price appreciation of 52 per cent and 46 per cent, respectively, during this period.

"Residential property prices in Mumbai have increased steadily after the correction seen post the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent," Nair said.

On reasons for price rise, Nair noted that the demand for investment residential properties and end-user homes in the country's financial capital has remained stable.

That apart, the consultant attributed the prices movement to limited supply of clear land, reduction in new launches between 2011 and 2012 middle and high interest rate scenario.

"In the Indian city which has for years carried the unwholesome reputation of being the most over-priced in terms of residential real estate valuations, there is no relief in sight for aspiring home buyers.

"Over the last four years, property valuations in the financial capital have increased by an average of 66 per cent. All 'expert' predictions over the last 3 years, of an imminent correction have proved to be wrong," Nair observed.

source:- http://profit.ndtv.com/news/industries/article-mumbai-housing-prices-soar-by-66-per-cent-in-4-years-322161

Connecting the dots' in the global real estate market

I t's no news that Chinese real estate developers and property buyers are flooding into the US - something that's currently, to many Chinese, a better investment than gold - and it's bringing more than just cash into the market.

The increasing interest from the Chinese in US real estate is also creating new business opportunities.

Jason Chen, chairman of Shenzhen World Union Properties Consultancy Co Ltd, a listed company that provides real estate consulting services in China, sees it as a trend.

"So the idea is to team up with local agents in the US - even smaller ones (compared to the size of World Union) - to serve the growing number of Chinese buyers here," said Chen, who recently attended a business forum in New York to make new business connections.

"That is the trend now," said Chen, adding he has visited New York three times this year and has a few agencies in mind.

World Union employs some 15,000 people across China who broker all kinds of properties. With a market share of 3 percent, its revenue last year was close to $34.4 billion with the sale of some 300,000 apartments across China, and profits that make him look beyond the home market.

"We won't really operate solo here [in New York], and this won't be money-making in the beginning, but we see this as a trend that is still developing and we want to be part of it," he said. "We just need to find a trustworthy partner and feed them with our Chinese client source list."

Chen's plan is echoed by industry leaders in the US real estate market who call it a way to "bridge a gap".

"In various So Cal communities, we've experienced an upward trend in Chinese buyers purchasing our homes and the majority of those are not local Chinese buyers but those coming from China," said Brian Harrelson, a senior project manager in the Southern California office of Toll Brothers, a US luxury homebuilder.

As part of their strategy to attract more Chinese buyers, Toll Brothers has teamed up with realtors for joint events to provide more buyer services, including reimbursing home buyers' international airfare on their Fly-and-Buy program.

"There are a lot of agents in China," said Harrelson, "so we're thinking: how can we empower them by providing supporting information in Mandarin and develop relationships between the local and Chinese agents so they work together?

"If we can bridge that gap, there will be more potential buyers in the pool, rather than just what we see domestically," he said.

Chinese buyers accounted for 18 percent of the $68.2 billion that foreigners spent on residential properties in the US during the 12 months ending March 31, according to the National Association of Realtors.

Chinese shoppers are known for being "cash-buyers" and for buying expensive homes, spending a median price of $425,000, almost double the median of what other foreign buyers pay.

In California, the Chinese are the third-largest foreign buyers of real estate, after Mexicans and the Filipinos, according to Realtor.org.

"The growing number of international buyers in Los Angeles has been an ongoing trend," said Sally Forster Jones, an agent with Coldwell Banker International in Los Angeles.

"More and more of the high-end deals are going to international buyers, many of which are coming from China. This is a growing market so it makes sense to do everything possible to tap into the needs of this demographic," said Jones.

"I think that the willingness of local and international real estate agencies to work together can bring positive results," said Jones. "We are really living in a global marketplace and real estate is a very collaborative business where connections are everything."

In New York, Chinese are second only to wealthy Dominicans in purchasing homes.

"It's clear that wealthy Chinese are looking for good investments and NYC real estate is especially appealing to them, so it's nice to have brokers working together to connect those dots, especially when there are language barriers," said Todd Dumaresq, a marketing manager with Toll Brothers City Living in New York.

In late June, US developer Tishman Speyer and China's largest residential developer Vanke broke ground on a joint venture to build 655 luxury condos on the San Francisco waterfront.

Vanke is one of World Union's clients in China, so, according to Chen, it makes sense for them to follow their big client to the US.

"Our business follows our clients - most of whom are major Chinese commercial and residential developers in China - and they are all looking into the US now," Chen said.

source:- http://usa.chinadaily.com.cn/opinion/2013-08/08/content_16883091.htm

GIVING WIVES A SHARE IN ANCESTRAL PROPERTY

The new proposed amendment in the alimony law related to inherited property, clarifies the rights of women and outlines the various situations where the wife can claim ownership of the husband’s ancestral property. VIBHA SINGH reports

    Divorce is a trauma, which a woman faces both, socially and financially. Keeping the welfare of women in consideration and to give them their rightful due, the union cabinet has proposed a change, which aims to give the wife a share in the inherited or inheritable marital property of her ex-husband. This change comes at a time when laws related to division of property in divorce cases are confusing, at best. Shobha Jagtiani, a prominent laywer in the city, explains how "Ancestral property is an important concept in Hindu law. The law recognises a wife as a member of the Hindu Undivided Family (HUF) but does not give her the status of a co-partner, whereas the husband and the children are co-partners and have the right of partition in the HUF and to take their share. In contrast, a wife can get her share only upon a partition taking place at the insistance of the co-partner. If the HUF assets are undivided and not partitioned, then she cannot claim a share." 
    Fazaa Shroff-Garg, another city-based lawyer, opines that "The amendment bill refers to inherited or inheritable marital property, becoming a subject of compensation for a wife upon divorce. On studying the complete text of the bill, it will become clear as to how the aforesaid properties will be divided between the husband and the wife. Whether the compensation payable to the wife will become a charge on the aforesaid properties or whether the aforesaid properties will be divided between them, is to be considered. Further, if the divorce is the triggering point for the division of properties, then the future second marriage of the husband and the welfare of the second wife and his future family, will need to be considered." 
    At present, the USA is undergoing an alimony reform wave, as can be seen from the Florida amendment, which is challenging the concept of 'permanent alimony' by one spouse to the other, till remarriage. The proposal in the bill is similar to the present 'permanent alimony' prevalent in the US. The bill also raises several questions about inherited property, vis-a-vis joint family property, ancestral property and properties in joint occupation as residence. The proposal to give the court the discretion to determine the quantum needs to have some guideline principle with regards to the share. There cannot be unbridled discretion, which does not give any guidance to the court or the litigants. 
    It has been stated in the amendments that the rightful share of a woman in the inherited property will be decided by the court. Garg adds, "I am certain that the existing equitable principles, relating to 'standards', which the woman is used to during the marriage and before the marriage, will also be applicable for deciding the share of the woman in an inherited property." 
    Jagtiani agrees, saying, "In many HUFs, substantial property is in the form of inherited property and not self -acquired property. For example in cases where it is in the business of the HUF. In such a scenario, if a divorce were to occur, the wife would not be entitled to any property whatsoever. Thus, the proposed amendment is welcome in this regard." 
    However, the bill at present, does not talk about any nexus between the length of the dissolved marriage and the share to be given to the woman upon divorce. The lawmakers have to consider that in a situation such as 'no fault divorce' or 'short-lived marriage', if the properties have to be divided between spouses, then the just and equitable principles will be seriously impaired whilst doing justice to both the spouses. 
    Garg opines, "Some formula of the duration of the marriage, remarriage of spouses, dissolution of the marriage due to adultery by the female spouse, etc., should proportionately affect the share entitlement, which needs to be prescribed. The aforesaid observation is with the intent of having a balanced amendment, and not to have excessive provisions, which may be classified as being 'gender biased'." 
    It is also proposed in the bill that self acquired property be considered as an asset class held by the husband, for computing the share of the wife upon the dissolution of the marriage. The complex web of trust and companies holding the properties indirectly will be invoked and spouses will 'launder away' their properties to insulate any claims from the spouse in the event of a potential divorce in the future. 
    Jagtiani feels that if divorce is sought merely for obtaining the husband's ancestral property, it may result in the marriage being turned into a commodity. Also, considering that a wife shall be entitled to take a share in the HUF property, her children from this marriage may lose out on the ancestral property, if the wife takes away a chunk of the property and then remarries. This would also mean that the 'ancestral property' shall start getting depleted, instead of being passed on from generation-to-generation. The cabinet had decided against the earlier proposal of equal share for wives in their husband's property in divorce cases, since it was felt that division of inherited property may lead to further litigation. 
    Garg concludes by saying that "The bill will have to be seen in light of existing provisions for maintenance, under the Criminal Procedure Code read with tacit provisions of the Domestic Violence Act, related to protection against eviction of women and provision for maintenance and alimony, as upheld in various decisions. Unlike popular belief, the provisions of the bill will not remain restricted to Hindus but will affect the parties who register their marriages or marry under the Special Marriage Act, irrespective of their caste, religion or ethnicity. The review of the legal position with regards to the law relating to alimony was overdue and the move by the government is progressive and necessary." 
QUICK 
BYTES KEEPING THE WELFARE OF WOMEN IN CONSIDERATION AND TO GIVE THEM THEIR RIGHTFUL DUE, THE UNION CABINET HAS PROPOSED A CHANGE, WHICH AIMS TO GIVE THE WIFE A SHARE IN THE INHERITED OR INHERITABLE MARITAL PROPERTY OF HER EXHUSBAND. 
THE LAW RECOGNISES A WIFE AS A MEMBER OF THE HINDU UNDIVIDED FAMILY (HUF) BUT DOES NOT GIVE HER THE STATUS OF A CO-PARTNER, WHEREAS, THE HUSBAND AND THE CHILDREN ARE COPARTNERS AND HAVE THE RIGHT OF PARTITION IN THE HUF AND TO TAKE THEIR SHARE.

source:- http://epaper.timesofindia.com/