Real Estate Newsletter - November 21 to 25, 2016

India Infoline News Service | Mumbai | November 25, 2016 18:08 IST

This week, Indiabulls Real Estate approves buy back of up to Rs 540 crore. IIFL presents a weekly snapshot of all the major happenings in the Real Estate space, nationally and internationally.

Top News
Demonetisation move: Dissecting the impact on the real estate sector
While the demonetisation initiative by the Central government means further delays in ongoing real estate projects due to the massive cash crunch, it also paves the way for a cleaner and more transparent real estate industry in the time to come. Developers will now look for alternate funding arrangements while end-users or investors will wait for more certainty before making any move. Let’s delve deeper into the impact of this change on the real estate sector in short to long term.
Short-term: Market to undergo a slowdown  
The sudden ban on Rs 500 and Rs 1000 currency notes has resulted in a situation of limited or no cash in the market to be parked in real estate assets. This has subsequently translated into an abrupt fall in housing demand across all budget categories in the short term. While a share of this dwindled demand could be attributed to distractions caused by the move, many industry experts opine that this is a result of a trust deficit in the market. Money has become dearer, leading to cautious spending and minimal transactions. Read More
Wait for the Real Estate Regulator Bill (RERA) or Buy Now?
Across the country, aspiring property buyers are waiting for RERA - or the Real Estate Regulation Act - to be implemented by the States. Time and again, it has been stated that the consumer must consider the reputation of the builder prior to taking a decision to buy a property/asset which is likely to remain for generations. On implementation of RERA, only builders with sound reputations will remain in the fray - this probably its most important function in protecting consumer rights and interests. Once RERA becomes a enforceable law, it will change the ways in which residential housing projects are planned, offered, sold and possessed across India. Property buyers will no longer need to worry about unfair contracts, delayed possessions, non-notified alterations in building plans and other risks. The aim of RERA is to make real estate purchase simpler by bringing in better accountability and transparency. In doing so, it will also infuse a lot more confidence among buyers – who, at the end of the day, should feel as comfortable about investing in a home as they are about buying gold. Read More
Demonetisation pushes Indian investors to look at Dubai properties: PNC Menon
Narendra Modi, PM of India recently announced the demonetization of existing notes of Rs 500 and Rs 1000 in India effective November 9, 2016. This move will prompt people to shift to electronic transactions and the use of plastic money will increase. The impact on the economy will be significant as a large part of the black economy would become part of the Indian economy. This is certain to reflect in next year’s GDP figures. The attack on black money through demonetization is also expected to boost government revenues in a significant way. With a large part of unaccounted cash coming into the system, a lot more money will become accountable and taxable than was the case earlier. Read More
Indiabulls Real Estate approves buy back of up to Rs 540 crore
The Board of Directors of Indiabulls Real Estate Limited has approved the proposal of Buy-back of up to 6 rore fully paid-up equity shares of Rs 2l each of the Company, being ll.8% approx. of existing paid-up share capital of the Company, (Maximum Buy-back Offer Shares) at prevailing market price on Stock Exchanges subject to a price not exceeding Rs 90 per equity share (Maximum Buy-back Offer Price), which represents a premium of approx. 30% to the closing price of the BSE and NSE, on the last trading date prior to the date of the board meeting i.e. November 23,2016, aggregating up to an amount not exceeding Rs 540 crore, being less than 10% of total paid-up share capital and free reserves of the Company (Maximum Buy-back Offer Size), from the open market through the Stock Exchange mechanism, in accordance with the provisions contained in SEBI (Buy Back of Securities) Regulations, 1998. Read More
Domestic Newsmakers
JLL India elevates Naveen Nandwani to MD - Bangalore and Kochi
Leading international property consultancy JLL India announced the appointment elevation of senior leader and industry veteran, Naveen Nandwani as Managing Director, Bangalore & Kochi. Earlier on board as Executive Director at Cushman & Wakefield, he joined JLL India last year as National Director - Markets, South India. An acknowledged and highly-connected commercial real estate expert with 19 years of industry experience, Naveen Nandwani looks forward to assuming leadership of one of JLL's strongest real estate teams in India. JLL Bangalore has been instrumental in securing several innovative high-value deals in the market, with several high-profile landmark deals to its credit. Read More
Demonetisation sparks a debate over its impact on the Indian economy: Kamal Khetan
The Government’s recent demonetisation of higher currency notes has sparked a debate over its impact on the Indian economy. This step is one of the most forward-looking and transformational reforms undertaken by Prime Minister Narendra Modi. Targeted towards reducing the unaccounted money in the system, this step will significantly improve transparency in the sector and thereby push growth to an upward trajectory. It will be well supported by other recent reforms undertaken by the Government in the real estate sector like Real Estate Regulation Act (RERA), GST, REITs and reforms related to FDI. Read More
Decoding GST and Real Estate Regulation; RICS releases white paper on GST and RERA
RICS, the world’s leading self-regulatory professional body for qualifications and standards in land, property, construction and associated environment issues, in association with RICS School of Built Environment, Amity University today announced the release of a white paper titled ‘Decoding GST and Real Estate Regulation’. The document was released by Rajiv Ranjan Mishra, Joint Secretary (Housing), Ministry of Housing and Urban Alleviation, Government of India in the presence of Sean Tompkins - Global CEO, RICS, Amanda Clack FRICS - President, RICS & Partner & Head, Infrastructure - E&Y and Sachin Sandhir, Global Managing Director, Emerging Business, RICS.  The white paper explores the nuances of the impact of GST and Real Estate (Regulation and Development) Act on the real estate sector and examines specifically if there are any issues that could cause ambiguities or discrepancies in the sector. Read More
Central Government extends support to states to expedite land acquisition for roads
Minister of State for Road, Transport and Highway Mansukh Mandaviya said the central government has taken a string of steps to expedite land acquisition for road and highway constructions.
Several steps have been taken to address issues that lead to delay in land acquisition, and various directions have been issued, which are as under: 
  • Determination of the amount of compensation in consonance with the relevant provisions contained in the Right to Fair Compensation and Transparency in Land Acquisition in Rehabilitation and Resettlement Act, 2013 with effect from 01.01.2015;
  • Providing the necessary technical and organisational support to the revenue authorities in the State Government;
  • Appointment of additional officers as Competent Authority for Land Acquisition and Arbitrator for expediting acquisition; Read More


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