Do You Have RERA Compliance Queries?

Complying with RERA provisions requires greater level of transparency, objectivity and professionalism, as it has enhanced the accountability and liability of real estate developers, property consultants etc. Therefore it is essential for real estate organizations to put in place a structured RERA compliance management process Developers need to streamline their processes, form teams and train employees on the new regulatory provisions. . However there are lots of confusion regarding RERA compliance by real estate organizations. On the other hand, NIREM with the mission to empower the Indian Real Estate sector is working to make the regulation as simple as possible.

If you are a real estate promoter or a professional into or planning to join the RERA compliance team and have any query regarding the RERA compliance, please send us your queries to info@nirem.org. Our Regulatory Compliance Expert Mr. Sumit Jha would respond to your queries. Please mail specific and relevant queries by 30^th April, 2017.

Developers scramble for Real Estate Act compliance: Hindustan Times

The year 2017 will be significant for homebuyers harassed for years because of property sale agreements lopsided in favour of developers, violation of building rules and delayed home delivery. The consumer-friendly Real Estate Regulatory Act (RERA), which kicks in from May 1, has pushed developers to sign agreements with buyers and take other initiatives which they claim are RERA compliant.

Mr. Sumit Jha, CEO, NIREM says that developers are putting up special RERA compliance teams to monitor projects and ensuring timely completion of projects, training sales professionals on customer interface post RERA and upgrading their agreement to sell. Read more at http://www.hindustantimes.com/real-estate/developers-scramble-for-real-estate-act-compliance-but-buyers-remain-sceptical/story-ixAlP94x4d8ZnFiHJJ2bpL.html

10 Key Facts About Smart Cities You Should Know!

Union Urban Development Minister Honb’le Mr. Venkaiah Naidu announced the first list of 20 smart cities at a press conference on Thursday in Delhi.

The cities were chosen on the basis of feasibility, smartness of proposal, performance indicators among others and awarded marks out of 100. The Minister said, ‘Today marks a historic landmark in annals of urban development as we get to know the first batch of 'Smart Cities'.

Referring to the investment opportunities in the backdrop of the recent financial crisis, he said, “People are searching for safe investments. I offer smart cities as the safest investment because land is going to be there, structures are going to be there, so the returns are assured.”

The first 20 smart cities are: Bhubaneshwar, Pune, Jaipur, Surat, Kochi, NDMC (New Delhi), Ahmedabad, Jabalpur, Vizag, Solapur, Devangere, Indore, Coimbatore, Kakinada, Belgaum, Udaipur, Guwahati, Chennai, Ludhiana and Bhopal.

Here are key facts about these Smart Cities that you should know:

Population (20 cities): 3.54 crore

Funding

Central Funding: Rs. 48,000 crore to the Smart City Mission over five years. This comes to on an average Rs. 100 crore per city per year.

State/ULBs Funding: An amount equal to the Central Funding, on a matching basis, will have to be contributed by the State/ULB

Total: Therefore approx Rs. One Lakh Crore of Government/ULB funds will be available for Smart Cities development.

Basic infrastructure/services to be provided:

• Assured water and power supply
• Sanitation
• Solid Waste Management
• Efficient Urban Mobility and Public Transport
• IT connectivity
• e-Governance and citizen participation

First Year and Subsequent Funding: In the first year, Government proposes to give Rs.200 crore to each selected Smart City to create a higher initial corpus. After deducting the Rs. two crore advance (for preparation of Smart City Proposal -SCP)and Admin and Other Expenses share of the MoUD, each selected Smart City will be given Rs. 194 crore out of Rs. 200 crore in the first year followed by Rs. 98 crore out of Rs. 100 crore every year for the next three years

Role of States and Urban local Bodies (ULBs): Key support role envisioned for States and Urban local Bodies (ULBs). It is mentioned that smart leadership and vision at this level and ability to act decisively will be important factors determining the success of the Mission.

Special Purpose Vehicle (SPV): The mission will be implemented at City Level by a Special Purpose Vehicle (SPV) created for the purpose. SPV to plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the project.

SPV Governance: SPV to be headed by a CEO, with representation in board from Central & State Govts and ULB.

Distribution of 100 Smart Cities: The total number of 100 Smart Cities has been distributed among the States and UTs on the basis of an equitable criteria. The formula gives equal weightage (50:50) to urban population of the State/UT and the number of statutory towns in the State/UT. Based on this formula, each State/UT will, therefore, have a certain number of potential Smart Cities, with each State/ UT having at least one.

Re-allocation of Smart Cities: The distribution of Smart Cities will be reviewed after two years of the implementation of the Mission. Based on an assessment of the performance of States/ULBs in the Challenge, some re-allocation of the remaining potential Smart Cities among States may be required to be done by MoUD.

Handholding Agencies: During the preparation of the Smart Cities Mission, a number of foreign Governments have offered to provide Technical Assistance (TA) support.

Additionally, other external organizations, including bilateral and multilateral institutions, as well as domestic organizations have suggested to the Ministry of Urban Development that they can give technical assistance support. These include World Bank, ADB, JICA, USTDA, AFD, KfW, DFID, UN Habitat, UNIDO, etc.

Such organizations, which have experience in the field of Smart City development, can also extend support to the States/UTs as hand-holding agencies in preparing the SCPs. The Ministry will assist in tying up the arrangements.

 (Source: Smart City Guidelines, Govt. of India)

Delhi-Mumbai industrial corridor will help create five new cities: Knight Frank

Pune: The first phase of the Delhi-Mumbai Industrial Corridor (DMIC) will lead to the creation of five new cities along its various nodes and the urban centres that will benefit through the first phase are Noida, Greater Noida, Gurgaon, Manesar, Jaipur, Ahmedabad, Indore and Aurangabad.

These are amongst the key findings of a comprehensive study on the DMIC released by Knight Frank India.

The report, which is the first in a series of studies undertaken by the company, will serve as a ready reckoner for all stakeholders and as well as those who wish to get an idea of the possible impact of the DMIC on the districts of Ahmedabad, Vadodara and Surat.

Amongst the takeaways of the report is that close to two crore jobs (direct and indirect) will be created by the seven nodes in the first phase. Assuming there are four members per household, the new cities in the first phase will house a population of nearly four crore.

Built-up demand

Providing a snapshot on the impact on real estate by the first phase of the DMIC (figures estimated till 2040) the report says that the total residential built-up demand will be 800 crore sq ft, while the total built-up commercial demand will be 251,622,000 sq ft. The total number of hotel rooms will be 18,233.

In a statement, Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “A total of 24 nodes have been planned along the entire stretch of the DMIC. Once all the phases of the project are completed, job creation along the DMIC will be unprecedented. The resultant effects of this astronomical job creation will lead to immense real estate development across verticals in and around the project areas. As these new urban agglomerations take shape, they will also attract interest from other sectors of the economy. Increased job opportunities, coupled with a superior quality of life offered by these new cities, would provide boost to the migration of businesses and people to these cities.”

Restricted focus

Samantak Das, National Director & Chief Economist, Knight Frank India, added, “There is no denying the fact that the DMIC and other corridors will have a major impact on real estate. However, for the purpose of this study, we have restricted the focus to the impact of the DMIC along its influence area in its first phase. According to our study, there will be a rub-off effect of the implementation of DMIC initiatives on the smaller urban centres in proximity of the respective nodes and going forward, these are expected to grow at a faster rate than the present-day major urban centres.” Source: Business Line

Housing.com to set up online platform for realtors body CREDAI

Housing.com today signed an MoU with the Confederation of Real Estate Developers' Associations of India (CREDAI) to set up an online platform to help developers engage with customers in a hassle free and effective manner. The MoU will be effective for a period of three years.

"The objective of the MoU will be to improve the overall ecosystem and create a new age platform that will enable the developers to engage with the consumers in a focused manner," Housing.com said in a statement.

CREDAI is the national body of real estate developers associations from across the country. With 11500 members in 154 city chapters spread across 24 states. On the other hand Housing.com is the leading online real estate platform.

Housing.com’s Chief Business Officer Jason Kothari said, "The partnership is a testimony of changing times in the manner developers have been traditionally operating in the real estate space". He further said that the the association would redefine the way developers have been approaching the buyers across India; adding that the alliance would make the real estate community more transparent and consumer centric.

CREDAI National President Getamber Anand said the synergy with Housing.com would help in bringing an additional credibility to the real estate space by way of professional brokering and large footprint.

The MoU provides Housing.com privileges to actively participate and be represented at all events and forums of the association. On the other hand, CREDAI will leverage Housing.com's technology superiority and innovation to create online proliferation for its communities.

Housing.com has raised over USD 100 million in capital from leading investors, including Softbank.

The portal has made some major appointments recently. Rishabh Gupta was appointed as interim CEO in July, while Jason Kothari was appointed as the Chief Business Officer in August to drive the company's growth in India. PTI

CREDAI NCR to Stop Buying Cement from Ultratech, Lafarfe

NEW DELHI: Confederation of Real Estate Developers’ Association of India (CREDAI) NCR chapter has decided not to procure cement from Ultratech and Lafarge, alleging carelization and malpractices by these firms.

The developers’ body said in a statement that the decision has been taken in order to help fair price determination of key raw materials required for the realty sector. This announcement stop buying from these companies was made at the AGM held yesterday.

CREDAI National President Getamber Anand said to a news agency "We have decided to boycott Ultratech and Lafarge, as they have not delivered the cement to our members at the decided price, despite taking advances". He also suggested that the body may on a national strike if the situations did not change.

On the other hand, CREDAI NCR President Manoj Gaur said that there are about 220 members of CREDAI in the national capital region and all have unanimously decided to stop procurement of cement from Ultratech and Lafarge." He alleged that these companies have increased cement prices by 40 per cent and it seems they are involved in cartelisation. All members of CREDAI NCR have agreed to stop buying from these companies with immediate effect.

Get Ready for ‘Smart’ Villages Now!

After launching the smart city projects, the Union Govt. aims to launch 300 village clusters under the ‘Rurban Mission’. Union minister for rural development Birender Singh announced the Govt.’s intention while inaugurating a two-day national workshop of 'Sansad Adarsh Gram Yojana' (SAGY) in Bhopal recently.

He said that the population of these clusters would vary between 25,000 and 50,000. However cluster strength will be less in hilly areas. To be developed on the pattern of towns with planned layouts, these rural-urban hubs will give a new dimension to Urbanization as well as real estate market in India.

As per the minister, state governments will have to issue notifications for these clusters. An investment of Rs. 50-55 crore is envisaged in each cluster which will be funded jointly by the Union and State Govts. Governments will take up funding of these clusters under various schemes within the Rurban mission. He further added that a critical gap funding of 30 per cent will be additionally provided.

Mr. Singh added that the objective is to create an ecosystem of trade growth and infrastructure facilities in these clusters. Image: India News

Real Estate Regulation and GST bills in next session of Parliament

The government is in the process of accelerating reforms and transforming India, Urban Development Minister M Venkaiah Naidu said at a function here.

Economic Times: Government is planning to push for the passage of crucial bills like GST and Real Estate in the next session of Parliament to accelerate reforms and spur growth and employment in the country.

The government is in the process of accelerating reforms and transforming India, Urban Development Minister M Venkaiah Naidu said at a function here.

"A number of crucial Bills including that of introduction of GST, Real Estate Regulation and Development Bill, for bringing accountability and transparency and enhancing employment generation are expected to be taken up for approval in the next session of Parliament," he said.
Despite the concerted efforts, government could not get through the GST due to the stiff resistance from Congress and other opposition parties in Parliament.

These Bills are important from the perspective of spurring growth and employment which is necessary for faster poverty reduction, Naidu said.

He said the government is also focusing on skill development, both in rural and urban areas in order to alleviate poverty.

On Smart City Mission, Naidu said ever since it was announced it has really brought the urban issues firmly on the agenda of the nation and all stakeholders including political class, media and the common man.

Stating that the country is urbanising with a furious speed, he said urban issues need to be addressed sooner than later.

Raising question whether one can rise to the challenge and deliver the goals under the Smart City Mission, Naidu emphatically said "answer is clear yes."

Drawing the broad contours of the proposed Smart City, he said "a necessary core infrastructure, sanitation, health and education facilities, clean and sustainable environment, good city governance and adoption of smart technologies to ensure decent living, and catalyses economic growth which is the need of the hour."

He said the success of India growth story is hugely dependent on the success once can make on the urban front.

"The centre has committed itself to support states and urban local bodies with central assistance of over Rs 3 lakh crore over the next five years, he said and added "The future of the aspirational India lies in the future of our cities." Source: The Economic Times

Want to become the Property Marketing Guru?

Most of the answers would be straight forward ‘yes’. After all, who does not want to be the top professional in his or her chosen professional area?

But as the saying goes ‘first deserve then desire’, the question to you is what efforts have you put to develop your professional knowledge and skill so that you become the property marketing guru. If you are working in property sales and acquiring experience, so are others; then where is the difference between you and others?

The Reality: Gone are the days when real estate used to be a localized market, working in isolation. Now whole lots of factors affect the individual projects as well as the property market in general.

The real estate market is becoming competitive day-by-day with buyers, sellers and developers of property increasingly looking to the property sales and marketing professionals and advisors they deal with to give them expert information and advice on the many factors that influence the desirability and value of individual properties.

The Need: Therefore if you want to be the property marketing guru, you can’t achieve the objective just by chasing leads in dark and aiming to close deals anyhow. You should have comprehensive knowledge of real estate projects, property sales & marketing, clients etc. The need of the hour is to develop yourself by undergoing professional education and training in real estate marketing that can help you hone your sales & marketing skills further and develop new knowledge base. Apart from basic lead generation and management techniques, you need to know (only sample list):

• Property Market Analysis
• Analysis & Comparison of Projects
• Sales Comparison & Income Approach
• Lead Generation and Management
• Client Management and Soft Skills
• Optimizing Social Media
• Real Estate Project Marketing

The Next Step: Diploma in Real Estate Marketing, offered by NIREM Institute of Real Estate Management, is a 06 month online program that was devised to meet the needs mentioned above. This program aims at helping you understand the technical aspects of real estate marketing. A shorter version of this course is Certificate in Property Sales & Marketing, a 3-month online program.

So whether you are looking for real estate jobs or are already working in property sales & marketing area, Diploma in Real Estate Marketing from www.nirem.org will help you acquire new knowledge and enhanced skills in property sales and marketing. Proceed now to achieve your objective…!!!

Training program on Real Estate Investment by NIREM

Today’s real estate market offers considerable appeal to investors, with many individual and institutional investors competing for the limited number of attractive investment opportunities. But real estate investment is much different from other asset class and therefore present unique challenges. Interested investors must have the ability to source, identify and evaluate profitable investment opportunities and understand and execute the complex process of due diligence in order to develop a profitable investment strategy.

To address these critical issues, the NIREM Institute of Real Estate Management (NIREM) offers a one-day training program on real estate investment. This unique program on real estate investment explores the effective and smart approaches to achieving long-term success in property investment.

What Do You Get From The Program?

The program aims to develop basic competency among the participants to:

• Source, Identify and Evaluate suitable investment opportunity
• Calculate potential risk & return; Minimize risk
• Understand method and process of due diligence etc. 
• Understand how investment is made professionally.

On successful completion of the workshop, you should be able to:

• Make better investment decisions and
• Move quickly to select the best deals and negotiate the best terms with confidence.

Moreover, participants should feel confident in investing in any real estate project because of the newly found knowledge and technical skills.

Who Should Participate?

• High Net worth Individuals (HNIs)
• Existing real estate investors
• Investors from other sectors planning to diversify into real estate
• Individuals & Organizations wishing to invest in real estate
• Private Equity and Venture Capital Professionals
• Real Estate Finance & Investment professionals
• Real Estate Professionals
• Real Estate and Financial Advisors
• Wealth Managers, Asset Managers etc.

Faculty:

Faculty with rich background in real estate will take sessions in this program. Faculty members have practical and on-the-ground work experience of different aspects of real estate investment. Faculty members are senior professionals working with real estate funds significant exposure in different types of projects at multiple locations.

Further Information:

To know more about the program or to register, please get in touch with the Manager-Corporate Training & MDP at info@nirem.org or +91.782-788-4220. You can also visit www.nirem.org for more details.