feb - mar 2017 issue- 6 vol-credaivisakhapatnam.org/downloads/visakhavision/vol-6... ·...

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DEAR READERS HAPPY “UGADI” Real Estate Industry is passing through a turmoil after demonetization. The public perception, mainly because of extensive media reports, was that Real Estate prices will slash. This made purchasers think twice before booking apartment. On one hand there is the fear that their property value will come down the next day, on the other hand there is the feeling ‘ why shouldn’t I wait for the bumper offer by builders’. The end result of this dilly dallying is that the prospective purchasers will be paying more because of the implementation of “RERA’ and introduction of GST . In the backdrop of all these, the silver lining for purchaser is that the system is more transparent now. But shocking news for him is the sky rocketing price of cement and steel . Who will be the beneficiary of all these. Is it Government or the purchaser or builder or land owner ???? Wait and watch ! Another major subject of discussion for the industry is “ Affordable Housing “. Affordable for whom? . The final product is made of various materials and labour but the un- affordable item is tax . If taxes are removed everything becomes affordable. The way taxes are

introduced create doubt in common man’s mind with the question mark ‘affordable for whom’? Again wait and watch.

EDITORIAL

EDITORIAL BOARD K.S. Chandran, LAYOUT & DESIGN ideafirst, #9-18-1, 1st Floor, Vinayagar Enclave, CBM Compound, Siripuram, Visakhapatnam, Ph: +91 891 2508150., PRINTED AT Sathyam Offset Imprints, Brindavan, #49-28-5, Madhuranagar, Visakhapatnam., PUBLISHED BY CREDAI VISAKHAPATNAM, #9-6-43, Flat No-2, Ground Floor, MVV Bhavan, Sivaji Park Road, Sivaji Palem, Visakhapatnam-530017, Ph: 0891-2739612, Mob: 98488 54448, 99120 54448 Email : [email protected], [email protected]. Website: www.credaivisakhapatnam.org

All the Members are requested to get their address updated with the association in order to ensure timely delivery of magazine also your email ID for speedy communication. If you are not receiving a copy of magazine of CREDAI, VISAKHAPATNAM chapter. please contact @ 9848854448

CREDAI VISAKHAPATNAM (Regd. No : 231of 2010)

CREDAI VISAKHA VISION | FEB-MAR, 2017

If Winter Comes, Can Spring Be Far Behind !

K. S. ChandranBulletin Editor

05

K. S. CHANDRANBULLETIN EDITOR

Chairman’s Message

I start my message, last one as Chairman of CREDAI-VSP, by recalling the happy developments in the preceding two months. These developments will fill every member’s heart with a sense of pride and achievement. I am referring to the unprecedented and memorable success of Property Expo-2017 and the hosting of Managing Committee and General body meetings of the CREDAI-AP, where the new executive body has been chosen. Because of demonetization and its impact on potential sponsors, especially bankers, suggestions were made, with good intentions of course, about the desirability of conducting a Property Expo in December-2016, and there were apprehensions about its success. But CREDAI-VSP had taken it as a challenge and went ahead with the conduct of the Property Expo in March. This third Property Expo of CREDAI-VSP, was a grand success, never witnessed in the annals of CREDAI-VSP, so much so that the Union Minister, Sri.M.Venkaiah Naidu, who visited the Expo on the second day, made a special mention of CREDAI-VSP at a meeting in New Delhi and described it as a Show worthy of emulation by others. It has boosted the image of CREDAI-VSP as never before and each member of CREDAI-VSP, especially the executive and the Convener Sri P. Koteswara Rao and the co-convener Sri E.Ashok Kumar, could legitimately take pride in this rare achievement. The large number of footfalls at the Expo, once again proved that people have faith, trust and confidence in CREDAI-VSP.

CREDAI-VSP was given the privilege of hosting the Managing Committee meeting of CREDAI-AP in Visakhapatnam. Meticulous planning and assiduous execution of the event had brought rare honour and laurels to the CREDAI-VSP. Accommodating, entertaining, extending hospitality to delegates coming from as many as 18 CREDAI-Chapters in the state was really an arduous and daunting task, but thanks to our committed members, CREDAI-VSP had performed its task credibly and creditably and the guests have all praise for CREDAI-VSP. Also, as denizens of ‘City of Destiny’, we all should feel elated that Sri K.Subba Raju, a resident of Visakhapatnam, was chosen to head the CREDAI-AP for a two year term that is 2017-19.

Now I want to say few words about the coming two months. You are all aware that the provisions of RERA would become effective from May 1st and in all likelihood the GST regime would come in to force by June. Both have profound influence on the real estate sector. This means that realtors would be entering into a new era called the ERA

of RERA. When there is shift from the method or system which had been in place for the last several decades to a new method or system, there are bound to be difficulties, but we all should adapt to the new system. We welcome the new systems that ensure transparency, discipline and accountability. But as builders, we seek clarifications on various issues. CREDAI-VSP has a history of waging prolonged struggles and getting a number of problems solved through struggles. CREDAI-VSP should continue this tradition of representing to powers that be, to authorities concerned and only as a last resort, organize agitations. I might mention here that CREDAI-VSP has represented to the Group of Ministers, constituted to look into the various issues of CREDAI, on various issues and in response the government had agreed to implement more than 40 issues. Real estate is the second largest sector to provide employment and it considerably contributes to the GDP. The government has also been very helpful to the real estate sector in attending to its problems and CREDAI-VSP should continue its efforts to solve its problems through representations and actively involve in the implementation of government schemes, especially in the housing sector.

Before I close my message I should like to stress the importance of nurturing, guiding and encouraging millennial generation in CREDAI-VSP. This young generation is full of energy and dynamism that had been amply exhibited when they had successfully conducted two important programmes viz screening “Kabaali” movie


Dear member, Please accept my warm and happy greetings,

and a organizing a study tour to seniors to the LANSUM OXYGEN TOWERS. This generation would have to take the future image of the organization to new heights and the legacy of CREDAI-VSP to the posterity. I wish them all the very best.

Before I conclude and as I renounce my responsibilities in favour of the new body, I wish to express my sincere gratitude to all members for their unflinching support and kind cooperation without which I could not have made the modest contribution as the Chairman of CREDAI-VSP for two consecutive terms. However I should make a mention of Sri GVVS Narayana for his punctuality and discipline with which he conducted the meetings, the ever smiling Hon Secretary Sri B. Srinivasa Rao, who had meticulously carried out all transactions and Sri KSRK Raju, who is an expert in husbanding resources which had resulted in a FD of Rs 1 crore in favour of CREDAI-VSP. I wish to congratulate Sri P. Koteswara Rao and Sri Ashok Kumar for conducting this year’s Expo credibly and creditably. I also express my thanks to Sri R. Jagadeeswara Rao for carrying all

official communications diligently.

I am renouncing my responsibilities with great satisfaction because the new executive body, which would take over, is very capable and committed to take CREDAI-VSP to the higher levels.

I rededicate myself to the service of CREDAI in general and CREDAI-AP and CREDAI-VSP in particular.

Thanking you all once again and wishing you peace and prosperity in business and harmony and happiness at domestic front.

Thanking you once again and wishing you a happy Sri Ramanavami.

K. Ramakrishna Rao Chairman

CREDAI VISAKHA VISION | FEB-MAR, 2017 07

NEW DELHI: Builders can be made liable for the safety of the structure, as per the new national building code proposed by the Centre to be followed by the states.The revised code was unveiled by Consumer Affairs Minister Ram Vilas Paswan here today. The code has been prepared by the Bureau of Indian Standards (BIS) under the aegis of the Consumer Affairs Ministry.

The code is voluntary in nature but the states can incorporate them in their building bylaws. “The code contains provisions on use of new/innovative materials and technologies and on prefabricated construction techniques that can give fillip to speedier construction to meet the objectives of Housing for All by 2022,” Paswan said after releasing the code on the occasion of the World Consumer Rights Day here. “It is a voluminous code with 34 chapters. It is used by local bodies for framing building bylaws. It is used by government departments in construction activity. It is used by private builders as well as professionals like architect, planners and engineers. It is also used for academic purpose,” BIS Director (Civil Engineering) Sanjay Pant told PTI. Asked about key changes made to the building code, Pant said planners, structure designers and supervisors were made responsible for the safety of the structure while geotechnical engineers and builders were not included.

“Now, builders are also made responsible safety of the construction. Builders have to give a certificate saying that the building has been constructed as per the planned design submitted to the local bodies,” he said. Apart from making builders liable, the revised code has made necessary changes keeping in view the requirement of modern buildings.

For example, the code specifies fire and life safety norms for high rise buildings and a proper horizontal evacuation system in high rise hospitals and public buildings. It also provides for universal accessibility for senior citizens and differently abled citizens besides encouraging use new building material and alternative smart technologies. The salient features of the revised code are norms for solar energy utilisation, inclusion of modern lighting technique including LED, updated provision on piped gas supply in houses and hospitals,solid waste management and rain water harvesting, besides high speed lifts for tall buildings. For ease of doing business, the revised code has a detailed provision for streamlining the approval process in respect of different agencies in the form of an integrated approval process through single window approach thereby avoiding separate clearances from various authorities.

BUILDER CODE UNVEILD

GOVERNMENT UNVEILS REVISED BUILDING CODE


The real estate sector in 2016 saw a lot of changes that provide much relief to the common home buyers. While the Budget also tried to push for the initiative of ‘Housing for all’, the Supreme Court’s judgments also provide much relief to the ordinary citizens against the real estate developers.Here are the Top 10 policy initiatives that impacted the ‘ Real Estate’ Sector in 2016: 1) Real Estate Regulatory Act The Real Estate (Regulation and Development) Act, 2016 which came into force in March 2016 has laid down a regulatory framework which is set to change the way real estate sector operates in India. It aims to enhance transparency, bring greater accountability, set disclosure norms to protect the interest of all stakeholders and also ensure speedy execution of property disputes in due course.

2) Benami Transactions Act The Benami Transactions (Prohibition) Amendment Act, 2016 lays down stringent rules and penalties associated with dealings related to “benami” transactions. It establishes a regulatory mechanism to deal with disputes arising with such transactions and levying penalties as needed to increase the institution investor participation and regulating the sector with an aim to make India an attractive investment destination. 3) Boost to affordable housing construction In a bid to promote affordable housing, the Honourable Finance Minister proposed 100% deduction in profits to an undertaking from a housing project for flats up to 30 sq meters in four metro cities and 60 sq meters in other cities which are approved during June 2016 to March

HERE ARE THE TOP 10 POLICY INITIATIVES THAT IMPACTED THE REAL ESTATE SECTOR IN 2016

The Ten Commandments

Chairman Sri K. Rama Krishna Rao 9848037477 [email protected] G.V.V.S. Narayana 9848130272 [email protected] P. Koteswara Rao 9908600005 [email protected] P Rama krishna 9848414051 [email protected]. SecretarySri B. Srinivasa [email protected] SecretariesSri Ch. Govinda Raju 9848521789 [email protected] K.V.R. Raju (Ramesh)[email protected] N. Sivaji 9052544555 [email protected] K.S.R.K. Raju (Sai)[email protected] MembersSri A Shivanand 9963322000 [email protected] E. Ashok Kumar 9133188807 [email protected] N Srinivas Rao 9246635839 [email protected] D. Siva Govindam 9866228662 [email protected] J. Bhoja Raju 9849841875 [email protected] Sri N. Trinadha Rao9848292848 [email protected] C. Srinivas 9394218373 [email protected] K.Venu Gopal 9848125925 [email protected] V. Dharmender 9000387878 [email protected] M. Vijay Kumar 9966877999 [email protected] K. Nagendra 9666161616 [email protected]. Murali Krishna 9393101811 [email protected] Past ChairmanSri B. Raja [email protected]

OFFICE BEARERS

2019. Another condition was that the project should be completed within three years of the grant of approval. 4) Interest subsidy to home buyers To stimulate housing demand from first time home buyers, the Union Budget 201617 also proposed deduction of addition interest of INR 50,000 per annum for the first time home buyers for loans up to INR 35 lakhs sanctioned during the next financial year for houses with a value not exceeding INR 50 lakhs. This move should positively influence home sales in non metros in the long term where residential product prices are not as skyrocketing as in the metros. 5) Change in arbitration norms Change in arbitration norms for construction companies specifies release of 75% of the amount against margin free guarantees in cases where arbitral awards have been given but contested which should improve the cash flow awards have been given but contested which should improve the cash flow position of large developers who have significant exposure in infrastructure and government contracts and eventually help in the speedy execution of large infrastructure projects. Coming at a time when most developers are struggling with liquidity issues, this is a boon from an overall perspective. 6) Service Tax exemption Exemption of service tax on construction of affordable houses up to 60 square meters under any scheme of the Central or State Government including PPP schemes will further propel construction in affordable segment across India and encourage greater collaboration between the public and private sector as well as participation in affordable home construction. 7) Dividend Distribution Tax (DDT) exemption The Union Budget 201617 exempted

any distribution made out of the income of the Special Purpose Vehicles (SPVs) to the Real Estate Investment Trusts (REIT) and Infrastructure Investment Trusts from the levy of Dividend Distribution Tax. This paved the way for the REIT model to become financially viable for retail investors. 8) Goods and Services Tax Goods and Services Tax (GST) is a positive move towards simplification of Indian tax system. However, the real estate industry is still awaiting clarity on which items fall into “sin” and “common use” and whether they will attract 18%, or 12% possible tax rates. Additional clarification is also needed if the implementation of GST will subsume existing service tax and value added tax (VAT) which are levied for under construction projects currently. 9) Demonetisation The recent demonetization of Rs. 500 and Rs. 1,000 rupee notes by Honorable Prime Minister is perceived as a significant reform. In the long run, this measure along with Real Estate (Regulation and Development) Act, 2016 (RERA) will align the real estate sector to the international standards of doing business resulting in more fund flow from institutional investors, banks, and higher unit sales. 10) PR for foreign investors The Union Cabinet approved the grant of Permanent Residency Status (PRS) to foreign investors subject to various conditions and with a provision for renewal for another 10 years. As PRS allows the holders’ spouse/dependents to take up employment in India as well as the purchase of one residential property for end use, the end user pool, mainly for high end and luxury segment products stands increased which can promote the asset class in a big way.

SECRETARY’S REPORT FOR THE YEAR 2016-2017

I would like to start my report by giving a brief history of the organization,

Any association or organization which grows from strength to strength and stands as a model, would normally have humble beginnings. During passage of time, it gains stature and status because of dedication, discipline and commitment of its members, discharges its functions with aplomb and symbolizes trust, credibility and confidence. The inputs essential for building such an edifice or organization are bricks of dedications, walls of discipline and unwavering commitment on the part of the founder and his team, who envision such an organization. It was way back in 1989 that Rotarian Sri Prabhat Kumar, a visionary and a pioneer in development of flat living culture in the fast growing ‘City of Destiny’, along with dedicated team members viz. Sri K. Ramabrahmam, Sri Ravi Godey, Sri Ananda Kumar and Sri Y. Appa Rao, floated an organization in the name and style of Apartment Builders Association, with a modest membership of one score people. The above

team members became the Chairman, Vice Chairman, Secretary, Joint Secretary and Treasurer, respectively of the new organization. The Apartment Builders Association was run professionally and with dedication. The nascent organization had greatly benefited by conducting seminars and state level builders meetings on relevant issues under the able Chairmanship of Sri K. Subba Raju and active involvement of seniors like Sri Ravi Godey, Sri K.S. Chandran, Sri G. Jagjeevan Babu, Sri G. Rama Rao, Sri P. Ananda Kumar, Sri NVS Murthy and Sri MVS Sharma. It maintained good rapport with other organizations in the city like VCCI, Andhra University, IIA (Vizag), BAI (Vizag) Institute of Valuers, APREDA and CII with a view to ensuring mutual advantages. Achievements : I would like to mention here that the association played key role in the release of Master Plan, Building Rules &Regulations in the form of GO Ms Nos 301,302,501,502,71,72,73, 423, 678 and GO No. 168, released on 07.04 2012, for the benefit of builders in general and the ‘City of Destiny’ in particular. The latest one is GO MS NO 119, issued on 28.03.2017. Inputs provided by CREDAI-VSP had played a key role in the release of the latest GO 119. Realizing the importance of joining hands with CREDAI National, The Apartment Builders Association had decided to join CREDAI National and to rename the Apartment Builders Association as CREDAI VISAKHAPATNAM Chapter. Accordingly, CREDAI VISAKHAPATNAM Chapter has been registered with Registrar of Associations, Visakhapatnam on 21.04.2010 with the Registered No.231 of 2010.

The CREDAI-VSP had adopted a ‘Code of Conduct’ which every member of the organization shall follow. Also a Consumer Grievances Redressal Forum was formed to take care of all problems that consumers might represent. This is the synopsis of CREDAI-VISAKHAPATNAM, now an embodiment of trust, credibility and customer confidence. In its 27 years of journey, CREDAI-VSP had crossed many a milestone and made a niche for itself among many organizations of its ilk.

Your Attention Please !


Respected members, I take pleasure in presenting my Annual Report before you all,

I would like to mention some of the mile stones in the field of CSR activity. Right from the beginning this Association has been in the forefront in meeting its social responsibilities to the society under CSR activity. A few to name are: During the flood havoc in the year 1990, an elementary school building was totally washed away in Seethanagaram village Anakapalli and our Association constructed a new building in its place; A Bunker for Cobalt Therapy unit for KGH’s Cancer Wing was donated by our Association; Contributed to PM’s Relief Fund during Earthquake disaster at Latur in the state of Maharashtra; In 1996, Association contributed Rs.10 lakh to the CM’s Relief Fund to relieve the sufferings of flood victims. A cheque for this amount was handed over to the then Chief Minister Sri K.Rosaiah. When the city was devastated by the Hudhud cyclone in 2014, CREDAI-VSP had contributed Rs.50 lakh, Rs.25 lakh to the Chief Minister’s Relief Fund and donated another Rs.25 lakh for Haritha Visakha Project. The cheque for the Relief Fund was handed over to the Chief Minister Sri N. Nara Chandra Babu Naidu on 17/11/2014.

Check posts were constructed for Government on Beach Road & National Highway to prevent the Sea Sand trading; Instituted an Award to the meritorious students of architecture in memory of Late Sri B.R. Raju, named “Sri B.R. Raju” Memorial Award in the year 2007 and being presented every year. Own Office Premises : The dream of all members was to own an office with all the modern facilities of a corporate house. This had materialized when CREDAI-VSP had purchased part of the first floor with the liberal contributions from members. I should mention here the special efforts made by the then Chairman of VSP Chapter, Sri B. Raja Srinivas at every steps in realizing this important dream. He richly deserves special praise for this.

Silver Jubilee Function: This function was celebrated in a grand way in 2015.Union Minister Sri M.Venkaiah Naidu, Hon’ble Minister for Medical and Health Sri Kamineni Srinivas, Hon’ble MP Sri K.Haribabu, Hon’ble MLA, Sri Vishnu Kumar Raju graced

the function and blessed the organization. An in-house magazine “Visakha Vision” was launched in 2001 and it is being published without any interruption. Under the able guidance and editorship of Sri K.S. Chandran, it had been providing all relevant information connected with building industry. It is being sent to all members of CREDAI-VSP Chapter, CREDAI-Chapters in the state, CREDAI National and to relevant government departments like GVMC, VUDA as also to the Collector’s Office.

A Bolero van, costing about Rs.11 lakh was donated to the Akshaya Patra Foundation for distribution of lunch to the GVMC Primary/Secondary School students every day. The entire amount was contributed by the members of CREDAI-VSP. Now, I would like to recall many of the important activities of CREDAI-VSP during the year 2016-17. As all of you are aware, conducting RERA Workshop, organizing guest lectures and seminars, study tour, skill development training programme, panel discussions, annual family picnic, presenting Aswini Mrudula Awards and B.R. Raju Awards, organizing Property Show and taking up CSR activities in a big way, are the most important activities of CEDAI- VSP during the year. I am happy to inform you that all events were conducted with discipline and dedication, and thanks to all participants, all activities have left sweet memories that we all cherish for a long time to come.

Meetings with the Chief Secretary and Collector: Attended series of meetings convened by the Chief Secretary S.P. Thacker and District Collectors, on the


issue of affordable housing at the collectorate. Important issues such as VLT, Single Windows System for Approvals, AIR Funnel, CRZ, Revised Master Plan, Uniform Zoning Regulation, Change of Land Use, Entry in the Prohibitory Watch Register, Shelter Fees, and Impact Fee were represented to the Chief Secretary. CREDAI-VSP made a plea for issue of occupancy certificates online. CREDAI-VSP has represented to the Government on a number of issues concerning building industry, and the government has constituted Group of Ministers to look into the representations of CREDAI-VSP. The CREDAI-VSP had brought to the notice of the GoM as many as 40 issues and on recommendations of the GoM, the government has agreed to implement all issues represented by CREDAI. I would like to recall here the recurring issue of sand shortage which snowballed into a serious problem. It was the prolonged struggle of the CREDAI-VSP and others that had resulted in the decision of the government to supply sand free of cost. This problem, however, had raised its head again and CREDAI-VSP has been pursuing the issue. Its representatives met the collector in this respect and it was solved when the collector earmarked one separate sand reach for Visakhapatnam district and appointed special officer to oversee its implementation.

Attended another meeting convened by the Commissioner GVMC on the issues of “Online Building Applications Approval”, VLT/House Tax etc. and represented for issue of occupancy certificates online The concept of dealing online is a new one and there are some teething troubles, mainly because of non-feeding of required data to the computer. These were brought to the notice of authorities and they promised to streamline the system. On VLT/House Tax also there were some twists to the issue and CREDAI-VSP’s view was that there should be no VLT/House Tax during the construction period. After repeated representations by the CREDAI-VSP on this issue, government has agreed to collect fifty percent of VLT/House Tax during the construction period. In respect of NALA also the government had agreed to reduce it from five percent to two percent in urban areas and from nine percent to five percent in other areas.

CSR (Corporate Social Responsibility): CSR is an article of faith to the CREDAI-VSP and it has always been in the forefront in this regard. The areas covered under this include, among others, education, environment and security at the apartments. Under CSR activities, CREDAI-VSP had distributed note books and stationery kits to 1000 students of GVMC Primary School, JR Nagar, Old Venkojipalem on 22/06/2016 and GVMC High School Madhuranagar, on 27/06/2016. Similarly note books and stationery kits were distributed to the children of journalists at a function on July 6th at Vaisakhi Jala Udyanavanam. While GVMC Commissioner Sri Praveen

Kumar, IAS was the chief guest at the former event, Vice Chairman, VUDA, Sri Baburao Naidu, IAS, was the chief guest at the later function. A special feature this year was the distribution of note books and stationery to the tribal students of schools, located in the interior places of the district. On 25th July members of the CREDAI-VSP went all the way to the tribal schools in the interior villages of Chalisingam, Dharmavaram, Cheemalapadu and Z. Kottapatnam, all located in inhospitable interior areas and distributed note books and stationery to more than 200 tribal students. This was greatly appreciated.As part of CSR activity and as proposed by the GVMC, Another important and prestigious CSR activity of CREDAI-VSP this time was the construction of special floor with four model class rooms at the ZP Model High School, (only of its kind in the entire state), Chandrampalem, Madhurawada, by donating 3200 sq.ft. of space. Also an imposing Buddha Statue was also erected in the school premises. The model class rooms were inaugurated by the Chief Minister Sri N. Chandrababu Naidu. I should mention here that individual members had contributed for the model class rooms and the Buddha statue. The following members had liberally contributed to this prestigious project: Sarvasri M. Rattaiah and


K. Rmakrishna Rao of MK Builders, MVV Satyanarayana, of MVV Builders, B. Srinivasa Rao and D. Ananda Rao of SVS Pro-Builders Pvt.Ltd, Chilukuri Srinivas, of Chilukuri Housing Projects, J. Bhoja Raju and J. Tirupathi Rao of MVP Builders, Ch. Govinda Raju, of Pavan Adithya Developers, K.S.R.K. Raju of Sai Sree Constructions and Alapati Sivanand of AVK Builders. Conducting Seminars, Panel Discussions and attending Meetings on important issues: Another important activity of the organisation is to keep members abreast of all developments and issues that are relevant to the building activity. The following activities had been taken up in this respect: Monthly Regular Meetings: On the first Monday of every month, regular meetings were conducted and in all eleven such meetings were held. Also, two Annual General body Meetings, twelve executive committee meetings and nine emergency executive committee meetings were organised. These meetings were meant to create awareness among members about various aspects in connection with the building industry. Various provisions in the GOs and tax laws etc connected with the building industry had also been explained to members at these meetings. Guest Lectures: On May 2nd, a guest lecture was organized on “Precast Construction in Building Industry”. The guest was Prof P. Veerabhadra Rao, Dean, Infrastructure Planning & Development, Gayatri Vidya Parishad College of

Engineering, Visakhapatnam. The lecture was very informative and threw light on various aspects of precast construction, its importance in terms of quality and the vital role it will play in construction industry in future. It was very useful to builders. On 4th July, another guest lecture was organized for the benefit of members. The guest was Sri Nagarjuna Rao, Assistant Commissioner (Commercial Taxes). Sri Rao explained the concept of “Works Contract” under which builders came, and other issues connected with the payment of sales tax and registration as VAT dealer. He had clarified a number of doubts raised by members. The lecture was very enlightening.

On August 1st, an awareness lecture was organized on Income Declaration Scheme (IDS) at the request of the Income Tax Department. Sri B.G. Reddy and Sri Ch. Omkareshwar, both Principal Commissioners, were the participants. They had explained the salient features of IDS, its merits as also the serious consequences of not taking advantage of the scheme.

NAT CON and Add-On Tour: A largest contingent of 37 members of CREDAI-VSP participated in the tour, of which eight members were delegates and the rest were on Add-on tour. It was held from August 3rd to 5th in Shanghai, China. The sweet and memorable experiences of the participants at the NAT CON were shared with other members at subsequent meetings of CREDAI-VSP.


A Google workshop: was conducted in the Association Office and delegates from Google, who came all the way from Kolkata, explained to members how Google could be of help in improving their business. Workshop on RERA by Vizag Chapter: A workshop on RERA was conducted by the Vizag Chapter on 25.09.2-16. Sri A. Siva Reddy, CREDAI-AP President, Sri C.Sekhara Reddy, former President CREDAI-National, Sri Durga Prasad, High Court Senior Advocate,

Sri Y.Suryachander Rao, CA and Sri K.S.Chandran EC Member, CREDAI National had participated. Speakers at the Workshop explained various provisions in the RERA Act and their possible impact on the real estate sector. At an interactive session, organised later, builders had asked a number of questions about the RERA provisions and Sri Durga Prasad and Sri Y.Suryachander Rao had clarified many doubts of members. A large number of builders from other chapters in the state had attended the meeting and it was an enlightening experience for the builders. Workshop On RERA by CREDAI National: On November 5th, CREDAI National organized a ‘Workshop on RERA” and two senior members from CREDAI-VSP, namely Sri GVVS Narayana, Sri P. Koteswara Rao and attended the workshop. At a workshop conducted by Vizag Chapter later, they gave details of the steps taken by the CREDAI National on various problems arising out of RERA Act and the steps being taken by it to address them. Skill Development Training Programme: In January skill development training programmes were arranged at the project sites of MK Gold Coast, A-Square Builders, Shree Builders and MVV Builders. Sri Ramachandra Sahu, Research Officer, CREDAI National Delhi, who was the chief guest, explained the importance of organizing skill development training programme continuously and urged all builders to adopt new methods and employ skilled workers in construction in the interest of quality of the product. Chairman Sri K. Ramakrishna

Rao,who addressed one such training programme, pointed out to the short comings in traditional methods of construction and the need to employ skilled workers. About 150 members were trained in different trades at the MK Gold Coast site. Special event: Youth Wing of CREDAI-VSP. It had successfully organised a benefit show of Rajani Kanth starrer ‘Kabaali’ and decided to spend the proceeds of the benefit show for CSR activities. It had also organized a study tour for all the members to LANSUM OXYGEN Towers, the highest towers in the city, on 20th January. It may be mentioned here that the likes of LANSUM OXYGEN Towers would be found only in most advanced countries of the world and Youth Wing richly deserved appreciation for organizing such a special study tour to the seniors in the organization. Both the events were professionally organized and the efforts were well appreciated. The way the Youth Wing organized the events, one is assured that this young generation will take forward the legacy of the organization to greater heights and get more and more laurels from all sections.

Annual family Picnic: There was overwhelming response to the annual family picnic this year, conducted in salubrious environment at MVV Palm Meadows. It was not-stop entertainment and enjoyment for the entire family members for the throughout the day. Almost all members with their families participated in the event. A special attraction this time was the singing of melodious songs by the reputed artiste Ms. Gopika Purnima and the puppet show that had immensely entertained children. A feature of annual family picnic this year was that it was decided not to serve alcoholic drinks at the


picnic, the decision was very well received and the picnic was a great success. This annual event had been thoroughly enjoyed by all, specially women and children. Property Expo: In all five Property Shows were conducted by the organization since its inception. However, the conduct of Property Expo-2017, held after the demonetization, was a big challenge. The challenge was accepted and CREDAI-VSP went ahead with its task of conducting the Property Show. Initially the Property Expo was proposed to be organised on December 23rd 24th and 25th and the Brochure was released on November 4th and Curtain raiser function was held on November 7th. But it was to be postponed to March because of demonetization and requests by some important stake holders . I am immensely pleased to state that it was an unprecedented success as evidenced by the increased footfalls, the number of sponsors participated and transactions done. The venue was the sprawling Engineering College Grounds of AU which was set up with German structures

and huge parking area. More than 32,000 people visited the three day event and nearly 100 stalls of different sponsors, banks, material manufacturers displayed their products at the Expo. It was greatly applauded by VVIPs and VIPs and

was appreciated by the public at large. On the inaugural day, Minister for Human Resources Development, Sri Ganta Srinivasa Rao, who was the Chief Guest went round all the stalls and praised the efforts of CREDAI-VSP for providing houses to all sections of people. He had also sought CREDAI-VSP’s help in the implementation of housing schemes of the government. On the second day of Expo, Sri M. Venkaiah Naidu, Union Minister of Urban Housing Development visited the Expo, went round all the stalls and congratulated VSP Chapter, Chairman, Sri K. Ramakrishna Rao, President Sri GVVS Narayana and Hon Secretary Sri B. Srinivasa Rao. Mr. Naidu said that CREDAI-VSP’s efforts were worthy of emulation by all other Chapters and builders. He was impressed so much that he mentioned the grand success of CREDAI Vizag Property Expo at a meeting at CREDAI National Conclave, held in New Delhi. Sri Ayyanna Patrudu, Minister for Panchayat Raj, was the Chief Guest at the valedictory function on the last day. He said that he had been attending to all Property Shows of CREDAI-VSP and was immensely pleased with their efforts

to provide houses to all. MPs and MLAs and other leaders had also words of praise for CREDAI-VSP for its untiring efforts to provide everyone a roof over their heads.

A special attraction at Property Expo this time was the setting up of model temple of Lord Sri Venkateswara Swamy at the facade of the Expo. The temple and the sanctum sanctorum were built on the lines of the one shown in the film Om Namo Venkatesaaya. It attracted devotees in their thousands and gave the entire proceedings an air of sanctity and serenity. Last but not the least, the Expo has resulted in strengthening the financial health of CREDAI-VSP.


Panel Discussions: During Property Expo, organized on March 3rd 4th and 5th, panel discussions on “Affordable Housing, Building Rules and Environment” “Quality & Latest Techniques in Building Industry” and “Vizag Property Trends : Today and Tomorrow” with experts on the relevant subject, were organized. Experts who had participated in these panel discussions threw light on the subject, changes that had

taken place, the possible impact of such changes, new techniques that were being adopted in building industry and their merits and importance, the changing trends in real estate business. These panel discussions were very enlightening and builders followed the discussions keenly. Senior members of CREDAI Sri B. Raja Srinivas, Sri K.S. Chandran and Sri P. Koteswara Rao, who had acted as moderators for the panel discussions, had asked the experts searching questions and elicited answers. These proved very beneficial to the builders. Aswini Mrudula Awards: I am glad to inform the members that after a gap of three years, the Aswini Mrudula Award, which is presented to builders for following good maintenance practices and installing CC Cameras in the apartments, was revived. Commissioner of Police, Sri T. Yoganand, IPS, was kind enough to present the Award to the winners at the general

body meeting held 6th February. The Commissioner had lauded CREDAI-VSP for instituting such an award with a view to ensuring safety and security. Sri T. Yoganand, also suggested to CREDAI-VSP certain measures to further improve security at the apartments. In all 16 members had received the Award, given to different categories of apartments for the periods 2013-14, 2014-15 and 2015-16.

B.R. Raju Memorial Award: This year also CREDAI-VSP presented the B.R. Raju Memorial Award to the meritorious students of architecture in memory of (late) Sri B.R. Raju. This was instituted in the year 2007. It was named “B.R. Raju Memorial Award”, and is being presented every year to students of architecture in first, second and third year classes. This year the Awards were presented to Mr P. Ganesh (1st year) Ms D. Sridivya (2nd Year) and Ms G. Amruthavalli (3rd Year) by the, Hon’ble Minister for Panchayat Raj Sri Ch. Ayyanna Patrudu, at the Valedictory function Property Expo 2016-17.

Hosting of MC and General Body Meetings of CREDAI-AP: CREDAI-VSP had the privilege of hosting the Managing Committee Meeting of CREDAI-AP and the Annual General Body Meeting at the prestigious Waltair Club on 26.03.2017. Of the total 18 Chapters in AP, delegates from 16 Chapters attended the meeting and a new executive body for CREDAI-AP for the years 2017-19 was elected. It was a grand success and every participant had profusely praised the CREDAI-VSP Chapter for conducting the meetings in such a disciplined and dedicated way.


Financial Position: I am happy to inform you that despite of huge expenses incurred by our association in connection with Vizag Property Expo, Annual Family Picnic, our chapter is financial sound. Once again I am thankful to Sri K.S.R.K. Raju (Sai), Treasurer and the Executive Committee members who are instrumental in maintaining such a sound financial status. Before I conclude, I would like to express my gratitude from the bottom of my heart to all members for giving me an opportunity to serve the organization as Hon. Secretary for two consecutive terms. I am particularly grateful to our respected Chairman Sri K. Ramakrishna Rao for his inspiring leadership and guidance. He had taken keen interest in all activities of the organization and ensured that every event was a grand success. His efforts were unmatched in making the CREDAI-VSP a model worthy of emulation by others. It was the personal and untiring efforts of the Chairman Sri Ramakrishna Rao which helped to rope in more and more members into the organization. He was also instrumental in constituting the Youth Wing and exhort them to take up activities that would boost the image of CREDAI-VSP. I am very thankful to our President Sri G.V.V.S. Narayana for his valuable and timely help that enabled me to discharge my responsibilities. I also express my gratitude to Treasurer, Sri K.S.R.K. Raju for his discipline in maintaining accounts, resulting in strengthening the financial health of the organization. I sincerely express my gratitude to the Vice President Sri P. Koteswara Rao, who always stood by me solidly and was the force behind all important activities taken up by CREDAI-VSP. I also express my thanks to the Vice President, Sri P. Ramakrishna; Joint Secretaries Sri Ch. Govinda Raju, Sri K.V.R. Raju (Ramesh), Sri N. Sivaji and Executive Committee members Sri A. Shivanand, Sri E. Ashok Kumar, Sri N. Srinivasa Rao, Sri D. Siva Govindam, Sri J. Bhoja Raju, Sri N. Trinadha Rao, Sri C. Srinivas, Sri K. Venu

Gopal, Sri V. Dharmender, Sri M. Vijay Kumar, Sri K. Nagendra and Sri V. Murali Krishna for their help in discharging my duties as a Hon. Secretary. I will be failing in my duty if I do not express my gratitude to senior members who had greatly contributed for the development of CREDAI-VSP, viz Sri K. Subba Raju, Sri K.S. Chandran, Sri V. Kanti Sekhar, Sri M.V.V. Satyanarayana and Sri B. Raja Srinivas, for their timely and mature advice which helped me to take right decisions at the right time. I owe a lot to their continuous guidance and support. I sincerely thank the election committee for conducting the election by strictly following procedure at the general body meeting. I also thank the members of Youth Wing for their active participation. I also thank M/s Sri Devi Associates who have been providing meeting hall for our regular meetings without any problem. Last but not the least, I thank the three musketeers viz. Sarvasree R. Jagadeeswara Rao, B. Rama Rao and K. Satti Babu for maintaining the CREDAI-VSP office professionally and Smt Muthyalamma, for keeping the office spick and span.

Dear members, leading of an organization like our CREDAI is not a simple task. While discharging duties as an office bearer, there might be a few lapses. They might hurt some sensitive people. Therefore, I earnestly seek your indulgence and kindly forgive and forget such lapses, if any.

Thank you one and all, and thank you very much for your patient hearing.

(B. Srinivasa Rao) Hon. Secretary


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FIVE ONGOING REALTY PROJECTS IN INDIA WITH

TRUMP ORGANIZATION TIE-UPS

NEW DELHI: US President-elect Donald Trump, who has rooted for India and Indian Prime Minister Narendra Modi, has business interests in India, probably bigger than in any other country outside North America. Recently, there were reports about Donald Trump dumping foreign realty projects including one in India but Trump Organization said its five active projects in India would proceed as planned. The gross development value of the five projects is $1.5 billion. But India only gets the Trump brand and not his money. Trump Organization has brand-licensing agreements with local developers but made no equity investments. In India’s luxury real estate, the Trump name sells as is evident from price premiums on the Trump Towers apartments in Mumbai and Pune. Without investing a single penny in Indian real estate, Trump Organization can make millions in just licensing fees.

Below are the five ongoing realty projects in India with Trump Organization tie-ups: 1. Mumbai The 75-storey, 300-apartment luxury residential project called Trump Towers is in association with the Lodha Group in Lower Parel in Mumbai. It is likely to complete in 2018. The apartments are priced Rs 9 crore onwards. Among exclusive benefits for the residents will be access to a private jet service and a Trump Card which offers

special privileges at Trump hotels and resorts all over the world. The project has achieved a price premium of around 35 per cent. 2. Pune Built in association with Panchshil Realty in Pune’s Kalyani Nagar area, the project has two towers of 23 storeys each, with one apartment per floor. Bollywood actors Rishi Kapoor and Ranbir Kapoor have bought an apartment each spread over 6,100 sq ft for Rs 13 crore a piece. The project has received a price premium of around 60 per cent over neighbouring projects. 3. Gurgaon Donald Trump will lend his name to a new high-end 600,000-700,000 sq. ft. office building on Gurgaon’s Golf Course Extension Road, which will be built by IREO alongside a retail complex for about Rs 1,000 crore. 4. Gurgaon The Trump Organization has reportedly tied up with high-end developer M3M India to build a residential building in Gurgaon. 5. Kolkata Trump Organization has tied up with Unimark Group to build a 38-storey 400,000 sq. ft residential project with the Trump Tower on the city’s Eastern Metropolitan Bypass stretch.

TRUMP IN INDIA


It ‘s been almost two months since the government decided to ban Rs 500 and Rs 1000 notes, widely used for purchasing properties in black. The turmoil that the storm called demonetisation unleashed upon the real estate sector refuses to die down and experts predict that it will be some months before the dust finally settles. When it finally does, there will be much greater transparency and buyer confidence.Experts are of the opinion that the current slowdown in property sales will be short-lived and things will start improving as the government cracks the whip on benami property holders, banks reduce interest rates

and the Real Estate Regulation and Development Act 2016 (RERA) gets implemented by the states.

For buyers, the real benefits would mean being assured of a dedicated governing body, timely project completion, and complete information on the project and amenities promised. Developers, on the other hand, will have to adjust to the new environment. More specifically, they have to change their business model whilst adhering to stricter compliance norms, says Shishir Baijal, chairman and managing director, Knight Frank

(India) Pvt Ltd.All of the above-mentioned factors put together point towards a subdued beginning for 2017. With inquiries, walk-ins, and sales drying up as a fallout of demonetization, the first half of 2017 is expected to be largely muted for the sector with increased pressure on prices. As consumers are in wait and watch mode, demand could also be subdued due to the mindset that property prices could come down with a substantial lowering of home loan interest rates, he says.

While there is still a lot of confusion among homebuyers and real estate stakeholders following demonetisation, activity in the market is slowly picking up. “Some homebuyers have kept their buying decisions on hold until clarity emerges on demonetisation. But in the long run, demonetization will help organized developers procure land at more appropriate rates as such land will not be competing with buyers who were channeling their black money in land buying and holding. This will help in construction of more affordable houses and achieve the housing for all objective by 2022,” says Rohit Modi, vice president, Credai national (the Confederation of Real Estate Developers Associations of India). Developers keen to revive buyer interest in the market are offering several schemes. Some are giving home loans at 6% and 7% and others are offering ‘book now, pay after three months’ schemes. Buyers are also being assured of adjustment of compensation if prices fall further. This has led to a significant rise in interest in ready-to-move-in properties and projects nearing completion, says Brotin Banerjee, MD and CEO Tata Housing. Finally, experts say that demonetization is not enough and must be followed by consistent proactive measures, otherwise, the segment is likely to be flush with black money again.

PREDICTION 2017: EXPECT TRANSPARENCY IN PROPERTY MARKET; NORMALISATION

AFTER 6 MONTHS

TRANSPARENCY & NORMALISATION


OPTICAL PRESENTATION OF CREDAI VIZAG PROPERTY EXPO - 2016-17 HELD ON MARCH 3, 4 & 5

Minister for Human Resources Sri Ganta Srinivasa Rao, formally inaugurating the CREDAI-VSP’s Property Expo-2017, at the AU Engineering College grounds on March 3rd, as CREDAI-AP Chairman Sri K. Subba Raju and CREDAI-VSP, Chairman Sri K. Ramakrishna Rao, look on.

Important sponsors of CREDAI-VSP Expo, attentively hearing inaugural speech delivered by the Minister Sri Ganta Srinivasa Rao.

RIVETED ATTENTION

A bird’s eye view of the panoramic picture of the CREDAI-VSP’s Property Expo 2017.

PANORAMIC VIEW

INAUGURATION

A special attraction at the CREDAI-VSP’s Property Expo this time was the model temple of Lord Venkateswara Swamy, which attracted large number of the devotees. Here, Minister Sri Ganta Srinivasa Rao and MP Sri K. Haribabu, along with the CREDAI-VSP office bearers, Sri K. Ramakrishna Rao, Sri P. Koteswara Rao, Sri B.Srinivasa Rao and Sri KSRK Raju, offering prayers to the Lord of Seven Hills , are seen in the picture.

Lighting the Lamp: Lighting the Lamp is an auspicious and important part of inaugural ceremony. Here, Minister Sri Ganta Srinivasa Rao is seen lighting the lamp at the Property Expo.MP, Sri K. Haribabu, CREDAI-VSP Chairman Sri K. Ramakrishna Rao, President Sri GVVS Narayana and past chairman Sri MVV Satyanarayana are also seen in the picture.

AUSPICIOUS BEGINNING

SPECIAL FEATURES EXPLAINED

LORD OF SEVEN HILLS AT THE EXPO.

Past Chairman of CREDAI-VSP Sri MVV Satyanarayana, explaining special features of his project to the Minister Sri. Ganta Srinivasa Rao and MP Sri K. Haribabu at the Property Expo. Sri Ch Ram Kotaiah of BAI is seen observing keenly.



Sri V. Dharmender, EC member of CREDAI VSP, proposing a vote of thanks at the inaugural day function of Expo on March 3rd . Sitting on the dais (from left) are Hon Secretary Sri B. Srinivasa Rao, President Sri GVVS Narayana, Chairman Sri K. Ramakrishna Rao, past chairmen Sri B. Raja Srinivas and Sri K.S. Chandran, CREDAI-AP Chairman Sri K. Subba Raju and President Sri Are Siva Reddy.

Lucky draws at the Expo was a special attraction for the visitors of Expo. Here, Sri K.Haribabu is seen speaking after drawing the lucky draw coupon at the Expo. CREDAI-VSP Chairman Sri K. Ramakrishna Rao, President, Sri GVVS Narayana, past Chairman Sri MVV Satyanarayana and Hon Secretary Sri B. Srinivasa Rao look on.

MAKING DAME LUCK SMILESri D. Raja Rama Mohan Rao, AGM, SBI delivering his Speech Sitting (from left) Sri K.Rama Krishna Rao, Sri Raja Srinivas, Sri K.S Chandran, Sri K.Subbaraju, Sri A.Sivareddy.

Union Minister Sri M. Venkaiah Naidu visited the Expo on the second day and went through all the stalls. CREDAI- VSP Chairman Sri K. Ramakrishna Rao, Expo Convener, Sri P. Koteswara Rao, MP Sri K. Haribabu and CREDAI-VSP, Treasurer Sri KSRK Raju accompanied the Minister.

THANK YOU VERY MUCH

MINISTER’S MESSAGE

Lucky Winner. A gift being presented to the lucky winner in the walk-ins category. CREDAI-VSP Chairman, Sri K. Ramakrishna Rao, presenting a gift to the winner at the Expo. Sri E. Ashok Kumar, Sri D. Sivagovindam and A.Sivanand, all CREDAI-VSP office bearers, are seen in the picture.

GIFTS GALORE AT THE EXPO.

BUSY ENTRANCE


Panel discussions on important issues and subjects were organised at the Expo. Here (from right) Sri C.A.Prasad, Director,Metey Engineering and Consultancy and Sri S.Viswanath, CPO, Amaravathi Development Corporation, are seen explaining their views on the subject ‘Affordable Housing, Building Rules and Environment’ .

Kalyanam of Lord Venkateswra Swamy was performed at the model temple on the second day of the Expo. Women devotees are seen performing bhajan after the Kalyanam.

SEEKING BLESSINGS OF LORD OF SEVEN HILLSDEBATING IMPORTANT ISSUES

TEEMING WITH VISITORS, AN AERIAL VIEW OF EXPO.

An aerial view of the CREDAI-VSP Property Expo-2017.

CREDAI-VSP Office bearers with Members of Panel discussion at the property Expo. ALL SMILES! Minister For Panchayat Raj Sri Ch Ayyanna

Patrudu, delivering valedictory address at the CREDAI-VSP Expo on March 5th .Convener of Expo Sri P. Koteswara Rao, Co-Convener Sri E. Ashok Kumar, President Sri GVVS Narayana and Chairman Sri K. Ramakrishna Rao, look on.

Sri Ch. Chandra Sekhar, AGM,SBI, receiving a memento from Minister Sri Ch.Ayyanna Patrudu at the valedictory function of the CREDAI-VSP Expo on March 5th .CREDAI-VSP President Sri GVVS Narayana, Expo Convener, Sri P. Koteswara Rao, Chairman Sri. K. Ramakrishna Rao, look on smilingly.

MINISTER PRESENTS MEMENTO



Sri T. Yoganand IPS Commissioner of Police delivering message and presenting Aswini Mrudula Awards

ASWINI MRUDULA AWARDS

A section of Participants at The Regular meeting of CREDAI VSP held on March 6th

Members registering at the Annual General Body meeting of CREDAI-AP held at the Waltair Club on March 26th . (Sitting) Sri Ch. Govinda Raju and Sri N. Sivaji, both Joint Secretaries, are seen helping the members to register their names.

It’s Election Time : Election Officer Sri K.S. Chandran (with mike in hand) is explaining the process of election. Other members of election committee (from left) Sri K. Seetharam Reddy, Sri P.Rajasekhara Rao, Sri S.S.Balaram and Sri S.Venkata Ramaiah are also seen on the dais.

PHOTO GALLERY OF SOME EVENTS OF CREDAI VSP

Making A Point : CREDAI-VSP Vice President, Sri P. Koteswara Rao is seen making a point with the Chairman CREDAI-VSP Sri K. Ramakrishna Rao, as President Sri GVVS Narayana and Hon Secretary, Sri B. Srinivasa Rao, loon on attentively.


WHY BUYING HOME IN 2017 COULD BE A GOOD BARGAIN

A GOOD YEAR FOR BUYING A HOME

‘Infrastructure’ status to Affordable Housing

Allocation of Rs 23,000 Crore Pradhan Mantri Awas Yojana up from Rs 15,000 Cr

Tax relief on unsold stock for a period of up to one year

Holding period for capital gains tax reduced to 2 years from 3 years Budget 2017 brought cheers to the real estate sector which has been reeling under losses since demonetization. Among a plethora of provision for housing, the budget also attended to the long-standing demand of “infrastructure” status to affordable housing. The budget 2017 is expected to be a game changer for the real estate sector. “The budget has significantly enhanced the likelihood of realizing the goal of PMAY by 2022. Granting the long-standing demand of infrastructure is a major supply side intervention,” says Venkaiah Naidu, Minister of Housing and Urban Development.One of the key provisions of the budget that would shape the real estate sector going forward is ‘Infrastructure’ status to Affordable Housing. “Infrastructure status to the affordable housing segment would enhance resource

allocation for the sector by way of cheaper foreign funds and will be a priority lending for banks as well,” says Sunil Mishra, Chief Strategy Officer, PropTiger.com.

NAREDCO President, Praveen Jain adds, “The aim of building 2 Cr houses will now fulfill. The rate of interest for developers will go down and tax benefits will be extended to them.”As a result, real estate prices could come down in the year ahead. In an exclusive conversation with NDTV, Managing Director & CEO of National Housing Bank, Sriram Kalyanaraman asserts, “Expect low cost of fund to translate into low cost of housing.” Other key announcements in the budget include the allocation of Rs 23,000 crore under Pradhan Mantri Awas Yojana and tax relief on unsold stock for a period of up to one year, also the holding period for capital gains tax to be reduced to 2 years. “The change in the capital gains tax from the beginning to the end of a project with respect to Joint Development Agreements will prove to be an important impetus to such projects by reducing the cost of land to the developer” says Ravi Ramu, CEO & MD, VBHC. As cash inflow increases, one could witness homes getting cheaper and spacious in the years to come. This coupled with an interest subvention announced

by the Prime Minister will boost buyers prospect of securing a home. Rajeev Talwar, CEO, DLF reiterates, “A large provisions now will definitely mean that Housing For All will take off, it will be a big game changer in the economy.”

Even though buyers were expecting a rate cut and were in for a disappointment, most agree the budget 2017 will empower them to bargain harder. “On incentives part, not much has come up from budget, but at least now home buyers can sit with developers and ask them for a discount on pricing. Bargaining power now lies with the consumer,” says Rizwan Riaz, a home Buyer from Chennai. Summing up the budget 2017, Ashwinder Raj Singh, CEO – Residential Services, JLL India says, “Tax breaks and other sops will help builders cut their cost, improve their bottom-lines and get additional liquidity to improve efficiency. These steps, along with other impending regulatory breakthroughs such as RERA and GST will not only fuel demand but make the sector more efficient and organized.” So while the overall reaction to the Budget 2017 has been positive and is expected to cushion the impact of demonetization, it is the GST roll out this year that could bring further clarity in the Indian property market.


These tax benefits make buying a home using a loan an attractive proposition. Zeroed in on the apartment or villa you want to buy? A home loan comes right after. And even if you have enough savings stashed in to perhaps buy a home outright, you really shouldn’t. A home loan today comes at 9.5% rate of interest. Inflation measured through consumer price index is at around 6%. Now add all the tax benefits which this copy is all about and what you really pay as real interest to the home loan company is about 1-2%. So take your savings, put them in a good mutual fund, and make a beeline for a home loan. Here are the 4 tax benefits that make the math of taking a home loan so compelling Section 24 of Income Tax Act: Homeowners can claim deduction of up to Rs.2 lakhs on the interest they pay annually on their home loan. There are 3 conditions which need to be met

a) The loan must have been taken either for purchase or construction of a new property.

b) The loan must have been taken on or after 1 April, 1999, and

c) The purchase or construction must be completed within 3 years from

the end of the financial year in which the loan was taken. What happens if the property is not ready in 3 years, which is more common than rare in India! In this scenario, the aggregated interest will be allowed deduction in five successive financial years, starting from the year in which the acquisition/construction was completed. This benefit is available to everyone, whether you live in the house or don’t. But if the property is rented out, there’s an additional benefit. Your entire interest on the home loan becomes deductible giving you a huge tax edge.

Then come section 80C of the Income Tax Act: You can deduct the principal amount if the apartment or house if self-occupied. Total deduction with a ceiling of Rs 1.5 lakh is allowed for such payments under the overall limit available under Section 8OC. Stamp duty, registration charges and other expenses related directly to the transfer are also deductible under this section, subject to a maximum deduction amount of Rs.1,50,000. You should claim these expenses in the same year you buy property in.

The law does make an exemption and

allows deduction in case your city of employment is different from where you have bought the property in,

Also know about the Section 80EEE of Income Tax Act: This deduction has been recently added and is available only for first time homebuyers provided

a) The cost of property does not exceed Rs 50 lakh while maximum home loan is Rs 35 lakhs b) Home loan must be sanctioned between April’16 to March’17 c) No other property should be owned by the tax payer on the date loan is sanctioned

This deduction is made be available from Financial Year 2016-17 onwards.Both resident and NRIs are eligible to claim this benefit.

And the best part: If you buy the property along with your partner, spouse, or parent, joint owners who are also co-borrowers can claim the above benefits separately. Hence, double the benefit. But the important point to note is that you may have jointly taken the loan but if you are not a co-owner in the property, then you cannot claim these tax benefits.

HOME LOAN IS A GOOD IDEA

4 REASONS WHY BUYING A HOME USING HOME LOANS WILL HELP YOU SAVE MONEY


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India’s Silicon Valley Bangalore has been named the ‘most dynamic city’

Bangalore: India’s Silicon Valley Bangalore has much to cheer. It has been named the ‘most dynamic city’ beating some of the top cities in the world. According to JLL’s City Momentum Index, Bangalore topped the charts and even managed to beat US’s Silicon Valley which emerged 3rd on the list. The ranking is based on a broad range of real estate and socio-economic factors. It doesn’t gauge the ‘best city’ but highlights city’s that are best positioned to compete in today’s ever-changing economic landscape.

Edge above the Rest Bangalore is said to have had the edge above the rest as it has an established IT sector, it is a vibrant start-up hub and also has an ever growing demand

for commercial office spaces.” Bangalore has scored a lot in terms of it being a tolerant city, people friendly in terms of technologies used in day to day affairs and transparency in terms of real estate as well as governance” said Ashutosh Limaye, Head-Research & REIS at JLL, an international consulting company that conducted the study. Cities were scored on 42 variables under 3 different criteria’s such as socio-economic momentum, commercial real estate momentum and long-term momentum. Parameters like Economic output and Population were considered under the socio-economic metrics. Transparency and Absorption rates were identified for the commercial real estate metrics. Higher education, Infrastructure, and environmental quality were some of the factors considered under the long-term momentum.

‘Govt & Industries Co-Working’ Industry experts cheered this new recognition and said that it is Bangalore’s ability to adapt to new technology and the availability of talent in abundance which has worked for the city. Suresh Hari, Secretary at CREDAI, Bengaluru is of the view that the government’s efforts to push infrastructure and feed the demands of the industry has helped in achieving this tag. Indian cities seem to have overtaken China this time around with 6 cities in the list of top 30.Hyderabad has emerged 5th, whereas Pune and Chennai beat New York, Paris, and San Fransisco to make it in the top 20. And Even though among the top 30 factors such as poor environmental quality and affordability pushed New Delhi to 23rd and Mumbai to the 25th Position respectively.

BANGALORE RANKED ‘MOST DYNAMIC CITY’ IN THE WORLD

INDIAN CITY IN WORLD RANKING


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