Page 15 - Banking Fiannce March 2018

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

RERA petitions dismissed 4.4 lakh houses unsold at
The petitions against RERA claimed that the Act, and the constitution of a State-
level authority for its implementation, was arbitrary, the end of 2017
and therefore unconstitutional. A bench of Bombay HC A recent survey carried by property
Justices Naresh Patil and Rajesh Ketkar allowed a way consultant
out for developers in the judgement by permitting the JLL India, re-
state-level RERA Authority and the Appellate Tribunal vealed that
to consider delays on a case-to-case basis, and not to in 2017, a to-
cancel projects or developers' registration in cases where the delay was caused tal of 4.4
due to "exceptional and compelling circumstances." lakh houses were unsold at the end
of 2017. The survey was carried in
Circle rate relief seven major cities, from which Delhi-
The Budget had proposed tax relief for buyers and sellers by allowing property NCR had maximum number of prop-
to be valued at up to 5% below circle rates for calculation erty hanging.
of stamp duty and capital gains tax. Circle rates, also known Data showcased that in Delhi, about
as ready reckoner or guideline value, have been revised 1,50,654 units remained unsold in
upwards by most local governments over the last 15 years. 2017, however, Chennai had the
These rates were introduced to prevent tax evasion by de- highest percentage of complete un-
claring a lower sale price of the property on paper. Stamp duty should be col- sold properties somewhat 20%.
lected on higher of either on the sale proceeds or the circle rate value. Ramesh It needs to be noted, that Delhi is
Nair, CEO and Country Head, JLL India, said the proposal would reduce difficul- among most expensive premium of-
ties for sellers. "With this, the government has recognised that there could be fice locations in world, and earlier
price variations within a zone or locality that has the same circle rate," he said. another study revealed that, most of
homebuyers prefer to purchase a
Affordable housing policy at Haryana
property close to their workplace in
Haryana government plans to revamp its affordable housing policy to achieve this city.
the goal of Housing for All by 2022 and ensure that even
Last year in December 2017, the JLL
old cities under the jurisdiction of urban local bodies are
brought under its ambit. Chief minister Manohar Lal Khattar Global Premium Office Rent Tracker
had approved the new affordable housing policy to make report that Delhi stood at sixth place
sure that the target of Pradhan Mantri Awas Yojana (ur- in the world's most expensive pre-
ban) is met. The new policy seeks to provide reasonably priced units in older mium office with a rent of $147 per
cities within the jurisdiction of urban local bodies, the statement said. square foot per year.

BANKING FINANCE | MARCH | 2018 | 15