Page 18 - BANKING FINANCE JULY 2016

HOUSING

HOUSING

NEWS

Centre to launch portal for smart cities Housing sales in seven

The Ministry of Urban Development ies, academia, researchers, and tech- major cities drop over
will launch a new portal, SmartNet, to nologists and creating an ecosystem of
aid the development of 2% in FY16
smart cities under the learning and disseminating
government's flagship mis- information among city Housing sales fell 2.2 per cent to 1.58
sion. managers and stakeholders lakh units in
in urban transformation. seven major cit-
ies last fiscal
"Prime Minister Narendra "SmartNet will become the year, but the
Modi is expected to launch primary portal for govern- market is ex-
SmartNet on the first anniversary of ment to government; government to
the smart city mission on June 24," a business; and business to government pected to improve by next March on
senior official in the Ministry said. linkages for the urban sector in India," the back of lower interest rates and
the source said, adding that it will of- a fall in prices, according to a report
The initiative is aimed at developing a fer real time data for all cities. by property consultant JLL India.
platform for communication among cit-
The real estate market is facing a
Service tax relieved on under construction flat slowdown from the last 3-4 years
leading to significant delays in
In a verdict that should cheer millions of home buyers, the Delhi high court has held completion of projects and protest by
that no service tax can be levied on contracts between buy- home buyers.
ers and builders for purchase of under-construction flats in a
housing complex. The bench, however, clarified that service "The real estate sector saw the
tax was justified on extra charges paid by a buyer for "pref- worst phase in 2015-16 with sales
erential location" of a flat in the complex since there is "value and prices plummeting. High inven-
addition" in the process. While the ruling referred to only tory levels, diminished demand, and
limited liquidity affected new
these two buyers, others may now claim relief on grounds of parity. launches. Overall residential sales
were down by 2.2 per cent in FY
New launches in housing sector in eight cities down 9% 2015-16," the report said.

Saddled with huge unsold inventory, the number of new launches across eight As per recent data, JLL said 1,58,211
cities in the housing market reduced by nine per cent in the last six months, units were sold in fiscal year 2015-16
real estate consulting firm Knight Frank India said. as against 1,61,875 units in the preced-
ing fiscal year in seven major cities -
"New launches reduced by nine per cent in six months from 117,200 units in H1 Delhi-NCR, Mumbai, Kolkata, Chennai,
2015 (first half year of 2015) to less than 107,120 units in H1 2016," a firm's Hyderabad, Bengaluru and Pune.
report said.

18 | 2016 | JULY | BANKING FINANCE

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