Delhi-NCR, Mumbai, Pune Biggest Markets For Student Housing In India: Report

By Bajaj Investors

Delhi-NCR, Mumbai and Pune are the three biggest markets for student housing in the country, and these cities require an additional 4.75 lakh beds from organised co-living operators to meet the current demand, according to a report. Cushman & Wakefield (C&W), in association with the Student Accommodation Providers Forum of India (SAPFI), on Wednesday released a report “Exploring the Student Housing Universe in India City Insights”. The report has identified education clusters in the cities of Bengaluru, Delhi-NCR and Pune, the three biggest markets for professionally managed student accommodation (PMSA) operators. The report estimated 9.08 million migrant students in India, amounting to over 24 per cent of 37 million total student enrolments in the country's higher educational institutions (HEIs) for the year 2018-19. "Delhi-NCR with 7.45 lakh students enrolled in HEIs as of 2018-19 has 50 per cent outstation students. There is demand for additional 2.5 lakh beds from PMSA operators," it said. Bengaluru has the highest number of HEIs in India with student enrolments estimated at 5.38 lakh. With 60 per cent outstation students, additional demand currently stands at around 92,000 beds, the report said. In Pune, the report said student enrolment stood at nearly 4 lakh. With 60 per cent outstation students, additional capacity requirements in PMSA segment is 1.33 lakh beds. Anshul Jain, Country Head and Managing Director-India, Cushman and Wakefield, said: “The significant mass of migrant students in the higher education sector today demand and expect quality student accommodation facilities providing food, security and a range of amenities. While globally, PMSA has found its footing as part of the mainstream real estate sector, in India it is still in a nascent stage." With policy support and private investments, Jain said the student housing segment could be the next growth driver in the overall realty sector. Kaushal Mahan, Convenor, SAPFI, said, “The sector is expected to witness a huge amount of foreign direct investment inflows resulting in job creation and economic development." Mahan said this segment requires encouragement from the government for building a favourable policy ecosystem.

After medi-city, IT-city: Bio-Technology park to come up near Mohali

By Bajaj Investors 

Following the setting up of medi-city, an ancillary site comprising multispeciality hospitals, in New Chandigarh (Mullanpur Garibdas) and IT-city, a site for IT companies, near airport road, the state government is set to establish a Bio-Technology park near Mohali. The government will be offering land to Bio-Technology companies, for setting up the park, in the Progressive Punjab Investors Summit 2019, scheduled to be held in December. The government has planned to acquire 84.1 acre land in Chao Majra, Chilla, Raipur Khurd and Mauli Baidwan villages for the same. The project will be located at a distance of 9 km from the international airport and 13 km from Chandigarh. A Greater Mohali Area Development Authority (GMADA) told Chandigarh Newsline that the land would be offered for companies to set up Bio-Technology park as private and state universities were also coming up in the area, which would provide ample workforce for the companies. National Institute of Pharmaceutical Education and Research (NIPER) is also near the project site. “The government has allowed setting up a mixed land use zone in Rajpura, near Mohali and the Bio-Technology park is being planned in a way that the requirements of the industry can be met at one go. A green industry is also coming up at Rajpura, which will boost the new project,” the officer added. On being asked about the response of the companies to the project, the officer said that during investors summit, a Memorandum of Understanding (MoUs) would be signed with the Bio-Technology companies, however, at present, there was no company which had showed interest. The officer said, “We have estimated that the establishment of a Bio-Technology park will generate employment for more than 50,000 youths of the state and will also provide business to hundreds of people and Small and Medium Enterprises (SMEs). The state government is working to promote medical tourism and Bio-Technology park is a part of this plan.” At present, the IT city is in its nascent stages of development, while the work for medi-city has almost reached its completion. However, the state government has not yet declared a dedicated zone for setting up the Bio-Technology park.

Finance Minister hints at booster dose for realty sector

By Bajaj Investors 

Finance minister Nirmala Sitharaman on Tuesday said the government and Reserve Bank are working to resolve the issues being faced by realty sector. Admitting that realty sector has been left out of the booster measures announced earlier, she said the sector has a spillover effect on many sectors, especially the core sector. "The government is very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector," she said at an NSE event. It can be noted that after the July budget roiled the market and business sentiment, the government has rolled back many of the tax measures and also went to the extent of drastically cutting corporate tax to 22 percent--making the biggest tax giveaways to the tune of Rs 1.3 lakh crore. Admitting that the so far announced measures have not helped revive the sentiment in the real estate, she said since August the government has been making various interventions to revive the market and consumption demand. Still there is a lot of work to be done and "one particular sector which I have not touched, but which has a lot of positive impact and also can effect an impact for the stock market, is the real estate sector." She said many funds are ready to invest but want more policy support. "There are many alternative funds which are now approaching us saying we would like to do something with you all so long as there is some supporting mechanism available for reviving the realty sector," she said. It can be noted that since the note-ban in November 2016 and the soon-to-be followed Rera introduction in May 2017 and subsequent rollout of the GST in July 2017, the realty market, which used to thrive on black money all these years, was hit hard and is yet to recover from the triple shocks. The liquidity crisis in the NBFC sector has also played its role. 

Tribune flyover soil testing work starts

   

By Bajaj Investors 

As the UT Administration has finalised the tender for the construction of the Tribune flyover, the company selected to handle the project has started a soil-testing survey for the much-awaited project. In the financial bids opened last month, the UT Engineering Department had selected a firm, DRAIPL-DMR (JV), to carry out the project. Sources said the firm had appointed Dr Ghuman and Gupta Geotech Consultants, Mohali, to carry out the soil survey to know the load-bearing capacity of earth on stretch of the flyover before starting the construction. Inderjit Singh, site engineer of the company, said the soil testing would take around 70 days. He said the soil testing would reveal the load-bearing capacity of the earth. The foundation design for the project will be based on the report. The firm, DRAIPL-DMR (JV), was selected as it quoted the lowest rate of Rs 137 crore to carry out the project in the financial bids opened last month. The Administration has now sought the concurrence of the Ministry of Road Transport before officially allotting the work. The company will have to complete the project in two years. The Administration invited bids for the project in 2019. The project is already running late after its foundation stone was laid by Punjab Governor and UT Administrator VP Singh Badnore on March 3, 2019. The flyover project will start near the GMCH roundabout and cover Tribune Chowk along Dakshin Marg. The construction of the flyover and the underpass will help ease traffic congestion at the busiest junction of the city, having the highest concentration of vehicular traffic. Flyover will help ease traffic congestion The flyover project will start near the GMCH roundabout and cover Tribune Chowk along Dakshin Marg. The construction of the flyover and the underpass will help ease traffic congestion at the busiest junction of the city, having the highest concentration of vehicular traffic.

Government considering giving more power to RERA authorities

By Bajaj Investors 

Real estate regulators from across states have gathered in Lucknow and sources said they would push for amendments in the Real Estate Regulation and Development Act (Rera) to give them more teeth, particularly to execute orders passed by them. They are also likely to flag emerging issues before the government including financing requirement for the sector, which is saddled with stuck projects across the country. “Our ultimate task is to see that stuck projects get completed and hence we have to look at liquidity issues,” said a regulator.On Sunday, housing secretary Durga Shankar Mishra hinted that the government would consider amendments in the law. “He said government is considering to give more power to regulators so that they can take bold steps,” an official statement by UP Rera said. A couple of Rera chiefs TOI spoke to said though the law had made an impact across states, there were some challenges to take it ahead. They said some legal issues needed to be resolved for effective functioning of regulators. “This is the first time that there is a concerted effort to identify issues, discuss them and make recommendations to the government. The main focus is how to strengthen the system,” one of them said.

Tips To Conduct Background Check Of Landlord

October 14, 2019 By Bajaj Investors 

Every residential structure is not just a property but it is a home for most of us. However, the job opportunities today push many professionals to live away from home and thus the person turns into a tenant. This scenario begins with the search for a rental property and thus we let you know the basic tips to conduct a background check of the landlord. So, read this entire post and safeguard yourself from frauds who are likely to be a problem for you.

1. Enquire from Neighbours

At the time of site visit, try to have small conversations with the neighbours and this must include the families living nearby, the shopkeepers of the locality and do not forget to have a detailed conversation about things likes how many people are there in his/her family, how often do they socialize, are they soft-spoken and more. All this gives you a clear understanding of the family and this is important as the landlord should neither be an introvert or too friendly.

2. Ownership Check

Pay a visit to the local authority office and figure out if the person is the original property owner. This is an important tip to check the background of a landlord as you must not get caught in a foul play as it is a threat to your security.

3. Check Criminal Record

As a tenant, you must know if the landlord is involved in any criminal activity or not. Also, it is your responsibility to check for the criminal record of the person as he/she is likely to be involved in any heinous crime in the future also and this is not the right thing socially and personally also. So, do check for the character check of the landlord before finalizing a rental property.

4. Ask for Details

Background check is of utmost importance in case of renting a home and hence you must ask a few questions to the landlord. This includes basic points like:

• Where does the landlord stay?
• Who will bear the maintenance cost?
• Is any tenant vacating the property?
• Are the visitors allowed to stay?
• If he/she has a problem with late night outing or entry?
• Do you need to pay parking charges?
• Is the pet allowed?

Conclusion:

The motive behind doing a background check is similar for the tenant and landlord as the main purpose is to figure out that the person residing in the property is not a threat to the society and thus it is essential to know if the landlord is involved in any wrong activities or not.

Real Estate basics: What is Long Term Capital Gain ?

Posted on 05 Oct 2019 By Bajaj Investors




Real estate basics: What is Long Term Capital Gain?

What is a ‘capital gain’ when it comes to real estate and what are the tax implications of long-term capital gains for a property owner?

We explain

Capital gain refers to the profit that one earns through the sale of a capital asset, such as real estate, or even stocks or bonds. It is the difference between the selling price of the property and its purchase price. Depending on the period for which the property was held, the capital gain can be either a long-term capital gain or a short-term capital gain.

The gains arising from the sale of a property that has been held by the assessee for more than a specified period of time, is termed as long-term capital gains (LTCG). In the Union Budget 2017-18, the finance minister proposed to reduce the tenure for LTCG from three years to two years. With this, any immovable property that is transferred after April 1, 2017, will be treated as long-term, if it has been held for more than 24 months. This move is expected to be especially beneficial to property investors, who are looking for a quick exit option to switch their investments or to book profits.

How is long-term capital gains computed?

Like any other asset, real estate has become a powerful investment tool for those who want to buy and sell, with the aim of gaining from a property’s capital appreciation. To calculate the LTCG, from the sale price of the property, one must deduct the cost of acquisition, the money spent on improving the property (both adjusted for inflation, called ‘indexation’) and the transfer cost. This calculation can be represented by the formula below:

Long-term capital gain = Sale price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer)

Indexed cost = Cost incurred x (CII of year of transfer / CII of year of acquisition or expenditure)

Where CII is the Cost Inflation Index specified by the Income Tax Department.

Tax on long-term capital gains

Any immovable property held for more than two years, is treated as long-term and the profit on such sale is taxed at 20 per cent, plus cess and surcharge. However, a taxpayer can claim exemption from long-term capital gains tax, under certain conditions:

Section 54 exempts LTCG tax, arising on the sale of a residential house, if the indexed capital gains are invested in the purchase or construction of another residential house, within the specified period.

Section 54F exempts LTCG tax, arising on the sale of any asset other than a residential house, if the net sale consideration is invested for the purchase/construction of a house, within a specified time period and subject to fulfilment of certain other conditions.

Section 54EC allows an exemption of up to Rs 50 lakhs from LTCG tax, if the indexed capital gains are invested in government-notified bonds, within six months.

With respect to investing capital gains in the purchase of a new house, if, till the date of filing one’s income tax return, the gains are not utilised to purchase or construct another house, then, one must deposit the unutilised amount in a Capital Gains Deposit Account in any public sector bank. The new house can be purchased or constructed, by withdrawing the amount from this account, within the specified time limit.