A growing commercial hub, in sync with its excellent connectivity, it offers logistics hubs in its periphery.
On the InfoTech Highway, it has proven to be the ideal location for IT and ITes, catering to BFSI while also offering excellent office and work spaces to suit requirements of the small entrepreneur as also large floor plates to meet the requirements of large corporates.
Medical Tourism Hotels, F&B outlets. Entertainment spaces including theaters, multiplexes and open air auditoriums, Sports complexes, gardens, The City of Lakes is bordered on one side by the verdant, green national Park on the other side lies the Azure Blue Creek and Ulhas River. Integrated townships and stand-alone buildings. Skyscrapers and low rise structures – this is a poetry written in cement and steel. Scripted by architecture, created safe and secure through structural stability.
These are options for investment, to create wealth and to grow wealth. In a well-regulated real estate market governed by RERA. Real estate created by developers who are creators of prime property – the ideal investment option for the smart investor.
Here are the 7 Reasons to Invest in Thane
Centre-Point & A Growth Centre: It Hub, Logistics Hub, Retail Hub Etc.
Lifestyle-Plus Safe & Secure City.
Excellent Ready & Upcoming Infra.
Clean, Green, Serene City: Ideal Place To Live, Work, Play.
Hub Of Relocation By Major Corporates.
Steady Demand And Appreciation: Thane Realty Delivered During Pandemic.
A Real Estate Product To Suit Every Budget: Includes Affordable To Mid-range To Luxury.
We examine what a lease agreement is and why a rental agreement is not always a lease agreement
Not many new tenants might be aware of the difference between lease and rent until their new situation forces them to understand the lease vs rent riddle. Although the two terms – lease and rent – are often used interchangeably, leasing a property is not the same as renting a home.
This is true if we went by the strict legal division created between the two arrangements of tenancy. A tenancy could either be created through a lease agreement or a rent agreement. It is the duration of the tenancy period and rent payment that differentiate rent agreements from lease agreements. As a result of this, the monetary implications of leasing and renting are also different.
Lease vs rent
A rent agreement, a document signed between the tenant and the landlord to formalise the renting process, can either be a lease or a licence. Whether a tenancy could be executed through a licence or a lease agreement is primarily decided by the tenancy period. Note that the two arrangements are governed under different laws and thus, have varying characteristics.
Difference between lease and rent
What is a lease agreement?
Section 105 of The Transfer of Property Act, 1882, defines leases. According to this Section, a lease ‘is a transfer of a right to enjoy a property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms’. For a rent agreement to qualify as a lease, it must fulfill the following conditions:
The landlord has to transfer the right to make use of a property, to the tenant.
This arrangement has to be for a specific period or for perpetuity.
The landlord has to receive a monthly rent in exchange for transferring the right to enjoy his property to the tenant. Apart from cash, the two parties can enter into an agreement where the tenant could pay ‘a share of crops, service or any other thing of value’.
A lease contract must be signed, when the landlord plans to let out his premise for a long period – this could range from 3 years to eternity. Also, a lease deed needs to be stamped and registered. Owing of the registration, lease agreements are generally not easy to terminate.
What is a lease deed?
A lease deed is a written contract between the property owner and the tenant that carries all the terms and conditions. A lease deed is signed between the two parties at the time of renting of commercial property. A lease deed has to be registered, if the lease period is for more than 11 months.
Leasing is more common in commercial renting
Owing to the high value involved in commercial transactions that require proper legal protection to both, the landlord and the tenant, leasing is more common in the commercial real estate segment. In such cases, the entire exercise is more formalised. The same is not true about renting in the residential segment, especially in the low-cost or mid-range property segments, where both, the tenant and the landlord, often want to skip the hassle of doing the paperwork and base their decisions pertaining to tenancy on their instinct or gut feeling.
What is a rent agreement?
Rent agreements signed for a 11-month period fall under leave and license contracts and have no validity under the rent control laws. Rent control laws, which differ from state to state, have under their purview all lease agreements that are conducted for a period of at least a year. Landlords, who rent their premises under the rent control laws, will find it extremely difficult to revise rents and evict tenants. Since the Model Tenancy law has now been approved by the union cabinet, all rent agreements that are executed for period exceeding 11 months, will be guided by the rules set up under the new law. However, states will come up with their own version of the model tenancy law or change their existing rental laws before that can happen.
Lease vs rent: Key differences
Particulars
Lease
Rent
Type of contract
Lease
Leave and licence
Parties
Lessor and lessee
Landlord and tenant
Payment
Monthly
Monthly, quarterly, yearly
Maintenance responsibility
Lessee
Tenant
Expiry
Expires at date mentioned
Expires at date mentioned
Time period
Long term
Short term
Ownership
Remains with lessor
Remains with landlord
Change in contract
No change for the period fixed
Changes possible
Difference between rent and lease
Most rent agreements do not fall in the category of a lease but under licence agreement. This is why a tenant must examine what a leave and licence agreement is.
What is a leave and licence?
Section 52 of The Indian Easements Act, 1882, defines leave and licence agreements. According to this section, ‘where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful and such right does not amount to an easement or an interest in the property, the right is called a licence’.
The Supreme Court, while adding further clarity to the section, said: “If a document gives only a right to use the property in particular way or under certain terms, while it remains in the possession and control of the owner thereof, it will be a licence. The legal possession, thereof, continues to be with the owner of the property but the licencee is permitted to make use of the premises for a particular purpose. But for the permission, his occupation would be unlawful. It does not create in his favour any estate or interest in the property.” For a rent agreement to qualify as a leave and licence agreement, it must fulfill the following conditions:
A leave and licence contract is entirely permissive in nature.
A license cannot be transferred or assigned.
The landlord grants a right to the tenant to do something, which will not be legal if an agreement in this regard is not signed.
This right does not amount to an easement or an interest in the property.
Commonly, landlords and tenants enter into rent agreements for a period of 11 months, to avoid legal complications. A rent agreement of 11 months, carried out as a leave and licence contract, has no validity under the rent control laws. These laws would only be applicable, if the period mentioned in the agreement is a year or more.
Rent agreements that fall under leave and licence contract also give greater freedom to both, the landlords and the tenants. As the licence can be terminated at will, no form of lock-ins imposed in the agreement would be valid, even if the agreement says so.
Benefits of rent agreement
For landlords
A lease gives to the tenant an exclusive interest in the property, whereas a licence does not.
A licence cannot be assigned / transferred.
A licence agreement is easy to terminate.
It is easier for the landlord to change the terms of a licence agreement, as compared to a lease agreement.
For tenants
Rent agreements involving licences are for short periods, compared to leases.
No requirement to provide long notices for vacating the premises in a licence agreement.
Lease vs rental agreement: Key takeaways
Rent agreements that work under the leave and licence contract are more common in the residential real estate segment, where the entire exercise is more informal.
Rent agreements in India
In India, rent agreements in the residential segment are typically signed for a period of 11 months, to avoid the legal complexities involved in the signing of a lease. The main reason for this, is that rental agreements of a period less than a year do not require registration. A document that enables tenancy for a period of less months, does not require registration and attains the form a licence. In the commercial segment, however, leases are a norm, since they span longer tenancy periods.
Legality involved
Also note that with states implementing the draft model tenancy law of the centre, all rent agreements in India will have to be made and executed in line with the provisions in the respective state-specific laws. The Uttar Pradesh government, in January 2021, for example, promulgated a tenancy ordinance, with an aim to safeguard the interests of landlords, as well as tenants. The law is likely to bring down tenant-landlord disputes, especially in high-intensity rental markets of Noida, Greater Noida and Ghaziabad, by clearly specifying the duties and responsibilities of the transacting parties.
High cost of real estate kills the very purpose of setting up commercial units within housing society premises.
In a housing society, the convenience shops are a boon. However, what may seem like a convenience for a large number of residents of the high-rise buildings, is more often bad business sense for investors. Many dysfunctional commercial units within housing societies, whether for reasons of high rentals or cluttered competition, are tell-tale signs of that.
Investors often point out that the society shops are not worth the investment due to high real estate costs. In many cases, the complaints are justified. How could a developer sell commercial units at the rate of Rs 18,000 per sq ft in an affordable housing project, where the average residential units cost Rs 3,500 per sq ft? In such cases it may take an indefinite period for the investors to break-even.
Take the case of Greater Noida West, a residential market with no less than 3.5 lakh upcoming apartments. Every housing society has shops and the over-supply is huge. Rajesh Singh bought two shops at Rs 50 lakhs each, with the expectations of earning monthly rentals of Rs 50,000 from each. This expectation of 12% rental returns could not be termed as unreasonable. However, given that only around 1.5 lakh apartments in the micro-market are ready for occupancy, there seems to be over-supply. All that he is getting is 6% rental returns with no scope of capital appreciation. Off and on, tenants keep leaving the shops with complaints of business losses, he says.
Advantages of society shops
Convenience to residents
Quick home delivery
No uncertainty with online delivery timings
Saves time and fuel
Disadvantages of society shops
High real estate cost
Difficult to achieve break-even, with daily-use items
Vast online choices versus limited inventory with society shops
Competing businesses
What is the purpose of society shops?
The main purpose of the society shops is to offer convenience to the residents. They are conceptualised with the perspective that the residents need not step out to get their daily needs. At present, the commercial FAR (floor area ratio) is set at 2 to 5, depending on the size of the society.
However, the intent seems to be that of investment and returns and not the need to be served. No developer has, thus far, offered the society shops on the lease model. Without exception, all belong to the outright sale model.
The moot point for the investors is whether the society shops are worth the price, considering the high real estate cost of doing business per sq ft. Should the price of society shops be capped, proportionate to residential selling prices?
Society shops: What is an ideal price?
Aditya Kushwaha, CEO and director, Axis Ecorp, disagrees with the concept of price ceiling, pointing out that there is limited inventory available for society shops. If there is a price cap on these shops, they make little business sense from a developer’s perspective. Since these shops are a lucrative proposition, these enjoy a greater demand. “A developer has to allocate resources, efforts and inventory into establishing these shops at convenient spots. We believe that market forces are the best judge, to determine the price based on the location, size and footfall. Moreover, there is no stipulated body that can enforce a capping or make sure that the price capping is being adhered to,” says Kushwaha.
Vinit Dungarwal, director at AMs Project Consultants, believes price is a critical factor but not the only governing factor. For commercial real estate projects, location is another important consideration. Society shops have a location advantage as they are strategically located inside the housing complex and enjoy greater footfalls. The biggest USP for these shops is the convenience that they offer to the residents.
“Most of these shops come at a premium pricing. Whether these shops are worth the price, depends on the demand and footfall that they can generate. It is also dependent on how competent the manager is, in managing the stocks and keeping the goods moving. There is a need to cap the prices of society shops, in proportion to the place and footfalls they can attract. Also, since these shops are designed to suit the needs of the residents, it is unfair to classify them under the commercial segment. There would be greater demand for these convenience shops if they are priced better,” says Dungarwal.
Factors that could make society shops lucrative for investors
Price capping of real estate
Lease model by developers in large format townships
Long-term leasing
Tax benefits like residential units
Lower maintenance and upkeep cost
Loading that is similar to residential units
Factors that could make society shops lucrative for investors
Price capping of real estate
Lease model by developers in large format townships
Long-term leasing
Tax benefits like residential units
Lower maintenance and upkeep cost
Loading that is similar to residential units
Should you invest in society shops?
Having larger shopping complexes in the residential areas often adds to the issues. There could be issues pertaining to noise, security and privacy. However, from an investor’s point of view, one has to look at the following metrics before making a purchase commitment:
First and foremost, is whether the catchment area is large enough for shops to do business. Do the society shops can also cater to the neighbourhood societies?
An investor should also assess the potential of society shops in competition with the local kirana shops, as well as any high street or malls within walking distance.
One should also consider the price of the society shop vis-à-vis the segment of the housing. The purchasing power of the residents is critical for the shops to succeed in the housing societies. Reasonable rental potential is also subject to the investment versus return.
Fourth consideration is the future development potential of the area. A developing area has better chances of capital appreciation than a saturated micro-market.
Finally, the investor must also check the loading percentage. The developers more often than not go up to 50% loading with society shops, as compared to 25%-35% loading on the residential units.
Grade A buildings are those that enjoy a premium over the average rent prevailing in the area. Here’s all you need to know about Office Building Classification.
One of the crucial steps to take before investing in real estate is to do a thorough real estate market research of the city where you are planning to buy a property. It is far easy to study market trends, compare sale prices, and gain an overall perspective before deciding on what works best for you in today’s digital age. It allows you to make error-free decisions and gauge an understanding of when, how and where to invest. Deciding on the right city is also an important decision. Everything comes into interplay here – the economic and infrastructural developments in the region, road, highway and expressway connectivity, and the property’s strategic location.
Grade A
Grade A buildings are those that enjoy a premium over the average rent prevailing in the area where they are located because they a usually newly built and have all the requisite infrastructure. These buildings are the best looking buildings of the city and have very good amenities. They conform to all the legal requirements of the zone of the locality where they are constructed and also have features like fire prevention system, fire management system, earthquake resistant structures etc.
Grade A commercial property spaces have very good security features and a tenant can be free from any headache that may arise in day to day operations. These buildings are professionally managed and have adequate parking for all the corporate tenants, their employees and their guests who may be visiting from time to time. In the Western Countries like USA or UK, these buildings usually have a size in excess of 2 lakh square feet. However, in India these buildings can be smaller of the size of 1 lakh square feet or so.
Grade A commercial buildings get famous corporates as tenants and often compete among each other to house the biggest of the companies. These buildings also have start of the art HVAC (Heating Ventilation, Air Conditioning), very safe elevators and outstanding concierge services. The utilities like water and electricity is extremely efficient. The architecture of such buildings like Grade A office spaces is also noteworthy, conforming to latest design efficiency standards and adequate ventilation and natural lighting provisions. These buildings often have cafeteria, food court, restaurants, ATMs, coffee shops etc. They are usually found in central business districts and in global cities like London or New York, they might even have large open spaces or greenery or some kind of landscaping. However, In Mumbai or Delhi, Garde A buildings usually do not have much of landscaping or greenery but conform to other standards.
Grade B
These buildings are not as centrally located and are usually not architectural marvels but still have professional management and decent location. These buildings have elevators that do the job but are not start-of-the-art. These buildings may compromise a bit on the shine and glitzy part. They are usually older than Grade A buildings and almost always have had tenants earlier that have now moved out. These buildings do not compete amongst each other to get Fortune 500 companies as tenants and the water and electricity systems are neither faultless nor super-efficient. They may not even have modern sophistication like earthquake resistant structures and waste recycling units. These buildings thus command rent which is average rent of the area where they are located. These buildings may also compromise on the parking area, having just enough for the employees of the corporate tenants and not for their guests. There are minor repairs required from time to time but overall construction is satisfactory. The security arrangement is adequate but not hi-tech. The building would have middle sized companies as tenants and there may or may not be café, restaurants and food court.
Grade C
Grade C Buildings would be compromising on several factors like parking and security. There will be no café or restaurant inside the premises. There would be frequent repair work but not to the extent that the building will not be inhabitable at all. The parking will be uncovered and usually not enough to accommodate vehicles of all the employees of the corporate tenant. For a tenant that gets a lot of quests or visitors, Grade C building may not be ideal because of parking and other issues. These buildings are usually the oldest building of towns and are as far away from architectural marvels as they can be. There will be no lobby area and may not even have elevators in the Indian context (Delhi Mumbai, Kolkata and Chennai). However, in Western countries, even Grade C buildings will have a lobby and elevators. The rents of these buildings are at the lowest end of the bracket. Grade C buildings are suitable for back-end operations of companies where there is little or no client interaction required. In certain Grade C buildings in Delhi, Mumbai and Kolkata, the requite permits from the fire departments may not be there at all.
These are just general descriptions and are somewhat subjective. You must look at your immediate requirements and suitability. Sometimes Grade B or Grade C buildings are the need of the hour for a businessman or a company and stretching to occupy a Grade A will not make sense otherwise it will start affecting the bottomline of the company.
The real estate sector is one of the largest markets and most prominent contributors to India’s GDP, with many people wanting to invest in it. But like any other industry, investment in real estate should be preceded by a holistic, practical, and risk assessment approach to maximise benefits and minimise losses. The real estate sector has been attributed as one of the top investment picks in India in recent studies as it has long-term advantages, and its craze will never die down.
One of the crucial steps to take before investing in real estate is to do a thorough real estate market research of the city where you are planning to buy a property. It is far easy to study market trends, compare sale prices, and gain an overall perspective before deciding on what works best for you in today’s digital age. It allows you to make error-free decisions and gauge an understanding of when, how and where to invest. Deciding on the right city is also an important decision. Everything comes into interplay here – the economic and infrastructural developments in the region, road, highway and expressway connectivity, and the property’s strategic location.
Before finalising any property, check whether the real estate offering has all the relevant approvals such as ownership certificate, building layout approval, occupancy certificate, non-agricultural permission, various NOCs, NHAI permission, energy, water & firefighting department approval. To make an informed decision, it is necessary for you to oversee all the veracity of the documents and safeguard yourself from acts of knavery and unscrupulous activities. The RERA registration should also be checked to ensure the sanctity of the project and whether it complies with the guidelines.
The real estate developer or builder is the backbone of any project. So, before investing, track the past record of the builder, how many projects he has delivered, the average delivery time, and the construction quality of the offerings. It helps you understand the builder’s brand and the solid attributes and weaknesses that you should be aware of beforehand.
Studying the past record of the builder also involves checking his cash flow & land bank. It reassures the buyers of the builder’s net worth and also validates his reputation as a brand, enhancing the trust factor between the builder and the investor.
While going for investment in real estate, it is of vital importance to be rational & not fall into the vicious trap of lucrative schemes which are unviable and non-practical. It is often projected to belie customers and inveigle them into making non-profitable, one-sided and regretful investments. Therefore, buyers are often advised to practise caution and use a logical approach and take an expert’s help, if needed, in such cases.
Exploring micro-market possibilities is also an important task. Buying properties in locations that are nearby major roads, metro stations or have an established connection with public transportation like buses and autos promotes safer and easier travel. Buyers should also ascertain whether there are schools, shopping complexes, and hospitals in the vicinity of the property. It improves the living experience and makes fundamental necessities easily accessible to them.
Buyers should also overlook the various stages of the project and the state of the groundwork. It shows their interest and awareness of the subject and asks questions if there are any delays or loopholes. It increases the developer’s accountability and makes them answerable to the buyers.
These are ways to reduce the real estate investment risks and make a profit-worthy investment. You have to be confidently aware of the market analysis, and research and confidence stem from knowledge.
The 19th CREDAI MCHI Thane Realty and Home Finance Expo is slated to happen at the Raymond Grounds, Thane on the 11th to 14 March 2022.
Thane’s leading property and home fi nance expo returns for the convenience of home seekers in 2022, after a two year break following the Covid-19 pandemic. Thane’s real estate not only retained its vibrancy and price stability during the pandemic, it also saw sales not getting impacted as a result of the lock-downs, said CREDAI-MCHI Thane President Jitendra Mehta.
In the ‘new normal’ post the pandemic, home buyers have missed the advantage that the property expo provides. It is about selecting a home from a wide choice, across different segments and price points, created by a wide variety of leading real estate brands – all under one roof. Giving due weightage to the requests from home seekers, CREDAI MCHI Thane has organized its annual property and home finance expo – PROPERTY-2022 THANE- from 11th March to 14th March 2022, at Raymond Ground, Pokharan Road.No.1, Thane 400601. “Due importance has been given to ensuring a Covd-19 appropriate setup. This year, entry for home seekers to the expo is free, and we have provided transportation from Anand Cinema, Thane East and Modella Mills Compound, Mulund Check Naka to the venue,” added the CREDAI MCHI Thane President.
Ajay Ashar, Immediate Past President, said, “PROPERTY – 2022 Thane, a team effort by CREDAI MCHI Thane, will see many real estate developers and leading home fi nance providers offering some of the best options that a home seeker would want. The advantage of having a wide array of options under one roof, with the option of directly interacting with representatives of real estate brands and home fi nance providers will see many a home seeking family select their dream home and make it a reality,” he added.Sandeep Maheshwari, Exhibition Committee Chairman said, “The property and home fi nance expo has been organized in March 2022 following continuous feedback received from home seekers, who were looking forward to being able to check our various property and home finance options under one roof. This year, entry for home seekers to the expo is free; transport has been arranged from Anand Cinema, Thane east and Modella Mills, Mulund Check Naka to the expo venue, and Covid-19 appropriate behaviour will be ensured. The organizing team is looking forward to providing home seekers with the perfect platform to make their dream homes come true,” he concluded.
The Inauguration of the 19th Real Estate and HFC Expo would be done on Friday, 11th March 2022 by worthy hands of Hon’ble Minister Eknath Shinde and in Presence of Hon’ble Minister Shri Jitendra Awhad.Along with this the MCHI Raymond’s Fashion Show and Calendar Shoot 2022 would be held as a grand event on the 12th of March at the Raymond’s ground. The celebration would see a lavish inaugural party in the presence of many CEO’s of multinational companies. This would be India’s 1st corporate calendar for the financial year 2022 – 23, with the best models walking the ramp from all across India. The calendar would be distributed across 3000 plus companies across Maharashtra, Gujrat and sponsors.
PROPERTY 2022 THANE, the property and home finance expo is organized by CREDAI MCHI THANE, one of the most respected real estate associations. The confidence that a home seeker gets while buying a home from a member of the association, during the annual property expo organized by CREDAI MCHI THANE, is immense.
From the home seeker’s perspective, it is not just about good deals and sweeteners or the expo being free to visit. Neither does provision of free transport from Anand Cinema, Thane East and Modella Mills, Mulund Check Naka to the venue make a difference; rather it is setting up of the expo in response to home seekers’ suggestions and feedback – they want to select a home at the expo. For CREDAI MCHI THANE, it is a simple endorsement of the trust and confidence gained over the years.
Back, after a gap of 3 years, After a break of two years, PROPERTY 2022-THANE will be held at a new venue at Raymond Grounds on Pokhran Road No 1, Thane west. Along with a new venue, the hope is that a new era in property and home finance expos will commence this year onwards. A new venue, hosting the perfect platform for home seekers to make their dream homes into a reality
Thane is unique, It is the perfect city for all segments of home seekers, across budgets and sizes. A culturally rich city which offers a safe and secure life-style, it is blessed by Mother Nature in form of the verdant greenery and water bodies. The existing infrastructure is good, the on-going projects will enhance the city’s future-preparedness. For all home seekers, there’s a project in Thane where your dream home will become a reality.
CREDAI-MCHI Thane: CREDAI-MCHI Thane has always considered itself as part of the social fabric of Thane. As an association of real estate developers, CREDAI-MCHI Thane has always been a part of Thane’s development. Going beyond just square feet of space, the association has been ready to take on responsibilities and support authorities for all sorts of situations. For Thane to evolve into a City that is best in every way, authorities including the state government and the TMC play an important role. But, making it a better city is a joint responsibility – all stakeholders in Thane’s development working as a team, ensuring they co-script new chapters of the city’s evolution and growth.
Beyond residential real estate: There are many aspects of commercial real estate which are witnessing growth in Thane and peripheral areas. While organized retail and office spaces have traditionally had good offtake over the years, the city has also seen growth in IT and ITeS as also sunrise sectors like Data Centres, Warehousing and Logistics. Corporate India finds Thane the ideal place to relocate and centralize office spaces and the city also offering homes across a wide spectrum of price points is icing in the cake.
The ‘New Normal’ in the pandemic: Humankind co-exists with the pandemic and its different variants; the vaccination program enabled a recovery from negative effects of the pandemic. Across project sites, CREDAI-MCHI members have ensured a safe and secure working environment; ensuring time-bound possession of homes. Traditionally a stable real estate market, Thane, even during the pandemic, did not see any wild swings in price points. The growth is steady, and stable – this has been the story of Thane’s real estate growth over the years, it remained so even during the pandemic.
Homes in the ‘new normal’: The ‘new normal’ in the pandemic has seen demand for homes which are a bit different than what was the norm earlier. Thane offers home seekers abodes which are perfect to meet the new requirements brought about by the pandemic. Be it flexible home interior spaces or an additional room for work from home or e-study, Thane’s residential offerings are ‘just right’ in the new normal.
The expo’s growth over the years: CREDAI-MCHI THANE organized its first property and home finance expo in 1999, over the years it has only grown. Being the first property exhibition announced in 2022, and given the positive impact of not just the BUDGET 2022-23 but also the RBI’s recent Monetary Policy Update, home buying during the expo will happen in a positive environment. Not only has the exhibition clocked growth in terms of quantum and numbers over the years, what has also enhanced is its importance. For real estate developers, the expo helps increase their buyer base and turn fence sitters and speculators into serious buyers. For the home seeker, it is a wide array of options to evaluate under one roof: a comfortable, safe and secure platform. For investors too, the expo is the ideal platform.
Come, make your dream home come true: PROPERTY 2022 THANE has been organized after feedback received from home seekers, who were looking forward to being able to check our various property and home finance options under one roof. The organizing team looks forward to providing home seekers with the perfect platform to make their dream homes come true.
MUMBAI: Crucial infrastructure works, including underground Metro corridor between Wadala-CSMT, an extension of Eastern Freeway till Thane, construction of coastal link road between Nariman Point-Cuffe Parade are likely to begin this year. Mumbai Metropolitan Region Development Authority (MMRDA) has sanctioned a substantial amount for these projects in Rs 18,404 crore budget for the financial year 2022-23.
MMRDA undertakes works on Metro corridors and road expansion projects, besides developing crucial infrastructure in Mumbai Metropolitan Region (MMR) that includes districts of Mumbai, Thane and Raigad.
The budget was approved in the 152nd authority meeting chaired by Urban Development minister Eknath Shinde Metropolitan Commissioner SVR Srinivas said “We have presented budget with a deficit of Rs 7,680 crore. The expenditure proposed is Rs 18,404 crore as against the revenue estimated at Rs 10,724 crore.”
The shortfall will be met by borrowing through loans, revenue by leasing of land parcels, development charges, income from Metro projects that will be commissioned this year.
Srinivas said, “This budget mainly emphasized on implementation of public transport and vital infrastructural Projects for which Rs 2,111.30 crores have been earmarked.”
Amongst projects which will see work begin are the construction of a bridge from Nariman Point to Colaba/ Cuffe Parade, Metro Line 10 (Gaimukh to Shivaji Chowk),11 (Wadala-Thane),12 (Kalyan-Taloja), Extension of Eastern Free Way to Thane, Thane Coastal Road, Elevated Road from Anand Nagar to Kharegaon in Thane City, Kalyan Ring Road, Kopri-Patni Road, bride on Gorai Creek, Thane- Borivali Tunnel Link Road etc.
Srinivas said, “We hope to complete the tender process for these Metro corridors in six months. Metro 11 will have integration with Metro 4 (Thane-Ghatkopar-Wadala).”
The Detailed Project Report (DPR) for extension of Eastern Freeway till Thane is being prepared. MMRDA estimates that it will be able to finalise the DPRs and bids by August 2022.
The DPR for the construction of sea-bridge between Cuffe Parade and Nariman Point has been prepared and soon MMRDA will float tenders for which Rs 260 crore has been sanctioned in this budget.
MMRDA has also decided to spend Rs 210 crore this year on the 6 km long road project that will link Mumbai Trans Harbour Link Road to Mumbai-Pune Expressway from Chirle.
Srinivas said, “Allocations have also been made for concretisation of the Eastern Express Highway and Western Express Highway. We expect the work to begin by May 2022.”
MUMBAI: The Maharashtra government has increased the Floor Space Index (FSI), or the permissible development on a plot, to four times from three across the state for slum-rehabilitation projects, in line with existing guidelines for the country’s commercial capital, Mumbai.
The state government has revised the Unified Development Control Promotion Regulations (UDCPR) for the rest of the state to give effect to this increase in the FSI.
“In late 2019, the FSI for slum-rehabilitation projects in Mumbai was increased to four times from the earlier three, and now, after over two years, the same has been made applicable to other parts of Maharashtra,” said a senior state government official.
The move is expected to push projects involving slum rehabilitation in other parts of the state apart from Mumbai.
“With growing industrialisation and a population explosion, slums will continue to increase in volume and cause larger issues. The Maharashtra government has rightly identified this and its penetration beyond metro cities like Mumbai. The FSI policy to incentivise developers in other cities to come forward and take up slum redevelopment is a step in the right direction. This will be a big leap forward in housing for all and slum-free cities in Maharashtra,” said Gautam Thacker, President of real estate industry body Naredco’s Progressive Neral-Karjat unit.
According to Thacker, when combined with city beautification and pride in one’s place of residence, it would encourage more developers to come forward and undertake such development, as well as be a positive step toward a cleaner and safer city or town.
In a bid to strengthen and bring uniformity to real estate construction guidelines across the state, the government approved the UDCPR in December 2020. This uniform set of regulations will specify everything from the height of buildings to the width of roads and the size of amenity spaces.
The new rules are applicable to all municipal corporations, councils and nagar panchayats across the state, except Mumbai and some neighbouring areas like hill stations, eco-sensitive zones and specified corporation areas.
As per the UDPCR issued in December 2020, the density for slum rehabilitation projects to receive the FSI of three was set at 500 dwellings per 2.5 acres. This permissible density has now been increased to 650 dwellings per 2.5 acres, while increasing the FSI to four times from three.
Slum-rehabilitation authorities will have the flexibility to consider projects with an even lower density of 500 dwellings per 2.5 acres, to ensure more rehabilitation projects are undertaken and slum dwellers are accommodated in such developments.
For effective implementation of the projects, a separate authority is likely to be set up for eight metropolitan municipalities including Thane, Kalyan, Panvel, Vasai-Virar and Bhiwandi-Nizampur. Seven municipalities and councils, including Badlapur, Ambernath Alibag, Pen, Khopoli, Matheran and Karjat will also be made part of this separate authority.
MUMBAI: Property registrations in Mumbai, the country’s biggest real estate market, have continued to reflect robust momentum in February, surpassing the pre-pandemic levels witnessed two years ago by a wide margin.
This is also the first time since the stamp duty reduction benefit came to an end last year, the city has seen monthly registration of over 10,000 apartments. In terms of revenue to the state exchequer, the month has recorded the best February ever with over Rs 561 crore stamp duty collection.
The country’s commercial capital witnessed registration of over 10,026 residential deals in February, showing data from the Inspector General of Registration, Maharashtra. This registration number is up 23% from January, which itself was a 10-year record.
February 2020, the month just prior to the outbreak of the Covid19 pandemic in India, had witnessed registration of 5,927 residential deals and the performance recorded this month has surpassed this pre-covid level by over 70%.
“Mumbai, apart from being the country’s largest realty market, is now also one of the strongest growth markets. A slew of measures like the progressive budget, availability of the lowest home loans rates and a good homebuying environment is driving this growth. We expect this uptrend to continue in the months to come and hope that the government remains supportive,” said Boman Irani, President of realtors’ body CREDAI-MCHI.
Record-low interest rates, incentives, and stable pricing have been prompting a robust response from homebuyers for nearly 6 quarters and now the fear of a price hike due to cost-push or an upward revision in government rates is also pushing the sales velocity.
“We are seeing good traction in sales activity across categories and micro-markets, robust conversion of inquiries into deals. It is an indication of positive sentiment combined with low interest rates and stable pricing that is translating into business momentum. With all positive factors in place, most homebuyers have realised this is the best time to buy,” Vikas Chaturverdi, CEO, Xanadu Group that handles sales and marketing of several developers across their portfolios. “Both western and central suburbs of Mumbai are leading the sales activity.”
According to Irani, the Mumbai Metropolitan Region (MMR) posting sustainable growth for the last several months is extremely encouraging news for over 250 ancillary industries and job creation in general.
With the central bank maintaining its stance on low policy interest rates, and developers providing attractive offers, sales trajectory has been on the rise with monthly sales surpassing even pre-pandemic levels seen in 2018 and 2019.
The Mumbai property market has been buzzing with activity since the state government announced a reduction in stamp duty rates in 2020 to kickstart the realty sector and other industries linked with it.
The reduced stamp duty had led to a surge in the number of transactions across segments including luxury, mid-income and affordable housing. While the lower stamp duty benefit window period ended in 2020, the property markets across key cities of Maharashtra are still witnessing robust activity.
400601. “Due importance has been given to ensuring a Covd-19 appropriate setup. This year, entry for home seekers to the expo is free, and we have provided transportation from Anand Cinema, Thane East and Modella Mills Compound, Mulund Check Naka to the venue,” added the CREDAI MCHI Thane President.
Property Thane 