Buying a dream home in Gurgaon becomes cheaper from Realtor Pawan Kumar Dhoot words

Bringing in a ray of hope for the revival of Gurgaon’s realty market, the Haryana government has decided to reduce circle rate for 2016-17 by 15 percent with few areas to get 10 percent deduction as well.

Circle rates are the minimum authority-defined prices at which sale or transfer of a plot, built-up-house, apartment, commercial property or land takes place. The property can not be registered below this price. Stamp duty and registration charges for a property are also based on this.

“A drop in circle rates is directly proportional to decrease in property prices, and as property prices fall, the demand for the property plays an inverse relation. Falling property prices help in attracting end users more than investors, and it is crucial for Gurgaon’s realty sector to revive. The Real Estate Market is very sound and now available with lowered prices, we’ll witness the comeback of buyers”, says Pawan Kumar Dhoot, Director, Dhoot Group.

Realty sector in Gurgaon has been going through a lull phase, and it is also for the first time that circle rates have been reduced in the corporate hub. For the last two financial years, the rates were not reduced that resulted in negative buyers’ sentiments and even the developers’ fraternity was pushing the government to offer a rate reduction this time.

The state government has provided the highest relaxation in private colonies, HUDA sectors and other residential colonies falling under the older city.

“As the rate cut effect gets operational, buyers’ sentiments will improve significantly. The overall cost is likely to come down as these rates are also the basis of tax calculations which indirectly pinch a customers’ pocket. Earlier, buyers were forced to pay additional stamp duty and capital gains tax on the differential values as well, that resulted the buyers to shell out extra amount. This move will thus, eradicate the extra payment that buyers were making which in turn will allow them save money and invest elsewhere on property buying”, elucidates Deepak Kapoor, President CREDAI-Western U.P.

Commenting upon how well the Gurgaon realty market might shape up, post this decision, Vikas Sahani, CMD of Property Guru concludes, “Several thousand units are lying vacant in Gurgaon with no takers at all. The demand for property had come to a standstill as prices till last few years were roaring. With this move, prices will get reduced and become realistic, thus allowing the properties to cost much less to the buyers. The effect on demand will be prominent till the next quarter as we’ll also have festive season around the corner. End users as well as investors will become active again that will help in picking up Gurgaon’s realty prospects for future.”

How CREDAI Stands for Realty Developers , asserts Pawan Kumar Dhoot

The Real Estate Sector has not been performing adequately from a long time and the proposal of RBI Governor Raghuram Rajan is not favored by the Realtors in context of lowering property prices to encourage more people to buy.

It is due to increasing unsold stocks and delays in project completions the industry is facing slowdown and reducing more prices would surge chaos as according to Confederation of Real Estate Developers’ Associations of India (CREDAI) president, Getamber Anand price of 90 per cent of the residential supply in the country has already corrected. “If prices fall further, it will lead to non-performing assets (NPAs) and non-delivery of projects,” says Anand.

Pawan Kumar Dhoot, Managing Director, Dhoot Group also holds the same sentiment as according to him it is not a viable option to uplift the prevalent slump in the sector. He explains RBI has already offered deduction by 1.5 per cent cumulatively since January last year and earlier this month the policy rate was cut by 0.25 per cent to 6.5 per cent which is lowest level in more than five years.

Getamber Anand also clarifies the RBI statement by saying “His (RBI Governor) statement should not be taken out of context as he has recommended an adjustment and not necessarily a price cut. The adjustment could be through other ways like easy payment scheme to attract home buyers.”

Amongst all the dialect, the main aim of RBI Governor is to encourage investment in the real estate industry which according to him can be achieved if convenience is on investor’s side for which he adds, “There is an issue of certainly how they see the housing market and how they see prices. There has to be an adjustment so that more people want to go and buy.”

How CREDAI is contributing for worker development, explains Pawan Kumar Dhoot

Pawan Kumar Dhoot stands by with the CREDAI decision of making skilled construction worker which is necessary for the upliftment of real estate sector. With inception of Real Estate Regulatory Bill, there is a constant murmuring in the sector regarding its pros and cons. Though government’s effort to build a foundation for the betterment of investors is extraordinary hitherto there is less said or done for developers.

To come in support for the Bill, CREDAI aims to attempt skilling of one lakh construction employees each year. Pawan Kumar Dhoot, CMD, Dhoot Group is in alignment with CREDAI opinion as if the roots are managed properly. There is no doubt that a tree will be loaded with sweet fruits, hence if the workers are proficient in their skills then there is no stop for a strong and mighty construction.

The association is not only good at words but work as well, as it has already trained more than 26,000 employees across India. Based on KPMG report for that National Skill Development Corporation (NSDC), there is going to be proximate demand of additional 500 lakh skilled toilers in next ten years consequently CREDAI effort is well appreciated.

The endeavors are initially undertaken in association with PNB Housing, under its CSR initiative and have started working out at ATS sites in Noida, Greater Noida, and Gurgaon through its training partner Rustomjee, an Academy for Global Skill. The program encompasses training of 231 candidates at ATS infrastructure sites whereby the result was overwhelming, as out of all participated 82 percent cleared with flying colors.

The New Real Estate Regulatory Bill to boost realty sales, says Pawan Kumar Dhoot,MD Dhoot Group

With the implementation of the New real estate regulatory bill, realty sales are expected to rise by 10% and the new home launches are expected to decrease by 20%. Foreign direct investment into the real estate sector is also expected to increase by 20%. The bill is likely to boost realty sales and safeguard the interest of the buyers.

The Real Estate (Regulation and Development) Act 2016 passed on 25th March 2016 has brought in cheer for the real estate sector. Pawan Kumar Dhoot, MD Dhoot Group, a prominent name in the realty sector highlights that it has brought the much-needed transparency and accountability in the real estate industry.

The act has safeguarded the interest of the buyers as it restricts the developers to sell their homes before getting all the project approvals. It increases the cost of capital for the developers as they will have to look for equity rather than structured debt to finance the land.

Dhoot Group developers further stated that such an act was much needed in a sector known for deceitful and fraudulent dealings. However, the prices of houses will not fluctuate as the rise in cost of capital will not be passed on to the buyers by the developers in the present scenario of unfavorable market conditions. It is expected that the banks will start funding for land purchases as well. The individual or group investors, who usually invest in residential properties with an intention to withdraw even before the project is completed, can now participate as lenders and not as investors.

Passage of Real Estate Bill : Blessing for both, home buyers & developers

The Real Estate (Regulation and Development) Bill has been passed by the Rajya Sabha as well as the Lok Sabha it is set to become an act in a few months. Once passed it will change the way Real Estate was being dealt with, in the past.

The new act is a blessing as it will bring transparency and safety for the home buyers in the city with the regulator being mandated to ensure this.This is also a blessing in disguise for the developers as it will bring credibility to them and people including NRIs will be willing to invest their funds in this sector.

Under the provisions of new bill any project over 500 sq mt area or 8 flats must be registered with regulatory authority with full disclosure – details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals, etc. as well as the details of their past and ongoing projects. New projects can be launched only after the developer secures all statutory clearances from relevant authorities and the promoter must upload details of the project on the website of the RERA.

The bill bars the promoter from altering plans, structural designs and specifications of the plot, apartment or building without the consent of two-third allottees after disclosure.

The bill also seeks to establish fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal. Consumer courts are allowed to hear real estate matters. There are 644 consumer courts in the country. The more avenues for grievance redressal would mean lower litigation costs for the buyers. Appellate Tribunals will now be required to adjudicate cases in 60 days.Any developer who violates the order of the appellate tribunal can be jailed for three years or fined or both.

Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer.

The bill specifies that in case there is substitution of developer or builder, the new promoter will assume all the liabilities and the change won’t trigger any extension of the deadline. The buyer will have the right to get all details of the project including government approvals and floor plan besides quarterly progress. The bill mentions the regulator won’t extend the deadline for completion of project beyond one year in normal circumstances.

Pawan Kumar Dhoot balanced Dhoot Group’s principle objective vision with ‘Make in India’

‘Make in India’ the Prime Minister’s initiative, is a concept which is timed just right, said Pawan Kumar Dhoot, MD, Dhoot Group. “India’s demographic advantage remains under-utilized, despite a boom in the service sector. India’s policy-makers have realized that a labour-intensive manufacturing sector can not only generate more employment and increase the overall income levels, but also set in motion the wheels of business towards robust economic growth. As part of his efforts to make India a manufacturing hub, Prime Minister Narendra Modi has launched the ‘Make in India’ campaign last week.

Dhoot Group welcomes the government’s plan to facilitate investment, foster innovation and build the best-in-class manufacturing infrastructure in India,” he said.

Make in India’ is an initiative which follows concepts which have been spoken of before, albeit in bits in pieces. This is a holistic vision’ which encompasses the interests of all stake-holders, pointed out Niranjan Hiranandani,MD, Hiranandani Communities and Founder-President National Real Estate Development Council (NAREDCO – Maharashtra).“I recall how we had a ‘Vision for the New Millennium’, then a ‘Vision for 2010’ before ‘Vision 2022’. To my mind, what’s interesting is that we already have ‘Vision 2022’, which is the Prime Minister Shri Narendra Modi’s dream project: ‘A house for all Indians by 2022’. ‘Make in India’ is in sync, and follows similar lines: enhanced economic growth, which will lead to perennial employment and production of goods which in turn, will further augment the GDP growth. The impact on GDP would be an increase to 8 – 9 per cent, and should cross 10 per cent in the next 5 years, so that in 2022, India should boast of a double digit GDP growth. This in turn, will lead to an increase in production and will create volumes which will bring down the cost of production, so we will have a ‘dip’ in inflation, as also a ‘rise’ in employment. This will result in better standards of living with revised per capita income,” he said.

Focusing on the Prime Minister’s ‘Make in India’ campaign, Pawan Kumar Dhoot said it aims to boost the Indian manufacturing sector as also bring in massive investments. “So, ‘Vision 2022’ should be about ensuring that India becomes an economic super power, one where citizens also have eco-friendly living amidst environment-friendly Smart Cities – truly, a vision for which we all need to work together, and ensure that the dream becomes a reality,” he said. For this, the wish-list includes single window, time-bound clearances and permissions, these are basic things which Real Estate needs to fulfill the vision of Housing for All Indians by 2022.

“Prime Minister Narendra Modi has promised more economic reforms and a stable tax regime so as to take manufacturing’s share in the gross domestic product to 25 per cent in the near future. Addressing the Make in India event in Mumbai, he promised to make India’s tax regime more efficient and said his government was streamlining processes to ease investments. India is simplifying processes like licences, security and environmental clearance, the Prime Minister also said there is an all-round emphasis on ‘ease of doing business’. This is a promising start,” said Niranjan Hiranandani.

Comparing the ‘Make in India’ campaign with what China has achieved along similar lines, Niranjan Hiranandani said that while cheap labour drove the success story of China’s manufacturing-driven economic growth, the same set of parameters might not work in India. “We need to tweak these to suit Indian conditions. For example, in the real estate and construction sector, we are struggling to get skilled labour in India. As at the beginning of 2016, we certainly don’t have the skill set to make in India, at least in the construction sector. ‘Make in India’ will be a success if we can ensure enhanced skill-sets and imparting knowledge through continuing education to India’s work-force,” he said.

“We already have the vision (Homes for All Indians by 2022) and the campaign (Make in India),” said Pawan Kumar Dhoot of Dhoot Group. “What we need to ensure success is to supplement both with enhanced skill-sets for the human resources, which will ensure ‘Make in India’ becomes a reality,” he concluded.

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