Weekend Digest - Top Stories
Welcome to the latest edition of?PNT Real Estate round-up! Through our digital only newspaper, we aim to provide a 360 degree coverage of the latest events, stories, updates and occurrences from the real estate industry from around the world.
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Manikonda, located in the western outskirts of Hyderabad, Telangana, is quickly becoming a popular choice for people looking for a peaceful place to live. The area has good infrastructure, modern facilities, and various housing options, suitable for different budgets and preferences. Last month, ARKA by TEAM4 LifeSpaces was the best-selling building, closing 45 deals out of the 64 registered in Manikonda. Surrounded by beautiful landscapes, close to major IT hubs, and with easy access to the Outer Ring Road, Manikonda offers a perfect mix of city life and suburban tranquility.
MahaRERA has proposed mandating that sale agreements include an annexure detailing all amenities and facilities promised in housing projects. This would include specifications for amenities like swimming pools, gyms, courts etc as well as timelines for their completion. Previously, such crucial information was often omitted from agreements leading to unmet expectations. The proposed order aims to provide transparency and set accountability for developers on delivering amenities as agreed. It is a significant measure that protects homebuyer interests and prevents disputes over incomplete or delayed amenities. Public feedback has been invited on the draft order by May 27.
Ghatkopar West, located in Mumbai's eastern suburbs, is a vibrant neighborhood known for its excellent connectivity and diverse housing options. In March, Wadhwa The Address Boulevard emerged as the top-selling building, with the closing of 7 deals. The Ghatkopar West area offers a mix of high-end luxury apartments and budget-friendly options, appealing to a wide range of homebuyers. Apartment sizes vary, from spacious units in Wadhwa The Address Boulevard to compact spaces in Hilton Enclave. With prices per square foot ranging from INR 3,667 to INR 43,911, Ghatkopar West caters to different budgets. Close to 50% of apartments sold were within the INR 1 crore range, showcasing its appeal to various segments of buyers.
Real estate developer Puravankara Group announced plans to redevelop a prestigious residential society in Mumbai's upscale Pali Hill neighbourhood. The large-scale project is estimated to have a gross development value of over INR 2,000 crore. The Bandra West area, particularly Pali Hill, has become the focal point of Mumbai's real estate scene in recent years. Along with this flagship redevelopment, Puravankara is exploring opportunities to redevelop several other housing complexes in Mumbai. The company aims to deliver over 2,000 units across major Indian cities in the current financial year through new launches and ongoing projects.
On April 29th, 2024, the Maharashtra Real Estate Regulatory Authority (MahaRERA) issued a circular requiring all housing projects in Maharashtra to engage only trained and certified agents starting January 2024. MahaRERA has now decided that new or renewed agent registrations from January 2024 must include a certification obtained after training. This is aimed to ensure customers receive accurate information from knowledgeable agents when making home buying decisions. Till last year, over 44,000 agents were registered in the state, but 13,785 failed to renew their registrations on time, as of March 2024. By enforcing this new policy, MahaRERA aims to promote transparency, accountability and build trust between developers, agents and customers.
Altum Credo, a company dedicated to facilitating homeownership for low-income families in India, has secured USD 40 million in its Series C funding round. Founded in 2017, Altum Credo distinguishes itself with its technology-centric approach, leveraging digital tools across the loan process for efficiency and accessibility. Focusing on first-time homebuyers in the economically weaker and low-income groups, Altum Credo offers long-term financing with affordable monthly payments, addressing the gap left by traditional banks. With a loan portfolio exceeding USD 100 million and serving over 11,000 customers across six states, Altum Credo plans to expand its operations in central and northern India with this new capital infusion.
? A residential flat spanning 574 square feet sold in Wisteria Residency in Mumbai's Santacruz East for INR 95 lakhs
? A residential flat spanning 1102 square feet sold in Runwal Timeless in Mumbai's Sion for INR 1.42 crores
? A residential flat spanning 427 square feet sold in Krrish Vraj Palace in Nashik's Ambad for INR 18.48 lakhs
? A residential flat spanning 568 square feet sold in Shivalik Shivanta in Nashik's Cidco for INR 28.9 lakhs
? A residential flat spanning 372 square feet sold in Qualitas Gardens in Raigad's Panvel for INR 30 lakhs
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? A residential flat spanning 229 square feet sold in Prakash Residency in Raigad's Kalamboli for INR 30 lakhs
? A residential flat spanning 929 square feet sold in Sobha Lifestyle in Bengaluru's Devanahalli for INR 5 crores
? A residential flat spanning 3785 square feet sold in Mantri Espana in Bengaluru's Bellandur for INR 4.3 crores
? A residential flat spanning 1040 square feet sold in Kool Green Valley in Pune's Bavdhan for INR 1.19 crores
? A residential flat spanning 873 square feet sold in G Corp Greens - Cypress in Pune's Thergaon for INR 1.17 crores
Generally speaking, the sale of land is outside the purview of GST as it does not involve the transfer of any good or services. However, in the case of plotted development projects where in addition to the land, basic amenities are provided, GST becomes applicable. This is because the amenities of a plotted development may include the construction of roads, sewerage lines, landscaped gardens, drainage systems, overhead tanks, water harvesting systems, etc. which are construed to be services offered.
In the case of plotted developments, the developer, landowner, or authority undertaking the project must pay GST charges on the sale of developed land within the project. The GST is to be charged on super built-up basis and not the actual measure of the developed plot. Also, any lease, tenancy or right to occupy created for a plot of land is considered to be a provision of services and therefore liable for GST.
Under the present GST regime, landlords are not liable to pay GST against their real estate rental income, provided the premises is let out for residential purposes. Rent arising out of a residential property being used for business is however applicable for GST as services are being supplied. In addition, if the rental proceeds of a residential property exceed 20 lac rupees per annum, GST is applicable at the rate of 18%.
A GST-registered landlord is liable to pay 18% GST on commercial rental income if it exceeds 20 lac rupees per annum. The landlord can claim input tax credit (ITC) against GST paid if he meets the eligibility criteria and has maintained adequate documentation to substantiate his claim. GST is not applicable on properties leased out for charitable or religious purposes provided the rental charges are below a specific threshold.
In India, GST does not apply to home loans. However, a bank provides a host of additional services along with the home loan which are applicable to a charge of 18% GST. Further, processing fees and other charges levied on disbursing home loans fall within the category of financial and related services, as identified by the HSN code 9971, and are therefore subjected to 18% GST. Input tax credit (ITC) can be availed only on properties used for business purposes. Home loans are typically taken for personal home purchase or construction and not for business use, hence ITC cannot be claimed.
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