Land Acquisition Bill- Boon or Bane for Realty Sector?

For regulating the process of land acquisition, Indian government has been in the process of passage of the LandAcquisition Act, 2013, which stipulates rules for granting compensation, rehabilitation and resettlement to the affected people in India. With the intention of bringing transparency to the process of acquisition of land for setting up buildings or factories, infrastructural projects etc., the act promises fair compensation to the affected persons. The scope of this Act extends to all land acquisition done by central government and state governments, except in the state of Jammu & Kashmir.

The multi-folded objectives of the Act include ensuring a participative and transparent process of land acquisition for developmental activities in consultation with local bodies, providing just and fair compensation to the affected families,  making sufficient facilities for their rehabilitation and resettlement, and ensuring that the affected persons to be the partners in development. The Act authorises the government to acquire land for its own use, hold and control, and to transfer it to private companies for public purpose. However, the Act restricts any acquisition of multi-crop irrigated area. In case of any acquisition of such area, the state is liable to develop an equivalent area of cultivable wasteland for agricultural purposes.

This had a bad impact on the sectors like power and infrastructure. In the age of rising population and rapid urbanisation and industrialisation, it stayed as a question mark in front of such sectors. As infrastructure is termed as the driver of development, the act came as an earthquake in this sector, resulting in the slip down of stock market.

Flats in Zirakpur, Punjab

In 2015, the Act was thrown into controversy, when it was amended to address industry concerns by diluting the vigour of some of the provisions of 2013 Act. The social impact assessment and consent requirement were done away for some specified sectors including infrastructure projects. This has been made for developing a robust infrastructure like roads, airports and residential projects in India. The amended version enables companies stuck in land acquisition by making the process easier. Moreover, no cap on the area of multi-crop fertile agricultural land is mentioned; it enables private hospitals and private educational institutions for land acquisition. Being criticised as anti-farmer and pro-corporate, the government had to finally leave the ordinance route, and travel along a democratic path. Due to severe opposition, government is thinking of reviewing the amendments. 

The latest genre will affect the realty sector in India positively by making the land acquisition process easier for the development of industrial areas and major highway and expressways. Confederation of Real Estate Developers Association of India (CREDA) has assessed that in the amended form, the proposed Bill can help farmers without impacting or affecting the realty sector, if handled in the right perspective and manner. 

Understanding the need of making land available for the Housing For All programme by 2020, Modi government is pitching forward for the passage of the legislation. The debate goes on until the Bill would be settled by satisfying all the stakeholders. As a democratic government, pro-poor and pro-farmer policies have to be taken, keeping in view the larger spectrum of national development.

Why Invest in Commercial Properties?

These days, investing in property has become highly profitable, be it residential or commercial. It is a general view that investing in commercial property is more profitable than residential. Even after the real estate scenario has become a bit worrisome, investing in commercial properties has been perceived as a positive move, as more of commercial activities are taking place these days.

Jade Business Park, Mohali

Commercial property is defined as property that is meant particularly for business purposes, which includes retail buildings, office parks, restaurants, warehouses etc. The investor usually possesses the building and collects rent from the business that operates there.

Profits of Commercial Property

(1) Earning potential is higher here. As the income that is generated by the commercial property is related to its usable square footage, it is valued differently, unlike residential real estate.

(2) Cash flow is generally higher per square foot and on an initial investment.

(3) The leases are often much longer compared to residential property.

(4) Banks value commercial property differently. Usually, a down payment of 30 percent or more is required here.

(5) The landlord and tenant have more of a business to business customer relationship, which helps in keeping interactions professional and respectful, as the property is treated purely on business terms.

(6) As the retail tenants try to impress the customers by maintaining the store or office space whereas the owner maintains and improves the quality of the property. This will, eventually, increase the value of their investment.

(7) Unlike residential properties, where the tenant calls the landlord at any time either for some repair or something else, the owners of a commercial property do not have to attend late night calls from the tenant, as the business usually operated for a limited time.

Investment in Property

Even with these advantages, there are greater risks attached to commercial properties, when it comes to the damages that can happen to it as there would be regular visitors and customers. Moreover, for acquiring a commercial property, the initial investment is large, compared to the residential real estate. Nevertheless, it is more beneficial to invest in this sector, when we consider the higher financial reward.

Jade Business Park, Bird View

At this time, the first commercial project in Mohali, JadeBusiness Park- J90- by Mona Townships offers you space to boost your business and investment. It consists of 13-storeyed office suites with ultra-modern exterior façade and 70 percent open area, well-lit and ventilated corridors, lavish entrance lounge etc. It has been viewed as an ideal location designed to convey your business image to the clients and to guarantee the wellbeing of the people and enhance productivity. Visit us at  for more information.

Booming Apartment Culture in Indian Suburbs

As per the 2011 estimates, 17.5% Indians are housing out of 7 billion and accounts for only 2.4% total land area. This speaks highly of the relevance of accommodating people in the obtainable space, without harming the environment.

Mona Greens, Zirakpur

 Young India is shifting its orbit into towns and cities in search of a better standard of living. As this has become rampant, the space available for their settlement has been shrinking, which is posing a question mark to the humanity itself. All the multinational companies spreading its wings across the world are stationed in urban areas, the youth are migrating faster than ever to reap the fortune from citified treasure islands. Thus, the massive influx of people towards cities forces us to think about an arrangement that houses all. This gave rise to the concept of apartment or flat, which is a self-contained housing unit that occupies only part of a building.

Moreover, India is drifting away from the concept of extended or joint family and embracing the life of nuclear family. More demand for space with privacy impacted joint family structure resulting in, not spending much time at home. Due to this, beautiful bungalow and mansion are replaced by apartments and flats with all the necessity. Hence making it sensible for a buyer to own a flat, rather than a castle.

Keeping all these in mind, many real estate companies are helping out people in possessing their own space. In this regard, Mona Townships has emerged as one of the leading companies in this sector, based in Punjab. Considering all the present day needs, Mona Townships came up with astonishing residential and commercial projects, such as Mona Greens, MonaCity and Jade Business Park respectively. All the contemporary requirements are incorporated into the complexes with superior and luxury class housing zones. 

Jade Business Park , Mohali

Mona Townships presents promising luxurious avenue with environment-friendly construction. Mona Greens has adorned the outer area with vast lush greenery, along with earthquake resistant structure buildings, well lit internal roads, uninterrupted water supply, excellent ventilation etc. The interiors are designed and constructed with all facilities as per the taste and demand of present generation .

Situated in a prime location in Mohali, Mona Greens fulfills all the requirements of the modern day lifestyle desired by the younger generation.

INITIATIVES FOR THE PEOPLE ON STREETS

With India celebrating 75^th year of Independence in 2022, Narendra Modi government has set a target, “Housing for all”, under Pradhan Mantri Awas Yojana, in a phased manner. With shelter being one of the basic needs of man, this ambitious project envisages in taking every single human being from streets and footpaths to four-walled secure houses, which requires a participatory action from public, private and community sectors.

  For this vision to be effectuated, Union Government has put forward many policies and programs, like AMRUT for urban clusters, and National Rural Housing and Habitat Policy for rural areas done within the Panchayati Raj framework. Along with that, various facilities like discount schemes, interest subvention schemes, huge investment in infrastructure etc. are being provided to give it a push. Apart from lending a helping hand to social sector, this mission has a titanic potential to boost the economic growth by contributing 7 to 12 percent to GDP, as it increases the output of industries like steel, cement, tile etc. It not only benefits the industrialists, but a larger section of the population by providing employment, both in rural and urban areas.

Mona townships Swachh Bharat Scheme

Housing projects initiated by the present government should be perceived from the angle of Swachh Bharat scheme also. Both of these together could gallop towards actualizing the dream of a slum-free India.

Housing has been assigned as a State subject under Indian Constitution, and cooperation of State governments is essential for the fruition of the mission by legislating and implementing policies. The Ministry of Housing and Urban Poverty Allocation, the apex authority for issues pertaining to housing and development, decides on allocation and mobilization of resources through Centrally Sponsored Schemes and supports various external assistance programs. In this process, government entrusts various housing agencies and real estate groups to share the responsibility. A handsome amount of money is unleashed for this, which can be utilized in an effective manner, thereby attracting more investments.

Ready To Move Flats- Mona Greens

 Among the states, Punjab has been endowed with a business-friendly atmosphere, with Chandigarh as its capital and Mohali, an upcoming commercial hub with all business possibilities. The advent of Green Revolution in late 1960’s benefitted Punjab the most, by proliferating a multitude of suitcase farmers, who later tried their fortune in business. This, gradually, shifted many into real estate business also. Gradually, towns, cities and other urban agglomerations started growing in size, which finally started smothering the environment.

Mona Greens, Zirakpur

The population explosion and the non-availability of land forced people to live in clusters, where they had to compromise with many of their fundamental rights of leading a dignified life, like right to get fresh air, water and clean environment. This gives birth to an irreparable damage to one’s health and thus badly affecting the posterity. Hence, though attracted by the energetic life and occupational opportunities of cities, people like to go to a better place at the evening stage of their life.

Here comes the role of the modern day real estate builders who are looked towards for the transformation of the society in this regard. Mona Townships Pvt Ltd aims to be one of the leading real estate developing companies in the race with social obligations too alongside giving primacy to customer satisfaction. The amenities provided by Mona Greens include Earthquake resistant RCC frame structure buildings, round the clock security, power back up, uninterrupted water supply etc. to name a few, with pleasing lush green surroundings, which talk a lot of its environment-friendly approach. Moreover, Mona Townships is never enmeshed up in any red tapism or related bottlenecks. The timely delivery of projects and the quality constructions have been set as their benchmarks that make them to be chosen as the favorites in real estate world.

Thus, in the policy makers’ race of providing everyone with housing facilities, real estate agencies should also stay shoulder to shoulder with government in imparting their social responsibilities, by effectively utilizing the resources. This can further give momentum to “India Vision 2020” as articulated by Dr. A.P.J. Abdul Kalam.   

Factors defining the Real Estate Industry in 2015

 

The government`s reform focused agenda for reinvigorating the real estate sector will possibly give fresh impetus to the real estate industry in 2015, with inflation gradually going down and borrowing rates expected to go down,  will encourage potential buyers planning to buy a house to finally go ahead and avail home loans. 

The market saw a revamp and developers are now by and large focusing on affordable housing, this will go a long way though not completely in bridging the existing wide gap between demand and supply of affordable homes, also with property rates staying stable and good deals being offered by developers to clear their inventory will encourage buyers. With the economic activity picking up and Corporate India making it clear there will be hiring of new talent in various sectors to take care of the growing business needs which means that there will be rise in jobs and income which is favorable for both residential and commercial real estate projects. 

In 2015 developers will be focusing more on right-sizing and right-pricing of their projects, better designed and more efficient homes will define the real estate industry.  Affordable housing will be the key word in 2015. While the government at the center has spoken very clearly about their agenda to push for affordable housing it is the state governments that will have to carry out these initiatives. Affordability is a term that has different meaning in different markets in India. 

Each city has its own benchmark for affordability; developers in each city are aware of these facts and must focus on providing affordable housing in their cities. Affordable housing is not a difficult thing to deliver the challenge for the developer however lies in co-coordinating this format in a way that their existing brand image is not affected.  

In commercial real estate over the last few until 2014 the supply was greater than demand with the developer expecting a turnaround in economic activity, because of the slowdown of the economy the office real estate prices failed to recover up to late 2014 however we did see the start of a gradual turnaround. This can be associated to the fact that real estate developers began to reduce the supply which was high earlier to a normal level of demand which helped them to bring down the vacancy rates. In 2015 the probable demand should be around 26 to 30 million sq ft improving slightly from the level witnessed in 2014 however with India`s GDP set to strengthen further a positive growth in commercial real estate cannot be ruled out, in fact one positive development seen soon after general elections in 2014 are in the office market leases, this moderate to healthy leasing activity should continue in 2015 as well.