Real Estate

Pawan Kumar Dhoot highlights the current scenario of the real estate sector

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A worker installs models in preparation for a real estate exhibition in Shanghai
Real estate reality – By Pawan Kumar Dhoot

Real estate market lures a number of potential buyers and is usually considered a safe bet by the investors. As a matter of fact, this sector too has its highs and lows just like any other market. For instance, there was a boom in the realty sector from 1988-1994. On the other hand, the market was stagnant during the year 2002. Pawan Kumar Dhoot, M.D. Dhoot Group, one of the leading realty entities highlights that it is imperative for the investors to consider certain factors before investing in this sector.

At present, the number of people buying residential properties has decreased drastically. The increase in the property prices compared to the average income of individuals is one of the major reasons for this. Thus, there arises a dire need to induce the concept of affordability in the real estate prices.

 The level of demand is also determined by Rental yield (the amount of rent paid per annum over the cost of buying a property). People prefer buying their own home over living in a rented property if the rent is higher than the EMI to be paid for purchasing a property. There is a direct relationship between rental yields and the level of demand. In other words, the demand tends to increase if the rental yields are high.

buy-hold-sell-real-estate
Real estate – Buy, Hold or Sell

According to Pawan Kumar Dhoot, Managing Director of Dhoot Group, the real estate market is a speculative market and thus moves in cycles. Talking about the present state of the market, he anticipated that the current correction phase will last for a few more years. The stagnancy in the realty sector has resulted in a number of unsold inventories. There has also been an increase in the cost of construction over the past few years. The increase in cost during diminishing demand has pressurized the developers to lower down their prices.

In such critical situations, it becomes important for the investors to undergo a comprehensive study of the market in order to ensure great returns and make the best use of their resources.

Also read:

Pawan Kumar Dhoot aligned Dhoot Group’s mission-vision with ‘Make in India’

Pawan Kumar Dhoot – Latest News about Real Estate

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

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Dhoot group Real Estate

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. 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.

How CREDAI Stands for Realty Developers , asserts Dhoot Group

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Raghuram Rajan on Realty Sector

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.

Raghuram Rajan on Realty Sector asserts Pawan Kumar Dhoot
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.”

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

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thequint-2016-03-a9d7ad59-d8e4-4604-8cb6-c07a33adcb66-iStock_000058762434_Small

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 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.

Regulator

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 adjusted Dhoot Group’s guideline target vision with ‘Make in India’

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make in india by pawan kumar dhoot

‘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.

narendra modi's vision

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.

make in india for all by dhoot group

“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.

“We already have the vision (Homes for All Indians by 2022) and the campaign (Make in India),” said Pawan Kumar Dhoot. “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.

OLYMPIA ENCHANTE

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26 north and south facing villas spread across sprawling 4.5 acres. 170 m pedestrian-only green spine running from the front of the property to back. Combines the exclusivity of bungalow living with the merriment of community living. Olympia Enchante is a Pre Certified PLATINUM rated Green Building.

Name : Olympia Enchante
Location : Whitefield – Bangalore
Area : 0.2 Million Sq. ft.
Type : Residential

OLYMPIA ENCHANTE
OLYMPIA ENCHANTE

PROJECT FEATURES

  • 26 north and south facing villas spread across sprawling 4.5 acres
  • 170 m pedestrian-only green spine running from the front of the property to back
  • Combines the exclusivity of bungalow living with the merriment of community living
  • Olympia Enchante is a Pre Certified PLATINUM rated Green Building

Time Centre by Dhoot Developer

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Time Centre an office-cum-shopping-complex is designed keeping in mind the pace of time. Time Centre Project promoted by Sh. Pawan Kumar Dhoot and Ninex Group. Project Located at Golf Course road, Time Centre will provide ultra-modern infrastructure and facilities which will make it a right destination for the retailers, corporate world and shoppers