On this occasion of its Annual General meeting of Confederation of Real Estate Developers’ Associations of India (CREDAI) Belagavi, released a research report compiled by KLS IMER College.
KLS IMER College conducted a census survey of all the residential projects in Belagavi that were completed in the last year and that are under construction currently. Staff and students of IMER College went from street to street in the city divided into 9 clusters and conducted the survey. In all 110 residential apartment projects were surveyed.
President of CREDAI Belagavi Mr. Qais Noorani in his welcome address highlighted a few interesting findings of the report.
In all there are 2245 residential units in Belagavi which were completed in the last year and have unsold inventory and projects which will be completed in the next three years ie period of 2015 –2018. Of this figure 1525 units are under construction. The good news is that out of the under construction 1525 flats 698 are already booked ie 46 %.
720 Flats are already completed as on June 2016. Of this only 41% are unsold ie 300 units.
The total sale of apartments in Belagavi Market is sale 800-1000 flats every year. Keeping this in mind, inventory over hang in ready for occupation flats is only 25-30 % which is expected to be absorbed within 6 months.
Inventory over hang in the under construction projects is of less than one year. Which also should get absorbed with the next one year.
To compare with, PUNE inventory over hang is of 2.5 years and Bangalore is 1.5 years. With this standard, Belagavi market is in a much better position than other markets and much healthier.
Another observation was that customers are preferring to book flats in under construction projects than in ready projects. Reason given is people get a much wider choice in under construction projects, while in ready flats they are forced to settle with what they have.
The total area produced in the surveyed projects is 28,48,067 Sq.ft with a value of 1,000 crores. Developers in Belagavi have added this value to the city. They have also paid direct and direct taxes to the tune of more than 300 crores in this period and created at least 5000 new jobs in the city.
Another observation from the survey was that the quality of amenities was improving year on year with developers giving better and better amenities to improve the quality of life of the customer and improve the living standards.
DC Mr. N Jayaram addressed the gathering and thanked the CREDAI developers for doing good work and improving the quality of life of the citizens. He urged the developers to concentrate on the affordable housing sector to make homes affordable to the poor and Economically Weaker Section. He said that some Builders are making tall promises and not keeping their word to the customers and some were builders were delaying projects in spite of taking the money from the customers. He said that the government and administration will take strict action against such developers.
He also said that Belagavi has been selected as a smart city, but we can only become a true smart city if all segments of the city like HEALTH, EDUCATION, ARTS and CULTURE all develop along with the city. He said that in the development of this sector the role of CREDAI is huge in terms of development of infrastructure. He urged the developers to maintain the beauty, scenery and environment of the city along with the development. He said that in our society 80% of the people can and will only buy 1 house in their lifetime an 20% may buy a 2nd or 3rd home. He urged the developers to come forward and use the modern technology to make affordable home for the 80%.
DC N Jayaram also said that the government is in the process of updating the CDP of the city soon.
City Corporation Commissioner, Mr. Sashidher Kurer, addressed the developers and assured them that the City Corpration is working on revising the Zonal Regulations and will make the Zonal Regulations simpler and more consumers friendly. He also urged CREDAI to join hands with the City to develop homes for the economically weaker sections of society.
Mr. Sandesh Mundra, Partner Sandes Mundra Associates, CA and member of the National Taxation Committee of Builders Association of India gave a presentation on ‘THE IMPACT OF GST ON REAL ESTATE.’