Karnataka cuts stamp duty to 3% on apartments below Rs 45 lakh – ET RealEstate

BENGALURU: In a bid to revive reality sector in the state, Karnataka on Thursday decided to slash stamp duty on registration of apartments that cost Rs 35-45 lakh from five per cent to three per cent.

Briefing reporters after the cabinet meeting, Law and Parliamentary Affairs Minister Basavaraj Bommai said that the stamp duty reduction is aimed at providing relief to home buyers looking for affordability.

“This will be applicable for the first registration of these apartments. There is also a proposal for upward revision of guidance value. This will be examined by the specific committee constituted for it,” he said.

The Cabinet also approved the construction of five lakh houses for both urban and rural poor in the state in next two years at an estimated project cost of Rs 8,000 crore.

“Four lakh houses in rural areas will be built under various schemes including Basava Housing Scheme, Dr B.R. Ambedkar Housing Scheme and Devaraj Urs Housing Scheme while one lakh houses will come up in urban areas under the Vajapayee City Scheme and B.R. Ambedkar Housing Scheme (Urban),” Bommai said.

Apart from this, Karnataka approved Rs 500 crore funding to provide basic infrastructure to execute the already-cleared one lakh apartments under multi-storey scheme.

The minister also added that the state government will establish the Centres of Innovation and Development in Smart Agriculture (CIDSA) with the Hexagon Manufacturing Intelligence India, in all seven agriculture universities in the state at an estimated cost of Rs 110 crore each.

“These centres will help employ technology in agriculture for smart assessment of crop pattern, crop survey among other activities. The cost of these centres would be Rs 110 crore per varsity, of which Rs 85 crore will be borne by the company and the rest by the state government,” he said.

These centres will be specialised in various tech fields such as Drone Lab, Agronomy Lab and several other innovative technologies that would bring drastic changes in the famer’s lives, he added.

In other decisions, the Cabinet approved the implementation of the Karnataka Arogya Sanjeevini Scheme to provide cashless medical treatment for state government employees and their families.

It also accorded administrative approval for the detailed project report to upgrade the existing 248 MLD water treatment plants at K.C. Valley at an estimated cost of Rs 718 crore as per the standard stipulated by the National Green Tribunal.

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Office space leasing touch 10.9 million sq ft in top six cities: Report – ET RealEstate

NEW DELHI: Leasing activity across six major cities in India during the first half of 2021 dragged to a six-year low, according to a recent report by Savills India, an international real estate advisory firm.

In the January-June 2021 period, office absorption in six major cities stood at approximately 10.9 million sq ft, down by 38% from the corresponding months a year ago.

Bengaluru, Delhi-NCR and Mumbai constituted around 69% of the total leasing activity in H1 2021 across top cities of the country.

Bengaluru continued to lead with 4.1 million sq ft of leasing activity representing 37% share in H1 2021 followed by Delhi-NCR which witnessed leasing activity of 2.0 million sq ft recording a 37% year-on-year decline.

While Mumbai and Hyderabad shared third place with approximately 1.4 million sq ft absorption, the annual decline in leasing was sharper for Hyderabad at 46% compared to 39% for Mumbai.

Pune recorded approximately 0.9 million sq ft. leasing while, Chennai saw leasing activity of 1.1 million sq ft.

“The second wave of the pandemic has forced most organisations to reinstate their work from home policy once again dampening the overall sentiment of the office market. We believe this to be only a temporary pause, as amid the crisis, we did continue to see large lease deals being signed in key markets, symbolic of occupiers’ plans to return to office,” said Anurag Mathur, CEO, Savills India.

Despite the ongoing pandemic, the technology (IT) occupiers continue to lead the demand followed by BFSI segment. While the IT sector has increased absorption and holds a 51% of the share, their combined share of approximately 63% is same as in H1 2020.

The new supply rose by 4% at 18.0 million sq ft in H1 2021 from the year-ago period.

Bengaluru has recorded the highest infusion of new supply constituting a 36% share, followed by Hyderabad and Delhi-NCR at 28% and 22% shares, respectively.

In H1 2021, the overall vacancy levels increased to 16.2% at the end of June, as supply addition exceeded the pace of leasing activity. Prime locations with limited availabilities saw stable rents while a few micro-markets have seen a sharper decline as landlords exhibited flexibility to attract new clients.

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WeWork lease out 17,000 sq ft space to 3M India in Bengaluru – ET RealEstate

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NEW DELHI: WeWork India said that the 3M India, an Indian subsidiary of global technology giant 3M, has leased 17,000 sq ft area of flexible workspace at its Prestige Central building in Bengaluru, for a two-year period.

“In recent times we have seen an increased demand from all businesses, especially leading enterprises such as 3M who have recognised the inherent value offered by the flexible workspace model,” said Santosh Martin, chief revenue officer, WeWork India.

About 400 employees of 3M India will sit at its new headquarter.

“This arrangement offers convenience and flexibility for our people, in a contemporary and safe environment,” said Sandhya Ganapathy, head of Corporate Communications, Security and Real Estate, 3M India.

In April 2021, WeWork India had raised Rs 200 crore from investors, through a mix of debt and equity.

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Broke Bengaluru development body tweaks rules to sell its unsold flats – ET RealEstate

BENGALURU: Even as the Bangalore Development Authority (BDA) is unable to form new layouts, it is also unable to find takers for the flats already constructed. Currently, about 1,300 flats are yet to be sold. To resolve this, the BDA has decided to tweak its rules to attract buyers.

Until now, as per norms, only one member from each family was permitted to buy a flat from the BDA. Now, as per the new rules, BDA is allowing more than one member per family to buy flats, even in the same apartment complexes. In case an organisation is interested in buying flats, BDA will sell its flats at a discount of 10 per cent to those buying flats in bulk.

Earlier, flats were sold among applicants by drawing lots. This drew some criticism as buyers could not buy a flat of their liking. Now, the authority is planning to allow buyers to book flats online. At the moment, 502 flats are available for sale in Kanminike (phase two). The 2 BHKs in this area are sold for Rs 23.75 lakh. Another 265 flats are available in Kanminike (phase three). Here, 2 BHKs cost Rs 28.5 lakh, and 3 BHK flats (92) are available for sale at Rs 40 lakh each. Another 103 flats are available at Kommaghatta (phase one) where each 2 BHK flat costs Rs 23.75 lakh. In phase two, 250 2 BHK flats, costing Rs 30.4 lakh, are available.

In Doddabanahalli (phase 1), 28 2 BHK apartments are available at Rs 25 lakh each. Another 40 2-BHK flats costing Rs 44 lakh each, are available in Valagerahalli (phase six). In Malayalam (phase two), 42 2-BHKs costing Rs 42 lakh each are available.

Earlier, the BDA had decided not to construct new flats due to the low demand and focus on selling villas. However, the cash-strapped organisation is unable to go ahead with that project. SR Vishwanath, chairman, BDA, said the BDA was planning to make its flats attractive by adding features like gyms, parks, parking lots, etc.

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