Kerala Real Estate - Information, News and Thoughts

Land Registration Fare Value Draft published

noreply@blogger.com (Kerala NRI) — Fri, 09 May 2008 19:36:00 +0000

Updated May 13 2008

Kerala Govt Published Draft for the Fare Value assessment for all areas. Not so surprisingly, the new fare value is not much different than the current value. In simple terms this means the future buyers are not going to pay any higher tax than one would pay today. The details of specific areas are yet to be known.

The information is expected to reach the registartion office in next few weeks. The State government notified the draft containing 15-lakh pages through a Special Gazette early this week.Fair value of land has been proposed for 1,452 villages in the State.

Several aspects have been considered for determining the value. Land in each village has been divided into 15 categories fixed by taking into account factors such as commercial importance; access to National Highway, State Highway and other major roads; facilities for water supply, electricity, transport and communication; and proximity to market, bus stand, hospital and educational institutions. Fundamentally, land across the State has been categorised as dry land, wasteland, wetland and garden land. Earlier, it was classified into just wetland and garden land.

The highest priced area is M.G Road Kochi. The assessed fare value for this area is 10 lakhs / Cent. The lowest is Rs 5000. As for, when this would be in effect is not known. I do not believe that bothers any one as it is going to be pretty much same as today.

For further reading - http://www.hindu.com/pp/2008/05/10/stories/2008051050470300.htm

Register Land Purchase Agreement - Kerala New Law

noreply@blogger.com (Kerala NRI) — Wed, 30 Apr 2008 03:04:00 +0000

To avoid black money transactions and other under the table deals, Kerala goverment is working on a new bill that would require the land transfer agreement also to be registred. Currently it is a common practice to write agreement for the actual amount of transaction and then register the land at a later time for the minimum required value mandated by the local registration office.
It seems Govt will bring this bill in the next Assembly Session. Another move along with this is to publish the revised land fare value for all most all areas. This is also expected in July.

India - global real estate invester's preferred market

noreply@blogger.com (Kerala NRI) — Fri, 28 Mar 2008 01:17:00 +0000

According to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE) , India is one of the most preferred property market among foreign investors globally.

This report is from
January/February 2008 (AFIRE) news letter. India is preferred by 16.7 per cent of the respondents favoring the country as the most fancied place for real estate investments. In the survey , Although the US was named the top ranking country, China and India placed a strong second and third. Compared to 2006, China had the biggest improvement in investor’s perceptions, moving seven percentage points, while India slipped by almost two points. To be read along the lines is JP Morgan (One of the largest investment banks in US) plans to invest 1500 Crores in real estate projects in india.

You can read the full report here

Parking Spots rising costs

noreply@blogger.com (Kerala NRI) — Thu, 27 Mar 2008 03:22:00 +0000

An interesting article about the cost of parking lots in mumbai. It seems that a parking spaces in mumbai are as expensive as a flat / apartment in cochin.. Another article about 25 floor parking planned in mumabi
It wouldnt be long before we see an article like this parking spot for $225000 or an ad like this Outdoor Parking spot for sale for cochin and other major cities in kerala.

Storage areas and parking spots in the city is a multi billion revenue business in developed countires. Parking is a big problem in most cities in kerala. It is not uncommon for people to choose a store / area to shop just for the reason that it is easy to find parking around. That 5 cent or 10 cent second plot (plot behind the roadside plot) you have, could worth much more in next 5 years.. especialy when tata nano hit the road ....

Real estate market to grow ~6.5 times by 2015: report

noreply@blogger.com (Kerala NRI) — Wed, 26 Mar 2008 02:02:00 +0000

Indian Express Reports that Indian real estate market, growing at 30 per cent, is likely to touch $90 billion by 2015 from $14 billion at present. According to the report

IT and ITeS, banking and financial services have in particular created a huge demand for office space. IT and ITeS alone is expected to require 150 million sq ft across urban India by 2010. The year 2006-07 witnessed organised retail growing at a pace of 25-30 per cent.

Read it here

Watch Dog for Housing Builders

noreply@blogger.com (Kerala NRI) — Sun, 23 Mar 2008 16:22:00 +0000

Real Estate fraud is booming like never before, and con artists are finding new and ingenious ways to fleece unsuspecting property investors. We have heard of so called, 'leading builders' being involved in land encroachment to real estate agents cheatings buyers.

Looks like Govt and the builders association itself is stepping up to provide some protection to the consumers (and thus protect their bussiness :) ). Every buyer has to understand that , a legal check is the non-negotiable part of purchase.

Cost of Stamp Paper and Fees : property registration

noreply@blogger.com (Kerala NRI) — Sun, 23 Mar 2008 06:23:00 +0000

This is a sample calculation table to find how much would you need to spend , based on present property registration fees and stamp rate , when purchasing a property . This information is provided for understanding and planning purpose only. Though, the numbers provided here are based on recent registartions , it may not be accurate for every place in kerala.

At this time, the rate of stamp duty in panchayat area is
10% plus registration fee and surcharge 2 %. The total is 12%. For the registration in municipal area 12 % plus registration and surcharge fee 2 %. The total is 14 %. For registration within the Corporation area 13.5% is for registration & surcharge fee 2 %. Total is 15.5 %.

You can do your own calculation using this Excel spread sheet..
If you have a google/gmail account use this google url
http://spreadsheets.google.com/ccc?key=pU7ASvIyVxppYUEtlWHI_fA&hl=en
You may download the Excel spread sheet from below link
http://rapidshare.com/files/101655095/Land_Registration_Price_Calculator.xls.html

How to use this calculation to find the price for your transaction
Column B7 :- Enter the total area of land (in cents) in your transaction
Column B8 :- Enter price per cent
Column B12 :- Enter fare value per cent

The total price is shown on Column 15, depending upon if the property is located under panchayat , muncipality or corporation

L&T Tech Park at Infopark Kochi Inauguration

noreply@blogger.com (Kerala NRI) — Sat, 15 Mar 2008 15:22:00 +0000

The Hon’ble Chief Minister of Kerala, Shri. V.S. Achuthanandan, will inaugurate ‘Tejomaya’ – phase I project of L&T Tech Park and will also launch the work for its proposed phase II project – ‘Signature Tower’.
Both the projects are located in the Infopark campus at Kakkanad, Kochi. , L&T Tech Park is set to catalyze the IT boom in Kochi by providing world-class workspace for companies having expansion plans in tier-2 cities. Several IT majors like TCS, IBS, Arbitron Inc., L&T Infotech, etc. have already booked space in Tejomaya. Over 3500 technocrats are expected to be working out of the facility.

L&T Tech Park will come up on a 4-acre plot in the picturesque campus of Infopark Kochi, a Government of Kerala organization. Located 25 km from the Cochin International Airport and 12 km from the heart of the city, L&T Tech Park will be an ideal destination for IT and ITES companies.

L&T Tech Park will have a total built-up area of 1 million Sq.ft and a multi level car park of 1.29 lakh sq.ft. . The project will be executed in three Phases: 0.4 Million Sq.ft in Phase one Tejomaya, 0.5 Million Sq.ft in Phase 2 - SIGNATURE TOWER for Infopark & 0.18 Million sq.ft in Phase 3 - Swapnalaya.

Here is a list of other projects in Infopark campus.

Interesting facts about Kochi real estate

noreply@blogger.com (Kerala NRI) — Sun, 02 Mar 2008 19:26:00 +0000

A freelance writer Resmi Jaimon , analyzing some facts about real estate scene at Kochi. The author is "a regular contributor of The Hindu's Property Plus & Metro Plus; Rediff; Information Technology; and a couple of other publications"

It is an intersting read.. Kochi Real estate facts

Another article about real estate projects at kakkanad

NRI Land Registration Procedures

noreply@blogger.com (Kerala NRI) — Sun, 02 Mar 2008 06:40:00 +0000

The ever changing rules and regulations on land registration, often confuses NRIs. One of the most common issue is the lack of information about how to buy / sell land without being physically present in Kerala. A regulation change, last year, made it a requirement for the buyer and seller to be present at the registration office for the transaction and affix photo and finger print.

According to some web sites "the NRIs could send the power to his family members or others to get the document registered in their name through a power of attorney , this power attonamy stamp charge is normal for to direct blood relative and for others stamp charge is high, in this case also buyer and seller must produce their thump impression and photo at the time of registration, it can be sent through email or fax "

Following is the information I received from a NRI friend who went through a registration(BUY) last month. A power of attorney was not required for a purchase. In this case NRI was a buyer. To be able to sell , I think it requires to have a power of attorney towards the representative in Kerala, apart from following documents.

NRI buying land without personally appearing

Step 1: Find the fair value / thara vila for the property. Mostly any adhahram ezhuthu vendor or the broker can find this information for you. Your registration price must be above this value.

Step 2: Buy Stamp Duty Paper / Mudra Pathram for the registration price. Stamp paper could be bought from adhahram ezhuthu vendors or local govt treasury.

Step 3: Mail One Stamp Duty Paper (of the highest value is preferred, if there are multiple) to the NRI who is involved.
Step 4: NRI need to paste a PASSPORT SIZE PHOTO on the Stamp Duty Paper and place the LEFT THUMP IMPRESSION (left thump finger print) on the appropriate place. THUMP IMPRESSION must be overlapping the photo and stamp paper.

The sellers photo must be pasted immediately after the logo on the stamp paper
The buyers photo must be pasted immediately after the sellers photo.

Step 5: Attach attested/notarized copies of identity and address proof and documents to prove the NRI status. Identity proof can be passport first page. Foreign Address proof can be employment letter and NRI status proof could be copy of visa. Caution : Double check with the local registration office , what documents do they accept.

Step 6: The NRIs representative can be present with the above stamp paper and documents to execute the registration

There are some details here as well. Kerala govt exemptsNRIs

Though this is from a real experiance, to avoid troubles, It is advisable to double check the process directly with someone in the specific registration office in advance.

There is a risk involved in sending a blank stamp paper(the details are written usualy at the time of registration) with finger print. Some else getting hold of it might cause big troubles and long legal battle. I think the initial rule (requirement for physical presence) was made without enough thinking and later they bend it to accommodate NRIs.

Also it is possible to find this information from a ‘ADHARAM EZHUTHU’ (vendor) agency/individual who has experiance with the specific registration office where the transaction will be registered.

HDIL Cyber city Kalamassery, Kochi - May Happen

noreply@blogger.com (Kerala NRI) — Wed, 20 Feb 2008 17:06:00 +0000

After all the controversies , it is reported that, LDF and Govt has taken a stand that the HMT – HDIL land transaction is not in violation of any agreements between Govt and HMT .

This probably gives a new breath to the Cyber city project. Even though not much details are known on the Cybercity, following is some comparison of the same with smart city

Comparison between HDIL Cyber City and Smart City Kochi

	Cyber City	Smart City
Company	HDIL (Housing Development and Infrastructure Limited) Mumbai	TECOM Investments Dubai
Total Area	~70 Acres	~246 acres
Type	INTEGRATED IT Township (Kerala’s first!)	Information Technology Township
Build Area	?	8.8 million sq ft
Investment	Rs.4000 Crores (in 4 yrs)	4,200 crore
Expected jobs	60,000 direct 1,50,000 indirect jobs	90,000 direct

About Real Estate Prices in Kerala

noreply@blogger.com (Kerala NRI) — Sat, 16 Feb 2008 00:58:00 +0000

An article about the price increase in property investments in the last few years. The numbers illustarted in the article might look like exaggrated. Infact they are not.. I guess every one of us knows some or the other guy made a fortune out of some land they inherited or bought for peanuts 5+years ago.. I remeber reading some where , the minimum(yes, minimum!) profit per year, in any land investment in cochin area have been 60% for the last several years.

Despite of our Govt and Kerala Media keep repeating 'land mafia', I sincierly think it is not just some 'land mafia' driving all the prices up in kerala. Some thing Kerala media , govt and many people fail to notice is that this is a growth that is reflected in every city in India .. Every part of india! While I agree there are some players in this field doing and trying foul plays, driving up the prices, it cannot be just that.. As per Wikipedia India " is the third largest in terms of purchasing power parity. India is the second fastest growing major economy in the world, with a GDP growth rate of 9.4% for the fiscal year 2006–2007"

Some happenings in the last few years...

Ambani is buliding the most expensive home in the world
Tata motors is buying 2 leading luxury auto brands in the world Jaguar and Land Rover
Lakshmi Mittal, is world's largest steelmaker ....
14 new billionaires from India join world's richest people list,in the last year...

and the list goes on....

Indias projected GDP growth is 8+% in this year also.. When every business in India is booming, would it refelect in kerala ?.. Is it sensible to say , keralas land prices are all controlled by some 'land mafia' ?

Cochin Cyber city issue - Minister K P Rajendran Interview

noreply@blogger.com (Kerala NRI) — Tue, 05 Feb 2008 04:14:00 +0000

All the talks are about why HMT kalamassery land should not have sold to HDIL for cyber city project. All the media and opposition (within govt and the UDF)parties are after the blood of the industrial and revenue minister. Yes, since there was attempt to encroach the goverment land,it should be enquired and the conspirators must be brought to justice..

But what did HDIL do wrong ?.. how about some talks on establishing Cyber city else where? How about some talks on offering HDIL other options? Neither goverment nor the opposition [the so called ambassadors of vikasanam] seem to be interested in it. Needless to mention about kerala media! They are real parasites....

National Highway Expantion: restriction to constructions

noreply@blogger.com (Kerala NRI) — Tue, 05 Feb 2008 02:40:00 +0000

Kerala government is expected to release a notification, in two weeks,which would restrict the construction/building by the side of national highways.

All constructions will be prohibited for 70 meter width on national highways , 50 meter width on state highways and other major roads at 30 meter width. The distance is calculated from the Middle of the road.

The goverment will not accuire the land immediatly. The accusition will happen at market rate, at the time of road development.

Proposed Changes in Govt Policy & Rules

noreply@blogger.com (Kerala NRI) — Sat, 02 Feb 2008 23:31:00 +0000

hindu.com reports some details about the proposed land policy changes that are under the consideration of kerala government.

The article can be found here http://www.hindu.com/pp/2008/01/19/stories/2008011950430100.htm

2 important parts of the proposal that might directly affect the NRIs and individual buyers are 'Fair Value' and 'New Registration System'.

The fair value [lowest land value for a transaction] system as per hindu article

"will be actually helpful as most of the NRIs, who are leading land buyers, can enter into land deals without having to bother about paying money in black. "

The other side of it is that, the buyer and seller would end up paying a lot more govt taxes/stamp duty than they do today.

According to the article The 'New Registration System'

will make it compulsory for those involved to appear at the registration office

This rule, could make things impossible for NRIs.. Hopefully they implement it leaving excpetions for NRIs.

One cannot expect these proposals to make any immediate impact on the current market.. The laws will take time to be put in place.

More reading about the proposed changes in land registration
http://keralaletter.blogspot.com/2008/01/initial-response-to-land-policy-draft.html
More reading about Fair Value :
http://www.hindu.com/pp/2006/12/02/stories/2006120200590100.htm

http://www.thomasgeorge.org/2007/07/land-laws-in-kerala.html