News Roundup: Realty Stocks Head North And Bangalore Builders Seek E-Auction Of Sand

As the Amended Land Acquisition Bill was tabled in the Parliament on May 11, 2015, realty stocks gained on Monday. This was expected because if the Bill is passed, it make acquisition of land in India easy, in five major areas.

Here are the other important real estate stories:

The Airports Authority of India (AAI) has asked builders to not develop land near the airport in Vijayawada. Builders in Bangalore said that with e-auction of sand, there would be greater stability of prices. The Nashik Municipal Corporation has warned residents that they should ensure that they have the approval of NMC for the construction of their residential properties.

Now, read the stories in detail:

1. Realty stocks gained on May 11, 2015, the day government tabled Land Acquisition Bill in the parliament. Oberoi Realty was up by 4.92% and Prestige Estates was up by 4.79%. Sobha was up by 1.92%, and Indiabulls Real Estate was up by 2.54%. The Land Acquisition Bill allows removal of the consent clause and the social impact assessment provision for acquiring land for five areas: Industrial corridors, public-private-partnership projects, rural infrastructure, affordable homes and defence. The Bill also allows acquisition of agricultural land in India. On May 12, at the pre-close session, Realty stocks plunged by 3.23%.

2. The Airports Authority of India (AAI) has asked real estate developers to secure No Objection Certificate (NOC) before starting projects in the vicinity of the new airport in Vijayawada. After the new airport was announced, real estate activity has been increasing in the area. According to the Central government's statutory order number 84, builders must obtain permission from the AAI before they start constructing in the land, within 60 km radius of the airport, in order to receive clearance on the height of the structures they propose.

3. Builders in Bangalore said that with e-auction of sand, there would be better supply of land and greater price stability. There is a shortage of sand in Karnataka. Builders said that locally procured sand is likely to be illegal, smuggled and dangerous for end users of projects in Bangalore. The price of a load of sand rose from Rs. 30,000 to Rs. 70,000 in the past three months.

4. The Nashik Municipal Corporation (NMC) has urged the citizens to make sure that the builders give them copies of approved building plans before they buy property. The NMC asked citizens to be careful after they found that builders were engaged in constructions which were not approved by the civic administration. It has come to the notice of NMC that certain practices like raising the price of flats by excluding cupboard space while seeking permission for construction and then including it while selling the property are rampant.