2005 : What a year that was

By A T Bureau

2005 had witnessed historic boom in real estate market all over the world. Specifically in India urban centres, the rates broke every pre-determined estimates. We produced reporter’s dairy for recording ups and downs of the year.

1^st – 15^th January : Stamp Duty Ready Reckoner was overvalued again. This time the authorities enhanced the property values by almost 100 % and at the same time given relief to certain areas of Mumbai by reducing the value. Rs.2000 crore was declared for rehabilitation works for Tsunami affected areas. MCHI donated one crore to Chief Minister’s Relief Fund. No Tax on deposits for NRIs declared.

16^th  January – 15^th  February : From 26^th January, “Property 2005” was organised at BKC, Mumbai by MCHI. The biggest property exhibition in the country set the mile stone for real boom. Property rates started increasing by leaps and bounds. Delhi Metro’s underground section opened. Use of Forex Reserves for infrastructure projects declared. Roff brand acquired by Pidilite

16^th  February– 31^st March : Massive slum demolition drive carried out by BMC. Even illegal buildings were not spared. Inspite of election promise to regularise slums till year 2000, Congress lead government was criticized. Trinamool Congress lead by Mamata Bannerjee objected allotment of 2000 odd plots in the satellite township of Salt Lake City. International moot court competition being held by Government Law College and D M Harish Foundation on 11 to 13 February 2005. Union Minister Kamal Nath calls for FDI in infrastructure at Indo-US summit. Property rates set for correction since union budget was expected. Union Budget 2005 was introduced in Parliament giving face wash for real estate industry. Maintained exemptions of income tax for home loans, 80 IB for builders. Bharat Nirman was planned and allocated. Service tax on construction activities was imposed.  International Property Week ended in Dubai.

Accommodation Times completed its 19 glorious publishing years. Grand function for Annual Awards was organised at 21^st March with Dr Joshi, then Commissioner MMRDA.

Maharashtra Budget was presented by Finance Minister Jayant Patil on 21^st March. Reducing Stamp Duty from 5% to 4%. Development of Mumbai was on the card. Various provisions were made for huge infrastructure.

1^st – 15^th April 2005: CBI raided Shreepati Arcade. World Bank shown interest in Mumbai development. Property rates touched unbelievable heights. Mill Land witnessed huge sale offers.

16^th-30^th April : Bar Dance closed. Mrs. Freny Bunsha, a senior most lady in real estate marketing left for heavenly abode. Thane builders organised Property 2005 property exhibition at Thane which generated huge sale in the region. Land cost increased by  800 times within three months. Andhra Pradesh annual plan for Rs.15650.77 cores finalised by Planning Commission. Malls boom took its final stage.

1^st –15^th May : Property Tax got talk of the town for expected change in the calculations. Power cuts in Thane and Navi Mumbai got hot. Elsewhere in Maharashtra, major demonstration performed against Mumbai’s 24 hours supply.

16^th-31^st May: Evershine Group celebrated 25 years of establishment. Under Ground tunnel proposed for motorist in Delhi. Plastic ban continued. HUDCO announced its first public-private venture. MOFA amendments hot up. Congress somersault on slum policy. Investors and speculators became active in real estate deals. Property rates reached beyond affordable limits.

1^st-30^th June : Morya Housing announced its partnership for promotions of Dubai projects from Dubai Properties LLC. Accommodation Times Institute of Real Estate Management (ATIREM) started its Knowledge Series Seminar from Grand Hyatt. Pune ready for FDI pronounced Kumar Gera who offered guarantee for its constructions.

1^st-15^th July : Dubai property exhibition organised by MCHI got international attention on Indian real estate market. Shapoorji Pallonji awarded ISHANYA contract. Conveyance within four months made mandatory by state government of Maharashtra. Car Park spaces do not have independent status opined Maharashtra State Co-operative Appellate Court.  Ar. Hitesh Sompura gets “ Salute Mumbai 2005” award.  Finance companies shut the door on journalists, artists and police.

16^th-31^st July : Malls dragged the real boom. over 462 malls were started construction in the country. Kohinoor sold for 702 crore. Piped gas connection started for the first time in Vasai-Virar region. Writing off outstanding funds declared irrecoverable. Town Planning GR withdrawn. Seminar on Heritage Conservation in knowledge Series held at University of Mumbai campus organised by the Accommodation Times Institute of Real Estate management. Municipal Model Law introduced for public opinion for entire India. State SEZ Act passed.

Huge down fall of rain (944 mm) on Mumbai on 26^th July. Disturbed life and huge loss to the citizens. State government’s machinery failed  to cope up with.

1^st-15^th August: Draft National Housing Policy declared. No tax on rental income suggested. Azad, union urban development minister declared no move to privatise CPWD. Ar. Sompura passed away. Delhi and NCR region boomed. Other cities in India too followed the party. Mumbai untouchable property rates gave shocks to the buyers.

16^th-31^st August: Stamp Duty Set Off allowed by Maharashtra. MCHI voices its concern against Ministry of Environment and Forest notification dated 7^th July 2004.

1^st-30^th September: Nahar Group received award from HDFC for best innovative scheme. Nahar donates 11 lakh for flood affected people. Seminar on Slum Redevelopment organised at Orchid, Mumbai by ATIREM. Ar. Reza Kabul booked in citizenship case.  Property Rates stagnated.

1^st –15^th October : Old and dilapidated buildings collapsed in a raw at South Mumbai. MCHI calls on state government to accelerate Redevelopment of Old Dilapidated Buildings and Infrastructure of Mumbai.

16^th –31^st October : Property Index by NHB mooted. Plea to stop TDR concept in Mumbai admitted in Bombay High Court. MCHI give yet another mile stone property exhibition at Mumbai. India and Italy can co-operate in a big way in urban infrastructure claims Gulab Nabi Azad.

1^st –30^th November : RBI had categorised Real Estate Loans as “ Sensitive Exposure”. HDFC and Nahar Group introduce 15% down Payment scheme for flat booking at Nahar Amrit Shakti. Short supply witnessed by real estate market.

1^st – 15^th December : Prime Minister Manmohan Singh announced Urban initiatives at Hindustan Times Leadership Summit.  Habitat Infrastructure Action Plan mooted by the Centre Government.

16^th –31 December : No FDI in Retail Sector maintains Left. HC Denies stay on Ulhasnagar demolition. State government plans to introduce ordinance to save demolition. Right to Shelter denied again in Lok Sabha. Property sellers dominate the real estate market. Property Rates ends on high note by the year end.