पुण्यात गृहप्रकल्पासाठी "अच्छे दिन'

पुण्यात गृहप्रकल्पासाठी "अच्छे दिन' http://epaper1.esakal.com/5Nov2014/Enlarge/PuneCity/page4.htm
पुणे - दिल्ली, अहमदाबाद, बंगळुरू, मुंबई यांसारख्या महानगरांतील घरे बांधण्याचा वेग कमी होत असताना पुण्यातील गृहबांधणी मात्र चांगलीच वाढली आहे. देशात कोलकत्यातील घरबांधणीचा वेग गतवर्षीच्या तुलनेत सर्वाधिक 28 टक्के होता, तर पुण्यात तो दुसऱ्या क्रमांकाचा म्हणजे अठरा टक्के होता.

कुशमन ऍण्ड वेकफिल्ड या जागतिक स्तरावरील संस्थेने याबाबत पाहणी केली असून दिल्ली, अहमदाबाद, बंगळुरू, मुंबई यांसारख्या महानगरांमध्ये अशा प्रकल्पाची संख्या गेल्या वर्षीच्या तुलनेत घटली असल्याचे त्यात आढळून आले. देशामध्ये 166 नवीन गृहप्रकल्प गेल्या तिमाहीत सुरू झाले असले तरीही परवडणाऱ्या घरांच्या प्रकल्पात मागील वर्षीच्या (जुलै- सप्टेंबर 2013) तुलनेत यंदा 52 टक्‍क्‍यांनी घट झाल्याचे या पाहणी अहवालात नमूद केले आहे.

कुशमन ऍण्ड वेकफिल्ड ही जागतिक स्तरावर बांधकाम क्षेत्रात सल्लागार म्हणून काम करणारी संस्था आहे. या संस्थेतर्फे भारतातील आठ शहरांमध्ये जुलै- सप्टेंबर या तिमाहीत नव्याने बांधण्यात येणाऱ्या गृहप्रकल्पांची पाहणी करण्यात आली. या शहरांमध्ये यंदाच्या तिमाहीत 166 गृहप्रकल्प हाती घेतल्याचे दिसून आले. चेन्नईमध्ये सर्वाधिक 45 प्रकल्प तर अहमदाबादमध्ये सर्वांत कमी म्हणजे पाच प्रकल्पांची पायाभरणी यंदा झाली. या अहवालानुसार, देशातील या शहरांमध्ये मागील वर्षी (जुलै- सप्टें 2013) 43 हजार 800 सदनिकांचे प्रकल्प हाती घेतले होते. त्या तुलनेत यंदा 34 हजार 600 सदनिकांचे प्रकल्प उभारण्यात येत आहेत. यंदा 400 लक्‍झरीस्‌ सदनिकांचे प्रकल्प देशात उभारले जात आहेत. परवडणाऱ्या घरांची संख्या 9 हजार 800 वरुन 4 हजार 700 म्हणजेच 52 टक्‍क्‍यांनी घसरली आहे.

Govt to develop dry port in Pimpri Chinchwad

http://timesofindia.indiatimes.com/city/pune/Govt-to-develop-dry-port-in-Pimpri-Chinchwad/articleshow/45008645.cms

Govt to develop dry port in Pimpri Chinchwad

PUNE: The Centre will develop a dry port in Pimpri Chinchwad to enable export, Nitin Gadkari, Union minister for road transport and highways, said on Saturday.

Gadkari was speaking after inaugurating the Institute of Driving Training and Research, developed by Central Institute of Road Transport (CIRT) and Tata Motors on a public-private partnership basis.

The minister said the roads and ports in the country are congested and there was a need to develop inland transport. "Inland transport forms 20% of the total traffic in China, while it is only 0.5% in India. If tourism is to be promoted, there is need to develop inland transport," he said.

Gadkari said the CIRT must set up a centre here wherein research can be conducted in transport, automobiles, pollution control norms and other aspects meeting international standards. "We will provide all the funds needed for setting it up. Small models of the driving training institute should be set up in villages on a public-private partnership basis to train drivers and reduce accidents," he said.

The Union government will also encourage state governments to develop bus ports on public-private partnership basis to give facilities similar to those at airports to passengers. Hotels, restaurants, malls and other facilities at these bus ports will also generate employment, he said adding that the Union government will also give subsidy for gap funding to make them viable.

Gadkari said the Centre has prepared a draft suggesting changes in the Motor Vehicles Act 1988 and will make efforts to get it passed in the Parliament in the winter session. He said that negligence by drivers was responsible for the maximum number of road accidents, but there is also a need to improve roads and give proper training to drivers to reduce accidents.

The country will need around 4.7 crore skilled drivers by 2020. These drivers can also get jobs abroad, he added. Sent from my iPad

Reserves ! Savings

http://www.arthayantra.com/latest-blogs/item/379-three-out-of-four-indians-would-go-bankrupt.html
Three out of four indians would go bankrupt

Mr. Horace Mann said ‘There is nothing as costly as ignorance’. We follow an age old habit of ignoring the consequences of an emergency in our life. The practice of maintaining emergency fund is not in the highest priority list amongst the most of the professionals. ArthaYantra conducted a research on 2000+ working professionals across various cities of India covering various age demographics, some alarming results came out which expose the preparedness of these professionals to meet an emergency in their life. An emergency is the risk caused due to death/disability, risk of health or loss of job.

Entry Level Professionals

When it comes to preparedness for an emergency, Entry Level professional fared surprisingly low. As high as 85.6% of professionals do not have enough savings for emergencies or have inadequate liquid reserves.

The entry level professional are generally those who have less than 6 years of working experience, mostly single with less financial burden. But considering the future aspects, it is very important for them to start having adequate reserves.

Mid - Level Professionals

The midlevel professionals are categorized as young family with mortgages to pay and some immediate financial requirement. This category ideally should have a sufficient reserves as the cash requirement are short term and immediate. But they fall short when it comes to preparedness for emergencies. Research shows that 61.60% percent do not have proper surplus to meet any future contingencies.

Although the numbers as compared to the entry level professionals are slightly better, but looking at their future burden of responsibilities, they are the most vulnerable to such emergencies. It would be prudent for this group of professionals to proactively start building an emergency corpus to face any adverse situation in life.

Senior Level Professionals

When it comes to even higher level professional the picture doesn’t look good at all. Alarmingly, 70.83% of senior level professional do not have proper buffer for emergencies.

Consider middle age families with young kids in a situation where the sole breadwinner dies due to accident or loses the job or one of the family members get seriously ill. In such circumstances, they would be forced to either sell their assets like jewelry or even their homes. Personal loans, hand loans and credit cards start playing their role in addling on to their debts and hence disturbing their financial life completely.

Planning for future financial goals should never be done at the cost of ignorance of planning for an uncertain future event. One needs to make sure that the amount spent for securing such a risk is not treated as an unnecessary expense. Just like planning for retirement, planning for an uncertain job loss by setting aside a multiple of the monthly expenses is also very important. It would ensure the lifestyle remains unchanged even when the situation gets tough.

In personal finance there are three risks which are required to be covered.

Risk of death/disability

For a family where the earning member either dies or suffers disability which results in the loss of income, a proper insurance coverage against such situation would ensure adequate support to the dependents. The insurance coverage should only be in the form of a pure term plan or personal accident insurance policy.

Risk of health

With the change in lifestyle and increase in hospital expenses, one has to ensure that proper health insurance coverage is taken. This would cover the expenses in case of illness of any family member. Although there is coverage provided by the employer in some cases, this coverage is always not adequate. Hence one should not rely only on the coverage provided by the employer but also buy some coverage on their own to ensure the entire risk is adequately covered.

Risk of Job Loss/Major expenses

Planning for this kind of emergencies is the most ignored aspect of personal finance. Proper liquidity has to be maintained throughout so that any possibility of personal/hand loans and credit card usage is minimized. The ideal amount to be kept aside should be 3 to 6 months of monthly expenses.

Conclusion:

Before determining future financial aspirations, the savings for an emergency should be considered as the highest priority objective. Although there are other options that can be used in such contingencies like personal loans, hand loans, etc. but they would finally end up as a liability and hence will cause serious dents in surplus levels. Ignoring the savings for emergency can even cost future goals impacting the entire personal finance of the individual. It would be good to start saving with a disciplined approach to face any emergencies in life.

The Difference Between Real Estate Investment and Speculation

http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=25988&cat_id=1
Property Pulse - the Realty Plus Newsletter

The Difference Between Real Estate Investment and Speculation
Arvind Jain,
Managing Director - Pride Group

In financial circles, the terms real estate investors and real estate speculators are used to refer to people who are buying property to make a profit, rather than for personal use. Though the two terms are often used interchangeably, they are not exactly the same. Nevertheless, even veteran financial specialists tend to get mixed up between the two.

In order to understand the difference between the real estate investor and the speculator, it is necessary to have a look at their methods of operation. A speculator predicts (or attempts to predict) the future return on any investment, and tends to be focused on short-term profits. He or she is often not very well informed on how the asset class of real estate works in a particular locality. Since speculators are usually also active in other investment segments such as stocks, bonds and bullion, they tend to use the same approach for all asset classes. The general approach is to buy low and sell high in a very short period of time.

A real estate investor, on the other hand, makes a careful analysis of the current market position, market trends and related affecting factors so as to make an informed and forward-looking investment decision. Investors are not looking at short-term profitability, which is in any case not a viable objective to operate from in Indian real estate. While investors also tend to invest into other asset classes, they do not do so without fully understanding them.

The next question about the difference between speculators and investors would pertain to the returns they get. While a speculator may make a lot of money if he makes an accurate guess, all such returns are short lived. If the real estate market is facing a short-term decline, the speculator stands to lose all his money because he is also investing only for the short term. A related facet of real estate speculation is that it is, for the above reasons, not suitable for rental income generation.

An investors, however, is looking at healthy, steady returns on capital appreciation and rental income. For this reason, he maintains a reasonable investment horizon which is tailored to the market dynamics of this particular asset class. This is important because Indian real estate is subject to cyclical ups and downs. A property cycle is dictated by various factors related to population growth, GDP, policy framework and sentiment, and boom and slump periods are more or less a given. Indian property investors aim to ride through the predictable ups and downs of this cycle. To do so they must remain invested for a period of at least 5-7 years.

Another reason why a longer investment horizon is important is that most investors look at buying properties at a lower rate at new locations in anticipation of the demand to come. For this to bear fruit, they must give these locations sufficient time to receive basic infrastructure and spillover demand from adjoining areas.

Long-term investments made by property investors provide stable and reliable returns. Investors are not prone to losing their money due to a receding market, because they have made a more careful analysis of the market condition and are willing to wait till their expected results are delivered as per the market data before they make their move.

As Robert Kiyosaki puts it ‘Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.’ Also, real estate is by far the ultimate asset since it not only grows in value but also performs as a rental income generator. But it must always be approached from an investor's perspective rather than from speculative objectives.

Realty demand looking up: Credai

http://wap.business-standard.com/article/companies/realty-demand-looking-up-credai-114082101416_1.html
Realty demand looking up: Credai

The Confederation of Real Estate Developers of India (Credai) said the property market across the metros in the country was looking up and it expects good absorption in residential property in the next 6-9 months.

"In my communication with some of the builders in the south, I was told the demand scenario has picked up in the last few months. Demand in the metros in the last 3-4 months was also encouraging, when compared with the same period last year," said C Shekar Reddy, national president of Credai.

According to him, the RBI's recent move to lend support to the affordable category by allowing banks to raise exposure through priority sector lending was a positive step for the realty sector.

He said the Rs 4,000-crore allocation to the National Housing Bank in the Budget for affordable housing would help developers leverage funds at a lower cost.

Reddy, however, said regulatory issues related to acquiring no-objection certificates (NOCs) and environmental certificates, and absence of single window system were impacting the developer community at large.

"To plug the shortfall of 80 million homes in the country regulatory issues have to be simplified as more and more developers were seeing themselves at a disadvantage to build homes for economically weaker sections," said Reddy.

Is it right time to take a home loan and a property?

Is it right time to take a home loan and a property?

New Delhi: Because of the on-going economic uncertainties, many aspiring home owners in Pune are still hesitant about taking a home loan and buying a residence. One of the questions that people, who seek to make this beautiful city their permanent home, ask is does it makes more sense to rent now and await a price correction.

For those who are thinking of renting a home in Pune, there are many aspects to consider. In the first place, the affordability of both rental and purchased property is highly location and project specific. To illustrate – someone in Pune who can afford to buy a home in Undri may not even be able to afford the rentals at Boat Club Road, Koregaon Park or Kalyaninagar.

Secondly, whether it makes more sense to rent rather than buy a property would also depend on one's future plans in a particular locality. Does one wish to settle down there, or is also open to other areas? It definitely makes sense to rent a home while someone is deciding upon a particular locality.

If an individual is certain of a locality in Pune and is committed to settling down there, the right time to buy a home is now. There are many projects available in the excellent new residential areas that have come up in Pune, and prices are still competitive. There will not be a correction in real estate prices in Pune, as demand for a movement of residential properties in the city is healthy.

The wait-and-watch policy is only valid if there are informed reasons for anticipating a correction in a certain locality. On the whole, property rates in Pune will either remain stable or appreciate, depending on the area. Also, there are no prospects of home loan interest rates rationalizing over the mid-term, and economic indicators suggest that inflation will continue to drive up costs.

Given that it is the right time to avail of a home loan and purchase a property in Pune, one still needs to consider the financial implications. As a thumb rule, an individual's home loan EMI should not exceed a rational percentage of his or her net monthly disposable income. Generally, EMIs can amount to 50 per cent of monthly income.

However, home loans are not the only cause of debt in the contemporary context. People take out personal loans and have pre-existing debts, too. In other words, even a 'fair' EMI percentage could prove unaffordable. The 'ideal' EMI component can only be calculated vis-à-vis a debt-free person's salary. This would be between Rs. 1000-1200 per lakh.

People availing of home loans sometimes forget that they are under legal obligation to repay. There are numerous cases where borrowers have neglected to undertake a due diligence with regards to their financial capabilities and the suitability of the loan of which they have availed. As a result, they find themselves in debt traps and sometimes default on their repayments. Borrowers should stretch themselves only to the extent that they realistically foresee their financial position improving in a given time frame.

No home loan strategy should ever be based on anticipated financial windfalls as a means to pay off the loan. It should be based on realistic factors such as reasonable salary hikes and maturing of insurance policies and investments. If one anticipates a salary hike, even if this amounts to only a certain annual increase, one can consider a 'step-up' option for the existing home loan. Here, the borrower pays a lower EMI initially and steps up the repayment of the home loan in proportion to the assumed percentage increase in income.

(Kishore Pate is CMD of Amit Enterprises Housing Ltd.)

How to build new cities

http://indianexpress.com/article/opinion/columns/how-to-build-new-cities/99/

How to build new cities
Resources are not the problem. We need to change controlling mindsets.

India’s rapidly urbanising population needs space to live in, and providing that space in the form of new cities is easily within reach, provided we change our mindsets. No fresh resources are needed other than what is available within India’s Plan budget. But in order to see those resources, we should desire what Harry Potter figured out in the Room of Requirement — the object alone, and not how to do it or what can be done with it. It is the desire to control all processes and be the prime mover that renders us unable to see what should otherwise be evident. Let’s see what it would take to create 200 new cities over the next five years. Four cities in the periphery of every large one, only at a distance of, say, 50 km, so that people need not live in Delhi, Mumbai, Pune, Chennai or Hyderabad; they can merely commute and still lead a life of dignity and better in quality. It would take an average investment of Rs 2,000 crore per new city, or say Rs 400 crore every year for five years. The total bill comes to about Rs 80,000 crore per year for 200 cities.

How would we acquire the land, given its astronomical costs? You would not acquire any land at all, but merely propose a business model in which every group of landholders able to provide 500 hectares of land would be given 50 per cent equity in the venture that is a new city. The other 50 per cent would belong to the government. That way, the farmer would get a real share of the return on investment and a steady yearly income. Once it is clear to the farmer that the government is not planning to take away his land at rock-bottom prices to gift it to a real estate major for a commission, there would be a queue of farmers lining up, asking the government to develop their spaces into a liveable city. This is the kind of model used by Magarpatta City, a township next to Pune, spread over 430 acres and owned by 120 farmers, each a shareholder in proportion to his landholding. In Magarpatta City, farmers came together on their own and did everything by themselves. With some help from the government, the experiment could be widely replicated. The rub is that there is no agency that would benefit from such a proposition: only the people. Perhaps this is why no one has so far proposed what should be otherwise evident.

The next question is where the Rs 80,000 crore would come from. It would come from two sources. The first is the cost of food security for the nation and the second is the MGNREGA. Far be it from us to suggest that India does not need to feed its hungry or give them employment. It certainly does. If not for moral or ethical reasons, then for the reason that hungry and illiterate people can neither participate in nor contribute to a growing economy. But similar objectives can be achieved for one third their present cost, provided we scale down our desires somewhat and abandon age-old shibboleths. The basic proposition is that subsidies be limited to BPL families and small and marginal farmers. Here again, we repeat Harry Potter’s exercise. If we were to give the approximately six-seven crore BPL families an annual subsidy of Rs 5,000 to buy food, the bill would still be a third of the current cost of food security. What’s the balance being used for? To support organisations like the Food Corporation of India (FCI) and its operating costs.

The food subsidy bill is the operational deficit of the FCI, or the amount spent by it on market operations and buffer stocking over and above its sales realisation. This bill in the last budget was around Rs 90,000 crore. These operations serve dual objectives: to provide market support to farmers and also to subsidise consumers through the present public distribution system. If we were to provide cash subsidies for food to all BPL families, a similar objective could be achieved at Rs 35,000 crore, and if we were to further provide cash subsidies to all small farmers — even of Rs 2,000 per tonne for up to 30 million tonnes per annum as support against low market prices, it would take another Rs 6,000 crore. What you would not get would be the huge buffer stock India has been building for the last so many years.

This buffer stock, as also the FCI, is simply a relic of a time when the fear of famine dominated our mindset. The memory of PL 480 is bitter indeed, but surely we are long past that barrier now. Our cash reserves are no longer rock bottom. If needed, we can still engage in market operations to provide food. But leaving market operations to private traders does not mean abandoning all interest in the food market.

In return for dismantling the FCI, what the government would need to do is bring about transparency in food pricing and set about eliminating the hidden costs in food prices. The way is not difficult: set up internet-enabled markets in all cities for foodgrain and for fruits and vegetables, remove inter-state restrictions on movement of farm produce, impose checks on hoarding, abolish the agricultural produce market committees that function in the interests of traders and not farmers, and keep detailed records of transactions and markets. Removing all these hidden costs would bring down food prices far more effectively than any FCI or food security bill. These are the tasks the government seems unwilling to do. Surely, it is the government’s job to keep detailed records, conduct market regulation, pre-empt artificial scarcities and remove restrictions rather than be the prime mover.

As far as the MGNREGA is concerned, the recipe is even simpler. The scheme should be restricted to only the poorest districts. That’s the only way one can prevent it from interfering with the farm economy. A recent study shows that while Bihar, Uttar Pradesh, Madhya Pradesh and West Bengal — which account for 59 per cent of the rural BPL population — accounted for only 34 per cent of total employment generated by the scheme. Andhra Pradesh and Tamil Nadu, which account for only 8 per cent of the rural BPL population, provided 23 per cent of employment generated. Such anomalies can be sorted out only by restricting the MGNREGA to districts where it’s really needed. This would halve the MGNREGA bill of Rs 33,000 crore as per the last budget and free up scarce resources.

Doing these is not so difficult. This is far more a question of mindset than anything else. The great desire to control all decisions and the sneaking desire to make a private profit are the only obstacles that prevent us from building new cities, from making the investment in infrastructure that India really needs.
Views are personal

Brand vs budget: What is important while buying property?

http://www.moneycontrol.com/news/real-estate/brand-vs-budget-what-is-important-while-buying-property_1042959.html?page=1

Brand vs budget: What is important while buying property?

Arvind Jain
Pride Group

It is often assumed that Indian property buyers are more focused on budget than brand value. This is a glaring miscomprehension of the ground realities - in fact, few consumer classes are as attuned to the value of a brand than Indian homebuyers. Moreover, developers have been responding to this trend by making best practices in their offerings as well as business operations as an integral part of their manifesto.

In most Indian cities, reputed developers have maintained consistency in these aspects and are even raising the bar on best practices in construction design, quality and business transparency. This focus is a natural consequence of the need to remain relevant in a highly competitive market. Even in smaller cities such as Pune, quality developers are known for the higher grade of their deliverables on the market. This explains why certain brands command a greater degree of trust among consumers than others.

The fact is that real estate as a business, from construction to marketing of the end product, is one of the strongest contributors to the country's GDP. Real estate fulfills a very necessary need, as is evidenced by the unrelenting demand for homes all across the country.

Brand loyalty is certainly not missing in Indian realty. This is amply evidenced by the fact that certain brands command instant attention while others do not even register on buyers' radars unless questionable marketing ploys such as marked-down rates in exchange for inferior quality and location come into play. In India, home buyers are very aware of the fact that some developers can be expected to deliver on their promises, while others represent a potentially costly gamble. This is also why the more reputed developers have no problems with obtaining domestic as well as international institutional financing for their projects.

Nevertheless, the image that has been created about the real estate sector in general is a persistent one. When it comes to changing public perception, the primary instrument of change will always be the media. Unfortunately, the Indian media has made it its business to portray the entire real estate domain in a negative and mercenary light.

Indian real estate is becoming a force that even global players are beginning to take very seriously. This change will become more pronounced as more and more serious players come to the fore-front of the sector. We are already witnessing a process of consolidation wherein smaller players are merging with or selling their stakes to bigger names, since these banners of repute are able to sustain their businesses as a result of their larger market share, higher credibility quotients and their superior funding options.

Not surprisingly, many people continue choosing real estate as a career because the business is based on the strongest possible fundamentals. With the rapidly improving transparency norms and considerable success of reputed developers despite the challenging economic environment, it makes a lot of sense for qualified people to choose top-rated real estate companies as their career partners and be part of the great Indian real estate movement.

Pune real estate's hottest growth corridor

http://www.moneycontrol.com/news/real-estate/pune-real-estates-hottest-growth-corridor_1036478.html

Pune real estate's hottest growth corridor

Anil Pharande
Pharande Spaces

The Pune residential real estate boom, initially kick-started by the IT/ITeS industry, has brought about a lot of unregulated development. While property prices in Pune rose unrealistically, the city’s traditional ease of living and pleasant climate, which were previously its USPs, suffered. Hills and trees have been razed to accommodate the rapidly expanding concrete jungle that all but defines central Pune today. The town planning commission found itself impotent in the face of the development mania, which soon transcended all reasonable, sustainable boundaries.
Real Estate Woes In Central Pune


In Pune, infrastructure challenges have been increasing because of the ever-increasing population. This has also put escalating pressure on available land, resulting in the forced extension of the city limits.

The pattern of development has been decidedly mercenary and unplanned, with the only criteria being accessibility to existing and upcoming IT hubs. While the rise of Hinjewadi created increasing demand for homes in its immediate vicinity, places like Aundh soon witnessed a slew of projects by property developers. Similarly, property prices in Baner and Wakad rose so steeply that they finally corrected.
New Focus On Pimpri Chinchwad Municipal Corporation (PCMC)

As things stand now, central Pune no longer has an iota of its previous quality and ambience in residential property offerings. It is therefore not surprising that homebuyers are beginning to focus on the Pimpri-Chinchwad Municipal Corporation. This area has, in fact, emerged as the last outpost Pune’s previous residential property comfort levels.

The Pimpri Chinchwad Municipal Corporation first came into the limelight as an industrial area. However, it also has an advantage that central Pune does not – planned development. The growth of the real estate sector in the Pimpri Chinchwad Municipal Corporation is closely regulated by the PCNTDA, which works together with the PCMC to ensure planned and realistic growth.

Central Pune continues to suffer from pollution, depleting greenery, traffic jams, water and power scarcity, lack of proper infrastructure and unrealistic residential property rates. Meanwhile, Pradhikaran (the location that defines the PCNTDA) has been benefiting from sensible real estate development.

If one studies the demographical development of Pune real estate growth, it is evident that Pradhikaran is precisely where the city’s growth is headed in the North/North-Western direction. This is extremely significant in terms of long-term residential property investment.
The Importance Of Pradhikaran

In years gone by, the PCNTDA began to acquire land in the PCMC area so that planned development could take place in the future. This planning included the allocation of specific areas for industrial activity, residential property development, public parks, unobstructed spaces, shopping centres, office buildings, roads and utilities.

Water supply to all sectors was ensured by the construction of several mammoth water tanks, each with capacities of several million litres, before development was permitted in each sector. Once this was done, the PCNTDA made the developed land parcels available to property developers.

The PCMC master plan also provides for generous road widths, the likes of which are impossible elsewhere in Pune. This goes a long way in preserving one of Pradhikaran’s natural splendour and hygiene.


Because of these factors, and also because of the growth in the PCMC industrial belt, the last two years have witnessed a huge increase in demand for residential property in the Pradhikaran area.


The fact that a number of large international companies are operating in nearby Chakan has, in fact, been a primary criterion for the area’s development profile. These companies regularly deliver thousands of jobs at all levels, which has had a telling effect on Pradhikaran’s general economic status. Specifically, there has been a huge surge in demand for residential property there.

Pradhikaran’s expansion, which has been inspired by the Chandigarh model of controlled development, began with a few hundred acres. Today, the area speaks for about 7000 acres. Pradhikaran is continually seeing infrastructural enhancements on all fronts – including roads, water and electricity supply and digital connectivity.

Pradhikaran now boasts of massive integrated township projects that offer all the hallmarks of ambient, sustainable living. Apart from the high lifestyle quotient, the investment potential of these townships benefits from a magic mix of real estate market drivers. The presence of Tata Motors , Talawade, Hinjewadi, Chakan and the Pimpri-Chinchwad industrial belt add to the value of these townships, while the Mumbai-Pune highway and Expressway make it advantageously accessible to the financial capital of Mumbai

When and how to buy your dream home

http://economictimes.indiatimes.com/markets/real-estate/realty-trends/when-and-how-to-buy-your-dream-home/articleshow/27011697.cms

When and how to buy your dream home
By ET Bureau | 9 Dec, 2013, 08.00AM IST

Buying a property involves a lot of subjectivity and is not just a factor of the property’s price or the interest rate on the home loan. Buyers are faced with several dilemmas when they purchase a house. Here are the answers to some of the key doubts:

Real estate, though a mainstream investment and probably a part of every financial portfolio, is also unique. It is the single largest financial commitment that most people make in their lifetimes. Buying a property also involves a lot of subjectivity and is not just a factor of the property's price or the interest rate on the home loan. Here are some questions you are likely to face in your quest for a good property:

Rent Or Buy?

Becoming a house owner means not having to deal with pushy landlords, poor maintenance and annual rental hikes. Plus, there's the feeling of having fulfilled one of life's most important financial goals. But owning a house comes with its own worries: you get tied to a location and moving becomes difficult; you get tied to an EMI; and selling the house is not easy in case you need cash at short notice. While paying rent may look like throwing money down a sink hole, it does offer you freedom from some of these worries.

Should You Invest?

If you are looking at a property purely as an investment, the current real estate market also becomes a factor in your decision. That will determine when you recover your investment, and when you begin to earn profits on it. Rental income is an important lure. Most people think it will help them pay the EMI. While that may be partly true in some cases, the equation changes if you have availed of a home loan to invest in a property.

New Or Resale?

The biggest benefit of buying in the resale market is that the construction is almost complete. This can be a big relief at a time when most projects are getting delayed. Also, not all resale properties in the market are old ones; most have probably never been lived in.
In some cases, such as properties that were lapped up by investors at the pre-launch stage, the price may be lower than the builder's tag. However, in the resale market, the down payment may be higher. The seller may also ask for a portion of the price to be paid in cash, which means that you will be able to take a smaller home loan. The home work and paperwork required in case of a resale project may also be more.

Hire A Broker?

If you do decide to buy a house, you will have to negotiate for discounts, choose between payment plans and also between locations. Will you need the help of a broker or a lawyer? In most cases, with a bit of research and running around, you can take the decisions on your own. But if you do not have the time, hiring these specialists may not be a bad idea.

Renovate Or Relocate?

After living in their houses for some time, homeowners often discover that they need more space. Migrating to a new location may not always be a costeffective option. In most cases, you may have to sacrifice moving from a centrally located area to the suburbs. Remodelling can sometimes help expand your current house. The decision to move or modify is a critical one, because a misstep could cost you a significant sum of money and a lot of time.

State Government Comes Up With a New Cluster Redevelopment Policy in Mumbai

http://www.bharatestates.com/blog/27380-state-government-comes-up-with-a-new-cluster-redevelopment-policy-in-mumbai/

State Government Comes Up With a New Cluster Redevelopment Policy in Mumbai

The government which failed to cut back the unauthorized constructions has decided to come up with new cluster redevelopment policy for the residents of the unauthorized flats and occupants of the illegal shops in Mumbai. These set of people will now be legally rehabilitated as a part of this new policy.

According to the sources, the state government will be offering rehabilitation space of around 250 sq ft to 700 sq ft area to all these unauthorized occupants. However, the cost of construction has to be borne by the dwellers and no incentives will be given to the developer for rehabilitating them.

The government had launched a similar redevelopment policy in 2009 but there were not much takers at that time hence the government has decided to come up with a fresh policy now which would replace the earlier. The sources further added that the urban development department has sent the new policy plan to the Chief Minister for the approval. The Chief Minister would very soon be sending the approval.

If the cluster rehabilitation is restricted to one acre then the incentives among the residents is rehab flat of around 323 sq ft or 30 sq m. The incentives may go up by 10 to 15% or even by 25% depending upon the plot size, if it is a mega cluster. The government is also planning to relax condition of the property tenure of the redevelopment to 70% from 100%. 70% of the occupants may have to give the consent.

As BMC is the planning authority, it will draw the limitations of each cluster to ensure that the city gets its infrastructure and public amenities. After the approval of the Mumbai plan, the government will be coming up with a similar policy in Thane to curb the illegal cluster growth.

If you enjoyed this article, Get email updates (It’s Free) Updated On Nov 26 2013, Posted by divya , Listed in Realty News

The harsh realty of regulation - The Hindu Business Line

http://m.thehindubusinessline.com/opinion/the-harsh-realty-of-regulation/article5405517.ece/

approval process

Granting infrastructure status to the real estate sector will help it get off the ground.

In recent times, the clamour to grant infrastructure status to the real estate sector has been on the rise. Once the government accords industry or infrastructure status to the sector, it will lead to a simplification of procedures and speedier approvals for projects.

, A developer of a project is required to comply with a long list of regulations. These include getting approval of development plans and building plans, and ensuring compliance with fire, pollution control, electricity, environment, water and so on.

As per World Bank’s statistics on Dealing with Construction Permits, a developer in India has to procure 34 different approvals before a residential project can get off the ground. This is a massive procedural burden when compared with developed economies, where not more than 15-16 approvals are needed. In fact, it is high even by emerging markets standards — in Brazil it only takes 17 permits, in South Africa 13 and in China 28. There is a need to define at what stage of approval the developer can start marketing his project to consumers.

As per CREDAI-Jones Lang Lasalle Real Estate Transparency Survey 2011, getting regulatory approval for the construction process takes two to two-and-a-half years in India. The financing cost increases as well — and is passed on to the buyer.

Fast approval of all such clearances would become a distinct possibility if the sector is granted industry status. It would ensure that projects can get a single-window clearance for regulatory requirements instead of getting them independently from various agencies, wasting time. Industry status would also lead to relaxation of lending norms to the sector.

Access to capital is the biggest need for many developers today as banks are reluctant to offer a credit line to many projects currently under development. Such constraints force developers to borrow from non-banking institutions at exorbitant rates of interest. It is not uncommon for builders to borrow at 18-24 per cent.

This aggravates their cash flow and makes it onerous for them to service those debts. Industry status will facilitate real estate loans at a lower rate, boosting the confidence of the sector.

Beneficial effects

Given the contribution of the real estate sector to the health of the overall economy, the demand for grant of industry status is justified. The industry is known to contribute approximately 6 per cent to our GDP and is known to be the next biggest employer after agriculture. A host of ancillary industries such as steel, cement, paint, brick, building materials, consumer durables and so on are known to be dependent on it.

A study by credit rating agency ICRA shows that the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the Indian economy.

A unit increase in expenditure in the real estate sector can generate a fivefold increase in income.

In view of the contribution of the real estate sector, the sooner it is granted industry status the better it will be for the health of our economy.

The author is Vice-Chairman, Lotus Greens Developers.

Will Metro Rail bring property prices down in Pune?

http://content.magicbricks.com/industry-news/pune-real-estate-news-industry-news/will-metro-rail-get-more-fsi-to-pune/60306.html?fromSite=toi&utm_source=toi&utm_medium=referral&utm_campaign=toi-mb-whitelabel

Will Metro Rail bring property prices down in Pune?

Pune

If you are looking to buy an under-construction property in Kalyani Nagar, Pimpri, Chichwad, Vanaz or Swargate, you may not get many options in the near future as the number of new projects is likely to come down and the current projects may be delayed. Why? Real estate developers in Pune are waiting for the new Floor Space Index (FSI) norms under the new Pune Municipal Corporation (PMC) Development Plan, which is under the pipeline.

The provisions for additional FSI may brings property prices a bit down as developers will be able to construct more on the land available to them.

Why Pimpri, Chinchwad, Vanaz and Swargate? These are the areas proposed to be covered under the first phase of Metro Rail. “The areas in localities which fall around the Metro Rail line are likely to get more FSI,” says Abhijit Pardeshi of Samriddhi Estates.

This expectation is backed by reason and logic. Cities such as Noida and Gurgaon, which have the Metro Rail up and running, already have provisions for extra FSI around the localities around the line.

View Larger Map

For that matter, the phase I of the Metro Project would cover Ramwadi, Kalyani Nagar, Yerwada, Bund Garden, Ruby Hall, Pune Station, Poolgate, Mangalwar, Peth, Civil Court, Deccan Gymkhana, Nal Stop, Ideal Colony, Anand Nagar and Vanaz.

In its recent report to the Maharashtra government, the Delhi Metro Rail Corporation (DMRC) stated that an additional FSI of 4 shall be provided for about 10.4 hectare of land around the proposed Metro Rail Stations in Pune. The draft Development Plan of the PMC also looks for additional FSI around every metro station.

However, the proposal is under consideration as the fractions of the government believe that it would result in population overload in select areas and will thus increase pressure on infrastructure and other civic amenities.

According to a report from Jones Lang LaSalle, the State government has instructed the PMC to draw up a plan for extending the Pune Metro link to Rajiv Gandhi Infotech Park (RGIP) at Hinjewadi.

Vikram Jethwani, Magicbricks.com Bureau

Vikram is an integrated communications professional with diverse experience in journalism, research and analysis. His focus areas include real estate, infrastructure and urban management.

http://maharashtratimes.indiatimes.com/lifestyle/property/home-at-pune/articleshow/26597868.cms

पुण्यात घरांचे अनेक पर्याय-प्रॉपर्टी-लाइफस्टाइल-Maharashtra Times

गेल्या काही वर्षांत पुण्याचा विस्तार मोठ्या प्रमाणात झाला असून, वाघोली, तळेगाव, कामशेत, खेड-शिवापूर, किरकटवाडी, उरळीकांचन, पिरंगुट आदी ठिकाणी नवे प्रोजेक्ट सुरू आहेत. या ठिकाणी घरांचे भाव तुलनेने कमी आहेत. त्यामुळे बजेट हाउसिंगसाठी या ठिकाणचा विचार करता येऊ शकतो.

दसरा-दिवाळी होऊन गेली असली, तरी नव्या वर्षाचे स्वागत करण्यासाठी सर्वजण सज्ज होत आहे. पुढील वर्षी नवे काय करायचे, अशा चर्चा सुरू होऊ लागल्या आहेत. काही जणे नवा संकल्प करतात, तर काही जण खेदीच्या माध्यमातून आनंद लुटतात. ही खरेदी मग, एखादे गॅजेट्, कारची असू शकते किंवा घराची. गेल्या दोन वर्षांत स्थावर मालमत्ता क्षेत्रात परिस्थिती बदलली आहे. पूर्वी स्थावर मालमत्ता ही केवळ निवाऱ्याची गरज भागविणारी गोष्ट म्हणून त्याकडे पाहिले जात होते. अजूनही अनेकजण पहिले घर घेण्यासाठी आपल्या आयुष्याची कमाई घालवितात.

पूर्वी घरासाठी कर्ज घेणे ही अवघड बाब होती. आता नसली, तरी अनेक कागदपत्रे, त्यासाठी आकारले जाणारे शुल्क यामुळे घर खरेदी करणाऱ्या व्यक्तीचा जीव मेटाकुटीला येतो. मात्र, कर्ज मिळल्यामुळे स्वप्नातील महल प्रत्यक्षात साकार होणार असल्याने तो हे सर्व सहन करतो. ग्राहकांना आकर्षित करण्यासाठी बिल्डरांनी अनेक गृहप्रकल्प योजना सादर केल्या आहेत. रास्त दरातील घरे, मिड हाउसिंग, अल्ट्रा प्रीमियम, प्रीमियम, लक्झरी प्रोजेक्ट, एनए प्लॉट, फार्म हाउस प्लॉट आदी योजनांचा समावेश आहे.

नवे उद्योग येत असल्याने पुण्याच्या कक्षा रूंदावत आहेत; तसेच मुंबई-बेगळुरू औद्योगिक क्षेत्रामुळे सातारा, शिरवळ, खेड-शिवापूर, नसरापूर आदी ठिकाणी विकास होण्यास सुरुवात झाली आहे. सिंहगड रस्त्यावरील काही भाग पालिका हद्दीतील नाही; तसेच आंबेगावचा काहीच भाव पालिकेत आहे. त्यामुळे पालिका हद्दीत घरांचे भाव काहीसे चढे आहेत. आज ना उद्या हे भाग पालिका हद्दीत येण्याची शक्यता आहे. त्यामुळे भविष्यातील विचार करता या ठिकाणी सुरू असलेल्या आणि लाँच होत असलेल्या रेसिडेंशिअल प्रोजेक्टमध्ये फ्लॅट बुक करण्याच्या संधीचा विचार करायला हरकत नाही. विस्तार असलेल्या पुण्याचा विचार केल्यास दक्षिण बाजूस आंबेगाव, नऱ्हे, धायरी, किरकटवाडी आदी ठिकाणी मोठ्या प्रमाणात बांधकाम सुरू आहे. ही ठिकाणे रस्त्यांनी सर्व ठिकाणी जोडलेली आहे. शाळा, कॉलेज, मॉल, मल्टिप्लेक्स, हॉस्पिटल आदी सुविधा या भागात गेल्या दहा वर्षांत उभ्या राहिल्या आहे. घर खरेदीसाठी एखाद्या भागाची निवड करताना तेथील दर, सुविधा याच गोष्टी प्रामुख्याने विचारात घेण्यासारख्या असतात. या ठिकाणचे दरही अन्य भागाच्या तुलेनत रास्त आहेत. ३५ -३८ लाख रुपयांपर्यंत या ठिकाणी एक बीएचके, ४५-७० लाख रुपयांदरम्यान (काही अपवाद) टू बीएचके उपलब्ध आहे. रो-हाउस, बंगला घेण्याचे स्वप्न या भागाचा विचार केल्यास पूर्ण होऊ शकते. अनेक बिल्डरकडून या ठिकाणी रो-हाउस, बंगल्याच्या स्कीमही बांधल्या जात आहेत. साधे घर ते आधुनिक अॅमेनिटीज असणारा प्रोजेक्ट, एक बिल्डिंगची सोसायटी ते मोठा प्रोजेक्ट, तर टाउनशिप या ठिकाणी आहेत. त्यामुळे प्रत्येक व्यक्ती आपल्या क्षमतेनुसार घराचा प्रकार आणि कोणत्या प्रोजेक्ट प्रकारात घर घ्यायचे याचा निर्णय घेऊ शकते.

कोथरूडचे अॅनेक्स म्हणून उदयास येत असलेल्या उत्तमनगरचे कोथरूड असेच मार्केटिंग सुरू आहे. कोथरूड बजेट बाहेर असणाऱ्यांना या अॅनेक्स कोथरूडचा विचार करून कोथरूड भागात घर घेण्याचे स्वप्न साकार करता येऊ शकते.

हिंजवडीच्या दिशने विचार केल्यास बाणेर, बालेवाडी, औंध, बावधन, सूस या ठिकाणी प्रोजेक्ट सुरू आहेत. आयटी हब या ठिकाणजवळ असल्याने या ठिकाणी घर घेण्यास प्रीमिअम मोजण्याची तयारी असणाऱ्यांनी या भागाचा विचार करावा. कोंढवा, उंड्री हा पुण्याच्या पूर्वेकडील भागही गेल्या दहा वर्षांपासून वाढण्यास सुरूवात झाली आहे. सिंहगड रोडच्या तुलनेक विकास कमी असला, तरी लो-बजेट असणाऱ्यांसाठी हा भाग एक चांगला पर्याय ठरू शकतो. या भागात काही ठिकाणी हायएंड, तर काही ठिकाणी मिड हाउसिंग प्रकारातील प्रोजेक्ट सुरू आहेत.

सिंहगड रोडपेक्षा दर थोडे कमी आहेत. त्यामुळे थोडीशी अडचण सहन करण्याची तयारी असल्यास मोठ्या घराचे म्हणजे टू बीएचकेचे स्वप्न पूर्ण होऊ शकते.

नगर रस्त्यावर वाघोलीपर्यंत बांधकाम सुरू आहेत. काही भागात हायएंड प्रोजेक्ट सुरू आहेत; तसेच मिड हाउसिंग आणि रास्त दरातील घरांचे प्रोजेक्टही या भागात सुरू आहेत. त्यामुळे प्रत्येकाला बजेटनुसार उपलब्ध आहेत.

रिअल इस्टेटमध्ये गुंतवणुकीचा विचार करीत असलेल्यांसाठी पिरंगुट, तळेगाव दाभाडे, कामशेत, चाकण, भोसरी, रहाटणी आदी भागांचा विचार करायला हरकत नाही. विशेषतः तळेगाव आणि कामशेत ही ठिकाणे रस्ते आणि लोहमार्ग यांनी जोडलेली आहेत. या ठिकाणी राहणारी अनेक मंडळी कामानिमित्त लोकलद्वारे पुण्यात ये-जा करतात. या ठिकामी दरही सध्या तुलनेने कमी आहेत. त्यामुळे आयुष्यातील स्वतःचे पहिले घर घेण्याचे स्वप्न कमी बजेट असणाऱ्यांचे पूर्ण होऊ शकते. तळेगावमध्ये मोठ्या प्रमाण इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकणचा विकास होत आहे. भविष्याचा विचार करता सध्या घेऊन ठेवलेल्या घरावर चांगले रिटर्न मिळू शकतात. त्यामुळे रिअल इस्टेटमधील गुंतवणुकीचे हे एक डेस्टिनेश म्हणायला हरकत नाही. चाकण या ठिकाणीही इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकाणीही घर घेऊन रिअल इस्टेटमधील गुंतवणुकीचे स्वप्न साकार होऊ शकते. प्रत्येकाल आपल्या बजेटनुसार राहण्यासाठी किंवा गुंतवणूक करण्यासाठी घराचे पर्याय उपलब्ध आहेत.

Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India

http://thepointdaily.com/morgan-stanley-nysems-real-estate-investment-may-put-money-in-india/126372/

 Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India
Posted on February 12th

Morgan Stanley (NYSE:MS) Real Estate Investing, is thinking on the lines of investing in a project aimed at building 1.6 million square feet of office space in Bandra Kurla Complex, which is a locality in Mumbai, two unidentified sources familiar with the situation briefed.

The Mumbai based company, Wadhwa Group, initiated work on the project. The project is going to build two towers that will be devoted to offices and it is expected to be completed by the end of 2014.

The deal is believed to be in the early stages right now. It will be the first investment by MSREI in an office development project in India, according to an anonymous source. Previously, the company put $850 million in Indian real estate that mostly included housing projects. The amount of $100 million to $125 million was diverted to Mumbai-based Sheth Developers. This information is obtained from a report from Reuters, which was publicized during December 2011.

Currently, MSREI and the Wadhwa Group are not willing to offer any comment on the topic, while in the light of information gathered by research firm Venture Intelligence, a majority of private investors are not willing to put their money in the Real Estate industry of India. The investment level in the industry remained at $1.95 billion in 2012, declining from 2007’s $9.8 billion.

In the last trading session, Morgan Stanley (NYSE:MS) stock traded at the beginning with a price of $23.21 and throughout the trading session climbed to a high of $23.47 and later, when day-trade ended, the stock finally slipped -0.17% to $23.28.

MS current year earnings per share experienced a decline of -103.32%, while its current quarter performance remained +41.26%. MS has 1.98 billion outstanding shares, among them 1.55 billion shares have been floated in the market exchange. MS stock institutional ownership remained 60.23% while insider ownership was 0.20%.

The stock is ahead of its 52week low +91.59% and is lagging behind its 52 week high price -1.94%. The Company’s beta coefficient was 1.60. Beta factor measures the amount of market risk associated with market trade.

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Real estate sector seeks lower finance costs, faster clearances

http://m.timesofindia.com/city/pune/Real-estate-sector-seeks-lower-finance-costs-faster-clearances/articleshow/18425646.cms

Real estate sector seeks lower finance costs, faster clearances - The Times of India on Mobile

PUNE: The country's real estate players are hoping that the finance minister's budget provisions, to be announced on February 28, will bring down the costs of finance for the construction sector, which they insist will play a major role in offering lower rates for their product.

Also on the real estate developers' wishlist is a sustained structure of governance for the sector and introduction of methods to reduce the time taken to obtain the permissions and clearances for a project. A delay in the completion of a project, mainly due to delayed clearances, always leads to cost escalation and higher prices for consumers, they argue.

Lalit Kumar Jain, national president of the Confederation of Real Estate Developers' Associations of India (Credai), said the finance minister should allow tax exemption for inputs used in construction of small houses, of under 60 sq m carpet area. Special housing zones on the lines of Special Economic Zones could also be created, with tax exemptions for constructing 45 sq m houses for low income groups and 30 sq m houses for the economically weaker sections, Jain said.

He said, "Widespread tax incentives can be leveraged to make the real estate sector the new growth engine of the economy...It is high time that the government took a pragmatic and practical look at the real estate sector and took steps that help the industry in particular and the economy in general." Interest rates for housing loans should be cut to 7.5%, he added.

Credai suggested that a Real Estate Investment Trust be formed and called for special rental housing projects under the affordable segment, treating the expenditure as capital investment for long-term capital gains, exemption from income tax, service tax, value added tax and stamp duty for rental housing. Even the rental income from these projects must be exempt from income tax as there are substantial indirect benefits, the apex body has said.

Anuj Puri, chairman and country head for real estate advisory company Jones Lang LaSalle India, said considering that the budget is expected to be a populist one ahead of the 2014 polls, addressing the compromised GDP and skyrocketing inflation must be given the highest priority.

Puri said the budget needs to increase infrastructure spending in urban areas with a view to unlock the value of neglected and hidden land assets in suburban and peripheral districts. This will enable a more holistic growth for the real estate markets in our over-burdened metros and allow the demand for housing to spread over a larger canvas. The increased demand in peripheral locations where infrastructure has made the real estate markets more viable will also help bring down prices in the central areas, he said.

"The country's real estate industry contributes approximately 5% to the GDP. Moreover, the real estate sector has grown significantly over the past decade, with tangible transformation in quality and business standards. However, due to lack of regulations and effective policies, the sector is experiencing many challenges. The budget must consider the fact that the Indian real estate sector generates countless jobs across its various verticals. By granting it industry status, the government would enable the sector to access debt-lending at better interest rates and reduced collateral values," Puri said.

The government should come up with simple and effective polices that will ease real estate development approval procedures. Obtaining the 57-odd permissions to begin construction of a project can take up to two years. During this time, the cost of acquisition or even just holding the land for projects goes up. Lack of single-window clearance mechanisms causes project delays, which prove to be expensive to both developers and end users, Puri added.

The firm's managing director (Pune) Sanjay Bajaj said the budget should provide the real estate sector with elaborate provisions for external commercial borrowings for low-cost housing, tangible tax relief for individuals and greater investment in infrastructure. "An amplification of concessions for low-cost housing loans would have a significant bearing on the Pune real estate market. Unlike Mumbai, budget housing is still a very real concept in this city. Incentivising the development and purchase of affordable housing can make a big difference here," Bajaj said.

Urban planners say CM's nod will benefit Pune

PUNE: Activists and urban planners in the city have said chief minister Prithviraj Chavan's approval of the reservation of biodiversity parks (BDP), would help to preserve the city's environment.

On Saturday, Chavan approved the reservation as recommended by the Jain committee in 12 of the 23 merged villages in the Pune Municipal Corporation (http://timesofindia.indiatimes.com/topic/Pune-Municipal-Corporation)

(PMC). Former mayor and

Rajya Sabha (http://timesofindia.indiatimes.com/topic/Rajya-Sabha) member Vandana Chavan said decision was a "gift to the future generation". She said BDPs would help the city while dealing with long-term environmental issues. "Global issues such as climate change and pollution are showing their impact on environment. It has become more important for us to conserve natural resources in such conditions," she said.

"The approval for the BDP reservation has given me immense joy," urban planner Anita Benninger-Gokhale (http://timesofindia.indiatimes.com/topic/Anita-Benninger-Gokhale) , said. "It was a long wait, but finally a good decision has been made. It is a relief for the citizens of Pune," she said.

Benninger-Gokhale said citizens will now have to fight to save the water bodies and other natural resources in and around the city. Satish Khot (http://timesofindia.indiatimes.com/topic/Satish-Khot)of the Pune National Society for Clean Cities termed the decision a victory of the people. "We citizens have managed to save our hills by winning this drawn out battle," he said.

"The citizens convinced the authorities that the green cover our hills provide is crucial for the survival of Pune as we know it," he said. The PMC had proposed the reservation as part of the development plan (DP) which was sent to the state government for its approval. The 978.54 hectare reservation is spread over seven hills in the 12 villages. This includes 124.45 hectare of government land and 853.09 hectare of privately owned land.

The government had appointed a committee headed by KB Jain dean of the faculty of doctoral studies, Centre for Environmental Planning and Technology, Ahmedabad, to study the proposal.

The main recommendations of the committee were to make the BDP reservations permanent by giving the land owners transfer of development rights (TDR) in lieu of their land. Those who hand over their land in the first year would be given additional TDR. Around 74 hectare land with old constructions would be excluded from the reservation, the press release issued by the state government said.

Budget 2014 wishlist: What India's real estate industry wants

http://mdaily.bhaskar.com/article/top-stories/4444/t/320/MON-budget-2014-wishlist-what-indias-real-estate-industry-wants-4163781-NOR.html

Budget 2014 wishlist: What India's real estate industry wants

By Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India Current Status The GDP for the current financial year is not likely to cross the 5.7-5.9% mark - the predicted 8% in GDP growth is highly unrealistic. We expect the budget to come up with some immediate and effective announcements to remedy the situation. In recent quarters, the Government and the RBI have been unable to curb the inflation to a more comfortable level of between 5-6%. Considering that the upcoming budget is expected to a populist one, given the Union election ahead in 2014, addressing the compromised GDP and skyrocketing inflation must be given highest priority. (Also read: Delhi real estate: NH8, NH24 shine; DLF, Vesta launch new projects) The macro-economic concerns are having a cascading effect on Indian real estate. Here are the considerations that the sector needs from the upcoming budget as well as in terms of overall enablement: Reduce High Cost Of Borrowing: Presently, interest rates charged by the banks to developers and home buyers are at an all-time peak and need to be brought down. A reduction in the base rate (rate below which no banks can lend to the corporates or industries) is necessary to help banks lower their lending rates. (Also read: Pre-budget hopes: 'Raise savings limit under 80C to Rs 3 lakh') The Government should address these concerns in the budget, and this should be followed through by RBI in terms of easing the repo rates and relaxing other policy instruments such as the CRR, SLR, etc. to inject liquidity into the system. This is essential if the Indian economy's key sectors such as manufacturing and real estate are to grow. The regulatory and monetary authorities need to bring down the housing loan rates to provide affordable housing to more cities and towns. The scope of the interest rate subsidy for loans towards affordable housing should be amplified and broadened to include a wider price band of budget housing to benefit home buyers, especially in lower income groups. Make Provisions For Special Residential Zones: The Government could seriously consider enacting provisions for Special Residential Zones (SRZs) to incentivise the growth of housing stock at targeted locations. Increase Infrastructure Allocations: The budget needs to increase infrastructure spending in urban areas with a view to unlocking the value of neglected and hidden land assets in suburban and peripheral districts. This will enable more holistic growth for the real estate markets in our over-burdened metros and allow the demand for housing to spread over a larger canvas. The increased demand in peripheral locations in which infrastructure has made the real estate markets there more viable will also help bring down prices in the central areas. Provide Real Estate With Industry Status: The country’s real estate industry contributes approximately 5% to the GDP. Moreover, the real estate sector has grown significantly over the past decade, with tangible transformation in quality and business standards. However, due to lack of regulations and effective policies, the sector is experiencing many challenges on its growth path. The budget must consider the fact that the Indian real estate sector generates countless jobs across its various verticals. By granting it industry status, the Government would enable the sector to access debt lending at better interest rates and reduced collateral values.

Take Steps To Provide Better Clarity In Land Titles: This is another policy hurdle which needs to be tackled by the Government. Across the country, land needs the benefit of legally documented ownership assigned to the right persons or entities. The lack of clarity on land titles shakes the confidence of investors, and is a serious hindrance to overall growth. The budget should make specific allocations towards regularizing and digitalizing land records. Provide More Adequate Sources Of Finance: Since the sector is not under the umbrella of any specific regulatory authority, financing has been an issue over a number of years of credit slowdown. What is required at the current time is the liberalization of finance for the real estate sector. The budget should enable a broader scope for external commercial borrowings for real estate and provide a general relaxation of financing norms. Take Steps To Moderate Rising Input Costs: The input prices for construction have skyrocketed in recent years, rising by more than 50% in the last two years alone. In addition, builders are faced with the increased costs of external and internal development charges, licenses and charges for change of land use from various departments. These factors have been directly responsible for rising real estate prices. The budget should make provisions for subsidized construction materials for low-to-mid-income housing, and rationalized license fees and other government levies. Unblock The Approvals Pipeline: In this budget, the Government should come up with simple and effective polices that will ease real estate development approval procedures. Obtaining the 57-odd permissions to begin construction of a project can take as much as two years. During this time, the cost of acquisition or even just holding the land for projects rises. Single-window clearances are the need of the hour, since the absence of such mechanisms causes project delays which prove to be expensive to both developers and end users.

Take Steps To Improve Investor Interest: REITs should be implemented so that small investors will get a chance to invest in real estate assets. The enactment of legislation on REITs to provide exit opportunities to real estate investors would be a real step in the right direction. Enact the Real Estate Regulatory Bill: The Government should once and for all finalize and implement the proposed Real Estate Regulatory bill, which is needed to bring rationality back to the sector. This draft bill, which is pending since 2009, aims to create a regulatory authority for the realty sector, ensure sale of immovable properties in an efficient and transparent manner, and to protect consumer interest. One key proposal of this bill is to set up a regulatory authority in each state. The sector looks forward to intentions in this regard finally translating into action. Implement GST: The Government avowed plans to introduce GST sooner rather than later need to be implemented. This will go a long way in streamlining the economy and providing stimulus to GDP growth. (Image: Gangtok at night, Sikkim; Source: Getty Images) Arun Gupta

'Pimpri-Chinchwad an attraction for hotel business'

http://m.economictimes.com/news/emerging-businesses/regional-hubs/west/pimpri-chinchwad-an-attraction-for-hotel-business/articleshow/18196331.cms

'Pimpri-Chinchwad an attraction for hotel business'
26 Jan, 2013, 1547 hrs IST, Vasumita S Adarsh, ET Bureau

With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune.

With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune. In an interview with ET, he talks about how the Pimpri-Chinchwad region is evolving as a hospitality business destination. Edited excerpts:

How was 2012 for the hospitality in Pune, and how does 2013 look like?

2012 was not entirely good for the sector in Pune. While some hotels managed to maintain the growth rate of 2010-11, some witnessed negative fallout of the economic slowdown. No extra inventories happened either.

This year, however, seems to be more buoyant, and Pune is expected grow faster than the country's GDP in hospitality. When the country's GDP was 9 to 10 per cent, Pune region's hospitality sector was growing at 16 to 18 per cent. Now that the GDP is at 5 to 7 per cent, the hospitality sector is expected to grow at 9 to 11 per cent.

From having just three major luxury hotels during the last 10 years, today the hotel segment in both luxury class as well as business class has increased five times or more. From 500 rooms altogether, we now have 2,500 rooms available in the luxury segment alone. There is an excess supply of rooms in the five star and business class segment hotels in the region today. And, in the next three years, this demand-supply scenario may stabilise.

How are tier II regions like Pimpri-Chinchwad coming up? Do you see more hotels coming up here?

The Pimpri-Chinchwad and Chakan region have been a major industrial belt with several foreign companies. A good number of clients work there and stay in hotels in Pune. This will in turn impact city hotels, as clients, who are there in Pune for a longer period of time, may prefer living in Chakan rather than endure the long travel. The city hotels will lose at least 40 to 50 rooms due to this.

On the flip side however, the Pimpri-Chinchwad region lacks any major entertainment centres for a client to unwind. Hence, clients coming in for just a few days may prefer to stay in main Pune. The areas such as Koregaon Park, Nagar Road, etc are the hot spots of the city. The Pimpri-Chinchwad region is yet to develop in terms of having more malls and other quality recreation, for senior employees and expatriates.

What factors will help hospitality sector in Pimpri-Chinchwad to grow?

Pune's western region and regions of Pimpri-Chinchwad, Chakan, Talegaon will see more hotels in the future, though this may happen in a span of the next four to five years.

The Pimpri-Chinchwad area is attracting many investments in the hospitality sector. Besides the Marriott project, there are many investors looking to launch projects in the region, though none have been announced officially yet. The residential area in the region is growing too - another reason for the region to attract investors. Increase in residential projects means an increasing work force settling here. The Eastern part of Pune has seen an oversupply of hotels, with many properties located close to each other.

Foreigners coming to Pune for short and long term work visits are among the leading clients for hotels. How do you see this trend evolving? Owing to expansion of existing companies, as well as new IT and engineering companies setting base in the region, there has been no decrease in the number of foreigners coming to Pune. International travellers are certainly a vital part of the hospitality service, besides domestic clientele.

Earlier the city had altogether three luxury hotels, which meant the hotels dictated the terms. Now with competition increasing and more choices available with a client, hotels have to be clued in to provide the best service at competitive rates.

The government too has to re-look its liquor policy, with the new work cultures emerging in the region. Not everyone works traditional timings anymore, and many clients are working US and UK hours to be in touch with their companies. But government allows liquor only till midnight.

This means we cannot serve liquor to such clients, who may be having a different sleep pattern, and may want to relax post 2 am or 3 am. Earlier such professionals were few, but with the IT culture booming, today the number of such professionals have gone up. The government needs to change its policies accordingly, so that domestic and international clients view Pune favourably.

What are the challenges hospitality sector has to face in the region?

Infrastructure upgradation is among the biggest issues. The current airport is not adequate to serve international travellers, who lose almost an entire day, alighting at Mumbai, and then travelling all the way to Pune. The proposed international airport is still in the planning stage. Similarly, projects that would elevate Pune's status such as the International Convention Centre in Moshi have not taken off either.

The other hurdle is the huge amount of taxes imposed, whether it is on serving imported liquor, taxes on in-house entertainment, or even playing recorded or live music in the hotels. The laws have to become more hotel-friendly. Clients, who come to the city are shocked when the city closes down post midnight, just as they are planning to unwind. Nightclubs and pubs are not necessarily suited to everyone. Providing this service becomes an expensive affair for hotels, because of the huge taxes.

As the city culture evolves, these policies should be revisited and amended. What is required is that the government and the industry in Maharashtra too sit down and discuss these current impediments. This has not yet happened from either side.
vasumita.adarsh@timesgroup.com Arun Gupta

Pirate architects of China copy a building that isn't even finished

Pirate architects of China copy a building that isn't even finished

By Ben Kersey 2 Hours Ago

China isn't afraid to brazenly mimic architecture, but copycats have now turned their attention to buildings that don’t even exist yet. A construction team in Southern China is copying the Wangjing Soho, an office and retail complex designed by London-based architect Zaha Hadid that’s due to be completed in 2014. The designers behind the original project believe that the copycat architects may have based their own version on renders of the original building, but that wouldn't allow them to build an exact replica. Despite the drawbacks of working from a rough 3D model, the Chinese workers are outpacing construction of the original building.

It’s a phenomenon that seems to be pervasive in China, with one Dutch architect dubbing the pirates "Photoshop designers." The would-be builders simply copy and paste buildings into place on PCs, roughly plotting out the future landscape of a city. It’s a crude way of doing things, but the flexibility — combined with China’s cheap labor costs — certainly helps rapid expansion.

http://m.spiegel.de/international/zeitgeist/a-874390.html#spRedirectedFrom=www