Dream of affordable homes gathers dust in Maharashtra

Ihttp://zeenews.india.com/business/realestate/latest-news/dream-of-affordable-homes-gathers-dust-in-maharashtra_46543.html

Dream of affordable homes gathers dust in Maharashtra

Mumbai: An ambitious plan to construct 500,000 affordable homes in Mumbai, Thane and Raigad districts of Maharashtra is gathering dust due to "inaction and policy paralysis" on the part of the state government, a top realtors' body alleged here Wednesday.


The plan, jointly mooted by the Maharashtra Chamber of Housing Industry (MCHI) and the Confederation of Real Estate Developers' Associations of India (CREDAI), was submitted to the state government two years ago to bridge the gap between housing demand and supply and rein in realty prices.

"Even as housing cost is skyrocketing in Mumbai, the plan to construct 500,000 affordable flats as part of the realty industry and state government's initiative, 'Homes For All' gathers dust," MCHI-CREDAI president Paras Gundecha said here.

The realty industry's frustration came on the eve of the 'second anniversary of inaction' of signing the MoU with the state government (April 28, 2010) to find solutions to the burning problems of housing and arrest proliferation of slums in the country's commercial capital.

Realtors demanded a single-window clearance system for all housing proposals so as to expedite the projects.

"All that we wanted was a single-window clearance for all housing proposals to expedite the projects which get bogged down in official delays and red-tapism. All officials agree, but there is no action on this," said Gundecha.

Another office-bearer of the housing body alleged that "not a single file pertaining to building proposals" has moved ahead in the past 18 months or so, and this adds to nearly two years' delays on such projects.

A top government official, however, denied the accusations.
According to Gundecha, "A kind of policy paralysis" has gripped the Mumbai realty sector.
"On one hand, proposals are not being cleared leading to short supply of housing stock, on the other it has become fashionable to blame developers for the increasing cost of property. With barely any new project being cleared, market forces operate to create price imbalances," he said.
On the 'Homes For All' proposals, Gundecha pointed out that the government assured all help including legislative revamp, incentives to developers and authorising a nodal agency for a single-window clearance.

"But not a single paper moved after that, despite the MCHI-CREDAI reminders and meetings at various levels," he lamented.

Consequently, the dream of millions of commonersfor owning an affordable home in Mumbai remained on paper, though Maharashtra could have created history with this unique public-private initiative, he said.
IANS
First Published: Wednesday, April 25, 2012, 19:27

What makes Talegaon so attractive ?

What makes Talegaon so attractive ?

The location of Talegaon in Pune is bang in the middle of the three cities – Mumbai, Nashik and Pune. Talegaon is situated on the Mumbai-Pune highway and enjoys favourable connectivity. As a result,

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many companies have swooped down to invest in Talegaon. Investment by these companies has created a large employment base for the citizens and as a result they have flocked to Talegaon.
The industrial belt of Chakan (Chakan MIDC) and the automobile manufacturing hub are the main drivers of employment in Talegaon.

Some of the opportunities in Talegaon real estate market are created by :

Larsen and Toubro opening its plant
Bajaj and Jindal setting up facilities
General Motors producing the Chevrolet Beat and Spark at Talegaon in Pune

Talegaon is also very favourably placed from the important location of Hinjewadi which happens to be the major IT hub of Pune. The fact that close to 40,000 IT professionals are expected to work in Hinjewadi and that Talegaon is around 30 minutes away from it (approx 20 kms), makes Talegaon a hot destination among IT professionals.

The climate of Pune and Talegaon are ideal for residential housing. Compared to Mumbai which is around 2.5 hours away, Pune boasts of a hill station like climate.

Talegaon’s proximity to Mumbai via the Mumbai-Pune expressway gives Talegaon a major advantage in the Pune real estate market. In fact, the old Mumbai-Pune highway also offers good connectivity to Talegaon. Given this, Mumbaikars come down to Lonavala and Talegaon more often and many have based Talegaon as their weekend homes.

Another thing to note is that not only Mumbaikars but many Puneites are also making Talegaon their weekend destinations leading them to invest in their second homes. The pollution free climate and scant population make it a very attractive getaway. Obviously, this will not be the same forever and it is a matter of few years before Talegaon goes the same way as other parts of Pune have gone – sky rocketing prices and the unavoidable hustle bustle.

The infrastructure of Talegaon is undergoing massive changes. Residential societies are creating demand for basic amenities like schools and hospitals. Over the next few years, the availability of malls, schools and hospitals will increase significantly.

The property rates in Talegaon vary between 2200 psf (per square foot) to 3000 psf. This is on the lowest side in the Pune proprty market. In fact, Chakan also demands the same rate as Talegaon. So does Wagholi.

As far as properties for investment go, you could possibly be spoilt for choice. There are innumerable Pune real estate builders like the Siddhivinayak Group, Disha Direct, Om Developers, Naiknavare and Associates and many more who have thrown their hat in the ring and have launched residential projects. The one you cannot miss is Tata’s La Montana which has a plethora of amenities thrown in.
With so many builders jumping in the fray, you have apartments of all sizes and types available for you – 1BHK, 2 BHK, 3 BHK. Not to mention bungalows, villas and farmhouse plots. It’s all happening in Talegaon.

The residential demand in Talegaon will be on the rise in the future. In the Pune real estate market, Talegaon stands poised to hold its promise of safe returns over an extended period of time.
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What makes Talegaon so attractive ?

The location of Talegaon in Pune is bang in the middle of the three cities – Mumbai, Nashik and Pune. Talegaon is situated on the Mumbai-Pune highway and enjoys favourable connectivity. As a result, many companies have swooped down to invest in Talegaon. Investment by these companies has created a large employment base for the citizens and as a result they have flocked to Talegaon.

The industrial belt of Chakan (Chakan MIDC) and the automobile manufacturing hub are the main drivers of employment in Talegaon.
Some of the opportunities in Talegaon real estate market are created by :
Larsen and Toubro opening its plant
Bajaj and Jindal setting up facilities
General Motors producing the Chevrolet Beat and Spark at Talegaon in Pune
Talegaon is also very favourably placed from the important location of Hinjewadi which happens to be the major IT hub of Pune. The fact that close to 40,000 IT professionals are expected to work in Hinjewadi and that Talegaon is around 30 minutes away from it (approx 20 kms), makes Talegaon a hot destination among IT professionals.

The climate of Pune and Talegaon are ideal for residential housing. Compared to Mumbai which is around 2.5 hours away, Pune boasts of a hill station like climate.

Talegaon’s proximity to Mumbai via the Mumbai-Pune expressway gives Talegaon a major advantage in the Pune real estate market. In fact, the old Mumbai-Pune highway also offers good connectivity to Talegaon. Given this, Mumbaikars come down to Lonavala and Talegaon more often and many have based Talegaon as their weekend homes.

Another thing to note is that not only Mumbaikars but many Puneites are also making Talegaon their weekend destinations leading them to invest in their second homes. The pollution free climate and scant population make it a very attractive getaway. Obviously, this will not be the same forever and it is a matter of few years before Talegaon goes the same way as other parts of Pune have gone – sky rocketing prices and the unavoidable hustle bustle.

The infrastructure of Talegaon is undergoing massive changes. Residential societies are creating demand for basic amenities like schools and hospitals. Over the next few years, the availability of malls, schools and hospitals will increase significantly.

The property rates in Talegaon vary between 2200 psf (per square foot) to 3000 psf. This is on the lowest side in the Pune proprty market. In fact, Chakan also demands the same rate as Talegaon. So does Wagholi.

As far as properties for investment go, you could possibly be spoilt for choice. There are innumerable Pune real estate builders like the Siddhivinayak Group, Disha Direct, Om Developers, Naiknavare and Associates and many more who have thrown their hat in the ring and have launched residential projects. The one you cannot miss is Tata’s La Montana which has a plethora of amenities thrown in.
With so many builders jumping in the fray, you have apartments of all sizes and types available for you – 1BHK, 2 BHK, 3 BHK. Not to mention bungalows, villas and farmhouse plots. It’s all happening in Talegaon.

The residential demand in Talegaon will be on the rise in the future. In the Pune real estate market, Talegaon stands poised to hold its promise of safe returns over an extended period of time.
Path:

Credai fears slew of VAT-related litigation - The Times of India on Mobile

http://m.timesofindia.com/city/pune/Credai-fears-slew-of-VAT-related-litigation/articleshow/17070409.cms


Credai fears slew of VAT-related litigation - The Times of India on Mobile


PUNE: The Confederation of Real

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Estate Developers Association of India (Credai), Pune Metro, said on Friday that the state government's decision to stick to its stand on the Value Added Tax (VAT) on residential properties in the state - sold during the period June 2006 to March 2010 - will lead to multiple legal cases and cause ill-will between the developers and home buyers.


After the Bombay high court declined to interfere with the state's discretion to decide the tax rate October 30 and the state refused to change the rates it had declared earlier, realtors across the state had to rush to pay VAT on October 31.


Satish Magar, president, Credai, Pune Metro, said the developers have begun remitting their VAT liability though some couldn't remit their entire dues before the deadline. "WThe process of paying the tax is on and we have requested the sales tax authorities to condone the delay as their own system could not accept the rush of remittances which kept coming through the night of October 31," he said.


While that issue is solved separately,


Meanwhile, Credai members will have to now recover VAT which they paid on behalf of the apartment owners. Trashing the claims of some consumer organizations that it was not the customer but the developer who was liable to pay VAT, Magar said VAT is an indirect tax and like all indirect taxes the 'dealer' (a developer in this transaction) has to collect it from the customer.


Magar said the assessment of the VAT returns, which the developers have filed, and the recovery of the tax from customers are likely to lead to prolonged litigation. "Rule 58 of the Sales Tax Rules suggests three methods to determine the base value of an apartment for calculation of tax. We have followed the method that causes the lowest burden on a customer, but the sales tax officers may demand tax based on the method that gives the highest amount. This will certainly be subject of appeals and court cases which will take years to reach a solution."


On the other hand, the customers are agitated and apparently in no mood to pay anything as VAT dues, so the developers may have to resort to legal remedies such as civil suits for recovering the tax, Magar pointed out. "The Supreme Court has upheld the state's approach to the issue and the customers will have to ultimately pay up, though considerable delay and bitterness will mark this process," Magar said.


Highlighting the complexity of calculations necessary to arrive at the VAT amount for each apartment, Magar said, "The state has over 10,000 dealers who have to file 26 quarterly returns to fulfill their obligation to pay VAT. This works out to 2,60,000 returns for the sales tax officials to scrutinize. Also, as each apartment is sold at different points in time and at different stages of construction, the base value for working out VAT will be different for every apartment."


Credai had pleaded with the Bombay high court that the state be directed to modify the rate of tax to a flat 1% on the agreement value, which it is charging on transactions done on or after April 1, 2010, anyway. The court asked the state's counsel if this was acceptable and when the state declined the suggestion, dismissed the developers' case.


Magar said Credai would continue to follow up with the state government their request to modify the VAT to a flat 1%.

good City= good transport = good society

What I have always felt is that our job is not just building Building's but building a Society & a Society is build only by our attitude as well actions towards the social cause!

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"??????? ???????? ???????? ?????? ???" ?? ????? ???????????? ?????? ????????? ??????? ?????? ??? ????. ?? ????? ???? ????? ??? ?. ??? ?????? ???????? ????? ???????? ????? ??? ????. ??????? ??????????? ??? ??????????? ????? ?????????? ????? ?? ????? ???? ???? ???? ??? ????. ?. ???? ????????? ??????? ??? ???? ?????????? ?????, ????? ??? ?????????? ??? ?? ??????? ?????? ????. ?.????????? ?????? ??? ???? ???? ?? ??????????? ??????? ???????? ????????? ?????? ???? ??? ?????, ?? ????????? ????????? ???? ??????????? ?? ??? ??????? ????. ?. ????????? ?????? ???????? ???????????????? ?????. ?? ???????? ???????? ????????? ????? ?????? ???? ??? ????, ??? ??????????? ?? ?????????? ???? ???? ????. ?? ???????????? ????????? ?????? ?????? ??????????, ??????? ??? ????????? ??? ????. ?? ????? ??????? ???????? ???????? ????? ?????? ????? ??? ????. ???? ??????? ??? ???????? ?????? ???????? ????????? ????? ??? ????. (???? ?? ?????? ???) ?. ????????? ?????? ???????? ???? ????????????? ?????? ????????? ???????? ????????? ???? ???????? ??????? ?????????? ??? ????? ????? ????. ??. ??????????? ?????? ???????? ???????? ???????? ??? ???????? ?????, ???? ???? ?????????? ?????????? ?????? ?????? ??? ??????/????? ???????? ?????? ????????? ??? ?? ??? ??? ????. ??. ????????? ?????? ?????????????? ???? ???? ??? ???? ?? ?????????? ?????????? ?????? ???? ??? ????. ?????????? ?????????? ?????? ??? ???? ?????? ?? ???? ??? ????. ??. ???????? ????????? ??? ???????? ??? ????? ???????? ???????? ????????? ?? ??? ??? ?? ?????. ?????????? ?????? ??? ??? ????. ??? ???????? ???? ???? ??? ????? ????, ????? ???????? ???? ?????? ??? ???? ??? ?? ??? ????? ??? ???????? ???????? ????. ?????? ?????? ?????? ?? ???? ??????? ???. ???????? ??? ??????? ????????? ?????? ??????????? ???? ??????? ?????? ????? ?????????????? ?????? ????. ?????? ???????????? ????? ???????? ??? ??? ???? ??? ??????? ????? ??????? ??? ??????? ???? ??? ????. ??????? ??????? ??? ??? ???? ?????? ?????. ??????? ????? ??? ?????????? ?????? ?????? ?????? ???? ??? ?? ?????? ?????? ???????? ??? ???. ????? ????? ??? ???? ?? ?????????? ??? ???????????? ??????????? ?????????? ???? ???? ????? ???? ??????? ????? ??????????? ???-?????? ?????????? ??????? ??? ??????? ?????? ????? ??? ????? ??? ?????????? ??????? ????? ???????? ???? ??????????? ?????????? ?????? ????? ??????? ?????????? ?????? ???! ???? ?? ???????? ?? ?? ???????? ?? ???? ???????? ????? ??? ? ?? ???? ?????? ?????? ???? ????? ??? ????? ??????? ??? ?????? ?? ???? ???????? ???? ???????? ???? ???? ?????? ??????? ?????? ??? ???? ???????? ?????????? ???????? ????? ??? . ?? ???? ????? ????????? ?????? ??? ?? ???? ???? ????????? ??????????? ??? ???? ?? ?? ??? ?????????? ?????? ???????? ?????? ???? ???? ?????? ??? ???. ????? ????????? ?????? ???????? ?? ????? ??????????? ???????? ??? ??? ?? ?????? ?????? ????. ?? ?????? ?????? ???? ???????? ???? ????? ???? ???? ???? ???? ?? ??? ?????? ????????? ?????? ???? ?????? ????? ???? ?????? ??? ???????? ?????? ??????????????????? ?? ????? ??????? ???? ?? ?? ??????? ??? ???? . ?? ?????? ??? ?? ??????? ??????? ???? ?????, ???? ??????? ???? ??????? ???? ??? ?????? ??? ???? ! ??? ?????? ????? ??? ??? ???????? ????????? ?????? ????????? ????? ???, ?? ???? ???? ????????????? ???? ?? ????? ???????? ??? ????????? ?????? ???! ???? ???????? ??????? ?????????? ???????-???? ?????, ??????????, ????

Cut in home loan interest rates will spur demand in the housing sector

http://m.economictimes.com/markets/real-estate/realty-trends/cut-in-home-loan-interest-rates-will-spur-demand-in-the-housing-sector/articleshow/16599026.cms

Cut in home loan interest rates will spur demand in the housing sector

A huge impetus to the real estate sector could help arrest the present slowdown in the economy to a projected growth rate of around 6% in 2012-13 as against 6.5% in 2011-12 and 8.4% in 2010-11 , real estate experts say.

In 2008-9 also, when India's growth had slowed down to 6.7%, from 9.3% in the previous year, the revival of the real estate sector due to launch of houses in the affordable segments led to a turnaround in the economy , which saw a growth rate of 8.4% in 2009-10 .

Lalit Kumar Jain, president of real estate developers ' body Credai, says that a revival in the real estate sector will have a positive impact on 250 industries. Jain, who is demanding that real estate sector not be meted stepmotherly treatment by the government, says that if the sector is given what it deserves, it will help revive the economic growth in the country.

As the home loans given by banks to homebuyers are backed by solid collaterals, the chances of default by borrowers are very low.

But still, as the banks are discouraged by the RBI in giving home loans, they charge high interest rates, in the region of around 10%. Jain says that whatever non-performing assets have been created in the homeloan sector, it is mainly due to delay in the payment of instalments. But, overall, there are hardly any cases where banks could not recover their money in the housing sector. Jain says that, therefore, banks should charge an interest rate of 7% on home loan. In fact, as the net loss due to non-performing assets in the home-loan segment is almost nil, banks should lend at the rate equivalent to cost of funds including the administrative charge. If home loan is brought to 7%, there will be a spurt in demand in the housing sector, which will help revive the economy. In fact, if interest rate on home loan is brought down to 7% from the present level of around 10%, an individual's borrowing capacity will go up.

If the interest rates fall by around 3 percentage points, an individual's borrowing capacity will go up by almost by 25%. That means, with the same EMI, he can borrow almost 25% more at 7% interest rate than he could have borrowed at 10% rate of interest.

Getamber Anand, officiating president of Credai, NCR, says: "An interest rate cut will trigger a boom in the real estate market and is sorely needed to support this sector. This has the potential to kick-start nearly 300 affiliate industries, which can contribute to the IIP. To aggressively kick-start this sector and uplift the sentiments of the retail customer, this rate needs to be brought down to a single-digit figure."

Real estate prices and rentals rise considerably in Pimpri-Chinchwad

Real estate prices and rentals rise considerably in Pimpri-Chinchwad

PIMPRI-CHINCHWAD: As areas under PCMC witness marked improvement in infrastructure, real estate prices across all sectors in the region have risen considerably. In the same league, the number of properties going on rent have also seen a considerable appreciation.

Industry observers in the realty sector say that on an average, properties on rent increased 50 percent in the past five years, while rentals are still appreciating. Moreover, availability of affordable properties when compared to neighbourhood localities is another key contributor to the boom in Pimpri-Chinchwad residential property sector.

THE PERFECT DESTINATION

As per a recent study conducted by 99acres.com, a real estate website, Pimpri-Chinchwad's advantage is being a prominent automobile hub in western India. This — along with a strong presence of IT companies in Hinjewadi — make areas like Wakad, Pimple Nilakh and Pimple Saudagar a perfect option for senior management professionals. On the other hand, Ravet, Talegaon, Moshi and Akurdi offer affordable and low cost housing for all categories of people.

Vineet Singh, business head of 99acres.com said, "Areas like Wakad, Pimple Saudagar, Spine Road and Pradhikaran have witnessed the highest rental appreciation in Pimpri-Chinchwad. People working in the nearby auto and IT hubs prefer to stay close by. The picture five years back was totally different. Most infrastructure projects were still taking shape."

PROPERTY BOOM

Singh also maintains that on an average the property values has seen a hike of 10-12 percent this year. "The convenient location near the emerging Mumbai-Pune growth corridors has come into the limelight and attracted buyers and investors not only from Pune, but from Mumbai and other cities as well," he said.

Anil Pharande, chairman of real estate developers, Pharande Spaces also agreed with rising rentals. He said that most areas that are well connected to Hinjewadi IT Park, the MIDC manufacturing belt and the upcoming International Convention Centre are witnessing rental appreciation.

Pharande added, "The highest demand for rental properties is for studio apartments and 1 and 2 BHK flats. These demands stem from a migrant workers."

He added further, "Three and 4 BHK flats are in demand by a smaller a section of people comprising top-management employees. Property prices and rentals are dictated by demand and infrastructure development, both of which are quite high in this region. Many investors are purchasing flats in order to rent them out because of the increasing demand for rental properties," he said.

Shrinking homes

http://m.indianexpress.com/news/%22homes-no-bigger-than-a-bus%22/989700/

Homes no bigger than a bus - Indian Express Mobile

Yeh kamra toh shuru hone se pehle hi khatam ho gaya, bhai!” This piece of wit from the sidekick ‘Circuit

’, of Bollywood blockbuster ‘Munnabhai MBBS’ fame, is being played out in the affordable housing sector today, where real estate developers are offering homes that measure a mere 250 square feet. “Which is, as big as a bus!” said a real-estate expert who did not want to be named. Affordable, but how liveable?

In order to make the dwelling more affordable, reducing the saleable area is one of the several measures that are being adopted by real-estate developers who have entered the market in the National Capital Region, Mumbai, Ahmedabad, Kolkata, Pune, Bangalore and Chennai.

As a result, affordable houses have shrunk by at least 40 per cent of the sizes that existed a decade ago, say real-estate experts.

“According to our estimates, the sizes of affordable houses in Gujarat has shrunk by at least 40 per cent in the last decade,” says Nirav Kothary, head of industrial real-estate division at Jones Lang LaSalle (JLL), a global property consultant.

A recent report titled ‘Affordable Housing in India’ from JLL clearly states, “In order to reduce costs and improve affordability for the buyer, developers have adopted several measures. This includes units having reduced saleable areas of 250-350 square feet for one room-kitchen, and 400-500 square feet for one bedroom-hall-kitchen formats.” Experts describe these homes as being no bigger than a state transport bus operating in the state.

Real-estate developers say that the rising cost of land in urban centres is the main cause behind the shrinkage in the sizes of affordable houses. While experts believe that smaller housing units are an apt answer for India’s housing problems, a research study conducted by the Hyderabad-based Indian School of Business (ISB) in 2011, points out that families feel “uncomfortable” to live in houses that are smaller than 700 square feet.

Even large affordable housing players like Tata Housing are offering units as small as 293 square feet (carpet area) and in Ahmedabad it costs Rs 8 lakh.

In the period 2009-12, affordable housing projects priced between Rs 5-10 lakh have been sold on an “application model” due to huge demand, with multiple takers for the same unit, says JLL.

Thriving market, new suburbs

Increasing land prices have also pushed affordable housing projects away from city centres. Mumbai and NCR have affordable housing projects located 65-75 km away from the city centre. On the other hand, Ahmedabad and Kolkata provide better proximity, with projects located at a distance of 15-20 kms. Bangalore, Pune and Chennai also have projects after a distance of 25-30 km from the city centre, states the JLL report.

The shortage of land has been exacerbated artificially by poorly conceived central, state and municipal regulations. As a result, land prices in India are much higher than intrinsic levels that can support mass real-estate developments.

Mumbai is currently leading the affordable housing sector, with over 15 projects. Karjat, Palghar and Boisar in the neighbouring Thane and Raigad districts are the popular locations for homes at that price point. In Ahmedabad, the localities of Narol and Vatva have multiple ongoing projects.

Apart from Tata Housing the other players are Value Budget Housing Corporation, Foliage, DBS Affordable Homes and Nirman Group. Other big players such as HDIL and Usha Breco Realty have been successful while Mahindra Lifespaces, TVS Housing and S Raheja have announced future developments targeting this segment are.

“There cannot be houses as small as 250 square feet,” says Umang Thakkar, CMD Dharmadev Infrastructure which is currently building 10,000 affordable housing apartments in various areas of Ahmedabad and start at 600 square feet.

Thakkar who has been in the affordable housing business for the last 20 years feels that rising prices of land and the changing lifestyles of people have caused houses to shrink. “The prices of land have risen several fold over the last few years. Moreover, people no longer live in joint families. There are more number of singles and migrants who prefer smaller houses,” says Thakkar.

In order to ensure low construction cost, the building structure is typically low-rise with Ground+ four floors, without a lift. “The low-rise structure and adoption of technologies such as aluminium formwork and building information modelling enables developers to complete the project within a short period of 18-24 months, thus decreasing the collective time and better returns,” the JLL report states.

THE AFFORDABILITY GAME

To make the housing project more affordable for the buyer, developers are adopting the following measures:
Limited options: Units offered are mostly one room-kitchen and one-bedroom-hall-kitchen formats
Reduced areas: Units have reduced saleable areas of 250-350 square feet for one-room-kitchen and 400-500 square feet for one-bedroom-hall-kitchen.
Low construction cost: Structure is typically low-rise with ground+3 or ground+4 floors, without lift.

Shorter period of construction: The low-rise structure and adoption of technologies such as aluminium formwork and building information modelling enables developers to compete the project within a short period of 18-24 months, thus decreasing the collection time and improve returns.