Mumbai Real Estate News

Apartment developers cut corners to boost cash flows

As volumes in the real estate sector refuse to pick up, some apartment developers have slashed the average saleable area in Mumbai apartments. As a result, you now have homes that on the face of it look cheaper than the going rates in a particular area, but then in effect the size of the apartments have also shrunk.

A BSE-listed developer is selling a two-bedroom apartment for Rs 1.3 crore in Mumbai's north-western suburb of Andheri.

"The apartment has a carpet area of 550 sq ft, which is much less than normal two-bedroom properties," said a real estate broker. "So eventually the per sq ft rate ends up to be more than Rs 20,000 per square foot on carpet area."

Analysts say the recent reduction in size is also a result of a new state government rule.

"If you see at the carpet area, you would realise that it has remained more or less the same, just that many developers were projecting the super built-up area as a lot more,"said Pankaj Kapoor, managing director, Liases Foras, a real-estate research firm. "But with the new development control rules that is not happening."

Also, some developers especially in Mumbai and the National Capital Region are repositioning their properties and also planning to slash size of the apartments. "It is no secret that smaller, cheaper apartments generate faster cash flows than luxury apartments," said a real estate developer, who launched luxury apartments in Borivali some time back. "We are planning to convert our luxury project in North Mumbai to something that an average buyer can afford."

The trend of shifting back to smaller apartments is, however, more seen amongst cash-strapped developers. Industry experts say, that many more developers could be compelled to follow the plan, if the sales continue to remain lukewarm. Earlier in 2008, when the chips were down, many developers had followed the same trick to generate sales.

Apartment developers cut corners to boost cash flows - Hindustan Times
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  • Navi Mumbai to get state’s first marina

    If all goes as per City and Industrial Development Corporation’s (Cidco) plan, Navi Mumbai will soon get state’s first — a harbour to park boats and yachts — and a waterfront to promote social activity on its coast. “With its alignment, the Navi Mumbai coast can prove to be a good location for marina and waterfront development. This, in turn, could boost tourism. We are seeking international consultants who will help us prepare a feasibility report for the project,” said a senior CIDCO official, requesting anonymity.

    Despite having a 150km coastline, Navi Mumbai has not been able to develop a waterfront similar to Marine Drive, Chowpatty, Haji Ali, Worli Sea Face, Dadar Beach, Bandra Bandstand, Carter Road, Juhu Beach or Versova. “Waterfronts are popular public spaces. Our idea is to develop social and cultural activity at these waterfronts and attract tourists,” the official said.

    The development authority also plans to create a marina. “The concept of yachting is picking up in India and the growth seems promising,” he said.
    CIDCO has asked consultants to undertake the feasibility study at the nodes of Nerul, Belapur, Ulwe, Kharghar and the area adjacent to the JNPT Port to identify a suitable location for setting up the marina and waterfront.

    “We will finalise the consultant by the end of March and give him four months to prepare his report,” the official added.

    In the past few years, there has been a rise in the number of boat owners in Mumbai. According to officials, Mumbai can boast of 143 private yachts, the highest in the country. Though top business honchos such as Vijay Mallya and Gautam Singhania own a yacht, in the absence of parking facilities, the boats are parked in the sea.

    The jetty at Gateway of India is used for water transport to areas such as Elephanta and Mandwa. However, the jetty is not equipped to handle huge passenger traffic. So far, Kerala is the only state in the country, which has its own marina at Kochi.


    Navi Mumbai to get state
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    • RohanR2 years ago
      If all goes as per City and Industrial Development Corporation’s (Cidc
  • Originally Posted by Designer
    If all goes as per City and Industrial Development Corporation’s (Cidco) plan, Navi Mumbai will soon get state’s first — a harbour to park boats and yachts — and a waterfront to promote social activity on its coast. “With its alignment, the Navi Mumbai coast can prove to be a good location for marina and waterfront development. This, in turn, could boost tourism. We are seeking international consultants who will help us prepare a feasibility report for the project,” said a senior CIDCO official, requesting anonymity.

    Despite having a 150km coastline, Navi Mumbai has not been able to develop a waterfront similar to Marine Drive, Chowpatty, Haji Ali, Worli Sea Face, Dadar Beach, Bandra Bandstand, Carter Road, Juhu Beach or Versova. “Waterfronts are popular public spaces. Our idea is to develop social and cultural activity at these waterfronts and attract tourists,” the official said.

    The development authority also plans to create a marina. “The concept of yachting is picking up in India and the growth seems promising,” he said.
    CIDCO has asked consultants to undertake the feasibility study at the nodes of Nerul, Belapur, Ulwe, Kharghar and the area adjacent to the JNPT Port to identify a suitable location for setting up the marina and waterfront.

    “We will finalise the consultant by the end of March and give him four months to prepare his report,” the official added.

    In the past few years, there has been a rise in the number of boat owners in Mumbai. According to officials, Mumbai can boast of 143 private yachts, the highest in the country. Though top business honchos such as Vijay Mallya and Gautam Singhania own a yacht, in the absence of parking facilities, the boats are parked in the sea.

    The jetty at Gateway of India is used for water transport to areas such as Elephanta and Mandwa. However, the jetty is not equipped to handle huge passenger traffic. So far, Kerala is the only state in the country, which has its own marina at Kochi.


    Navi Mumbai to get state


    This is really hopeless, first they should try to atleast providing housing and other facilities rather than these useless things. I remember they have also started howercraft and we can see its fate now...

    Rather than government should use the time to atleast think of the real estate scenario, which is haywire right now...
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  • Government to provide residential plots in Bandra-Kurla Complex

    Published: Tuesday, Feb 7, 2012
    Place: Mumbai | Agency: PTI
    Government is planning to change the reservation of a few plots at the Bandra-Kurla Complex (BKC), a prime business district in the suburban Mumbai, from commercial to residential, Chief Minister Prithviraj Chavan said today here.
    "At present there are no residential plots in the business district. The concept of `walk to work' will enhance the standard of living in the area and is aimed at elite sections of the society. There are schools, offices, clubs, hospitals, etc, there, but no residential areas," Chavan said.
    Describing the BKC, developed between eastern and western suburbs, as a "success", Chavan said the government was exploring the possibility of creating another business hub in the north Mumbai, in areas such as Wadala, Oshiwara or Malvani.
    Spelling out his vision for Mumbai, where the civic polls will be held on February 16, Chavan said the Congress-NCP joint manifesto will highlight the plans for transportation, affordable housing and safe drinking water.
    Hitting out at the incumbent Sena-BJP which have been ruling Mumbai corporation for 17 years, Chavan said there was no transparency in tender process, and blacklisted contractors were given repair/road construction works repeatedly.
    He said the state government had hired a Swiss company, SGS, for testing the roads. "It will be reviewing and monitoring the standards of roads as per Indian Road Congress guidelines," he said.
    The Chief Minister rejected the criticism that he had ceded too much space to NCP by forming pre-poll alliance with it in places such as Mumbai and Nagpur, where the Sharad Pawar-led party does not have much base.
    "It is absurd to say that. My larger aim is to defeat the Shiv Sena-BJP. In the last two elections we tried to do that by going it alone, and failed. My party (Congress) is not in the position to fight Sena-BJP and NCP at once," Chavan said.
    Source:
    Government to provide residential plots in Bandra-Kurla Complex - Mumbai - DNA
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  • Malls make way for offices, residential projects

    Mumbai/Bangalore: Burdened by capital investments, lower rentals, delayed returns and overcrowding of shopping malls in an economy in which shoppers are reluctant to loosen purse strings, real estate developers have begun converting such projects into offices or homes.

    The trend, which has emerged at a time when the government has been forced to suspend the opening up of multi-brand retail to overseas investment, is more evident in smaller cities, according to the industry and analysts.
    Builders there have lost their appetite for malls since they have to wait for 8-10 years to get returns on their investment, and have begun scouting for bigger developers to bail them out.
    Read more at;
    Malls make way for offices, residential projects - Corporate News - livemint.com
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  • India’s highest deal for a flat: 1.11 lakh/sq ft

    Hot news for reality market of Mumbai that still big deals are going on as usual but what about the infrastruture outside society limits


    India’s highest deal for a flat: 1.11 lakh/sq ft - The Times of India
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  • No takers for low cost homes

    When three years ago record home prices and higher interest rates dampened demand, developers hit on the idea of constructing affordable (mass) housing projects to fuel sales.

    Three years later, leave alone flats worth crores, Mumbaikars are wary of touching even much cheaper property; a survey finds at least a third of the under-construction flats, priced below Rs 35 lakh, in the Mumbai Metropolitan Region have not yet been booked. Nearly 36% of flats costing approximately Rs 35 lakh that are currently being constructed are lying unsold in Mumbai, says a study carried out by Knight Frank, global real estate consultants. These flats are located in the western suburbs beyond Borivali and Thane.

    Its an all-india trend. Data by the consultants shows that developers who had rushed to launch these affordable housing projects are sitting with 44% of unsold stock. While the demand for Rs 35 lakh apartments went up in Mumbai, Gurgaon, Noida, Thane, Bangalore, Kolkata, supply grew at a faster pace as realtors rushed into the market to improve their cash flows at a time when there were few takers for upper-end dwelling units.

    Hyderabad has the highest unsold stock of 54% while Bangalore and Kolkata had 50% respectively. Pune had 25% unsold stocks.

    A number of property developers such as Unitech, Omaxe, Tata Housing, Puravankara, Lodha Developers and Ansal have announced projects in the sub-Rs 30 lakh category in the last one year following the economic downturn, coupled with fear of job losses and salary cuts that slowed sales of premium projects.

    Property experts said a lot of developers took the plunge as it was the only segment that was doing well. And, since unit sizes were small, more houses were built in a given piece of land. Supply has overshot demand and, therefore, we are seeing a piling up of inventory," said a consultant.

    Price hike had a big role to play in this.

    According a real estate broke in recent months many developers increased rates sensing signs of normalcy in the market. The impact of the price rise has been in all segments, but since the sub-Rs 30 lakh segment was selling the most, sales were hit maximum in this segment," said he said.

    Source: News
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  • mainly, because these so called low cost homes are some 50 kms away from mumbai...
    hahahhaa... so much for low cost homes... :) mumbai is a funny place...
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  • Resident moves court for stay on Metro construction

    Mumbai: Alleging that safety measures taken by the Mumbai Metro One Private Ltd (MMOPL) — constructing the Versova-Andheri-Ghatkopar Metro Rail Corridor-1 — are inadequate, Andheri-resident Monica Matani has moved the Bombay High Court to stay further construction and quash the No-Objection Certificate (NOC) granted by the Brihanmumbai Municipal Corporation’s Chief Fire Officer (CFO) last year.

    Matani, in her PIL, has contended that the 12-km corridor, consists of 12 station buildings that are being built in violation of the Development Control Rules (DCR) and the National Building Code.

    “The designs for the entire 12-km length of the viaduct connecting the stations have not even been submitted to the fire department nor has an NOC been sought from or granted by the CFO for the viaduct, though mandatorily required,” Matani’s PIL states.

    Stating that entrances to the stations are being constructed on busy and congested roads, Matani has cautioned, “Any incident of fire on the viaduct or station building or in adjacent buildings will have serious and disastrous effects on commuters, residents, users, occupants, and on the huge pedestrian and vehicular traffic below the Metro rail on the roads.”

    The PIL claims that while construction of the Versova-Andheri-Ghatkopar stretch started in February 2008, an application for NOC from fire department was made only in December 2009.

    On February 5, 2011 an NOC was issued by the CFO, three years after the construction began in the Metro yard at Versova, the PIL claims. This, according to Matani, is a “blanket” NOC for all 12 Metro stations on the corridor, which is illegal. Each station has its unique fire risk potential and should have been assessed individually by the CFO before granting the NOC, the PIL states.

    The MMOPL has also not followed the requirement of maintaining a distance of 6 meters from the station buildings and other constructions, as mandated under the law. At Ghatkopar, for instance, there are constructions just 1.5 meters away from the station, Matani has contended.

    Meanwhile, Chief Justice Mohit Shah and Justice R V More have asked the CFO to file a reply to the PIL in four weeks.



    Resident moves court for stay on Metro construction
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  • Prices in Mira Road, Bhayandar area to remain firm: PINC - Moneycontrol.com -

    Interesting article.. It validates what I think will be the future... There was also an similar results in the Navi Mumbai trade fair
    Big ticket properties will remain, but what many builders will move is for budget homes.. 1 and 1.5 BHK's. Though there might not be a huge correction, what this will do is bring down the total value for an apartment and this will boost sales..

    Sales are down and it is not due to lack of demand, but the demand is there aplenty albeit at lower levels..

    So if you have 30 to 40 lakhs budget, you will go beyond Borivili..

    And furniture and electronics are getting more compact ..
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  • New Rules Bulldoze Crooked Builders

    New rules bulldoze crooked builders - Times Of India
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  • M Kumar

    Thanks indeed for the mid-day post.

    Although this practice of charging on saleable area(not carpet area) is commo practice, some builders like hiranandanis have separate quote for saleable and carpet areas.
    The rates still appear to on the upbeat- and are increasing on a monthly basis at-least , and thank god not on weekly basis.
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  • Originally Posted by kumarm77
    Thanks indeed for the mid-day post.

    Although this practice of charging on saleable area(not carpet area) is commo practice, some builders like hiranandanis have separate quote for saleable and carpet areas.
    The rates still appear to on the upbeat- and are increasing on a monthly basis at-least , and thank god not on weekly basis.

    Bottomiline is builders still charge it.same is case with parking.I had a question after the society is formed does the builder still own the open space?can society sell the parking lots?
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  • Property prices in Mumbai's prime spot Opera House continue to climb even as diamond traders move

    Property prices in Mumbai's prime spot Opera House continue to climb even as diamond traders move out of the hub - The Economic Times
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  • Mumbai for Me: Why can't public money be used for public spaces?

    MUMBAI: In France, parks in various towns bear a plaque that says the safety and security of every visitor is the direct responsibility of the town's mayor.

    Last November in the US, mayors across the country collectively petitioned President Barack Obama to use the Land and Water Conservation Fund for urban parks and open spaces. Their goal: 'everyone in America should live within a short walk of a park that is clean, safe and vibrant.'

    It's a raging debate in Mumbai. Why shouldn't more public money go into protecting and developing reserved open spaces-namely parks, gardens, recreation grounds and playgrounds?

    The BMC is partial to the caretaker policy, which seeks to allow private parties to maintain open spaces as long as the private group gets a portion of the space to commercially exploit. If the BMC allows a citizens' group to adopt an open space-in which no commercial exploitation occurs-then it wants to insist that no MLA or MP funds go into the venture.

    However, activists question this dichotomy of not allowing public funds to be used for public spaces. After all, the Carter Road promenade was restored with help from Shabana Azmi's MPLAD funds, while the Juhu beach revamp was aided by both Azmi's and Hema Malini's MPLAD funds.

    There is also a track record of citizens' groups successfully maintaining open spaces. When the state wanted to develop and maintain Cross Maidan, it turned to the Organization for Verdant Ambience and Land (Oval) Trust, which had earlier successfully restored Oval Maidan, a Grade I heritage ground. "Rope in local stakeholders and form a partnership with residents. Money must come from the civic budget," says Nayana Kathpalia, trustee, Oval Trust.

    Citispace, an NGO that for two decades has been fighting to preserve open spaces, has also emphasized civic funding and people's participation. The NGO had made the first comprehensive attempt to research and locate reserved open spaces in the city and found approximately 940 acres of such spaces. At a rate of Rs 11 lakh per acre, Citispace had calculated that it would not cost the BMC more than Rs 103.4 crore to develop and maintain these spaces during the first year such a project was taken up. "The expenditure in subsequent years would reduce," said a Citispace activist.

    A more detailed documentation of reserved open spaces in the city, conducted over the past year by architect P K Das's team, revealed there are 4,695 acres of reserved open spaces in the city and 1,310 of them are encroached. The BMC takes umbrage when citizens who have adopted a garden or park approach a local elected representative for funds. "The circular which does not allow the MP or MLA fund to be used for open spaces still stands," said Subhash Karvande, deputy municipal commissioner, in charge of gardens. The use of civic corporator funds are also discouraged.

    Activists argue that if an elected representative's funds can be spent on toilets, gutters and paver blocks, why can't they be used for open spaces. "Not everyone can travel to Juhu beach or the Gateway everyday. Open spaces are a fundamental right and improve quality of life. Our elected representatives must be allowed to fund these projects," said an activist from Mahakali Caves, Andheri (East). The local ALM got into trouble with the BMC for asking local MLA and minister Suresh Shetty for funds to maintain the Meenatai Thackeray garden.

    Hansel D'Souza, president, Juhu Citizens' Welfare Group, said citizens struggled and fought to save the beach and six gardens. "Now we have white elephants. The maintenance of one garden costs approximately Rs 50,000 a month. How do we raise the money every time?" he asked. Citizens pay taxes to the BMC. "By not providing funds, the BMC is shirking its responsibility," he said. Activists alleged that the BMC behaves thus to ensure that open spaces are given on a platter to private parties for exploitation.

    "When the BMC acquires a reserved open space, it gives TDR to the owner. It then declares that it can't maintain the space and so gives it to a private caretaker. The city loses in two ways - more construction and zero open space," says RTI activist Amil Galgali. "When the civic body acquires an open space it must fund its development and maintenance. Local residents and NGOs are the best security guards, so they must be made stakeholders."

    Private funds can be used to maintain public spaces, as long as no exploitation results and residents are involved. For example, a company can fund maintenance while locals help with upkeep. When old areas are taken up for redevelopment, one-third can be reserved for open spaces subsidized by luxury homes and commercial complexes in the area.

    +Almost all of the Indian Metros have the same story...:(

    Mumbai for Me: Why can't public money be used for public spaces? - The Times of India
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