NEW DELHI: Phase III of Delhi Metro network may be a boon for the city but a group of Delhiites will be paying the price for progress. Scores of shopkeepers, residents and villagers are dealing with the pitfalls of the Metro expansion. A part of line 7 (Mukundpur to Yamuna Vihar) will go underground in Naraina, though the corridor otherwise is elevated.
It will result in shutdown of a part of a two-decade-old DDA shopping complex as well as takeover of the lone MCD park in the adjoining Naraina village-the latter for parking purposes. Owners of forty-three shops in the DDA shopping complex, who paid money thinking it was part of the master plan and therefore "safe", may be left without their livelihood for the two and half years it will take to build the station.
Delhi Metro officials, who claim the original alignment of the line was changed to serve "public interest", are unwilling to listen to the residents and shopowners. Director (works) of Delhi Metro, Jitender Tyagi, says, "The station will not record much footfall if it is located west of Ring Road, so we have changed its location to tap commuters." Asked how they were addressing the concerns of residents of the area, Tyagi said, "Not everyone can be accommodated."
"Everyone" are the residents of Naraina Vihar, Naraina village and the shopowners of the Naraina DDA shopping complex. Anil Singhi, who owns shop no. D15, says Delhi Metro's decision was a bolt from the blue. "We got to know that the station will be located under the shopping complex in February 2012. Before that, Delhi Metro had said there would be two stations in Naraina," recalls Singhi. The shopkeepers' association president, Shailendra Vashisht, adds, "We have met the chief project manager, who informed us that wings C, D and E would be acquired by Delhi Metro. The shops affected will be relocated to a neighbouring plot. We have been told to vacate by October."
Says Vashisht, whose shop is also being acquired, "If we are to be shifted to a nearby area, why can't the station come up there? Hundreds of people will be affected with the shutdown of these shops, many of whom are daily wagers." Next to Singhi's shop are smaller units, including a photocopying shop, gym, photo lab and other smaller businesses. All will be shut down during the construction.
Tyagi admits that owners will have to look for an alternative location to run their businesses and offices. "We are planning to build a few kiosks near the existing courtyard of the shopping complex for the smaller shops but others will have to arrange for alternative locations. The nearby plot where we will re-establish them will be ready only in two years' time," adds Tyagi.
Residents of Nariana village are equally unhappy. Mahasingh Tanwar, whose family has lived in the village for generations, says Delhi Metro is taking away the only green area that the village has. "The MCD park will be acquired to act as parking space for the Naraina station. It's the only park in the village where children can play and where we hold all our cultural programmes like Ramlila," rues Tanwar.
Lack of political support from local MLAs-Ramakant Goswami and Karan Singh Tanwar-has left residents of the village as well as those of Naraina Vihar disillusioned. Says Satya Prakash, president of the Naraina Residents' Welfare Association, "We had approached DMRC in 2011 in connection with the change in the alignment but no one is willing to listen to us." Prakash says the RWA is especially worried as the line will go underneath the colony. "It's an old residential area, and the houses are not in the best of condition. Any underground work will affect their foundation," says Prakash. It's a fear echoed by Tanwar as well, who adds, "Buildings in the village don't have the strongest foundation."
That's not the only fear. "The service lane next to the DDA shopping complex where the station will come up has two schools nearby. The opening of the station and the adjacent parking might endanger children's safety," says Prakash.
Delhi Metro says it will use the "latest" technology to ensure that the work doesn't affect residential buildings. Says Tyagi, "We will treat the track system and make it elastic, so that minimum load is felt on the corridor. Houses will not be affected."
More Private Equity funds flow into Pune real estate
Pune has been the favoured destination amongst Real Estate PE funds since 2005 – the year FDI opened for real estate. Most of the funds are based out of Mumbai, which gives Pune obvious preference, as the city’s proximity allows these funds to track and monitor the market – and their investments – easily. Also, Pune is among the most rapidly growing cities in India after Mumbai, NCR and Bangalore.
The total flow of PE funds into Pune until December 2011 was approximately US$800 million. This consisted of both foreign and domestic monies through around 32 major transactions over the last five years. 2009 saw the lowest flow of private equity funds into the city, though Investors regained confidence in 2010 arrived.
The renewed investor confidence resulted in a massive recovery of private equity deal closures in Pune, says Jones Lang LaSalle India in its latest report.
As expected, most of these funds have been invested in the residential property asset class. In fact, residential real estate has proved to be the most consistent and enduring magnet for private equity funds into Pune’s real estate sector. In comparison, investments into SEZs, industrial parks (STPIT) and mixed-use townships have primarily been seen only before mid-2008. From 2010 onward, the interest in these formats as asset classes has been quite meager.
Significantly, 61% of the total private equity investments that have been seen in Pune were done in projects located in East Pune. East Pune has the majority of the city’s IT industry developments such as Magarpatta Cyber City in Hadapsar, EON IT Park in Kharadi, CommerZone in Yerawada, Weikefield IT Park on Nagar Road, etc. These IT developments have had a major spin-off effect on the profile of these areas.
The higher spending power and commensurate aspirations of the people working in these establishments has caused the arrival of massive malls and also generated a huge demand for quality residential projects. These projects are proving to be the major magnets for private equity investments into Pune’s real estate sector.
If you are buying a house that will cost you anything between R2.5 and R6 crore, it is understandable you’d expect the developer to answer all your questions and doubts. HT FILE PHOTO But expect no such luck if you are coveting a flat at the Commonwealth Games Village (CWG), 110 of which are being auctioned by the Delhi Development Authority (DDA).
The CWG Village, built under public-private partnership between DDA and developer Emaar MGF, is spread over 27 acres and comprise 34 towers with 1,168 flats. DDA, which has more than 700 flats in its share, is auctioning 110 flats first to get an idea about the market price.
The flats would be auctioned at ‘as is where is’ basis and the DDA has asked the potential buyers to visit the village and ‘satisfy’ themselves about their conditions.
While the village has been witnessing a steady stream of visitors for the past few weeks, some have complained that the DDA staff at the site does not have thorough knowledge about the complex.
“The flats are claimed to be of two-star rating but the reality was a far cry from it,” said Neerja Ahluwalia, a lawyer.
“The staff that DDA has deployed is absolutely clueless about the facilities. Though they said that water supply is round -the-clock and there is power backup, they had no clue where the water treatment plant, pressure pumps or power backup systems were installed,” she said.
“DDA claims in its advertisement that the sporting infrastructure at the village would be open to flat buyers but the staff told us that they are only selling flats and have no idea about the sports facilities,” said another visitor Pawan Sharma (name changed on request).
When HT visited the village on Thursday, DDA engineers at the site looked hassled due to the constant flow of visitors and queries.
On being asked about the water supply, a DDA junior engineer said it would be provided by the Delhi Jal Board but had no clue about 1 MGD water treatment plant at the village or about overhead water tanks. "Those must be on the roof or under the ground," he said. He hadn't heard about the 1 MGD sewage treatment plant either.
The engineer, however, was aware of the power sub-station for the village and generators for power backup.
'Satisfying' yourself about the flats means a very long walk inside the village with no signage guiding you towards tower numbers 1, 9 and 14, where flats are up for auction. While DDA engineers meet customers at a flat turned site office, security guards show the flats.
DDA spokesperson Neemo Dhar, however, said no complaints were received from potential buyers. "The DDA engineers at the village have thorough knowledge about the flats and the complex," she said.
Now, independent homes are being registered with the green building rating system, says
What do actor Gul Panag, NRI Swapan Das and technology journalist and green evangelist Prasanto K Roy have in common? They are all owners of the first few independent homes in India to be registered with the green building rating systems. While Roy and Panag’s homes in Chittaranjan Park in Delhi and Mulshi in Maharashtra, respectively, are the first two homes to be registered with TERI’S green building rating system, Das’s bare shell villa bought from a builder in Gurgaon is currently being redesigned as a green home under Indian Green Building Council’s (IGBC) LEED certification.
This eco-friendly home is Das’s way of contributing to the environment. “I have been conscious about the subject and felt sad about how little we were doing in terms of conserving the environment in India. This is a small contribution from my end and I hope to move in by Diwali this year,” he says. Both Roy’s and Panag’s homes are registered under TERI’S SVAGRIHA: Small Versatile Affordable GRIHA system.
“SVAGRIHA is a significantly simplified, faster, easier and more affordable rating system that functions as a design-cumrating tool. It has been designed as an extension of GRIHA and has been specifically developed for projects with built-up area less than 2,500 sq m. “It costs between R30,000 and R1 lakh to get your house registered under this rating,” says Apoorv Vij of TERI. Nilanjan Bhowal is the man behind Roy’s Green One home in Chittranjan park and Das’s villa in Gurgaon.
“Green home certification systems give credits on the basis of energy efficiency achieved in a building. Green housing relates to an environment-conscious lifestyle essentially focused on preventing wastage. This is achieved by things like setting up rainwater harvesting systems and water bodies on the roof,” Bhowal explains. “We’ve designed a terrace garden and water bodies in Roy’s house to make the roof cool. That led to huge energy savings. The electric load, too, was minimised by the use of LED lighting, five-star air conditioning and systems and geysers that run on solar power.” Roy’s house has been built by reusing bricks, steel reinforcements and wood from For those going in for environment-friendly residential projects, banks such as State Bank of India, offer home loans at reduced interest rates “We offer a concession of 0.25% in interest rates for projects that come with LEED or GRIHA certification. This is part of our endeavour to promote rated eco-friendly residential projects,” said a senior official of the bank SBI launched the green homes scheme in 2009 to support ecofriendly residential projects by Tata Housing and the Mahindra’s. Over 1,000 homebuyers have taken ‘green’ loans
22 मई को दिल्ली में होने जा रही एनसीआर प्लानिंग बोर्ड की मीटिंग से पहले लोगों ने अपना एजेंडा एनसीआर प्लानिंग बोर्ड व यूपी गवर्नमेंट को भेज दिया है। लोगों की तरफ से दी गई चिट्ठी में कहा गया है कि यमुना एक्सप्रेस - वे अथॉरिटी के रिहायशी एरिया में 500 वर्गमीटर से 4000 वर्गमीटर से ज्यादा के प्लॉट काटने की प्लानिंग नैशनल वेस्टेज है। इसे रोका जाना चाहिए। यहां 500 वर्गमीटर तक के प्लॉट ही मान्य हों। ग्रेनो के फाउंडर चेयरमैन डॉ . योगेंद्र नारायण ने कहा है कि यूपी इंडस्ट्रियल डिवेलपमेंट एक्ट में प्रावधान है कि इंटिग्रेटेड इंडस्ट्रियल टाउनशिप के प्लान में कम से कम 20 पर्सेंट जमीन इंडस्ट्री के लिए रिजर्व रखी जाए।
इलाहाबाद हाई कोर्ट के आदेश के बाद यमुना एक्सप्रेस - वे अथॉरिटी के अफसर अपने प्लान पर राज्य सरकार के बाद एनसीआर प्लानिंग बोर्ड से परमीशन लेने की कोशिश में जुटे हैं। नोएडा के प्लानिंग एक्सपर्ट अनिल गर्ग व पंकज ने इन मुद्दों को लेकर एनसीआर प्लानिंग बोर्ड को चिट्ठी भेजी है। इनका कहना है कि यमुना अथॉरिटी की प्लानिंग में 4000 वर्गमीटर के प्लॉट शामिल करना नैशनल वेस्टेज है। किसी भी शहर में जो भूमिका छोटे व मीडियम क्लास की है उसे नजरअंदाज नहीं किया जा सकता। वहां ईडब्ल्यूएस और एलआईजी कैटिगरी के लोगों के लिए क्या प्रावधान किया गया है इस मुद्दे को भी प्लान में जगह देनी होगी।
डॉ . योगेंद्र नारायण ने बताया कि जब ग्रेनो बसाने की प्लानिंग की गई थी तब यूपी इंडस्ट्रियल डिवेलपमेंट एक्ट 1976 के प्रावधानों के तहत कम से कम 20 पर्सेंट इंडस्ट्री के लिए प्रावधान रखा था। अथॉरिटी ध्यान रखे कि यमुना अथॉरिटी ने प्लान में 20 पर्सेंट इंडस्ट्री का प्रावधान रखा है या नहीं। इस मुद्दे पर आंदोलन करते रहे किसान नेता अजित दौला का कहना है कि अथॉरिटी को तेज गति से विकास के लिए बिल्डरों को बड़े प्लॉट देने का सिस्टम को विराम लगाना चाहिए। जरूरतमंद को ध्यान में रखते हुए इस तरह की प्लानिंग की जानी चाहिए जो लोगों को समय से घर मुहैया करा सके।
Is the real estate regulation bill a boon,or a bane,for homebuyers By penalizing developers for cost and time overruns and leaving out government agencies responsible for granting approvals from the ambit of the regulator,does it really enhance the cause of the sector A K TIWARY writes
The much-awaited Real Estate (Regulation and Development) Bill,2011,up before a Parliamentary committee,has evoked a strong response from builders and developers.
After inclusion of some changes and recommendations suggested by the industry stakeholders,from buyers to developers to industry experts,the government appears keen to see through the real estate regulation bill in the monsoon session.
If implemented,the bill will ensure housing for the urban poor by making it compulsory for developers to provide some portion of project townships for the lower income group.The bill will help streamline the clearances process for all developments;developers cite approvals and clearances process as the main reason for project delays.
The forthcoming bill will also prevent the hoarding of land by deep-pocketed realtors.Under the proposed law,developers will have to submit project details like approved layout plan,timeline,cost,sale agreement to the regulator before launching projects.Failure to do so will entail a penalty of 10% of the project cost on the developers or jail for a maximum of three years.In extreme cases,they could even lose their licence.
However,Navin M Raheja,the chairman of Naredco,says: Redefining public purpose,as suggested by the Parliamentary committee,will impact infrastructure,industrial and township development severely.Provisions of Land Acquisition (LA) and R&R Bill should not apply to private acquisitions done by developers after direct negotiation with landowners and farmers.Privately negotiated prices,in almost all cases,are much higher than acquisition compensation suggested in the bill.Twenty per cent of developed land going back to owners is part of the LA and R&R Bill,which will make township development difficult.In case of township development,a developer severs his link after completing the project,unlike industries.Implementation of R&R will be difficult.Ceiling of 50 acres for urban and 100 acres for rural,beyond which LA and R&R will apply,will in all probabilities be lowered by the states,if power to reset ceiling is vested in them.Land for residential use for weaker sections was included in Public Purpose according to LA and R&R Bill.Its exclusion will severely impact the housing supply in this category.Putting all land under agricultural cultivation in the same bracket as multi-cropped land will make land acquisition for township more difficult.As it is,the ceiling of 5% on multi-cropped land acquisition in a district was difficult to follow,taking acquisitions for all purposes together into consideration.
Sanjeev Srivastava,the managing director of Assotech Group and national executive committee member of Credai,says that the proposed bill does not give a level playing ground to all the stakeholders.
Although developers and builders are in favour of a comprehensive bill,the regulatory doesnt have jurisdiction over all stakeholders sanctioning authorities like development authorities of the Centre and the state governments,the airports authority (for permission of the height of the project ),the EIA (Environmental Impact Assessment for NoC).These agencies operate without any time commitment.Their track record is an average of one year or more.
By and large there is no commitment of any agency,especially those used to work in an arbitrary manner and take one step forward and two backwards.This results in delays,excessive cost overruns and all these lead to a point of dispute between developers and consumers.These will also have a direct bearing due to current provisions in the forthcoming real estate regulatory bill, Sanjiv Srivastava says.
Navin Raheja,the president of Naredco and CMD of Raheja Developers,says: The new regulatory act on one hand will rein in builders but on the other hand it will also address issues of transparency and efficient growth of the real estate sector.
The new regulatory bill treats builders harshly.They will have to upload all titles and clearances on the regulators website before launching a project.Failure to do so may invite imprisonment for three years and also a very stringent fine.The builders will not be able to divert money to other projects unless they have made and frozen funds flows for the construction of the project which is to be delivered to the customers, Raheja says.
Rakesh Yadav,the managing director of Antriksh Group,says: Undoubtedly,the regulation bill is necessary to protect buyers interest.But rather than implementing a single-window system and giving a proper status to real estate sector,the government is keen to introduce the real estate regulatory bill.This is for whom for developers or buyers The forthcoming regulatory bill does not have adequate measures to protect the interest of buyers and developers.
R K Arora,the chairman of Supertech Ltd,says: The forthcoming real estate regulatory bill will become anti-real estate industry legislation if passed without addressing the basic concerns of the industry.The harsh punishments suggested in the bill will drive several small developers to abandon projects midway leaving buyers in the lurch.And there is no effective mechanism in the bill to safeguard buyers in such situations;in this sense the bill is both anti-industry and anti-buyer.
Parnav Ansal,the vice-chairman and managing director of Ansal API,says that the real estate regulation and development bill is a progressive move by the government which will help streamline the realty sector.But there are some clauses in the bill which might hurt the interests of buyers as well as developers.The real estate regulatory bill in its present format provides an instrument for control of the activities of developers alone.
Parnav says: The objective is laudable but inadequate to meet the needs of the buyers.In addition,the proposed process will introduce another level of approvals and will further increase the complications leading to a longer time overruns and higher cost of delivery of real estate projects.The proposed bill needs a little touch-up in order to suffice the needs of both the customers as well as the developers. Amit Gupta,the managing director of Orris Infrastructure,says that the setting up of a real estate regulator is a welcome development.The proposed bill will bring transparency into the real estate sector and will reassure buyers.The bill must be balanced and see to it that it does not create uncertainty over any project;otherwise it will affect the growth of the sector.
The new law may push real estate prices further up because it stops promoters from receiving any advance unless all the licences and approvals are in place.Some even believe it might hamper the interest of buyers as well as the developers and builders.They contend that the real estate regulatory bill could become anti-real estate industry if passed without addressing the basic concerns of the industry.
Gitamber Anand,vice-president of Credai,says: The industry per se has never been against the regulatory bill;but there are certain objections on the bill in its present form mainly on the score that it does not cover all stakeholders in the business,namely the ULB (Urban Local Bodies) who give statutory permissions,the financial institutions,the customer and the developer.The bill in its present form will choke the real estate business as it does not address the issue of delay caused by the sanctioning authority for which developers are unfairly held responsible.
Anil Sharma,the vice-chairman of Credai and CMD of Amrapali Group,says: We welcome the regulatory bill but it would have given the right direction to this sector if the status of industry and single-window system were clearly pronounced.The industry is facing numerous problems and bringing in a regulatory bill at this stage may further worsen the growth in real estate industry.
UNDER THE PROPOSED LAW,DEVELOPERS WILL HAVE TO SUBMIT PROJECT DETAILS LIKE APPROVED LAYOUT PLAN,TIMELINE,COST,SALE AGREEMENT TO THE REGULATOR BEFORE LAUNCHING PROJECTS.FAILURE TO DO SO WILL ENTAIL A PENALTY OF 10% OF THE PROJECT COST ON THE DEVELOPERS OR JAIL FOR A MAXIMUM OF THREE YEARS.IN EXTREME CASES,THEY COULD EVEN LOSE THEIR LICENCE UNDOUBTEDLY,THE REGULATION BILL IS NECESSARY TO PROTECT BUYERS INTEREST.BUT RATHER THAN IMPLEMENTING A SINGLEWINDOW SYSTEM AND GIVING A PROPER STATUS TO REAL ESTATE SECTOR,THE GOVERNMENT IS KEEN TO INTRODUCE THE REAL ESTATE REGULATORY BILL
Major developers are coming up with varied residential developments in Noida-Greater Noida,increasing the pool of housing units in the Delhi NCR.A K TIWARY writes
Developers and builders are coming up with megahousing projects in Noida-Greater Noida;on offer are a slew of housing options in different sectors of these twin cities.Sectors 34,50,74,77,76 and 78,all near Noida Extension,are being developed at a rapid clip.Here,prices are competitive in comparison to the other sectors of Noida.
Developers like Ajnara,Amrapali,Antriksh,Earth Infrastructures,Gaursons,Supertech,Prateek Group,Gulshan Homz,and JM Housing limited have projects here,which cater to budgets cutting across segments from middle-income group (MIG) to highincome group (HIG).From affordable to luxurious,these developers are building residential projects in all the categories,as the demand for each category is huge today.
Supertech's ORB is a circular 40-storeyed luxury residential development at Sector 74,Noida.Mohit Arora,director of Supertech Ltd,says: "Round has always been the preferred shape for a handful of those who dared to go beyond the convention and ORB is a first-of-its-kind residential project for them.To promote this project,Supertech has joined hands with Twinkle Khanna,a prominent actress and interior designer.As a brand ambassador,Twinkle Khanna will exclusively promote ORB in Delhi and the NCR region."
This three-tower landmark has luxury homes with high-tech automated facilities and nestles amidst landscaped surroundings.Prices of the units range from Rs 80 lakh to Rs 1.34 crore,while the floor areas of the units range from 1,980 sq ft to 3,290 sq ft.
Supertech's Cape Town,over 50 acres in Sector 74,is a leisure and residential community built as a complete,self-contained campus with the best facilities where every unit is designed to high standards.It comprises eight variants of wellplanned (2,3 and 4 bedroom) apartments and penthouse towers,luxury villas spread over a green area.Cape Town will have 1,840 upscale and well-appointed apartments with modern conveniences like a clubhouse,a jogging track,a swimming pool,etc.The price ranges from Rs 30 lakh onwards.
Supertech also has Amber Heights,Aristo Heights and Azure Heights,over 3,16,112 sq ft at 34 Pavilion,in Sector 34;these are located in the heart of Noida,just 2km from the Noida golf course.Here one can get fully loaded 2- and 3BHK apartments,which are well connected with the Delhi Metro.34 Pavilion comprises 2- and 3-BHK apartments,with areas ranging between 1,075 sq ft and 1,750 sq ft.These are 'vastu-friendly' and the floor plans are 3-4 sided open;price starts at Rs 53 lakh onwards.
Supertech's Apex Towers is located in Emerald Court on the Noida-Greater Noida Expressway,which gives you your money's worth and more.This apartment block is the tallest in the vicinity.Facing a 40-acre city park,the units in this project command a beautiful view of the serene surroundings.The location has several other advantages like proximity to various leading schools like Step-ByStep,Mayoor,Lotus Valley,Amity University and a forthcoming multi-specialty hospital across the road.
A flat at Apex Tower comes with the added benefit of a swimming pool within the compound.Residents can also avail of a clubhouse that offers the best in class and service.
The good news is that prices at this highrise are not steep.The price starts at Rs 40 lakh;the size of the units range from 1,050 sq ft to 1,450 sq ft.
R K Arora,the chairman and managing director of Supertech Group,says: "The Delhi NCR has a huge demand for residential houses and,today,Noida is a booming place in terms of residential housing.The best about Noida is that it offers houses to suit every budget."
Apart from Supertech Group,the other developers active here are Ajnara (Ajnara Home),Antriksh (Antriksh Golf View 1,Antriksh Golf View 2,Antriksh Nature),Gaursons (Group's Gaursons City),Amrapali (Heartbeat,Golf Homes,The Centurion Sapphire,Leisure Park,Silicon City) and Gulshan (Gulshan Homes),etc.
Sonika Khurana,the planning head of Vardhman Real Estate Promoters,says:"N o i d a - G re at e r Noida has several factors that would support its growth as a residential real estate destination.With the increase in disposable income,people are ready to buy properties not just for living but also for investment.Another factor is the significant growth of the population of young professionals buying houses of their own,which is only adding to the already existing demand.Developers have risen to the occasion and are coming up with newer projects really fast.There are several categories of housing available like serviced apartments,1-2-3-4 BHK flats,luxurious floors,penthouses,etc."
Rakesh Yadav,the managing director of Antriksh Group,says: "A house is the costliest item an individual purchases in his lifetime when compared to all the other items of necessity and luxury one may want.The biggest benefit with the increase in supply through various new projects in recent times has been the availability of houses in different categories.Today,the price of houses in the NCR varies from a few lakhs to crores,depending upon the area,location and the facilities on offer.Now,houses are available cutting across the budget size of each section of the society."
Residential real estate sector has been the frontrunner of all the real estate activity in our country.With the ever increasing demand for residential houses,the sector has a long way to go and a great future ahead.
Antriksh,Kanball,Prateek,Amrapali,AVS,Mahagun,Supe rtech,Nimbus,Skytech all have been allotted plots for megahousing projects in these twin cities.
Paramount Group,a leading real estate developer,recently launched Floraville and Golf Foreste.These residential projects are located in Sector 137,Expressway in Noida and Zeta Sector,Greater Noida,respectively.Floraville is spread over 12 acres and the project will comprise 2,2 plus 1 study,3 and 3 plus 1 study BHK apartments.
NOIDAGREATER NOIDA HAS SEVERAL FACTORS THAT WOULD SUPPORT ITS GROWTH AS A RESIDENTIAL REAL ESTATE DESTINATION.WITH THE INCREASE IN DISPOSABLE INCOME,PEOPLE ARE READY TO BUY PROPERTIES NOT JUST FOR LIVING BUT ALSO FOR INVESTMENT
ANOTHER FACTOR IS THE SIGNIFICANT GROWTH OF THE POPULATION OF YOUNG PROFESSIONALS BUYING HOUSES OF THEIR OWN,WHICH IS ONLY ADDING TO THE ALREADY EXISTING DEMAND.DEVELOPERS HAVE RISEN TO THE OCCASION AND ARE COMING UP WITH NEWER PROJECTS REALLY FAST
Sharma Comes Down Hard on Idea Restricting Govt Say
The commerce and industry ministry will oppose the standing committee's recommendation that the government should not have a role in land acquisition for any “for profit enterprise”, be it public, private or in the PPP mode. “These recommendations are unacceptable not only to the industry but also to my ministry,” commerce and industry minister Anand Sharma said at a news conference on Friday. “You cannot take a view that is regressive, prevents growth of manufacturing and virtually dampens investor sentiment.”
A parliamentary panel, which went through the Land Acquisition, Rehabilitation and Resettlement Bill, has recommended that governments, central as well as states, should not help acquire land for private and PPP enterprises. It also said that the “public purpose” in the bill should be restricted to linear infrastructure and irrigation, including multipurpose dams and social sector infrastructure such as schools, hospitals and drinking water, or sanitation projects constructed at state expense.
Sharma has taken strong exception to the exclusion of manufacturing and industrial activity from public purpose.
“We have to encourage investments in industry, particularly in the manufacturing sector. The jobs will only be created there. You cannot take it out of public purpose,” the minister said.
Where states have already done zoning of land for manufacturing zones, it is primarily their responsibility to execute it, Sharma said. “I fail to understand that where states have done zoning of land and their specific proposals are already with the government, why should we do anything that will come in their way to progress,” he said.
With Bangalore’s haphazard, unplanned growth staring us in the face, the concern of the Mysoreans is to see that it does not go the Bangalore way. It is heartening to see that one of the biggest stakeholders in the city, the builders, are also thinking of the heritage city first and then the selling of the apartments, finds out N Niranjan Nikam, even as the four-day My Realty 2012, is on at the Maharaja’s College grounds.
M y friend Sarojini was in Bangalore to visit her daughter recently. She went to a shop on Avenue Road and the shopkeeper, a Marwari, was pleasantly surprised the way she was talking to him. He asked her where she was from and she said Mysore. “Amma, no wonder you have so much of patience and time.
Here no one has time for a pleasant talk. Please see that you preserve Mysore and do not allow it to become another Bangalore,” was the reaction of the concerned Marwari shopkeeper.
It is that time of the year again, where the builders try to bring the buyers on a common platform to showcase the properties they have at one place and this is the seventh edition of the My Realty 2012 show on at the Maharaja’s College grounds, is a proof of this.
“The Builders Association of India, Mysore chapter and the Confederation of the Real Estate Developers of India (CREDAI) have come together, wherein; all are credible and authenticated developers, where the Credai code of conduct is strictly followed.
Here the buyer has the choice to see the different projects like the fruits in a basket,” said My Realty 2012 chairman S Prakash.
There are about 25 participants and some of the big names in the real estate field like Prestige, Shoba, Brigades, Fortune, Shriram properties from Bangalore and Mysore’s Sankalp, Premier, Pramur are participating. The financial institutions like ICICI, HDFC, Axis are also participating, Credai, Mysore president M B Nagakumar told City Herald.
Asked how many apartments had been built till now in Mysore, Nagakumar said that there were nearly 2,000 flats built out of which 1500 had already been sold. The demand is there with a 20 per cent growth every year.
With the penchant for individual houses that a traditional Mysorean still has, is it not a challenge to change the mindset? Here the members of the organising committee including BAI Mysore chairman A V Sridhar, My Realty secretary S R Swamy, Prakash and Nagakumar are unanimous in their opinion that if Mysore has to be preserved and should not go the way of Bangalore, then the core area, the heritage part of the city has to be maintained and development has to happen in the periphery of the city.
“It is better to encourage joint ventures (JVs) with the public private partnership model where for instance a public transport like a bus can pick up 100 people from one place than to go around different parts to pick up others. Also the laying of pipes for water, cables for electricity can all be minimised with high rise buildings,” said Prakash.
What is the profile of a buyer in Mysore? In Bangalore if one visits a project site, it is the young family crowd and sometimes even a young lady with her parents visiting the mockup flat who takes a decision to purchase a flat. “Here it is slowly changing. The elderly are moving from individual houses to flats as they have realised that many issues like safety, security, availability of house maids are all taken care of,” said Sridhar.
Just one company the TVS set up in Nanjangud industrial area nearly two decades ago made a sea change in the whole area. The ITC is coming up, Nestle is expanding and many of these companies are buying flats for their company guest houses in JP Nagar, said Swamy.
However, there are lot of concerns the builders in Mysore have which the government is promising to address and nothing much has been done so far. It is first the high taxation and the floor area ration (FAR).
A commercial space in Bangalore Jayanagar is Rs 25 per sq ft whereas in the KSRTC bus stand in Mysore it is Rs 38 per sq ft. The committee members said that it was simply because of the clear advantage in FAR, Bangalore has and unless the ratio is increased from the present 1.5 to 2 to at least 3 the problem will continue, they said.
It is sad that the government has only misplaced priorities and with the building industry being one of the largest employers if the building boom has to sustain then the government must act. “Either there should be VAT or stamp duty it cannot have both, the tax policy should be simplified, “ is the demand of the builders.
What is the going rate of the flats? It is anywhere between Rs 1,500 per sq ft in the outskirts of the city to Rs 2,500 per sq ft in JP Nagar to Rs 3,000 to Rs 3,200 in the heart of the city like Jayalakshmipuram, Vontikoppal, Lakshmipuram, said Nagakumar.
My Realty is expecting an optimistic footfall of anywhere between 25,000 to 30,000. “We have issued 10,000 passes to the clubs and our previous buyers and we hope to do a good business of at least Rs 30 crore in air condition comfort,” said Prakash and Nagakumar.
The only fervent wish of every Mysorean is that, as one of the headlines in My Realty 2012 brochure says, ‘Mysore forward gracefully.’
No instance of terror funds into realty sector’
New Delhi: The government on Friday said "no specific instance" of flow of terror funds into the real estate sector has come to its notice.
"As per the current assessment of revenue intelligence agencies...No specific instance of flow of terror funds into the real estate sector has been found," Minister of State for Finance SS Palanimanickam said in a written reply in the Lok Sabha.
However, he said, "investigations by the Income Tax Department reveal unaccounted or undisclosed income or assets in various sectors of the economy, including real estate."
The intelligence agencies, which carried out the assessment, include Investigation Directorates of Central Board of Direct Taxes (CBDT), Directorate of Revenue Intelligence, Directorate General of Central Excise Intelligence and Directorate of Enforcement.
To another query, the minister said there no information was available as regards distortion of real estate due to presence of terror-funds or black money in the real estate sector.
Palanimanickam further said the IT Department takes several punitive and deterrent steps to unearth unaccounted money and curb tax evasion.
These include scrutiny of tax returns; surveys, search and seizure actions; imposition of penalty; and launching of prosecution in appropriate cases, he said.
The minister said information technology is used in a "systematic" way for collection and collation of information to take anti-evasion action against tax evaders.
The investigation wing of the CBDT probes cases whenever any credible information about evasion of direct taxes is received