BIG BANG REALTY PUSH - Shapoorji Pallonji's Affordable Housing JV Gets Rs 1,280-cr FDI :The Economic Times

Group forms a joint venture with IFC, StanChart PE and ADB to develop 20 m sq ft of affordable homes

Shapoorji Pallonji Group has attracted one of the largest foreign direct investments (FDI) in India's affordable housing segment, with Standard Chartered Private Equity, World Bank member IFC and the Asian Development Bank committing $200 million, or about `. 1,280 crore, in a joint venture (JV) with the Mumbaibased conglomerate.

In addition, the multilateral funding agencies will provide a $50 million `320 crore) buffer fund which can be (.used by the JV that marks the $3.5 billion (.`22,400 crore) Shapoorji Pallonji Group's entry into affordable housing segment.

The JV will develop about 20 million sq ft of affordable home space in Mumbai, Pune, National Capital Region (NCR), Chennai, Kolkata, Bengaluru and Ahmedabad in the next eight years.

“For the last two years, we have been strategising our group's foray into affordable housing segment with a longterm perspective and therefore wanted to join hands with partners with a similar view,“ said Venkatesh Gopalkrishnan, chief investment officer and president-business development, Shapoorji Pallonji Real Estate.

Standard Chartered Private Equity , IFC and the Asian Development Bank will together hold 70% stake in the JV while the rest will be with Shapoorji Pallonji Group, he said.

The investment assumes signifi cance given its size and tepid FDI flow into affordable housing segment even after the government relaxed rules last year to draw overseas capital for real estate.

In October, the government reduced the minimum built-in area required in projects as well as capital requirement and eased the exit norms. It reduced the minimum built-up area to 20,000 sq metres from 50,000 sq metres while halving the minimum capital requirement to $5 million. However, barring a few completed project acquisitions, FDI inflow into real estate, including affordable housing segment, remained weak.

Experts expect FDI inflows to improve in the days ahead, though. “Interest for real estate as an asset class is rising globally and this capital will also flow into India. We expect the deal activ ity to pick up here on and affordable housing will be one of the key beneficiaries as fundamental demand drivers for this segment are robust,“ said Mona Chhabra, executive director, EY.

Under the terms of the JV , Shapoorji Pallonji Group will be responsible for identifying land parcels, acquisitions, approvals, execution and development. The JV company aims to create 20,000 affordable homes across the country . Its board will have four members from the three foreign investors while Shapoorji Pallonji will get two board seats.

“With our group's strong engineering, execution capability and trust the brand enjoys, we are ideally equipped to handle projects like these,“ said Jai Mavani, executive director, Shapoorji Pallonji Group. “With the government's push to `Housing For All', we are hopeful that players like us will get support from the government in terms of approval processes as it will serve larger needs.“

The group has already identified three land parcels for projects under this alliance. Of these, it has already acquired two land parcels which will be financed through the joint venture capital following an approval from investors.

“We will look at five more land acquisitions over the next two years. This is pure equity capital and will be used for acquisition of zoned and aggregated land parcels within municipal limits of cities. Our aim is to complete the land acquisition in two years and execute these projects in eight years from now,“ Gopalkrishnan said.

The JV company will come up with developments on the outskirts of cities, offering 1BHK apartments of 500600 sq ft and 2BHK apartments of 800 . 15-50 lakh per unit.900 sq ft, priced at ` The company will focus on tier-1 and tier-2 cities with project sizes in the range of 1.2 million sq ft to 5 million sq ft. The new entity will have a separate team to undertake the business and will launch projects under a new brand. The first affordable housing project under this entity will be launched in the next three months. The initiative is in line with ADB's country partnership strategy for India 2013-2017, which calls for increased private sector involvement in urban development, including affordable housing.

Over Rs 2,000cr spent, but potholes still emerge killer :The Times of India

Teen Pillion Rider Dies After Bike Hits Submerged Pothole on JVLR

Despite the BMC having spent over Rs 2,000 crore on road repairs prior to this monsoon, citizens report ed 2,000-plus June, and one of potholes since June, and one of these claimed has the life of a 16year-old boy from Marol. It was the first pothole-related death reported this year.

After completing his admission formalities at a Bhandup college on Tuesday , Prakash Bilhore was returning home with his cousin Ram (23) when the bike hit a water-filled 2ftwide pothole near MIDC-Seepz Gate No 3 on the Jogeshwari Vikhroli Link Road (JVLR).Prakash, who was riding pillion, got thrown off the bike.Passersby rushed the duo to Holy Spirit Hospital, but Prakash died en route. Ram was administered stitches on the left side of his head.

While the teenager's father Deepak claimed the accident took place due to the crater-like pothole, the police are yet to file a case. “We have made a diary entry of the incident. An FIR will be registered against the authorities concerned after we record the survivor's statement,“ said senior inspector Vi las Chavan of Aarey sub police station. “The cousins were returning home around 2pm after completing Prakash's first-year diploma admission formalities at Navjeevan Education Society Polytechnic College when the bike fell into a pothole.“ Ram told the cops that as it was raining heavily , he was riding the bike at a slow pace.

This year, the BMC website, http:www.voiceofcitizen.com, has recorded 2,330 potholes till July 30, of which 148 are on arterial roads. The maximum number of potholes--25--on main roads were reported from L ward, which covers Kurla and Chunabhatti. The BMC claims to have attended to 138 of these.

Of the 2,064 potholes reported on ward-level roads, the civic body claims to have attended to 1,925. The remaining complaints registered by citizens are on roads not managed by the BMC.

During this year's pre-monsoon work, the BMC had focused on repairs on main roads as well as junctions, including JVPD, Indian Oil, R C Marg and V N Purav Marg junctions, resulting in fewer pothole complaints on these stretches compared with ward-level roads.

TIMES VIEW

: A life lost in an avoidable mishap is tragic; any attempt to deflect the focus from the state of Mumbai's roads and blame other contributory factors for this death would be sadder still. This mishap should wake up our civic agencies from their stupor.

Parl panel wants jail for errant builders :The Times of India

Developers To Pay Interest At Par For Defaults

A parliamentary committee looking into the real estate bill has recommended penalty for defaulting realtors and even jail term of up to three years for repeat offenders.

The committee has also recommended several amendments to protect consumers, including provision of interest payable by both allottees and developers to be the same in case of any default by either party , making the transaction more equitable.

At present, while developers pay only 2-4% interest in case of their default, consumers are made to pay as high as 16-18% for their default. This has been the main reason behind huge number of home buyers dragging the developers to courts.

Reinforcing the existing penal provision of the NDA 's bill, the panel has also recommended that the violation of orders of the appellate tribunal by developers be treated as a “serious offence“ and that the penal provisions are inadequate. The present bill provides for imprisonment up to three years and or with fine up to 10% of the project cost. Similarly , if a real estate agent fails to comply with the tribunal's order, he can face imprisonment up to one year or with fine up to 10% of the cost of plot or apartment.

The panel in its report has mentioned that there was difference of opinion among members regarding imprisonment. Some had sought deletion of the jail provision and reduction of penalty to only 2%. However, these were rejected. Chairman Anil Madhav Dave said the recommendations aimed at making a law that will “promote good builders, punish errant ones“. The bill envisages setting up of a regulator for the realty sector.

The committee has also recommended that at least 50% of the investors' money be kept in a separate account only for the specific project and it's up to states to hike this minimum amount.

The panel has also redefined “carpet area“ as the net usable floor area of an apartment, excluding the area covered by external walls, areas under services shafts, exclusive balcony or verandah area, and exclusive open terrace areas, but includes the area covered by internal partition walls of the apartment. It is aimed at curbing the tendency of builders to include the balcony in the carpet area.Similarly , the panel has defined car parking garage and other service areas so that there is no confusion between the actual conveyed carpet area and other ancillary areas.

“The panel's recommendation have judiciously detailed out the responsibilities of both the consumer and developer and has ironed out many of the malice, which are prevalent in current build-buyer deal,“ said Sudhir Vohra, architect and urban law expert.

WEAKENING SALES, RISING INVENTORY TAKE A TOLL ON DEVELOPERS - Honey, They Shrunk the Houses :The Economic Times

Realty players tweak product strategies, construct smaller apartments to make them affordable to buyers

Weakening sales and rising inventory levels in the backdrop of unaffordable housing prices are pushing realty developers to tweak their product strategies. Builders across markets are constructing apartments with smaller configuration with the aim to make houses affordable for buyers by reducing average apartment size rather than reducing capital values.

Mumbai Metropolitan Region (MMR), including Mumbai, Thane and Navi Mumbai, registered the maximum fall in apartment sizes on an annualised basis in the past five years, along with Bengaluru, Chennai and Kolkata. In Mumbai, which is already known for smaller and compact houses, has seen the average apartment size shrink 26.4% in the past five years. The average size of residences in Bengaluru, Chennai and Kolkata has also been reduced by 22-24%, a study by property consultancy JLL India revealed.

“Builders are exploring innovative ways to make residential housing across major cities more appealing to potential buyers at a time when it is becoming increasingly difficult to sell expensive apartments. They are emulating the famous sachet marketing strategy adopted by FMCG companies in the late '90s,“ said Anuj Puri, chairman & country head, JLL India.

While property prices are not purely a product of developer's discretion, the decision to alter apartment sizes as per the needs and spending power of buyers is definitely within their ambit. “Developers are looking at bringing in more efficiency into their offerings by focusing on what is genuinely required by consumers and to ensure the least amount of space wastage. Impractical luxury is something not everyone can afford,“ said Sunny Bijlani, director, Supreme Universal. “Given the rising input costs and various premiums and levies to be paid, per sq ft pricing is not completely controlled by builders, but offering smaller configurations can bring the total price down.“

The report states that several urban buyers are looking for new homes near their offices, which could be smaller in size. They prefer a house that is “sufficient“ enough for family requirements. This does not mean that they are compromising on their lifestyle; they prefer a compact home with basic amenities.

Buyers are increasingly opting for homes that are closer to their work places in order to reduce commute time. As these locations are more expensive than suburbs, buyers may be able to afford smaller units, which is more than acceptable. To enjoy the luxury of bigger homes with good amenities, consumers prefer to buy homes in peripheral areas of cities from where the concept of second homes is emerging at the outskirts of cities.

BMC to spend Rs600 cr for coastal road report review : Hindustan Times

MUMBAI: The civic authorities are in the process of appointing a firm to review the draft detailed project report (DPR) on the coastal road, an exercise which will cost them up to Rs600 crore.

While this amounts to 5% of the total cost of the project, the Brihanmumbai Municipal Corporation (BMC) claims this step is necessary to ensure the accuracy of the report. The Rs12,000 crore project will be based on the DPR.

Civic officials said as part of the review, the feasibility of construction methods suggested in the DPR will be checked. They added that the reviewer will also verify the feasibility of constructing two under-sea tunnels as suggested by the report.

The BMC floated expressions of interests for the peer review (third-party audit) on the DPR earlier this month and around 12 companies have responded. The tenders are expected to be floated within a fortnight.

A senior official, on condition of anonymity, said, “We do not have a detailed report on the under-sea tunnels. By appointing a firm to review the DPR, we hope to carry out an undersea study that will give us an idea about building tunnels in the sea. This process will cost around Rs600 crore, which is 5% of the total project cost.”

At present, the deadline for the suggestions and objections on the draft DPR has been extended to August 27. BMC sources said the tender conditions have been made stringent and only companies that have expertise on international projects (excluding Indian projects) will be applicable for the peer review.

Another official, on request of anonymity, said, “Most of the companies that are interested in reviewing the DPR are international companies have studied and designed foreign projects. Tenders will be floated after which standing committee will appoint the lowest bidder. The entire process will take a one month’s time.”

Sanjay Mukherjee, additional municipal commissioner in-charge of this project, said, “Around 12 companies have so far expressed interest in peer reviewing the draft DPR on the coastal road project.”

Houses of 500 sqm may come under real estate bill :Hindustan Times

NEW DELHI: In a move that could provide the much needed shield to even small property buyers, a Parliamentary panel has recommended that all housing projects where the land exceeds either 500 square metre or there are eight flats in a plot should be brought under the proposed Real Estate (Regulation and Development) bill.

The panel headed by BJP MP Anil Madhav Dave submitted its report to the Rajya Sabha on Thursday. The original bill mandated builders developing a project where the land exceeds 1,000 square metre or above to register with the real estate regulator before launching or even advertising a housing scheme.

The panel has also recommended that a builder cannot divert less than 50% of money collected from buyers to other projects. States, however, would be free to raise the ceiling but not lower it. The original bill, drafted by the UPA government, had mandated that developers cannot divert 70% of the money to other projects.

All penal provisions that were part of the original bill have also been retained. Developers could be penalised 10% of the project cost or three-years imprisonment for failing to disclose project information.

However, the bill is likely to run into rough weather as the Congress, CPI(M), AIADMK and SP members — who were part of the panel — have dissented to some of the panel’s recommendations.

‘Build pedestrian bridges, ban heavy vehicles’ : Hindustan Times

THANE: Eighty percent of the congestion problem at Kalwa junction will be resolved if authorities bar entry for heavy vehicles and impose strict penalties on illegally parked vehicles and autorickshaws at the junction, according to transport experts in Thane.

Engineer Satyajit Shah, who has been working on the issue of traffic congestion at the Kalwa junction for more than three years, said the junction is in dire need of a foot overbridge for pedestrians.

“There are several problems ailing the junction. The lack of foot overbridges has added to the problem. Pedestrians have to cross a l arge stretch of the road by dodging heavy traffic,” Shah said.

A traffic signal is the need of the hour to bring some order at this chaotic junction, he said.

At times, the line of vehicles stuck in traffic extends from the junction, all the way to Saket and the Thane Central Jail during peak hours.

“Another problem is the haphazardly parked municipal, as well as private buses on one of the two lanes of the road — the area one would encounter after taking a right from the Old Kalwa bridge,” Shah said.

“There are autorickshaws also parked here, leading to the bunching up of vehicles, which are now forced to move in a single lane. These bus stops and auto stands should be shifted by 150m to 100m towards the ThaneBelapur Road,” he added.

Vikrant Tawade, who had f iled a public interest litigation in the Bombay high court (HC) in 2006, said the court’s order to ban heavy vehicles from the junction should be implemented immediately.

“In 2008, the court had asked the traffic department to shut the junction for heavy vehicles. Although the traffic department has closed the junction during the morning and evening peak hours, it has not been able to stop the movement trucks and other heavy vehicles completely,” Tawade said.

He suggested that a four-foot high barrier be installed at the Saket lane — the route that is popularly used by the heavy vehicles.

Such a barrier has been installed at the Thane station to stop buses and trucks from entering the station area.

“Most local trucks are headed to the Jambli naka market. If the market is shifted to a reserved plot at another location, trucks will not have to enter the city at all,” Tawade said.

Another flaw with the planning of the junction is that the dividers from the roads leading to it end too close to the junction, therefore crowding the circle.

“Shifting t hem a little f urther behind will ensure the smooth flow of traffic at the junction, Tawade said.

Tawade pointed out that the high court suggested the setting up of a traffic monitoring committee.

“The court had also advised a traffic monitoring committee to be set up to study the Kalwa junction and work out specific solutions to ease the congestion,” said Tawade.

Policy to revamp crumbling BDD chawls to be framed : Hindustan Times

Thepeople are living in dangerous conditions and the structures (BDD chawls) can collapse anytime. Redevelopment is the only option. BHAI JAGTAP, Congress legislator

MUMBAI: The state government will frame a policy to revamp BDD (Bombay development department) chawls in the coming months. This was announced in the Legislative Council during the ongoing monsoon session on Wednesday.

Chief minister Devendra Fadnavis will hold meetings with the stakeholders within a fortnight to expedite the process. This direction was given by Ramraje Nimbhalkar, the chairman of the Legislative Council, after the members complained that residents of these chawls were living in dilapidated conditions and risking their lives in the process.

“The state should study the situation and bring forth a policy on the redevelopment of the BDD chawls in the winter session,” said Nimbhalkar.

He also directed the chief minister to hold a meeting with all stakeholders and pursue the matter.

Housing minister Prakash Mehta said the survey will be conducted in the next three months. “We will draft the policy based on this survey,” he said.

The BDD has 207 chawls in prime locations such as Naiguam, Worli, Lower Parel and Sewri. The state claims this as one of the biggest redevelopment projects in the city, aiming to replace the crumbling chawls into a plush township.

The chawls were built between 1920 and 25 by the then British government to facilitate low-cost housing for the poor.

At present, the residents continue to live in a shambles in the dilapidated structures that have leaking walls and crumbling ceilings.

Congress legislator Bhai Jagtap said the state government needs to understand the urgency of the matter. “The people are living in dangerous conditions and the structures can collapse anytime. Redevelopment is the only option and so it should be carried out at the earliest,” he said.

Year on, Malin victims still homeless : Hindustan Times

Those affected not happy with the rehabilitation site offered or the funds the government is offering them

PUNE: The state government’s ambitious plan to make Malin village, where 151 people died in mudslide a year ago, a ‘model of rehabilitation’ is stuck in its own rules, forcing affected families to live in temporary sheds without basic amenities.

While the government has identified an eight-acre plot for the rehabilitation of 70 families who lost their homes in the landslide, the affected people are reluctant to shift or enter into any agreement with the government for two reasons – they feel the plot, in a hilly area, is unsafe, and the compensation being offered is too less.

Shaken by the tragedy last year, people are unwilling to settle in another hilly area. Government officials express their helplessness. “The entire area is hilly. There is no table land in this area. We will have to level the earth of we want a flat plot, but after the landslide, the government is reluctant to tamper with the area’s natural topography,” said a government official.

The government has formed a cooperative housing society to complete the legal procedure of handing over land and constructing houses. But the victims say the sum of Rs2 lakh, which they are being offered to build houses, is inadequate. They also complain the plan has no place for a cattle shed, an important part of their lives.

According to provisions of the Rehabilitation Act, Rs2 lakh is the maximum amount that can be disbursed. While the district administration has asked to treat Malin as a ‘special case’, no decision has been taken.

In the meantime, affected families continue to live in 100 square feet temporary tin sheds, without basic facilities such as wash rooms, drinking water and a proper approach road. Vithoba Dangat, who has been staying in a temporary shed said, “We cannot forget past and are not sure about future. Theses sheds will never withstand heavy rains and gusty winds. How can we take shelter here?”

Cabinet clears Rs 20,000-cr infra fund, consumer protection bill :The Times of India

The Cabinet on Wednesday approved setting up of Rs 20,000 crore National Investment and Infrastructure Fund (NIIF), a sort of sovereign fund, for development of infrastructure projects, including the stalled ones. It also cleared the Consumer Protection Bill which seeks to create an authority for fast-tracking redressal of consumer grievances.

The Cabinet chaired by PM Modi also approved the proposal to allow foreign investment in Alternative Investment Funds (AIFs) set up under the Securities and Exchange Board of India (SEBI) regulations to facilitate domestic investment.

The NIIF is being established to maximize “economic impact“ mainly through infrastructure development in commercially viable projects, both greenfield and brown field including stalled projects. The fund could also consider funding national y important projects in the manufacturing sector.

Sources said that the Consumer Protection Bill is likely to be introduced in the ongoing monsoon session. Some of the key features of the bill include product liability and provides enough powers to the regulatory authority to recall products and cancel licences, if any consumer complaint affects a section of consumers. The bill provides for stringent penalty , including life imprisonment in certain cases and sufficient provisions for protecting e-retail consumers.

Govt wants death penalty for hijackers

India will soon have join the club of countries with most stringent punishment for aircraft hijackings.

Led by PM Narendra Modi, the Union Cabinet met on Wednesday and approved amendments to the anti-hijacking bill 2014, paving way for death penalty for the hijackers and their associates if even an airport or ground handling personnel gets killed during such an act. Before this change, hijackers would have got death sentence only if a person onboard the hijacked aircraft--passenger or crew-got killed in the act.

Also the definition of hijacking per se has been enhanced. “The definition of hijacking has also been made broad-based, which is now in line with the Beijing Protocol. The scope of the period of hijacking is broadened from in-flight to in-service, besides including the conspirators,“ said an official. The Anti-Hijacking Bill, 2015 has broadened the area of jurisdiction as well. Now, it provides for putting on trial the hijackers in case the offence is committed against or by an Indian citizen onboard anywhere irrespective of the country, increasing its jurisdiction. 

Bldrs booked as crash toll reaches 9, mayor to press for cluster devpt :The Times of India

The toll in the building collapse in Cholegaon of Thakurli, a suburb of Thane, has gone up to nine while 10 others are being treated for injuries.The ground-plus-two storey Matrukrupa building collapsed around 10.30pm on Tuesday .Though parts of the structure had started collapsing as early as 9.45pm, residents continued to stay put only to be jolted when the building came crashing down in the next few minutes.

On Wednesday , the Ramnagar police registered a case against three builders--Dhruvpada Patil and her two sons Ramdas and Sharad--under sections 304 (culpable homicide not amounting to murder), 338 (causing grievous hurt by act endangering life of others) and 34 (common intention) of IPC.

Sanjay Jadhav , DCP zone 3 of Thane police, said, “In his complaint, ward officer Vinayak Pandey alleged that the KDMC had issued five notices to the builders, asking them to either repair the building or demolish it. But they did not take any action, which led to the building collapse.“

The part of the building that collapsed was constructed 43 years ago and had 18 rooms in it.An annexe was constructed later on, adding nine more rooms.Though the structure was declared dilapidated by the KDMC in March last year and again in May this year, the residents--mostly from the lower income group--refused to vacate it as they had nowhere else to go.

As the building caved in, locals rushed to help those trapped inside. Fire brigade teams from Mumbai, Thane and Ulhasnagar along with KDMC's disaster management cell and NDRF assisted in the rescue operations that lasted till 12.30pm on Wednesday .

After the rescue operation, .

the KDMC's anti-encroache ment team started demolishing d the rest of the structure. Many residents tried to resist the demr olition and requested the offi cials to allow them retrieve e their valuables and documents.

Suman Balan and his sibling Jayapriya, who recently cleare ed their board exams, were seen e pleading with the officials to e help them collect their mark h sheets. The survivors said t though the structure had ale ready started showing signs of d dilapidation, the prohibitive re al estate prices in the region did , not allow them to move out of Matrukrupa. “We know it could be our turn tomorrow, but what can we do? Real estate prices in Dombivli and Kalyan are beyond our reach,“ said a resident of another dilapidated building Local corporator Srikar Chaudhari said he will demand a survey of all structures in his ward at the earliest. KDMC mayor Kalyani Patil said she will request the district guardian minister to press for cluster development and an FSI of 4.Survivors of Matrukrupa are being housed temporarily at a community house in the area, said a senior KDMC official. Congress MLC Sanjay Dutt on Wednesday drew the legislative council's attention to the Matrukrupa building collapse, stating that the KDMC was doing nothing in cases of dangerous buildings except serving notice on them. Dutt also said there was no permanent arrangement of transit camps.

MNS leader Rajesh Kadam claimed that the KDMC's disaster management cell reached the spot late and did not have basic equipment. He said he will urge the KDMC chief to impart special training to the disaster management team.

JCB machine crushes boy by mistake

The Jhanjhurakias lost their 9-year-old son, Kartik, in the building crash. Though Kartik and his 19-year-old sister Hetal managed to call their parents from their phones, the boy's location could not be traced in time. By mistake, a JCB machine involved in the rescue operation went over the same spot where Kartik was stuck and crushed him to death. At the time of the mishap, Hetal was in the hall while Karthik was stuck inside the bathroom.“Both were continuously calling for their parents for help,“ said local resident Rajesh More. 

KUMBH CITY TO SMART CITY :The Times of India

Witnessing infrastructural growth in a planned manner, Nashik is emerging as a strong contender in the Make-in-India campaign

The city has come of age. In sequel to the process of giving impetus to industry, agri culture, trade and commerce that started a couple of decades ago, an all new Nashik is taking shape. This holy town has grown from strength to strength transforming itself into a full-fledged industrial city.

To top it all, the city has been included in the list of first 100 Smart Cities to be developed in the country, and the promoters and developers here are pushing the administration to ensure Nashik makes it to the first phase the ambitious programme.

Time and again, Nashik has been pitched as an excelled destination for investment and growth. Factors which make it suitable for futuristic growth are ample.

A new initiative taken by CREDAI-Nashik is that they are promoting reversal of brain-drain.Elaborating on it, Anant Rajegaonkar, immediate past president of CREDAI-Maharashtra, says, “Nashik is taking lead in reverse braindrain. We have lost a lot of potential talent and now the initiative is underway to get it back by shaping the city as a talent hub.“ “By reverse brain-drain, it is meant that an all level intervention is being planned to make Nashik a suitable place for the upcoming talent filled with international universities, research institutes for clinical researches and biotechnology, adds Rajegaonkar.

A fine example of the same is Kumbhathon, a year-round innovation sandbox that has created a platform to identify and address the challenges of the 2015 Kumbh Mela in Nashik, with a broader vision to address similar issues in developing countries across the world. The initiative was conceptualised by Sunil Khandbahale and Dr Ramesh Raskar. This is a movement to impact new ventures and empower digital citizens of India. “Nashik can be the next 'start-up hub' of India, following the footsteps of Bengaluru,“ Rajegaonkar adds. “Nashik has great potential to develop as the `Knowledge city' of this state. The Mumbai-Nashik corridor can be developed as knowledge corridor with a lot innovation based industries coming up in this patch. While also this region is the most fertile for agro-tourism,“ opines Naresh Karda, Director, Karda Constructions.

According to him, Nashik is suitable for an overall growth because its growth is planned.''The Regional Plan (RP) and Development Plan (DP) are both being meticulously chalked out keeping all the verticals concerned in the loop.Since both these plans are under process, it has been noticed that a good network of roads is being planned,“ he says.

The planning is such that all aspects of a livable city are taken care of and population growth upto 2040 can be accomodated. Under the new DP, a dedicated transport corridor, a dedicated bicycle track and river development are on. The administration is taking care that mistakes, which occurred during the planning of other cities like Pune, Bengaluru and Hyderabad, are not repeated here. For instance, the public transport networks in Pune and Bengaluru have never been established, thus leading to a traffic chaos. “Residents in Bengaluru, Pune and Hyderabad are known to get water via tankers but this `tanker' culture would never be a reality in Nashik, because of the ample of water bodies around the city and good rainfall,“ says Rajegaonkar.

The 2014 Budget had laid out a roadmap to the Prime Minister's vision of developing 100 Smart Cities. Cities along the Delhi-Mumbai Corridor were identified after which Arun Jaitley, Union finance minister, announced that they would be developed as satellite towns of larger cities. “The central government has recently announced a policy, according to which, industries, educational institutes, IT and tourism related activities would be allowed to be operated on green-zone land or even no-development zone. This step has opened gates for the huge amount of locked-up land. Also Nashik has ample of open land, which is supported with good supply of industrial power and water,“ shares Rajegaonkar.

Conversion into a Smart City would attract big IT firms and other industries. As it is, Nashik boasts of a climate which none of its adjoining cities offer. In fact, it has emerged as a weekend destination. People from cities like Mumbai and Pune are looking out for their second homes here. “All the fundamentals for Nashik are very good. Allowing industries to come up on green-land is going to be helpful, and these factors would help Nashik climb up the ladder,“ shares Ashish Katariya, Director, Ashoka Buildcon. “Investments can flow in, but investors need to be given a feeling security when set their foot on the land of Nashik,“ adds Katariya.

According to realty experts, a huge magnitude of construction and ongoing developmental activities show a clear upswing. The real estate market has gained momentum.

Property rates are expected to rise in the next few months. Consequently, a property buyer is now in a win-win situation, as one can surely hope to seal a good deal. Besides property rates going up, there would be an increase in the sale of the stock. This will lead to overall buoyancy. For the homebuyers too, this is an excellent opportunity, as competition would make it a buyers' market.

With people migrating to the city from nearby places in search of jobs, budget homes are slowly gaining ground. The next two years may see a lot of budget homes coming up. This stock is lesser in quantity at present. “Strategic location of the city with abundant water supply has made it one of the most sought after real estate destination, be it in the form of residential or commercial properties. Already there are NRIs or past residents of Nashik who are willing to settle back in Nashik due to its climate,“ opines Shrikant Gayakwad, Director, Shriprakash Developers. The climate here will stay serene due to its presence amidst mountains and the height above sea-level.

`Home Sales Decline, But Demand for Office Space Grows' :The Economic Times

Trend is likely to continue for the next six months, says Knight Frank

India has seen a 40% drop in residential project launches and 20% dip in home sales in the past one year, according to a report by property advisory firm Knight Frank which points to continuation of the slide that the market has seen for the past 30 months.

The demand for office space has, however, revived in most parts of the country owing to a stronger ITITes sector and growth of tech startups and ecommerce companies.

In the first half of 2015, according to the report, NCR was the worst hit with a 68% plunge in the number of new residential projects to 11,360 from 35,500 in the year-ago period while sales fell 50%.

“This slump indicates that residential real estate is facing a strong price resistance against unattractive and unaffordable prices,“ the report said about the NCR market.

The trend is likely to continue for the next six months, Knight Frank said in the report.

“Developers are holding back on new launches and are realising that they should focus on completing their under construction projects,“ said Shishir Baijal, chairman and managing director of Knight Frank India.

The continuing slowdown notwithstanding, the NCR market had a silver lining in that sales in the first half of 2015 were 18% more than the preceding six-month period, which included the peak selling festive season.

At the current pace of sales, the 189,678 units in the NCR will take over five years to sell.In comparison, the Mumbai Metropolitan Region had 194,510 units that will take over three years to exhaust.The total number of unsold units across the country stood at 706,900, which will take over three years to sell, according to the report.

The growth rate of weighted average price in the NCR has been falling since 2013, from 6% in the first half of 2013 to a mere 1% in the first half of this year. “That means a correction on an inflation adjusted basis,“ said Rajeev Bairathi, executive director-north and capital markets at Knight Frank India. “In the secondary market, prices have corrected by 1520%,“ he said.

The demand for office space was, however, higher during the six months than the yearago period and vacancy levels saw a sharp decline across Mumbai, Pune, NCR, Bengaluru, Chennai and Hyderabad.

The weighted average rental growth in the first half of 2015 was 8% compared to about 4% in the year-ago period and 2% in the first half of 2013.

“Reaching a stage of shortage of good quality office space, vacancy rates have gone down and the market has become favourable for landlords with quality spaces,“ said Baijal.

The office market in the NCR improved during the period, with 3.7 million sq ft of space taken up. “On the demand side, office leasing in NCR saw a marginal increase of 6% in H1 2015, compared to the same period in 2014,“ the report said. Bairathi said that rentals in the NCR appreciated faster than in Bengaluru and Mumbai due to reduced supply .

Monorail production to start in Aug

Finally, the rake production of Mumbai Monorail will commence next month by Scomi Engineering in their Malaysian manufacturing plant. The production was stalled due to a series of technical glitches in the year-old system.

dna was first to report about the problems derailing the new technology in India. Mumbai Metropolitan Region Development Authority (MMRDA) then decided to temporarily halt production of the remaining five trains. This decision was taken six months ago.

“In a month’s time, possibly from August, production of the remaining five monorail trains will commence. We have finalised the list of changes that need to be done in the remaining rakes and these modifications will be incorporated. After the modifications which were done here, there haven’t been any technical glitches with the monorail system,” said a senior MMRDA official.

In another six months, all the remaining five rakes are expected to be shipped to Mumbai. Thereafter, these new trains will be commissioned when the second phase of monorail between Wadala Depot and Sant Gadge Maharaj Chowk, also known as Jacob Circle or Saat Raasta, is ready. The first phase between Chembur and Wadala Depot was inaugurated in February 2014. August 2016 has been marked for completion of the second phase.

Out of the 10 trains in Mumbai, two have been kept without any machinery inside them. Their equipment have been cannibalised and used to repair the problematic trains. Therefore, Scomi Engineering will also have to ensure that body shells of Rolling Stock Train Number 2 and 3 are supplied and commissioned as they are under the defect liability period.

At the moment, 85 per cent work on the second phase of the monorail is complete. The missing link over Currey Road rail lines is scheduled to be constructed in the second half of August.

State to frame policy for redvpt of 207 BDD chawls

The Maharashtra government has decided to frame a new policy in order to redevelop 207 Bombay Development Department (BDD) chawls. The policy will be tabled in the next winter session for the approval of the state legislative council. The BDD chawls are over 93 years old.

Chief Minister Devendra Fadnavis said the state government is committed to redevelop the old and dilapidated buildings. “Each family should be rehabilitated by offering satisfactory area. We will start preparing the policy and it will be tabled before the council in the winter session,” said Fadnavis.

The 207 buildings are spread over 93 acres of land in Worli, Dadar (E), Sewri and Lower Parel. Each building has 80 rooms. The buildings fall under the purview of the PWD.

The buildings were constructed in 1920. Most of them are dilapidated and need to be redeveloped as soon as possible. The proposed policy will be applicable to all BDD and BIT chawls, Mhada buildings in the city as well as Rajiv Gandhi Awas Yojana, Indira Gandhi, Shabari, Ramai Awas Yojanas in Mumbai, Thane, Kalyan-Dombivli, Ambarnath and other parts of the state.

The government has the goal of building 11 lakh affordable homes under the policy.

`Mumbai Metro Region Stuck with 2 Lakh Unsold Flats in H1' :The Economic Times

New housing project launches down 47%, but commercial property turns around: Knight Frank

The housing market in the Mumbai Metropolitan Region (MMR) has recorded its worst halfyearly performance since the global financial crisis of 2008, according to a report by property advisory Knight Frank India. The MMR -a 4,355 sq km area comprising municipal corporations of Greater Mumbai, Thane, Kalyan, Navi Mumbai and Ulhasnagar -had around 2 lakh unsold homes in the six months to June, the report said.

According to the report, the last two-and-a-half years saw a continuous fall in launches and sales across Mumbai, the National Capital Region, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. Mumbai, the most expensive property market in the country, saw a 47% drop in new housing project launches during the first half of the year.

Over the last two years, demand in Mumbai fell 30%, while launches plummeted nearly 70%. The luxury residential market with a price tag of over `. 5 crore per apart ment has also run into rough weather and not seen any new launches in the last six months.i Knight Frank, however, said the residential market in central Mum bai and central suburbs posted a good growth from a year ago. In t MMR, builders have been venturing into locations beyond Thane for affordable housing projects.Around 59% of new launches with , a price tag below `. 25 lakh are in Kal wa, Kalyan, Dombivali and Ambart nath. Locations like Mulund, Kan jurmarg and Chembur have seen big launches, contributing 28% of new launches in these six months.

The report also added that commercial property has turned around, driven by office space pick-up by companies in ITITeS, banking and financial services sectors. “We expect Mumbai to clock office transactions of 7.7 million sq ft during 2015,“ said Samantak Das, chief economist and national director, research at Knight Frank India.

“Residential market is still reeling under tremendous pressure, with a drastic drop in new launches at the back of falling demand. The recovery of the residential market does not seem imminent until 2015 and we expect sales to be in the range of 63,000 units, which is marginally below the 2014 levels.“

Mumbai’s grim realty: Launches at 7-year low : Hindustan Times

MUMBAI: The city’s real estate sector is going through one of its worst phases. This year, it recorded the lowest number of new launches since the realty slowdown began in 2008.

A report by real estate consultancy firm Knight Frank India found the number of new launches in the Mumbai Metropolitan Region (MMR) during January-June this year declined by 47% — 18,887 units compared to the 35,512 units launched in the corresponding period last year. The number of sales also saw a drop — 28,447 units were sold during January-June 2015 compared to 31,210 units last year.

The MMR consists of Mumbai, Navi Mumbai, Thane and Raigad.

According to Samantak Das, chief economist and national director-research, Knight Frank India, various factors have led the realty sector to stagnate.

 “Builders are facing shrinkage in funds and are saddled with a huge pile of unsold inventory. The confusion in the DP (Development Plan) has added to the crisis,” said Das. The findings also point out that more than two lakh houses remain unsold in the MMR. “It will take at least three years to clear this stock,” said Shishir Baijal, chairman and managing director, Knight Frank. He said the next few months will be crucial. “There will be turmoil if things do not improve in the coming months,” he said. Unaffordability also still influences the market, he said. “Buyers still feel that the prices are unaffordable.” Other reasons outlined are the buyers still lack confidence in the economic condition and also the ability of the builders to give possession of the apartments on time.

The Maharashtra Chambers of Housing Industry (MCHI), the apex body for builders, however, disputed the findings. “There are steady sales taking place across the board and sentiments have improved this year,” said Dharmesh Jain, president, MCHI. “Builders are not launching new projects because of issues such as permissions and many are waiting for the DP to come. It has nothing to do with their ability to launch the projects,” he said.

The real estate sector has is in slowdown mode ever since the global financial crisis hit in the year 2008-09. Builders increased prices to exorbitant levels causing many homebuyers to postpone their purchase plans. In addition, the RBI tightened lending norms and hiked home loan interests causing a huge burden to the buyers.

BMC: Linking Road malls violating fire safety rules :The Times of India

Several malls in and around Linking Road in Bandra (W) have been committing gross violations of fire safety rules, revealed an inspection by the BMC. A former Congress minister has a stake in one of the malls.

The BMC's inspection team examined Shreeji Plaza, Link Corner, Crystal Shoppers Paradise, Link Square and New Beauty Centre. At one of the malls, the team found that the owner had constructed an additional floor without permission. At another, a shop had been converted into 24 shops with partitions. The BMC plans to issue notices to these establishments.

“Linking Road is a crowded area and such acts of negligence can lead to serious accidents. Mall owners and shopkeepers are risking their and others lives,“ said an official.

The most common violations are conversion of basement parking into shops or storage areas, including balconies into useable areas and operating shops from illegal mezzanine floors.

Last week, a fire broke out at Kenilworth Mall on Linking Road. Since the incident took place before the shops inside the mall opened for business, a tragedy was averted. Fire brigade personnel had said several shops in the mall had made illegal alterations and unauthorized units in the basement obstructed firefighting. Following the incident, civic chief Ajoy Mehta had held a review meeting and directed inspection of all the malls.

Planners account only for cars, cabs on coastal road :The Times of India

But State Govt, BMC Promise Bus Corridors

The firm, STUP Consultants, that prepared the detailed project report (DPR) for the coastal road has indicated that the route will be used mainly by cars and taxis.

While the state government and the civic body have been emphasizing that the coastal road will have a bus rapid transit system (BRTS), the report, by not considering other vehicles, including buses, lays bare this lie.

“The DPR identifies the merits of BRTS as a concept... but while making traffic estimates, it indicates that due to the negligible volume of other traffic, only cars are considered while estimating and planning for the traffic using the coastal road. The entire project being in public interest is an eyewash,“ said a transport expert.

The draft report has estimated a fleet size of 600 highcapacity buses to run on the coastal road. The DPR lists a plan to mark one lane on either side of the road in red, to indicate these are dedicated bus lanes. Buses, autos and two-wheelers will be relegated to using primarily the existing road network. “The BMC, which does not have money to upgrade BEST, will spend Rs 12,000 crore on the project to cater to 1.2 lakh cars or two lakh people only ,“ said an activist.

Activists said their argument that the coastal road will have few takers has been reinforced by the DPR. The consultant firm has pointed out that owing to “abutting land use and limited access to the facility (coastal road), the growth rate will be lower (2% per annum up to 2043), while traffic along existing roads will grow at 5.5% per annum (10% higher).“

“The DPR doesn't consider the railand bus-based alternatives (offering comfort, speed, frequency for all). This saves a lot of fuel and reduces emissions and hence there are opportunity costs but the DPR is naive on this score,“ the added the activist.

Housing market in Mumbai region still dragging feet :The Times of India

The Mumbai Metropolitan Region (MMR) residential market saw its worstever performance this year since the post global financial crisis era, said a Knight Frank report released on Tuesday .

Absorption and new launches shrunk 22% and 30% respectively between January and June 2015 compared to the previous six months between July and December 2014.

“Housing sales of 28,446 units and new launches of 18,887 units made this year the worst half-yearly period in the post global financial crisis era,“ it said. The report said Mumbai has nearly two lakh unsold homes even as sales continue to slide and that confusion over Mumbai's new development plan has impacted approvals for new projects.

“The unsold inventory declined from 2,04,070 units in July-December 2014 to 194,510 units in January-June 2015, mainly on account of a sharp reduction in new launches,“ said the report.

Investors too have little interest in real estate due to suboptimal returns in comparison to other asset classes like equity and debt, it said.

The maximum sales were reported in the central suburbs (31%) and western suburbs (21%) during the first half of 2015. “The peripheral central suburbs is the largest market in the MMR in terms of quantum of under-construction housing units (27%) while the western suburbs ranks second with 20%,“ said the Knight Frank report.

“Residential market in Mumbai is still reeling under tremendous pressure with drastic drop in new launches at the back of falling demand,“ said Samantak Das, chief economist and national director, research, Knight Frank.“Recovery does not seem eminent until 2015 and we expect sales to be in the range of 63,000 units, which is marginally below the 2014 levels,“ he added.

In the MMR, property prices increased by 2.5% so far in 2015 compared to 8% in the same period last year. “We forecast stagnant prices over the next six months,“ it said.

With an average house price of Rs 5 crore, the premium market too has been struggling in Mumbai. “Reeling under pressure of a high unsold inventory , these markets witnessed a drastic reduction in new launches. After 121 units in the second half of 2014, new launches dried up in the first six months of 2015,“ it said.

In the office market, MMR witnessed an absorption of 2.5 million sq ft in H1 2015, down 48% in contrast to H2 2014.

Will sell Thane SEZ flats only to IT staffers from area, developer assures green tribunal Anil Shinde :The Times of India

Developer Hubtown Group has given an undertaking to the National Green Tribunal that they will sell flats in their proposed Sunstream City project in the IT special economic zone (SEZ) at Kopri in Thane (E) to only those working in IT companies within the project area.

In 2013, the area was given the status of IT SEZ and several sheds were constructed. Paryavaran Dakshata Manch, a Thane-based environment advocacy group, in 2014, filed a plea before the NGT for restoration of wetlands in Kopri village, Thane (E) and reversal of CRZ notifi cation from CRZ III back to CRZ I. The advocacy group had recently brought to the notice of the NGT an advertisement announcing the construction of a residential project in the area and expressed fear that third party interests would be creat ed. An advocate for the project proponent told the NGT that flats would not be sold to those working in IT firms outside the area or in other places.

D Stalin, director, NGO Vanashakti, said that in 2006, the Union ministry of environment and forests had initially rejected the Rs 3,000-crore SEZ as the project site (54.23 hectares) was on land classified as CRZ I. Subsequently , on recommendation of the Maharashtra Coastal Zone Management Authority , the ministry allowed the site to be reclassified as CRZ III (relatively undisturbed coastal zone, including rural coasts) and approved the SEZ project in December 2006.

After Rahul Quake, Housing.com to Rebuild Foundation :The Economic Times

Realty portal aims to close down some business units and renew its focus on building new products to generate advertisement revenue

Realty portal Housing aims to close down some business units and renew its focus on building new products to generate advertisement revenue as the two-year-old company regroups after recent upheavals in its top management.

The Mumbai-based company plans to close four of seven business units in a bid to reduce costs and focus on innovation and revenue generating businesses, according to three people privy to developments at the company which is backed by Japan's SoftBank.

“Some products and initiatives like short stays, and commercial have been shut down,“ said a senior company executive who did not wish to be identified. “The company has a targeted focus on monetisation and rolling out revenue generating advertisement products,“ he said.

These moves follow the failure of talks between Housing and classifieds listing company Quikr for a possible acquisition. “The price that Quikr was willing to pay was much lesser than Housing's asking price,“ said one person who briefed ET on the matter.

ET earlier reported that Quikr was in talks to acquire Housing for up to $175 million in a cash-andstock deal.

“Housing, from inception has been committed to technological innovation as its strategy, we continue to bring clear focus on our core product as we work towards excellence in deliveries,“ the company said in a statement.

The need to stem costs and reorient the strategy at the company follows months of internal turmoil which culminated in the ouster of former chief executive officer Rahul Yadav earlier this month.

“The board is helping the company achieve targets with respect to productivity, monetisation and a lean team. After that, they will de cide if selling is a better idea or op erating as a separate entity. That option is open,“ said an investor in Housing.com who briefed ET on the developments.

SoftBank, which owns about 32 % stake in the company, has also agreed to invest another $30 mil lion in the company as a bridge round, provided Housing meets certain operation targets in the next three months according to SIDDHARTH sources.

“Now after a chaotic 3-6 months the company is now getting its fo cus back to the core. Innovating technology and focus on primary and secondary products and mone tisation,“ said a second company executive.

Softbank declined to discuss the specifics of its funding plans for the company only writing, “like other investors, SoftBank remains involved in decisions to ensure smooth operations at Housing and (to) help maximise its potential,“ in an email response to queries by ET.

Housing was founded in 2012 by a dozen college-mates from IITMumbai. Four of them including Yadav now have left the company.

The company is currently managed by an executive committee that controls the finances and operations of the company. The committee is led by Jonathan Bullock, the SoftBank executive on the board of Housing.

Housing--which competes with CommonFloor, 99Acres, and MagicBricks, owned by the publisher of this paper-has so far received more than $120 million (.`760 crore) in funding and is valued at over . 1,500 crore.`