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Monday, October 27, 2014

More than 7 crore sq.ft. will come soon in residential segment

More than 7 crore sq.ft. will come soon in residential segment


pankajkapoor
More than 7 crore sq.ft. will come soon in residentialsegment
By Accommodation Times News Services

Lisas Foras, a Mumbai based research firm under the headship of Pankaj Kapoor has predicted further fall of 15% in residential rates. He further said that more than 7 crore sq.ft. of residential space will hit the market soon in the Mumbai region alone. He was speaking at a press meet called by Press Club Mumbai on 19th March 2009. Now that after 5 years in 2014, these projects should be ready and hitting the market. The rates are likely to fall if such huge supply going to come in the market.
“What Ails Real Estate” was the topic for discussion while the panellist like Parimal Shroff, Vinod Sampat, Vimal Punamiya and Suresh Menon were invited to speak on the subject.
According to Parimal Shroff, the last recession lasted for nine years (1995-2004), the present scenario must be looked at seriously. Advocate Vinod Sampat cited some of the stats of registration figures which say that there is a fall recorded by the department for the loss of revenue of stamps upto 9% as compared with last year. Pranav Vakil of Knight Frank asserted that short supply will be reason for future price rise. He said that faulty valuation of land bank is the main reason for fall of share prices of realty companies onthe stack exchanges.
Vimal Punamiya said that valuation of property must be seen in its truly value rather than its notional value. He has cited many cases of Income Tax and Stamp Duty.
Pankaj Kapoor’s presentation gave the breakup of projects which are coming in major cities and a huge pile up of under construction projects which are in pipeline, will soon hit the residential segment in the real estate market. Though there were no answers to some of the question asked by media like reducingthe profit margins by builders and cheap home loans, costing of real estate development revealed that land cost in the project touches almost 85% in south Mumbai.
Sunil Mantri, president elect, MCHI, said that there is a need for builders to address two issues. One is whether builders will complete the project and second the minimum price discovery. He emphasised on schemes of buy back at certain price to retain the customers’ confidence. Vijay Wadhwa of Wadhawa group said besides the real estate in recessionary trend, they are the first to correct the prices at a lower level for some of their projects. He said there will be loss of jobs because of such trend in the realty sector.
Now after six years of the press conference, the real estate market happens to be the same as in 2009 and all the statements made looks very relevant to today’s scenario except we expect the estimation of Pankaj Kapoor that we are soon going to have 7 crore sq ft finished stock in MMR. Pune is the worst case where almost 50000 units ready lying vacant and there are no takers.

Where are 5 lakh houses to be constructed before 2015?

Where are 5 lakh houses to be constructed before 2015?


mchi2010By Dr Sanjay Chaturvedi

By Accommodation Times News Services
Conventions and Conferences are now a days becoming platform for enhancing individual public images and PR. Enhancing brands of the firm and individuals. PR agencies are making all stones un-turn to give public platforms to their clients. In the history of real estate, all conventions have been forgotten and words spoken from the podium did not had Will and intentions but for personal advantages and brand building exercise.
Maharashtra Chamber of Housing Industry (MCHI) hosted one such Convention. Convention “Homes for All” in association with the state government in Mumbai on April 28, 2010 was held at Y B Chavan Auditorium, Nariman Point Mumbai. The Association MCHI, a public Trust is one of the leading associations of developers, had embarked on an ambitious plan of facilitating the creation of 5 lakh affordable houses over the next 5 years in close coordination with the state government and other housing bodies of the government.
MCHI press release then said “MCHI will be working in partnership with the State Government to examine and identify measures to strengthen the housing industry’s role in the socio-economic development of the State. In relation, it will also seek to formulate measures that will aid in the development of affordable homes and ensure their availability across the Mumbai and MMR Region.” The release further said “We strongly believe that our efforts would result in creation of quality housing stocks which could be effectively used to house the needy especially from the economically challenged sections”.
We are closely working with the state government and the government officials to work out the modalities of the scheme. All the members of MCHI are solidly behind this exemplary initiative and the active support from the state government would help us in successfully executing the initiative”, the release said just before the convention to begin.
Leaders of the industry and members of managing committee made a strong point from podium to work under the cause. Not only they urged the urgency but had made figures announced which would construct in next five years. The minutes of the convention with Accommodation Times and as author was also one of the delegate, was convinced by the declaration of the convention.
The glaring need and acute imbalance between the need for the housing and the woefully inadequate supply of quality houses has spurred the organisation to come out with the new proposal, said the charter presented at the convention so general public by and large understood that the chamber was seriously thinking giving affordable and housing for economical weaker section of the society.
According to Cushman and Wakefield report, the demand for affordable housing is expected to increase by approximately 400,000 units every year in the country. According to Mr. Pankaj Kapoor, CEO Liases Foras, a research firm in real estate, every year 40,000 units are sold in MMR. Out of which 35% only accounts to Poor Housing (23%) and Affordable housing which ranges between Rs.30 to 60 Lakh (12%) is included. In the name of affordable housing people are constructing even 70 kms from Mumbai. Who will occupy these units? He asked.
The charter identified the demand as : Mumbai has an immediate demand of approximately 1.4 million homes, of which, 80% of the demand is expected to emanate from the 3-5 lakh income group. None of the ongoing schemes cater to such income group neither state government gave any hope to such demand and need for shelter. None of the state policy had addressed the need. The partnership of convention between MCHI and state government of Maharashtra was an eye wash while former completely engaged in property exhibitions in Mumbai and all its attention was to lobby government for land release and FSI incentives in Island city and for premium housing. BMC introduced fungible FSI concept and State Government imposed VAT on construction of Houses. None of them had given a serious thought to the charter of the convention. Schemes and objectives of convention were used for personal advantages and lobbying the government bureaucrats who were present on the stage and with leaders who found later hand in globe with builders.
Affordable housing is one of the most talked about issues in the real estate over the past several years and very vberant all season subject to lure government officials on stage and share dais.
The challenge is to provide affordable homes for every family in Mumbai and the MM Region. There are also very few houses in the affordable income bracket that are being constructed across Mumbai and the distant suburbs. Around 60% of the population of Mumbai lives in informal housing. Therefore, affordable homes should be the focus of all concerned stakeholders. By hosting the Homes for All convention we intend to provide a clear blueprint to address the issues at hand and the appropriate way forward, said the release but with the clear intention of ditching all section of the society and making fool of all stakeholders. The ‘Homes For All’ convention will be hosted again and again and again with a clear stage for PR agencies lobbying for their clients.

Saturday, October 18, 2014

Is Kurla-Ghatkopar stretch ideal for investors?

Is Kurla-Ghatkopar stretch ideal for investors?

Close to office, next to market place and easy on your pocket!! Do you want your investment to fulfill all parameters of being an ideal abode? Here is a possible opportunity for you-
Ever since the four major transit infrastructures – Eastern Freeway, Metro Rail VAG Line, Santacruz-Chembur Link Road and Monorail Phase 1 became operational, the time taken to travel from Kurla-Ghatkopar corridor to the eastern, western suburbs, South Mumbai and Thane has reduced. The route which took over two hours to cross, now with swift metro links takes less than 30 minutes. Similarly, the Eastern Freeway has enabled the traffic to take a direct route to South Mumbai, rather than taking the Eastern Expressway.
This has invited buyers to the area, who are considering investment within a restricted budget and at the same time looking for appreciation.
-       I have a budget of about Rs 70-95 lakh for investment. Can you suggest me the best places in Mumbai, close to transit corridors like Ghatkopar or Chembur? Asks Suraj, an Open House* user.
-       Can you suggest whether the Kurla-Ghatkopar stretch would be advisable for personal use as well as investment? I have a budget of around Rs 45 lakh? Asks Sanchit Dalvi, another Open House user.
As the travel time to work places has reduced due to development, the demand for properties in areas across the stretch of Kurla West, Tilak Nagar, Ghatkopar East, Sindhu Wadi and Ghatkopar West has increased in the last six months.
“The demand for properties has increased and is totally based on the ‘pricing’ of the properties. The stretch has properties in various budget ranges which works in favor of the corridor,” says Vinil Kabra, director, Kabra Estate and Investment Consultants.
As per the Magicbricks data, a 1BHK apartment of 500 sq ft in Kurla is offered in a budget range of Rs 65-80 lakh while the same sized apartment is priced at Rs 75 -90 lakh in Ghatkopar West. Similarly, a 2BHK unit of size 800-1000 sq ft is available for Rs 1-1.25 crore in all the three localities.
If we talk about capital appreciation here, the recently released PropIndex (Jul-Sep 2014), the India Apartment Index by Magicbricks, shows the highest capital appreciation of 6 per cent in Ghatkopar West in the last three months. Kurla West and Ghatkopar East have also witnessed similar trends of price appreciation within a range of 1-4 per cent during the same period.
Binaifer Jehani, director, Crisil agrees, “In Mumbai, while most micro-markets are likely to see capital appreciation of 4 per cent on an annual basis during 2015 and 2016, micro markets such as Thane and Kurla-Ghatkopar could witness a higher annual rise of 6-8 per cent. The increase in prices in Kurla-Ghatkopar will mainly be driven by improved connectivity with the completion of the four large infrastructure projects.”
Since these areas are established localities of Mumbai, the social and physical infrastructure is quite robust. However, lack of open spaces and parking areas in Ghatkopar West and Kurla are major concerns for the residents.
Surbhi Gupta, Magicbricks.com Bureau

Bandra Kurla Complex: The new realty hotspot

Bandra Kurla Complex: The new realty hotspot

Mumbai
If Bandra-Kurla Complex (BKC) meant anything for Mumbaikars, it was being a younger cousin to Nariman Point, one of the pioneer Central Business Districts (CBD) of Mumbai. While the focus shifted from Nariman Point to BKC, housing demand in and around this region also witnessed a significant rise.
Today, with the Mumbai Metropolitan Regional Development Authority (MMRDA) allocating Rs 65 crores to develop civic amenities in BKC, the residential sector could be a healthy beneficiary . The residential space allocated is approximately 10 per cent while commercial dominates the realty space here. With the area proposed to get `smart’, the upcoming residential projects would benefit and more so, the high networth individuals (HNIs).
While noted developers have slowly taken to launching their residential projects in BKC, public attention has been around the MMRDA’s plan to convert it into a smart business district. So, what is in store? Energy-efficient street lighting, smart parking, Wi-Fi access, digitised scrutiny of construction proposals and even CCTVs with advanced video analytics.
“A smart business district means the vicinity and real estate projects would be the ultimate beneficiaries.If the funds for civic amenities are rightly allocated, the residential sector would be positively impacted and the area would become cleaner,“ says Rahees Rijwi, realtor at Confirm Deal. “Impetus for having a residence here is so that the HNIs have the benefit of walk-to-work. While back offices of many MNCs are moving to budget-friendly areas, top officials have already parked their money in some of the ultra-luxury projects in BKC,” shares Santosh Rathod, proprietor, HNI Realtors, as he names some of the rich-and-famous who have recently bought properties in BKC.
While prices in BKC are in the range of Rs 40,000-50,000 per sq ft when it comes to a reputed developer, prices in Bandra east, the new micro-market, range between Rs 25,00035,000 per sq ft. Prices vary depending upon the exact location of the house, brand of the developer and the amenities provided to end-users.
Dhanraj Suvarna, manager-residential, JLL India, says, “The real benefit would be to areas outside BKC and not just around it. When buyers plan on investing in BKC or Bandra, they are definitely not talking about affordability. There are takers even for flats priced in the range of Rs 70,00075,000 per sq ft in Mumbai; so at existing rates, BKC’s pricing is not crippling when it comes to actual buyers.” BKC’s social fabric and proximity to workspaces is the most obvious reason why residential units, catering to HNIs, are coming up here. However, the best part is how BKC’s prominence has facilitated realty development and housing demand outside BKC namely Bandra, Kurla, LBS Road, Sion, Kalina and Mahim.
“Post the bhumi pujan for the third phase of the metro rail that is touted as a mammoth infrastructural progress, property prices are expected to rise further. As per the plan, with 27 underground stations, the Colaba to SEEPZ route via Kalbadevi, Girgaum, Worli, BKC and the airport, would be a boost to the realty – both, commercial and residential in BKC and the adjoining areas,” say most trend watchers.
Is building BKC as a smart area, a feasible plan? “Much depends on the authority’s plan. Wadala is to be developed as the next BKC and they have a masterplan. Similarly, it will take off only if the MMRDA has set goals and a plan to develop it.” “Apart from the obvious reasons that BKC is famous for, much is also because of the efforts that are locally taken up. Most of Mumbai has space constraints and a green cover is missing. At BKC, the road-divider beautification project was taken up some time back, conserving old plants which are usually trashed,” says Sharad Gadekar, a banker in BKC.
Residents like Gadekar inform that while having a flat in BKC does boost one’s status, civic amenities matter and welfare initiatives go a long way too. For the white collar professionals, wanting to walk-to-work, BKC is the new smart answer.
Source: Times Property, The Times of India, Mumbai

Chembur sheds ‘heritage’ tag to make way for redevelopment

Chembur sheds ‘heritage’ tag to make way for redevelopment

Chembur is all set to see a new wave of development as it is no more a ‘heritage’ precinct to be preserved!! Know more with Magicbricks-
It was almost 15 months back when Chembur Citizen Forum initiated resistance against the ‘heritage’ status of Chembur Gaothan, Old Chembur and St Anthony’s Society which also stalled the ongoing re-development projects. But now the fight seems to be almost over for the residents here.
“The Government has expelled Chembur area, except some Church buildings, Jain temple and Deulwadi, from the list of heritage areas. This move has given a green signal to start the stopped projects again and welcome the newer ones,” says Hemant Petare, general secretary, Chembur Citizen Forum.
According to Petare, over 500 buildings, deemed under the category, need repairing or re-development. Now, as the tag has been taken away, repairing can be done or re-development can be initiated at the earliest.
Will this give way for high-rise buildings as well? Mumbai’s Chembur Gaothan is one of the oldest localities of Mumbai where majority of the buildings are in damaged conditions and need urgent repair. Although, some buildings are still in the list of heritage sites, majority of the residential buildings are freed from the status.
However, since the plot sizes are small, high-rises might remain a distant dream until group housing development policies are enforced. “Most of the plots here are sized between 500-1000 sq meters, hence only mid-size buildings can be a possibility,” adds Petare.
Will new stock bring down the prices? Chembur is one of the prime localities of the metropolitan region because of its proximity to the Bandra-Kurla Complex and easy connectivity to South Mumbai. The area also witnesses robust housing demand from professionals working in nearby areas. Due to limited supply and unending demand, property values are high in the area.
As per the Magicbricks data, capital values range from Rs 14,000-18,000 per sq ft. Moreover, almost 60 per cent of the properties available in Chembur are 2 or 3BHK units, priced between Rs 1-6 crore. But since the area is gearing up for new supply, will this bring down the rates? Local realtors don’t think so!
“There are a number of charges involved for getting approvals and clearances’ that bringing down the prices is not a possibility in the Chembur property market. However, fresh properties can impact the sentiments and boost demand further in times to come,” says Jaysinh Kapadia, president, The Association of Real Estate Agents (AREA) – Mumbai
He further adds, “Availability of modernised, new properties in established localities is a boon for any property buyer but this part of Chembur lacks quality infrastructure and needs renovation in every aspect to command comparable prices to Tilak Nagar, Indira Nagar, RCF Colony or Shastri Nagar.”
Kapadia also pointed out that amenities and quality of product will be some deciding factors on whether Chembur will ride on the priority list of prospective home buyers. So, very soon, the congested and crowded suburb of Mumbai can boast of a modernised skyline.
Surbhi Gupta, Magicbricks.com Bureau
Surbhi Gupta is a real estate correspondent in Magicbricks’ editorial team with the flair of analysing the industry trends and scenario.

Investors cheer in the wake of infra development

Investors cheer in the wake of infra development

Mumbai
For those who had invested along the stretch from Thane to the Central Business District of Belapur, there is more than one reason to cheer. From physical infrastructure to an expanding job market, and from the metro rail to better connectivity to the upcoming commercial markets, the real estate market expects a positive impact in times to come. This impact is clearly visible in the capital values of Ghodbunder Road, Kolshet Road, Airoli, Majiwada, Ghansoli, Vasant Vihar or Vashi. As MagicBricks.com data indicates, over the last two years, all these areas have reported a rise in capital values in the range of Rs 650-3500 per sq ft, depending upon the location.
End-users have been banking on the numerous upcoming infrastructure projects, one of them being the metro rail network. Deepak M, consultant at Shri Sai Property Consultants, says, “Of late, Thane has been a fast-moving market. Buyers have the benefit of sound living standards and almost half the price it would take to live in Mumbai. Most buyers also foresee property prices going up.” Initially, while it would have taken close to 50 minutes to commute to Mumbai, with the metro, the time taken would be down to 20 minutes. This positively impacts the property markets of Vasant Vihar, Majiwada, Pokhran Road 1 and 2 as well as Ghodbunder Road and Hiranandani Estate.
Affan Ansari, a local realtor in Thane, informs, “Majiwada Junction Flyover cuts across the busiest routes of Thane. Strategically planned, commuters from Mumbai would have easy access to Kalyan. This flyover, already half operational, facilitates to and fro connectivity to Mumbai, Nashik and other areas where most of the economic drivers are.” So, whether you are working in Borivli, Malad or Mulund, the three flyovers planned here, are getting developed in phases and will facilitate travel. By easing connectivity, Majiwada also opens investment options in the region. With capital values slowly picking up, most residential pockets in Thane would see more number of takers.
Shoaib Khan, consultant at Just a Home, says, “Thane’s realty banks on planned vision of developing the area as per the needs of the end-users.” This said, Thane’s most active residential pockets are in Ghodbunder Road, catering to both, commercial and residential development, with many new projects under construction. Connectivity to the Eastern and Western Express Highways in Mumbai has been a determinant. Other residential pockets like Kasarvadavli and Anand Nagar, have generated interest from professionals looking for mid-segment properties.
While you may be working in Wagle Estate, etc., Thane offers property options in the vicinity. Moreover, with the later phase of the Jawahar Lal Nehru Port Trust having been inaugurated in August this year, employment avenues have been generated in the port and allied industries of the SEZ.Thus, the Thane to Belapur belt is expected to get a real estate push in the wake of an expanding job market.
Take Navi Mumbai and the stretch that extends from Thane to the epicentre of the job market in Belapur, and also through Vashi, Airoli, Ghansoli and Koper Khairane.Among active residential markets in this belt is Ghansoli which draws investors from Navi Mumbai. With a considerably less land bank and more resale projects, Ghansoli is where you need to zero down. Majinder Singh, consultant at Jeet Properties, informs how “Much of the investment trends shifted focus to areas beyond Belapur like Kharghar, Ulwe, Dronagiri and Panvel but these are primarily investor-friendly destinations. Conveyance and connectivity are a major deterrents. However, if the Navi Mumbai Airport gets operational, the area would benefit.” Working professionals, mostly end-users, are opting for Ghansoli thanks to the CIDCO developed pockets or the secondary market in areas along the stretch.
“Options are many as G+30, G+32 flats are coming up in the area. All this makes it a sought-after destination as of now,” adds Singh.
“While prices in and around Belapur are relatively affordable when compared to Thane, buyers are opting for the latter due to better infrastructure – both, physical and social, in terms of schools, colleges, commercial areas, theatres and major upcoming 
entertainment
 hubs. Market sentiments have improved within the last three months resulting in a good conversion ratio,” says Khan.
Many projects that got delayed because of pending approvals or clearance certificates have also come up in the market. Buyers can make use of this supply for a good negotiation. The festive season could be a favourable time for discounts and attractive packages.
Trend watchers note that the expectations of buyers have increased over time due to the upcoming developments, be it the airport, monorail for connectivity to Dahisar and Kalyan, metro network, flyovers, the Nhava Sheva link road or even the strategic location of Thane within the Delhi Mumbai Industrial Corridor.
Although some of these projects are future-bound, the impact on property and investment patterns is clearly visible.
Source: Times Property, The Times of India, Mumbai

Retail shopping hubs developing in suburbs

Retail shopping hubs developing in suburbs

Bangalore
The pattern of real estate development in any location is more or less similar. There is one trigger point from which all growth takes off. For instance, it could be proximity to an economic nerve centre and availability of land at economical rates leading to a spill-over effect. Or, it could be the location of a key establishment, such as the international airport in Bangalore north. It could be connectivity and government led initiatives leading to growth, as in the case of the Outer Ring Road (ORR). This has led to residential development in locations around for employees working in these corridors.
A growing residential population requires shopping centres, convenience stores, dining and 
entertainment
 options at a convenient distance, giving a thrust to retail. The presence of retail, in turn, determines the attractiveness of a location.
Symbiotic relationship
Residential and commercial real estate of any kind have a symbiotic relationship. It is usually retail development that chases residential development. In other words, retail developers will seek to establish malls as close as possible to residential catchments.
Juggy Marwaha, Managing Director South, JLL India, explains, “The challenge is to find the right location, right size and right configuration to build malls which are close enough to residential catchment without becoming a nuisance. In cases where mall developers have achieved the right equation, retail development will definitely lead to more residential demand in such areas. The demand comes not only from residences accessing from shopping malls but also people employed around shopping malls. Therefore, the perfect residential catchment for a retail destination will have a good mix of affordable and mid-income housing.“
Convenience of retail
As with most cities in India, Bangalore too developed organically without any strategic zoning of uses. Over the years, therefore, real estate development, especially retail real estate development, decentralised from the traditional Central Business District (CBD) and followed the population growth and ensuing housing as well as physical and social infrastructure development across various suburban and peripheral micro-markets of the city .
Ram Chandnani, Deputy Managing Director South India, CBRE South Asia, adds, “Such a decentralised development pattern of organised retail space resulted in consumers enjoying the convenience of quality shopping and entertainment options in proximity to their residential neighbourhoods, doing away with the need to travel to the city centre for serious shopping requirements. Thus, over the last decade, the city’s residents and consumers have begun to prefer residential neighbourhoods that are close to organised retail hubs, and vice versa.“
Retail in emerging locations
According to research by JLL India, Rajajinagar, Whitefield, HSR-Layout and Mahadevapura are some of the emerging micro-markets, which are witnessing rapid retail development. Of late, north Bangalore is gradually witnessing increased retail activity in areas such as Kammanahalli Main Road and Sahakar nagar while Marenahalli Road (JP Nagar Outer Ring Road stretch) in the south-west of the city is gaining prominence mainly due to limited shopping mall space in the vicinity.
Marwaha says, “Despite low commercial activity in north Bangalore, the region has witnessed increased residential supply. Shift in developer interest towards this location has given rise to many organised retail projects. Key developers have planned shopping malls here. The ORR-Sarjapur belt will become an attractive micro-market for retail development due to lack of existing and under-construction mall space. Meanwhile, north Bangalore and Old Madras Road have great potential for development of malls within the next three to five years.“
Outlook for the sector
Ram foresees Bangalore’s retail market remaining robust, and continuing to grow over the next few years. With the development of new high streets, retailers have new avenues for expansions, as well as the possibility of closer interactions with customers. Shopping centre development in the city has also taken up steam, with newer developments being planned across the city.
He says, “Over the next few years, with large-scale shopping centres scheduled to become operational, Bangalore should double its organised retail offering, making it that much more attractive for the city’s consumers, who will have a wider shopping choice and more convenient retail destinations to choose from.“
Source: Times Property, The Times of India, Bangalore