4 Mhada hsg socs can choose cable operators

Mumbai: The Bombay high court on Monday allowed four housing societies in a Mhada cluster at Kurla to appoint th-eir own cable service provider. 

    A division bench of Justice S J Vazifdar and Justice Mridula Bhatkar gave the order after hearing a petition filed by the societies at Nehru Nagar that claimed that Mhada, along with police help, attempted to forcibly cut off their cable connections on August 6, 2012. The petition stated that despite the residents having appointed their own cable operator, the Mhada estate manager insisted that they would have to switch to another provider for TV and internet services. 
    The societies learnt that Mhada wanted to implement its 2002 policy to invite tenders from cable operators for areas where their buildings were situated. "If such policies are allowed… Mhada will come up with its own milkmen, newspaper vendors etc," said the petition. The housing societies stated that in July 2009, the HC had admitted a petition by a housing society challenging the policy and directed Mhada not to implement it.

Read more...

‘2 malls coming up in metro buffer zone’ Bachchans Loaned 11.5cr To Firm, May Be Unaware Of Breach: Y P Singh

Mumbai: Civic authorities are turning a blind eye to the construction of two malls in a buffer zone meant to protect residents from metro railway noise pollution at Andheri (West), activist-lawyer Y P Singh has alleged. 

    Addressing a press conference at the Mumbai Marathi Patrakar Sangh on Tuesday, Singh further said that superstar Amitabh Bachchan and his wife, actor and Rajya Sabha member Jaya Bachchan, who have together loaned Rs 11 crore to one of the realty firms, too, may not be aware about the illegality being committed. 
    "Both have loaned money to the tune of Rs 7 crore to Ecstasy Realty Pvt Ltd that is constructing one of the malls. Amitabh Bachchan has also given a loan of Rs 4.5 crore to Shobit Rajan, the proprietor of Ecstasy Realty," said Singh. 
    The information is based on the declaration made by Jaya Bachchan while filing her nomination for the Rajya Sabha. 
    A major portion of the 13.8-hectare plot abutting J P Road at Andheri (West) is being used for a metro yard. Around 25% of the plot has been given to the owners (Rajan and HDIL) as compensation along with 75% of the total floor space index of the entire plot to be used on the 25% area, said Rajan. 
    While approving the metro yard and the plot's commercial exploitation, the BMC had specifically mentioned that a 30-metre-wide buffer zone around the periphery of the entire plot must be maintained to avoid noise pollution. "Only tree plantation shall be allowed in this buffer zone," read the Development Plan department remarks before approval. 
    Singh said while the HDIL mall had been constructed up to the first floor, in case of the Ecstasy mall, the ground had been excavated up to 50 feet for the basement construction. "The approved BMC plans show the front portion of both the malls are in the buffer zone,'' said the lawyer-activist. Four months ago, Singh had sent a legal notice to the BMC demanding to know why it had not stopped construction in the buffer zone. "But there has been no response. We, therefore, want to appeal to the Bachchans to stop the illegality as they have loaned money to the firm and to the proprietor and to ensure that trees are planted as required," said Singh. 
    Rajan, though, denied his firm had carried out any construction in the buffer zone. "Currently, we are constructing a residential building which is 150 metres from the road. We intend to construct a mall but, so far, no decision has been taken.'' Sunny Dewan of HDIL said, "The construction at the metro yard is being carried out as per the BMC-approved plan and the consent terms signed before the high court. There is no illegality whatsoever.'' Bachchan was not available for comment.

THE 'VIOLATION' | The BMC has insisted on a 30-metre-wide buffer zone around the periphery of the entire metro yard plot to avoid noise pollution. Only tree plantation has been allowed in the buffer zone. The two malls, though, are being extended in the buffer zone and the BMC has not objected to the violation, alleges activist-lawyer Y P Singh

Read more...

Despite oppn, SRA clears prime plot for redevpt Builder Could Reap 8,000Cr Windfall

Mumbai: On the evening of December 31, as the city prepared to herald the new year, the chief minister-headed Slum Rehabilitation Authority (SRA) issued a letter of intent to a builder to redevelop a prime 17-acre plot of slum land in Worli under a controversial law. 

    The same project was among several placed on the backburner by the state government two years ago following an expose by TOI and after vehement opposition from the Brihanmumbai Municipal Corporation. The civic body, which owns the land off Dr E Moses Road, had insisted that the project be scrapped and competitive bids be invited. Now greenlighted again despite widespread disapproval, it will rake in a conservative profit of Rs 8,000 crore for the chosen developer, Lokhandwala Infrastructure. 
    "The decision to issue the letter of intent was taken at the highest political level," a government source told TOI. SRA wants NOC for Worli project in a mnth 
Mumbai: Despite facing still criticism over the project in the past, the Slum Rehabilitation Authority (SRA) has issued a letter of intent to a builder to redevelop a 17-acre slum land in Worli under a contentious law. 
    The SRA wants the BMC to give a no-objection certificate to the project within a month. Its letter of intent—a copy of which is with this newspaper—says the builder will have to rehabilitate 3,787 tenement dwellers free of cost on 16 lakh sq ft of built-up area. As compensation, the developer will be entitled to over 12 lakh sq ft in free sale component. Property prices in Worli are in the range of Rs 40,000 to Rs 50,000 per sq ft. 
    In its edition on February 1, 2011, TOI had revealed how a little-known rule in the Slum Act was used to allocate almost 500 acres of slum pockets, including the Worli land, to six developers between 2008 and 2010. Called Section 3K, the rule allowed the state to pick builders on "first-come, first-served" basis. Furthermore, it excused the developers from obtaining the mandatory consent of 70% of slumdwellers during initial stages. This led to fights between rival builders, court cases and allegations of nepotism. 
    The same contentious law was employed last December by the SRA to re-initiate the Worli project, which was the most divisive of the shelved lot and the most lucrative because of its prime location. Highly-placed sources said a senior NCP leader was also keen to kickstart the project. 
    A few months after the TOI expose, the then municipal commissioner Subodh Kumar had written to the government, demanding that the state discontinue the project since it would only benefit the developer. He suggested that the civic body be allowed to redevelop the property—which covers Jijamata Nagar, Mata Ramabai Nagar, Vivekanand Nagar and Jivan Jyot—and exploit its full potential. Kumar also pointed out to the government that the affected slumdwellers had not given their consent to the builder. 
    The SRA's unusual hurry in issuing the letter of intent to the builder has raised eyebrows. This is partly because no survey has been carried out to ascertain how many slum residents are eligible for rehabilitation. Also, the letter asks the municipal commissioner to obtain from the Supreme Court special permission to fix the cut-off date for eligible slumdwellers at January 2000 instead of January 1995. 
    But the biggest contentious issue pertains to Jijamata Nagar, one of the four enclaves making up the Worli project. Residents claim that Jijamata Nagar is not a slum but a series of chawl tenements where project-affected persons were rehoused 40 years ago. "We are project-affected people. How can the SRA declare this area a slum?" said Nadeem Ansari, one of the residents fighting the redevelopment.

Read more...

REGISTER YOUR SOCIETY It is vital to ensure that all procedures are strictly followed from the very start of a housing society

The process of registration of a Co-operative housing society starts from the working of the first general body meeting held prior to registration. In this meeting the chief promoter is primarily selected. In this meeting the necessary resolutions like opening the account in bank in the name of the proposed society and for obtaining permission for reserving the name of the society. It is of utmost necessity on the part of the concerned registrar to check and ensure the total number of flats/galas in the proposed society, how many members were present in the first meeting of the proposed society and have given their approval to the various resolutions. Otherwise one group starts the process of registration by passing the proposal/resolution in a minority. Thereafter the other group starts another process of registering the society in a different name by taking an independent meeting. To avoid disputes before registration, the registrar should not give permission for reserving the name of the society and to open the account in that name without checking original papers and without ensuring that the entire process of the first meeting is held in the presence of majority members. 

    The working transacted in the first meeting in respect of S.R.A./ SRD/MHADA recognised housing societies is especially very important... It has been also made obligatory to make available video shooting of the entire working of this meeting. Even then, if a dispute arises in this regard, then justice can be sought from the competent court as a dispute before registration of the society. 
PROCEDURES OF 
REGISTRATION OF 
CO-OPERATIVE HOUSING SOCIETY 
    For registering the Co-operative Housing Society, the concerned Registrar, by scrutinising the proposal submitted after fulfillment of the above mentioned documents shall make an arrangement of issuing a certificate of registration under section 9 (1) of the Maharashtra Cooperative Societies Act 1960, and a copy of the registered bye-laws, memorandum regarding registration of society to the chief promoter. The order regarding registration of societies should have been sent for publishing in Government Gazette to the Government printing press for appropriate action. 
    The chief promoter should have to arrange the first general body meeting of the promoter members within three months from the date of registration of the society (under rule 59 of the Maharashtra Co-op Societies rules 1961.) and necessary resolution should be passed in this meeting. If such a meeting is not taken by the chief promoter, and a complaint is received by the concerned registrar, then, by appointing an authorised officer, such a meeting can be conducted under the chairmanship of the authorised officer. 
    If the registration of the society is denied, then it is necessary that by passing the written order in this regard by the registrar, and a copy of it should have to be given to the concerned. An appeal under section 152 can be filed before the immediate senior officer against this decision. 
    It is necessary to take a decision on the registration of the society within a period of two months from the date of the proposal of the society submitted to the registrar. If such a decision is not taken within two months, then it is necessary to send that proposal to the immediate senior officer. 
    If the registrar has not taken any action on the proposal received for registration under section 9 (2) of the Maharashtra Co-operative Societies Act 1960, as expected under this section within two months, then deemed registration of the housing society is presumed. 
    It could not be said that the officers from the Co-operation department will remain present in the meeting, therefore it should be noted in the memorandum of the registration that the office bearer representative of the District Federation, along with the officers from Co-operation department, be present in the first meeting so that information regarding procedure of working of the society and also bye-laws can be given to the members in the first meeting itself. 
SOURCE: CO-OPERATIVE HOUSING SOCIETIES MANUAL, MAHARASHTRA SOCIETIES WELFARE ASSOCIATION 
QUICK 
BYTE 
THE PROCESS OF REGISTRATION OF A CO-OPERATIVE HOUSING SOCIETY STARTS FROM THE WORKING OF THE FIRST GENERAL BODY MEETING HELD PRIOR TO REGISTRATION

Read more...

Current realty laws ignored as new ones are proposed

    The state and central governments may be forming new rules to guard homebuyers from the avarice of builders, but consumer activists doubt the possibility of their success. They point out that existing laws provide adequate protection from cheating. What is required is implementation. 

    The existing Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale and Transfer) Act, 1963—commonly called MOFA—mandates computing flat prices on carpet area; the same stipulation is now proposed in the centre's Real Estate (Regulation and Development) Bill. "This rule was framed in MOFA in 1983 and amended in 2008. But developers still sell on build-up area and government agencies continue to approve building plans and register property on built-up area," said Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association. 
    Another example of poor execution is MOFA's section 4, which requires builders to register the agreement on receiving 20% of the flat cost. In practice developers "do not register even after getting 90% of the cost," Prabhu added. "Similarly, MOFA sections 3 and 4 say that parking space cannot be sold, but developers do it and even include it in the flat cost." 
    Pranay Vakil, chairman of Praron Consultancy (India), said the central law may introduce much-needed transparency, but will be hard to implement. "MOFA governed transactions between consumers and builders. The central bill covers banks and civic officials. Unlike MOFA, this bill will allow a flat buyer to know immediately if the project has been approved or if there are any encumbrances on the land. That said, it will be a challenge for the government to maintain data on almost 3 million sq ft being developed in the city on awebsite," Vakil added. 
    Activists say that, instead of strengthening buyers' hand, the state government is in fact diluting their rights under MOFA by mooting a new housing bill. According to activist Shirish Deshpande, "The new state bill presented in April 2012 allowed a flat buyer's money to be refunded with interest from the date when money was paid to the builder. However, the bill was amended and this provision dropped, making buyers vulnerable." Activists have demanded that the state shelve the new bill—Maharashtra Housing (Regulation and Development) Bill—and strengthen MOFA by including provisions for a regulatory authority or appellate tribunal. ROOM FOR IMPROVEMENT 
The Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale and Transfer) Act, 1963, has various provisions to protect flat buyers, but they are either not implemented or are being diluted in the state's new housing bill 
    Flats should be sold on carpet area 
LAPSE Builders write carpet area in sale deeds but sell on built-up area. Even government agencies approve fungible FSI and register property on built-up area 
    CLAUSES 4 & 5 of MOFA say the total approved developable space and area consumed on the plot should be disclosed in the sale agreement. The balance should go to the society LAPSE The facts are omitted from agreements. Also, the new state housing bill allows a builder to have a proportionate share in additional FSI, taking into account any future increase, even after executing the conveyance to the society 
    SECTION 14 asks the society to be formed within four months of sale of 60% of flats LAPSE Not done 
    SECTION 10 requires land to be conveyed to society in four monthsLAPSE Not done SECTION 5 says a builder has to maintain a separate escrow account for charges such as VAT, electricity and water bills received from buyers LAPSE Clause missing in new bill 
SECTION 13 says builders can be penalized or sentenced to three years in jail for violating MOFA LAPSE Police generally consider this a civil dispute and refuse to register an FIR. Also, clause not in the new bill 
SECTIONS 3 & 7 say a builder has to give all building plans and title reports to prospective buyers and cannot modify plans without buyers' approvalLAPSE Clause missing in the new bill. Currently, buyers get to see plans only after the flat is sold 
Times View: First implement existing rules 
    New rules to rein in builders, who take buyers for a ride, are welcome. But many of the rules that are already there can also do a good job of protecting buyers' interests only if the government was interested in implementing them. We need to know why the existing rules are not being implemented. Another set of rules, however stringent it may be, will have zero effect on the ground if there is no effort to implement it.

Read more...

13 insights for India real estate in 2013

The year 2012 closed with a few notes of positivity as the inflation was below the Reserve Bank of India's (RBI's) projected levels and the Index of Industrial Production (IIP) growth increased in the last two months of the year, giving new hopes for 2013.

Overall, 2012 remained inactive, affecting all the major sectors in real estate. Office space absorption remained lower compared with 2011. Meanwhile, retail faced challenges of quality supply, affecting the overall absorption. The residential demand improved; however, developers continued to struggle with unsold inventories. With the expected moderation in inflation and strengthening policies, we have gathered few interesting insights for 2013 from real estate experts.  
 

1. Economy - As per RBI, the policies will focus towards growth in 2013, although risks of inflation will continue to remain. Interest rates are expected to witness a downward correction of 100 to 150 bps in 2013. The softening of interest rates is expected to reduce the home loan rates, in turn increasing the buying of real estate assets. Increasing urbanisation and consumption despite the slowdown in GDP growth will be the key drivers of the economy in 2013.

2. Policies - The recent policy initiatives are expected to improve the investment climate and business environment, and they are likely to benefit the real estate sector in 2013. Few policies to look at in 2013 are: the Real Estate Regulation Bill, likely to be tabled in the upcoming winter session of the parliament; the real estate investment trusts (REITs) or real estate mutual funds (REMFs), expected to get launched in 2013; and the Land Acquisition and Rehabilitation and Resettlement Bill, likely to be tabled in the upcoming budget session in 2013.

3. Infrastructure - The infrastructure sector achieved a substantial FDI of USD 2.8 billion, accounting for a notable 7.7% of the total FDI inflow in FY 2012. In the year 2013, the relaxation of FDI policies in multi-brand retail is expected to surge the investment in back-end infrastructure development such as logistics. Moreover, an FDI of up to 100% is also permitted under the automatic route in built-up infrastructure and is likely to surge the development of the city and the regional level infrastructure in 2013.

4. Office Real Estate - Office space absorption in 2013 is likely to remain equal to that in 2012. Supply correction will lead to fewer options for occupiers, and steady absorption will decrease vacancy levels. Competition for space in prime buildings in prime locations is expected to increase in 2013, and these spaces will start earning a premium. Rents are expected to increase from 2H13 onwards as fewer new projects are being launched, and vacant spaces are steadily filling up. Decisions on occupying special economic zone (SEZ) spaces will be taken by occupiers who are sure of taking a position in India as they have to go live by March 2014 to avail the benefits.
 

5. Retail Real Estate - The relaxation in FDI policies in multi-brand retail interestingly has surged aggressive growth amongst Indian retailers to take the first-mover advantage. This is expected to drive the demand in 2013. However, as supply of retail malls remains a challenge, retailers are likely to opt for built-to-suit (BTS) options or high-street properties. As most developers are focusing on residential developments, the supply of malls will reduce in the major cities over the year. In 2013, retailers will be cautious and take more time to execute agreements as they will do a detailed analysis before closing transactions. Retailers will commit to space only if they see approvals in place and the construction of the space in progress.

6. Residential Real Estate - REITs in India allowing investments in rental housing is a new trend worth watching. The framework and details of REITs, once formulated, are likely to drive the investor demand across the prime cities in India in 2013. Another interesting trend observed in the last two years was that the stock in the range of INR 2,000-3,000 per sq ft was fast sold out. In 2013, this range is likely to shift to INR 3,000-5,000 per sq ft with the increase in inflation and construction costs.

7. Industrial Real Estate - Sale-cum-leaseback of exiting industrial assets by existing companies is likely to increase in 2013. MNCs testing the waters in India are likely to focus on BTS industrial properties. Warehousing companies are now preparing for the goods and services taxes (GST) and are slowly moving from godowns to distribution centres. The growing trend in e-retailing and FDI in multi-brand retail is expected to surge the demand for warehousing spaces in 2013.

8. Education and Health Care - There are aggressive growth plans in K-12 and skill-space educational institutions in 2013, particularly in the non-metro cities of India, where there are large opportunities. In the health care segment, hospital chains, along with day care centres, are expected to expand aggressively in 2013. Both these segments are expected to attract private equity investment in 2013.
 

9. Investment Sentiments - Debt capital is likely to increase in 2013. Banks are expected to be more flexible in lending. Most of the realty funds are close to their exit periods as they were invested around 2006-2007. Therefore, the exit of real estate funds is expected to increase in 2013. Meanwhile, interest on income-producing assets by institutional investors is likely to increase over the year. However, the availability of such assets will continue to remain a challenge. Assets will witness a softening of yield rates amidst increased liquidity. 
 

10. Delhi - Most of the absorption in Delhi NCR is likely to focus around Gurgaon and Noida, with the exception of Delhi International Airport Limited (DIAL) and few select stand-alone Grade A projects of Delhi. As the demand supply gap of quality office space is expected to increase because of the supply constraints in select precincts of Delhi NCR, rents are expected to increase in certain micro-markets by 2H13. Developers will focus on delivery of the products.

11. Mumbai - Office absorption and residential demand will continue to increase in Mumbai. The trend of completion of highquality new office projects pushing up Grade A office vacancy levels and providing tenants with greater bargaining power will reduce in 2013. With banks drastically reducing lending activities over the last two years, resulting in debt remaining a constraint, not much of new  commercial supply (except spill over from 2012) is expected to be completed in 2013 and 2014. Residential launches are expected to increase; however, price drop is unlikely to happen over the year. Amidst constrained supply of quality retail malls, rental gap between Grade A malls and Grade B malls will further widen in the year.

12. Bangalore - In terms of office space, Outer Ring Road will continue to be the sought-after destination in 2013. For residential real estate, North Bangalore is expected to continue to remain as the best performing region in the city with strong infrastructure development, increased demand and price appreciation in 2013. Meanwhile, Whitefield will continue to retain its sheen for both office and residential real estate because of affordability, proximity to key work places and good social infrastructure.

13. Other Cities - Chennai, which witnessed a historical high number of residential launches in 2012, is likely to slow down in 2013. This trend is also expected in Pune. Meanwhile, Kolkata and Hyderabad are likely to witness increased launches. Prices of residential units are likely to increase in all the cities because of the increased construction costs. Ahmedabad, Bhubaneswar Kochi and Coimbatore are other cities in India that are likely to witness immense development activities in 2013.

Read more...

Carmaker in 220cr JV to develop 150 acres

Mumbai: Premier, known as the maker of Fiat 1100 Premier Padmini cars, has entered into an agreement with Runwal Group to jointly develop 150 acres of the total 218 acres of land it owns in Dombivli.      Runwal, which purchased the property through its subsidiary company, Horizon Projects Pvt Ltd, paid Rs 220 crore to Premier. The developer will also hand over built-up flats aggregating to 5 lakh sq ft in the proposed township. Premier, which will retain the balance 68 acres, can swap this area for a cash payout in 24 months.      Sandeep Runwal, director of Runwal Group, confirmed the deal, saying they hope to start construction in the township project after two years. Maitreya Doshi, chairman of Premier, said the deal enables the company to sell these flats for a profit in the future. "At the same time, the company is protected by the option to receive cash payment of over Rs 200 crore within two years in lieu of this built-up area,'' said Doshi.      Premier originally owned 483 acres in Dombivli. Of this, 89 acres was sold in 2002 and the money received was used to repay the company's various dues. Of the balance, 175 acres was transferred with prior government approval to the erstwhile Premier-Peugeot joint venture which was forced into closure by the unexpected abandonment by the French carmaker Peugeot in 1997. Premier's balance 218 acres is now covered in this transaction.      Metropolitan Infra Housing Pvt Ltd had purchased 180 acres of the Pal-Peugeot land for a total consideration of Rs 726 crore and Rs 1 lakh in 2011. Premier has shut its old car assembly line and sold the plant in Mumbai. The company land in Dombivli

Read more...

After holding up high prices for four years...

Builders blink, first price cuts are here

RNA slashes price of Goregaon property by Rs 1,800/sq ft and Naman Group slashes prices for Elphinstone property by Rs 4,000 while Lodha is offering a Rs 5,000 discount

    After stubbornly holding on to high prices for four years in the face of sluggish sales, a crippling liquidity crunch and rising cost of capital, Mumbai's real estate industry has just blinked. 
    At least three of Mumbai top builders have either cut prices by as much as Rs 2250 to Rs 5,000 or introduced flexible pricing within a single project, or launched innovative schemes where buyers stump up large sums to book properties even before the project enters construction stage. 
    All this means only one thing – the longdue correction in real estate prices is here. And while many builders may not be announcing price cuts up front yet, it is no secret that they all are now willing to negotiate with buyers. 
    Shree Naman Group and RNA Corp have slashed prices of their projects in Elphinstone and Goregaon respectively and Lodha Group, in a move that is sure to start a big churning in the industry, is offering discounts of up to Rs 5000 per sq feet to those who book their apartments between January 18 and 28 at their high-profile Worli project Codename Blue Moon. 
    RNA Corp was selling two and three bedroom flats at its Exotica project in Goregaon at Rs 11,750 per sq ft and a Rs 100 floor rise till recently. The prices have now been slashed to Rs 9,950 per sq ft with floor rise at Rs 50. The complex has four wings of 50 floors each. The building has two basements, eleven levels of podium parking, a common amenities deck and 36 residential floors. 
    Naman Midtown, a commercial property at Elphinstone, recently introduced flexi-pricing for office spaces. Not only are the new rates substantially lower than what was being offered a month back, there are bigger bargains to be grabbed on different floors if one is not too fixated on a particular view. 
    In the A wing, Naman Midtown has officespacesavailableforRs20,750persq ft between 1st and fifth floor. For the next block, from 6th floor to the 10th, the new rate is Rs 21,750 and for the third block, 15thfloorabovetheraterisestoRs22,500 sq ft. 
    AllthesepricesareRs2,500toRs4,250 sq ft lower than Naman's last offer. 
    But the most aggressive pricing strategy has come from Lodha with an IPO-like scheme for its Blue Moon project. At a time when properties in Worli are being pegged at Rs 29,000 per sq ft, Lodha is offeringtwo,threeandfourbedroomapartments in two towers at Rs 23,991 per sq ft. 
    Around 700 apartments are on the block. Buyers will have to pay an initial sum of Rs 9 lakh to book an apartment. The booking will open on January 18 and close on January 28. 
    R Karthik, CMO of Lodha Group, said that idea was to introduce a product "which offers luxury at near-suburban prices." The company has announced thepriceswhentheprojectislaunchedin the open market will be "at least 25% higher than the pre-launch rates." 
    Manoj John, vice-president, corporate planning and strategy at RNA Corp, and officials at Shree Naman Group declined to comment officially for this report. 
    A survey conducted by Knight Frank, areal estate consultancy firm, in June last yearhadrevealedthatMumbairealestate market had an unsold inventory of 80,000 units worth approximately Rs 1,050 billion. The report had also stated that the global economic crisis of 2008 affected the market adversely as prices dipped in some micro-markets at the premium end of the market and rebounded, scaling to their 2007 highs in the subsequent two years. 
    But in 2012, the Mumbai market stagnated as buyers largely kept away expecting a drop in prices in the near future. The buyers' patience has paid. The Mumbai marketisnowopeningforgoodbargains. 
    LalitKumarJain,presidentofConfederation of Real Estate Developers Association of India, said the liquidity crunch is forcingbuilderstoreducepricesandclear inventory. He expects more builders to follow Naman, RNA and Lodha's example. 
    His own construction company, Kumar Builders, is also dropping prices wherever possible, he said.

NAMAN MIDTOWN, ELPHINSTONE

CODENAME BLUE MOON, WORLI

RNA EXOTICA, GOREGAON WEST

Read more...

Inquiry against six bldrs in SRA scheme CM Promises Rejig, Seeks Transparent Guidelines

    Chief minister Prithviraj Chavan has ordered a probe against six developers after social worker Medha Patkar alleged that they were involved in illegal activities while executing projects under the Slum Rehabilitation Authority (SRA) scheme. The CM has also decided to overhaul the scheme, which is often alleged to be steeped in irregularities. 

    During a meeting last week, Patkar had told Chavan and home minister R R Patil that the six developers had produced misleading information on beneficiaries of the slum rehabilitation scheme. The CM promised her a thorough probe into the allegations and accordingly, principal secretary (housing) Debashish Chakrabarty on Friday wrote to her saying he would conduct an inquiry against Shivalik (Khar), Satra (Ghatkopar), Saiwala (Jogeshwari), Sumer (Chandivli), Shahana (Sion) and Samarth (Mulund) developers. "Once we receive a specific complaint from Patkar, we will conduct the probe within a month. We will decide on the next course of action after the inquiry," Chakrabrarty told TOI. 
    A senior Congress minister said following Patkar's allegation, Chavan also planned to modify the conditions for the scheme. "The government has received several complaints against developers involved in the SRA scheme. The most common charge is that the builders have fabricated the list of beneficiaries. In fact, the entire list of bogus beneficiaries of one project has been submitted to Chavan," he said. "In 
the backdrop of such irregularities, it is felt that instead of making it developer-driven, the scheme should involve slumdwellers more." 
    On the new guidelines, the Congress minister said during Chavan's interaction with social workers, it was proposed that slumdwellers should have the final say in the projects and under no circumstances, a developer should be offered an opportunity to hijack the scheme. 
    "More often than not, shantydwellers are left high and dry, while developers benefit; even small-time contractors have become leading builders," he said. Further elaborating on the proposal, the minister said once slumdwellers agreed to be relocated, the SRA should first float tenders for the construction of tenements and then for the auction of the vacated land. "Either Mhada or a private entrepreneur will build homes for the slumdwellers. Following the rehabilitation, tenders will also be floated for the auction of the land that have been vacated by the slumdwellers; the money will be used to meet the cost of construction of tenements," he said. The minister said the proposal would be placed before Chavan and later the cabinet for approval. "The CM is keen on a completely transparent plan." 
    Alarmed by the mushrooming of slums in the city, the late Shiv Sena leader, Bal Thackeray, had launched a plan to provide free tenements to the poor. A specialpurpose vehicle was also set up to make Mumbai slumfree within a timeframe. "It was Thackeray's dream project but the scheme failed to be implemented owing to the lack of political will," a senior Sena leader said.

Read more...

Only 66 tall buildings completed globally in 2012, fewest in 6 years

Mumbai:For the first time in six years, the number of tall buildings completed annually around the world declined in 2012. According to the annual year-in-review study by the Council on Tall Buildings and Urban Habitat (CTBUH), 

66 buildings taller than 200 metres were completed in 2012. Although the figure was the third highest in history, it was down from the 82 that were built in 2011. (On an average, a seven-storey building in Mumbai is approximately 24 metres tall). 
    CTBUH is an international not-for-profit organization and a source of information on tall buildings. In a report released last week titled 'Year in Review: Tall Trends of 2012', the council said the number of completions last year was slightly lower than expected. Some under-construction projects were delayed or stalled due to the consequential effects of the 2008-09 global fiscal crisis in several Western countries. Many of the projects forecast to finish in 2012 are expected to be ready in 2013 and 2014, with global completion numbers seen rising again next year. 
    With the addition of 66 in 2012, the number of buildings over 200 metres has almost tripled globally since 2000, increasing from 263 to 756. 
TOWERING OVER THE REST 

• Princess Tower (Dubai-413m) 

• 23 Marina (Dubai-393m) 

• Elite Residence (Dubai-380m) 

• The Torch (Dubai-337m) 

• Q1 Tower (Australia-323m)

Read more...

CM outlines new Dharavi redevpt plan

Mumbai: The much-delayed Dharavi revamp project will now be developed as a cluster of 13 phases instead of five bigger sectors, chief minister Prithviraj Chavan said on Monday. 

    Chavan has put the Rs 5,600-crore project on the fast-track, while setting a deadline of August for inviting bids for the phases. Chavan has planned to issue work orders by October-end. 
    The breaking up of project into phases will facilitate the bidding process while the outline and core norms will continue to govern the project as a township. 
    For the sake of this arrangement, a single developer will be allowed to bid for all phases or a cluster. "Monitored by a regulator, these smaller phases will be integrated, in terms of amenities and infrastructure. The regulators will ensure essential similarity remained in these phases," said an officer, adding that physical dimensions of old sectors will stay the same . 
    The government has also decided to appoint a bidding consultant, will ensure seamless integration of amenities and will be responsible for removing all hutments. "We are looking at a reputed firm for this work," said chief secretary J K Banthia. 
    Chavan has decided to prepare a formal sanction plan and will bring it in the public domain. The state has also decided to call fresh teners to select a project management consultant. 
    The Maharashtra government has, in the past, recieved flak for having little clarity on the project. 
    Ever since it was approved in 2004, it has run into hurdles. Tenders have been called off too. 
    Five years ago it had accepted a private consultant's advice for redeveloping Dharavi in five zones with each as a separate township since slum rehab schemes do not provide civic infrastructure like wider roads and hospitals. Sector 5 was to be developed by Mhada. 
    Officials said the arrangement will stay in place and it will not be included in the phases.

The government intends to abandon the sector-approach for the cluster way of 13 phases

Read more...

Mhada apathy to dispute irks HC

Mumbai: The Bombay high court on Tuesday expressed its displeasure over resistance shown by the Maharashtra Housing and Area Development Authority (Mhada) to a suggestion for the resolution of a dispute in a housing colony in Goregaon (W). 

    When a division bench of Chief Justice Mohit Shah and Justice Anoop Mohta suggested that the authority charge a premium to regularise illegal extensions made by the occupants of its colony, Mhada said it could not give its consent to the proposal as the case was not an isolated one and extensions had been made in a vast number of colonies in the city. 
    "It will set a bad precedent," Mhada's advocate P G Lad said. 
    The court was hearing a PIL by Manjula Veeran seeking a direction toMhada and the BMC to demolish the unauthorised constructions in Motilal Nagar I, II and III. 
    BMC counsel Anil Sakhare said the civic body would take action after the submission of all particulars by Mhada, including the building plan and the survey report indicating which constructions were unauthorised. He said there were some 6,000 structures and the illegal extensions could be regularised by paying a premium if the society came forward for redevelopment. 
    Justice Shah said: "You (Mhada) will get the premium, not BMC. This is the difficulty with public authorities. We want to give you something. You don't want it." 
    The justices said that since the land was owned by Mhada, if any scheme for redevelopment was submitted it would get the premium or the builtup area, or both, as per the development agreement. They directed Mhada to conduct a survey in six months and submit it to the BMC, which would undertake the demolition. 
    The judges said it would be open to the occupants to apply to Mhada for redevelopment permission, and the authority, while issuing a no-objection certificate, could ask for premium or built-up area. They said in case of redevelopment, the BMC would not have to demolish the unauthorised constructions as it would then be the developer's responsibility.

Read more...

Demolished Bandra slum is back within a fortnight Residents Say Shanties Prove Politics Of Vote Bank

The BMC demolished around 300 illegal shanties near Bandra Reclamation last month, on the order of the chief minister, but they have been rebuilt within two weeks. The slum is behind Nargis Dutt Nagar and the flyover that connects the Bandra-Worli Sea Link and the Western Express Highway. The people who live there are mainly migrants from Bangladesh and Nepal, and also from within the city.      Bandra residents believe the creation of the slum is a major attempt by politicians to build a vote bank, keeping in view the 2014 assembly elections. The plot the slum occupies belongs to the Maharashtra Housing and Area Development Authority (Mhada), which sublet it to the Maharashtra State Road Development Corporation (MSRDC) for ancillary activities pertaining to the construction of the flyover.      "Migrants are pouring into the city almost daily. The truth of this slum is simple. Elections are near and the slum's occupants will serve as a vote bank; 100% of the slum's vote will be for politicians who shut their eyes to the building of illegal shanties," said Anil Joseph, chairperson of the Perry Road Residents' Association.      Residents said that in the past, politicians have made voting arrangements by issuing fake photo passes and ration cards to slum-dwellers and then approving slum rehabilitation schemes.      "In 1994, Nargis Dutt Nagar started with 40 shanties, which used to be demolished by the BMC every now and then. But now the extent of this slum is unimaginable: it extends from the Bandra fire station right up to Rangsharda Hotel (near Lilavati Hospital)," said Joseph.      "The slum is not limited to a horizontal spread. Many of its constructions are multistoreyed. In 2006, a mysterious fire broke out in the slum," he said. "It gutted many huts, but there was no loss of life! Immediately after, a scheme under the Valmiki Ambedkar Awas Yojana (VAMBAY; see box for detail) was implemented in the gutted area and pucca houses were built."      Joseph said the MSRDC was going to put a retaining wall with barbed wires to protect its property and stop further encroachment. "We will be taking up the issue with the chief minister. MLC Ashish Shelar has spoken to the MSRDC for the construction of the wire wall. But proper fencing would need funding," said Anandini Thakoor, chairperson, H-West Federation.  A SCOURGE REFUSES TO GO AWAY BANDRA      In 1994, Nargis Dutt Nagar in Bandra Reclamation started with 40 shanties, which would be demolished by the BMC from time to time      But the slum prevailed over the BMC's efforts. Today, it extends from the Bandra fire station to Rangsharda Hotel near Lilavati Hospital      In 2006, a mysterious fire gutted many huts, but there was no loss of life. Afterwards, a project under the Valmiki Ambedkar Awas Yojana (VAMBAY; a centrally sponsored scheme for the benefit of slum dwellers) was implemented in the area      In the first week of December 2012, a new slum with 300 shanties cropped up behind Nargis Dutt Nagar and the flyover that connects the Bandra Worli Sea Link and the Western Express Highway      On December 22, the BMC razed the slum      On January 7, 2013, 100 shanties reappeared at the same spot      Bandra residents believe local politicians are encouraging illegal migrants from Bangladesh, and migrants from Nepal and those settled in the city to shift to Nargis Dutt Nagar so that they are able to create a vote bank for the 2014 assembly elections. Residents say the slum also harbours criminals  Times View: Act against slums before it's too late      Apolitician's hunger for votes is almost always the reason behind a new slum cropping up. This is abetted by a section of corrupt officials, who choose to look away from the problem till a settlement grows so huge that it cannot be demolished. The seafront is an ecologically sensitive area and the decimation of mangroves for housing slums can have a severely negative, long-term effect on the entire city. The BMC must act fast as soon as a slum takes shape rather than wait for citizens to raise the issue. There must be punitive action on wardlevel officials who allow the problem to fester; and citizens should identify politicians encouraging these illegal settlements and factor this issue in when they vote.

Read more...

Nod for use of no-devpt zones in denotified SEZs

Mumbai: The state government has decided to permit use of no-development zones (NDZs) for industrial, commercial and residential activity in the exit policy for special economic zones (SEZs). 

    A basic floor space index (FSI) of 0.5 on the gross area will be permitted in NDZ areas. 
    As an exit route, the state's new industrial policy permits conversion of denotified SEZs more than 100 acres to integrated industrial areas (IIAs). 
    The policy will also be applicable for SEZs that apply for denotification within six months of the policy coming into force. At least 124 out of 146 SEZs originally notified have failed to take off, as a result 29,000 hectares of land has been locked up. A developer is permitted to utilize 60% land for industrial activity, while about 10% could be used for commercial development and 30% could be used for apartments and facilities like schools, colleges, recreation grounds. 
    The release of NDZs could rake up another controversy, sources said. Under normal circumstances, the original land use reservation would become applicable on an SEZ's denotification and its utilization would be governed by regional DC norms. No industrial or commercial activity is permitted in an NDZ under these norms. 
    Defending the new initiative, a senior state official said it has been done to compensate for the loss of FSI upon denotification. A universal FSI of 1 is applicable to a SEZ. The government has also decided to permit a maximumFSI of 0.5 for IIAs situated in green (agriculture) zones (GZ) and urbanizable zones. An FSI of 1 will be permissible in residential or industrial areas. 
    However, chief minister Prithviraj Chavan said the policy had safeguards. "The development permission for commercial and residential activities will be granted only after development of infrastructure for the portion earmarked for industrial development and disposal of one-third of the industrial area," Chavan said. "The developer will have to set up 75% 'onsite infrastructure' within three years. The town planning department will approve the IIA layout, whereas building plans will be cleared by MIDC or CIDCO," he added. 
    An IIA will have to be developed within 10 years of sanction. "The policy takes into account needs of the workforce employed in industries, which has been overlooked in the past. It provides for their residential and recreation requirement near their place of work," Chavan said. 
Bias towards bldrs in industrial policy: BJP T he state's new industrial policy has come under sharp criticism from the BJP, which has alleged that the Democratic Front (DF) government drafted norms to "benefit developers at the cost of farmers". Leader of the opposition in the assembly Eknath Khadse criticized the policy. According to the rules, 10% land originally acquired can be used for commercial development, while 30% could be used for building apartments and facilities like schools and colleges. "How can a residential complex come up next to industrial areas? The pollution will create problems for the residents," Khadse said. "The farmers gave away their land for development. If a plot is not used for industrial purposes, then it should be returned back to them," he added. According to Khadse, most business houses put their money in Mumbai-Pune-Nashik corridor.—Sanjeev Shivadekar

Read more...

State scraps prime mill land ‘largesse’ to builder Former CM Ashok Chavan Had Given 7.6 FSI For Hotel

Mumbai: The state government has cancelled an abnormally high floor space index (FSI) of 7.6 sanctioned by former chief minister Ashok Chavan for a hotel project on the defunct Hindoostan Mills property at Prabhadevi. The government's decision is a major setback for the developer, Hubtown (formerly known as Ackruti), which purchased this six-acre land jointly with construction giant DLF 

for Rs 350 crore in 2007. It had planned to build a 60-storey hotel. 
    Chief minister Prithviraj Chavan is believed to have overturned his predecessor's controversial decision last month. "He was livid when told that the National Textiles Corporation (NTC) had valued its own Indu Mills property at a phenomenal Rs 6,000 crore based on the largesse given to Hindoostan Mills,'' said sources. 
    The state government was at that time negotiating with NTC to take over the 13.5-acre Indu Mills for an Ambedkar memorial. "The CM was intrigued at the reckless valuation done by NTC. There was no way the state government could pay such a large amount to NTC. It was then that the urban development department decided to revoke the high FSI sanctioned by Ashok Chavan,'' said a senior bureaucrat. 
    The developer is now left with a much-reduced FSI of 1.33, which will allow only 3.5 lakh sq ft of permissible built-up area compared to the 15 lakh sq ft it had envisaged earlier. FSI defines how much can be built on a plot. For instance, a 7.6 FSI would allow a developer to build 7,600 sq m on a 1,000 sq m plot. Other builders too sought higher FSI 
Mumbai: Hubtown MD Vimal Shah was unavailable for comment, but sources said the developer will now set up a residential building on the Hindoostan Mill land. However, the plot falls under the coastal regulation zone 1 and is reserved only for industrial purposes. 
    Last year, TOI had reported that NRI tycoon C Sivasankaran had sold his 50% stake in Hindoostan Mills for almost Rs 450 crore. Hubtown and financial investor Red Fort Capital, who had the remaining stake, purchased Sivasankaran's share. Sivasankaran had picked up DLF's 50% stake in the property for Rs 310 crore in 2009. 
    Government sources said another reason why the Hindoostan Mills FSI had to be rejected was because other developers demanded similar concessions. "The owner of SoBo Central mall at Tardeo wanted more FSI to build a hotel, citing the Hindoostan Mills case,'' said officials. 
    Officials said that some developers cunningly procured high FSI for hotels permitted under the 1967 development control rules (DCR), but simultaneously demanded building concessions allowed under the 1991 rules. Real estate sources said several developers procured much higher FSI under the garb of building a hotel and then slyly convert it into a "service apartment facility''. "They then surreptitiously sell these apartments on long lease,'' they said. 
    Meanwhile, the controversy over grant of hotel FSI has also stalled the redevelopment of the erstwhile Sea Rock Hotel at Bandra Bandstand. Last year, the 5.5 FSI project did not receive environmental clearance or approval under the Coastal Regulation Zone (CRZ) notification. The Maharashtra Coastal Zone Management Authority (MCZMA) raised queries about the project and refused to endorse it. The BMC too did not grant the project a commencement certificate. The Bombay high court too is hearing a PIL against the grant of such a high FSI to this project. 
    The Sea Rock project was earlier sanctioned an FSI of 2.5. However, in 2009, the then chief minister Ashok Chavan permitted additional FSI of 3.

THE PLOT In mid-2007, the Hindoostan Spinning and Weaving Mills (above), located near Siddhivinayak temple at Prabhadevi, was sold by its owner, the Thackerseys, for Rs 350 crore to Ackruti Nirman (now renamed Hubtown) and DLF. In 2009, NRI entrepreneur Sivasankaran picked up DLF's 50% stake in the property for Rs 310 crore. Last year, he sold his stake for Rs 450 crore to Hubtown and financial investor Red Fort Capital

Read more...

An optimistic future

Developers across the city are expecting favourable policies and industry status in the New Year, says NISHA SWAMI     While the end of 2012 witnessed the initiation of a few regulations by the government benefitting the realty industry, 2013 can be considered as the starting point for these policies to be executed. Several experts feel that 2013 would witness the much needed steps to be formulated for the realty sector.     Sukhraj Nahar, CMD, Nahar Group says, "The real estate industry is currently passing through a transformation. All of its participants have made serious efforts to bring transparency in 2012. Going forward, we feel this will help both industry players and stakeholders. The industry is still unorganised and its efforts with the government for awarding them industry status are in progress." Nahar also has a lot of expectations from the government in terms of various positive initiatives like priority lending from banks, immediate rate cut by RBI and single window clearance for project approvals.      The economy had its share of ups and downs during the last year, but it picked up in the end because of a few government initiatives. Samujjwal Ghosh, Head of Marketing, Lodha Group says, "The Indian economy slowed down between mid 2011 and mid 2012, but then bottomed out and started rebounding. This was partly because interest rates started falling and partly because the government started taking proactive measures to push up the economy in the last few months. Also, last year many developers adopted a wait and watch attitude due to changes in FSI norms and approvals, which will now change as the sector will be buoyant this year. This is good news for the industry as well as for customers being a win-win situation for both."      Lodha plans on continuing with the development of their city centre project New Cuffe Parade. Ghosh lists Wadala as a prime destination to invest in property in 2013 as it has proximity to the premium business districts of Bandra Kurla Complex and is the only confluence of the Monorail, Metro and Eastern Freeway.      Joint government efforts can help revive the real estate sector and take it to new heights. Lalit Kumar Jain, CMD, Kumar Urban Development Ltd and President National - CREDAI, believes that if the government shows concern towards the industry, they expect a lot from the government like the Finance Ministry and RBI working together to strengthen demand and supply by a special housing development policy. He says, "We also expect the Housing Ministry to work with the Finance Ministry and work out affordable housing through various measures in the Finance Bill."      Several essential issues in the real estate industry need to be addressed immediately. Approval of single window clearance, stamp duty and VAT, among many others, is important for the sector to grow. Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd says, "2013 is expected to be vibrant for the realty industry. The need of the hour is quintessential reforms to be passed along with the approval of single window clearance to ensure speedy approval. Matters which urgently need to be addressed include stamp duty, VAT, service tax and labour tax."      The year 2012 has seen maximum number of steps taken by the government to boost the realty sector. As a result developers believe that 2013 would be a positive year for the sector. A Kalpataru spokesperson says, "We are expecting 2013 to be more robust compared to the past few years based on the government's impetus on the infrastructure development including the Mumbai Metropolitan Region; coupled with positive steps taken by the Centre to find concrete solutions for issues in the industry." The Kalpataru spokesperson also feels that the Finance Ministry's motivation through softening of interest rates and lending more to the real estate sector will have a positive impact on both developers and consumers.  The real estate market could start to perform better as the easing of FDI norms will begin to show results during the second half of the year, believes Jain. He says, "The economy will also recover in 2013 which in turn will perk up the real estate sector in India. With the government trying to introduce developer and buyer friendly policies, the outlook for real estate in 2013 does look promising." QUICK  BYTES      THE SECTOR IS STILL UNORGANISED AND EFFORTS WITH THE GOVERNMENT FOR AWARDING INDUSTRY STATUS ARE IN PROGRESS      THE FINANCE MINISTRY'S MOTIVATION THROUGH SOFTENING OF INTEREST RATES WILL HAVE A POSITIVE IMPACT ON DEVELOPERS AND CONSUMERS

Read more...

Investment hotspot

Pune's proximity to the financial capital of India gave it an edge yet the Peshwa City somehow stayed in the shadows of Mumbai. Today, development of IT, ITES and automobile sectors has blazed a trail of growth quickly picked up and accelerated by others

    Pune - a city with a pleasant climate, peaceful atmosphere, quality education, plenty of career openings and great accessibility to businesses communities worldwide - is fast emerging as one of the most desired youth destinations. 
    The last two decades have seen 'Oxford of the East' grow at an astonishing pace. Pune's proximity to the financial capital of India always gave it an edge, but this city somehow stayed in the shadows of Mumbai. Today, development of the IT, ITES and automobile sectors has blazed a trail of growth quickly picked up and accelerated by others. 
    Pune has always been a city of the youth, thanks to its reputed educational institutes. This youth has now become a talent base for the service sector pulling them to Pune and retaining its young students as young employees! 
    Naturally, Pune has seen an exponential growth in its real estate segment. It has spread its wings to incorporate the huge demand for homes of every type for everyone. 'The city of Wadas' has turned into a city of newly minted housing societies and townships. This has brought another growing industry actively to Pune, construction industry which has been developing high quality, unique and highly creative real estate solutions for its new and dynamic clientele. 
    However, an analysis shows that though the increase in construction has been massive, there is scope for more. The city has in the last two decades spread out and occupied much of the surrounding unoccupied land, but the demand is for more. This massive construction growth and a steady demand fuelling it are a call for speedy and wellplanned civic infrastructure development. The last two decades have seen a growing and increasingly severe strain on the city's roads, electricity grid, public transport, drainage system and water supply among other things. 
    Need for redevelopment 
    Pune, cultural capital of Maharashtra, was a city of joint and extended families and old structures; mainly large houses or Wadas made of mud and wood, concentrated in the Peth areas. With emergent trends and the precarious condition of the older dwellings 
they are either vacant or not safe for occupation. 
    One of the main problems of old houses in the Peth areas is their precarious condition. These buildings have fallen into disrepair owing to various factors. Many of them have started collapsing and are one of the biggest dangers in monsoons. Large residences are not much in demand with the family size shrinking and the cost of their maintenance escalating. Not just the wadas but almost all the building, of various sizes and built mostly of wood, around that time have become too dangerous for habitation. Again, many of these houses lack basic modern amenities like lifts, security arrangements, modular kitchens, dedicated parking and so forth. 
    Peth areas were designed before the era of the automobile. This has resulted in lack of parking space in these areas as also traffic bottlenecks. Such issues have made redevelopment not only essential but also popular in older parts of the city. 
    Gajendra Pawar, CMD, Pinnacle Group says, "Sadashiv Peth is located in the heart of the city. Out here, one gets to see the cultural heritage the city 
has to offer. While investing in a property, the parking space is the main thought that lingers on in an investor's mind. With redevelopment, such issues can be handled. Public transportation is available 24X7 in this area. The residents of the area also have easy accessibility to restaurants, offices, shopping destinations, renowned educational institutes and so forth." 
CLUSTER HOUSING REDEVELOPMENT: NEED OF TIME 
    Fast growing and globally relevant Pune, though bright and new, is still at heart a traditional and culturally wellrooted city. This is the reason development and multidimensional growth have not been able to tarnish the popularity of the Peshwai Capital's central areas. The citizens are still attached to the main city, especially Peth areas. Highly prosperous under the Peshwa regime, these peth and gaothan areas are now seen redefining their identities without losing their cultural ethos. 
    A major problem, as discussed, in these areas is the lack of parking facilities. Almost all major roads are like small lanes. Since none of the old buildings and 'Waadas' have enough space for parking, thinking of buying fourwheelers has become more of a space restraint than an affordability issue. When they are bought, they just eat up space on an already congested and narrow road. Due to P1 and P2 policies, citizens have to change the parking side on every alternate day. Needless to mention there is hardly any scope for guest's vehicles. Besides disturbing peace of mind, this issue has invited complications right from traffic chaos, accidents, damage to vehicle and property to civic administration. A solution recently implemented in Mumbai where the government grants additional FSI to the developer against the parking spaceavailed may be most beneficial for Pune. Punekars will be the most relieved if this policy could be adopted under our current redevelopment process. 
    The Pune city, mainly the peths and gaothan areas, now need to grow vertically in term of availing enough space for parking. If the government comes up with a policy of approving 50 meters height instead of existing 21 meters, not only the parking space could be maximised but major roads and lanes could be cleared up leading to improved traffic conditions. Almost all developed cities in the world have adopted vertical growth pattern in construction. This is now the ideal time to revisit the existing policy and make amendments for the better. Especially, cluster housing redevelopment projects should be encouraged wherein maximum solutions could be found for developing and implementing smart and futuristic planning. Owners and tenants of old structures and Wadas can collectively come forward to establish an excellent model of housing redevelopment. Doing so, these people can avail better, bigger and smarter, modern and low maintenance living spaces in addition to enjoying ample parking facilities. 
    Other than basic safety of dwelling and safe parking, the new generation of Wada and old buildings residents of the Peth and Gaothan areas are expecting stylish and modern homes suitable and comfortable for their new lifestyle. These areas are in prime locations hence redevelopment will provide the young generation with new stylish and modern homes. Everyone is attached emotionally to these houses as they are homes of their childhood, hence redevelopment will provide them with the benefit of staying at the same place but in a new stylish home with modern facilities, spaciousness and the most of all parking space. 
    Rohan Pawar, executive director, Pinnacle Group, says, "Pune has been growing horizontally and not vertically. On the outskirts, there is a constraint to construction with regards amenities being provided to the investors like parks and so on. It is the need of the hour to develop core parts of Pune, such as Peth areas so that the residents could enjoy all the amenities at their doorstep or at least in their vicinity. Cluster housing will help develop the area and one can enjoy the peace and tranquility the area has to offer. Redevelopment also helps a city or a town to prosper, he concludes" 
    (Compiled by Sonia Rodrigues)

Read more...