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Wednesday, August 21, 2013

Re hits record low of 64.54

Mumbai: The rupee closed below the 64-level for the first time on Wednesday with the currency ending the day at 64.04, 81 paise below its previous close of Rs 63.23 against the dollar. The British pound also created a new record closing above the 100 mark at 100.42 as against 99.03 on Tuesday. 

    With most bankers feeling that the 65-level may be taken anytime now, economists are now talking about the rupee touching 70. On Wednesday, Deutsche Bank said that the rupee could fall to 70 in around a month's time. On Tuesday, UBS had forecast the 70 level for the rupee this year. 
    The rupee fell to an intraday low of Rs 64.54 as the dollar strengthened ahead of the release of minutes of the US Federal Reserves July meeting. If the meeting reveals that a US recovery is seen to be underway by Fed committee members the rupee may fall further on expectation that the Fed may start to withdraw its monetary stimulus. 
    Dealers said that markets were confused over RBI measures to bring down
long-term rates through buyback of bonds even as it sought to keep rates high at the shorter end. 
    "The RBI took steps on Tuesday to contain longterm yields and ensure that credit flows were not unduly disrupted by the recent currency stabilization measures. Juggling currency and growth concerns at the same time is not easy and if not done carefully it risks sending mixed messages about policy intentions. That would neither help the currency or growth," said Leif Lybecker Esksen, chief economist for India & ASEAN, HSBC Global Research. 
    The day started on a positive note for the equity markets as bonds staged the best recovery in four years with yields falling by 50 basis points. However, the fall in the rupee spread panic in equity markets with indices closing lower.


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State clears tourism hub in Gorai-Uttan


Mumbai: Nearly nine years after it was conceptualized, the Manori-Gorai-Uttan belt development plan to promote tourism in the region has been finally approved. The notification is to be issued through an extraordinary gazette this week, said urban development department officials. 
    Lourdes D'Souza of the Dharavi Beth Bachao Samiti, an umbrella organization that represents the seven villages of the Gorai-Manori belt, said they were opposed to the government's idea of tourism in the area. "Our stand is 'no' to tourism. This plan will completely destroy our pristine land and culture,'' she said. 
BOON OR BANE? 
Area adjoining the beach and the creek to be used for tourism Only resorts would be allowed. No casinos or SEZs Minimum FSI of 0.1, maximum FSI of 1 to be allowed in the area A 5-km coastal road to allow easy access to the beach The road to be connected to the Bhayandar-Manori road Two bridges to be constructed 
'Coastal road will be like Marine Drive' 
    The state has cleared the decks to promote the Manori-Gorai-Uttan 
belt as a tourism zone. After the idea was first mooted, MMRDA was appointed as a special planning authority (SPA) in 2004, replaced by the Maharashtra Tourism Development Corporation in 2007 and redesignated as SPA in 2008. It will continue to sanction all building plans in the region. 
    What this means is the seafront of this sleepy, predominantly East Indian Christian, 18km-long enclave will be made accessible to the public by a 5km coastal road restricted to the beach area. It will give an impetus to tourism by allowing resorts and tourist activities in green zones as well. 
    "The road will be on the lines of Marine Drive—the sea, road and then habitation. This is to ensure that the public has an unrestricted access to the seafront,'' said Uma Adusumalli, MMRDA officer in charge of the area's development plan. 
    For this road, the government will acquire land from private land owners by offering transfer of development rights, which can be used only in the notified area. There is no mention of casinos or a special economic zone in the development plan, she said. 
    Notwithstanding protests from locals, the bridge connecting Madh-Marve to Manori will be constructed along with another bridge near the now closed Gorai dumping ground to the other side of Gorai. 
    "There is only one arterial road from Bhayander to Essel World, Manori, which allows road access to the area. In the event of a crisis, people will have to be taken north and then south to Mumbai, which would mean loss of valuable time. Hence, planners felt an entry-exit on the south side must be allowed," said an official. With a large number of tourists expected to visit the region, planners said the livelihood of those who organize ferries will not be affected. The 20-metre arterial road will be widened to 30 metres and will connect to the Manori bridge as also the coastal road. 
    The area has more than 60 water bodies. Seven large water bodies have been identified for recreation purpose. An area of five metres around the water bodies will be developed as gardens and no construction will be allowed in this range. 
    Under the new DP, a minimum floor space index (FSI) of 0.1 to a maximum FSI of 1 will be permitted in the region. An FSI of 1 will be allowed in the gaothans and in the expansion areas. Resorts will be al
lowed an FSI of 0.3. In the new development areas, along with anFSI of 0.3, an additional 0.2 will be allowed. This is largely for the benefit of locals, said Adusumalli. 
    In the green zone, the FSI will be 0.1 and an additional FSI will be allowed by way of TDR or by paying a premium. Only ground plus one structures will be allowed in the area where theFSI is low. For gaothans, it will be two-storey structures. 
    Earlier the MMRDA had divided the area into tourism development zone I and II. These have been merged into a single tourism development zone. The preservation zo
ne that included peaks and hill slopes has been merged into the green zone. Here, the MMRDA will allow paragliding, camps, treks, shacks and so on. Residential and commercial activities, too, will be allowed. 
    Around 65% of the area is under CRZ I and III. All CRZ I areas, including mangroves, are to be preserved as per CRZ 2011 notification. The No Development Zones will be maintained as such and activities permitted by the Union government such as construction of a jetty or laying of pipelines. Only fishing and allied activities will be allowed along the coast. Advo
cate Godfrey Pimenta, vice-president of Bombay East-Indian Association, said on the face of it, the DP would encourage tourism and livelihoods. 
    Adusumalli said the DP would be applicable only for 10 years. "The infrastructure of the region will be developed jointly by the BMC, the Mira-Bhayandar Municipal Corporation and MMRDA.'' Gorai and Manori are under the BMC while the other villages are under MBMC.
    The reason for not allowing the plan for 20 years is that the region is currently low development. 

MANORI-GORAI-UTTAN DEVELOPMENT PLAN 
PLAN DETAILS & IMPLICATIONS 
    A 5km coastal road in Gorai-Manori to allow easy access to the beach 
    Road to be linked to arterial road that originates at Bhayander and goes up to Essel World, Manori 
    Area adjoining beach and creek to be used for tourism. Tourist amenity centres near the beach 
    Minimum FSI of 0.1 and maximum FSI of 1 allowed in the area. FSI of 1 for Gaothans and extension areas. FSI of 0.3 for resorts 
    Most area to be under no development zone and green zone. NDZ means 
NDZ. Only those activities permitted in CRZ I areas to be allowed here 
    Green zone to have FSI of 0.1 plus additional FSI of 0.1 through TDR or premium 
    All structures must be ground plus one in low FSI areas; two-storey to be allowed in villages 
    7 water bodies preserved as recreation areas 
    Land for road and area around water bodies to be acquired through TDR 
    Preservation zone to be merged with green zone but can be used for paragliding, camps and treks 

TWO BRIDGES TO BE CONSTRUCTED 
Bridge connecting Madh-Marve to Manori to be constructed to provide a second entry-exit from Manori-Gorai Another bridge from near the now closed Gorai dumping ground to Gorai on the other side will also be constructed 

WIDER ROAD 
The 20-metre existing arterial road from Bhayander that provides 
access to Gorai-Manori will be widened to 30 metres. Its alignment has been changed slightly so that it does not go through any gaothans 
GUIDELINES FOR COMPANIES THAT INVEST 
Only resorts would be allowed. No 
casinos. No SEZ in the current development plan 
Resorts 

    abutting the beach will have to provide toilet and shower facilities outside their boundary for the public 

TOTAL POPULATION 
approx 
1.5L







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Monday, August 19, 2013

NEARLY A MONTH TO GO FOR DEMOLITION Court directs cops to file FIR in Campa Cola case


Mumbai: A month and a half before the expiry of the deadline to demolish illegal floors in the upscale Campa Cola society in Worli, the Bhoiwada magistrate's court on Monday directed the police to register a first information report (FIR) against developers and civic officials. The court gave the directive following a complaint lodged by Chandru Khemani, who owns an eighth-floor flat in one of the buildings that is slated for demolition. 
    "Going by the Criminal Procedure Code, the magistrate had sought reports from the Worli police on two occasions, but they failed to submit one. The court then ordered that an FIR be registered," said advocate 
Pradeep Havnur, who along with advocate Jamshed Mistry, is representing Khemani who stays in Orchid building. 
    The complaint names the lessee of the land, M/s Pure Drinks Pvt. Ltd, builders PSB Constructions, B K Gupta, B Y Builders, M/s Krishna Developers, the then BMC commissioners and other civic of
ficers who failed to take action and officers of sub-registrar of assurances. The complaint has sought that the accused be prosecuted on the charges of cheating, forgery and offences under the Maharashtra Ownership of Flats Act. The court has slated the matter for next hearing on Tuesday. 
    Seven high-rises were 
constructed in the Campa Cola compound from 1981 to 1989. The BMC initiated action as the builders had illegally built additional floors. While the permissible Floor Space Index (FSI) granted to the builders was 1.86 lakh sq ft, the developers had constructed up to an FSI of 2.11 lakh without any sanction 
from the civic body, consuming an excess FSI of 24,779.8 sq ft. In February this year, the Supreme Court said all the floors above the fifth floor in each building will have to be demolished and also rules that the residents of those illegal flats could not get their floors regularized. After the residents failed to get any relief from courts, the BMC is 
supposed to raze 35 illegal floors in seven buildings in the Campa Cola compound from October 2. "All the accused, in connivance with each other, induced flatbuyers to purchase flats in their illegal floors, causing a wrongful loss to the complainant and other flat purchasers," Khemani claimed in his complaint. "During the period when the illegal constructions were carried out, officers did not initiate any action against them and thus aided and abetted with the accused for the illegal criminal activities by dereliction of duties," added the complainant. 
    The application said the accused had earned crores of rupees by selling the illegal flats and a proper investigation was required to unearth the conspiracy.



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Sunday, August 18, 2013

Royal Palms INTRODUCES A NEW BUSINESS PLAN

Under this innovative scheme, the simple equation works out to: land + FSI + sanctioned plans = priced to sell



    Royal Palms once again introduces its yearly aggressive price selling. The deal the company brings to the market is not only attractive but also innovative. The company is all ears to consumers' needs and doesn't believe in following the market trend of high price, low sales. 
    With a concern for the company's growth and consumers, the scheme underlines the group's motto: 'We are content with reasonable profits and happy people'. 
    After the innovation of the 80:20 scheme, which is now the widely accepted norm of the market, 
Royal Palms has come up with yet another lucrative scheme of 0% down payment, 0% interest, possession now, payment in the next 24-months interestfree installments. 

    Also, the new business plan of Royal Palms (selling FSI+land+ infrastructure+all sanctions for residential, commercial (IT) and serviced apartments) is targeted at mid-sized builders and actual users who could benefit by 40% in 
reduced costs. 
    Generally, developers face hurdles in land acquisition, title clearance and builder's permits, which result in project delays and cost escalations. In this scenario, Royal Palms' strategy to sell land along with sanctioned plans FSI as ready-to-go projects would infuse enthusiasm back into the realty sector, especially for the midrange builders and actual users as projects could start within a few weeks. It's an ideal option for residential, commercial (IT), hotels, service apartments, among others. 
    Moreover, the location of the project commands its own cost and price. Royal Palms Estates is a sought-after destination in view of the greenery it offers and the close connectivity with Powai and Western Express Highway. The township has developed into a bustling mini-city, recreation club, a lake, a shopping mall, restaurants, 5-star hotels, offices and IT parks. All this is in addition to residential properties that also 
include studio apartments, villas, bungalow plots and row-houses. Having delivered close to 2,500 residential flats and 1,800 offices in its sprawling 240 acres complex, Royal Palms is set to achieve a critical mass of 3,000 residential flats and 2,600 offices by the end of 2013. 
    The 40-year-old track-record of Royal Palms Group highlights all the business plans, which are based on the old-school method of reasonable profit, long-term view and happy buyers. Royal Palms always delivers on their promises in terms of deals that are ready for possession, sanctioned plans, and clear land title. The offer remains rock solid and it can't get more lucrative than this. 
    So, grab this golden opportunity with both hands and enjoy your bargain purchases!




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Govt okays FSI of 3 for all cessed bldgs


Mumbai:The state urban development department has issued a notification putting all A, B and C cessed buildings on an equal footing. 
    A floor space index of three has been extended to B and C category buildings (constructed prior to September 30, 1969). Buildings, pre-1969 tenanted properties in the island city, are classified into three categories: A (pre-1940), B (1940-1950) and C (1950-1969). Chief minister Prithviraj Chavan had assured during the monsoon session to erase the distinction. 
    The move will boost redevelopment of old and dilapidated buildings under Section 33(7) of Development Control Regulations. There are an estimated 19,000 A, B and C category cessed buildings in the island city. Of these, 2,000 are in B and C category. 

    Congress legislator Amin Patel, who had raised the issue in the legislative assembly, had said that developers were not interested in redevelopment of these buildings as there was no incentive. As all these buildings are in close vicinity, the government hopes that the FSI incentive will boost area-wise redevelopment. "Developers can combine three or four buildings and carry out a unified redevelopment. This will help in creating better amenities in the area," said Patel. TNN

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Tuesday, August 13, 2013

Tallest hotel project may turn into flats


Mumbai: Five years after the project was announced, D B Hospitality has shelved plans to construct India Tower (Park Hyatt), which was supposed to be the tallest luxury hotel in India, with 125 floors. 
    In its place, the developer-—who had battled the state for a higher hotel FSI of 6.29 all the way to the Supreme Court—is now contemplating alternatives like a highend residential building overlooking the Arabian Sea. 
    "The slowing economy and poor hospitality market conditions made the project unfeasible," said Vinod Goenka, chairman and cofounder of D B Group. "So we have decided to scrap the hotel plans. We are considering other alternatives." 
    The two-acre plot close to 
S K Patil Udyan at Charni Road, was bought by D B in 2005 from Suresh Estates Pvt Ltd. In December 2007, the SC directed the state to consider the developer's plea for a higher FSI of 6.29 to build a hotel. The hotel was to be operated by the Hyatt chain. During Praful Patel's tenure as the aviation minister, the Airports Authority of India sanctioned a height of 424m for the hotel. 
    Property analysts are not surprised by the company's decision, considering as many as 75 hotels across the country are displaying 'For Sale' signs.

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Sunday, August 11, 2013

SMART INVESTMENT: MUMBAI’S WESTERN STRETCH


The western stretch of Mumbai has seen huge infrastructural development and is considered to be quite a profitable location to invest in a property



    Mumbai is known for its fast pace and momentum of development and growth. The city, which offers good connectivity, is witnessing colossal residential and commercial projects, which are going on in every nook and corner of the western line. 
    Once, the only areas considered prime for housing purposes included south Mumbai, Bandra and Juhu. However today, areas like Andheri, Malad, Kandivali and Borivali on the western stretch, have seen huge infrastructure development and are quite popular locations for owning a personal abode. These locations have become extremely popular due to many reasons, such as availability of homes in a wide range to suit both, 
the high income group (HIG) and the mid-income group (MIG); good infrastructure, roads and convenient accessibility to transport (railway and airport); relatively low crime rate and social comfort; no disturbance from industrialisation; lesser slum areas; low pollution; sea view and developed areas with good amenities. 
    People are often unaware of the many factors they have to take into account while investing in properties. Before putting money in a property, investors need to ensure that they keep a checklist for evaluating a particular property. Buyers assume that the search for a property is always a complicated process and needs research in terms of permissions and location. Buyers in Mum
bai probably have to struggle through the property maze in the city a bit more than those in other cities. Here are a few parameters for investors who are thinking of buying a flat in Mumbai, on the western line. 
    While buyers are looking at a property, they need to have clarity on whether the land has a verified clear title; whether the chosen developer has the ability of completing underconstruction projects; whether the location has the suitability and potential to be a profitable bet and whether the project typology is correct. 
Conversion/approval of land for residential development: Ensure that the list of essential permissions 
and approvals required for the project is known - importantly from the point of view of urban/town planning, municipal corporation, environment and forests, airports, etc. Find out if any of these are obtained and which are the ones that are pending. IOD/CC: The municipal corporation of Greater Mumbai and Thane issues certificates called Intimation of Disapproval (IOD) and then the Commencement Certificate (CC) for construction of buildings. "Establish whether the builder has free and clear ownership of the land on which the project is being built. The project needs to have an IOD. This is a set of instructions that a developer needs to comply with, so that he can legally construct the project. The IOD is valid for one year and needs to be reissued if the project has not been completed in a year's time. The project also needs to have a CC in place, since development cannot commence before this certiicate is obtained. Buyers must verify this without fail," explains Om Ahuja, CEO - residential services, Jones Lang LaSalle India.Computation of area: In Mumbai, several terms like built-up, super built-up, saleable, carpet area, etc., are used to define the floor space being made available to the buyer. "The difference between the carpet area (the actual area between walls in a flat) and the area sold (saleable area) is called the loading factor. Maharashtra laws make it mandatory to sell flats on carpet area basis. The carpet area does not include the area of terraces, flower beds, balconies and car parks, which are granted free from FSI computation to each building. It is hence, important to understand the stated vs the actual carpet area and the loading factor being applied. Loading factor = saleable area carpet area/saleable area. This factor should generally not exceed 30 per cent. Hence, lower the loading factor, the better it is for the buyer. The term built-up area is used for the entire floor area, including the wall thickness, whereas the super built-up includes the common areas like lift, lobby, staircase, etc.," says Sarita Mantri, key-person, Mantri Realty. List of promised features: Buildings, projects and flats are often marketed with several features. It is important to get minute details of such features and ensure that they are mentioned in the agreements. Buyers should also question the penalties related to non-performance. "Approved construction plans are available and they must match with the design being promised. Such approved plans must be displayed on the project site at all times," opines Dhaval Ajmera, director, Ajmera Realty & Infra India Ltd. Maintenance: Developers usually take the lump-sum amount and recurring maintenance charges till such time that the building has been fully handed over to the society of owners. "It is important to understand the reasons and elements of such charges and the responsibility of the developer. Also, buyers should understand the total recurring costs they need to bear towards property taxes and maintenance each year," points out Mantri. Developers with a good reputation and experience are likely to have a professional approach with proper systems and processes in place. 
QUICK 
BYTES 
    
THE PROJECT NEEDS TO HAVE AN IOD AND CC SINCE DEVELOPMENT CANNOT COMMENCE BEFORE HAVING THESE IN PLACE. 
    TODAY, AREAS LIKE ANDHERI, MALAD, KANDIVALI AND BORIVALI ON THE WESTERN STRETCH, HAVE SEEN HUGE INFRASTRUCTURE DEVELOPMENT AND ARE QUITE POPULAR LOCATIONS FOR OWNING A PERSONAL ABODE.





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Friday, August 9, 2013

Buyers face 40% flat area cut in Khar bldg

   More than a dozen people who booked apartments in a controversial tower on 16th Road, Khar (West), are in a bind after large-scale building violations were detected by the Slum Rehabilitation Authority (SRA). They could lose up to 40% of their apartment areas. Also, possession of the flats will remain uncertain for a long time, though many buyers have made a substantial chunk of the payments. 

    On Tuesday, August 6, TOI did a searing exposé on how the developer, K Mordani Realty, used a little-known provision of the development control regulations (DCRs) to secure more floor space index (FSI) from the slum authority.
    Buyers of flats in the tower, which is near Khar Gymkhana, are unsure of their course of action. "We will meet and decide what to do now. The builder has told us we have nothing to worry about because he complied with SRA policy," said Jagdish Rohera, a buyer. But another buyer said there was not much the buyers could do. 
    What are the legal remedies before the buyers? Advocate Parimal Shroff said they could write to the SRA, furnishing them with all correspondence with the developer. "They should be allowed to participate in the SRA hearing, along with the builder. They can even drag the developer to the consumer court and the competition commission." 
    The builder sold every flat with a super built-up area of over 3,000 sq ft, keeping the carpet area at barely 800 sq ft. The market rate of each flat is around Rs 10 crore, at Rs 60,000 a sq ft. 
    The tower was cleared for only 12 floors by the BMC. But halfway into construction, the developer approached the SRA with a fresh plan and succeeded in getting the height increased to 20 storeys. An SRA inspection team found certain areas of the building illegally amalgamated into the flats. SRA CEO Nirmalkumar Deshmukh has directed the developer to rectify the illegalities within six months and threatened to withhold the tower's occupation certificate. 
    Building violations include merging the lift lobby area into adjacent rooms, illegally covering elevation features, making toilets and prayer rooms out of ducts and amalgamating the fitness centre and the meter room. The illegal features are shown in the tower's sale drawing. 
    "In every such case of violation, it is flat buyers who stand to lose the most," said a property consultant. 
    Recently, residents of Worli's Campa Cola society fought a losing battle to save their apartments from demolition. More than two decades ago, the builder violatedFSI and constructed way beyond what was legally permissible. 
    Another case pertains to people who bought spacious flats, each worth over Rs 10 crore, in a luxury building in JVPD. They are caught in a bind after the BMC found large-scale violations by the builder. The case is in the Supreme Court; the BMC is still to give the building an occupation certificate. 

FLAT PURCHASE CHECKLIST 
Check if property is freehold (ownershiprights are available for life) or leasehold (ownership rights remain with party leasing out property) 
    In leasehold, a) monthly outgoings are high; b) lease is for fixed period; c) lessee has to pay a premium and contribute to annual rent; d) every flat sale requires an NOC from the leaser (like in BKC); and e) leases have to be renewed at a premium 
Do a background check on developer 
    Find out if developer is a sole proprietorship, a private limited company, a private firm or a private partnership firm 
    Know the developer's past performance, past projects, credibility and so on 
If developer is operating with a power-of-attorney (POA), make sure the POA is registered. Find out if a developer with a POA has full power to execute an agreement for sale of a flat Check if title of the property is clear and marketable. Ensure that a solicitor has issued the title certificate When finalizing a deal, see if you are executing an agreement for sale or the developer is just handing you a letter of allotment. A letter of allotment leaves the buyer at risk till the agreement for sale has been executed and registered Make sure the developer has not taken a loan against the land and then issued a letter of allotment. This amounts to a dubious double sale till the agreement for sale is registered Check in the title if the land ismortgaged with any financial institution 
    If it is mortgaged, an NOC is required from the financial institution before an agreement for sale is registered 
The approved plan with commencementcertificate has to be issued by the authorities concerned 
    If these documents are not in place, it means you are booking a flat even before the project is officially launched 
    There are cases where the developer's plans don't get approval, but he has already collected a substantial amount as advance from buyers. If the plan is not approved, the developer can issue only a letter of allotment and not an agreement for sale 
Confirm the carpet area of flat being purchased Check cost of carpet area, floor rise, car parking, etc 10 Take into account the additional burden inpricing. Stamp duty, VAT and service tax add almost 10% to the cost 11 Avoid buying on top two floors. In case of an FSI or other violation, which leads to the authorities calling for demolition, the top floors are the first to go LEGAL REMEDIES FOR BUYERS 
    Write to the slum authority, furnishing them with all correspondence with the builder 

    File a case against the developer in the consumer court and the competition commission 
CAMPA COLA BUILDING CASE 
    The Supreme Court ruled on February 27 that all floors above the fifth in seven buildings in Worli's Campa Cola compound will have to be razed 
    The residents filed a review petition on April 1 
    The BMC issued a 48-hour eviction notice on April 26 
    The top court granted a stay on demolition, giving flat owners five months to vacate 
    The BMC is set to start demolition from October 2. The estimated cost of Rs 1.9 crore is to be recovered from residents





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Sunday, August 4, 2013

REDEVELOPMENT: THE BEST OPTION FOR DILAPIDATED BUILDINGS

Collapses of old buildings and the loss of lives related to them, have become a regular affair in Mumbai. Despite the redevelopment option, many continue to live in these dangerous buildings, risking their lives. 


    Monsoon doesn't just mean torrential rains in Mumbai; it also means building collapses. That is not to say that collapses don't happen at other times of the year. However, dilapidated buildings become more vulnerable during heavy downpours and tend to cave in easily. Every year, the Brihanmumbai Municipal Corporation (BMC) carries out a survey, lists some buildings unfit for human occupation and serves eviction notices to the residents. The latter however, continue to live in the decrepit buildings, putting many lives in danger. 
    Three buildings already collapsed in the first month of monsoon this year and many lives were lost. The number of casualties is only increasing, despite the availability of a surefire option: redevelopment. All the parties concerned - right from government authorities, civic officials, landlords and tenants to owners, are aware that redevelopment is the only solution and yet, redevelopment of old buildings has been moving at a snail's pace. 

RED-TAPE RAMIFICATIONS 
The Maharashtra government has introduced several regulations and incentives to promote redevelopment, including the cluster redevelopment scheme for dilapidated buildings constructed before 1940, largely in south Mumbai. However, the procedures for approvals are lengthy and complicated, aver industry pundits. Corruption among approving officials is another major hurdle, allege some. 
    "There are several reasons for the slow redevelopment of old buildings," opines Viren Kapadia, survey coordinator of Remaking of Mumbai Federation (RoMF), which submitted its pilot proposal in 2010 for redeveloping a cluster spread across 30 acres in the C ward. "We are yet to receive the LOI, while a private builder developing 16 acres in Bhendi Bazaar has already received it. The government process is very slow and corrupt," alleges Kapadia. According to a survey conducted by RoMF, the C ward alone has 2,950 old buildings (including 2,600 cessed buildings). Of these, only around 15 buildings have gone in for redevelopment so far. 

INADEQUATE INCENTIVES 
The government's frequent change of rules regarding redevelopment and a different set of incentives for different areas, is another reason for less redevelopment in the suburbs, according to architect BH Wadhwa, who is involved in redevelopment projects in Chembur and Ghatkopar. "In the city area, the government has provided an attractive FSI incentive for redevelopment projects, whereas in the suburbs, there is no such incentive. Hence, it is not viable for many developers. The government has recently announced that incentives will be provided for redevelopment in the suburbs too but it has not been implemented yet." 
    The lack of incentives is another reason, reiterates Kapadia. "The government has increased the flat area for the current occupants of these buildings in south Mumbai, from 225 sq ft to 300 sq ft, which has reduced the developers' profit margin. As a result, the response from developers is also unenthusiastic," he explains. Steps like a simplified procedure, single window clearance, approval on fast track and higher incentives, have been suggested by industry 
players for speeding up the redevelopment process. 
MHADA MAKEOVER 
The redevelopment of the old colonies of the Maharashtra Housing and Area Development Authority (MHADA) have also been slow, more so since 2010, when the premium option was closed and sharing of flats was made compulsory. Now, MHADA is planning to revamp its redevelopment rules and has submitted a proposal to the state government. NK Sudhansu, chief officer-Mumbai board of MHADA, gives details of the proposal. "Earlier, the incentive (freeFSI) was the same for both, single buildings and cluster redevelopment. Now, a higher varying incentive for cluster development, which can go up to 200 per cent, has been proposed. There is an increase in the entitlement area for current occupants and everything has been defined. We will have a model agreement, specify the qualification required for developers, etc., which will standardise the redevelopment process," he explains. 

QUICK 
BYTE 
THE MAHARASHTRA GOVERNMENT HAS INTRODUCED SEVERAL REGULATIONS AND INCENTIVES TO PROMOTE REDEVELOPMENT, INCLUDING THE CLUSTER REDEVELOPMENT SCHEME FOR DILAPIDATED BUILDINGS BUILT BEFORE 1940, LARGELY IN SOUTH MUMBAI. HOWEVER, THE PROCEDURES FOR APPROVALS ARE LENGTHY AND COMPLICATED. 
CLUSTER CATCH 
Large-scale cluster redevelopment is definitely an uphill task, as it involves obtaining consent from tenants and landlords; providing temporary housing/business accommodation for occupants; duly compensating the landlords; reconstructing the building and developing the infrastructure in the area. "In a cluster development, bringing the landlords and tenants of several buildings together and making them agree on redevelopment terms, is very difficult. That in itself takes a long time," informs Kapadia. 
    Even in standalone societies, obtaining the consent of members is a herculean task, which inevitably delays redevelopment. There are several reasons for the reluctance of members - fear of losing their homes forever; reluctance to move to distant alternate accommodations or transit camps (in case of cessed buildings); disputes with the landlord/builder over compensation terms; etc. Other causes are lack of sufficient FSI; no conveyance or Occupancy Certificate; etc. A case in example is the redevelopment of Laxminarayan CHS in Ghatkopar, which is yet to take off even five years after the move was initiated by its members. Since, no conveyance was executed by the landlord, the members applied for deemed conveyance and obtained it in 2011. The change in the property card is yet to come through, although the required procedure was started in the same year. "That is 
not a major hurdle now, since the landlord is cooperative but three members are not cooperating as they are demanding a larger area and because of them, all the other members are suffering and living in a dilapidated building, in fear of a collapse," laments the secretary of the society, Praful Mehta. Though, members of the Park View CHS in Andheri, are not living in fear of their forty-year-old building collapsing, they are keen on developing it before its condition deteriorates. The redevelopment process was started almost eight years back in this three-building complex, having 80 members. However, the members did not have the conveyance. So, they asked the builder appointed, to undertake the project to get the conveyance from the landlord. "The builder instead negotiated with the owners and purchased the entire plot, housing another society. He has now offered to give us the land on a long-term lease! We have filed a case in the court seeking conveyance in our society's name. We have also applied for deemed conveyance early this year," reveals Rajesh Joshi, chairman of the society. The problem is more acute in tenanted buildings, where neither the landlord nor the tenants undertake repairs. Disputes also arise between landlords and tenants in the redevelopment context. Tenants of a building in Mulund for instance, allege that since the landlord has plans of redeveloping the building into a commercial venture, he is trying to get rid of them by paying a meagre amount as compensation, which is much lower than the market rate. Some tenants also allege that municipal officials in connivance with landlords/builders, purposely declare their buildings as dilapidated. In all this confusion, it is hardly surprising that the redevelopment of old buildings is not taking place as expected. Hopefully, the new rules and policies being framed by the state government will give a fillip to the movement. 
SIGNS INDICATING THAT A BUILDING IS IN A DANGEROUS CONDITION: 
Large cracks on beams, pillars and walls. Cracks in ground floor tiles. Vibrations in the building. Fall of plaster and visible steel rods. Upheaval of floor tiles. Leakages in walls, which keep spreading. Sudden jamming of windows, doors. Inoperative lifts.





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India leads world in real estate price rise: Study In Last 2 Yrs, Tops List Of Cities In 43 Countries


    India has witnessed the sharpest appreciation in real estate prices in the last couple of years, according to data from the Global Property Guide, an organization which collates real estate data from across the world. 
    Property prices in Delhi witnessed the steepest appreciation of roughly 60%, when compared to cities from 43 other countries. While the study has information only for Delhi in India, official data suggests that Jaipur has seen an even faster rise in property prices of 67% over this period. 
    RESIDEX, the National Housing Bank's property pr
ice index which is also the source of Global Property Guide's Indian data, shows that except Hyderabad and Kochi, the property market has appreciated across the country since 2007. Prices have doubled in Faridabad, Pune, Bhopal and Mumbai and trebled in Chennai. 
    Pankaj Kapoor of real est
ate research firm Liases Foras, said, "The weighted average price in the Mumbai Metropolitan Region was Rs 5,600 a sq ft in 2009. This shot up to Rs 11,700 psf in 2013. In Mumbai, it was Rs 15,000 a sq ft in 2010, while in 2013 it is around Rs 18,000-19,000 psf." US realty rates up as economy recovers he Global Property Guide study shows that Delhi's 60% rise in real estate prices over the past two years is nearly 20 percentage points higher than Brazil's Sao Paulo, which is the second fastest rising international property market. From the first quarter of 2011 to Q1-2013, Sao Paulo, the largest city in the Americas in terms of population, witnessed a 43% increase in real estate prices. 
    Hong Kong, the third fastest rising market for the same period, saw its property prices going up by 33%. Dubai also appears to be in a recovery phase after the bust of its early 2000s property bubble. The city witnessed a 29% increase in its real estate prices in the last year. The West Asian city had witnessed a marginal decline in prices between Q1-2011 and Q1-2012. 
    In the past two years only 12 of the 43 countries saw double-digit growth in property prices. Most of these are emerging economies, not surprising given the fact 
that Europe has been battling the century's worst recession. Other countries where property prices went up by more than 10% are Turkey, Estonia, Philippines, Norway, Iceland, Indonesia, South Africa and New Zealand. 
    The data indicates that property prices in America, the world's largest real estate market, are increasing as its economy recovers. The US real estate market saw prices appreciating by 9% between Q1-2012 and Q1-2013 after declining over the previous year. Similarly, Beijing's property prices too registered 8% growth during Q1-2012 to Q1-2013 after dropping in the previous year. 
    Other large economies which have witnessed a positive growth in property prices are Germany and Japan, where real estate prices increased by 8% and 3% respectively. However, in Germany property prices fell by almost 2% over the last year after increasing by 9.8% between Q-1 2011 and Q1-2012. The property market remains sluggish in other large economies.



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