Archive for April, 2011

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Property in Byculla goes for Rs 750 crore

Friday, April 29th, 2011

A seven-acre plot in Byculla Mumbai goes for Rs 750 crore. “The deal was signed almost a month ago. However, a formal announcement is awaited,” said the source. A seven-acre plot of Mafatlal Industries next to the Byculla zoo was sold for Rs 750 crore. The land was bought by Piramal Sunteck Ltd, a joint venture with Piramal Enterprises Ltd promoted by the Ajay Piramal Group.

However, a Mafatlal Industries spokesperson said, “We are in an advanced stage of negotiations with parties. However, nothing has been finalized.”

Last year, Mafatlal invited bids for the land and shortlisted three developers, Lodha, Peninsula Land and Kanakia. The price quoted was in excess of Rs 1,100 crore. However, the transaction could not proceed after the city collectorate, which owns the land, objected as the land was given on a 99-year lease to Mafatlal in 1913. A major portion of the term will expire in 2012.

Meanwhile, in 1999, Mafatlal Industries was declared sick by the Board of Industrial and Financial Reconstruction.

When the collector’s office learnt about the impending sale in September 2010, it issued a statement that the company did not have the permission to sell the land. “The land belongs to the collector and the state revenue department. They cannot sell the land,” Mumbai city collector C V Oak had said, adding that the plot, totalling 58,197 sq m or about 14.5 acres, was leased to then Sassoon Spinning and Weaving Company (current Mafatlal Industries) from 1913.

More News:  timesofindia

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CREDAI Mumbai to fight corruption

Friday, April 29th, 2011

CREDAI (Confederation of Real Estate Developers Associations of India) national president Lalitkumar Jain, said the developer community was being branded as being corrupt.CREDAI Mumbai to seek an appointment with the prime minister to discuss ways and means to check the cancer of corruption instead of indulging in blame game.

“The Confederation today presented a time-bound action plan to union urban development minister Kamalnath at the two-day 11th National Conference ( NATCON) of CREDAI in Singapore,” said a CREDAI official.

“This country is, sadly though, rated to be one of the most corrupt nations of the world. Any citizen of this country will feel hurt and humiliated. The real estate in India is rated to be the biggest contributor to this notoriety. I and all my colleagues in real estate feel greatly insulted, said Jain

He added that developers were victims of the system and not the beneficiaries. Jain said the real estate sector was being branded as the breeding ground for black money and corruption.

Talking about the long process of clearances, he said this process involved connecting with more than 150 people in about 40 departments of central, state government and municipal corporations. “After investing heavily in land, even a day’s delay in approvals adds to the costs. And in desperation and when speed becomes important, the concept of speed money creeps in,” he pointed out.

More News:  timesofindia

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Realty stocks will rebound in two years

Thursday, April 28th, 2011

India’s real estate stocks have attractive valuations after plunging 83% from their peak and are likely to rebound within two years, according to Macquarie Group.

India’s real estate industry is grappling with rising borrowing costs, shrinking access to credit and a decline in demand as record prices make homes unaffordable. The Bombay Stock Exchange’s 14-stock Realty Index has dropped from its peak in January 2008, while the benchmark Sensitive Index surged to a record last November.

“This is one of the most bombed out, neglected and despised spaces in Asia,” Mark Matthews, a Singapore-based strategist at Macquarie Group , Australia’s biggest investment bank, said in a phone interview. “It’s in a distressed environment like this that one can find value.”

India’s property index is trading at 1.4 times book value, less than half of the benchmark measure’s 3.4 multiple, according to data compiled by Bloomberg. The country’s developers are expected to face “large-scale distress” amid rising borrowing costs and shrinking access to credit that may force them into fire sales of assets,

Indian developers will have to repay Rs 1.8 trillion ($40.4 billion) of debt to state-run banks, private-equity funds and other lenders over the next two to three years, Amit Goenka, national director of capital transactions at the Indian unit of Londonbased Knight Frank,

More News:  economictimes

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Tough Time for Mumbai Developers for Getting Project Approvals

Thursday, April 28th, 2011

Mumbai Developers have had a tough time getting project approvals since the Prithviraj Chavan government has taken over. Tardy approvals created a drag on Mumbai realty sales volumes and project launches. According to sources, officials of the government have been reluctant to utilize any of their discretionary powers. This has led to putting on hold major decisions on key policies, including permissible floor space index.

A slowdown in approvals may hurt the timeliness and profitability of key projects. Leading projects such as the Mumbai International Airport Rehabilitation, DLF’s Mumbai launch have slowed down and a final verdict on the mega Bandra colony redevelopment is yet awaited

More News:  http://www.commonfloor.com/stories/tough-time-for-mumbai-developers-for-getting-project-approvals-3770


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Mumbai added 8L sq ft office space this year

Wednesday, April 27th, 2011

The city’s office market witnessed transactions totalling 8,27,105 sq ft during the first three months of 2011, according to a Jones Lang LaSalle (JLL) India report.

Five buildings completed this year added 7,95,562 sq ft of office space and brought total operational stock to 29.4 million sq ft. However, the overall vacancy level has been pegged at 13%.

According to the report, major completions includedtate ( Urmi Estate Supreme Chambers, ower floors), which has a built-up area of 3,00,000 sq ft, located in Lower Parel; which has a built-up area of 2,50,000 sq ft, located in Andheri (W) and Pranik Chambers, which has a built-up area of 1,20,000 sq ft, located in Andheri (E).

In addition to banking, financial services and insurance (BFSI) sectors, demand for office space in Mumbai came from the consulting, aviation, IT/ITES and other industries. The IT sector’s recovery from the financial meltdown has shifted activity towards the suburban precincts of the city where significant IT supply is in the pipeline,” said JLL head of research Abhishek Kiran Gupta.

The leasing activity, said the report, has been moderate this year after significant leasing in the fourth quarter of 2010. “Mumbai witnessed moderate transaction activity in first quarter of 2011 as major office occupiers of India Inc awaited the impact of Budget on their corporate real estate strategy for the next fiscal year

More News:  timesofindia

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Mumbai and Outskirts Seen 11% Growth in Rental Value

Wednesday, April 27th, 2011

Mumbai and the outskirts of the city has seen an 11% growth in rental value in the past year. The figure for Bangalore, Pune and Delhi has shot up by 13%, 11% and 9% respectively. The rent in South Mumbai had gone through the roof. It is still unaffordable. So, people are shifting towards the suburbs and outskirt of the city,” said a real estate expert.

Surprisingly, rental value in South Mumbai, one of the most preferred locations to stay in the city, has seen a dip. The Worli residential market saw a 21.31% dip last year, while the figure for Prabhadevi, Parel and Bandra (West) fell by 18%, 12% and 11.57%. However, the rental value in the suburbs too has shot up drastically. Borivli (West) witnessed a record 42.25% growth, while the rates have shot up by 35.04% in Powai, 28.32% in Malad and 20.40% in Kandivli (East). The Mumbai metropolitan region too has seen a ruse in rental value.

A real estate expert attributed the rise in rental value to exorbitant property rates in Mumbai. “People prefer to stay in rented homes instead of buying a house. Also, there is a huge influx of people in the city. As a result, there is a huge demand for rented homes,” he said. Government data compiled by the stamp duty department also shows that there is a 35% rise in the number of lease agreements being signed in the city.

More News:

http://www.commonfloor.com/stories/mumbai-and-outskirts-seen-growth-in-rental-value-3740

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Mumbai Realtors Insert New Clauses in Allotment Letters

Thursday, April 21st, 2011

Amid higher costs, slow demand and regulatory hurdles, many builders in the country’s hottest property market-Mumbai, are inserting new clauses to palm off some of the uncertainties to buyers. The allotment letters given to home buyers contain clauses like provisions for cost escalation, project abandonment, inability to commence construction, and also eventuality of non-disbursal of loan from banks. However, some of these clauses are not allowed under The Maharashtra Ownership Flats Act 1963 (MOFA).

Developers may include any clause they wish. But if they are contrary to MOFA model agreement, then it will be ultra-vires and the contract cannot be enforced legally as the provisions of law are statutory in nature and they will supersede contractual obligations,” said Vinod Sampat, advocate and President, Co-operative Societies’ Residents, Users and Welfare Association.

Under cost escalation clause, developers are seeking to recover hike in input costs above 10% from buyer on prorata basis.

In another clause governing possibility of abandoning the project, the developer shall be liable to refund the amount paid by the buyer without any interest or compensation within 12 to 24 months from the date of such event.

“In case the project is abandoned for any reason other than force majeure or on failure to give possession, the developer is expected to refund the amount paid by the customer with 9% interest under MOFA,” said another legal expert.

More News:  http://www.commonfloor.com/stories/mumbai-realtors-insert-new-clauses-in-allotment-letters-3650

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Society Should Create Awareness against Child Labour

Thursday, April 21st, 2011

As per the new model bye-laws 2009,co-operative societies should create awareness against child labour, says, Advocate Rajan R Hiranandani. The bye-laws further state that the society shall be required to create awareness in the minds of all the members for eradication of child labour.

One of the changes incorporated in the new model bye-laws 2009 for co-operative societies is that the society has to display legal provisions against employing child labour for household and other work on the notice board of the society. The bye-laws further state that the society shall be required to create awareness in the minds of all the members for eradication of child labour. If any member is found to have employed child labour, the managing committee should immediately contact the office of the Labour Commissioner or the Police Station or the concerned voluntary organisation and shall inform the same in writing to the Labour Commissioner.

The Child Labour (Prohibition and Regulation) Act, 1986 was enacted to control exploitation of child labour. The Act was enacted to prohibit the engagement of children in certain employments and to regulate the conditions of work of children in certain other employments. Under the Act a “child” means a person who has not completed his 14th year of age. Under the provisions of the Act, no child shall be employed or permitted to work in any of the occupations set forth in the Schedule of the Act or in any workshop wherein any of the processes set forth in the Schedule of the Act is carried on.

More News:  http://www.commonfloor.com/stories/society-should-create-awareness-against-child-labour-3641

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Monsoon 2011: Cleaning of clogged drains yet to begin

Friday, April 15th, 2011

Every year, the Brihanmumbai Municipal Corporation (BMC) gets into an overdrive to ensure the city’s clogged drains are cleared before the monsoon. An inadvertent delay in inviting a Rs 107-crore tender, though, has meant that work this year, too, has fallen behind schedule. There are fears that the city’s commuters and motorists could once again find themselves wading through knee-deep water during Monsoon 2011.

Usually, cleaning work at various nullahs starts in the first week of April and is officially completed by May 31. “But it is mid-April now and we have not finalized inviting tenders yet, as the process is awaiting clearance from the civic standing committee. As soon as that approval comes through, work could begin in a week’s time,” said a senior civic official from the storm water drain (SWD) department.

BMC works overtime to try and finish nullah cleaning work before monsoon but every year, it is let down by unscrupulous contractors and ignorant government agencies, which do not give no-objectiion certificates (NOCs)
easily for work to begin on drains cutting across their lands. This means that even after the deadline, the corporation has to grapple for solutions to finish the incomplete work on certain patches every year.

“Apart from this, there are some minor drains where BMC struggles to take its machinery. Despite knowing these teething troubles, nobody has bothered to come up with an alternative,” said BJP MLA Yogesh Sagar.

Refusing to take the blame, the contractors claim the ‘arm-twisting’ policies of the political parties in BMC are responsible for a delay in calling the tenders. In 2006, a drain’s contractor had committed suicide allegedly after being harassed by civic officials, who wanted him to either meet the deadline or take payment next year.

More News:  timesofindia

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Real estate prices likely to remain stable in Mumbai

Friday, April 15th, 2011

Real estate prices in the metropolis, one of the most expensive realty markets in the country, are expected to remain stable in the near future, a top industry official said today.

“The real estate prices may remain stable as the new supply is not going to come in the market and construction costs have gone up substantially,” Maharashtra Chamber of Housing Industry (MCHI) President Sunil Mantri told reporters on the sidelines of a property exhibition here.

The cost of construction has shot up by 30 per cent in the last one year alone. Hikes in bank interest rates have also slowed down the property buying process, he said.

The project approval process has slowed down drastically therefore the new supply is unlikely to come in the market, Mantri said.

More News:  economictimes

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