Central Mumbai to give highest investor returns in commercial real estate

Central Mumbai business district, including areas such as Lower Parel, Dadar, Prabhadevi, is expected offer 19% returns to investors in the next five years, which is highest among the business districts in the country, said a new study.

Central Mumbai is expected to have rental growth of 47% and capital growth of 63% in the next five years.

Mumbai's secondary business districts which includes Andheri, Jogeshwari, Goregaon and Malad, next in the list with 15% investor return per annum. The business district is expected to give 28% rental growth  and 42% capital value growth in the next five years, said a report by Knight Frank Research.

“The comparative strength of a city’s office market is primarily dictated by factors such as availability of talent pool, quality infrastructure, domestic & international connectivity and favourable government policies among others. As per our forecast horizon (2013-2017), the overall office market scenario in Mumbai is likely to improve," said Samantak Das, head of research at Knight Frank.

Chembur locals seek exclusive residential status from plan

The residents of Chembur are unequivocal about what they want from the new development plan – a pure form of residential reservation. In a meeting held on Sunday to discuss the plan, residents were of the view that commercial reservation should not be brought into Chembur, which has, until recently, enjoyed an overwhelmingly ‘residential’ status.

Having residential-commercial (RC) and commercial-residential (CR), they said, would take away peace of the area, in addition to creating a slew of problems.

The plan proposes the mixed category of RC and CR for the area. “An RC would mean 51% residential and 49% commercial reservation,” said Anil Dashetkar, an architect who made a presentation at the meet.

After a brief introduction on the master plan, residents were asked to write letters stating their objections. “Having a mixed reservation is something we are totally against. It will make the area more chaotic and create a problem in the style of living,” said Rajkumar Sharma, AGNI member.

“Chembur is a disaster prone area. It has places like RCF (Rashtriya Chemicals & Fertilizers Ltd) and BPCL (Bharat Petroleum Corp Ltd), and pollution from dumping ground. The master plan may not be affecting RCF and BPCL, but their existence does affect us,” added Sharma.

 source:DNA

Slashed home loan rates set to revive the realty market

With the country now taking a huge leap towards development and with the new government focusing on creating affordable homes for every Indian in the next few decades, it doesn’t come as a surprise to see banks doing their bit to help potential buyers invest in homes. Private banks are now on a home loan rates slashing spree to attract buyers.

ICICI Bank is the latest establishment that has joined this bandwagon and has reduced its home loan rates by 10 bps (basis points). This initiative will not only strengthen the market (after the lull the real estate industry faced during the election season) it would also push home buyers to invest in homes. These techniques used by the banks will revive the realty scene across the country and will accelerate credit growth in terms of housing loans. The banks will receive an added advantage as the improving liquidity will ease the pressure of funds.

Although the slashed home loan rates are valid only for a limited period of time, this technique is sure to be a hit amongst potential buyers as the realty scene in Tier II cities is considered to be alluring according to a recent survey. And with buyers postponing their home buying decision in the hope of a stable government, the erosion in the loan rate margin will now urge potential buyers to consider buying a home as they would be able to save a considerable amount.

Besides just the banks and home buyers, developers and builders also stand to gain from this move. High property prices, high interest rates and most importantly the election lull had put the real estate industry in a tough spot. Incentives such as these would encourage hesitant buyers and will bring them back into the market.

5 things a home buyer should know about the Real Estate Bill

The cabinet approval of the long pending Real Estate Regulatory Bill is a positive first step towards bringing in the much needed transparency to the sector. The Bill will bring about a common regulatory platform for all stakeholders in the industry thereby ushering in a higher degree of accountability amongst builders and sales intermediaries.

The Bill in its current form applies to both residential and commercial real estate, and is a far more comprehensive and holistic in approach, addressing both the regulatory and development oriented aspects of the industry. The following are the 5 notable features:

1.     Creation of statewise regulatory authorities for the sector

2.     Mandatory registration of real estate projects and agents

3.     Mandatory public disclosure of all project details. This will go a long way in ensuring easier scrutiny on compliance to approved plans, progress on statutory approvals etc

4.     Functions and duties of a promoter are clearly defined. This will bring in greater accountability on the part of builders and give room for a clear locus standi for buyers to pursue legal proceedings if any against errant builders

5.     Builders are required to deposit 50% of the amount realized towards bookings on a project in a commercial bank account within 15 days of receipt, and deploy the funds for construction of the project.

Source:INDIAPROPERTY

MHADA to redevelop 93-acre BDD chawl cluster

After years of waiting, residents of the century-old Bombay Development Directorate (BDD) chawls can look forward to having better and bigger living spaces.

The state government has finally announced the cluster development scheme for the British-era chawls which occupy 93 acres across Worli, Naigaon, NM Joshi Marg and Sewri.

The state-owned Maharashtra Housing and Area Development Authority (MHADA) will be in charge of the project to redevelop the chawls. A decision in this regard was taken on Thursday by chief minister Devendra Fadnavis after a meeting with MHADA officials.

“The century-old chawls are beyond repair, as evidenced by their structural audits,” said Chandrakant Patil, Minister for the Public Works Department, which owns the property.

Interestingly, the Public Works Department had spent a whopping Rs140 crore in past seven years to repair, maintain and clean up the dilapidated chawls.

The three-storey buildings, home to nearly 16,553 families, contain 160-square-foot tenements with common bathrooms and toilets.

Redevelopment may cost the state over Rs2,500 crore.

The project will comprise new houses of up to 550 sq ft, and will yield a stock of low-cost houses for sale.

source:DNA

State to give up lease hold properties

Permanent ownership will be given by charging ready reckoner rates

The Maharashtra government has decided to give permanent ownership to government property lease holders by charging as per the ready reckoner (RR) rate. What does the revenue minister say? While talking to dna, revenue minister Eknath Khadse said that most of the government properties across the city have been given out on 30 to 90 years’ lease. “These property holders have to renew the lease periodically and each time they do this have to run from pillar to post to obtain permission from various government agencies. We have decided to give these lease land holders permanent ownership of their plots and buildings,” Said Khadse. “We will ask them just to pay the government’s prevailing ready reckoner rate according to the area or size of their plots. By paying this amount, they will also get the right to redevelop their properties. Besides, they can also avail the given floor space index (FSI) and transfer of development right (TDR). Once the charges are paid, the government will not have any right on these properties,” he added. Will govt decision resolve the lease hold property issue in city? The minister further said that this move will resolve the issue of lease hold properties once and for all. Most of the lease hold properties are located in south Mumbai. Over 1,100 properties were given on lease on the princely rate of the British period. What do property experts say? Atul Nemade, property expert, welcomed the government decision. “Due to the lease, most of the tenants of the properties could not redevelop their buildings even if they were dilapidated. There are a lot of complications. Now, all these buildings can be redeveloped and that will be a major sigh of relief for the people,” he said. Khadse said that by taking this decision, the government will get some revenue as well. “Currently, these property holders pay mere rent to the government. We will set up a committee soon and when we get a detailed report, the final decision will be taken,” said Khadse. source:DNA

Giorgio Armani to design uber luxury apartments in Mumbai

His name has always been associated with the neat and clean designs he creates. The well tailored suits or the lip-smacking food at his elite restaurant- Giorgio Armani is a name to be reckoned with. While we might have considered wearing his famous ‘power suits’, how about ‘living’ in a suite that has been designed by him. The Italian couturier is all set to design exclusive apartments in The World One Towers situated in Upper Worli, Mumbai. Promoted by the Lodha Group, the aspiring project is cited to be one of the world’s tallest residential building and the group has roped in Armani’s interior design studio-Armani Casa to design apartments, villas and common places.

While Armani has designed the interiors of residence at Burj Khalifa, Dubai, this is the first time he is doing a decor project in India. Uber luxurious flats designed by him are likely to cost INR 50 crore. The 3 and 4 BHK apartments here depict Armani’s personality be it in the upholstery, the furniture or even the basic fittings. The Italian maestro offers French windows that allow home buyers to sit back and take in Mumbai’s skyline and the scenic view of the Arabian Sea. Hues of beige, grey, moss green and black dominate the interiors.

The three tower project is expected to burn a whole in your pocket as homes here are staggeringly priced and sold on ‘invitation’ only. While 3,000 square feet apartments in 117 storey World One Tower are cited to cost an average of INR 9.5 crore and duplex mansions with 360 degree view are likely to cost INR 100 crore, 3 BHK homes in World Crest is likely to cost and average of INR 8.5 crore. Talking to Bombay Times about India’s real estate scenario, Armani said, “With the construction of an extraordinary real estate complex such as this one, Indian real estate sector has definitely come of age on the global stage because it is not just the tallest residential building in the world, it’s also an exceptional work of architecture.”

He goes on to talk about adding his personal design atheistic to these apartments, “I have collaborated on a research project in which I became deeply involved, as every architectural solution, from the layout of the rooms to the furniture finishes, was designed to encourage intimacy and a sense of relaxation and well-being. In particular, the furniture and furnishings was arranged to encourage positive energy flow. I also introduced elements to reference the project’s country of location: so there is fretwork, craftsmanship and detailing, with the metallic reflections of white gold leaf, liquid metal and special wall finishes, in homage to the rich iconographic culture of India, reinterpreting its most representative themes in a modern key. Thus, a fascinating, far away culture becomes a unique and symbolic project element.”

source:Indiaproperty