‘Land, quick approvals necessary for low-cost housing projects’


Government needs to ensure availability of land and speedy approvals for effective implementation of low-cost housing projects, real estate developers’ body NARDECO said on July 23.

“For effective implementation of low-cost housing projects, it is imperative that the government ensures availability of land at subsidised rates, fast approvals, property tax relief, funding support, additional FSI, connectivity to suburbs and creation of special residential zones,” National Real Estate Development Council (NARDECO) President Navin Raheja said in a statement.

Demanding infrastructure status for the sector, he said, “This will help the sector getting government incentives, subsidies and tax benefits. Besides, it will also lead to lower cost of funding and taking loans from financial institutions will become cheaper translating to more supply of affordable houses.”

He further said that upward revision of floor area ratio (FAR), ground coverage and population density norms are required on priority basis.

“In most states, the floor area ratio (FAR) density and ground coverage norms do not support the creation of affordable housing the long approval process is another major problem. In major cities where land cost is high, this is possible only under PPP model,” Raheja added.

Source: The Economic Times, Mumbai

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low budget flats in chennai,marg swarnabhoomi, aayush apartments

low budget flats in chennai-marg swarnabhoomi aayush apartments

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IT hubs like Chennai, Bangalore will see more SEZ developments


The relaxation of land norms for SEZs will have wide-ranging implications for commercial real estate development in the country.

SEZ in Chennai ,Marg swarnabhoomi

SEZ in Chennai -Marg swarnabhoomi

Instead of 25 acres which used to be the minimum required area for developing a single product SEZ, now SEZs can be promoted on even a 6.6 acre land as IT development has accorded higher floor space index (FSI is ratio of land area to built-up area) in many cities. Chennai, for instance, permits 3.75 FSI for IT development. As per the new norm, the building should have one lakh sqm area (10.76 lakh sq ft) to be classified as SEZ in seven major cities. In category B cities, the minimum built-up area specified is 50,000 sq metres and in remaining ones it is 25,000 sq metres.

The most encouraging aspect is that many more IT companies will now be able to launch their own SEZs. Previously, only the largest IT players could have their own IT SEZs, given the capital required to buy 25 acres land. Developers will now be able to aggregate smaller contiguous land parcels and turn them into SEZs.

The vacancy level was very low in SEZs located close to Chennai city. Even as about one crore million sq ft of small IT parks is lying vacant in the city and outlying areas, there is no space in SEZs. “Owing to relaxation of norms, at least two to three new IT SEZs will come up close to the central business district in Chennai” While SEZs fetch between Rs 40 and Rs 50 per sq ft as monthly rental, stand-alone IT parks are available at even Rs 20 per sq ft.

Further, some IT SEZ developers who have already met the one lakh square metre built-up area criterion will now convert the balance land for residential use, giving the mixed-use edge while also making the formation of many more walk-to-work residential projects possible.

Real estate developers will now be able to also divide up their land holdings and allocate smaller parts to IT companies to construct their own IT SEZs.

Another important outcome is that it will now become easier to exit from SEZs, given that the transfer of ownership of SEZ units – including sale – has now been allowed. Moreover, real estate private equity funds with foreign capital will now be able to do smaller deals, and this is bound to bring in more FDI into the sector.

 

Detailed development plan for ORR


Outer Ring Road

Schematic view of Outer Ring Road

The Chennai Metropolitan Development Authority (CMDA) is planning to prepare a detailed development plan (DDP) for the areas adjoining Outer Ring Road (ORR). The 62.3-km-long ORR connects NH 45 (GST Road) at Vandalur, NH 4 (GWT Road) at Nazarathpet, NH 205 (CTH Road) at Nemilicherry (Thiruninravur), NH 5 (GNT Road) at Nallur and TPP road at Minjur. Sources told Express that the Second Master Plan had identified areas along the ORR as potential areas for future growth.

The ORR was part of the recommendations of the First Master Plan for Chennai Metropolitan Area, to ease traffic congestion in the city by connecting the NH in the Chennai Metropolitan Area.

It is believed that the DDP proposed by the CMDA would focus on the grid of roads, aiming at good connectivity to the outer ring road, inter linkages and future requirements of physical and social infrastructure.

Interestingly, the proposal also comes in the wake of the development of a passenger-cum-freight railway line, linking Ennore to Vandalur on the ORR stretch, which planners feel will generate interest among the real estate developers. Besides, the State Government is also planning to build an inter-city satellite bus terminal in Vandalur for South-bound buses.

The CMDA is likely to drop the plan to develop a detailed development plan for Ambattur, which it feels has already developed. Ambattur was among the five peri-urban areas, for which the CMDA planned to develop DDPs more than four years after the Second Master Plan came into being.

DDPs are prepared under Section 27 of the Tamil Nadu Town and Country Planning Act and the maps prepared show the ideal use of each piece of land in the area and guide infrastructure development by various department and agencies.

Builders in Chennai Now Targeting Construction of Penthouses


A penthouse is the space directly below the roof of a building. They are different from other apartments in tow ways, that they are located at a higher altitude and offer luxurious lifestyle. The penthouses are located on the topmost floor of the building and are provided with some personal terraces ensuring privacy, and amenities that are usually not given with other flats or apartments. In Chennai, one can find numerous penthouses, which are available at very higher prices and are beyond the reach of middle class segment. There has been a rapid increase in the construction of penthouses in Chennai, which have thereby redefined luxury in real estate. These penthouses have been a major determining factor in increased capital values.

penthouse

Penthouses have been the sign of luxury and economic growth. The concept was first conceived in New York as there was space crunch in the city and these penthouses solved the accommodation problems in the urbane areas. With the passage of time, dwellers found some innovative ways to decorate these penthouses and later made big money out of it. The concept was later adopted by other western countries, and is now an important part of the residential segment in India as well.

The real estate developers have their own segment of buyers for these penthouses, as they are too costly to be bought by a commoner. However, there are chances that increased construction of penthouses in any town or city would lead to reduced green ecosystem and create a concrete jungle. The real estate builders have been somehow unable to provide their clientele with the desired features, as those are not included in the list of projects lack such features.

Although the builders offer some exclusive features such as smart home technology, automatic security & surveillance systems, fast elevators and Jacuzzis have already been added to the upcoming projects, so that they can lure more and more customers now.

The penthouses offer some extra features, which are usually not provided by the flats or apartments, and include:

·  Larger accommodation area.

·  Open-to-sky terraces.

·  High-end facilities and amenities.

It is in the regular practice to construct a penthouse in a minimum area of 500 sq. ft. According to Sandeep Mehta, the President of CREDAI and the Managing Director of Jain’s Housing and Construction Limited, states that the prices define luxury, and this is the reason why the pent houses constructed with an area of 3,000-4,000 sq. ft. are quite costly

This consideration has been the installation of elevators in buildings because the penthouses are positioned at the top most space of the building. In many cases the dwellers need to go through extreme and variable temperatures and humidity, because of their proximity to the roof.

Some penthouses are reused as bedrooms and offices, perfected with stairs and windows, though most remain difficult to access and are often used as warehouses. It also helps control the temperature by providing a large mass of moving air. Warm air rising from the lower levels of the building often gets trapped in the penthouse, creating in inhospitable atmosphere. However, in recent years, some of these penthouses have been insulated to help reduce cooling costs.

The penthouse means the space between the inner ceiling of the top floor and/or the roof. Penthouses can also be constructed in multi-story homes or one-story homes. Penthouses form a very important part of the real estate projects, but due to their very high purchase and maintenance costs, only a few can afford it.

Correction in the housing market may be round the corner


Home prices in Mumbai softened in the December quarter while price growth in other Indian cities slowed, two real estate consultancy firms have said, reinforcing speculation that a correction in the housing market could be round the corner. 

According to property consultancy CBRE, prices of new homes in India’s financial capital Mumbai were down 2-5% in the October-December period from the previous quarter.

correction-in-the-housing-market-may-be-round-the-cornerLiases Foras, another property research firm, said prices in the city had dropped 1%. Both said that the rate at which prices were growing in the other cities, too, had come down significantly.

“Pressure is building up. We are likely to see a correction soon if the sentiment remains the same,” said Anshuman Magazine, CBRE’s chairman and managing director for South Asia.

Data also showed a 16% quarter-onquarter drop in home sales across top cities, a sign that inventory build-up across the country due to economic slowdown could worsen. Over the last 12 months, home sales have dropped across cities (14% in Bangalore, 32% in Chennai, 25% in Hyderabad, 10% in the national capital region), increasing pressure on developers who are already facing funding problems.

“The situation is so bad that many developers have been forced to bring down the prices,” said builder Lalit Kumar Jain, who is also head of the Confederation of Real Estate Developers Associations of India (Credai).

CBRE said that while new launches in some parts of Mumbai happened at lower price points, other cities have started facing pricing pressure due to a flurry of new project launches. Another property advisor, Jones Lang LaSalle, said that while price correction has started in some areas of Mumbai, in most others, prices have remained stagnant.

According to Liases Foras, the top six property markets in the country saw close to 100 million sq ft of housing space being launched in the December quarter. It was the highest since the spike in project launches after the recession of 2008-09 and about 28% more than that in the previous quarter. “We’ve reached the tipping point and it may be the start of a correction,” said Pankaj Kapoor, managing director of the research firm.

Sales of new homes in India have dropped due to high interest rates and the job insecurity due to the economic slowdown. According to Liases Foras, unsold inventory at the end of December quarter was higher than the previous quarter’s at 602 million sq ft, which would take up to 29 months to be sold at the current pace of absorption.

Source :economictimes.indiatimes