Mumbai to get 32 four-storeyed parking lots

Mumbai to get 32 four-storeyed parking lots

MUMBAI: The state government has approved 32 public parking lots under the revised parking floor space index (FSI) policy, creating space for over 30,000 vehicles in the city.

Of the 32 approved parking spaces, 20 are located in the island city, nine in the western suburbs and three in the eastern suburbs. In all, the BMC received 70 proposals, of which 32 have so far been approved by the state government. Another 11 proposals cleared by the BMC are awaiting the government’s nod.

To encourage private developers to build public parking lots, the state government in 2008 had announced a policy under the Development Control Regulation (DCR) 33(24) which would grant the developer up to four FSI in exchange for construction of parking lots. But the original policy had to be revised after experts termed it as builder-driven.

Under the revised policy, the parking lot floors are restricted up to four, the minimum area of the plot required to avail of the policy has been increased from 700 sqm to 1,000sqm in the island city and 2,000sqm in the suburbs. Under the original policy, builders had proposed to build 12-15 storeys of parking spaces in exchange for the huge bonanza in the form of additional floor space index (FSI), the ratio of which determines how much can be built on a plot.

Under the old policy, the government had approved proposals for 26 parking lots of which 11 were given commencement certificates (CC). However, after the revised plan was announced they were asked to amend their plans and resubmit them to the BMC.

The 32 approved proposals include 26 proposals which were amended and re-approved.

“All the 32 parking lots have been approved as per the revised policy. Those that were given the CC earlier have made the changes or are in the process of making the changes to adhere to the revised norms,” said additional municipal commissioner Aseem Gupta. He added that the BMC has so far received Rs 250 crore as premium for the extra FSI.

Once the construction of the parking lots is completed, the developer has to hand them over to the BMC which will operate them. Currently the BMC has 92 functioning parking lots in the city under the ‘pay and park’ scheme, with space to accommodate 10,314 vehicles.

Is it a good time to buy Property?

Buying a house has high aspirational value in India. However, in the recent past, property prices have not shown any signs of correction, forcing many to live on rent. A study by ArthaYantra compares property prices and rentals in seven top cities. Know the cities in which you can buy a house and where it’s more cost-effective to rent.

It is often said that anytime is a good time to buy property if it is for your own use. Only if the property is bought for investment should the buyer worry about the price, cost of capital and other factors. However, property prices are continuing to rule at high levels and there are no signs of a significant correction. In Mumbai, for instance, the average price of a 1,000 sq ft house is 1.09 crore. In the Delhi/National Capital Region (NCR), it is a tad cheaper at 1.08 crore (see graphic), but still out of reach of the average buyer. Even if someone earns 8 lakh a year and saves 25% of his income, he will have to wait for eight years to accumulate the 20% down payment in Delhi or Mumbai.
According to a detailed study by Hyderabadbased financial advisory firm ArthaYantra, it is more cost-effective to live on rent than to buy a house in a city. ArthaYantra compared the property prices with rentals in seven top cities across India, taking into account the income and saving potential of the buyer, the cost of capital, as well as the increase in property prices and rentals. “Our research says that in the current situation, it is preferable to rent a home than buy one,” says Nitin Vyakaranam, CEO of ArthaYantra.
A key outcome of the study is the ArthaYantra Buy versus Rent Score (ABRS) assigned to each city (see page 11). The ABRS is an objective indicator of whether it makes financial sense to buy a house or live on rent in a particular city. Since affordability is a function of income levels, the ABRS is calculated for six income levels, beginning from 8 lakh a year up to 25 lakh a year. With a score of 55 across all income levels, Delhi/NCR is a clear candidate for living on rent.
However, there are pockets of affordability in several other cities. In Kolkata, Pune and Hyderabad, it makes more sense to buy a house if your income is above 15 lakh a year. This is because property prices are within reach, while the rents are comparatively high. This is reflected in the short break-even horizon in Kolkata. This is the time during which the decision to buy becomes financially viable. According to the ArthaYantra study, a buyer in Kolkata will break even within 12 years of purchasing a property. In Delhi, it will take him 16 years.
If you plan to buy a home, go through the excerpts of the report for more such nuggets of information. It might help you in taking an informed decision on buying a house or renting one. Methodology
ArthaYantra analysed the costs associated with owning a house or renting one across seven major cities, including Delhi/NCR, Pune, Mumbai, Hyderabad, Bangalore, Kolkata and Chennai. Here are the assumptions used in the study.
SOURCES: Property prices and rentals of residential properties were collected from multiple sources, including the National Housing Board, real estate aggregations and more than 100 estate agents in the cities included in the study.
Assumptions

• Sale price and rentals are for a 1,000 sq ft property.

• 20% of the cost of the house is considered as down payment.

• The loan tenure is assumed to be 15 years with an interest rate of
10.50% per annum.

• Average savings rate is assumed to be 25%.

• The minimum gross income required to buy a house is calculated by considering 50% of monthly take-home salary as monthly EMI.

• Gross income of the individual is assumed to rise by 10% annually.

• 1.5% of the property value is considered as property tax to be paid.

• The rent is assumed to increase by 10% annually.

• Real estate as an asset class is considered as having the same properties as other asset classes.

• The ownership/buy case considered is for self-occupancy.

 

Why it is smart to rent
Fools build houses and wise men live in them, goes an old saying. Given the high property prices in most metros, living on rent is perhaps the smartest financial move you can make today. As the ArthaYantra study has shown, in most cities and income ranges, living on rent is a better option than buying property at the current, overheated levels. Here are a few advantages of living on rent: Flexibility: If you don’t own the house you live in, you can move to another location without any inhibitions. This also means not having to forego career opportunities that come your way in a distant suburb or in another city. Home owners will necessarily look for jobs at places close to their homes, but tenants have more options. Liquidity: Buying a house is one of the biggest financial decisions in one’s life. It sucks up the liquidity of the household and leaves the buyer with very little elbow room. In their desire to minimise the EMI, people often liquidate all other investments and savings. This can be disastrous for your finances and can put you in a spot in case there is a financial emergency. Savings: The rent you pay is likely to be only a fraction of what the EMI would have been. Use this to your advantage by saving the difference in a safe, yet liquid, option. Disciplined saving can help you accumulate a considerable amount, which can serve as the down payment for your house when you decide to buy one. Debt mutual funds are a good avenue to save for such a financial goal. No stress: Despite the rosy picture painted by analysts and government agencies, the economy is not in a very good shape. If things worsen, we might see a replay of 2008. A tenant will find it easier to tide through the hard times than a home owner with a huge EMI to service.

 

 

 

What you should do
How buyers should use ABRS scores to make informed decisions.
DELHI/NCR: The low rental values compared with high property prices make it a place affordable for renting since the home loan EMIs are high. It is advisable to live on rent if the salary range is 8-25 lakh. KOLKATA: The ABRS score of 75 for a salary range of 8-12 lakh indicates that the rental value is critically high, but an individual can’t afford to buy a house. For someone earning 13-25 lakh is better off owning a home than renting it. MUMBAI: The score of 65 signifies that though the rents are high, it is advisable to rent because the property prices are also high. The EMI payments to be made in case of ownership may not be affordable. PUNE: For a professional with a salary range of 8-11 lakh, it is advisable to rent. A professional with a salary of 12-15 lakh falls in the neutral zone. He can afford to buy, but will have to make a few adjustments in his lifestyle in order to afford the EMI payments. Those earning over 15 lakh should buy. HYDERABAD: If someone is earning 8-9 lakh a year in Hyderabad, he should live on rent. If the income is 10-11 lakh, it is advisable to buy, but he will have to make a few adjustments. Those earning more than 12 lakh are advised to buy. BANGALORE: The score of 55 for a professional with a salary range of 8-14 lakh signifies that the monthly cost of renting is cheaper than buying. The low rental prices also mean that though someone with an income of more than 15 lakh can afford to buy a house, renting is a better option. CHENNAI: The score of 55 for a professional with a salary range of 8-19 lakh signifies that the monthly cost of renting is cheaper than that of buying by more than 70%. The low rental prices also mean that though a professional with a salary of more than 20 lakh can afford to buy a house, renting is better.

Can housing societies refuse tenants?

Sumanta Layak, 25, is used to rejection. Whenever he has to look for a house on lease in the National Capital Region, he goes through a harrowing time. Layak is well-qualified, has a well-paying job and has no criminal history. Yet, he is refused rental accommodation by most owners of housing societies. The reason? He is single. “Being single is the biggest disadvantage if you are looking to rent a house in the metros. This is because most housing societies disallow their members from leasing their properties to bachelors. So, even if the owner wants to give it on rent to a group of singles, the housing society won’t give him a no-objection certificate (NOC),” he explains.

According to real estate experts, being single is not the only reason that people find it difficult to rent a house in the top cities, though it is the most common one. “The society feels that a group of singles is likely to rough up the place and create nuisance for other society members. Besides, bachelors typically don’t stick to a place for long and this doesn’t provide stability in rental income compared with that from families,” says Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association.

The other reasons for refusal (see graphic) include keeping pets, such as dogs and cats, for fear that they will dirty the society or harm the children. “Besides, people with certain meal preferences are known to have been denied tenancy. There were some media reports as well about people belonging to a certain religion being denied permission by the housing society,” says Prabhu.

Can housing societies frame their own laws?
If legal experts are to be believed, the housing societies can indeed frame their own laws. According to Ravi Goenka, advocate, Goenka Law Associates, there are broad guidelines, or bye-laws, that every housing society adopts when it is registered. These rules and regulations govern the day-to-day functioning of the housing society and are crucial to its smooth running.

“These guidelines are typically framed under the Co-operative Societies Act, which is a Central Act. This provides specific guidelines for a society to be registered with the municipal corporations, its governance structures, common area maintenance rights, dos & don’ts, accounting practices and various other covenants related to leasing/ purchasing a house within the society,” he explains.

The Act also offers a degree of flexibility to societies to add regulations of their own, he adds. “For instance, if the housing society has made a rule for tenants, according to which they cannot park their vehicles in the parking slots allotted to members, then they have every right to enforce it,” he explains.

Can the housing society overrule a flat owner?
Om Ahuja, CEO, residential services, Jones Lang LaSalle India, explains that though it is the legal right of the owner to lease his property, the housing society in which the flat is situated, too, has a say in it. “Individual societies are legally empowered to deny tenancy based on their bye-laws. In many cases, such bye-laws are interpreted in a certain manner in order to achieve this. However, they have no constitutional right to do so,” says Ahuja.

Besides, the housing societies that impose additional maintenance charges on the apartment owners who have leased their property are legally allowed to do so under The Societies Act. According to Goenka, bye-law 43(2) of the Co-operative Housing Societies Act mentions a proper format according to which a member of the housing society can sublet his house to tenants.

Can the bye-laws be challenged?
Vinod Sampat, president, Cooperative Societies Residential Users Association, and a real estate lawyer, explains that any regulation which infringes on the fundamental rights of an individual can be challenged in the court of law. “The housing society regulations don’t have the same stature as that of a law. Every Indian citizen has the right to reside anywhere in the country and discrimination is not allowed on the basis of religion, caste, sex, eating habits or marital status,” he explains.

So if a tenant feels a housing society has not been fair, he can file a police complaint against it, claiming infringement of his rights as a citizen. The member, too, can take legal recourse, such as approaching the civil or the cooperative court. He can also appeal to the deputy registrar of housing societies concerning his grievances.

In fact, there have been several cases, where the courts have ruled in favour of the owner and against the housing society (see box). According to Sampat, as per a recent court judgement, pets such as dogs and cats are also regarded as family members, and tenants have every right to keep them. “Besides, it is not mandatory for the housing society to issue no-objection certificates. What is mandatory is police verification,” he adds.

Challenging society bye-laws Though the courts consider each case independently, here are some rulings in favour of the home owner.

• In the Sanwarmal Kejriwal versus Vishwa Co-operative Housing Society Ltd & Ors case, 1990, the Supreme Court had upheld the member’s right to keep tenants of his choice.

• In the Bombay High Court ruling, in 2000, Justice DY Chandrachud rejected the amendment of a bye-law framed by the St Anthony Cooperative Housing Society, which wanted to restrict the membership to Catholics.

Luxury Homes – A Growing Preference for New Age Buyers

Despite the global economic and financial crisis, the Indian residential market is relatively stable in general, as demand for luxury housing grows gradually. This growing demand can be attributed to the rise in the number of high net worth individuals (HNWIs), the rapid pace of urbanisation, the influx of global lifestyle trends and an increase in the number of non-resident Indians (NRIs). Also, the recent fall in the value of rupee in global financial markets boosted buyers’ interest in investing in luxury housing and encouraged developers to launch luxury/super luxury housing projects priced from INR 10-200 million.

The fact that most buyers have been seeking quality products recently is compelling developers to come up with luxury projects in collaboration with global property developers and architects. To attract buyers, developers are now trying out a variety of new products in the luxury housing segment, including Singaporean and US-style apartments, homes that are similar to plush hotels and branded luxury residences. Developers are also increasingly adding lifestyle amenities such as golf greens, schools, hypermarts, jogging tracks, independent swimming pools, complete home automation, modern clubs with exclusive members’ lounges, spas, Jacuzzis, concierge desks and gyms. Spacious luxury apartments also invariably come with top-quality interiors, bathroom fittings and kitchen decor, often featuring imported materials. Thus, the desirability index of upcoming projects depends significantly on their lifestyle offerings and exclusivity.

 

The difference in cost between a mid-end/high-end apartment and a luxury apartment is not much. Of course, this depends on location and varies from city to city, where perhaps luxury residential projects have a higher risk and longer gestation period compared to mid- end/high-end apartment projects.

The total value of luxury homes, launched in 182 luxury residential apartments, offering a total of 25,570 units across India’s top seven cities of NCR-Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata in 2008-2012*, was around USD 30 billion. NCR-Delhi, Mumbai, Bangalore and Chennai are leading in terms of market share of these launches, with NCR-Delhi leading (at 44% of the total), followed by Mumbai (21%), Bangalore (11%) and Chennai (10%). The Tier II cities are at a nascent stage in luxury residential launches. In 2008-2012*, Kolkata accounted for 7% of total luxury launches, followed by Pune (5%) and Hyderabad (2%).

The residential market is currently going through a phase of slow demand, although growth for luxury housing looks moderate and demand is stable, giving buyers the opportunity to negotiate. Over the short term, no price increases are expected, despite the fact that the value of luxury homes is likely to increase significantly over the medium-long term. The value of luxury homes will be fuelled by presence of around 1.53 lakh HNWIs (whose numbers are growing at fast rate), people who inherited wealth and have dynamic lifestyles, as well as those in the newly rich segment (according to World Health Report 2010).

Monthly Real Estate Monitor – November 2012

 The demand for office space remained stable in October. Moderate pre-commitments and leasing were recorded. Sales of office space were also healthy amongst the ready-to-occupy office units.The buildings that became operational in October included The Capital at BKC (SBD BKC), Boomerang Wing C at Andheri East (SBD North) and Lotus Park at Thane (T&NM). Vacancy decreased marginally. The key transactions during the month included Smith Medical leasing space in Western Edge Tower 2 in Borivali, Lincoln International leasing space in The Capital at Bandra Kurla Complex (BKC) and the Consulate of Spain leasing space in Express Tower at Nariman Point. Rents and capital values remained stable.

The demand in the retail market remained stable, whilst tenants were cautious about real estate costs. As most of the leasing activity was seen on high streets; leasing in malls remained moderate. Vacancy remained moderate over the month. The key leases in October included HDFC Bank leasing space on both Colaba high street and Wadala high street. No new completions were recorded during the month. Mall rents and capital values remained stable. However, capital values appreciated marginally on high streets.

In October, primarily on the back of the attractive pre- launch offers extended by select developers, the demand in Mumbai’s residential market improved. The key launches in October included Evoke at the New Cuffe Parade project in Wadala East by Lodha Group, a new project in Goregaon East by Sunteck Realty, Vicenza Regency in Vikhroli East by SSV Developers, Tower 3 in the Godrej Platinum project in Vikhroli by Godrej Properties and a new project at Chembur, also by Godrej Properties. On account of the increased demand for residential units for outright purchase and the developers’ desire to capitalise on the festive season, discounts and schemes were offered for a limited time to lure buyers. Rents and capital values remained stable across the city during the month.

POLICY ONGOING
The Maharashtra government has approved the land lease policy for Mumbai and its adjoining suburbs by increasing the land lease rates and reducing the tenure of land lease agreements. The properties that were let out for a long period by the government will now be charged a new rent based on the ready recknor rates during renewal. The properties with lease contracts still on, will not be affected for now. Also, the government has made another important change in the lease- related law (Maharashtra Land Revenue Code) that restricts the period of lease to only 30 years.

 

Real estate capital markets predictions for 2013

In 2013, the availability of debt capital is likely to increase while the flow of equity capital will remain more or less stable. The bid-ask spreads will reduce, increasing overall transaction volume even as additional cuts in CRR and repo rates will infuse more liquidity into the system. Cross-border capital will begin to make a gradual comeback in the coming year and cap rates for office and retail properties are likely to descend to 10.5% and 11.5% from 11% and 12% respectively.

Investors will focus more on transparency, governance and liquidity before investing. Given the on-going challenges that the Indian real estate sector faces on these fronts, even fewer development companies will be successful on the public equity markets. Nevertheless, private equity deals volumes will increase, and there will be more M&A activity within the PE industry. A number of vintage funds from 2007-2008 will have to look at exiting in 2013, some of them at low IRR’s. Given the overall uncertainties, these funds would look at postponing their exits to 2014.

Insurance firms will start investing directly in low-risk, income producing office real estate. Investment bidders per property will increase, this time around with lower return expectations. Investment periods of funds will reduce from 5 years to 4 years.

In 2013, after a lull of two years, banks are likely to start offering construction finance to residential projects with approvals. They will also become marginally more flexible on interest rates, collaterals, LTV’s and upfront fees. Established funds will get back into the fund raising mode after a 3-year hiatus.

As before, developers with longer operating history such as Oberoi, Shobha and Prestige who have managed growth effectively over the years and predictability of income will find it easier to raise funds in 2013. It is unlikely that any major player will venture out nationally, with the accent for 2013 remaining firmly on local expansion. Also, we will see developers focusing more on joint ventures with landlords rather than on buying land.

In 2013, we will see most PE deals being structured to give the investor the first preference to cash flows. Most real estate PE investments will be focused on Tier I cities. Funds with a good track record that have a strategy to target a narrow asset class within specific locations such as last mile funding for residential under construction projects in Tier 1 cities and having strong delivery teams will be able to raise funds more easily. Regulatory authorities will increase their scrutiny of private fund raising offerings and closely monitor if the funds raised by the companies are being used for stated objectives.

Private Equity funds will raise distressed real estate funds and get traction from bank NPA’s and ARC’s. A number of new domestic real estate PE funds backed by corporate entities are likely to be launched in 2013. Also, large family offices will now begin creating dedicated real estate teams.

PE fund terms such as waterfall structure, carried interest, general partner commitment and management fees will change to address investor concerns such as governance, transparency, reporting and operating controls post the global financial crisis. Limited partners will scrutinize fund platforms lot more carefully before investing on the heels of previous negative experiences with issues such as integrity of the general partner and quality and sustainability of earnings. Many more funds will adopt a conservative cash flow-driven investment approach and focus on investing in income producing office assets, with an accent on asset repositioning, refinancing and refurbishment.

We expect new guidelines for non-banking HFCs to assist in pushing funding for the housing sector in 2013. There will be more liquidity available in the housing finance market as rules for raising external commercial borrowings will be relaxed for HFCs, and with SEBI allowing debt funds to invest an additional 10% in HFCs. HFCs will also look at tapping the QIP market to raise funds in 2013.

Developers – “Designing for kids”

When young buyers go looking for a home, one of the primary requirements is that of spaces that will nurture their children’s needs – projects that will make their childhoods seem just that little bit extra special. Developers have recognised this fact and are giving special importance to these youngsters, providing amenities that are designed with their needs in mind.

Playgrounds, theme parks and sports facilities are among the features of such homes, and now, developers are taking this to a whole new level. Sunteck Realty, for instance, has tied up with Disney Consumer Products (India) to launch Disney inspired homes in their projects. Kamal Khetan, Chairman and MD, Sunteck Realty says, “The unique association with Disney shall compel kids towards elevating games. We hope that in this age of electronic entertainment the refreshing and attractive Disney themed play areas will also encourage kids to get out of their homes and enjoy some fresh air and activity!” Khetan says that at Sunteck City, the kid’s room can be brought to life through an array of characters like the Princess room, the Spiderman or the cars room and the Mickey and Friends room. “As far as exteriors are concerned, the Disney experience has been extended to the landscape areas, swimming pool, library and children’s play area,” he explains. Khetan points out that families spend in the range of 10-15% of the overall interiors budget on their kid’s room. Buyers also demand properties that have attached recreational areas such as play area, swimming pool, and theme gardens, he says.

“Sunteck City has been designed and conceptualised keeping the aspirational middle class in mind,” Khetan adds. “The project supersedes the value proposition by creating an environment for the kids to be even happier.”

Roshini Bakshi, Managing Director, Consumer Products, Retail and Publishing, Disney UTV says, “Branded residences are a hugely successful concept internationally and are now picking up in India. Globally, Disney has been present in the real estate segment and this association is a step toward taking our in-home category in India to the next level.”

Speaking about the importance of child-centric amenities, Khetan says, “The target audiences are young parents who seldom get enough time to catch the growing years of their kids. At Sunteck City the undulating expanse provides more open spaces for children.”

Rustomjee Group has also gone the extra mile in providing unique spaces for little ones, through a Knowledge and Activity Centre known as ‘The Leons World’ in their township Rustomjee Urbania in Thane. Percy Chowdhry, Director, Rustomjee Group says, “Based on Gardner’s Theory of Multiple Intelligence, Leon’s World is aimed at enhancing the concept that every child between the ages of 0 to 10 can excel in multiple aspects if a stimulating environment is provided along with the Play way method. The entire activity area has been divided into various growth centres: Leon’s World of Early Learning, Leon’s World of Creativity, Leon’s World of Music, Leon’s World of Maths and Science and Leon’s World of Words.”

Rustomjee Group’s projects have specially planned spaces for kids of all ages. The amenities are not restricted just to a play zone, but even the design aspect in projects is carefully honed to ensure that children receive the maximum amount of enrichment and stimulation. Chowdhry explains that Rustomjee projects are childfriendly in a variety of ways – through low floor heights, rounded corners, adjustable wash basins, anti-skid tiles, elevator sensors at lower heights, childsafety switches, traffic-free promenade for kids to play, and padded play areas, just to name a few.

According to Chowdhry, if children are denied a well built conducive environment which encourages them to enhance their complete potential, it can result in tremendous academic pressure, restrictive and regimented lifestyles. The need of the hour, thus, is to protect and nurture childhoods, he says.

Speaking of the larger trend, Gulam Zia- Executive Director- Retail, Advisory & Hospitality, Knight Frank India says, “The concept of brands is more for the luxury segment. These amenities are add-ons for the project. Brands like Disney act as a differentiator and it helps the developer when associated with the brand.”

QUICK BYTE
PLAYGROUNDS, THEME PARKS AND SPORTS FACILITIES ARE AMONG THE FEATURES OF SUCH HOMES, AND NOW, DEVELOPERS ARE TAKING THIS TO A WHOLE NEW LEVEL

Luxury redefined in the Indian Realty Industry

MANY DEVELOPERS NOW FOCUS ON BRINGING THE WORLD’S CONTEMPORARY ARCHITECTURE TO INDIA, WITH ALL IMPLIED SUSTAINABILITY ASPECTS AND GLOBAL FEATURES THAT INCLUDE LUXURY SPACES AND SERVICES

Over the last decade, lifestyle has evolved as an important and often decisive factor in the Indian realty industry. For an increasing number of Mumbaikars today, the focus of home buying has shifted from functionality and inflexible budgets to homes that have high levels of a lifestyle quotient attached to them. .

According to Boman Irani, CMD, Rustomjee, there is a perceived growth of about 20-25%this year in the luxury market and that is because every individual want to upgrade their lifestyle. “Rustomjee has launched Elements, which has 150 high-end apartments of 4 and 5 BHKs in Upper Juhu. What really the project embodies is that it gives the best of the location called Juhu and also what individual plots in Juhu can’t offer. In Juhu plots are around 800-1000 meters at best. But, we are developing 20,000 meters of plot that will provide residents with all forms of comfort which a normal Juhu complex wouldn’t be able to provide,” says Irani.

Responding to the growing trend amongst the home-buyers for owning spacious homes, Nahar Group has launched Yvonne, a luxurious residential tower consisting of lavishly spaced 2 and 3 BHK apartments at its township, Nahar’s Amrit Shakti, Chandivali near Powai in Mumbai. “Yvonne is located on one of India’s largest podium gardens that measures to about 9 lakh sqft on which a garden adorned with a huge expanse of emerald green, vibrant flowers and plants are being built on an area of about 5 lakh sq. ft,” says Manju Yagnik.

Today, end buyers are more interested in giving their Indian addresses a suave global facelift and Lodha Group is definitely helping in this endeavour. The delivered and upcoming projects of the Lodha Group are changing the definition of luxurious living in India, be it the plush residences designed by Armani Casa at the world’s tallest residential tower – World One or the landscape designed by internationally acclaimed firm Sitetectonix at Lodha Bellissimo or Jade Jagger’s signature bohemian style residences at Lodha Fiorenza. Recently, Lodha Group launched Mumbai’s first signature residences that bear the mark of the world’s most iconic designer – Philippe Starck. The residences and common spaces of Lodha Evoq, a 63-storey luxury tower is being designed by yoo inspired by Starck. This project is located within the New Cuffe Parade and boasts of exclusive designer residences with private pools and gardens and select penthouses featuring personal elevators and private pools.

Abhisheck Lodha, Managing Director of Lodha Group, says, “Lodha Evoq is designed for the lifestyles of those who know exactly what they want in life and are open to boldly expressing their choices. The vivid colours, multiple décor themes and the passion of yoo inspired by Starck, make Lodha Evoq the perfect place to Live Bold.”

Adds R. Karthik, Chief Marketing Officer, Lodha Group, “Our endeavour is to partner with the best names in luxury services to bring home the most exclusive experiences for our customers – and introduction of L’Occitane Spa with its world of natural therapies and products within the sublime setting of Lodha Bellissimo is one more step in that direction.”

With developers offering high-end homes across the city, home-buyers exposed to western residential realty trends now have a choice to bask in pure luxury.

Developer gets contempt notice over possession of commercial unit

The Bombay high court has issued a contempt of court notice to a developer for wilfully defying its orders to give possession of a commercial unit to a septuagenarian. The developer, R K Madhani, is also a leading contractor in civic and government offices.

A division bench of Justice Dhananjay Chandrachud and Justice Rajesh Ketkar on November 5 issued notice to Madhani, who is developing a slum rehabilitation project off Senapati Bapat Marg, Dadar (W). The court was hearing a petition by Sheela Ambre (75).

According to Ambre’s petition, she ran a motor garage on the premises since 1960. The re-development commenced in the mid-90s. Ambre contended that while she was entitled for 600 sq ft area, the BMC, which owned the land, rejected her claimand held that she occupied only around 443 sq ft area. She challenged the rejection of her claim in HC. In May 2005, the HC directed that if Ambre required an area in excess of 225 sq feet for commercial purpose, she should pay the construction cost. It also directed that she be provided with two commercial units adjacent to each other, out of which she would pay for one. The court added that since the premises was used for a garage, proper access should also be given.

Madhani’s review petition was dismissed by the HC. He moved the Supreme Court which on August 24, 2011, directed that Ambre should be given possession of 225 sq ft commercial unit and that HC should decide afresh the issue of excess area. Thereafter on August 29, 2012, the HC directed Madhani to hand over a 225 sq ft unit to Ambre.

Ambre’s advocates Sanjiv Sawant and Abhishek Deshmukh argued that in spite of the court’s orders, Madhani was defiant. The judges also noted that Madhani, after undertaking on October 29, 2012, to comply with the court’s order within a week, had not complied. They directed the Slum Rehabilitation Authority (SRA) to take the help of police, if necessary, to enforce its order and hand possession to Ambre.

The contempt notice against Madhani will be heard on December 4, 2012.

Real estate investments remained sluggish this Diwali

Despite aggressive marketing and offers made by real estate developers during the days before Diwali, investments in property have remained lukewarm due to high prices of houses in and around the National Capital Region (NCR), according to a survey by industry body Assocham.

The major factors behind the slump are high prices of land and unprecedented rise in the cost of construction materials, iron, cement and labour, the survey said.

The demand saw a surge of only 20 percent on the eve of the festival compared to the normal average sale per month, the survey said.

The survey was carried out in major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh`and Dehradun, gathering information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

Majority of the developers have complained that inordinate delays in getting necessary approvals from multiple regulations and authorities resulted in cost and time overruns.

There was another factor at play which is apathy of banks in financing real estate projects in the absence of industry status, said the Assocham survey.

Assocham Secretary General D S Rawat said the resale or secondary market was dull this festive season as there was very little resale going specially in the NCR and surrounding areas.

The survey report suggested that the government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply.

Also, all approvals of real estate projects must be accorded in a time bound, accountable and simplifies manner. Process and status of all approvals be made on line so as to bring transparency.

The state governments should complete their land records process and make the same computerised and supporting infrastructure; not only transportation and logistics but also water, power, housing, healthcare and sanitation must be taken up in tandem, it said.

According to the survey, the government must grant industry status to the real estate sector and the real estate projects must be classified as infrastructure and priority lending should be made available for keeping pace with the demand and supply scenario.

Despite aggressive marketing and offers made by real estate developers during the days before Diwali, investments in property have remained lukewarm due to high prices of houses in and around the National Capital Region (NCR), according to a survey by industry body Assocham.

The major factors behind the slump are high prices of land and unprecedented rise in the cost of construction materials, iron, cement and labour, the survey said.

The demand saw a surge of only 20 percent on the eve of the festival compared to the normal average sale per month, the survey said.

The survey was carried out in major cities like Delhi-NCR, Mumbai, Bangalore, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh`and Dehradun, gathering information from 250 property dealers, noted 40 builders/ developers and 20 divisions of housing financing.

Majority of the developers have complained that inordinate delays in getting necessary approvals from multiple regulations and authorities resulted in cost and time overruns.

There was another factor at play which is apathy of banks in financing real estate projects in the absence of industry status, said the Assocham survey.

Assocham Secretary General D S Rawat said the resale or secondary market was dull this festive season as there was very little resale going specially in the NCR and surrounding areas.

The survey report suggested that the government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply.

Also, all approvals of real estate projects must be accorded in a time bound, accountable and simplifies manner. Process and status of all approvals be made on line so as to bring transparency.

The state governments should complete their land records process and make the same computerised and supporting infrastructure; not only transportation and logistics but also water, power, housing, healthcare and sanitation must be taken up in tandem, it said.

According to the survey, the government must grant industry status to the real estate sector and the real estate projects must be classified as infrastructure and priority lending should be made available for keeping pace with the demand and supply scenario.