10-Dec-2019

10-Oct-2019

06-Dec-2019

CREDAI Bengal Daily News Update | 10.12.19

Newspaper/Online The Telegraph(online)

Date December 10, 2019

Luxury projects make cautious comeback amid slump in realty

Developers, especially in south India, launch projects in premium category with select

designs and sizes

A prolonged real estate slowdown had its worst impact on high-end projects with homes

costing ₹5 crore and more

Luxury projects are slowly making a return as developers compete for a niche segment of

wealthy homebuyers, even as affordable and mid-segment housing dominate the property market.

Developers, particularly from southern India, are strategically launching projects in the premium

category with select designs and sizes to capitalize on this opportunity.

Bengaluru-based Prestige Group is set to develop a luxury residential project in Pali Hill, Bandra,

one of the most expensive locations outside south and central Mumbai, said a person familiar with

the plans. It’s a small but high-value redevelopment project, the person said, requesting anonymity.

A Prestige spokesperson declined to comment.

Last week, Adarsh Group launched its luxury villa project, Adarsh Sanctuary, in Bengaluru. The

172 villas across 21 acres are priced at around ₹2.4-3.5 crore.

“There is demand for such villas and we are confident. But if you are building a huge number of

villas, then it’s difficult to sell. The ticket size is important and it’s critical to price the product

correctly. ₹6-8 crore villas or homes may be tough to sell today," said B.M. Jayeshankar, chairman

and managing director, Adarsh Group.

A prolonged real estate slowdown had its worst impact on high-end projects with homes costing ₹5

crore and more. The slowdown led developers across India to shift their focus from ultra-luxury to

affordable and mid-income projects.

Projects in south and central Mumbai have reduced to a trickle and buyers of luxury homes are

now inclined towards ready-to-move projects, with least delivery risk.

Bengaluru’s Puravankara Ltd recently started its WorldHome Collection of luxury apartments. The

first three projects would be launched in Bengaluru, followed by Chembur, suburban Mumbai and

Chennai’s Guindy. Managing director Ashish Puravankara said though the number of luxury

Newspaper/Online Live Mint(online)

Date December 09, 2019

Link https://www.livemint.com/industry/infrastructure/luxury-projects-make-cautious-comeback-amid-slump-in-realty-11575915577111.html

project launches has dropped drastically in the last few years, there are customers at different price

points.

“We don’t launch large projects at high value. Today, pricing is not as critical as the ticket size of

apartments. We need to build more functional homes and maintain smart sizes. The good thing is

the polarization of buyers has led them to move towards good brands of developers," he said.

Bengaluru-based Sobha Ltd, known for its upscale residences, plans to enter Delhi and Hyderabad

in the coming quarters with a premium project in each of these markets. In the past year, Sobha

launched Nesara, a super-luxury apartment project in Pune, and Verdure, a row house project in

Coimbatore, a spokesperson said.

Sales in the ₹1-2 crore segment saw 8% growth in the September quarter, according to a report by

Liases Foras Real Estate Rating and Research Pvt. Ltd. Mumbai Metropolitan Region had the

maximum sales share of 32% in this segment.

“We are positioned as a premium player and we are looking for good land parcels in western

suburbs and south Mumbai. Three things fundamental to customers matter today—quality,

amenities and modern specifications, and the price and space that’s offered. Buyers don’t want to

pay for wastage and extra space," said Gaurav Sawhney, president-sales and marketing at Piramal

Realty.

The Mumbai-based firm had sales of ₹3,000 crore from its Mahalaxmi and Byculla projects in the

last two years.

Shruti Goyal, deputy regional CEO, Lodha Group, said buyers have shown a keenness towards

moving into risk-free developments, without having to pay GST, wherein they can evaluate their

purchase beforehand. Lodha has several luxury projects in Mumbai, including the Trump Tower.

Liases Foras CEO Pankaj Kapoor said, however, that luxury projects “are being launched at a

discount today, sold at a cheaper rate with smaller homes". “With rational size and price, some

sales may happen, but, otherwise, the segment is still under distress."

_____________________________________________________________________________

DDA to redevelop over 370 JJ clusters under PMAY-U: Housing

minister

The decision was taken after the Delhi Urban Shelter Improvement Board (DUSIB), which

comes under the AAP government, failed to carry out a survey of these clusters.

The Delhi Development Authority will redevelop 378 JJ clusters under the Pradhan Mantri Awas

Yojana (urban), Union Housing and Urban Affairs Minister Hardeep Singh Puri said on Monday.

The decision was taken after the Delhi Urban Shelter Improvement Board (DUSIB), which comes

under the AAP government, failed to carry out a survey of these clusters.

Talking to reporters, he said clusters, located on land owned by the DDA and land & development

office, would be redeveloped under In-situ Slum Redevelopment (ISSR) component of the PMAY (U).

______________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/dda-to-redevelop-over-370-jj-clusters-under-pmay-u-housing-minister/72442510

What's the rationale behind curbs on construction: Government

departments

A month ago, pollution control agencies and the Delhi-NCR administration put in place a series

of measures to address the worsening air quality – blanket ban on industrial operations,

construction and traffic rationing.

More than a month since the construction ban was put in place, air quality in the city continues to

hover in the 350-400 range. Construction projects, meanwhile, are piling up, as are costs. With a

significant amount of the casual workforce out of a job, the economy is sure to take a hit. Who, then, is

this ban helping?

“I was fully behind the idea of the ban as a constructive way to bring pollution levels down. But it has

been a month now and it appears that it has not helped. Now I am wondering if it’s worth it to face

traffic jams following all the diversions in place because of the stalled construction work,” said Nilesh

Singh, a resident of Sector 37.

A month ago, pollution control agencies and the Delhi-NCR administration put in place a series of

measures to address the worsening air quality – blanket ban on industrial operations, construction and

traffic rationing. With a few good air days, the curbs were lifted – all but the one on construction. The

pollution level, meanwhile, spiked again. Clearly, the solution lies elsewhere.

“There has been no construction work over the past month. Yet, air quality has continued to dip. We

have been arguing that such selective targeting only diverts attention from the real causes of air

pollution – vehicles and industries. If they really wanted to control air pollution, why was the ban on

coal-based industries lifted?” asked National Highways Authority of India (NHAI) consultant Saurabh

Singhal.

A former pollution control board official agreed. “Pollution by the construction industry is in the form

of suspended particulate matter. Aggregate (dust) and sand contribute the most, in the form of PM10.

Cement and fine dust cause a spike in PM2.5 levels. But from carrying cement in closed trailers to

taking it to a mixing chamber, everything is handled in a closer environment. So the chances of any

major PM2.5 spike because of this are minimum. Also, fine dust can be easily managed by regular

sprinkling of water,” the official said.

Why, then, the insistence on a construction ban? “Lobbying determines how things work. Besides,

other industries are organised and have unions. So there can be political repercussions, which

everyone wants to steer clear of. The moment they tighten norms for industries or impose bans, there

will be strikes or other kinds of pressure,” the official said. Banning unorganised sectors like

construction or penalising farmers, on the other hand, do not have huge fallouts. “It is an easy way out

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/whats-the-rationale-behind-curbs-on-construction-government-departments/72432105

to make it look like the system is working,” the official added.

A Central Pollution Control Board official said the reason for the dip in air quality was the wind speed

but did not comment on why the ban on construction continues but not the one on coal-based

industries. The agency will submit its report to the Supreme Court on Monday and the let the court

decide whether ban is to be lifted or not.

______________________________________________________________________________________________________

Government projects come to rescue of construction equipment

industry

The industry reported marginally improved sales over preceding months in September, October

and November although none of these months recorded growth year-on-year.

Sales of construction equipment seem to have bottomed out after a 25% drop in the first half of the

fiscal, thanks to a revival in government projects, especially in the southern states.

The industry reported marginally improved sales over preceding months in September, October and

November although none of these months recorded growth year-on-year, two industry insiders told

ET.

Construction equipment include machines used for earth moving, road building, handling concrete,

material handling, and material processing, among other special equipment.

Apart from a revival in government infrastructure projects, an improvement in financing from non-

banking financial companies (NBFCs) is pushing sales, said Ravi Chawla, managing director at Gulf

Oil Lubricants. NBFCs had tightened their lending in the aftermath of the IL&FS crisis last year,

drying up funds for potential buyers, thus sending the manufacturing and housing sectors into a tizzy.

“Most of the impetus will come through road construction and government infrastructure projects,”

said Chawla who is also a spokesperson for construction equipment expo Excon. Several of these are

coming up in Karnataka, he told ET.

However, there is no revival in demand from the real estate sector since the market is saturated with

unsold inventory and few new projects are coming up, he said.

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/government-projects-come-to-rescue-of-construction-equipment-industry/72442386

Another industry executive said demand has especially increased in states bound for elections in the

coming two years. “Some of the states which are heading towards election are putting a lot of money

into developmental projects,” said the person who requested not to be identified. “In some of the

product categories, Tamil Nadu has done even better than last year.”

The industry expects to close the fiscal year with a 15-20% decline in sales, as per data from Excon,

which is organised by Indian Construction Equipment Manufacturers’ Association and Confederation

of Indian Industry.

The industry will widely miss its earlier estimate of $5 billion in revenue, closing the year with

revenue of less than $4 billion. This, after four consecutive years of growth and gross sales of 97,835

units in FY19. “Major demand drivers going ahead will be roads sector, irrigation, railways, ports,

mining,” a note from Excon said.

______________________________________________________________________________________________________

Kozhikode civic body to popularize CLSS of PMAY

Civic body will conduct a special drive to collect details of persons who wish to avail housing

loan under the CLSS of the PMAY.

Corporation authorities here have decided to popularize the Credit Linked Subsidy Scheme (CLSS)

of Pradhan Mantri Awas Yojana (PMAY) to help the people to realize the dream of owning a home.

Civic body will conduct a special drive to collect details of persons who wish to avail housing loan

under the CLSS of the PMAY. The civic body will conduct special camps for 75 corporation wards

from December 9 to 11 to collect details of persons.

The camps will be held at Tagore centenary hall on December 9, Cheruvannur zonal office hall on

December 10 and Elathur Community hall on December 11.

The major highlight of the scheme is that people having an annual income upto Rs 18 lakhs can avail

benefit of the scheme. The scheme of National Urban Mission aims to ensure houses for all by 2022.

People residing in the city corporation limit without having own house can avail the benefit under the

scheme.

Under the scheme, the loan will be provided to beneficiaries by dividing them into four income

categories. The interest subsidies on housing loans will be given to people belonging to four income

category groups - economically weaker section with an annual income up to Rs 3 lakh will get 6.5%

interest subsidy for Rs 6 lakh loan; low income group with an annual income ranging from Rs 3 lakh

to Rs 6 lakh will also get 6.5% subsidy for Rs 6 lakh loan.

While people whose annual income is Rs 6 lakh to Rs 12 lakh range will get 4% of interest subsidy for

Rs 9 lakh loan. Those belonging to the middle income group II category and having annual income of

Rs 12 lakh to Rs 18 lakh will get 3% interest subsidy for Rs 12 lakh loan.

According to the corporation officials, it has provided subsidy of Rs 10.35 crore to 564 beneficiaries

of CLSS of the PMAY so far.

Corporation secretary Binu Francis said that, so far, the government had given subsides to people

belonging to weaker sections. “This scheme will benefit people working in both government and

private sectors. Beneficiaries availing the scheme will get interest subsidy from 3 to 6.5% based on the

income category of the persons availing housing loan,” he said adding that eligible will be referred to

second round of camp to be held soon with banks to provide loan.

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/kozhikode-civic-body-to-popularize-clss-of-pmay/72432054

SBI lowers MCLR by 10 basis points

This is the eighth consecutive cut in MCLR by the lender this fiscal, the lender stated in a

release.

HIGHLIGHTS

This is the eighth consecutive cut in MCLR by the lender this fiscal, the lender stated in a

release

'To pass on the benefit of our falling cost of funds to customers, we have reduced MCLR by 10

bps across one-year maturity,' SBI said

Country's largest lender State Bank of India (SBI) on Monday announced the reduction in its marginal

cost of fund based lending rate (MCLR) by 10 basis points (bps) across one-year tenor, effective from

Tuesday (December 10).

This is the eighth consecutive cut in MCLR by the lender this fiscal, the lender stated in a release.

"To pass on the benefit of our falling cost of funds to customers, we have reduced MCLR by 10 bps

across one-year maturity," it added.

The new one-year MCLR has been cut to 7.90 per cent from 8 per cent.

The reduction comes as the Reserve Bank of India (RBI) in a surprise move left the key policy rates

unchanged last Thursday at 5.15 per cent.

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-lowers-mclr-by-10-basis-points/72436974

__________________________________________________________________________________________

India's first residential air purification tower to come up in Bengaluru

Puravankara launches Purva Atmosphere which will have a 40 feet high tower to purify 32

million cubic metres of air per day

As air pollution continues to grip the cities of India and air quality deteriorates, real estate

company Puravankara is setting up what it claims is the country’s first residential air purification

tower for its flagship project called Purva Atmosphere in North Bengaluru.

The real estate player has tied up with a Gurgaon based start-up called Kurin to come up with the 40

feet tall air purification tower at the premises of its 12-acre luxury project. It would be investing

anywhere between Rs 6-8 crore to set up the tower.

“Once ready, the tower will be able to purify over 32 million cubic metres of air every day,” said

Pavneet Singh Puri, partner, Kurin.

The air purification tower will have two chambers. The bottom chamber will intake the surrounding

air and increase its velocity using the patented technology of the start-up, which would change the

direction of the air. It will start moving vertically in the upper chamber which will have three sets of

filters. The air would first pass through three layers of perifilters to remove all the visible pollutants

such as dust and pollen. The second one is a three layered hepa filter which would take care of the

particulate matter (PM 2.5). It is this ultrafine pollutant particles which penetrate deep into the

respiratory system and cause the most damage to the body.

The air will then reach the final layer of activated carbon, which would remove any kind of odour and

gaseous pollutant present in it.

The air that will finally come out will have PM2.5 below the level of 10 on the air quality index,

claims the start-up. Air with a PM 2.5 AQI value between 0-50 is considered good for health and that

above 100 is marked unhealthy for sensitive groups. Currently, Bengaluru has PM2.5 AQI above 100

while Delhi’s AQI has breached the 300-mark, which is considered hazardous.

“Once functional, we will see an impact of the air purifier with a minimum radius of 1 km,” said Puri,

adding the filters will require manual cleaning twice every week while the hepa filters will have to be

replaced at least twice every quarter.

Spread across 12 acres, the Puravankara residential project will have three 34 storeyed towers. These

towers will have around 900 units of 2, 2.5 and 3 BHKs priced above Rs 1.5 crore and are likely to be

completed in four years.

Apart from an air purification tower, it will also have a clubhouse on the 34th floor with air

purifiers. The company is also giving access to clean water directly from the tap via its triple filter

solution. The project will have other features such as nature trail, a camping site and a bonfire area,

according to the company.

Newspaper/Online Business Standard(online)

Date December 08, 2019

Link https://www.business-standard.com/article/companies/puravankara-to-set-up-india-s-first-residential-air-purification-tower-119120501238_1.html

“Twenty years ago, luxury meant space and location but today the way our lives have evolved with

technology, luxury has a whole new different meaning. We are introducing technology in our product

to give residents the luxury of time and health through our unique features,” said Ashish R

Puravankara, managing director, Puravankara.

The real estate firm will be coming up with two more projects under its WorldHome Collection

segment in Mumbai and Chennai. These too would be based on the elements of green spaces and

home technology.

__________________________________________________________________________________________

Rainwater harvesting likely to be must for buildings of various

institutions in Nagpur

The committee was constituted by mayor Sandip Joshi after taking cognisance of the water

scarcity that prevailed during last summer and early days of monsoon.

The Nagpur Municipal Corporation (NMC) is likely to make rainwater harvesting mandatory for all

buildings owned and run by institutions. It is the first step proposed by the Rainwater Harvesting

Committee.

The committee was constituted by mayor Sandip Joshi after taking cognisance of the water scarcity

that prevailed during last summer and early days of monsoon. The committee held a meeting at the

NMC head office a couple of days ago.

Committee members Abhay Gotekar, chairman of projects consultative committee, Vijay Zalke,

chairman of water works consultative committee, superintending engineers Manoj Talewar (NMC), PP

Dhankar (NIT), executive engineer Shweta Banerjee, assistant director of town planning Pramod

Gawande, architect Ashok Mokha, geologists Varsha Mane, RK Deshkar, teacher Rohit Deshpande

and others were present.

The committee directed the NMC officials to prepare administrative provisions to make rainwater

harvesting mandatory for all buildings run by government departments, educational institutions,

hospitals and private organizations.

The committee also decided to chalk out plans for public awareness and implementation of rainwater

harvesting system in other buildings in a phased manner.

______________________________________________________________________________________________________

Newspaper/Online ET Realty(online)

Date December 08, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/rainwater-harvesting-likely-to-be-must-for-buildings-of-various-institutions-in-nagpur/72439334

NGT seeks expert opinion on proposed commercial complex above

Bhikaji Cama Place metro station

The plea had said the area spread over approximately a hectare is designated as a park as per

the Delhi Master Plan, 2021, and located on the Sudhir Tyagi Marg in Netaji Nagar here.

The National Green Tribunal (NGT) has directed Delhi's principal chief conservator of forest (PCCF)

to submit an expert opinion on a plea which had said the area above the Bhikaji Cama Place Metro

station, where the DMRC has proposed the construction of a commercial complex, was designated as a

park.

The plea had said the area spread over approximately a hectare is designated as a park as per the Delhi

Master Plan, 2021, and located on the Sudhir Tyagi Marg in Netaji Nagar here.

A bench headed by NGT Chairperson Justice Adarsh Kumar Goel also directed that the land which

was transferred to the Delhi Metro Rail Corporation (DMRC) was only for barricading and may not be

taken over by it.

"Let the PCCF, Delhi furnish an expert opinion by email before the next date.

"Since it is stated that the applicant has deposited an amount for plantation of 12,900 trees with the

Delhi government, PCCF may also furnish the status of such plantations. The land which was

transferred only for barricading may not be taken over by the project proponent," the bench said.

The tribunal took note of an affidavit filed by DMRC stating that four floors above the ground floor of

the metro station are proposed and the land allotted is subject to land-use change for which an

application has been moved to the Delhi Development Authority (DDA).

The matter is posted for next hearing on January 21.

DMRC had earlier told the NGT that construction of a commercial complex above Bhikaji Cama

Place station was conceptualised in 2012 and it is not an afterthought as alleged by a plea challenging

the structure which will add to its revenue.

Delhi Metro had told the bench that 13,332 square metre space was allotted by Land and Development

Office on permanent basis for the metro station ancillary structures and proposed property

development against payment of Rs 15.65 crore.

"Property development by DMRC is in line with global examples as metros are highly capital

intensive projects. The commercial activities apart from enhancing the appearance and ambience of

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/ngt-seeks-expert-opinion-on-proposed-commercial-complex-above-bhikaji-cama-place-metro-station/72443078

the stations will also add to non-fare box revenue to DMRC. Further, it will attract more commuters to

the metro system thereby improving ridership and assisting in traffic integration," the DMRC said.

Bhikaji Cama Place metro station is strategically designed on the intersection of Ring road and Africa

Avenue Road so that significant motorized traffic can be taken off the road, it had said.

"Development control norms for metro stations and railway stations/ terminals in the Master Plan of

Delhi - 2021, Chapter-12 stipulate that 'metro stations along with Property Development (composite

development) upto a maximum area of 3 hectare shall be permitted in all Use zones, except in

recreational and Regional Park/Ridge Zone, Lutyens' Bunglow Zone and Heritage Zones," the DMRC

had said.

The NGT had earlier ordered status quo on construction of a commercial complex above Bhikaji Cama

Place metro station after a plea alleged that it is a designated park as per the Delhi Master Plan, 2021.

The tribunal was hearing a plea filed by "residents of Delhi through senior citizen Shobha Aggarwal"

against the alleged illegal construction of the commercial complex above the metro station by the

DMRC.

The plea, filed through advocate Saliq Shafique, had said the area spread over approximately a hectare

is designated as a park as per the Delhi Master Plan, 2021, and located on Sudhir Tyagi Marg in Netaji

Nagar here.

According to the plea, the DMRC in 2012 proposed construction of an underground metro station at

Bhikaji Cama Place for expansion of its Phase III of MRTS (Majhlis Park to Shiv Vihar) Project.

The metro station was proposed to be built underground. It was designed to be constructed under the

district park and the first parcel of land was transferred on temporary basis for easing the construction

of the metro station, it had said.

"Second parcel of land, which is adjacent to the District Park (green belt), was transferred on

permanent basis for entry, exit and ventilation shaft of the metro station," the plea had said.

"It is to mention that the EIA (environment impact assessment) Report dated August 2011 in Para

4.2.2 of the DMRC also records that some portion of land for the Phase-III of the project will be

acquired on temporary basis and will be returned once the construction of project will be completed,"

it had said.

The construction at the Bhikaji Cama Place metro station began in July 2012 and workers started

uprooting the trees with the help of excavators. The locals were assured that the park would be

redeveloped and more trees will be planted once the construction of the metro station was completed,

the plea had claimed.

It had said following the false assurance given by the DMRC, the local residents and public did not

protest the removal of trees considering the fact that development of metro station will benefit the

people at large.

The DMRC, instead of redeveloping the park after completion of the construction work and operation

of underground Bhikaji Cama Place metro station in July 2019 published a notice inviting bookings

for the four-storey commercial complex at the same location, the plea had said.

______________________________________________________________________________________________________

Godrej Fund Management to invest Rs 700 crore in Century’s

commercial project

The proposed investment will be in a commercial project in north Bengaluru spread over 10

acres with a development potential of 2-3 mn sq ft.

Godrej Fund management (GFM), the real estate private equity arm of the Godrej Group has entered

into a strategic partnership with the Centruy Group of Bengaluru to develop a commercial asset in a

deal valued around Rs 700 crore.

The proposed investment will be in a commercial project in north Bengaluru spread over 10 acres with

a development potential of 2-3 mn sq ft. “The deal is in the final stage of closure and will mark GFM’s

foray in the commercial market in Bengaluru,” said a person aware of the deal.

Bangalore continued to be a dominant city in overall office leasing in the country, primarily driven by

tech companies, followed by flexible space operators and engineering & manufacturing firms. The city

contributed 27% of the total absorption in the first nine months of 2019.

An email sent to CBRE, advisor to the deal, Godrej Fund Management and Century Group did not

elicit any response.

The money will be invested through the Rs 3200 crore built to core-1 office platform of the Godrej

Group. The office project will also mark the beginning of partnership with both firms for multiple such

opportunities. “The company are in talks for more projects. Centruy group has many strategic land

parcels and local expertise. In some cases Godrej may also bring in equity and development

capability,” said another person aware of the deal.

Century Real Estate, the firm with the largest land bank in Bengaluru, is foraying into commercial real

estate, and is targeting a commercial portfolio of 7 million sq ft over the next five years. The initiative

will see Century Real Estate build a Rs 2,000-crore office platform. “While the builder will contribute

land and look into development, the prospective investor will bring in the initial Rs 1,000 crore,” its

managing director told ET earlier.

Century Real Estate Holdings, which owns more than 2,500 acres of land across Bengaluru, is also

looking to divest some land parcels and raise equity to generate liquidity. Besides, it plans to look at

development in the affordable segment (Rs 50-60 lakh bracket), as the real estate market remains

tepid.

GFM has a $450 million Godrej Build to Core – I (GBTC-I) and its $150 million Godrej Office Fund-

I (GOF-I) office development funds. Jointly both the funds can invest and develop office assets worth

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/godrej-fund-management-to-invest-rs-700-crore-in-centurys-commercial-project/72440133

over $1 billion in value.

The GBTC-I has APG Asset Management N.V. as cornerstone investor and is a ‘club style’ office

investment platform that invest in developing world class, grade-A office buildings in leading

locations across the key office markets of India. The other newly raised fund is Godrej Office Fund- I

(GOF-I), a $150 million discretionary blind pool fund that will invest in core and core-plus office and

commercial properties across India.

According to various industry estimates, the net office space absorption in the country is expected to

record a new high of 42 msf by the end of 2019. Technology companies led the office space take-up in

the country during the first three quarters of calendar year 2019, followed by research, consulting and

analytics companies (19%) and flexible space operators (15%).

______________________________________________________________________________________________________

Kerala to amend new building rules

Major amendments are likely to be effected regarding built-up area and setback.

The local self-government department is mulling amendments in the new building rules a month

after Kerala municipality building rules, 2019, (KMBR) and Kerala panchayat building rules, 2019,

(KPBR) were notified by the state government.

The initial round of discussion on concerns over new building rules which were raised by builders,

other government departments and licensed engineers & supervisors federation (Lensfed) was held at

the local self-government (LSG) minister’s chamber on Tuesday. Sources said that directions have

been given to officials concerned to incorporate amendments and submit it soon.

Major amendments are likely to be effected regarding built-up area and setback. The new building

rules did away with average setback and mandated that the required minimum setback shall be

provided at the ground-level itself for the whole building. As per the new rules, the carpet area will no

longer be considered in determining mandatory provisions for various types of occupancies .While the

old building rules mandated off-street parking space for different occupancies proportionate to carpet

area, KMBR-2019 calculates parking requirement based on built-up area.

Further the area provided for parking inside the building shall not be taken into account while

calculating the built-up area for assessing the parking requirement of a building. With the amendment,

spaces like parking, slope, ramp and other storage spaces may be exempted from calculation of total

floor area. The new rule has provided for calculation of total built up area and this required payment of

a portion of fee calculated for parking to respective local body.

The builders have recently raised concerns regarding the 10m road for the construction of industrial

buildings and warehouses above 4,000 sq.ft. Besides, the 7m road width mandated for the construction

of 8,000 to 18,000sq.ft for categories like special residential, mercantile, and office constructions has

also evoked protests.

We have started discussions on amendments based on concerns raised by Credai and Lensfed. Floor

area ratio (FAR) is one of the factors being considered,” said LSG minister A C Moideen. When asked

if FAR would be reduced, the minister said that no decision has been taken. Kerala offers the highest

FAR in the country and access-based FAR which was earlier suggested by the technical committee

was not taken into account. The uniform FAR has been a major deterrent in implementing zoning

control and development regulations in the state.

The town planning wing prepared the new rules mainly with a view to simplify calculation of floor

area and to include provisions which would enable smooth transition to online processing of permit

applications. The permit validity was extended to five years and clarifications were introduced with

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kerela-to-amend-new-building-rules/72437060

regard to parking, pertaining to slope of ramp and width of drive way etc. Further it clearly defined the

basement floor and did away with inaccuracies.

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Farmers decline giving lands to Krishna administration for housing

project

The land pooling exercise has become a concern for the district administration as the

government had said flats would be allocated to the poor under its Navaratnalu scheme by

Ugadi in April 2020.

In what could prove to be a stumbling block to the state government’s urban

housing project, farmers on the outskirts of the city have opposed parting with their lands to

the Krishna district administration for construction of affordable houses.

The land pooling exercise has become a concern for the district administration as the government had

said flats would be allocated to the poor under its Navaratnalu scheme by Ugadi in April 2020.

The Vijayawada Municipal Corporation (VMC) had also conducted a door-to-door survey with the

help of ward volunteers and identified around 80,000 beneficiaries.

The Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO), which is

overseeing urban housing projects, had estimated that around 900 acres of land would be required for

construction of houses. The district administration had decided to search for suitable land on the city’s

outskirts given the space crunch in city limits.

Authorities in the revenue department had zeroed in on assigned land given by the government to

farmers for the project. The land was to be taken over after paying compensation to the farmers.

Following farmers’ opposition, tahsildars are now conducting public hearings.

In Nunna panchayat, villagers have condemned the state government’s proposal to take back 46 acres

of land assigned to them. The tahsildar said that the government will pay Rs 7.5 lakh per acre as

compensation but farmers are reluctant to part with their land given that one acre here will sell at Rs

75 lakh in the open market.

“We have been cultivating these lands since 1980. Three generations of our family have lived

cultivating these lands but the government is directing us to vacate this land by offering a namesake

compensation,” said Venkateswara Rao, a local farmer.

Officials, however, maintained that assigned lands are the property of the government and a large sum

cannot be paid as compensation.

Meanwhile, revenue authorities are continuing talks with farmers of Kothuru Tadepalli and

Jakkampudi.

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/farmers-decline-giving-lands-to-krishna-administration-for-housing-project/72441726

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Only 35% Maharashtra cooperative societies have completed their

conveyance

The Maharashtra State Cooperative Housing Federation members said the process was

cumbersome and hence a deterrent.

Two years after the state government relaxed the rules for deemed conveyance, allowing

cooperative housing societies to apply for the important document even in the absence of

an occupancy certificate, the response has been poor.

The Maharashtra State Cooperative Housing Federation members said the process was cumbersome

and hence a deterrent.

According to the federation, of the one lakh registered societies in the state only 35% have completed

their conveyance with the rest struggling to get the document.

A society without an occupancy certificate could apply for conveyance to the deputy district registrar

of cooperative societies. However, this relaxation has had little impact on the number of applications.

“As a federation, we will approach the minister in the new government to address the issue of societies

struggling to get their conveyance executed,’’ vice president Suhas Patwardhan said.

The government introduced deemed conveyance in 2008 and published the rules in 2010. Under this

provision, a society without conveyance could apply to the deputy district registrar of cooperative

societies, who after verifying the documents submitted and hearing both the society and the developer,

will, if justified, pass an order conveying the land in favour of the society. In 2017, the government

relaxed the rule on the need to submit an occupancy certificate.

“Just 5,000 societies have gone through the process because all other conditions remain the same

which includes approaching four different departments to complete the process. Hence, it still takes

one to two years for a housing society to secure its deemed conveyance,’’ a federation member said.

Most members from housing societies are unaware of the deemed conveyance. “They hardly know

about the importance of conveyance and the misconception that it is a lengthy and expensive process

does not help,’’another member added.

By law, the developer has to convey the land to the society within four months of the housing society

being formed. The federation members said deemed conveyance should be granted automatically after

verifying the society’s registration details instead of making the society members run around for it. A

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/only-35-maharashtra-cooperative-societies-have-completed-their-conveyance/72438802

builder with any grievances in the matter should then apply for the process to be reviewed within a

specific period.

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Kathwada don’t want to be in Ahmedabad civic body's limits due to

higher property tax

The general body of the gram panchayat passed a resolution and sent a letter to the urban

development department, stating that the village does not want to be included in the AMC limits.

Residents of Kathwada village on the eastern outskirts of Ahmedabad city have passed a resolution,

that the village will not be included in Ahmedabad Municipal Corporation limits.

The general body of the gram panchayat passed a resolution and sent a letter to the urban development

department, stating that the village does not want to be included in the AMC limits.

The village, which had a population of 24,700 according to the last census, is opposing inclusion

within AMC mainly because the property tax rates within city limits are far higher than what they pay

right now. Kathwada residents also say that various processing fees for civic amenities are much

higher in AMC limits.

“We receive regular grants from both the taluka panchayat and district panchayat. All the roads of the

village are carpeted and well maintained. The village has got 24-hour electricity since 1992,” said

Yasin Malek, one of the panchayat members.

He added that earlier too, villages like Hathijan and Vinzol were included within AMC limits, but

there has not been any marked improvement in civic conditions.

Newspaper/Online ET Realty(online)

Date December 09, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/kathwada-dont-want-to-be-in-ahmedabad-civic-bodys-limits-due-to-higher-property-tax/72440636

Dilip Chauhan, another villager, said that at least 5,000 villagers are dependent on farming for their

livelihood and the entire village has unanimously agreed not to be included in the AMC limits.

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