Civic commissioner Subodh Kumar, sticking to his words about streamlining the process of clearing impending residential projects in the city presented a new framework for new constructions to Chief Minister Prithviraj Chavan, earlier this week. The presentation focused on the limitations of the present system which, inadvertently, requires the intervention of the commissioner’s office for giving discretionary clearances under Section 64-A of the Development Control Rules (DCR). The civic chief has presented the recommendation for consideration and is waiting for the state’s decision. The new framework will clearly outline every parameter a developer will be required to follow. Only after all criteria are met will Building & Proposals Department officials provide the necessary sanction for the complete plan. This resolves issues surrounding the use of discretionary powers for giving clearances. The move will also bring transparency in the working of civic departments. While a handful of builders are sceptical about the whole idea and don’t think that it will see the light of the day anytime soon, the rest are optimistic and hoping that it will bring the necessary changes in the DCR rules.

Residential property price in Mumbai have increased in recent past few months. High demand from property seekers and low supply of quality rental apartments coming onto the real estate market pushed property rents too high. While the Mumbai real estate sales market fluctuates from one month to the next leaving many locked out of making a move, property owners are in a position to make the most of both the markets, sales and rental. Fewer people own their own homes in Mumbai as buying home remains out of reach for many would be property buyers, partly because of high property prices in Mumbai and a suburb, renting a home is the only option left for many. For many property owners and real estate investors renting property is best way to increase their return on investments. Premium new residential real estate projects that are springing up all over Mumbai and surrounding suburbs are becoming a magnet for many property seekers, keen to live in their dream home without having to fund a hefty amount. New residential complexes with all modern amenities like gym, swimming pool, garden, children’s play area, jogging tracks and club house in area’s like Thane, Mira Road, Kharghar and Nerul are very popular amongst young working executives. As per the Mumbai’s leading real estate consultant Prime Realtors property seekers are searching for homes that are sleek and ultra modern, with the latest amenities. Ideally, they'd like stunning views over landscaped gardens fantastic amenities such as a health club, swimming pool and secure parking. Residential houses have marginally outperformed commercial properties across Mumbai. Increase in demand from expats and companies are driving residential real estate values in Mumbai. Recent research by Prime Realtors shows that the biggest price rises over the past year were seen in Bandra, Kalina, Andheri and South Mumbai where corporate tenants dominate. In these areas rents are continuing to rise sharply. Mumbai is a city with many areas and suburb, searching a perfect and affordable rental property in a bustling city like Mumbai is stressful and daunting job. Demand for studio apartments and one bedroom flats for rent are in high demand as many single working executives and small family find it affordable in this expensive city. With such a high demand and low supply of quality homes will make renting a decent home a difficult task to many mumbaikars.

Mumbai Property Market – what is going on? Over the last few years, some of the best returns have been from investment in Mumbai properties, thanks to extreme scarcity of development land and high rental yields. Certainly investment in properties has been one of the key investment markets for investors in Mumbai over the last few years. Real Estate rental values are at high levels and are increasing year-on-year. The inadequate availability of good quality properties in Mumbai’s sought after locations is becoming crucial according to Prime Realtors, the leading real estate consultants of Mumbai. The property market in the Mumbai is being driven by a lack of choice of good quality space due to the shortage of development land. While realty prices in the rest of the country are declining, prime areas of the Mumbai are optimistic with more houses appearing in estate agents' windows with high price tags attached. Mumbai real estate has become an international commodity, with investors and NRI buyers driving prices up above peak levels. Despite Mumbai the financial capital of India being ranked third cheapest place to live by Worldwide Cost of Living Survey conducted by international research firm Economist Intelligence Unit, many Mumbaikar’s find it hard to buy a decent living accommodation in their preferred locations. The Indian cities' ranking among five cheapest has come as a shocker, as soaring realty prices have been a matter of severe concern for common man. Not only ownership prices; Mumbai tops India’s rental price market as well. Investors, who account for more than 50% of transactions in Mumbai, have turned Mumbai into a market driven by exchange rates rather than home loan interest rates. Wealthy NRI’s and investors see Mumbai property as a safe haven for their money. There's a new report every other day predicting variances of whether house prices are creeping up again or set to fall further – it's hard to know what to believe. However, a growing number of realty experts think that the Mumbai property bubble is soon to burst. Undeterred by reports of falling house prices, optimistic sellers are increasing their average asking prices every other day. More people are forced to rent property in Mumbai, instead of purchase, their home, because many would-be purchasers have been priced out of the real estate market due to high realty prices. Common man is left out in the cold in the buying and selling game.

Mumbai Property Market – what is going on? Over the last few years, some of the best returns have been from investment in Mumbai properties, thanks to extreme scarcity of development land and high rental yields. Certainly investment in properties has been one of the key investment markets for investors in Mumbai over the last few years. Real Estate rental values are at high levels and are increasing year-on-year. The inadequate availability of good quality properties in Mumbai’s sought after locations is becoming crucial according to Prime Realtors, the leading real estate consultants of Mumbai. The property market in the Mumbai is being driven by a lack of choice of good quality space due to the shortage of development land. While realty prices in the rest of the country are declining, prime areas of the Mumbai are optimistic with more houses appearing in estate agents' windows with high price tags attached. Mumbai real estate has become an international commodity, with investors and NRI buyers driving prices up above peak levels. Despite Mumbai the financial capital of India being ranked third cheapest place to live by Worldwide Cost of Living Survey conducted by international research firm Economist Intelligence Unit, many Mumbaikar’s find it hard to buy a decent living accommodation in their preferred locations. The Indian cities' ranking among five cheapest has come as a shocker, as soaring realty prices have been a matter of severe concern for common man. Not only ownership prices; Mumbai tops India’s rental price market as well. Investors, who account for more than 50% of transactions in Mumbai, have turned Mumbai into a market driven by exchange rates rather than home loan interest rates. Wealthy NRI’s and investors see Mumbai property as a safe haven for their money. There's a new report every other day predicting variances of whether house prices are creeping up again or set to fall further – it's hard to know what to believe. However, a growing number of realty experts think that the Mumbai property bubble is soon to burst. Undeterred by reports of falling house prices, optimistic sellers are increasing their average asking prices every other day. More people are forced to rent property in Mumbai, instead of purchase, their home, because many would-be purchasers have been priced out of the real estate market due to high realty prices. Common man is left out in the cold in the buying and selling game.

Afternooner compact newspaper Mid Day is all set to add a new section to its Pune edition from June 10, 2011 onwards. Mid Day Hot Property, the weekly section on real estate, will now accompany Pune Mid Day edition every Friday. Speaking on the launch of Hot Property in Pune, Manajit Ghoshal, MD and CEO, MiD DAY, said, “MiD DAY Hot property has carved its niche in the Mumbai market. It’s a known fact that Pune today has become one of the hottest real estate regions in the country. Our research also reveals that Real Estate is one of the passion points for our core TG in each of the state we operate. Also the existing products and guides available in the market have numerous information gaps that a reader seeks from a complete property guide. Mid Day Hot Property will bridge that gap and we are confident Hot Property in Pune will be one of the most reliable and sought after real estate guides for our readers.” An official note issued by the group noted that as a home-buying destination, Pune has always been high on the property wish-list. But more importantly, it has also been within reach of the average home-buyer. As Pune emerges as one of the most happening real estate hubs in the country and stands poised to grow into a metro, Hot Property brings to its readers a comprehensive section to property buying. The official note from Mid Day writes, “Mid Day Hot Property aims to provide meaningful information related to property, ranging from tips on interiors and expert advices on the loan market to a peak into celebrity homes, or offering its readers pointers to great home deals.” It added further, “Over the last 11 years, the section has steadily gained popularity and established its place as the ideal urban home-buyers’ guide in Mumbai. With Hot Property launch in the Pune market MiD DAY aims to achieve just that. It is strategically published on Fridays, serving as an informative guide for potential property buyers who can plan weekend site visits.”

In the listless property market, there's one segment that's still moving strongly, luxury homes. Wealthy Indians aren't hesitating to buy signature homes, despite rising interest rates and costs. Lodha Developers recently launched Lodha Fiorenza, homes designed by Mick Jagger's daughter Jade Jagger, in Goregaon in Mumbai. "We sold 120 homes in the first week of the launch," said R Karthik, chief marketing officer of the company. The project comprises of 400 homes Spriced between Rs 3 crore and Rs 12 crore. Vijay Mallya's Kingfisher Towers on Vittal Mallya Road in Bangalore has seen an equally good demand. "Out of our share of 42 apartments, we have already sold 33 units," said Irfan Razack, MD of Prestige Estates Projects that's developing the project. The 33-floor residential tower, which is yet to commence, will have 82 units priced around Rs 20 crore each. Mallya's UB Group holds the rights to sell the remaining 40 units. Skyline Constructions has sold 4 out of the 6 exclusive apartments at Villa Maria, a luxury project off Brigade Road in Bangalore. "We adopted an invitation strategy and offered the apartments to an elite set of customers," said Avinash Prabhu, MD of Skyline. Apartments vary in size between 6,400 and 10,500 sft in size and are priced between Rs 12 crore and Rs 20 crore. "This segment is extremely resilient," said Anand Narayanan, national director-residential in property consultancy Knight Frank India. This market, he said, will not deteriorate even if interest rates go up by 200 basis points. "People buying luxury homes are not highly leveraged by borrowings and they use up their own funds for purchases." Karun Varma, MD-Bangalore & Kochi in property consultancy Jones Lang LaSalle India, said price sensitivity plateaus for somebody paying Rs 1.5 lakh as EMI. "He wouldn't mind shelling an additional Rs 8,000 compared to somebody who will feel the pinch if his EMI has gone up from Rs 25,000 to Rs 28,000." Real estate consultancy Cushman & Wakefield estimates that the national capital region (NCR) and Mumbai will have a supply of 1,000 and 900 luxury homes respectively by 2014. Bangalore, the consultancy says, will have 5,000 in the same period, this higher number because capital values in this space in Bangalore are significantly lower than in Mumbai and Delhi. Some developers have even tied up with hospitality players to launch luxury homes. CityView, an equity joint venture of London-based developer Westcourt, Goldman Sachs and Century Real Estate , has launched Four Seasons Private Residences in north Bangalore. "Such residences have become coveted in major world cities. The big difference is they are serviced by high quality operators," said Vinay Kapoor, CEO, Westcourt. These hotel homes measuring 4,000 to 6,500 sft start at Rs 4 crore and go upwards of Rs 10 crore.

Pune is virtually unrecognizable from the sleepy, laid-back city it was a few decades ago. There were no signs of any significant real estate action in the erstwhile Punyanagari before that. Today, however, Pune numbers in the Top Seven property hotspots within the country. The transition from a base for defense activities and personnel to a serious presence on the property market was a gradual one. Pune’s ambient climate and surroundings had first earned it the title of Maharashtra’s Pensioner’s Paradise. However, a significant shift in this status occurred with the coming of Pune’s Industrial Revolution. The MIDC was the forerunner, but eventually some of the world’s leading corporates decided to take advantage of the city’s ample land availability, high education quotient and infrastructure by establishing major manufacturing and administrative branches here. Industry requires manpower, and manpower requires homes. Inhabited homes require retail shopping and entertainment facilities. In other words, the industrial, residential and commercial property markets assumed steady upward mobility more or less at the same time. The coming of the Information Technology culture was high-octane fuel to the speed of property development in Pune. More and more land was required to accommodate the various national and international IT companies that finally led to the formation of such landmarks as the Hinjewadi IT and Software Park, Magarpatta and Eon IT Park. Once this process was begun, there was no stopping it. Tempted by the sudden prosperity and opening up of the employment opportunities, job seekers from other cities made Pune their final destination of ambition’s pilgrimage – the new Entrepreneurial Promised Land. Another distinct shift took place with this inward migration – the profile of the average property buyer changed. The IT/software culture typically attracts young computer-savvy achievers who are willing to put everything on the line for their career. The attractive pay scales offered by this industrial sector enable them to be extremely generous in their personal home-buying budgets, and downright choosy in the kind of homes they want. There was a year-long setback in the residential property demand from these segments when the downturn hit both the IT/ITeS and manufacturing industries, but both are now riding an upward wave again. Since the demand for commercial and residential space was growing hand in hand, many outlying villages along the major expressways and highways were officially added to Pune’s geographical territory. Areas like Baner, Pimple Saudagar, Wakad, Kharadi, Warje etc. emerged as the new gold mines on Pune’s realty scene. The clarion call of Pune’s upgraded realty fortunes did not attract local builders and developers alone – a number of major construction houses from beyond India’s borders began planning and executing ambitious housing projects in Pune. On the whole, the entire standard of quality and scale underwent a major sea-change, and hitherto unheard-of amenities, facilities and standards of luxury became commonplace. On the property market, the phenomenon of expansion and development is known to be a self-perpetuating one – prosperity is never confined to a single locality. It positively affects its immediate surroundings, and this has been eminently true in Pune’s overall Property Boom, as well. Using the central part of residential and commercial Pune as a reference point, development is distinctly visible on all four sides of the compass. Today, the entire residential, commercial and industrial real estate landscape in Pune has been transformed forever. A city that once lacked any significant standing on the national realty scene now stands out like a polished emerald that is the cynosure of every investor’s eye. The city boasts of an international presence. Apart from BPOs and IT/Software parks, Pune now features shopping malls, multiplexes, top-grade restaurants and hotels on a scale so far confined to cities like Bangalore, Mumbai and Delhi. Healthcare, too, has taken a quantum leap forward, with hospitals and diagnostic clinics of international standards catering to an enlarged, wealthier and more aware population. Obviously, an enhanced and more prosperous population also calls for a major upgrade in educational institutions. Pune has always had the Oxford of the East title, but the amount of reputed schools, colleges and management institutions operating in the city today has qualified this label beyond all previous norms. The city turns out top-class academics that are absorbed in the existing entrepreneurial infrastructure. The process is virtually seamless and perfect in itself, preserving local talent by providing career opportunities hitherto unavailable even in the rest of the country.

Buying property valued considerably less than even Rs 30 lakh (Rs 3 million) in small cities may soon draw the attention of income-tax officials, if the transaction does not match payment of income tax. These transactions may be categorised as high value that must be compulsorily reported to the income-tax department by registrars of property. In line with ground realities, the income-tax department is planning to recast the system of high-value transactions reported by third parties so that it correlates with the tax payment of the assessee concerned to detect evasion. Currently, there is a uniform system to categorise what constitutes a high-value transaction, but the department is mulling a reclassification according to the size of cities. Annual information returns (AIRs), which are high-value transactions reported by third parties to the department, might also include more categories against the present seven. However, although this is under review by the department, no decision has been taken, a key official told Business Standard. A review is going on to add more categories. Different kinds of transactions can be added to help prevent tax evasion. The idea is to make the external information database extensive by gradually expanding the scope of AIR," the official said. Under the present system, if a person buys immovable property valued at Rs 30 lakh or above, a registrar or sub-registrar has to provide information to the I-T department. It does not matter whether the property is purchased in Delhi or Kanpur. This information is then matched by the department with the tax payments of the assessee.

A three-day Indian Property Show will be staged in Durban, South Africa from March 11, organisers said today. The exhibition will provide a platform for Indians in Durban to interact with Indian property developers, financial institutions, legal advisors and 'Vaastu' consultants under one roof, a release said here. Leading real estate developers who have confirmed participation include Hiranadani, Jaypee Greens, Canopy Dwellings, Godrej, K Raheja, DB Realty and Nirmal Lifescapes, they said.

Real estate outlook: Experts expect prices to soften ahead. Typically, not always, when stock markets go into a downturn, real estate prices usually follow with a lag. That is common belief. And then we have also seen a lot of pain for the real estate stocks in terms of high debt and where the equity raising happened, it is probably now at a loss. So, all those problems could ensure that they run out of staying power and are forced to cut prices. So, a slew of problems facing the real estate sector, will that start impacting real estate prices? In an interview with CNBC-TV18, Sandeep Runwal of Runwal Group, Niranjan Hiranandani of Hiranandani Group and Abhishek Kiran Gupta of Jones Lang Lasalle India, speak about the real estate and gives their outlook going forward. Gupta says, there is a hypothesis that prices could soften. "I have used the word soften and not correct. But anything between Rs 20-60 lakhs, I do not suspect any price softening there, but above that, yes," he adds. However, Gupta doesn't see a correction of more than 5-8%. "The correction is not going to be more than 5% or maximum 8% and that also in a very short-term for new launches. The existing launches which have sold very well, I don't think there is going to be any correction whatsoever," he says.

Jones Lang LaSalle India bags ’International Property Consultant Of The Year’ Award For the third consecutive year, Jones Lang LaSalle was awarded the 'International Property Consultant Of The Year' Award at the Asia Retail Congress for Excellence in Retail, held on 8–9 February 2011 at Hotel Taj Land's End in Mumbai. Jones Lang LaSalle India won the award by a landslide, beating all other competing international property consultants. The Asia Retail Congress, represented by 50 countries from across Asia and the world, is a global platform to promote world-class retail practices. The awards were handed out in the presence of company chairpersons, presidents and CEOs of leading international and national retail chains and brands and various industry thought leaders. With all due humility and gratitude for this recognition, we feel that the award is e tribute to the trust we have earned in our long-standing partnerships with our retailer clients," says Shubhranshu Pani, Managing Director - Retail Services, Jones Lang LaSalle India. "We pioneered the professional retail real estate services movement in India, and we have also set the national benchmarks for reliability, transparency and efficiency in service delivery. It is always the client's voice that inspires the final choice at such awards. After all, in retail, the customer is always king. In 2010 alone, Jones Lang LaSalle India handled around 60 exclusive mall leasing mandates, apart from being responsible for a large number of the high-ticket high street leasing transactions. Overall, the company leased out over 6 million square feet of prime mall and high street retail space in 2010.

Finance ministry has also failed to establish a panel meant to review tax incentives to SEZ units and revenue losses incurred. Suneet aheshwariEven as the government wrangles with when to bring in the Direct Taxes Code (DTC) and a goods & services tax (GST) to rationalise the country’s tax regime, the much-hyped special economic zone (SEZ) policy is seeing fewer investors as a result of uncertainty over the future tax regime. The ministry of commerce & industry is learnt to have asked the finance ministry to leave policy for SEZs untouched in order to allow exports from them grow. The finance ministry has also failed to establish a committee that was supposed to review the tax incentives given to SEZ units and revenue losses incurred. The ministry was asked to form the panel by the parliamentary standing committee on finance, headed by BJP leader and former finance minister Yashwant Sinha.

Mumbai, the world’s fourth most expensive office market, is expected to account for 25 per cent of the fresh office realty supply in the country in 2011-12. A significant 17-18 million sq ft of supply will be added to the Mumbai office space market despite high vacancy rates in the existing stock of 47 million sq ft, says a report by commercial real estate services firm CB Richard Ellis. The report says prices will continue to rise in the Central Business District of Nariman Point and the Bandra-Kurla Complex. Office spaces in suburbs such as Malad, Powai, Thane, Navi Mumbai as well as in central locations of Worli and Lower Parel are predicted to see a marginal appreciation or stabilisation due to high vacancy rates. It points out that improved accessibility due to the Bandra-Worli Sea Link has led to higher demand in Central Mumbai and Bandra-Kurla Complex.

Mumbai based Real Estate developer; Usha Breco Realty Limited, an Usha Martin Group company, today announced that it will be developing its second affordable value housing project in Boisar under the brand Usha Spaces. The firm stated that it has strategically planned to develop a second project following the excellent response to its first mega residential township project. With the launch of the company’s second project in the same year, Boisar assures distinct significance as a convenient location of choice for affordable housing in close proximity to Mumbai. For the new project Usha Breco Realty Limited will be developing approximately 500 units in 2 & 3 BHK formats including a series of Row Houses. The project is expected to be launched by early 2011 and will be competitively priced, offering customers the best of modern amenities. Speaking about the development, Mr Uday Dharmadhikari, CEO - Usha Breco Realty Ltd said, “Recognizing the need to cater to the lucrative Indian affordable housing segment, we had launched our first affordable value housing project ‘Chhaya Niwas’ in Boisar in June this year, and received an overwhelming response to the project. We managed to successfully sell more than 80% of the 300 units that were on offer for the project’s first phase in record time, and will soon be launching the second phase of 258 units.” Another value add to ‘Chhaya Niwas’ is that the project has received a “Mumbai-4 Star” rating from CRISIL based on various stringent project-specific parameters establishing it as the country’s first affordable housing project to be assigned a rating of this scale. Commenting on this development, Mr Dharmadhikari said, “We our committed towards offering homes that are competitively priced and incorporate the essential elements for qualitative and affordable living. At Usha Breco Realty, we have always been passionate about providing convenient living spaces for home seekers and will continue in setting higher benchmarks in the space.” The emergence of Boisar as an important commercial destination has led to an increase in the demand for qualitative housing in the location; Boisar at present houses good educational institutions, shopping complexes, banks and restaurants and several big corporate houses. There have been a series of affordable housing township projects that have been launched by leading developers to cater to the local demand as well as strong demand from surrounding areas. Mr. Dharmadhikari further added, “We have also observed that there is a significant level of demand for second homes from Mumbai buyers seeking to procure properties in Boisar. The soon to be launched Western Railway services from South Mumbai to Boisar are expected to add further impetus to the location and aid an increase in the demand for qualitative residential housing in the area.” Usha Breco Realty had recently announced that the firms affordable value housing project ‘Chhaya Niwas’ being developed at Boisar has received a “Mumbai - 4 Star” rating from India’s premier credit rating agency CRISIL. This is the first affordable value housing project rated by CRISIL.

The office space, a part of the commercial real estate, is expected to see a supply of additional 50 million sq ft in 2011-12 according to industry trackers. According to analysts, most of the new office space would come up in sub-urban Mumbai and Parel. The Mumbai Metropolitan Region saw strong demand from Indian companies and end users in third quarter of 2010, BNP Paribas Real Estate said in a research report on Wednesday. Almost 55 million sq ft of office space was added throughout India in 2010, with about 25% of those in Mumbai, real estate consultant CB Richard Ellis said in a report. Bangalore and the NCR followed with a 19% and a 17% share in new additions. “At present, the total size of office space in India is 280 million sq ft, of which about 60 million sq ft is vacant, mainly in the NCR, Mumbai and Bangalore,” said Anshuman Magazine, chairman and managing director, South Asia, CB Richard Ellis. Meanwhile the CBRE report said that in 2011 commercial properties would witness more transactions or increase in transaction velocity and absorption but will remain stable on the price fluctuation quotient. However, residential real estate will see a reduction in absorption and less price fluctuation.