Firms find smart ways of building land banks

LandNew Delhi: Real estate firms continue to buy and hold land through tens of subsidiaries, or hundreds of companies promoted by their subsidiaries or promoters in an attempt to acquire such holdings cheap, although the Urban Land Ceiling Act, the original reason for this practice, has been repealed in most states including Delhi and Maharashtra.

Thus, according to filings made by Emaar MGF Ltd in the run-up to a public issue of shares that had to be scrapped after poor response from investors, the company has 360 so-called entities that hold land. Emaar’s subsidiaries have minority stakes in these entities, but collectively own them.

Popularity: 2% [?]

Mumbai’s crowded cityscape may have to wait more for respite

Mumbai CityReal estate prices in Mumbai are unlikely to come down soon in spite of additional building rights being released by the city’s special planning authority, the Mumbai Metropolitan Region Development Authority (MMRDA).

Transfer of development rights, or TDR, is a certificate from the city administration that the owner of a property gets for developing public utilities such as parks, schools and hospitals.

Under the TDR policy, builders are compensated in kind if they surrender some of their land to the government for purposes such as widening a road, creating a park or slum rehabilitation. These rights can be sold to other builders or can be used for development by the builder himself in the suburbs in lieu of the plot that he has surrendered. TDRs cannot be exercised within Mumbai city limits.

Popularity: 3% [?]

House that? Budget, Rs one cr but can’t buy a flat

Rising rentalIn the last on year, the real estate market has touched an all time high. So much so that even the thought of owning a house is like asking for the moon. This jump isn’t just tough for the middle or upper middle class but also the affluent.

Meet the Jariwalas. They have a budget close to Rs 1 crore and yet they are unable to find a decent two bedroom-hall-kitchen (BHK) flat in South Mumbai. They have been house hunting for the past one year. The search continues. “The flats that are within our budget are the ones that are resale ones in bad condition,” laments Sunil Jariwala.

Popularity: 2% [?]

Residential Crunch

Housing ShortageThe housing shortfall in Pune is huge, by any estimates. Developers peg the availability of housing stock at 35,000 units annually, while estimates are that the annual influx into the city is around 1 lakh people, all of who need homes.

The situation is aggravated by few homes being available on rent, since the owners prefer not to rent out homes to individuals due to fears of losing the house to tenants who will not leave at the end of the lease. Only corporates get houses on lease and this is on a pro rata to sale price basis.

Which means that rent, which was Rs 5,000 per month is now Rs 12,000 per month, with no significant in­crease in rent for older buildings.

Popularity: 2% [?]

Mhada to build 2 lakh houses

MhadaMumbai: It has constructed 2.5 lakh houses since its inception in 1949. Now, the state-owned Maharashtra Housing and Area Development Authority (Mhada) plans to build nearly 2 lakh houses for middle and lower income groups in Mumbai and surrounding areas in the next 4-5 years.

“These days, most builders are constructing houses for the upper middle class and the rich. The needs of lower income groups and the middle class are not looked after. The middle class cannot stay in slums and neither can they afford the high rates,” said Mhada vice-president T Chandrashekhar.

Popularity: 20% [?]




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