Friday, 29 February 2008
Realty prices in suburban Pune on a downslide
Posted on 23:38 by Unknown
DNA reports
Bargain hard to save up to 10 per cent, say brokers
After witnessing an exponential rise over the last two years, real estate prices in Pune have come down by 8-10 per cent — Rs 200-400 per square feet — with prospective buyers prepared to wait because of high interest rates, if property agents are to
be believed.
Most real estate agents admit that there is a shortage of demand. “Even second sales are not getting the expected price and owners and builders have been found negotiating hard,” says Anil Kamble, a property dealer in Camp.
According to brokers, the decline is particularly seen in the fringe areas and suburbs, which have seen an increase in construction activity in recent years. Property prices in the main city are, however, still high, they say.
“In areas like Kharadi, the property prices vary from Rs3,500 to Rs5 000 per square feet and can be brought down by another Rs300-400 per square feet by bargaining hard,” says a member of the Pune real estate association. “Similarly, in areas like Pimple Nilakh, where the rates are Rs3,000 and upwards, bargaining can save prospective buyers up to Rs250 per square feet,” he said.
Senior IT professional Anuj Pradhan, who has been trying to sell his 3BHK flat at Wanowrie, was shocked to see a reduced price tag put on his property by his real
estate agent.
“Four months ago, the broker could have fetched me Rs60 lakh, but now he says buyers are not willing to pay more than Rs54 lakh,” Pradhan says.
“The buyer response,” according to Rajesh Vaswani, a property agent in Camp, “is now less than enthusiastic.” Builders, however, are hesitant to admit the fall, he says.
Sachin Kadam, a member of the Real Estate Agents’ Association of Pune, says property rates went up by more than 60-70% in the last two years in the heart of the city.
“But of late, the prices have started to stabilise. Buyers can now bargain with builders and pay a lower price,” he says.
Because of high interest rates on home loans, prospective buyers, mostly from the middle class, have decided to wait and watch, he says.
Ranjit Tiwari, another real estate agent, however, believes that the dip in prices
is temporary and will not last more than a couple of months.
“With the kind of growth the city is witnessing, real estate can’t lag behind,” he adds.
Bargain hard to save up to 10 per cent, say brokers
After witnessing an exponential rise over the last two years, real estate prices in Pune have come down by 8-10 per cent — Rs 200-400 per square feet — with prospective buyers prepared to wait because of high interest rates, if property agents are to
be believed.
Most real estate agents admit that there is a shortage of demand. “Even second sales are not getting the expected price and owners and builders have been found negotiating hard,” says Anil Kamble, a property dealer in Camp.
According to brokers, the decline is particularly seen in the fringe areas and suburbs, which have seen an increase in construction activity in recent years. Property prices in the main city are, however, still high, they say.
“In areas like Kharadi, the property prices vary from Rs3,500 to Rs5 000 per square feet and can be brought down by another Rs300-400 per square feet by bargaining hard,” says a member of the Pune real estate association. “Similarly, in areas like Pimple Nilakh, where the rates are Rs3,000 and upwards, bargaining can save prospective buyers up to Rs250 per square feet,” he said.
Senior IT professional Anuj Pradhan, who has been trying to sell his 3BHK flat at Wanowrie, was shocked to see a reduced price tag put on his property by his real
estate agent.
“Four months ago, the broker could have fetched me Rs60 lakh, but now he says buyers are not willing to pay more than Rs54 lakh,” Pradhan says.
“The buyer response,” according to Rajesh Vaswani, a property agent in Camp, “is now less than enthusiastic.” Builders, however, are hesitant to admit the fall, he says.
Sachin Kadam, a member of the Real Estate Agents’ Association of Pune, says property rates went up by more than 60-70% in the last two years in the heart of the city.
“But of late, the prices have started to stabilise. Buyers can now bargain with builders and pay a lower price,” he says.
Because of high interest rates on home loans, prospective buyers, mostly from the middle class, have decided to wait and watch, he says.
Ranjit Tiwari, another real estate agent, however, believes that the dip in prices
is temporary and will not last more than a couple of months.
“With the kind of growth the city is witnessing, real estate can’t lag behind,” he adds.
Wednesday, 27 February 2008
FSI increase on cards in Mumbai
Posted on 19:45 by Unknown
As per the latest news articles it looks like the state government will be increasing FSI uniformly to 2 across the board. As per current rules, Mumbai city has an FSI of 1.33 and suburbs 1. SRA schemes have an FSI of 2.25 and Dharavi redevelopment 4. Most high rises are built in the suburbs using the TDR (transfer of development rights) certificates. The price quoted for them thru legal channels is 4500 per sq/ft. If one has to factor in the cash component, the price would shoot up to 7k-8k. With FSI being normalized at 2, it is possible to construct twice as much on the same land as before. Prices can drop here if this is implemented.
I found this excellent document on FSI by Alain Bertaud. He makes no bones of the fact that the BMC uses the TDR certificates in a monopolist manner thereby corrupting the system to a level where mumbai citizens have to live on 2.9 meters of land. Its an eyeopening document and it worth a second read. Quoting from the document.
Which factors are responsible for this situation? What is so exceptional about Mumbai?
The very low consumption of floor space coupled with very high real estate prices would suggest that a number of supply bottlenecks might be responsible. By comparing Mumbai to other metropolis in Asia it appears that indeed 4 factors are exceptional and contribute to the very low supply of floor space:
1. An exceptional topography that reduces the amount of developable land
2. A draconian and ill-conceived land use policy restricting the area of floor space which can be built on the little land available;
3. Muddled property rights preventing households and firms to freely trade land and floor space as a commodity;
4. A failure to develop major primary infrastructure networks, which prevents the city to overcome its topographical constraint. In turn, the weakness of the infrastructure network is used to justify the restrictive land use policy
To give an order of magnitude to these figures consider the following: Shanghai in 1984, recovering from more than 10 years of Cultural Revolution, had a floor area per person of 3.65 m2. Shanghai’ Municipality, at the time, considered that rapidly increasing floor consumption was to be the city’s first priority. In 2003, the average floor space consumption in Shanghai was 13.1 m2/person. This was achieved in part by drastically increasing the FSI to allowredevelopment of obsolete buildings with relocation largely in situ.
http://alain-bertaud.com/AB_Files/AB_Mumbai_FSI_conundrum.pdf
Another article on Time discusses Dharavi.
http://www.time.com/time/business/article/0,8599,1711330-2,00.html
I found this excellent document on FSI by Alain Bertaud. He makes no bones of the fact that the BMC uses the TDR certificates in a monopolist manner thereby corrupting the system to a level where mumbai citizens have to live on 2.9 meters of land. Its an eyeopening document and it worth a second read. Quoting from the document.
Which factors are responsible for this situation? What is so exceptional about Mumbai?
The very low consumption of floor space coupled with very high real estate prices would suggest that a number of supply bottlenecks might be responsible. By comparing Mumbai to other metropolis in Asia it appears that indeed 4 factors are exceptional and contribute to the very low supply of floor space:
1. An exceptional topography that reduces the amount of developable land
2. A draconian and ill-conceived land use policy restricting the area of floor space which can be built on the little land available;
3. Muddled property rights preventing households and firms to freely trade land and floor space as a commodity;
4. A failure to develop major primary infrastructure networks, which prevents the city to overcome its topographical constraint. In turn, the weakness of the infrastructure network is used to justify the restrictive land use policy
To give an order of magnitude to these figures consider the following: Shanghai in 1984, recovering from more than 10 years of Cultural Revolution, had a floor area per person of 3.65 m2. Shanghai’ Municipality, at the time, considered that rapidly increasing floor consumption was to be the city’s first priority. In 2003, the average floor space consumption in Shanghai was 13.1 m2/person. This was achieved in part by drastically increasing the FSI to allowredevelopment of obsolete buildings with relocation largely in situ.
http://alain-bertaud.com/AB_Files/AB_Mumbai_FSI_conundrum.pdf
Another article on Time discusses Dharavi.
http://www.time.com/time/business/article/0,8599,1711330-2,00.html
Tuesday, 26 February 2008
End of the dream for Devenhalli real estate
Posted on 00:11 by Unknown
Without water, electricity and roads all dreams can turn into nightmares. It will be interesting to see what the farmers do with the crores they have raked in from the sale of their "hot property". I know a friends domestic help who owned 1 acre of barren farmland in Devanhalli and they sold out in mid 2007, only to buy a site in RT nagar. Talk about jackpot.
TROUBLE AHEAD: Without guaranteed water and electricity supply, builders and developers in Devanahalli are in a fix
Builders have bought acres and acres around the new airport, but aren’t building.
Gated communities, integrated townships, villas and high-end-apartments are all on the cards, but are unlikely to see the light of day in the near future.
Developers bought agricultural land paying fancy prices up to Rs 1,300 a square foot hoping to cash in on the demand once the airport came up. But the harsh reality is that their hands are tied by many factors.
No clearances
The government has yet to release a development plan for the Devanahalli area. Without such a plan, approvals are impossible to come by.
Government agencies such as the pollution control, water and electricity boards are not ready to clear projects as they are in no position to provide service. Farmers no longer own land in the neighbourhood, and housing layouts can’t come up because of a lack of basic amenities.
Water woes
“Water is a major problem,” said Capt Raja Rao, former chief engineer and water resources expert. “The water board can’t supply much, and ground water in the region is already overexploited.”
A developer said the situation had pushed him to pessimism. “Even if the government allows us to dig borewells, where is the water? We have dug up to 900 feet, but it’s no use. We are in a real crisis.”
Premium builders like Shobha, Mantri, and Prestige have lined up mega projects, but nothing is moving. Only GMR has made a leap of faith and built its corporate office in Devanahalli.
Re-cycling of drainage water is one remedy, according to the BWSSB. But experts such as Raja Rao and A N Yellappa Reddy say it is contaminated beyond permissible limits.
Pay up for power
The power situation isn’t much better. A Bescom source said, “It is not as critical as the water problem, but we can’t assure uninterrupted power supply as the IT and BT industries demand. We can try to provide power at high rates, but industrial and domestic consumers may not be able to afford it.”
No IT hub
The software industry is reluctant to go to Devanahalli. No IT company is building an office in the region. Some plan townships for their employees but are demanding a satellite town ring road (STRR) that connects Dodballapur, Devanahalli, Hoskote, Ramanagar, and Magadi. But that is a costly wish.
“STRR calls for massive investment,” said Sudhir Krishna, BMRDA commissioner. “It is estimated to cost a whopping Rs 3,000 crore, or Rs 10 crore a km.”
Though the project has been planned as a public-private venture, no investor has come forward with the money. “With no IT company in the vicinity, our hope for real estate growth is receding. I am afraid we are heading for big trouble,” a developer said.
Some hope
However, the larger developer community is not so despairing. “With older airports running out of space, Bangalore is going to be a major aviation hub. And that will kick-start growth,” said K Sriram, chairman, Builders Association of India, Karnataka chapter.
TROUBLE AHEAD: Without guaranteed water and electricity supply, builders and developers in Devanahalli are in a fix
Builders have bought acres and acres around the new airport, but aren’t building.
Gated communities, integrated townships, villas and high-end-apartments are all on the cards, but are unlikely to see the light of day in the near future.
Developers bought agricultural land paying fancy prices up to Rs 1,300 a square foot hoping to cash in on the demand once the airport came up. But the harsh reality is that their hands are tied by many factors.
No clearances
The government has yet to release a development plan for the Devanahalli area. Without such a plan, approvals are impossible to come by.
Government agencies such as the pollution control, water and electricity boards are not ready to clear projects as they are in no position to provide service. Farmers no longer own land in the neighbourhood, and housing layouts can’t come up because of a lack of basic amenities.
Water woes
“Water is a major problem,” said Capt Raja Rao, former chief engineer and water resources expert. “The water board can’t supply much, and ground water in the region is already overexploited.”
A developer said the situation had pushed him to pessimism. “Even if the government allows us to dig borewells, where is the water? We have dug up to 900 feet, but it’s no use. We are in a real crisis.”
Premium builders like Shobha, Mantri, and Prestige have lined up mega projects, but nothing is moving. Only GMR has made a leap of faith and built its corporate office in Devanahalli.
Re-cycling of drainage water is one remedy, according to the BWSSB. But experts such as Raja Rao and A N Yellappa Reddy say it is contaminated beyond permissible limits.
Pay up for power
The power situation isn’t much better. A Bescom source said, “It is not as critical as the water problem, but we can’t assure uninterrupted power supply as the IT and BT industries demand. We can try to provide power at high rates, but industrial and domestic consumers may not be able to afford it.”
No IT hub
The software industry is reluctant to go to Devanahalli. No IT company is building an office in the region. Some plan townships for their employees but are demanding a satellite town ring road (STRR) that connects Dodballapur, Devanahalli, Hoskote, Ramanagar, and Magadi. But that is a costly wish.
“STRR calls for massive investment,” said Sudhir Krishna, BMRDA commissioner. “It is estimated to cost a whopping Rs 3,000 crore, or Rs 10 crore a km.”
Though the project has been planned as a public-private venture, no investor has come forward with the money. “With no IT company in the vicinity, our hope for real estate growth is receding. I am afraid we are heading for big trouble,” a developer said.
Some hope
However, the larger developer community is not so despairing. “With older airports running out of space, Bangalore is going to be a major aviation hub. And that will kick-start growth,” said K Sriram, chairman, Builders Association of India, Karnataka chapter.
Saturday, 23 February 2008
Roubini , Peter Schiff , Marc Faber, are calling for financial meltdowns.
Posted on 08:58 by Unknown
Roubini is calling for a severe meltdown, Faber see's India's sensex at 12k and Peter Schiff sees the dollar tanking below 1.5 to the Euro. I remember Faber's advice in nov 2005 where he said property investment is a better option then investing in Indian stocks due to high volatility exhibited by stocks. I actually took his advice and liquidated my MF's and bought few properties. Needless to say the decision was pretty good one since I didnt have to suffer the heartburn on May 2006 and then the recent whipsaw market of late 2007 and early 2008 and generated excess returns of MF"s since I had leveraged the credit market. I was primarily interested in Mumbai initially and I feel the prices then and now are still over priced relative to other cities, bar delhi. I think we will see pronounced correction in Mumbai since a lot of the stock money has evaporated and still more to come if Dr Faber's prediction comes true. To someone going short on the Indian Stock market, I think this coudn't be a more opportune time
Anatomy of a financial meltdown
By Nouriel Roubini
NEW YORK: A vicious circle is currently underway in the United States, and its reach could broaden to the global economy. America’s financial crisis has triggered a severe credit crunch that is making the US recession worse, while the deepening recession is leading to larger losses in financial markets, thus undermining the wider economy. There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.
The problem is no longer merely sub-prime mortgages, but rather a “sub-prime” financial system. The housing recession – the worst in US history and worsening every day – will eventually see house prices fall by more than 20 percent, with millions of Americans losing their homes. Delinquencies, defaults, and foreclosures are now spreading from sub-prime to near-prime and prime mortgages. Thus, total losses on mortgage-related instruments – include exotic credit derivatives such as collateralized debt obligations (CDOs) – will add up to more than $400 billion.
Moreover, commercial real estate is beginning to follow the downward trend in residential real estate. After all, who wants to build offices, stores, and shopping centers in the empty ghost towns that litter the American West?
In addition to the downturn in real estate, a broader bubble in consumer credit is now collapsing: as the US economy slips into recession, defaults on credit cards, auto loans, and student loans will increase sharply. US consumers are shopped-out, savings-less, and debt-burdened. With private consumption representing more than 70 percent of aggregate US demand, cutbacks in household spending will deepen the recession.
We can also add to these financial risks the massive problems of bond insurers that guaranteed many of the risky securitization products such as CDOs. A very likely downgrade of these insurers’ credit ratings will force banks and financial institutions that hold these risky assets to write them down, adding another $150 billion to the financial system’s mounting losses.
Then there is the exposure of banks and other financial institutions to rising losses on loans that financed reckless leveraged buy-outs (LBOs). With a worsening recession, many LBOs that were loaded with too much debt and not enough equity will fail as firms with lower profits or higher losses become unable to service their loans.
Given all this, the recession will lead to a sharp increase in corporate defaults, which had been very low over the last two years, averaging 0.6 percent per year, compared to an historic average of 3.8 percent. During a typical recession, the default rate among corporations may rise to 10-15 percent, threatening massive losses for those holding risky corporate bonds.
As a result, the market for credit default swaps (CDS) – where protection against corporate defaults is bought and sold – may also experience massive losses. In that case, there will also be a serious risk that some firms that sold protection will go bankrupt, triggering further losses for buyers of protection when their counterparties cannot pay.
On top of all this, there is a shadow financial system of non-bank financial institutions that, like banks, borrow short and liquid and lend to or invest in longer-term and illiquid assets. This shadow system includes structured investment vehicles (SIVs), conduits, money market funds, hedge funds, and investment banks.
Like banks, all these financial institutions are subject to liquidity or rollover risk – the risk of going belly up if their creditors do not rollover their short-term credit lines. But, unlike banks, they do not have the safety net implied by central banks’ role as lender of last resort.
Now that a recession is underway, US and global stock markets are beginning to fall: in a typical US recession, the S&P 500 index falls by an average of 28 percent as corporate revenues and profits sink. Losses in stock markets have a double effect: they reduce households’ wealth and lead them to spend less; and they cause massive losses to investors who borrowed to invest in stock, thus triggering margin calls and asset fire sales.
There is thus a broader risk that many leveraged investors in both equity and credit markets will be forced to sell illiquid assets in illiquid markets, leading to a cascading fall in asset prices to below their fundamental values. The ensuing losses will aggravate the financial turmoil and economic contraction.
Indeed, adding up all these losses in financial markets, the sum will hit a staggering $1 trillion. Tighter credit rationing will then further hamper the ability of households and firms to borrow, spend, invest, and sustain economic growth. The risk that a systemic financial crisis will drive a more pronounced US and global recession has quickly gone from being a theoretical possibility to becoming an increasingly plausible scenario.
Anatomy of a financial meltdown
By Nouriel Roubini
NEW YORK: A vicious circle is currently underway in the United States, and its reach could broaden to the global economy. America’s financial crisis has triggered a severe credit crunch that is making the US recession worse, while the deepening recession is leading to larger losses in financial markets, thus undermining the wider economy. There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.
The problem is no longer merely sub-prime mortgages, but rather a “sub-prime” financial system. The housing recession – the worst in US history and worsening every day – will eventually see house prices fall by more than 20 percent, with millions of Americans losing their homes. Delinquencies, defaults, and foreclosures are now spreading from sub-prime to near-prime and prime mortgages. Thus, total losses on mortgage-related instruments – include exotic credit derivatives such as collateralized debt obligations (CDOs) – will add up to more than $400 billion.
Moreover, commercial real estate is beginning to follow the downward trend in residential real estate. After all, who wants to build offices, stores, and shopping centers in the empty ghost towns that litter the American West?
In addition to the downturn in real estate, a broader bubble in consumer credit is now collapsing: as the US economy slips into recession, defaults on credit cards, auto loans, and student loans will increase sharply. US consumers are shopped-out, savings-less, and debt-burdened. With private consumption representing more than 70 percent of aggregate US demand, cutbacks in household spending will deepen the recession.
We can also add to these financial risks the massive problems of bond insurers that guaranteed many of the risky securitization products such as CDOs. A very likely downgrade of these insurers’ credit ratings will force banks and financial institutions that hold these risky assets to write them down, adding another $150 billion to the financial system’s mounting losses.
Then there is the exposure of banks and other financial institutions to rising losses on loans that financed reckless leveraged buy-outs (LBOs). With a worsening recession, many LBOs that were loaded with too much debt and not enough equity will fail as firms with lower profits or higher losses become unable to service their loans.
Given all this, the recession will lead to a sharp increase in corporate defaults, which had been very low over the last two years, averaging 0.6 percent per year, compared to an historic average of 3.8 percent. During a typical recession, the default rate among corporations may rise to 10-15 percent, threatening massive losses for those holding risky corporate bonds.
As a result, the market for credit default swaps (CDS) – where protection against corporate defaults is bought and sold – may also experience massive losses. In that case, there will also be a serious risk that some firms that sold protection will go bankrupt, triggering further losses for buyers of protection when their counterparties cannot pay.
On top of all this, there is a shadow financial system of non-bank financial institutions that, like banks, borrow short and liquid and lend to or invest in longer-term and illiquid assets. This shadow system includes structured investment vehicles (SIVs), conduits, money market funds, hedge funds, and investment banks.
Like banks, all these financial institutions are subject to liquidity or rollover risk – the risk of going belly up if their creditors do not rollover their short-term credit lines. But, unlike banks, they do not have the safety net implied by central banks’ role as lender of last resort.
Now that a recession is underway, US and global stock markets are beginning to fall: in a typical US recession, the S&P 500 index falls by an average of 28 percent as corporate revenues and profits sink. Losses in stock markets have a double effect: they reduce households’ wealth and lead them to spend less; and they cause massive losses to investors who borrowed to invest in stock, thus triggering margin calls and asset fire sales.
There is thus a broader risk that many leveraged investors in both equity and credit markets will be forced to sell illiquid assets in illiquid markets, leading to a cascading fall in asset prices to below their fundamental values. The ensuing losses will aggravate the financial turmoil and economic contraction.
Indeed, adding up all these losses in financial markets, the sum will hit a staggering $1 trillion. Tighter credit rationing will then further hamper the ability of households and firms to borrow, spend, invest, and sustain economic growth. The risk that a systemic financial crisis will drive a more pronounced US and global recession has quickly gone from being a theoretical possibility to becoming an increasingly plausible scenario.
Migrant worker exdous hampering construction in Pune
Posted on 08:50 by Unknown
It comes as no surprise that the Pune builders have started blaming the migrants for late delivery of projects. Most construction contracts have a Force Majeure clause which absolves builders from their liabilities in case of delays. Expect all builders to delay projects and sit on the customers money for more months then planned.
The whole argument of quality workers is bogus since the migrants coming from impoverished regions of UP/Bihar have no skills bar raw genetic strength. What the builders mean is that they are unable to find hard working , strong people who are willing to work long hours at low wages. Its high time the construction industry upped its wages of the workers. On an emotional level I'm not sure how it feels to be building all the houses and apartments and not having a chance to live in half decent place along with your family. For all the investors in real estate I believe its time to reward the faceless worker since if it wasn't for him you woud'nt be looking so smart
The anti migrant violence in triggered off by Raj Thackeray's hate campaign has hit the booming real estate sector in Pune.
A large chunk of the workforce comes from states like Uttar Pradesh, Bihar and Jharkhand. But after the anti-migrant violence by Raj Thackeray's Maharashtra Navnirman Sena, these workers have gone back to their home states.
Seriously hampering work on construction projects.
Satish Magar, MD Magarpatta Township said, ''I would normally need about 14,000 to 15,000 workers daily on different locations for our projects, but I have to suffice with just 8000 to 10,000 workers and it's not just quantity but the question is also of good quality workers which we don't get here.''
Satish magar is not the only builder feeling the pinch. There is a huge demand-supply gap in Pune, which is witnessing a boom in the real estate sector.
Lalitkumar Jain, President of Pune Promoters and Builders Association said, ''We are facing a huge crises and we fear that because of the workers going back, we will not be able to meet our delivery commitments almost all the projects will be delayed.''
According to rough estimates, about 80 per cent of the construction workforce in Pune comes from other states and out of this, nearly 60 per cent are labourers from north. Many of them masons, plumbers, carpenters and electricians.
The situation in Pune with regards to the exodus of migrants is not as bad as in other cities like Nashik, but with the boom in the construction industry builders are facing the heat.
The whole argument of quality workers is bogus since the migrants coming from impoverished regions of UP/Bihar have no skills bar raw genetic strength. What the builders mean is that they are unable to find hard working , strong people who are willing to work long hours at low wages. Its high time the construction industry upped its wages of the workers. On an emotional level I'm not sure how it feels to be building all the houses and apartments and not having a chance to live in half decent place along with your family. For all the investors in real estate I believe its time to reward the faceless worker since if it wasn't for him you woud'nt be looking so smart
The anti migrant violence in triggered off by Raj Thackeray's hate campaign has hit the booming real estate sector in Pune.
A large chunk of the workforce comes from states like Uttar Pradesh, Bihar and Jharkhand. But after the anti-migrant violence by Raj Thackeray's Maharashtra Navnirman Sena, these workers have gone back to their home states.
Seriously hampering work on construction projects.
Satish Magar, MD Magarpatta Township said, ''I would normally need about 14,000 to 15,000 workers daily on different locations for our projects, but I have to suffice with just 8000 to 10,000 workers and it's not just quantity but the question is also of good quality workers which we don't get here.''
Satish magar is not the only builder feeling the pinch. There is a huge demand-supply gap in Pune, which is witnessing a boom in the real estate sector.
Lalitkumar Jain, President of Pune Promoters and Builders Association said, ''We are facing a huge crises and we fear that because of the workers going back, we will not be able to meet our delivery commitments almost all the projects will be delayed.''
According to rough estimates, about 80 per cent of the construction workforce in Pune comes from other states and out of this, nearly 60 per cent are labourers from north. Many of them masons, plumbers, carpenters and electricians.
The situation in Pune with regards to the exodus of migrants is not as bad as in other cities like Nashik, but with the boom in the construction industry builders are facing the heat.
Wednesday, 20 February 2008
Hotel plans near BIAL grounded due to lack of water
Posted on 20:57 by Unknown
If water is not available below 800 ft, how can residential complexes come up here. The bubble is Devenhalli real estate is so ready to burst.
Hotel plans near BIAL grounded
With the Karnataka State Pollution Control Board (KSPCB) categorically stating that it will not unlock the green-belt around the new Bangalore International Airport near Devanahalli, several hotel projects proposed in the area are likely to be grounded.
Non-availability of water around the airport is being cited as the reason by the KPSCB to reject scores of applications from various firms seeking clearance certificate.
Speaking to the Business Standard, KSPCB Chairman H C Sharat Chandra said surface water sources around the airport are few while the ground water table in the area is depleting.
“Water is now available only below 600-800 feet from the surface. If star hotels are permitted, the water level will further dip. So we have taken a decision against giving permission,” said Chandra.
It is estimated that 4.5 lakh litres of water is consumed everyday by hotels if they are allowed to operate. That eventually will only dry water sources in the rural areas, Chandra added.
Even the Bangalore International Airport Area Planning Authority (BIAAPA) had announced that it will not approve projects that will destroy natural river valley network in the three towns of Devanahalli, Doddaballapur and Vijayapura and the 347 villages that are in the airport area.
With the airport all set to be inaugurated this March-end, pressure is being mounted by hospitality lobby to allow five star hotels in the vicinity of the airport.
But Chandra maintained: “We will give permission provided the Bangalore Water Supply and Sewerage Board (BWSSB)supplies to these hotels. We will not allow anyone to exploit the ground water table.”
At present, BWSSB has installed a dedicated pipeline to the airport.Hotel plans near BIAL grounded
BS Reporter / Chennai/ Bangalore February 21, 2008
With the Karnataka State Pollution Control Board (KSPCB) categorically stating that it will not unlock the green-belt around the new Bangalore International Airport near Devanahalli, several hotel projects proposed in the area are likely to be grounded.
Non-availability of water around the airport is being cited as the reason by the KPSCB to reject scores of applications from various firms seeking clearance certificate.
Speaking to the Business Standard, KSPCB Chairman H C Sharat Chandra said surface water sources around the airport are few while the ground water table in the area is depleting.
“Water is now available only below 600-800 feet from the surface. If star hotels are permitted, the water level will further dip. So we have taken a decision against giving permission,” said Chandra.
It is estimated that 4.5 lakh litres of water is consumed everyday by hotels if they are allowed to operate. That eventually will only dry water sources in the rural areas, Chandra added.
Even the Bangalore International Airport Area Planning Authority (BIAAPA) had announced that it will not approve projects that will destroy natural river valley network in the three towns of Devanahalli, Doddaballapur and Vijayapura and the 347 villages that are in the airport area.
With the airport all set to be inaugurated this March-end, pressure is being mounted by hospitality lobby to allow five star hotels in the vicinity of the airport.
But Chandra maintained: “We will give permission provided the Bangalore Water Supply and Sewerage Board (BWSSB)supplies to these hotels. We will not allow anyone to exploit the ground water table.”
At present, BWSSB has installed a dedicated pipeline to the airport.
Hotel plans near BIAL grounded
With the Karnataka State Pollution Control Board (KSPCB) categorically stating that it will not unlock the green-belt around the new Bangalore International Airport near Devanahalli, several hotel projects proposed in the area are likely to be grounded.
Non-availability of water around the airport is being cited as the reason by the KPSCB to reject scores of applications from various firms seeking clearance certificate.
Speaking to the Business Standard, KSPCB Chairman H C Sharat Chandra said surface water sources around the airport are few while the ground water table in the area is depleting.
“Water is now available only below 600-800 feet from the surface. If star hotels are permitted, the water level will further dip. So we have taken a decision against giving permission,” said Chandra.
It is estimated that 4.5 lakh litres of water is consumed everyday by hotels if they are allowed to operate. That eventually will only dry water sources in the rural areas, Chandra added.
Even the Bangalore International Airport Area Planning Authority (BIAAPA) had announced that it will not approve projects that will destroy natural river valley network in the three towns of Devanahalli, Doddaballapur and Vijayapura and the 347 villages that are in the airport area.
With the airport all set to be inaugurated this March-end, pressure is being mounted by hospitality lobby to allow five star hotels in the vicinity of the airport.
But Chandra maintained: “We will give permission provided the Bangalore Water Supply and Sewerage Board (BWSSB)supplies to these hotels. We will not allow anyone to exploit the ground water table.”
At present, BWSSB has installed a dedicated pipeline to the airport.Hotel plans near BIAL grounded
BS Reporter / Chennai/ Bangalore February 21, 2008
With the Karnataka State Pollution Control Board (KSPCB) categorically stating that it will not unlock the green-belt around the new Bangalore International Airport near Devanahalli, several hotel projects proposed in the area are likely to be grounded.
Non-availability of water around the airport is being cited as the reason by the KPSCB to reject scores of applications from various firms seeking clearance certificate.
Speaking to the Business Standard, KSPCB Chairman H C Sharat Chandra said surface water sources around the airport are few while the ground water table in the area is depleting.
“Water is now available only below 600-800 feet from the surface. If star hotels are permitted, the water level will further dip. So we have taken a decision against giving permission,” said Chandra.
It is estimated that 4.5 lakh litres of water is consumed everyday by hotels if they are allowed to operate. That eventually will only dry water sources in the rural areas, Chandra added.
Even the Bangalore International Airport Area Planning Authority (BIAAPA) had announced that it will not approve projects that will destroy natural river valley network in the three towns of Devanahalli, Doddaballapur and Vijayapura and the 347 villages that are in the airport area.
With the airport all set to be inaugurated this March-end, pressure is being mounted by hospitality lobby to allow five star hotels in the vicinity of the airport.
But Chandra maintained: “We will give permission provided the Bangalore Water Supply and Sewerage Board (BWSSB)supplies to these hotels. We will not allow anyone to exploit the ground water table.”
At present, BWSSB has installed a dedicated pipeline to the airport.
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