Monday, 4 April 2016

BANGALORE A PREFERRED REAL ESTATE DESTINATION






Bangalore has emerged as a transparent preference for sectors like workplace and retail, whereas returning a detailed third the residential and cordial reception in step with Cushman & Wakefield, a true estate analysis firm. In its report Cushman & Wakefield GRI india assets Investment report 2009: 'Survival to Revival - Indian real estate sector on the trail to recovery,' the firm aforesaid that urban center is predicted to envision the very best demand for workplace area within the amount 2009 - 2013 with more or less thirty four million sqft.

The expected recovery within the IT/ITeS sector would have a positive result on the demand in urban center. The demand for retail sector is additionally expected to be the very best in bangalore with more or less seven million sq. ft. whereas demand for residential is predicted to be more or less 570,000 units over 2009 2013. The cordial reception sector in urban center too is forecast to register the very best combined annual growth of regarding twenty six per cent in demand, followed by NCR at 24 per cent and Pune at 23 per cent. town of city is predicted to witness the second highest demand for workplace area in Bharat between 2009 to 2013 with a projected accumulative twenty seven.2 million sq ft and the the} town also holds the fifth largest demand share for retail and cordial reception area demand in Bharat.


Anurag Mathur, administrator, India, Cushman & Wakefield aforesaid that the workplace market in city has seen a revived interest from the company sector. smart infrastructure, top quality construction and competitive valuation would be the key reasons for the situation to envision high demand from company sector. 


Hyderabad is predicted to witness workplace demand of sixteen.6 million sq. ft. over a 5 year horizon and records the very best combined annual growth of roughly twenty eight per cent throughout 2009 - 2013 within the workplace sector beside Pune and city. The residential demand for Hyderabad is predicted to be 290,000 units with the very best combined annual growth of fourteen per cent within the next 5 years equivalent to bangalore.


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Sunday, 3 April 2016

BANGALORE REAL ESTATE ON THE WAY TO RECOVERY

      
                             

                


The demand for one bed room, kitchen (BHK) has been on increase; the developers over the past few months have launched or are launching several residential projects in the south and north Bangalore Industrial areas. With the proper and reasonable pricing to the properties with 1BHK flats, the situation in the real estate market is likely to improve in the coming months.
In view of the high costs of projects, the affordability to buy 2 or 3 BHK flats in such projects has gone down to some extent. This might have caused large number of already developed flats in the past few years, lying vacant for a considerably long time. During recession period, real estate market was badly affected and as such there was a down trend in the sale of apartments. Added to this situation of 'No mood to buy', inadequate infrastructure and poor connectivity also affected the real estate market of Bangalore. However, the situation seems to have changed now in view of many infrastructure projects taken up by the various local authorities of Bangalore.
Bangalore is changing fast. Projects for widening of roads all around the metro, strengthening of city transport by adding large number of buses, construction of under/over bridges, construction of sub-ways are all in progress. The most eagerly awaited ambitious project 'Metro Rail' is scheduled to commence its runs by 2011. The metro rail project will certainly improve the connectivity. Better connectivity will also help the real estate market to improve. The much improved connectivity and good infrastructure will be a boon to the real estate market.
With the reduction of the size of flats to one BHK, the prices of flats have come down. There seems to be healthy improvement in the number of buyers of the reduced sizes of flats. The demand for such single BHK flats being high, the developers may even think of letting out the unsold flats on rental basis in case sufficient buyers are not found. This will not only help the people desirous of occupying flats on rental basis but also developers for getting some returns on unoccupied flats. The demand for residential accommodation will, to some extent, be met.
The demand being more for smaller units with one BHK, what will happen to the already developed properties with more than 2 BHKflats? The developers are offering various incentives for their properties and expect that they will be able to dispose of a good number of such flats in the coming months. However in the absence of data about the vacant units of the developed properties, it may be difficult to know about the actual number of unsold units. All efforts will have to be made by the developers to persuade the prospective buyers, for disposing of their developed flats, instead of keeping them vacant by offering all possible and practical concessions like deferred payments, affordable EMIs etc. in prices instead of offering various luxurious benefits.
With the availability of comparatively easy funds by way of loans at lower rates of interest, lowering the sizes of apartments from 2 BHK 3 BHK to 1 BHK, lowering the property rates by correcting the price structure, improvements in the job market, it looks like the real estate market may show some improvement in the coming months. However one will have to wait and see what will happen in the coming months. We may have to look for some concessions forthcoming for the badly hit economy of the real estate industry in the ensuing State/Central budget.

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Tuesday, 29 March 2016

AVOID CRACKS IN BUILDINGS

                               AVOID CRACKS IN BUILDINGS

               
                                

Often people complain of cracks on walls after plastering works. Plastering plays an important role in the construction of a building. Just as skin gives shape and texture to the body and protects it from the harmful environment, plaster protects the building from damage caused by salts, acid and rain in the external environment. It also makes the building look beautiful and attractive.


Defect free durable plaster, free from cracks or other defects can be achieved by diligently following the correct construction practices. One of the reasons cited for cracks is lack of proper cement sand ratio. Normally, for outside plaster, the cement-sand ratio can be from 1:4 to 1:5, for internal plaster from 1:5 to 1:6 and for roof plaster from 1:3 to 1:4.



For better results, check that the mason uses a 1:4 rations mortar of cement and fine sand. For coarse sand, the ratio can be changed to 1:6. However 1:4 mixes is preferred for best results. Make sure that the mason has not prepared the mix all together for the whole day. The mix must be prepared only in small quantities so that it is used within an hour. If excess mortar is prepared, it dries up due to evaporation and remixing deteriorates strength and increases porosity.


The risk of crazing cracks may be minimized by the use of relatively weak mix for finishing coat, avoiding excessive proportion of very fine material in the finish coat and avoiding excessive toweling so as to prevent the excess of laitance drawing to the surface. A major precautionary measure to be under- taken prior to plastering is remove loose mortar and grease from joints. All joints in the masonry should be raked out to a depth of a least 12 mm with a hooked tool made for the purpose while the mortar is still green and not later than 48 hours of the time of laying.


Another important task is that the wall should be wetted for a few hours. The walls should not be soaked but only dampened evenly. Plastering on wet walls is seldom satisfactory because key is not formed between the plaster and the background surface. A good key is essential for successful rendering and for avoiding cracking and crazing. In an ideal state the background should be in saturated surface dry condition.

Addition of water should be carefully monitored. Excess water will cause shrinkage as well as low strength of plaster. Waterproof compounds if used should be uniformly dispersed and mixed properly.


When plastering is done in two coats, the first coat should be left rough and open from edge of the laying trowel and after it has been left long enough to set firm, the surface should be combed or scratched to form a key for the second coat. The first coat should be allowed to dry for three to five days before subsequent coats are applied.


Use a chicken wire mesh while plastering joints between the concrete work and brick-work. Plaster should be finished with a wood felt. A steel trowel shall not be used. Ensure continuous curing for 10 to 14 days. You may keep in mind that the need for repairs arises due to negligence, use of unsuitable materials and improper construction practices. Therefore, to save your buildings from cracking adopt proper construction practices.


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Monday, 28 March 2016

AFFORDABLE HOUSES-NEED OF THE DAY



At every conference, every seminar, every meeting, eminent speakers from the Real Estate Industry and Housing Finance Industry have been speaking about the affordable housing. It is a known fact that the demand for residential housing is ever increasing, particularly in the higher and lower income groups. Housing for the poor classes is always an issue, which remains unsolved, since no one is interested in taking up the housing projects for these people. Apart from the affluent class, middle class (higher as well as lower) and poor class, there is one class that is people below poverty line (BPL) which, it seems, has never been addressed. The demand for houses for middle and poor class is said to be quite high, but the property developers seem to be not very much interested in taking up any projects as the profit margin will be comparatively low.
Affordability is a relative term. It varies from people to people, even person to person. There are people who can afford to have house l flat costing Rs.75crore and there are people who cannot purchase a house/flat even costing Rs.5lakh without raising a loan. They cannot pay even the interest on such loans. Now-a-days the loan facilities are available easily and people do try to have their own houses flats by raising loans. Of course, people in the urban areas, particularly in major cities and Metros, put themselves in 'search' mode and try to purchase a dwelling accommodation affordable for them.
The property developers organize, through their associations, periodically exhibitions, property Melas etc. in the major cities for promoting their properties. To attract the NRIs, exhibitions and melas are organized by the propertydevelopers in other countries, especially in the middle east.
As we are talking about affordability, who can afford is a matter that is perhaps decided by the financial institutions who come forward to offer loans. The affordability is determined on the basis of monthly income of the person, the job security of the applicant, collateral securities available, number of years the applicant will be in service before retirement, etc. Accordingly, the financial institutions work out the amount that the applicant can afford to pay monthly and the period for repayment of loan and interest here on.
The developers take up the housing projects in various parts of the city. The projects are generally designed to suit various classes of people. The higher class people have no problem of affordability. Number of developed flats/houses/sites will be available in the property market at the prices which may suit them. In most of the cases of this category, the affordability is not a problem at all as they can buy the property outright or through the financial institutions as they can raise loans without any problem. They buy the propertywhich they can afford easily without any fuss about the EMIs.

Propertydevelopers are also more interested in this class of buyers as the deals are finalized quickly. The affordable housing, about which we are talking, is applicable to the lower middle class and poor people as they are the main buyers. These people will be planning to purchase houses, flats with the help of financial assistance from the banks and other financial institutions. In view of the high cost of construction, the minimum cost of flats, as we see from the offers made by the developers through the media, is above 15- 20lakhs.This minimum cost is affordable only by the middle class people. 

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AKRAMA SAKRAMA



                                              
Akrama means violation and Sakrama means regularisation. In this scheme, only violations of building and urban development is included. Violation from sanctioned building plans, unauthorised buildings, unauthorised layouts and land use violations have taken place on a large scale in Bengaluru Metropolitan Area due to lack of enforcement by Bengaluru Mahanagara Palike (BBMP) and Bangalore Development Authority (BDA). The Scheme is made applicable to all urban areas in Karnataka. In this article details about the bad situation prevailing in Bengaluru is dealt with. There are too many cases of unauthorised developments within the built up area of the city and suburbs. The helpless State Government without action to prevent unauthorised developments and the officials who colluded with the violators proposed the Akrama Sakrama Scheme during the S.M. Krishna’s Government in the year 2004. The Karnataka Town and Country Planning Act, 1961 (KTCP Act),  which has overriding provisions compared to the Bangalore City Corporation Act, 1964, and the Bangalore Development Authority Act, 1976, was amended to provided for regularisation. 321-A of the Karnataka Municipal Corporations Act was also amended to implement the amended provisions of the KTCP Act. The Act and rules framed specified the nature and extent of unauthorised developments, constructions that would be regularised, the procedure and fines to be levied for regularization of various violations. Since then, though the successive governments pursued the scheme, it was not possible to implement the scheme due to agitations by the rule minded citizens, Citizens Action Forum (CAF), and the residents welfare associations (RWAs). The BJP Government got the Bill passed by the legislature. The Governor of Karnataka rejected BJP government’s request for consent to the bill. The BJP government also tried to get an ordinance passed by the legislature in the year 2010, consent for which was again rejected by the Governor. The present Congress Government proposed an ordinance in May 2013 which was approved by the same Governor with riders. Government is said to have incorporated the Governor’s directions and also the directions of the Supreme Court in Judgements of such schemes by the Orissa and Tamil Nadu Governments. The scheme is pending in the High Court of Karnataka since the year 2007. The Law Minister of the present Government stated that the scheme as modified, will be people friendly. How it is people friendly is not understood as the citizens are affected with lack of ventilations, privacy, traffic problems, etc. The scheme is only violators friendly. Decision of the High Court will have to be seen. The High Court directed on 23.3.2015 that the applications to be received may not be processed till the decision of the court on the scheme.
The present revised scheme provides that the applications are to be made from 23.4.2015 upto 22.3.2016 (One year). The applications should be in respect of buildings built earlier than 19.10.2013. Regularisation will include violations in respect of:
-          Land Use
-          Unauthorised layouts
-          Set back violations, and
-          F.A.R violations
For residential buildings, only upto 50% violations will be considered. For non-residential buildings, only upto 25% violations will be considered.
Applications for land use violations will be available in BDA, and for other urban areas with the respective urban development authorities. This will be one time regularisation based on self declaration by the violator. If the application is rejected, the fine remitted will be refunded within a period of 60 days. If there are so many violations, the applicant will have to get the land use violation regularised first and later apply for regularisation of building with other violations.
A.      Fine for unauthorised layouts
Site area
Bangalore urban
Other corporations
Other
Less than 60/sqmtr
Rs 40/sqmtr
Rs 30/sqmtr
Rs 20/sqmtr
60-120 sq.mtrs
Rs 160/sqmtr
Rs 80/sqmtr
Rs 50/sqmtr
Above 120 sq.mtrs
Rs.600/sqmtr
Rs.250/sqmtr
Rs.150/sqmtr

B.  Regularisation of set back and FAR violations in residential and non-residential buildings.
% of Violation
Regularisation fee/sqmtr of total violated area as percentage of market value of land
Residential upto 25%
6%
More than 25% upto 50%                                          
8%
Non-residential upto 12.5%                                       
20%
More than 12.5% upto 25%
35%
Conclusion:
All the efforts made by Government since 1960 for planned development of urban area by preparation of statutory master plans is defeated as the violations are affecting the land use zoning, building regulations, etc.
The Effects:
Definitely, the Scheme is not going to be one time measure but many times affair by successive state governments.
During construction, violating the sanctioned plan or land use zoning, the violators may tell the officials, if at all a strict official is working in BBMP, that he will get the violations regularized under the Akrama-Sakrama Scheme.
The expected revenue of Rs. 5000 Cr by levy of fine will be a dream. Majority of the violators may not come forward to get the developments/buildings regularized. What Government may get will be hardly Rs.1000 Cr, that too over a period of time. In the suburban areas, the applications will be for buildings here and there and not according to a compact area to enable redevelopment.
It is difficult to expect that BBMP will provide/improve the infrastructure for the benefit of the people living in such sites. The bad position will continue as existing. They can expect only street lighting after a few years. Many of the existing suburban areas in the BBMP limits have no water supply and sewage connections, parks and playgrounds, etc.
How the violators can expect improvement in the unauthorised colonies even if some of them get regularised.
The officials who collude with the violators will not have discipline as so far such officials are not punished. Even if one batch of officials are transferred from BBMP, new batch of such officials only will come to BBMP to continue allowing violations. They will have no fear of disciplinary actions for allowing violations.
Can we expect quality of life in Bangalore if such regularisation schemes are considered by Government? Citizens welfare associations and civic analysts will approach courts against such schemes. Media’s awareness reports will have to be continued in the interest of planned development of the City at least in the future.
Last but not the least, the Government must act stringently against erring officials and take strict disciplinary actions against them.


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