Dharavi to be redeveloped as a whole with 80% Pvt stake

After several failed attempts, the Dharavi Redevelopment Project is being revived yet again. However, the state government’s plan to divide the sprawling slum into 12 sub-clusters and redevelop it has been scrapped. The state cabinet approved a fresh plan: Dharavi will be redeveloped as a whole, not in parts. A special purpose vehicle (SPV) will be set up—with 80% private stake and 20% government contribution— to execute the Rs 22,000-crore project. Global tenders will be issued for its construction, said housing minister Prakash Mehta.

This time around the cabinet has approved a proposal wherein the SPV with 80% private stake and 20% government contribution will have a special status. “This will enable the project to obtain concessions in stamp duty, state GST repayment, and relaxation in premium for fungible floor space index (FSI),” said a senior official from the housing department. Under the new plan, the land owned by Central Railway (90 acres) which abuts Dharavi will also be part of the redevelopment project. Sources said discussions with the railways are at a preliminary stage.

Source: The Times of India, Wednesday 17 October 2018

Incomplete building projects can benefit from new devpt rules

In a boost to the realty sector, BMC will allow developers whose projects are incomplete to continue their construction under the new development control regulation (DCR-2034), which provides for more FSI potential on plots. The decision was taken by civic chief Ajoy Mehta on Wednesday at the first meeting to prepare a transition policy for projects started under DCR-1991. While all such projects will be allowed to migrate to the new DCR, builders will also have the option of completing construction under the old norms if all permissions have been already obtained. Any new permission related to construction will henceforth be given only under DCR-2034.

Mehta said, “Even projects that are half-way through can migrate. In such cases, the development potential of the entire plot will be calculated under the new norms. After deducting the FSI used, the builder will be allowed to use the remaining FSI while completing the work.” Sources say this will benefit several builders because under the new DCR, development potential of a plot is calculated on the gross area through 15% is reserved for open space for building residents. A builder can also migrate an entire project cleared under DCR-1991 by taking fresh clearance.

Source: The Times of India, Friday 19 October 2018

Time to go green

In a bid to make Mumbai healthy, more and more real estate developers are adopting eco-friendly ways. A spurt in development of real estate and infrastructure projects have adversely impacted the environment. Increasing pollution level and lack of green cover have undoubtedly become a big issue in a city like Mumbai. Hence, for making the city healthier, sustainability in the construction industry is the key. Several city developers are giving emphasis to building green homes today. They see it as a solution to minimizing the adverse effects of pollution and promoting healthy living for people. The following aspects are given importance while making a green building:- Climate-responsive architecture; Ecological site planning and landscaping; Use of eco-friendly materials; Use of energy-efficient building system and services; Integration of renewable energy systems like solar water heater, PV cells; Water conservation technology; Energy-efficient disposal system of sewerage; Most importantly, applying the principle of the 3Rs — reduce, reuse and recycle.

Benefits of Green Buildings: * Green buildings help in saving a huge amount of resources like power and water. They save around 30-40 percent power consumption which results in reduced electricity bills and provides huge savings to the homebuyers. * Incentives like tax rebates are offered in some states for green buildings. Some municipal corporation in Maharashtra offers up to 15 percent rebate on property tax and up to 50 percent rebate on a premium for builders who are GRIHA-certified. * Durable materials like wood and timber crate used for green buildings help in saving the cost of replacement and maintenance. “Green building forbids the use of hazardous chemicals, materials, and fragrances that are used to build standard buildings. The roofs are a prominent feature of green buildings as they are partially or completely covered with vegetation; it reduces heating and cooling costs, prevents storm-water runoff, and acts as a filter to pollutants,” informed Jain. * Another economic benefit is that the resale value of these buildings is much more owing to less operational and maintenance cost. * In short, these buildings improve ventilation, environment and create a healthy and comfortable life.

Boost to Green Buildings: Keeping in view that the benefits of green buildings are many and will be beneficial not just environmentally, but economically as well, government and developers are leaving no stone unturned to promote it. One of the effective methods of endorsing green homes has been by luring buyers on the cost that will be saved on electricity bills, health, etc., post its purchase. In a bid to promote green buildings in India, some of the state governments and local bodies have started providing incentives and tax benefits to those who get their building green-certified. Furthermore, to provide open green spaces inside housing complexes, the city’s municipal corporation, in its revised Development Control Regulations, has proposed to allow the redevelopment of buildings that are over 30 years old and offer 40 percent of the total built-up area (BUA), thus ensuring more open spaces in Mumbai. The rising carbon footprints on earth have been the biggest concern and so homes with sustainable construction is a wise choice.

Source: The Times of India, Saturday 27 October 2018

Nice Save

Striking the right balance between investments, savings, and living expenses can feel like a tightrope walk. Fret not, as our experts share their financial formula – “Financial security is a key element towards securing a comfortable living for the future. So, it’s imperative to take out some time to assess one’s current earning capacity, risk coverage for the future, and have an investment plan in place, as it will not only give a sense of control over present life but also ensure a secure future,” says Sachin Chaudhary, executive director and COO, Indiabulls Housing Finance Ltd. In short, an individual must spend 35-40 percent of one’s monthly income on living expenses, around 40-45 percent on loan installments and balance 15-20 percent on savings. Following this principle, without having to compromise on the current lifestyle in a big way, s/he will not only be able to purchase her/his own house; but also build a corpus for a fulfilling postretirement life.

The thumb rule in getting the right mix between savings, expenses, and investment:

Manage your monthly finance through budgeting; This will help you to keep a tab on your spending and savings; Set short-term, medium-term and long-term goals; Build a diversified investment portfolio of fixed deposits, mutual funds and real estate; If your investment to rent ratio is high, give your property on rent and earn handsome returns; A periodic review of the achievements or gaps is essential to mark the progress towards your goals and take corrective measures wherever required. – Rajiv Ranjan Singh, CEO, Karvy Stock Broking. In Real Estate we trust… Among various aspirations that an average Indian has, owning a home tops them all. Hence, it is not only one of the most popular investment tools, but also one of the asset classes where prudently saving for and eventually investing in hold the key.

Source: Times Property, Saturday 27 October 2018

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