Godrej to build India's first green township in city

Godrej Properties Limited (GPL), a real-estate arm of conglomerate Godrej Group, will launch indias largest green township in january.
The eco-friendly project is coming up near Nirma University on Sarkhej-Gandhinagar road.

Adi Godrej, chairman Godrej Group, said that GPL has inked MOU with Clinton Climate Initiative (CCI) programme for the Ahmedabad township project to be developed in a joint venture with local partner Siddhi Group on about 225 acres of land.

Godrej was in town for the company's forthcoming IPO. Interestingly, Godrej Garden City' (GGC) is one of the 16 real-estate projects in the world selected by CCI, for climate positive development. Godrej group is also founder member of Indian Green Building Council (IGBC). The company will avail green building ratings for GGC from leading agencies.

The project will completed in a phase manner over next ten years, ending with 20,000 dwellings in the price ranging from Rs 20 to 35 lakh during the initial phases. However, the company also plans to build smaller flats worth Rs 10 lakh in the later stages, he said. The work for the first phase is expected to finish in the next two years with 500 dwelling units, mostly two and three BHK.

Apart from the use of solar power, water recycling and harvesting, GPL would use fly-ash bricks and develop many gardens, including a 10-acres park, said Milind Korde GPL, managing director. Amenities like sports complex, club house, schools, hospitals and high street shopping areas are also planned, he added.

Hyderabad based MP Rao, a green building expert and member of IGBC steering committee, said that as of now there is not a single green-integrated township in the country. In fact, IGBC is working on a draft for Green Neighbourhood Rating System to give ratings to upcoming townships, said Rao.

Tax dues: Drive to seal properties begins

PUNE: The Pune Municipal Corporation's (PMC) tax collection and assessment department has undertaken a drive to seal properties on which property tax dues have not been cleared despite issuing notices.

On Monday, four properties in Hadapsar and Kondhwa, on which property tax arrears totalling Rs 40 lakh were to be paid, were sealed.

The department's head Vilas Kanade said the drive will continue. "We appeal to citizens to pay property tax to avoid such action," Kanade said.

Govt plans regulatory reform for housing sector Assetventures

The central government is working on a model real estate regulation bill to provide guidelines to facilitate growth and promotion of healthy and transparent efficient and competitive real estate sector in the country, said the housing and urban poverty alleviation minister Kumari Selja.

This is a welcome move and will help the sector in becoming efficient and competitive. However, developers feel the government should form a separate regulator on the lines of Securities and Exchange Board of India (SEBI) to regulate the sector.

Addressing a conference on real estate, the minister said Indian real estate market is unorganised and fragmented and that most of property transactions are based on certain perceptions and not necessarily on sound business principles. In this, customer satisfaction is low and redressal procedure is long and cumbersome. This has created problems for both buyers and developers. As end users are not sure of delivery of a house by builders on time, they dont want to risk a purchase by taking a loan from the bank.

Apart from this, many buyers are not even sure of the specifications, which developers promise while selling them the houses/flats. Worse still, when developers do not deliver on time or stick to the promised specifications while selling, buyers do not know where to for redressal.

Going to a court is not only time consuming but also expensive. This has forced buyers to either defer their purchase or to go for completed projects. But, this apprehension of end users has affected genuine developers as well, which have a plan and required finances to complete a project. However, in the last couple of months, end users have started showing interest in buying new projects. But, they want to buy in the projects of reputed developers alone. This has created problem for the new but good developers.

A senior developer says if the sector is well regulated, the role of brokers and investors can be reduced. In most of the cases, investors, who have better understanding of the sector and who can invest time and money to know about developers, invest at the early stage of implementation of a project and make easy money by selling them to end users at high prices when the project comes to a close. The end users, on the other hand, are comfortable in buying a house when projects are close to completion, hence making the sector over dependent on investors.

Consequently, in the last one year of market downturn, the entire real estate sector came to a screeching halt as investors disappeared from the market. But, had the sector been well regulated, end users would have been bold enough to buy at the early stage of project implementation. This would have helped developers also.

However, another problem in regulating the sector is that it comes under the state subject as well. Thus, a senior official says nothing much can be done unless state governments show interest. Haryana Government has already passed an act to regulate the sector. But, the results are not encouraging, thus far. It was assured all the stakeholders that the government will accord full cooperation and support to encourage affordable housing.

She said the housing sector in India holds tremendous potential and has positive impact on the social and economic development of the country. In
2006-07 the sector was about 4.5% of country's Gross Domestic Product and comprised approximately 7% of the total urban workforce. Housing is the largest component of the construction sector and central to economic growth.

However, provision of affordable housing for all is a complex problem with challenges emerging from many facets of urban sector. The minister said there are many impediments to the growth of affordable housing land and capital being the two key constraints.

To increase the stock for affordable housing the focus has to be on augmenting land supplies. Kumari Selja said the issue is a critical one and requires a number of measures such as alternative methods of land assembly, development and disposal to be pursued, check on prices of urban land, encouraging public-private partnership, promoting intense use of land-higher densities, revision in Floor Area Ratio or Floor Space Index and change of norms to suit local situations, discouraging speculation in land development, and allotment or disposal process to check rising prices of land.

Seizure notices yield Rs 1.33 cr property tax dues in Pune : Assetventures

Property tax defaulters in the Pimpri-Chinchwad Municipal Corporation (PCMC) areas coughed up Rs 1.33 crore after the corporation's property tax department sent seizure notices to 109 defaulters.
Speaking to TOI, Shahaji Pawar, assistant commissioner, PCMC said that the 109 property tax defaulters owed Rs 2.16 crore as dues.
"The property tax department has intensified its drive to recover the dues from defaulters. Seizure notices are being issued to defaulters who owed large sums. Each divisional office was given the target to send 15 seizure notices to recover the dues. The defaulters have partly paid their dues after receiving the notices. If they do not clear their dues, their properties will be auctioned to recover the balance."
He said that property tax bills are being sent to the property holders for 2009-10. The department has collected Rs 10.36 crore as property tax till now, while it had collected Rs 6.56 crore till end of June in 2008-09.
The property tax department has announced a special scheme of Free Singapore trip' to 15 property tax-payers who have cleared their property tax dues and also paid the tax for the current year. as per the scheme, two members of the taxpayer's family or his two nominees will get a free trip to Singapore.
Pawar said, "Property tax bills for 2009-10 are being sent to the taxpayers. There are a total of 2.71 lakh properties in the municipal limits and we have still to distribute around 60,000 bills. Property taxpayers have to pay their pending dues if any and this year's tax before August 30 to be eligible for the Singapore trip."
He added that a list of such eligible taxpayers will be compiled after August 31. "We will select 15 property holders through a lottery system for the Singapore trip," he stated.
The property tax department has collected a record tax revenue of Rs 88.88 crore in 2008-09. Pawar said, "The department hopes to collect property tax of around Rs 30 crore till the end of August this year. We will start a drive to create awareness among the people to pay tax on time. The department will use loudspeakers mounted on vehicles to make an appeal to the people to pay tax on time and be eligible for the Singapore trip."

Mumbai builds up its low-cost housing

They say it is easy to find everything in Mumbai except for a house.
For 35-year-old Agnelo Fernandez it could not have been truer.
Fernandez and his wife live in a small one room tenement which is less than 180 square feet.
It is in this cramped room that they cook, bathe, entertain and sleep.
They are not exactly poor but Fernandez's salary of $160 a month as a driver cannot get him anything better.
His neighbours - some of whom work as clerks, others run their own small business establishments - make similar money.
"I'd like to move to a better place but with my salary I won't get anything better," Fernandez says.
"I can't afford to buy anything within the city."
Crowded city
He is not the only one.
There are millions of people who live in houses like this across Mumbai.
Entire families live together, with little or no privacy as husbands, wives, grandparents and children all jostle for space.
And because the houses are crowded, the narrow alleyways serve as makeshift sinks, playgrounds and even bathrooms.
But while the thought of owning a home may seem a million miles away at present, that might be about to change.
Faced with a slowing housing market, several builders in the country are switching from premium homes to focusing on more affordable ones.
Earlier during the boom times of India's real estate market, almost all were building swanky apartments for the rich because of the big returns they generated.
But now the high rises with swimming pools, gyms and Italian marble floors are giving way to plain structures with basic amenities that people from lower and middle-class incomes can afford.
'Comfortable prices'
One construction firm, HDIL, has tied up with the government to build over 100,000 new homes.
"What we did over the last four years from 2004 to 2008 was that we made it highly unaffordable and drove nearly 85% of the market out," says the company's managing director Sarang Wadhawan.
He adds that aspiring homeowners in the lower-priced segment of the market were not buying property because they were saving money.
Today that means they have a good cash flow and, after a 25% to 30% drop in prices, are willing to start spending.
"What we have seen is that prices have come down to 2004 levels. At this price level they are very comfortable," Mr Wadhawan says.
Pluggable gap?
Estimates suggest that India has a shortfall of more than 25 million low-cost or affordable houses.That is why companies like HDIL and rivals such as Tata Housing are entering this market.
However, even if each company builds 100,000 houses every 5 years there will still be a massive shortfall.
And with demand outstripping supply to such an extent, some analysts wonder if the gap can ever be closed.
That is why the government is so keen for the real estate sector to focus on affordable housing.
The construction industry has cottoned on to this fact and is pushing to get tax breaks in the forthcoming budget in return for working on the cheap end of the housing market.
Signs of recovery
Anuj Puri, chairman of property consultancy JLL Meghraj, says there is plenty of demand in the sector.
"Even in the lowest times, I'll call it the dark nights, from October until March when there was a bad period, there was demand for affordable housing," he explains.
But while he is optimistic that builders will keep producing low-cost housing in the midst of the downturn, he is not sure if they will be so keen to carry on when the market picks up again.
Already there are signs of recovery in India and developers may switch back to premium housing because of the big gains involved.

That will not be a welcome development for the millions of people who live next to high rises, in small houses in cramped alleyways.
They have fixed jobs and earn regular salaries.
All of them want to move to a better house. A place that they can call home and live in comfortably.
But that could remain a dream if companies here are not serious about the shift from premium to affordable housing.

Pune Property tax: 1,000 locks to shut out defaulters

Pune:
This is an open and shut case of a different kind. The tax collection department of the Pune Municipal Corporation has demanded that it be supplied with 1,000 locks so that it can seal those properties whose owners don’t pay their tax by June 30. It has issued tenders for the purchase of these locks.
Once the PMC gets the list of those who have not paid the bills by the month-end, stern action will be taken against them by sealing their properties, tax collection department chief Vilas Kanade told The Indian Express on Thursday.
The PMC had launched a scheme in April, wherein citizens have the opportunity to file their property tax by June 30 and avail themselves of a 10 per cent rebate. The rebate, however, is applicable to only those who have cleared all the tax arrears on their property so far. The rebate amount will be deducted from the tax for the next year.

This year, we rolled out the plan in the beginning of the financial year to provide people with an opportunity to clear their property tax dues by the June 30 deadline. So far, 2.5 lakh property owners have paid their tax, amounting to Rs 130 crore. The response to the scheme has been good and we expect to collect tax from three lakh properties out of a total of 6.4 lakh registered properties in the city,” Kanade said.
“However, those who still do not pay after the set deadline will face action in the remaining nine months of the current fiscal. As part of this, we have asked the civic administration to provide us with 1,000 locks to seal their properties. A tender to this effect has been issued and we will soon get these locks.

We are going to distribute the locks to our ward offices and provide them a list of tax defaulters. Accordingly, these officers will go and lock the properties,” he said.
This year, the PMC had dispatched the tax bills by March to enable early payment of taxes, so as to enable citizens get the 10 per cent rebate. The 10 per cent, thus saved, will be deducted from the next year’s property tax as it was not possible to do so this year owing to the election code of conduct.
Tax dues
* 6.4 lakh registered properties.
* Rs 130 cr property tax collected from March.
* June 30 last date of 10 per cent rebate scheme