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Sunday, December 30, 2007

Land sharks on the prowl in Pune

Behind Pune's real estate explosion is a familiar network of corruption and rule-bending involving some of its biggest politicians and biggest builders.

The Ramnadi, equivalent of Mumbai's Mithi river, has been turned into a sewer. All around it posh but unauthorized apartments, corporate offices and a cluster of shanties have shrunk a river out of existence.

read more | digg story

Related Stories:
1. DC releases list of Ramnadi encroachments
2. Builders demand clarification ...(..!..?)
3. "Demolish encroachments" Anil Bhosale, Leader of the House
4. Encroachments at Ramnadi pulled down
5. "Pune can absorb up to $2-3 billion in Foreign Direct Investment annually" Lalit Kumar Jain, president, Promoters and Builders’ Association of Pune

Wednesday, December 26, 2007

In4Suite RE, an Enterprise Resource Management System (ERMS) for real estate industry

Real estate developers are under constant pressure to deliver projects on time. From escalation of costs to delay in completion, the problems to be tackled are endless.

However, developers can now breathe easy and complete projects much ahead of deadline, thanks to In4Suite® RE, a unique Enterprise Resource Management System (ERMS) application. Developed by Bangalore-based In4velocity Systems, India's leading real estate and property development software firm.

In4Suite® RE is said to the country's only integrated end-to-end solution for real estate and property development firms.

The company provides end-to-end process automation, management and benchmarking software for the real estate and property development industry.
Exclusive ERP application for real estate industry

Neelu Lekhi: "There are various ERP solutions for the construction industry (like SAP Quadra, Matrix, Sonata & Microsoft Sonnet CONSTRUCT). How is InSuite different from them? What advantages does it offer over the others?"

Rahul Chawla, CEO, In4Velocity Systems:Biggest advantage for us is that we are an ERMS. So, while traditional players are more reactive, we are more on the proactive side.

Which in terms of functionality we cover is far more than all these players. You don't want typically to buy a solution A than buy a solution B, then buy a C, so we are the portal to the complete view of their business processes.

If you look at the other products, if you look at SAP, for example, it may have a construction module but it has no land-banking module or support module.

Our forte is 100% focus on the construction vertical. We understand the problems that people in this section face and so misunderstandings are reduced.
CXOtoday.com; Interview; "Getting information in real time, anywhere"

Related Story: Going by the success of the computerization of the building proposal department of Pune, now, Mumbai will be implementing the same SoftTech software

Tuesday, December 25, 2007

QVC Realty, Bangalore, to launch 150 acre “second homes” project, with a nine-hole golf course and a resort, in Chikmangloor, in Karnataka

QVC will launch 4 new projects next year: QVC chief executive officer Prakash Gurbaxani said the projects would be in north Bangalore, Hyderabad, Chennai and either Pune, or Indore.

QVC has 2 townships in Gurgaon: QVC currently has 2 township projects of about 10 million sq. ft in Gurgaon. Gurbaxani said 1 million sq ft. area in the two townships would be developed for commercial use, while the remaining would be for residential complexes.

What 's this? No news about QVC Realty's funding or investing!

Yes, in 2007 QVC news , generally, was about raising or investing funds. Like this:

1) First venture-funded Indian real estate company, QVC Realty of Bangalore, plans to invest Rs 2,500 cr for two townships in Gurgaon

2) QVC Realty, Bangalore, India’s first venture capital funded real estate company is looking to raise around $100-$200 million from private equity firms

In 2008, to read about financial and investment news, please, visit my "Pune Real Estate Investment" blog. For example:

QVC Realty, India’s first venture capital-funded real estate company, plans to invest Rs594-792 crore in 2008 in new and existing projects

QVC, Sobha Developers and Chintel Group Joint Venture: 192 acre township in Gurgaon:

Here, on this blog, i will focus on the actual development of the real estate projects.

For us, Pune real estate market, this Gurgaon township is important for two reasons. First, Sobha Developers, construction contractors of Infosys, has already launched a project at Kondhawa, in Pune.

Second, marketing genius and PR expert, Prakash Gurbaxani, CEO of QVC, always includes 'Pune' in his long list of cities where QVC is going to launch its projects. Who knows, some day, QVC may launch project in Pune! So let us follow QVC and Sobha projects.

According to JC Sharma, MD of Sobha Developers:
This is a township development where we have formed a joint development agreement with QVC Realty, which has been supported by IL&FS and Chintel Group who are the land bankers.

It’s a tripartite agreement where we are going to develop 192 acres of township in Gurgaon where we will be the developer for the whole project and will have an economic interest of about 68%.

We hope to build about 6.5 million sq. feet over a period of five years. The LOI for the group housing has already been received and the required payments for the township have also been made. We feel that we can start our projects in Gurgaon next year.
According to Chintels India Ltd.:
OCTOBER 3, 2007: Chintels India Ltd. has signed an agreement with Sobha Developers and QVC Realty for the joint development of a 192-acre township in the prime sectors 106 and 109 in Gurgaon, Haryana.

The township would be the closest township in Gurgaon to Delhi, virtually a stone's throwing distance from Dwarka, and the new terminal of Indiara Gandhi International Airport.

The salient features of the project include an integrated township of world-class design and quality consisting of homes, apartments, commercial, retail and office space at a projected investment of over Rs 2,000 crore and a total development in excess of 6.5 million sq ft.

The township would be developed jointly by Sobha Developers, a leading real estate company with other township projects in Kochi and Thrissur (Kerala), QVC Realty which is based in Bangalore.

Mr. Prashant Solomon, Director of Chintels India Ltd,, the flagship company of the Chintels Group said, "We are glad to be associated with professional partners like Sobha Developers and QVC Realty. This township project will help us establish ourselves as a prominent player in the NCR real estate market.”
To make this blog more useful, please, keep on suggesting topics and improvements. You can write in comments or send a mail. Merry Christmas!

Related Story: "A robust economy and a bullish real estate sector have made consolidation the way forward," J.C. Sharma, M. D., Sobha Developers

Sunday, December 23, 2007

MLA Ramesh Bagwe promises to complete Kasewadi slum rehabilitation project within a year

On Saturday, 22 Dec 2007, Chief minister Vilasrao Deshmukh performed the 'ground-breaking' ceremony of the Pune's first slum rehabilitation project, to be implemented as per the Slum Rehabilitation Authority (SRA) rules, at Kasewadi.

The Kasewadi project was conceived after nearly 450 huts were destroyed in a fire in March 2005.

Kasewadi slums falls under MLA Ramesh Bagwe's Parvati constituency and Bagwe had pushed for the slum housing project.
100 acres allotted for slum rehab-Pune-Cities-The Times of India

Related Story: Pune, IT hub and a centre of education, is growing into a city of slums

Saturday, December 22, 2007

Big builders, beaten in Surat, in search of fast sales and bigger deals are coming to Pune!

This is the funniest news of 2007!

"Big builders are swiftly moving out of the city in search of greener pastures in other metro cities. On the lookout for fast sales and bigger deals, both of which are taking a beating in Surat, these builders are now moving to Mumbai, Pune and Ahmedabad."

"fast sales and bigger deals"(!)....where in Pune?

"How is booking in Pune?" I am sure, these Surat builders must have consulted some big builder in Pune.

"Booking?..My first phase was sold out in a day!" big builder of Pune must have answered. Without disclosing exact number of flats booked on that day.

Then Surat builders would have come to visit the site in Pune.

They would have asked big Pune builder , "Why are flats available in almost ready possession today?"

"Rate! I knew property rates were going to go up. So, i did not open the booking. Now, i am getting double rate" big Pune builder would have said this as if he is doing a great favor by disclosing his secret of success.

Thanking big Pune builder a thousand times, Surat builders would have gone back to Surat.

Thanks to the global real estate consultants, Hungry and Old, now, big Pune builder knows what to say about property rate and real estate boom in Pune Real Estate Market!

Thanks to the global real estate consultants, Hungry and Old, now, Surat builders also know what to say about property rate and real estate boom in Pune Real Estate Market!
Realtors seek fortune in new places - Sify.com

Thursday, December 20, 2007

Pune, IT hub and a centre of education, is growing into a city of slums

The Town and Country Planning Organisation (TCPO), the technical arm of the ministry of urban development, government of India, ranks Pune third in the cities with the largest number of slums in India.

Of the 244 sq km which come under the PMC limits, about 15 sq km, ie six per cent of the total land, is encroached upon by slums.

The state and central government spending crores on slum rehabilitation. More money will flow for slum rehabilitation under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Slum Rehabilitation Authority (SRA). Just last week the municipal standing committee approved tenders worth Rs 200 crore for the same purpose.

Pune growing into city of slums-Pune-Cities-The Times of India

Wednesday, December 19, 2007

The repeal of the Urban Land Ceiling Act in Maharashtra will benefit the real estate lobby and do nothing for affordable housing

The repeal of the Urban Land (Ceiling and Regulation) Act (ULCRA) by the Maharashtra legislature on November 29 was like serving a feast for ravenous hordes. The possibility of 17,000 acres (1 acre = 0.4 hectare) of land suddenly becoming available for development in Mumbai alone sent the stocks of some real estate companies soaring to as much as between 2 and 10 per cent.

When the 17,000 acres do go on the market it remains to be seen whether or not property development will be allowed on all this land or whether new development control rules, the Coastal Regulation Zone Act and other laws forbid it. Irrespective of the uncertainty, developers are expected to go all out to purchase the land by outbidding one another. To recover the costs, they are likely to build premium housing or commercial complexes on the land, thereby killing the argument that the repeal of ULCRA will open up land to house the poor and the middle classes.

The argument that oversupply will bring down prices is dismissed as a pipe dream. While this may be so in the immediate future, the sheer force of market demand will ensure a rise in land prices. Take the case of the mill lands in central Mumbai. The “oversupply” argument was used there to justify the release of the land for use for the middle classes. However, far from being an area where lower middle class workers lived, it now boasts luxury apartments.

read more | digg story

Related Story: At last, Maharashtra Legislative Assembly repeals the Urban Land Ceiling and Regulaton Act of 1976

Saturday, December 15, 2007

Future Group's HomeTown store opened in Pune at Ishanya, India’s largest Design Centre and Speciality Mall for Interiors and Exteriors

With Croma and @Home already open Ishanya (5,50,000 sq ft of retail and service spaces!) now presents three of the best names in home improvement.

Spread over 1,20,000 sq.ft, the HomeTown outlet at Ishanya is the first in Maharashtra and first in Pune. Yes, at an investment of Rs20 crore each, Pune will have another two HomeTowns by around June 2008.

According to Mr. Mahesh Shah, CEO, HomeTown, the store is divided into three sections —exhibitions, markets and services. HomeTown will provide end-to-end solutions to consumers - all that goes into building a house and everything to make it a ‘Home’:

1. Live displays such as living room, dining room, bedroom.
2. kids’ furniture
3. kitchen fittings
4. bathroom fittings
5. furniture
6. furnishings
7. consumer durables
8. electronics
9. counters by Future Money
10. hostel segment: students can buy packages such as bed and mattress starting from Rs. 5,000
11. the company is planning to offer custom made furniture

Private Lables: According to the company, almost half its sales revenues accrue from private labels retailed by HomeTown across various segments.

Company Lables: The company has two labels each in electronics and lighting segments, one in fittings segments, and is reportedly planning to launch its own brand of furnishings in about a month.

Sales: The company expects a 50:50 ratio of institutional and individual business contributing to its sales.

HomeTown in Towns:

1. Ishanya, Pune is 5th store.
2. First HomeTown was opened in Noida, in April.
3. HomeTown is present in Hyderabad, Bangalore and Ahmedabad.
4. By June 2008, HomeTown will be in Gurgaon, Lucknow, Thane and Kolkata.
5. 12 more HomeTowns are planned in cities including Ludhiana and Kochi in 2009.
6. 5 HomeTowns in Mumbai, Nasik and Nagpur in Maharashtra.
7. Home Solutions Retail (India) Ltd, a part of the Kishore Biyani’s Future Group, has set a target of 40 HomeTown stores by 2010; it expects sales of Rs 7,500 core by then.

Pune Real Estate Market:

According to Mr Shah, HomeTown has bagged Rs 300-crore order from the Bangalore-based Prestige Group of Builders for the supply of modular kitchen and bathrooms. HomeTown is in talks with builders in Pune for a similar agreement.

About Eshanya - India Design Centre and Speciality Mall:

MoneycontrolIndia has published good write up sourced from - Adfactors Public Relations Pvt Ltd. As a proud Punekar, i am happy to present it:
The name Ishanya means north-east in Sanskrit, the most auspicious direction according to the ancient Indian science of Vaastu-Shastra. And Ishanya is located very conveniently in the North East of Pune.

Ishanya now brings to Pune access to a truly unique retail and design destination dedicated to anyone who wants anything in interior and exterior products, design, or services, to congregate, exchange ideas, browse or buy.

“There is nothing quite like Ishanya anywhere in India, and indeed perhaps the world. It will be a pan-India Design Centre and Speciality Mall dedicated to offering all its customers – whether shoppers for the home or office or professionals in the design industry or builder /developers or service providers a unique combination of ideas, expertise and solutions. It will be a must-visit destination for everyone interested in good design whether is consumer or its business aspects. Its unique partnerships with the IIID and CCPS, and indeed other bodies, will make Ishanya a thought-leader – a destination for retail and inspiration,” said Mr. I. S. Narula, CEO & President, Ishanya.

Ishanya is a single sourcing point for 52 categories of products and services, materials and knowledge, drawn from across the best in India and across the globe. Tenant fit outs have commenced and the remainder of Ishanya’s over 100 outlets offering more than 5000 brands, all dedicated to interiors and exteriors will open their doors in phases. Its range offers very wide choices right from the truly price competitive to the ultra-designer league. By night Ishanya will convert into the cultural hub of Pune and form the backdrop for performing arts, music and multi-media shows or even a venue for corporate events.

Ishanya, will be truly unique in that it will also offer art galleries, specialized centres for design, training and research, seminars and exhibitions, features that will truly make it a design destination like never before. Moreover, it is the only Design Centre endorsed by the Indian Institute of Interior Designers (IIID) and Confederation of Construction Products and Services (CCPS).

The IIID will have its chapter office at Ishanya, with a Knowledge and Research Centre the that it will run. Ishanya and IIID will work together to create opportunities for learning whether you are a professional in the business of interiors and exteriors or whether you a simply a consumer looking for knowledge and help.

The Ishanya-CCPS Training and Development Centre will train engineers, supervisory staff, craftsmen, consumers and laymen on the correct selection, usage and application of various products and materials in interiors and exteriors. The centre will also hold seminars, conventions, workshops and training sessions to raise quality and design of indigenous products and services to world standards. Ishanya’s CCPS tie-up enables us to provide our customers a huge database for product suppliers and service providers including CCPS trained craftsmen.

Mr. I. S. Narula, CEO & President, Ishanya said, “Over and above the extensive range of products, what makes Ishanya truly unique is its service aspects. We have a Mock-up & Simulation Centre which will be the place to see what your home or office can look like even before it leaves the drawing board. Our Knowledge Centre will offer information and inspiration at your fingertips. Best of all we will offer Design Solutions with Architects, Interior Decorators and Landscapers at hand to advise and inspire. Ishanya’s proposition is truly the most comprehensive that one can get in the space design field.”

Thursday, December 6, 2007

Middle-class Prefab Homes

In Tomoyuki Sakaguchi’s night photos of suburban Tokyo, familiar landscapes of densely arranged middle-class prefab homes, tightly parked cars, small gardens and anonymous street corners are somehow rendered strangely unfamiliar under the artificial glow of street lights.

read more | digg story

Saturday, December 1, 2007

At last, Maharashtra Legislative Assembly repeals the Urban Land Ceiling and Regulaton Act of 1976

On 29 November 2007, Maharashtra assembly passed the resolution to repeal the Urban Land Ceiling and Regulation Act, popularly known as ULC/ULCA/ULCRA. As per the news submitted by PTI on livemint dot com:

Chief Minister Vilasrao Deshmukh moved the resolution which was passed by a voice vote amidst slogan shouting by Shiv Sena members in the House. It was passed after a two-day discussion in a special sitting of the Lower House during the third Assembly session.
While the members of BJP remained silent during the reply, those from treasury benches welcomed the resolution.

Look Shekhar Gupta, this Government repealed the ULCRA!

True, Maharashtra Government took a long time. The Government of India had repealed the law in 1999. But, you know very well, anything that involves land takes much longer time. Shekhar Gupta used to think that Maharashtra Government will never repeal the law! In the Indian Express, Shekhar has said:
"Now you know why our politicians will not reform our property laws, modernise the land records, cut stamp duties and do other simple things to bring the real estate business out of the grip of the black economy. Now you know why even a pro-reform Congress-NCP government in Maharashtra would not abolish the urban land ceiling law, which most other major states have done. It won’t, because politicians are desperate to hang on to the few discretionary powers that remain. They have exploited these powers to build massive personal fortunes — in cash and, of course, in properties."
Who is afraid of Urban Land Ceiling and Regulation Act ?

Thanks! Jawaharlal Nehru Urban Renewal Mission!!

Don't worry, our beloved politicians haven't changed a bit. They have to repeal the ULCRA only because the Government of India had blocked release of funds under the Jawaharlal Nehru Urban Renewal Mission to the state till ULCRA was repealed by Maharashtra Government.