Boom time for real estate in Jharkhand

By: Karshni on 03:49

Land rates in Jharkhand continue to soar and the land registration department is overflowing with revenue.

In 2008-09, the government received Rs 171 crore in revenue. In 2010-11, the department earned revenue beyond its wildest dreams and crossed the 100 per cent target. Realtors say demand has been rising steadily. Many educational institutions and big brands are coming up here, so it's boom time for realtors, who are selling land at a premium.

Towering flats are peeping from every corner in the capital offering all modern facilities. Top-end customers are even going for one-flat-on-one-floor mode. In Kanke Road, a flat was recently sold for Rs 1 crore. On an average, flats are fetching between Rs 60 to 70 lakhs.

Secretary, registration department, N M Kerketa, said, "Revenue from land and flats has been going up steadily in the past few years."

In 2011-12, the department received Rs 418 crore and achieved 92 per cent of its target. In 2010-11, the department received Rs 314 crore and achieved 104 per cent of its target. In 2009-10, the department received Rs 213 crore and achieved 71 per cent of its target.

Managing director Abhay Kumar Singh of Van Vrindavan Constructions, said, "Choices of customers have undergone a sea-change in recent years. Earlier, customers used to pay little attention to the quality of construction. They were more concerned about prices. Now they pay little attention to prices and are more concerned about amenities."

"Six years ago when we thought of constructing an apartment we did not think of including swimming pools and playgrounds. Now it is difficult to find takers without swimming pools, gardens, gyms," said a builder.

Jaideep Singh, general manager of Kashish Developers, said, "Like Delhi, Noida and Mumbai, the concept of gated communities is gaining popularity. We have got overwhelming response for a gated community which we are building in Ranchi."

Better connectivity -- Ranchi has got a Ring Road which connects the state capital from outside -- has encouraged people to shift to the outskirts. Various builders have purchased lands near Booty More, Khunti Road, Ormanjhi, Kanke (rural) and other places.

"The largest chunk of our revenue comes from Ranchi, Jamshedpur, Bokaro and Dhanbad," said a registration department official.

http://timesofindia.indiatimes.com/city/ranchi/Boom-time-for-real-estate-in-Jharkhand/articleshow/17028840.cms

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Jones Lang LaSalle to launch new real estate fund soon

By: Karshni on 05:49

Property consultancy firm Jones Lang La-Salle (JLL) India has set up a new entityJLL Segregated Funds Group to raise funds to invest in the Indian real estate market, and its first fund worth . 300 crore will be launched soon in the domestic market.

Capital market regulator Securities & Exchange Board of India ( Sebi) has approved the proposed fund, which will be a close-ended one with a six-year tenure. 

"It is the first one among a series of funds that we are planning to launch in the next few months. The proposed fund will focus on city-centric residential projects with shorter cycles and high-equity returns," said Mridul Upreti, CEO, JLL Segregated Fund Group. 

Though the fund will be looking at investments based on opportunities, the focus will be on residential projects in tier-I cities. It will be aiming to fetch internal rate of return of 20-25%, and the average investment size is likely to be around . 25-30 crore. 

The property consultant is in the process of appointing distributors and other intermediaries for the fund-raising exercise. JLL, a global real estate property consultancy firm, offers services like leasing, buying office space or investing in the Indian real estate space. Globally, LaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle, manages $46.7 billion (as of Q2 2012) of private and public property equity investments, which invests only in real estate. 

There are over half a dozen realty-focused funds like ICICI Prudential AMC - a joint venture between ICICI Bank and Prudential Plc of UK - JP Morgan Asset Management, Reliance Portfolio Management Services, ASK Property Investment Advisor, IDFC and IL&FS that are in the market to raise fresh or follow-up funds to deploy in the real estate sector. 

However, raising capital from limited partners has become much trickier, with private equity funds now being forced to show their deal pipeline in order to raise funds. 

Private equity investment in the real estate sector has slowed down in the first half of 2012. There have been 29 real estate investments estimated at $1.04 billion (Rs 5,500 crore) this year, a 72% drop in cumulative deal value from 2011, which saw 87 deals worth $3.9 billion, according to research firm Venture Intelligence. 

Bigger residential property markets such as the Mumbai metropolitan region and the National Capital Region fell by 60% to 15.98 m sq ft and 57% to 28.86 m sq ft respectively in the first quarter of FY2013, while the demand for commercial properties across India's seven largest cities fell by 21% in the first half of 2012, compared to a year ago.

http://economictimes.indiatimes.com/markets/real-estate/news/jones-lang-lasalle-to-launch-new-real-estate-fund-soon/articleshow/17013072.cms

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Real estate looks at double-digit cheer

By: Karshni on 04:34

The real estate market in Pune has been stable for the last couple of months and is expected to grow by 12-15 per cent during Dussehra and Diwali, according to industry experts. 

Private property developers and real estate body Confederation of Real Estate Developers Association of India (CREDAI) are of the view that the market will only improve in the coming days and report double digit growth. 

As per industry figures, the average sale of 8,000 units per month in Pune will see a 12-15 per cent growth. Developers are not only hinging on the positive traction in overall investor climate in the country but also on the urge among people to buy during the festival. 

Managing Director of real estate company Gera Developments Rohit Gera said there has been a positive traction in the real estate industry prior to the festival which will only grow in the coming months. He said there was “an amazing response” to the new luxury residential project of the company, Gera Trinity, with some 85 bookings in the 250-flat complex over the past 5-6 days. “There is not only a positive market sentiment but also a demand, particularly for luxury. Ours is luxury property and people certainly have a preference for a better brand,” he said. 

“Gera Trinity is under construction and we will restrict bookings to 100 apartments, which will happen in the next few days. We will start the booking again, once the project is completed,” he said. Director General of CREDAI, Pune-Metro, Dr D K Abhyankar said the market has been stable in the last couple of months and will only improve. 

“The market is stable particularly because of the slew of measures like reduction in interest home loan rates. It will only improve during the festival season. The market improvement is expected to continue for the next six months,” he said. 

Anuj Bhandari, Director of B U Bhandari Landmarks said that the past month had seen a slew of projects being launched. “More than eight projects were launched in the last one month and there will certainly be a growth in the market between Dussehra and Diwali. We are banking on the inclination of people to invest during the festive season.”

http://www.indianexpress.com/news/real-estate-looks-at-doubledigit-cheer/1021343/0

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Real estate body Credai urges Eco Ministry to speed up clearances

By: Karshni on 10:36

The Confederation of Real Estate Developers Association of India has urged the Government to do away with “antiquated laws” in the interest of urban development and housing. 

The developers’ apex body Credai strongly advocated a pragmatic and practical approach by all government departments, particularly the Environmental Ministry, to address the chronic housing shortage. 

Environment clearance issues have led to “avoidable delays of up to two years” according to the Confederation’s National President Lalit Kumar Jain. In a press release he said: “An efficient mechanism with comprehensive check list to ensure full compliance can be worked out.” Developers fail to understand the intervention of the Environment Department in projects being implemented according to prior approved master plans of cities, which anyway take environmental approvals, he said. 

For instance, why should the department worry about the sewer lines and building heights and location of fire stations, which are part of the civic plans? He asked. 

Credai is concerned about environment protection, evident in its campaigns for green buildings and sustainable development. 

Jain said the Environment Department could prepare a comprehensive check list without compromising on quality aspects of environment. 

Then, the plan-approving authority could be delegated powers to comply with the check list. Jain said the housing industry can accelerate the growth of economy. It is high time the Government at the Centre takes a overall view and initiates reforms in the sector covering Administrative, Land, Banking and Taxation. Fiscal benefits to affordable housing scheme will go a long way. 

RISING DEMAND 

Quoting a McKinsey report, the release said the, demand for affordable housing will reach 38 million units by 2030 compared with 24.71 million units in 2007 and 26.53 million in 2011. Over 700 million and 900 million square metres of residential and commercial space respectively a year are needed and that is at the rate of two Mumbai-equivalent cities each year.

http://www.thehindubusinessline.com/news/real-estate/real-estate-body-credai-urges-eco-ministry-to-speed-up-clearances/article4034231.ece

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Real estate empire and its Vadragate

By: Karshni on 05:54

“A meeting in Gurgaon one afternoon with a young man driving an all-terrain vehicle had much to do with this. His vehicle had stalled.... I happened to be nearby and arranged for water to cool the radiator. He asked me what I was doing out in the wilderness and heard with great interest about my plans and how archaic laws and policies were stifling real estate development. Not long after, he became the prime minister of the country and was instrumental in ushering the private sector back into urban development. These reforms would revolutionise the real estate sector and also allow DLF to expand at a scorching pace....” This excerpt, from DLF Chairman K P Singh’s autobiography, Against All Odds, refers to former prime minister Rajiv Gandhi as being key to India’s real estate’s transformation, as well as DLF’s ‘scorching’ expansion, especially in Gurgaon, which lies next to Delhi. Ironically, many decades later, the Gandhi family has once again become associated with the developer, but, this time, instead of tales of uber-expansion and wealth creation, embarrassing questions about favours and unorthodox dealings lurk. Thanks to political instigator Arvind Kejriwal, Robert Vadra — married to Rajiv Gandhi’s daughter, Priyanka — finds himself squarely in the crosshairs of the media for allegedly getting unseemly concessions from both the Haryana government, as well as DLF, in connection with land deals in Gurgaon and Manesar.   AS IT STANDS: DLF’S BUSINESS LANDSCAPE IN A NUTSHELL 349 mn sq ft Total land bank (as of Dec 2011) Rs 22,680 croreToal debt as on Jun 30,’12 Rs 10,000 croreDivestment target in medium term Recent launch: March 2012 - DLF Regal Garden, Primus (New Gurgaon) Non-core assets on the block: Aman Hotel, wind/utilities, strategic projects in Mumbai & Chennai, miscellaneous assets Expected realisable value from non-core asset sale: Rs 7,500 crore  (including the recent Mumbai NTC mill sale) RECENT SALES Sep ‘11: 28-acre land in Gurgaon to M3M for Rs 440 crore Dec ‘11: Offloaded stake in Galaxy Mercantile to its JV partner, IDFC, for Rs 450 crore Dec ’11: DLF and JV partner Hubtown sold an IT SEZ in Pune to private equity firm Blackstone for Rs 810 crore Jun ‘12: Entire stake in Adone Hotels and Hospitality Limited (‘Adone’) for Rs 567 crore to Kolkata-based Avani Projects and Square Four Housing & Infrastructure Aug ‘12: Sold Mumbai NTC mill land to the Lodhas for Rs 2,700 crore Source: DLF, industry Auditor’s take The main allegations made against Vadra and DLF revolve around an interest-free loan of Rs 65 crore made to Vadra’s company, as well as sweetheart apartment deals involving the company and Vadra in Gurgaon. The company denied it had given any unsecured loans to Vadra or his companies, claiming that the Rs 65 crore was given as a business advance for the purchase of two pieces of land from Vadra’s Sky Light Hospitality. DLF did not grant Business Standard an interview in order to answer the various questions regarding this controversy. The company has, however, denied allegations made by India Against Corruption’s Kejriwal point-by-point. Yet, any of the auditors and chartered accountants that Business Standard spoke to — none of whom wanted to come on record — did not buy DLF’s clarification that it had given a ‘business advance’ to Vadra, and that there was no quid pro quo between the two. A senior partner at a leading audit firm points out that accounting rules do not permit companies to give interest-free loans even to their subsidiaries, let alone others. Even as DLF claimed that a business advance, and not an unsecured loan, was given to Vadra’s company, it did not give any detail about the business for which the advance was paid, the partner said. Another chartered accountant argued that if an advance amount was refunded without the business maturing, there would always be a doubt about the nature of the transaction. He was referring to the Faridabad land deal, in which DLF found legal infirmities at a later stage and Vadra’s company Sky Light Hospitality refunded the Rs 15-crore ‘advance’. That said, business advances are not unusual. “Companies do give advances to suppliers or customers in the hope of a return without a contractual agreement,” according to an auditor. However, DLF has always maintained that its relationship with Vadra or his companies was transparent and at an arm’s length. “Our business relationship has been conducted to the highest standards of ethics and transparency, as has been our business practice all around,” says DLF. The impact of Vadragate Despite DLF’s denials, analysts and industry insiders indicate that the builder is bound to suffer at least short-term pangs because of the Vadra saga. “The core, or its normal business, will get impacted in the short term, maybe in the form of a delay in Magnolia Phase II launch or the Aman hotel deal getting deferred further,” says a stock market analyst. The fact that it’s been seven months since DLF launched any big project is adding to the gloom. India’s largest realty player had said in its first quarter analyst call that Phase II of Magnolia, a big-ticket DLF project for luxury homes in Gurgaon, would be launched anytime in the third quarter of 2012-13, probably in October. Industry watchers are keenly awaiting both DLF’s second-quarter numbers, expected in early November, and management replies to analysts’ queries soon after. Also, while the Mumbai land deal, part of its non-core asset sale, was inked recently, the other two — Aman hotel and wind energy business — have been languishing. Add to that the current land deal controversies, and the result is less than appealing. On BSE, DLF stocks have declined nearly 15 per cent, from Rs 241 to Rs 205, ever since the Kejriwal allegations surfaced earlier this month. “Now, I see support at Rs 190 per share for DLF,” says an analyst. “It will take another one year for DLF to get its functions back to normal,” says Samarjit Singh, managing director of IndiaHomes, on the impact of the Vadra saga on DLF. He adds that a lot of land holdings of the company will come into question now. That might delay its big project plans by about a year. But, not many are as forthright as Singh. The India head of an international real estate consulting firm argues there’s nothing new about the real estate-political nexus. While the stock price is sentiment-driven, it may not reflect the fundamentals about the company accurately, he says. “I doubt whether the allegations will have any material impact on DLF,” he points out, adding that people, however, might not transact on projects that are under scrutiny. Other hurdles Even as the current controversy could delay the second phase of Magnolia to some extent, Sanjay Sharma, managing director of property portal Qubrex, says DLF might also not be able to launch it as planned because of the ‘cease and desist’ order issued by the Competition Commission of India. This would prevent the realtor from using the same terms and conditions in the buyer-builder agreement, which were found to be biased towards DLF. Found to be allegedly abusing its dominance in the Gurgaon market, it was levied a penalty of Rs 630 crore. The matter is in the Competition Appellate Tribunal. While DLF’s debt, as on June 30, stood at Rs 22,680 crore, it hopes to reduce it by the fourth quarter. In the second quarter, it sold the NTC Mill land in Mumbai to the Lodha group for Rs 2,727 crore. “As the Lodha payment will come in the third quarter, we can see some debt reduction only in the fourth quarter,” an analyst said. American writer Tom Wolfe’s 1998 novel, set in Atlanta, A Man In Full, about real estate tycoon Charlie Croker’s rise and fall, captures the power and frailty of the world of developers. Wolfe writes, “Charlie was a one-man band. That was what a real-estate developer was, a one-man band! You had to sell the world on… yourself! Before they would lend you all that money, they had to believe in…you!” K P Singh’s empire, though saddled with mounting debt, may be able to get over the current turmoil triggered by an activist’s ‘expose’, but, the alleged revelations on how politics and real estate are intertwined, often for mutual benefits, will be hard to erase. http://www.business-standard.com/taketwo/news/willreal-estate-empire-sufferits-vadragate/490607/

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3 reasons why young investors should invest in real estate

By: Karshni on 10:40

One of the most frequent advices that can be given to the youth when it comes to investment is starting young. And just because, the advice is so frequent, most of us tend to forget that it is actually the BEST advice anyone can be given. 

Why is starting young so important? The answer is hardly rocket science. By the sheer luxury of time that youth has on hand in terms of the period of investment, the risk appetite is multiplied several times which in turn leads to investments that by design are high risk, high returns. At a simpler level, starting young means you have a lot scope for distributing your investments over a long period of time, ultimately leading to a substantial increase in the net amount invested. At a still simpler level, starting young means your money has that more time to grow and hence, higher returns. 

While this common wisdom has had many young investors coming into the market, investing largely in equities and debt instruments , real estate continues to be an area out of the purview of the obvious choice of the investors. Going by the volatile nature of the economy these days however, real estate has rapidly emerged as a mode of investment that should ideally be on the top of the investment priority list, especially for the young investors. We give you a lowdown on the reasons why real estate should be preferred by the youth. 

The Anti-Inflation Investment - Real estate investments are an almost guaranteed way to get around inflation. Real estate is growing market, more so because of the rapidly shrinking supply of land. You only have to go house hunting in a city like Mumbai to know the extent of land shortage in the country. A shortage supply logically means a growth in market and so long as this shortage persists, the market shall not slow down. The core point here is a careful market research before investing into the real estate. You can hardly expect your money to grow exponentially if you chose to invest your money in a landed property in remote UP. It shall still grow but not as much as it would in a more favorable location like Mumbai or Delhi-NCR. There are other considerations too, which need to be taken into account. For instance, in cities like Pune and Gurgaon, which thrive on floating population, investing in residential properties that can be leased out at a later stage is a good strategy. 

These examples are illustrative. The moot point here is that investment in real estate can be an excellent strategy for the young investors to get past inflation. The essential corollary is proper market research and careful consideration before investment. Read up, ask around and ask plenty of questions. If you there is any doubt about importance of market research, read all that can go wrong with your real estate investment 6 Things Your Builder Can't Do But Still Does. 

Affordable Option - Yes, you read it right. Contrary to the popular perception, investing in real estate is actually one of the more affordable options with banks funding up to 80% of the cost. The young investors also get income tax benefits. A slightly more complex benefit is derived from the fact that young investors are expected to pay fixed installments over years which in effect amounts to purchasing an asset at a lower cost, whose value is bound to appreciate while the investor's own income too keeps rising. For those young investors looking to discipline their investments, servicing regular EMIs is an excellent method. Of course, real estate is a volatile asset but from a reasonable perspective, it is still a safer bet than stock markets, especially when trade pundits across board have been reiterating the fact that the probability of appreciation in case of real estate investments is very high. 

Tangible Assets - This is not exactly an objective benefit but may hold significant importance in several cases. Unlike old times when owning house marked a definite landmark in one's life, young investors can now enjoy the benefits of a tangible asset pretty early on in their lives. If the property is a residential one meant for personal purposes, the obvious benefits are manifold. In several cases, the investors' end up paying an EMI which is only slightly more or almost equal to the rent they would be paying otherwise, with an added benefit of actually residing in their 'own' place. 

As we had stated earlier, real estate is a volatile option, even if relatively less so. And hence, the prudent way ahead is to make real estate one of the modes of investment in your portfolio and not the only one. An ideal portfolio has a balanced distribution between various options and irrespective of the benefits or the risk factors, concentration of wealth in any mode is problematic. The ideal way ahead is to start off with SIPs (systematic investment plans) and gradually proceed to real estate, as and when you reasonably acquire enough spare wealth to distribute between various investment options. The key is to be prudent with your money and invest as soon as you possibly can. And while investing in real estate, always remember, an aware investment is the only safe investment and a thorough market research is a must.

http://www.moneycontrol.com/news/real-estate/3-reasonsyoung-investors-should-investreal-estate_773315.html

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Risk of going overboard on real estate

By: Karshni on 04:11

Property investment has seen a big spurt in recent years in India. After the initial euphoria cooled off a bit with the crisis in 2008, interest in properties as an investment picked up again in 2010-11 and continues. Property has given fabulous returns in the last decade or so and in many geography prices have gone up by anything from 3-4 times to 10 times.

In today’s environment when other asset classes like equities, debt, gold etc all have their own set of problems and there is significant risk associated with many of them, property has once again emerged as the preferred investment option. It’s not uncommon to find investor portfolios carrying 70-80 per cent weight in real estate.

There has been low investor interest in equities as it has not given good returns over the last two years. For people looking for safe investments, debt is a good option but returns are almost negligible, net of inflation. Gold has lost some shine due to very uncharacteristic volatility seen over last few years.

Hence, there is a natural attraction towards properties. It seems to give high returns while being very safe. But is it really as safe as it seems to be? Is it a good time toinvest in properties?

Many people are not asking these questions today, which to my mind is quite relevant and must be asked. Historically, any asset class that sees a huge rise goes through a phase of correction and real estate is no exception. Sub-prime crisis has seen meltdown of real estate prices at its core. Similarly, be it the 1997 Asian crisis or the more recent problem with Bankia in Spain, bursting of real estate bubble has been the prime driver in many financial contagions in the past.

But isn’t India different? With a huge unmet demand for housing and growing urbanisation and affordability, why should property prices go down for another 10 years? Its not an easy question to answer. Let’s look at some recent trends. Property prices have gone to dizzying levels in Mumbai and have stagnated for about a year now. Overall, the number of transactions has remained slack and seems investors are sitting on the fence waiting for the prices to correct. In places like Gurgaon, almost 40 per cent of ready apartments are lying unoccupied as they have been bought by investors who don’t want to go through the hassle of renting them out. Affordability in Delhi, Bangalore and Gurgaon is certainly becoming as issue for most of the people who live in these cities.

Between Q1 FY10 and Q3 FY12, FDI in real estate declined by 92 per cent and its share in total FDI shrunk from 6.83 to 1.94 per cent.

On the other hand, falling rupee has made property more affordable for NRIs. It’s quite logical to expect heightened interest amongst NRIs to invest more in properties now.

The answer for an investor probably lies in the time tested process of diversification of risk and proper asset allocation. Going by the examples of property prices collapse in numerous countries globally in the recent past, it will not be prudent to assume there is no inherent risk in properties. Like any other asset class, real estate also comes with its set of risks.

Best way of managing this risk is by ensuring you don’t go overboard by putting all your eggs in one basket by investing only in real estate. To ensure this, it’s critical to avoid significant leverage in your real estate investments. If prices were to come down by 10-20 per cent, you should not go bankrupt or get severely stressed. By keeping these points in mind, one can gain from the potential upside in property prices which still seems very much there and at the same time manage risk by diversifying adequately.

—Author is CEO, Fullerton Securities & Wealth Advisors

http://www.indianexpress.com/news/risk-of-going-overboard-on-real-estate/1020144/0

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Property buyers beware

By: Karshni on 21:55

Following the Reserve Bank's 25 basis point cash rate cut earlier this month, there's a definite spring in the step of real estate practitioners.

It's been two years of hard slog for most of them, as they sought to win business and sell property into a declining market with few interested buyers. And their renewed optimism may be justified.

Property prices are down around 10 per cent across capital cities from the March 2010 peak but are now stabilising and perhaps showing some initial, tentative growth in recent weeks. Rents remain firm and the cash rate has come down 150 basis points since November last year.

Consequently the gap between the percentage return from property investment - the rental yield - versus the funding cost - interest rates - is narrowing. If this trend continues there will be a point at which a critical mass of investors and prospective homebuyers recognise the opportunity and demand picks up.

That tipping point may be close. It's increasingly clear that the Reserve Bank is signalling another rate cut before year's end. Last week's deteriorating employment numbers have probably settled the case for a 25 basis point cut on Melbourne Cup day and possibly another 25 basis point cut in December.

While these developments are good news for the property market, buyers must be on their guard. There are many very hungry industry participants out there desperate to make up for barren times. In particular, developers will be marketing hard to unload off-the-plan stock in fringe suburbs and CBD high-rise apartment sectors that have failed to sell - mostly because they're too far-flung, are overpriced, or both.

Those selling these questionable assets will be banking on lulling a new cohort of investors and homebuyers who are unaware of the poor proposition they face.

They'll also hope the optimism of a rising market will see people suspend their scepticism.

Unfortunately, the buyers' cause is not helped by an upsurge in reports that send the wrong message about where and what to invest in.

Take the report released in late August by RP Data that listed the suburbs where paying off a mortgage was cheaper than renting.

The conclusion to draw should have been to avoid investing in these places. The locations were cheap and the rents high because there was no long-term buyer demand.

We all need to be wily, especially when information in media, seminars and blogs supports vested interests.

Today's property investment landscape is about putting the pieces of the jigsaw together just right.

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India invites Swiss companies to invest in infrastructure sector

By: Karshni on 22:54

New Delhi: India has invited Swiss companies to participate in the development of its infrastructure sector that is projected to see investments of around $1 trillion over the next five years. 

The development of the roads sector alone is expected to attract investments worth $ 70 billion in India. 

"We intend to take up mega projects of longer length and take the opportunity to seek increased participation of Swiss contractors in our endeavour to have a world-class infrastructure," Road Minister C P Joshi said after his last week's meeting with a Swiss delegation here. 

"Our National Highway building programme envisages investment of about US dollars 70 billion over the next five years," Joshi said. 

He said India is looking for modern technology and technical expertise in construction, operations and development of highways. 

Joshi said the government is working towards putting in place a comprehensive action plan to address all aspects like - Road Traffic Safety through provision of safety infrastructure, foot over-bridges, under-passes, signals and signage, IT based Safety Solutions and so on. 

Collaborations are welcome in these areas, he added. Swiss consultancy company, Renardet SA, is working as Supervision Consultant in joint venture with Indian Consultants for 12 road packages. Of these, 7 road packages have been completed and rest are under implementation. 

India has a road network of about 47 lakh km, of which about 76,000 km is National Highways.

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IT Park calls for better infrastructuredemands better infra facilities, infrastructure

By: Karshni on 21:25

PUNE: Chief minister Prithviraj Chavan's visit to Rajiv Gandhi Infotech Park at Hinjewadi on Tuesday once again highlighted a series of infrastructure problems faced by the IT hub envisioned to attract investments.

Notwithstanding Chavan's assurance to rope in international consultants to develop infrastructure, IT experts say the government should have initiated this step earlier, as the locality is suffering due to lack of basic infrastructure such as bigger roads, cleanliness, scientific and speedy disposal of garbage and overall security.

The Rajiv Gandhi Infotech Park is one of the leading IT product and service offering hub which is spread over 649.82 hectares generating annual export slightly more than Rs 2,000 crore. The revenue growth of the IT park is also continuously escalating making its position stronger in the country's IT map. It is one of the biggest employment and revenue generating location in the country and has attracted talent from almost all parts of the country to Pune city.

Despite these shining facts, the dark side of the park has become more and more prominent in recent times.

Compared to the fast track development of the IT Park, the infrastructure development is at a snail's pace.

According to IT professionals, two years ago, the condition of the road leading to IT park deteriorated to such an extent that they lodged an online petition against the negligence. It prompted the local member of parliament, Supriya Sule, to immediately conduct meetings with the Hinjewadi Industries Association along with Maharashtra Industrial Development Corporation, Pimpri Chinchwad Municipal Corporation and Pune Municipal Corporation - the major stake holders -- and getting them to provide infrastructure to the IT park

A senior HIA official, who declined to be named, said, "The IT companies are paying taxes to the local government, buying houses in the city and consuming various services and products, still people from other sectors treat us as if we are a nuisance and

aliens because most of us work for foreign companies. It is a prejudice cultivated by various stake holders and we want it to be ended at the earliest.

Demanding better infrastructure, smooth supply of water and electricity, clean roads, and security is not a crime."

The HIA has donated plastic barricades to police officials for effective traffic management and for a long time it was used effectively. There should not be any skepticism about the IT park and its employees, said the official.

Amol Thorat, an employee working with an IT company, said, "I commute to IT park daily from Chandani chowk and face the bottleneck near Shivaji chowk. In the last two years, no authority thought of a solution to it. I really wonder why should I pay tax if I am not getting basic infrastructure."EoM/PART IPART IIMIDC promises speedy developmentNikhil Deshmukh Pune: MIDC officials are buoyed with CM Prithviraj Chavan's visit to the Rajiv Gandhi IT Park as it will help them clear the pending projects.

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Rajasthan keen on infrastructure development

By: Karshni on 03:44

Rajasthan Chief Minister Ashok Gehlot today said the state government is taking initiatives to develop infrastructure in the state.

Addressing a function in Rajsamand district, Gehlot said the government was spending Rs 750 crore on construction of state highways and has recently approved Rs 200 crore for road repairing works.

The chief minister was speaking at the foundation-laying ceremony of (four) lane conversion of national highway-8 from Gomti intersection in Rajsamand to Udaipur.

Union road transport and highways minister C P Joshi was also present at the function.

The chief minister said the government had taken several initiatives and schemes for the upliftment of the poor and underprivileged and for the welfare of 'aam admi', according to an official.

Joshi said the government was developing road network in the country in Public Private Partnership mode.

He said 2,000 km of 10,000 km long new national highways would pass through Rajasthan

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Delhi, Mumbai moving towards prosperity: UN

By: Karshni on 05:09

Delhi, Mumbai moving towards prosperity: UN

New Delhi: Mumbai and New Delhi figure among 95 world cities identified by the United Nations as those moving towards prosperity, but the two Indian metropolis are just "half-way" to achieving it with the reasons being poor infrastructure and environment conditions among others.

'State of the World's Cities' report by the UN Habitat analyses the prosperity of the cities on various counts like productivity, quality of life, infrastructure, environment and equity and on all these five categories, the Indian cities are rated just above Dhaka, Kathmandu and Kampala.

The report, released here today, places Mumbai at the 52nd position and New Delhi at 58th among the world cities, though two Chinese cities -- Shanghai and Beijing -- figure much above.

"Two Indian cities come under the Group 4 and they are in the medium level (of prosperity). Prosperity is not just the economic prosperity, but the kind of infrastructure and the quality of life in the city. Both the cities have been penalised for poor environment conditions, especially New Delhi," Edvardo Lopez Moreno, Chief Researcher of the report, told a press conference here.

The UN diplomat said the two Indian cities are "half-way to prosperity" and stressed "political and technical" interference to relatively improve conditions in both cities.

However, the report also praises the IT revolution that Bangalore has been able to achieve and calls Hyderabad as the pharmaceutical capital of India. 

Austrian capital Vienna tops the list of 95 cities, followed by New York, Toronto, London and Stockholm. While Mumbai has been given an overall rating of 0.694, Delhi received 0.635 followed closely by Dhaka (0.633) and Kathmandu (0.598).

Population growth in North American cities was the slowest of all those in the developed world between 2005 and 2010, particularly in the United States (one percent on average).

"Asian cities have strongly invested in infrastructure development in the last few decades, achieving nearly universal provision of water, electricity and mobile telephone services," it said.

The report also mentions India's Golden Quadrilateral motorway to connect the country’s largest cities Kolkata, Delhi, Mumbai and Chennai.

"In emerging economies like Argentina, Brazil, China, India, Indonesia and the Russian Federation, fact cities must realise that equity has a significant impact on economic performance, since the greater the degree of equity, the greater the chances of a fuller, more efficient use of available resources, including skills and creative talent," the report said.

The lowest levels of infrastructure provision are to be found in urban Africa (average water and sanitation coverage is 89 and 69 percent respectively; electricity: 69 percent; paved roads: 28 percent; fixed telephone lines: 4 percent; mobile telephones 57 percent and and Internet connectivity: and 10 percent).

On ICTs in Asian cities, it said Delhi, Mumbai, Kolkata and Chennai feature mobile telephone connection rates of 138 percent, 112 percent, 102 percent and 143 percent respectively. 

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Authorities developing infrastructure in Ladakh to give boost to tourism

By: Karshni on 21:17

Authorities developing infrastructure in Ladakh to give boost to tourism

Kargil (Jammu and Kashmir), Oct.14 (ANI): The Department of Tourism in the stateof Jammu and Kashmir is taking steps to improve infrastructure to give a boost to tourism in Ladakh's Kargil District.

The authorities recently inaugurated a bungalow and a cafeteria, which provides good food and lodging facilities.

Muhammad Aslam, a resident, hailed the initiative of the state government and hoped for more such developments in near future so that unemployed youth of the region may benefit.

"This would benefit people of Kargil. The tourist bungalow in Trespone will attract many tourists and foreigners. It will provide employment and be good for the economy. We want such bungalows to be constructed so that the unemployed get employment," said Aslam.

The tourism department has also said that it will be promoting water sports in the area like river rafting.

Mountaineering and trekking will also be an attraction for the visitors.

Director of Tourism (Kashmir) Talat Parvez said the facilities would cater to the needs of tourists.

The state government has taken a few steps to provide accommodation in the government sector, and in this connection, only the Suru Valley has facilities for tourists. I believe tourists would like to stay in this accommodation and the restaurant will also cater to their food and other needs," said Parvez.

It is said that 60 percent of Kashmiris bank on tourism for a livelihood.

Kashmir was once a top Asian tourism destination, popular among honeymooners, skiers, trekkers and anglers, and attracting about a million tourists a year until 1989, when a simmering anger against New Delhi's rule burst into a violent rebellion. And the numbers of visitors shrunk to only a few thousand a year.

Tourism returned in force to Kashmir in 2005 as violence fell after India and Pakistan began a peace process. Some 600,000 people visited the scenic region, most of them Indians.

But numbers dropped again since 2008 after massive anti-India protests broke out in the region.

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Robert Vadra led companies bought 41 DLF flats and sold most of them at a profit...

By: Karshni on 04:38

Robert Vadra led companies bought 41 DLF flats and sold most of them at a profit....

NEW DELHI: Robert Vadra, the son-in-law of Congress Party president Sonia Gandhi, had bought as many as 41 premium apartments from DLFBSE -0.75 % but subsequently sold most of them at a profit. All the apartments were acquired by companies promoted by him, including Sky Light Hospitality- which had dealings with DLF- by paying a minimum booking amount, with the exception of a luxury pad in the picturesque Aralias, for which he paid the entire sum of Rs 11.9 crore upfront.

Vadra, whose dealings with India's biggest real estate firm has come under the lens in the past ten days, booked apartments in three premium projects: Aralias and Magnolias in Gurgaon and Capital Greens in Moti Nagar in Delhi. He used a part of the Rs 58-crore advance paid by DLF (for purchasing a 3.5-acre plot from him in Gurgaon) for booking these flats.

Most of these apartments were bought for the purpose of trading as Vadra sold around 38 of these 41 apartments subsequently, said a DLF executive. A DLF spokesman confirmed Vadra had bought these apartments in the three projects. He also said that the client had later paid around Rs 7 crore as delayed payment charges.

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Global to local: The growing up of Real Estate funds in India

By: Karshni on 11:56

The dream began in 2005, when construction and development of real estate was opened up to foreign investors. Nearly 130 global firms rushed in to invest in the India growth story. Liberalisation triggered the advent of furious fund-raising activity as fund managers neatly packaged and sold the Indian real estate story many times over. 

“It was a rat race, hedge funds, global funds, domestic were all chasing hot money from abroad and investing it in projects that were yet to take off or in land by valuing it at three to five time’s more than its current valuation,” V Hari Krishna, Director at Kotak Investment Advisors, told Firstpost. 

Today not more than 15 of the global funds are standing, while the remaining have shut shop by selling their equity to domestic PE funds or through share buybacks to the developer, that too at losses. “The global funds entered at a high point but exited at a lowpoint with zero or low returns. PEs could either choose to salvage their capital and exit or stay married to the project and wait for the tide to turn in due course,” says Anirudh Wahal, director at property consulting firm DTZ. 

In short, they stopped believing. 

India-focused private equity funds raised around $50 billion, primarily during 2005 and 2007, of which $15 billion alone was through real estate funds. Four years later, the firms have not even raised a sixth of that amount as investors, globally, are wary of the India shining story.PE deals have dipped 15 percent this quarter. Data provided by Venture Intelligence reveals that in 2011 there were 87 real estate investment deals while in 2012, it stands at merely 37. 

In one of the largest deals in 2012, MSREI invested $90 million in a Mumbai project of Sheth Developers. In another large dea, Xander Group invested about $40 million in a Chennai software park. But such deals have been few as capital is scarce and fund managers are cautious. And why shouldn’t they be? 

Amid the euphoric mood and high competition, private equity funds paid high prices when making investments without a proper track record in place. When Indian stocks were soaring, the funds didn’t sell their investments because they thought they would make more money down the road – which didn’t happen. 

“Too much capital in risky and speculative assets, plus lack of appropriate data and proper regulation resulted in many hedge funds and global funds shutting shop,” says Kotak’s Hari. He argues that mispricing, missallocation and misalignment were the three biggest reasons why realty-focussed PE funds failed to deliver returns. 

Most of the investments were made in either speculative commercial realty projects without any pre-leasing or in extended townships in the middle of nowhere on the hope that prices will continue to rise. This resulted in an oversupply of office space with no demand. “Managers were relentless. They exploited that additional capital in theme-based projects like hotels, 100-acre subruban townships, SEZs, warehousing, retailing and residential projects in Tier II and III cities where demand was subdued and gestaion period was longer,” says Sunil Rohokale, CEO, ASK Investment Holdings, a real estate focused PE fund. 

Today, however, Tier II and III cities are completely off the radar. 

Secondly, the biggest change in strategy has been the move to project-based funding rather than funds buying stake in unlisted developers only to cash out when these firms hit the markets. Attempts by Raheja Universal and Lodha Developers to go public were upset by poor stock market response, making PE funds unsure of exit opportunities. Founders of companies, who are eager to accept private equity funding, either decide that they don’t want to go public, or that they want to reinvest their money and delay the private equity investor’s exit,” Hari explained to Firstpost. 

Today, the biggest lesson that private equity fund managers have learnt is to tread cautiously and only invest in residential projects in city centres built by reputable mid-sized developers in top metros where key approvals are already in place. This is because as an asset class, the residential sector promises better return on investment. Residential projects will always be in demand, whether it is investors or genuine buyers. The same does not hold true for commercial realty, as evident from the 30-40 percent fall in retail rentals from peaks in 2008. “Against the drop in lease rentals have property prices fallen in Mumbai, Delhi or Bangalore? asks Rohokale. 

Also, real estate is local, and so is investment. Pan-India expansion plans of developers like DLF, Unitech and Indiabull Real Estate were undermined by highly leveraged balance sheets, high borrowing costs and slower execution. “We would rather pump in money into regional developers rather than getting an established player like DLF or Godrej to develop a property in Ahmedabad, where he has no expertise,” says Rahokale of Ask Properties. 

Ask Properties has invested Rs 100 crore in a housing project of Shriram Properties at Bangalore and is looking to invest more funds in NCR and Mumbai markets. “The key to success is investing in core residential areas within city and suburban limits and partnering with prudently managed developers. In Mumbai Vashi and Thane are profitable, but Dombivili is not,” says Rahokale. He, however, cautioned that unlike in the past no fund manager would bet on property without ensuring that the investment is protected through a principal and return. 

As a strategy, Kotak Realty Fund only invests in the top five metros where there is a lot of liquidity, demand, infrastructure growth or population growth because as seen in the past investments in Chennai, Kolkata and Hyderabad have turned sour due to the peripheral locations which were not habitable. “Mumbai and Delhi are the star performers because in five years time even peripherals become crowded due to the population explosion in these cities,” says Hari. 

While fund managers call this strategic planning, realty experts say this is nothing but buying into a developers balance sheet by investing in a project midway at a cheaper rate to maxmise returns. “The strategies are the same, the only difference is the fools have shut shop and disappeared while the smart ones cash in on the right time and price,” said Wahal.

  http://www.firstpost.com/investing/global-to-local-the-growing-up-of-real-estate-funds-in-india-487638.html

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Pune, Bangalore lead real estate sector

By: Karshni on 11:18

Bangalore: Pune and Bangalore have beaten the gloom and doom in the real estate sector with robust launches, clever project formats, quicker approvals and consistent demand from home buyers. 

An October report by SBI Capital Securities Ltd indicates Pune and Bangalore saw a slew of launches and sales in two completely different price categories. 

Pune saw huge demand for small homes at low prices, primarily on the outskirts, where a chunk of fresh projects are coming up. The city, two hours from Mumbai by road, saw a steady pace of launches of around 3 million sq. ft a month. 

Bangalore is seeing greater demand for larger properties at higher prices. 

Property analysts reasoned that while projects at affordable prices played a major role in boosting sales in Pune, Bangalore saw huge demand for high-end properties such as villas or luxury apartments due to a strong buyer base of information technology professionals and senior corporate executives. 

In the past year or so, home sales in India have been lukewarm owing to the slowing economy. Developers struggled also because of a scarcity of funds with lenders becoming wary of the sector. 

Overcoming this lacklustre period, at least a dozen projects with small-size apartments were launched in Pune in recent months, and sales have been upbeat, data by SBI Capital show. 

Gera Developments Pvt. Ltd’s Park View 1 project in Kharadi, about 15km from Pune, is one such example, which has 680 sq. ft apartments. 

There is a lot of demand for small homes and the project has seen good sales momentum since its launch, said Kumar Gera, chairman, Gera Developments. 

Absorption of new homes outpaced new launches in Pune, keeping inventory at steady levels, analystAkshit Shah wrote in the SBI Capital report. 

Bangalore developers saw good sales in the July-September quarter, when their counterparts in Mumbai and the national capital region, or NCR, struggled. 

Sobha Developers Ltd, a large realty firm in the city, posted a record quarterly performance. In the September quarter, it sold 950,000 sq. ft of space for Rs.520 crore, a revenue growth of 10% quarter-on-quarter and 8.6% year-on-year, brokerage Prabhudas Lilladher Pvt. Ltd said in a report this month. 

A slew of luxury projects were launched in Bangalore in recent months, the latest being a villa project byGodrej Properties Ltd last week. 

Pirojsha Godrej, managing director and chief executive, said there was a good demand in Bangalore for such projects and that home buyers in the city can afford to buy in the Rs.2-3 crore range, though Rs.8-10 crore homes would occupy a smaller market. 

Chennai, after seeing a number of new launches for a few months, seems to have paused though average prices in the city have increased from Rs.57 lakh in January to Rs.65 lakh (by July), SBI Capital said in its report. Mumbai, which includes large micro-markets such as Thane, Navi Mumbai and the Mumbai Metropolitan Region, is witnessing a decline in the pace of new projects every month. NCR has seen steady launches but at a slower pace than Pune or Bangalore. 

“Mumbai has seen a stagnation in supply of new projects for two years now and prices have remained intact. Its neighbouring Pune, even after seeing a 5-15% increase in prices this year, has many projects in the Rs.15-50 lakh category, which is fast moving,” said Lalit Kumar Jain, national president, Confederation of Real Estate Developers Association of India. 

NCR will see a mixed bag, with strength persisting in markets such as Gurgaon and New Delhi, while other markets with high speculative participation are likely to see substantial oversupply as both investors and developers offer their products for sale, Macquarie Capital Securities (India) Pvt. Ltd said in a report this month. 

In terms of project completion and delivery of homes, Chennai, Pune and Bangalore will see high levels of handing over of apartments to buyers, said SBI’s Shah. 

In Mumbai, though, only 63% of the existing inventory is expected to get completed by 2014, he said in the report.http://www.livemint.com/Money/RNdzmX43M9yw7Vs5rJ7tzK/Pune-Bangalore-lead-real-estate-sector.html

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Green home certification: The requirements and benefits

By: Karshni on 05:28

The concept of green homes - meaning environmentally sustainable residential spaces - is still an emerging trend in India, but awareness about this exciting new way of life is rapidly gaining ground.

Buildings account for almost 40% of the country's overall energy consumption, and more than 60% of all buildings being developed in India are residential projects. It certainly requires a leap of intelligence to understand where we are headed at this rate, but the Indian market response for green residential buildings is increasing with every passing year.

Not surprisingly, Pune - the Oxford of the East - has become one of the leaders of this new movement. Thanks to the city's high intellectual acceptance quotient, it is fast emerging as Maharashtra's primary 'green living' city. This is a proud fact for Pune, since accepting green homes as a way of life is not something that is geared to come naturally to Indian home buyers One reason for this is lack of a clearer understanding of green homes; another is the fact that such homes are perceived to be a lot more expensive.

The fact is that green homes - both in terms of their construction and their use - are one of the clearest and most available means to reducing environmentally harmful waste, tackling water and energy insufficiency, reducing the consumption of fossil fuels by lowered commuting and improving health.

As a matter of fact, building sustainable residential projects is the only real way forward for ushering Indian real estate into a new Era of Sustainability. More and more Indian developers are now looking for official green certification of their projects via the IGBC (Indian Green Building Council) Green Homes Rating System.

What is IGBC certification and how is it obtained?

This unique rating programme for Indian residential sector has been developed in accordance with well-defined principles of environmental preservation and increased energy efficiency.

Contrary to common belief, IGBC certification is not a Draconian system which is next to impossible to obtain. However, it does demand a highly disciplined development approach that is aimed towards delivering environmentally sustainable projects.

To get IGBC certification, a developer of a multi-storey residential project needs to meet certain mandatory requirements and obtain a certain amount of 'green' credits. Projects can qualify for precertification once the developers in question have incorporated IGBC requirements in the project’s design and submitted the relevant documents to IGBC.

The final IGBC certification is awarded once the project is complete. The process is fairly simple and straightforward, but it is also very thorough. When a developer registers his project under the IGBC Green Homes Rating System, he is making a commitment to ensure that the project will conform to all IGBC requirements.

At every step of project completion, he is required to submit all supporting documents. In fact, IGBC stipulates that documentation must be submitted both at the design stage and at every phase of construction.

Basically, the documentation that needs to be made available to IGBC for pre-certification of a residential project must include information on how and to what degree the developer intends to adhere to the prescribed certification norms.

According to the degree of compliance, IGBC awards a rating. This rating may differ from the rating given at the stage of completion, since the developer needs to offer clear proof that the rating norm he initially committed to have indeed been followed. Once a developer applies for pre-certification with IGBC, the agency will review the project's conformance to the certification requirements every six months.

Is it worth it? 

We certainly think so, and we are not alone. It is true that there is a premium of around 5% attached to certified green homes which buyers are required to pay. However, this premium is not proving to be a big deterrent to Pune's new and highly informed home buyers. The extra cost is recovered by the end user in as little as three years. In fact, there are immediate, sustained and very tangible benefits in terms of the savings generated by reduced water and energy consumption, lower medical costs due to significantly healthier living environment and an overall improved life experience for the whole family.

One also needs to factor in the added appreciation value - ten years from now, green homes will have the highest resale value on the residential property market. Those who invest in green homes today are going to see the value of their investments multiplied by a factor which normal projects will not be able to match.

http://www.moneycontrol.com/news/real-estate/green-home-certification-the-requirementsbenefits_766207.html

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DLF Denies Allegations of Real-Estate Scam; Shares Down

By: Karshni on 05:14

Indian real-estate major DLF Ltd. has denied allegations that it gave interest-free loans and sold land and apartments at throwaway prices to the son-in-law of Congress party chief Sonia Gandhi.

Two anti-corruption activists Friday alleged that DLF got favors in return for its deals with Robert Vadra in provinces where the Congress is in power. The party also heads the federal government.

"We would like to state that the business relationship of DLF with Mr. Vadra or his companies has been in his capacity as an individual entrepreneur, on a completely transparent and at an arm's length basis and to the highest standards of ethics and transparency," DLF said in a statement filed with the Bombay Stock Exchange.

On Sunday, Mr. Vadra dismissed the allegations as "utterly false, entirely baseless and defamatory," the Press Trust of India reported.

According to the report, Mr. Vadra said his business transactions were fully reflected in the financial statements filed before government authorities.

The Congress also denied allegations that it has given favors to DLF in provinces where the party is in power.

At 0743 GMT, DLF shares were trading 6.3% down at 226.50 on the Bombay Stock Exchange, compared with a 0.8% decline in the benchmark index.

Read more: http://www.foxbusiness.com/news/2012/10/08/dlf-denies-allegations-real-estate-scam-shares-down/#ixzz28i1pdLNA

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Real estate developers lean on technology to cut construction costs

By: Karshni on 11:06

Builders across the country are increasingly turning to technology to offset the sharp rise in the cost of construction amid a slowdown in sales.

Some real estate developers are investing in plants to manufacture pre-fabricated walls and ceilings while others are bringing in methods that not only double the pace of construction but also reduce the requirement of precious steel. The innovations follow the sharp slide in margins of developers over the past few quarters.

Developers are finding various ways to reduce cost, says Sanjay Dutt, executive managing director, south Asia at property advisory firm Cushman & Wakefield. The cost of inputs such as cement and steel has risen by 35-40 per cent over the past two years and labour rates have more than doubled.

"Margins are down by 50 per cent for us because of higher commodity prices and slower home sales," says RK Arora, managing director of Noida-based builder Supertech, which has invested Rs 200 crore to set up a plant in neighbouring Greater Noida to produce standardised pre-fabricated walls and slabs.

"Pre-fabrication is done in a controlled environment, so quality and finishing are better," says Harleen Oberoi, executive director, project and construction management at construction services firm AECOM, "It also reduces the need for labour considerably." Pre-fabrication allows developers to save 15-20 per cent of construction cost and as much as 40 per cent of time.

"If we can manage to finish on time, we will be able to maintain our margins," says Shaishav Dharia, head of strategy at the Mumbai-based Lodha group. The company is focusing on setting up a more reliable supply chain that would minimise delays. In its township project in the Mumbai suburb of Dombivali, the company has started using lightweight blocks, which are 15-20 per cent lighter and reduce the use of steel and cement by 10-20 per cent. "This is a straight 2-4 per cent addition to our margins," says Dharia.

Lightweight blocks require 5 kg steel per sq ft compared with 6 kg in the case of regular bricks. This translates to a saving of about Rs 50 per sq ft coupled with the reduction in labour costs. Moreover, the supply of regular bricks is not reliable, especially in Maharashtra. Labour costs account for 35-40 per cent of a project today, as daily wages for an unskilled labourer have gone up to Rs 200 from about Rs 100 two years ago and Rs 500 for a skilled labourer, up from Rs 250.

Lodha and Supertech are building high-rises in Mumbai and Noida, respectively, where conventional building techniques would result in time and cost overruns.

To speed up construction, the two builders have invested in new shuttering technology that helps them complete a slab in a building in seven-eight days, compared with almost a month required in the conventional method.

Shuttering is the mould used to set concrete in a building and this new variety is lighter and can be moved automatically from one floor to another, requiring 70 per cent less labour.

"The cost of procuring the technology might be high initially, but it pays back by way of huge savings," says Arora.Bangalore-based Puravankara Projects is using foam-based concrete for making its internal walls, which brings in efficiency and requires less labour to be done, says the company's chief operating officer, Jack Bastian Nazareth. "Value engineering at the beginning of a project increases the speed of construction," says Nazareth.

http://articles.economictimes.indiatimes.com/2012-10-05/news/34279537_1_labour-costs-harleen-oberoi-lodha-group

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