The revised Kerala Municipal Building Rules, brought about by the Local Self-Government Department, as in earlier versions, hold that smaller roads can have only fewer people living on either side, though the restrictions have been relaxed to some extent.

The access width has been reduced on all categories and the space of the buildings, whether small, medium or industrial, will also be a determining factor.

The road width also determines the number of dwellings on a plot. A 5-metre-wide road now allows a built-up floor area of 4,000-8,000 square metres and 31 to 60 dwellings and a 3.6-metre-road, 1,000-4,000 sq.m with nine to 30 dwellings.

For 1,000-4,000-sq.m buildings with a 5-metre road, only three storeys will be allowed. To build four storeys, the road should be at least 6 metres wide and the built-up area 4,000-8,000 sq.m.Many in the construction sector does not view these rules as progressive.

The new set of changes in the Kerala Municipal Building Amendment Rules, 2010 is nothing but an agenda to retard development of the State in housing and construction, says Lalichan Zacharias, chairman, Kerala chapter, Indian Institute of Architects. The main issue regarding the changes brought about in 2009 had been with regard to the required road width for access to buildings, whether residential or commercial.

The latest amendments have done nothing much but contradict the earlier rules, Mr. Zacharias says. The required width of the access road for any high-rise building is said to be 7 metres if residential and 8 metres if commercial. And a high-rise building has been defined as one with more than four floors ground plus three.

In formulating this rule, the extent of land has been ignored, he says. Hence, on a plot of five-10 acres or 25 cents with an access road of 5 metres, the built-up area should be less than 8,000 sq.m. The aim of such a rule can be nothing but anti-development, he says. Road width along with plot size had been considered for fixing the Floor Area Ratio FAR earlier, while the new amendment does not consider FAR or plot size.

As much of the developable land is in suburban and rural areas, where it is difficult to come across a road with width over 5 metres, the government agenda on development is rather clear, he says. Only roads under the Public Works Department have a width of about 7 metres or above and these are very few. Only those who have acquired land on the sides of roads with widths above 7 metres will be able to build high rise buildings, he says. The size of the plot does not play a role. It is the built-up area that matters.

Hence, a private school that has an access road of 5 metres width cannot build any extra classroom or even toilets. However, government schools will be able to do so with special sanction, he says.

The government could always reduce FAR for a smaller plot, but now such considerations are overruled, says Mathen Chakola, member of the Confederation of Real Estate Developers of India.

Parking

The latest amendments have only brought clarity to the requirement of parking space and lifts in a building. Decentralisation of power has taken a hit as the Chief Town Planner office will become more involved in providing various sanctions, which can be done at the district level, Mr. Chakola says.

While enquiries for properties are said to have been much better since the beginning of the year when compared to the scenario that prevailed last year, the scene has been more heartening for couple of months, happens to be the feeling of the industry. “More enquiries have started to get converted into actual sales and this is a good sign for us,” points out a builder.

Topping the feeling has been the recent response to the Hyderabad Metropolitan Development Authority HMDA auctions which after a couple of years managed to strike a chord with prospective buyers.

Against an initial hope of being able to rise around Rs.40 crores, the Authority appears set to earn around Rs.67 crores by the time all the successful bidders made their payments.

Since auctions by bodies such as HMDA and Housing Board usually end up offering a perspective for prevailing mood and setting tone for the pricing, the recent auction is being seen as offering a positive outlook for matters of real estate.

The auction result is seen as successful by the industry which has pinned its hopes on fast revival of the sector from now on.

Price correction

The corrections in terms of pricing indeed seem to be falling in place when compared to the boom period. The plots which then were sold like hotcakes for even Rs.18,000 per sq.yards in some locations got buyers for a price tag of around Rs.10,000 and little more.

While those in the industry feel that the prices could take a small further dip and no more, the buyers who adopted a wait-and-watch approach all these days seems to be veering to the idea of these being realistic costs as of now.

The successful bid prices during auctions by government most of the times act as a baseline at a given location. “Though minor fluctuations could be there but most try to quote a price that is close to the auction prices,” informs a developer.

That being the scenario for open plots, the same is expected to move on to the unsold stocks of apartments that have got accumulated in last one year.

Have the much awaited glad tidings finally arrived for the real estate in the city and suburbs? The mid-2010 seems to be ushering in some reassuring signs for the construction industry with hopes getting rekindled on the fate of hordes of project that remained wedged in dilemma in the aftermath of loss of interest in property.

While enquiries for properties are said to have been much better since the beginning of the year when compared to the scenario that prevailed last year, the scene has been more heartening for couple of months, happens to be the feeling of the industry. “More enquiries have started to get converted into actual sales and this is a good sign for us,” points out a builder.

Topping the feeling has been the recent response to the Hyderabad Metropolitan Development Authority HMDA auctions which after a couple of years managed to strike a chord with prospective buyers.

Against an initial hope of being able to rise around Rs.40 crores, the Authority appears set to earn around Rs.67 crores by the time all the successful bidders made their payments.

Since auctions by bodies such as HMDA and Housing Board usually end up offering a perspective for prevailing mood and setting tone for the pricing, the recent auction is being seen as offering a positive outlook for matters of real estate.

The auction result is seen as successful by the industry which has pinned its hopes on fast revival of the sector from now on.

Price correction

The corrections in terms of pricing indeed seem to be falling in place when compared to the boom period. The plots which then were sold like hotcakes for even Rs.18,000 per sq.yards in some locations got buyers for a price tag of around Rs.10,000 and little more.

While those in the industry feel that the prices could take a small further dip and no more, the buyers who adopted a wait-and-watch approach all these days seems to be veering to the idea of these being realistic costs as of now.

The successful bid prices during auctions by government most of the times act as a baseline at a given location. “Though minor fluctuations could be there but most try to quote a price that is close to the auction prices,” informs a developer.

That being the scenario for open plots, the same is expected to move on to the unsold stocks of apartments that have got accumulated in last one year.

The luxurious project, which will comprise 2, 3 and 4 bedroom apartments with size ranging between 1,263 sq ft and 2,340 sq ft, will be spread across an area of 12.75 acres.

With quick access to electronic city, outer ring road and Whitefield, this project will cater to the home needs of people who are working in these belts and also in areas like Koramangala and Bannerghatta road.

Jackbastian Nazareth, COO, Puravankara Projects, said, “Purva Sky wood is sure to impress discerning lifestyle lovers with an eye for elegance and open space. The apartments, the amenities, the facilities, all bear the stamp of Puravankara.

Purva Sky wood has luxury not only in terms of finish level as well as ambience, but also in its thematic concept. This project is conceptualized on a nature scape theme, giving ample natural surroundings to the end users.

Ashish Puravankara, director, Puravankara Projects, said, Before deciding upon apartments, buyers can take a look at some of the standard Puravankara features that are already considered luxury elsewhere; a range of features like green verges, lots of open space with designer landscaping, larger than standard windows, quality materials used for construction, rainwater harvesting and other such features that make the collective look translate into luxury.

The group began operations in Mumbai and has established a considerable presence in the real estate industry in the metropolitan cities of Bangalore, Kochi, Chennai, Coimbatore, Hyderabad and Mysore, and overseas in Dubai and Colombo.

According to the company, it has the distinction of being the first to obtain FDI in Indian real estate industry through its joint venture with the Singapore based Keppel Land, the property arm of the 54 per cent government-owned conglome rate, Keppel Corp oration.

The joint venture company, Keppel Puravankara Development Private, has ongoing housing projects in two cities in India. One is in Bangalore, Elita Promenade, and the other one is Elita Garden Vista in Kolkata.

Vivara Residences of the Acron Group, a Goa-based chain of exclusive housing complex for the elderly population, promises to offer a perfect blend of the two live long with all wishes fulfilled.

John Britto, director Acron Group said, Vivara Residences will start its journey with its project for the senior citizens in north Goa and eventually spread its wings across all major cities in the country, mostly on the outskirts. Next in line will be Coorg, Kerala, Pondicherry, Shirdi, Rishikesh and Vrindavan.

The first set of Vivara homes will be launched in October. Unlike many retirement projects launched earlier, Vivara promises a world-class living experience, for which we have teamed up with international retirement associations. We will give the elderly people a house that offers top-notch facilities, an atmosphere of fun and revelry, Britto said.

He said that they had taken care to ensure people who come to live here can enjoy a carefree life. We ve gone a step further and incorporated this philosophy even into the buying process. Vivara operates on a leasehold model and not freehold, something that has always been a hurdle for senior citizens.

So you pay only a deposit and a lease you re comfortable with, we take care of the rest. It has therefore considerably reduced the stress of buying and selling property at this stage of one life, he said.

In most of the retirement home projects, houses are sold on an ownership basis and the developer is neither involved in day-to-day operations nor concerned with the future of the residents in the complex.

Another disadvantage in such freehold projects is that in subsequent, open market sales, the homes could be purchased by buyers who do not match the age and lifestyle profile of existing residents. Vivara tries to address these problem areas.

Amar, director of the Acron Group said, we are going to position them not as retirement homes but as unretirement homes. And unretirement is pure unadulterated pleasure that one can get in life, when you know that everything has been taken care of from security to maintenance to emergency healthcare. That the kind of life we re promising at Vivara Residences.

Besides, senior citizens will also be given the opportunity of choosing from a range of attractive pricing plans including some that allow one to earn profits on one lease deposit. The best part is that in all options, residents get their entire deposit back when they terminate their lease.

On offer at Vivara Residences will be fully furnished, ready to move in homes, in a lively resort setting and designed to high standards along with eco-friendly features, physical amenities and senior friendly services.

Vasathi Navya is a 200-apartment project spread over 3 acres. The ground plus five floors residential project is coming up near Chintal in Balanagar. Possession will be given in 18 to 30 months. The project will offer 2 BHK apartments of sizes between 900 and 1,100 sq ft. The starting price will be about Rs 18 lakh excluding stamp duty and registration. Vasathi Navya will have amenities such as power back up, supermarket, gymnasium, shuttle court, table tennis room, library and reading room besides offering space for a pharmacy.

Vasathi Housing has earmarked an investment of Rs 30 crore for the Navya project. This will be funded through internal accruals, debt and equity besides pre-sales proceeds. Similarly, Vasathi Anandi will see an investment of about Rs 75 crore.

The ground plus seven-floor project covering 5 acres will have 450 apartments. Vasathi Anandi is coming up in Bandlaguda. The project comprises 1-2-3 BHK apartments ranging from 800 to 1,350 sq ft priced upwards of Rs 21 lakh.

Vasathi Anandi will house a school, a restaurant, supermarket, club house with gymnasium, table tennis room, jogging track and swimming pool besides a shuttle court.

P V Ravindra Kumar, chief executive officer of Vasathi Housing and Infrastructure said, With aim of becoming a pan-India affordable housing player, we intend to deliver 15,000 housing units in select major urban cities by 2014.

Vasathi plans to launch its third project in Visakhapatnam by yearend, and thereafter expand into select markets in the neighboring states.

The employees have been demanding immediate government intervention to revive the board. They have been calling for a quick and lasting solution to the problems into which the board has stumbled over the years, which they say is largely because of its inability to raise working capital and thereby launch new projects.

A spokesman of one of the employees unions told The Hindu that the current travails of the board could be traced quickly to the refusal of the State government to stand guarantee for it to raise loans for new projects.

He said the board had been unable to raise money through loans since 2001. The government’s inability to act decisively and the neglect of the board in successive State budgets had played big roles in the sending the board to such a state.

The union leader recalled that the most glaring example of government neglect was the failure to act on the Composite Action Programme, submitted in 2006, for the revival of the board. The plan was submitted by an action council of employees unions, envisaging the building of a new future for the board based on its expertise and its assets.

Though some hopes were raised in the State Budget for 2008-09 which provided a Rs.255-crore loan and proposed a comprehensive revival plan of Rs.2,060 crore, nothing much has come of the promise.

The employees unions have, in the meanwhile, have rejected the recommendations of the Working Group on Restructuring of the Board. The working group suggested, among several things, that the board concentrate on consultancy, contract and deposit works. The report has created a sense of anxiety among the employees, said a spokesman of the Kerala State Housing Board Employees Association.

The employees have demanded now that besides standing guarantee for loans, the government should pay what is due to the board under various heads. These payments include Rs.136 crore under the Maithri housing scheme subsidy; Rs. 14 crore in rent arrears; and Rs.14 crore owed by the Department of Welfare of Scheduled and Backward Communities.

Another demand raised by the employees is that the board liability with the Housing and Urban Development Corporation be met through a one-time settlement.

If poor infrastructure and lack of development held back real estate prices on the western front of the Hooghly for the last couple of years, the upcoming real estate projects are changing the industrial landscape in the Howrah-Hooghly belt, pushing up property prices.

Less commuting time, excellent connectivity and real estate ventures by large branded players like the Unitech, Universal Success, Forum Projects, Peerless, Merlin Group, Keventer Projects and the Salim-Ciputra group indicate that the area seems to be tantalisingly poised on the threshold of the next wave of realty action.

It may be mentioned that land prices had skyrocketed on Kona Expressway and stretches of National Highway-2 and National Highway-6 with projects like the DLF township in Dankuni, Kolkata West International City and the logistic hub on Kona Expressway coming up. Several brokers purchased land in the area hoping for the price to shoot up further.

“Though there has been an impact on the price of land in that belt after the Tatas decided to leave Singur, real estate prices do not change overnight. Had the Tatas decided to build their plant in Singur itself, land prices would have shot up. After they left, real estate prices still moved northwards but the pace was slow. It is only recently that the real estate price picked up momentum,” says a senior real estate consultant on conditions of anonymity.

What should, however, be kept in mind is that the real estate market in this part of the city has not developed as fast as it has in Kolkata. Most of the developments, which have come up in and around this area and offer some 10-200 flats per project, have been done by small and mid sized local players.

Lemongrass Advisors joint managing director Abhijit Das said, “Howrah is densely populated — more in terms of numbers — than the Kolkata Municipal Corporation areas of Kolkata. It is inhabited primarily by low and middle income Bengali and non-Bengali business families barring some clusters within the area which are occupied by high income business families. Since the inhabitants are into unorganised and semi organised businesses, the buying power of the catchment area is weak compared to that of proper Kolkata. Skilled professionals from these areas usually travel to Kolkata for their jobs.”

Some of the city’s leading realtors second this emotion. “People staying in the suburbs of Kolkata do not relocate to Howrah, till such time they are offered something different or unique than what Kolkata has on offer and that too, at an attractive price. Besides, it is easy to woo Howrah consumers to projects being developed in proper Kolkata but not so easy vice versa,” they say.

Among the various projects, Kolkata West International City is probably one of the first large scale organised developments in the Howrah district and Merlin Uttara at Konnagar, one of the first organised branded realty projects in Uttarpara. Developed by Merlin Group, Merlin Uttara was conceptualised to meet the growing demand for urban living standards in Kolkata’s fringes, especially on the other side of the Ganges.

It’s a gold mine out there, and everybody wants to rake in the moolah. EM Bypass has seen a spurt in land prices since the mid-’80s. And the nature of land, too, has changed over the years to enable the agencies concerned to maximize their earnings from these plots. Less than a decade ago, KMDA and KMC entered into joint venture partnerships with private developers to offer housing projects off EM Bypass based on the public-private-partnership model.

With the city witnessing a real estate boom in the next few years and land prices soaring, the agencies gave priority to the more lucrative commercial ventures over housing projects. KMC and KMDA made a killing by auctioning plots along the Bypass until the global economic meltdown slowed things down in 2008. KMDA earned over Rs. 640 crore by selling land off EM Bypass and Salt Lake, while KMC made more than Rs. 500 crore. What’s more, both the agencies have some more land left to mop up another Rs 1,000 crore.

While KMDA has plans to set up a business park at Nonadanga on around 100 acres, KMC, too, has some land left to sell. However, in view of the ongoing EM Bypass land controversy, the plans seem to have been put on the back burner. Much of the land originally belonged to the state refugee, relief and rehabilitation department. KMDA and KMC acquired the plots from the department through requisition a long time ago. Several acres were acquired for development purposes, but the authorities later utilized them for commercial ventures as the real estate sector witnessed high growth.

According to KMDA’s land use records, the agency sold nearly 2,000 acres it had on EM Bypass, Salt Lake, Baishnabghata-Patuli, Garia, Sonarpur and other places in the Kolkata Metropolitan Area over the last couple of decades.

While it was in the last decade that KMDA and KMC decided to use the Bypass land for commercial purposes, the idea was conceived in the ’90s. KMC had planned to hand over an 8-acre plot on a 33-year lease to a private developer at Rs. 15.73 crore per acre. Though the plot was given to a hotel group in 1995 at Rs. 10.86 crore per acre, the market value was hovering at Rs. 22 crore per acre. So, the civic authorities decided to take the land back to reap the benefits of the higher price.

In 2005, KMDA struck gold by selling a 6.2-acre plot along EM Bypass for a whopping Rs. 209 crore to real estate major Emaar-MGF for a five-star hotel project. Then, in 2007, KMC sold a 5-acre plot opposite Science City for Rs. 176 crore, or Rs. 35 crore an acre. KMDA had formed a bulk land committee in the ’80s to determine land prices, particularly in east Kolkata and Baishnabghata-Patuli. Plots were sold to several private firms and individuals, including well-known sportspersons.

In the ’80s, KMDA used to sell each cottah of residential and commercial land for Rs.2 lakh and Rs. 2.5 lakh, respectively. The price increased in the ’90s, when the authorities started selling a cottah of residential and commercial land for Rs. 3 lakh and Rs. 3.5-4 lakh, respectively. After 2000, KMDA fixed a price of Rs. 5 lakh per cottah for residential plots and Rs. 5.6-6 lakh for commercial ones.

SVP Group, a 2000-crore real-estate Development Company, recently performed ‘bhoomi pujan’ of its one of the affordable housing project – Krishna Garden – Gulmohur Garden Phase-II. After selling 780 mix units comprising 1290 sq. ft. & 1590 sq. ft. in Gulmohur Garden Phase-1, SVP has come up with Krishna Garden (Gulmohur Garden Phase-II) that is spread over 6 acres in Raj Nagar Extn, NH-58, Ghaziabad.

This residential project will be constructed on the theme of ‘Premium Small Apartments’, which suits to those buyers who have dream to buy a premium home in an affordable price. The bhoomi pujan ceremony was performed by Mr. Vijay Jindal, CMD SVP Group and other notable officials of SVP Group. Addressing the gathering, Mr. Jindal said, “After the launch of this project we have completely sold out first phase of the project, it reflects the trust of our customer on us and after this ceremony we are happy to announce the second phase for booking where we are expecting the booking of more than 150 units. We hope to take this trust forward and fulfill our commitment to deliver this project by March 2013.”

Krishna Garden will provide the value for money to the customer. Sample flat of 1000 sq. ft. is ready, which will provide the proper idea to the customer that what kind of actual area and facilities they will get. Krishna Garden will have several other features that make the residential community very different, adding convenience to living by having more open spaces and creating a new lifestyle that customers desire for. Krishna Garden offers 2 BHK plus store apartments from 950 sq. ft. to 1000 sq. ft. with skillfully crafted room interiors to give complete peace of mind.

The floor consists of vitrified tiles, oil bounded distemper on the walls. The kitchen is modular with granite top, and master bedroom has wooden flooring along with powder coated aluminum anodized windows with glass shutters.

Raj Nagar Extension is the first affordable one–stop destination for a wide band of middle class end customers, offering choices ranging from a 1BHK for Rs 12 lakh to a 3BHK for 40 lakh, and throwing in amenities likes entertainment zones, shopping arcades, and jogging tracks. At the end of 2012 around 7000 flats will be available for occupancy.

The USP of this area is an adjoining perennially green and unpolluted belt, which will remain undisturbed owing to the fact that local authorities have declared 500 acres along Hindon River as a green belt and banned all construction activity in the area. The location of Raj Nagar Extension also makes it a sought after proposition, which offers an ideal and serene setting for a pollution-free living in a well-planned locale with excellent connectivity to Delhi. The proposed Metro link to Delhi, Noida and Greater Noida is also in close proximity.

Some of such companies are:

Textile company Arvind announced a residential complex across an area of 10,00,000 sq ft in Ahmedabad, in partnership with B Safal Group.

Cable Corporation of India (CCI) plans a project in the western India. The project is located in Borivali area of Mumbai and will be a project worth Rs. 1000 cr.

Usha Martin, the steel wire maker recently launched a residential project in Boisar, on the outskirts of Mumbai, and also plans to come up with more such projects in Bangalore and Pune.

Golden Tobacco and Hindustan Composite are next on the list who have not exactly launched projects but have sold their lands to Wadhwa group and Sheth Developer respectively for real estate projects.

Similarly, Reliance Group, Bombay Dyeing and Century Textiles etc are entering into this market.

Thus, conclusion can be drawn that the manufacturing companies are now hitting the realty market.