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"Requests for de-notification by the developers have been received from 13 SEZs located in the states/Union territories of Delhi, Orissa, Gujarat etc, of which 12 have been approved by the Board of Approval," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply.

Board of Approval (BoA), a 19-member inter-ministerial group headed by Commerce Secretary Rahul Khullar, approves the SEZ projects.

Scindia said that the final de-notification is allowed only on refund of duties or benefits, "if any, availed by the developer."

The SEZs, which have been denotified by the BoA includes four IT-ITeS zones of realty major DLF in Haryana, Gujarat, and Orissa.

On the de-notification of three SEZs in Goa, the minister said that the state government "may have compensate the developers". However, he said that the developers have approached the judiciary and the matter is sub-judice.

"The Goa government had recommended 15 proposals for setting up of SEZs. Out of these, 7 proposals were accorded formal approval by the BoA and notifications were issued in respect of three cases," he said.

• Approx 45-acre, G+7 mid-rise group housing development, part of the larger master-planned gated community of Palm Hills in Sector 77 Gurgaon.

Apartment project in area of approx 40 acres

• Size 1450 sq.ft. 3 BR + Servant Quarters Rs.50 lakhs

• Size 1955 sq.ft. 3 BR Servant Quarters
  

Qubrex - Emaar MGF PALM HILLS Sector 77 - Brochure

Qubrex -Emaar MGF Palm Hills Sector 77 - Payment Plan

"Click here to download Emaar MGF Palm Hills Application Form"

Prices :

• Total: Approx Rs 50 to 65 lakhs

  
  

• EDC/IDC Charges : 337/34 per sq ft Aprox

• Car Parking : 2 Lac

• Club Membership : 50,000

Location - Palm Hills,

• Sector 77, Gurgaon

• Easy access from NH8, right next to Tilda Rice Mill

• Designed by leading international architects - ARCOP

• Efficient floor plans

"Currently, we are developing 12 residential and three commercial projects across various locations in North India. We have planned to invest Rs 4,000 crore to develop these properties over the next three years," Supertech Chairman and Managing Director R K Arora told PTI.

The residential projects are located across Noida, Meerut, Haridwar and Rudrapur, while the commercial properties will be developed at Haridwar, Rudrapur and Meerut, he added.

When asked if the company would consider raising fund via an initial public offer (IPO), Arora said: "We have started to prepare for an IPO, but the market has not completely come out (from the fall during downturn)."

The company would consider launching the IPO in the next one and half years, he added.

Source: Business-standardSupertech to invest Rs 4,000 cr in 15 projects; plans IPO

The construction work will start in a few months and the project is expected to be completed by next year, the Economic Times has reported, citing a person close to the matter.

The company's managing director Vinod Juneja said that the company is "exploring many options including a joint venture". He did not divulge any more details.

The I-T sector, which occupies the most in the commercial office space, had slowed down its demand after the collapse of Lehman Brothers in 2008. It is now scaling up its demand for office space. In the outlook for 2010, Fitch Ratings said the demand for commercial space in India will improve from second half of next fiscal.

HCC, through its group company Lavasa Corporation, has already invested around Rs 2,500 crore in the project, Lavasa Corporation president Rajgopal Nogja told reporters.

"We have done an investment of around Rs 2,500 crore in the company so far. Our investment over the next 10-12 years is likely to be around Rs 50,000 crore," Nogja added.

On the possibility of hitting the primary markets, he said the company may look at that option if the need arises.

The company has entered into an agreement with renowned biologist Janine Benyus to incorporate an 'international model for architecture inspired by nature' in the project.

"Lavasa City's second town, Mugaon, will become the world's first region to draw inspiration from the concepts of biomimicry in design and architecture," HCC Chairman and Managing Director Ajit Gulabchand said.

Lavasa is the country's first 'hill city' being developed by Lavasa Corporation.

"A National Rural Housing and Habitat Policy has been drafted by the ministry after wide consultation with the stakeholders including state governments, bankers etc... The draft policy is at consultation stage with the Planning Commission," minister of state for rural development Pradeep Jain Aditya said in written reply to a question in the Lower House.

"The goal of the proposed policy is to ensure adequate and affordable housing for all in the rural areas," said Aditya.

The draft policy also aims to facilitate development of sustainable and inclusive habitats in rural areas by expanding government support, Aditya added.

It seeks to promote community participation, self help and public private partnership within the framework of Panchayati Raj, he said.

The minister, however, replied in negative to a question whether the government has formulated or proposes to formulate a national rural housing policy and housing guarantee scheme on the lines of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

"If the signal from the bank and government is to raise the price, then why prices will not go up? That means the economy is ready to take a price hike. It will be wrong to assume that developers should not raise prices. How can you have two contradictory signals?" DLF group executive director Rajeev Talwar said on the sidelines of a CII seminar.

While a few private sector lenders, including ICICI Bank and HDFC Bank, recently increased home loan rates by up to 100 basis points, the Budget proposed to impose service tax on the realty sector both on commercial rentals as well as on sale of under-construction housing units.

The service tax would come to be about 3.5 per cent of the cost of the apartment that includes the value of the land and also the cost of construction, realty body Credai said.

"Which tax has been absorbed in our country? It has only been passed through. Somewhere the new levy must be adjusted, how can you hope that the new levy will be adjusted and yet there will be no increase?" Talwar asked.

However, Talwar did not quantify the likely jump in the prices, saying, "It will vary from location to location, project to project."

"For the infrastructure development of Bangalore, the state government will spend a total of Rs 5,325 crore to improve city roads and footpaths, construction of fly-overs, service roads, over/under bridges, water tanks, 10 multi-storey vehicle parking centres and on the ongoing metro rail project," Yeddyurappa said during his Budget presentation.

Noting that about Rs 6,000 crore had been spent on the city's infrastructure during the last two years, the chief minister told the legislative assembly that the state government would invest a whopping Rs 18,872 crore over the next three years to improve the transport system by completing the Metro rail project, launching a mono rail and providing drinking water and drainage facility to new areas.

"The state government is prepared to share 50 per cent of the capital required to operate local trains in the city with the central government through the railway ministry by connecting the various stations catering to long-distance trains and building new stations to provide faster and hassle-free travel for the people," Yeddyurappa told the members.

The budget has allocated Rs 600 crore as the state's share of the Metro project, which is in addition to Rs 1,600 crore spent over the last two years in the form of capital and loan. With 34 per cent of the people in the state living in cities and the urban-rural ratio widening every year, the chief minister said there was a need to formulate a systematic plan for providing infrastructure facilities in urban areas.

The budget proposes to spend Rs 600 crore to improve civic amenities in towns and cities across the state under the 'Mukhyamanthri Nagarothana Yojane'.

The civil aviation ministry has okayed the plan to set up the facility whose phase I would cost under Rs 500 crore. It will come up 60 km off Jaipur and 12 km from the national highway that connects Delhi to Jaipur. Promoters Rajasthan Aviation Infrastructure (India) have tied up with Fraport AG of Germany for technical consultancy and are planning to get the airport up and running by 2014.

The cost structure of the new airport stacks up against the Rs 10,000 crore provisioned for first phase expansion of the Delhi airport and the Rs 2,000 crore that each of the Bangalore and the Hyderabad airports cost.

The project will also be India's second private-run airport, after the one in Kochi. Ajay Dua, chairman of Rajasthan Aviation Infrastructure, said they had requested the Rajasthan government to provide road connectivity to the site in lieu of sweat equity.

Source: Economic Times By G Ganapathy Subramaniam First No-Frills Airport To Come Up Near Jaipur

While all 48 homemakers of the cooperative housing society exult in the glory of having a home of their own, it is an important milestone for Archana.

"A housing society of women, for women and formed by women, besides giving a shot in the arm to the women empowerment movement in Hayrana, would provide affordable housing for the middle income group", she says with a sense of pride.

"It is a part of my philosophy of `be the change' which got unstinted support from my husband, whose expert advice on the nuances of the real estate world saw the project from conceptualisation to the implementation stage," says Archana.

Source: The Tribune By Pradeep Sharma Home for homemakers

Bangalore-based developers, such as Nitesh Estates, Prestige, Puravankara, Brigade and Mumbai-based Godrej Properties are adopting this route to develop properties, aware of the keen need to save cash in a market that is becoming increasingly tight-fisted for real estate firms.

"Developers no longer want put cash upfront and invest inland. The JV works both for developers as well as landlords," said Amit Mookim, director, transaction advisory service (real estate), KPMG.

Under the arrangement being discussed by some firms, landowners team up with developers through a special purpose vehicle (SPV). The owner comes on board as an equity partner in lieu of the land he puts on the table. When the project gives returns, the landowner gets a fixed percentage of the revenue in proportion to his equity holding.

The developer invests in the construction and marketing costs, but avoids tying up his funds in land. Bangalore-based Nitesh Estates will use this model to undertake new projects. "This is expected to allow us to deploy our capital towards development expenses and the expansion of our operations," a company official said.

Source: Economic Times By Sobia Khan Realty companies opt for joint play to save on costs

The JDA has decided a reserve price of Rs 6,200 per sq mt for the new scheme; the low income group applicants will be provided a relaxation while those in the upper income group will have to pay additional percentage over the reserved price. As JDA raises the real estate price band, land in the city too expected to become a more expensive commodity, JDA officials expectedly defend the costing.

"This residential scheme is closer to the urbanised areas of Mansarovar and is better connected to the rest of the city as compared to the previously announced projects. Then there will also be relaxation in prices for the weaker sections," said Hridesh Kumar, deputy commissioner Zone 8.

The JDA expects to raise nearly Rs 70 crore from the new residential scheme which will have projects developed over 40,650 sq mt for the economically weaker and low income group housing. There will also be 317 residential plots and 1,461 sq mt of commercial space in addition four major parks of more than 15,000 sq mt.

Source: Realty Plus JDA launches its most expensive scheme housing scheme

This was disclosed here by Managing Director of the corporation Rajeev Arora, IAS, while highlighting the performance of the corporation during the current financial year and plans for the next financial year. He informed that the major acquisitions during the financial year so far included 1,800 acres for Industrial Model Township (IMT) Rohtak, 300 acres for IMT Manakpur, 250 acres for industrial estate, Karnal, 350 acres for industrial estates, Rai and 107 acres for the Kundli-Manesar-Palwal Expressway for interchanges and railway sidings.

He added that further acquisitions of 3,000 acres till March 31, 2010 would include 679 acres for growth centre, Bawal, 651 acres for expansion of industrial estate, Barhi, 159 for provision of utilities in IMT Manesar and 1,500 acres for a greenfield industrial estate at Sohna in Mewat. He further informed that these acquisitions would involve a capital layout of about Rs 1,840 crore. He also said the corporation was in the process of inviting applications for allotment of plots in the industrial estate, Kundli (Phase V) and the industrial estate/agricultural implements park at Karnal.

Source: Business-standardHSIIDC acquires land for new industrial clusters in Punjab

The conversion could soon see the day of light as the four- member committee constituted to look into the demand to allow conversion has submitted its report, recommending the demand.

Director, Industries UT department,Vandana Disodia, who was part of the committee, said recommendations of the committee had been forwarded to the authorities and the final decision laid with them. She added once the notification permitting freehold of industrial plots was out, the administration stood to gain from the fees charged on conversion rates that could further be utilised to upgrade the infrastructure in the industrial area. The move is likely to benefit over 1,500 industrialists in the region.

It has been reliably learnt, the committee in its recommendation has suggested the conversion fee at Rs 10 per cent of the collector rate, which is Rs 30,000 as on date. While the conversion rate for original allotees of plots has been fixed at Rs 1,800 per sq yard, the conversion fee for General Power of Attorney (GPA) holders would be Rs 3,900 per sq yard.

"At present, there is no house left in Vijay Nagar's Babu Colony. You have to wait till May to see whether there's any cancellation, but chances are less because who's going to get rid of this mega offer. Give us your contact details, there are similar new schemes coming up and we will be in touch with you," a local property broker said when Property Pulse visited his office to learn more about the developments.

When asked about the details of location and project, he added, "Earlier, this 6-7 acre land was being occupied by poor slum-dwellers. Mayawati government freed this area by pulling them out. Since her government is sloganeering for poor, they had later come up with this scheme to re-settle those who lost their land and house here. However, nobody knows who has left and who's going to buy, so we are in the business."

When contacted by Property Pulse, Narendra Kumar Chaudhary, vice chairman, GDA said he is unaware of any such illegal activity happening there. "If we receive any complaints, we will take stringent action against the culprits." Chaudhary declined to comment, when asked about their criterion for allotting flats to EWS. Also, an e-mail sent to GDA elicited no response at the time of filing this report.

Source: Realty Plus By Vishnu Rageev R GDA illegally selling homes made for EWS

The government had last week clarified through the Budget that transactions such as leasing vacant land and commercial spaces, payment made to developers before the grant of completion certificate and imposing preferred location charges, among others, would come under the service tax net.

Developers said the proposal could push home prices up by 10 per cent in Tier-II and Tier-III towns and 0.5-4 per cent in big cities such as Mumbai and Delhi which have higher land prices. However, a senior finance ministry official here said the net impact of the service tax would be only 3.3 per cent, since there is an abatement of 67 per cent.

"There is a false impression being created that prices will go up by 10 per cent but the fact is that 10 per cent service tax is levied only on 33 per cent of the value," said the official.

The budgetary clarification has been issued with retrospective effect from 2007, when real estate transactions were brought under service tax. Abatement scheme, under notification number 1/2006 dated March 1, 2006, says that the contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. In effect, the contractor would have to pay service tax only on 33 per cent of the value.

Stung by new service tax proposals on property transactions, real estate bodies such as the Confederation of Real Estate Developers Associations of India and Maharashtra Chamber of Housing and Industry plan to approach the finance ministry to seek rollback of some proposals.

Developers have already increased prices by 15-20 per cent in the last nine months as demand for homes picked up. This resulted in demand tapering in January and February.

Dilip Kawathkar, joint project director and spokesman for the Mumbai Metropolitan Region Development Authority, said a continued "recession in the real estate market" may have led to the absence of bidders today. The reclaimed marshland was valued at a minimum of 4.35 billion rupees ($95 million) after being offered for a reserve price of 300,000 rupees a square meter, unchanged from similar sales two years ago.

The failed sale in the city's Bandra-Kurla Complex area may force the government to revise rates or defer sales of land in the area, which it wants to develop into an alternative to the congested Nariman Point business district in India's financial hub. Rents in Bandra-Kurla had dropped 36 percent by December from a June 2008 high, according to data from CB Richard Ellis.

"The land price seemed to be on the higher side," Pujit Aggarwal, chief executive officer and managing director of developer Orbit Corp., said by telephone today. Orbit was one of the companies that had attended the preliminary bidding meeting last month. "It would have been tough to make money."

Source: www.businessweek.com By Sumit Sharma Mumbai's First Land Sale in 18 Months Gets No Bids

The Andhra Pradesh government has slapped notices on the developers of special economic zones (SEZs), asking them to explain delays in project execution and seeking details on the use of land allocated to them, after opposition parties alleged that many SEZs were misusing land acquired with government support.

A body representing SEZ developers, however, blames the delays on the global economic downturn and the government's failure to provide assured infrastructural support.

Andhra Pradesh has 73 notified SEZs--the highest in the country. Another 30 SEZs are awaiting notification, giving the state 103 of the 346 SEZs approved by the Union commerce ministry nationwide.

"Of the 73 notified SEZs so far in the state, with a projected investment of some Rs70,000 crore, only 19 SEZs have become operational, attracting an investment of some Rs10,000 crore," said Kanna Lakshminarayana, Andhra Pradesh's minister for major industries and commerce.

"The government would take back the land allotted to the developers of SEZs if they failed to convince the authorities on delays in setting up industrial units or (have been) found using the lands for other purposes," Lakshminarayana warned.

Source; Live Mint By C.R. Sukumar Andhra govt issues notices to SEZ developers over land use

Finance minister Pranab Mukherjee in his Budget, has not announced extension of STPI beyond March 2011, under which the IT companies get tax incentives.

For new investment, the IT firms may now shift to the SEZs where the incentives are available for new investment.

"End to this scheme (STPI) could mean a direct demand filip to SEZs which would then be the only tax haven for IT/ITeS companies," real estate consultant DTZ Research said in a report.

"The SEZ option is always there," commerce and industry minister Anand Sharma said.

SEZs, which provide tax sops for 15 years, are already popular among the software industry. More than 325 of the 574 formally approved SEZs are in the IT/ITeS sector.

Prodding the IT and ITeS firms to invest in the SEZs, Director General of Export Promotion Council for SEZs and EOUs L B Singhal said: "In the next decade, the SEZ scheme is going to play important role in the country's exports and employment generation for all the sectors, including software industry."

The best part is, to just share one's knowledge of the real estate scenario in a city like Bangalore, the consultants/experts get paid anywhere between $300 and $500 an hour. Over and above that, if they are required to fill in a market survey, he gets paid around $200 per survey form.

Farook Mahmood, CMD of Silverline Group and the president of the Bangalore Realtors' Association, has been flooded with calls from overseas buyers, who pay $500 an hour for an update on what's happening in the city.

Mahmood, who has been dealing in Bangalore's real estate market for the past 30 years, says that "this trend of overseas clients paying per hour or for a service is a recent phenomenon." According to investment bankers, this demand for knowledge from local real estate consultants is also happening in other markets such as Mumbai, Delhi and Chennai.

Real estate consultants say they receive around two/ three calls a month, with some consultants doing more. "I get calls one month in advance, where a date and time is fixed for telephonic interview to happen," says Mahmood.

Questions frequently asked are about the real estate climate whether or not it's a suitable time to invest; about specific micro markets within the city; about developers and their standing in the market; and the trends in the commercial and residential space.

One such global firm actively calling real estate consultants is Gerson Lehrman Group. The company is a network of consultants, physicians, scientists, engineers, attorneys, market researchers, and other professionals from around the world.

"Most of the local property consultants and experts have a very sound knowledge of the local market, they have great access to developers and know what's going on," says an investment banker.

This was stated at the 30th annual general meeting of Gurgaon chamber of commerce and industries in Gurgaon, which was also addressed by Haryana chief secretary, Urvash Gulati and financial commissioner and principal secretary, industries, YS Malik. Malik said the state government was providing all facilities to promote industries. He said a plan has been prepared to provide residential accommodation to industrial workers.

Director, town and country planning, TC Gupta said a proposal concerning CLU would be brought in the ensuing session of the state assembly.

In case, the applicant did not get the permission for CLU, it would be considered as approved. But if the industrial unit is not connected with a 18 metre wide road, it would not be issued permission for CLU. A self-certification policy will be implemented shortly for endorsement of site plan of the industrial unit.

Source: Financial ExpressPunjab alters land use policy

Besides, development of real estate complexes will also attract service tax, unless the entire consideration for the property is paid after the completion of construction.

"This step will add to the cost and it will be a huge burden on owners. Rentals of commercial property will go up by 10 per cent and it will lead to inflationary pressure," apex realty body Credai resident director GP Savlani told PTI.

Global realty consultant Jones Lang LaSalle Meghraj (JLLM ) country head Anuj Puri also said rentals of office and retail space are likely to increase by 10 per cent.

The Finance Minister said all commercial agreements or contracts between lessor and lessee for rent and lease would come under the service tax net with retrospective effect from June 2007. It will also apply to all agreements for undertaking construction of building or structures on any vacant land for commercial use.

There is, however, no clarity on whether residential properties will be considered as 'complexes' for inclusion under the ambit of service tax.

While Puri of JLLM said it should not be valid on housing properties, another global property consultant CBRE said service tax is likely to be charged on first time home buyers.

दिल्ली से सटे गाजियाबाद में मेट्रो अभी वैशाली तक पहुंचने वाली है। मगर जिस तरह से शासन और जीडीए इस प्रोजेक्ट में रुचि ले रहे है इससे साफ है कि जल्दी ही सिटी में मेट्रो को पंख लगने वाले हैं। मेट्रो के किसी भी प्रोजेक्ट का सीधा असर प्रॉपर्टी पर पड़ेगा। वैशाली तक के मेट्रो प्रोजेक्ट के फाइनल होने के कारण वैशाली, वसुंधरा, इंदिरापुरम और कौशांबी और साहिबाबाद साइट चार इंडस्ट्री एरिया में प्रॉपर्टी की कीमत बढ़ रही हैं।

अब नया बस अड्डे तक मेट्रो के प्रोजेक्ट को जीडीए और शासन से हरी झंडी मिल गई है। अभी तक मेन सिटी में प्रॉपर्टी का रेट दिल्ली से सटी गाजियाबाद की कॉलोनियों से कम थे। मगर मेट्रो के नया बस अड्डे तक के मेट्रो प्रोजेक्ट की हरी झंडी मिलने के साथ ही प्रॉपर्टी के रेट मेन सिटी में भी और तेजी के साथ बढ़ेंगे।

मेट्रो का एक नया रूट राज नगर एक्सटेंशन से मेरठ रोड के एएलटी कट तक करने की योजना भर से डिस्ट्रिक्ट के कस्बा मुरादनगर और मोदीनगर तक ही नहीं प्रॉपर्टी के रेट मेरठ तक बढ़ेंगे। मेरठ में अभी तक गाजियाबाद सिटी से प्रॉपर्टी का रेट कई गुना कम चल रहा है। मगर अब यहां भी प्रॉपर्टी का रेट और बढ़ने की उम्मीद है। इसका कारण एक तो गाजियाबाद तक मेट्रो का विस्तार होना और दूसरा मेरठ में इंटरनैशनल एयरपोर्ट का प्रस्ताव। राज्य सरकार की योजना है कि मेरठ में इंटरनैशनल एयरपोर्ट बनाया जाए। अगर ऐसा हुआ तो रियल स्टेट के लिए गाजियाबाद और मेरठ ऐसा इलाका काफी महंगा हो जाएगा, जहां काफी तेजी के साथ प्रॉपर्टी का रेट बढ़ेगा।

A study by global realty consultant Cushman & Wakefield revealed that the Burrabazar-BBD-Esplanade area-Park Street belt that comprises Kolkata's central business district (CBD) commands a rent of Rs 98/sqft, way over Gurgaon prime commercial (Rs 77), Bangalore CBD (Rs 73), Pune CBD (Rs 55), Chennai CBD (Rs 55) and Hyderabad CBD (Rs 50).

What's even more surprising is that rents in Kolkata have been least affected by the downturn that sparked a major price correction in the real estate sector across the country. While rent in the city's CBD is down 7 per cent against last year, the rentals erosion elsewhere is 10 to 28 per cent.

But despite the 20 per cent rent correction, office space in Nariman Point, Mumbai's CBD, remains the costliest in the country at Rs 300/sq ft ($107/sq ft/year). It is also the fifth most expensive location globally after Tokyo ($190), London West End ($161), Hong Kong CBD ($160) and Dubai CBD ($120). New York Midtown ($105), Moscow CBD ($102), Paris CBD ($102), Milan CBD ($89) and Zurich CBD ($88) are all cheaper than Mumbai.

Source: Realty Plus `Office rentals remain high in Kolkata'

It's at the cusp of a recovery, but India's usually aggressive real estate sector is being cautious about expansions this time.

Excesses by large realty firms--such as aggressive land buying, massive projects with long gestation periods, and venturing into new territories such as power and logistics--as well as the downturn had pushed the sector into a deep slump in 2009.

Now, as growth returns, developers are ordering feasibility studies before launching projects, entering into strategic tie-ups for raw material and labour, appointing project management consultants, and outsourcing construction work for quicker delivery, say property consultants.

Such measures are fairly new for a sector dominated by family-run businesses.

"Builders are back with a bang," said Aditi Vijaykar, executive director (residential) at Cushman and Wakefield India, a property advisory. "They want to try out new locations for projects and are trying to test market a product before launching it."

DLF Ltd, India's largest developer by market value, said it will not buy land in 2010-11 or launch projects until it has regulatory approvals. Its working capital model will depend on cash flow from pre-sales, customer advances and bank debt.

"It is difficult to stop speculative buying, but a system like one home per family is required," DLF executive director Rajeev Talwar said. "The chances of end users exiting projects are less because property investments are usually a lifelong affair for them."

Source: Live Mint By Madhurima Nandy Realty companies take steps to cut risks in expansion plans

All the conditions of the Housing Mega Projects would be applicable for this residential pocket and the concessions provided under the Super Mega Mixed Use Integrated Industrial Park Policy would be available to the company only when the Industrial Pocket was developed by the company in accordance with the provisions of the Super Mega Mixed Use Integrated Industrial Park Policy.

Banks have sought clarity from RBI on pricing of old home loans once the new `base rate' regime sets in. Loan agreements, stretching for 15-20 years, have no provision for replacing the prime lending rate (or PLR) -- the anchor interest rate to which the floating rates are linked.

However, RBI has told banks to start benchmarking loans to a `base rate' instead of the PLR from April 2010. The base rate is to be calculated on a cost-based formula and would be lower than the PLR, while banks are free to charge a risk spread over the base rate they cannot lend below the base rate.

Significantly, RBI has directed banks that at the time of loan renewals or resetting interest charges, banks should take the `base rate' as the anchor rate. Since home loan agreements, like other loan deeds, are legal documents, bankers fear that many retail borrowers will resist a switchover from PLR to `base rate' and signing on a new agreement.

Bankers will also have to grapple with the fact there is no renewal date in case of home loans and existing loan agreements are for the entire tenure of the loan. Secondly, since the base rate is a floor rate, there is a possibility that interest rates on some home loans may have to be hiked if the base rate of the bank is higher than existing loan rates.

Source: Economic Times Rate Race: Banks Seek Clarity From RBI On Old Home Loan Rates

In a public notice, Ravindra Singh, UP's principal secretary for civil aviation, has invited bids for appointment of consultants for setting up an international airport at Meerut, to be implemented in the public-private partnership mode on design, build, finance, operate and transfer basis. These consultants will later work as project management consultants. Singh was not available for comment.

Though an international airport at Meerut may attract some travellers heading to Delhi, the project mainly seeks to cater to western UP and Uttarakhand.

Said Shravan Kumar Sharma, Meerut divisional commissioner, ``We already have an airstrip at Partapur in Meerut. It is a small strip which will be lengthened to make it suitable for large jets. The facilities will be upgraded and made fit for use as an international airport.''

Sharma refused to confirm reports that the UP government had released Rs 73 crore to compensate those whose lands may be acquired for the airport.

The Uttar Pradesh government has decided to shift its proposal for an international airport from Greater Noida to Meerut, Shravan Kumar Sharma, Meerut divisional commissioner, said. Sharma is ex-officio chairman of the Meerut Development Authority which has been appointed the nodal authority for the project.

Source: Times Of India By Lalit Kumar UP for Meerut airport, G Noida realty may skid

Godrej Industries' real estate arm has lined up Rs 2,000 crore of investments for developing five projects over 30 million sq ft in Bangalore, the DNA has reported.

According to the report, these projects will be a mix of residential and commercial ventures and would be developed in partnership with other investors. The company has already launched its 2 million sq ft residential project -- Woodsman Estate -- and will soon start its second one, which is joint venture with late actor Feroze Khan and his son Fardeen Khan for gated villas.

"Property development is a major focus area for us. We are also betting big on affordable housing costing less than Rs 20 lakh," said Adi Godrej, chairman, Godrej group.

The firm, which operates on a JV model with land owners, recently signed a memorandum of understanding (MoU) to develop 50 acres of land in North Bangalore. Godrej, however, did not share details of the project. The company is also developing a project with actor Sanjay Khan's Skystar group.

Source: Realty Plus Godrej Properties in Rs 2,000 crore Bangalore plan

The focus of Godrej Properties is "affordable housing" with a price range from as low as Rs 5 lakh to Rs 20 lakh and "we see a lot of potential in this", the chairman of the Godrej Group, Adi Godrej, told reporters.

The company is developing a 40-million sq ft township in Ahmedabad municipal limits which will be mainly residential with a mix of commercial.

About Bangalore projects, Godrej said the first one is Woodsman Estate Project, a two million sq ft project near Hebbal on way to Bengaluru International Airport; Gold County Project, a joint venture inked with late actor Feroz Khan and his son Fardeen Khan for gated villas.

The third is a joint venture with "SkyStar" owned by actor-director Sanjay Khan, owner of Golden Palm Resort, for a residential project.

The biggest project in Bangalore, the chairman said would be "Godrej Agrovet", a poultry breeding farm on 100 acres of land. However, for biosafety reasons, this project has been shifted to 90 km away from the city and the land earmarked for this would be utilised for housing spread over 10 million sq ft.

The government is also planning to offer free FSI to housing projects who will manage to get Zero Energy Certification, Chavan said.

"The need of the hour is to take note of the climate changes recorded, which unfortunately is not encouraging. Hence, the State Government is inclined to introduce legal provisions by April 1 for stricter adherence to eco-friendly projects, more so in the housing sector. At the same time, we also intend to incentivise such initiatives. The incentives will not only be offered to upcoming projects, but also to constructed buildings that initiate eco-housing," Chavan added.

Chavan said that the Maharashtra Government will soon sign a memorandum of understanding with The Energy and Resources Institute (TERI) which will guide the State in conservation of water, electricity, solid waste management and keeping the right balance of industrial growth and environment.

Skeletal buildings: One of the many incomplete realty projects in Hyderabad's Gachibowli area. Bangalore is gaining from Hyderabad's loss. Many real estate investors consider the Karnataka capital a safer bet. Madhurima Nandy / Mint

Dotted with the sprawling campuses of information technology (IT) firms such as Microsoft Corp.
and Wipro Ltd, Hyderabad's fast-moving growth corridor the Gachibowli area looks skeletal with half done buildings, yellow construction cranes and giant bill boards that promise delivery of homes on time.

Hyderabad was hailed some years ago as one of India's hottest property destinations, with firms such as US-based Tishman Speyer Properties and Malaysia's Sunway City Bhd coming in to launch their maiden projects in the country.

In its present condition, Andhra Pradesh's capital city remains the lone realty victim of the slowdown.

"Other cities are already on the recovery route. But Hyderabad has been in the news for all the wrong reasons," said George Johnson, city head (firm management), Jones Lang LaSalle Meghraj, a property advisory.

The downturn perhaps shook Hyderabad more than it did other large cities due to certain disturbing events.

The first was the unravelling of a multi-crore accounting fraud at Hyderabad-headquartered Satyam Computer Services Ltd last January, followed by the death of chief minister Y.S. Rajasekhara Reddy in a helicopter crash in September.

And just as the sector was beginning to recover, the struggle for a separate Telangana state that includes Hyderabad, intensified.

"Whether the market bounces back depends on if they can control the Telangana agitation," said N.R. Aluri, managing director, NCC Urban Infrastructure Ltd. "The residential segment particularly looks uncertain though we are expecting some demand in the budget category."

madhurima.n@livemint.com

Source: Livemint By Madhurima Nandy Telangana stir worsens outlook for realty sector in Hyderabad

The eight residential sites up for sale had no takers, and of the 45 commercial properties, only 12 were auctioned.

This year's first and seventh since its inception, the auction made GMADA richer by Rs 25.79 crore, which was mere 8.1 per cent more than the reserve price of Rs 23.86 crore.

Of the 12 commercial sites, seven were booths (three in Sector 67 and two each in Sectors 68 and 71), three SCOs (in Sector 70) and two SCFs (in Sector 71), GMADA Estate Officer (EO) Balbir Singh Dhol said.

But 23 booths, eight SCOs and two SCFs did not have any buyers 29 bidders participated in the auction, which lasted for around four hours.

As anticipated, not a single bid was received for the seven (one kanal each) residential plots in Sector 71. Though five bidders were interested in a partly constructed HIG house in Sector 48-C, a court order had stayed its auction.

EO Dhol blamed recession for the poor response. But realtors attributed it to the high reserve price, in case of residential properties, and lack of basic amenities, in case of commercial sites.

Source: The Indian Express By Nitin Jain GMADA auction flops, plots go unsold

By the end of this year, there will be online access to the land records which will benefit NRI population of the state. Besides, all 153 tehsils of the state would be computerised and the project will cost Rs 115 crore.

The project of land records is being implemented through Punjab Land Records Society. The BOOT operators CMC Ltd are handling the work for Sangrur and Barnala, while other districts are being looked after by CMS private Ltd. These operators are supposed to implement data entry and validations of all revenue records. Operation and maintenance of service centres (Fard Kendras) and registration of documents will also be done.

Currently, registration of deeds is being done by using the Prism software at all 153 Tehsils and a pilot project of registration is already implemented on BOOT at Sangrur and Barnala.

Anurag Verma, secretary, Revenue department of Punjab said, "There are few shortcomings in the software and we have decided to get new software developed from Microsoft. This will be integrated with land records, deed writers, stamp duty and Geographic Information Systems (GIS) module."