Houses by the Sea
Houses by the Sea
- Kavitha Iyer
06 November 2007
Indian Express
They serve up the same luxury of sea views and salt spray, but one year ago you could hardly speak of Juhu and Calangute in the same breath. One is home to the cream of Mumbai and Bollywood, with residential real estate rates here making it to global charts. The other is on every globetrekker’s annual December agenda, a pristine Goa beach skipped by the winter and the moral police. Now, unbelievably, the two unlikely rivals are neck to neck in the realty market.
Goa’s big story is no longer the foreign tourist returning unerringly. It is the cold mathematics of real estate, more fashionable here than in any Tier Two town and pricier than ever before. In Panjim, where prices have doubled in a year and developers are fielding enquiries from Europe, New Delhi and Bangalore every day, apartments in well-planned townships are demanding—and fetching Rs 10,000 a sq ft.
“Goa’s real estate is quickly moving away from its original tag as holiday home property,” says Anuj Puri, managing director of property consultants Jones Lang la Salle Meghraj. Puri confirms there is keen interest among foreign buyers too, perhaps a lot of the tourists now want to just stay back.
But Goans, earning the highest per capita incomes in the country, are for the first time beginning to live the big city life. “Over 40 per cent of our bookings until now have been made by Goans. We were surprised ourselves,” says Poonam Bhandari, heading sales for Gera Developers, a Pune major just beginning the construction of Astoria, a premium apartment complex and Gera’s first residential project outside Maharashtra. Ditto at Aldeia de Goa, a hugely controversial project of Mumbai-based Dynamix Group.
“In Phase 1,42 per cent of our buyers were Goans seeking to shift residence into this gated community for the lifestyle, the amenities and the security,” says Brigadier SCK Puri, director at the lavish project of plots and readymade tiled-roof homes on “thoughtfully landscaped slopes” on a 140-acre estate adjoining the sea.
The others were from Delhi, Mumbai and Bangalore while another 30 per cent belonged to the UK and the Middle East. Depending on the view, plots in Aldeia de Goa could set you back by about Rs 40,000 to Rs 55,000 a sq m up from Rs 15,000 a sq m two years ago. Little wonder then that with such huge returns expected, the big daddies from New Delhi and Mumbai are making their first forays into uncharted Goan realty.
Parsvnath is undertaking a mega residential project, DLF is expected to soon announce plans for a mall, the Rahejas of suburban Mumbai are developing an IT Park.
That the IT economy is dramatically changing the realty market in this once-tranquil region is obvious, everybody agrees. “IT firms readying to occupy properties like the Rahejas’s IT Park in Goa are going to campuses for fresh recruits. Do they want to work in Hyderabad, Nagpur or Bangalore? More and more fresh recruits are opting for Goa,” says Anuj Puri. “A stint of a few years in an exotic workplace like Goa appeals to all youngsters.”
The other reason is, of course, that the tourism economy continues to boom. “After the Bali bombings especially, Goa remains a favoured destination.”
The state Government may have backed off on the Regional Plan. it involved contentious development permissions for now, but its IT policy remains focused, say officials. Foreign investments, more BPOs, IT parks, world class bandwidth and hundreds of kilometres of fibre optics top the agenda for RP Pal, secretary for Information Technology.
“Technology infrastructure to match the first world,” is what he is concentrating his energies on, so that Goa is able to slug it out with Mumbai and Pune not only in the real estate market, but also for a bigger chunk of the outsourcing pie.
But whether as a young techie’s dream job-with-dream-home attached or as an ideal location for second homes, the stress for builders is now on the luxe trappings of city living, coupled with lush views and sunsets. Sea views alone are passe. Professionally managed complexes of apartments or villas come complete with Jacuzzis, piped music in the lobby, jogging tracks, tennis courts, swimming pools one construction site is perched precariously along the Dona Paula cliffs, with swimming pools overlooking the azure sea—and gymnasiums.
Just-launched, Astoria will be a “resort-style residence” with landscaped gardens, a swimming pool with a “swim-up bar”, a landscaped walking track on the roof, a barbecue area, a “hotel style” lobby, rooms for a “concierge”, service elevators and solar lighting wherever possible.
Aldeia de Goa offers “international class” infrastructure, promises Brig Puri—concrete roads that could put Indian metros to shame, a centralised sewerage system with sewage treatment plants, an amphitheatre, sprawling gardens and open spaces, a banquet hall, convenience shopping and restaurants—all inside the gated community of villas.
There are apartments designed by Hafeez Contractor too, a two-minute walk to the beach if you’re downhill or commanding out of this world views for those buying homes higher up the hill. From Bollywood to cricket, the who’s who of Indian high society have made enquiries, Puri admits.
The villas and ancestral beach houses are no longer the most premium property. “Apartment sales, not so popular earlier are quickly rising in numbers,” says Anuj Puri. He explains that there is greater security in gated communities, better amenities on offer in serviced apartments supplies just a phone call away, broadband-ready homes in modem apartment complexes, retail giants next-door alongside cinemas and five-star hotels with casinos thrown in.
“Why you connect with Goa. is a subjective thing,” says Rajeev N, a Delhi-based professional in his fifties who bought a plush 1,000-sq ft holiday home in Porvorim, just across the Mandovi River in Panjim. “For me, it was not a decision of the mind. Because while property prices here might make this a sound investment, maintaining a second home is really not an easy job. Investing that money in equity markets could fetch me better returns with none of the headache involved.
His own “heart decision”, he says, was fuelled by the chance to be close to nature Villa Paradiso, by Tata Housing Development Corporation is built along a hillside overlooking Mandovi River and just beyond, a breathtaking view of the heart of old Panjim.
But, having been purchased entirely by families wanting a getaway home even at upwards of Rs 50 lakh a home, Villa Paradiso is a ghost town for most part of the year, and cause for much dismay among many Goans. Architect Dean D’Cruz, an active member of a group of planners and non-governmental organisations campaigning for a more people-centric planning for the state, says too many buyers in the hugely speculative realty market of Goa are not really interested in living here. “People are making money,” he says, “and the next best thing to the stocks is to put money in real estate.”
D’Cruz, on the governmentt-appointed taskforce to chart the road ahead for a planning vision for Goa, calls this an emerging market, but adds that a significant percentage of buyers are those investing in their “fourth or fifth” home. It’s sad, he says, that the rapid construction is just depleting resources and adding pressure on infrastructure. “The impact is tremendous, the new townships and the way they are going about acquiring land…”
While many developers blame the scrapping of the Regional Plan for the high prices on account of a the promised supply suddenly drying up, that’s only part of the story, says Lalit Saraswat of goaproperty.co.in, a real estate venture between two old-timers among Goa’s business houses.
Saraswat admits that supply of certain types of property has seen a crunch due to the clampdown on zoning conversions, but says many true-blue Goans like him have mixed feelings about the rate at which development is proceeding. For Saraswat, born and brought up in Goa and sharing many of the environmentalists’ fears despite his profession on excessive greed, what the state really needs is planned development.
“Mangroves and green zones should certainly not be destroyed,” he says, “but at the same time the environmentalists’ concerns don’t mean that planned development is not possible. After all, it’s only logical that the city expands and what we need is to get all the stakeholders together and arrive at a mix that is sustainable.”
Still, later this year, many more big builders will be doing a Goa recce, for there’s a large number of proposed SEZs that formed the chief election issue even for last week’s by-poll. The buzz is that many will get the nod despite popular anger against them. Also, the Russians are buying land in North Goa, gossiped one taxi-driver, knowledgeably pointing out that Russian airlines are increasing flights into Vasco. And, not unlike Mumbai’s cabbies, he’s worried he will never be able to buy his dream home. “Just not affordable for people like us.”
So, is middle class housing in Goa going the Mumbai way? Saraswat has a marketing man’s fable for a response: “Two representatives of two big shoe manufacturers arrived at an island,” he says. “One went back disappointed—the remote island’s people wore no shoes. The other stayed back to set up shop after sending his boss a message: No competition here, there can’t be a better market.”
The market for affordable middle class housing in Goa is wide open. “Anybody who enters this market will do exceedingly well,” he predicts.
Source: Indian Express
http://propertybytes.indiaproperty.com/?p=1640
http://www.indianexpress.com/story/235634.html Labels: News Department of Enforcement issues serves show-cause notices
The Directorate of Enforcement has served show-cause notices to foreigners who have purchased properties in Goa allegedly in violation of the Foreign Exchange Management Act (FEMA).
The notices, issued directly to the parties and also through the Goa government, has asked why their properties involved in the contravention of the FEMA should not be confiscated to the Central government account in terms of section 13 (2) of FEMA 1999.
The state government in their report presented on the floor of the house cited 392 such cases. The committee, prima facie, had found violations in 298 cases, which were referred to Directorate of Enforcement and Reserve Bank of India.
The only major case in this batch is that of a Russian company called True Axis, which purchased about 20,000 square metres of agriculture/forest land in Morjim. Foreigners cannot purchase agricultural/forest land in India. True Axis also purchased the property with money received into their personal account, which is again illegal according to RBI rules. The company has Indian directors but these are dummies, the official said.
The NRI commissioner Mr Eduardo Faleiro, reacting to the controversy leading to the state government enacting a new Act making it difficult for foreigners to buy land in the state said that Goa had become known globally as a holiday resort and faced the same problems that arise in holiday resorts elsewhere in developing countries. He said, One such problem is the large scale purchase of property by foreigners and the ban of purchase of property by foreigners in Goa is justified. He however felt that this ban should not be extended to persons of Goan origin whatever their nationality and added that during his recent visit to Mozambique he found several persons of Goan origin who held different nationalities but wanted to return to Goa.
Differing on the issue, the PWD Minister, Mr Churchill Alemao, said recently that he would in no way support the ban on sale of land to foreigners saying that during his recent visit to the United Kingdom he was confronted by the media on the issue, who attacked him by saying that in that case they should also take back all the Goans living in the UK.
The Goa Assembly has unanimously passed a Bill amending the Registration Act, 1908 (16 of 1908) to prohibit foreigners from buying land in the State. An amendment to Section 22 would empower registering officers to not only examine documents but also seek any evidence and papers they deem relevant for registration. They are empowered to refuse registration of a document. Labels: News GBA rejects interim report
PANAJI — The Goa Bachao Andolan, on Tuesday, rejected the interim report submitted by the task force, questioning the methods used to formulate it, say highly placed sources in the task force.
The GBA has alleged that the 73rd and the 74th amendments have not been given proper weightage and the report is based on the old and outdated Town and Country Planning Act as article 243Zd of the Constitution makes it mandatory on the states to constitute district planning committees for preparing the draft development plan.
The Union Planning Commission vide circular number M-13011/1/2006-SP-Coord dated August 25, 2006 had issued guidelines to every state government on constituting the DPCs and preparing the district plans and subsequently the state government constituted the DPCs u/s 239 of the Goa Panchayat Raj Act, 1994 vide government notification number 26/25/DP/DPC/S/2003 and re-constituted, vide notification dated September 28, 2006.
Also, the Centre For Panchayati Raj – Peaceful Society had made a presentation to the task force on regional plan 2021: the Goa, Daman and Diu Town and Country Planning Act, 1974 [act 21 of 1975] showing that under section 9 of which the regional plan 2021 is sought to be prepared is ultra vires of the article 243 ZD of the Constitution. The GBA is also critical of the amendment to Section 16 and 16A of the TCP.
Reportedly, technical members of the task force have also expressed reservations about the amendment and argue that the timeframe is unrealistic and the processes have not been finalised.
The government had also commissioned a group to conduct a pilot project of six villages and three municipalities to integrate people’s views into a village development plan. Sources say that though this group was appointed two months back with a timeframe of five months, the work has still not started.
“The government has not published the notification regarding the Council for Social Justice and Peace being part of the state level facilitating team for the pilot project as it was agreed upon,†said the director of the Centre For Pachayati Raj-Peaceful Society, Mr Sotter D’ Souza and added that the Chief Minister, Mr Digambar Kamat was supposed to do this, two months back.
The GBA has also reportedly sought to know why the social audit of the previous regional plans was not undertaken and no scientific analysis, especially economic review, was done.
Mr Amol Navelkar of ‘Utt Goenkara,’ a key member of the GBA, earlier, speaking to ‘The Navhind Times’ had said that he was not in favour of the GBA being part of the task force and put his objections down. It is reliably learnt that this protest will also be taken up at the government level, soon. Incidentally, the head of the task force and the government is the same, that is the Chief Minister, Mr Digambar Kamat.
It may be recalled that in a press note released recently, the GBA had demanded that the government repeal the above-mentioned ordinance. The GBA had also demanded that all other proposals, notifications, executive orders and instructions contrary to the task allotted to the Task Force be withdrawn immediately and wanted the government to make public the proceedings of the task force to ensure transparency and accountability and had warned that in the absence of “positive remedial action by the government of Goa,†the GBA would have to reconsider its role in the task force. The convener of the GBA, who is not in town, is expected back soon, say sources.
The very first press note issued on December 7, 2006 by the GBA Save Goa Campaign and signed by the convener, Dr Oscar Rebello makes interesting reading. It says, “Besides the calamitous destruction of Goa’s natural beauty, her culture and her heritage, we are set to witness an unprecedented social disaster if mega 5-star projects, townships, condominiums, golf courses, resorts, etc take root in our precious land. Besides being greedily resource intensive, all these megalomaniac projects envisaged in the Regional Plan 2011 will trigger a wealthy and powerful new wave of migrant influx who have the potential to relegate indigenous and already settled Goans into a politically irrelevant minority in their own land.â€
Source: The Navhind Times
http://www.navhindtimes.com/articles.php?Story_ID=052862 Labels: News Goans against MEGA projects
Goans have been protesting against mega-housing projects.
Numerous forums oppose construction in paddy fields, mega housing projects where the infrastructure cannot support the vehicles, water and electricity demand, sewage, and influx of a large number of people that will change the demographics, and mega projects causing the prices of property to go up beyond the reach of locals. They have demanded that all proposals of gated communities and mega projects must be scrutinised and studied by the Gram Sabha. Labels: News Are the SEZs not being closed by the Goa Government ?
The Goa government, which mounted pressure on the Centre to cancel all Special Economic Zones (SEZs) in the state, has not taken any initiative to close down those estates and compensate the developers in the last six months, commerce ministry officials said.
The Centre has refused to denotify three SEZs in Goa that had already been approved and notified. In December 2007, Goa decided to scrap special economic zones after widespread protests. In a letter to the state government, the Commerce Ministry says there's no provision to denotify these SEZs and advises that the state hold discussions with the developers to reach an amicable settlement.
The Goa government has obtained two weeks’ time from a Division Bench of the Bombay High Court in Goa to take a decision on its stop-work orders issued to three private developers of Special Economic Zones.
Reiterating that it was firm on its decision to scrap the SEZS, the government of Goa asked the Central government to review its refusal to de-notify the zones. Labels: News Goa SEZs scrapped
On 31 Dec 2007, the Government of Goa scrapped the SEZs. The Chief Minister Mr Digambar Kamat stated that they were not feasible in the present form.
The CM also said that they would to the Centre urging it not to process 8 recommended SEZs that had been kept on the hold, not to notify the 4 approved SEZs, and to denotify the 3 notified SEZs.
The five-member committee headed by Mr Subhash Shirodkar stated in its report stated that SEZs in present form were detrimental to the development of the state and would choke the economic structure and put undue strain infrastructure. The committee has also stated that SEZs would require large chunks of land, and permitting them in the light of scarcity of land in the state was not advisable. It has also said that promotion of SEZs would give back-door entry to the real estate sharks, which in turn would hamper the activities of the genuine real estate developers in Goa and adversely affect state’s socio-economic indicators. The committee has expressed fears that in absence of labour force in the state there would be influx of around 5 lakh non-Goans if SEZs were permitted in the present form. This would create stress on accommodation. It has also stated that the state government would have no control over the recruitment by the promoters of SEZs. The Goans would not get benefit of SEZs, it has said.
The issue of developing SEZs in Goa has been under the scanner for many months now with local villagers alleging misappropriations in land sale to real estate majors for setting up malls in state. The anti-SEZ views are supported by members within the ruling Congress, opposition BJP and the Church. Labels: News St Francis Xavier
The Feast of St Francis Xavier is celebrated in Goa on 3rd December.
The Bom Jesus Basilica at Old Goa houses the body of Saint Francis Xavier, popularly also known as Goencho Saib, placed in a glass container encased in a silver casket. Labels: News IFFI Goa
The 38th International Film Festival of India, IFFI Goa 2007 is being held in Goa from 23 November to 3 December 2007. Shahrukh Khan will inaugurate the 10-day event.
The event venues include the Old GMC, Maquinez Palace, INOX Multiplex, Kala Academy, Corniche and NIWS Grounds, all in the Panaji - Miramar vicinity. In addition, concerts / screening of movies will happen at Mangueshi, Margao, Bicholim and Vasco. Mini concerts are also planned at Canacona, Pernem/Dhargalim, Calangute, Sanguem/Quepem and Colva.
Around 200 films are expected to be screened during IFFI. Labels: film festival goa, News Goa Beach Shacks
Out of 562 applicants, the Government has allotted 168 shacks in North Goa and 90 in South Goa. 90% of these shacks have been allocated to experienced persons, while 10% have been allocated to new comers. The tourism department has begun the process of demarcating the areas along the beaches. Labels: Goa Beach Shacks, News No more SEZs in Goa: CM
Goa's Chief Minister Mr. Digambar Kamat ruled out any more SEZs in Goa after stiff opposition.
Development work has already started on two SEZs, one at Verna and the other at Keri. Seven SEZ applications have been approved. Eight more applications are at different stages of approval.
"We have kept these eight on hold while we will examine the seven SEZs considering the objections raised by certain section," the Chief Minister Mr. Digambar Kamat said. Labels: Goa SEZ, News IFFI
The 38th International Film Festival of India, IFFI Goa 2007 is being held from 23 November to 3 December 2007. Shah Rukh Khan will inaugurate the event.
Labels: film festival goa, IFFI, News Goa - Wildlife Sanctuaries
Every year, October 2 to 8 ic celebrated as Wildlife Week by governments, environmentalists and activists to accelerate the awareness of wildlife conservation among people.
In the February 1999 issue of National Geographic Magazine, Goa was compared with the Amazon and Congo basins for its rich tropical biodiversity. Goa has 1424 sq. km of its area (of a total of 3702 sq km) under forests - over 33% of the total area. Around 62% of this forest area has been brought under Protected Areas (PA) of Wildlife Sanctuaries and National Parks.
Foxes, wild boars and migratory birds are found in the jungles of Goa. The avifauna includes kingfishers, mynas and parrots. Numerous types of fish are also caught off the coast of Goa and in its rivers. Crabs, lobsters, shrimps, jellyfish, oysters and catfish form some of the piscine catch.
Wildlife sanctuaries in Goa include:
Mollem National Park: Spread over 107 square kilometres in Sanguem Taluka. The national highway NH-4A passes through the sanctuary. Attractions nearby include: The Dudhsagar waterfalls, easily accessible from Mollem by a forest road. The Tambdi Surla temple, black granite stone temple dedicated to Lord Shiva was built by the Kadamba kings during the 13th Century.
Bhagwan Mahavir Wildlife Sanctuary:
Spread over 133 square kilometres in Sanguem Taluka.
Bondla Wildlife Sanctuary:
Spread over 8 square kilometres in Ponda Taluka. It boasts of a Mini Zoo, Deer Safari Park where visitors can move among Sambar and Spotted Deers in a vehivle, Formal Gardens, Botanic Gardens and Eco-Tourism Cottages. Gaur, the state animal of Goa is frequently seen.
Dr. Salim Ali Bird Sanctuary:
Spread over 1.8 square kilometres in Tiswadi Taluka. The area is rich in mangrove vegitation and has a wide variety of birds. The sacntuary is just off Panaji, across the River Mandovi, in Chorao.
Cotigao Wildlife Sanctuary:
Spread over 86 square kilometres in Canacona Taluka. It is about 10 kms away from Canacona and Palolem.
Other sanctuaries include Madei Wildlife Sanctuary (208 sq kms / Sattari Taluka) and Netravali Wildlife Sanctuary (211 sq kms / Sanguem Taluka). Labels: News India's Home Loan GDP Ratio 5%: Reality Check, ASSOCHAM
India's Home Loan GDP Ratio 5%, Of 50% In US & UK: ASSOCHAM
Despite real estate witnessing boom in last couple of years with 90% of home loans borrowers being the first timers, home loans GDP ratio in India continues to be at meager 5% as against 50% in US and UK and therefore suggested that it be more than doubled in budget proposals for 2008-09.
Above observations are made in a Paper on Reality Check brought out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), pointing out that since buying a home requires huge investment, especially for first time buyers, higher home loan GDP ratio is necessary as 90% of borrowers are the first time borrowers.
As such, high interest rates coupled with soaring property prices have only impacted the affordability of buyers, demand, however continues to persist and will become stronger and more intense in near future.
The ASSOCHAM President, Mr. Venugopal N. Dhoot said that at present, India has a housing shortage of about 19.4 million units of which 6.7 million is estimated for urban India and those of 12.7 million units in rural India. However, with rising income, swelling middle class and rapid urbanisation, the demand is set to shoot up and is estimated that additional 45 million units would be required for both rural and urban areas by 2012.
As a result of rising income and swelling middle class, India’s per capita income has doubled over the past 20 years. With population growth of about 1.6% per annum and Gross Domestic Product (GDP), growth of 9% per annum, the per capita income is expected to quadruple by the year 2020.
The average real income of urban India and rural India is likely to grow by 5.7% and 3.6% respectively by 2025. Moreover, India’s middle class is expected to expand by more than 10 times from its current size of 50 million to 583 million people in next 18 years.
Therefore, all these estimates work out to make a strong case for higher home loan GDP ratio so that India and its population is able to keep a pace for meeting the demand for housing units, pointed out Mr. Dhoot.
Commenting on impact of rising home loan rates, the ASSOCHAM Paper says that home loan rates have shot up from 7% in 2003 to 12% in 2007 with its impact massively following across the board including genuine buyers, speculators, real estate developers and bankers.
A case in example is that as the home loan rates have gone up sharply, the interest pay out on housing loans has amplified as a borrower of Rs.10 lakh with loan tenure of 20 years has to shell out an extra of Rs.3250 every month on his EMI. The annual additional burden comes out to be as high as 39,000. Loans up to Rs.20 lakh form 80% of total housing loan portfolio, says Mr. Dhoot.
The Paper also points out that share of housing loans in total personal loans have been on its way up since 2000-01. It has increased from 37.2% in 2001-02 to 48.6% in 2004-05. Home loans constituted 52.7% in the total household credit in the year ended March 2006, marginally up from 52.5% in the previous year. Housing together with agriculture accounted for more than two-third of incremental priority sector lending in 2005-06.
Home loans formed 11% of the total outstanding credit of scheduled commercial banks in March 2005 up from just 2.4% in May 1990. The sales value of housing construction has witnessed an exceptional leap from Rs.17.61 crore in 1991 to Rs.4,182.67 crore in the year 2006. Lower interest rate regime has played a pivotal role in the progress.
However, with the repricing of interest rates in the last four years from 7% to 12% and the sky rocketing prices of the property, there has been a slowdown in the residential property market. The phenomenon signifies suppression of demand rather than absence. Though it is necessary to check the flow of speculative money it needs to be appreciated that augmenting the land supply for development would go a long way in easing the demand pressure on prices. Labels: News Casinos in Five Star Hotels in Goa
The Goa government has permitted managements of 5 star hotels to operate casinos.
There are ten casinos currently operating in Goa: Goa Marriott - Miramar, Panaji, Ramada Caravela Beach Resort - Varca, Cidade de Goa - Dona Paula, Hotel Leela - Cavellosim, Majorda Beach Resort - Majorda, Caravela - The floating Casino on River Mandovi, Panaji, Chances - Vainguinim Valley, Holiday Inn - Mobor, Bogmalo Beach Resort - Bogmalo and Kennilworth - Utorda.
Labels: News Real Estate sector needs liberation, not regulation: CII
Would you believe that the simplest way of reducing real estate prices may be to just do away with regulations altogether? Seriously, regulation constitutes a significant percentage - about 23% of the total project cost - in the real estate sector according to a study cited by K Srinivas, Managing Director, Gujarat Urban Development Co. Ltd., recently at CII 'Realty 2007', the Real Estate Conference organized by Confederation of Indian Industry.
In a similar vein, Anuj Puri, Conference Chairman - CII 'Realty 2007' & Chairman and Country Head, Jones Lang LaSalle Meghraj, explained that land constitutes more than 50% of the project cost. "Reduce it to 25% and you will see a drop in sale prices," he declared. Now since the primary reason for high land prices in cities like Mumbai is again, regulation (that too at multiple levels), it seems quite obvious that the cost increases as a result of 'over-regulating' the sector are proving to be just too high.
What also became clear is that regulation is impacting real estate prices directly and indirectly in more ways than one. Restricting supply and fund flows are two areas that were also highlighted at the Conference.
For instance, among the recommendations by Mr. Srinivas was extending infrastructure to peripheral areas where land is affordable. These areas, he pointed out, could then be urbanised and used to provide affordable urban housing.
Echoing his sentiments, Dharmesh Jain, Chairman & Managing Director, Nirmal Group of Companies emphasized that there is a need to first liberate and then regulate real estate. "Give us the freedom to go out of city centres, put up infrastructure and do volumes. Mumbai is not just Nariman Point, 99% of the demand is for the suburbs but regulations are holding us back," he said.
Niranjan Hiranandani, Managing Director, Hiranandani Group of Companies, pointed out that liberalization has reduced prices, opened up supply and increased penetration in sectors like telecom. There is a need for doing the same where real estate is concerned. Deregulate this sector, don't go on adding new regulations, they are simply delaying the process and pushing up prices, he stressed.
So the bottom line where real estate prices are concerned is urgent steps to deregulate the sector. While single window clearance remains a mirage that will probably never become a reality, at least repealing the Urban Land Ceiling Act would be a step in the right direction.
In the meanwhile, get set for yet another increase in real estate prices soon. After all, the announcement of Maharashtra's much-awaited housing policy (with many new regulations) is just around the corner!
Source: http://www.ciionline.org/news_new/newsMain23-07-2007_3.asp
Labels: News Broadband ready buildings
In order to achieve higher growth of broadband, the Telecom Regulatory Authority of India (TRAI) has suggested "DoT should encourage through state governments that all Municipal committees include a clause for making Multiple Dwelling Units/ buildings broadband ready by internal wiring while giving clearance for the construction of all such buildings in future. This will help to create infrastructure to provide broadband in future and will be very convenient to users."
As of March 2007, the Internet subscribers are 40.57 million and broadband subscribers are just 2.34 million. The broadband subscribers are lower than the target of 9 million for 2007.
Source: http://www.trai.gov.in/
Labels: News Prepayment of Loans penalty unfair ?
Most banks levy a prepayment charge on loans - if you want to pre-pay your loan before the agreed term, you may have to cough up an additional fee, say 2% of the loan amount. This is a major switching cost, and prevents customers from terminating their loan agreement with a bank.
The Supreme Court has been moved by State Bank of India (SBI) against an order of National Consumer Disputes Redressal Commission (NCDRC). SBI was asked to refund Rs 40,000 it had collected as prepayment charges from a consumer who had shifted to another bank. NCDRC upheld the consumers' right to migrate to a bank offering her a better deal. Rejecting SBI's argument that the prepayment charge was a normal banking practice, NCDRC said such fees constituted an infringement of the consumer's right to look for a loan at lower interest rate from an alternative bank. Labels: News SEZs in Goa
The Goa government has given a green signal for 15 SEZs (Special Economic Zones), 7 of which have been approved by the Central government, 2 of which have already been notified. Of the proposed SEZs, 7 are IT / ITES, 3 related to bio-tech, one each for pharma, research and food park, and 2 for gems and jewellery. 98 lakh square metres of land has already been allotted by the state government for SEZs, while the procedure for allotting an additional 1.27 crore square metres is in process.
The first pharma SEZ is at Bhootkhamb near Keri in Goa. The Goa Industrial Development Corporation (GIDC) allotted 1.2 million sq mt of land last year to Cipla / Meditab Specialities to develop the formulation specific SEZ. The company plans to invest 650 crores in the project. The unveiling of the plaque to mark the inauguration of Mindspace, the first services oriented SEZ to be set up in the state by K Raheja Corp, at Verna was done by the CM on 23 March.
"Goa SEZ Policy, 2006" document from the Government of Goa website.
"List of SEZs issued formal approvals" from the SEEPZ website. Meditab Specialities Pvt. Ltd. - Keri - Pharmaceuticals. Paradigm Logistic & Distribution Pvt. Ltd. - Verna Industrial Estate - IT/ITES, Peninsula Pharma Research Centre Pvt. Ltd. - Sancoale - Bio-tech, K. Raheja Corp. Pvt. Ltd. - Verna Industrial Estate - IT/ITES. Labels: News Purchase of immovable property by Foreign Nationals
1. A foreign national of non-indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years.
2. A foreign national who is "a person resident in India' can purchase immovable property in India, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank.
3. Under FEMA, "a person resident in India' is defined as a person residing in India for more than one hundred and eighty two days during the course of the preceding financial year (April - March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as ' a person resident in India' under FEMA, a person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year ) but has also to comply with the condition of the purpose/ intention of stay.
4. A set of Frequently Asked Questions (FAQs) and answers on various issues relating to acquisition and transfer of immovable property in India by a person resident outside India and a person resident in India who is not a citizen of India, is on the website http://www.rbi.orq.in/. The FAQs may please be referred to for further clarification. Labels: News Benchmark Residential Property Rates in Goa
Apartments
Location INR (Rs.) USD ($) GBP (£) EUR (€)
--------------------------------------------------------
Calangute 40,000 959 481 708
Porvorim 27,000 647 325 478
Panaji/Miramar 35,000 839 421 619
Colva 26,000 623 313 460
Margao 18,000 431 217 319
Vasco 15,000 359 180 265
Rate per square metre (sqr mtr)
Villas
Location INR (Rs.) USD ($) GBP (£) EUR (€)
--------------------------------------------------------
Colva 36,500 875 439 646
Majorda 25,000 599 301 442
Vasco 23,000 551 277 407
Rate per square metre (sq. mtr.)
Apartments
Location INR (Rs.) USD ($) GBP (£) EUR (€)
--------------------------------------------------------
Calangute 3,717 89 45 66
Porvorim 2,509 60 30 44
Panaji/Miramar 3,253 78 39 58
Colva 2,416 58 29 43
Margao 1,673 40 20 30
Vasco 1,208 29 15 21
Rate per square foot (sqr ft)
Villas
Location INR (Rs.) USD ($) GBP (£) EUR (€)
--------------------------------------------------------
Colva 3,392 81 41 60
Majorda 2,323 56 28 41
Vasco 2,138 51 26 38
Rate per square foot (sq. ft.)
Conversion Table
1 square metre 10.764 square feet
1 square metre 1.196 square yards
Rates are subject to amenities, upkeep, & vary within the same building depending on the view, layout, demand and supply, and many other market factors.
These rates are indicative only, and can serve as a ballpark figure to help you understand the price of your dream property. The actual prices of each property will be different.
Real Estate Prices, Foreign Exchange Rates etc. as in April 2007.
Property prices in Anjuna, Arpora, Baga, Bambolim, Calangute, Cavelossim, Colva, Dona Paula, Mapusa, Margao, Miramar, Old Goa, Palolem, Panaji / Panjim, Pernem, Ponda, Porvorim, Sinquerim, Siolim, Vasco da gama.
Page last updated on 17 April 2007. Labels: News Investment in GOA
Goa is an Ideal Location for Properties Investment. With over 9 months of sunshine each year, uncrowded beaches and warm unpolluted seas, Goa is a dream holiday destination for many Western Europeans and Indians. It is also an ideal location for property investment, whether you're looking for a second home, holiday home, or a place to retire in the sun.
Properties in Goa are good value for your money, and also a sound investment. Goa is a high growth property market and is experiencing a property boom, with growth potential over the next decade set to offer a good returns.
These are not the only reasons to invest in Goa. In Goa, the cost of living is very low comparing to the Western World including UK, Germany, Russia, etc. English is widely spoken and people are very friendly. In fact, Goa has a very welcoming, safer, more healthy and pleasing environment.
Goa generally referred to as GODS OWN ABODE is located on the west coast of India on the shores of the Arabian sea, Goa is 3,700 sq. kms. of lush greenery, vast stretches of golden beaches, fields, forests, rivers and mangroves that allure those seeking a place in paradise.
Real estate investment in Goa is attracting the investors. Goa property investments are giving them good returns as prices have appreciated. Labels: News
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