CHENNAI.....Good investment opportunities in all the segment of the city. Commercial rentals is on fast trek. Residential segment also having very good demand from rural areas. Outskirts of the city is now more costly then CBD residential areas.   AHMEDABAD..... ..... Huge NRI funds were recently invested in residential segment of the city. Commercial too is feeling the heat. Residential rates are marginally up by 20% since last quarter. The trend is likely to continue.   BANGALORE...... ...IT and ITES are again in the buying spree. Residential complexes are getting good demand. NRIs investments are up again. Service apartment concept is catching up in the city. Commercial lease rentals are rising.   PUNE.... ... Pune is poised as IT centre by the developers. In fact many leading IT brands are in the city. It has enhanced the residential rates. Outskirts like Viman Nagar, Pimpari and Chinchwad also now having great demand. Good time ahead.   DELHI .... ...The market is slow for residential units. Noida and Gurgaon also have touched historic level. New zones are in the competition. Faridabad and Merut along with Rohtak are busy catering for demand in Delhi and NCR    MUMBAI.. ..... ..Realty Fund and investors of large real estate holdings are still maintaining the price level. Developing zones are feeling heat. Small pocket developers are also panic in the market. Residential prices stagnated as of now.

Affordability is a major issue –
S S Kshatriya

By Staff Reporter

With rising price of real estate, government of Maharashtra is serious about the issue, said S S Kshatriya, Principal Secretary – Housing Department, Government of Maharashtra at a conference organised by CII. While affordability is major concern, the state government will encourage Public Private Partnership (PPP) he said.

The government cannot be a mute spectator and responsible for providing affordable housing, he added. Satellite townships will be developed. After Sealink with Navi Mumbai, Nava Sheva, corridors will also be developed. Transport will play a major role to provide affordable houses. Large number of buildings in the city requires major repairs and reconstruction. Government accepts the role of facilitator and enabler, he said.

Mumbai's extended suburbs are neglected. Government is not in a position to give financial help for rental housing but it can give incentives like TDR etc. to improve rental housing in the state. Suggestions are welcome, he said.

He said that infrastructure fund must be established and let developers contribute their share which will take care of the infrastructure in their areas. He also emphasized on town planning.

We have to bring good name to real estate sector besides getting credit rating and a greater transparency. We require to sell the properties in carpet area measure, as suggested in the Housing Policy, recently announced by the state government, he said.

The government of Maharashtra will establish a Regulator to regularize the real estate activities in the state, he added.

Later in the conference, Dharmesh Jain of Nirmal Group of Companies objected to the suggestion and move of the state government to establish Regulator for real estate. First liberate than impose Regulator, he said. Supply of land and FSI are the only solution to arrest rising prices in real estate, he added.

Advocate Anil Harish of D M Harish & Co while moderating one of the session said that the Rent Act needs immediate attention. He compared it with the UK Rental scenario for a better prospective.

Sunil Mantri, chairman Mantri Group said that land and construction cost has been escalated. July to September every year are slack months for real estate sale hence though the sale is down, prices are still going strong and there is no fall in the prices. Inquiries have fallen 50% as of now but will improve by October, he said.

Harshavardhan Neotia, Director Bengal Ambuja Housing Development ltd. Added to the discussion that since we are touching 10% growth in GDP the trend will not slow down in realty. Only infrastructure can ease the situation and give way to affordability.

Ashish Raheja added that land agents are adding 35 to 50 % of margin between seller and buyers. Party continues in Real Estate Sector, he said.

Anuj Puri of JLL Meghraj said that he blame builders community for speculative sale. Builders would have not sold to speculators. Builders are holding on the prices, he added. Sunil Rohokale of ICICI said that in last six months there is no increase in property prices. End users are still availing home loans at 12%.

Ramesh Jogani, CEO and MD Indiareit said that we have not learnt lesson from 1997 fall. That period, builders invested in land. It was long term investment from short term borrowings. The government should promote large format housing schemes, he suggested.