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Old January 14th, 2010, 11:30 AM   #1
IchimaruGin1
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Mumbai Economy And Real Estate Thread

With permission from Sudeesh I have set this thread up to post articles about the economic growth and jobs generated in the city.

Mumbai as we know has been tipped by many round the world to be one of the shining stars of the next decade.

Post all economy related articles in this thread. This includes real estate news.

Floating the rupee has to be the single most important policy for the city which has the nations two largest stock exchanges.

Last edited by IchimaruGin1; February 12th, 2010 at 10:47 PM.
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Old January 14th, 2010, 11:36 AM   #2
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Mumbai is 2nd most promising development market

According to the 'Emerging Trends in Real Estate® Asia Pacific 2010 report' released recently, India's Financial Capital Mumbai was ranked second only to Shanghai as the most promising development market.
"Development has increased there in all property sectors, but construction of affordable housing is particularly strong, as the government continues to lower mortgages and the middle class is being offered “good-quality, honest accommodations,” said the Report brought out jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP (PwC).
Interestingly included under the sub head 'Markets to Watch', the predictions are based heavily on projections for strong activity in China and India. “I think there are buying opportunities for some time,” states one investor quoted in the report.
This is reflected in the choices made by survey participants for real estate investment and development: Shanghai, Mumbai, and New Delhi are first, second, and fourth, respectively, for real estate development opportunities. (Ho Chi Minh City ranked third for development prospects.) Shanghai has topped the list 'primarily due to the Chinese government’s decision to infuse the economy with liquidity'.
You can find the report here:

http://www.uli.org/News/MediaCenter/...cific2010.aspx
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Old January 14th, 2010, 11:39 AM   #3
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Unitech Re-Develops Mumbai Slums

(RTTNews) - Unitech Ltd., the country's second biggest land developer, anticipates that its share of sales of the Mumbai slums will triple in three years as it is re-developing Mumbai slums into luxury apartments, report media, quoting the company Managing Director Sanjay Chandra on Thursday.

The New Delhi-based company is re-developing 100 acres of land in the Santacruz area near the Mumbai airport by transforming the slum houses built with tin, asbestos and plastic sheets to apartments with high-speed elevators. The slum- dwellers will be re-settled in smaller apartments in separate buildings on a part of the land cleared.
http://www.rttnews.com/ArticleView.a...1179668&SMap=1
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Old January 14th, 2010, 11:53 AM   #4
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D B Realty IPO at 2/5

MUMBAI: Crisil has assigned IPO Grade '2/5' to the proposed initial public offer (IPO) of D B Realty (DBRL). This grade indicates that the fundamentals of the IPO are below average relative to the other listed equity securities in India, says a report by the ratings, research, risk and policy advisory firm.

Crisil has disclaimed, that this grade, however, is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy/sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor.

According to the Crisil report, the grading reflects DBRL's lack of operating history in real estate development. However, the presence of its experienced promoters, Vinod Goenka and Shahid Balwa, in the real estate development business for more than a decade provides execution track record comfort. The promoters have jointly developed nearly 15.9 million sq ft of residential, commercial and retail real estate projects in and around Mumbai. The grading has considered the highly fragmented nature and severe competition in the real estate industry.

However, DBRL's concentration in and around Mumbai is a key positive. The Mumbai real estate market is expected to recover faster compared to other markets.

The grading takes into account corporate guarantees, which total more than the company's net worth, and that seven out of the 10 subsidiaries have negative net worth. Further, the fact that DBRL has extended unsecured interest-free loans to entities related to the promoters without any agreements in place is an area of concern. Some of these loans have been given to entities that are either loss-making or have negative net worth. The grading also factors in the company’s sizeable development plans over the next few years, for which the managerial team may need to be further strengthened.

DBRL, did not earn revenues in 2006-07 (was incorporated in January 2007), Rs 0.06 billion in 2007-08 and Rs 4.7 billion in 2008-09. The 2008-09 revenue primarily comprised Rs 3.5 billion and Rs 1.1 billion from the sale of TDRs (transferable development rights) and flats, and car parking, respectively, the report said.

http://www.bloombergutv.com/stock-ma...po-at-2-5.html
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Old January 14th, 2010, 11:55 AM   #5
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Navi Mumbai expo sells 5,000 flats in three days

MUMBAI: A property exhibition at Navi Mumbai not only drew in huge crowds but also did big business—about 5,000 flats were sold in three days.

Initially, most Navi Mumbai builders were reluctant to participate in the three-day exhibition because of the recession. By Monday, they were buoyed by the unexpected response. “According to rough estimates, the overall transactions were well over Rs 1,000 crore,’’ said Suresh Haware, chief of the Maharashtrian Builders Forum. “We are still in the process of calculating the number of flats sold. But it was most likely over 5000.’’

A senior office-bearer of the Builders Association of Navi Mumbai said over one lakh people visited the 3-day property exhibition, while 60 builders from Navi Mumbai, Mumbai, Thane and neighbouring areas exhibited their properties. Last year, the response was very poor as the exhibition was held just after the terror attack on November 26.

The builders found that there was more demand for flats in Kharghar, Panvel, Khandeshwar and Kamothe. Besides flats, there was a huge demand for shops too. “Surprisingly, we found that there were no takers for big flats—as a result, very few flats of 3,000 sq ft or more were sold. Flats between 600 and 800 sq ft were the most in demand,’’ Haware said. He and the other builders’ optimistic reading of the response to the fair is that the recession in the real estate sector is coming to an end.

http://timesofindia.indiatimes.com/c...ow/5434765.cms
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Old January 14th, 2010, 12:00 PM   #6
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Builders make a beeline for slum projects
Redevelopment projects offer access to prime properties in Mumbai, while avoiding large investments in land

Besides building Signature Island, an expensive residential project in the Bandra-Kurla Complex business district in Mumbai, Sunteck Realty Ltd will also redevelop a slum in the financial capital.

The developer has no experience in redeveloping shanty towns, but took a calculated risk in November when it entered into a joint development agreement with a local builder familiar with such projects.

The local partner identified a slum for the project and is responsible for getting the consent of the residents and the state authority’s nod for it. Sunteck will handle the cash required and the construction.

The firm is among at least 10 large- and mid-sized developers making maiden attempts at redeveloping slums—projects considered lucrative and yet not capital-intensive to begin with.

With greenfield developments becoming more difficult and land deals turning scarce during the economic downturn, developers say slum projects offer a way to access prime properties in Mumbai with clear titles, while avoiding large investments in land.

“There is limited potential for development otherwise in Mumbai,” said V.K. Phatak, former chief town planner with the Mumbai Metropolitan Region Development Authority. “It has also become easier than before to develop them because of the help offered by the government.”

In these projects, private firms build free tenements for slum dwellers in exchange for being allowed to construct other projects in the area that can be sold at market prices.

“The return on investments gets magnified in slum redevelopment projects and we would look at them in a joint development format because the initial, difficult process is made easy with a partner around,” said Kamal Khetan, managing director of Sunteck.

Another realty firm, Neptune Developers Pvt. Ltd, which has filed for raising funds through an initial public offering (IPO), is also considering slum projects. It will bid for a portion of the Rs15,000 crore Dharavi slum redevelopment project, the largest such in Mumbai, said a senior company executive.

HCC Real Estate Ltd, a subsidiary of infrastructure firm HCC Ltd, is planning two slum projects in the city—a 50-acre land in suburban Mumbai and a 1 million sq. ft development near the Indian Institute of Technology, Powai campus, the firm’s president, Rajgopal Nogja, said.

“The reasons are simple. Entry capital is cheaper, cost of clear land is way too steep in Mumbai, and returns are better in such projects,” said Ramesh Jogani, managing director and chief executive (CEO) of Indiareit Fund Advisors Pvt. Ltd, a private equity fund promoted by Piramal Group. Indiareit is close to investing Rs20-30 crore in two slum redevelopment projects in the city.

The Maharashtra government has paced up clearances and slum projects stuck during the economic crisis are being revived. Around 450 slum projects are going on in Mumbai, involving 250,000 homes. The Union and state governments are aiming for a slum-free Mumbai by 2015.

“There is a clutch of new developers who are sending in proposals for slum projects, particularly after the floor space index (FSI) was raised to 3, from 2.5 in such ventures last year,” said S.S. Zhende, CEO of the Slum Rehabilitation Authority (SRA). With higher FSIs, firms get additional construction rights for development.

Zhende also credits the high-power committee formed last year to settle disputes between slum developers and authorities for making the projects more attractive to developers.

“It has become easier to get into slum projects now because the SRA has been proactive and the requirements are not so rigid any more,” said Lalit Kumar Jain, chairman of Pune-based Kumar Builders.

The firm, which is also set for an IPO this year, has a large slum project in Pune and is looking to enter the Mumbai market as well.

http://www.livemint.com/2010/01/1121...ne-for-sl.html
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Old January 14th, 2010, 01:25 PM   #7
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Old January 14th, 2010, 03:00 PM   #8
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even if 10% of the total homes mentioned above get rehabilitated above without any controversy .I will be very happy.
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Old January 14th, 2010, 04:47 PM   #9
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Just a Fact:

GDP of Mumbai: 208
GDP of Pakistan: 164.5

2008, In Billion USD (nominal)
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Old January 14th, 2010, 04:54 PM   #10
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stop being a troll.
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Old January 14th, 2010, 06:40 PM   #11
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**SIGH***

Someones still carrying baggages here.
__________________
"If I were to look over the whole world to find out a country most richly endowed with all the wealth, power and beauty that nature can bestow – in some part a very paradise on earth – I should point to India."

"There is no book in the world that is so thrilling, stirring and inspiring as the Upanishads." (‘Sacred Books of the East’)

- Max Muller, German Scholar
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Old January 14th, 2010, 08:44 PM   #12
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Quote:
Originally Posted by ankushgupta View Post
GDP of Mumbai: 208
GDP of Pakistan: 164.5

2008, In Billion USD (nominal)
ahh akush ji , unfortunately thats the PPP values of mumbai metropolitan area
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Old January 15th, 2010, 12:01 AM   #13
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Quote:
Originally Posted by IchimaruGin1 View Post
ahh akush ji , unfortunately thats the PPP values of mumbai metropolitan area
Oh yeah , I looked into wrong table. Sorry about that, Do you have any idea about GDP of Mumbai in nominal terms?
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Old January 15th, 2010, 12:24 AM   #14
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Quote:
Originally Posted by ankushgupta View Post
Oh yeah , I looked into wrong table. Sorry about that, Do you have any idea about GDP of Mumbai in nominal terms?
hmm hard to say for sure

figure ranges from 60-80 billion dollars for the Mumbai metropolitan area

but the figure i follow is that in 2007-2008 it said the mumbai metro area was 6.16% of Indian GDP so say 6% of 1.2 trillion Indian gdp means

about 70-72 billion dollars in nominal terms......would be my own personal extimate
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Old January 15th, 2010, 01:00 PM   #15
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ADIH Begins Enabling Work on $400m Mumbai Project

15 January 2010 ABU DHABI — Abu Dhabi Investment House, or ADIH, has commenced enabling works and site facilities for its $400 million India Entertainment City project in Navi Mumbai.
The work includes site offices, boundary fences and other areas that will assist contractors to carry out infrastructure-related construction. The investment company also announced that the Phase II of the infrastructure work on the project, comprising 75 per cent of the total area, will commence in February. The company has awarded a contract for the Phase II of the infrastructure work, which includes civil works and roads network. Remaining infrastructure work includes electrical, telecommunication and data services; central gas network and district cooling; in addition to a landscaping and pavements, says a company announcement. A formal ground-breaking ceremony of the Economic Development Zone, of which, India Entertainment City is a component, will take place next month. India Entertainment City is one of a series of Shariah-compliant ‘Entertainment Cities’ funds created by Abu Dhabi Investment House, first of which is currently being developed in Doha, Qatar.

The concept pivots around a mixed-use development, encompassing residential, commercial, retail and entertainment components.

The entertainment component will include film and multi-media studios, movie theatres, convention halls and other cultural elements.

The residential area will consist of medium to up-scale areas including branded villas and neighbourhoods.

“India was selected as an ‘Entertainment City’ destination due to a few contributing factors such as the resilience of its economy, government’s support to economic boost as well as expected growth of demand on real estate for both investors and end users,” says a Press release issued by the investment company.

The company expected Indian project to contribute to the economy by providing numerous jobs.

The project which will be built is located on the outskirts of the financial capital in an area which is rapidly developing into commercial and industrial hub of Navi Mumbai.

http://www.khaleejtimes.com/DisplayA...=business&col=
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Old January 15th, 2010, 01:18 PM   #16
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Oversupply in metros, office rents stay low
After rentals fell between 25% and 40% in almost all markets last year, vacancy levels, despite healthy absorption, will increase in the first half of 2010 and then stabilise or fall in the latter part of the year

Bangalore: Office rentals continued to be depressed in key markets such as Mumbai, Pune and Chennai as supply outpaced demand in the three months ended December, realty consultants said.

Although occupancy levels in commercial office space improved marginally, there is increased demand only for high-end projects, said a report by property consultancy CB Richard Ellis. The firm based its report on data collected from seven cities—Delhi, Mumbai, Bangalore, Hyderabad, Pune, Chennai and Kolkata.

“The downward pressure on rentals in Chennai and Pune are primarily due to oversupply,” said Kaustuv Roy, executive director, Cushman and Wakefield Inc., a property advisory. “But hopefully in the next six months, we will see an upward movement in rentals in larger markets like Mumbai and Delhi-NCR (national capital region).”

Of the 84 million sq. ft of space scheduled for completion in six key Indian cities, only 66 million sq. ft is likely to come up in the next five quarters, DTZ Research said in a December report.

After rentals fell between 25% and 40% in almost all markets last year, vacancy levels, despite healthy absorption, will increase in the first half of 2010 and then stabilise or fall in the latter part of the year, the report predicted. Vacancy rates in secondary business districts, such as Nehru Place in New Delhi, increased from 12% in the third quarter in 2009 to 21% in the fourth quarter due to poor leasing acitivity.

All three consultancies said telecom and consumer goods firms would drive demand in the near term, as rentals from technology companies would be slower to recover. Roy believes that even in the case of the many upcoming special economic zones focussed on information technology, only those tax-free enclaves that are nearing completion would see better occupancy levels

http://www.livemint.com/2010/01/1321...-office-r.html
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Old January 15th, 2010, 01:22 PM   #17
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The Spirit of Mumbai and Trading Holidays

First-time visitors to India are often intrigued by the "Spirit of Mumbai," which has been exhibited time and again by our city as a whole. The city, especially in the last decade or so, has been subject to many calamities both man-made and natural but has shown its resilience by bouncing back to near normalcy within a very short time. This laudable characteristic of the city and its people is probably based on the deep-rooted philosophy in the Indian psyche that everything happens for the best and should be accepted as part of a larger design. Most Indians have grown up with this philosophy and this has served us well while recouping from many a disaster.

But in some situations, adopting this philosophy may not be the most appropriate thing to do. Take for instance, the long weekend in the year 2009 that Indian markets enjoyed when the Indian stock markets were closed over four consecutive days. It was fortunate that no significant global event occurred during this period. If it had, due to our very close linkages with the global markets, it could have been potentially significantly damaging for our investors and the Indian financial system as a whole.

Investors with open trading positions on the Wednesday prior to that weekend would have been helpless and unable to respond to any changes in the global environment. The markets would have opened with a gap on the following Tuesday, leaving little or no room for effective risk management. This would have been a serious constraint particularly to those market participants who do not have access to the SGX market in Singapore.

This happens only in India" may well be the truth with respect to the numerous trading holidays each year. Being a diverse nation with many religions and different regional festivals sprinkled with elections and similar events that take place with regular frequency, India topped the charts in the number of trading holidays in the stock market in 2009 with 23, far greater than the eight and nine trading holidays in the U.S. and U.K. respectively, and 11 in Singapore. Indian stock markets have had an average of 21 annual trading holidays over the last five years.

The regulators and the exchanges are conscious and aware of the risk posed by situations like the one outlined above and have been supportive of proposals to manage this risk. It is now the responsibility of the community of brokers to be the prime movers in this matter. We need to do this in the interest of our customers as well as to ensure that the stability of the markets is not affected.

Recently a broker poll was conducted in which only 36% of the brokers supported the move to reduce trading holidays. While feedback from market participants is critical and a consultative process is a healthy one which needs to be followed by policy makers, policy cannot be determined based on the popularity of the measure; rather it should be in line with the objective, which in this case is to facilitate effective risk management in an increasingly globalized market


For instance, when the proposal for mandatory dematerialization of shares – (where shares were permitted to be traded only in electronic form and the delivery of physical shares was discontinued) -- was first mooted, most market participants had expressed serious reservations. But the regulator was clear that this was indeed required to reduce fraud and went ahead with the policy and the rest is history. The positive results are evident today and the Indian market's performance on the demat front is among the best in the world.

This milestone also set the basis for Straight Through Processing – the use of a single system to process or control all elements of the work-flow of a financial transaction - and shorter settlement cycles. Though there may have been operational issues and temporary problems faced by participants, the long term results have vindicated the stand taken then by the policy makers.

Similarly, to protect investor interest, it is necessary to reduce the number of trading holidays and increase trading hours, both of which may cause some operational inconveniences today but would serve the system well in the future. The commodity exchanges in the country have far fewer holidays than the stock markets, putting paid to the argument that our settlement and banking systems may not support the extended trading hours and lesser holidays.


Quote:
If we want a market that is robust and offers good risk management opportunities and investor protection avenues, we need to move in the direction of fewer holidays and extended trading hours

Thus, if we want a market that is robust and offers good risk management opportunities and investor protection avenues, we need to move in the direction of fewer holidays and extended trading hours. Or else we may need to fall back on our age-old traditions and pray hard that there are no systemic shocks that arise on extended weekends and holidays. And if they do, we would need to accept them as part of our "fate" or "karma." The choice is ours.


http://online.wsj.com/article/SB126352895040729447.html
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Old January 16th, 2010, 12:47 PM   #18
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New Delhi: Jet Airways, India's largest airline by passengers flown, may become the country's first carrier to fly to South Africa should the civil aviation ministry grant it permission to do so. The airline is keen to gain permission for commencement of services ahead of the football World Cup slated to commence in June.

It is likely that the airline will join hands with Kenya Airways for onward connection to the North Africa region.

According to government sources, Jet is keen to start non-stop daily flights from Mumbai to Johannesburg, South Africa's largest city. Earlier, airline operations to South Africa were restricted as only one carrier could operate services to Mumbai. This restriction no longer applies.

Currently, flag carriers Air India and South African Airways (SAA) connect both countries, though Air India dose so only through a code-share agreement with South African Airways.


SAA flies four times a week on the Mumbai-Johannesburg route.

Jet Airways officials have let it be known that should permission be granted they will operate wide-body A-330 planes on the route.

Jet Airways, which covers at least 18 international destinations, has increased the share of its revenues from international operations to 62%, from 12% in 2005-06
http://www.domain-b.com/aero/airline...th_africa.html
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Old January 16th, 2010, 11:15 PM   #19
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http://www.thehindubusinessline.com/...1750791300.htm


Commercial realty back in business in Mumbai


Commercial real estate may not have got over the slowdown blues, but it has not stopped developers from showcasing innovative designs to draw their clientele.

Kanakia Spaces, which has just about completed its 1.2 million sq.ft project costing Rs 380 crore in Andheri, Mumbai, claims to have the largest single floor plate of 1.60 lakh sq.ft (0.7 km long; and more than 3.5 acres) in the country.

The eight-floor complex shaped like a boomerang on about 10 acres also boasts of a 3,500 sq.ft vertical garden at its 40 ft tall entrance lobby. A 1,000 sq.m pond is being created close to the gate to match the lush walled green inside.

Of a total plot area of 32,481 sq.m, the garden area (outside) is 4,693 sq.m along with a paved spread of 6,620 sq.m. The building expanse covers 5,231 sq.m. Two floors of basement parking are for 1,200 cars.

“We are planning to get golf-carts to ferry people inside the campus, said Mr Vishal Doshi, AGM, Marketing and Business Development. Kanakia has sold close to 40 per cent of office space at around Rs 10,000 a sq.ft. The company also offers space on lease at Rs 100 a sq.ft.

VERTICAL GARDEN

The vertical garden looks ‘pinned up' displaying 12,320 exotic plants with a drip irrigation system to water the plants twice a week. The commercial space comes with a bundle of add-ons such as a 616 sq.m club house, gymnasium and cafeteria, exclusively for the inmates.

DEMAND UP

“It is after a long gap that we see demand picking up in office spaces in various locations, thanks to the rapid infrastructure development happening in Mumbai, such as the Bandra-Worli sealink. We are experiencing good demand for small business spaces from the banking, financial services and insurance companies as well as shipping and logistic units, said Mr Mayur Shah, Managing Director, Marathon Group.

With the economy looking up and encouraging financial performance across sectors in the third quarter, the demand for office space is expected to increase in a big way. Upcoming development such as the Metro and Mono rail is expected to further boost commercial spaces demand.

Among various locations, Lower Parel is fast emerging as a hot destination for commercial spaces. BFSI companies are looking for great ambience, hospitality, facility of best restaurants, safety and security measures and unique designs, while buying spaces in Lower Parel, he felt.

Mr Abhishek Kiran Gupta, Head-Research, Jones Lang LaSalle Meghraj, said Mumbai saw the completion of about nine million sq.ft every year in 2008 and 2009, whereas the average annual absorption was six million sq.ft for the two years.

The overall vacancy level across Mumbai is about 14 per cent. Prices, both in the city and micro-markets, had corrected 35-50 per cent in 2008-09.

To keep real estate costs down tenants had moved from the central business district (CBD) to secondary business districts (SBDs) such as Andheri and suburbs such as Malad, Powai, Thane and Navi Mumbai.

Standard Chartered, UBS, Ernst & Young and JP Morgan are among those who chose to shift from Nariman Point (CBD), he said.

Financial centre

A Religare report said BKC had gradually transformed itself from a secondary district to the city's second business district (after Nariman Point) and is set to become India's international financial centre.

BKC's G block, housing leading banks and financial institutions, had secured the Maharashtra Government's nod to increase its floor space index (FSI) from two to four.

However, development in the block was likely to be spaced out due to the high realty prices stemming from the strong, continued demand and improving connectivity to the centrally located business hub.
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Old January 17th, 2010, 12:05 PM   #20
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Space bonanza as unlimited FSI debuts at BKC


MUMBAI: Unlimited floor space index has finally entered Mumbai's commercial real estate industry via the 330-acre G Block of the Bandra-Kurla comples.The Mumbai Metropolitan Region Development Authority (MMRDA) recently sanctioned an unbelievable FSI of 9.34 to the Vijay Wadhwa-owned Raghuleela Leasing to be used on a plot of less than two acres that this developer had bought for Rs 831 crore two years ago. In layman's terms, the developer will be able to construct a 19-storey commercial tower with this unusually high FSI as compared to about 12 floors that buildings in the BKC have because of their proximity to the airport. Wadhwa is to get an additional 3.6 lakh square feet built-up area.

The FSI—the ratio of the permissible built-up area to the plot size—in the BKC was doubled from 2 to 4 some time ago. However, since the FSI in G Block was underutilised, the MMRDA decided to redistribute it among those who occupied plots here in exchange for a premium.

With the airport just a couple of kilometres away, buildings in the BKC are not allowed a height more than 50 to 55 metres. However, with the opening up of the FSI, several developers have now sought the civil aviation ministry's permission to go up to 80 metres. "The civil aviation ministry will decide these proposals on a case-by-case basis," said a senior MMRDA official, refusing to explain what "case-by-case" meant.

It is learnt that chief minister Ashok Chavan has written to the Centre to allow buildings in the BKC to go up to 85 metres. The Wadhwa Group has already got clearance for 79 metres but has now asked for an additional three metres to construct its tower, The Capital.

TOI has learnt that as many as 18 corporates, developers and government institutions currently based in this area have applied for additional construction rights. Since last year, the MMRDA has approved their proposals and that added 28 lakh square feet of construction space in the G Block. The MMRDA, which controls BKC land, is expected to earn more than Rs 260 crore as premium by granting these rights.

RIL centre going slow

The Mukesh Ambani-led Reliance Industries has got an FSI of 6.13 for its proposed convention centre in the BKC. The company had applied for an additional built-up area of close to 8 lakh square feet over and above the 5 lakh square feet it had been granted. In January 2006, Reliance had created a stir in the real estate market by offering a hefty Rs 1,104 crore for this 5-acre plot.

But MMRDA officials pointed out that work on the convention centre had been very slow. "The plot was purchased four years ago. But there has been very little construction activity since then," an official said.

The convention-and-exhibition centre will consist of five exhibition halls, a convention auditorium to accommodate 2,000 people, conference halls, boardrooms, shops and offices, public areas and car parking space. The commercial complex will be spread over 5.38 lakh square feet of built-up area and will house a multiplex, shopping malls, an entertainment centre, offices and shops, a hotel and restaurants.

Parinee Developers with an FSI of 5.89 and Starlight System with an FSI of 5.97 are among those who have got sanction for additional built-up area in the BKC. G Block of the BKC has about 80 plots. MMRDA officials said 75 of them were occupied.

There are about 300 buildings in the BKC, which have come up in phases since the mid-1980s. It was in 1977 that the state government decided to develop the BKC into a commercial hub to decongest the overcrowded island city, especially the southern tip of Nariman Point. A government report said the region, hemmed in by the Western Railway tracks to the west, the airport to the north, LBS Marg to the east and the Mahim Creek to the south, would probably furnish the "best location for... an alternative centre of business".

The then Bombay Metropolitan Region and Development Authority was given the task of turning it into one. A series of land surveys and feasibility studies later, work commenced on the project in 1982-83 but gathered momentum in the early 1990s.

http://timesofindia.indiatimes.com/c...ow/5454555.cms
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