GHB defers Ahmedabad housing schemes

July 03, 2013

The wait has got longer for those aspiring for a house at the schemes of Gujarat Housing Board (GHB) in Ahmedabad. Change in usage type, higher cost quoted by bidders for construction and provisions in the new revised Development Plan (DP) have delayed three residential schemes in the city.

GHB had announced the launch of seven residential schemes for lower income group (LIG), middle income group (MIG) and higher income group (HIG) in the four major cities of the state before the assembly elections. It had also floated tenders for the seven projects, three in Ahmedabad, two in Rajkot and one each in Vadodara and Surat. Of these, work has already started for projects at Munjka in Rajkot, Tarsali in Vadodara and Ganeshpura in Surat. However, the schemes planned in Ahmedabad have been stalled.

The bidders had quoted 5% to 17% higher price compared to the ‘already high’ estimated project cost for Hathijan-I, Hathijan-II and ‘transport node’ projects in Ahmedabad. Therefore, fresh tenders would be invited. Moreover, instead of the earlier plan of a 3-BHK residential complex for HIG at the transport node in Naranpura, GHB plans to come up with a residential-cum-commercial scheme at the site.

The location of transport node has potential for commercial-cum-residential project, so why should we waste the opportunity, commented a senior office-bearer of GHB. During the discussion period, a mixed development plan at transport nodes was suggested, but the officials did not pay heed, he said, adding that the Board, therefore, rejected the proposal.

GHB also seeks to benefit from the higher ground coverage offered as per the new General Development Control Regulation (GDCR) of the DP, which proposes to increase ground coverage from 30% to 51%. “We are also exploring options to benefit from the new GDCR to bring down construction cost by reducing the height of the building,” said a senior official of GHB.

Under the circumstances, GHB will have to entirely revise its outline for the three schemes, resulting in a delay in implementation.

While planning the LIG housing scheme in Hathijan, GHB will have to consider the impact of the proposed affordable housing zone in one km area along SP Ring Road. If GHB’s price is too high, people might opt for schemes launched by private developers.

Unsustainable housing price rise....

June 04, 2013

According to the Reserve Bank of India’s House Price Index, residential property prices in India have grown at a compounded annual growth rate (CAGR) of 21.4% between the first quarter of 2009 and fourth quarter of 2012.

Further, there has been a large divergence between growth in metro1 cities (CAGR: 24%) and non-metro2 cities (CAGR: 15%).

Nomura points out that the growing divergence between metro and non-metro prices cannot be solely due to supply factors. It also appears to reflect growing investment demand, which is typically concentrated in large metro cities due to higher liquidity. In contrast, the economic slowdown over the last few years has likely affected real demand in non-metro cities.

Given the elevated house prices, subdued job markets and lower household incomes, real demand should remain subdued.

Consequently, in the absence of real demand, investment demand alone may not be able to sustain the excess return in metro cities. 

Ref : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=23583&cat_id=1

Few takers for affordable housing scheme in Mumbra

April 16, 2013

The response to state government's rental housing scheme.

aimed at stemming slum proliferation and preventing unauthorised structures from sprouting in the city's metropolitan region, has so far been dismal in the Mumbra-Shilphata belt, an area that probably needed the scheme the most.

There have been just two proposals from developers in this region for creating affordable houses under the rental housing scheme. Of the two, only one could be approved as per norms.

"The scheme was market-based. Wherever there was enough market demand, real estate developers submitted proposals to construct houses under this scheme. The response in the Mumbra-Shilphata region in particular might be low because, from what we understand, developers tend to agglomerate in clusters and probably there is paucity of continuous stretches of vacant land there," said Uma Adusumilli, chief of the rental housing project, being implemented by MMRDA.

Earlier this month, the collapse of an illegal building in Mumbra had brought to light the rampant growth of unauthorised structures in the Mumbra-Shil Phata belt.

The sole scheme approved in this region is by the Dosti Group at Mumbra junction. It is likely to yield about 1,800 units for affordable housing. The only other proposal could not qualify as the developer did not have a continuous plot.

Rajesh Prajapati, president of MCHI-CREDAI's Raigad unit, said the price builders get in this area is lower than the cost of construction that they incur in a rental housing project.

"To use the FSI of 4 under this scheme, the building has to be at least 30-storeyed and the cost of construction comes to at least Rs 3,000 per sq ft. Looking at the cost overruns and other issues, the cost that the developer will want to sell at will be Rs 5,500-6,000 per sq ft. The market is not able to sustain such a high price," Prajapati said. He added that the soil in that region is mostly clay and a building foundation has to go very deep, raising the cost of construction.

The rental housing scheme was floated in October 2008 with the intention of creating five lakh affordable houses within five years. However, so far MMRDA has approved only 54 schemes across MMR.

Only 25 of these have got commencement certificates and are at different stages of construction. These are expected to yield 45,000 units. There are about 140 proposals under scrutiny.

Clearance of new proposals is currently sluggish as MMRDA is awaiting Chief Minister's nod to make changes in the scheme, mainly changing the nature of the project from rental to affordable housing. Other changes include increasing the size of tenements to 300 sq ft from the current 160 sq ft. 

Now smaller cities can also pitch in for a Metro..

The Union Urban Development Ministry, which has been urging cities with two million plus population to pitch in for a Metro system, is now considering extending the efficient mass transit system to cities with lesser populace.

The proposal stems from the need to decongest cities, enhance the ease of commuting on public transport and to improve the link between the suburbs and the main city centres. If the proposal gets approved, more than 50 cities with a million plus population in States like Tamil Nadu, Madhya Pradesh, West Bengal, Maharashtra, Gujarat and Jammu and Kashmir among many others will benefit.

As on date, the two million plus population cities are being encouraged to send proposals for a Metro system, but with smaller cities showing interest in the Metro, the Ministry is contemplating relaxing the norms and drafting a common set of rules for all Metro projects. The cities with less than two million will, however, have to fulfil the requirements of finance and footfalls.

Indore for example has recently invited tender for drafting a detailed project report on the feasibility of a Metro.

“Why should a Metro system be planned only on the basis of the population within the city? We need to look at bridging the gap between the suburbs and the city, bringing people from far to within the city centre. The idea of a Metro was to offer the lower and the middle classes who stay outside the city limit an efficient transport system,” said an official of the Ministry.

The proposal also complements the requirement of another scheme – transit-oriented development which is being implemented in several cities, including New Delhi, with the aim to decongest cities and develop suburbs and satellite towns.

Cities with under two million population will have to prepare a detailed project report and show adequate means of funding and prove that the passenger traffic of at least 4,000 persons per hour per direction will be met.

“They will have to follow the prevalent pattern where the Centre pitches in with 20 per cent of the funds, 50 per cent will have to come from them and the remaining will have to be raised through loans. We encourage public private partnership mode of operation and they will have to prove the project is viable,” the official said.

The Centre will also reimburse 50 per cent of the money spent on preparing the DPR. “But the initiative to have a Metro has to come from the city and the State, the Ministry can only help with funds and other provisions,” the official said.

Among the cities that have submitted a DPR and are awaiting the Centre’s nod are Ludhiana, Chandigarh, Ahmedabad and Pune.

Source :  http://www.thehindu.com/news/national/now-smaller-cities-can-also-pitch-in-for-a-metro/article4597840.ece