When you are setting out to purchase the home you always dreamed of and saved for, you obviously wanted something more than just an orphaned, anonymous set of walls in some congested city center. The problem is, that`s all that most residential projects in India offer these days. There is a lot more to the perfect home than good construction, layout and fittings – a residential property needs supporting social and physical infrastructure to become a suitable home. Moreover, the beleaguered city dweller’s heart yearns for the sight of greenery, open spaces and fresh air.
After all, we want our children to grow up in better conditions than we possibly experienced at their age…
In Pune, integrated townships have been seen as the answer to these requirements. However, land constraints, zoning laws and the budgetary considerations that govern property buyers in many areas often do not make the integrated township model feasible. A more practical and feasible alternative is Integrated Residential Projects.
What Are Integrated Residential Projects?
Like integrated townships, this more compact and serviceable model offers home buyers everything they need for a comfortable and healthy lifestyle. Children have enough room to play in, and both they and their parents are free from the stress, noise and pollution of central urban life. Such projects have schools, shopping and entertainment facilities, healthcare and easy access to public transport.
Read more: Money Control
Centre’s realty Bill could make homes more expensive
The Real Estate (Regulation and Development) Bill, 2013, could push up the costs of operations for realty developers and make houses expensive, according to sectoral players.
According to the provisions of the Bill, developers cannot launch projects without getting all approvals from the authorities. Plus, they need to deposit 70 per cent of funds collected from buyers in a separate bank account.
While these provisions are meant to protect the interests of home buyers, realtors fear these could turn out to be a headache.
“The Bill says developers cannot launch project without getting all approvals,” said Pradeep Jain, chairman of Delhi-based Parsvnath Developers. “Without pre-sales, investor sales and so on, the holding cost of developers will go up. The end-consumer will have to bear every cost increase. Together with the land acquisition Bill and the real estate Bill, I believe housing prices will go up by 30-40 per cent.”
Sanjay Dutt, executive managing director of Cushman & Wakefield, said: “The Bill might create an upward pressure on prices. There will also be some cost implications, as developers might have to wait to launch their projects with due approvals in place.”
Read more: Business Standard
Real estate bill will empower consumer
Five years or so in the making, the Real Estate Regulation and Development (RERD) Bill has finally been cleared by the Cabinet.
Developers had originally resisted the move to be brought into a regulatory framework, arguing that there were already too many municipal and planning regulations that were applicable to them. So, the genesis of the bill needs to be recalled to put things in perspective.
The Bill is essentially a consumer law. The main difference between the existing consumer laws and this one is that movable consumer items are invariably manufactured before the consumer pays for the item while that is not true for immovable goods like property and buildings. So, in the former case, the customer can see, touch and feel the product he buys; he has ISI and other standards to refer to for checking specifications and performance before he buys; and, what’s significant, he buys after the item has been produced.
Real estate, on the other hand, is immovable. So, the customer has been getting only promises when he booked his dream house. He would leave it to the developer to decide when he would get that much coveted house, specifications to be followed, facilities to be provided, how municipal and other laws were to be complied with, and when and how the infrastructure necessary to make the product liveable would be provided.
Read more: Times of India
New RBI norms on restructured loans positive for most banks: Moody’s
The Reserve Bank of India’s new guidelines on higher provisioning for restructured loans is credit positive for India’s banks, global credit rating agency Moody’s Investors Service has said.
The RBI had in end May issued new guidelines on restructuring advances by banks and financial institutions, which require banks to raise their provisions on restructured loans to 5 per cent from 2.75 per cent currently.
The higher provisioning is credit positive for India’s banks because it increases their loss-absorption buffers and incentivises them to enhance their underwriting standards to reduce credit costs, Moody’s said in a note to its research clients.
In Moody’s view, the authorities’ focus on provisioning guidelines for restructured loans reflects a more proactive management of the asset cycle.
Indian banks’ restructured loans have increased in the past two years and 15-25 per cent of restructured loans eventually slip into non-performing loan classification within 12 months of restructuring.
Read more: Business Line
Attrition in India to top world charts in 2013; one in four employees to change jobs
One in four employees in the organised sector in India is set to switch jobs, the highest attrition rate globally, according to a Hay Group study. The series of fresh investments planned across sectors could raise demand for talent even as economic conditions remain tepid, raising concerns on employee engagement and retention.
“We are in the eye of an employee turnover storm. Organisations in India must give serious thought to what drives employee commitment,” says Mohinish Sinha, leadership and talent practice leader, Hay Group India. Firms need to focus on employees with mission-critical skills, as well as high-potentials and those holding crucial roles, he adds.
Employee turnover is predicted to rise to 26.9% in 2013 with an employee base of Rs 3 crore compared with 26% in 2010 on an employee base of Rs 2.8 crore, according to the study, ‘Preparing for Take-Off’, conducted in association with the Centre for Economics and Business Research. It covered 700 million employees in 19 countries.
Read more: The Economic Times
India Clarifies Rules on Retail-Sector Investment
Foreign companies that want to open supermarkets in India must build new infrastructure such as cold-storage facilities and warehouses, the government said Thursday, clarifying some of the rules it announced last year while lifting a ban on overseas investment in multibrand retail.
Under the rules India announced in September, companies must invest at least $100 million to set up supermarkets. Half of this investment should be in supply-chain infrastructure, the government said at that time, without clarifying whether companies can acquire existing facilities.
This as well as lack of clarity on rules such as on compulsory local sourcing created confusion with foreign retailers like Wal-Mart Stores Inc. WMT +0.93% and Tesco TSCO.LN +0.45% PLC asking the government for more details.
In a note clarifying the rules late Thursday, the Department of Industrial Policy and Promotion said foreign retailers cannot acquire existing facilities to fulfill the rule on infrastructure investment.
The note said companies must source at least 30% of the value of their retail sales from local suppliers. Companies like Wal-Mart already have wholesale operations in India—100% foreign ownership is allowed in wholesale business—but sales through such stores won’t be counted, it said.
Read more: Wall Street Journal