Posts Tagged ‘Kerala Development’

Mixed response to building rule modifications

July 22nd, 2010

The decision of the State government to modify some of the amendments made to the Kerala Municipal Building Rules, 1999, a few months ago has brought some relief to property developers in Kozhikode.

A few restrictions on constructions of buildings close to roads have been relaxed indicating that builders will revive some of their stalled projects as well as launch new ones in the city. The revisions have been in the access width for high-rise buildings, which normally is more than 15 metres from the ground (or over four floors).

The required access width of roads to multi-storey buildings, both residential and commercial, in the past was only five metres. But it was amended based on number of the units — a building with 25 flats should have a minimum access width of seven metres; 50 flats, nine metres; 75 flats, 12 metres; and 100 units or more, 15 metres.

Now the access width has been reduced on all categories and the total space of the buildings, whether small, medium or industrial, will also be considered.

The parking areas have also been reduced considerably by 15-30 per cent. “The revised rules are quite reasonable enabling the builders to go ahead with projects,” says M.A Mehaboob, secretary, Confederation of Real Estate Developers Associations of India (CREDAI), Kozhikode chapter.

A parking lot for two flats each below 100 sq.m and one for each unit above 100 sq.m is acceptable. Earlier, the rule insisted on having two parking lots, one for guest parking, for any single unit in an apartment.

Another is concerning the digging of ground for construction of basements. The amended rule maintained that a builder should obtain a no-objection certificate (NOC) from the neighbour if the depth is 1.5 metres or more or the measurement exceeds the length from the boundary wall.

Mr. Mehaboob says the rule of getting an NOC for digging purpose has been dropped and instead a committee constituted by the Corporation or civic body will look into complaints, if any.

However, a new provision has been brought in regarding the construction of a dedicated road inside the premises of high-rise apartments for fire tenders. The rule, applicable for commercial and housing buildings, has to be enforced even if a public road exists. Besides at least five metres should be left vacant on all sides of the high-rise buildings.

FAR

The Floor Area Ratio (FAR) has been left unchanged (If the floor area of a house is 2,000 sq.ft and land area is 3,000 sq.ft, FAR is 0.66).

The new rule says that builders can increase the FAR only up to 2.75, after remitting an additional fee. It will be Rs.500 per square metre for FAR between 1.5 and 2, and Rs.1,000 per square metre for between 2 and 2.75. Earlier, FAR for residential buildings was 3, giving property developers a wide option in planning buildings.

The coverage of high-rise apartments has also been considerably reduced.

Only 60 per cent of the land available should be covered by buildings having six to 50 units. Only 55 per cent of the land can be used for building having units between 51 and 100; 50 per cent for buildings having 101 and 200 units. The construction should be restricted to 45 per cent for apartments having 200 units and above.

Builders say that overall the new rules will support the construction industry but only to a limited extent as the amended FAR has been left untouched.

Several new projects in the city and the suburbs have been put on hold following the new rules. “The concept of affordable housing will only remain on paper if the government does not further revise the FAR rules, ” Mr. Mehaboob says.

Already builders are thinking of increasing the rates by Rs.250-500 per square foot from the existing rates. The new rule will increase expenditure for builders.

Even so builders can rejoice as the government has reduced the stamp duty. The effective rate of stamp duty, surcharge and registration fee in Corporation areas is now 11 per cent; in municipality, township and cantonment areas to 10 per cent; and in grama panchayat areas to 9 per cent.

A further reduction in stamp duty has been provided for environment-friendly housing projects.
News Published Under:  The Hindu

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Posted in Infrastructure Development, Kerala Real Estate

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Kochi eco-township project evokes interest

November 21st, 2009

Nearly 15 firms have responded to the international competitive tenders floated by the Kerala State Housing Board in August to find a consultant for the technical and commercial evaluation of the eco-township project proposed on its prime land at Marine Drive in Kochi.

The firms have been told to submit expressions of interest, along with the technical and the commercial bids. The project, together with those in Thiruvananthapuaram and other locations, is expected to take the board’s growth into a new direction.

A. Rahmatulla, Chairman of the board, told The Hindu that the valuation of the bids would be completed in about a fortnight’s time. The project would come up on 17.9 acres (one acre = 0.4 hectare) of land under a joint venture or a public-private partnership through a special purpose vehicle.

Feasibility study

The consultant will prepare a techno-commercial feasibility study for the development and the commercial exploitation of the property. The board expects an upfront fee of at least Rs.260 crore and a minimum investment of Rs.1,000 crore.

The consultant is expected to do a market study and a demand assessment, prepare a conceptual design conforming to the rules and regulations, form the special purpose vehicle and select development partners through an international competitive bidding.

Mr. Rahmatulla denied the allegation that the project would harm the environs of the Mangalavanam bird sanctuary, saying the property is further away from the sanctuary than many other high-rise buildings that had come up in its proximity.

The board, he said, has made it amply clear in the call for expression of interest that the developer should consider the ecological aspects of the project as a priority.

The invitation for expression of interest said: “The development shall be with utmost consideration for the ecology of the Mangalavanam Bird Sanctuary.”

The board has said that there are several high-rise buildings, many with more than 10 storeys, in the vicinity of Mangalavanam and objecting to the board’s project alone sounds harsh.

Mr. Rahmatulla said the work on the project would begin only after the mandatory clearances were obtained.

M.K. Prasad, environmentalist and former president of the Kerala Sastra Sahitya Parishad, has said that the project will be detrimental to Mangalavanam, considered the lungs of Kochi.

The combine of trade unions at the board has said that the board is aware of the concerns expressed in the media and the ecological aspects of the project will be considered.

In a press statement, the trade union leaders alleged that vested interests might be behind spreading unfounded concerns over the project.

They drew attention to the board’s services in providing affordable houses to the poor. However, the board had run into financial difficulties for various reasons, such as the recent writing off of the dues. Strengthening of the board was imperative to meet the housing requirements of the economically weaker sections.

With this view, they said, the State government, in the budget for 2009-10, proposed a project on the Marine Drive property and such other lands. Sufficient thought has already gone into the ecological aspects.

The project is among the several envisaged by the board, which is looking to revive its fortunes.

The proposal is for the development of around 100 acres of its land spread across the State. The projects are envisaged to bring in investments of more than Rs.2,000 crore.

The projects include those planned at Kaloor in Kochi, at Akkulam, near Thiruvananthapuram, in Kozhikode and in Thrissur.
News Published Under:  The Hindu

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Posted in Cochin Real Estate, Infrastructure Development, Kerala Real Estate

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Scepticism persists in the area of affordable housing

November 21st, 2009

If the global recession forced IT firms to cut down on their expenditure, renegotiate or cancel their deals, reduce employees’ intake and office space as well, it made real estate developers to come out with affordable housing for those in the bottom end of pyramid.

Soon affordable housing became the industry’s buzzword and houses in the price range of over Rs.40 lakh were described as affordable.

But investors started to quiz about those in the Rs.25-40 lakh brackets.

At a recent meeting on “South India real estate – the way ahead” organised by Confederation of Indian Industry, the end-users said that there was hardly any drop in the housing prices and sought the reason from the developers for selling land at abnormally high costs, even though it was procured at cheaper prices.

To this, the developers said that the land resources was limited and the prices were fixed based on the demand-supply factor.

Since there has been a mismatch, the prices were on the rise. But, the end-users were not convinced. As a next step, the developers urged the State government to allocate lands to them at low cost for development.

Vikram Kapur, Member Secretary, Chennai Metropolitan Development Authority (CMDA), said that Government lands were not available for housing in Tamil Nadu, particularly in Chennai.

On the flip side, the CMDA planned to develop large parcels of land by partnering with farmers to avoid legal tussles.

The developed land would be given to public sector for development of housing on a large scale.

Kumar Gera, Chairman, Confederation of Real Estate Developers’ Association of India (CREDAI), attributed the high land cost and taxes as key factors that impacted the development of affordable housing.

Extend boundary

R. Sellamuthu, Additional Chief Secretary and Housing Development Commissioner, Tamil Nadu, said that to avoid people migrating to city and to meet the ever-growing metropolitan needs, it was planned to extent the boundary of the Chennai Metropolitan Area to 1,500 sq.km from the present 1,182 sq.km.

After a decade or so, this boundary line would be extended to 2,000 sq.km.

The boundaries of other cities in the State will be expanded. Besides, total transport mobility will be in place in the next five to six years to offer better, cheaper, safer and quicker transportation.

Immediately, the topic changed to affordable office space. R. Siddarthan, Centre Head – Infrastructure, Tata Consultancy Services, mentioned that the company closed down their facility in Vadapalani and moved people to its premises on Rajiv Gandhi Salai.

It was unthinkable in other times as people would have simply refused to move. “It was a wrong way of long-term planning to meet the infrastructure needs. For the Q2 2010, our net addition to manpower was 1,692 or 1.21 per cent and office space was 76,140 sq.ft or 1.21 per cent. We haven’t thought about 2010 graduates,” he said.

To meet the space requirement, his suggestions were: reduce flexibility, but remain agile; change the way of long-term planning to meet infrastructure demands, look for more options; revisit or re-do the contracts; consolidate space requirements and improve efficiency.

Today building value and rentals are done based on current market conditions rather than the past transactions and there was a likelihood of being overvalued in a downturn. Developers will have to adjust to new market conditions, if they have to survive, the speakers said.

Ramesh Nair, Managing Director, Jones Lang Lasalle Meghraj, said that a study of Singapore market revealed that upward trend lasted for three-four years and downward trend for two to three years.

“Recession had impacted every single market in the world. The worst is over and recovery would start by mid-2010 and it will be stable during 2011 and 2012,” he said.

News Published Under:  The Hindu

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Posted in General, Kerala Real Estate

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Public bodies coming up with housing projects

November 21st, 2009

Several government, quasi-government and cooperative agencies are coming up with new housing projects as the concept of affordable housing gains prominence in the State.

In the past one year or so, many of these agencies had shied away from construction projects, the reason being the downturn in the real estate sector. But, more that a decade ago, the Kerala State Housing Board and cooperative societies such as the Ko zhikode Bhavana Nirmana Sahakara Sanghom (house construction cooperative society) had made a mark in the real estate market. However, they seemed to have run out of steam with the coming of private builders.

The housing board has now drawn up a proposal on a build-share-transfer basis on 65 cents (0.25 hectares) of land at Chevarambalam in Kozhikode city. Tenders have already been invited from private builders for constructing either residential complexes or commercial-cum-residential complexes. The builders will be short-listed soon based on the bids, says Jacob John, Executive Engineer, who is the Regional Engineer in-charge.

Selection criteria

One of the basic requirements is that the builder should have designed and executed similar projects, at least three of them, within a three-year period.

The project cost is Rs.15 crore. Construction activities will be on the basis of the existing rules of local bodies. The selected builder should complete the project within a stipulated period, he says.

The company will be selected for the project based on the highest quantity of shares it offers to the board. The ownership of the project will be with the housing board, but the builder can do business, he says.

Mr. John says the proposals for build-share-transfer and private-public participation projects have also been envisaged on 12 acres (one acre = 0.4 hectare) of land near the medical college.

Foraying into the construction sector, the Calicut City Service Cooperative Bank has announced a Rs.12-crore construction project at Chalappuram. The proposed cooperative complex will be constructed at a cost of Rs.12 crore.

Four floors, with an area of around 12,000 sq ft, of the complex will be entirely utilised for the head office of the bank and a farmers’ centre, says P.A. Jayaprakash and T.M. Velayudhan, directors of the bank.

Fifty flats will be constructed on the remaining floors of the 14-storey complex. The total area will be more than 71,000 sq ft. Earlier, there was a proposal to construct office spaces and a head office. The bank is yet to work out the details of allotting the flats, Mr. Velayudan says.

The cost of the project will be recovered through sale of the apartment area, he says.

Earlier, the housing board has been spearheading big projects in Kozhikode city. Hundreds of dwelling units thus have come up in places such as Chevarambalam, East Hill, Chevayur, Bilathikulam, Chakkorathukulam and Malaparamba. The boom in the realty sector two years ago saw several allottees occupying the flats at reasonable rates. Some have brought them for investment purposes. By returning to the housing sector once again, the housing board is providing an opportunity to middle-class people to get reasonably priced homes.

The sanghom is searching for land in the city for new projects. It had constructed more than 550 units in various places in a span of 30 years, says K.M. Radhakrishnan, secretary.

The Gandhi Nagar and Vrindavan Colony were the first villa project constructed under the cooperative society in the city.

The society has constructed flats at Eranhipalam and Chintavalappu. The villas are at Chevayur, Hill View, Vidya Nagar and Field View. Devi Nagar at Bilathikulam; Ullas Nagar at Pottamal; Giri Nagar on Florican Hill Road; Netaji Nagar at Kottoli and Kairali Nagar on Florican Road are the other projects.

The housing societies target the middle class. The projects of cooperative societies get the benefit of stamp duty waiver. Many say these are affordable.

News Published Under:  The Hindu

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Posted in Government, Infrastructure Development

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Towards houses for all

October 23rd, 2009

Recognition of housing as a basic right of every family is the theme of a memorandum being submitted by the Kerala State Housing Board Employees’ Association to the Union government through the Indian National Trade Union Congress (INTUC).

Why cannot the government come forward to amend the Constitution to protect the right of the citizens to have a decent shelter was the fundamental question raised in the paper, submitted at the 29th plenary session of the INTUC in the city early this week.

With the government having introduced steps such as the National Rural Employment Guarantee Programme, the National Health Insurance Scheme and compulsory primary education for all children, it is expected that the issue of housing will be addressed with the seriousness it deserves, said the paper, submitted at the session by Vithura Sasi, working president of the association.

The government cannot shy away from its responsibility to provide affordable housing for all, especially the weaker sections of society, said E. Sankaran Potty, general secretary of the association, explaining the contents of the proposed memorandum. According to figures provided by the association, there will be a shortage of 24.71 million housing units in the country in the near future.

The paper quoted a study by the Associated Chambers of Commerce and Industry of India, which said that despite the current slump, demand for housing would become “stronger and more intense” with rising income, a swelling middle class and rapid urbanisation. At present, the housing shortage is 19.4 million units in the country, of which 6.7 per cent is in rural areas.

News Published Under:  The Hindu

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Kerala set to open first phase of Rs.600-cr IT park

September 19th, 2009

The first phase of the Rs.600-crore Koratty information technology park in Kerala, being set up as part of the state government’s plan to open IT parks in all districts, will be opened Oct 10.

The project, coming up on 42 acres in Koratty in Thrissur district, is one of the fastest developed IT parks in the state, Siddhartha Bhattacharya, chief executive of Infopark Kochi, which is developing the project, told IANS.

“The 42-acre plot that was given to set up the park earlier housed the Madura Coats factory. In just seven months of taking over the land, we refurbished the 14 villas that existed over there. There is also an old club house, which has been modernised,” said Bhattacharya.

Eight villas and the club house are ready now and 10 companies which would employ 400 professionals are all set to function from here, he added.

The remaining six villas would be ready in the next few months.

“The rates here are so cheap that we offer plug and play facility at Rs.30 per square feet. Those who want semi-furnished facilities, the rate per square feet is just Rs.15,” Bhattacharya said.

The prevailing rates at the Infopark and the Thiruvananthapuram-based Technopark are around Rs.45 per square feet and upwards.

In the second phase development, the government plans to set up a 200,000-square feet IT building, incorporating the green building concept.

“This new signature IT building will be designed to provide a beautiful and inspiring atmosphere and once complete there would be more than 6,000 professionals working at the Koratty IT park,” Bhattacharya said.

In May last year, the state government announced that IT level parks would be developed under private-public partnership model in all 14 districts.

In the first phase, IT parks would come up in Kollam, Alappuzha, Thrissur, Kannur and Kasaragod districts.

Currently, IT companies operating in the state are based either at the Technopark or Infopark.

Nearly 150 companies are operating in the Technopark. They employ close to 20,000 people, while around 40 companies that employ nearly 8,000 people are in the Infopark.

News Published Under:  Manorama Online

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Kerala finds a place in NLRMP

September 12th, 2009

Revenue Minister K.P. Rajendran says this is a signal that Kerala is moving in the right direction. He tells K.A. MARTIN that the first instalment of Rs.5 crore is welcome. 

Revenue Minister K.P. Rajendran has welcomed the decision by the Department of Land Resources under the Union Ministry of Rural Development to put Kerala among the first four States to get Central funds for the ambitious National Land Records Modernisation Programme (NLRMP).

He told The Hindu on Friday that this was a signal that Kerala was moving in the right direction in modernising and computerising land records.

Mr. Rajendran said that Kerala would need more money to achieve the goal of total computerisation of land records and the first instalment of Rs.5 crore was welcome.

Along with Kerala, West Bengal, Meghalaya and Madhya Pradesh have been chosen for receiving the first instalment during the current financial year.

The NLRMP will help computerise the entire process of property transaction records and network revenue offices.

The Revenue Department had submitted a detailed project report under the NLRMP for 2009-10 at an estimated cost of Rs.6 crore. This was approved by the Planning Board and funds allotted in the State Budget.

Besides, a detailed project report for the work at an estimated cost of nearly Rs.30 crore was submitted to the Union government.

The Revenue Department is expected to complete data entry, revalidation and training of officials and networking of offices in a time-bound manner.

The department has selected Pathanamthitta, Kottayam and Alappuzha districts for the first phase of activities.

In the second phase of computerisation of land records, Kollam, Ernakulam, Thrissur, Palakkad and Wayanad have been chosen.

The NLRMP emerged out of two Centrally sponsored schemes — computerisation of land records and strengthening of revenue administration and updating of land records.

The main aims of the NLRMP are to usher in a system of updated land records, automated and automatic mutation, integration between textual and spatial records, interconnectivity between revenue and registration offices and replacing the present deeds registration and presumptive title system with that of conclusive titling with title guarantee, says information posted on the Land Resources Department web site.

Committee

The Union government has constituted a committee on State agrarian relations and the unfinished task of land reforms in January 2008.

The basic belief behind launching the land records modernisation programme across the country is that effective management of agrarian relations and good land administration are key to economic development and poverty eradication.

News Published Under:  The Hindu

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