How to paint cinder block

a. Surface Preparation:

• if efflorescence is present, remove by hand wire brushing; wear eye protection and gloves; try to identify and eliminate any source of water from behind the block that could have caused the efflorescence
  
• scrape out and widen any cracks; brush out dust, and seal with 100% acrylic or siliconized acrylic caulk; make second application in several hours if needed; check mortar joints carefully and repair or re-point as needed; wall and chimney caps must be sound and continuous; chimney flue should have rain cover
  
• treat any mildew with a 3:1 water:household bleach mixture, leaving it on for 20 minutes and adding more as it dries; wear eye and skin protection; rinse thoroughly
  
• remove dirt, chalk, dust, unbound sand, treated mildew, etc. by scrubbing with detergent and water, and rinse thoroughly; or power wash with plain water, taking care to not drive water into cracks or mortar joints

b. Priming:

• priming is necessary to ensure maximum durability and resistance to efflorescence, alkalinity and mildew
  
• use quality exterior latex primer that is recommended for masonry
  
• do not leave a primer unpainted

c. Painting:

• use top-of-the-line exterior 100% acrylic latex house paint in flat, satin, or semigloss finish, depending on appearance desired; or a quality latex masonry paint

6 things to consider before bidding for a paint job

1. When getting prepared to do painting estimates you first need to know your target market or markets. Are you going to be painting in middle-class neighborhoods or are you going for the high-end glitzy neighborhoods?

Are you going after commercial accounts, industrial, etc.? Only then can you best gauge how high you are going to set your painting estimate rates. High-end, low-end or a middle-priced.

Personally, when it comes to painting for residential customers, I keep my rates the same. I don't care if it's high-end or middle class. If they cannot afford my painting services, I am out of there. Once you have painted at a higher price, it's hard to go low unless of course, you are hard up.

If you are estimating painting jobs for big business you can aim extremely high without much competition as you would in residential painting. Plus larger commercial customers have deep pockets. Also, if you are tackling those types of accounts you will need extra painters anyways so you should be able to aim high in your bidding to cover their wages and benefits.

2. You need an accurate estimating method that works perfectly every time without fail. Whether inside or outside. You can stand and stare at a project all day and try to guesstimate exactly how long it will take you to paint something or you can use an accurate method for bidding paint jobs and walk away smiling and not wondering if you just bit the bullet.

3. You need to allow for fuel, travel time and even the government's cut. If your going to be driving long miles you definitely want to account for fuel and travel time, even overnight expenses if you get that radical in your business. Again, if you have employees you will need to account for their wages and benefits in your bids also.

4. You need to be aware of hidden expenses or projects that add extra time and extra materials to a job. Things like hard to cover colors, excessive prep time, high-work, down time due to outside sources that are common in new construction, etc.

5. You need to know how much paint and materials you will be using. (Note: A good estimating system can automatically include all your paints and materials.)

6. Your estimating system should be based on three basic ways of estimating. Just like a set of golf clubs, some times you need a different driver to make it on to the next green. Different jobs require different painting estimating techniques.

For example: painting ceilings, walls and woodwork estimating can change if you have excessive woodwork like walk-in closets with tons of shelving. Or rooms with high walls.

The same goes for exterior work in residential painting. Are the surfaces smooth and clean or is there stucco or shingles that require extra time and materials? When you have an easy system in place you can build up an estimate to meet the type of project you are facing.

India's biggest commercial realty deal at BKC

‘Result too large to display’. As mobile phone calculators flashed this message, over two dozen people assembled outside the sixth floor conference room at the MMRDA headquarters scrambled to make sense of the mind-boggling bids for three plots in the Bandra-Kurla Complex (BKC) on Monday evening, reports the Times of India.

It took minutes of brain-wracking to finally realise that India’s biggest commercial land deal had just been struck, leaving the Mumbai Metropolitan Region Development Authority (MMRDA) richer by Rs 2,790 crore. TOI in its Monday edition had predicted that these plots would fetch nothing less than Rs 2,500 crore.

The three plots totalling barely six acres in size, are mainly reserved for commercial/office space and a car park. Bidders who won each of the three plots are Mukesh Ambani’s Reliance Industries, the Wadhwa Group and a joint venture between Purnendu Chatterjee promoted-TCG Urban Infrastructure and Hiranandani Group.

But what sent shock waves in the real estate industry was the phenomenal price quoted by the Wadhwa Group for plot no C-70 behind ICICI building in BKC. The less than two-acre land fetched Rs 831 crore or Rs 5.04 lakh per sq m.

This is almost two-and-a-half times the reserve price of Rs 1.53 lakh per sq m set up by the MMRDA. Wadhwa’s bid works out to Rs 46,800 a square foot. Real estate sector experts say this is by far the largest amount per square foot for the purchase of commercial property in the country. In comparison, the current property prices in the BKC for a finished office space is Rs 35,000 a square foot.

To put the stunning price paid in perspective, Wadhwas have paid well over Rs 400 crore an acre whereas Reliance Industries had paid a shade less than Rs 60 crore an acre for the last mega deal at BKC (in January 2006).

‘‘We paid this price because of the strategic location surrounded by garden from three sides. It is a peaceful environment,’’ said Vijay Wadhwa, promoter of the Wadhwa Group, in a late night SMS to this newspaper.

Earlier in the evening, Wadhwa told TOI that he is looking at a profit margin of about 10-15%. ‘‘We already have committed clients including multinationals and diamond merchants, who missed the bus in booking space in the upcoming Bharat Diamond Bourse in BKC. We will sell the building outright once its constructed,’’ he said.

‘‘We are not surprised by these rates. There is tremendous demand for good quality office space in BKC,’’ said Roopesh Kaul, chief operating officer of the Maker Group.

How to choose exterior home colors

Transcript
How to Choose Exterior Paint Colors
Hi! I'm Jackie Craven, a Guide to architecture at About.com. Grab a color wheel or some paint swatches. Today were gonna pick new colors for your house.
Choose Paint Colors That Compliment the Roof
Begin with colors suggested by your roof. Your house doesn't have to match the roof, but it should harmonize. Also consider other features you don't plan to paint, such as masonry or vinyl windows.
Coincide the Colors With Surrounding Houses
Choose colors that coordinate with buildings around you. My neighbor's house here is golden rust. I need colors that don't clash.
Consider Matching Outdoor Paint With Interiors
The colors you've used for interior room may suggest ideas for colors outside your house. I like the green in this sofa cushion.
Use a Historic Paint Color Chart
If you're painting an older home, you may want to select colors from a historic color chart. Or you can try to find out what colors were used on your house before you moved in. According to old photos my house was painted dark green and white. For a while, it was boring beige final siding.
Try Painting With Various Shades
Most houses use at least three different colors: one for the siding, and two or more for trim and accents such as doors, railings, and window sashes. Darker colors are great for accenting recess spaces and window sashes. Lighter colors will highlight details that project from the walls surface.

Don't be afraid to experiment with color combinations. You can use a virtual painting program to preview your house colors. Or, you can photo copy a sketch of your house and try different color combinations.
Test the Paint on Your House
Before you buy gallons of paint, test a spot to see if you like the color. I don't know, this looks pretty blah to me, I need a darker color for this house. Be sure to look at the colors at different times of the day.
Choose Paint Sheen
You thought you only had to pick colors? Sorry, in addition, you'll also have to decide on the sheen of your paint. Glossy, semi or soft gloss, or flat. I like to use a glossy finish for columns and window sashes and a soft gloss for siding. Its so easy to clean.

And here it is! Thanks for watching. To learn more visit us at about.com.

Making green choices when you paint

Painting is of the quickest ways to give your home a new look. Whether it's just a bathroom or the whole house, it's an easy way to remodel. Now you can make environmentally-sound choices when you select the paint for your next project.

Choose a low or no-VOC paint

VOCs (volatile organic compounds) are the fumes that you smell while you paint, and sometimes several days after. A VOC is an organic chemical that becomes a breathable gas at room temperature. Some examples are benzene, ethylene glycol, vinyl chloride and mercury.

VOCs in paint usually come from additives to the paint, such as fungicides, biocides, color, and spreadability agents. High levels of VOCs in paints can cause headaches, allergic reactions, and health problems in the very old, very young and in those with chronic illnesses.

Concerns about air pollution and hazardous waste have greatly reduced the use of oil-based paints which can release high amounts of VOCs and contain toxic solvents. Alkyd-based paints and latex paints are much safer, but some still have high levels of VOCs.

Because of health and safety concerns, paint manufacturers around the country have made great strides in formulating paints that have no or low-VOCs and that provide excellent results.

Ask question, read labels

When buying paint, work with a knowledgeable paint representative at your local paint or hardware store. Seek out someone that can answer questions about environmental concerns as well as offer application advice. Let your paint representative know that you want to use no VOC paint, or the lowest VOC paint available. If you plan to hire a painting contractor, specify that no or low-VOC paints be used.

You can determine the VOC content of paint by reading the label. It is usually expressed in terms of grams per liter. The most environmentally-friendly choice is to buy a paint with no VOC's. But if the paint you need for the job contains VOCs, try to choose a paint no higher than 250 grams per liter for latex, and if you must use oil-based paint, no higher than 380 grams per liter. These numbers are usually on the label or on the official product literature. If these numbers are not available, consider choosing another brand.

Painting tips

If the paint you choose does contain some VOCs, there are ways to lessen their impact on the air quality in your home. Below are some helpful hints:

• Make sure your work area is well ventilated with outside air. Use a fan to make sure that fresh, outside air is continually moving into and out of your work area.
• If possible, leave the house for a while after you paint. Keep the area vented to the outside while you are gone.
• If you cannot leave, try to stay out the painted rooms for along as possible. Shut the doors and the air ducts, and open the windows to that area.

Proper clean-up and disposal of paint

Proper disposal of paint protects you, garbage collection workers, and the environment.

If you've used latex paint, wash brushes and rollers in the sink with soap and warm water. Don't rinse your brushes on the grass or in the gutter-it could end up in a nearby creek where it could harm fish and wildlife. Take the lids off of any empty latex paint cans and let them dry, then throw these into the trash with the lids off. If you have paint left, check with neighbors to see if they need any.

How to survive home remodeling

You're about to tear out walls, add new plumbing or perhaps even add a new room. How will you survive the rubble and confusion? These tips will help you keep your construction project going smoothly.

Here's How:

1. Review the contract with your contractor. Make sure everyone agrees on the work that will be completed and how long it will take. Also be clear on the types of materials that will -- and will not -- be used.
2. Find out what days and hours work will be conducted. Will carpenters show up on Saturday? Will plumbers ring your doorbell at 7 am?
3. You may need to give out keys to your home. Find out which worker will be responsible.
4. To avoid confusion, choose one person in your family to act as spokesperson.
5. Store your stuff. What cannot be stored, cover with dropcloths.
6. Prevent plaster dust from spreading. Hang plastic sheets over doorways to work areas.
7. Show workers which bathroom to use and where to wash brushes.
8. Lay ground rules. Let workers know whether they can use your telephone. Remind them to keep the volume on their radios down. Tell workers where they can -- and cannot -- park their trucks.
9. Create a space for worker's tools and supplies. Consider setting up a coffee pot for workers.
10. Preserve one part of your home as a work-free zone where you can live comfortably.
11. Try to stay out of the work area.
12. Check materials and fixtures before they are installed. Once the chandelier is hung, it may be too late to change it.
13. Workers may need to turn off power or water for some jobs. Plan ahead.
14. Expect delays. Your workers may encounter unforeseen problems. Materials may not arrive on time. One missing worker may throw the construction off schedule.
15. When requesting changes, go through your architect. If you do not have an architect, speak to the General Contractor or supervisor.

(via About.com)

Trump Jr. urges developers to think 'location, location, brand'

Trump was speaking in Mumbai on the opening day of Cityscape India, the latest in a series of sister events around the world that have spun off from the success of Cityscape Dubai and now the world's biggest business-to-business real estate brand reports AmeInfo. The first Indian event has attracted major participation by Middle East companies.

Trump stressed that the key challenge for Indian property developers is to ensure they continue to meet the expectations of high net-worth global investors. 'Owners and developers must understand the mindset of prospective investors and offer unique and attractive real estate developments in a secure and transparent investment environment.'

He added: 'High-end luxury gets into the best locations. Premium quality brands get premium quality returns. Investors are more willing to play for high stakes if the risk is minimal.'

It has been well documented that the sub-prime crisis could cause write downs of over US$400 billion in bad loans, sending property prices plummeting in the USA and dampening investor confidence in Ireland, UK, Spain and Australasia. In sharp contrast, the case for real estate growth in India is undeniable. Its annual GDP is currently 9%, allied with a population of 1.2 billion people which is swelling at a rate of 1.4% per annum.

'Put simply, that's an additional 16.8 million people annually adding to the surging demand for infrastructure, housing, schools, hospitals, retail as well as hospitality and commercial property,' said Rohan Marwaha, Managing Director, Cityscape. 'With many property markets around the world already depressed or on the cusp of recession, India offers ideal investment opportunities now and for the foreseeable future, unaffected by the lack of confidence or the impending credit squeeze.'

Running concurrently with the three-day exhibition, the Cityscape conference also examined, development and investment hotspots in India, joint ventures, a legal and regulatory update and financing options. Contributions were made by top industry figures from key organisations including, Raheja Universal, Unitech Group, Shipra Estate and Walton Street Capital.

Venus Flytrap inspired lenses may lead to new adhesives, optics, coatings

Inspired by the way a Venus flytrap captures its prey, Alfred Crosby and his doctoral candidate Douglas Holmes created a polymer surface covered with small holes capped by thin lenses of the same material, reports ScienceDaily. The lenses can snap between convex and concave when triggered.

Venus flytrap leaflets work in a similar way. Through a combination of geometry and materials selection, the flytrap leaflets snap from concave to convex when an object triggers their hairs. The key to the flytrap’s ability to capture prey, and a key feature in Crosby and Holmes’ material, is the speed and sensitivity that accompany a “snap” transition. For the Venus flytrap, the transition occurs in roughly 100 milliseconds, and the “snapping surfaces” can snap at least as fast as 30 milliseconds. Even more important is the fact that this speed can be easily adapted for faster or slower transitions depending on the final use.

This “snap” transition changes the surface of the material from a series of mounds to a series of depressions, a strategy that has great potential for creating release-on-command coatings, “smart” adhesives, adaptable optical devices or surfaces with responsive reflective properties.

“This material’s design could allow for the removal of superglues, wallpaper and paints without toxic solvents, which would be an advantage for the environment,” says Crosby.

The connection to controlling adhesion with the responsive “snapping” surfaces is fueled by another project in Crosby’s research group that is focused on understanding and mimicking the gecko, a small lizard with pattern-covered toes that provide enhanced adhesion and release properties. The “snapping surfaces,” which are really Venus flytrap-gecko hybrids, can be turned into smart adhesives by covering the lenses with hairs that adhere in the convex position and release when the lenses are concave.

“This novel surface has many advantages over existing shape-memory polymers,” says Crosby. “The snap-through transition is caused by an elastic instability; therefore it requires very small amounts of energy to initiate large changes in geometry. The transition can also be limited to one lens or the entire sheet.”

Currently Crosby and Holmes have demonstrated mechanical pressure, swelling and surface chemistry as triggers for the “snap” transition. “Using different materials may lead to surfaces that transition in response to heat, light and voltage, and changing the size scale permits use in electronics and nanodevices,” says Crosby. “There is no physical reason that we can’t go down to the nanometer scale. That is what we are currently researching.”

2007 Aga Khan Award for Architecture

Within the constraints of a developer-driven brief, the Moulmein Rise Residential Tower uses innovative techniques and detailing that combine new principles for tropical design and improvements for high-rise living. Wong Mun Summ and Richard Hassell, partners at the Singapore firm WOHA Architects will receive the Award.

The simple home: The luxury of enough

Sarah Nettleton presents her six paths to simple sustainability, each illustrated by examples of human-scaled, unadorned homes with straightforward floor plans from her book, The Simple Home. For everyone who craves a simpler lifestyle, not only in how they live but also where they live, her book features 21 houses and presents six different approaches to creating a home that realizes its full potential both simply and elegantly.

Her six paths to simplicity are each illustrated by human-scaled, unadorned homes with straightforward floor plans and forms. These are open, light-filled houses (with rooms or spaces that are often multipurpose) that express their beauty in their utility and practicality. Simple homes are low maintenance and often green, designed for homeowners who wish to embody a different set of values in their housing choices than the run-of-the-mill starter castles littering the landscape.

The 6 Paths:

1. Simple is Enough
2. Simple is Thrifty
3. Simple is Flexible
4. Simple is Timeless
5. Simple is Sustainable
6. Simple is Refined

In this podcast, Nettleton discusses living in complex times, in a commodified, virtual, and overstimulated culture, and how to escape that reality for a more satisfying life through simplicity. By using architecture, she tries to at once give a vocabulary to common sense concepts of the simple, while at the same time offering concrete examples of what steps can be taken towards living a new lifestyle.

How to prevent paint from peeling

Question
I recently purchased a house 3 years ago and have noticed a lot of peeling and cracking problems reoccurring every year on the sunny side of the house. I don't know the painting history of the house. I have cedar clapboard with the smooth side out. The peeling occurs at the base level leaving bare wood exposed. I was told the best way to cure the problem is to strip the house to get all the paint off down to the wood. Sand and power wash the wood. Then apply one coat of oil based primer and finish with acrylic latex paint. They said the first paint job on the house which is 10 years old must have been bad and the expanding and contracting of the smooth clapboard on the sunny side of house keeps causing the problem. They say oil primer and latex paint will provide more flexibility. Is this true? Should I use solid stain instead? What do you feel will cure the problem. Thanks !!!

Answer
There are several things that could be causing the problem, so you'll have to take steps to address them all. Yes, it will be best to remove all the old paint and primer, using scraping, sanding, etc. Then, all exposed wood should be sanded with medium (#120) grit garnet paper. Be sure excess moisture can get out from behind the wood.

Consider installing "button" vents at the top of the wood siding, away from the weather. Consult with your building supplies house for guidance on type, size and spacing of the vents. All cracks and joints should be cleaned of old paint and sealed with a TOP OF THE LINE quality acrylic or siliconized acrylic latex clear (guns white/dries clear) caulk. Do NOT seal the lower edge of the clapboard siding, where it meets the next piece. Moisture must be allowed to make its way out. Any rough edges of wood or any remaining paint should be feather-sanded. You can use either a latex or oil-based exterior wood primer: oil types will block stains better; latex will resist cracking better.Apply a heavy coat of the primer. Dry over night, then apply one or two coats of top of the line 100% acrylic latex flat or satin house paint.

Don't apply primer or paint in the direct, hot sunshine. If the rest of the house is OK, then just prepare the surface for repaint (without removal of the old paint) and apply the same finish coat.

Realty barons steal limelight

India’s booming real estate sector has more than doubled the number of billionaires from this space in just 12 months, with DLF’s Kushal Pal Singh emerging “the world’s richest real estate developer.” Among 54 Indian billionaires identified by Forbes magazine, there are seven real estate developers with a net worth of over a billion dollar each.

A year ago, there were just three billionaires from this sector — K P Singh, Ramesh Chandra and Rajan Raheja, who have now been joined by Rakesh Wadhawan of newly listed HDIL, Niranjan Hiranandani of London-listed Hirco, Parsvnath Developers’ Pradeep Jain and Omaxe’s Rohtas Goel.

Singh, the wealthiest in this space, has been ranked as the fourth richest Indian with a net worth of $35 billion, according to the Forbes List. His wealth appreciated over 250 per cent after his company, DLF, went public in June this year and the stock has surged 60 per cent since then, it added. Unitech’s Ramesh Chandra ranks 8th with a net worth of $11.6 billion, followed by Wadhawan at the 26th spot with a wealth of $2.35 billion.

Tips on painting your interior and exterior

The various choices available for paints for interior walls are as follows: Paints for interior walls can be water or solvent-based. In water-based paints there are three choices available i.e. premium emulsions, acrylic emulsions, and distempers. Premium emulsions give a smooth finish, are corrosion resistant, have high durability and are the most expensive of the three. Acrylic emulsions give a smooth matt finish, they are washable, easy to maintain and less expensive. Premium and acrylic emulsions are popularly known as plastic emulsions.

Now regarding an economical option for interior paints, distempers are an economical alternative to emulsions. Once again these are oil and acrylic-based. Of the two, acrylic distempers are superior in finish. If economy and value for money is the criteria for choosing the paint then oil-based distemper would be your choice.

Solvent-based paints are the second choice for interior paints i.e. these paints are to be mixed with a solvent such as turpentine oil. Basically they have a different chemical composition. They are of two types — flat oil and luster finish. Flat oil paints give a matt or porous texture and are best suited for ceilings. Luster finish paint gives a silky finish and a smooth sheen. They are durable and do not loose sheen even after washing. They are superior paints at a reasonable price.

Regarding the exterior of the house there are the following types of paints and you can decide upon which paint to use depending on your requirement.

Emulsion Paint: These paints are suitable for wall areas of masonry and wood. Nowadays modern high performance acrylic multi-surface paints are suitable for previously unpainted wood and metal if properly prepared and primed. These paints come in matt and satin finishes, which give protection and colour. Exterior emulsion paints are commonly water-based, so are easily cleaned with soapy water. These paints are microporous, allowing the painted surface to breathe, so minimising blistering and flaking otherwise caused by moisture coming from within the building.

Masonry Paint: These paints can be used on masonry, render, pebbledash, concrete and brick. These come in smooth or textured finishes and are also available as 1-coat products. They contain fungicide for anti-mould properties. These paints give a smooth finish that resists dirt pick-up and the textured-finish paints are good for hiding minor imperfections.

Gloss Paint: These paints are used for exterior wood and metal surfaces. These paints give a tough and durable protective finish. These are available as 1-coat paints and come in satin or gloss finishes. Gloss paints are dirt and mould resistant and non-yellowing.

Floor Paint: These paints are recommended for the concrete surface of garage floors and stone steps. These are tough and durable paints and can withstand heavy wear and tear. They are water or solvent-based and can be applied with a roller. Ideally one should ensure loose bits are wire-brushed and cleaned before sealing, priming and painting.

Metal Paint: These paints are for use on metal surfaces such as gates, drainpipes, garden furniture and garage doors etc. These paints are designed to give protection to the metal surfaces and they come in gloss or satin finishes. It is recommended to remove rust prior to painting and use a wire brush and fill pitting with epoxy-based filler (a rust inhibitor). Degrease the surface prior to painting metal in thin layers using soap and water. If the paint is sprayed on to the metal surface then wear protective clothing, including goggles and a face mask and ensure the protection of surrounding areas.

Waterproof Paint: These are used on metal gutters, drainpipes and concrete. These are bitumin-based to create a waterproof surface. Remember, do not over paint waterproof paint with ordinary paint — it can only be repainted using another bituminous paint.

Snowcem Paint: These are the most commonly used paints for exterior surfaces. These are cement-based paints.

Now regarding your last query about paints and colours. A single painted wall or a room with all walls in a certain colour can totally change the look and mood of the room. A single painted wall can become the accent wall of that particular room and can be used to display photos, paintings etc. Be careful while using colours since one must keep in mind factors such as the amount of time spent in that particular room. Some bright colours can make the rooms look smaller, while softer lighter shades can make the same space appear bigger.

Broadly speaking, human association with colours can be in four different categories. Colours can be warm (orange, yellow, red, etc.) or cool (shades of blue, green, etc.). Secondly, they can appear heavy (dark blues, reds, purple, etc.) or light (peach, lemon, lilac, etc.). Thirdly, colours can be perceived as having depth i.e. they appear to be receding (shades of blue, green, violet, etc.) or advancing (shades of red, orange, yellow, etc.). Lastly, colours can have an appetising effect i.e. food colours (green, orange, yellow, etc.). Keeping these factors in mind decide upon the colours for the various rooms or walls.

Ludwig Mies van der Rohe

The United States has a love-hate relationship with Mies van der Rohe. Some say that he stripped architecture of all humanity, creating cold, sterile and unlivable environments. Others praise his work, saying he created architecture in its most pure form.

Ludwig Mies van der Rohe began his career in his family stone-carving business in Germany. He never received any formal architectural training, but when he was a teenager he worked as a draftsman for several architects. Moving to Berlin, he found work in the offices of architect and furniture designer Bruno Paul and industrial architect Peter Behrens. In 1912, Mies van der Rohe opened his own practice in Berlin and he adopted his mother's maiden name, van der Rohe.

Early in his life, Mies van der Rohe began experimenting with steel frames and glass walls. He was director of the Bauhaus School of Design from 1930 until it disbanded in 1933. He moved to the United States in 1937 and for twenty years (1938-1958) he was Director of Architecture at the Illinois Institute of Technology.

Mies van der Rohe taught his taught students at IIT to build first with wood, then stone, and then brick before progressing to concrete and steel. He believed that architects must completely understand their materials before they can design.

Mies van der Rohe was not the first architect to practice simplicity in design, but he carried the ideals of rationalism and minimalism to new levels. His glass-walled Farnsworth House near Chicago stirred controversy and legal battles. His bronze and glass Seagram Building in New York City (designed in collaboration with Philip Johnson) is considered America's first glass skyscraper. And, his philosophy that "less is more" became a guiding principle for architects in the mid-twentieth century.

Skyscrapers around the world are modeled after designs by Mies van der Rohe.

Mumbai is the world's fourth most expensive office market

Mumbai the world's fourth most expensive office market; Delhi not far behind

In August this year, ABN Amro Bank decided to renew the lease for its 3,100 sq ft office space at Nariman Point’s Sakhar Bhavan, but the landlord dropped a bomshell by jacking up the rental to Rs 500 per sq ft. The earlier lease, signed in 2004, was for Rs 180 per sq ft.

At the revised rate, the rent of $150 per sq ft per year was around 90 per cent more than even mid-town Manhattan where the annual rates are around $82 per sq ft. But ABN isn’t alone in deciding to pay up top-dollar rentals for new office space in Mumbai.

The Rs 500 per sq ft rate has, in fact, become a benchmark for Grade-A office space — centrally air-conditioned, well-maintained, efficient buildings (space you get in terms of what you pay for) with good tenant mix — in Mumbai’s main business districts.

Real estate brokers say landlords at Hoechst House in Nariman Point are demanding similar rentals. A landlord on Maker Chambers VI is close to signing a deal at Rs 500 per sq ft for a higher floor office with unobstructed sea-view.

Now, this rate is for chargeable (super built-up) area in a building where previously most deals were done on carpet area. So, the effective rentals could be Rs 575-650, excluding property taxes and maintenance charges.

The scene is no better in other business districts like Worli, Parel or Bandra-Kurla Complex in midtown Mumbai. New deals for Grade-A buildings are being signed in the Rs-400-500 per sq ft rent bracket.

Last quarter, Dubai-based real estate firm Limitless leased out 6,500 sq ft at the IL&FS Financial Centre, Bandra-Kurla Complex at Rs 430 per sq ft, while Morgan Stanley took 12,500 sq ft in Peninsula Corporate Park, Parel, for Rs 400 per sq ft.

No wonder, Mumbai has emerged as the fourth most expensive office market in the world, next only to the two business districts in London (Westend and City) and one in Tokyo (inner central).

A survey by real estate consultant CB Richard Ellis (CBRE) in May 2007 shows New Delhi isn’t far behind at the seventh slot and estimates occupation costs in Connaught Place at $116 per sq ft/annum.

The rates have gone up further since the survey. Real estate brokers say the going rate at the Birla Building on Barakhamba Road in the capital is Rs 600 per sq ft.

Ashutosh Pathare, vice-president, Shapoorji & Pallonji, says there is a mismatch in supply in Nariman Point. There’s very little space available but there’s strong demand from private equity firms, banks, airlines and consultants.

Agrees Sanjay Dutt, deputy managing director with real estate consultant Cushman & Wakefield India: ‘‘Nariman Point has an estimated 7 million sq ft of commercial space, but not even 3 per cent of this is available for lease.’’

But it’s not just about Nariman Point. Commercial rentals across Mumbai have shot up 15-20 per cent as supply has failed to keep pace with the spurt in demand, say real estate observers.

BPO major Firstsource recently renewed its lease at Peninsula Corporate Park, Parel at Rs 225-275 (basic rent, plus other costs like taxes and maintenance), revising it from the Rs 70-80 per sq ft when it moved here in January 2004.

‘‘The spurt is higher in case of renewals,’’ adds a real estate expert. The rentals also depend on the amount of space a company lease out. If the area is huge (30,000 sq ft), the rentals could be lower, and vice-versa.

‘‘The price rise is a temporary phase as there is no space available. But this is not sustainable in the long run,’’ said Anuj Puri, CEO, Jones Lang Lasalle-Meghraj.

The market is likely to remain tight in the next few months till new supplies come in. Mumbai will add 22 million sq ft of Grade-A office space in the next two years.

Jones Lang Lasalle-Meghraj estimates the Grade A office space in Mumbai to double by 2008-09 from the existing 19 million sq ft. These should ease pressure on commercial rentals if the supplies-in-the-pipeline come on time and there’s no slip in delivery dates.

Fazilka's innovative way to prtects its heritage

Fazilka is setting up new trends in Indian History. First time people of Fazilka came forward to protect their heritage monuments linked with historic Importance of Fazilka. Fazilka is a historical town, established by Britisher Van Pat Agnew in the year 1844. Since its inception many historical monuments are being built here, important one is Fazilka's City Centre, Ram Narayan Pediwal Clock Tower.

Mission started by Graduates Welfare Association Fazilka (GWAF)on 30th June 2007 along with Press Club Fazilka, Pediwal Trust and Pediwal Family (Family who established clock tower), Manav Kalyan Sabha, Bharat Vikas Parishad, Municipal Council Fazilka. Arya Samaj and many other volunteer people and organisation are taking its shape. Bajrang Gupta, ex-president Municipal Council fazilka contributed special role to execute the same.

Opinion from Berger India, Nerolac Paints, Asian Paints and Snowcem Paints were called. Snowcem paints were shortlisted for the final execution of the Work. They will not just paint the structure but will protect the monument. Mr. J. S. Saini and Mr V.Lakhanpal from Snowcem Paints taken up this project around month back and they have developed four different models to paint and protect this historical clock Tower Fazilka. Apart from business angle Snowcem India people personally providing their full technical support as a part of their corporate social responsibly.

Ram Narayan Pediwal Clock Tower Fazilka Inaugurated on 6th June 1939. Since then, this is adding beauty to the city skyline. Two of this type clock towers are built in the world, another one is in the Lyallpur Pakistan. Due to poor maintenance by Municipal Council Fazilka and political negligence after militancy era in Punjab. This structure was losing its charm. With this initiative, this small town is setting trends for the rest of the world.

Through online and offline methods, polling will be conducted to take peoples opinion for the most suited colour scheme on this structure. These online polls soon will be available on the Fazilka website www.lovefazilka.esmartweb.com.

Talking to media persons, Mr. Sushil Pediwal, Member Pediwal Trust Fazilka said "our culture and heritage is our pride and these historical monuments link us with the past legacy set by our elders, we must protect the same for our future generations".

Dr Bhupinder Singh and Mr. Umesh Kukkar, founder members of GWAF are appealing to the entire citizen to participate in this campaign. After clock tower, historical Asafwala War Memorial built in the memory of Indian martyrs of 1965 and 1971 Indo-Pak war shall be taken up.

(via Punjab Newsline.)

Why property prices are high when demand has fallen?

Banks are slashing interest rates for first-time home buyers. Reports suggest real estate prices have fallen by 10-20 % in many places. People are getting out of their rented apartments, scouring for housing deals in the festival season, which is when the real estate market takes a two-week nap.

However, the early birds are not finding any prize worms. Instead, they seem to run up against the familiar high rates, and belligerent attitudes. "I went back to the areas where I hunted for a house a year ago, and the builder is still quoting the same price. He was quite dismissive when I asked about a rate cut," says software professional Neha Swarup.

What's going on in the real estate market? Is the drop in demand just a myth? If not, why hasn't it brought prices down? "Of course, there's huge drop in the demand for property, and some deals have been struck at lower rates. But an overall drop in rates is yet to happen," says a real estate expert.

He points out that, traditionally, no deals take place during the Navratri season. "We are keeping a close watch on the situation. We believe that if there is no dramatic rise in demand by Diwali, real estate prices will come down." So perhaps if Neha were to wait it out some more, she may have some happy news. As for her anxiety about missing the bus to low interest rates, she can breathe e a s y. B a n k i n g officials say interest rates are unlikely to go up further. They believe the Reserve Bank of India is unlikely to keep up its monetary tightening measures.

While the news of lower rates gave Neha hope, it has left Ajit Ram puzzled. He was at a loss to understand why banks would offer lower interest on home loans to new customers, while existing customers would continue to pay higher rates. “In a floating rate loan, the interest rate should go up as well as down, along with other interest rates in the economy. When the rates were coming down a few years ago, there were hardly any downward revisions.

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World's tallest bridge, now in Jammu

The tallest bridge in the world is in France and is over 300 metres high. But soon a rail bridge being constructed in Jammu will stand much taller. The world's tallest rail bridge is coming up at Kauri, a hamlet in Jammu's Reasi district. When it is completed by December 2009, the bridge will rise 359 m above the Chenab River. The tallest road bridge in the world is the 343 m high Millau Viaduct in France. "The Millau Bridge in France is 300 m high and the height of its pillars is 343 m. If that's considered the tallest in the world, then definitely this is taller than that," said Ishwar Chand, Deputy Chief Engineer, Chenab Bridge Project. The Chenab bridge will be 1,315 m long and is being built at a cost of over Rs 600 crore, across a highly seismic zone. The bridge is an engineering marvel and is being built using high quality earthquake resistant steel. The bridge will eventually make the Valley accessible by train and remove the biggest stumbling block for the Jammu-Udhampur-Srinagar-Baramulla railway route, which is full of tunnels and difficult terrain. Work on the Jammu-Udhampur line was completed in 2004 but it will be years before the full route is operational. The laying of tracks has started in the north of Udhampur, which will connect Katra and make it easy for Vaishno Devi pilgrims to reach there. Bahadur Singh, a local resident said, "It was a very far flung area, but now its entire picture has changed. Earlier, there was a lot of problem when going to Jammu or Srinagar, but now it will be much easier". Once the railway line is complete, remote areas of the state will be connected to the rest of the country and trade and commerce in the Valley will receive a huge boost.

India's construction boom: Boon or bust?

P.M.S. Prasad is not a man you would expect to be worried. The CEO and president of Reliance Industries' oil and gas business is in the enviable position of having a long list of buyers lined up to purchase natural gas from its record-breaking discovery in the Krishna Godavari basin, off India's east coast.

But at a recent press conference, Prasad's worry showed through as he was forced to admit that the prospecting program of India's largest private-sector holder of oil and gas blocks was delayed because of the unavailability of rigs. "The commercial production of gas from the discovered fields in the Krishna Godavari basin will not be affected, as we will divert some of the rigs from exploration into production, to make good the shortfall in rig availability in the global markets," Prasad assured reporters. For a company known for quick execution, it was a rare public setback.

Reliance is not alone: Almost every Indian company -- big or small -- that has some expertise in construction finds itself flooded with orders that are nearly three to four times its annual sales. The size and pace of orders could threaten the development of the country's already creaking and short-supplied infrastructure. "Execution is the biggest issue in India today, especially on time and within budget," says Pratyush Kumar, president and chief executive officer of GE Infrastructure, India.

Although construction companies are prepared to spend money to raise their production capacities, experts say that a shortage of skilled talent and the limited ability of capital equipment suppliers to meet demand mean that skillful project management and innovative solutions will be necessary to prevent bottlenecks.

India's planned infrastructure outlay over the next five years has been revised upward by various government authorities, from $150 billion to almost $475 billion. The country currently spends around $21 billion a year on infrastructure, compared to China's $150 billion. Corporate capital spending tracked by research firms like the Centre for Monitoring Indian Economy (CMIE) is at a multi-year high in India. The effect of all of this demand can be seen in the order books of infrastructure builders, which have also reached a multi-year high.

Consider just a few examples: Punj Lloyd, one of the country's largest engineering, procurement and construction (EPC) companies, earned 72% more income for the quarter ended June 2007, at Rs 1,4179.5 million ($359.43 million). Yet, its order backlog rose to Rs 152,250 million ($3,859.32 million). Larsen & Toubro, one of Asia's largest vertically integrated engineering and construction companies, announced that gross sales rose 47% in the quarter ended September 2007 to Rs 55.74 billion ($1.41 billion), and yet its order backlog rose to a record Rs 400 billion ($10.14 billion). At Wartsila India, which had an order book of one times sales in 2003, the backlogs have risen to almost three times that amount. And Patel Engineering, which expects to close the current year with sales of Rs 16,000 million ($405.58 million) has an order book of Rs 54,000 million ($1.37 billion).

Rupen Patel, managing director of Patel Engineering, says that alone, the planned roll-out of highways by the National Highways Authority of India (NHAI) over the course of the next 10 years exceeds the total turnover of all construction companies in India today. "Construction companies have never seen such a boom in India. Even if [they all] did only road projects and left all work on building airports and power plants aside, NHAI still has more work to offer than firms can take," he says.

"The turnover of all construction companies in India last year was around $15 billion. This year it may rise to $20 billion. But a total of $50 billion is [slated] to be spent on construction every year in India, which requires a capability of 2.5 times the sector's size," says a senior executive at IVRCL Infrastructures who did not wish to be named. India will need several billion-dollar, pure-play construction companies to be able to execute such projects, but it has only a couple of such companies, calling into question the ability of the private sector to build out infrastructure in a public-private partnership mode.

Foreign firms might view the huge gap between the sector's existing capabilities and those required as an opportunity to make their mark in India. Indeed, the infrastructure spending boom in India has benefited a bevy of overseas companies, such as Dongfang Electric Corporation in China and Doosan Heavy Industries and Construction Company in Korea, who are filling orders for turbines used to generate power. A number of leading global construction companies, such as Australia's Leighton Holdings and Italian-Thai Development Public Company, have also entered India.

Skilled-labor Shortage

It's difficult to fathom the words "talent shortage" in a country of a billion people that's getting younger over time. But speak to any infrastructure builder, and you hear anecdotes about shortages of trained fitters, welders, masons and plumbers. "Whether we will get the people necessary to support the growth is the real challenge. Both engineering and blue-collared skilled workers are in short supply. Fitters and welders are not available in the numbers you want. The industry also needs mechanical engineers who have worked in capital goods industries and would like to pursue a career [in that sector] rather than switch into software," says Allen Antao, vice president, process equipment, at Godrej & Boyce Manufacturing Company.

"Once, India had such a supply of labor that we never thought we'd run out, but today things are certainly moving towards that," says Satish Magar, chairman and managing director of Magarpatta Township Development & Construction Company, which has developed a 250-acre plot near the city of Pune in western India.

According to Magar, semi-skilled labor was once brought in from the neighboring south Indian states of Andhra Pradesh and Karnataka, but now projects in the west Indian state of Maharashtra are pulling in laborers from far flung Eastern states of Orissa and West Bengal where surplus laborers are still available. Importing lower-skilled workers from overseas would be too problematic, "given the significant wage differentials and the effect such inflated costs would have on a project's viability," says Patel.

The construction industry remains one of India's largest employers. Realizing the need for skilled vocational staff, the industry has begun collaborating with academic institutions to either train staff for plumbing and masonry type work, or to set up in-house training programs. "We are tying up with industrial training institutes for education and vocational development as well as organizing local training at our school," says Godrej's Antao.

Training is important, because by mechanizing their operations, companies have needed to substitute low-end, semi-skilled artisans with comparatively high-end machine operators who are in short supply. As a result, wages for crane operators and others with higher levels of expertise have risen faster than the average for other industrial workers. For instance, Sanjay Verma, head of ship power for Wartsila India, estimates that welders have seen their wages rise by 30% to 40%, while those for traditionally well-compensated naval architects and marine engineers have risen by 50% over a 3-4 year period.

Antao says that the appreciation of the rupee and the rise in wages are happening so quickly that their effect on costs cannot be countered with a rise in productivity. "If margins drop as a result, companies may not be able to commit large sums for capital investments with the same freedom as we would otherwise."

One area of shortage which hurts all infrastructure builders is the availability of skilled project managers. In the case of many developers, "there may not be that level of experience available to execute the size of the projects [that are] planned," says Aniruddha Joshi, executive vice president of the Hiranandani family-controlled Hirco Group, which has large realty projects underway in India. India hasn't seen many large projects until very recently, and the country has traditionally not produced enough skilled project managers to coordinate multiple vendors and optimal allocation of resources.

For prospective engineering students, civil engineering had lost its charm and was seen as a low-growth area, where progress would be limited and the hours long and hard. In comparison, many males who completed computer engineering programs found jobs as code writers in India's burgeoning software services industry. These jobs, which came with a possibility of overseas placements, also made the men good prospects in the traditional Indian marriage market. But with the construction boom, "salaries for civil engineers from reputed colleges, which averaged around Rs 7,000 ($190) a month three years ago, have risen to around Rs 25,000 ($600) a month now, which makes them comparable to what software engineers get. As a result, we are seeing engineering colleges report a higher percentage of students opting for civil engineering courses after several years of relative drought," says Patel.

Many companies have turned to acquisitions to cover their short-term labor needs. Punj Lloyd has acquired Singapore's Sembawang E&C to help provide expertise in EPC projects, while Patel Engineering has bought U.S.-based Westcon Microtunneling to build on its construction expertise. Many firms are also hiring expatriate project managers to take charge of projects and train juniors to assume such positions over time.

Verma feels that the high wages for such positions in India may help in attracting talent from other areas like Eastern Europe and Japan. Patel says skilled project managers and planning engineers could be hired from outside India as well. Reliance Industries, for instance, has an expatriate as its chief of drilling services, who helps train its drillers and rig operators to meet target dates for commercial production of gas.

Joshi sees a silver lining in the shortage of human resources as well. He cites the example of Japan, where construction companies adopted a "top-down" method that helped attract talent to the industry -- one that Japanese society considered a "tough, dangerous and dirty" profession. "It's good to have constraints; it forces you to come up with new solutions," says Joshi.

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Buying a house? Beware of these tricks.

Everybody wants a piece of real estate. The sector has been growing at 25-30 per cent a year since 2003, fired primarily by low interest on housing loans and the rising affluence of homebuyers. Those who had bought stocks of real estate companies, whose valuations have gone through the roof, are a happy lot. However, the same cannot necessarily be said of scores of financially and emotionally bleeding homebuyers. The developers play lord and master to middle-income individuals, who often live like monks to fulfill their dream of owning a house. Most sale agreements are heavily loaded in favour of builders in the currently unregulated market.

This disillusionment is reflected in the rise in the number of complaints that has accompanied the growth of the sector. In the first 25 days of August 2007, the Delhi-based National Consumer Helpline, a consumers' body, received 33 housing-related complaints. The Consumer Guidance Society of India (CGSI), Mumbai, says it gets two-three cases a day. In this scenario, what chance do you have of safeguarding your interests as a buyer?

In 1993, the Supreme Court ruled in favour of M.K. Gupta in his case against the Lucknow Development Authority for not delivering his flat on time. This landmark judgment brought housing construction under the purview of the Consumer Protection Act, 1986.

This, however, hasn't done much to change the unscrupulous ways of builders. Owing to the bonhomie between developers, the authorities and the contractors, projects get sanctioned easily but the quality of construction goes unquestioned. Supreme Court advocate C.M. Srikumar says: "Even in cooperative societies, the contractor, the

architect and the office-bearers of the society dupe the public."

Rahul Todi, managing director, Bengal Shrachi Housing Development, says: "Unlike other consumer products, here we sell a concept first. If there is a gap between expectation and reality, then we are not doing our job properly."

What are the most common games that developers play? Here are eight common tricks and ways in which you can guard against them.

I. When do I get my house?

Most agreements do not clearly specify the date of delivery. For instance, one says: "Completion of the building is expected to be delivered by the date mentioned in the covering letter of this allotment. The delivery of the possession is subject to force majeure." What this means is that you cannot hold the developer responsible if he does not stick to the promised delivery date.

There have been cases when the delivery has been delayed by 12 months or more. Typically, the buyer would have paid 95 per cent of the price by the time he reaches the expected delivery date. If he is living in a rented house, delays will drive his calculations awry as he would not have factored in this additional rent (see Double Bite). Mumbai stockbroker Bhupendra M. Pitroda, 58, fought a legal battle against Megha Property Developers for five years. Reason: delayed possession.

Pitroda was promised delivery of the flat he booked in 1998 in Navi Mumbai's Madhuri Cooperative Society Housing Project within 18 months. The builder later said that delivery would take another six months. When Pitroda visited the site six months later, he felt that the delivery would not happen soon. So, he instructed his bank to stop payment of the balance 37.5 per cent of the apartment's cost to Megha Developers.

The developer promptly sold off the flat. An aggrieved Pitroda then moved the State Commission in July 2000. Three years later, the commission asked Megha Developers to refund Pitroda the money he had paid with 15 per cent interest. Pitroda was also awarded a compensation of Rs 15,000 for the mental agony caused and Rs 5,000 for legal costs.

The developer appealed in the National Commission, which upheld the State Commission order but cut the interest to 9 per cent. The developer then moved the Supreme Court. "The Supreme Court judge flung the papers in the face of the builder's lawyer and asked the builder to compensate me immediately. The judgment was over in a minute," says Pitroda. Through the legal battle, Pitroda made 25 appearances in the State Commission, three in the National Commission and one in the Supreme Court.

Many agreements have penalty clauses for delayed delivery, but they are without bite. For example: "If the company fails to complete the construction of the said building/apartment within the period as aforesaid, then the company shall pay to the allottee compensation at the rate of Rs 5 per sq. ft of the super area per month for the period of such delay." What this means is that for a 1,000-sq. ft flat, you would get a compensation of Rs 5,000 per month�a pittance (see Double Bite).

In most cases, buyers put up with the delay quietly rather than 'antagonise' the builder. Most fear retribution, harassment and further delays in delivery. This is not entirely baseless. For one, agreement papers are designed to protect the builder. Two, your intention to fight the builder may look like a joke given your handicap in terms of financial prowess and influence. Three, there is no industry regulator you can turn to for redressal. Suresh Virmani of National Consumer Helpline says: "We generally encourage a dialogue between buyers and sellers to settle disputes. If that fails, the matter is taken to the regulatory body. But we can't even suggest this in real estate because there is no regulatory body."

What to do. Don't just take the builder's word on the progress of construction. Check it out from time to time, as Pitroda did. If you feel a delay is likely, start building up pressure on the developer. The best way to do this is to form a society, says Virmani. Usually, builders have many projects running at the same time and they push the ones where the pressure is higher. "The more the number of buyers, the greater is the pressure," says Bharath Jairaj of Consumer Action Group, Chennai.

II. Where are my papers?

A lot of builders are evasive about giving the completion certificate at the time of handing over the flat. A completion certificate is issued by municipal authorities and establishes that the building complies with the approved plan. A developer would not get the certificate if he deviates from the plan.

You cannot prove ownership over your house if you don't have the certificate as you would not be able to get the house registered. Also, you may not be able to get utility connections. You will have problems selling, mortgaging or reverse mortgaging the house as it will not be in your name. In the worst case, the unapproved parts of your house would be demolished by the municipal authorities. Not a happy state of affairs.

Businessman Mohammed Haroon, 45, got his flat in Tulip Garden, Gurgaon, six years ago, but he has not got the completion certificate yet. The same goes for the other 59-odd flat owners there. Together, they took Sarvapriya Developers, which built Tulip Garden, to the consumer court. "After four years, in mid-August this year, the court directed the builder to hand over the completion certificates within a month, or pay Rs 5,000 each as compensation to all the flat owners," says Haroon. "But we know that none of the two will come our way and are prepared to approach the Delhi High Court in this matter."

What to do. Sale agreements often don't mention the completion certificate. If yours doesn't and you notice it before signing the papers, insist on the inclusion of a clause that you will be given the completion certificate when the flat is handed over to you. Ask the builder for it as soon as he announces that the house is ready for possession. If, like Haroon, you move into the house without it, the court will probably be your last resort.

III. What's the guarantee of quality?

Within a month of moving into his apartment in Mahagun Manor, Noida, Rajiv Raghunath, 41, got trapped inside the house as the door lock failed. In six months, the plaster started peeling off and the fans stopped working. In another few months, water started seeping in as the pipes had corroded. "I felt cheated. This wasn't worth my money," says Raghunath.

As of now, there is no way for a buyer to check the building materials used or the quality of construction. Says advocate Anupam Srivastava, who is with law firm Chambers of Law: "Quality is a subjective matter. Buyers should enter into an agreement on the kind of material that the builder will use."

In October 2005, Pune's Gera Developments started a trend by providing a 5-year warranty on its buildings. The warranty, however, is subject to the conditions that no structural changes be made to the house and that there be no misuse.

What to do. Don't fall for the builder's glib talk. Insist on including the sanctioned plan of the building and the specifications of the raw materials to be used for construction in the purchase agreement. If you are already facing quality problems, you can go to the consumer court. Says Anand Patwardhan, a consumer activist and lawyer: "If you want to approach the consumer court, move it within two years from the day you take possession." Alternatively, flat owners can form a Residents' Welfare Association (RWA) and get the builder to fix the problems, as Raghunath, an RWA member, did.

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Nashik to be next real estate destination

After Pune, it could be destination Nashik for industry as Pune is fast running out of land. The vigorous land acuisition by the Maharashtra Industrial Development Corporation (MIDC) and private industry here is soon going to ensure this.

Sources said that the state government’s industrial infrastructure development arm is looking to create a land bank of between 10,000-20,000 hectares in the two cities, Pune and Nashik, with emphasis on the latter.

However, the attraction of destination Pune remains. MIDC is looking to acquire land for which notifications have been issued at Ranjangaon, Talegaon, Chakan, Karla and Khed.

The state government is believed to have received 1800 applications for the Chakan industrial area, 1100 for Ranjangaon and 600 for Talegaon. The land bank with the MIDC, Pune region, is close to being exhausted and it is facing problems in acquiring new land.

Industry experts think Nashik will prove to be the alternative to Pune. “Nashik, with it’s huge land availability, abudant water supply and connectivity with Mumbai offers ideal locations. It has got mild climate like Pune too,” sources said.

(via Economic Times.)

Affordable urban housing

Investments in real estate have a multiplier effect on income and employment. A HUDCO-IIM Ahmedabad study estimates that every rupee invested in this sector adds 78 paisa to the state's GDE.

The study estimates that for every direct job created in the housing industry, eight jobs are created indirectly as Indian real estate sector is on a high growth trajectory. And according to global consultancy firm, Merrill Lynch, the sector will grow from $12 billion in 2005 to $90 billion by 2015.

Much of the growth will come from the housing market. Despite the good news that the average home ownership age has come down from 45 years in the 1980s to 32 years now, India's realty sector is still dominated by the unorganised and fly-by-night players. Very few corporates and large players have a national presence.

It is well known that rising middle class salaries, easy access to finance and affordable interest rates have given a boost to the industry but restrictive legislations and non-transparent transactions have nullified some of these gains India's real estate sector is governed by over 100 and mostly archaic laws, some even dating back to the 19th century.

These barriers extract an exorbitant cost: a McKinsey study calculates that removing land market barriers can contribute an addi- tional one per cent to India's GDP growth rate. Confirming the trend, a World Bank study estimates that an average housing project in India takes anything up to six years to complete as against 15-18 months in China. India also charges one of the highest levels of stamp duty in the world.

In most states, it ranges from 10 to 15 per cent, though Delhi has brought it down to a low 6 per cent recently for certain categories of home buyer High stamp duties have lead to unregistered - and all cash-property transactions and transfers through the Power of Attorney, entailing considerable financial loss to the exchequer. The National Housing and Habitat Policy of 1998 recommended a stamp duty rate of 2-3 per cent across the country but it is nowhere near implementation. The Urban Land (Ceiling & Regulation) Act 1976 hinders availability of land for housing projects.

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Mall mania: The great gamble

A discussion with a large real estate developer in Mumbai lets you in on a few secrets of the current mall mania in India. Mall construction is just one of the many activities handled by the developer. So a developer isn’t overtly concerned if one of his malls flounders.

“If it doesn’t work, we still own the land. We will convert it into a commercial property or residential complex,” he says, nonchalantly. It’s an attitude that marketers ought to prepare for before betting their crores on any of the 400 malls scheduled to be up and running in India in the next four to five years, or even the 200-odd currently in existence.

Remember Crossroads, in Mumbai? In the late 90s, Crossroads, one of the first malls built by the Piramal Group, brought in a paradigm shift to the Indian shopping experience. The mall enjoyed large footfalls in the early years of its operations, even as the phenomenon caught on in other parts of the country. And then it all started going downhill.

Unused to having people browse without necessarily forking out cash, the management decided to introduce entry fees, hiked parking charges and made it mandatory for customers to carry identity cards or credit cards. Within months, footfalls plummeted, tenants started renegotiating rentals and moving out, till McDonald’s, which had bought its space, was the sole tenant that remained.

While developers busy themselves erecting malls and counting the moolah, it’s nothing less than a high-stakes gamble for tenants. The right choice, and it’s jackpot for the brand. But if the location fails, brand marketers are left with an unviable investment. Concerns about the supply of real estate often compel brand marketers to take quick decisions — some of which may backfire.

“Too much analysis leads to paralysis. One has to take a chance. We realise that when it comes to malls, one will make mistakes,” explains Subhinder Singh Prem, MD, Reebok India. Coffee chain major Barista is present across 25 malls across India, with 35-to-40 others signed up.

Partha Duttagupta, CEO, Barista, believes the success rate in malls has been around 80%. For the remaining 20%, Duttagupta says factors like bad location, high rentals or the absence of a multiplex often spoils the party, and a wait-and-watch policy has to be resorted to. “If things don’t improve, we either renegotiate or do promotions to increase offtake,” he says.

To renegotiate, brands go back to the developer if he still owns the premises and has merely leased the space to the tenants. But if he has sold the mall to a third party, who further sells it to various retailers, accountability flies out of the window. Samar Singh Sheikhawat, VP – marketing, Spencers, says that in the west, tenants get into talks with mall developers prior to construction.

“They consider and incorporate your store design. Out here, if I am not interested, there’s a queue waiting to take that space,” he says. This wait, say retailers, often is prolonged as most malls overshoot their deadlines. And there are numerous instances of developers wanting to renegotiate rates as the date of completion approaches.

“Ideally, one wants the mall to be ready when one moves in. But developers want to catch the season and open a half-done mall,” says Prem. “Tenants today approach mall developers with skepticism as three years after signing up, developers turn back to renegotiate citing a spike in real estate prices,” admits Sandeep Runwal, director, Runwal Group, which runs R-Mall in Mumbai.

India may be witnessing a mall rush, but the very definition of a mall is convoluted. Ideally, a space above half a million square feet falls in the category of a mall, but in India, supermarkets are labeled and sold as malls. “They are actually shopping centres like Delhi’s Palika Bazaar on steroids,” says Raman Mangalorkar, MD, Greenbox Realty, a real estate company which develops, builds, leases and manages retail property.

Adds Ajay Mehra, CEO of Times Retail, “Malls today may have upgraded customer experience and have become evolved shopping centres, but they cannot be called malls in the true sense.” According to realty consultants, quite a few malls across metros are currently underperforming, owing to reasons as varied as lack of adequate parking facilities, wrong tenant mix, poor internal circulation and the lack of a multiplex or hypermarket.

“Developers didn’t know what malls are all about and hurried to build them in the past few years. There is a need to put aside the earlier knowledge, understand mall culture and manage malls as a product,” says Kunal Banerjee, president – marketing & communication, Ansal API, which currently has four malls, and plans to add 16 more.

Mall-Practice

It doesn’t help that most mall owners liken themselves to landlords. “They look down on the tenant rather than jointly cooperating for the welfare of the mall,” rues Amit Jatia, MD & JV partner, McDonald’s India – West & South. Being a tenant in the worst sense of the term brings with it a slew of problems.

Retailers have to bear common area maintenance charges like air-conditioning, toilets and general space upkeep, which constitute half the rentals paid. “Area maintenance is high because of inefficient management of space,” explains Mangalorkar. According to Saket Bhatnagar, principal consultant, Technopak, the primary source of revenue for any mall is the rental from various tenants (around 85%-90%). The rest is through advertisement space and parking.

The rental figures vary significantly for different malls depending on factors like city, location and proposition of the mall. The rentals for new malls in cities like Delhi and Mumbai range from Rs 150 to Rs 400 per sq ft. For the smaller cities, the rentals are much lower — at Rs 80 to Rs 100 for tier I towns and Rs 60 to Rs 80 for tier II towns.

“Rentals are extremely high and form a large chunk of overall cost structure. Compared to international standards, it’s about twice the revenues earned by retailers. A lot of retailers will have to stop business if this continues,” says Times’ Mehra. Industry estimates reveal that real estate costs in India sometimes reach as high as 8%-10% of the revenues, whereas in the West, it accounts for 2% of revenues.

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