Real estate developers look to trim construction cots

Real estate developers in India are planning alternative measures to cut down costs of construction by about 15 to 20% owing to the recent hike in raw material inputs costs for construction, especially, cement. Red Fort Capital, in association with Nagarjuna Constructions and DLF, has replaced the use of cement in residential and hotel projects with cellular light weight concrete.

Besides, Red Fort Capital is currently talking to big developers in India to replace the use of cement with cellular light weight concrete. "This will benefit real estate developers in reducing costs of construction by 15%.

This is an emerging trend in the Indian real estate market," Kuldip Chawlla, director, Red Fort Capital Advisors Private Ltd, told FE.

According to Chawlla, “Cellular light weight concrete reduces the weight of cement needed in beams and columns, making them more durable, long lasting and generate cost of savings of upto at Rs 100 to Rs 200 per sq ft. Not only that, with the use of cellular light weight concrete, developers will be able to build affordable homes targeted at middle income groups at a much faster pace. ”

Big developers such as Larsen & Toubro, Hiranandani Constructions, Rahejas, Unitech, DLF and Kalpataru are looking at using cellular light weight concrete instead of cement for certain projects. Red Fort Capital is currently talking to these players to provide them with alternative options in construction.

(via Financial Express)

60 acres may be freed up for real estate development in Bandra

With Mumbai grappling for additional land for expansion, the city’s western suburb Bandra could see availability of close to 60 acres of real estate for development.

The residents of the Maharashtra government’s employee staff quarters have suggested that government redevelop the colony spread across 96 acres.

The resident’s association has suggested the government to redevelop the land on the build operate and transfer basis.

According to the proposed plan, the redevelopment project is expected to cost Rs 1,686 crore with an estimated revenue of Rs 1,899 crore.

It also makes provision for construction of government offices for the suburbs.

The Maharashtra government constructed the colony in 1958-60 on a reclaimed land.

Madhukar Vichare, advisor, Government Quarters Residence Association, said, “The relocating of existing staff in the multi-storey buildings will require 25-30 acres of land while the government can exploit the rest for further development.

The project will also fetch additional revenue to the government that is spending Rs 15-20 crore on annual maintenance.”

When contacted D B Deshpande, secretary, public works department, Maharashtra government, said that he could not comment on the proposal since the house is in session.

The government colony, which houses around 5,000 families, is strategically located on the western express highway and is close to Bandra-Kurla Complex developed as the city’s second business hub.

If approved the project will release a significant supply of real estate at Bandra (East), which has attracted corporate houses to set up new offices in recent years. According to the industry experts, the real estate rates at Bandra-Kurla Complex have jumped 100 per cent in the last three years.

Currently, Bandra (East) is commanding Rs 30,000-40,000 per sq ft for luxury apartments while residential rates are hovering around Rs 14,000 per sq ft. The rates for office spaces at Bandra-Kurla Complex are been quoted at Rs 350-375 per sq ft.

Sanjay Dutt, deputy managing director, Cushman & Wakefield, said, “The additional of piece of land will have huge impact of the area’s realty considering the strategic position of the colony. The specific assessment is not possible as the project will take time to come up if approved.”

The residents maintain that colony is living on a borrowed time and the July 2005 deluge has severely damaged the buildings, with 5-6 feet water entering the houses.

Vichare said, “The staff have already paid the cost of the houses through the HRA deductions and it is impossible to buy new houses at such high realty prices.”

(via Business Standard)

North Pole might be free of ice in 2008

Scientists have warned that the North Pole might be free of ice before the end of this year, turning into a vast expanse of water.

According to a report in New Scientist , Arctic scientists are preparing for this grim possibility after seeing a number of factors that have this year led to most of the Arctic ice being thin and vulnerable as it enters its summer melting season.

In September 2007, Arctic sea ice reached a record low, opening up the fabled North-West passage that runs from Greenland to Alaska.

The ice expanded again over the winter and in March 2008 covered a greater area than it had in March 2007. Although this was billed as good news in many media sources, the trend since 1978 is on the decline.

Although Arctic ice is at its maximum in March, that maximum is declining by 44,000 km square per year on average.

The extent of the ice is only half the picture, with satellite images showing that most of the Arctic ice at the moment is thin, young ice that has only been around since last autumn.

A fact that is adding to the worries is that multi-year ice, the stuff that doesn't melt in the summer, is not piling up as fast as Arctic ice generally is melting.

On average each year about half of the first year ice, formed between September and March, melts during the following summer. In 2007, nearly all of it disappeared.

Moreover, an atmospheric phenomenon known as the Arctic oscillation kicked into its strong, "positive", phase this winter. This is known to generate winds which push multi-year ice out of the Arctic along the east coast of Greenland.

Together, these are the factors that have led to most of the Arctic ice now being so young and thin.

Thin ice is far more vulnerable than thick ice that has piled up over several years.

"There is this thin first-year ice even at the North Pole at the moment," said Mark Serreze, of the US National Snow and Ice Data Center (NSIDC).

"This raises the spectre - the possibility that you could become ice free at the North Pole this year," he added.

"Even if you lost only half of the first-year ice this year, which would be average, you are still in for a very low ice extent this summer," said Serreze.

(via Indiatimes)

9 ways to greener buildings

Is the office building you're working in earth friendly?

It should be, if you want office productivity to increase substantially. "Green" building technologies have been long implemented in many developed countries not just because they're kind to Mother Nature, but also because these allow better use of resources, increase energy efficiency, and lessen the impact on individual health.

And now, amid the threat of global warming and the looming power rate hikes, the need for "green" buildings becomes more apparent.

Berna Santiago, head of Colliers Philippines' Sustainable Initiative Task Force, said that in recent years, communities in North America, Europe and Australia have implemented "Green Building" practices. Colliers International, a firm of real estate professionals, promotes green building practices.

Santiago's group has been dispelling "green building" myths, while showing how actual effective practices could be successfully implemented in the Philippines.

Colliers revealed that in the United States, an estimated $180 billion worth of worker productivity is added to the national income because of "green buildings," and $58 billion worth of sick time from work is saved. In addition, 40 percent of water use, 30 percent of greenhouse gases, and 50 to 75 percent of construction and demolition waste is saved when green buildings are fully implemented.

Santiago shared a number of suggestions from Colliers International Australia's Moving Times. These are general information of some commonly used "Green" initiatives:

1. Lights off. One of the easiest to do is to turn the lights off when not in use. Colliers suggests building managers to install "occupancy sensors" for different zones of the office or building. Sensors do away with manual switch offs. Lights typically consume over half the energy of an office, and installation costs can be paid off in just a few years.

2. Energy-efficient computers/equipment. Colliers suggests office personnel to use flat screens and laptops, which use much less energy than the old box monitors. Office purchasers also have to be mindful of the "energy star" ratings on equipment-which means they have to aim high.

3. Recycle. Either have separate bins for each recycling stream, or some waste/recycling companies can set up dry "recyclables" boxes for each desk that accommodates all streams and the wet waste goes into bins at central points.

4. Electronic docu instead of paper. Colliers says that these days it is easy to procure recycled content or plantation pulp paper. Set your printers and copiers to default double sided and encourage electronic documents.

5. Waterless urinals. Some buildings in the Philippines are already using waterless urinals, such as SM Mall of Asia. Colliers said many buildings now use urinals kept clean with small sanitizing cubes. Each waterless urinal is estimated to save 150,000 liters of water every year.

Read more

The world's most famous architects are turning to planning

Famous architects are no longer just in the business of designing signature buildings. They are also increasingly functioning as megascale planners, hand in glove with the biggest developers in the world and with local municipalities, usually with both.

Frank Gehry's controversial $4 billion, 22-acre project for Atlantic Yards in Brooklyn, N.Y., for Bruce Ratner of Forest City Ratner Cos. with the Empire State Development Corp., is only the tip of the iceberg. In downtown Los Angeles, Gehry is working on the first phase of a $1.8 billion development plan by the Related Cos. to turn the nine acres around his Walt Disney Concert Hall, which opened in 2003, into an “arts district” including a hotel, residences, retail establishments, restaurants, and public amenities. Another potential Gehry project, for Lehi, Utah, will be located on 85 acres, with housing, hotels, an amphitheater, and a sports arena; the scheme, for the owner of the Utah Flash basketball team, is worth $2 billion and won city council approval last August.

Elsewhere in the world, Daniel Libeskind is at work on a 4.5-million-square-foot, “skyline-creating” waterfront development in Busan, South Korea; a master plan with office towers, condominiums, a hotel, and a cultural institute for a three-mile development corridor south of the historic center of Copenhagen, Denmark; and a huge shopping and entertainment center on the west side of Bern, Switzerland, scheduled for completion this year and boasting a hyperactive menu of amenities such as a theme-park swimming pool, a movieplex, and a senior citizens' residence. In Morocco, Jean Nouvel is projecting a 345-acre low-rise, high-density suburb of Rabat, as well as a new port complex in Tangier.

Norman Foster has been retained as master planner for the historic center of Duisburg, a deindustrialized city in Germany's Ruhr Valley where he previously completed a renewal project for the inner harbor. He is also working on the first of a series of five hill towns for 15,000 residents on the Black Sea in Bulgaria and a car-free, waste-free, carbon-neutral “green utopia” for 50,000 in Abu Dhabi. This last—a collaboration between a government-owned oil company and the World Wildlife Fund (WWF)—is slated to cost $22 billion and be home to “international businesses and top minds in the field of sustainable and alternative energy.”

If some of these matches between private developers and public entities have entailed enormously complex financial and political handshakes, not to mention some strange bedfellows, the luster of big-name architecture is increasingly—and, when coupled with the rhetoric of sustainability, literally—providing a green light. Historically at odds, architecture and urban planning have found a rapprochement today on the terrain of high-profile, large-scale real estate development.

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What is the difference between a paint and a stain ?

The objective in applying a stain is usually to change the colour of the surface (typically bare wood) without hiding the texture of the material. Some stains, called semi-transparent stains, allow the grain pattern of the wood to be seen.

With paint, we create a new appearance, which may be flat, satiny, or glossy, and the texture and grain of the surface is obscured. Stains are typically thinner than paints. Interior stains are commonly also referred to as varnishes with a protective topcoat, whereas exterior stains are often left uncoated. In exterior applications, a quality paint job will generally last longer than will staining.

How to green your furniture

1. Certified sustainable wood

Whether a piece of furniture is made from wood, cloth, metal, plastic, or whatever else, there are earth-friendly options. When cave people realized that boulders weren’t the most comfortable things to sit on, wood was almost certainly where they looked, so let’s start there. The world needs more trees, not less, so practices that lead to deforestation aren’t any good. Not only do trees absorb carbon dioxide and produce oxygen, they keep the surface of the planet cool, they hold soil together so it can stay rich, and they provide the habitat that animals, insects, birds, and other plants call home, not to mention they support many people’s livelihood. Simply put, don’t mess with the trees. There are sustainable ways to harvest wood, however. Wood from sustainably harvested forests, sustainably harvested tree farms, and reclaimed wood are the main sources. Forest Stewardship Council (FSC) and its largest forest certifier, the Rainforest Alliance, is the most widely used standard for sustainable forestry.

2. Furniture made with reclaimed materials

If wood is taken care of, and sometimes even if it isn’t, it can last a really, really long time. So shouldn’t we be able to make good use of all the wood that’s already out there? A lot of designers think so and are doing just that. Reclaimed wood usually comes from old furniture, houses, or other built things that are ready for some friendly reincarnation, from flawed wood, or from scraps from a factory that makes other stuff. Some reclaimed wood even comes from logs that sunk to the bottom of rivers as they were being floated downstream to the sawmill, or from the bottom of man-made reservoirs (check out the Sawfish). Either way, furniture made from reclaimed wood is a great example of resource efficiency, but usually comes in shorter supply. The Rainforest Alliance has a Rediscovered Wood Certification label to look for.

3. Bamboo

You’ve probably heard by this point that bamboo isn’t a tree at all, but a grass. Bamboo represents a family of grasses that range in size from tiny to huge, and in color from lime green to maroon stripes. It is incredibly fast-growing and versatile and has become the unofficial poster material of environmental designers and builders. Bamboo can be flattened into flooring, molded into furniture, pressed into veneers, sliced up to make window blinds, or hey, you can just build your whole house out of it. Using bamboo in buildings earns architects and builders LEED points. Most bamboo comes from China and is grown with few of no pesticides. Because it is so fast growing, it is much easier to maintain healthy bamboo forests. This also means it uses a lot of water, however, and harvesting too fast can deplete soil fertility. Some growers do use pesticides and other chemical inputs, however, so keep that in mind. But for the most part, bamboo is one of the greenest materials around.

4. Recycled/recyclable metal and plastic

Since both metal and plastic are recyclable, at least in theory, these can be considered eco-friendly materials for furniture. More and more furniture is being made from recycled plastics and metals as well, like the recycled aluminum Icon Chair . Recycled materials require less processing and fewer resources, and help support the market for recycled materials. Technologies are always improving, meaning that recycled plastics and metals are always going up in quality. It’s not all about materials, though, so here are some basic guiding principles to keep in mind when looking for furniture.

5. Recyclable and disassemblable

Good eco-friendly furniture should lend itself to easy repair, disassembly, and recycling. Products certified by MBDC’s C2C (Cradle 2 Cradle) product regimen are a perfect example, like certified office chairs from Herman Miller and Steelcase. These product can be easily taken apart, sorted into their constituent parts, and recycled at the end of their useful lives. When buying furniture, stay away from “monstrous hybrids,” pieces that are an inseparable amalgam of materials. If they can’t be taken apart it’s probably a sign that they can’t be repaired very well either.

6. Look for furniture that’s durable and fixable

One of the most important but often overlooked aspects of green products (and this definitely goes for furniture) is durability. If something is tough and/or can be readily repaired, this lessens the chance that it’ll end up in the landfill, and could easily save you money in the long run, even if it’s initially more expensive. Even recyclable materials if they break (and can’t be fixed) require energy and other resources to reprocess and then replace. Durable goods that will last a long time can be passed on from person to person. Even if your style changes and that kitchen table isn’t your thing anymore, a good strong table will almost always be appealing to someone else, while a broken (and unfixable) one probably won’t. When it’s time to part with your possessions, think of Craigslist, Freecycle, or eBay, and find it a new home.

7. Low-toxicity furniture

When you buy a piece of furniture, bring it home, and set it down in a room, it doesn’t just sit there. No matter what it’s made out of, chances are, it’s offgassing (or releasing substances into the air). Almost everything offgasses, which isn’t necessarily bad, but synthetic materials or those treated with synthetic substances can offgas chemicals which are toxic. Volatile organic compounds, or VOCs, are the most common family of chemicals that are offgassed and have been linked to birth defects, endocrine disruption, and cancer. Flame retardants and formaldehyde are common VOCs offgassed by furniture. Especially if your home or office is well-insulated (which it should be for energy purposes) toxins can’t get out easily. In fact, studies have shown that air quality inside your house (or car) is often worse than outside. Everyone should be conscious of the kinds of chemicals they bring home, but especially if you have kids, pets, or other family members who are low to the ground and prone to licking things. There are some good ways to help maintain good indoor air quality when it comes to furniture choices.

Greenguard is a certification which ensures furniture is low toxicity. Herman Miller, Haworth, Knoll, and Izzydesign all offer Greenguard certified furniture options. Also, look for furniture that is untreated or treated with natural substances, like natural wood finishes, or naturally tanned leather. Organic cotton is also less likely to be treated with toxic stuff. Another great way to dodge toxic chemicals is to buy furniture that is vintage or second-hand and has already done most of its offgassing (just make sure it doesn’t carry anything worse, like lead paint). You can tell intuitively that new things offgas more actively—just think of that new car smell.

8. Buy vintage

With all the slick, mod, “eco” brands jumping into the market it can be hard to keep in mind that pre-owned goods can be the most green purchase of all. Vintage and second-hand and furniture requires no additional resources to manufacture, is often locally sources (cutting down on transportation), is pre-offgassed and eases the load on the landfill. Quality vintage furniture can also have excellent resale value (sometimes selling for the same price it was bought) which certainly can’t be said for most new furniture, green or otherwise.

9. Buy local

Just like the food on the dinner plate, we might be amazed how many miles the constituent parts of a piece of furniture might have had to travel in order to reach us. If possible, source furniture close to home. This will support the local economy, small craftspeople, and decrease the environmental cost of shipping (not to mention the other kind of cost).

10. What to do with it when you’re over it

We can’t promise we’re going to like something forever or that our furnishing needs won’t change. When it’s time to bid a chair, table, bed, or dresser farewell, make sure it goes to a good home. Sell it on Craigslist, eBay, or the local paper, give it away via Freecycle, or include it in your next yard sale. Putting it safely on the curb with a “free” sign on it can also do the trick. If you are the crafty type, lots of furniture can be repurposed into new functions or just freshened up with new paint or finish. No sturdy artifact should have to live out eternity in the landfill

(via Treehugger.)

5 ways to uncramp your living room

You can make your living room seem airier through the artful choice of furniture and accessories. Decorators recommend these techniques:

• Choose just a few pieces of furniture -- declutter!
  
  
• Choose light colors for the furniture and your wall paint, and match some of the furniture to the walls. Avoid busy prints in upholstery.
  
  
• Choose low-slung, unobtrusive furniture and don't block windows or doors.
  
  
• Choose tables with glass or mirror tops.
  
  
• Choose sheer fabrics for window treatments and tablecloths.

(via RD.com)

What is high quality paint?

Imagine the perfect latex paint. It sticks to anything, covers in one coat, levels smoothly, is strong yet flexible and lasts for decades. It never fades or chalks. It discourages mildew growth and is formulated so you can apply it in cold weather. And it doesn’t drip.

Unfortunately, that perfect paint has yet to be developed. Never will be, either. The ingredients in a batch of paint just have too many limitations and trade-offs. But while there may be no such thing as perfect paint, there are definitely high- and low-quality paints.

Here we’ll look at the differences, particularly as they apply to exterior latex paints. And why it’s worth it to buy the good stuff.

HIGH- AND LOW-QUALITY PAINT ARE THE SAME THICKNESS WHEN APPLIED WET, BUT HIGH-QUALITY PAINT LEAVES A THICKER FILM WHEN THE SOLVENTS EVAPORATE AND THE PAINT DRIES.

High-quality paint has more total solids (pigments plus resins) and fewer solvents than lower-quality paint. So while the two may go on with the same thickness, when the solvents evaporate, a high-quality paint leaves a thicker, tougher paint film.

Low-quality paint has fewer solids and more solvents. Once the solvents evaporate, the thinner paint film left behind is less durable and doesn’t cover as well. You’ll spend more time and money repainting to achieve the performance of a high-quality paint.

Snowcem Paints enters Wikipedia

Snowcem is an internationally recognized manufacturer of paint which was launched in India in 1959 with a premium cement paint. Between 1963 and 1969 speciality products, such as Impermo, Hardcrete, Cemprover, Cemix, Snowfilla and Snowsol were successfully introduced.

In 1970's Sandtex Matt a prime exterior liquid coating in Europe was launched which met with unprecedented success. Two new products were launched in 1997 - Premium quality Snowcryl XT, a pure acrylic base smooth exterior finish and Impermo, integral cement water proofing compound, in liquid form.

1999 three new products were introduced: Uni- Glosss a multi-surface paint system, Trump a smooth exterior emulsion paint and Snowplast an acrylic finishing plaster for interiors.

During last few years many new economy products such as Allrounder, Cemcolour and Biowash have been introduced. The company has recently launched SnowDecor, a complete range of texture finish products in the market.

Snowcem Paints: Life hamesha rahe colorful

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Interest rates on home loans likely to rise

Interest rates on home and retail loans are expected to rise, as a fallout of Reserve Bank on Thursday announcing a 0.5 per cent hike in Cash Reserve Ratio (CRR) to squeeze money supply to rid the economy of inflation.

The CRR, the amount of funds banks are required to park with the apex bank, has been raised to 8 per cent to suck out Rs 18,500-crore liquidity from the system.

Since banks would be left with less cash to lend and have to source funds at a higher cost, including by raising deposit rates, they may increase lending rates that will in turn temper demand and cool inflation that is at a three-year high of 7.14 per cent.

The CRR would be hiked by 0.25 per cent from April 26 and by an identical percentage from May 10.

Year-on-year inflation, which was 3.83 per cent during the last credit policy in January, had gone up to 7.41 per cent on March 29 before marginally falling to 7.14 per cent on April 5.

In the light of the current macroeconomic monetary and anticipated liquidity conditions and with a view to containing inflationary expectations, it is essential to take appropriate action on an urgent basis, an RBI release said here.

(via Economic Times)

Mumbai, Delhi could see 10% correction in real estate prices

Residential prices are expected to see a 5-15% decline in Gurgaon, Noida, Pune and Bangalore because of a surge in supply that outstrips demand in these overheated property markets, according to a report by Macquarie Research.

At present, prices in Gurgaon, Noida, Pune and Bangalore are between Rs3,500 and Rs7,500 per sq. ft. In South Mumbai, the limited scope for new supply will either see prices remaining flat or increasing by about 5%. This is however less than the 5-15% increase in prices the region has seen in the last 12 months.

Some areas in Mumbai’s suburbs and Delhi could see a 10% correction in prices. “If demand is hit and if the expected supply does come up, we will see a reasonable correction in micro markets in some cities,” Abhishek Gupta, Head, Research, Jones Lang LaSalle Meghraj, a real estate consultancy firm said.

Cities such as Hyderabad, Chennai and Kolkata are expected to see a 5-15% increase in prices in the residential segment because of the low or moderate levels of prices in the region. Tier II or smaller cities such as Ahmedabad, Chandigarh, Indore, Jaipur, Mangalore, Mysore and Raipur are also expected to see prices increase by 5-15%. However, this is less than the 10-25% price increase the cities witnessed in the last one year.

The study ranks Chennai and Kolkata as the most attractive markets in the residential segment and Gurgaon and Pune as the most unattractive markets.

Real estate prices in India have risen each year for the past five years as tax benefits for home ownership and rising wages helped more people buy homes. That, coupled with a rising stock market created wealth that went into property. However, rising interest rates and a decline in the stock market this year and dearer credit is slamming the brakes on this growth.

Retail rentals are also expected to see a correction in certain cities over the next one year. Lack of supply has driven rentals to a level where retailers find it hard to operate profitably. “With retail sector margins in the 3-5% region and rentals as high as 15-20% of sales in certain geographies, a rent correction is imminent,” the report says.

Read more.

Exterior paint frosting

A white, salt-like substance on the paint surface. Frosting can occur on any paint color, but it is less noticeable on white paint or lighter tints. On masonry, it can be mistaken for efflorescence.

POSSIBLE CAUSES:

* Forms mostly in protected areas (such as under eaves and on porch ceilings) that do not receive the cleansing action of rain, dew and other moisture.
* Use of dark-colored paints that have been formulated with calcium carbonate extender.
Application of a dark-colored paint over a paint or primer containing calcium carbonate extender.

SOLUTION:

* Frosting can be a stubborn problem. It often cannot be washed off readily. Moreover, the condition can recur even as a bleed-through when a new top coat is applied. In extreme cases, it can interfere with adhesion. The best remedy is to remove the frosting by wirebrushing masonry or sanding wood surfaces; rinse, then apply an alkyd-based primer before adding a coat of high quality exterior paint.

Candles for bedroom design

EMI bait for home buyers

The subdued response at the recent land auction in Mumbai’s coveted Bandra Kurla complex indicates signs of cracks on the great wall of the property market.

Indeed, sales volumes in the NCR region -- and even Mumbai -- have fallen by 50-60 per cent. Similarly, the sale of property is down by 30-40 per cent in Hyderabad, Chennai and Bangalore.

No wonder then, that developers of many projects have started offering incentives to homebuyers.

One such popular scheme aimed at attracting consumers is an EMI (Equated Monthly Installment) payment scheme. Here, the developer ties up with a bank for a certain project. The homebuyer pays only 15-20% of the property’s sale value upfront, at the time of booking. The bank will pay the remaining 80-85 per cent to the developer.

But now, developers are offering to bear the EMI cost of the home buyer till the date of possession of the apartment. This reduces the consumers’ burden to pay both the rent -- if he is currently living in a rented home -- as well as the EMI on the home loan.

The developer benefits as he gets 100 per cent of the apartment value in just a couple of days to fund the construction of his project, instead of getting the payment over 2.5 years, which is how the usual time and construction linked payment is made.

Some projects that offer this scheme:

• Parsvnath's Preston in Sonepat in the NCR
• City of Joy by the Nirmal Group in Mulund, a Mumbai suburb
• Vista by K Raheja corp
• Nahar Amrutshakti in Powai, Mumbai.

In Bangalore, some projects are offering the EMI scheme, while others offer free modular kitchens and furnished apartments in areas like Sarjapur, outer Ring road, Maratahalli and Whitefield.
So, have you invested in the property market and are wondering whether to sell out?

Consultants advise that if you have already made a reasonable expected return or profit, there’s no better time to sell than now because there is not too much upside left in the property market, at least, for the next 18 months.

(Via Moneycontrol.com)

Metros losing out, real estate wants Rs 20 lakh home loan ceiling raised

With inflation rising, the run-up to the April monetary policy has been overtaken by talk of a likely increase in either the repo rate (the rate at which the RBI lends to the banks) or Cash Reserve Ratio (the amount of funds that banks have to keep with the RBI) but what seems almost certain is that home loan rates will either remain where they are or go up further.

Deepak Parekh, Chairman, HDFC, told The Indian Express “it is most likely that there will an upward revision either in the CRR or repo rate and so the home loan rates could go up marginally.”

But there’s another area which is causing greater concern, especially among real estate players and the others involved — the Rs 20 lakh limit for priority sector lending. There’s need, they say, to revise the limit upward from Rs 20 lakh or introduce a differential limit for Tier I, II and III cities so that home buyers in larger towns too can benefit. The other way out, they suggest, is to increase the tax benefit limit of Rs 1.5 lakh for the interest component paid on a home loan.

Anuj Puri, Managing Director, Trammel Crow Meghraj, a multinational real estate consultancy, said: “There are properties within the Rs 20 lakh limit in smaller cities but home buyers in larger cities are getting little benefit from it. I think there should be differential limits based on the tier of the town — like Rs 45 lakh for Tier I, Rs 25 lakh for Tier II and Rs 15 lakh for Tier III cities. The tier classification can be based on the population of the town. Also the tax benefit limit of Rs 1.5 lakh on the interest component repaid should go up. This will bring down the post-tax interest cost for home buyers.”

Industry players are of the same view. Rajeev Talwar, Group Executive Director, DLF, said: “Property prices have risen due to a supply gap created as a result of land not being released. There is need for Government to raise the limit for priority sector lending from Rs 20 lakh if they want the credit offtake to go up. Also the limit on tax benefit should be raised from Rs 1.5 lakh. The basic idea should be to allow the economy to flourish and there should be no artificial barrier.”

Read more.

What are the tax benefits of home loans?

Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assessees, who have taken a loan to either buy or build a house, under Section 24(b).

(A) Interest on borrowed capital is deductible as follows:

1. If the following conditions are satisfied, interest on borrowed capital is deductible up to Rs 150,000.

• Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property.
• The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed.
• The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house or as refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction.

2. If the conditions stated above are not satisfied, then the interest on borrowed capital is deductible up to Rs 30,000. However, the following conditions have to be fulfilled:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property.

Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.

If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed

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Women in art

500 years of female portraits in Western art.

Feng Shui tips for renovation

Are you thinking of renovating or remodeling your home? If you do, I strongly suggest you look into feng shui for remodeling and renovating and take some time to assure the success of your renovation by applying feng shui principles. Think how this renovation will change the flow of energy in your home and employ feng shui to achieve the best results for you and your family. Feng Shui knowledge is about your connection to your immediate environment and its influence on your health, well-being and overall quality of your life, thus, feng shui for renovating and remodeling should be high on your list of priorities when planning to remodel. If you are renovating because your family is growing, here are some feng shui tips to consider:

• Allow for a balanced space for each family member, i.e. if you need two additional bedrooms for your growing family, create bedrooms that are somewhat similar in size, versus a bigger and a smaller one. You want you children to feel equally loved and taken care of, versus fighting who has the bigger bedroom and why.



• With all the importance we place on the kitchen as the heart of the house and the area strongly connected to abundance, you do not want to change the flow in a way that you see the kitchen right as you come home, or right from your bedroom, as this is not good feng shui.



• Do not overlook the importance of lighting, especially in areas where there is little natural light, do discuss and plan the lighting options in advance with your architect or contractor to be sure your needs are covered.



• Familiarize yourself with the basics of the Ba-Gua, or the energy map of your space, as well as the interaction of the five elements, to be sure you have a good foundation for the energy flow in your space. For example, let's say you are adding to the South area of your House and you are selecting materials and colors, etc. Knowing that South is connected to the element of Fire, you will avoid selecting materials with a predominant black or blue color scheme, as these are Water element colors, and Water puts down the Fire, thus these colors will weaken the energy in the South area of your space.

Keep exploring feng shui; start with the basics and then move on to more complex levels. The decision to apply feng shui knowledge in your life might be one of the best decisions you ever made for your own happiness and well-being.

(via About.com)

14 free and low-cost energy saving tips

1. Turn off everything not in use: lights, TVs, computers, etc.
2. Check your furnace or air conditioner filter each month. Dirty filters block air flow through your heating and cooling systems, increasing energy use.
3. During hot months, keep window coverings closed on the south, east, and west windows. In winter, let the sun in.
4. Activate "sleep" features on computers and office equipment that power down when not in use for a while. Turn off equipment during longer periods of non-use.
5. Dress appropriately for the weather, and set your thermostat to the lowest possible comfortable setting. On winter nights, put an extra blanket on the bed and turn down your thermostat.
6. In summer, use fans whenever possible instead of air conditioning . Using fans to supplement air conditioning allows you to raise the thermostat temperature, using less energy. Fans use less energy than air conditioning.
7. About 15% of an average home energy bill goes to heating water. To save hot water, take five-minute showers instead of baths. Do only full loads when using the clothes washer or dishwasher. Lower the temperature on your water heater so that you are not having to add cold water to shower.
8. Switch to cold water washing of laundry. Use detergent formulated for cold water to get clothes just as clean.
9. Only heat or cool the rooms you need. Close vents and doors of unused rooms.
10. Install low flow showerheads and sink aerators to reduce hot water use.
11. Seal and weatherstrip your windows and doors to ensure that you're not wasting energy on heat or air conditioning that escapes through leaks to the outdoors.
12. Insulation your hot water tank to keep the heat from escaping.
13. Look for energy efficiency labels when buying new products such as TVs, furnaces, cell phones, refrigerators and air conditioners.
14. Replace your five most used light bulbs with compact fluorescent bulbs. These light bulbs use two-thirds less energy and last up to 10 times longer.

How to use a hammer

Hammers are helpful around the house, unless you're the type to smash your thumb whenever you use one. Find out how to hold and use a hammer safely.

Frustrated with your room? Ceiling tiles may be your answer

Ceiling tiles are one of those decorating materials few people know exist, and if they do, they rarely think to use them. We've grown so accustomed to boring, white ceilings that it rarely crosses our mind to decorate them. But often that's just what we need.

If you were to take a quick tour of your home, you'd be shocked by how much of your ceilings you actually see. Ceilings have a big impact on our rooms, and one way to make them stand out is to cover them with decorative ceiling tiles or planks.

Is there a correction in Pune real esate?

Ostensibly, all seems hunky-dory and that’s exactly what the city builders keep saying. But scratch the surface, follow the trail to its origin, piece together seemingly not-so-related issues and the big picture begins to emerge, one that tells a different story.

To go back to where it all began, the US sub-prime home loan rates issue has already negatively impacted most exporters, especially the IT companies. Just as the realty boom, to a large extent, was powered by the IT sector, a slowdown there, it can be logically concluded, will also have a negative effect on the domestic real estate. In fact it already has.

To make matters worse, for IT sector where luxuries such as bench strength are a distant dream, the private banks are no longer lending at rates as low as 7.75 per cent but at around 12 per cent. In effect, while the salaries of IT companies have taken a down turn, the EMI liability for the borrower has gone up by nearly Rs 5000 per Rs 10 lakh loan.

For the banks these loan accounts, when the default period crosses 90 days, translates into non performing assets (NPA), which in turn will negatively impact the bank’s profitability, pushing the banks or even the borrowers to liquidate the property. This will give rise to a situation not unlike what hit the US real estate market about a year ago.

The Indian Express asked a cross-section of stakeholders as to what’s in store for the city’s real estate sector in the next six months. Excerpts:

Maj (retd) Mathew Oommen, property consultant, Ambience, a property management company
Recently, a buyer wanted property in Kalyani Nagar. The seller was quoting Rs nine crore for the bunglow. The buyer, himself a businessman, said, ‘In Pune, there are two prices - fancy prices and realistic prices. Rs nine crore is a fancy price”.

Currently, in the city, fancy prices are a far cry from the realistic price. Of course there will be a price correction. It should happen within six months. The big builders have holding power, the smaller ones that will face the brunt of the collapse.

Col (retd) AK Ahuja, property consultant and member of managing committee Estate Agents Association of Pune
It’s a little premature to predict right now if there will be a correction in the Pune market because February and March are slow months as it is and also the property scene has been hit by the exodus of workers. So the picture will be clear only in the next 15-20 days. But the rates are completely stagnant in the city.

Rohit Gera, executive director, Gera Developers
No, I don’t think a correction is in the offing. Fundamentally there is an existing demand for housing in the city and even at the current prices Pune offers great value for money. What kind of a reduction are we talking about? If it’s three to five per cent, then it’s inconsequential. Even a Rs 100-150 up and down doesn’t affect the market so much. It must be at least 20 to 30 per cent and I don’t see that kind of thing happening in Pune.

Sanjay Lunkad, director, Rohan Builders
Whatever goes up has to come down and there are pockets in Pune where the rates have been corrected. Even if one person drops his rates the others are tremendously affected by it. There was a correction last year in Bangalore so I guess here too there will be stabilisation, I wouldn’t want to call it correction.

Kunal Gangakhedkar, manager, IBM and a potential buyer
I think the correction is already happening. In areas like Kalyani Nagar I have been tracking the same ads for a long time which means there hasn’t been great response to the high rates. In Bangalore the prices did come down by 15 to 20 per cent and I expect at least the same rate correction here too.

Sugandh Vighne, architect, potential buyer
I have decided not to buy a house now because I know it is not within my reach. The price hike is as high as Mumbai but there are no matching specifications. Being an architect I can categorically say that it isn’t a fair deal here. So there is no doubt that the prices need to be corrected.

Asha Misra, potential NRI investor
Two years ago when we were looking for a place to invest in, in Pune we saw these lovely flats in Kalyani Nagar for about Rs 60 lakh and some nice houses for Rs 70-80 lakh, but didn’t go in for it. This year when we came back, we thought we should make the investment but were shocked to find that the same places are now for Rs 1.4 to 1.5 crore. It’s crazy. There is no question of us investing at these rates.

Deepak Shikarpur, president, Computer society of India
Four years ago the Maharashtra government had announced an IT policy that entailed the setting up of IT parks with special concessions given to them. But as soon as the property market started to boom, they withdrew all the concessions. These need to be given back for starters as the companies will start looking elsewhere. Already Infosys has a new facility coming up in Kolhapur and TCS and Satyam have bought land in Goa. I have had IT company CEOs asking me to suggest a location 50-60 kilometers away from Pune where land is more affordable. Builders will not admit to a price reduction but when you start talking to them across the table they’re all willing to negotiate. My view is that in the next six months prices will come down by 30 per cent.

Sonal Modi, general manager, Maharashtra HDFC
We expect the Property prices to correct as such high prices are not sustainable. The investors are completely out of the market. The developers have been able to artificially manage the high prices that prevail today but these prices have to correct at some point in time.

(via Indian Express.)

Real Estate Television to be on air soon

Real Estate Television, India's first 24x7 channel dedicated to real estate and infrastructure will be available on all the major direct-to-home (DTH) platforms of the country.

The channel has already signed with major cable operators in metros and major cities across the country.

Among the major distribution platforms, Real Estate Television has signed agreements with Hathway and Amogh in Bangalore, Hathway and SCV in Chennai, InCable and Seven Star in Mumbai and InCable in Delhi. It is also available across the leading cable networks in the Tier-2 cities.

A Rs.1 billion investment outlay has been made for running the channel by Alliance Broadcasting Pvt Ltd, the group company.

Manoj Namburu, chief managing director of Alliance Group, announced Tuesday "RETV will also be very shortly available on all the major DTH platforms of the country."

"The English language, pan-India channel will be a virtual one-stop shop for any information on real estate and infrastructure," he added.

"It has been designed to provide comprehensive, latest and authentic updates on all aspects of real estate, including infrastructure, to viewers all over the country, the south and south-east Asian region and Gulf states where there is a strong NRI presence", Namburu said.

The Network's studios in Bangalore, Mumbai, Delhi-NCR, Chennai and Hyderabad continually feed news relating to real estate and infrastructure from their respective regions to its hourly Realty Check bulletins.

RETV hosts a number of programmes related to Real estate and Infrastructure - ranging from a Game-show and Property and Realty stock prices to celebrity homes, architecture, interior design, furniture & furnishings, and from Indian Habitats to Vastu & Feng-shui and home makeovers.

(via Economic Times)

Color chart at the MOMA

I went to the new show “Color Chart” at MoMA thinking I’d have a new set of color inspirations to suggest for interiors based on the work of these artists. What I came away with instead were several contradictory thoughts on the usage and history of color in paint...

For most of the history of painting, artists and their assistants mixed their own paints. Palettes were simple, consisting of red and yellow ochre, earth tones, black and white, with maybe a personal favorite thrown in. If a patron was willing to fund it, add vermilion and ultramarine, which incidentally is why Christ always had red robes and the Virgin bright blue. Synthetic pigments gave the Impressionists bright new colors to play with but paint was still something of a cottage industry.

By the time 1950 rolled around, paint was mass-produced and color stocks were standardized, plus the introduction of acrylic paint to the market all meant that artists were left with an unprecedented array of color options to choose from. There are two major themes on display in this exhibition—artists working with industrial paint products, and artists using a paint store color index as a point of reference.

The show is scintillating, with walls everywhere covered in checkerboards of contrasting color. It’s easy to understand why artists were drawn to these new standardized indices—to hold one of these newly minted color charts in your hand with its many new options, one would want to leap into the studio and start experimenting. Appropriately, much of the work feels like pages from a fan deck writ big.

An early Marcel Duchamp piece entitled “Tu M’” contains lozenge shapes representing the first color chips available. Paintings by Gerhard Richter and Jim Dine look literally like large color samples. It’s easy to imagine artist like Ellsworth Kelley cutting up his own color charts to make the small collages that eventually become larger work. Jennifer Bartlett and Damien Hirst offer a contemporary spin on this idea.

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What's the impact of the Mumbai FSI hike?

More supply and a possible fall in prices. That is what is in store for Mumbai's property market.

The Maharashtra government has increased the FSI or the permissible developable area in suburban Mumbai from 1 to 1.33.

That means developers would be able to build an additional 33% on a given plot of land from the suburb of Bandra up to Mulund and Dahisar.

But developers have to pay for the additional FSI on the basis of current market value as per the Ready Reckoner.

However, prices based on the Ready Reckoner are lower than the existing premium paid for transfer of development rights or TDR. This is traded by private developers at a premium to increase the buildable area in Mumbai's suburbs. Therefore, the premium on transfer of development rights could come down.

However, there is a further catch to this. The FSI in suburban Mumbai already has a cap of 2 with the use of TDR. This cap will remain at 2 irrespective of the government raising the base FSI to 1.33. This means that the TDR could reduce and eventually, property prices could come down.

(via Moneycontrol.com)