Sylvia Earle: How to protect the oceans

Legendary ocean researcher Sylvia Earle shares astonishing images of the ocean -- and shocking stats about its rapid decline -- as she makes her wish: that we will join her in protecting the vital blue heart of the planet.

Why you should listen to her:

Sylvia Earle, called "Her Deepness" by the New Yorker and the New York Times, "Living Legend" by the Library of Congress and "Hero for the Planet" by Time, is an oceanographer, explorer, author and lecturer with a deep commitment to research through personal exploration.

Earle’s work has been at the frontier of deep ocean exploration for four decades. Earle has led more than 50 expeditions worldwide involving more than 6,000 hours underwater. As captain of the first all-female team to live underwater, she and her fellow scientists received a ticker-tape parade and White House reception upon their return to the surface. In 1979, Sylvia Earle walked untethered on the sea floor at a lower depth than any other woman before or since. In the 1980s she started the companies Deep Ocean Engineering and Deep Ocean Technologies with engineer Graham Hawkes to design and build undersea vehicles that allow scientists to work at previously inaccessible depths. In the early 1990s, Dr. Earle served as Chief Scientist of the National Oceanographic and Atmospheric Administration. At present she is explorer-in-residence at the National Geographic Society.

Sylvia Earle is a dedicated advocate for the world’s oceans and the creatures that live in them. Her voice speaks with wonder and amazement at the glory of the oceans and with urgency to awaken the public from its ignorance about the role the oceans plays in all of our lives and the importance of maintaining their health.

"We've got to somehow stabilize our connection to nature so that in 50 years from now, 500 years, 5,000 years from now there will still be a wild system and respect for what it takes to sustain us."

Sylvia Earle

Instant offices: demand of a new age

With the geographical boundaries blurring, expanding businesses in new locations is being recognised as the best possible way to growth. However, setting up a new office in a new location is expensive and carries the risk of financial wastage in case the business has to be wound up.

To counter this, professionals and large organisations seeking a market presence, or looking for business expansion in another city or in India, are opting for serviced offices.

Compared to the conventional leased office space, a serviced office does not require furnishing or lease agreement and provides an ideal business environment in terms of immediacy, flexibility, location and cost.

Regardless of the fact that the company stays on for two years or for two months, the executives just walk in, fill out the agreement papers and start their business.

The offices come with complete fit outs, in spaces as small as 400 sq ft to one that accommodates 50 to 300 staff. Secretarial support,

Internet services, security and total EPBX support are available on demand. Most offer conference and meeting rooms for presentations and even virtual offices with complete internet and secretarial support, helping companies focus on critical issues like developing business, meeting clients, clinching deals and conducting business from day one.

The firms pay for services on 'pay as you use' basis. Additional space can be allocated at a short notice and companies have the option of renting additional space for a day to carry out brainstorming sessions, client meetings, staff interviews and other activities, saving significantly on overheads and capital outflow.

Says Anshuman Magazine, South Asia CMD, CB Richard Ellis, “The concept has taken off in the last couple of years as more business enterprises are coming up.

It is specially useful for small start-ups that want to start out with a small staff, or those who are absolutely at the initial stage of business, still looking out for clients and contracts. A serviced office space is the preferred way of working for people who need to stay in the location for two to three months and return to their base location.”

The concept of serviced offices or business centres has been around in the US and Europe for more than 15 years. In India too, business centres have been around for more than ten years, but it is only now that multinational companies have begun to set up such office spaces in India with trained staff and international standard services.

“MNCs specialising in serviced office spaces bring along the expertise of offering top class spaces, and services with leased Internet lines for speedy uninterrupted connectivity,” says Magazine. In cities like New York, serviced office spaces account for almost 10 per cent of the total office space. In India, the inventory is still small.

The other reason for such offices being in demand for the past few years, is the high rentals of office premises, say experts. Many MNCs looking to set up an office in the country, like to keep their expenditure to a minimum.

Meenal Sinha, GM, Servcorp, a multinational company which has tied up with K Raheja Corp to offer serviced office space says, “A typical serviced office of 1500 sq. ft., complete with fit-outs, staff support and technical personnel, communication system, connectivity and incidental, costs not more than Rs 2.9 lakh per month.

A traditional office works out at Rs 6.37 lakh for a month. Moreover the lease agreement is usually done on a yearly basis and winding up at a short notice becomes difficult.”

Anshuman Malik, vice president, Incube Business Centre says, “Setting up office in India for a person who is new to the country could be difficult, expensive and time consuming. Apart from the challenges of moving staff, files, furniture, other facilities such as telephone, internet, boardroom facilities could take time to set up and the actual business may take months to start.”

Malik adds, “Since the last decade, the revolution in information technologies and liberalisation of economy have created enormous opportunities for knowledge-based businesses as well as challenges for planners to create new jobs now needed the world over. The business centre helps tackle the obstacles faced by entrepreneurs and facilitates the venture creation process.”

Meenal Sinha, says, “This is an era of speed and efficient delivery. Businesses have to minimise gestation period and concentrate on their core area of expertise. A fully functional office with premium fit-out, classy reception areas, superior IT connectivity in a good location eliminates starting hiccups.

State-of-the-art technology like hot-desking allows online access to all the services anywhere and anytime, while dedicated leased internet lines ensure speedy download and communications. These redefine the method of doing business professionally with a local business number and dedicated trained receptionist to manage all calls.”

Sean Morgan, MD, Avanta,a serviced office located in a plush area, finds it hassle free. “India is a preferred destination, but its working ways and cultural fabric can be difficult to understand in the beginning. Moreover the recent terror attacks have created a kind of uncertainty.

Despite these, you need a plush address and an office in an instant with minimum wastage. A serviced office is the answer as you can actually get complete confidentiality of your business, high level of security, secretarial and administrative support on a shared basis. Winding up is easy.”

The clients feel this works well when the need is to deliver from day one. Dr. Kant Singh, of International Business Wales a UK based government agency says, “I save 30 per cent of my time by operating from a serviced office as most of my needs like internet, fax, photocopiers, couriers and dispatch are fulfilled in an efficient and professional manner. I get a total professional atmosphere to work from.”

Shardul Padhye of Top Source Infotech, who manages a sales and marketing office here, operates from a virtual serviced office effortlessly without courting hassles of maintaining equipment and office support.

“I work with a three-member team and all of us travel. One seat in the serviced office is enough to take care of our needs when we require a physical space. The rest are managed through virtual office which provides good connectivity, through hot-desk and leased internet line,” he says.

Surely, in these times of uncertainty, serviced offices are the best option. Not surprisingly, many companies are setting up such offices in India. After all, it pays to serve their residents who run their businesses from these premises.


(via Economic Times)

Lotus Temple, New Delhi

On the difference between the ideals of “architecture” and mere “construction”, the renowned 20^th century architect Le Corbusier wrote: “You employ stone, wood, and concrete, and with these materials you build houses and palaces: that is construction. Ingenuity is at work. But suddenly you touch my heart, you do me good. I am happy and I say: This is beautiful. That is architecture”.

Source: Click Here

Villages hidden in Mumbai

Once an indelible part of Mumbai’s landscape, many gaothans are now struggling to exist in a city that is aiming for the skies. We do a realty check at four prominent gaothans.

Khotachiwadi: The cosmopolitan gaothan
Located in the commercial heart of Girgaum is the charming little village of Khotachiwadi, which has so far managed to resist invasion by Mumbai’s mind-boggling traffic. Declared a Grade III heritage precinct in 1995, Khotachiwadi is a web of narrow alleys lined by century-old bungalows with trellised balconies, open porches, curling staircases, and sloping tiled roofs.

Andheri Gaothan: Dying a slow death
Just a few feet from Andheri railway station is a narrow, dingy lane that leads to the Andheri gaothan. But those hoping to find ancient cottages and Portuguese-style bungalows here are in for a rude shock. Pale yellow Slum Rehabilitation Authority (SRA) buildings dot the area. If you look harder, you will find a few decrepit cottages made of stone and wood with thatched bamboo roofs. The area once boasted of as many as 50 magnificent cottages, but the number has come down to a mere 15, all thanks to rampant illegal construction.

Chuim Village: Where life comes to a standstill
Nestled cosily in Bandra’s belly is the quaint Chuim village with its matrix of wooden cottages and two-storey structures. The old bungalows still look robust and unique with their wooden frameworks, circular staircases, iron-grilled windows, and attics. Pot-bellied senior citizens relax in their verandahs watching life move by while the womenfolk break into small discussions with verve in the narrow by-lanes. People here continue to live their laidback lives, completely oblivious to the hustle and bustle of Mumbai.

Chembur Gaothan: Away from the bustle
Situated a short distance away from the railway station is Chembur gaothan. Another laidback gaothan within the maximum city, the place has a peculiar history of its own. At present, there are 150 structures, mainly old Portuguese-style cottages, in the gaothan. While most of the cottages are well-maintained, some appear to be just getting by. Lush green tress surround most of the bungalows. Big wooden windows, thatched roofs, and open verandahs add to the beauty of this gaothan.

(View slideshow via DNA)

Toss that toxic couch

Whether you're a design junkie who obsesses over every piece of furniture in the house or a low-maintenance IKEA type, there's no question that the surfaces on which you sleep, eat and lounge are a big part of your everyday life. And like most choices we make, the furniture that fills our home not only affects our comfort levels, but also has an impact on the environment and our health.

There are many good reasons to seek out green furniture: Keeping excessive manufacturing waste out of landfills; saving endangered forests; and improving indoor air quality by reducing the use of toxic chemicals are a few of the big ones. And as innovative designers become increasingly tuned in to the desires of the consumer who is as style savvy as she is environmentally conscious, options abound for outfitting your pad with supremely cool gear that doesn't forget the planet.

Sound too good to be true? Economically, it may be. Though rapidly growing, green design is still a relatively small segment of the furniture market, which often results in hefty price tags for even simple pieces. The solution? Start slowly.

Just as it's impossible to instantly transform every piece of your wardrobe into organic cotton, it's unrealistic to quickly fill your home with furniture crafted from sustainably harvested wood. While you're saving up for the big-ticket items like the Isabella Bed from RC Green — made from Forest Stewardship Council (FSC)-certified wood and natural latex — you can score furniture that is eco- and wallet-friendly by seeking out previously owned pieces. Reusing is always the greenest option as it doesn't require new materials or the energy required for manufacturing, and it keeps another item out of the landfill. You can go the craigslist.org or freecycle.net route or you can hunt for vintage and antique items.

But if you've got the green to purchase new green pieces, keep these tips in mind as you shop:

• Look for furniture made from reclaimed materials. Houses, kitchen tables, pianos, baseball bats — think of all the wood that is used to make things each day and then think about all the scraps left over from construction and manufacturing and the landfill waste from discarded wood items. Instead of using new wood to make dining room chairs and beds and bookshelves, some green designers are turning to wood that's already in play. NYC-based RG Furniture Design turns lumber from historic buildings under demolition in New York City into striking tables, benches, shelves and lamps.
• Seek out furniture made from FSC-certified wood. We need trees. Lots of them. They produce oxygen, absorb carbon dioxide, and help to keep the planet cool, among several other very commendable attributes. Purchasing furniture made from wood sourced from sustainably harvested forests helps to ensure that many trees will be with us for a long, long time. The Forest Stewardship Council is the biggest certifier. Look for its seal of approval before investing in an eco-friendly piece of furniture. Check out Woodshanti's stunning FSC-certified computer desk.
• Purchase furniture made without toxic chemicals. Your couch may look harmless, but unless you know exactly how it was manufactured, there's a good chance that it's off-gassing (emitting substances into the air) harmful chemicals into your home. The most common off-gassed substances are VOCs, or volatile organic compounds, which actually sound as scary as they are — they've been connected to cancer and birth defects — and can be found in substances like formaldehyde, flame retardants, finishes, adhesives and foam cushions. Check out the Brave Space Hallow Coffee Table with low VOC adhesives and a nontoxic finish.

(via Newsweek)

Sir JJ Architecture students design Pedestrian Ways for the City

Since 2006, the faculty of Sir JJ College of Architecture and Snowcem Paints have collaborated to improve the civic life in the city of Mumbai by instituting the Snowcem Faculty Medal .This competition is for participation by all the students, from the first to the final year. Snowcem

Paints are associated with the faculty medal for the last three years and have kindly sponsored the medals and prizes. The theme given each year are intended to address pressing urban, social and civic issues faced by the city of Mumbai. Each entry is intended to generate alternatives that can transform the city through design excellence. The best entries of the competition are put on display for the city at large.

The theme for the third Snowcem Faculty Medal Competition (2008) was:

Pedestrian Ways in the City

The aim of the competition is to search for solutions that return the city to its primary users, people on the street, by creating of inclusive and barrier-free urban environment that can be rich and fulfilling.

Pedestrian Ways should make opposite parts of the city accessible, overcome barriers of fast moving traffic by pedestrian walkways and peoples places and create urban environment that's rich with the creations by its own inhabitants.

The meeting of Jury for the Snowcem Faculty Medal 2008 took place in the college premises on 22^nd December 2008. The Jury members for the Snowcem Faculty Medal 2008 were Jal Aria, Architect and Academician, Nayana Kathpalia, Convener Cityspace and S. Shankar Menon, former bureaucrat and pedestrian activist. From over 180 design sited all over Mumbai, 30 were short-listed.

After intense deliberations, the Jury awarded the Snowcem Faculty Medal for the Year 2008 to Darshan Maru. The Jury appreciated his design for giving primacy to pedestrians, being simple, doable and cost-effective. The design solution was sensitive to its surroundings and did not disrupt the existing visual landscape. The Jury also appreciated Maru's use of public art in creating a humane environment for the pedestrians.

The Second Prize was awarded to Shraddha Sawant, whose design was appreciated for creating a new public space while finding a solution to the existing traffic problem. The judicious use of levels in the design made both vehicles and pedestrians negotiate easily. The public-private partnership was obvious in the design.

Two Commendations were given by the Jury. The first to Sachin Porkute whose design the jury felt was an interesting response to a complex junction. They appreciated that the design did not disturb the surrounding heritage structures and their current views. The use of travellators for senior citizens was innovative.

The second Commendation was given to Pooja Ugrani. The Jury appreciated the design's primacy for the pedestrian, as it proposed for vehicles (as large as buses) to go underground. The use of the ground plane for cultural activities was lauded.

The Snowcem Faculty medal is to be awarded on 17^th February 2008 at 2.00 pm in the C. M. Master Hall of the Sir JJ College of Architecture. Col A.K Pahel, Additional Chief Engineer, of the Mumbai Metropolitan Region Development Authority has kindly consented to grace the occasion and give away the prizes.

The narrowest urban house in the world

The narrowest urban house in the world is surprisingly spacious - though only in one direction. It contains multiple rooms including bedrooms, a kitchen and laundry room. Located in small-town Brazil this house has become something of a tourist attraction. However, there are other compelling contenders for this record - each with their own narrow claim to fame.

(via WebUrbanist.)

Indian experts find bacteria to beat global heat

In a major breakthrough that could help in the fight against global warming, a team of five Indian scientists from four institutes of the country have discovered a naturally occurring bacteria which converts carbon dioxide (CO2) into a compound found in limestone and chalk.

When used as an enzyme — biomolecules that speed up a chemical reaction — the bacteria has been found to transform CO2 into calcium carbonate (CaCO3), which can fetch minerals of economic value, said Dr Anjana Sharma from the biosciences department of RD University, Jabalpur, who was part of the Rs 98.6 lakh project sponsored by the department of biotechnology (DBT) under the Union science and technology ministry.

CO2 is a greenhouse gas produced in the burning of fossil fuels and other industrial activities. The rising emissions of CO2 in the atmosphere is chiefly responsible for global warming. Reducing CO2 levels is the single most important strategy to fight global warming and the resulting effects of climate change.

"The enzyme can be put to work in any situation, like in a chamber fitted inside a factory chimney through which CO2 would pass before being emitted into the atmosphere, and it would convert the greenhouse gas into calcium carbonate,’’ Dr Sadhana Rayalu, the project coordinator who is from the National Environmental Engineering and Research Institute (NEERI), Nagpur, told TOI on phone from Nagpur.

This potentially means that the bacteria — extracted from a number of places including brick kilns in Satna, Madhya Pradesh — can be used to take out CO2 from its sources of emission itself.

Rayalu said the chemical reactions involved in the process have been successfully established while its economic viability, cloning, expression and single-step purification are under study. The team has published its findings in the Indian Journal of Microbiology and its paper has been accepted for publication in the World Journal of Microbiology and Biotechnology.

Sharma said the breakthrough was the result of marathon research work spanning more than three years. Other members of the team are Dr K Krishnamurty from NEERI, Dr T Satyanarayana from Delhi University and Dr A K Tripathi from Banaras Hindu University.

"Interestingly, it is nature that has come to the rescue of the human race from harmful effects of global warming. Investigators of the team have discovered as many as seven such micro-organisms that have the tendency to convert carbon dioxide into calcium carbonate at different natural locations,’’ said Sharma, who was on a visit to Allahabad.

(via Times of India)

Realtors see six month delay in revival

Any revival in the real estate sector is expected to be delayed by at least six months as the interim budget did not announce any sops to the housing sector as anticipated by many companies.

“Sentiments of home buyers have not completely improved yet. The government should have taken some steps to improve sentiments for Aam Admi, which has not happened. Now we have to wait for the new government to assume charge in June,’’ said Pradeep Jain, chairman of Parsvnath Developers.

Realty players, who are battling slowing sales, were expecting a two percentage points cut in home loan rates to 6-6.5 per cent, priority lending status for loans up to Rs 35 lakh from Rs 20 lakh earlier, increase in rebate on home loan interest from the current Rs 1.5 lakh to Rs 3 lakh, abolition of service tax on sale of units and rentals, reduction in excise duty on steel and cement among others.

Though most of the banks have cut home loan rates, realty experts said the home buyers were still deferring new purchases in anticipation of a drop in the prices and also due to stagnant income, which have led to slower sales. In the December quarter, sales of property companies have fallen by 70-80 per cent, putting pressure on their finances and execution skills.

“Though this was an interim budget, the government could have made an exception and announced some sops for reviving the market, given the adverse conditions in the market. Benefits for housing would have created a ripple effect and helped in giving a positive push to the economy,’’ said Rohtas Goel, chairman of Delhi-based Omaxe.

Both the government and the Reserve Bank of India (RBI) had already announced a slew of measures, including a refinance facility of Rs 4,000 crore available against the National Housing Bank’s loans and advances to the housing finance companies (HFC) at eight per cent for loans up to Rs 20 lakh, and capped interest rates for home loans.

But experts said the earlier stimulus packages have not helped much. “Though the government has come out with a stimulus packages in the past, they were not enough to revive the sector. A lot many things were expected, now the industry has to pass through 5-6 months in the absence of any new incentive in place. Falling interest rates and inflation are only the comforting factor for developers now,’’ said an analyst from Religare Securities.

Though the BSE Realty Index, which tracks realty stocks, touched a high of 1,650 points in the anticipation of sops to the sector, ended the day at 1,519 points, over 4.5 per cent lower, than its Friday close.

Indiabulls Real Estate (IBREL) fell 9.62 per cent, Ansal Infrastructure slipped 6.28 per cent, Orbit Corp was down 6.73 per cent were the major losers in the category.

“Though some government measures should have helped developers, in the long term, property companies should build houses that can be afforded by home buyers. Buyers should buy houses or private equity funds should invest keeping long term perspectives,’’ Subhash Bedi, partner of Red Fort Capital, which runs private equity funds, said.

(via Business Standard.)

The city is not a problem. It is a solution.

An interesting talk by Jaime Lerner who reinvented urban space in his native city, Curitiba, Brazil leading to a new worldview for urban planners to see what’s possible in the metropolitan landscape.

Green bathroom makeover

The bathroom is where 60% of the water used indoors gets consumed. That makes it the perfect place to start saving water.

The truth about climate change

The legendary broadcaster and naturalist Sir David Attenborough was long unsure about the causes of the observed climate warming. In his documentary, The Truth About Climate Change, he sheds doubt and explains what convinced him.

Climate models based on purely natural processes such as solar activity and volcanic eruptions fail to explain the observed change in Earth's climate in the latter part of the 20th century. Models factoring in the human impact, that is, the increase of carbon dioxide in the athmosphere, depict the transpired warming accurately, however.

The Queen buys the world's largest wind turbine

The Queen is investing in the world’s largest wind turbine. It’s a prototype of a new line of wind turbines called “The Britannia” which will be produced by Clipper Windpower, based in California. The turbine tower stands about 328 feet, has a diameter of 492 feet, and can generate 7.5 megawatts. Currently, the largest installed wind turbine is the massive Enercon E-126, which is rated at 7 megawatts.

The sale was made to the British Crown Estate, which owns most of the seabed off Britain’s shores, regularly leases out its land to wind farm projects but has never invested in the turbines. The prototype turbine is part of Britain’s ambitious goal of generating 33 gigawatts of offshore wind energy by 2020.

(via Metaefficient)

Inferno destroys Beijing tower

A massive fire engulfs a tower in the soon-to-be completed headquarters complex of China's national TV broadcaster. WSJ's International News Editor Rebecca Blumenstein provides more details and speaks with colleague Adam Najberg about China's fire safety amid a rapidly growing city.



A fireman is reported dead and six others injured after a huge fire consumed part of China Central Television's new building complex in Beijing on the last day of the Lunar New Year holiday. An initial investigation showed that the fire had been caused by illegal firecracker launches. Video courtesy of Reuters

Home loans get cheaper

Many prospective borrowers complained that while much has been said on the prospects of interest rate cuts, it hasn't been a reality for all home loan borrowers. Their anguish was understandable as till now the good news relating to rate cuts was only for fresh home loan borrowers. Those who have already taken a home loan were left to maintain their EMIs without the benefit of the interest rate fall. There is finally good news for this community too as the State Bank of India has made the first move by cutting rates even for old loans. It's a matter of time before others followed suit. In fact, the pressure will be higher on private sector banks which have not resorted to rate cuts for some time, and with many borrowers looking at the option of switching, these banks could come up with new downward moves in rates in the coming weeks. While the interest rate cut expectation is a thing of the past, the question is will it go back to the old levels of 7-8 percent which contributed to a property boom? Consensus is already building up for the fact that we are headed towards a low interest rate regime in the coming couple of years, in line with global trends. In the case of the domestic economy economy, the trigger for low interest rates has already happened on the deposit front with banks reducing the rate by 1-2 percent in the last few weeks. Now, the deposit rate has come down to single digit even with respect to long term deposits (on 3-5 years) and that would mean banks have access to cheaper funds. With inflation too sliding down at a rapid pace, there is hope for continuance of a cheaper rate regime. In fact, the biggest trigger for cheaper rates has been the inflation rate, and with the Reserve Bank of India (RBI) projecting that we are headed for inflation in the region of three percent, you can expect more support from the index. With the corporate sector being less than aggressive in its borrowing plans, it may take a while for rates to move up because of demand. Hence, for borrowers, there is absolutely no threat of rising rates and that is good news both for fresh borrowers and existing ones. Needless to say, floating rates should be the choice for all borrowers and those who are already sitting on fixed loans too can look at the choice of switching to the floating option. The change of plan makes sense even if you are required to pay charges as interest rates are unlikely to rise in the medium term. It is also the season for existing home loan borrowers to do some shopping as there is a significant disparity in the rate cards of different banks. If you find your banker slow in lowering the rate, try and shift your loan to a fresh lender. Unlike in the past, the shifting of a loan has to be viewed with respect to the amount too as the interest rate is dependent on the amount and tenure. For instance, a Rs 20 lakhs loan is significantly cheaper than a Rs 30 lakhs loan. For existing borrowers the slab becomes important, and hence you should take the option of closing the loan partly to take advantage of the slab. Even a saving of one percentage point would mean a saving of a few thousands in EMIs and the figure can turn attractive over the loan tenure. Hence, existing borrowers have plenty of options with respect to lenders, slabs and products (floating and fixed), and those who can take advantage of all three factors have a lot to gain. Fresh borrowers have little to worry as they are in a good market. (via Economic Times)

Walls of the Taj Mahal develop cracks

William Baker presents Burj Dubai

William Baker presents Burj Dubai from The Architecture Foundation on Vimeo.

What do you do when you need to transport a great number of people up a 636+ metre mixed-used tower? How do you deal with condensation that builds up when the heat of the desert meets the cool of the air-conditioned interior? As it turns out, you develop a 40 mph elevator - the world’s fastest; and collect the moisture and pump it into the site’s landscape plantings. Yet there are so many more questions still to be asked regarding the Burj Dubai, the tallest building on earth and surely one of the most ambitious projects the world has ever seen. This talk is a unique opportunity to do so.

Crisis to hit business districts in India

India's well-established commercial business districts (CBDs) are likely to face vacancies this year, as the first impact of the global recessionary economy is being felt by the financial and other organisations, according to a real estate consultancy firm.

"We will also see a reversal of the trend witnessed over the past two expansionary decades where large organisations moved from owned to leased assets. Given the drop in prices and availability of choice properties, this will be a good time for surviving organisations to announce their new leadership positions through trophy purchases," Jones Lang LaSalle Meghraj (JLLM) said in a report Predictions for Indian real estate 2009.

The firm believes CBD vacancy rate, if triggered, can add significant pressure to the upcoming and newly developed premises in upcoming front-office districts such as Lower Parle in Mumbai and Nehru Place in Delhi.

While the sentiment in the US and Europe towards outsourcing is positive in the long term, the active decision-taking for expansion by business process outsourcings is totally suspended for the moment.

"We do not expect this to change in 2009. Hence, the pressure on upcoming and announced projects – especially special economic zones (SEZs) – will continue this year," the report said.

In 2009, IT SEZs will also experience further pressure from the fact that the software technology parks' concessions may be extended for another couple of years. While these concessions are important for IT companies' survival during the recession, they will adversely impact SEZ developments.

Moreover, the peripheral areas of metros as well as the tier II/III cities will need to compete with the central or secondary business districts for the same set of talents, thus dissolving the clear segmentation that was emerging and separating various micro-markets over the past couple of expansionary years. Newly developed or announced projects are especially going to suffer and may see continued vacancy.

"The year will also see practices in the real estate business become more organised and professional, as they did in the late 1990s and early 2000s with the introduction of foreign institutions, foreign money and the creation of government-supported large development formats. A similar professional approach may reach warehousing land acquisitions."

Residential properties

Much of the previously anticipated demand for 2009 will not see the light of day due to the confluence of various factors. According to JLLM, developers have only now begun to come down on their rates, and a lot depends on how many of them will follow suit in the coming year. The much-awaited drop in interest rates for home loans has happened, but not at a level sufficient to pull the residential sector out of the doldrums entirely.

In response to the considerable demand for such formats, the company anticipates more national players to launch affordable housing projects this year. However, since different cities will have different costs for land and construction of such homes, developers will have to define "affordable housing" on a city level.

"We expect that at least 20 per cent of the players in residential real estate will begin to think on a portfolio rather than project level. Developers have been pricing their projects according to their expected profit margins vis-à-vis the cost of land in different locations. Buyers are not prepared to consider the initial and appreciated cost of land as a valid component of the price."

According to the report, "portfolio level" means at least one fifth of the developers will now cross subsidise their construction costs internally and sell their project at prevailing selling rates.

Two scenarios

In terms of sales volumes and market recovery, there are two distinct scenarios: buyers who were waiting for rates to drop to levels they could afford will make their moves when rates fall into their budget range. Secondly, buyers will continue to wait for the time that delivers the best rates – a point that may come and go without them being aware of it.


Decisive time

The year 2009 will see a good number of capital markets transactions, but the period from March to December will be a "decisive" time.

All business sectors have been hit by the economic meltdown, and many will generate liquidity by divesting non-core assets such as real estate. Types of enquiries are likely to be in the higher risk adjusted return segment with greenfield opportunities seeing limited interest as most investors will be investing in Asia with chasing liquidity and not higher return. Residential projects in the middle-income segment are likely to see renewed interest with interest rates declining this year.

"In 2009, we will also see the decisive arrival of sale-and-lease-back deals, in which owners currently occupying their properties will sell them and continue as lease tenants. Corporates have to address liquidity issues in their core businesses and are now eager to unlock the value of their non-core assets," JLLM said.

The biggest buyers would be foreign direct investment-compliant India-dedicated funds, domestic funds, high net worth individuals and corporate houses.


Dynamics

The year will be guided by dynamics of two contradictory forces: recession trend guided by capital market slowdown, decrease in demand, caution in cost and spending and governmental and social efforts to regain growth momentum. "For the first three to six months the impact of point recession trend will be more significant while in the later half of 2009 support to growth from government and global community will be more visible," JLLM said.

(via Business Times)

4 degrees warmer, great cities wash away

Great cities could wash away if the Earth gets hotter by 4 degrees and the Ganges in India could dry up. India would be one of the most impacted countries by global warming.

Buying a house? Get your basics right

With interest rates on a downward spiral and prospects of getting a good deal on a house, the real estate sector could witness some buying in the coming months.

Though property consultants recommend waiting for a few months for the right price, some home-seekers may be tempted to kick off their house-hunting expedition soon

Time for shortlisting

While there is no need to rush into a decision, you can start looking out for a house right away. "Once the market bottoms out, home-seekers will start making a beeline for properties and loans. If you have identified your ideal home beforehand, you will be a step ahead," says KPMG director Ashish Shah. You can jump at the earliest opportunity available — in terms of price and interest rate.

Lack of buying activity means that the market is skewed towards the buyer at the moment. "You can start quoting a price that seems reasonable to you. Try quoting a price that is 50% less than the highest price of a property in the locality commanded in the past," suggests a financial planner Kartik Jhaveri.

Identify your needs and capacity

Your heart may be set on a plush residential complex replete with state-of-the-art facilities, but that should not make you lose sight of your basic needs. For instance, if the well-equipped complex is not close to a railway station/bus stop, and you do not own a private vehicle, then commuting could turn out to be a nightmare.

Hence, when you commence your house-hunting mission, it is advisable to keep a list of must-have attributes ready. In addition to quality of construction, evaluate the existing infrastructure. Finding a perfect house is nearly impossible, but comparing shortlisted properties will help you zero in on one that meets majority of your requirements.

"This apart, the present and future market drivers, financial ability and personal investment objectives should be borne in mind," says Raminder Grover, CEO, Homebay Residential, a subsidiary of property consultancy firm Jones Lang LaSalle Meghraj.

A ruthless assessment of your financial situation — current as well as future — is essential; factor in possible pay cuts and job loss. If you are planning to sell your old flat and buy a new one, it is better to do so only after securing the sales proceeds. Though bridge loans meant for such funding gaps are available, in the current scenario, it is better to steer clear of avoidable liabilities.

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A recyclable house from Germany

Who would have guessed that an entirely recyclable, zero-emissions, zero-carbon, sustainable house could be such a style icon? House R 128 by the architects at Werner Sobek brings the best of both worlds to the table. Rising four storeys in Stuttgart, Germany, this modern glass edifice has nothing to hide. The see-through house features a facade of triple-glazed windows that allow natural light to filter through and flood every room inside. The home’s front facade features photovoltaic panels that power the house and light it up when the sun goes down. Adding to its amazing sustainable features, the house also boasts geothermal energy and cooling.

The modern modular design – including its wooden floor and facade – is designed for easy assembly and dismantling, so not only is this innovative house off-the-grid, it’s also reusable, and completely recyclable! Accessible by a bridge above the kitchen and dining room, the 2,706-sq.-ft. home offers a warm welcome with a contemporary edge. Minimal style is king at House R 128, which has no interior walls, and a few modern pieces that characterize the home’s open-concept living areas. Werner Sobek
Photo credit: Roland Halbe and Josef Schulz, Stuttgart/Germany.

(trendir.com)

SBI cuts home loan rates to 8%, other banks may follow

In a move that is likely to force other banks to bring down home loan rates, the State Bank of India on Saturday cut its floating home loan rate to 8% on all new loans, irrespective of the loan amount. The current rates range between 8.5% and 11%, depending on the loan amounts. The new scheme will be on offer from Monday till April 30. Those who take loans in this 12-week period are assured of an unchanged rate for one year.

SBI's decision means that for fresh borrowers, EMIs on home loans of Rs 30 lakh or more will drop sharply. The EMI on a Rs 30-lakh loan for 20 years will fall by 15% and that on a Rs 50-lakh loan by 18%. The maximum benefit will accrue on home loan amounts of over Rs 75 lakh, where the interest rate comes down by 3 percentage points from 11% to 8%.

That's the good news. The bad news is that the cut will not benefit most existing borrowers. It will, however, benefit those who have borrowed under the special scheme announced by the Indian Banks' Association (IBA) in December. Under that scheme, the interest rate on home loans up to Rs 5 lakh was fixed at 8.5% and for those between Rs 5 lakh and Rs 20 lakh at 9.25%.

For existing borrowers, SBI has offered a new personal loan scheme entitled `SBI Lifestyle Loan'. Under this, they can get a multipurpose loan of up to 10% of their home loan, subject to a maximum of Rs 5 lakh, at 8% interest. However, this loan will have to be repaid in one year.

SBI's decision seems to be a response to RBI's statement on Tuesday that banks have not fully passed on to their customers the benefits of the central bank's liquidity-infusing measures since October 2008. Following that statement, Punjab National Bank, the second largest government-owned bank, also cut its benchmark lending rate by half a percentage point on Friday. But floating rates on its home loans remain between 8.5% and 10.25%.

An SBI spokesperson said the decision was taken to kick-start demand in the real estate sector. However, real estate developers are not very optimistic, with most saying it was encouraging but inadequate.

Some bankers, on condition of anonymity, argued that it was a smart move by SBI. Interest rates, they said, were likely to fall even lower by March-April and the country's biggest bank was, in fact, hoping to lock in borrowers at 8% for a year before that happened, they said.

(via Times of India)