Saturday, June 23, 2007

Mumbai's mega crore slum building scam

CNN-IBN puts a face on a story known to everyone. Corruption and builders go hand in .hand

Hindu reports on the bust in Hyderabad real estate

Over the past few days, there are news-paper articles on the real-estate bust covering Coimbatore, Hyderbad, Mumbai, Delhi-NCR and Bangalore. Its a buyers market now, so any price is fair price.

Has real estate boom that touched the lives of many and reigned for more than two years finally taking a downward curve? Has it hit the high and there is no way it can go up further and has to take a downturn? Will the real estate prices take a drastic dip or will the heat simply goes in for a cooling-off phase?

In the last few months, the property scene did calm down and it appeared rather subdued when compared to the aggressive domination that it had starting later half of the year 2004. For more than two years, a variety of factors fuelled the boom and while some ended up realising dreams of owning a dwelling of their own, others went for a second and in some cases third and fourth property too.

The price rise which was phenomenal set new records both in residential, commercial and agriculture lands and had people scurrying long distances to acquire a slice of the boom. In just three years, the entire suburbs have metamorphosed beyond recognition as they got dotted with series of apartments, row houses, commercial centres and started buzzing with unprecedented activity.

Those who lost out in the race were left dismayed while the ones who made it to the bandwagon sported a broad grin. However, a certain uncertainty did mark the whole boom and even while the buying spree was on, a question on how long does this boom last did kept bugging many.

And now ominous signs seem to have started looming over the realty horizons. The industry insiders accept, though a bit reluctantly, that the construction works have slowed down a bit, that the enquiries about their projects have come down and that they are a tad worried. “A lot of money, mostly borrowed, has been invested in projects and builders are naturally apprehensive at the slow down,” concedes one.

The rise in home loan interest rates and the sudden surge in the land prices appear to have made many investors wary about putting their money into the real estate while reports from across the country suggested a possibility of the property boom taking a knock in the days to come. However, many builders in the city look at this as a temporary phase and some accept the stagnation in property dealings on the ground that a correction of prices was taking place.

“There is a correction and we welcome it. Last two years saw all sorts of persons entering real estate industry and spoiling the scene. They are getting weeded out and once this process is over, the prospects will be much brighter,” says P.S.Reddy, President, Andhra Pradesh Real Estate Developers’ Association.

However, he refuse to see the trend as the property scene having a block. Till the boom hit the city a couple of years back, the annual price rise here used to be in the range of 10 per cent to 15 per cent.

The same however hit the roof in the last two years and the hope is that it will get restored with the present correction.

The builders point out that the mid-segment which look out for flats in the range of say Rs.1,800 to Rs.2,500 has not been that badly affected as the one in deluxe and super deluxe category beyond Rs.3,500 has been. This, perhaps could be due to the fall in NRI investment into city real estate. Agrees Mr. Reddy, “the rupee turning stronger has indeed affected the NRI investments”.

A section of builders relate the sudden dip in enthusiasm of property seekers with the beginning of education season. This is the usual trend in the period of March to June, they say. “This is the time when education of children keep the parents preoccupied and not investments in real estate,” it is pointed out.

Banks queue up to sell rising bad home loans

We're taking foreclosures and auctioning of apts to the highest bidder, a.k.a US style. This is very big news. If the number of foreclosures is significant, the prices will be in a downward spiral. Its interesting to note that one of the reasons for foreclosure is the builders inablity to handover the completed apartment on time to the buyer who is forced to cough up rent and EMI at the same time. The builders will be forced to accept the lowered payments from the bank since most of them have over-leveraged land positions and need the liquidity to complete the construction. It will be interesting to follow Arcil as it unwinds the loans piece by piece.

Business standard reports.

Defaults due to rising rates resulted in the move.

For the first time since the housing loan boom, the country�s top three home loan providers, State Bank of India (SBI), ICICI Bank and HDFC, are approaching the Asset Reconstruction Company Ltd (Arcil) to sell bad loans from their home loan portfolios.

The move has been prompted by a sharp rise in defaults from retail customers, squeezed by rising interest rates, in the last two quarters.

Arcil is a company that buys bad loans at a discount and sells the assets for a profit. All three institutions are selling home loan portfolios worth Rs 250-300 crore each, sources close to the developments said.

While Arcil will take these loans on its own balance sheet, a subsidiary will be set up to service the loans � in terms of valuing property, collecting cheques and so on.

The retail loans, scattered across the country, will be taken over by Arcil for Rs 100 crore to Rs 150 crore each. �We are in negotiations. These deals are expected to close by the second quarter,� the sources added.

Interest rates on home loans have risen from 8-8.5 per cent to 10-12 per cent in a year�s time, a result of the Reserve Bank raising the cost and reducing the availability of money to achieve monetary policy objectives. As a result, borrowers have seen their equated monthly instalments rise significantly.

�In many places, builders have failed to give possession of the apartment and the customer was unable to pay EMIs as well as rent for his present accommodation. The double blow for retail customers has increased the incidence of bad loans,� sources in ARCIL said.

Several banks have reported a 3.5 to 4 per cent default in home loan repayments, against less than 2 per cent a year ago. State Bank of India Chairman O P Bhatt recently commented that rising interest rates would result in higher defaults for India�s largest commercial bank.

ICICI Bank, HDFC and SBI have grown their portfolio at an average annual rate of 28 per cent in the past three years. Though HDFC says it has not seen a deceleration, SBI has seen growth slow to 18-19 per cent in its home loan portfolio.

Once the loans are in Arcil�s portfolio, the Mumbai-based firm will either offer a package to existing customers to pay off the loans or sell their property to the highest bidders.

Friday, June 22, 2007

Ramgarh of Sholay to become district - Ramnagaram

This is going to be huge as this area will get exclusive funds for development. With the CM's blessings I'm predicting Ramnagaram and Bidadi to be the next Whitefield.

Times of India reports

Bangalore: Gabbar Singh’s Ramgarh will now become a district. Ramanagaram, where Sholay was shot, will make its debut as a district on Independence Day.
Along with Ramanagaram, Chikballapur in Kolar district will be carved out as a district on August 15, with the cabinet clearing both the proposals on Thursday. With this, the number of districts in the state will go up to 29.
Though chief minister H D Kumaraswamy announced that Ramanagaram would be inaugurated on the “auspicious day’’ of June 28, the procedure for district formation is not going to be complete by then.
Home minister M P Prakash told reporters after the cabinet meeting: “The decision has to be notified in the gazette. The public will be given 30 days to file objections. Other procedures might take about three-four months, but we hope to have both the districts inaugurated on August 15.’’
The reason cited for new districts: “Administrative convenience.’’ Prakash admitted that administrative expenditure will increase but insisted that it was necessary.
Prakash said the revenue department had written to the Justice Kuldip Singh Delimitation Commission seeking permission to carve out the districts. “The commission has said it will shortly notify the constituencies, so we have decided to go ahead.’’
The naming of new districts after historical personalities — Kempe Gowda for Ramanagaram and M Visvesvaraya for Chikballapur has been dropped. Prakash said: “The district reorganisation committee headed by V Balasubramanian has said the names of historical figures should not be given to districts. They have cited the examples of Tamil Nadu and Uttar Pradesh and said the naming issue has caused agitation.’’
The government has also dropped move to split the burgeoning Gulbarga and Belgaum districts, a long-standing demand that was not addressed even when seven new districts were carved out by the Patel government in 1997. The people of Gulbarga were split over whether the new district should be Yadgir or Bheemarayanagudi in Shahpur, while local representatives in Belgaum were against the carving out of Chikkodi as it would become Marathi-dominant, increasing the border problem with Maharashtra.
Prakash said Rs 72.58 crore had been earmarked for infrastructure for Ramanagaram and Chikballapur districts. New & Old
Will be carved out of Kolar district
Will comprise:
Gowribidanur, Gudibanda, Bagepalli, Chintamani, Sidlaghatta and Chikballapur taluks
Kolar with 1,792 villages will comprise Srinivasapura, Mulbagal, Malur, Bangarpet and Kolar taluks
Will be carved out of Bangalore Rural Will comprise: Present taluks of Ramanagaram, Chennapatna, Magadi and Kanakapura (including assembly segment of Sathnur) Bangalore Rural will have remaining taluks of Nelamangala, Devanahalli (including assembly segment Doddaballapur), Hoskote (including assembly segment Varthur) and Anekal 7 in ’90s
Chamarajanagar, Davanagere, Koppal, Gadag, Bagalkot, Haveri and Udupi. Bangalore: Here is a new coalition hitch: The state’s decision to carve new districts out of Bangalore Rural and Kolar was taken without even consulting the minister concerned — revenue minister Jagadish Shettar of the BJP!
At Thursday’s cabinet meeting, a fuming Shettar demanded to know how the move had been made without even consulting him. “I have not even seen the file. The V Balasubramanian Committee report has not even been submitted. How can this decision be taken?’’ he is said to have asked.
Sources said Shettar had not opposed the decision to carve out the districts, but was very unhappy at being bypassed. “He also raised the issue of 30 new taluks that are demanding to be carved and the conversion of about 500 Lambani tandas into revenue villages. He said officials had stalled this, citing the stay by the Delimitation Commission.

Mysore is hot property

Times of India reports

Property prices in Mysore have doubled in a year’s time. IT professionals from Bangalore are looking at parking their money in property here with a second or even third site. Deepti Ganapathy

Nearly 7,000-8,000 sites are up for grabs in Mysore today. And this translates into 1.6 crore square feet of residential plots in the city. The scenario in the apartment market too is buoyant. A whopping 3,000 flats are expected to be made available by the end of this year. This translates into 30 lakh square feet of private housing space in the coming year. Nearly Rs 600-700 crores is being pumped into these private housing projects in the city by property developers.
Of the enquiries real estate consultants receive, nearly 30 percent are from IT professionals, and that too from techies based in Bangalore. Most of these IT professionals are looking at making a second or third investment here, and 15 percent of these techies are actually investing in the city. The real estate market is the city is on an upswing. Property dealers say prices are surging and they will continue to do so in the near future, and that this is the right time to invest in property here.
In the light of strong and proactive initiatives from the State Government, including providing quality infrastructure and a rapidly responsive administrative system, Mysore has emerged as a front-runner in attracting investments. An average increase of 40-60 percent in residential plots within the city or fringe areas over the last 6-12 months has been reported. Vijayanagar Stage IV, Dattagalli, Srinagar, and Rajivnagar, with substantial offtake, have registered increases in prices.
While a majority of the investors are keen on investments in developed land, others prefer built units. 60 percent of the people are looking for residential properties. 70 percent are short-term investors, while 30 percent are long-term investors. "Investors today are very knowledgeable. They are looking at buying sites in areas where development is happening. The Ring Road is today a hotspot for potential investment," says Radhakrishna, a city-based real estate consultant. According to most developers there are plenty of sites available in the city. In a matter of months, the prices will soar again.
Most of the IT professionals who are buying property here, are working in Bangalore, and have invested here, in anticipation of the city being tipped to take a good share from the IT capital in a matter of few years. The Bangalore-Mysore Infrastructure Corridor Project which will reduce travel time to an hour and a few minutes, has also been a factor that has worked on the minds of investors. The proposal by the IT Secretary to introduce AC buses and trains exclusively for the techies to commute between the two cities has added to the government's commitment to give the city a major thrust.
According to D Srihari, a property consultant in the city, smaller investments too command good appreciation. "It is safe to invest in a plot that has a value of Rs 500-700 per square feet, as the returns will be high after a few months".
Ring Road brings good returns
The Outer Ring Road that runs along the city's periphery, where land is available, is a good place to invest in. With the city rapidly growing, and the city's old localities already bursting at their seams, its time to look beyond. With the Bangalore-Mysore Infrastructure Corridor Project, IT belt, textile park, and airport located in the vicinity of the Outer Ring Road, the potential of development along this stretch is immense. It is for this reason that sites are being picked up in Vijayanagar Stage IV, Dattagalli, Rajivnagar and Srinagar.
Variety of layouts
As of now, there are three types of layouts available in the city. Layouts developed by Mysore Urban Development Authority and Karnataka Housing Board are well-developed layouts that will be available after around 15 years from the time of application. Then there are the layouts formed by Societies. As of now, there are 25-30 acres of land available under these layouts. Also, there are layouts formed by private developers.

Thursday, June 21, 2007

Goldman Raise $12 Billion for Property Funds

Bloomberg reports that upto quarter of the funds would be put to use in India and China. So if we do the math 69/12.5 = ~5.5 billion dollars for Indian real estate. What will these guys develop and how will it impact property prices in India is the billion dollar question ??

By Hui-yong Yu

June 20 (Bloomberg) -- Morgan Stanley and Goldman Sachs Group Inc. raised $12 billion for global real estate funds, tapping a surge in investor demand for high-return assets outside the U.S.

Morgan Stanley, the biggest real estate investor among Wall Street banks, said today it raised $8 billion to create the largest global property fund. Goldman drew $4.07 billion for a real estate fund, twice as much as it originally sought.

More than 100 real estate funds may raise a record $69 billion this year as investors seek better returns than stocks and bonds provide, according to Private Equity Intelligence Ltd. Morgan Stanley's high-return real estate funds have posted average annual gains of more than 20 percent since 1991, about twice the return of the Standard & Poor's 500 Index.

``There's clearly still significant capital out there,'' said Stephen Coyle, a managing director and head of Citigroup Real Estate Partners. ``Most funds are fully or oversubscribed today, especially those that have been in the game a long time.''

Rising interest rates in markets including the U.S., Europe, India and Japan, have yet to halt deal making, investors said.

``Borrowing costs are going up globally,'' Citigroup's Coyle said. ``That's creating what may be the first cracks in the market but capital is still seeking real estate and seeking it much more globally than in the U.S. for maybe the first time.''

Other Funds

Blackstone, the New York-based buyout firm set to go public this week, has raised more than $7 billion for its sixth worldwide real estate fund, a pool that investors expect will reach about $10 billion when it closes later this year.

Merrill Lynch & Co., the third-largest securities firm, also plans to raise funds for global real estate purchases, Co- President Ahmass Fakahany said today at a news conference in Dubai, United Arab Emirates.

Morgan Stanley will invest almost half of the money in Japan and about 25 percent in countries including China and India. The securities firm contributed ``just over 20 percent'' of the total equity in the fund and the rest came from institutional and retail investors, the New York-based company said in a statement today.

Morgan Stanley typically borrows $3 to $4 for every $1 raised to increase the funds' buying power and returns.

Goldman got the $4.07 billion for a new fund called Whitehall Street Global Real Estate LP 2007. The sum surpassed the 2005 Whitehall fund of $3.2 billion, according to Gia MorĂ³n, a spokeswoman for New York-based Goldman.

Focus on Asia

``The increase we've seen over the past two years has been enormous,'' said Tim Friedman, a spokesman for Private Equity Intelligence, noting that real estate funds raised just $21 billion as recently as 2004. ``A third of all funds being raised by Americans have some focus on Asia and everyone is looking to developing regions for deals that are more profitable.''

Morgan Stanley for the first time will charge 0.25 percent of the value of every acquisition its new fund makes. It's also taking a 20 percent cut of the fund's investment gains as an incentive fee, up from 17 percent previously.

Record fund inflows have allowed the best managers to charge higher fees and helped fuel takeover battles.

Goldman and Morgan Stanley are locked in a fight for two Italian real estate funds, Berenice Fondo Uffici and Tecla Fondo Uffici. Morgan Stanley and Pirelli & C. Real Estate SpA today increased their offer for the funds, trumping a June 18 bid of 782.4 million euros ($1.05 billion) by Goldman and its partner, Union Generale Immobiliare, a company controlled by Italian businessman Francesco Caltagirone.


Blackstone in February outbid Vornado Realty Trust to acquire billionaire Sam Zell's Equity Office Properties Trust for $39 billion including assumed debt in what was the largest real estate buyout.

Coyle said his current investment target is to put 65 percent of assets outside the U.S. and the rest within, the inverse of what it was two years ago as China and other economies grow faster.

``I don't think we're going to see a lot of other $8- to $10 billion funds,'' Coyle said. ``The whole real estate market is probably $20 trillion, soup to nuts.''

Morgan Stanley plans to invest almost half of its new fund in Japan, where the longest expansion since World War II is pushing up rents and creating a building boom in Tokyo. About 25 percent is destined for emerging markets including China and India.

Morgan Stanley

Morgan Stanley has been on an acquisition spree spanning offices, hotels and residential developers. The firm invested $12.5 billion in May alone, agreeing to buy Investa Property Group, Australia's biggest office owner, for A$4.7 billion ($3.9 billion), and Crescent Real Estate Equities Co. in the U.S. for $2.78 billion.

In April, Morgan Stanley agreed to buy 13 hotels in Japan from All Nippon Airways Co. for 281.3 billion yen ($2.4 billion) in what was Japan's largest real estate purchase by an overseas investor. Morgan Stanley also bought 10 hotels in Europe from Hilton Hotels Corp. for 566 million euros ($770 million), adding to its more than 80 hotels worldwide.

Also today, Morgan Stanley said second-quarter profit rose 40 percent, beating analysts' highest estimates, as gains from trading stocks and bonds and fees from investment banking helped the firm overcome a slump in demand for mortgage-related securities.

Morgan Stanley generated $2.9 billion from fixed income, which includes mortgages, even as rising delinquencies on the riskiest home loans curbed demand for mortgage-backed bonds. Goldman and Bear Stearns Cos., the largest underwriter of mortgage-backed securities in 2006, said last week that rising foreclosures reduced their earnings.

To contact the reporter on this story: Hui-yong Yu in Seattle at .

Wednesday, June 20, 2007

Coimbatore land bubble bursts

Chennai prices as an indicator. In some areas prices have quadrupled in 5 years.

After Mumbai, now its Coimbatore. The bubble is deflating faster then expected. The bad news keeps pouring in.

Hindu reports from Coimbatore

our businessmen bought seven acres, located about 10 km from Tirupur for over Rs.1 crore. A real estate broker gave them hope that they could expect a huge income in a couple of months. But nobody has showed any interest in the property in the last six months.
Hardship to businessmen

Half the amount invested in the land got locked up and they could not pay the remainder. It caused a lot of hardship to these businessmen in their day-to-day transactions. It is not a story of single group, but the nightmare of many in Tirupur.
Investors blamed

K.J. Prabakaran of J.S. Promoters estimates nearly Rs.250 crore invested on lands in and around Tirupur is effectively locked now. Even those with good expertise in the land deals invested in land with long term plans. Now they have also been affected. The real estate boom that prompted investors from Tirupur to buy land to a distance of 100 km was at its peak between 2000 and 2005. But it appears that the boom has now burst. Sources in the registration department say that registration of land and agreements has come down in the last two months.

Many realtors say the downturn was expected and in fact overdue for sometime. They blame it on investors who wanted to make quick money by creating artificial demand.

Speculators pushing land costs, hardening interest rates and the fall of the US dollar against the rupee are being attributed as the main reasons for the downturn.

E. Thiagarajan of KRC Constructions said that while real estate was all about property development in metros such as Mumbai, in Tirupur even purchase of agricultural land was labelled as real estate business.

Like others, Mr. Thiagarajan maintains that there is still a good demand for budget houses and plots.

Even now investments on factory buildings and houses are being made based on requirements.

“Those who diverted funds from existing business, investing their surplus funds on land of five to 10 acres around 30 km from the town without any requirement for the same, are now in a spot. In many cases, their regular businesses were affected. Some of them have started selling the land at cost price while some are even incurring losses,” he adds.

Lured by heavy transaction, dozens of small time traders and people from many walks of life played the role of brokers. It was like mushrooming of brokers camping in every other tea shops. Now, their role also has been marginalised.

He, however, insists that transactions are being done now though not on a big scale. Selling the same land to many persons without registering it for a brief period was the trend till recently.

“In every stage, whenever the property changes hand, the value goes up by not less than 20 per cent. This kind of business has come to a standstill,” points out G. Ramasamy of Vasantham Group.

Exuding hope, he further showcases the brighter side of the business: A large number of buyers from all segments are ready to buy plots or houses if the promoter provides necessary infrastructure with quality.

Has the bubble burst in Mumbai ??

Due to cheap availablilty of land, the number of high paying jobs grew in cities like Bangalore, Pune, Hyderabad and Chennai. In these cities one can find a decent apartment for 3k a sq/ft. In Mumbai the corresponding price would be 9k. The Mumbai boom was fueled by cheap credit and black money. End user demand was priced out even at the onset of the boom, when prices were 4k+, which was due to lack of supply. Now with supply outstripping demand several times over, It wont be long before Mumbai prices find their floor at 3-4k a sq/ft. Most builders will sell at the best price they get since they know, the situation could only get worse. Its best for buyers to quote 40% of the value and see if the seller blinks. This market can crash, faster then it went up

Mumbai: The buildings in Mumbai may be soaring higher each passing day, but the property sales charts in the city are experiencing a slump.

Developers are now bending over backwards to make that sale, and are ready to offer huge discounts freebies such as free parking space and stamp duty payments have become commonplace.

In suburbs such as Andheri, Goregaon and Malad builders often offer a 10 to 15 per cent discount on bulk deals. Those discounts could reach 30 or 40 per cent if it will them clinch the deal.

“A builder might quote Rs 10,000 per square foot. But if you sit across the table with money in hand, he will reduce his price by 30 to 40 per cent.” says Bastvi Estates Agent, Rashid Bastvi

Because the sales have fallen, the rate in some cases rates have gone down by 90 percent in the past six months

“In my opinion, overall sales have gone down by 60 to 70 per cent, also in the second-hand property market, sales are down by almost 80 to 90 per cent,” President of Estate Agents Association of India, Yashwant dalal says.

The sales slowdown is playing heavy on the psychology of the developers. Even A-grade developers are now calling on brokers with a hope to turn the sales graphs up. But there is no reason for the common man to get worried, as it is the ideal time to cash in on this real estate market slump.

Tuesday, June 19, 2007

OMR Road Chennai IT highway of the housing boom

Hyderabad: It's raining homes on Chennai's Old Mahabalipuram Road or OMR as national realty developers are betting big on Chennai's IT highway located in the outskirts of the city. Over 10,000 new apartments are coming up in this place in four major residential townships.

There has been investment to the tune of Rs 4,000 crore in this emerging residential hub. Foreign real estate fund Pacifica Group is investing Rs 1,000 crore in a mixed use township that will have 4,500 apartments to offer. The Hiranandani Group is investing Rs 2,000 crore.

Hyderabad-based developer Lanco has also announced investment worth Rs 600 crore in the area while Bangalore-based Purvankara Group is bringing in Rs 200 crore to build 730 apartments.

These companies are counting on the demand for an estimated 4 lakh IT professionals that Chennai's IT corridor is expected to bring in.

"We think soon it will develop into a full-blown suburb for the city. And what we see in other cities is that people like to walk to work. They don't want to spend much time traveling. That's the reason we feel residential flats have huge potential here," Vikram Agnihotri, Regional Head of Pacifica Group, says.

While the IT influx has been a major attraction, experts of the housing industry say they prefer Chennai to other South Indian cities for development because it does not depend solely on the IT industry.

All this attention has caused land prices in OMR to double within just six months from Rs 15 crore an acre in December last year to nearly Rs 30 crore an acre now.

The first apartment complexes being built here are currently being pre-booked at Rs 4,500 per sq ft and the realty firms which have made huge investments here believe that they will see a 10 to 15 per cent appreciation on this price year on year, making these homes more and more expensive in the days ahead.

Monday, June 18, 2007

Mysore Road-Magadi Road arc to host IT corridor

The new boomtowns in Bangalore

Bangalore: IT majors crying for space in Bangalore can say cheers: a 1,000-acre dedicated hi-tech corridor has been proposed between Magadi Road and Mysore Road for clean industries in the Comprehensive Development Plan (CDP). The corridor will be 17-29 km from the city centre and will house IT and IT-enabled service industries. This will ease the pressure on Whitefield and Electronic City areas, where the IT industries are concentrated.
The corridor was proposed and integrated with the Master Plan 2015 prepared by the Bangalore Development Authority (BDA). It was approved by the state cabinet on Friday. The government has asked the BDA to fast-track this corridor. BDA commissioner M K Shankerlinge Gowda told Sunday Times of India that the Karnataka Industrial Area Development Board will be asked to start land-acquisition process by next week as BDA is to receive revised CDP from the government by then.
The corridor will have tall glass-andsteel skyscrapers, with the CDP allowing vertical growth in this zone. The floor area ratio has been doubled to four now. The additional FAR has been granted as the minimum width of roads stipulated here is 100 ft. “The proposal is to set up 10 integrated townships of 100 acres each with international-standard amenities. They will be developed through a global tendering process. Ten top-of-the-line developers will be short-listed. The concept is plug-and-play for offices, Gowda said.
The BDA doesn’t foresee any land acquisition issues as the corridor area has been marked clean-industry zone. The BDA will share developed land with landowners here. “It’ll be on 60:40 ratio, and land owners will gain,” Gowda said.
The corridor can become an instant hit, say industry pundits. Water, infrastructure and space have been addressed. Dearth of water and infrastructure issues raised by IT industry captains in Whitefield and Electronic City belts have been addressed here.
The Master Plan has drawn up a connectivity network. The existing Bangalore-Mysore four-lane road, Mysore-Bangalore double-track, monorail connectivity, Peripheral Ring Road, Satellite Town Ring Road, BMICP road and NHAI’s proposed Intermediate Ring Road will ensure smooth movement of traffic.
Hi-tech corridor will have 10 integrated parks, each of 100-acre size on either side of a six-lane road
60% area earmarked for residential purposes and guest houses; 37% for office space
3% for commercial development, including shopping malls and multiplexes
What they say
The focus currently is on the southeast quadrant and towards Devanahalli airport. Besides, developing infrastructure along the Mysore Road-Magadi Road corridor is a far cry, considering the delays we are seeing in building the infrastructure to get to the upcoming airport. — Juggy Marwaha, head, sales, RMZ, a commercial property development company
Any initiative to create new infrastructure is welcome. But we need to do it with speed, planning and transparency. — Kris Gopalakrishnan, president, Infosys Technologies
Instead of the government diverting its focus, it should allow the Nandi corridor to be completed. — Mohandas Pai, director, HR, Infosys