Monday, June 07, 2010

Mumbai setup for redevelopment.

Its about time the old run-down structures are torn down and replaced with new developments. Needless to say here the big winners are the troika of builders, politicians and state government babus. Its hard to fathom the amount of black money which will be generated by 20,000 projects.

With the IPL scandal it has been apparent to everyone that Pawar had a big stake in the development of Amanora Town in Hadapsar, Pune and also he was involved in the Blue Ridge Hinjewadi project.. Every project has the backing of a big politician so now it remains to be seen if those projects are affected if he has to step down.

With DC rules clarified, Mumbai is set for a flurry of redevelopment

Mumbai: Greater clarity in rules and the pressing need for more houses in land-starved cities like Mumbai have builders eyeing opportunities for redevelopment after a two-year market slump and recession.

"Now we have the opportunity to do large redevelopment projects, as the policy on redevelopment has been clarified," Godrej group chairman Adi Godrej said last Friday. "We are hopeful that within the next six months, we will announce a few large redevelopment projects.

"Another reason [for redevelopment] is the scarcity of land for development in Mumbai," Godrej said, adding that some of the buildings in the island city are "very old, built during the British era".

Besides Godrej's realty unit, Godrej Properties, Housing Development and Infrastructure, DB Realty, Ackruti City and the unlisted Shapoorji Pallonji & Co and Kumar Urban Developers are among the big builders chasingre development contracts.

More here


Anonymous said...

Yesterday, i was studying los angeles in google earth and i compared the land area for los angeles with mumbai on 72miles above and was surprised to know that los angeles was nearly 8-10 times larger then mumbai and still have 1/2 the population of mumbai.

No wonder, there was large roads, paths for pedestrians and everything is wonderfully built, there are big roads where people can travel from point A to point B very easily unlike city like mumbai where it takes 1 hour to travel 15kms. Due to this problem all people want to live near to their work place which is mainly in town and BKC area hence high prices for all the homes in mumbai.

Mumbai needs atleast 4 times bigger roads and water lines + 4 times land to have 1/5th standard of United States city, which is never going to happen because government is very lazy and slow in releasing land and they are asking for very high prices for land allotments. This is vicious cycle which is never going to stop which is why prices of houses near business areas will always remain high.

Hence mumbai is always going to remain slum like area where there will always be noise, traffic, water, air pollution.

The same also applying to all big cities and metros in India including delhi, banglore, kolkata etc., and it has collateral effect.

Prices for premier housing complex are still very very high and there is no availability of apartment their due to high standard of living.

India's population is also growing and youth is earning more money then their parents which has created totally new home buyers market. Previously where children use to live with their parents till they was married and have their children but now they are opting for their own house due to husband and wife both earning money.

all these factors are very unique with india and not found in American society, hence unless job markets become very very bad in India prices are never going to fall. Which I dont feel going to happen in next decade because India is creating too many jobs internally as well due to increase in per capita income and infrastructure development.

So Am i saying prices for houses are correct, NO WAY, but are they going to become 1/2 in next few year? KEEP DREAMING.

Yes, I agree there will not be any real growth for next few years till there is big inflation in US economy which is not far away.

Anonymous said...

Anon above:
Why don't you buy more flats and stay out of this place. You know what you are doing and pretty confident about it, then why do you come waste your time on these bubble blogs. Enjoy your riches and investments.

Anonymous said...

to Anon 5:21

Compare Mumbai population density to Tokyo's population density. They are comparable. In fact 10-20 years ago, Tokyo had higher population density than Mumbai.

Tokyo never had slums and Mumbai had them even when it was 1/10th of its present size.

Also the high population density did not stop Tokyo's prices from falling even more than 50%

Anonymous said...

What about comparing Mumbai to New York?

What is so great about Mumbai that the offices here are costlier than offices in New York?

May be we do not know the things that make Mumbai costlier than any damn place on earth, but our politicians and builders surely know it.

Making sure masses do not get what they want, making sure masses remain unhappy and miserable for the rest of their lives is good for politicians and bankers.....

Anonymous said...

India is full of greedy morons trying to justify high prices for RE. They just won't accept anything about bubble till they really see a pole going in their arse hole.

Anonymous said...

The very fact that people are buying apartments costing 1-2-3 crores indicates Indians are becoming prosperous. The lazy people always curse the successful and get some satisfaction out of it. Those who do not accept reality create fictitious things like bubble, compare India with west etc to console their defeatist personality.

All the successful countries have gone through this phase. Stop the blame game and accept the reality.
India is progressing and all its citizens should be proud of it. No point in feeling jealous on successful people.

Instead of blame game, try to educate people on population control. If indians stop breeding like cockroaches, things will definitely better. Make a law like china on birth control. viz : one couple , one child . Anybody indulging in polygamy like muslim, arrest them , sterilize them and send them to Rajastan to develop the desert. Ban Viagra like drugs in India.

India has got a great future. Support India

Jai hindustan

Anonymous said...

Anon above:

You are talking like a fool who doesn't understand any economics. It is the easy money caused by low rates and Govt. stimulus doing the growth thing. I hope you grow and see the real world. People who don't want housing bubble are more patriotic as they think about the long term future and not in favor of greedy bastards who are gaming the system for their own greed.

Anonymous said...

Incredible India!!

We have so many sundaas bhai's and sussuu's in their smelling glory...that the nation is basking in their smelly glory...

Anonymous said...

Despite the higher-than-anticipated GDP numbers and a rocking manufacturing sector during 2009-10, both credit as well as deposit growth were much lower at around 17 per cent, which is a cause of concern, finance minister Pranab Mukherjee said in Mumbai today.

The banking sector too faced a major challenge with rise in the non-performing assets (NPAs) reported by some banks, the finance minister added. Credit growth for the current year is projected at 20 per cent by RBI and banks will have to step up their performance to ensure that this is achieved, Mukherjee said while addressing the 63rd annual general meeting of the Indian Banks Association (IBA) in Mumbai today.

Anonymous said...

Population of USA 300 million. Land area 9 million sqkms=900 million hectares = 2500, say approx 3000 million acres.

= 10 acres per person.

Area of china same, population 1.4 billion

= 2 acres per person

Population of India 1200 million, land area 3 million sq km = 300 million hectares = 700 million acres.

= 1/2 acre per person.

Raghavendra Naik said...

It is a habit of anti nationals to indulge in India bashing. The bottom line is that people are jealous of our success. Anonymous punk 8:56 has posted a link 'Incredible India' which is nothing but bullshit. India haters are there everywhere and we should not take them seriously.
We being citizens of this country should positively contribute towards the development. Those who spread malicious rumors are not worthy to be the sons of 'BhartMata'. The government should trace such bloggers and deport them to Pakistan.

Few years back we couls only see rickety Fiats, Ugly Ambassador cars, 18th century trucks on our roads. Now we have mercedez, bmw, jaguar, honda etc. If all these things do not represent development, what else will.

The homes are expensive because of shortage, just like other commodities. Once, government starts building new homes, everyone will be able to afford a home. This is only a matter of time.

Jai Hind. Jai Bharat Mata

Anonymous said...

More on Incredible India!..

Raghavendra Nail AKA Sundaas / Sussuu...who drives Merc's and lives in 40 crore apartments? People in this forum openly talk about black money...has a single person been arrested for tax evasion?

I rest my case..

Anonymous said...

Speculation is not growth, be is RE or Stocks. Especially when it is happening at the cost of a normal earning person in India. I would suggest that people look at the current policies GOI has before it ends up in a situation like Greece.

Politics has taken over the economy and to get re-elected, the ruling party doesn't care if they have to borrow more to show false growth and raise the bubble even further. Look at the debt to GDP ratio. It is nearing 90% now.

After new elections when a new ruling party will come all the bad decisions will be exposed like happening in UK. And India will not be in a position to impose austerity measures as no Govt. employee would like a 40% paycut.

So, don't be too optimistic on false growth. No one here is bashing India. They are just being realistic.

sr said...

While population of India is 3-4 times that of the USA and land area is one-third, that by itself does not explain "high" demand in India. In the USA, land use is very highly "zoned", and you cannot just build a 10-storey apartment building whereever you want like you can in India. There are zoned areas that for example say one independent house per 10,000 sqft of land. Also, joint family system is non-existent in the USA. Even parents do not reside with their grown up children. In India, it is still common to have 5-6 people per household. In essence, India and the USA work out to the same thing for land and population based comparison.

DhImAn said...

Raghavendra Naik, is this what it has come to today? That you are faced with overwhelming evidence that Indians are dishonest and you say that that is the way to "development"?

You value a lying cheat who rides a BMW more than an honest individual in an Ambassador?

Well, scum like you sold the country to the British, and you are doing it again.

You have no idea of what survives long term - if lying, cheating and deceit were a viable long term survival strategy than we wouldn't have people teaching exactly the opposite for tens of thousands of years. The fact that low scum like you even exist today is a testament to the fact that your father and grandfather and their fathers lived an honest and honorable life. Congratulations for spitting on their ashes. Hell has a special place reserved for exactly your type of person.

You think that the government will solve all problems? You're fucked in the head. Government produces nothing - all it can do is tax, reducing the capital of everyone in the process and thereby slowing progress and development.

Get an education, before opening you mouth and showing yourself as an uneducated, uncouth traitor to the very Bharat that you sing to with your mouth but desecrate with your actions.

Dharmo Rakshati RashitaH.

You aren't protecting Dharma, so you'll find - one day and to your acute sorrow - that Dharma won't protect you when you need that protection the most. Or perhaps you won't face the consequences of the evil you have brought upon Bharat - but your sons, and their sons and their sons' sons will. After all the sins of the father are visited on the children.

For your own and your progeny's self-interest and future survival, stop being a moron.

Anonymous said...

This guy Raghvendra Naik is probably a corrupt politician or an employee some corrupt government Dept. Rampant corruption everybody's knowledge any one denies it has some ulterior motive. These are not Desh Premis, these are Desh Drohis. People like him try to take India to the level of Kenya or Zimbabwe.

Even NRI's doing well abroad and the local professionals, can not afford the exorbitantly priced apartments. So, the question is who buys these apartments. Mercedez/BMWs are not the indicators of the health of a country's economy. It is the living standard of the majority population.

Anonymous said...

Rupee is going to 52/USD.

June 10 (Bloomberg) -- Goldman Sachs Group Inc. lowered its three-month forecasts for Asia’s emerging-market currencies, predicting a more modest pace of appreciation for most as the euro slides.

The U.S. bank weakened its projection for South Korea’s won to 1,150 per dollar from 1,100, that for Indonesia to 9,000 from 8,800, its forecast for Malaysia’s ringgit to 3.15 from 3.10 and its prediction for the Singapore dollar to S$1.38 from S$1.36, according to a research note received today via e-mail. Its estimate for India’s rupee was slashed to 47.50 from 44 to reflect the nation’s budget gap and current-account deficit.

Anonymous said...

India has tons of newly-created money in the form of debt (private or public). How long will this borrowing last?

People in power would go home after their term is over leaving this shit deal with for the new Govt.

India is getting closer to be another Greece.

Raghavendra Naik said...

India is fast developing and has vast resources at t its disposal. The current debt does not pose a problem to the economy at all. Now that the government is spending large amounts towards higher education, soon we will out-beat EU and USA in technology and skills. So do not worry about our nations debt. Instead try to contribute something positive.

The housing problem is a temporary phenomenon. In the coming 5-10 years you will see townships springing up everywhere in India and everyone will be able to afford good home.

There is hope my friends. Do not listen to doomsday predictions from some disgruntled nation haters. These people are losers and curse our Bharat Mata whenever opportunity arises

Patience is the key to everything

Anonymous said...

Raghavendra, being an optimist is good. But being a blind faith person is moronic. To be patient is good..but to ignore reality and evil behavior is being evil oneself..

You are the type of chalta hai attitude type person that causes problems to everyone....govt. spending money on education needs to be audited..else the money will disappear into swiss a/cs and no will be the wiser/educated...People like you will marvel at how many more BMW's fat gandhi topi types are now able to afford and call this progress...

I am still convinced by your writing style that you are sundaas bhai in a new incarnation. Because, A sundaas smells of sundaas even if you give it a new name ...

Vik said...

I was exploring rates around the Bandra Kurla complex and some residential apartments for 600 sq ft carpet are quoting for 1.7crores.

While BKC does have its advantages how many people who work there can afford to pay 1.7 crores ?
Investors are bidding up prices high and driving end-users to suburbs like Vasai, Virar and Mira road.

Its amazing how big the bubble has become

Anonymous said...

Once someone buys a flat beyond his reach, he virtually signs a slavery bond. In this case, the employer and the bank become his masters and he will toil until death takes him away. Highly educated people fall into this trap just for the image and go through untold sufferings. 1.7 cr is an astronomical amount and what do you get for this one. 600 sq.ft superbuilt up flat, the living space being little over 300 sq.ft. This 300 sq ft includes bedroom/kitchen/sitting room/bathroom. so each room is like a cubicle.

I would rather stay in a rented flat until I retire and buy a small cottage in a hill station in case i live beyond my retirement age with the money i saved. No hassle, no master/slave bond and a carefree living though i dont own anything.

Anonymous said...

So many whiners on this blog..since so many years...2005 and still counting....all the best folks !

Anonymous said...

anon@ 9:19 AM

The whiners are people who are trying to provoke people here to buy RE. The realists here are calm and patient people who understand that price and value are interlinked.

The more price we pay the lower the value..if we buy at unrealistic prices, we lose our money and the money which could have been made on the money saved..It's a very expensive proposition. Nope, we are happy to stay rental and make money until realty players start shivering with fear...which signs are they are starting to feel...look at the spare of QIP's with desperate equity convertible conditions.

shayna said...

To Raghav Naik,

To be honest for the last 10yrs since i've been living in the UK i was of the same opinion on the future of India as you've projected.
However in the last 6mnths i've been soo disillusioned by the abject chaos in the country that i don't see any light at the end of the tunnel for India.
* Article in Bloomberg yesterday on state of Indias sewage treatment, 48% of the faeces is left in open in ALL CITIES. bc they want to build the world tallest residential building to stay as high as possible from the stench.
* India has the highest road deaths in the world, 120000/yr and the punishment for death from negligient driving - 2yrs, thats what they got in the Bhopal tragedy too.
* Security is almost non-existent. Every day you read of Armed fores personnell involved in spying. We are sandwiched between China n Pak, 2 nations that are causing the most pain to USA. What is our chance? Sala hindu machar aur uski bharat MAA.
* The absolute mind boggling state of affairs, where a portion of the country is in a grip of Maoist violence because of the growing disparity in wealth. And the plans for DXB like projects that are attractive only to billionaires.
*The GOI needs to sell shares worth $53b to reduce budget deficits, BSE is at 17000 and now facing the twin dangers of more share offerings and double dip. Not to mention liquidity freeze among FII.
*The ruling party in a state of stupur and its partner NCP chasing cheer leaders and what not. To make matters worse the opposition is almost non existent with BJP baniyas fighting amongst themselves.

Honestly speaking - using a aviation term- INDIA is headed into terrain under a controlled flight.
Had it not been for the USA and the WEST even Srilanka would have caused trouble for India.
I see a lot of dangers ahead without any signs of inspiring leadership or policies.

Well, i guess instead depressing myself, i should uplift my spirits hic! thinking about the valuation of my Indian RE investments hic!

Anonymous said...

To the moran Raghavendra,
You are shitting all around here in this blog and totally dehydrated...better take your arse somewhere else now...your posts are meaningless and stinks...if there is a train track nearby, go and jump under a runnig train, you deserve it...

NRI said...

When will Rupee touch 52... You are predicting now for months!! 52 was an aberration

CurrencyTrader said...

Rupee forecast:

Ramandeep said...

r u a man or lady. If you are lady, you must be nurse in UK hospital. Please give us information about Uk and jobs in health industry

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rajni sharma said...

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Nd one of your best post...Thanks
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