BANGALORE: The Karnataka high court has quashed both the preliminary as well as final notifications with regards to acquisition of about eight acres land of the petitioners for Electronics city-phase IV, an industrial area project by Karnataka Industrial Area Development Board (KIADB).
Allowing a petition filed by residents Veerasandra area, Justice Anand Byrareddy noted that the area of the project has been ‘progressively and liberally’ whittled down over the years, reducing it to 48.23 acres from the original 224 odd acres as per the August 2003 preliminary notification and to 138 odd acres as notified in the August 2007 final notification.
Even after the final notification, there was further deletion owing to various reasons, including denotification etc. As regards to industries which are situated in the area, the court has given liberty to the government accommodate them.
BANGALORE: National Committee for Protection of Natural Resources (NCPNR) has urged the Karnataka government to take over the land given to the Karnataka Gymkhana Association (KGA), Hubli.
Addressing a press conference here on Tuesday, SR Hiremath of NCPNR said that the land, over seven acres situated at the heart of Hubli city, is valued at over Rs 80 crore.
He alleged that the KGA had altered and violated the objectives of the land grant by adding ‘recreational’ and other sports.
He said the taskforce headed by retired IAS officer V Balasubramaniah had also confirmed the land grab attempts by the powerful.
Besides taking back the land, he urged the government to hand over the issue for a CBI inquiry to bring those who tried to usurp the land to book.
Meanwhile, based on the government’s order, deputy commissioner of Dharwad is probing the case.
Bangalore has been the fastest-growing city of India since the past few decades. IT has been the major growth driver and is responsible for aggressive real estate development in the city. Bangalore has a multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road, Whitefield and northern parts of the city.
Luxury Residential: Bangalore is the third-largest hub for high net worth individuals (HNIs). It is estimated to be home to over 10,000 individual dollar millionaires and has a large base of expatriates. There has been increased demand for high-end residential apartments in the city, particularly in the central business district (CBD), secondary business district (SBD), Whitefield, north Bangalore and Outer Ring Road (ORR) sub-markets. This demand is expected to be steady over the short-term.
Bangalore is one of the most promising markets for villa projects in India. Villa and row house developments are most active in the north, ORR, Sarjapur Road and Whitefield micro-markets.
Mid-Income Housing: This segment is mainly driven by individuals working in the IT and ITeS industry. The main driving factors for this segment are social infrastructure, proximity to workplaces, good physical infrastructure and access to medical and educational facilities. Micro-markets such as Whitefield, the ORR IT corridor, Electronic City and few areas in north Bangalore have witnessed a steady demand from the mid-income segment.
Affordable Housing: The demand from this segment comes from extremely price sensitive buyers — therefore, affordable projects are developed in the suburbs as these areas offer large land parcels at lower acquisition costs. Areas such as Mysore Road, Hosur Road, Kanakapura Road etc. have witnessed high demand for this segment.
The affordable housing concept has gained ground in Bangalore mainly due to a few graded developers like Purvankara, Brigade Group, Shriram Properties, Golden Gate Properties, Ozone Group and Nitesh Estates who are focusing their projects for this customer segment. In most cases, housing units are made affordable by reduced sizes, compromising on civic amenities and other USPs which were typically provided as differentiators to the competing projects.
Further, the planned Metro Rail and Peripheral Ring Road have increased the demand on the outskirts of Bangalore. VBHC Attibele and Patel Neo Town in south Bangalore, Provident Welworth and Sovereign Lakefront in the north of the city, and Provident Sunworth and VBHC Kengeri in west Bangalore are some of the affordable housing projects in the city.
With increased demand, ‘affordable’ housing projects have witnessed an increase in capital values and are now priced higher than or similar to mid-income projects. These projects have also seen substantial rise in capital values because of increased cost of land acquisition and construction.
Developers have therefore resorted to redesigning their projects to address the demand of a wider target segment looking at the budget homes category. Major national level players and local developers have plans to enter the affordable housing segment of Bangalore. These include Tata Housing, Usha Breco Realty, Godrej Properties, Ashoka Group, Jannaadhar Construction, CSC Builders, Brigade Group, etc.
Overall Demand Scenario: The Bangalore market saw absorption of 6,519 units in the second quarter of FY’13 against 6,689 units in the previous quarter. Unsold stock in during the quarter totalled 50,184 units as compared to 46,823 in the previous quarter, reflecting a vacancy rate of 53.4 per cent, down from 54.2 per cent the previous quarter.
Supply: A total of 21 residential projects were launched across Bangalore in the second quarter, offering 9,889 units against 10,009 units in the previous quarter. Meanwhile, eight residential projects comprising 2,319 units in various sub-markets were completely sold out. The major projects launched during this period included Prestige Sunrise, Prestige Ivy Terraces, Shriram Sameeksha, Sobha Santorini and Brigade Begonia.
CBD & SBD: Low supply and high demand. Due to low availability of large land parcels and high capital values, these micro-markets have seen a limited supply of residential developments. These markets have very good social and physical infrastructure. Nitesh Park Avenue, Prestige Kingfisher Towers, Westcourt Cityview, ETA Beau Monde, 77 Degrees East, Sobha Indraprastha and Prestige Edwardian are some of the high-end projects in these micro-markets.
BANGALORE: Bangalore-based real estate developer Embassy Property Developments is in talks to raise Rs 800 crore in debt to fund its planned acquisition of an IT park in the city, a person with direct knowledge of the development said. “The builder is in talks with banks and financial services companies including HDFC LtdBSE 0.36 % and Indiabulls to raise the debt,” this person said. “Earlier, Embassy and Blackstone were jointly expected to buy the 2.1-million sq ft Vrindavan Tech Park, but now the PE fund will enter when 100% stake in the park is bought by Embassy. “Chairman and MD of Embassy Group, Jitu Virwani , refused comment for this story. An HDFC Ltd spokesperson denied the development , while Indiabulls said it was not aware of any such development.
Embassy Property plans to fund the Rs 1,951 crore acquisition through . 900 debt and . 1,100 crore equity, the person quoted earlier said. “There is Rs 315 crore debt on the project from a public sector bank that has turned NPA. The IT Park is also involved in arbitration with Citigroup, which provided mezzanine financing to the project,” he said. Post the acquisition, Embassy and Blackstone will not only get the 2.1 million sq ft of lease space but will also get hold of 75 acre of undeveloped land within the IT Park.
Some of the tenants in the IT SEZ include Cisco , Sony, Nokia and KPMG. “The builder may also decide to sell some space to Blackstone ,” the person quoted earlier said. Blackstone bought 50% stake from Embassy Group in Embassy Office Parks, which comprises three commercial properties totaling 19 million sq ft, for Rs 1,015 crore last October.
NEW DELHI: Private equity firm Avenue Venture Real Estate Fund has invested Rs 55 crore in a residential project developed by Rohan Builders in Bangalore, property consultant Jones Lang LaSalle India said.
“Rohan Builders, one of Pune’s leading residential developers with existing presence in Bangalore, has partnered with Avenue Venture Real Estate Fund (‘AVREF’) for development of a residential project in East Bangalore,” JLL India said in a statement.
Mumbai-based domestic real estate fund AVREF has invested about Rs 55 crore in Rohan Builders’ project, it added.
Jones Lang LaSalle India acted as transaction advisor in this private equity deal.
“This deal once again proves that even in times of curtailed liquidity for real estate, there is capital available for quality projects by established and credible developers. Jones Lang LaSalle India is currently working on a number of similar deals on behalf of our clients,” JLL India Chairman and Country Head Anuj Puri said.
Rohan Builders has several projects in Pune and Bangalore. This is the first time the company has adopted the private equity route for its portfolio expansion.
AVREF primarily invests in residential projects in Pune, Bangalore and Chennai. It identifies developers on a growth trajectory and partners with them right from the initial stage of land acquisition.
“The size of the project is approximately 7 lakh sq ft of saleable area and is located in Boganahalli, one of the fast-developing corridors of Bangalore city,” Rohan Builders CMD Suhas Lunkad said.
Pune and Bangalore represent the highest potential for developers catering to residential demand from India’s thriving IT sector, he added.
NEW DELHI: Realty firm Nitesh Estates launched a housing project, Nitesh British Columbia, in Bangalore with an investment of Rs 300 crore.
The project, a premium high-rise condominium project spread over 4.70 acre in south Bangalore, is aimed at first-time buyers, Nitesh Estates said in a BSE filing.
It will have 388 apartments with an area ranging from 1,000-1,600 sq feet and is in 2-bedroom and 3-bedroom configuration.
“The apartments are attractively priced at Rs 37 lakh onwards,” the filing said.
BANGALORE: Behind the glitz and glass of IT City’s high-rises, are a rash of slums, home to at least 25% of the city’s population, which actively participate in its growth and functioning.
Slums are increasing in Karnataka, a highly urbanized state with 37% of its 6.11 crore people living in cities.
Official statistics from the Karnataka Slum Development Board (KSDB) say the state has 2,796 slums housing 40.5 lakh people. As Bangalore grows, the number of slums is increasing, taking the official number from 473 in 2003 to 597 in 2013. Officials say 13.86 lakh of the 84.25 lakh people in Bangalore (16.45%) live in slums. Experts term the figure “gross underestimation” and peg it between 25% and 35%. The urban poor live on government, private and railway lands. Most slum dwellers work as drivers, domestic helps, cooks, construction labourers, vegetable and fruit vendors, watchmen etc.
Bangalore is followed by the relatively under-developed Hubli-Dharwad with 105 slums, and heritage city Mysore houses 81 slums. Mangalore, however, is an exception with the least number of slums, and even those have basic facilities.
Experts say Bangalore has many temporary and scattered slums, which are hardly counted by officialdom. These include migrant workers living near construction sites, and other poor sections flowing into the city.
Issac Arul Selva, convener of Slum Jana Andolana, said: “The official figures are a gross underestimation. About 50% of the city’s population lives in single rooms, and can be classified as the urban poor. Many servants live in cars and houses of rich people, but are not counted.”
Kaveri RI, neuroscientist and member of the People’s Democratic Forum, has a word of caution. She said: “Demographic shifting of the rural population to urban areas and zero planning by the government to control migration to urban areas is leading to an increase in the number of slums. If the government fails to plan now, the poor have no choice but to live on the streets by 2017.”
A phenomenal increase in realty prices is also leading to the mushrooming of slums. Even the government’s low-cost housing is unaffordable. Bangalore Development Authority, which is building flats for the poor, issued a notification on October 12, 2011, to construct 13,172 flats in 13 places on the city’s outskirts. It fixed Rs 7.5 lakh for a two-room flat, drawing a poor response.
Former Hubli-Dharwad Urban Development Authority chairman Lingaraj Patil blames vote bank politics. “Many politicians help in the formation of slums for the votes,” he said.
BANGALORE: Tired of standing in serpentine queues at BBMP offices and BangaloreOnecentres to pay property tax? Now you can pay at computerized kiosks in several banks.
BBMP on Monday inaugurated the first such facility at the IDBI Bank branch on Mission Road. Similar ones will be replicated in various nationalized and private banks.
Mayor D Venkatesh Murthy said the service will be thrown open to the public in phases, with the first covering 50 branches (IDBI Bank and Corporation Bank). In the second phase, 150 more bank branches will be covered by the second week of September. The third and the final phase will be in place by October under which 350 bank branches will facilitate the payment of property tax, he added.
BBMP officials said the idea is to facilitate smooth transaction of property tax payments and minimize rush. The service has been introduced keeping in mind that not everybody can make payments via net banking. Bank branches are an easy alternative for those who don’t prefer online transactions, said a senior BBMP official.
Palike officials said taxpayers will be given computerized receipts at banks.
Banks BBMP has tied up with
IDBI, Corporation Bank, Canara Bank, Indian Overseas Bank, ICICI Bank, HDFC, YES Bank, Axis Bank, Kotak Mahindra, Indian Bank, SBI, Maharashtra Bank, Indusind Bank
BANGALORE: The high court on Tuesday ordered notice to the government, KIADB and Bangalore Urban DC on a petition filed over two acres of grant land in BKPalya, near Devanahalli.
A high court judge’s son is said to have received Rs 1.24 crore in compensation from KIADB in lieu of the land.
Justice AN Venugopala Gowda also requested advocate-general Prof Ravivarma Kumar and senior counsel PS Rajagopal to assist the court as amicus curiae on the issue, before adjourning the hearing to Wednesday. The judge requested them to enlighten whether the court can proceed against the DC, who is also a quasi-judicial authority.
The court also held that a copy of the petition was deemed to have been served on Phaniraj Kashyap, one of the respondents and son of sitting HC judge K Sreedhar Rao, since it was sent by registered post on August 5. Phaniraj, who filed a caveat, did not appear on Tuesday, which the court took note of.
The petitioners, who claimed to be legal heirs of the original allottee of the land, said it cannot be alienated within a stipulated time. Yet the land changed several hands before reaching Phaniraj during the non-alienation period. When they challenged it, their petition was rejected by the assistant commissioner, following which they moved the deputy commissioner.
The DC initially stayed the assistant commissioner’s order. “Phaniraj approached the DC personally and with influence from his father, succeeded in getting the stay order altered,” they alleged.The land was acquired for an IT park by the KIADB, which awarded Rs 1.24 crore in compensation to Phaniraj, ignoring the petitioners’ objections, they said. PS Rajagopal said the high court has jurisdiction to look into orders passed by DCs under Article 227 of the Constitution, and that the case can be referred to a magisterial inquiry.
BBMP asked to pass fresh orders
Justice L Narayana Swamy on Tuesday disposed of a petition filed by M Raghu, BBMP junior engineer (South), asking the civic body to pass a fresh order in his case.
This was after the court noticed that as against the BBMP commissioner’s directive to suspend him on August 7, the additional commissioner had issued a suspension order on August 6 itself, over 22.88 tonnes of missing iron rods obtained during the demolition of Puttanna Kanagal Chitramandira, as there was no auction or records about storing the same.
BANGALORE: Your dream flat in Bangalore’s tony areas is set to leave a bigger hole in your bank account.
The new market-based guidance value for property registration came into effect on Monday, pushing up the land cost by 30%-50 % in 90% of Bangalore city areas to 100% in the rest.
UB Towers on Vittal Mallya Road is the most expensive property in Bangalore, followed by Raj Bhavan Road, Commercial Street and Sankey Road.
The value of the property at UB Towers has been pegged between Rs 20,150 and Rs 20,350 per sqft. And properties on the outskirts of Bangalore North taluk cost about 1% of that – Rs 250 per sqft, making them the cheapest in the current revision.
The revision is expected to increase the government’s revenue by Rs 1,500 crore, taking it closer to the Rs 6,700-crore mark in the 2013-14 financial year.
For the first time, the registration of houses and villas in the gated neighbourhoods has been included with the guidance value that ranges between Rs 500 and Rs 1,000 per sqft.
Revision likely to curb black money
The final values have been published with minor changes, based on feedback from citizens, said Adoni Syed Saleem , inspector-general of registration and commissioner of stamps.
An officer in registration department said: “The revision will help augment our revenue collection, and curb black money in property deals.”
N Manjunath, a realty dealer in Yelahanka, said: “The revision is expected to have a negative fallout in the initial 3-4 months and property registrations may slow down.” The revised guidance values of properties in BangaloreRural and Ramanagara districts have also been published.
The revision will apply to villas, apartments and gated communities. Geographical Information System was used for the first time to determine areas that have witnessed a growth in the number of apartments. Revision has been based on locations / type of construction /amenities provided etc. The lowest value per square foot is Rs. 250 and the highest Rs. 20,350 per sqft
Effect of the rise
Property values will go up by around 30-50 per cent. Low and middle income groups will be discouraged from buying property. Developers will, naturally, load the increase on the buyers.