Showing posts with label Chennai. Show all posts
Showing posts with label Chennai. Show all posts

Monday, September 10, 2012

One last time: a realty review!

B&E’s argues why real estate developers in India can go the full hog with their price hikes, at least for now; and we add a cheesy realty review to go along with it one last time this year...

Cheesy, because it’s been done a hundred times before. Interesting, because for once, we’re advising the realty players to actually increase their offer prices. Today’s scenario is a far cry from that of 2009, when the demand for real estate in India clearly reflected the weak global sentiments – absorption rate of both commercial and residential properties had then stood at a miniscule 9% (Q1 2009). In contrast, at this point of 2010, India’s realty sector already shows an absorption rate that’s as high as 21%; and if the trend continues, as per collated B&E estimates through market reports and expert sentiments, India will need another 240 million sq. ft. of commercial space and about 4.25 million units of residential real estate to meet the growing demand between 2010 & 2014.

At the same time, the supply largely remains constrained due to the slow pace of construction activity that happened during FY2009-10. As a result, the demand for real estate across major metros (which includes Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata and Hyderabad) in the country is estimated to become three times the supply during 2010–14 (as per US based real estate services firm Cushman & Wakefield). But in a scenario where demand is growing, supply unfortunately is still not growing. It seems that the top builders in India too want to test the elasticity of demand and as such an enormous rise in prices of real estate, especially residential units, can be clearly seen all across India.

As per a recent research conducted, among 2,863 localities across major metros in India, residential property prices have witnessed a sharp rise over the last one year. Mumbai of course is the vanguard of such rise. While property prices in areas like Mahalaxmi in Mumbai have climbed a whopping 63.5% (from Rs.25,117 per sq. ft. in 2009 to Rs.41,056 per sq. ft. in 2010), they have gone up by 57% in Colaba. Other localities too in Mumbai have witnessed a sharp price appreciation in the range of 36%-55%. Similar has been the rise in other metros. While property prices have appreciated by about 35% in Delhi and Bangalore over the last one year, they have gone up by 25-30% in Chennai, Gurgaon and Pune. Kolkata, Noida and Hyderabad too have seen real estate prices rising in the range of 5-20% in 2010. The name’s quite cheesy, but as per Makaan.com Property Index (MPI) – which, unbelievably, is India’s first property index – property prices at a national level have increased significantly by 7.2% in the last one month. The index in August 2010 stood at 1,187 as against 1,107 in June 2010. Compared to August 2009, MPI in August 2010 has moved up by 13.9%.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
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Friday, August 03, 2012

Policy-MEDIA: REGULATION

Instead of taking a close look at its own policies that led to the recent public agitations, The government is now looking at ways to attack freedom of press, just for being the carrier of bad news.

The history of the government stepping in as regulator has not been impressive. Moreover, the latest proposal does not seem to augur well for the already tarnished image of the UPA. “The fast-expanding soft power of modern media came out loud and clear during the Anna Hazare movement. This power needs to be understood, appreciated and suitably harnessed,” opines B. Raman, Additional Secretary (retd), Cabinet Secretariat, and presently Director, Institute For Topical Studies, Chennai. Rather than learning the lessons on how soft media galvanised the youth, the government is indicating that it would like to regulate this very soft media. Critics feel that this is certainly not a move in favour of progress.

The catch here is that the apparent aggression by the government to jump into regulation is not actually based on the noble idea of making the institution of media, also dubbed as the fourth pillar of our democracy, more accountable. The timing of the move suggests that the government is angry with the wide coverage that the media has given to the now frequent apolitical agitations against the way this government has been functioning. In such a scenario, if the government is to start regulating news content, all news items related to public angst against the government and issues of corrupt government practices would be termed unsuitable. This would essentially mean that the press will have to recuse itself of its primary duties of providing true, fair and unbiased information to its readers or viewer that relates in particular to the government of the day. More than anything else, it is about the government’s consistent lack of vision and a sense of priorities. Irrespective of whose government is in power, media policy in India fluctuates between the state’s desire to control on one hand and its neglect of the key issues on the other.

Today, the entire world, including China where the media is totally state-controlled, is waking up to the soft power of media. India, however, is thinking of setting up a group to deal with the accountability and regulation of media. The government, instead of blaming the media for the public flak that it has received for its own misgivings, should focus on its own deeds that lead to such agitations. Perhaps getting more interactive and participative with the media through its leaders and spokespersons could work better. The question the government should be asking is how they can facilitate the growth of this sector, instead of looking at dictatorial ways and means to regulate it.


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