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good morning thoughts


So try to live like RIVER, Forget your PAST & Focus on your FUTURE……!!!”


“God is not the sole author if our destiny;

We are also the co-authors of our destiny;

If we do the best,….. He will do the rest!……!!!”

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understanding price appreciation in real estate

Understanding Price Appreciation in Real Estate

October 31, 2013

Real estate investors buy property when they know that the property will gain in capital appreciation – but it is not only property investors who are attracted by this phenomenon. There is also greater interest for buying property in Pune rather than for rental properties, since real estate appreciation allows them to increase their personal net worth. 

What causes property prices to rise in certain areas? This phenomenon – a key concept behind real estate investment – is called appreciation, which is nothing but the enhancement of a property’s market value over time. Real estate appreciation takes place because of various factors, including: The supply and demand dynamics of a particular location; Inflationary pressures; Home loan interest rates (cost of borrowing); Arrival of new real estate market drivers in a location; Population growth. 

Demand And Supply: When there is increasing demand for homes in a certain area, property prices go up if the amount of residential real estate projects is not catching up fast enough. In other words, self-use buyers are willing to pay more for a property because they find living in that location desirable. This demand brings in real estate investors, who buy up properties there to sell them at a profit when supply slows down again. 

This causes the property prices in that location to rise even further. The time for self-use buyers to make their purchase is before investor activity starts in earnest at locations with high appreciation potential. 

Inflation: Inflation is the result of an excessive amount of money in circulation, and this over-abundance of money causes its value to fall. When this happens, prices go up for a number of things – including the prices of land, construction materials, labour, legal building permits and number of other things. 

However, inflation alone cannot cause the property prices in an area to rise if the area itself has poor accessibility, lacks infrastructure or is facing an oversupply of real estate projects. Township properties in Pimpri Chinchwad are fully insulated from these negative aspects because of the, superior road networks, infrastructure that is miles ahead of that available within PMC limits, and strict development laws that prevent oversupply. 

Home Loan Rates: The behaviour of home loan interest rates also has a direct bearing on property appreciation. When home loan interest rates increase, the demand for property slows down because fewer buyers can afford to shell out the extra money required by the banks. By the same coin, a sufficient decrease in home loan interest rates increases affordability and boosts demand for properties. 

Real Estate Market Drivers: Market drivers can be defined as developments in an area that increase the value of living there. In the case of Pune, township properties are now known to encompass many or all of these factors, which can include:The establishment of a new workplace hub (such as an office complex); A shopping mall and/or entertainment complex; Zoning regulations that do not permit excessive construction projects, thereby increasing the overall ambience via more open spaces, greenery, etc. (The Pimpri Chinchwad area of Pune is a perfect example of controlled development via forward-looking zoning regulations); Transportation facilities that make the location more accessible via road, air or rail; Infrastructure projects that increase the quality of living in the area (such as dedicated water and electricity supply, public gardens, etc.); the proximity of schools, colleges and healthcare facilities that reduce travelling time to essential services. 

Population Growth: Similarly, the population growth in area such as PCMC naturally increases the demand for residential properties there, and this translates directly into appreciation in real estate rates. 

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Sachin Tendulkar announced his decision to retire from Test cricket after playing his landmark 200th match against the West Indies next month.

The 40-year-old Tendulkar, who has not been in the best of form in recent times, informed the Board of Control for Cricket in India about his decision to quit Test cricket after a glorious career, spanning 24 years.

Though the BCCI is yet announce the venues for the two Tests against the West Indies, his 200th Test is most likely to be played at his home ground in Mumbai from November 14. 

The Eden Gardens in Kolkata is also a contender for hosting that historic match. 

As the batting legend prepares to sign off, we take a look at his glorious career.

- Playing for his school Sharadashram against St. Xavier’s at the Azad Maidan in February, 1988, he was associated in the then world record unbroken stand of 664 runs with Vinod Kambli for the third-wicket. Both players remained unbeaten on 326 and 349 respectively.

- He scored a hundred (100*) for Mumbai against Gujarat at Mumbai in 1988-89 season on his first class debut, to then become the youngest to do so on debut in Indian first class cricket and the second youngest to score a hundred at the age of 15 years & 232 days. 

- He remains the only player to score century on debut in Ranji Trophy, Irani Trophy and Duleep Trophy. His scoring sequence were: 100 not out for Mumbai against Gujarat at Mumbai in 1988-89 in Ranji Trophy, 103 not out for Rest of India against Delhi at Delhi in 1989-90 in Irani Trophy and 159 for West Zone against East Zone at Guwahati in 1990-91 in Duleep Trophy.

Batting record:










Test cricket









One-Day Internationals









Twenty20 Internationals









Bowling record:









Test cricket








One-Day Internationals








Twenty20 Internationals








Born: April 24, 1973, Mumbai

Style: Right-handed batsman & right-arm medium/ off-break/ leg-break bowler

Test debut: v Pakistan, Karachi, November 15, 1989 (made 15)

ODI debut: v Pakistan, Gujranwala, December 18, 1989 (made 0)

T20I debut: v South Africa, Johannesburg, December 1, 2006 (made 10)

Posted in Cricket.


Use your Smile to change the World…

Don’t let the World change your Smile…!!

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“Honesty is very expensive gift.

Do not expect it from cheap people”

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Registration of societies in Maharashtra


FAQs on
Society Registration in Maharashtra

Posted: 06 Sep 2012 02:37 AM PDT

By Accommodation Times Bureau

Q 1. What is the
minimum number of promoters required to join the registration proposal?

A. 60% of the
flat purchasers/ promoters are required to join the registration proposal if
building is constructed by builder/developer.
90% promoters are required to join the registration proposal for society of
open plot type category.


Q 2. What is the
minimum number of promoters required to sign the registration proposal?

A. 60% of the
promoters who have joined the registration proposal are required to sign it.


Q 3. Whether
Co-operative Housing Society having less than 10 units can be registered?

A. Cooperative
Housing Society having less than 10 units can be registered subject to the
following conditions:

The built up area of each unit should not be more
than 700 sq.

There should not be balance F.S.I


Q 4. What is the
remedy available, if the builder does not register a Co-operative Housing Society?

A. Chief Promoter
of the proposed society shall submit a registration proposal of the
co-operative housing society to the concerned Registrar under the category of
non- co-operation of builder.

Registrar may
consider such a proposal for Registration on merit.


Q 5. What are the
conditions for registration of Cooperative Housing Society in private building?

A. Conditions for
registration of CHS in Private building Registering authority can register CHS
on merit if 90% of the tenants join the registration proposal.

authority can register CHS on merit and with previous approval of State
Government if 75% to 90% of the tenants join the registration proposal.
Proposal for registration will not be entertained if percentage of tenants is
below 75%

The Tenant
promoter joining the proposed CHS shall have to agree to contribute to the cost
of flats of non joining tenants.
In case tenants have created sub tenancy in terms of Rent Act, sub tenants and
not the tenants be allowed to join the proposed CHS.

Q 6. Whether the
Chief Promoters has got authority to withdraw the money deposited in the bank
in the name of proposed CHS?

A. The Chief
Promoter has got no power to withdraw such money.

registration of the Cooperative Housing Society, money can be withdrawn with
the permission of the Registrar.


Q 7. What is the
remedy available if the Registrar does not take any decision on registration
proposal within a period of 2 months?

A. Failure to
dispose of the registration proposal of a housing society within a period of
two months, the Registrar has to submit the said registration proposal to the
next higher authority within a period of 15 days from the date of expiry of two

On failure of
such higher authority to dispose of the said registration proposal within two
months from the date of receipt of the proposal to his office, the registration
proposal shall be deemed to be registered under the provision of the
Maharashtra Co-operative Societies Act 1960.


Q 8. What is the
remedy available if the registration proposal is rejected?

A. Such rejection
order can be challenged by filing appeal under section 152 of the M.C.S. Act
1960 before the Divisional Joint Registrar C.S. of the concerned Division.


Q 9. What are the
circumstances for de-registration of a Cooperative Housing Society? And under
which section?

A. If the society
is registered on the misrepresentation made by the applicants, or the work of
the society is completed or exhausted, or, the purpose for which the society
has been registered is not served, such societies can be de-registered under
the provision of Section 21-A of the M.C.S. Act 1960.


Q 10. Under what
circumstances registration of the CHS can be canceled?

A. Registrar can
cancel the registration of CHS under section 21 of the M.C.S. Act 1960. Under
the following circumstances:

If a CHS transfer the whole of its assets and
liabilities to another society or

Amalgamates with another society, or

Divides itself into two or more societies or,

Liquidation proceedings are terminated under
section 109.


Q 11. What are
the types of CHS?

A. Rules 10 of
the Maharashtra Co-operative Societies Rules, 1961 provides the following
classification of the CHS:

Tenants’ ownership Co-operative Housing Society.

Land is held on lease hold or free hold basis

Houses are owned or are to be owned by member.

Tenants Co-partnership Cooperative Housing

Both land and houses owned by society.

Houses are allotted to members.

Other Co-operative Housing Society.

Houses mortgages societies

Houses construction society.


Q 12. What fee is
to be paid to the Government for registration of a Cooperative Housing Society?

A. Proposed
society can made the payment towards government fee as applicable from time to
time. The present registration fee is:

Tenant Co-partnership /ownership CHS – Rs.

Other (General ) CHS – Rs. 2,500.00


Q 13. When at
least 20% of backward class members are required for registration of a
Cooperative Housing society?

A. This condition
is applicable for plot purchase type society under the following circumstances:

When society intends to borrow fund for
construction of building from State Government and/ or MHFC Limited.

If land grant authority insists for such


Q 14. Whether
promoters are required to submit their applications for membership to the Chief
Promoter before registration of Cooperative Housing Society?

A. Yes, all the
promoters should submit their application for membership to the Chief Promoter
before registration so s to enable him to undertake about receipt of
application for membership in the prescribed “Y” form to be submitted to the
Registering Authority at the time of Registration.


Q 15. What remedy
is a available if Chief Promoter does not deposit the share money collected
from promoters in the Bank?

A. Failure of
Chief Promoter in depositing share money collected from promoters of proposed
CHS amounts to an offense u/s 146 of M.C.S. Act 1960.

Chief promoter
can be prosecuted in the court of law with previous approval of Divisional
Joint Registrar of concerned Division u/s 148.


Q 16. What remedy
is available if any person collects share money or any other sum by
misrepresentation to the prospective members in the name of the society to be

A. It will amount
to an offense u/s 146 of MCS Act 1960.

Such person can
be prosecuted in the court of law with provision approval of DJR of concerned
Division u/s 148.



Posted in Uncategorized.

naye rajya

बच्चा हर कोई पैदा कर देता है! कोई बहुत बड़ी बात नहीं!
लालू ने 9 कर रखे है! 
बच्चे को अच्छी परवरिश देना जाएदा महत्वपूर्ण होता है!!
आप राज्य की मांग करके राज्य बनवा सकते हो लेकिन क्या कागज के एक छोटे से टुकड़े में लिख कर दे सकते हो की वोह की राज्य “अपराध मुक्त”, “भ्रस्टाचार-मुक्त” होगा??
क्या उखाड़ा उत्तरप्रदेश से “उतराखंड” को बना के??
“झाडखंड” आज भी नक्सली आतंक से पीड़ित है!

वोट देना जाएदा महतवपूर्ण है! सही लोगो को वोट देंगे तोह कितना भी बड़ा राज्य हो वोह सुरक्षित होगा और संपन्न!

Posted in Uncategorized.


Mumbai looks as if it is going to retain the costliest city status for years. The real estate city is buoyant. The city area is likely to witness as appreciation of 5-8% while the suburbs can expect a rise of 7-11%. Influx into Mumbai ready steady. Together with growing internal population, demand will rise to match supply. While recently the Supreme Court has allowed buyers of mill lands to get their development plans approved, it has restrained them from constructing pending the litigation on mill land usage. One therefore doesn’t foresee any oversupply of inventory in the next two years atleast prices would remain firm. On the commercial property front, Nariman Point is making a come back. Prices there surge more than 80% to reach Rs 15,000 a sq.ft. in 2006, it may rise by 20%.
There is limited supply of premium category flats catering to the High Networth Individual. Prices in this segment could move up 20-25%. Overall, increasing land prices seems to be the determining factor in the upward spiral of rates. there is neither slump nor an oversupply situation waiting to happen in 2006 and so it is highly unlikely that the projected appreciation would not take place. Fortunately, speculative demand is not high enough to push prices further. If the mill land case goes against the developers who bought the land, prices could shoot up by another 7%.
Another driver of prices is the switch over of the middle-class from the leasing option to the purchase option. More and more buyers are coming forward with open minds and purchasing what ever suits them or fits them best. Once they find the a property of their choice, they are willing to pay a premium on it if required. Mumbai is more prone to this because of huge commuting distances in the North-South corridor.
Central Business Districts
Mumbai’s CDB Nariman Point lies at one end of the Mumbai. Nariman Point is also facing the issues plaguing the CDBs nowadays. Market conditions have already forced Mumbai to look at the options outside south Mumbai as business areas. Navi Mumbai was one option, which failed to take off, due to lack of support from the state government. But the Bandra-Kurla complex has succeeded in attracting some major financial institutions and companies. this is mainly because of lower property rates and modern quality constructions with large floor spaces. Several companies have closed down their offices all over Mumbai and consolidated under one roof in the Bandra-Kurla complex. Prime examples of this are ICICI, IL&FS and Citibank. This business complex has come up very well, but until more companies move there soon,. The other supporting infrastructure items like restaurants and public transport will not develop to the same extent as a commercial complex. Nariman Point is certainly feeling the pressure, with its capital and rental rates dropping substantially, over the past couple of years. But this exodus has been limited from the south Mumbai. Another commercial area, which has been developing slowly, is the mill area in Worli and Lower Parel, but this mainly in retail sector.
Mumbai is fast being recognised across the world as an IT and ITES hub. High literacy levels, easy availability of intellectual talent at 50-60% lower cost as compared to other international cities, better productivity and a time zone difference of 8-10 hours that makes it possible for offshore corporates to respond quickly since processing is done through Mumbai during the night, are some factors that have made Mumbai the most favoured destination to China, Singapore, Philippines , Ireland and UK.
The S.T.P.I (Software technology parks India) is encouraging more and more IT parks. These buildings are specifically customised for IT and ITES corporate. Scalability, large floor plates, large columns free structures, ample space for large number of work stations, excellent infrastructure are the key attributes that make the IT park and attractive propositions.
Types of office spaces available:
Office spaces available in the city range from 150 sq.ft to 32000 sq.ft. in a single floor plate, larger spaces are available on combined floor plates. Offices spaces are generally categorized as:
Unfurnished or bare shell offices
Warm shell offices
Fully furnished of plug and play office spaces
Location of major Commercial Hubs in the City:
Central business districts in Mumbai are located at Nariman Point, Fort, Ballard estate, Worli, Lower Parel, Bandra-Kurla complex, Santacruz East (Kalina), Andheri East, Malad and Powai.
Apart from these locations the spread of commercial activity is dominant all over the city of Mumbai. The fast growing commercial areas are now shifting to the suburbs Like Bandra, Andheri, Malad, Powai and the likes for simple reason being the proximity to residential location of the manpower and availability of the desired floor space at the cheaper and affordable prices with a lot of options.
The other for the shift in the trend of commercial location is the saturation of the companies in the existing CDBs. This saturation has led to an overload on the infrastructure provisions like power, water, etc. since the local government is unable to cope to the heavy demand a reverse trend has been observed in the existing commercial markets with established companies moving towards the suburbs for a much smoother business development.
Nature of companies / MNCs In CDBs:
Banking, Financial and FIIs, Nariman Point, Fort
Companies, shipping, law Ballard Estate, Worli, Lower Parel
Firms, Print Media Companies
Infrastructure, banking, Worli, Lower Parel, Bandra-Kurla
Insurance, Media, It, Software, complex Andheri, Powai
Manufacturing companies, etc.
Data centres, call centres, back Lower Parel, Bandra-Kurla complex,
Office operations, Trading Andheri, Powai, Malad.
Companies, etc.

Property Rates of Prime Commercial districts in Mumbai

Location Lease Rates**/SFT* Purchase Rates**/SFT

Cuffe Parade 60-100 8000-15000
Nariman Point 80-165 8000-15000
Ballard Estate 80-125 7000-12000
Fort 80-125 7000-12000
Tardeo/Mumbai Central 70-100 7000-10000
Worli 60-110 5500-10000
Prabhadevi 60-100 5500-9500
Lower Parel 50-85 4800-9000
Bandra Kurla Complex 75-125 6000-12000
Kalina 30-75 4000-6500
Andheri(E) 15-75 2000-5000
Andheri(W) 25-60 2500-5500
Powai 30-55 4000-5500
Goregaon 30-50 3800-5200
Malad 20-50 2000-5000
Navi Mumbai 10-50 1000-2800

*Deposits Equivalent to 6 to 12 months are normally charged.
*Business centres also plug and play offices in most of the above districts for Short/ Long Term.
**All rates are in Indian Rupees

Property Monitor-Chembur
Chembur, the central suburb of Mumbai, is one of the greenest suburbs. It is just 15 km away from Churchgate. Chembur is a residential and commercial area. Like the other suburbs of Mumbai, Chembur is growing at a fast pace.
Chembur has good infrastructure facilities. It has easy access from all the suburbs of Mumbai. Chembur is at key location, connecting Navi Mumbai and old Mumbai. Chembur has a variety of options for shopping, with Shoppers’ Stop and many other shopping centers. New multiplexes and shopping centers are also on the anvil. In education and entertainment, Chembur is on par with other suburbs. Various schools and colleges, and cinema halls including Ashish, Basant, Nataraj, Vijay and New Vijay are present
The well known Tata Institute of Social Science is here. Chembur is famous for its Golf Club and R K Studio. Gardens like Sadhu garden, Dr. Ambedkar garden and Diamond Garden are adding to the beauty of Chembur. Although this suburb is growing rapidly in both residential and commercial sectors, it is not overpopulated and can retain its peace and green atmosphere.
Chembur is an ideal location for residential purpose. Chembur has number of Bungalows surrounded by trees. The reasonable property rates are attracting buyers in the residential sector. On other hand, builders have also come up with projects having all modern amenities. The residential property rates in Chembur are in the range of Rs 2000 to Rs 3500 sq.ft, while rental rates are in the range of Rs 8 to Rs 25 sq.ft/pm. Reputed builders like Runwal group, Prime realty, Sabari builder and Kalpataru builders, have their residential projects here.
The prospectus of commercial markets are also bright. Many commercial projects are in progress. Shoppers Stop has opened a branch here, and a multiplex is under development. the commercial property rates are also reasonable, as compared to other suburbs of Mumbai. It ranges between Rs 2500 and Rs 5000 sq.ft, depending upon the exact location and amenities, while the rental rates are in the range of Rs 15 to Rs 65 sq.ft/pm.
Ghatkopar is a central suburb of Mumbai. Ghatkopar, with a history of more than a century, is one of the oldest settlements in Greater Mumbai. Its strategic location, which facilities easy access to the key areas of Mumbai, is the primary reason for its growth in residential and commercial sectors. In the recent past, it has been seeing a spurt in growth, with more developmental activities coming up in Navi Mumbai.
Ghatkopar has good connectivity, educational institutions, modern hospitals and entertainment facilities. Odeon in Ghatkopar (E), Uday and Shreyas in Ghatkopar (W) are some of the theatres here. Besides, it has good shopping facilities, with the famous retail shop, Shoppers Stop and many small shopping centres such as Jayant Villa, Shree Krupa, etc. Ghatkopar (E) is becoming more popular as compared to Ghatkopar (W). the main reason appears to be the presence of slums and industrial units in Ghatkopar (W).
The residential property rates in Ghatkopar (E) and (W) are in the average range of Rs 3000 to Rs 5000 per sq.ft., while rental vary between Rs 10 and Rs 30 per sq.ft pm. The rates differ depending upon amenities, quality of construction, etc. since Ghatkopar has easy access to commercial and industrial areas, the rates are little higher, when compared to the nearby suburbs. Upcoming residential projects in Ghatkopar include Everest gardens & Nand Ashish by Everest group, Mahindra Park by Gesco Corporation. Godrej Grenville Park is being developed by Godrej properties on a 50000 sq.ft area.
Fast and rapid development of residential market in an area naturally boosts commercial activities. Ghatkopar is no exception to this rule. Ghatkopar is an ideal place for commercial establishments. The property are in the rates are in the range of Rs 4500 to Rs 7000 sq.ft. the retail chain shoppers is present here. Bhaveshwar Plaza, an office/shopping complex is promoted on an area of 40000 sq.ft. VHP House is developed by VHP builder on 7000 sq.ft, exclusively for office space. Krushal commercial center, spread over 100000 sq.ft. area, has been already completed.
Juhu, in the Northern suburbs, is a cool and posh area and has some of the prime real estates of Mumbai. Besides, Juhu is also famous as a picnic spot. Juhu Beach is the most popular beach of Mumbai and attracts all the Mumbaikars and other tourists. The Iscon temple, renown for the Hare Rama Hare Krishna movement and the evening aarti is located in Juhu. Juhu has excellent transportation and communication facilities. All the suburbs of Mumbai can be easily accessed from here both by bus and train. Well know industrialist Jamshetji Tata had purchased a plot here in 1890 and built a bungalow. Juhu is a posh residential locality of Mumbai with many bungalows of film personalities. The southern end of Juhu is full of luxurious hotels and apartments. many reputed schools and colleges are located here. Some reputed hospitals like Nanavati hospital and N.R Cooper hospital are also present here.
As a commercial area, Juhu has also its separate identity. Juhu has a number of five star, four star and three star hotels. These include Sun N Sand, Holiday Inn, Hotel Sea Princess, The Emeralde Hotel, Hotel Ajanta, Centaur Juhu Beach and Citizen. J W Marriott’s, a seven star Hotel is also located here. In addition to these hotels, restaurants / coffee bars like Barista, Café Coffee Day, Mahesh Lunch Home, Roti and Dosa Diner are present here. Another major advantage of Juhu is the presence of Sahar International and Santacruz Airport.
Juhu is considered one of the posh residential areas of Mumbai. Cine stars have preferred Juhu for their residential place. Hence the property rates are high as compared to other suburbs. The residential property rates in Juhu are in the average range of Rs 6000 to Rs 8500 per sq.ft. while the rental rates are in the range of Rs 15 to Rs 55 per sq.ft pm. Reputed builders like Mittal have Megh apartments, Mittal paradise and Mittal Ocean view while Rizvi have their projects with super duplex flats and modern amenities.
As a commercial area, Juhu is more known as a picnic spot due to the beach. There are several excellent hotels here along with all the facilities and shopping arcades. Supreme shopping center and body basic beach haven shopping arcade are some of the names present. The commercial property rates are less than the residential property rates here. The commercial property rates are in the range of Rs 4500 to Rs 7000 per sq.ft. while the rental rates are in the range of Rs 50 to Rs 80 sq.ft pm.
Kalyan is a satellite town of Mumbai, lying 54 km to the south. Kalyan is characterised by hills and green areas. Kalyan comes under the governance of Kalyan Dombivili Municipal Corporation.
Kalyan has been developing fast in both residential and commercial sectors. Kalyan owes its growth to its proximity to Mumbai and location at the junction of south, and east bound railway lines. Another reason for Kalyan’s growth is the industrial areas such as Dombivili, Murbad, Badlapur and Tarapur. Also a number of car spare part manufacturing factories and rice mills are here. Kalyan is mostly populated by middle class people.
Kalyan has quality infrastructure facilities. Local train running on Mumbai-Karjat and Mumbai-Kasara tracks pass through Kalyan. Educational facilities are very good. Many major convent schools are here.
KDMC ( Kalyan Dombivili Municipal Corporation) is doing a lot to improve the infrastructure. KDMC has computerized its operations and created citizen facilitation centres for providing better services to the public. It is one of the few IT enabled municipal corporations in India.
People, mainly from Dadar, Girgaon and near by suburbs are shifting to Kalyan and Dombivili. Although Kalyan is more known as residential area, many commercial projects are also coming up. Mumbai builders are concentrating on Kalyan and developing several residential and commercial projects. Plenty of land is available here, since factories in these area have been shifted to other industrial areas.
Kalyan is ideal residential area for middle class people. The residential property rates are in the range of Rs 900 to Rs 1200 sq.ft, while rental rates are in the range of Rs 2.5 to Rs 6 per sq.ft pm, approximately. These affordable prices, educational and medical facilities are attracting to buyers to stay here. With all the advantages, Kalyan is also ahead in entertainment. More than 12 cinema halls and drama theatres are here. Residential projects like Godrej Hills by Godrej, Lok Surbhi, Lok Udyan, Lok Vatika by Lok Group, Yogi Dham by Ajmera are in the progress in Kalyan. Also Deshmukh Brothers, D.S.K Group, Mantri Group, Ravi Constructions are also involved in developmental activities.
The commercial market in Kalyan is also picking up. The areas adjacent to the roads near Kalyan railway station are the important commercial area. Mahavir Shopping complex, Jojwala complex and Sreedevi complex are some of the famous shopping centres. Besides, several small and medium size shops and hotels are also present. The commercial property rates are in the range of Rs 1500 to Rs 3500 per sq.ft., whereas the rental rates are in the range of Rs 12 to Rs 35 per sq.ft pm.
It is a boom time for real estate market in the suburbs of Mumbai. In the western suburbs of Mumbai, Malad has been seeing a lot of growth in both residential and commercial sectors, thanks to the increasing demand from Mumbaikars.
Malad is blessed with many shopping centres, good medical facilities, and quality educational institutes. Besides, it has proper transportation and communication facilities. Malad has good picnic spots and is famous for its beaches (Marve/Aksa/Erangal). A few well-known restaurants & hotels, e.g. Land mark Hotel, The Resort and Retreat, are present here. Malad has good entertainment facilities. Another advantage of Malad is its proximity to suburbs like Goregaon and Kandivili. All these factors have contributed to the growth of real estate in Malad.
The residential market in Malad has seen a steady growth over the years. The affordable prices and the facilities available here attracting buyers. The residential property rates for Malad (E) & (W) are in the range of Rs 1800 to 2200 per sq.ft. approximately. The upcoming residential projects include Palm Court by K Raheja construction, Rustomjee Adarsh Regal & Rustomjee Riviera by Keystone Group, Saraswati by D.S. Kulkarni, Serenity Heights by K Raheja Corp. and Raj Manor. The following table gives the property rates for Malad and its neighbourhood.
Residential Property Rates:
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/]
Min Max Min Max
Malad [e] 1800 2200 5 18
Malad [w] 1800 2200 5 20
Kandivili [e] 1800 2500 5 18
Kandivili [w] 1800 2500 5 20
Goregaon [e] 1900 2700 5 22
Goregaon [w] 1900 3000 5 25

Malad’s commercial market is also looking up. Most of the reputed companies in IT sector and IT enabled sectors are shifting to Malad, mainly due to attractive property rates, as compared to other suburbs. In addition many shopping centres are also coming up to cater to the needs of growing population. Malad has many shopping centres, e.g. Natraj shopping center, Shivam shopping, Vaishali shopping center, Malad shopping center on S.V. Road, Shantinath center near New Era Theatre. Vasant Plaza has come up recently. A major, high class shopping center by Dheeraj builder is to be opened up soon on a 75000 sq.ft area. One more commercial project by K Raheja builder, Mindspace with 350000 sq.ft, is expected to be complete in 2003. Intelenet Global Services Ltd is promoting their second centre, which covers an area of 200000 sq.ft.
Commercial Property Rates:
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/]
Min Max Min Max
Malad [e] 3000 5000 15 60
Malad [w] 3000 5000 15 60
Kandivili [e] 2500 4000 15 70
Kandivili [w] 3000 4000 15 50
Goregaon [e] 2500 4000 20 50
Goregaon [w] 2500 4000 20 50

Mulund is a green, well planned suburb of Mumbai, located close to the boundary of Thane and Navi Mumbai. Mulund has seen synchronized growth in both residential and commercial sectors. Mulund, once preferred mainly by the middle class, now offers prime residential and commercial projects. A number of huge residential and commercial projects are coming up here. Despite its rapid growth in residential and commercial sectors, Mulund is not over populated, and can retain its peaceful, green atmosphere, thanks to its grid pattern layout by German town planners the most developed area is LBS Marg to Mulund-Goregaon link road. A major advantages are the presence of shopping malls and super markets, medical facility, entertainment facilities, and sports facilities such as badminton and tennis courts, swimming pool and gymnasium. Several theatres including Kalidas Natya Mandir and Jai Ganesh and Mehul Cinema halls are present here. Mulund has also a number of reputed schools and colleges. One more advantage of Mulund is the residential belt, which is within 30 minutes drive from Mumbai.
Mulund is emerging rapidly as the best residential area. A host of large and small project is in progress and many are ready for possession. The areas occupied by some of the closed down industries have converted into residential areas. The residential property rates are in the average range of Rs 1500 to Rs 2500 per sq.ft., depending upon the exact location, amenities, reputation of the builder, parking space, etc., while rental rates are in the range of Rs 2.5 to Rs 10 per . Many prime projects, including Nirmal Lifestyle and Takshashila by Nirmal Group, Indraprasth by Karia Builders and Marathon Galaxy by Marathon Group are coming up.
With the rapid growth in residential sector, the commercial market is also picking up. Many shopping malls and shopping centres are under construction. Nirmal group is promoting a huge shopping mall on 500000 sq.ft area, while Runwal Group is also coming up with another shopping mall on a 300000 sq.ft. area on LBS road. Another commercial-cum-super market (Marathon Cosmos and Marathon Max) is under construction on a 200000 sq.ft area by Marathon Group. The commercial property rates are in the average range of Rs 2000 to Rs 3500 sq.ft., while rental rates are in the average range of Rs 20 to 45 per
Sion, the strategically located suburb of Central Mumbai, has been witnessing a steady growth in residential and commercial real estate markets. Sion West is considered a good residential area, while Sion Circle is principally a commercial area. Sion’s biggest advantage is its centrally located railway stations, viz., Sion Station, King Circle and Guru Tej Bahadur Nagar Station. This offers easy access to Sion from allover Mumbai. An additional advantage of Sion is Flyover, which has helped reduce the traffic problem and also the pollution levels. One more plus point of Sion is the excellent service offered by the BEST. In addition, Sion also has a benefit of modern hospitals, educational institutes and shopping complexes and entertainment facilities. Sion Talao (Sion Lake) adds to the beauty of Sion. Sion Circle has all the major and retail shops. Other markets are also very close to this Sion Circle. Well known Lokmanya Tilak Municipal General Hospital (Sion Hospital) is here. Sion Fort is a great place for picnic.
The rapid development of this area has attracted the builders. Sion is one of the best emerging places for both residential and commercial sectors. All the major banks like HSBC and corporation bank have opened ATM centres here, while the few banks like HDFC, are planning to open ATMs in Sion. Barista has opened their branch here. Dominos Pizzas is present. In educational sector also, Sion is a head with colleges of South Indian Education Society as well as Guru Nanak Vidyak Society. A number of reputed schools are located here. While a multiplex cinema, Cine Planet 1 and Cine Planet 2 are offering entertainment. In addition, Reliance Webstore is opening soon in Sion Circle. All these facilities and advantages are attracting buyers and builders.
Sion east is mainly a residential area. The property rates are affordable here. Kalpataru builder is coming up with an excellent project there. The residential property rates in Sion are in the range of Rs 2800 to Rs 4000 per sq.ft, depending upon exact location, amenities and reputation of the builder. While the residential rental rates are in the range of Rs 8 to Rs 30
Sion Circle, the major commercial area of sector has seen tremendous development in last few years. The commercial rates in Sion are in the range of Rs 3500 to Rs 5200 sq.ft depending upon exact location and rental rates are in the range of Rs 20 to Rs 65
Vasai is town located on the outskirts of Mumbai, in Thane district. Vasai lies about 50 km away from Mumbai and 20 km from Borivali. As a famous picnic spot, Vasai attracts people from Mumbai and its neighbourhood. A number of historical temples are also present in the vicinity of Vasai. Vasai has green surroundings and many beautiful sea beaches. The famous Vasai fort, built by the Portuguese, is another tourist attraction here. Vasai is also famous for bananas. In addition, Vasai is a major supplier of food products, green vegetables, fruits fish and milk to Mumbai.
The fast expansion of Mumbai urban conglomerate has seen Vasai grow rapidly. Vasai’s growth potential is attracting Mumbai builders and businessmen. Another most significant advantage of Vasai is the industrial belt in Vasai [e]. Many large and medium industries are operating here. Builders like Evershine builder, K Raheja Corp. . KT Builders, builders Mittal builders and a few others are engaged in development facilities such as shopping centres. Vasai is also ahead in education and entertainment. Scores of reputed schools and colleges are here.
Vasai [w] is more known as residential area. While Vasai [e] is a commercial area. Vasai [w] is greener and busy with construction activities. The residential property rates are in the range of Rs 950 to Rs 1200 sq.ft. Vasai [w], while in Vasai [e] is Rs 800 to Rs 1000 Approximately. The residental rental property rates are in the range of Rs 2 to Rs 8 The projects like Vasant Nagari by K Raheja, Evershine City, Evershine Estate by Evershine Builders are some of the projects in Vasai. Industrial area in Vasai [e] and easy access to Mumbai have contributed to Vasai’s Growth.
The activities are also booming here. Easy access, availability of land and the low property rates support the rapid development in commercial sector. The industrial belt in Vasai [e] and KT industrial estate developed by KT builders also encouraging the growth. The builders such as Evershine & KT builders are providing commercial facilities like shopping centers in their residential projects. Mittal builders also has provided such facilities. Vimal shopping centers and Vardhaman shopping centers are the busy shopping centers in this area. The commercial property rates are in the range of Rs 1500 to Rs 2500 sq.ft., while the rental rates are in the range of Rs 10 to Rs 35
Worli is the second largest commercial area in South Mumbai. Worli is also a posh residential area. Worli is emerging an attractive destination in South Mumbai and getting prominence over Nariman Point. Worli has several key institutions; for example, National Stock Exchange (NSE) and Nehru Science Centre. It also has a famous Worli Dairy. Worli has good connectivity. All business areas of Mumbai can be easily accessed from Worli. Big shopping centers such as Cross Road, West End and Heera panna are very close to Worli suburb. A well known Hypermarket by S.Kumar’s is in Worli on a 50000 sq.ft area. Another advantage of Worli is the sea face, which is an ideal spot for outings in the evenings. Haji Ali and Girgaum Chowpatty are also very close to Worli. Poddar hospital, reputed medical institution is in Worli.
The residential property rates are in the average range of Rs 4500 to Rs 11000 per sq.ft., while rental rates, Rs 20 to Rs 50 per, depending upon exact location, amenities, parking space, etc. Sterling Sea Face by Shapoorji Pallonji & Co. Ltd., DSK Durgamata Towers by DSK group, Marathon Concord & Marathon heights by Marathon group are some of the major upcoming residential projects.
Worli has seen a number of transactions in last few months. The following are some of the transactions.
A high commission leased a large four-bedroom apartment, measuring approximately 3000 sq.ft. on Pochkanwala Road for an effective rent of Rs 300000 per pm.
Apartments of 2566 sq.ft and 4011 sq.ft area in Godrej Bay View, were sold for Rs 16000 per sq.ft and Rs 18500 per sq.ft, respectively.
The commercial market in Worli is looking bright. According to a survey conducted the market is very active in Worli and Prabhadevi. Taking the advantage of comparatively low rental rates, a large number of corporates are moving to Worli. The commercial property rates in Worli are in the range of Rs 7000 to Rs 11000 per sq.ft., while the rental rates, Rs 50 to Rs 90 per Hyundai has taken space in Siemens building. Mercedes Benz has opened a showroom in Worli. Landmarc Citi, a retail shop by S.Kumar’s, is coming up on 200000 sq.ft. area and is expected to completed in the end of 2003.
IDBI has taken up a 45000 sq.ft space at Victoria Mills, Worli.
HSBC has purchased approximately 59000 sq.ft office space in Worli from Glaxo.
Wyeth Lederle leased an office space measuring 26000 sq.ft in an A-grade commercial building.
Borivali lies between Kandivali, a well developed western suburb, and Dahisar, a small, growing suburb. Borivali has been bustling with residential and commercial activities in recent past. It has the well known Sanjay Gandhi Park or Borivali National Park at Borivali, which attracts people from all over Mumbai. The advantages of Borivali includes comparatively lower property rates. Hence it attracts lot of people. The residential complexes at Charkop and Lokhandwala projects have contributed to the growth of the commercial market in Borivali. Borivali has two big shopping malls, while one more is under construction.
Residential Market:
The residential property market in Borivali is developing rapidly. The property rates are here are reasonable as compared to the other suburbs. All the reputed builders in Mumbai have their projects in progress or in ready possession in Borivali. The residential property rates are in the range of Rs 2300 to Rs 3000 per sq.ft. for Borivali [e], while for Borivali [w] they lie between Rs 2500 to Rs 3500 per sq.ft. (approx.). On other side the rental rates are in the average range of Rs 5 to Rs 25 per sq.ft. per month for both Borivali East and West.
Residential Projects:
Raj Valley, Raj Umang 2, Raj Sunflower, Raj Sarovar, Raj Sagar, Raj Heritage, Raj Anmol and Raj Anand are the major projects coming in Borivali East and West. These projects have 8 to 13 floors with all the modern amenities.
K.Raheja constructions also have big projects like Raheja Estate and Raheja Green in Borivali East. Raheja Estate is a 14-storey building with 2BHK flats. While Raheja Green project has 20 floors with 1 & 2 BHK flats.
The commercial market in Borivali is also looking up thanks to the growth in residential market. Indraprastha and A to Z shopping malls are located in Borivali. One more shopping mall is also under construction. The commercial rates in Borivali (e) are in the range of Rs 3000 to Rs 4500 sq.ft., while at Borivali (w) they are in the range of Rs 3500 to Rs 5000 per sq.ft. The rental rates are in the range of Rs 15 to Rs 70 per sq.ft. per month, depending upon the exact location of property and other factors.
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/sq.ft pm]
Min Max Min Max
Borivali [e] 3000 4500 15 50
Borivali [w] 3500 5000 15 70
Dahisar 2200 3500 15 45
Kandivali [e] 2500 4000 20 50
Kandivali [w] 3000 4500 20 60
Commercial Projects/Transactions:
Gautier, the retail of French designer furniture chain, has opened up its outlet Borivali on a 4000 sq.ft area. It is one of its 20 outlets all over India.
Industrial Estate project is coming in Borivali(e).
Powai has emerged as a new hub of construction activities in the suburbs of Central Mumbai. Powai has plenty of greenery and has a famous lake. Powai is about 20 miles south of Mumbai city. The location of Powai is its major advantage. All the commercial areas such as Andheri, Bandra-Kurla complex, Maharashtra Industrial Development Corporation Complex, New Mumbai and Santacruz Electronic and export promotion zone are very close to Powai. It also has the famous Indian Institute of Technology. Powai is deal for both residential as well as commercial purposes.
Many reputed builders are developing residential and commercial complexes with excellent amenities and facilities. Hiranandani and K.Raheja are providing not only state of the art amenities, but also at affordable rates. several MNCs, e.g. Colgate, Bayer and FedEx, with few other well known software companies have moved in. a few companies have also shifted their offices from Nariman Point to Powai.
Powai is like other best suburbs, is seeing the arrival of a few multiplexes. Hiranandani Constructions are coming up with a huge multiplex, which will include commercial offices, a family entertainment center, a shopping complex, restaurants, banks, etc. transportation facility is excellent at Powai. Flyovers are also coming up in Powai. Definitely, this will be a plus point to attract more buyers in the residential sector.
The residential market in Powai has seen massive changes in the last few years. A host of huge projects are ready for possession, while a few others are under construction. The residential property rates in Powai are in the range of Rs 2500 to Rs 3500 per sq.ft. depending upon amenities, exact location and other facilities, while rental rates vary between Rs 20 to Rs 35 per sq.ft. pm.
The commercial market here is also growing very rapidly. Reputed builders like Hiranandani, K.Raheja are coming up with different schemes, while few multiplexes are in the pipeline. The commercial property rates are in the range of Rs 3000 to Ts 4000 per sq.ft, whereas the rental rates are in the range of Rs 35 to Rs 50 per sq.ft pm.
Vashi, located at a comfortable location in Navi Mumbai, is just 45 minutes away from Mumbai. Vashi with its multifunctional nature has emerged as an ideal residential-cum-commercial destination in Navi Mumbai. It is well planned and has all the modern facilities and infrastructure, which attract businessmen and individuals. Beautiful green areas and lot of open space are the biggest advantages of Vashi. Several software companies and large and medium companies have already moved in here. Reputed builders have chosen Vashi as their preferred destination. A major advantage of Vashi in terms of residential needs, is the reputed schools and colleges. Excellent infrastructure with good transportation facility is the other major plus point.
Vashi station complex, built on a 7,57,289 sq.ft area, at the entrance of Vashi node is a top class railway station. The complex can be easily accessed from Mumbai – Pune highway. The complex has office premises covering an area of 5,91,800 sq.ft, while the shopping arcade is on a 1,63,552 sq.ft area. The Sprawling Arcade is an excellent shopping center at Vashi. This arcade has open restaurants, kids center banks, etc. a huge Millennium Tower by Shirke Group is located at sector 9. The software park, called international Infotech Park lies close to the Mumbai-Pune highway. Mastek, Datamatics, and Aptech are the few of the software companies that have taken offices in Vashi and Sanpada.
With all these facilities, Vashi is also a head in other services like hospitals, entertainment, etc. reputed hospitals like NMMC hospital, New Bombay hospitals are providing medical facilities here.
Vashi has emerged as the best residential option in Navi Mumbai. Vashi is pollution free and the rates are affordable as compared to Mumbai. In addition, the excellent infrastructure here is attracting a lot of people. Reputed builders like Blacksmith developer, Kukreja construction group and National Builder Nishant have various projects in Vashi, while many constructions are in the pipeline. The residential property rates in Vashi are in the range of Rs 1500 to Rs 2500 sq.ft, while rental rates are in the range of Rs 3 to Rs 15 sq.ft pm.
The commercial market in Vashi is also becoming. Several companies are shifting to Vashi from various locations while a number of commercial complexes are already present, more commercial projects are coming up. In the commercial sector also. All the reputed builders are involved in many projects. The commercial rates are in the range of Rs 15 to Rs 60 sq.ft pm.
Goregaon, known as Land of Tabelas, is located between the well developed suburbs of Andheri and Borivali. Goregaon is witnessing a boom in both residential as well as commercial developments. Goregaon enjoys the distinction of being the greenest suburbs of Mumbai, which is one of the reasons for its fast development. Several residential and commercial projects have come up in Goregaon-Borivali belt within the last two years. Due to its proximity to Bandra-Kurla complex and the low property rates as compared to Andheri and Borivali, residential demands have always been high in Goregaon.
Goregaon is also one of the most developed industrial areas in Mumbai with many small, medium and large-scale industries in different segments like steel, engineering goods and plastic.
Goregaon is growing very rapidly as a residential area, especially the Goregaon-Borivali belt. Several residential projects by builders like Evershine Builder, Sales Gesco Corporation and Conwood Group are coming up. Other important facilities like retail markets, schools and colleges, reputed hospitals and restaurants are attracting the middle class segment. On the other hand, builders are also providing quality 2BHK apartments with essential amenities at affordable rates.
Residential Property Rates:
Locality Selling Rates [Rs /sq.ft] Rental Rates [Rs /sq.ft]
Min Max Min Max
Goregaon [e] 1800 2700 10 25
Goregaon [w] 1800 3000 12 25

New Projects:
Evershine Aangan, an 8-storey building, is coming up in Goregaon [w]. it is expected to be reay for possession by August 2003. The project, developed by Evershine Builder, has 2/3 BHK flats with modern amenities.
Vrindavan by Conwood Group of Companies is coming up in Goregaon [e]. it has 8 floors with 2 BHK flats and modern amenities.
Greater Eastern link by sales, Gesco Corporation Ltd., is located in Goregaon [w]. this is also an 8 storey building with 2 BHK flats and other amenities.
Due to fast developing residential areas, the commercial demand is also very high in Goregaon. The shopping malls like City Center & Washington Plaza are located in Goregaon [w]. A shopping mall, Dynamix SHAGUN, is coming up in Goregaon.
Commercial Property Rates:
Locality Selling Rates [Rs /sq.ft] Rental Rates [Rs /]
Min Max Min Max
Goregaon [e] 2500 3500 20 50
Goregaon [w] 2500 3500 20 50

New Commercial Projects:
Shagun shopping (Dynamix) offers 62000 sq.ft for retail market in Goregaon and is expected to be completed by December 2002.
Dhreej Consultancy is coming up in Malad on 72000 sq.ft & is expected to be complete in December 2002.
Mindspace by K.Raheja is another retail shopping complex. It is expected to be complete by 2003. It offers 3,50,000 sq.ft in Malad.
Kandivali, the western suburbs of Mumbai, has seen tremendous growth in residential sector in the past few years. Most of the real estate growth here has taken place to the east of the railway tracks. One of the biggest plus points of Kandivali is that it has adequate infrastructure facilities. Also exist here are facilities for shopping, entertainment, education and so on. Another reason for the fast development in Kandivali east is ample land availability.
In Sharp contrast, the construction activities in Kandivali West have been at a relatively slower rate, with a few projects coming up at scattered locations.
Thakur village locality adjacent to the Western Express Highway is becoming a preferred destination. This area has witnessed the maximum construction activities in recent times with over 1.5 to 1.6 million square feet of developed properties are likely to come into the market by the end of 2002. Experts are of the opinion that this the best time to book a flat at the stretch between S.V. road and the link road.
The commercial sector is also picking up due to the effect of fast residential development. a multiplex is coming in Thakur village near Challenge tower.
Rental Rates [Rs/sq.ft pm]
Locality Min Max
Kandivali [e] 4 16
Kandivali [w] 8 12
Malad 10 18
Dahisar 3 10
Thakur Village 2.5 8
RNA builder launched RNA Millennium Township in October 2001 in Kandivali [w]. project is spread over 20 Lac sq.ft of land, with 4000 flats of 1 & 2 BHK with different amenities.
Raj Residency 2, by Rajesh Builder, is coming up in Mahavir Nagar.
Trishul Tower by Trishul Group at Asha Nagar, Pancheel Enclave by Conwood Pvt. Ltd., Vasant Aradhana by Seth Group, Gorav Geet by Ravi Developers, Pradtik garden by J.N.J. group and RNA Royal by R.N.A builders by are some of the projects coming up in Dhanukarwadi and Charkop.
Rental Rates [Rs /sq.ft pm]
Locality Min Max
Kandivali [e] 5 25
Kandivali [w] 15 50
Malad 10 45
Dahisar 3 25
Thakur Village 10 20
Fulford India has taken 20000 sq.ft of space in Mindspace building at an approximate rate of Rs 42 /sq.ft pm in Malad.
ICICI Oneserve leased an office space of 45000 sq.ft in Mindspace at an approximate rate Rs 38 /sq.ft pm in Malad.
Ocwen Financials leased an office space of 50000 sq.ft in Mindspace, at an approximate rate Rs 50 /sq.ft. pm.

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Affordability’ can be defined as the consumers’ ability to purchase but it is a relative term that
could acquire different meanings under varying circumstances. With a bevy of real estate
companies riding on the wave of economic growth the focus on the “fortune at the bottom of the
pyramid” has become an important component of their strategy evident in numerous low price
housing projects
sprouting across the nation. For instance Tata Group has come up with a project
at Boisar near Mumbai, Godrej Group is building a township outside Ahmedabad, Ansal
Properties is constructing homes for low income groups in U.P. and Rajasthan and the list goes
on and on.
However, the availability of adequate financing sources for the consumers is a major factor in
determining the sale of these projects. Thus, the role of microfinance institutions in enabling the
low income consumers, mostly employed in the informal sector in purchasing these “Affordable
houses” is of much importance. This is evident from the fact that real estate developers
constructing low cost housing projects are partnering with microfinance institutions like Micro
Housing Finance Corporation Ltd. (MHFC) and SKS Microfinance etc.
Demand for Affordable housing:
There is an enormous unmet demand for low-income housing finance. The segment earning
between Rs 7,000-Rs 15,000 has never been considered significant for home loan offerings.
While the prospects of getting a home loan for the formal sector employee do exist, chances for
informal sector employees and the self-employed like drivers, NGO staff, small caterers and
others are bleak. This is despite the fact that they have marketable skills, steady jobs/incomes
and employer/customer recommendations.
Moreover, urbanization has played a key role in making India’s housing problems worse. In the
present, scenario the total urban land is estimated at 2.3% of India’s total geographical area,
which accommodates 30% of population. Pressure on land and infrastructure is only going to
increase further with 40% of the nation expected to inhabit cities by 2020 at which time urban
population is expected to be 455 million. Apart from this, with 200 million people anticipated to
be living in slums and slum like conditions by 2020, the focus is bound to be on urban housing.
These people have the capability and willingness to make a 20%-25% down payment on houses
costing between Rs 4 lakh-5 lakh and are happy and able to take on a 15-year loan obligation, at
market rates, in order to realise their dream home. Given that in these small-sized homes, the
land cost represents a small percentage of the overall cost, the speculative risk is low, with a very
low probability of a drop in these property prices.
India’s housing shortage is estimated to be as high as 40 million units and demand from the low
income segment constitutes a large proportion of this shortage. Thus, the role of housing
microfinance becomes all the more important as a facilitator to bridge this demand supply gap.
Sources of finance for low income buyers:
Housing microfinance delivers housing finance to low-income people, typically but not
necessarily, without collateral specifically intended for housing-related endeavors, including new
constructions; repairs, improvements or up gradation of existing structures; purchase of land; and
investment in infrastructure. Banks face difficulty in financing the low income consumers mostly
employed in the informal sector terms of inability to accurately assess the credit risk associated
with low income borrowers, lower profit margins, lack of land titles, and uncertainty of
Hence, banks like HDFC indirectly fund the low income consumers by lending in bulk to
organizations like SEWA (Self Employed Womasn’s Association) and IASC (Indian Association
of Savings & Credit) which in turn lend to these borrowers. HUDCO (Housing Development
Corporation) and NHB (National Housing Board) undertake the financing and refinancing of
organizations engaged in lending to the low and middle income households. Certain housing
companies like Dewan Housing Corporation Ltd. are playing a major role in providing loans to
the low and middle income households.
Government also promotes the rehabilitation of the urban poor by financing the State housing
boards under policies like the JNURM (Jawahar Lal Nehru National Urban Renewal Mission) &
National Slum development Programme but the success of these policies is limited due to
corruption and nepotism.
Thus, Housing microfinance with longer tenor, flexible payment options, less stringent KYC
norms and lower interest rates acts as the ideal source for providing loans.
Partnership between Microfinance companies & Real estate companies:
“The biggest challenge for our customers is accessing loans – 1,700 out of 3,000 customers in
Phase 1 wanted loans and out of these 1,300 have got sanctions after 6-8 months. There are still
400 customers who are trying to get loans”- Joe Silva, Chairman and CEO, Matheran Realty Pvt
Ltd- Promoters of TMC.
The above statement highlights an urgent need for partnership between real estate developers and
the Microfinance institutions. A case in point is the partnership between Tata Housing
Development Company and MHFC (Micro House Finance Corporation Ltd.) for the New Haven
low cost housing project at Boisar 80 km from Mumbai. The model, offering apartments of 283
sq ft, 360 sq ft and 465 sq ft, in the price band of Rs 3.9 lakh-6.7 lakh, is being replicated across
tier I and II cities.
MHFC is the first housing company in the country dedicated to providing house loans to low
income individuals in the informal sector. Similarly an Ahmedabad based MFI has tied up with
TMC for the latter’s project, the company aggregates customers and determines their credit risk.
Challenges faced by the Housing microfinance institutions:
The road to financing low income consumers is riddled with roadblocks, the first challenge is in
terms of the availability of long term money of the tenor of 15-20 years due to the long term
payment option provided to the economically weaker sections and the second is in terms of the
cost of furnishing the loans.
Currently most Microfinance institutions have short term money in the tenor of 3-4 years at a
rate of 15% to 17% which could translate into loans at the rate of about 18%-19% to the low
income individuals which is quite high. Institutions like MFHC are currently lending from their
equity money but as they take on debt, the loans are bound to get pricier.
The NHB lends to microfinance institutions at about 10% which in turn lend to the borrowers at
about 12%-14% after taking into account the operating costs, credit and interest rate risks. Thus,
in the event of the interest rates being increased by the NHB, the MFIs would have to transfer the
additional cost to the borrowers to remain profitable. This could be unaffordable to them and
would lead to a lower demand for the affordable housing. NHB engages in refinancing of loans
but the interest rates are not fixed but reviewed periodically.
The road ahead:
The success of housing microfinance shall depend on the access to low cost funds and of longer
tenor. This could be facilitated by developing a deep long term debt market, where longer
horizon investors like pension funds can invest in the house mortgages. Mortgage guarantee
funds could also be developed where investors can pool their resources to lend to the mortgage
institutions. An apex body exclusively for financing the microfinance institutions could also be
set up under the supervision of the NHB; incidentally NHB is in the process of developing the
Mortgage Guarantee Corporation on similar lines.
Thus, affordable housing is bound to have a huge impact on the economy in terms of providing
quality life to the economically weaker sections of the society which will in turn improve the
quality of the work force, needed for the growth of the country and Microfinance institutions
have a mammoth role and responsibility as the catalyst for this transformation.

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Non Agricultural permission

Non Agricultural permission

It is the Permission granted for conversion of agricultural use for various non agricultural uses for the land assessed on used for agricultural purpose. In a simplified version it is just the “CHANGE IN USE” of the land. If the land is assessed or held for the purpose of agricultura it cannot be uised for any other non agricultural purpose without permission. For clear perception it is imperative to study relevant definitions of some of the vital terms like (1) “Agriculture” (2) “Agricultural land” and (3) Agricultural purposes.

Surpassingly the terms “Agriculture” is not defined in the Maharashtra Land Revenue Code, 1966 But it is defined in section 2 (1) of the Maharashtra Agricultural Land (Ceiling on Holdings) Act, 1961. Agriculture is not only ploughing, sowing and reaping of some crops or produce. Its agricultural uses includes, grazing for cattle, breeding of live stock, poultry farming, rabmanure, beekeeping, manure storage etc. Thus the land which is used or capable of being uised for the purpose of agriculture can be termed as “Agricultural Land”.
The procedure to obtain permission for conversion of use of land from one purpose to another is very lengthy and requires professional expertise in the field of revenue laws. The permission is granted under the provisions of sub-section (1) of section 44 of the Maharashtra Land Revenue (conversion of use of land and N.A Assessment) Rules, 1969 to the competent authority having respective jurisdiction of either Tahsildar or the Sub-Divisional Officer or the Collector as the case may be. The application in the prescribed form as mentioned aforesaid can be made by an occupant or a superior holder or tenant with the consent of each other. But the practice of constituted attorney applying on behalf of the landholder is unlawful. On one of the four prescribed forms the applicant must annex one rupee court fee stamp.
The applicant can apply for nonagricultural permission for any one of the three stipulations mention thereunder ; (a) To change the use of land assessed or held for the purpose of agricultural for a nonagricultural purpose (b) To change the use of land held or assessed for nonagricultural purpose for some another nonagricultural purpose (c) To use the land for the same nonagricultural purpose for which it is assessed but in relaxation of any of the conditions imposed at the time of grant of land or permission for such nonagricultural purpose.
The case can be processed only if the submission is substantiated with various documents as under :-
(a) 7/12 or record or rights of the proposed lands in original x 4 copies.
(b) 6 –A Mutation entries in originals x each 4 copies.
(c) 8 – A Khate Utara in original x each 4 copies.
(d) GutBook plan of the concerned land issued & Certified by the District Inspector of land records x 4 copies.
(e) Certified Measurement plan of the land survey form District Inspector of land records x 4 copies.
(f) Layout plan showing internal roads, open spaces e.t.c. duly signed by the applicant and the Architect x 8 copies.
(g) Registration Certificate of the Architect x 2 copies.
(h) Appointment Letter for the Archtiect x 1 copies
(i) Complete revenue search for atleast 30 years x 4 sets.
(j) Power of Attorney for the constituted Attorney if appointed by the landholders x 2 copies.
(k) Grant in right of way document if access road is obtained from the adjoining owners x 2 copies.
(l) N.A. application in prescribed form x 4 copies.
(m) N.O.C. from local authority for conversion of land use x 2 copies.
(n) N.O.C. from pollution Board for Industrial N.A.
(o) N.O.C. from Land Acquisition Department.
(p) Authentic documents to prove existence of adequate water source.
(q) Provisions to be adopted for sewage, drainage and disposal system.
(r) Provisions for adequate infrastructure in the case of vast layouts.
(s) “Sales Permission” for tenanted lands under layout.

The application can be returned back if the applicant is unauthorised signatory or if the submission is incomplete for want of some documents.
The competent Revenue Authority (The Collector, S.D.O. or Tahsildar as the case may be) will initiate proper inquiry through Circle officer of the area for on the spot study of the site to verify the applicants and inspect the site in detail. His report will include written statement endorsed by the applicant and the Architect . The positive site inspection report from the Circle Officer should confirm that the land is vacant and there are no structure. He shall also note the alignment of high tension electrical lines passing above the lands. Any dispute regarding ownership of the land will come to surface during joint site inspection of the site by the Circle Officer.
During the process of granting permission for nonagricultural use complete revenue record of the concerned land shall be thoroughly scrutinized and the permission can never be granted if discrepancies are detected in earlier transfers of occupancy. If a fraud is detected in previous transfers it shall be construed that all the subsequent transfers thereafter are invalid. However irregularities in areas can be rectified by actual survey on site through D.I.L.R. and other ways.
The competent authority i.e. the Collector or the Sub – Divisional Officer or the Tahsildar as the case may be will forward the case papers to the relevant planning authority of the area such as Asst. Director of Town Planning (A.D.T.P.) or BM.R.ED.A. or CIDCO etc. for recommendation whether the proposed nonagricultural use can be allowed or not ? The concerned Planning Authority shall scrutinize the case in detail to ascertain if all the stipulated Development Control Rules are followed or not and shall base their report on the following assertions viz (1) security of Public Health (2_) Contradiction of planned scheme of the area (2) Contradiction of planned scheme of the area (3) Balanced Development (4) Area verifications (5) Availability of infrastructure (6) proposed infrastructure in the schemes etc. At this juncture it is interesting to state that competent Revenue Authority is sufficiently authorised to sanction N.A. Permission inspite of having some objections from the Planning Authority. The consultation of the Planning Authority. The consultation of the Planning Authority is mandatory but the final decision under discretionary powers is with the Competent Authority. In various cases, sometimes Planing Authority is too rigid to apprehend the substance of Planning Concept in relation with the vicinity around and the needs of the people by raising non-practical and vogue objections., The applicant is eligible to refer his case in Appeal to the Direct of town Planning Office for Maharashtra in Pune, if the case is rejected. In such cases till the final decision is arrived the application for N.A shall remain pending.
The case papers shall also be forward to the Land Acquisition Department to verify that the proposed lands under N.A. are not included in the Land Acquisition by the Government; if so N.A. Permission can never be granted.
For Industrial N.A. use case papers shall also go to various Government officers for verification regarding protection form air and water pollution and ecology. If the proposed land in full or part is obtained under “The Bombay Tenancy and Agricultural Lands Act, 1948, obtaining of “Sale Permission” from the competent Authority is an absolute must before granting N.A. Permission. Let me raise a point here that procurement of sale permission in itself is a vast subject and requires tremendous professional expertise and knowledge of the prevalent land enactment’s.
The position of tribal lands is very ambiguous. All occupancies of Tribals transferred in favour of non tribals after 6th July 1974 shall be liable for prosecution under the Maharashtra Land (Amendment) Act, 1974 or generally known as Maharashtra Act XXXV of 1974.
Similarly all the transfers and adiwasi lands to non-tribals affected during the period from 1st April 1957 to 6th July 1974 shall be read with according the to “The Maharashtra Restoration of Lands to scheduled Tribals act, 1975 which is known as Maharashtra Act No. xiv of 1975. But however the non tribal transferee can succeed if the land in question has been put to any non agricultural use on or before the 6th July 1974.
It is generally believed that if no reply is given by the Authority to the Applicant within 90 days from the date of acknowledgement of the application the N.A. permission shall be deemed to hve been granted. If all conditions are fulfilled under section 44(3) of the M.L.R.C. 1966, the permission is deemed to have been granted. It is not in reality granted but the Act of Legislature treats that it is granted. The applicant is not liable to any fine or penalty under section 45.
The levy of Non Agricultural assessment begin from the day on which nonagricultural use begins and not from the date of permission. The commencement of N.A. use is not elaborated in the Code. But it is a question of fact and interpretation. The applicant should sincerely exert himself after obtaining N.A. Permission by operations like leveling, developing or reclaiming the land, Constructing internal roads, drainage etc., thus altering the outlook of the land so as to render it unsuitable for agriculture. The above operations are adequate to establish that N.A. use has commenced. It is not necessary that Building construction activity shall not started to commence N.A. use.
If the applicant fails to inform within one month his commencement of N.A. use he shall be liable to pay fine in addition to N.A. Assessment but such fine shall not exceed Rs. Five Hundred only as per section 44 (5) of the code.

The applicant shall be commence that non agricultural use applied for within one year from the date of the order; failing which, unless the said period is extended by the Collector from time to time, the permission granted shall be deemed to have lapsed as per rule 4 (c) of the M.L.R. (Concretion of use of land and nonagricultural assessment) rules, 1969.
As per section 44(6) of the code after the change in land use a sand shall be granted to the holder in the form in schedule IV if the land is situated outside the jurisdiction of the Planning Authority and in Schedule V if the land is situated within the jurisdiction of the Planning Authority. If the applicant fails to appear before the Collector for execution of sanad within a reasonable time, a notice can be issued to him to the effect that such act of non execution of sanad would entail cancellation of N.A. permission already granted.
The Government is no authorised to alter very or cancel the terms and conditions of a sanad once they are agreed upon between the Government and the occupant, as the sanad is executed by the Collector on behalf of the Governor under Article 299 of the Constitution and it constitutes a contractual obligation. But if the sanad is executed by the collector in his capacity as a revenue officer in exercise of his statutory obligation in favour of private parties; thus Government of revenue officers are empowered to vary; amend or cancel the terms and conditions of the sanad.
Conversion of agricultural use into nonagricultural use without permission is bad in law but a nonagricultural land may be used for agricultural purpose without any permission unless such agricultural use is prohibited under section 43 of M.L.R. Code 1966.
The Collector is bound to give reasons in writing of refusal of N.A. Permission under section 42 of the code to the applicant. On refusal the applicant is entitled for only ONE appeal under section 247 of the code to the Divisional Commissioner.
The Government has power Su motto to revise orders passed by the collator for some specific cause involving public interest even if sanad is executed creating contractual obligation .In such a case the aggrieved party is liable to get appropriate compensation against the cost incurred in setting up the project by commencing N.A. use.
The Regularization of unauthorised use is covered by rule 9 f the Maharashtra Land Revenue (conversion of use of land Non Agricultural Assessment) Rules 1969. For unauthorised use of land in contravention of the provisions of section 44 of the code if the Collector is satisfied that had the holder applied for necessary permission under relevant section his application would have been sanctioned and if it is within the jurisdiction of the planning Authority the unauthorised non agricultural use can be regularised under rule 9 of the following conditions :
(1) The holder shall pay the amount of conversion tax leviable under section 47A within 30 days from the date of regularization and shall pay non agricultural assessment from the very commencement of the use.
(11) The holder shall pay fine not exceeding forty times the N.A. Assessment.
(iii) That the holder shall abide by the conditions specified in Rule 4 and such other conditions as the Collector may deem fit to impose.
However if the unauthorised N.A. use is not possible to be regularised under Rule 9 as described above, and if the Collector is convinced planning Authority with the sanction of the State Government may allow the constructions to remain under Rule 10 subject to the conditions (i) and (iii) in preceding rule 9 and with additional conditions as follows :
(a) Holder to pay composition fee not less than fifty percent of the cost incurred on the offending unauthorised construction or 40 time the N.A. assessment payable on the land with reference to the altered use, whichever is greater and (b) the holder shall agree in writing to demolish the offending unauthorised construction without claiming compensation whenever asked to do so in the public interest, failing which the Collector shall do so at the holder risk and costs.
In exceptional cases the Collector may with the sanction of the State Government reduce the amount of composition fee payable by the holder under conditions (a) of Rule 10 as enumerated here in above if the Collector is convinced about (i) the financial inability of the holder causing him undue hardship and (ii) if the offending unauthorised construction was no constructed by the holder with the knowledge that it was unauthorised.
The holder is eligible for the grant of a sanad from the Collector if his unauthorised non-agricultural use is permitted to be continued under Rule 9 or 10 of the “The Maharashtra Land Revenue” (conversion of use to of land under Non agricultural Assessments) Rules, 1969.
There is one more procedure for the regularization of unauthorised non agricultural use. Under the Collector of Thane’s notification No. REV DESK II/N.A. XI 124 dated 27/09/1978 (N.A.) in various talukas who shall issue provisional N.A. order under Section 45 and 114 of the Maharashtra Land Revenue Code demanding the holder to pay N.A. Assessment and fine (40 times of Assessment). But simply paying of N.A. Assessment and fine does not regularize unauthorised N.A. use. Usually the period of six months is granted to the holder to bring N.O.C. from the Planning Authority and other authorities, failign which the holder is liable to be prosecuted in accordance to the provisions of M.C.R. code 1966 inclusive of the demolition of his structure. The substance behind this procedure is to raise revenue from unauthorised structures and to give constitutional rights to the holder to prove his bonafides that permission may have been obtained if applied before as he was ignorant of the offence he had committed deliberately by flouting all the prevailing rules it is not possible for the holder to get his unauthorised N.A. use regularised under section 47(b) of the M.L.R. Code 1966. Therefore the layman buying part of such unauthorised structure should not be misguided by the grantor of this provisional order of the Additional Tehsildar (N.A.). Such orders are not final N.A. orders.
On receiving N.A. Order the valuation of the property increased manifold. The procedure is intriguing and cumbersome. It invites precise professional expertise. It adds significantly to the credentials of the property as it is a certification from the Government with regards to its immaculate legal and revenue marketable title. Any Indian Citizen in Indian Union inclusive of Andaman and Nicobar but exclusive of Jammu and Kashmir can buy and N.A. property anywhere even if he is not an agriculturist.

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