After the engineered price boom, it’s raining discounts in real-estate

Developers have come down to terra firma after having jacked up rates to astronomical levels

After the huge hike in property rates in Mumbai, developers are now offering discounts on properties, at least in the suburbs. Royal Palms, a property owned by Mumbai-based developer Royal Palms India is offering 1BHK (bedroom-hall-kitchen) of 526 sq ft; 2 BHK (815 sq ft) and 3 BHK (1,082 sq ft) at Rs4,930 per sq ft for its two new towers - Crystal and Diamond Island, both based at Goregaon, a western Mumbai suburb. Earlier, these properties at Royal Palms were available at Rs5,300 per sq ft.

Earlier, Moneylife had reported (http://www.moneylife.in/article/8/6400.html) that Orchid Woods, a residential project by DB Realty, was offering customers through ICICI Home Search, (a division of ICICI Home Finance Company) flats ranging from 2 BHK (1,420 sq ft); 2.5 BHK (1,635 sq ft); 3 BHK (1,820 sq ft) and 4 BHK (2,465 sq ft) at Rs9,500 per sq ft (plus Rs45 per sq ft for floor rise). The flats in Orchid Woods were priced earlier at Rs10,881 per sq ft.

"Property prices have started showing correction as sales are not happening. After the first quarter of the current fiscal, property sales are down by around 15% in Mumbai. End-users have disappeared from the market," said Pankaj Kapoor, founder, Liases Foras, a real-estate research agency.

Mumbai is expected to report lesser volume of real-estate transactions over the next six months, according to industry experts. "We are going to see lower volumes of transactions in the next six months compared to the past six months, if prices do not come down," said Pranay Vakil, chairman, Knight Frank (India) Pvt Ltd.

If the current trend of discounts by developers is any sign of things to come, a much-belated correction in property prices in Mumbai might finally happen. Prices of various real-estate properties - both residential and commercial - had shot up by 30% in a few pockets of Mumbai over the past six months.

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COMMENTS

Nitin

6 years ago

I fail to understand what is the reason behind so much of price increase in the reality...its next impossible to buy a flat in suburbs...to top it all builders are asking for black cash....from where to bring such huge amount that also lack....what are we genuine tax payer getting out of it.....no law and regulations in the reality...poor roads water cuts....congestion problem.... all ministers are blinded by the black money profit they are getting from the reality.... NO one cares... why the hell do we vote to such creeps, SHAMELESS ministers...

This country doesn't even guarantee the fundamental rights to citizens..

Stop feeding to these suckers...
wake up!

Dalip Singh

7 years ago

What positive development across the world economy likewise Indian economy has happened over the months that the builders are raising the prices of the flats,I fail to gather,can someone explain please.Is the recession over,has the economy in the US and Europe recovered,has the employment decreased worldwide.

Srinivasan

7 years ago

Even at these prices, there is a hoax being perpetrated on the buyers - that of Super built up vs. carpet - in the end, if one looks at carpet area, the rates almost double what is being quoted ! Unfortunately, everyone has a vested interest in this, including us as owners of houses - watch the movie - Capitalism - A love story ... it will tell you where the real estate market is going in India.

Dinesh Shah

7 years ago

Good news. Prices of properties are beyond the reach of middle class people. The high prices are manipulation only. Because the developers have made so much money that they are hoding back the sale of premises. Ordinary 2 BHK flat is not less than Rs.80 lakhs in distant suburbs. How many people can buy at this cost even with the bank loan? I believe that if this price rise is not checked, a bubble is being formed. Let it burst.

satish

7 years ago

Govt job is to help builders earn more money and they are doing it honestly. The only way to stop this is stop buying properties for unrealistic prices. If you want to invest then look for other ways. And I agree with Dalip that our ministers will not hesitate to sell this country.

Prakash

7 years ago

I wish this was true. Let me give you examples. 1) Indiabulls Panvel was going for Rs 2500/- psf a couple of months back. Now at Rs 3,000/- psf. A hike of 20% in just a couple of months. 2) DB Realty's Orchid Woods at Goregaon (E) was going for Rs. 9,000/- psf through channels of Aditya Birla Money a couple of months back. Now the rate is Rs. 10,800/- psf. Again a rise of 20%. 3) Oberoi Exquisite, Goregaon (E) was available at Rs 10,000/- psf. Now it is Rs. 11,000/- psf. A rise of 10%. The list goes on..... Builders are hiking rates left, right and centre. According to me it is the vicious circle responsible for this. e.g. Some couple of months back, in a property exhibition, a prominent builder in Thane was offering at around Rs. 6,100/- psf in under construction projects. After a few months there was another exhibition and again when the builder took part they were offering it at Rs 6300/- psf or even higher. They feel that if they keep the same prices then prospective buyers may feel that the flats are not selling and the buyer will still not buy and would prefer to wait. So, to give an 'urgency' feel to the buyer they increase the rates. This makes the buyer take an immediate decision to avoid probable further rise. This strategy is probably true for all builders.

REPLY

Dalip Singh

In Reply to Prakash 7 years ago

Now it seems some sense has prevailed in one or two developers.Orchid Woods by DB Realty is offering at the rate 9222 per s.f plus floor rise.The way builders make up is offer at sightly lower price but show availability of higer floors only,that way they get to sell higher floors first by charging heavy floor rise,comes to the same thing.If you calculate the cost of land and construction the public is paying 40 percent more than what the price actually should be,and above that you have the govt charges in form of stamp duty,vat,service tax,registration,to name a few,then if it is not day light robbery then what is it.As one rightly said one should have a good lawyer if one is going in for purchasing any flat in India as this industry is bereft of any proper legal laid out rules and regulations.All sham nothing but loot ditto what the govt is doing in all the other fields.Loot loot and more loot.Country No.1 of Cheats and Scamsters.Allow me to give them Gold Medal atleast in one field.

Dalip Singh

7 years ago

What with the additional levy of tax by way of service tax,vat etc buyers will find it difficult and the only way to attract them is to reduce the prices.Govt is not in any way helping salvage the situation of supply in any manner and only is interested in levying more and more taxes,least to mention even the Leave and License transactions are not spared.It seems the state govt.has only 2 tax churners one the property and the other octroi,but look at the infrastructure we get in return.No proper planning and if given their way the ministers are not going to spare even a second to sell of this country.

Railways to take over catering services from IRCTC

New Delhi: In a major setback to the Indian Railway Catering and Tourism Corporation Ltd (IRCTC), the Railways have decided to strip the public sector unit (PSU) of its catering responsibilities in Rajdhani, Duronto, Shatabdi and all other mail and express trains, reports PTI.

The Catering Policy-2010 finalised by Railways have clearly spelt out that 'Railways shall progressively take over management of all mobile catering services including base kitchens, pantry cars and all food stalls in railway premises'.

At present, IRCTC, a Railway subsidiary, is responsible for serving food in about 300 trains including in premier trains like Rajdhani, Duronto and Shatabdi.

With this move, IRCTC will forgo at least Rs200 crore catering business, said a senior IRCTC official.

Railway Board will now determine the menu and tariff for the standard meals, breakfast, tea, coffee and catering charges for meals, which are included in the fare.

The new policy comes in the wake of increased passenger complaints about the quality of food served onboard trains and in stations.

IRCTC will now be responsible for selling e-ticket and i-ticket and running the Rail Neer business.

Besides, it will manage Food Plaza, Food Courts, and fast food units. However, the policy has stipulated that "all such contracts presently being managed by IRCTC, on expiry of the contract period, will be awarded by the zonal railways in a phased manner".

IRCTC will not renew any contract required to be handed over to zonal railways on expiry of the contract. At present, there are about 65 food plazas across the country.

Railways will now formulate operating guidelines to implement the new catering policy.

Plagued with passenger complaints, Railway Minister Mamata Banerjee had stated in her Budget speech this year that a new catering policy will be announced to improve the food quality. Incidentally, IRCTC was formed during Mamata Banerjee's regime in 2001. The Jan Ahaar outlets started recently by Railways to provide affordable meals to all class of people will also be managed by zonal railways.

The policy took over a year to be finalised. The last policy catering policy was formulated during Lalu Prasad's regime in 2005.
 

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COMMENTS

baboolal

6 years ago

katera

Mkk

7 years ago

Ok, catring service now run rly but first probelm criate to staff beacause irctc all staff have hotel managment digree & diploma but rly staff haven diploma & digree so shoud be have irctc staff.

Raj

7 years ago

IRCTC claims such a huge profit. Can any one touch the conscious and tell if all this earnings are spent for the traveling public. Where has all these money gone. Definetely not to the public. Has this money gone change the quality of Dosai, Vadai, Idli or Chappathi. served in the train. All these money is looted from public and never returned back to public. Opeing up KIOSK and Food plaza in stations and leaving the traveling public in lurch with worst quality of food is what MINI RATNA has achieved.....what MINI RATNA mean for the travelling public. Fooling arround the Public without social responsiblitliy

Abhay Sinha

7 years ago

Good & welcome move by Railways. Instead of blaming IRTS officers for their current fate, had IRCTC employees (or the PROFESSIONALS) paid attention to providing hygienic food, probably they would have survived. Looks like they have got the mini ratna status for supplying sub standard food to railway passengers

Mobin

7 years ago

What happened to irctc employee who r from f.c.i institutes, they r proffesional .In railway the cook is khalasi they r not proffesional. This is pure politics to takeover irctc. Pls. Take the worker/employee of irctc in railway to use in this job. This is the failure of top managdment which already have a job in railway. Lower level has no role .so dont get them unemployed.

Sunil

7 years ago

Hotel Management Professionals - donot come to Railways for employment, it is a waste of your career & moreover Railways donot deserve to have you.

Sunil

7 years ago

First Mamata Banerjee screwed TATAs in West Bengal & now screwing IRCTC in Railways.

Mamata Banerjee ordered departmental takeover of Howrah & Sealdah bound Rajdhani & Duronto, but could not find enough staff to man the trains for catering.

If there are not enough staff to man a handful of trains railways do not have have capacity to takeover 300 trains. once railways manages to snatch catering from IRCTC, catering will be a failure over railways network.

so all passengers of railways carry your tiffin carriers & make arrangements for food yourself. also donot travel by rajdhani, shatabdi & duronto where food is included in train fare because railways will earn money but not render services.

sunil

7 years ago

Mamta Banerjee is not interested in improvement catering services. if she was really interested she would have done something constructive.
For example: during Laloo's regime, GARIB RATH was introduced & initially no Catering was there but due public demand Catering was introduced. the Garib Rath that were introduced later had Mini Pantries to facilitate Catering by IRCTC
whereas,
during MAMTA's regime Durontos have been introduced which are stated to be equivalent to Rajdhanis whereas there are pre-requisite infrastructure for basic catering & despite IRCTC's suggestions to provide adequate infrastructure, there has been no co-operation from Railways. On the other hand the catering policy states that such infrastructure would be provided to unprofessional railways staff set to take over catering.

IF SUCH PROVISIONS ARE GIVEN TO IRCTC, IRCTC WILL ALSO PROVE THEMSELVES AS THEY DID DURING CO-OPERATIVE REGIME OF RAILWAYS.

Sunil

7 years ago

by way of 2010 Catering Policy, Railways is playing with the livelihood of thousands of indian citizens.
complaints are just an excuse & the excuse was created by Railways itself when they wanted IRCTC to devise a methodology to gauge public grievances. IRCTC proposed to name the methodology as SUGGESTIONS but Railways accused IRCTC of misguiding the public. Since Railways had no system of monitoring complaints & system was devised by IRCTC for the first time, IRCTC has become the scape goat.
another important aspect is that for 150 years Catering remained a resourceful wing of Railways to entertain IRTS Officers and also parallel revenue. this was detected & was one of the reasons for setting up IRCTC & within 10 years of inception IRCTC is a MINI RATNA with over 400 crores turnover. now Railways wants to have the GOLDEN EGG LAYING GOOSE back for themselves.
it is sad how INDIAN BUREAUCRACY & POLITICIANS somehow or the other find ways to fool of the citizens of india.
railways has insulted catering professionals by giving back catering to non-professionals who will definitely screw up catering services on railways. the efforts of a public enterprise goes waste, IRCTC staff will be rendered jobless, THANKS TO MAMTA BANERJEE & RAILWAYS

vk

7 years ago

IRCTC KE ITNE STAFF KAHAN JAYENGE JABKI MAX IRCTC KE STAFF CATG PROFESSIONAL HAIN.

PRAVIN

7 years ago

IT IS IRONY THAT PRESENT RLY CATERING UNIT IS RUN BY RLY OFFICERS ITSELF, THEN HOW THE FATE OF CATG UNIT WILL CHANGE JUST BY CHANGE OF NAME FROM IRCTC TO RAILWAY.

SKT

7 years ago

The next time you find a cockroach in your food served on a long-distance train, blame the railway ministry instead of IRCTC.

Vk

7 years ago

What will be the fate of thousand of employee of irctc..catering was managed b4 by railway only..what had happend..it is the worst decision

KN

7 years ago

yeh bahut acha hua ki railways ne catering apne pass le li kyu ki galti IRCTC karta tha or badhnami RAILWAYS ki hoti thi.
RAILWAYS staff catering ko sambhalne mei capable tha, hai, or rahega..basharte, railway officers catering staff ko moral support de.mei bhi ek railway catering ka staff hu or hum KAMYAB hoker dekhayenge..
K.N

Dalip Singh

7 years ago

Who will be responsible and check the ever increasing adultration every where right from milk to spices,vegetables,everything in this country being run by scroundrals called ministers.Blah!!!!!!

Ericsson objects to draft security norms for telecom equipment

New Delhi: European telecom vendor Ericsson has raised concerns over the proposals like sharing of source code and unlimited liability among others, as part of security clearance of telecom network equipment in India, reports PTI.

"We are specifically concerned to see obligations such as escrowing of source code (which is proprietary information), unlimited liability, no right to decline should the regulation change and lack of right of the vendor to mutually agree on the process suggested," Ericsson said in a letter to India's telecom secretary PJ Thomas.

Amid debate over security concerns relating to telecom equipment by Chinese vendors, the Indian government is proposing to amend licence of telecom service providers as part of security clearance by incorporating these clauses.

As per the proposed amendment, the Department of Telecom (DoT) has said for an Escrow deposit arrangement between the equipment suppliers and the telecom service providers will be formed wherein the suppliers shall keep all the information and documentation in relation to the supplies.

The information would include "without limitations, in respect to hardware, software, all source code, high level designs, detail design documents, listings and programmers note," it added.

The service providers shall have the right to use the escrow information, after its release, in order to use and maintain (including to upgrade) the software, to modify or have modified the software and to licence such modified software to or have it maintained by third parties.

Terming the draft agreement, currently under discussion with telecom operators, as "unjustly onerous", the Swedish equipment maker said that in its current form it would hurt the growth of the telecom industry.

Many clauses have cost implications directly and solely referable to the vendors, which "in our view should be shared by the telecom service providers and work out ways on minimising such costs for the benefit of the industry and consumers."
Ericsson has also requested DoT to hold discussions with the firm to resolve the issue.

The government had earlier asked operators to take security clearance before buying any key telecom gear. Telecom operators had been complaining about the strict rule, which forced the DoT to be very selective in giving approvals for equipment purchase.

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