Posts

Why is real estate regulation caught in a time warp?

Image
  Why is real estate regulation caught in a time warp? The challenges faced in real estate regulation are not limited to the trends in the virtual world. The marketplace in the real world, too, is demanding that regulation be more nimble, more agile, and more forward looking  (  Also, published today in  moneycontrol.com )                - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  Parliament sessions, including the February 1 Budget session, have been largely silent on changes in taxes, as well as regulations with respect to real estate. However, as more activities in these areas go virtual, regulation and legislation may need to keep pace. Classes to conferences and currencies to campaigns are now more prominent in their virtual avatars. Though real estate and the homes we live have not become virtual, as more things go virtual regulation in the real estate sector will start appearing more jarring.    Any real

The United Celebration of India

Image
  The United Celebration of India Add Bollywood and Cricket, and you and a super success formula, yet only on two occasions, the formula has reached exceptional excitement levels  ( Also published in  movietalkies.com  )      - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  The two big forces that have the potential to connect people across the length and breadth of India and also connect Indians across the globe are Bollywood and Cricket. So, when the two together get connected, it’s no surprise that the excitement reaches a new dimension. Be in Anju Mahendroo/Gary Sobers or Sharmila Tagore/Pataudi or Kohli/Anushka, eyeballs in all generations have been spinning stories. But these have been personal events. On the business front, Bollywood and Cricket have come together on many occasions - All Rounder (1984), Awwal Number (1990), Iqbal (2005) and many more - but the kind of excitement that ’

Cinemahalls : Reeling A Reincarnation ?

Image
    Cinemahalls : Reeling A Reincarnation ?   Against its previous rivals (TV, VHS, Cable TV et al), cinemahalls could flex their muscle through technological innovations. But as they reopen, they face a unique rival.              ------- ------- -------   ------- ------- -------  ------- ------- ------- ------- ------- ------- When the first Indian film  Raja Harishchandra    (1913) was screened, the cinemahall had remained silent.    During 1910s, Cinemahalls would face tough competition from theatre – which then had    voice . With talkie films, Cinemahalls surpassed theatre,    as writers could write stories for cinema that could not have been narrated in theatres.     During 1940s to 1970s, Cinemahalls in India, saw a rapid growth. When during 50s & 60s, cinemahalls in US faced competition from television, it was countered through technological innovation called    widescreen formats (cinemascope etc.). Widescreen formats were very cumbersome to watch on TV. In India, cinemaha

Safeguarding Indian Realty from Evergrande phenomenon

Image
      Safeguarding Indian Realty from Evergrande phenomenon     All published in The Print   While the above issue does raise concern, however,  before one addresses the above, a more fundamental question needs to be answered : “Why do developers end up borrowing more than they can chew ?”   And the answer lies in the structural uniqueness of real estate business.     1.       Capital requirement remains unpredictable     A developer typically plans his funding through three sources :   ·        Own equity ·        Borrowings from banks etc. ·        Customer Advances      Owner’s equity has physical limitation, bank borrowings too are limited by regulatory norms. Since customer advances remain unpredictable, financial closure quite often remains a puzzle.  Further when  the projects gets completed, developer’s capital requirement comes down significantly, therefore, developer would prefer capital that can be repaid after the project.    To address all the above concerns, developers en