Housing & Real Estate Development


Hello welcome to lecture 37 which is in the
housing and real estate development. So far we have discussed all the housing typologies,
how those typologies can be integrated in preparation of the city housing strategy and
in the last day we discussed the disaster and management and its implication in housing
strategy and planning, we discussed that disasters can be divided into two parts, the natural
disaster and manmade disasters. For the disasters we can take structural interventions
and non-structural interventions. The structural interventions are basically physical we can
construct building or any physical element and whereas the non-structural interventions
are related to social, cultural, psychological or mental. And we also discussed that to take
the interventions which is related to housing we have to take the actions before the disaster
during the disaster and post disaster after the disaster is over.
So at every level we can take the action like at the pre disaster situation we can formulate
the plants, we can take the development, we can formulate the development conference,
we can enforce them and during the disaster and post disaster during disaster we need
to take action basically basic job is the operation, evaporation all those kind of job
and the post disaster we have to make the construction of the building, the housing
areas and the reconstruction of the basic infrastructure that is the job.
And also we mentioned that as for the disaster management @2005 it is the duty and responsibility
for every city authority to prepare the city disaster management and it is the duty of
the regional planning authorities or the district planning authority to integrate the disaster
management and mitigation inside their planning. And with this we concluded last discussion
that we can integrate this element of the disaster management at city planning level
and the housing strategy and also in the other sectoral planning like mobility and the solidus
management or the sanitation. Every aspect of planning should be integrated
with the disaster management aspect, because this is very, very important aspect which
ensures the safety of the people. Now today we will discuss another very important aspect
of the housing development that is real estate development. Now why it is important so far
whatever we have discussed, we started this in the series of lecture with the policy discussion.
Now policy is very, very important, because policy basically gives a long term guidelines,
long term direction for the city that how the city will grow in particular sector. So
we discussed in details, and then we came to the planning level we discussed the planning
at the regional level at the city level and how the city level planning could be done
for each typology like formal housing, informal housing, organic housing various types of
housing typologies. And now after the planning we have to, planning
is not the sufficient after the planning and the design we have to implement the project. So when you try to implement
the housing project so based on your housing strategy, because after the housing strategy
is framed you have a clear detection, clear physical map of the city showing the various
pockets or land pockets of indicating the typical housing typologies and prospective
kind of types of developer private or joint clinchers or public or NGO what kind of developers
are there. So now how you will include the developer
in the implementation phase so that they can complete the project, they can construct the
project and help you as a public authority to take you or to reach you in the target
areas which is efficient for the housing strategy. So implementation is a very, very important
part, so for the implementation we will be discussing that from a planning paradigm
how we basically come to a development paradigm. Now in the, so far in the planning paradigm
it is a theoretical construct, theoretical analysis and prescription, but it leads to
be implemented which is a part of development. Now who will develop this, who will construct
the building basically it is done by some developer. So here the major role of developer
comes, so this developer could be private, this could be public, the public developers
are basically developers like down and country planning authority.
Developers like the housing boards or any infrastructure developer authority, any smart
city developer authority so all of, they basically act as a developer and also there could joint
ventures company joint venture which is nothing but the combination of the public and the
private there could be agencies like NGO or community based organization they also can
act like a developer so developers role what is a role of the developer now let us discuss
that what the developer do during the development developers role is multi various what they
do they first the first job of the developer. So role of developer first job what a developer
does is first assemble land because the housing strategy we have
clearly indicated that which land is to be developed in what manners what is the final
FIR what is the typology whether group housing or plotted housing or cooperated housing or
cooperative housing we have indicated so based on the prescription the developer can purchase
the land from the market they can acquire within with the government if it is a joint
venture property guided development. That they can do whatever is a method they
can assemble land after that they are job is to
conceptualize the development what kind of development it will be whether it will be
high rise low rise mid rise with the help of any technical personal then
mobilize resource then take permission from the government authority
then construction after the construction they have
to sale the amount sale the units so construction and then they we call it disposal then facilitate
the occupancy of the unit to the end users. And so the limit of the range of works which
is done by the by the developer so during the conceptualize phase they might have to
for a go for market exactly find out what kind of typologies will be required or as
the market given so within the overall city planning strategy they can plane and construct
plan design and construct the and then dispose the units now some times what they do a bigger
developer they can take up to this portion and the contraction and disposal could be
given to some other agencies to conduct. So that also could be done so in those case
those where only involved in the construction disposal and occupancies they are called builder
is basically builders job is to construction and in some cases disposal the units and ensure
the occupancies where as the developers roles is to do every stage they can do from 1 to
7 all the works developer can execute but in some cases they can execute up to some
level and then the builders can take up but otherwise a developer can do every stages
of the job. So that is the developer job so developers
role is realize the plan and strategy so it is a developers who bring our plan and strategy
in a real form in physical form we can see the buildings we can see the cities.
So it is very important to appreciate and to recognize that fact that a developer need
to they realize they make the plan and strategy real on the ground in a physical form so based
on that so we have to understand that the developers role is not very minimal they have
a role very vital role in creating or city and the housing now what kind of property
or what kind of property or units they develop before I come to the overall network how the
developer and the planner and the government works let us see that what kind of property
developers consider. For development so at this movement we are
bring one term which is property so property is equal to is basically the house unit house
or land unit plus ownership so that means any house units or
land if you have the ownership legal ownership it becomes a property so they are m ore involved
in the property develop it is not the develop and all of only infrastructure or only housing
units it is the develop and of the property developing which is called as real estate
development. Though in this lecture or in this lecture
see there is not much scope to discuss about the real estate developing but please take
a note that it is the part of the develop and which comes up after the planning and
the strategy so they deal with the property which is nothing but the housing and house
and land units plus the ownership now what kind of properties at they are now property
can be divided into various form like it can be freehold like a property can be owned by
people for entire life spend. So that is called freehold the freehold property
ensures the freedom to purchase to missal to give rent to give on lease everything and
to an addition and if to make the audition and alteration and modification within the
property within the for a development control frame work but they are could be properties
like lease hold the lease hold property the ownership is given up for sometime like say
30 years or 40 years it is definitely long term lease like it can be 99 years also and
in lease hold premises. Or the property some of the freedom or some
of the actions could be restricted by the giver or by the developer that is possible
and also they are could be rental which is by a large shape is a type of lease hold but
rental houses basically is meant less duration of the ownership now based on that the property
so for developing a property or developing a housing project it is not only developer
who are involved they are all lot of other stake holders involve like government like
the financial like a small developers owner. The technical persons like architect planners
now let us see that how a developing when a developing takes place all the people who
are associated with the develop and how they are associated so in the center we can keep
a developer right. The first stake holders with whom the developer
associated is the government agency so from the government the developer gets
the approval sanctions based on the housing strategy based on the
develop and control they get the approval of a project to design that project and in
return they can provide some sanction fees or taxes like but a developer may not have
the adequate finances they may take a loan or borrowing when we discuss the housing finance
we discuss that they are could be institutional finance.
The objective of the institutional final finance is to provide loan to the developer to develop
the housing project so they are could be financer whose objective will be so financer can provide
then some loan or finance okay in return they will get some interest
on the other hand they are could be other partner financial partner who also can leverage
some amount of the finance and resources with that particular developer so here they can
provide also finance and will return they will share at the profit or loss.
Now basic difference between a partner financial partner and a regular financer like say housing
finance institution or bank is that both of them they provide the finance but they share
the profit and loss but they do not share the profit and loss they are only interested
to get the interest at the market share or at the rate which is contracted. And then
there are technical persons, technical group within the technical group there are architects,
engineers, market specialist who basically provide the knowledge with some fees, consultancy
fees or any advisory fees. And also there could be builders or small
developers. So their job is to construct or dispose some unit and they can provide some
amount of, so they can construct some unit and in written they can get some profit, they
can share profit. And another part is that the end user, so we have the end user who
are getting the housing unit in the end. So end user get the housing unit, get the house
and they are giving the price. They can get the house from the builder also
in some cases that is also possible like this, there also they can give the price to the
builder or the small developer. On the other hand the financial partners and the financing
organization they are also controlled by government. So there is also a control. So this is the
network and the network that how a housing and the real estate development takes place
and these are the major stakeholders in terms of the government, financial partners, finance
institution, small developers and builders, technical group and end user.
In short this is called as real estate administrative model in short rim it basically shows that
how the various stakeholders acts in a integrated method. Now by enlarge in India the real-estate
market and the dynamics of the market players are not very much organized and it is in fact
rather it is very much unorganized so to organize the unorganized real-estate market or the
housing development market and to bring more transparency. And accountability now what transparency accountability
means to in costumer or end user the transparency and accountability related to end user are
the costumer is that they will get there committed house and the hole transaction will be so
transparent that they are clear on there on what they are going to get at that the end
of the housing construction and what they are going to provide as a part of the price
number one and number two there should be a accountable service by the developer if
a developer commits that within three years housing will be completed so within three
years they have to complete it an otherwise they have to in cured the rent or the penalty
so these kind of transparency the accountability was not their Indian housing develop and real
estate sector. To enhance the transparency a accountability
government of India they have come up with real estate regulation at in short data this
act the objective of this act is to enhance the transparency and accountability so some
of the proposal or some of the provisions under the act I should mention to you remaining
you can refer the lat in your own time. So number one provision what the act tells that
every state has to provide has to frame a real estate regulation authority.
So this regulation authority the job of the regulation regulatory authority will be ensure
the light of the end users are the buyer. Various means are provided to ensure that
the one of the means are that every developer has to deposit some amount of money before
the any construction starts as a security deposit or a security money. And not only
that they have to register on the authority as the developer.
And not only that they have to disclose all the assumptions and the approvals they have
received so far before going for further construction and further development. And then some of
the other as a part of the transparent practices the developer has to disclose to the buyers
about the net carpet area which is usable by the end user not the super built up area
or build up area, because super built up area and built up area is sometime not understandable,
not perceivable by the end user it is a carpet area which is understandable by the people.
So in terms of carpet area and all the also all the approvals okay and all the time periods
so if they cannot deliver the projects there will be penalty so that end users get the
benefit of the this real estate regulation act now after this act so after this act every
state government as to farm this regulatory body which will regulate the real estate market
in every state but some of the states they have already formulated this body but most
of the state they have framing of this body so after this real estate regulation act is
implemented in every state every city we can expect that at least some amount of real estate
development and housing development will be done in a transparent way.
The transition will be transparent wend users will be benefited and the end users will get
the affordable housing within a quicker time so today we discussed a very important part
of the housing planning and strategy that’s I then real estate development we talked about
the panning so for in last class now toady we have discussed the very important part
which is related to development and with the development we brought the term of the developer
a developer is a agency or organization or a group of people who assembles land develops.
The land develop the infrastructure do market research conceptualize a project with the
help of the technical personal then they take the permission and the approval of with the
help of the architrave and the planner and after getting the approval they mobilize the
resource from the lending agencies or the from the financing agencies they construct
by them sleeves or sometimes they construct by some builders and then the dispose the
units either so lottery system or through first come first or basis.
And then they facilitate the occupancy so this is the free of the work of the developer
so developer is the agency who ultimately shifts or city based on their planning and
strategy so planning and strategy is the prescription and developer makes the prescription real
so we have to be vigilant we have to b e also unsalable and accountable for any developer
who now in this discussion we discussed about real estate module where we discuss the.
The role of government role of financial role of partners role of builders role of end-users
and technical group and then we mentioned about the real estate regulatory act in which
in came of last one or two years government by government of India this act provides the
man did to formulate the real estate regulator y authority at center level state level and
also to ensure the transparency and accountability. As the part of the transparency and accountability
every developer has to register under this authority which some security deposit and
they have to discuss all the approval and all the details of the project before going
to do any sale or any advertisement for the project. And not only that as a part of transferable
process they have to disclose all the informations including the area in carpet area to the end
users and not only that there are penalty class.
So that if they do not deliver the project with the stipulated time they have to provide
the penalty to the end users. So real estate regulatory developer regulatory act will ensure
the more transparent and accountable services and development of the city as per the housing
and the real estate is concerned. So with this note we conclude this discussion
in the next discussion we will discuss how housing project is managed, we will discuss
the development after the development once the housing project is constructed how it
is managed with some the agencies and the developer that part also we discussed in the
next class. So for today we thank you for your participation.

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