Proper infrastructure could propel GDP by 1-2%’

Delhi NCR

Advising real estate developers from across the world for the past several years, Neeraj Bansal, Partner-Advisory, KPMG India, feels that the Indian real estate sector has come a long way but there are still miles to go. Here are excerpts of his interview with Vikram Jethwani of MagicBricks.com on what he thinks can take the sector to the next level:

Where does Indian real estate stand as compared to the global industry?

Indian real estate sector has much to do with respect to transparency, technology, Floor Space Index/Floor Area Ratio (FSI/FAR) and funding. The sector has strong potential and with a shortage of 18.74 million houses in urban areas alone, India could provide a long-term growth opportunity to global real estate developers, private equity (PE) funds and construction companies.

What kind of global best practices, in your opinion, are relevant and can be implemented in India?

Real Estate Investment Trust (REIT) market is among the most important requirements in India. Since the REIT market does not exist in India, developers often approach REIT markets abroad for raising funds. There is a significant potential which exists in domestic REIT market and government should evaluate this option to further open the sector to foreign and small local investors.Another important area for improvement is increase in FSI/FAR, which could help reduce congestion in the cities.

What is your viewpoint on the use of technology in real estate?

While some developers have started using latest technologies, by and large, the sector is still dependent on old construction technologies. Developers should upgrade to the latest trends followed globally. Usage of new technology could significantly reduce time and cost of construction.

What is your viewpoint on delay in projects related with urban development, roads, power etc? How does it impact our economy?

The delay in infrastructure projects affects the overall economic growth in two ways. Firstly, the delay increases the cost of infrastructure, affecting the overall availability of funds. Secondly, it leads to collateral damages since the benefits are also delayed.

Delay in the Kundli-Manesar-Palwal (KMP) Expressway, for instance, has led to heavy stress on the existing highway ie NH2. The highway is choked to its full capacity leading to wastage of fuel, higher accidents (leading to loss of life) and high maintenance cost.It is estimated that with proper infrastructure in place, the GDP growth could be propelled by 1-2 percent, annually.

What are the most critical factors that result in delay in key projects?

Land acquisition, approvals and securing funding are among the most critical factors resulting in delays. For instance, many residential projects in Noida Extension were affected due to the recent land acquisition row.

How can these issues be addressed?

While developers do not have control on the external reasons, such as land acquisition, inflation and funding, internal ones such as construction status, collection from customers and inventory status could be effectively monitored through project management.
MagicBricks.com Bureau

source:- http://content.magicbricks.com/proper-infrastructure-could-propel-gdp-by-1-2/

Gurgaon Extension: Next residential hub

Delhi/NCR

Like Noida Extension (Greater Noida West) and Raj Nagar Extension (Ghaziabad), a new developing zone – Gurgaon Extension (the area extending from Sohna Road and directly connected to the main Gurgaon-Sohna Road) – is being considered by realty experts as a good place for affordable-range housing. The value of investments could double here once IMT Sohna is up and running, experts say. Also, the Delhi-Mumbai dedicated freight corridor is located close by and all the mega industrial estates and infrastructure coming up along with the KMP corridor will add more value to the investments here.

Close on the heels of its new Master Plan-2031, a slew of group-housing projects, townships, plotted developments, and luxury projects have been announced by leading developers like Raheja Developers, IREO, Parsvnath, Avlon, Gold Souk, etc, for this area.

Gurgaon Extension is already well known for its natural sulphur springs and Damdama Lake. Some of the leading institutions and industries in the area are GD Goenka Education City, K R Mangalam University, Apeejay Satya University, Westin Resort, and MMTC Pamp Gold Refinery (listed among the Top 5 largest refineries in the world).



Master Plan-2031 of Sohna
According to the recently approved Master Plan-2031 of Sohna, the population of Gurgaon Extension (Sohna) is expected to grow tenfold by 2031. The developing area will have 5,000 acres of residential and commercial development and 2,600 acres of green and open space development in over 20 sectors.



This huge growth rate is expected to be induced by factors like Kundli-Manesar-Palwal (KMP) Expressway and Dedicated Freight Corridor (DFC) along the southeastern side of Gurgaon Extension.

The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has acquired nearly 1,600 acres for development of an Industrial Model Township (IMT) between Gurgaon Extension and KMP Expressway. Recently, the government of Haryana approved the development of theme hubs like Leisure Hub, Sports Hub, and Leather Hub along KMP Expressway, in close proximity to Gurgaon Extension.



Connectivity and accessibility
Connectivity and accessibility is the biggest USP of Gurgaon Extension (Sohna). There is a proposal to merge the 90metre Link Road from Gurgaon’s Sector 63 with the proposed 150metre Gurgaon Extension Road, which will not only reduce the travel distance by a couple of kilometres but also ensure a smooth travel time of 10-15 minutes from Golf Course and Golf Course Extension Road.



The KMP bypass would take care of the heavy vehicle movement, reducing the traffic flow on the existing Gurgaon-Sohna-Alwar Highway and the new 90metre to 150metre roads. Also, the area will have excellent connectivity with the NCR through the proposed Metro line.



Realty projects
If you are looking to buy a house and your monthly income is below Rs 50,000 per month, Gurgaon Extension offers good options to suit your budget. Here 2- and 3BHK flats are available in the range of Rs 3,500 per sq ft to Rs 4,500 per sq ft, depending on the location and the developer, like Avlon, Gold Souk, Parsvnath, IREO, etc. Apart from this, developers are also coming up with plotted development with floors, villas, and luxurious, independent apartments.

With the notification of the proposed new connectivity, the prospective and current residential projects are expected to receive an excellent response from the market. The sectors along the new 150metre-wide link road from Golf Course Extension Road will not only enjoy a premium positioning but will also have an advantage in terms of visibility and location among all the other sectors within the Gurgaon Extension (Sohna) Master Plan.

Raheja Developers is building Aranya City, an integrated township with all facilities over 107 acres. The gated community offers plots, villas, floors, and group-housing units with a modern clubhouse; the project also has a school, a hospital, nursing homes, and shopping arcades.

Navin Raheja, CMD of Raheja Developers, says: “This new developing stretch is a good investment area as in the coming few years it can give huge returns on investment. We always viewed this area as a high-potential zone and started acquiring land banks long ago. Today, we have one of the largest land banks in this region. Encouraged with the appreciating realty market, we are finalizing our plans for Gurgaon Extension.”

Ashish Gupta, joint managing director of Gold Souk, says: “Gurgaon Extension has wide roads and world-class infrastructure projects. The residential and commercial projects coming up here are only about 12-13km from Gurgaon, with a price tag that is almost less than half of the prevailing rates in other parts of Gurgaon. Thus, this new developing area is going to be in great demand.”

Other developers expected to be in the Gurgaon Extension (Sohna) are Central Park, Pioneer Park, Parsvnath, Tata Reality, Homestead, and ILD. ILD is expected to launch a residential project here by the end of the year.

Real estate giants of the NCR, Mumbai, and Bangalore are looking to buy residential FSIs in the Sohna Master Plan-2031. The developers are eyeing residential FSI’s from Rs 1,500 per sq ft to Rs 1,700 per sq ft and expect to launch multistorey highrise apartments in the range of Rs 5,000 per sq ft to Rs 6,500 per sq ft.



Market scenario
Gurgaon Extension has emerged as a prime residential destination for end users and is currently registering a healthy demand. It is a good example of mixed-use development with great scope for further growth. Planned urbanization with IT parks, malls, residential apartments, villas and new residential projects under construction on both sides of this road make the area a sought-after location among first-time homebuyers and those looking for a property for investment.

The availability of land parcels for further development and rapid commercial growth in the area have been the main factors that led to the growth of residential real estate along this stretch.

Gurgaon Extension or the Sohna surrounding areas display all the signs of development that a satellite area bordering a hot and happening Tier 1 zone (Gurgaon) shows. The area can be described in two segments – Gurgaon Extension 1 and 2. The first zone covers Sector 38 (Rajiv Chowk) to Sector 66 (Vatika Site) and the second one starts from the road that runs down from Universal Business Park to Badshahpur and beyond till Gurgaon Extension.

Ajay Singhal, director of Avlon Group, says: “The developing part of Gurgaon Extension Road (Sohna) has a number of residential properties under construction by developers like Tulip, Unitech, etc. Owing to the success of Gurgaon’s Golf Course Extension Road, Sohna Extension Road, and the construction of high-end properties along the regions to NH-8, capital values of residential properties are already going up. The area will become fully habitable in about five-seven years.”

Sanjiv Kumar, MD of Swarneem Group, says: “The prospects are quite good but buyers should expect good returns only after four to five years. A good return on short-term investment is not possible. This is an emerging area and a lot of infrastructure is yet to be put in place. At the moment, the only existing attraction is Gurgaon Extension Road, which connects NH-8 to KMP Expressway.”
Reason to invest
After a boom in the residential development on the Gurgaon-Sohna Road and Golf Course Extension Road, the recentlynotified Sohna Master Plan area of Gurgaon Extension is all set to emerge as the next destination for commercial, residential, institutional, and industrial development. The Southern Peripheral Road, which links NH-8 to Golf Course Road and South Delhi is under construction. The planned IMT Sohna is also likely to become the next big industrial park in the region after IMT Manesar and IMT Faridabad. The proposed infrastructure continues to add value to the overall development making Gurgaon Extension an attractive destination for those looking to buy units at slightly lower rates, compared to the rest of Gurgaon.

Source: Times Property, The Times of India, Delhi/NCR

Find affordable homes in Bahadurgarh, Delhi NCR

Delhi NCR

While talking of affordable properties in Delhi NCR, we undoubtedly first think of Bhiwadi or Dharuhera. However, Bahadurgarh, which starts immediately after crossing Mundka from Tikri border, is another location which can be looked at for reasonably priced properties. Having a gamut of residential options, this town is easily approachable through the National Highway (NH) 10.

Connectivity

“The NH10 (Bypass Road) not only connects Bahadurgarh to Delhi but many other towns such as Rohtak and Jhajjar. Additionally, Bahadurgarh will be connected to the Kundali-Manesar-Panvel (KMP) Highway resulting in an improved residential and industrial market,” says Rahul Rajgopal, Chief Marketing Officer of Ruhil Developers.

Further, Bahadurgarh will also be connected by the Delhi Metro by 2016. The construction of the metro already started in May 2013 and would touch areas such as Mundka Industrial Area, Ghevra, Tikri Kalan and Tikri Border.

Residential Developments

As compared to other NCR towns, there are not as many developers in Bahadurgarh. However, a few developers which are seen building their projects here include Omaxe, Era Group, HL Group, Ruhil Developers and KLJ Group. Homebuyers can choose from group housing and big townships projects which mostly offer 2, 3 and 4BHK homes. Some projects also offer villas and plots in sizes varying between 100 and 600 yards.

To be able to purchase these plots, one has to have a budget of Rs 2,700-7,200 per sq ft. “In the past two years, sectors such as 6, 7, 9 and 9A have seen prices rising rapidly due to their proximity to the newly built bypass road. These sectors have properties available in Rs 5,000-10,000 per sq ft,” says Gurpreet Singh of Sachdeva Associates. Apartments are available in a range of Rs 2,800-3,200 per sq ft.

Rahul Rajgopal, CMO, Ruhil Developers says, “Bahadurgarh holds a strong potential for both short to long term investment. The Metro might play a game changer for the town may bring in more end-users in the coming time.”

Social Infrastructure

Bahadurgarh is nowhere behind other NCR towns in terms of social infrastructure. “All the factors that impact livability such as schools colleges, hospitals and entertainment facilities are present here. The area also boasts of good job opportunities as it houses many industries such as Hindustan National Glass, Hindware, Somani Tiles, Parle and Yokohama,” adds Singh. In case you want to work nearer to Delhi, then Mundka Industrial Area is also just a few minutes away.

Shradha Goyal, MagicBricks.com Bureau

Telangana impact’ on Hyderabad property market

Hyderabad

Since the days of indecisiveness in Andhra Pradesh are over with the decision on Telangana, the capital city of Hyderabad is slated to become a heaven for property buyers. As per an online survey conducted by MagicBricks.com, as many as 62 per cent of respondents said that they had been holding their real estate buying decision due to the Telangana issue. So now when the stories of resistance and controversies have found their way to the chapters of history, property buyers who were sitting on the fence are likely to enter the market with clarity and confidence. In fact, it will also hold investors who were planning to exit the Hyderabad market due to risk related to political uncertainty.

“The decision that has been arrived at is good for the Hyderabad real estate market, as it has been hanging fire for the last 3-4 years. Investors who had been playing with the notion of pulling out of Hyderabad because of the unresolved political climate will now have the requisite level of assurance that they had made the right decision, and more investments will pour in,” said Sandip Patnaik, Managing Director – Hyderabad, Jones Lang LaSalle India.

Meanwhile, almost 44 per cent people who responded to the online survey, expect an immediate impact on the property prices post the decision. Eighteen per cent, at the other end, said that the impact would be gradual, than immediate. More importantly, apart from appreciation in prices, most respondents (45 per cent) said that the decision will result in improvement in infrastructure. After infrastructure, as many as 40 per cent respondents expected enhanced employment opportunities.

Apparently, improvement in infrastructure and employment opportunities came up as top factors that would drive the real estate market in the city. Since Hyderabad will be the joint capital for the next 10 years, it should augur well for the city, said DNS Chakravarthy, a local resident.

Vikram Jethwani, MagicBricks.com Bureau    

source:- http://content.magicbricks.com/telangana-impact-on-hyderabad-property-market/?fromSite=toi&utm_source=toi&utm_medium=referral&utm_campaign=toi-mb-whitelabel

NRI interest in Gurgaon realty up as touches historical low

GURGAON: The fall of Rupee has raised speculations of increased NRI investments in the reality sector. Builders and analysts say that Gurgaon continues to be a popular destination for NRIs buying property mainly for the purpose of investment.

The Indian Rupee (INR) has seen 12.0% depreciation against the US dollar since the start of May till June, thereby forcing its value go down against all other currencies pegged to US dollar, including the UAE Dirham (AED). As a result, the Rupee has also depreciated against the AED by 12.0% during the same period.


Builders maintain that this slip might prove a good opportunity to tap the potential offered by the NRIs.

According to Ravi Saund, COO, CHD Developers Ltd, most developers are taking cue from this situation and coming up with products primarily targeted at the NRI segment. “We, at the CHD, are coming up with high-end studio apartments in our upcoming commercial tower CHD Sky One. This will majorly be targeted at our NRI customers,” he said.

Gurgaon has emerged to be one of the most lucrative investment options for NRIs since it ensures a good return on investment. The areas most preferred by the NRI segment are Golf Course Extension, Sohna Road and the upcoming Dwarka Expressway. “If the rupee maintains its current levels, real estate developers could see more NRI investments during the period. On the downside, cost of construction may marginally go up as we will have to pay more in rupee in order to procure raw materials,” Saund added.

Said Pankaj Bansal, director of M3M India: “For many NRIs, buying a property in India (either for self-occupation or for parents or siblings) remains a popular investment option. The momentum, however, may get a temporary boost or bust depending upon the Rupee’s equation vis-a-vis the American Dollar.”

However, Bansal said, like any other price factor, after the initial euphoria settle down as reality sinks in and is accepted. “Over the sustained long term, demand from NRIs settles down at the normal levels eventually,” he said.

Explaining the trend, Sanjay Sharma, managing director, QuBREX, said, “The queries from NRIs might have increased but the actual investment in India will depend upon whether they feel the Dollar is headed towards Rs 50 or slips towards Rs 70. If they believe that the Dollar is going to get stronger, then they might prefer to invest in the recovering market of US rather than in the Indian real estate market.”

A recent survey conducted by Sumansa Exhibitions, organisers of the successful annual event called the India Property show in UAE, possibly reveals that NRIs place a higher intrinsic value on property owned in India over that of property owned in Dubai or elsewhere.

Comparing the market in UAE and India, Ashutosh Limaye, head, research & REIS, Jones Lang LaSalle India, said real estate transactions in Dubai had increased by 8% to 154 million AED in 2012. Not surprisingly, this recovery is backed by huge investments being made by expatriates, particularly from India.

“It could be argued that expatriate Indians may be favouring Dubai over Indian real estate on the basis of socio-economic and other factors. Indian investors were buying properties in Dubai as it offers relative political stability, world class infrastructure, tax benefits, attractive prices and geographical proximity. Also, Dubai’s economy has been recovering since last two years, growing by 4.4% and 3.4% in 2012 and 2011, respectively,” said the analyst.

http://timesofindia.indiatimes.com/city/gurgaon/NRI-interest-in-Gurgaon-realty-up-as-touches-historical-low/articleshow/21077562.cms

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Gurgaon property news | Gurgaon real estate market news, India Properties - Real Estate India - Indian Property News Site, Non Resident Indian – Property Investment and Real Estate News for NRIs

Developers to built Metro parking

NOIDA: To address the parking space crunch to some extent, Noida Authority has asked two developers to built multi-level parking lots for 4,500 vehicles at two of the busiest Metro stations – City Center and Sector 15. The lease agreement with the developers has a provision wherein parking lots have to be developed without the Authority shelling out funds for the purpose.

“When Noida Authority had entered in an agreement with Delhi Metro Rail Corporation (DMRC), it had promised in written to develop a parking lot at the City Center, Noida’s largest mixed land use project. According to the lease deed, Wave group has to construct a parking facility for 4,000 vehicles at the Metro station,” said Authority OSD, Manoj Rai.

“Another developer has been asked to create a facility for 500 vehicles at Sector 15 Metro station. Both the developers will built the parking lots and then hand it over to DMRC, which will manage the operations,” Rai added.

Officials said lack of space at Metro stations leads to motorists parking vehicles on roads which ends in traffic jams.

http://timesofindia.indiatimes.com/city/noida/Developers-to-built-Metro-parking/articleshow/21227975.cms

Unitech group company UCP plans to sell IT SEZ for about Rs 2,800 cr

NEW DELHI: Unitech Corporate Parks, a Unitech group firm listed in London, is planning to sell its IT Special economic Zone (SEZ) in Gurgaon comprising about 3.5 million sq ft of office space for about Rs 2,800 crore.

Unitech Corporate Parks (UCP) — listed on the London’s Alternative Investment Market (AIM) and formed to invest in commercial real estate of India — has 60 per cent stake in the Gurgaon SEZ. Unitech has remaining stake in the SEZ.

According to sources, UCP is looking to sell the Gurgaon SEZ and has given the mandate to property consultant Jones Lang LaSalle India to find out potential buyers.

JLL India has started the process to sell this asset by initiating informal discussions with the probable buyers, sources said, adding that formal bids could be called by the end of this month.

The valuation of the deal is expected to be around Rs 2,800 crore, sources said.

An Unitech spokesperson declined to comment. Unitech is expected to garner Rs 1,100-1,200 crore from this deal and the amount will be used to retire debt and fund construction of projects, sources said.

According to sources, the SEZ is expected to be completed by the year-end and 75 per cent of the area has already been leased.

UCP raised about £360 million by issuing and placing its Ordinary Shares on the AIM of the London Stock Exchange in December, 2006.

It had invested in six commercial projects in India in partnership with Unitech, of which five are in the national capital region and one in Kolkata. UCP has 60 per cent stake in these properties while Unitech has 40 per cent.

That apart, Unitech holds 12-13 per cent stake in UCP. “The Board is working actively on all future options for the Company and ways to monetise the assets as they progress,” UCP had said in its half yearly report in December, 2012.

“We continue to believe that the maximum value for shareholders will be achieved by creating investments which are substantially physically complete and well let, and so our strategy continues to be to progress the projects as quickly as tenant demand permits,” it had said.

http://economictimes.indiatimes.com/markets/real-estate/news/unitech-group-company-ucp-plans-to-sell-it-sez-for-about-rs-2800-cr/articleshow/21067073.cms

Residential Projects in Gurgaon

Twin cities to be made into brands to attract investors

NOIDA: The Uttar Pradesh government is getting ready to organize promotional activities in various states to promote its iconic cities, Noida and Greater Noida, among investors. This was announced by the Uttar Pradesh infrastructure & industrial development commissioner (IIDC), Alok Ranjan, on a visit to Noida. The IIDC was in the city on Wednesday to review the development works in the twin cities. Apart from reviewing the progress of the projects launched by chief minister Akhilesh Yadav in April, Ranjan also said that the cities will be branded and promoted by the state government as favourable industrial destinations. The IIDC also held a meeting with the Gautam Budh Nagar SSP, Preetinder Singh, to beef up security in the region.

“Noida and Greater Noida have all the elements to compete with an international city. This ranges from roads, transport and world-class infrastructure, which are usually demanded by entrepreneurs for setting up commercial units. However, what is lacking is proper branding and officials have been directed to develop a blueprint for the purpose. Officials will hold conferences and other activities in association with different business and industrial organizations in various states to invite entrepreneurs to set shop here,” Ranjan told TOI.

“There is need to develop a sense of satisfaction and security among investors. Next month, there is an event scheduled with the National Association of Software and Services Companies (NASSCOM) to invite entrepreneurs to set up units in the twin cities,” the IIDC added.

Noida and Greater Noida CCEO Rama Raman said that to improve connectivity in the NCR, the UP government is stressing on completion of the FNG project.

source:- http://timesofindia.indiatimes.com/city/noida/Twin-cities-to-be-made-into-brands-to-attract-investors/articleshow/21130731.cms

Realty project costs surge by up to 20%’

NEW DELHI: Real estate sector has witnessed substantial increase in project costs during the last couple of years as foreign fund flow has almost dried up, while interest rates and input costs have headed northward, said Jones Lang La-Salle in a report.

While rising interest rates have led to costlier bank credit, the strict RBI guidelines have made real estate lending all the more cumbersome, the report pointed out. “Currently, the costs of key inputs for real estate development are up by at least 7%. This is over and above a rise of about 25% last year,” JLL said, adding that labour cost is up 10-15 % and the prices of steel and cement have gone up by about 7%. “The net rise in construction costs is approximately 20%. Therefore, the Indian real estate sector is in dire need of foreign funding, both for maintaining growth and containing costs.”

As the Real Estate Mutual Funds (REMF) remained a non starter, FDI is the only saver which the real estate sector can look up to, JLL said. However, the ever-changing policies on FDI, taxation and development, coupled with lack of transparency and a high amount of friction in approval mechanisms have led to an uncertainty in yields and tenure of lock-in for investments in real estate, the report said, adding that this has proved to be the biggest stumbling block in attracting FDI.

The total FDI in 2012-13 came down to around $1.3 billion as against over $3 billion in 2011-12. In the current year, the situation has further deteriorated. The biggest problem is the uncertainty surrounding the investment period. Shobhit Agarwal, JLL MD (capital market), said, “At present, if a foreign investor is willing to invest for a medium term like 5-6 years, he is bound to be hesitant as it is most likely that the targeted projects would take longer than 5 years in completion. Also, foreign investors are bound to miss out on the cream of returns, which come only after the project reaches advanced stages of development or nears completion

Source http://timesofindia.indiatimes.com/business/india-business/Realty-project-costs-surge-by-up-to-20/articleshow/21640037.cms

Reliance Industries Ltd to go slow on 720,000-sq-ft Alaknanda mall following strong protests

NEW DELHI: Reliance Industries Ltd (RIL), the country’s largest privately owned company, has decided to go slow on its plans of constructing a gigantic 720,000 sq ft mall in a residential colony in south Delhi, following protests from an assorted group of upper middle class professionals who live there.

An RIL group company in 2007 had purchased a 4-acre plot in south Delhi’s Alaknanda through an auction from the Delhi Development Authority (DDA) for about Rs 304 crore. Over the years, the company has obtained reams of licences from the authorities to build a six-storey mall with three-floor basement. The mall is slated to be opened in 2014.

But Reliance had not accounted for the determined opposition from a group of local residents that calls itself the Citizens Allianceand includes economists, doctors, architects, lawyers and teachers.

This group, which held a 1,000 people-plus rally last month to protest the construction of the mall, says visitors to the proposed mall will choke traffic in the small bylanes of the locality and create pandemonium for its residents.

It claims that the residents were expecting the plot to be used for common facilities such as tennis courts, playgrounds and swimming pools, and that they were shocked to discover a mall being planned at the site. A DDA spokesperson, however, disputes this claim and says this plot was always reserved for commercial purpose in Delhi’s master plan.

A DDA spokesperson, however, disputes this claim and says this plot was always reserved for commercial purpose in Delhi’s master plan.

Citizens Alliance has in the past few months petitioned Delhi Chief Minister Shiela Dixit, BJP leader VK Malhotra as well as the Lt Governor of the city. While there has been speculation that Arvind Kejriwal was backing the protest, Ravi Kaimal, a prominent member of the Citizens Alliance, said this was not the case and the activist-turned-politician was not connected with their cause.

A person with direct knowledge of RIL’s retail plans said the company had decided to follow a ‘wait and watch’ attitude, after the protests gathered momentum. “The company is the process of executing several projects. It has plenty on its plate. It is in no hurry to complete the Alaknanda mall. All its documents for the plot are in order,” he said.

A Reliance official said the company was evaluating market conditions. “We can’t say anything as we are not sure on the return (on investment). The proposed mall is being discussed and if it is not suitable, we will postpone it,” he said.

An email sent to the Reliance spokesman on Monday did not elicit a response.

The construction of big supermarkets or malls in city centres is a controversial issue worldwide and has often led to face-offs between big retailers and local communities. Some big cities in the US such as New York and Washington DC have restricted the entry of Walmart, the world’s largest retail company. But the opposition being faced by Reliance is possibly the first anti-’big retail’ protest by local residents of a metro in India.

“In principal, if any project affects the communities, the communities should have the right to represent themselves and similarly the developer should also have right of its views. They should call an official negotiator and only then a conflict can be resolved,” said KT Ravindran, urban designer and former head of Delhi Urban Arts Commission.

Source http://economictimes.indiatimes.com/markets/real-estate/news/reliance-industries-ltd-to-go-slow-on-720000-sq-ft-alaknanda-mall-following-strong-protests/articleshow/21692003.cms