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Posted: Sep 03, 2018
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MUMBAI The government is planning to bring tenanted or cessed buildings and tenants of such buildings under the Real Estate (Regulation & Development) Act, 2016 (RERA),providing for the first time the same protection to these consumers as those available to other home buyers.
Kolte-Patil, the Pune-based firm which has been in business for two decades, had seen its revenue halve to Rs 107 crore in the year ended March 2009. Kalele projected that by March 2013 they’d reach Rs 800 crore in sales. A stunned silence followed. People in the room wondered whether he was being a tad too optimistic. The tenanted or cessed buildings that dot the landscape of many cities, especially Mumbai, house people who have been living for several decades and paying cheap and artificially depressed prices.
In 1989, when Rajesh Patil entered the business started by his father, he could have hardly imagined the many twists and turns it would take over the years. At that time the company would operate from Jalgaon in Maharashtra with a very simple business model: Buy land and build one-storey row houses.
The Maharashtra Real Estate Regulatory Authority MahaRERA has asked various planning authorities in the state to act against 293 real-estate projects that are being developed without requisite permissions, said a top official of the authority.
Mumbai is a city that has thousands of buildings that are in urgent need of being torn down and rebuilt. Members of the housing society select a developer who tears down the apartment block and reconstructs it. Existing owners get new and larger homes, while the developer gets houses to sell—a win-win for both.
In Pune, the company sells at an average of Rs 4,000 a sq ft. Land costs are Rs 1,000 a sq ft and construction costs amount to Rs 2,000 a sq ft. That means profits come from the last 25 percent of flats sold. Now, assuming it takes Kolte-Patil 18 months to sell 75 percent of flats, its working capital is stuck for at least 18 months.
- Pune Railway Station - 15 Km
- Pune International Airport - 10 Km
- Viman Nagar - 9 Km
- Magarpatta - 10 Km
- Phoenix Marketcity - 12.1 Km
- The Hyatt - 10 Km
- Symbiosis International University - 10 Km
- EON IT Park - 6 Km
Kolte Patil Shikhar
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