Ethical Issues With Globalization

Describe at least three ethical issues resulting from globalization. Well I hope that this is somewhat of what you’re looking for because I really didn’t understand the assignment. The first issue I notice would be the Western culture and corporations putting jobs and communities at a high risk while they exploit cheap labor in the poor countries. By doing this it increase the threat to the environment. The next one would be how America is always trading, buying or helping China. For example China has cars that run off of eclectic and want to know how to make our cars. America will bargain with China and all they want is to still any secrets from use that will help them in the long run. And the last one would be how America is always running to other people help trying to figure out ways to help them and we need help as well. I know they are making some types of deals with the other states or countries if we run to their rescue.Explain the ethical risks and consequences associated with global business. One of the ethical risks would be kidnapping and bodily threats made by the other countries the United States does business with. The way that the United States are set up to do their trading and buying their employing more people in other countries than they are here in the US. At one point and time I couldn’t see how that was possible but the US is not going to trust the other country with their goods so employees are needed.

Global Communications Worksheet Essay

Your supervisor wants to send a brief e-mail message, welcoming employees recently transferred to your department from different regions across the company, which are Brazil, Russia, India, and China. Create a clear and concise welcome message that would be appropriate for these groups of employees. Research the communication style of each of the following countries: Brazil Russia India China Transcribe the following welcome message for the employees from each country: I wanted to welcome you ASAP to our little family here in the States. It’s high time we shook hands in person and not just across the sea. I’m pleased as punch about getting to know you all, and I for one will do my level best to sell you on America. Complete the table below with your transcribed welcome messages. Also indicate whether each of the countries are more individualistic or relationship focused, and whether they are direct or indirect in their communication. Country Transcribe Welcome Message Relationship or Individualistic? Direct or Indirect? Brazil

Humans Place within the natural world Essay Example | Topics and Well Written Essays - 1000 words

Humans Place within the natural world - Essay Example In addition, artists such as Arthur Durand, Thomas Cole, and poet William Cullen Bryant also contributed greatly to past and modern understanding of the place of human being in the natural world. Because of the differing views and the subsequent contributions of these renowned artists, the world today has a better grasp and understanding of the presence and the purpose of human being on earth. People currently have a better perceptive of their purpose in life and the manner in which they should interact not only with humans and non-human animals but also with the rests of the natural world. What is more, the ideas advocated by these people in their artistic works have enabled humankind to make more sense of the social, cultural, economical, and social forces and structures in the civilized world. Although they contributed to the rich artistic history of the American people in different ways, Ralph Waldo, Henry David Thoreau, and Usher B. Durant contributed to the artistic history of America in almost similar manner. Waldo, an American essayist, lecturer, and poet, spearheaded the Transcendentalist movement in the USA the mid-19th century. In so doing, Waldo criticized the societal pressures that dogged peoples’ lives and emphasized individualism in his many published works. In fact, by championing Transcendentalism in many of his published works, Waldo slowly moved away from his contemporaries with whom he had professed rather radical religious and social beliefs. Among the core essences of life as perceived by Waldo included social, cultural, and religious ideas that he did not impose on people but gradually developed to endear people to these perceptions.

You could put any title you want Essay Example | Topics and Well Written Essays - 1250 words

You could put any title you want - Essay Example In the process, it permeates into six dimensions of a nation, namely, politics, culture, technology, finance and trade, national security, and ecology; eventually leading to disappearance of boundaries between these dimensions between different nations (Wells, 2004; p.181). As globalization is a process that has been occurring all over the world, different meanings and definitions have been created based on how people in different regions of the world relate to the changes it brings. In a holistic view, globalization’s reach and spread can be seen in all the six dimensions described by Friedman; however, its intensity, effect, and time vary in different regions of the world. For instance, impact of globalization is seen to be greater on the leading capitalist nations. The process has primarily impacted industrial, financial, economic, political, judicial, ecological, health-related and sociocultural aspects of nations of the world. In addition to these, its secondary effect can be seen in the form of inward and/or outward shift of skill set, knowledge base, talent and craftsmanship through continuous movement of human capital, mostly from developing and underdeveloped nations to the developed nations. Movement of many production and service industries during the last 2 to 3 decades has been in the opposite direction, i.e., from developed nations to others. The primary and secondary impacts are interrelated with each other. Considering impact of globalization on industries, researchers have attributed this to the rise of capitalist nations post Civil War (Sherman, 2005). Emerging corporations brought greater financial capital, economies of scale, and improved technology that gradually increased competition in the market. In order to sustain competitiveness, industries had to sort for means of profit maximization; this need resulted in further

Dominican Hair Essay Example | Topics and Well Written Essays - 500 words

Dominican Hair - Essay Example These groups include the; Taà ­nos (who are the Indigenous group), the Spanish (who were the colonizers), and the Africans (brought majorly as slaves into the country). Nonetheless, the Dominican nation has long ignored its heritage’s African part, in its place describing itself as â€Å"Not black,† This is so, even as people accept that almost everyone has some Black heritage and ancestry. This whole idea of national identity presents exacting challenges for Dominican immigrants to the United States, who are over and over again perceived by Americans as black and forced to negotiate for new ethnical and racial landscape. According to Ginetta E. B. Candelario  Ã¢â‚¬Å"the Dominican nation has all along selected to disregard the African customs and traditions†. She says that, the social and racial dynamics of the Dominican identity is majorly promoted by staff, customers and owners of salons. This is in particular with consideration to the concepts of African Vs European hair, further categorized as â€Å"bad† and â€Å"good† hair respectively. Candelario shows how clients and staff of salons had preferences to certain hair styles which were in photograph form in books. This is an exacting proof and confirmation of the anti- black preferences by the Dominican, and appraisal of the whites. In spite of this, what these women found as being most gorgeous and eye-catching were the people whom they analyze as having the signs of ethnic and cultural mixture connected to Spanish-speaking countries, and in particular those of Latin America. Candelario does well in trying to contradict the entrenched whiteness preference by showing various occasions when these preferences were disregarded, as well as by showing that there was an existence of diverse sorts of whiteness. Candelario shows that, Salons were the principal places where women were encouraged to internalize and endorse certain manners. The manner of seeing and doing things through racial

Patient Teaching Information handout Essay Example | Topics and Well Written Essays - 1000 words

Patient Teaching Information handout - Essay Example The changes that affect bowel movement result in discomfort and other abnormalities that are identified as symptoms. These also offer a basis for understanding IBS and its diagnosis. According to Anderson, Keller, Pehl, Schemann, Preiss, and Layer, existence of three conditions defines the disorder and guides its diagnosis. The authors explain that existence of IBS is a consequence of three factors. The patient must have reported chronic symptoms that a physician associates with the gut and that result in abnormal bowel characteristics. The symptoms must further be significant to compel a patient to seek medical attention or to cause the patient to worry and must have adverse effects on the patient’s quality of life. Further, it must be established that the reported symptoms are not associated with any other health complication. The authors identifies â€Å"diarrhea,† â€Å"constipation,† â€Å"pain,† â€Å"bloating, and distension,† as the major sy mptoms towards diagnosis, though many other complications may initiate the symptoms (Anderson, et. Al., 2011, p. 755). A consideration of abdominal pain that ceases upon defecation or changes with bowel movements together with at least any two of the following symptoms further supports existence of irritable bowel syndrome. The symptoms are changes in tool passage, â€Å"abdominal bloating,† deterioration of symptoms after meals, and â€Å"passage of mucus† (National Institute for Health and Clinical Experience, 2008, p. 12). Existence of these basic symptoms strongly suggests presence of the bowel disorder and tests are likely to confirm diagnosis. Reliance of the symptoms alone is enhanced by evaluation of â€Å"red flags,† a term that refers to those factors that indicate existence of a secondary complication to Irritable Bowel Syndrome. Unexplained loss of weight that exceeds seven pounds, problems with swallowing, blood spots in the stool, abnormal stool th at may be â€Å"pale, very smelly, and difficult to flush away† are of the symptoms that may indicate existence of secondary complications (Talley, 2006, p. 26). Other indicators of secondary complications are â€Å"repeated vomiting, fever,† late onset of the symptoms and require tests for accurate diagnosis of IBS (Talley, 2006, p. 26). Genetic susceptibility to cancer, disturbed sleep because of symptoms and severe diarrhea are other indicators of secondary complications (Talley, 2006). The red flags could results from such complications as â€Å"chronic infectious enterocotilis,† â€Å"Crohn’s disease, ulcerative colitis, celiac disease,† â€Å"gastrointestinal tumors, mesenteric ischemia, porphyria, endometriosis, and ovarian tumor† (Anderson, et. al., 2011, p. 753, 754). Clinical tests such as full blood count, erythrocyte sedimentation rate, c-reactive protein and antibody testing for celiac disease are conducted to eliminate possibil ity of these complications (National Institute for Health and Clinical Experience, 2008, p. 11). Is the tests are negative for their respective complications then this confirms diagnosis of Irritable Bowel Syndrome in a patient. There is no cure for the disorder but treatment strategies exist for managing the symptoms. Eating behavior is one of the treatment methods and involves application

Astronomy Essay Example | Topics and Well Written Essays - 750 words - 4

Astronomy - Essay Example Global warming due to climate change is recognized by many individuals, but big business, politicians, and deniers have caused serious doubt among some. The five following current articles reviewed show the perception of today’s world about the climate change occurring. â€Å"Climate change may trigger earthquakes and volcanoes† is an article about the link between volcanoes and earthquakes and climate change. Even slight climate changes can cause responses of the earth’s crust. â€Å"Evidence of a link between climate and the rumblings of the crust has been around for years, but only now is it becoming clear just how sensitive rock can be to the air, ice and water aboveâ€Å" (Fisher). With the warming of the earth, the sensitive crust is erupting more than other. This article showed how new technology is proving the link between earthquakes and volcanoes due to global warming. It also presents the idea the whole world is already being affected by global warming, not just the Artic regions. Global warming affects the whole Earth. â€Å"Scientists: Pace of Climate Change Exceeds Estimates† is article reviewing the expectations of world scientists about global warming and the rapid climate change. Scientists are now finding out their original estimates of climate change and global warming. At first the predictions were bad, but more recently the predictions have become worse. Scientists had not planned on the earth’s reaction to climate change worsening the affects of the global warming. The cycle of warming and worsening has already begun. Scientists have found: The permafrost holds 1 trillion tons of carbon, and as much as 10 percent of that could be released this century, Field said. Along with carbon dioxide melting permafrost releases methane, which is 25 times more potent a greenhouse gas than carbon dioxide. In â€Å"Address threat of climate change† a passionate plea for the world to take action to stop climate change is asserted. Since

Analysis paper Case Study Example | Topics and Well Written Essays - 500 words

Analysis paper - Case Study Example Jane has been motivated to undertake treatment in seeking to ensure she recovers from the condition. This changes the behaviour patterns in relation to the ability for the person to meet their expectations. According to the Freud’s theory, Jane is undergoing a subconscious minds situation. She believes that the traditional medicine can be able to cure her as opposed to the medication which people. Unconscious mind includes beliefs which people hold and which come from religious elements and they are affected by the subconscious mind. These beliefs have been fundamental in shaping the belief of the patient. The patient is being held by the religious beliefs in seeking medication and believes the traditional healers have the capability to perform better than the other medication. One of the fundamental problem which is facing the care team is the process of understanding the thoughts and perceptions of the patient. The diagnostic approaches have been made difficult by the mixed reactions of the patient as a result of religious beliefs. Various therapeutic communication techniques can be utilised in undertaking the treatment of the patient and these will be critical to overcoming the difficulties being experienced in presenting a working intervention to the patient (Dossey & Keegan, 2012). These communications therapies have a significant effect in ensuring that the patient is capable of accepting the medical interventions which will be applied by the medial team. The following approaches would be suggested for Jane Using silence – Jane normally drinks with friends and does not appear to have any issues in relation to that fact. The use of silence by the professional medical teams can enable her to provide information voluntarily which will be able to assist the medical teams to understand her behaviour. Encouraging description of

Reflection on Poems The Things They Carried, Dulce et Decorum Est, Essay

Reflection on Poems The Things They Carried, Dulce et Decorum Est, Facing It, War is Kind and The Red Convertible - Essay Example For example, The Things They Carried by O’Brien taught me to sympathize people, who had participated in Vietnam War. The author stresses that soldiers always carry with them the heaviest weight – thoughts and memories about cruel battles and pain. They carry this weight even when the war is over. As for Dulce et Decorum Est by Wilfred Owen, it also helps to look at wars closer than I used to. In this poem the author describes all the horrors of war in much detail. He shows soldiers’ poor life and impossibility to have a rest. It is difficult to hold back a tear while reading the lines about the soldier who cannot escape from a gas attack. In Facing It by Yusef Komunyaka the reader’s attention is focused on the theme of war and death. The speaker faces the Vietnam War Memorial and understands that he is a part of that war because he participated in it. He remembers all the people, who died during the war and wishes it had never happened in his life. The Red Convertible makes the reader face an awful situation that happens to the poem’s speaker.

Marketing mix of Louis Vuitton Assignment Example | Topics and Well Written Essays - 1000 words

Marketing mix of Louis Vuitton - Assignment Example He was born in France in 1821 and joined to serve the emperor in 1852. Louis was a member of working class family being his forefathers as expert carpenters, milliners and farmers. The service period which he spent with the emperor introduced him to the styles of elite and the royal clientele who enjoyed his services even after his death. The Louis Vuitton Malletier (LVM) was established in 1854 in Paris, which is now considered the world-renowned lifestyle brand dealing in luxury leather (Louis Vuitton, 2013). The success story of the brand clearly reflects that it was not a coincidence rather Louis Vuitton achieved this peak position in the business world through the use of perfect marketing strategies (Peter Finocchiaro, 2010). LVM has always been very creative in introducing new products, since the start it has been catering to the needs the customers with the supreme quality services. LVM has been successfully using the marketing mix which led the company to acquire the second p lace in the Luxury Marketer Awards of 2010. The brand has utilized the multichannel strategies which have bridged the gap between history and status of French Fashion (Peter Finocchiaro, 2010) as per the BBC News LVM has increased its sales in the first three months of 2011 by 17%. Researchers have given the credit of successful operations of LVM to its Marketing Mix (Catarina Duque, 2012). Marketing Mix After the selection of the target market the prime concern of the management is to set the principles for marketing mix which is a combination of product strategies, pricing strategies, placing strategies and promotion strategies. These all are formulated on the basis of the preferences of target market (Louis E. Boone et al., 2011). Product LV has a wide range of products including leader goods, trunks, shoes, accessories, ornaments, watches, sunglasses and books. Initially the business was started with trunks and accessories for the travelers back in 1854. At that time people used to travel mostly through sea which required sufficient accessories. But now the LV is more concentrating towards the quality of products as the customers are more selective at present. The products of LV’s maintain high prestige and value among its customers which encourage them to buy the high priced goods (Catarina Duque, 2012). Price The distribution channel of LV enables it to control its prices. The management has complete control over the brand and the variables which might affect its operations such as the market rates, suppliers, distributers, etc. The main pricing strategy revolves around the quality maintenance which automatically leads to high price and due to this the products are never available on discounts or sale. However, recently the company has come up with some cheaper products which are offered to the exclusive customers. In countries other than France, LV offers its products with two different ranges; one is for the customers who can only afford to pay and the second is for the highly lavish and fashionable customers who actually look forward to buy LV labeled products. By making these two price ranges the company is able to approach the customers and also to differentiate between them (Catarina Duque, 2012). Place The LV’s products are exclusively available at their stores only which has added importance to its value for the customers as well as for the stakeholders who remain continuously engaged with the business

Growing Acme Fireworks Essay Example for Free

Growing Acme Fireworks Essay There is much to consider when expanding a business. How will you make, market, and distribute your product. Are you willing to take full liability for your product and understanding the legalities of what happens if your product is defective? Once that has been established, it’s important to make sure that your business dealings are in order. The strength of the contract and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of business entity the company will select especially if the company starts out small and looks to expand. Which entity will best serve the growth of the company such as Acme Fireworks? Some years ago I watched a movie called fight club. The movie dealt with a ton of social issues. One of the characters worked for a car company that would fly out their employers out to the areas where there were car accidents. They worked almost as an insurance adjuster that would come and appraise a vehicle once it has been in a wreck and determine, based on the damages how much they would award the car owner. However in the case here the employees would view accidents all over the country and decide if it would cost more to recall the product or pay the total fee for the said accident. If the cost was too much to do a recall then the company would take responsibility for the accident if a law suit is brought forth, however if it is cheaper to recall then the necessary actions would be taken to recall the malfunctioned part. Knowing this it is important that we label the products and its proper uses so if there is an issue then it can be said that the manufacture warned the consumer. In this way, any injury would not be the fault of Acme Fireworks, but the consumer. Just as the example with the cars above, if someone lights a firecracker in a closet and the firecracker goes off and injures the person then the company is not liable being that it is neglect  on the part of the consumer (Rogers, 2012). Now if the same individual uses the firework outside in an open area as is stated on the label and they light the firecracker and it goes off in their hand as soon as the fuse is lit, then that is negligence on behalf of Acme. It must be understood that regardless of the product used, all products have the potential to cause consumer harm (Anthony, 1995). So that is why it is important to make sure everything from the development of the fireworks to the warning labels have been gone over to make sure that the product is not faulty. If a fuse is too short in a product or if the material used to cause the firecracker to explode is too much then that is a defectively manufactured product. Another issue could also be the type of firework that is made. Let’s say for instance that one of the products has the tendency to go off in extreme temperatures and is purchased and placed in areas of storage when the temperatures extreme then that is negligence on the consumer, however if the consumer was not made aware of this by the manufacture then the liability falls to the company. I recall about three years ago when I was in a car accident. Our brakes that we had from the car company had been recalled. We were sent notices in the mail, phone, and email about the recall and were told to bring our vehicle in to make sure the brakes were not faulty and if they were they could be fixed free of charge. The deadline came and went a after it expired I was in a car wreck. I was making a turn in the rain and slammed my brakes and they were locked. I had the repair work done on the vehicle and was told that the brakes were faulty. I informed the dealership of the issue and was told that the company was no longer liable because the deadline had passed. I was outraged and wanted to file a lawsuit against the company, however there are deadlines and limitations to when a suit can be filed and in the state of Georgia, you have up to a year to file such claim. I missed it by 3 months and was unable to file suit against the manufacturer (Day, 2014). Another import issues are the contracts. There are 5 basic elements to a contract: Offer, acceptance, Consideration, Legality and Capacity (Rogers, 2012). Other retailers stated to the owner of Acme Fireworks that they wanted a certain amount of orders filled on a regular bases for an undisclosed time frame and a price was agreed upon, this is the acceptance and offer portion of the contract. The offeror, which in this case are the large retailers, makes an offer which once accepted by  Acme Fireworks, creates a binding contract. Acceptance must be in some way agreed b y all participants; it may be verbal, symbolical, oral or written. The came from the retailers, they had a want from Acme to manufacture a product for them at a certain cost (Stim, 2010). Consideration is another element of a contract and what consideration brings to the table ask the whys and what’s: Why are we entering the contract and are you receiving? In this case Acme gets more money by being able to produce its products and grow their brand and the other retailers receive fireworks from Acme. However in this instance the owner of Acme may have taken on a task bigger than himself. This is a company with only 15 workers and to fill the orders with the new retailers, more employees need to be hired. Not only do they need to be hired, but they need to be trained as well. This must be done while filling out the orders. Here there is not much consideration given by the owner. How many employees do we need, how much will the work flow increase, and how long will we have a contract with the other retailers. No time period was given for the contract. Will this just be one order or is this something that will go on annually. What happen if the orders are not filled on a timely manner is the contract then void? Another question to ask is the capacity and legality of a contract. Capacity to contract means the legal competence of a person to enter into a valid contract. Usually the capacity to contract refers to the capacity to enter into a legal agreement and the competence to perfor m some act. The basic element to enter into a valid contract is that s/he much has a sound mind. Recently there was an issue with an owner of the L.A. Clippers making comments about minorities. The group of owners in the league wanted him to sell his team. He didn’t want to sell and wanted to fight it, however it came out that he does not have the mental faculties to run the organization or make business decision so that responsibility was given to his wife. It came out that he has dementia, but he is fighting this claim as well. Once it is established if he can mentally make these decisions then the wife will not be able to go into discussions to purchase the franchise legally. Acme has 15 full time employees as it stands now. This is without the orders for the new retailers. What we know is that the owner guaranteed that we can take on more business, not considering the staff that we currently have. For the orders to be filled we would have to take on more labor force. Before this  can be done we have to first consider what we have now. We currently have 15 people employed by Acme, to fill the new orders; do we take on double or triple the size? If we do take on more people, would it be something on permanent or temporary ba ses? Employment is very important when business is involved. There are many things to consider when a workforce is involved. When it comes with dealing with explosives it is important that we consider finding individuals who have experience with working with explosives and are well trained as well. This will cost more money for the company when it comes to hiring individuals that are trained to handle explosives. So these can’t be regular workers that one can find at a temp agency. However, we do not know how long to hire these individuals because there is no clarity as to the length of the contract, so the types of workers that we would have to hire would have to come through labor force agencies (Smith, V., Neuwirth, E.B., 2009). The great thing about a temp agency is the large pool of people that they have to choose from. There are times when many corporations view temp agency workers as people who are unskilled, however with the types of agencies that are around today, they can find highly skilled individuals that many companies wo uld be hard pressed to do, being that they would have to exhaust many resources to do so. It has to be understood that this business started out of a garage a couple years ago and is now grown into a company that employees 15 people on staff. Now with the new revenue that will come into the company, Acme Fireworks will have to expand. Acme is a sole proprietorship owned by one individual. This is the simplest organization structure to have. There is less paperwork as well as the tax implications. If there is a loss for that year you can use this loss to offset your other income on your personal return (Fishman, 2014). Though operating as a sole proprietorship is easier, it can also have some setbacks as well. The main problem is that there’s no separation between the individual and the business with the sole proprietorship. That means that if something should happen in the business, like taking on huge contracts with no clear time line and limited planning and staff, you’d be personally liable. For example, if Acme Fireworks business is ever sued or runs int o financial trouble, the owner would be personally on the hook and creditors and lawsuits can come after your  personal assets. That is an issue because if the company profits go to offset the debt, there is little to no money to run the company properly, expand, or take care of the employees. This is just one of the many things to consider when changing your business entity as well as deciding on what is best for the company as a whole. Acme Fireworks started out of a garage, like most businesses it is difficult to raise capital or arranging long term financing because of fewer assets. Also there is one voice and one view which can scare big business opportunities away. This is why a Sole Proprietorship for the future of Acme Fireworks would not be feasible. Being in this type of entity makes it hard to expand. To grow and expand a company needs a formal business structure. So the choice is which entity to choose? With such an undertaking in such a short time, the risk would cause a sole owner to want to form an LLC or incorporate his or her business. In the case of Acme Fireworks, it would be best to change the business entity to a corporation. With the promise of product to these new large retailers, Acme Fireworks would need more capital to grow the business as well as purchase the necessary material to make sure the new orders are able to fill as well as fulfilling previous obligations to the other retailers that we have business with. Choosing this entity protects the owner from legal liability, gives the ability to attract more investors through stocks, and has more structure where there is not just one voice for the business. The juxtaposition to this is the tax liability and the time and how much it cost to incorporate, unlike a sole proprietorship, incorporating a business takes much more paperwork, as well as fee’s that need to be paid to the state the business is in. One of the silver linings for the employees is that even if something happens to the owner, or if he or she retires, the corporation will still be i n tact unlike sole proprietorships. There are many things to consider when it comes to running a company, expanding it, and watching it flourish. There are many businesses that started out in a small garage, Steve Jobs, Bill Gates, even men like John D. Rockefeller. However, growth cannot take place without determination and risk. The best way to make sure that your ready to expand is to be sure where you want to take the company and have a sound plan as to the steps one will take to get there. Once you have a vision and financial backing the  next step is to decide which type of business entity you want to be. There are many entities to choose from and no one is greater than the next. It’s all about how you want to mold and model your business. Reference: Anthony, S. (1995). Warning: marketers must do better with product warnings. Marketing News, (13). 4. DAY, J. A. (2014). Protecting Yourself from Statutes of Repose. Tennessee Bar Journal, 50(1), 33-34. Fishman, S. (2014). CHAPTER 2: Choosing the Legal Form for Your Business. In , Working for Yourself (pp. 15-54). Nolo. Smith, V., Neuwirth, E. B. (2009). Temporary Help Agencies and the Making of a New Employment Practice. Academy Of Management Perspectives, 23(1), 56-72. doi:10.5465/AMP.2009.37008003

“Pretty Little Liars” by Sara Shepard Essay Example for Free

â€Å"Pretty Little Liars† by Sara Shepard Essay Freud believes that it is part of everyone’s personality to seek pleasure through violence; it is part of the â€Å"ID.† However, the ego negotiates between the ID and superego, meaning the majority of people can regulate between the morals of society and their own pleasures. I agree with this, as does Sara Shepard, the author of â€Å"Pretty Little Liars.† I believe that people who seek pleasure through violence are ill minded, and have psychological issues, due to the fact that the ego should be able to tell the brain to follow the morals of society. ‘A,’ a character from Pretty Little Liars, nobody can solve the mystery regarding who exactly ‘A’ is, however they are ill-minded, and seek pleasure in harming others as a joke. Ill-minded people like this are evil. Most people follow the morals of society, but still enjoy violence. How the person goes about enjoying it is what differs them from everyone else. For example, an individual could can enjoy watching crime shows, such as CSI, Criminal Minds, Law and Order and many others. Even though they enjoy these shows it does not mean that they would go out and seek to hurt someone the way the criminals do to their victims in the show. In â€Å"Pretty Little Liars,† Aria, Hannah, Emily, and Spencer are all good people. They do not go seeking violence, they do not seek harm. This is the way most people in society are. These ‘good people’ have a good ego. Meaning it is negotiating their wants to work with the morals of society. A very select few are ill-minded wishing only harm upon others. ‘A’ from â€Å"Pretty Little Liars† is one of these select few. She or he makes it their goal to ruin the lives of Aria, Hannah, Emily and Spencer. For example, Aria gains an interest in a man during the summer; little did she know he was her new English teacher. They keep it a secret between only them; they were not going to let that tare their new love for each other apart. However, ‘A,’ knows everything. They know how Aria’s dad (a teacher) had an affair on his wife years ago. Due to the fact that Aria is keeping her relationship a secret she receives a text message, signed A, saying, â€Å"Aria, Maybe he fools with students all the time. A lot of teachers do†¦Ã¢â‚¬ ¦. Just ask your dad! –A† (Shepard, page 139). This quote shows how A knows everything. They know the girls’ past, and use it against them. ‘A’ is a murderer, they killed Allison during the beginning of the novel, and Ian during the end. ‘A’ did not intend to kill Ian but meant to kill Spencer. The girls have no understanding as to why they are ‘A’s’ targets. They are good people, not intending any harm. This is not a normal person. Innocent people are killed every day because people are sick. They seek pleasure in watching the suffering of an innocent individual. It is not normal or moral, for people to be this evil. I can speak on a personal level. I do not seek pleasure through violence, I do enjoy crime shows, but does that make me a bad person? No. Although someone has enjoyed taking their pleasure out on me by violence, and those that do that to an innocent person are evil. I do not think that the people that look for pleasure in violence truly understand how they affect a person. I can relate to the girls in Pretty Little Liars because they seek help, sometimes people will try and help you, other times it’s a hard concept for many to believe. Emily, Aria, Hannah and Spencer cannot trust anybody the same because of the horror and threats they are encountering that affect their daily lives. Just as I cannot do a lot of things that I use to do prior to my incident. Nothing is the same. People that seek violence do not realize what they are actually doing to other people because they only seek self-pleasure, they are ill-minded. There is always going to be a psychological battle between the ID and superego, however the ego’s ability to negotiate between the two is what will make or break an individual. There are many ill-minded people in our world, there is help. ‘A’ is an evil person, just like many in our world seeking pleasure in selfish ways because they don’t know any different. Their effects on people could be unfortunate. Not everyone is made evil, it’s a psychological illness. There is good in this world. Works Cited Shepard, Sara. Pretty Little Loars. New York: Harper Teen, 2006. 139. Print.

Emerging Real Estate Market in Mumbai

Emerging Real Estate Market in Mumbai Introduction: India has firmed up its place in the world business space prompting global business houses to sit up and take a fresh view on India as a business and investment destination. In the last two years, Indian economy has grown well despite nature’s fury or other global adverse events. India is fast establishing itself as an alternative to China in a variety of sectors, particularly IT-ITES, manufacturing, and real estate. The most spectacular resurgence has been that of the real estate sector, which is back in business with a bang. New projects, superior quality product, new growth corridors, increased infrastructure spending, falling cost of finance and interest, and growing capacity of common man in the key reasons behind the steady growth in real estate market. With stock market being highly volatile, investment in real estate has begun to look attractive and competitive with typical yields of 10-12% per annum are achievable, even though specific return is always linked to property specific factors, dynamics of real estate market and the overall economic performance. Real estate is fast turning out to be a compulsive investment bet as compared to other investment vehicles such as capital and debt markets, bullion market etc. It attracts investors by offering a possibility of stable income yields, moderate capital appreciation, tax structuring benefits and higher security being tangible asset. With these prime factors there are several micro factors responsible for the returns on investment and those are location of the property in macro and micro context, the usage of property, the quality of tenant, the capital value and achievable rental, the prevailing structures of property tax and stamp duty. The study includes the macro economic factors that make India a favourable investment destination. The purpose of the study is to give a comprehensive overview of the emerging Real Estate market of Mumbai. Today’s market is at a stage of ambiguity so a detailed study is required in this respect. In the final report detailed analysis will be carried out by fragmenting the market into Residential, Commercial and Retail space. An overview of each of these markets is included in the current report. The study will also include what are the various financing options in the emerging markets currently. A detailed survey will be carried out for the final report based on a questionnaire and will be send out to the various players ( Private Equity funds, Domestic Financial institutions, Local Real Estate Developers and Property Consultants to assess the various options available for Fund raising. Currently an introduction is also included on the same. Characteristics of the Real Estate Market in India: With reference to the availability of infrastructure facilities, following cities are currently attracting MNCs/corporate/real estate developers: Tier I cities, Mumbai (Commercial hub), Delhi (Political hub) and Bangalore (Technological hub): Preferred option for many new market entrants Command the highest international profiles and significant proportion of FDI Offer qualified labour pool and the best infrastructure facilities Exhibit development of sub-urban commercial real estate Yield of 9.5 – 10% (Real Estate Sector – The India Story Submitted by Miss Sonia Sahni Asst Manager Corporate and Investment Banking, ABN AMRO Bank, Nariman Point, Mumbai) 2.0 Macro-Economic Factors India: Background of the Economy of India during 2008 and early 2009: Last year 2008 was quiet a setback for the real-estate sector in India after the boom of the previous three years where the property market registered a return of more than 30-40% every year. The sector had faced a down trend where the property prices corrected by over 30%. This was due to the sub-prime crisis in the United States and also the correcting Capital Markets and bankruptcy of the MNC’s and the Banks. This resulted in loss of liquidity and hence a fall in demand. In August 2008 the inflation reached as high as 13% which forced a knee jerk reaction from the RBI (Reserve Bank of India) to cut the cash reserve ratio, the repo and the reverse repo rate which warranted the Banks to lend less and as a result of the further shortage in liquidity the real-estate market took a plunge. However, the economy has recovered by leaps and bounce and which is reflected by the chart below: Sam Mahtani, emerging equities manager at FC, is confident on Indias economic prospects. Over the next 10 years, UBS estimates economic activity in India will increase by around 8.5% a year, a rate comparable with China and beyond the global average. We think that this growth rate could be achievable if Indian policymakers start to undertake structural reforms in the economy. Over the next five years, the government is committing an estimated US$500 billion to road, rail, port and other vitally needed upgrades. If the right legislation is put in place and managed effectively, this could represent the springboard for long-term economic growth rates in excess of Chinas†, he believes. GDP of India: The chart shows that the GDP growth rate of India and China are far ahead than any other country in the world. This shows that the standard of living in the country is high. GDP reflects the total income, the total output and the total expenditure of the country. The economy of the country is the twelfth largest in the world as per the recent market exchange rate and it is ranked number four as per purchasing power parity. It is the 2nd fastest growing economy in the world. The service sector of India contributes more than 50% to the GDP and real-Estate sector is the third largest among it. Mumbai is the sole largest contributor to the national GDP and the economics of Mumbai further supports the fact. The above figure shows the long term growth rate of GDP of India against the Developed counties of the World. Economy of India (mid 2009) and its impact on Real Estate: However the economic condition of the country has improved in the last year. This was a great precedent for the Real-estate sector in India and especially Mumbai. It has always been witnessed during recession that the financial cities of the world take the hardest hit but on the other hand recovery is quickly as well. The inflation rate in India is 0.30% on 1st December 2009. The CRR is 5% and repo rate is 4.75% and reverse repo rate 3.25% which is commendable and which has increased liquidity in the market and as a result of this the property prices have gone up in the country. The stock market has recovered exceedingly well and it had an almost 50% rise than the last year’s index. This has further increased the confidence amongst the analysts and the investors. In Mumbai the property rates have accelerated and it is not far behind the rates which were witnessed during the boom period. Mumbai has seen a constant price in the property prices since mid 2009 due to the strengthe ning of the economy. Source: CBRE report 2009 By 2030 India will need up to 10 million new housing units per year. Rapid population growth, rising incomes, decreasing household sizes and a housing shortage of currently 20 million units will call for extensive residential construction. The financing of owner-occupied housing in particular holds out enormous market potential. (Deutsche Bank Report May 8, 2006). Population in India: India is the 2nd most populated country in the world at present after China. However, as per the numbers projected in a United Nations Report states that the Indian population would be more than the Chinese population by 2050. (Population of India is also set to take over China by 2050 as per the UN report.) 1.0 MUMBAI – OVERVIEW: Mumbai, the capital city of the state of Maharashtra, is the one of the largest metropolis in India. Known as the financial capital of the country, the city contributes almost 5% of India’s GDP. It is a multi-functional city with a vast array of economic opportunities, which has resulted in attracting a large migratory population from all over. The city sports a highly cosmopolitan environment with an intricate urban structure. Mumbai has long been home to several large multinational companies and is invariably the first choice for a new organization entering India. Demographic Pattern: Greater Mumbai accounts for 13% of Maharashtra’s population and 1.2% of India’s population[1]. The rate of growth of population has gone down but has been higher than the growth rate of Maharashtra. Source: Census of India Over 1901-71 period, the population in the island city was steadily increasing and was more than that of the suburbs. However, during the last 3 decades the population growth in the island city has been negligible whereas that in the suburbs is increasing at a rapid rate. Among the suburbs, the western suburbs (ward H, K, P and R) are more densely populated than the Eastern suburbs (ward L, M, N, S and T). The following graph indicates the projected population growth in Greater Mumbai. The above graph further illustrates that the population of Mumbai is set of increase manifoldly, as against the other Metros of the country. 2.0 MUMBAI REAL ESTATE MARKET OVERVIEW: The island city of Mumbai is the commercial capital and economic growth engine of India. Originally composed of seven small islands, land reclamation and infill carried out during the 18th and 19th century integrated these islands into a continuous peninsula (Deshpande and Arunachalam,1981). Beginning as a seaport on the west coast of the Indian peninsula, Mumbai has steadily diversified its economic base to include value-added manufacturing and financial services. The country’s central bank, the Reserve Bank of India and two of India’s largest stock exchanges, the Bombay Stock Exchange and the National Stock Exchange are all located here. Mumbai accounts for one-tenth of factory employment and value-added manufacturing, while the port handles more than one-third of the total value of foreign trade (Deshpande, 1996), making the Brihan Mumbai Municipal Corporation one of the richest, with a budget of more than USD 1.2 billion (Mohan, 2003), exceeding the budget of nine S tates and Union Territories of India. This economic growth is sustained by and in turn, drives the steady influx of migrants from rural and regional centres of the country. Consequently, the Mumbai Metropolitan Region (MMR) is one of the fastest growing regions of India. Its population increased from 7.7 million in 1971 to 18.3 million in 2001 (Census of India, 2001) and is projected to increase to 22.4 million by 2011(MMRDA, 1999). (Journal on HOUSING TENURE FOR THE URBAN POOR: A CASE STUDY OF MUMBAI CITY by Gaurang Desai and Madhura Yadav). Mumbai has gained immense prominence as one of the growing corporate and IT destinations in India. The Mumbai real estate scenario has been reflective of the burgeoning real estate sector of the country. The city has a mature and demand-led market driven by end users. Investors and HNIs have also been actively investing in various pre-leased properties with insurance, banking, IT/ITES, residential and retail sector occupants. Overall, there has been an increase in demand as well as supply and an appreciation in the real estate values across various micro markets in the city. Economy of Mumbai: The per capita income of the city is Rs 66,360 which is three times higher than the national income. It contributes 1/3 rd of the total income tax collection of the country. It contributes nearly 60 % of the total income generated from custom duty of the country. 40 % of India’s foreign trade. Corporate tax collection of the city is Rs 40 billion. 20 % of the total excise duty collection of the country. Mumbai Metropolitan region generates 5 % of the total GDP of the country. The island city of Mumbai is the economic growth engine and commercial capital of India. A combination of in-migration combined with a severe land shortage has resulted in Mumbai having one of the most expensive real estate in the world. As a result the city faces housing crisis with an estimated 60% of its total population living in slums, adopting multiple informal housing tenures. Property Index of Mumbai: Database:This index is based on minimum database size of 20,000 data points every month and the analysis has been drawn over a period starting Jan’09. The prices of properties are obtained across micro-markets through property listings on the website as well as based on nationwide sales force. Index Algorithm:The complex algorithm takes into account the property prices as base and then factors in the demand and supply of residential properties for each of the cities covered by it. Care has been taken to give weight age to cities in line with the size of underlying property market. (Makaan.com) The Real-Estate market of Mumbai can be divided into three types- Commercial Residential Retail Mall 4.1 Commercial Real Estate Market: Mumbai’s commercial market is divided into its traditional business districts and the recently developed business addresses. The Central Business District (CBD) of the city is located in South Mumbai and comprises of: Nariman Point – Often said to be the ‘Manhattan of India’, Nariman Point has traditionally been the most attractive location for international companies, in particular international investment banks, insurance companies and consulting firms. The areas concentrated within a radius of 1.5-2 km around the CBD are termed as the off-CBD locations, which include: Churchgate /Fort/ Fountain – This district has traditionally housed the city’s Business and Government establishments. It also houses numerous National and International Banks. Cuffe Parade – Primarily an up market residential area with a host of high-rise buildings. Some notable commercial buildings like the World Trade Centre and Maker Towers are located here. Ballard Estate – A prime commercial area where the buildings have European Renaissance architecture. The off-CBD business centres of the city have expanded to include a number of areas mostly oriented towards central Mumbai: Lower Parel: This industrial belt of Mumbai is transforming itself into a commercial hub of the city. This area is being developed on what used to be the textile mills. With mill land being freed for commercial, retail and residential development, the Lower Parel area will see massive supply of space. Currently, there are a number of retail, entertainment and advertising companies located in Lower Parel. High Street at Phoenix Mills is the most prominent retail development in this region. Worli-Prabhadevi: The Worli–Prabhadevi area has been a conventional stronghold of number of corporate offices. Besides, there is also the presence of two malls – Crossroads and Atria, in the stretch. The ongoing Bandra-Worli sea link is expected to give a further fillip to this area. The Suburban Business Districts (SBDs) of the city comprise of the following locations: (Image of the Bandra Kurla Complex) The Bandra-Kurla belt: The Bandra-Kurla Complex (BKC), which has been developed as an alternative business district to the CBD, has attracted a number of corporate. ICICI, National Stock Exchange, Wockhardt and ILFS are some of the important corporate located here. The Andheri-Kurla Belt: This area is also an upcoming location of choice for IT/ITES companies, banks, insurance companies, etc. Some of the sought after Grade ‘A’ buildings in this belt are ‘Technopolis’ and ‘Solitaire Corporate Park’ where a number of corporate are relocating. The Malad-Goregaon Belt: The Malad Goregoan belt has become the preferred destination for IT/ITES companies due to the availability of large floor plates at competitive rentals. The superior quality of buildings offered at MindSpace is another motivating factor for technology companies looking for world-class amenities to come here. The Powai Belt: Another suburb, the Powai belt is scoring well on the IT/ITeS front. The pricing in rental terms is similar for Powai and Malad. There will be 600 new shopping centres by 2010. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%. (Deutsche Bank Research 6 may,2006) The Peripheral Business District (PBD) of the city consists of: Navi Mumbai: Navi Mumbai is being developed as a counter magnet to Mumbai, with the basic objective of curbing further congestion in the city. The potential target audience, apart from the existing residents, arises from the 40,000+ IT/ITES industry workforce travelling to Navi Mumbai daily. Consequently, the government has undertaken a number of initiatives to promote further development of IT ITES sector in Maharashtra state. These include formulation of a progressive sector-specific policy, development of IT parks and development of the â€Å"Knowledge Corridor† between Navi Mumbai and Pune. Sector 17 of Vashi and CBD Belapur were developed as the prime commercial areas for Navi Mumbai. A number of corporate have moved to Navi Mumbai, the largest amongst them being Reliance Industries. Millennium Business Park at Mahape and Airoli Knowledge Park at Airoli, developed by MIDC houses several IT/ITES companies like Aptech, CMS computers, Datamatics, Mastek, TCS, Patni etc 4.2 Residential Market Scenario: Residential real estate in Mumbai is today amongst the most expensive in the country. The key residential areas in the city are as follows: The south and central locations of the city like Colaba, Napean Sea Road, Worli, Breach Candy and Pedder Road are the most preferred locations for leased accommodation for the senior and expatriate staff. Amongst the key suburban locations, Bandra and Malad in the northwest and Powai in the northeast are equally preferred due to proximity from the emerging commercial/office locations. Other suburban residential micro-markets of Andheri, Goregaon and Mulund also fall in the preferred category. In fact, these areas are witnessing fresh construction activity with projects from prominent residential developers like K.Raheja, Oberoi Constructions, Royal Palms and the Runwal Group. Luxury housing projects, which have been traditionally concentrated in South and selective Central Mumbai locations, are now being planned in the suburban regions like Malad as well as peripheral districts. Currently, a number of IT/ITES companies have located there. The Central Mumbai belt consists of areas such as Mahalaxmi, Lower Parel, Worli, Parel,Byculla, Chinchpokli, Sewri, Wadala, Dadar, Matunga and Mahim. The micro markets of Worli are currently established markets and command a premium over other central Mumbai pockets. The current ongoing rates in Worli vary between Rs. 25,000-30,000 per sq. ft. Lower Parel is fast emerging as a residential and commercial destination, with additional supplies expected from the mill lands. 4.3 Mumbai Mill Lands: (Image of an old Mill in Mumbai) Bombay had first developed as an industrial city through the growth and expansion of the cotton textile industry from the late nineteenth century to the nineteen forties. Now known as the Mill Lands, the textile industry was located in the central districts of the Island City. After World War II and Independence, to the fifties, sixties and seventies, the industrial base of the urban economy diversified into petroleum and chemical production, and then into petrochemicals, pharmaceuticals, consumer goods and engineering industries. These new industries were mostly located on the eastern fringe of the Island City, in the Eastern suburbs, and in the seventies and eighties expanded to Thane and its surrounding district, as well as the Thane-Belapur belt flanking Navi Mumbai. Till the late seventies, the Cotton Textile Mills were booming with activity but in 1982 things changed. The unorganized Powerloom sector had taken over and it was becoming uneconomical to maintain large-scale industrial units within the city limits on account of high power and Octroi costs. Moreover, the 18-month long crippling strike by the mill workers proved to be the final nail in the coffin. All this led to huge losses and the running of the Cotton Textile Mills became unviable. Several mills were declared sick and a few even shut down their operations. Only a few managed to survive. The total area occupied by all the mills put together is approximately 605 acres (2,446,278.39 sq. mt.) There are three categories of ownership of the mills, namely, National Textile Mills (NTC), Maharashtra State Textile Corporation and Private Owners: 4.4 Mumbai Port Trust Land: The proposed release of Mumbai Port Trust (MbTP) land could change the face of the eastern waterfront in Mumbai. MbPT has about 40 acres of surplus land of which a substantial portion is on the environmentally sensitive eastern waterfront (areas such as Sewri, Wadala). Large tracts of MbPT land had been leased out to private companies, several of whom have shifted their facilities to other areas, but continue to maintain a token presence on the leased land. With the construction of Trans- Harbour Link and the Special Economic Zone at Dronagiri this land is expected to turn out into a virtual goldmine. The MbPT policy for commercial utilization of this land has been awaited for several months since the new board of trustees were not constituted. Now with 17 of the 21 trustees in place, the process of formulating the policy has been set in motion. The subcommittee is expected to unveil a plan of action when MbPT board meets on August 9. Besides the above, there are some Port Trust plot that are being released in the market. These include a 28.39 hectare (approx. 70 acres) plot at Titwala, vacant lands in isolated pockets totalling to 5.17 hectare (approx. 14.5 acres) and a slum-encroached plot measuring 6.77 hectare (approx. 17 acres) on the eastern waterfront. Floor Space Index (FSI): FSI stands for Floor Space Index. Municipalities and Government’s allow only a certain amount of FSI. Otherwise there are possibilities of sky scrapers been constructed in narrow spaces that would be leading to parking and various other problems like the one existing in downtown Manhattan. In Mumbai, FSI was first introduced in 1964 and the value than was 4.5 times. Over the years there were several changes made to the rule which depends broadly on the leading Municipal Corporation and the State Government. With an average of 2.9 m2 per person, the consumption of residential floor space in Mumbai is one of the lowest in the world. More than 50% of the city’s population lives in slums. This type of record would be expected from a city in a desperate economic situation. However, this is not the case. Mumbai is a prosperous city with an expanding economy. (Mumbai FSI conundrum: The perfect storm: the four factors restricting the construction of new floor space in Mumbai – By Alain Bertaud 2004). The very low consumption of floor space coupled with very high real estate prices would suggest that a number of supply bottlenecks might be responsible. By comparing Mumbai to other metropolis in Asia it appears that indeed 4 factors are exceptional and contribute to the very low supply of floor space: An exceptional topography that reduces the amount of developable land; A draconian and ill-conceived land use policy restricting the area of floor space which can be built on the little land available. Muddled property rights preventing households and firms to freely trade land and floor space as a commodity; A failure to develop major primary infrastructure networks, which prevents the city to overcome its topographical constraint. In turn, the weakness of the infrastructure network is used to justify the restrictive land use policy. (Alain Bertaud July 15th 2004). Comparing Mumbai to other similar sized Asian cities, (Bertaud 2004) found that within a radius of 25 km from the city centre, sea and water bodies occupy 66% of the total area for Mumbai while it was 22% in the case of Jakarta and 5% for Seoul. Cities with such extreme topography often compensate for the lack of land by allowing the height of buildings to be increased. In the case of Mumbai however, this is not the case. While the Floor Space Index (FSI) in most large cities varies from 5 to 15 in the Central Business District (CBD) to about 0.5 in the suburbs, in Mumbai the FSI remains uniformly fixed at 1.33 for the Island City and 1.00 in the suburbs (Alain Bertaud, 2004). (The above map shows the different FSI values in the city.) Transfer of Development Rights (TDR): A cartelisation of Mumbais real estate, one of the costliest in the world, in the matter of transferable development rights has put upward pressure on prices and has also caused concern in policy circles. In case of Mumbai, TDRs were used initially to compensate plot owners whose development right was restricted due to some public programmes like widening of roads etc. Later this was used for compensating owners of Heritage buildings who could not develop their lands. More recently they have been used in case of Slum Redevelopments where additional development rights could not be consumed on a plot due to over density reasons. There are also talks about using TDR for redevelopment of old buildings. Another detail about TDR is that it can be only used in the same or northern ward of the generating plot Hence you could see sudden additions to suburban buildings that have high property value.However, it also led to haphazard and unplanned development in the suburbs. There was an increased the pressure on suburban infrastructure. In a recent development, just six-odd builders and developers hold 70 per cent of the 2.5-3 million sq ft TDR available. The price of TDR has also surged to Rs 2,500-Rs 3,000 per sq ft from Rs 800-1,000 sq ft in the past six months. Realty sector experts in Mumbai cartel had meant a rise in TDR prices practically every month. The development is a sequel to a 2008 order of the High Court here, which stayed a state government decision to allow 33 per cent extra building rights (measured as more of Floor Space Index, or FSI, the ratio of what can be erected on a plot of land to its area) in return for more premium. Nainesh Shah, executive director of Everest Developers, argued that TDR rates can be brought down only by an increase in the stock of land and the government are the only entities that can make this happen. More land needs to be released, Ashutosh Limaye, associate director, strategic consulting, Jones Lang LaSalle Meghraj, saidâ€Å"TDR trading follows the open market principle. For areas that are popular and in demand for real estate development (Bandra, Chembur, Vile Parle, etc), land prices is high and it makes sense to buy TDR even at a higher rate†. However, A Vile Parle-based activist and former builder, Bhagwanji Raiyani, filed a Public Interest Litigation in the Bombay High Court asking for a total ban on TDR, following which the court in an interim order banned the use of TDR along the Eastern and Western Express Highways and the Eastern and Western suburban railway tracks. In the recent times, the government is considering a proposal to increase floor space index (FSI) in the suburbs to two without taking the transfer of development rights (TDR) route. Under this, for example, a builder involved a slum project in Trombay gets the nod to transfer development rights to the north of the rehabilitation site. Because of this policy, the suburbs are witnessing the construction of tall towers, which use TDR. There has been a 100% rise in property prices in Mumbai, Thane and other places, primarily because of the high cost of TDR. If a builder buys TDR at Rs 4,500 per sq ft, he will have to add another Rs 4,500 per sq ft towards the cost of land and construction. This forces him to sell flats at Rs 10,000 per sq ft even in a distant suburb like Mulund, which is an absurd rate. No wonder there is tremendous consumer resistance. Around 50% of the flats remain unsold because the prices are beyond an average buyer’s reach,’’ (Subhash Runwal, former office-bearer of the Maharashtra Chamber of Housing Industry, reported in Times Of India). The demand for FSI is 10 crore sq ft per annum in the suburbs. If the government sells this at even Rs 2,500 crore, it can generate a whopping Rs 25,000 crore annually. Half of this revenue can be used for improving infrastructure in the suburbs and the rest for development work in the rest of the state†. The Golden Question: How to design new FSI and TDR values for Mumbai? Design a spatial land use strategy based on current land values and future investments in transport (bridges, highways, metro, BRT). Identify high accessibility nodes. Divide the existing and future built-up areas into land use zones based on accessibility and on existing character of the area; Identify and map the historical areas and natural areas that need to be protected, those that should not be redeveloped, and where the new FSI will not be applied; Design regulations (FSI, % lot coverage, setbacks, etc) for each zone. Comprehensive plan ready and approved for the entire city No more TDRs are issued during preparation of plan, however, already issued but not yet used TDRs are honored. Progressive transition: New FSI plan prepared and approved for 2 or 3 main streets and high intensity areas around new metro stations and bridge access. New TDRs can be issued but they have to be used in the areas already mapped for FSI increase. Meanwhile the comprehensive strategy is prepared and approved. More areas for FSI increase are prepared every year and where TDRs can be used. After 2 or 3 years new TDRs are issued only for slum redevelopment and for historical area protection. The above is just a model example of how the increase in FSI would solve the Real Estate problems in Mumbai. If the Government adopt the path which has been used in downtown Manhattan than it would reduce Real Estate prices in the city, help to relocated millions of people, abolish the TDR practice and the additional space could be used to improve the lagging infrastructure of the city. 4.5 Mumbai Salt Pan Land http://infochangeindia.org/Agenda/Coastal-communities/Saltpan-city.html The proposal to use saltpan lands first emerged in 2002 when the Maharashtra Housing and Area Development Authority (MHADA) warned that it was running out of land and asked the state to release land belonging to various departments like defence, the Bombay Port Trust, and saltpan lands. In 2006, the then Union Minister for Commerce and Industries Kamal Nath and Ex Maharashtra Chief Minister Vilasrao Deshmukh worked out a formula of developing saltpan lands on a no-profit-no-loss basis. The scheme proposed allowing private developers extra FSI for commercial purposes after setting aside 225 sq ft houses to accommodate slum-dwellers. In 2007, a committee of u Emerging Real Estate Market in Mumbai Emerging Real Estate Market in Mumbai Introduction: India has firmed up its place in the world business space prompting global business houses to sit up and take a fresh view on India as a business and investment destination. In the last two years, Indian economy has grown well despite nature’s fury or other global adverse events. India is fast establishing itself as an alternative to China in a variety of sectors, particularly IT-ITES, manufacturing, and real estate. The most spectacular resurgence has been that of the real estate sector, which is back in business with a bang. New projects, superior quality product, new growth corridors, increased infrastructure spending, falling cost of finance and interest, and growing capacity of common man in the key reasons behind the steady growth in real estate market. With stock market being highly volatile, investment in real estate has begun to look attractive and competitive with typical yields of 10-12% per annum are achievable, even though specific return is always linked to property specific factors, dynamics of real estate market and the overall economic performance. Real estate is fast turning out to be a compulsive investment bet as compared to other investment vehicles such as capital and debt markets, bullion market etc. It attracts investors by offering a possibility of stable income yields, moderate capital appreciation, tax structuring benefits and higher security being tangible asset. With these prime factors there are several micro factors responsible for the returns on investment and those are location of the property in macro and micro context, the usage of property, the quality of tenant, the capital value and achievable rental, the prevailing structures of property tax and stamp duty. The study includes the macro economic factors that make India a favourable investment destination. The purpose of the study is to give a comprehensive overview of the emerging Real Estate market of Mumbai. Today’s market is at a stage of ambiguity so a detailed study is required in this respect. In the final report detailed analysis will be carried out by fragmenting the market into Residential, Commercial and Retail space. An overview of each of these markets is included in the current report. The study will also include what are the various financing options in the emerging markets currently. A detailed survey will be carried out for the final report based on a questionnaire and will be send out to the various players ( Private Equity funds, Domestic Financial institutions, Local Real Estate Developers and Property Consultants to assess the various options available for Fund raising. Currently an introduction is also included on the same. Characteristics of the Real Estate Market in India: With reference to the availability of infrastructure facilities, following cities are currently attracting MNCs/corporate/real estate developers: Tier I cities, Mumbai (Commercial hub), Delhi (Political hub) and Bangalore (Technological hub): Preferred option for many new market entrants Command the highest international profiles and significant proportion of FDI Offer qualified labour pool and the best infrastructure facilities Exhibit development of sub-urban commercial real estate Yield of 9.5 – 10% (Real Estate Sector – The India Story Submitted by Miss Sonia Sahni Asst Manager Corporate and Investment Banking, ABN AMRO Bank, Nariman Point, Mumbai) 2.0 Macro-Economic Factors India: Background of the Economy of India during 2008 and early 2009: Last year 2008 was quiet a setback for the real-estate sector in India after the boom of the previous three years where the property market registered a return of more than 30-40% every year. The sector had faced a down trend where the property prices corrected by over 30%. This was due to the sub-prime crisis in the United States and also the correcting Capital Markets and bankruptcy of the MNC’s and the Banks. This resulted in loss of liquidity and hence a fall in demand. In August 2008 the inflation reached as high as 13% which forced a knee jerk reaction from the RBI (Reserve Bank of India) to cut the cash reserve ratio, the repo and the reverse repo rate which warranted the Banks to lend less and as a result of the further shortage in liquidity the real-estate market took a plunge. However, the economy has recovered by leaps and bounce and which is reflected by the chart below: Sam Mahtani, emerging equities manager at FC, is confident on Indias economic prospects. Over the next 10 years, UBS estimates economic activity in India will increase by around 8.5% a year, a rate comparable with China and beyond the global average. We think that this growth rate could be achievable if Indian policymakers start to undertake structural reforms in the economy. Over the next five years, the government is committing an estimated US$500 billion to road, rail, port and other vitally needed upgrades. If the right legislation is put in place and managed effectively, this could represent the springboard for long-term economic growth rates in excess of Chinas†, he believes. GDP of India: The chart shows that the GDP growth rate of India and China are far ahead than any other country in the world. This shows that the standard of living in the country is high. GDP reflects the total income, the total output and the total expenditure of the country. The economy of the country is the twelfth largest in the world as per the recent market exchange rate and it is ranked number four as per purchasing power parity. It is the 2nd fastest growing economy in the world. The service sector of India contributes more than 50% to the GDP and real-Estate sector is the third largest among it. Mumbai is the sole largest contributor to the national GDP and the economics of Mumbai further supports the fact. The above figure shows the long term growth rate of GDP of India against the Developed counties of the World. Economy of India (mid 2009) and its impact on Real Estate: However the economic condition of the country has improved in the last year. This was a great precedent for the Real-estate sector in India and especially Mumbai. It has always been witnessed during recession that the financial cities of the world take the hardest hit but on the other hand recovery is quickly as well. The inflation rate in India is 0.30% on 1st December 2009. The CRR is 5% and repo rate is 4.75% and reverse repo rate 3.25% which is commendable and which has increased liquidity in the market and as a result of this the property prices have gone up in the country. The stock market has recovered exceedingly well and it had an almost 50% rise than the last year’s index. This has further increased the confidence amongst the analysts and the investors. In Mumbai the property rates have accelerated and it is not far behind the rates which were witnessed during the boom period. Mumbai has seen a constant price in the property prices since mid 2009 due to the strengthe ning of the economy. Source: CBRE report 2009 By 2030 India will need up to 10 million new housing units per year. Rapid population growth, rising incomes, decreasing household sizes and a housing shortage of currently 20 million units will call for extensive residential construction. The financing of owner-occupied housing in particular holds out enormous market potential. (Deutsche Bank Report May 8, 2006). Population in India: India is the 2nd most populated country in the world at present after China. However, as per the numbers projected in a United Nations Report states that the Indian population would be more than the Chinese population by 2050. (Population of India is also set to take over China by 2050 as per the UN report.) 1.0 MUMBAI – OVERVIEW: Mumbai, the capital city of the state of Maharashtra, is the one of the largest metropolis in India. Known as the financial capital of the country, the city contributes almost 5% of India’s GDP. It is a multi-functional city with a vast array of economic opportunities, which has resulted in attracting a large migratory population from all over. The city sports a highly cosmopolitan environment with an intricate urban structure. Mumbai has long been home to several large multinational companies and is invariably the first choice for a new organization entering India. Demographic Pattern: Greater Mumbai accounts for 13% of Maharashtra’s population and 1.2% of India’s population[1]. The rate of growth of population has gone down but has been higher than the growth rate of Maharashtra. Source: Census of India Over 1901-71 period, the population in the island city was steadily increasing and was more than that of the suburbs. However, during the last 3 decades the population growth in the island city has been negligible whereas that in the suburbs is increasing at a rapid rate. Among the suburbs, the western suburbs (ward H, K, P and R) are more densely populated than the Eastern suburbs (ward L, M, N, S and T). The following graph indicates the projected population growth in Greater Mumbai. The above graph further illustrates that the population of Mumbai is set of increase manifoldly, as against the other Metros of the country. 2.0 MUMBAI REAL ESTATE MARKET OVERVIEW: The island city of Mumbai is the commercial capital and economic growth engine of India. Originally composed of seven small islands, land reclamation and infill carried out during the 18th and 19th century integrated these islands into a continuous peninsula (Deshpande and Arunachalam,1981). Beginning as a seaport on the west coast of the Indian peninsula, Mumbai has steadily diversified its economic base to include value-added manufacturing and financial services. The country’s central bank, the Reserve Bank of India and two of India’s largest stock exchanges, the Bombay Stock Exchange and the National Stock Exchange are all located here. Mumbai accounts for one-tenth of factory employment and value-added manufacturing, while the port handles more than one-third of the total value of foreign trade (Deshpande, 1996), making the Brihan Mumbai Municipal Corporation one of the richest, with a budget of more than USD 1.2 billion (Mohan, 2003), exceeding the budget of nine S tates and Union Territories of India. This economic growth is sustained by and in turn, drives the steady influx of migrants from rural and regional centres of the country. Consequently, the Mumbai Metropolitan Region (MMR) is one of the fastest growing regions of India. Its population increased from 7.7 million in 1971 to 18.3 million in 2001 (Census of India, 2001) and is projected to increase to 22.4 million by 2011(MMRDA, 1999). (Journal on HOUSING TENURE FOR THE URBAN POOR: A CASE STUDY OF MUMBAI CITY by Gaurang Desai and Madhura Yadav). Mumbai has gained immense prominence as one of the growing corporate and IT destinations in India. The Mumbai real estate scenario has been reflective of the burgeoning real estate sector of the country. The city has a mature and demand-led market driven by end users. Investors and HNIs have also been actively investing in various pre-leased properties with insurance, banking, IT/ITES, residential and retail sector occupants. Overall, there has been an increase in demand as well as supply and an appreciation in the real estate values across various micro markets in the city. Economy of Mumbai: The per capita income of the city is Rs 66,360 which is three times higher than the national income. It contributes 1/3 rd of the total income tax collection of the country. It contributes nearly 60 % of the total income generated from custom duty of the country. 40 % of India’s foreign trade. Corporate tax collection of the city is Rs 40 billion. 20 % of the total excise duty collection of the country. Mumbai Metropolitan region generates 5 % of the total GDP of the country. The island city of Mumbai is the economic growth engine and commercial capital of India. A combination of in-migration combined with a severe land shortage has resulted in Mumbai having one of the most expensive real estate in the world. As a result the city faces housing crisis with an estimated 60% of its total population living in slums, adopting multiple informal housing tenures. Property Index of Mumbai: Database:This index is based on minimum database size of 20,000 data points every month and the analysis has been drawn over a period starting Jan’09. The prices of properties are obtained across micro-markets through property listings on the website as well as based on nationwide sales force. Index Algorithm:The complex algorithm takes into account the property prices as base and then factors in the demand and supply of residential properties for each of the cities covered by it. Care has been taken to give weight age to cities in line with the size of underlying property market. (Makaan.com) The Real-Estate market of Mumbai can be divided into three types- Commercial Residential Retail Mall 4.1 Commercial Real Estate Market: Mumbai’s commercial market is divided into its traditional business districts and the recently developed business addresses. The Central Business District (CBD) of the city is located in South Mumbai and comprises of: Nariman Point – Often said to be the ‘Manhattan of India’, Nariman Point has traditionally been the most attractive location for international companies, in particular international investment banks, insurance companies and consulting firms. The areas concentrated within a radius of 1.5-2 km around the CBD are termed as the off-CBD locations, which include: Churchgate /Fort/ Fountain – This district has traditionally housed the city’s Business and Government establishments. It also houses numerous National and International Banks. Cuffe Parade – Primarily an up market residential area with a host of high-rise buildings. Some notable commercial buildings like the World Trade Centre and Maker Towers are located here. Ballard Estate – A prime commercial area where the buildings have European Renaissance architecture. The off-CBD business centres of the city have expanded to include a number of areas mostly oriented towards central Mumbai: Lower Parel: This industrial belt of Mumbai is transforming itself into a commercial hub of the city. This area is being developed on what used to be the textile mills. With mill land being freed for commercial, retail and residential development, the Lower Parel area will see massive supply of space. Currently, there are a number of retail, entertainment and advertising companies located in Lower Parel. High Street at Phoenix Mills is the most prominent retail development in this region. Worli-Prabhadevi: The Worli–Prabhadevi area has been a conventional stronghold of number of corporate offices. Besides, there is also the presence of two malls – Crossroads and Atria, in the stretch. The ongoing Bandra-Worli sea link is expected to give a further fillip to this area. The Suburban Business Districts (SBDs) of the city comprise of the following locations: (Image of the Bandra Kurla Complex) The Bandra-Kurla belt: The Bandra-Kurla Complex (BKC), which has been developed as an alternative business district to the CBD, has attracted a number of corporate. ICICI, National Stock Exchange, Wockhardt and ILFS are some of the important corporate located here. The Andheri-Kurla Belt: This area is also an upcoming location of choice for IT/ITES companies, banks, insurance companies, etc. Some of the sought after Grade ‘A’ buildings in this belt are ‘Technopolis’ and ‘Solitaire Corporate Park’ where a number of corporate are relocating. The Malad-Goregaon Belt: The Malad Goregoan belt has become the preferred destination for IT/ITES companies due to the availability of large floor plates at competitive rentals. The superior quality of buildings offered at MindSpace is another motivating factor for technology companies looking for world-class amenities to come here. The Powai Belt: Another suburb, the Powai belt is scoring well on the IT/ITeS front. The pricing in rental terms is similar for Powai and Malad. There will be 600 new shopping centres by 2010. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%. (Deutsche Bank Research 6 may,2006) The Peripheral Business District (PBD) of the city consists of: Navi Mumbai: Navi Mumbai is being developed as a counter magnet to Mumbai, with the basic objective of curbing further congestion in the city. The potential target audience, apart from the existing residents, arises from the 40,000+ IT/ITES industry workforce travelling to Navi Mumbai daily. Consequently, the government has undertaken a number of initiatives to promote further development of IT ITES sector in Maharashtra state. These include formulation of a progressive sector-specific policy, development of IT parks and development of the â€Å"Knowledge Corridor† between Navi Mumbai and Pune. Sector 17 of Vashi and CBD Belapur were developed as the prime commercial areas for Navi Mumbai. A number of corporate have moved to Navi Mumbai, the largest amongst them being Reliance Industries. Millennium Business Park at Mahape and Airoli Knowledge Park at Airoli, developed by MIDC houses several IT/ITES companies like Aptech, CMS computers, Datamatics, Mastek, TCS, Patni etc 4.2 Residential Market Scenario: Residential real estate in Mumbai is today amongst the most expensive in the country. The key residential areas in the city are as follows: The south and central locations of the city like Colaba, Napean Sea Road, Worli, Breach Candy and Pedder Road are the most preferred locations for leased accommodation for the senior and expatriate staff. Amongst the key suburban locations, Bandra and Malad in the northwest and Powai in the northeast are equally preferred due to proximity from the emerging commercial/office locations. Other suburban residential micro-markets of Andheri, Goregaon and Mulund also fall in the preferred category. In fact, these areas are witnessing fresh construction activity with projects from prominent residential developers like K.Raheja, Oberoi Constructions, Royal Palms and the Runwal Group. Luxury housing projects, which have been traditionally concentrated in South and selective Central Mumbai locations, are now being planned in the suburban regions like Malad as well as peripheral districts. Currently, a number of IT/ITES companies have located there. The Central Mumbai belt consists of areas such as Mahalaxmi, Lower Parel, Worli, Parel,Byculla, Chinchpokli, Sewri, Wadala, Dadar, Matunga and Mahim. The micro markets of Worli are currently established markets and command a premium over other central Mumbai pockets. The current ongoing rates in Worli vary between Rs. 25,000-30,000 per sq. ft. Lower Parel is fast emerging as a residential and commercial destination, with additional supplies expected from the mill lands. 4.3 Mumbai Mill Lands: (Image of an old Mill in Mumbai) Bombay had first developed as an industrial city through the growth and expansion of the cotton textile industry from the late nineteenth century to the nineteen forties. Now known as the Mill Lands, the textile industry was located in the central districts of the Island City. After World War II and Independence, to the fifties, sixties and seventies, the industrial base of the urban economy diversified into petroleum and chemical production, and then into petrochemicals, pharmaceuticals, consumer goods and engineering industries. These new industries were mostly located on the eastern fringe of the Island City, in the Eastern suburbs, and in the seventies and eighties expanded to Thane and its surrounding district, as well as the Thane-Belapur belt flanking Navi Mumbai. Till the late seventies, the Cotton Textile Mills were booming with activity but in 1982 things changed. The unorganized Powerloom sector had taken over and it was becoming uneconomical to maintain large-scale industrial units within the city limits on account of high power and Octroi costs. Moreover, the 18-month long crippling strike by the mill workers proved to be the final nail in the coffin. All this led to huge losses and the running of the Cotton Textile Mills became unviable. Several mills were declared sick and a few even shut down their operations. Only a few managed to survive. The total area occupied by all the mills put together is approximately 605 acres (2,446,278.39 sq. mt.) There are three categories of ownership of the mills, namely, National Textile Mills (NTC), Maharashtra State Textile Corporation and Private Owners: 4.4 Mumbai Port Trust Land: The proposed release of Mumbai Port Trust (MbTP) land could change the face of the eastern waterfront in Mumbai. MbPT has about 40 acres of surplus land of which a substantial portion is on the environmentally sensitive eastern waterfront (areas such as Sewri, Wadala). Large tracts of MbPT land had been leased out to private companies, several of whom have shifted their facilities to other areas, but continue to maintain a token presence on the leased land. With the construction of Trans- Harbour Link and the Special Economic Zone at Dronagiri this land is expected to turn out into a virtual goldmine. The MbPT policy for commercial utilization of this land has been awaited for several months since the new board of trustees were not constituted. Now with 17 of the 21 trustees in place, the process of formulating the policy has been set in motion. The subcommittee is expected to unveil a plan of action when MbPT board meets on August 9. Besides the above, there are some Port Trust plot that are being released in the market. These include a 28.39 hectare (approx. 70 acres) plot at Titwala, vacant lands in isolated pockets totalling to 5.17 hectare (approx. 14.5 acres) and a slum-encroached plot measuring 6.77 hectare (approx. 17 acres) on the eastern waterfront. Floor Space Index (FSI): FSI stands for Floor Space Index. Municipalities and Government’s allow only a certain amount of FSI. Otherwise there are possibilities of sky scrapers been constructed in narrow spaces that would be leading to parking and various other problems like the one existing in downtown Manhattan. In Mumbai, FSI was first introduced in 1964 and the value than was 4.5 times. Over the years there were several changes made to the rule which depends broadly on the leading Municipal Corporation and the State Government. With an average of 2.9 m2 per person, the consumption of residential floor space in Mumbai is one of the lowest in the world. More than 50% of the city’s population lives in slums. This type of record would be expected from a city in a desperate economic situation. However, this is not the case. Mumbai is a prosperous city with an expanding economy. (Mumbai FSI conundrum: The perfect storm: the four factors restricting the construction of new floor space in Mumbai – By Alain Bertaud 2004). The very low consumption of floor space coupled with very high real estate prices would suggest that a number of supply bottlenecks might be responsible. By comparing Mumbai to other metropolis in Asia it appears that indeed 4 factors are exceptional and contribute to the very low supply of floor space: An exceptional topography that reduces the amount of developable land; A draconian and ill-conceived land use policy restricting the area of floor space which can be built on the little land available. Muddled property rights preventing households and firms to freely trade land and floor space as a commodity; A failure to develop major primary infrastructure networks, which prevents the city to overcome its topographical constraint. In turn, the weakness of the infrastructure network is used to justify the restrictive land use policy. (Alain Bertaud July 15th 2004). Comparing Mumbai to other similar sized Asian cities, (Bertaud 2004) found that within a radius of 25 km from the city centre, sea and water bodies occupy 66% of the total area for Mumbai while it was 22% in the case of Jakarta and 5% for Seoul. Cities with such extreme topography often compensate for the lack of land by allowing the height of buildings to be increased. In the case of Mumbai however, this is not the case. While the Floor Space Index (FSI) in most large cities varies from 5 to 15 in the Central Business District (CBD) to about 0.5 in the suburbs, in Mumbai the FSI remains uniformly fixed at 1.33 for the Island City and 1.00 in the suburbs (Alain Bertaud, 2004). (The above map shows the different FSI values in the city.) Transfer of Development Rights (TDR): A cartelisation of Mumbais real estate, one of the costliest in the world, in the matter of transferable development rights has put upward pressure on prices and has also caused concern in policy circles. In case of Mumbai, TDRs were used initially to compensate plot owners whose development right was restricted due to some public programmes like widening of roads etc. Later this was used for compensating owners of Heritage buildings who could not develop their lands. More recently they have been used in case of Slum Redevelopments where additional development rights could not be consumed on a plot due to over density reasons. There are also talks about using TDR for redevelopment of old buildings. Another detail about TDR is that it can be only used in the same or northern ward of the generating plot Hence you could see sudden additions to suburban buildings that have high property value.However, it also led to haphazard and unplanned development in the suburbs. There was an increased the pressure on suburban infrastructure. In a recent development, just six-odd builders and developers hold 70 per cent of the 2.5-3 million sq ft TDR available. The price of TDR has also surged to Rs 2,500-Rs 3,000 per sq ft from Rs 800-1,000 sq ft in the past six months. Realty sector experts in Mumbai cartel had meant a rise in TDR prices practically every month. The development is a sequel to a 2008 order of the High Court here, which stayed a state government decision to allow 33 per cent extra building rights (measured as more of Floor Space Index, or FSI, the ratio of what can be erected on a plot of land to its area) in return for more premium. Nainesh Shah, executive director of Everest Developers, argued that TDR rates can be brought down only by an increase in the stock of land and the government are the only entities that can make this happen. More land needs to be released, Ashutosh Limaye, associate director, strategic consulting, Jones Lang LaSalle Meghraj, saidâ€Å"TDR trading follows the open market principle. For areas that are popular and in demand for real estate development (Bandra, Chembur, Vile Parle, etc), land prices is high and it makes sense to buy TDR even at a higher rate†. However, A Vile Parle-based activist and former builder, Bhagwanji Raiyani, filed a Public Interest Litigation in the Bombay High Court asking for a total ban on TDR, following which the court in an interim order banned the use of TDR along the Eastern and Western Express Highways and the Eastern and Western suburban railway tracks. In the recent times, the government is considering a proposal to increase floor space index (FSI) in the suburbs to two without taking the transfer of development rights (TDR) route. Under this, for example, a builder involved a slum project in Trombay gets the nod to transfer development rights to the north of the rehabilitation site. Because of this policy, the suburbs are witnessing the construction of tall towers, which use TDR. There has been a 100% rise in property prices in Mumbai, Thane and other places, primarily because of the high cost of TDR. If a builder buys TDR at Rs 4,500 per sq ft, he will have to add another Rs 4,500 per sq ft towards the cost of land and construction. This forces him to sell flats at Rs 10,000 per sq ft even in a distant suburb like Mulund, which is an absurd rate. No wonder there is tremendous consumer resistance. Around 50% of the flats remain unsold because the prices are beyond an average buyer’s reach,’’ (Subhash Runwal, former office-bearer of the Maharashtra Chamber of Housing Industry, reported in Times Of India). The demand for FSI is 10 crore sq ft per annum in the suburbs. If the government sells this at even Rs 2,500 crore, it can generate a whopping Rs 25,000 crore annually. Half of this revenue can be used for improving infrastructure in the suburbs and the rest for development work in the rest of the state†. The Golden Question: How to design new FSI and TDR values for Mumbai? Design a spatial land use strategy based on current land values and future investments in transport (bridges, highways, metro, BRT). Identify high accessibility nodes. Divide the existing and future built-up areas into land use zones based on accessibility and on existing character of the area; Identify and map the historical areas and natural areas that need to be protected, those that should not be redeveloped, and where the new FSI will not be applied; Design regulations (FSI, % lot coverage, setbacks, etc) for each zone. Comprehensive plan ready and approved for the entire city No more TDRs are issued during preparation of plan, however, already issued but not yet used TDRs are honored. Progressive transition: New FSI plan prepared and approved for 2 or 3 main streets and high intensity areas around new metro stations and bridge access. New TDRs can be issued but they have to be used in the areas already mapped for FSI increase. Meanwhile the comprehensive strategy is prepared and approved. More areas for FSI increase are prepared every year and where TDRs can be used. After 2 or 3 years new TDRs are issued only for slum redevelopment and for historical area protection. The above is just a model example of how the increase in FSI would solve the Real Estate problems in Mumbai. If the Government adopt the path which has been used in downtown Manhattan than it would reduce Real Estate prices in the city, help to relocated millions of people, abolish the TDR practice and the additional space could be used to improve the lagging infrastructure of the city. 4.5 Mumbai Salt Pan Land http://infochangeindia.org/Agenda/Coastal-communities/Saltpan-city.html The proposal to use saltpan lands first emerged in 2002 when the Maharashtra Housing and Area Development Authority (MHADA) warned that it was running out of land and asked the state to release land belonging to various departments like defence, the Bombay Port Trust, and saltpan lands. In 2006, the then Union Minister for Commerce and Industries Kamal Nath and Ex Maharashtra Chief Minister Vilasrao Deshmukh worked out a formula of developing saltpan lands on a no-profit-no-loss basis. The scheme proposed allowing private developers extra FSI for commercial purposes after setting aside 225 sq ft houses to accommodate slum-dwellers. In 2007, a committee of u