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LET'S CONNECT

October 2015

EDITOR Menka Shivdasani menkaipieditorial@gmail.com EDITORIAL The Source CONTRIBUTORS Archana Sinha Shilpa Vyas Raina Assainar Prachi Bari

AN AUSPICIOUS TIME TO INVEST

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eserve Bank of India governor Raghuram Rajan's decision to cut the repo rate by as much as 50 basis points could not have come at a better time. As India goes into festive mode, with Dassera and Diwali just around the corner, home loans have suddenly become cheaper. While Mr. Rajan insisted this was not a 'Diwali bonus', the impact of the decision was almost immediate. The country's largest lender State Bank of India was first off the block to lower interest rates, with a 40 basis point cut in its base rate to 9.3 per cent and other banks soon followed suit. Expectations are now high that the rate cut will kick-start the investment cycle and help to boost growth in India. There's no doubt that the Indian economy is on the upswing and that sentiments are on the rise. A recent Pew Research Center survey found that almost three-quarters of the Indian public now think economic conditions are good, and about two-thirds, or 87 per cent, of Indians say they have a favourable opinion of Prime Minister Narendra Modi. Another recent report found that private equity (PE) funds invested about $2.4 billion in the real

MENKA SHIVDASANI Editor

estate sector across 53 transactions during the first nine months this year, a move that expressed confidence in Indian residential and commercial projects. Initiatives like 'Make in India' and 'Smart Cities' are all set to enhance this growth. Our policy makers have already invested nearly half a trillion dollars in infrastructure over the last decade, and Mr. Modi has made it clear that this is a key thrust area for his government. As the Indian economy grows, and the country continues on its path to being among the world's most attractive investment destinations, non-resident Indians have every reason to believe that it is time to invest in their homeland and reap the benefits in the near future. With the festive season having begun, this is the ideal time to do so; developers have laid out a dazzling array of properties, with exhibitions both in India and the United Arab Emirates, complete with a host of special offers and beneficial pricing. If you are looking at purchasing a property in India, it would not only be an auspicious time, but would also make for a smart financial decision.

PUBLISHER Wilfred Fernandes wilfredf@weareyoung.in MEDIA DIRECTOR Anup Kotekar anupk@weareyoung.in ADVERTISING Jitendra Boricha - Business Head jitendrab@weareyoung.in Richard Mendes - Chief Manager richardm@weareyoung.in DESIGN & INNOVATION Dallas Fernandes - Creative Head Sachin Rane - Art Director DESIGN & LAYOUT Shilpa Dinesh PRINTING & DISTRIBUTION PARTNER GN Media, UAE.

Printed and published by Wilfred Fernandes on behalf of Yo Sports Management Pvt. Ltd. Published at Young Media from 506, A-wing, Western Edge II, Western Express Highway, Borivali (East), Mumbai 400 066 and Printed at Al Nisr Publishing Press, Sheikh Zayed Road, Dubai, UAE. Editor Menka Shivdasani India Property Insider takes no responsibility for unsolicited photographs or material. All photographs, unless otherwise indicated are used for illustrative purpose only. Views and opinions expressed in the articles are of the Authors/subjects and do not necessarily reflect those of the Editors or Publishers. While the editors do their utmost to verify information published, they do not accept responsibility for its absolute accuracy in matters which may be sub judice. The information on products and projects and their offers is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or before investing after consulting experts. India Property Insider holds no responsibility for any decision taken by the readers on the basis of information provided herein. Subject to Mumbai jurisdiction only.

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MEDIA INITIATIVE


CONTENTS

Inside Insider 06

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THE INSIDER STORY: GET A GOOD DEAL THIS FESTIVE SEASON Looking to invest in India? Watch out for attractive festive offers this season that will double the joy of buying a home, says Shilpa Vyas

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TREND WATCH: BUYING A HOME? GO FOR A GOOD BRAND With Indian real estate becoming more organised and attractive to international buyers, branding is playing an important role, giving customers a differentiated experience and pride of ownership, says Archana Sinha MICRO-MARKETS: POWAI IS NO LONGER JUST A PICNIC SPOT The Powai-Kanjurmarg-Bhandup belt offers natural beauty, excellent connectivity and high-end lifestyles in upmarket projects, says Raina Assainar

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LOCATIONS: INDUSTRIAL GROWTH MAKES NOIDA A DESTINATION OF CHOICE Amidst lush greenery, world-class infrastructure, open spaces and numerous residential options, Noida in North India has emerged as an attractive option for the future, says Prachi Bari

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MARKET RESEARCH: SMALLER CITIES ARE THE NEXT FRONTIER FOR DEVELOPMENT The potential for growth in real estate in TIER II cities can no longer be ignored by investors and end users of India, according to a September 2015 report by PropEquity.

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INSIDER INTERVIEW: 'REAL ESTATE WILL ALWAYS GIVE YOU RETURNS' As the festive season gets underway with offers, Pratik H. Patel of Rajesh LifeSpaces believes that NRIs should seriously consider buying property in India

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EXPERT ADVICE: TIME FOR CONSOLIDATION Keep a careful eye on market conditions, as constant turnover can only bring you the maximum yields, says Sandeep Sadh

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OPINION: A FESTIVE GIFT FROM RBI With current economic fundamentals on the upswing, the Reserve Bank of India has assumed a bolder stance that is expected to give the housing sector a f illip

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PROJECTS ON OFFER Some options around the country

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PROPERT Y PRICES Average Residential Apartment Rates

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PROPERT Y TERMS: JARGON SIMPLIFIED

We'd Like to Hear From You!

India Property Insider would be happy to hear from readers. Write in to ipi@weareyoung.in with your comments, suggestions, experience of buying property in India and anything else that you would like to share. Send in your responses today!

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THE INSIDER STORY

October 2015

GET A GOOD DEAL THIS FESTIVE SEASON Looking to invest in India? Watch out for attractive festive offers this season that will double the joy of buying a home, says SHILPA VYAS

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hile any time is a good time to invest in property or real estate, the festive season is surely the best time to encash on great opportunities. An affordable house clubbed with an attractive scheme can help you make a smart choice this festive season. Developers across the country are tying in great festive offers for home buyers and NRI investors, which gives one more bang for their buck. A host of attractive offers are up for grabs. In the festive period, the buyer can look at various attractive locations in Mumbai like Kanjurmarg, Mulund, Thane in the central suburbs along with the places beyond Thane. Also Oshiwara, Malad, Borivali, Dahisar and the VasaiVirar belt are viable option in the western suburbs which can be looked upon along with the places like Kharghar, Ulwe, Taloja, Kalamboli, Panvel in the Navi Mumbai region. Kedar Joshi, Chief Marketing Officer, Ahuja Constructions says, “With the onset of the festive season, a lot of buyers plan to invest in real estate. Property buyers do respond to the upbeat sentiments during the festive season, hence festive offers become a valueadded service for them to look upon. The festive time brings in positive sentiments. Even the NRI demand for properties during this time is quite high. The realty industry definitely witnesses an increase in the number of buyers closing the deal.” Ahuja Constructions is launching a festive offer for their project, L’Amor called “Threemendous” which states 'live three times the life in the largest 3BHKs in Oshiwara'. Under the 3:19 offer, there are 19 3BHKs apartments on sale that can be booked by paying ` 1.9 lakh only. Joshi adds, “Our project, L’Amor, Oshiwara exemplifies ‘The Life to Love’ offering the perfect location, aspirational lifestyle and unbounded leisure and is set to be a landmark in the area. It is located in close proximity to malls, restaurants and cultural attractions. The 36-storey tower comprises exclusive 2 and 3 BHK apartments as well as a host of amenities, with 6

QUICK FACTS • The festive season in India offers you the ideal time to make the most of great opportunities. • This is when developers lay out their best projects and a host of special offers.

sophisticated architectural detailing and interiors, allowing one to enjoy life. Also buyers can save up to 19 per cent in floor rise, besides that, there are flexible payment plans.” This year with a new government at the Centre taking some positive steps, the realty market is very buoyant with high expectations from both buyers and developers, with developers looking at some really good sales during this festive season. There is a definite euphoria being observed in the sector and things can only get better as the festive season approaches. There are plenty of options one can look at during the festive period. Places like Thane, Kalyan-Shil belt, Vasai-Virar belt, Taloja, Panvel, Ulwe and Dronagiri are a few ideal locations one can look at investing in. Rajesh Prajapati - Managing Director, Prajapati Constructions Ltd says, “Investing in real estate is a worthwhile proposition for buyers today and they eagerly look forward to the festive season to buy a property. Discounted www.indiapropertyinsider.in | A

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Pic courtesy: Lodha Group

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THE INSIDER STORY

rates, healthy returns, price appreciation over the long term are some of the factors that keep the buyers enthused during this period. The recent infrastructure developments have resulted in the emergence of new places like Dronagiri and Ulwe, which are in the vicinity of the development zones, have seen increase in realty prices in the recent past. Dronagiri is one such attractive node in Navi Mumbai, which has immense growth potential being strategically located close to the employment catchment areas of ONGC and JNPT, just 22 kms away from Vashi and about three kms from Uran. Moreover one can reach South Mumbai from Dronagiri within 30 minutes by regular speed boats. Infrastructure projects like Seawood - Uran Commuter rail link, Navi Mumbai International Airport, Mumbai Trans Harbour Link (MTHL) and JNPT SEZ collectively will lead to an increase in demand for commercial, residential and hospitality real estate in these regions.” Prajapati Constructions have quite a few offers on the cards this season. The customer buying a home this Ganpati festival was entitled for a trip to Ashtavinayak with his family. Apart from this, a customer who books a flat till December 31, 2015, gets a chance to win an i10 car through a lucky draw. Both these offers are valid on their Prajapati Magnum. This luxurious residential project in Dronagiri is fully equipped with modern amenities and grandeur wherein each apartment is designed with modernity and contemporary look. The

project comprises five towers with 2 and 3 BHK apartments whose possession would be in December 2018. With a vision of creating housing for all, Poddar Developers, a reputed name in the affordable housing segment, has waived off stamp duty and registration charges on booking a home this festive season at their projects Poddar Evergreen in Badlapur, Poddar Aspire in Kalyan and Poddar Navjeevan in Atgaon. Driven by the core intent of creating value homes, these apartments are built with the best-branded fittings, modern amenities like club house, cricket pitch, gardens etc. Further enhancing the life of the residents Poddar Evergreen, the largest integrated township project in Badlapur includes Poddar Brio International School, which is under the CBSC board, a health centre and retail shops.   Since the announcement of this scheme Poddar Developers have witnessed a 25 per cent rise in sales. Expressing his view on the offer Rohit Poddar, Managing Director, Poddar Developers says, “Owning a home is a distant dream for many. With our projects we constantly strive to ensure better accessibility for an individual to buy a house. This scheme is just an attempt to enhance their standard of living, allowing them to save significant amount of money that could be used to meet other necessities.” Considering the immense demand, the company will continue the scheme till the end of this festive season. The offer will help buyers save around five to six per cent of their spending.

October 2015

Recently, Sheth Corp launched a festive offer on two of their prime projects, namely Midori at Dahisar and Avalon at Thane. Avalon is a luxury project in Thane offering 2, 2.5, 3 and 4 BHK apartments. The construction work has started and is expected to complete in three years. Midori in Dahisar is a contemporary housing project 1, 1.5 and 2 BHK apartments. The construction work has started and will be completed in 1.5 years. For both the projects, the booking amount is ` 7 lakh but during the festive season, the flat can be booked for ` 2.51 lakh and ` 3.51 lakh respectively. The offer started in from September 15, 2015. Chintan Sheth - Director, Sheth Corp says, “Festive seasons are those times where the buyer’s motivation to invest into real estate properties multiplies owing to its religious and spiritual significance. Since these offers are for a limited period they make it a profitable deal for the buyers. The whole exercise is to make customers feel special and give them real time benefits and enhance their experience during festive season. The customers too respond positively and try to avail these offers as they feel it is an auspicious time to buy their dream home with certain benefits as well. The government is making the right moves and creating the perfect platform for propelling growth of the sector. Faster clearances and RBI cutting repo rates within a short span and at regular intervals has brought some positivity within the industry.”

Pic courtesy: House of Hiranandani

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For NRI investors, Adhiraj Constructions have a special pre-launch offer for their project Samyama at Kharghar where customers making larger investments and purchasing multiple apartments are being given a special price offer. Talking about the benefits of the offer, Ajay Kapoor, Chief Excecutive Officer, Adhiraj Constructions says, “Customers will stand to get some short-term and long-term gains depending on when they plan to sell. Their ultimate return on investment will increase basis on the volume of investment. Customers should focus  on  Navi Mumbai as  the  best option because of limited supply, tremendous infrastructure growth and planned growth in the next five years. The ticket size as well as the planned infrastructure appeals to the rising class of working professionals.”

Ashwinder Raj Singh, CEO - Residential Services, JLL India: “Things like regular discounts and attractive payment plans are already in place and will continue during the festive period. Developers will still want to think out of the box and come up with creative offers during the festive period. These might not be very different in terms of financial benefits, but the packaging can surely be expected to create more buzz in the realty market. One can look out for limited-period offers during the festivals - like added amenities and additions like free modular kitchens and white goods. Clients may expect free parking spaces during these festivals, which definitely adds a tangible value.” In the south, House of Hiranandani has come up with unique festive offers for their projects at Chennai and Bengaluru. Prashant Mirkar, Vice-President, Marketing & Sales, House of Hiranandani explains, “Festivals like Navratri, Diwali, Akshay Tritiya, Ganesh Chaturthi and Pongal still govern the buyers’ psyche across the country with several property seekers advancing or postponing their purchase decisions to coincide with a festival. The upbeat environment and positive sentiment among investors and homebuyers make the festive season a win-win for both developers and buyers alike. Potential home-buyers associate the festive season with security and prosperity. Steady prices, offers, and traditional influence for making new purchases on auspicious festive days are major factors that make buying a home a propitious deal during the festive period.” This festive season, at their integrated community in Egattur, Old Mahabalipuram Road, Chennai, aspiring home buyers in select towers can pay only 25 per cent upfront and book the flat. The remaining 75 per cent can be paid at the time of possession and in the interim the group will pay rent to the customers. Mr. Mirkar says, “Home buyers stand to save

Pic courtesy: Sheth Group

In Pune, many developers like Guardian Developers, Nyati Group, Kohinoor Group, Dajikaka Gadgil Developers are offering zero-per cent interest schemes that result into substantial savings along with generation of an asset called home. Also, free stamp duty and registration offers have been lined up on several projects that make for an interesting deal.

““Festivals like Navratri, Diwali, Akshay Tritiya, Ganesh Chaturthi and Pongal still govern the buyers’ psyche across the country with several property seekers advancing or postponing their purchase decisions to coincide with a festival. Prashant Mirkar Vice-President, Marketing & Sales, House of Hiranandani

up to five per cent on the total cost of the house. Under the scheme, we will also pay the rent to buyers for 18 months from the date of purchase. This will ensure that they save a significant part of the interest cost on their dream home.” Egattur is spread over 120 acres and is located on Old Mahabalipuram Road, opposite the SIPCOT IT park. Bannerghatta is closer to Banerghatta National Park, Electronic City, IIM Bengaluru and Apollo Hospitals. Here the group has come up with a static floor rise waiver for their Banerghatta, Bengaluru project, under which customers

will not have to pay any floor rise for higher floors, in select towers. This offer provides scope for capital appreciation to the buyers from the day of booking as they stand to save up to seven per cent on the total cost of the house. The overall sentiment in the Indian real estate market seems to be improving. Mr. Mirkar adds, “The mid-range segment that we cater to continues to hold steady as we have built excellent projects. We definitely could see a steady improvement in 2016 on the back of gradual improvement in the overall economy supported by the government's thrust on infrastructure and urban development should augur well for the industry. We believe the next five years will be excellent for the real estate sector. One should invest in locations that are witnessing good infrastructure development, as capital appreciation will be higher here. In Goa, Vianaar Homes are giving away furnished homes to a limited few in the festive period. Varun Nagpal, Managing Director, Vianaar Homes says, “The festive season is considered to be an auspicious time of the year. In the last one year, Goa has turned out to be a lucrative investment option and offers great value for money. We have seen a tremendous boost in sales over the last 12 months. In the festive period, we at Vianaar are offering furnished apartments to a limited number of people. Those who buy with us stand to get a furnished apartment, which will be done up by our in-house team that comprises architects and interior designers. The scheme will be applicable to all our projects during the festive season till Diwali.” So take the advantage of festive offers and make the investment in your dream home today! Have a happy festive season! 9


TREND WATCH

October 2015

B u y i n g a H om e ? G o f o r a G o o d B r a n d With Indian real estate becoming more organised and attractive to international buyers, branding is playing an important role, giving customers a differentiated experience and pride of ownership, says ARCHANA SINHA

Pic courtesy: Kalpataru

QUICK FACTS • As the Indian real estate market gains maturity, both developers and buyers are recognising the importance of branding. • Branded homes offer clear titles, quality and a sense of exclusivity for the home owner.

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hile real estate has always been a growing industry sector, it has been most forthright in adopting emerging trends. Today real estate sells by its brand value and this is becoming an important trend in the cities where people are more educated and more travelled, living a certain lifestyle. Status-conscious property buyers, being more demanding, stress on brands as it gives them the assurance as well as the identity of being in a certain class, with which they like to identify. National Capital Region (NCR) and Delhi, Mumbai, Pune, Bengaluru, Chennai and Kolkata have awaken to this fact for the past few years and are offering world-class properties with A-grade constructions, amenities and services. Established developers have been working on branding for a long time and by now Hiranandani Group, Lodha Group, Rustomjee, Ansal, DLF, Unitech, Prestige Group, Goel Ganga, Rohan Builders, Marvel Realtors, Brigade Group, VGN Constructions, Hiland Group, Bengal Shrachi, Tata Housing , Godrej Properties, to name just a few, have become nation-wide names to reckon with.

“Currently there could be more than 200 recognisable players in India who have worked on strengthening, enhancing and sustaining their brand values in the last 10 to 15 years,” says Mr. Niranjan Hiranandani, MD, Hiranandani Group, Mumbai, who has been the first developer in India to consciously work on branding. “If you remember the beginning years of our Township in Mumbai, the project was planned with a lot of research behind it, the construction quality, the amenities, the building of office complexes, malls, schools, hospital etc… they were all a part of our branding exercise. We did not want to just offer homes, but a whole new experience of living in a certain style, with certain amenities, schools and hospitals that were built within a walkable distance from the housing complex. People with a decent income, who are investing for a lifetime experience of living in a quality home, look for a residence with a brand to call their own,” he adds with pride. Today, of course, the concept of branded homes in India has www.indiapropertyinsider.in | A

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taken yet another dimension, which includes prestigious homes at signature addresses, along with tie-ups with international luxury hospitality or lifestyle brands, architects, interior designers, and world-renowned service providers to offer a differentiated experience to the buyers by creating unique and highly differentiated offerings. Some of these may offer highly evolved, centralised facilities management in addition to features such as concierge services, high-grade electronic surveillance and security and valet parking. These factors have high appeal value, especially to buyers who have resided in such homes abroad and aspire to live at such levels in India too. Mr. Samujjwal Ghosh, Head - Marketing, Lodha Group, Mumbai, who have projects in major cities of India, opines, “A strong and recognisable brand is a key attribute in any industry. It increases customer confidence, shapes the ownership experience and influences the buying decision. We believe in developing and marketing our products as brands rather than commodities. Our portfolio comprises brands with a clear positioning and a distinct brand promise to the consumer. Each brand affords the consumer a unique lifestyle which he/ she relates to or aspires for. So while a Lodha Fiorenza makes a promise of a ‘fashionable life’, Lodha Belmondo in Pune aims to bring a ‘luxury resort lifestyle’ to your backyard and a project like The Park promises ‘a richer life’. What does it mean for an end-consumer? Once the brand starts living up to its promise, it forms a bond with the consumer which he/ she may decide to flaunt in his/ her social circles purely as a badge or just quietly feel content and bask in a sense of achievement for having acquired a property of that nature.”

Pic courtesy: Godrej Properties

He adds, “Branded homes are superior to other products in their respective micro-markets in every conceivable way from superiority in the core product (internal and external amenities), unmatched services (for example, concierge, butler)

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to nurturing relations with the ever growing customer base and thereby making them feel a part of an exclusive, elite circle”.

moderate values, between ` 50 lakh to 2.5 crores, depending on the areas and the cities they are offered in.

Girish Shah, Chief Marketing Officer, Godrej Properties Limited, adds, “Real estate purchases are among the most expensive purchases for most customers. One buys a house once or twice in one's lifetime and hence it is really important for customers to choose the right developer when it comes to buying the home of their dreams. We strongly believe in creating projects keeping the customer interests in mind. Simple comforts of life are what most customers look for when buying a home and we make sure we deliver homes which are high on quality, space and sustainability. At Godrej Properties, our aim is to deliver superior value to all our stakeholders through extraordinary and imaginative spaces which are created out of deep customer focus and insight. To this end, we collaborate with some of the world’s leading associates and partners to make sure our customers are given the best. “

Swaroop Anish - Executive Director, Business Development Prestige Group, Bengaluru, says, “It is an undeniable fact that buying a branded home enhances a status symbol as people proudly flaunt their brand of clothes, accessories and cars. In today’s aspirational society brands reflect certain character and stand for certain values. Real estate has been treated with a considerable amount of suspicion and apprehension by the wider public due to the lack of regulatory oversight in the past. A large number of unscrupulous developers often took buyers’ money, either delivered poor quality final products or, in many unfortunate circumstances, failed to deliver at all.

CUSTOMISED SERVICES Growth of this segment could be pegged at roughly five to six per cent per annum, owing to the fact that it is a very exclusive niche category with a restricted number of buyers. Developers of branded luxury homes are generally happy to provide personal customisation to their buyers as long as these customisations do not detract from the overall project specifications, aesthetics and integrity of design and function. These homes could be priced in the range of ` 2.5 to 10 crores. However home buyers in the mid-income group and midhigh income group also look for reputed brands, when buying a home; and this comprises almost 50 per cent of buyers. The growth rate of this segment is highest, pegging at 15-20 per cent annual growth of the asset value. These homes come at

"People would therefore prefer to invest with a reputed developer they can trust. Today, our esteemed patrons turn to the Prestige Group for their residential and commercial needs with no hesitation or anxiety about whether we will deliver on our promises. Also, home buyers aspire to buy Prestige homes, given that brand ‘Prestige’ has gained the reputation of being one of the most trusted and aspirational brands in the country. The brand has displayed appreciation in terms of sale and rental values over time.”

INTERNATIONAL TIE-UPS A number of top builders like Lodha Group, Sunteck, Oberoi Realty, Provenance Land, Panchshil Realty, Marvel, Paranjape Schemes, Puravankara, Brigade, and many others have worked hard to build their brands even in a situation when real estate is still not fully organised. For their super luxury, top-of the line category of properties, they have tied up with international names such as Philippe Starck and Kelly Hoppen, Armani, Donald Trump and others, to build such properties in Delhi, Mumbai, Pune and other cities. For their mid-income segments too they have invested heavily in hiring the best of talents who can give unique offerings in terms of superior designing and construction, and good amenities.

“A strong and recognisable brand is a key attribute in any industry. It increases customer confidence, shapes the ownership experience and influences the buying decision." Samujjwal Ghosh Head - Marketing, Lodha Group

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Speaking about the advantages of these homes, Mr Surendra Hiranandani, Founder and Director, House Of Hiranandani, says, “The title of the project will be clear, free from any legal hassles and there will be adherence to delivery schedules. Branded homes enhance the status quotient of the person residing in them and command a premium over other projects in the cities.”

consumer groups. While Palava (a Lodha project) may be the aspirations for the mid-income group, a product like The World Towers is for the most discerning connoisseurs of luxury. Branded homes resonate with the aspirations of the consumer while creating a community of like-minded people, thereby creating a sense of pride and badge value.”

Mr Swaroop Anish of Prestige Group agrees. “A known brand has all their legal paperwork in place and there will be no legal ramifications with a property bought from them. Moreover, they are able to offer a wider range of amenities and facilities within the development. In addition, property management is a service offered by us to ensure upkeep and management in the years to come. It is this critical service that ensures a happy community.”

CREDIBILITY IS THE KEY

Mr. Anish also feels that those who can afford it will always opt for a reputed developer as they are confident of receiving the exact finished product as was promised to them at the pre-construction stage.” With a rapid increase in the disposable income of a larger section of the population today, this trend is gaining in popularity as more and more people are turning to real estate as a lucrative form of investment and they prefer to invest with a trusted brand,” he says. A trusted brand ensures superior quality construction. Track record of timely delivery and an effective after-sales relationship reaffirms the leadership position in the market. “Any query or complaint from any client, past or present is treated with same urgency and priority. A past client is never neglected just because the sale is over and neither does the client’ relationship with the company end there. Our customers in India and abroad, are kept abreast of all developments within the company through Falcon News- the quarterly, in-house magazine with a circulation of over 27,000," he informs.

Pic courtesy: Lodha Group

A Kalpataru Spokesperson says, “Consumers today swear by brand names for just about everything. Developers make a name for themselves over the decades through the quality of their construction and timely delivery. Credibility is the key to their brand recognition. The biggest advantage of investing in branded properties is a significant return on investment. Transparency in dealings is a key attribute and one’s investment is secure. For most people, investing in a property often means applying for a home loan. With a reputed developer one’s home loan gets sanctioned easily, as most banks already have tie-ups in place with reputed developers. In terms of the amenities offered and the materials used one definitely has an edge if he/she goes with a branded developer. Better upkeep, better security, proper maintenance of gardens, clubhouse and other common areas, among other things, add to the value and appreciation of the property over time”.

A known brand has all their legal paperwork in place and there will be no legal ramifications with a property bought from them" Swaroop Anish, Prestige Group

AN ELITE CLUB Who are the buyers? Pranay Vakil, Chairman, Praron Consultancy (I) Pvt. Ltd. says, "Today the category of branded home buyers has broadened dramatically. Welleducated, well-travelled and brand-conscious wealthy buyers are found in a large number and depending on their requirement and needs they normally go for reputed names which have a considerable brand value. For the super-rich buyers buying such a house with super-special amenities and interiors is akin to entering an elite club.” Samujjwal Ghosh from Lodha Group adds, “Branded homes that are best in class have found traction across

Around the world, branded residences have been seen as unique, irreplaceable and extremely coveted assets. New York, London, European cities, or the fast growing Middle East real estate markets are seeing the same phenomenon of rising importance of brands as the most sought after for residences, malls and multiplexes. Companies invest a great deal of time and energy in the talents that help enhancing the brand value. “It is not easy to bring to the table the technology, ideas, designs and architectural excellence that modern buildings demand. Only experienced and reputed construction companies can bring these to the table and integrate these with our indigenous requirements to offer a holistic living experience,” says Sujay Kalele, Chief Executive Officer, KoltePatil Development Company, Pune. Of course, these homes are a little more expensive. Surendra Hiranandani justifies this by saying, “The higher costs are due to the product differentiation in terms of quality of architecture, spacing, quality of construction materials, amenities and landscaping that make it unique from the other properties. Such projects are usually located in central locations in a city, thereby giving easy access to commercial and leisure destinations.” According to a Knight Frank report, branded residences command a premium with an average off-take of 34 per cent as compared to equivalent non-branded schemes across the world; customers recognise the value of branded residences and are willing to pay a premium of 25 - 40 per cent globally – a phenomenon which is being witnessed in India too. Speaking about the future of this segment of real estate development, Surendra Hiranandani says, "The market has become more demanding for such homes with the new breed of young, highly educated professionals and businessmen preferring such homes. These individuals frequently travel abroad and live in branded residences. The trend has deepened with prominent developers partnering with international designers and star hotel brands to develop such residences. Along with higher economic growth, we will continue to see a surge in the number of branded residences here.” Anshuman Magazine, managing director, CBRE South Asia, says “As the Indian market evolves, and becomes more organised the demand for these products will only increase. With increasing competition and consumers becoming discerning, developers have to differentiate in a crowded market." At present, many projects are under construction and many have completed one or two phases. Once more projects are delivered across the country, Mr Magazine explains, it will give more confidence to people and the demand will rise. 13


MICRO-MARKETS

October 2015

Pow a i I s No L on ge r J u s t A P i c n i c S p o t The Powai-Kanjurmarg-Bhandup belt offers natural beauty, excellent connectivity and high-end lifestyles in upmarket projects, says RAINA ASSAINAR

QUICK FACTS • The Powai-Kanjurmar-Bhandup belt has been transformed into a buzzing locality in recent times, with high-end projects and good social infrastructure.

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rom 'Where is Powai?' to an envious 'Oh, Powai!' this suburban location in north-eastern Mumbai has grown tremendously, not just as a real estate hub but also as a symbol of a luxurious life. “There was a time when people would ask where Powai was located but now the name itself is enough,” says Mukesh Trivedi, a resident of the area. He adds, “Initially people would understand Powai only when they were told it was the same place that school children were taken for picnics, or where Indian Institute of Technology (IIT) was situated. However with the booming real estate and the way it is developed now, Powai needs no introduction.” For non-resident Indians (NRIs) especially, who prefer a culturally rich 'hot-spot', Powai offers a world of culture, comfort and premium lifestyle. “It is the most coveted neighbourhood and personifies exclusivity and high living where life is transformed in a grand way. It is an ode to the discerning resident who is well deserving of the luxuries life has to offer and is meant for the elite. These magnificent homes that offer a world of comfort, underline exclusivity and tranquility that every NRI would want to have in their home country,” says C J Mathews, Assistant Vice-President (AVP) - Marketing at Rajesh LifeSpaces. Powai, which is situated at the bank of Powai lake, is bounded by the hills of Vikhroli Parksite to the southeast, Chandivali to the south-west, the L.B.S. Marg to

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Pic courtesy: Hiranandani Group

• Improved connectivity makes these locations even more attractive to home buyers.

the north-east and the Sanjay Gandhi National Park to the north beyond the lake, which makes Powai a complete package of nature’s beauty. The nearest railway stations are Vikhroli and Kanjurmarg on the Central line. JogeshwariVikhroli Link Road ( JVLR), which connects the western and eastern suburbs, passes through Powai, making this one of the best connected locations in Mumbai. Simultaneously, Kanjurmarg, which was known for being an industrial area, is also now sought by investors due to its proximity to Powai and connectivity along with urban facilities and lush green landscape that has changed Kanjurmarg over the years. Its strategic east-central location allows excellent connectivity, making it accessible from every corner of the city. Approximately five km. from Powai is Bhandup, another destination that has been booming in recent years. Located in central Mumbai, Bhandup is one of the upcoming real estate hot-spots in recent times. In terms of social infrastructure, Bhandup has all the required elements to enhance the lifestyle of the residents. From international schools to hospitals providing healthcare facilities on par with international standards and entertainment zones and malls, the suburb has everything that the modern generation looks forward to while looking for residences. “Very few people know that Bhandup has been one of the first industry hot-spots in Mumbai. Also, Bhandup has Mumbai’s biggest water filtration plant at

Bhandup complex. However, in the past decade, there have been drastic changes in the area in terms of infrastructure, transportation connectivity and lifestyle that has uplifted the Bhandup location as a worthwhile real estate investment destination,” says a spokesperson from Kalpataru group. ‘Eco Winds’ by Ecohomes Constructions Pvt. Ltd. in Bhandup, is an option available for investors interested in having a lifestyle at Bhandup. Apartments in this project are available in 1 and 2 BHK configurations across 20 floors in two wings. Strategically located close to landmarks such as the Neptune Mall, Dream Mall, Wockhardt Hospital and Pawar Public School, facilities like education, healthcare, leisure and entertainment will always be close at hand. “The project reflects the group’s eco-friendly philosophy and pioneering green initiatives, while creating quality homes and commercial projects,” says Mr. Gaurav Monga, Director, Ecohomes Constructions Pvt. Ltd. A laandscaped garden with children’s play area, swimming pool, multi-purpose hall, indoor games and fitness centre are some of the amenities that the project has to offer. “Bhandup, Kanjurmarg, Mulund have historically been industrial hubs with loads of factories. Over the last 20 years, most large factories particularly in Mulund and Kanjurmarg have shut shop or moved outside city limits which has led to unprecedented growth in residential development in both these areas where www.indiapropertyinsider.in | A

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the factories used to be. The prices in both these locations have shot up exponentially over the last decade. Even though Bhandup was late to catch on, this node has seen lot of development in the last five to seven years,” Mr. Monga adds. "Over the years, Vikhroli, Kanjurmarg and Powai have emerged as an important key residential market due to business centres in the vicinity, explains Mr Diipesh Bhagtani, Executive Director, Jaycee Homes. "The housing supply in this area has been growing at an approximate rate of 10 per cent for the past four years and for it now accounts for approximately 18 per cent of Mumbai’s total housing stock. With growing residential activity, retailer interest in the market has understandably increased too, leading to the development of large-scale organised retail in the region. Commercial office space activity has also gathered momentum in this region, which has become the preferred destination for cost-sensitive IT firms.  This transformation is pioneered by the availability of an abundant talent pool in the vicinity and large developable land." He also points out that the Powai-Kanjurmarg belt has grown tremendously after the development of important roads such as Jogeshwari-Vikhroli Link Road ( JVLR) and LBS (Lal Bahadur Shastri Marg) which has made it more commutable. Also The Eastern Express Highway (EEH), which connects the eastern suburbs, is closely linked to Powai and Kanjurmarg. "The Mumbai International Airport is just about five km away from Powai; this has created an upward trend of property values in Powai, Kanjurmarg and Vikhroli," he explains.

A WELL CONNECTED SUBURB With almost all the major multinationals having their corporate offices at Powai, the Powai-Kanjurmarg belt has now become an ideal location for corporates looking for a

Besides connectivity, Kanjurmarg and Powai are quite selfsufficient in terms of social infrastructure and facilities with the presence of prominent schools, colleges and hospitals along with a number of shopping and entertainment hubs in the vicinity. “I have lived all my life in Powai and have seen this magnificent change in this place. From a mere jungle-like area to a beautiful developed city that is not only peaceful and beautiful, retaining its natural aura, it is also developed like any other city in all ways. During our times, we had to travel to Ghatkopar for schooling and medication but now Powai boasts of several international schools and the best hospitals,” Mukesh Trivedi says. Similarly, Bhandup is also extremely well connected with the rest of the city through a dense road network. It is also one central location that has easy connectivity to Mumbai, Thane and Navi Mumbai. The arterial road of Bhandup West is L.B.S. Marg which on one hand is a straight highway connecting Mulund to Sion and on another to Mulund-check naka that opens door to Thane city. However, Bhandup East is flanked by the Eastern Express highway. The Airoli-Mulund bridge easily connects to Navi Mumbai

cutting through Eastern Express highway. The JogeshwariVikhroli Link Road from L.B.S Marg shortens commuting time to reach the western suburbs of Mumbai. Besides, Nahur railway station near Bhandup has improved the traffic at Bhandup station and areas like Datta Mandir Road and L.B.S Marg are easily accessible from Nahur station.

PLUSH PROJECTS Hiranandani Group were among the first developers who changed the face of Powai and its identity by developing Hiranandani Gardens. Hiranandani Gardens is the premier integrated real estate development in the Powai real estate micro-market. “Our Group had forayed into construction at Andheri, and we were not satisfied merely doing concrete and iron structures. We were looking for a larger canvas to create an environment, which no one had attempted earlier," says Niranjan Hiranandani, Chairman and Managing Director (CMD), Hiranandani Group. "Moreover, Powai was a place that no builder ventured to buy and build those days. Slightly more than 25 years ago, at this location, which was a barren hillock, it was a dream - the desire to create a community lifestyle which would be better than anything similar that existed at that time. And the result of the desire is Hiranandani Gardens,  the 250-acre site which is surrounded by enough greenery, panoramic vistas of the scenic Powai Lake, Majestic National Park Hills and lush woods of Aarey Milk Colony,” he adds. This township also has medical, academic, retail, hospitality and entertainment facilities integrated within it.  Mr. Hiranandani further states, “When we started, more than 25 years ago, the price point ranged from ` 450 (in 1987) per sq. ft.

Pic courtesy: Runwal Group

For L&T Realty, their headquarters being located at Powai, they chose this place for their residential and commercial projects. “We realised that Powai is a land bank and over the years has transformed into a sought-after location, not just for residential purposes but also commercially. Most businesses have their start-ups from Powai,” says an L&T spokesperson. Most of the automation, electrical and engineering factories which were once present in Powai are all now relocated outside Powai making it a more peaceful and less polluted place to stay. Due to the presence of the lake in the place, the climate is relatively cooler than other places of Mumbai. “Besides all these reasons, connectivity plays a major role in making Powai a better place to stay,” the L&T spokesperson adds. L&T Realty's upcoming new residential development in Powai Emerald Isle is built with environmentally thoughtful design and serene green surroundings. A gated complex situated across-theroad from Powai Lake and Garden, the project offers 2 and 3 BHK apartments along with its exclusive lake-facing 4 BHK apartments. “All apartments have beautiful aesthetics, finish and modern conveniences. This project is located adjacent to L&T Business Park, and is close to key business district of MIDC, SEEPZ and BKC,” says the L & T spokesperson.

great residential deal in close proximity to their workplace. Easy access to SEEPZ, Vikhroli and even Thane, which are major hubs of industries and corporate offices, has made Powai and Kanjurmarg a favourite residential destination among the urban working class. The peace and serenity that these places have to offer adds to the advantages. For areas which are not accessible by train, Powai and Kanjurmarg are a boon, owing to their connectivity to the Eastern Express Highway via a flyover that runs across the Central Railway line. 

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MICRO-MARKETS

to the present day, when it ranges from ` 23,100 +floor rise (on the lowest side) to ` 28,250 + floor rise (on the highest side).”The township’s skyline is set apart by the use of classic Greco-Roman architectural influences, especially at the upper levels.

A spokesperson from Runwal Group says, “The highest demand for homes in Mumbai continues to be in and around the primary and secondary business districts, with connectivity being the primary agenda for home buyers. In this regard, Kanjurmarg notches up several points higher. The JVLR and LBS Marg provide easy accessibility to other parts of Mumbai, which makes Kanjurmarg a convenient place to reside.” Runwal Forest in Kanjurmarg (west) is one such project that interests office-goers from the nearby areas. Comprising 12 towers ranging from 36 to 48 floors with options of 2 and 3BHKs, this project is sprawled over 16 acres with a centralised spread of a five-acre open green area. Views of all three vistas of the city–Powai lake, Thane creek and hill views are an added attraction of this project which could be enjoyed from the spacious rooms of bold, minimalist lines of architectural aesthetics, which has wide windows offering sweeping panoramas from all three sides. Amenities like swimming pool, cricket pitch, senior citizen's area, cycling and jogging track (600m), lotus pond, Zen garden, yoga zone, Jain temple, forest trail (300m), children’s play area, landscape area are added attractions to this project by Runwal. Runwal Bliss, another residential project at 16

Gaurav Monga, Director, Ecohomes Constructions Pvt. Ltd

Pic courtesy: Ecohomes Constructions

Rajesh LifeSpaces have two existing projects in Powai—a residential project, Raj Grandeur, and a hospitality project, Radisson Blu Plaza. Citing the reason for choosing Powai for their projects, CJ Mathews at Rajesh LifeSpaces says, “Apart from having a robust civic and social infrastructure, Powai has the city's most cosmopolitan and modernised cultures and also a vibrant night-life. Shoots for Bollywood and Hollywood movies also happen here. JVLR, Santacruz-Chembur Link Road and nearby railway stations improve the connectivity of the place. The 11-kilometre stretch of the Mumbai Metro Rail connects Versova to Ghatkopar, besides; a stretch of about 8.8 kms from Chembur to Wadala is already operational.” Mr. Mathews further mentions that Central Avenue road, South Avenue road, High Street, Krishna Nagar and Technology Street are the prime locations in Powai due to the presence of luxury hotels, mega stores, offices, manufacturing plants, malls and health-care centres in its vicinity. Hence, a perfect back-drop for realty growth is provided in these regions. Raj Grandeur offers two 30-storey towers with 3 and 4 BHK apartments that resemble splendid mansions rising high in the air and are tailor-made to match luxurious tastes. A lavish clubhouse, a well-furnished and state-of-the-art gymnasium, a pristine pool designed in contemporary taste, Jacuzzi and sauna, yoga and meditation area, a mini amphi-theatre, a festive area for vibrant social gatherings, a coffee lounge for casual rendezvous, a versatile barbeque backyard for impromptu brunches, a landscaped garden with children's play area, abundant spaces and an un-hindered view of the city skyline are some of the best features of this project.

"Bhandup, Kanjurmarg, Mulund have historically been industrial hubs. Over the last 20 years, most large factories particularly in Mulund and Kanjurmarg, have shut shop or moved outside city limits which has led to unprecedented growth in residential development" -

Kanjurmarg (east), with similar amenities offers apartments in 1.5, 2 and 3 BHK. Meanwhile, LBS Marg is the prime location in Bhandup as it is well connected to nearby suburbs of Ghatkopar, Vikhroli and Thane through the Eastern Express Highway and the Jogeshwari-Vikhroli Link Road and has easy access to Powai and Ghatkopar, confirms a spokesperson from Kalpataru group. “Considering various factors like growing infrastructure, wide connectivity and improved lifestyle, many leading real estate developers have their presence in Bhandup, making it a new and up-market residential area in the north-eastern suburbs. The population of Bhandup has risen exponentially in the last two decades. Over

October 2015

the last decade, the area has turned into a cosmopolitan society,” says the Kalpataru spokesperson. Kalpataru Crest is a landmark address located right in the heart of Bhandup. Situated on LBS Marg and a few minutes away from the Eastern Express Highway, Kalpataru Crest is nestled amidst all of life’s luxuries. With easy access to GoregaonMulund link road and placed close to the major IT parks in Vikhroli, Powai and Airoli, Kalpataru Crest redefines luxury living in the heart of the city. Located in the midst of a tranquil environment of Bhandup, the exquisite multi storey towers offer air-conditioned 2BHK and 3 BHK apartments which are designed by experts keeping in mind the needs and demands of the modern home buyers. A club house, swimming pool, toddler’s pool, gymnasium, open air Jacuzzi, a luxurious spa, squash court, poolside cabana, Barbeque area, party lawn and picnic spot, Squash court, jogging track and cricket pitch are some of the amenities offered in this project. “These amenities ensure the home buyers have a rich living experience and spend a quality lifestyle with their family. Our efforts towards environment have been acknowledged by national and international agencies by awarding us in different categories. Kalpataru Crest follows sustainable development and green practices such as rain water harvesting, sewage water treatment plant, vast open spaces, solar water heating system amongst others,” the Kalpataru spokesperson says.  "Current residential prices in Powai are around ` 16,00021,000 per sq. ft. while they were ` 9,000-18,000 in 2008 -the peak of prices that India saw then. Meanwhile, in Kanjurmarg, the current prices are around ` 10,000-15,000 per sq. ft. and were around ` 8,000-10,000 in the year 2008. Powai is an established premier neighbourhood with high demand while Kanjurmarg is emerging residential suburb transforming from its earlier industrial character, so these are good areas to buy residential property,” says Ashutosh Limaye, National Head-Research, JLL India. Speaking of Bhandup, he adds"Current residential rates in Bhandup are from ` 8,900 psft to ` 16,500 psft. Prices on both sides of this range are on account of “outlier” projects, otherwise the range is between ` 9,500 psft to ` 12,500. In year 2008, the prices were ` 5,500 to ` 7,000 psft."

INFRASTRUCTURE GROWTH By investing in properties at Powai and Kanjurmarg, one can be assured of high returns in the future. The upcoming development plans that have been planned for Powai are sure to boost real estate prices. MMRDA has announced a 1.6 km elevated road from Bandra-Kurla Complex to Sion. Also a Monorail line is being planned between Chembur and Jacob Circle via Wadala, of which the Chembur-Wadala stretch is expected to be operational by the end of the year. The proposed Goregaon–Mulund link road will improve the east-west connectivity. CJ Mathews opines, “These developments could accelerate the real estate activity making it a hot investment destination.” www.indiapropertyinsider.in | A

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October 2015

I n d u s t r i a l G row t h M a k e s No i d a a D e s t i n a t i on o f C h o i c e Amidst lush greenery, world-class infrastructure, open spaces and numerous residential options, Noida in North India has emerged as an attractive option for the future, says PRACHI BARI

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oida, an acronym for New Okhla Industrial Development Authority, forms part of the National Capital Region (NCR) and came into existence on April 17, 1976, under the Uttar Pradesh Industrial Area Development Act 1976.  It is now a planned, integrated, modern industrial city, one of the largest planned industrial townships in Asia, and is well connected to Delhi through a network of roads, national highways and the ultra-modern DND flyover, offering inter-road linkages to all parts of the country. Spread over 20,316 hectares, with many sectors fully developed, Noida offers a pollution-free high standard of living and highly supportive industrial environment with its unique infrastructure providing numerous matchless facilities.   The latest feather in the cap for this new city is the IT boom with Infosys coming to Noida bringing in 25,000 employees. “This will definitely spiral development of the area,” states Jeevendra Srivastava, General Manager, Marketing, Lotus Greens, one of the most sought after developers in Noida. Real estate in North India is suddenly looking up, especially  Noida, which borders Delhi on its East.  The NCR is the metropolitan area which encompasses the entire National Capital territory of Delhi as well as the urban areas surrounding it in the neighbouring states of Haryana, Uttar Pradesh and Rajasthan. Uttar Pradesh is witnessing a silent but steady transformation towards all-round development. With the second largest Gross State Domestic Product (GSDP) in the country, the state economy has grown at a brisk pace of more than seven per cent in the last three years.   The area has seen development in terms of commercial and residential realty, coupled with social infrastructure developments like hospitals, schools and colleges of international stature.  The Union Cabinet approval's for an international airport in the NCR at Jewar is a welcome move as it will cater to the vast numbers of the eight crore population in the region, who are so far dependent on a single airport in Delhi, not conveniently accessible especially to Noida and Greater Noida. The development authorities of Noida and Greater Noida have also joined hands with Delhi Metro Rail Corporation for two metro extensions

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QUICK FACTS • Close to Delhi, yet away from the dirt, grime and pollution, and part of the National Capital Region, Noida is one of the largest planned industrial townships in Asia. • Though it is known for affordable housing projects, numerous luxury projects are underway as well as in the pipeline in Noida and adjoining areas.

from City Centre to Noida Sector 62 and Greater Noida, likely to be completed by 2017.

VARIED OPTIONS Amidst lush greenery, world-class infrastructure, open spaces and numerous residential options, Noida has emerged as a destination of choice of the future. The availability of varied residential and commercial real estate options makes Noida appealing to the vast majority of professionals who can choose residences close to their workplace. With the real estate market in Delhi having almost reached saturation point, prospective buyers are looking towards the NCR, paving the way for developers to expedite a range of options for residential, commercial and retail purposes.   Priyanka Mittal Chandran, Head of Accounts, ARD German TV, works in Delhi but does not mind travelling from Noida. “It takes only 20 minutes on the expressway and there are no traffic snarls,” she says. She lives with her husband and

young son on the 20th floor of what is touted as the tallest tower in Noida built by Eldeco Builders. In fact, most of her neighbours have also recently moved in from South Delhi, giving away their kothis on rent to live in Noida,  which is non-polluted and offers value for the property.   Similarly, Puja Sethi loves her villa in Greater Noida. It has six rooms, a lovely lawn in front which is rare these days. She loves this place for it is green, spacious, unpolluted and yet affordable. The only drawback she finds is that there are no decent shopping places and no public transport; on the whole, however, she is happy that she moved.                     “Noida offers the gamut of housing projects from affordable housing to luxury housing in favoured locations. This is coupled with quality construction, open spaces, sustainable development, amenities and attractive accessorising. Favourable and competitive pricing of projects compared to other NCR locations makes the city more rewarding for the prospective home buyers. Backed by tie-ups with global luxury brands and hospitality chains in an emerging mixeduse development format, premium and luxury projects are attracting NRI investors and giving an opportunity to the developers to tap into a highly lucrative segment,” further explains Lotus Green's Jeevendra Srivastava.   Various recent announcements and the infrastructure uplifts of the city have made Noida’s real estate market increasingly attractive.  What favours investors entering  Noida  is the lower pricing factor, which now promises better appreciation and returns on investments.   According to Santhosh Kumar, CEO - Operations, JLL India, Noida  is the answer to any kind of development for housing needs in Delhi NCR. “In terms of inventory,  Noida  has  more options than any other city in the NCR. This area is consequently expanding and growing, and expansion opens opportunities for further growth in real estate. It is for this reason that Noida  now has mature real estate markets for different sets of buyers and investors.” Noida has become the most sought after destination of the NCR region when it comes to buying property due to the  www.indiapropertyinsider.in | A

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October 2015

Pic courtesy: Lotus Greens Developers

availability of varied residential and commercial real estate options, rich infrastructure, open green spaces, emerging spaces and thereby the employment potential of the city. These factors are driving demand for a varied choice of living across target segment clusters and making Noida the preferred destination for mass as well as luxury housing.

INFRASTRUCTURE GROWTH With the fast-paced development in infrastructure in Noida  and its vicinity, real estate growth has picked up considerably over the past few years. There have been announcements for many new projects as well, leading to a positive effect on the real estate market.  “Going down the stretch from Pari Chowk in Greater Noida towards Agra used to be a test of your driving endurance until a few years ago. Switch to the present and a ride on this same stretch feels like a pleasure cruise. The opening of the Buddh International Circuit, a motor racing circuit in Greater Noida, placed the Yamuna Expressway on the world map and has transformed the real estate profile of the whole region,” explains Mr. Srivastava. Today this whole stretch along the Noida-Greater Noida

Expressway and further down the Yamuna Expressway is buzzing with real estate activity. For people who are unable to find housing options in Delhi and the adjoining cities of Noida and Gurgaon, the corridor along Noida-Greater Noida Expressway and Yamuna Expressway has emerged as a favourable hub. There are projects for high-end housing, mid-ticket homes and mass housing, apart from commercial, institutional and hospitality projects. It’s proven that highways and expressways help to unlock the real estate potential of its adjoining region and accelerate development. People want to live in well-planned projects, which have rapid commuting infrastructure that cuts down on travelling time while making it convenient to move around. In the case of Noida-Greater Noida Expressway and Yamuna Expressway, it is amongst the best in the country. There are excellent roads that provide speedy connectivity to the capital city and other parts of the NCR. The region is also set to get Metro rail connectivity, which would propel demand further.   Proximity to the Metro rail is the biggest USP. Also, there are plenty of ready-to-move-in apartments in these sectors, which is another big draw for buyers. Prices are usually between ` 4,500 and ` 5,000 per sq ft. The second pocket is

the area across the Noida expressway. The six-lane expressway connecting Delhi and Noida is home to many luxury projects - the average price of these are around ` 5,000 to ` 7,000 per sq ft. The third pocket is Greater Noida (West), popularly known as  Noida Extension. The average price of property here ranges between ` 2,800 and ` 3,500 per sq ft.   Besides, the Yamuna Expressway also enjoys the strategic locational advantage of being close to the Delhi - Mumbai Industrial Corridor  (DMIC) corridor. The Dadri-NoidaGhaziabad node is expected to cover an area of 200 sq. km east of Yamuna Expressway Industrial Development Authority (YEIDA) and targets a population of two million. This industrial city is proposed to have a multimodal logistics hub, including a truck terminal, cold storage, warehouses and Boraki Railway Station. The station will come up on a 160-hectare land North West of Boraki and has been visualised as a world-class passenger hub which will integrate with an inter-state bus terminal and Metro.   The business focus has helped Noida, Greater Noida and Yamuna Expressway emerge as the preferred destinations for IT, electronics and semi-conductor industries.   Greater Noida has already emerged as a self-sufficient industrial township that is home to about 3,000 industrial units, 19


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Relief for NOIDA Home Buyers In a major relief for more than 60,000 home buyers in Noida, the Central Government has issued a new notification that demarcates a mere 100-metre no-go radius for construction and other activities around the Okhla Bird Sanctuary. The new notification will ensure that all Noida home projects fall outside this zone. The earlier demarcation had created a 10-km eco-sensitive zone around the sanctuary, stopping work in 53 upcoming housing projects, several malls and offices. The National Green Tribunal (NGT) had relied on the wildlife action plan of the government of 2002 and a 2006 order of the Supreme Court, which required governments to draw a legal safety ring—called the eco-sensitive area (ESA—around national parks and sanctuaries where development work would be restricted. However, this would not be the end of the road for the real estate developers. "There is a misconception that marking an eco-sensitive zone will provide an ultimate solution. One has to carefully read the Supreme Court order of 2006, which requires a project that has already been given environment clearance to seek wildlife clearance from the NBWL if the project falls within 10 km of a national park or wildlife sanctuary," said an official. including 100 big players like Yamaha Motors, Hero Honda, New Holland, and Asian Paints, among others. The Yamuna Expressway is likewise expected to grow into a major logistics and warehousing hub in the country, given its proximity to the eastern and western parts of the DMIC. Today, there is huge interest and response for industrial plot schemes floated by the Yamuna Expressway Industrial Development Authority from automobiles, textiles and agro-tech players. Several leading real estate developers have bought lands from Yamuna Expressway Industrial Development Area (YEIDA) and Greater Noida Industrial Development Authority (GNIDA) and are coming up with their projects ranging from townships, plotted and villa developments and apartment complexes along Noida-Greater Noida Expressway and Yamuna Expressway.   Currently, the biggest attraction that this region offers to endusers as well as investors is good quality modern apartments at affordable prices. In the mid-segment price range, one can find a decent two-bedroom apartment in ` 28-30 lakh. Also, as average home prices in Yamuna Expressway locations are significantly lower compared not only with Noida but other regions in the NCR as well, the location offers investors the promise of good price appreciation in the coming years. Going forward, the demand for housing in the region is set to explode given the fact that the projected population growth by 2031 is about 1.5 million in Noida and about 1.2 million in Greater Noida.   Once the number of industries, institutions and commercial/ retail hubs reach a critical mass, as is widely expected in the next few years, the region will witness a remarkable social and economic transformation. Recently, the Noida Authority approved mixed land-use policy in certain sectors and pockets, which will allow offices, retail shops, eateries, and entertainment outlets in industrial 20

“Noida offers the gamut of housing projects from affordable housing to luxury housing in favoured locations. This is coupled with quality construction, open spaces, sustainable development, amenities and attractive accessorising. Favourable and competitive pricing of projects compared to other NCR locations makes the city more rewarding for prospective home buyers." Jeevendra Srivastava General Manager, Marketing, Lotus Greens

and institutional sectors. Likewise, earlier this year, the Haryana Government decided to allow a mixed land use in commercial zones, making it possible for developers to build residential properties in commercial complexes. Mixed land use development refers to projects that offer a combination of residential, institutional, business and retail, integrating their functions. and integrating their functions. By deploying such varied nature of development, mixed-use townships present a holistic advantage for a resident’s ecosystem. According to industry sources, Noida and Gurgaon are the top two cities to fulfill demand of office space for corporates and multinationals. An expected improvement

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of the economy will drive companies on expansion mode and Delhi NCR region is expected to require a total of 3.7 million sq. ft. office area in the current year. Given this scenario, mixed-use development will prove especially beneficial for small or retail buyers looking for small and mid-size office spaces; as there will be greater choice, unlike earlier when commercial and retail spaces were allowed to come up on land demarcated for commercial use.   Though Noida is known for its affordable housing projects, there are numerous luxury projects underway as well as in the pipeline in  Noida  and its adjoining areas. Renowned developers like Supertech Ltd, 3C Company, Prateek Group, Lotus Greens and Wave Infratech have launched super-luxury projects with 3-5 BHK apartments of 20004000 sq. ft. and priced in the range of ` 1 crore to ` 3 crore.   The attractive locations  in Noida for an affordable home include Sectors 76, 77, 119 and 120. Areas closer to the Noida-Greater Expressway and Yamuna Expressway also offer properties in the affordable range. Buyers seeking luxurious amenities can consider sectors like 14, 15 and 44.   Since its inception,  Prateek  Group's  reputation has been built on benchmark quality standards. Some of the salient construction projects that have enabled the Prateek Group to achieve superlative industry acclaim include residential projects in NCR. The infrastructural planning of Noida Extension is the best in NCR. The plan to develop this region as a selfsufficient zone that offers employment opportunities to IT and commercial zones as well provide a good lifestyle to its residents is what is attracting buyers, says  Kiran Tyagi, Asst  Manager Sales, Prateek Group.   Yes, it is the right time to buy a home in Noida owing to the availability of varied options in different sectors of the city. “Due to a marginal gap between demand and supply, several lucrative offers in terms of payment schemes like no EMI till possession, assured returns and buy-back policies are available in the market. One should take advantage of the current market dynamics and purchase a property in Noida to secure a good deal. Being closer to the DMIC and the prospects of Greater Noida becoming a smart city will lead to appreciation of property prices in these areas and adjacent ones like Noida. The realty market in Noida at present may be sluggish, but it is expected that property prices will escalate in the next few years owing to the largescale infrastructure development in the city.    Today, it stands as an enviable monument of the concept of integrated industrial townships, with smooth and wide roads, well developed land, uninterrupted power supply, clean and safe drinking water, unfailing telephony, and splendid residential complexes in the serene and peaceful environment with greenery all around. www.indiapropertyinsider.in | A

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MARKET RESEARCH

October 2015

Smaller Cities Are The Next Frontier For De velopment

The potential for growth in real estate in TIER II cities can no longer be ignored by investors and end users of India, according to a September 2015 report by PropEquity

Pic courtesy: Amit Enterprises

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hile the growth prospects in many TIER I cities have saturated, smaller cities may become the next frontier for development, in light of the promised latent growth, and upcoming infrastructure initiatives such as smart city development. In view of this changing environment, PropEquity, which tracks over 16,000 developers, and 65,000 projects in 40 cities across India, has for the first time, studied and ranked the top 19 top TIER II cities of India.

The 19 TIER II cities (consolidated) have emerged with a total market size (annual primary sales) of ` 326 billion, which is less than the market sizes of Bengaluru (at ` 361 Bn) and Mumbai (at `  341 Bn), the report says. Residential absorption in the 19 TIER II cities has fallen by 17 per cent, as against a fall of 32 per cent in the top 14 TIER I cities, in the last two years. On the other hand, the launch prices of tier II cites increased at an annual rate of nine per cent compared to 10 per cent for Tier I cities.

The nine key parameters evaluated to generate the rankings are: Increase in Size of Market, Possession to Launch Ratio, Absorption to Supply Ratio, Absorption growth, Absorption in new launches, Increase in Absorption Prices, Total Unsold Inventory To Yearly Absorption Ratio, Average Delay In Project Execution, and Construction Committed to Construction Completed.

Southern India has outperformed all the other regions in almost all the parameters, with Kochi being ranked number one, followed by Visakhapatnam at number three. Nashik and Vadodara, belonging to the western region, came in the top five, ranked number two and four respectively followed by Trivandrum, Jaipur, Mangalore, Indore and Goa, respectively. Coimbatore occupies the

last spot, in the top 10 rankings. Southern cities have proven to be quite resilient, owing to the fact that they are end user driven markets. "India is prioritising the creation of 100 smart cities – including transformation of 15 among the 19 Tier II cities studied under this report - incorporating the use of solar energy, rain water harvesting, and smart public transportation which will hopefully transform these cities," says Samir Jasuja, Founder and Managing Director, P E Analytics Pvt Ltd. "On the banking front, in spite of high level of gross non-performing assets (NPAs), the consumer spending has steadily shown signs of recovery and the economic platform will hopefully find steady ground in the coming times. Although, other important reforms in taxation and land acquisition are yet to be implemented." 21


MARKET RESEARCH

AGRA

Agra is a tourism driven city with hospitality and industrial sectors as growth drivers. Major North Indian real estate players have a presence here. Upcoming areas include Sikandra, Dayal Bagh, and Shastri Puram. The city is mostly end user driven with most investors belonging to Noida and other parts of National Capital Region (NCR). It is planned as a smart city.

BHIWADI

Industrial areas in and around Bhiwadi, including a huge facility of Honda SIEL, are the major source of employment here. The city is mostly end user driven with significant demand for industrial housing. Investors are mainly from NCR and nearby places. Proximity to NCR and NH8 increases the marketability of the city. Most of the developers here are local with a few NCR players as well.

BHOPAL

Also known as the city of lakes, Bhopal benefits from being the capital of Madhya Pradesh. The city is home to a significant number of government institutions, and is a regional education and manufacturing hub. Areas like Kolar Road, Hoshangabad Road, and Awadhpuri, are witnessing significant real estate (RE) activity. As a regional centre, Bhopal has a sizable investment-driven demand. Infrastructure includes an international airport, Bhopal Metro and plans for a smart city.

COIMBATORE

Coimbatore is a major economic hub in South India, focused on Industrial, IT, and textile sectors. Areas like Saravanampatty, Avinashi Road, Trichy Road, and Vadvalli, have seen significant RE activity in recent years. Located in the Western Ghats, its proximity to popular tourists hubs of South India, give the city an added advantage. Coimbatore has an international airport, a metro and is planned as a smart city.

DEHRADUN

As a gateway to popular tourist destinations of Uttarakhand, Dehradun has seen sizable RE activity in the past couple of years. Areas like Sahastra Dhara road and Mussoorie road have been at the forefront of RE activity. Dehradun has witnessed sizable investment from NCR, and a number of NCR builders are present here. The IT sector has been a major job creator here in the past decade, along with traditional sectors like government and defense. There are plans to develop it as a smart city.

GANDHI NAGAR

The capital of Gujarat, Gandhi Nagar, has a much better infrastructure compared to the rest of India. The city is a hub for IT and education and the presence of GIFT city is further expected to boost both commercial and residential sectors here. Areas like Sargasan Circle, Near Infocity, Koba, and KH Road have witnessed visible development since 2009.

October 2015

The city is primarily end user driven while most investment flows from Ahmedabad. Infrastructure here includes an international airport (dependent on Ahmedabad), a Metro (MetroLink Express Gandhinagar and Ahmedabad) and plans for a smart city.

GOA

Goa is a popular holiday destination with most projects providing row houses, bungalows and sea-view bungalow type configurations. Areas like Candolim, Porvorim, Sancoale, and Margao are the prime destinations for residential development here. While North Goa is a residential hub, the South is a tourist destination. Goa is an end-user driven market, dominated by local developers with few national players. It has an international airport.

INDORE

Indore is the largest city in central India and the only city with an Indian Institute of Technology (IIT) and an Indian Institute of Management (IIM). As a bustling industrial and IT hub, the city has rapidly grown in the last decade. The city already has an operational Bus Rapid Transport System (BRTS) and a flourishing real estate market. The city’s developers are pioneering in affordable housing in areas like Super Corridor, Rau, MR 10, MR 11 Roads, AB Road, and AB Bypass Road. Indore also has a domestic airport and a monorail and is planned as a smart city.

JAIPUR

Jaipur is one of the largest TIER II markets in India, and a popular tourist destination. It is the starting point of the Rajasthan tourist circuit and is home to major large and mid-scale industries, along with being a regional education and IT hub. Area like Jagatpura, Mansarovar Extn, and Vaishali Nagar have seen progressive RE activity in the past few years, witnessing increased activity in affordable and mid housing. With an international airport and a metro, there are plans to convert this into a smart city.

Pic courtesy: ABAD Group

KOCHI

22

Kochi is a major port in South India and is supported by shipping, industrial, tourism, IT, and fisheries sectors, along with a significant remittance inflow from NRIs. Demographics in the city is wealthier compared to most TIER II cities. Most RE investment is from locals and NRIs from Kerala, and hardly from other states of India. Development regulations are also more relaxed here compared to rest of India. Areas like Edapally, Aluva, and Kakkanad are booming because of the IT sector expanding in the city. Infrastructure include an international airport, a metro and plans for a smart city. www.indiapropertyinsider.in | A

MEDIA PUBLICATION


MARKET RESEARCH

October 2015

Source: Prop Equity

LUCKNOW

Capital of the most populous state in India, Lucknow offers good infrastructure and connectivity. The economy is driven by manufacturing, government entities, education, and IT industries. Areas on Kanpur road, Sitapur road, and Faizabad road have seen sizable RE development. All top NCR developers have a presence in the city. The city’s RE demand is mostly end-user driven. Most outside investment comes from Ghaziabad, Varanasi, Gorakhpur, and Kanpur. It is being planned as a smart city, and has an international airport and metro.

MANGALORE

As a port city, Mangalore has benefited from export and import related industries Advent of IT and education sectors in the city has spurred an RE spree in the city with investments from both locals and NRIs. Areas on Edapally - Panvel highway and Airport road have witnessed surging residential supply since 2010- 2011. It has an international airport.

MOHALI

As part of Tri-city, Mohali is following a planned development model. Major north developers are present here. Areas like Kharar – Landran road, Faizabad Road, and sector 65 & above, are witnessing an RE boom. The city’s economy is dependent on manufacturing, IT, and government entities. While it is end-user driven, investment is also flowing from Ludhiana and Jalandhar. While low rises were most sought after earlier, high rises are also becoming increasingly popular.

NAGPUR

Also known as the 'Tiger Capital of India' due to its proximity to many tiger reserves, Nagpur is one of the fastest 24

Infrastructure includes a domestic airport, metro and plans for a smart city.

QUICK FACTS • A new study of Tier II cities finds that Southern India has outperformed all the other regions in almost all the parameters, with Kochi being ranked number one. • Visakhapatnam, Nashik and Vadodara were among the top five Tier II cities.

RAIPUR

Since becoming the capital of Chhattisgarh in 2000, the city has seen immense infrastructure development. A completely new city by name of ‘Naya Raipur’ is being created 17 km from the existing city, driving the RE sector. Areas like VIP road, Amleshwar, Sarona, Pachpakdi Naka, Hirapur, and Shankar Nagar are witnessing RE development. Apart from within the state, the city also receives a sizable investment from Nagpur. The city’s economy is driven by government entities, and most projects have tie-ups with these. It is being planned as a smart city and will have the Durg-Raipur metro.

TRIVANDRUM growing cities in India. The city is an education-cum-tourism hub. The ring road circling the city is witnessing most of the upcoming development, with areas like Wardha road, Besa, Zari Patka, Umred road, Urari road leading. Corporate developers like Tata and Godrej are also present here. The city is witnessing significant investment from other cities of Maharashtra. Infrastructure includes an international airport, a metro and plans for a smart city.

NASHIK

Nashik is a pilgrimage city where the Mahakumbh Mela is organised. The city is strategically located between Mumbai, Pune and Surat, and is known for its educational institutions and social infrastructure. The city’s economy is manufacturing, education and IT industry driven. Areas on Mumbai–Nashik Expressway, Nashik road, and Nashik Shirdi Road are prime destinations for RE development.

Capital of Kerala, Trivandrum is a major IT hub and cultural centre. The city also hosts a number of education and government institutions. Areas along Kanyakumari Highway, Main Central Road, and Kachani Aruvikkara Road have witnessed decent RE development in recent years. The city is mostly end user driven with a good proportion of buyers from the business class. Infrastructure includes an international airport and the Thiruvananthapuram Light Metro.

VADODARA

Vadodara is an traditional industrial hub of Gujarat with a rich history. RE developments are fairly spread across the city, with plenty of land availability. Development of the National Expressway 1 on NH8 has greatly reduced travel time from Ahmedabad and spurred investment in city. NH8 forms a semi circle around the city, driving development. Padra road, Gotri road, Ajwa-Waghodia road, and Chhani Road etc. It is an end-user driven market with low rises given preference. It is being planned as a smart city and has a domestic airport. www.indiapropertyinsider.in | A

MEDIA PUBLICATION


October 2015

VISAKHAPATNAM

With the largest harbour in India, Visakhapatnam fares in export-import, shipping, fisheries, petroleum, pharma, and heavy industries sectors. The city is also a centre for education, IT, and Defense. NH5 traverses through the middle of the city, driving RE development along it. It is a moderate enduser driven city, and receives sizable outside investment, mainly from nearby towns Andhra and also from Puri and Kolkata. Infrastructure includes an international airport, metro and plans for a smart city.

PROJECT LAUNCHES

• Vadodara witnessed the highest average number of project

• •

POSSESSION

• Vadodara has delivered twice the number of projects in

Pic courtesy: Parksyde Homes

launches in the FY 2014 - FY2015 period, with almost 200 projects, followed by Nashik and Jaipur. While Vadodara primarily caters to affordable housing, both Nashik and Jaipur have sizable mid housing supply. Two cities from Maharashtra, namely Nashik and Nagpur, figure in the top four, displaying the spillover from the much bigger markets of Mumbai Metropolitan Region (MMR) and Pune. Jaipur and Lucknow are the only northern cities making it to the top ten. Total projects launched in Top 19 TIER II cities is just 25 per cent of the total for the Top 14 TIER I cities.

LAUNCH PRICE INCREASE

• Nashik comes at a distant second with approximately 90

Despite significant slowdown in the sector across India over the last two years, the launch prices have continued to rise unabated for most cities.

the last two years, as were launched in the same period.

delivered projects. Jaipur is the only northern city figuring in the top 10, with just 45 delivered projects. Surprisingly, western TIER II cities, unlike their TIER I counterparts, performed better in terms of delivering projects, indicating that the developers are committed to execution here.

RESIDENTIAL SUPPLY

• •

• •

Vadodara witnessed the highest yearly average launch of 12,000 units in the FY 2014 – FY2015 period. In contrast to project launches, where northern cities showed laggard performance, three northern cities figure in the top four in terms of units launched. This is a result of the much bigger projects in the north, compared to those from the rest of India. Overall, the residential supply in the top 19 TIER II cities, has fallen by an overwhelming 64 per cent in the last two years, as against a fall of 40 per cent in the supply in top 14 TIER I cities, in the same period. Supply in top 19 TIER II cities is just 20 per cent of the total average supply in top 14 TIER I cities witnessed in the last two years.

• •

The maximum increase was witnessed in Bhopal, with a CAPR of 23 per cent, followed by Jaipur at 20 per cent. These rates of increases are higher than those witnessed in TIER I cities. Mohali (-2 per cent), Agra (-1per cent), and Goa (-1 per cent) were the only cities that witnessed a fall in property launch prices. Overall, the weighted average launch prices in TIER II cities increased by nine per cent over a period of two years, compared with a similar increase of 10 per cent witnessed in TIER I cities.

MARKET SIZE • With most of the market consisting of affordable supply, Vadodara has clearly emerged as the leader in TIER II cities with ` 43 Billion worth of annual sales. • Jaipur and Bhiwadi stand neck to neck with sales worth ` 30 Billion. • All top TIER II cities (except Dehradun, Visakhapatnam, Goa, and Trivandrum) witnessed decline in their market size with the weighted average decline of 20 per cent over the last year.

THE TOP 19 TIER II CITIES 1

KOCHI

3

VISAKHAPATNAM

2 4 5 6 7

8 9

NASHIK

VADODARA

TRIVANDRUM JAIPUR

MANGALORE

INDORE GOA

10 COIMBATORE 11 NAGPUR

12 GANDHI NAGAR 13 DEHRADUN 14 RAIPUR

15 BHOPAL 16 AGRA

17 LUCKNOW 18 BHIWADI 19 MOHALI

25


INSIDER INTERVIEW

October 2015

'Real Estate will Always Give you Returns' As the festive season gets underway with offers, Pratik H. Patel of Rajesh LifeSpaces believes that NRIs should seriously consider buying property in India

PRATIK H. PATEL

Director, Rajesh LifeSpaces

In a world where success is often equated with the amount of noise that one is capable of generating, there are some real estate companies that believe in working quietly, and letting their creations speak instead. Rajesh LifeSpaces is one such organisation; though it is a 53-year-old company, it has chosen to maintain a low profile through the years even as it has steadily built a slew of real estate projects across the spectrum, casting its footprint across residential, commercial, retail and leisure spaces. Founded in 1962, the company has built over 100 landmarks covering more than 10 million square feet, providing homes to more than 13,000 families. Its senior team consists of Mr. Raghavjibhai Patel (Chairman), Mr. Harish R. Patel (Vice-Chairman), Mr. Rajesh R. Patel (Managing Director), Mr. Kantilal A. Patel (Director), Mr. Priyal K. Patel (Director), and Mr. Pratik H. Patel (Director), who are backed by more than 250 real estate professionals. Currently, Rajesh LifeSpaces has 11 on-going residential projects, from 1 BHK home sto 5 BHK premium homes in six suburbs of Mumbai, primarily in the Central and Western belt, comprising more than one crore square feet, inclusive of the residential, commercial, retail and hospitality segments. These include White City at Kandivali (East) with 1, 2, 3 and 4BHK air-conditioned homes; Raj Infinia at Malad(West) with 2,3 and 4 BHK homes; Raj Grandeur at Powai, with 3 and 4 BHK homes; Raj Altezza at Mulund (West) with 2 and 3 BHK homes; Raj Tattva at Thane (West) with 3, 4 and 5 BHK homes; Raj Torres at Thane (West) with 2, 3 and 4BHK homes and Raj Spectrum at Sion (West) with 2BHK air-conditioned homes. There are also commercial projects such as Raj Embassy at Bhandup (West). In addition, the company also has joint venture projects such as Rising City 26

at Ghatkopar (East) with 2, 2.5 and 3BHK homes and 92 Bellevue at Borivali (West) with 3BHK homes.

legacy and vision to greater heights. I'm the third generation in the business; I joined in seven years ago.

The upcoming destinations in which Rajesh LifeSpaces will have a presence include Borivali, Powai, Vikhroli, Ghatkopar, Mulund and Karjat. They are active in the re-development space, currently working on four landmarks, and being considered by more than 53 housing societies.

We currently have 11 on-going projects and seven upcoming projects in the next one-and-a-half years approximately. The segment in which we operate is the affordable segment in terms of Mumbai affordability; I define this as up to ` 1 crore or ` 1.25 crore for a 2BHK home in a big layout that has all of the world-class amenities for comfortable living.

MENKA SHIVDASANI speaks to Mr. Pratik H. Patel, Director, Rajesh LifeSpaces, a management graduate from the United States of America, who is leading the Group's initiatives into new technologies, segments and geographies.

QUICK FACTS • Rajesh LifeSpaces is a 53-year-old company that has created more than 100 projects across Mumbai. • They currently have nine residential projects, ranging from 1 BHK homes to premium properties of 5BHK homes.

Our projects are all in the suburbs - in the Western side, from Malad to Borivali. We have projects in every suburb in the Central side, including Ghatkopar, Vikhroli, Bhandup, Powai, Kanjurmang, Mulund and Thane. We have found Central Mumbai to be currently in larger demand. This is where the Maharashtra government too has plans for more infrastructure. Back in the days, the major concentration in real estate was on finishing the product, giving possession on time. Now the game has changed. Today, the story of real estate has got a different focus. The major concentration is on finishing the legal work, getting the permissions right. All the top developers today provide very good products with worldclass amenities. If I have to distinguish myself from other developers, I have to ensure possession on time. This is one area where we stand tall, given the past history of our company over 50 plus years. Before we provide the customer with the possession date, we account for all the challenges involved such as permissions, labour shortages and so on. What changes have you seen in real estate in terms of new ideas and technologies?

Rajesh LifeSpaces has been in the real estate business for more than 50 years. Tell us about the genesis of the company and how it has grown. My grandfather, Mr.Raghavjibhai Patel started this company 53 years ago. He was earlier a contractor, and later started as a developer in 1962. There was no real estate industry to speak of at that time. There were very few developers. But we have always been doing good work. And a good amount of work. My father and my uncle carried forward my grandfather's

Today, there are so many new things - technologies such as MIVAN and pre-casting slabs are used, plans and drawings are released on day one so that there is no going back to the drawing board. Yes, there are some new ideas from abroad such as modern architecture or amenities, but our own planning is always fixed towards Indian mindsets and requirements. For example, in the international market, the kitchen is open-style. In India, it has to be enclosed with a stove and granite platform, which the typical housewife would need for day-to-day use. Such things are always carried forward into our planning. www.indiapropertyinsider.in | A

MEDIA PUBLICATION


October 2015

What is your view on green buildings in India? The idea of green buildings has never really succeeded in India. If my buildings were all green, my prices would be higher because raw materials to make a green building are very expensive. The government should come into the picture and regulate this so that high-class buildings are mandatorily built green. But with raw materials so expensive, I would have incurred costs that I am not sure I would be able to get back in terms of sales value, especially in residential projects. Green buildings essentially became a fashion in the commercial segment five to seven years ago because international occupiers like multinationals had a mandate to occupy green buildings. They would not mind paying the extra premium. While it is true that costs can be recovered in three to five years, in the residential segment, there would be a mental hurdle for people, that they would have to foot the maintenance bills for this period and only then receive the benefits. What is the kind of customer profile that you are looking at? Do you see Non-Resident Indians (NRIs) as a large market?

are only after we have got all the permissions, and the work at the site has started – at least the excavation or the plinth work has begun.

In your view, what do NRIs look for in Indian real estate?

Tell us about the projects that customers can look forward to in the near future.

NRIs look for the goodwill of the developer. They will check with all their sources whether the developer gives the project on time, and delivers what he has promised. The second thing they look out for is location, and the amenities within and infrastructure around it, such as multiplexes, schools and hospitals. In our experience, most NRIs buy property in India thinking that one day they will shift back here and occupy it for personal use. We also have a small segment where these NRIs purchase homes for their parents who are still living here. We have always been re-active to the NRI market, not pro-active. That's because we want to grow gradually in this market. Our pattern of working is always that we are sensitive to the consumer's needs. That is why, over these 50 plus years, we just have not gone out there and marketed our projects before being able to show progress of work. We first make sure that all our permissions are in place, then start the work and then finally launch the projects. Our pre-launches

By next year approximately, we will have Raj Grandeur in Powai, which is a very premium product in our portfolio. Possession will be by March 2016 approx. In fact, fit-outs are ready and people can come in and start their interior work. In two years approx, we will deliver a project in Malad (West), which is again a prime location. Mulund (West) will also be delivered in two years approx. Our Thane (West) projects have just started so they will take three to threeand-a-half years to deliver. Do customers in today's market generally look for readypossession homes or buy at the pre-launch stage? A customer who is genuinely looking for a project will generally buy either at the pre-launch stage, or when the project is very close to possession. Pre-launches are very aggressive in the Mumbai market so customers look for good appreciation in the next three to four years.

Pic: Tattva

We see NRIs as a very big market. We participate in international shows, and have penetrated the United Arab Emirates market, Dubai, to be specific, which we entered

three years ago. We have seen a very good response from the UAE consumer, particularly for projects in the Western suburbs of Mumbai.

27


INSIDER INTERVIEW

“For an investor who has disposable income, the options are stocks, gold, commodities and real estate. But real estate is physical, something to hold on to. And it will always give you returns. In the history of real estate, I have never heard someone say that they bought a property for X value, but sold it for less. Yes, the returns may vary but they will always go up. Sometimes, you will get eight per cent, sometimes, 25 per cent, and it will average out your returns in different investments. But you will never lose out.” Pratik H. Patel Director, Rajesh LifeSpaces

buying a home, they typically would take some advice from elders - not necessarily a parent, but say, the boss in the office. There is always some outreach to elders, who end up providing advice about purchasing at the right 'festival'. Most of the times, consciously or not, they do end up buying around the time the festive season begins. Which are the Rajesh LifeSpaces projects that customers can look forward to in the near future? In terms of launches and offers, we have 30:60:10 at White City, Kandivali (East) and are planning to bring back the 25: 75 scheme at Raj Grandeur, Powai, which is a high value project. We will launch both the Thane projects approx. by the end of this year. One will be the very premium 3 and 4BHK homes’ Raj Tattva, priced at ` 2 to ` 2.5 crore and above with largesized homes. Just 300 metres ahead of that is Raj Torres, which will have 2,3 and 4 BHK homes priced at about ` 1.2 crore. Any plans for reaching out to the UAE?

Pic: Raj Altezza

Very soon, we will have an office in Dubai. We will also be visiting Dubai for an exhibition during this year. What advice would you give to NRIs looking to buy property in India today?

Today the consumer’s mindset has changed. People want very good pricing at the pre-launch stage and seek deferred payments. If I buy a flat today, I want to put in XYZ money and get the leverage of paying over three to four years. Most consumers look for this as they currently do not have access to funds.

The India story is shining and will continue to shine for a couple of years. And given the current state of the world, what other opportunities do people have but to invest in India? In any industry today, India fetches far more returns than the expectations. People should buy while the market is slow. I tell everyone that 'If they are looking for investment in real estate, they should not miss 2015'.

When we launched Raj Infinia at Malad (West) two years ago, we started with a 20:80 offer where the customer paid 20 per cent at the start, and will pay the remaining 80 per cent on possession, which is a year-and-a-half approx. from now. We have also just launched a 30:60:10 offer at White City, Kandivali (East). Here, consumers will pay 30 per cent now, 60 per cent on completion of slabs and 10 per cent on possession, without bearing any extra interest or EMI cost. The idea is to try and gear up the market. Land costs are going up, construction costs are going up, the Ready Reckoner rates go up by 15 per cent every year.

28

October 2015

You are putting money into the second largest economy in the world, the one that is closing the gap with China. Also in the Indian mindset, there is the concept of roti, kapda aaur makaan. Everyone wants a piece of land to their name, for various reasons - for security, for stature. house or do something auspicious, I would do it during the festive season - during Diwali, Ganeshotsav, Gudi Paadva. As Indians, all of us have this mindset.

So what would you tell NRIs about why this is the right time to invest?

But is this also true of the more technologically savvy younger generation today? Would they look at auspicious times or at whether the product is right?

You can't find a better time to get such prices. Developers have multiple offerings, asking you to put in as little as 10 per cent of the total value and you can pay the rest on possession. You will never see such low entry prices again. It is the festive season and people usually buy during festive times. That is our tradition. Even as a developer, if I have to buy a

For the younger generation also, the search process during the years usually begins around March-April during the financial cycle. And today, there is much more choice, much more complexity. So younger potential home seekers also take that much more time to come closer to the transaction, by which time the festive season begins. Also, if they are

For an investor who has disposable income, the options are stocks, gold, commodities and real estate. But real estate is physical, something to hold on to. And it will always give you returns. In the history of real estate, I have never heard someone say that they bought a property for X value, but sold it for less. Yes, the returns may vary but they will always go up. Sometimes, you will get eight per cent, sometimes, 25 per cent, and it will average out your returns in different investments. But you will never lose out. Which are the areas they should be looking at today? We would recommend Thane, Sion, Ghatkopar for the near future. The Western suburbs have always proved to be worthy investment corridors. www.indiapropertyinsider.in | A

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EXPERT ADVICE

October 2015

Time for Consolidation

Keep a careful eye on market conditions, and make the most of existing real estate assets by selling them at the opportune moment, as constant turnover can only bring you the maximum yields, says SANDEEP SADH

QUICK FACTS • With shorter cycles and timelines in the real estate market today, investors need to understand when to sow and when to reap. • Maximise your returns through careful Capital Gains Tax planning and timing your exit and entry.

T

here is a time for everything in life, a time to sow and a time to reap. Similarly, in real estate one has to be vigilant about current market conditions and review one's real estate portfolio from time to time to maximise returns. Why the need now to seriously look at consolidation ? Earlier, the real estate market used to typically go in cycles, coupled with economic growth. Currently, however, these cycles may or may not exist. One thing is for sure, however that the cycle length and timelines will be much shorter. Real estate investors who understand this are perhaps the ones who will be benefited the most as real estate returns will not be the same as they have been over the last decade. The last decade has given investors/home buyers more than 3x returns in Tier I and Tier II cities. This growth has led to an absolutely different environment in the real estate sector, the entry level point in a Metro like Mumbai is now in the range of ` 80 Lakh, in Pune the same has become 30

` 50 Lakh and similarly Bengaluru, it has become above ` 60 Lakh. With entry level pricing going up, the real estate seems to be going in the hands of a few players and not every one can afford to enter into the real estate business. The thought of having more liquidity with a fixed interest rate income sounds better at times, but not investing a few lakhs into a far-flung location. After a great bull run, the real estate sector may offer returns ranging from seven to ten per cent per annum now in emerging locations. Most settled locations like South Mumbai with a lot of older buildings may not even see an increase. So one has to review things very logically from here onwards and be content with the appreciation/return one is able to achieve.

real estate sector, one has to understand the cost of funds and vary of the debt to profit ratio.

What is the process for consolidation?

The first home where one lives remains one's prime property, which should not be factored from a consolidation perspective immediately. However, looking at the size of the family or the business location changing, this asset can be reviewed as a funder for the next property. In this case, the consideration amount of this first home can be deployed into any new property, for example, if you need a larger home

The process for consolidation is individual and depending on various factors the steps taken today can be good for your future and can maximise returns. The factors are different for Non-Resident Indians, Corporate Employees and Individual Business families. To maximise the returns in the

MANAGE YOUR PROPERTIES The first step towards consolidation is managing your properties, determining what you need in the future and what you need now. The typical way most investors/home buyers review their real estate assets is:

A» FIRST HOME/PRIMARY PROPERTY

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October 2015

and if there is a scheme in an under-construction project —say, a a 20:80 scheme, where you pay only 20 per cent and the rest 80 per cent on possession, then it works very well. You can sell your apartment in the next few years before the possession if you need to and even deploy the Capital Gains based on the income tax rules for real estate, which you can study with your chartered accountant before-hand. This way, you do not have to pay interest to the bank and can still upgrade to a new home. The primary properties are the properties which you use them for self, be it a home or an office. Keeping a vigil on primary properties—the ones you use for yourself either as home or office—is vital with changing times, growth, consolidation and other factors.

B» THE SECOND HOME OR THE SECOND PROPERTY This is the property that investors usually keep as their apartment or office, which is leased out and gets them a fixed amount each month. The returns on this investment can be as high as 12 per cent based on the purchase value if it is an office space or five to six per cent if it is a residential apartment. If you look at these according to today's market prices, the returns are around five to six per cent for commercial and two to three per cent for residential leasing. This is where the catch remains, to exit this investment or hold is the dilemma, as it is already giving some returns and it’s a settled property with all legal paperwork in place including an occupation certificate in most cases. So what happens in this category is that your returns in today’s markets are very low, but you have made good capital appreciation. In most cases you would have doubled your money if you had invested in the 2008-2009 period and if you look at the prices now, you will still have a smile and a sense of pride for taking the right decision when you were investing in a pre-launch or launch in 2008-2009.

While you sell off your property now, you get liquidity and even five to six per cent interest rate. You can easily take the amounts to be paid for the new stamp duty from here.

"It's highly advisable today, that even if you have to pay more, go to a branded developer with a good track record, even if it is a location, which is little inside or any other factor. Do not buy properties from developers who do not have a track record or delivery timelines or quality in place."

norms become tighter, only top developers who understand real estate will be able to deliver products in line with the market and the market practices in general—for instance, state-of-the-art homes, amenities, conveniences, style and also bringing in parity of people with their launches.

C» THE THIRD PROPERTY—FLIPPING ASSET If you holding an ancestral property, a smaller apartment or a small office or anything on which you have invested in the past or invested in a far-flung area in a plot or a holiday home etc. which is not giving you ample returns anymore, start working to dispose it from today. You are not getting younger and you know what you bought and for what reason. If you feel that the property is not one that you desire, or no one goes there, or it is too tough to reach at times, please put it on the block for sale and get the money in. Once you have the funds from one or more properties, you can go back to any micro-location where there is a new launch within your budget; do invest there in a lifestyle project and then see your money grow. To keep in line with the market conditions and inflation, one has to review out-of-the-box ideas and not stick to having properties which have become NPAs (Non Performing Assets). In fact, you should not worry about having many small real estate investments any more due to the complications of delays and uncertainty on their end pricing. These properties which you may be holding, may have reached their saturation levels, and you must have already got the desired returns by now. Most of these smaller properties have their own cycle of returns, unless there is an infrastructure impact in a micro location which has just

Pic courtesy: Kalpataru Group

The only way to exit this asset is to see a better property, which will have capital appreciation. So assuming your property value has doubled from the time you bought it and now you are only getting single digit returns, it’s a good idea to sell it and do what you did it in 2008-2009 because, if you look at the next three to four years, you are going to have a lot of new infrastructure impact in Mumbai. The Metro III routes, the Trans-Harbour Link, Bandra-Sion Link… the present government will also come under elections by 2019, which means we are likely to see another bull run due to economic reforms.

This means that you can surely get a consolidated return of above 50 per cent on your asset and that too in the next four years—so instead of, say, five per cent on an average, you have doubled up your capital and also got a brand new property. The only word of caution here is from two things, one being the capital gains calculations and the other one being the development. It's highly advisable today, that even if you have to pay more, go to a branded developer with a good track record, even if it is a location, which is little inside or any other factor. Do not buy properties from developers who do not have a track record or delivery timelines or quality in place. The future for real estate is only going to be with branded players; as the more real estate becomes dearer, and

31


EXPERT ADVICE

been newly announced. If the infrastructure impact is old, like a proposed railway station, a bridge, a flyover, airport and so on, then the price increase is already factored in at the inception and your current value is already a little speculative or over-hyped. So one has to determine various aspects of exiting and re-entering the real estate market.

or compare with any ordinary developer.

This process has to be continued every few years, and one has to be content with 20 to 30 per cent returns in three years. If you time it well with your capital gains, then you may not need to even pay any short-term or long-term capital gain tax, so the net income becomes a shade brighter.

Let us understand the Entry Loads first:

All the above three properties, be it the Primary, Secondary or the Third Asset, you need to ensure, they are performing assets both in terms of capital appreciation, lease rental values. The way to go into the future is to invest in good brands, where there is a parity of people residing in the building, the project which is developed by a branded developer will always attract a certain class of people, which keeps the project on possession very live and potent with good quality sales traction. It is finally at the completion of the project, the true picture emerges of your investment. A clear example of this is all Hiranandani, Oberoi, Shapoorji, L&T Realty & Piramal etc. have a different class of people and all their properties are transacted much higher than the market price. So even if you have to pay more for a Brand, do that and don’t compromise

Determine your Entry and Exit Loads in Real Estate While buying and selling can be one part of the game, you need to also be very careful on this subject of buying and selling.

Entry Loads typically in the real estate business are the Government Taxes. Currently, when you are buying any under-construction property, the entry taxes are as follows: a. Stamp Duty – 5 per cent (Mumbai), 6 per cent (Thane and other Areas in Maharashtra) b. Service Tax – 4.20 per cent (Approximately as per the Present Income Tax Laws) c. Registration ` 30,000/d. VAT – 1 per cent Kindly note, that Service Tax and Value-Added Tax (VAT) is not applicable for Ready to Move in Properties in case you buy a ready property with Occupation Certificate. (Kindly do not buy any property without Occupation Certificate if it’s a ready possession property). So while buying a ready possession property from a developer you are saving nearly 5.20 per cent

October 2015

as taxes. The total tax for an under-construction property buying is nearly 11 per cent of the consideration value. Exit Loads are of the following categories: Transfer Fees As applicable by the developer. Most top developers don’t charge or if there is any charge it could be max 1 per cent to you for administration and other charges. Society Transfer fees depending on the rules and regulations set up by the society. Realtor Fees Ranging from 1 to 2 per cent depending on your agreement with the realtor. Capital Gains Tax Depending on your entry date and exit date, with Possession, without possession, with OC or without OC. This one is really complicated if you don’t go to a Chartered Accountant who has not done real estate tax and legal consulting. Please go to a lawyer or a CA who has done real estate tax and legal consulting only.

Sandeep Sadh MD-Founder www. mumbaipropertyexchange.com

» N EW S U P DAT E « MCHI-CREDAI TO HOLD 25TH EDITION OF ITS POPULAR EXPO

Dharmesh Jain, President, MCHI - CREDAI,  says that the expo will witness a congregation of over 500+ real estate players from across India and is supported by all major banking and financial institutions and allied industries. The Silver Jubilee Edition is being positioned as  a ‘One-StopShop’  for every customer’s housing related requirements and the 25th Expo will be promoted internationally as well. The silver jubilee edition is showcasing projects from all over India, in the Maharashtra and India Pavilions. There is also an Affordable Housing Pavilion for home buyers and developers in this space, thereby making the dwelling unit affordable for all, according to MCHI-CREDAI. The exhibition is building a robust online platform to enhance the customer experience and help book on-the-spot sales for exhibitor products. 32

NAREDCO (National Real Estate Development Council) in association with APREA (Asia Pacific Real Estate Association), hosted a two-day Real Estate & Infrastructure Investors’ Summit in Mumbai on October 5 – 6, 2015. This summit was designed to provide a platform for real estate developers to interact with investors and global leaders including Government of Singapore Investment Corporation (GIC), KKR, Cornerstone, Morgan Stanley amongst others. The two day Real Estate & Infrastructure Investors’ Summit was organised to discuss issues concerning policy initiatives and foreign investment norms, significant opportunities and challenges that the real estate sector presents, key investment themes prevalent in the real estate sector and India’s standing as a global investment destination.

THE BIG 5 EXPO The Bombay Exhibition Centre at Goregaon in Mumbai recently played host to the mega event, The Big 5 Construct India 2015. The expo, which took place from September

Pic courtesy: DMG Events

With 24 successful editions of property exhibitions under its belt, MCHI-CREDAI is gearing up to celebrate the Silver Jubilee edition of the largest Real Estate & Housing Finance Exhibition of India at Bandra-Kurla Complex from October 29 to November 1, 2015.

NAREDCO HOSTS INVESTOR SUMMIT

10 – 12, was organised by Federation of Indian Chambers of Commerce and Industry (FICCI), co-organised by Ministry of Urban Development (MoUD), Government of India in association with dmg events. According to the organisers, 7,428 trade professionals across segments visited the exhibition, including architects, builders, real-estate developers, contractors, engineers, dealers and distributors of building and construction materials amongst others. The fourth edition of Big 5 Construct India will take place from  September 28–30 at Bombay Exhibition Centre in Mumbai next year. www.indiapropertyinsider.in | A

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OPINION

October 2015

A Festive Gift from RBI With current economic fundamentals on the upswing, the Reserve Bank of India has assumed a bolder stance that is expected to give the housing sector a fillip

The real estate market reacted with jubilation to the Reserve Bank of India's decision to reduce the repo rate by 50 basis points in its fourth bi-monthly monetary policy, leading to a promise of better sentiments and significant reduction in home loan rates. The Repo rate  is the  rate  at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. Here is what some of the industry stalwarts said:

Kamal Khetan

Anuj Puri

“We welcome the Central Bank’s policy move of reducing the repo rate by 50 basis points; the Governor deserves a pat on his back. At the outset, this rate cut will lead to a long and sustained improvement of the market sentiments through higher consumer spending and easy availability of loans to both consumer as well corporate. This is great news for the real estate sector as the rate cut would also lead to a significant reduction in home loan rates, thereby reducing EMIs of home buyers. Corporates would benefit as interest outgo on existing loans would reduce and also enable them to raise equity. The prospects of Government divestment would also gather pace. The green signal to raising of Rupee Debt overseas is a game-changer and can create an alternate source of funding for Indian companies.”

As opposed to the market’s expectation of a 25 basis points cut, the RBI has delivered an astounding 50 basis points reduction. With this, it has clearly abandoned its cautious baby-steps approach and assumed a bolder stance, obviously because the current economic fundamentals provide it with the room to do so. Given the magnitude of this step, I do not think any further rate cuts are likely in this financial year, especially since the RBI foresees a moderate growth in inflation rate in the interim months. For the affordable housing sector, the outlook is nevertheless bright, since the RBI governor has made provisions for lending to this sector to become less stringent and broader in scope.

CMD, Sunteck Realty Ltd.

34

Chairman & Country Head, JLL India

Navin Makhija

Managing Director, Wadhwa Group We welcome this decision of the RBI. We are hopeful that this move will enhance the purchasing power of the buyer, especially the fence-sitters. Since investments in real estate are significantly done through loans, this will certainly ease the buying process and is a win-win situation for the buyer and developer.

Srinivasan Gopalan CEO, Ozone Group

This is a great move by RBI, which will hopefully dilute the negative sentiments. We are certain that this decision will give a boost to the realty sector and mortgages as they are a significant portion of sales. It will help the current government come closer to its agenda of ‘Housing For All’. www.indiapropertyinsider.in | A

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October 2015

Arvind Jain

Managing Director, Pride Group will certainly boost the sentiments surrounding the real estate market. If they follow the signals that the more attractive rates. Cheaper loans for home buyers will prompt a renewed interest in home purchase. Given that the RBI governor also intends to support the cost of funding for real estate developers active in this segment will also reduce. Real estate developers massively increased development costs and have simultaneously been trying to keep property pricing

MD and CEO, Tata Housing Development Company

QUICK FACTS • A recent 50 basis points repo rate home loan rates, thereby reducing EMIs of home buyers. • Developers now expect fence-sitters to start investing in realty projects.

Rahul Saraf

Managing Director, Forum Projects

this air of change and are hopeful of bridging the developers initiate more projects at favorable capital

Manoj Paliwal

CFO, Omkar Realtors & Developers RBI’s move to cut the interest rate by 0.50 per cent is Co-Founder, Deal4loans.com In a surprise move, the Reserve Bank of India (RBI) cut the repo rate by 50bp to 6.75 per cent, compared to

“With the festive season

falling due to collapse in global commodity prices.

was the perfect time for the RBI Governor to announce the rate cut of

cent from 6 per cent and March 2017 target to 5 per cent. Although revision is marginal, this underscores

points since January this year will give a very good push in improving both the consumer sentiment

Growth forecast has been revised down to 7.4 per cent

sector and economy at large. With this we will see more fence-sitters start to invest in realty projects. keeping in mind the mission of the government of 'Housing for All' by 2022, the move of the apex banks

slowdown are poor monsoons and slow pick-up in the translate the rate cuts into lower lending rates so announcement.”

Rohit Poddar

Managing Director, Poddar Developers

front end its rate cuts to kick-start domestic consumption stance of working with government and banks to transmit these cuts to the real economy through the bank transmission channels. We think RBI will unlikely cut rates soon. As these lower rates are transmited by

reduction in repo rate to the home loan customer

RBI has proposed to lower risk weights on individual

housing. Both these rates have not come down in conjunction with the reduction in repo rates and

minimum risk weights in housing loans is 50 per cent)

large gap should not be used by banks to manage their non-performing assets (NPAs) - defaulting promoters should be brought to book. Instead, the reduction should be passed on to where is it actually intended and required.

the government's target ‘Housing for all’ by 2022. Along with rate cuts, this means the housing loan Home loan and car loan rates should fall by .50 basis points. Expect home loan rates to come at nine per cent. 35


INSIDER LISTINGS

October 2015

Pro j e c t s on O f f e r NAME Puneville LOCATION Near Hinjewadi, Pune DEVELOPER Pharande Spaces SPECIAL FEATURES A 40-acre township with a beautiful

skywalk connecting all towers; three side open premium, 2, 3 and 4BHK apartments; 4-star GRIHA rating NAME Dosti Imperia LOCATION Ghodbunder, Thane DEVELOPER Dosti Realty Ltd SPECIAL FEATURES 2BHK Spacio, 2BHK Super Spacio,,

3BHK Spacio, 3BHK Super Spacio; luxurious deck living, high street retail in premises, pre-certified IGBC gold rating NAME Pride World City LOCATION Off Dhanori-Lohegaon Road, Pune DEVELOPER Pride SPECIAL FEATURES Spread across 400 acres, ten minutes

away from Pune airport; 1, 2, 3BHK starting at Rs. 35.7 lakh; facilities include master club, bus terminus, hospital, day care, wi-fi and much more NAME Corlim Gardens LOCATION Old Goa DEVELOPER Nitin Developers Pvt Ltd. SPECIAL FEATURES 2BHK Optima and Prima apartments, close to popular landmarks, at an advanced stage of construction, `47.35 lakh onwards NAME Godrej Garden City LOCATION Ahmedabad DEVELOPER Godrej Properties SPECIAL FEATURES First township within Ahmedabad

Municipal Corporation limits, close to AhmedabadGandhinagar Metro Project, shopping complex, school, rental help desk facility, award-winning project.

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NAME Eco Winds LOCATION Bhandup, Mumbai DEVELOPER Ecohomes Constructions Pvt. Ltd. SPECIAL FEATURES Smart, compact 1 & 2 BHK

configurations across 20 floors in two wings, close to mall, hospital and school; carpet area pricing and easy payment terms; three-level podium parking and first habitable floor at fifth level; landscaped garden, swimming pool, elevators with automatic rescue device and much more. NAME Marvel Piazza LOCATION Viman Nagar, Pune DEVELOPER Marvel Realtors SPECIAL FEATURES 2,3, 3.5 and 4.5BHK apartments and

NAME Bay Castle LOCATION Alibaug DEVELOPER K J Group SPECIAL FEATURES Community hall, tar roads, children's

play area, 10 minutes from the beach, possession from March 2016.

NAME Diamond Towers LOCATION Gachibowli DEVELOPER Manjeera SPECIAL FEATURES 2 and 3BHK ready to occupy premium

penthouses, with open-air plazas embedded between the apartment blocks for outdoor living; swimming pool with wooden deck, BBQ terrace with paddy field, and forest playground, among other amenities

apartments, piped gas, two-level basement parking, clubhouse, basketball court.

NAME Yvonne, Nahar's Amrit Shakti LOCATION Chandivali, Andheri (E.), Mumbai DEVELOPER Nahar Group SPECIAL FEATURES 14-storey tower with two podiums and

NAME Temple Waves LOCATION Near Chromepet, Chennai DEVELOPER Amarprakash SPECIAL FEATURES 2 and 3BHK homes, Phase 4 launched

stilt, nearing possession. Double ceiling terrace in living rooms, and balcony with bedrooms. Amenities in the complex include skating rink, sculpture garden, dedicated play areas, and five lakh sq. ft. vehicle-free podium garden NAME Gagan Nulife LOCATION Lonavala DEVELOPER Gagan Properties SPECIAL FEATURES Resort residences for seniors,

conceptualsed and marketed by Disha Direct, facilities include health care, ativities, maid/driver on call and other services, 1 BHK apartments `38 lakh onwards all inclusive

end September, Jain School, plus 66 amenities for children. 1000 units of phase 1 and 2, completion December 2015 NAME Moksh LOCATION Near Hebbal DEVELOPER Gokaldas Lifestyle SPECIAL FEATURES 3BHK boutique residences, rooftop

gym, swimming pool and spa, sky lit party space, vertical gardens, exclusive private garden/ terrace, possession from December 2015, starting from AED 1,011,500 (approx `1.83 crore)

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NAME Raheja Waterfront LOCATION Mangalore DEVELOPER Raheja Universal (Pvt) Ltd SPECIAL FEATURES Two minutes from Chitrapura

Beach, located on NH-66, 2 BHK and 3BHK, nearing completion. NAME New Haven LOCATION Off Tumkur Road, Bengaluru DEVELOPER Tata Value Homes SPECIAL FEATURE Aesthetically designed by Callison, USA,

well connected through Nice Ring Road and Tumkur Road, with a proposed metro station; 2 &3 BHK apartments in a green integrated township with a host of amenities. NAME Padmasree Shanthiniketan LOCATION Tripunithura DEVELOPERS Padmasree Developers and Builders (Pvt) Ltd SPECIAL FEATURES Adjacent to Andhi Mahakala Temple,

two km to Vyttila Mobility Hub and Metro station, 1 km to Chambakkara market, last few units ready to occupy.

NAME Escon Arena LOCATION Ambala-Chandigarh Rd DEVELOPER Malwa Projects SPECIAL FEATURES 2,4, BHK Size :1315 to 2375 sq. ft,

club house, swimming pool, meditation hall, fitness centre, badminton court, modular kitchen

NAME Zen Residences LOCATION Sector 70 A, Gurgaon DEVELOPER AIPL SPECIAL FEATURES Strategically situated on the wide road

nearby Southern Peripheral Road, National Highway – 8, Sohna Road, Golf Course Road and Proposed Metro Corridor. 30 : 30 : 40 possession linked plan available. NAME Godrej 101 LOCATION New Golf Course Road, Gurgaon DEVELOPER Godrej Properties SPECIAL FEATURES Godrej 101 offers its residents '101

activities' within the campus, including the cricket world’s legend Australian Sports Academy – “SportsPro”( Patron: Adam Gilchrist) to train all the sports and Delhi Dance Academy for dancing and arts lessons NAME Aura LOCATION Gurgaon DEVELOPER Mahindra Lifespaces SPECIAL FEATURES 15:85 scheme, pay 15 per cent now, rest

on possession, 4BHK with a host of amenities, including skating rink and amphitheatre

NAME Hiland Greens LOCATION Kolkata DEVELOPER Hiland SPECIAL FEATURES 2BHK 712 sq. ft, 3BHK 1060 sq. ft.,

riverside promenade, 7.4 km. elevated road to connect Taratala, four-screen multiplex.

Disclaimer: Before investing in any of the properties listed here, readers are advised to carry out their own background checks and seek further information and legal advice.

October-November 2015 October 15-18 Index International Furniture Fair, Bandra-Kurla Complex; an International trade fair on residential furniture with exhibits from Italy, Turkey, Malaysia and Indian companies. A B2B platform with a focussed exhibitors and visitors profile from the industry. Lion India's The Art Enclave will showcase art infrastructure products such as display showcases, archival and storage boxes and much more. October 15 Renewable Invest: Maharashtra 2015, Hotel Radisson Blu, Pune: An event designed for senior business professionals from the industry, which will enable delegates to know the investment opportunities available for the renewable energy projects in Maharashtra. It will also provide an indepth overview of various state policies, investment frameworks, challenges and opportunities for investors. October 27 Renewable Invest: Gujarat 2015 Hotel, The Pride, Ahmedabad October 23-24 India Property Fest at The Emirates Palace, Abu Dhabi. This is the fifth edition of the show. October 29-November 1 MCHI-CREDAI Real Estate & Housing Finance Exhibition (silver jubilee edition) at MMRDA Grounds, BKC, Mumbai If you would like your event featured in this column, write in to ipi@weareyoung.in Developers who are planning road shows may also contact us at this email address with details.

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PROPERTY PRICES

Average Residential Apartment Rates

MUMBAI LOCALITY Airoli

CHENNAI LOCALITY Egmore

CAPITAL VALUES (RS/SQ FEET) 13830 to 17470

PUNE CAPITAL VALUES (RS/SQ FEET)

LOCALITY

CAPITAL VALUES (RS/SQ FEET)

9030 to 11410

Ambegaon

4610 to 5840

Badlapur

3110 to 3770

Boat Club Road

14250 to 18350

Bhayandar East

6820 to 8270

Dahanukar Colony

10250 to 12770

Chandivali

16950 to 19890

Kaspate Vasti

Church Gate

48500 to 61890

Law College Road

Dahisar East

8690 to 11570

Manjri

4710 to 5790

Dombivli

5040 to 6340

Moshi

3910 to 4950

Mundhwa

5180 to 6520

Narhe

4330 to 5490

Pashan-Sus Road

6260 to 7810

Pimple Nilakh

6330 to 7590

Sinhgad Road

5710 to 7260

Ghatkopar West

17400 to 21170

Haji Ali

47870 to 62450

Khar West

37040 to 48300

Guduvancheri

3050 to 3660

Kolshet Road

Iyyappanthangal

4000 to 4650

Malad East

Madambakkam

3750 to 4530

Nalasopara West

3640 to 4440

Nanmangalam

3940 to 4720

New Panvel

3750 to 5160

Navallur

3570 to 4580

Prabhadevi

35150 to 45070

8710 to 10890 13280 to 16890

Nungambakkam

12930 to 17390

Vashi

10650 to 14370

T Nagar

10170 to 13630

Vile Parle East

25040 to 32830

Worli

31880 to 41800

Tambaram West

3680 to 4360

Thoraipakkam

5160 to 6160

Valasaravakkam

5830 to 7290

NEW DELHI Anand Lok

HYDERABAD

October 2015

35370 to 47720

5830 to 6830 14560 to 18190

Sopan Baug

9320 to 11640

Talegaon Dabhade

3450 to 4130

Wagholi Nagar Road

4280 to 5210

BENGALURU Bellandur

4740 to 6040

Electronic City Phase 2

3010 to 3970

Hennur

4560 to 5940

Dwarka Sector 5

8120 to 9490

Jakkur

4190 to 5340

8280 to 9860

JP Nagar

4270 to 5440

Bowenpally

2400 to 3070

Dwarka Sector 18

Himayath Nagar

4540 to 5840

Kalkaji

12520 to 16180

Koramangala

8010 to 10530

Jubilee Hills

5310 to 7210

Mayur Vihar 1

11170 to 14320

Lavelle Road

16120 to 21120

Kompally

2360 to 2910

Nizamuddin East

32580 to 41440

Malleswaram

10570 to 13420

Moti Nagar

3440 to 4170

Panchsheel Park

21260 to 28340

Mysore Road

4210 to 5200

Paschim Vihar

10030 to 12920

Panathur

4020 to 5160

Varthur

3680 to 4710

Nandagiri Hills Narsingi

8030 to 10090 3270 to 4120

Rohini Sector 24

6730 to 8480

Source: MAGICBRICKS.COM Rates As on September2015

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PROPERTY TERMS

October 2015

J a r gon S i m p l i fi e d Annual Percentage Rate (APR) This is a term that is often linked to mortgages. It takes into account the interest rate of your loan, repayment arrangements and any other associated fees to give you an indication of the overall cost of the loan. While comparing loan offers—and it is always wise to do this—the APR is extremely helpful; the lower the APR, the better the deal will work out for you. Cloud on Title Beware, this is an outstanding claim or encumbrance that affects or impairs title to the property. Conveyancer A conveyancer is a solicitor, or other legally qualified individual, who deals with legal work involved in buying and selling a property, including advising buyers and sellers of their rights, researching legal ownership of properties, drafting contracts and leases, and liaising with mortgage lenders and estate agents. Depreciation This is a loss in value due to deterioration from ordinary wear and tear, action of the elements, functional or economic obsolescence.

of survivorship and four unities (time, title, interest and possession).

paying the debt or charge (such as mortgage or tax lien) after default, together with interest and costs.

Lis pendens This is a filing against a specific property, which gives public notice of a pending action at law that may affect the title to the land.

Survey The measurement of a parcel of land and its characteristics.

Market value The price which a ready and able buyer, not forced to buy, would pay and which a ready and willing seller, not forced to sell, would accept, assuming that both parties are fully informed, act reasonably, and have sufficient time to consider the transaction with due care. Option A temporary right for a specified time, and for which a consideration is paid, during which an optionee may purchase or lease property at a set price. Redemption The right of an owner to redeem or reclaim real estate by

Trust deed A loan security instrument by which a borrower conveys title to a (usually public) trustee, to be held for the protection of a lender as security for the repayment of the debt. Upon payment of the debt a trust deed must be specifically released by the trustee. Warranty deed A deed in which the grantor warrants or guarantees the title to real property against defects during the grantor's ownership and as far back as a chain-of-title can be established. Writ of execution A court order directing an officer of the court to carry out the judgment or decree of the court.

Escrow The state or condition of money or a deed held conditionally by a third party, called the escrow agent, pending the performance or fulfillment of some act or condition. Fixed rate mortgage When you take a home loan, it helps to know exactly how much you will be paying every month. With a fixed rate mortgage you pay a fixed rate of interest on your mortgage for a set period. When that period ends, you will often end up paying a variable rate of interest controlled by your mortgage lender. Joint tenancy A type of co-ownership of real property featuring a right

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India Property Insider - Oct 2015