Real Estate Placemakers in India for Non Resident Indians : Transformation of Living Culture Index of Topics Sl.
Map of Return
Political Influences on Investment by RE Developers
Identity Card Map of Return Political Influences on Investment by RE Developers Social Influences Architecture Matters Building Crisis ……………………………………………………………..
Key Factors/Chapters _History _First Point _How NRI people are coming back _Key factors behind it
_Commonwealth Games, Delhi 2010 _Games Village _Interior of Projects _Facilities & Amenities offered _Technical Analysis _Built Form Type, Techniques _Materials Used _Sustainability _Economic crisis in the world
_History _First Point
_How NRI people are coming back _Key factors behind it
_Commonwealth Games, Delhi 2010 _Games Village _Interior of Projects _Facilities & Amenities offered _Technical Analysis _Built Form Type, Techniques _Materials Used _Sustainability _Economic crisis in the world
A list of the chief players in Indian RE market is given below (as of Nov’10) DLF: DLF’s chief business is to develop housing, marketable and retail properties. Currently it has undertaken the development of 70 million sq ft of housing projects which it intends to finish in the next three years. DLF has joined hands with Delhi Development Authority to develop townships in Amritsar, Pune, Gurgaon, Mumbai, Chennai and Goa. DLF has been the construction company behind different malls in the major cities in India. The company is also developing 50-75 hotels along with Hilton Hotels and infrastructure and SEZ in India in collaboration with Laing O’Rourke (UK).The current market cap is around Rs.51,832.22 crore. Tata Projects: Tata Projects registered an annual turnover of Rs 2,300 crore on July 1, 2007. With more than 1,500 professionals the company has emerged as one of the chief player in EPC projects. Over the last four years, it has attained a CAGR of 50 per cent which quadrupled its annual turnover of 2006-07. Tata Projects functions in concentrated divisions like broadcast and distribution, steel, power production, oil, gas and hydrocarbons and industrial infrastructure. Sobha Developers Ltd: With an annual turnover of Rs 1,189 crore, Sobha Developers Ltd was initiated by the now chairman PNC Menon in the year 1995. On June 30, 2007, the company has 3,706 skilled professionals working for it. At present it owns Rs 3,500-acre land in eight Indian cities namely Coimbatore, Bangalore, Mysore, Chennai, Thrissur, Kochi, Pune and Hosur. The company’s clientele include some of the top players in IT, hotel and construction sector such as Hewlett Packard, Mico, Infosys, Ramaraju Developers, Dell, Timken, etc. Shapoorji Pallonji & Co: The Company has more than 3,500 professionals working for it and is largely driven by its loyalty to consumer satisfaction. Some of the major projects undertaken by Shapoorji Pallonji & Co are World Trade Centre, Mumbai; TELCO industrial complex, Pune; Bhabha Atomic Research Centre, Kalpakkam; HSBC Bank, Mumbai; Hotel Taj Intercontinental, Mumbai; Bank of India, Mumbai; Indira Gandhi International Airport, New Delhi, etc. the company has created magnum opus of construction and has been a consistent executer of challenging projects. Unitech: Recently Ramesh Chandra, Unitech’s Chairman has declared the investment of $ 720 million by his company in the coming four years to develop 28 hotels along with Marriott International. The market capitalisation of the company is Rs.16,867.40 crore.Its chief activities include construction, expansion of real-estate, consultancy in associated sectors, hotels, electrical broadcast and information technology. India Bulls Real Estate: One of India’s largest listed developers developing residential and commercial real estate. Being a focused regional player, more than 90% of IBREL’s portfolio by value is in the three major markets of Mumbai, NCR and Chennai. Established in 2000, the company has grown into one of the leading Indian business houses with its companies being listed on Indian and overseas financial markets having a combined net worth in excess of Rs. 18,000 crores. the current market cap being Rs.6,545.17 crore. HDIL: Ranked as India’s fastest growing real estate company by Construction World-NICMAR in October 2007 & with a current market cap of Rs.8,567.76 crore, Housing Development & Infrastructure Limited has established itself as one of India’s premier real estate development companies, with significant operations in the Mumbai Metropolitan Region. HDIL is a public listed real estate company in India with shares traded on the BSE & NSE Stock Exchanges. With operations spanning every aspect of the real estate business, from residential apartment complexes to towers & townships, commercial premium office
spaces and retail projects like world-class shopping malls. it is India’s largest slum rehabilitation company, & was given the Mumbai International Airport Slum Rehabilitation project in October 2007,one of the largest urban rehabilitation projects in India. Emaar-MGF: One of the world’s leading real estate developers company in India and Development of properties in the residential flats, Commercial Properties, premium apartments etc. The ‘Commonwealth Games Village builder’ is still trying to get listed on NSE.
_History Emaar Properties, based in the United Arab Emirates, is a Public Joint Stock Company (PJSC) listed on the Dubai Financial Market. Established in 1997 with an initial paid-up capital of AED 1 bn, Emaar Properties is currently the Persian Gulf region's largest land and real estate developer. With over 60 companies, Emaar's activities include property investment and development, property management services, education, healthcare, retail and hospitality sectors, as well as investing in financial service providers. In 2007 the government of Dubai through the Investment Corporation of Dubai took a 32% equity stake in Emaar by exchanging land for 28 billion AED worth of stock. Emaar MGF Land Limited is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Limited of India. Emaar is one of the world's leading real estate companies, having developed approximately 89 million square feet of real estate across residential, commercial and other business segments and with operations in 14 countries. MGF has established itself as one of the key players in retail real estate development in Northern India and has delivered approximately 2 million square feet of retail space.
_First Point •
The Company commenced operations in India in February 2005 and is into real estate development with a pan-India presence and operations spanning all key segments of the Indian real estate industry, namely the residential, commercial, retail and hospitality sectors. The Company's operations encompass various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution. At present, its focus is on the development of residential projects in Delhi and elsewhere in the NCR, Mohali, Hyderabad, Chennai and other key Indian cities.
List of Top Indian RE Companies Sl. 1 2 3 4 5 6 7 8
Name DLF Tata Projects Sobha Developers Ltd Shapoorji Pallonji & Co Unitech India Bulls Real Estate HDIL Emaar-MGF
Market Capital (Crore) Rs.51,832.22 Rs 2,300 Rs 3,500
Rs.16,867.40 Rs.,545.17 Rs.8,567.76 www.emaarmgf.com
NRI-BUYERS-GUIDE (SITED FROM TATAHOUSING WEBSITE. WWW.TATAHOUSING.IN) 1. Who is a non-resident Indian (NRI)? An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as nonresidents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs) for the purpose of certain facilities. 2. Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial property in India? No. 3. Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use? Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain permission of Reserve Bank. 4. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission? The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India 5. What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission? They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid. 6. Can such property be sold without the permission of Reserve Bank? Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts. 7. Can sale proceeds of such property if and when sold be remitted out of India? In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.
8. Are any conditions required to be fulfilled if repatriation of sale proceeds is desired? Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. 9. What is the procedure for seeking such repatriation? Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. 10. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift? Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws. 11. Can immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India? Yes. General permission has been granted by Reserve Bank to non-resident persons (foreign citizens) of Indian origin to transfer by way of gift immovable property held by them in India to relatives and charitable trusts/organizations subject to the condition that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976, as applicable, are duly complied with. 12. Can foreign citizens of Indian origin acquire commercial properties in India? Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration. 13. Can they dispose of such properties? Yes 14. Can sale proceeds of such property be remitted out of India? Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8. 15. Can the properties (residential/commercial) be given on rent if not required for immediate use? Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.
16. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance? Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., and authorized dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investors' NRE/FCNR/NRO accounts. 17. Can Indian companies grant loans to their NRI staff? Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions. 18. Can authorized dealer grant housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-obligant/guarantor or where the land is owned jointly by such NRI borrower with his resident close relative? Yes. However, in such cases the payment of margin money and repayment of the loan installments should be made by the NRI borrower.
Definition of SpacesÂ What is the difference between carpet area, built-up and super built-up area? Carpet Area: The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area that is actually used and in which a carpet can be laid. Built-up Area: When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. Super Built-up Area: The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area.
Abberiviations & Definitions: NRI : Non Resident Indian PIO: Person of Indian Origin OCI: Overseas Citizen of India
Security Parking provision Multilevel basement for parking and services. Adequate surface parking Provision of access control and video surveillance
Andalusian Villa The Andalusian style originated in the Iberian Peninsula when the Moors integrated their culture and architecture with the Spanish. Characterized by the blending of the simple forms found in simple Spanish vernacular and in Moorish traditions of highly ornamental fenestration and facades, it utilizes courtyards and verandahs to maximize thermal delight. Andalusian Revival homes can be found along the California Coast near Santa Barbara. Mediterranean Villa The Mediterranean style echoes the architecture of its cousin, the Emirates Hills. A simplified version, the Mediterranean style reflects the rectilinear forms of the many vernacular whitewashed hillside towns that dot the Mediterranean Coast. From this simplicity, the refinement in solid details presents a style that echoes the past but forges into the modern era. Spanish Villa The Spanish style is a reflection of the homes found in the Iberian Peninsula as a response to its particular climate and availability of materials. Simplicity characterises this style, yet handcrafted Mexican decorative tiles highlight the arched entryways and gables. Balconies and windows are enhanced with decorative wrought iron railings. This style witnessed a renaissance in early 20th century California, where the climate mimics that of Spain.
NRI population in the world. • Middle East o Saudi Arabia 1,400,000 o United Arab Emirates 1,200,000 o Kuwait 500,000 o Oman 350,000 o Qatar 175,000 o Bahrain 140,000 o Yemen 100,000 o Jordan 4,100 • Asia - Pacific o Hong Kong S.A.R. 35,000 o Malaysia 2,300,000 o Singapore 400,000 o Philippines 125,000 • South America o Guyana 326,782 o Suriname 162,113 o Trinidad 473,735 • Africa o South Africa 1,200,000 o Mauritius 800,000 o Reunion 250,000 o Kenya 70,000 o Uganda 60,000 o Tanzania 50,000 o Madagascar 30,000 o Mozambique 21,000 o Zambia 20,000 o Zimbabwe 20,000 • Europe o United Kingdom 1,500,000 o Netherlands 300,000 o France 70,000 • North America o United States 2,500,000 o Canada 800,000 • Fiji 350,000 • Australia 150,000 • New Zealand 70,000
In the USA • The US Census Bureau has pegged the average Indian American family annual income at $60,000 as against the national average of $38,885. It is estimated that annual buying power of Indian Americans stands at $25 billion. • Today, NRIs are the second largest Asian group (2,226,585) in the US, behind only the Chinese (2,762,524). Source: 2003 American Community Survey • Indians own 50% of all economy lodges and 35% of all hotels in the US, which have a combined market value of over $40 billion. • One in every nine Indians in the US is a millionaire, comprising 10% of US millionaires. Source: 2003 Merrill Lynch SA Market Study • A University of California, Berkeley, study reported that one-third of the engineers in Silicon Valley are of Indian descent, while 7% of valley hi-tech firms are led by Indian CEOs. Source: Silicon India Readership Survey • Indians along with other Asians, have the highest educational qualifications of all ethnic groups in the US. Almost 67% of all Indians have a bachelor’s or high degree (compared to 28% nationally). Almost 40% of all Indians have a master’s, doctorate or other professional degree, which is five times the national average. Source: The Indian American Centre for Political Awareness. In the UK • There are 1,051,800 people of Indian origin in the UK. • The Indian emigrant community in the United Kingdom is now in its third generation. Now NRIs have been remarkably successful and moved from their being bus-conductors, waiters, and small shopkeepers to their being doctors, lawyers, accountants and successful businesspeople. • Indian food is now regarded as part of the British cuisine. • A remarkable collection British NRIs is available on Britain's leading NRI website History Talking.com. It's a web radio where you can listen to some of the leading NRIs living in the UK. • Indian culture has been constantly referenced within wider British culture, at first as an "exotic" influence in films like My Beautiful Laundrette, but now increasingly as a familiar feature in films like Bend It Like Beckham. In the Malaysia • A minority ethnic group, making up 7% of the Malaysian population. • Most Indians migrated to Malaysia as plantation labourers under British rule-most of these are Tamil but some Malayalam- and Telugu • 80% of ethnic Indians in Malaysia identify as Hindus. Deepavali and Thaipusam are the main festivals. In the Middle East Saudi Arabia 1,400,000, United Arab Emirates 1,200,000, Kuwait 500,000. Oman 350,000 Qatar 175,000 , Bahrain 140,000, Yemen 100,000, Jordan 4,100 • Many from Kerala and other south Indian states moved to the Gulf after the oil boom to work as labourers and for clerical jobs. They do not normally become citizens, retain their Indian passports • Indians like to work in the Gulf because of the tax-free income. Professionals are employed in the highest echelons of banks and corporations or have prospered greatly through conducting business in the region. In Africa South Africa 1,200,000, Mauritius 800,000, Reunion 250,000, Kenya 70,000, Uganda 60,000 Tanzania 50,000, Madagascar 30,000, Mozambique 21,000, Zambia 20,000, Zimbabwe 20,000 • Most Asians in South Africa came as labourers who were brought by the British from India in the 19th century, mostly to work in what is now the province of KwaZulu-Natal • Others came as traders from the Gujarat who migrated to South Africa at around the same time • Mahatma Gandhi worked as a lawyer in S.Africa in the early 1900
NRI Acronyms NRI : Non Resident Indian PIO : Person of Indian Origin OCI : Overseas Citizen of India RNRI : Returned Non Resident Indian RNI : Resident Non Indian
Why NRI hesitate to go back home: There are a number of reasons why the NRI will hesitate to go back to India.
Lack of Basic Facilities Lack of basic facilities like electricity, water, decent roads, lack of fresh air and pollution are some of the major deterrents that stops the NRI from returning home to India. The first thing that an NRI will notice is the assault of noise and pollution on returning home to India. It takes sometime, and some stomach upsets, often ending in diarrhea due to contamination of water, in spite of using only bottled water. 'What's the point, if you can't breathe fresh air, don't have clean water to drink, why should I return to India'? says an NRI Rajesh agitatedly.
Transportation â€˘ â€˘
Many NRIs cannot handle the Indian roads or the Indian traffic because they are so accustomed to lane discipline and traffic rules. It takes a while to master the Indian road, if at all. The second major reason is lack of professionalism whether the NRI intends to start his own business or work for a company in India, the desi work culture is too much for the NRI who is now used to getting things done in an American way. What do we mean by this?
For starters, take the number of holidays in a year due to so many religious festivals, in addition to the never ending strikes by one sector or the other. 'Indeed it is a wonder that work ever gets done in this country', moans a recent NRI who is having a tough time settling back in Bangalore. And there is so much of office politics, back biting, cribbing, "they can't take criticism at all, then, how can we achieve quality"? asks Rajesh. Office politics is not a unique desi syndrome, but it is more visible in India. Perhaps the returning NRI is reacting to it so seriously because he needs some time to re-orient himself to the Indian system. After all, he took quite some years to adapt to an American culture, else he wouldn't be able to achieve a certain lifestyle, right? Didn't he have any problems then? So it all boils down to how much flexible you are.
Children Children are the number one reason many NRIs try to return home to India. Children are also the number one reason why so many of them fail to readjust to the Indian situation. Many Indian children born in America don't feel at home with the Indian system of education. But things have changed in India. There are plenty of International schools in India that have the same infrastructure and teaching methods as in the USA, of course, these schools are more expensive.
Culture The longer your children are in the USA, the more difficult it is for them to adjust to Indian customs back home. It is one thing to make that annual trip to India, when all the relatives are beaming at you for the presents you bring home, and quite another story when your kids start influencing their country cousins with the American culture, in the way they speak, dress and eat. Many kids of strict vegetarian families have taken to eating non vegetarian food, dressing and talk too freely which the Indian might interpret as being disrespectful to the elders.
Dependence on people American system emphasis independence right from the moment a child is born; he gets his own crib, car seat, his own everything. In India, there is a culture of sharing. This causes a certain dependency on people in India, where as America has replaced the dependency on people with gadgets. Washing machines, dish washers, vacuum cleaners have replaced the maid. But in India, it is hard to survive without one. And like every Indian woman knows, good maids are the rarest of species. Of course these gadgets are readily available in the Indian market, but who can trust the power system in India?
Political uncertainty and religious revival
Godhra riots, Ayodhya controversy and increasing violence in the country make the NRI think twice about the safety of returning back to India. Corruption and lack of political will to change the country for the better makes the NRI think that he is better off in the USA.
Medical facilities India has the best hospitals and doctors you can think of, but when it comes to maintenance, it lags way behind many countries. But even this is changing, the returning NRI need not worry about getting the best medical help, if he is willing to spend a little more, as there are numerous well maintained, high tech hospitals have come up.
Emotional ties Emotional ties is the strongest reason why an NRI will want to come back to India. If his roots to the mother country is still strong, what ever the hurdles, he is ready to overcome them. But if the emotional ties have weakened, if there's nothing for him to connect to, whether it is his friends or family circle, or nostalgia for a place where he spent his childhood, his ancestral home or village, if all these have disappeared, then there is nothing left for him to come back to.
Changes in India too Over time, roads too take different names, certain buildings that you used to frequently visit might have disappeared, wastelands where you played cricket turned into commercial complexes, the advertisements have become bolder, the talking style in the radio has changed too, there is whole new vocabulary is in place supari, item numbers are alien to you and if you feel like a total stranger in your own country, it is not surprising at all.
Everything is available in the USA Indian News, Indian clothes, jewelry, spices, entertainment in the form of music and movies are readily available for the nostalgic Indian in the USA. Every Indian takes a little India with him when he leaves the country. So, why bother going back after all the years of struggle and start reconnecting all over? Is it worth it? Now, that is a question that every individual has to answer for himself. For some, it is worth it, for others it may not be.
How many actually return home? The question of how many really make it back home doesn't arise, as it is a matter of personal choice and circumstances which varies in every individual's case. Home, they say is where the heart is, simply follow your heart.
Indian Real Estate: Investments Source: India Brand Equity Foundation ( http://www.ibef.org/industry/realestate.aspx) During April-September 2011-12, the Indian real estate and housing sectors received US$ 453 million in foreign direct investment (FDI), according to the Department of Industrial Policy and Promotion India (DIPP). Further, the industry also witnessed growth in private equity (PE) investments as well. In the current calendar year so far (November 13, 2011), total investment from PEs was around US$ 741 million. According to a report by Jones Lang LaSalle (JLL), about US$ 15.8 billion has been invested from 2006 till date on various types of assets in the real estate sector in the country. Of which, US$ 2.7 billion went to residential projects and US$ 2.4 billion to township projects. A sum of US$ 2.3 billion went to commercial projects, US$ 2.1 billion to mixed use and US$ 961.4 million to special economic zones (SEZs). During the current year, PEs invested US$ 320 million in commercial, US$ 65 million in mixed use, US$ 44 million in residential, US$ 190 million in SEZs and US$ 122 million in township projects. During 2011, Hyderabad attracted the highest investment of US$ 190 million followed by Chennai US$ 143 million, NCR (national capital region) US$ 66 million and Bangalore US$ 22 million, as per the JLL report. Indian Real Estate: Major Developments • •
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Piramal Group plans to lend Rs 750-1,000 crore (US$ 145 million to US$ 193 million) to real estate projects in this fiscal to March 2012 through its newly set up non-banking financial company, according to Ajay Piramal, the Group’s Chairman. Real estate developer Isha Group of Companies has entered the concrete block manufacturing business by launching Isha Concrete Blocks unit in Chennai. The company has set up a manufacturing unit for concrete blocks at Medavakkam Post with an investment of Rs 12 crore (US$ 2.3 million), including land and machinery, with a capacity to manufacture 10,000 eight inch blocks per shift a day, according to Suresh Krishn, Managing Director, Isha Homes. Chennai-based real estate developer Vijay Shanthi Builders Ltd is planning to develop projects worth of Rs 2,100 crore (US$ 399.1 million) in next four years. The company has announced a residential project worth Rs 120 crore (US$ 22.8 million) in the city. NCC Urban Infrastructure Limited, a subsidiary of Hyderabad-based construction major NCC Limited, is lining up over 10 residential and commercial projects, together with a built-up area of 2.5 million sft, in Bangalore, Chennai, Hyderabad and Kochi. Real estate developer Lodha Group today announced over Rs 10,000 crore (US$ 1.9 billion) investment in a new project in the island city. The project, titled New Cuffe Parade, will come up at Wadala and is spread across 23 acres over the next five to seven years. The 23-acre plot is part of the 250-acre land bank that the company had bought from the Mumbai Metropolitan Region Development Authority (MMRDA) for Rs 4,053 crore (US$ 770.4 million). Malabar Builders, the real estate development arm of jewelery retail chain Malabar Gold, is planning to launch its first township project in Mangalore with an investment of Rs 500 crore (US$ 95 million). Diversified conglomerate Larsen and Toubro (L&T) is set to build India's first residential high-rise building on a pre-cast basis, a move that may introduce a structural change in the real estate market. DLF Ltd will invest up to Rs 3,000 crore (US$ 570.2 million) over the next five years to develop shopping malls across India as it looks to cash in on opportunities following the further opening up of FDI in retail sector.
Indian Real Estate: Government Initiatives The Government has undertaken various initiatives to help the sector grow in the recent past. Some of the major government initiatives include: • •
Allowing 100 per cent FDI in townships, housing, built-up infrastructure and construction development projects through the automatic route, subject to guidelines as prescribed by DIPP. Allowing 100 per cent FDI under the automatic route in development of Special Economic Zones (SEZ), subject to the provisions of Special Economic Zones Act 2005 and the SEZ Policy of the Department of Commerce.
In the Union Budget 2011-12, Mr Pranab Mukherjee, Union Finance Minister presented various initiatives for the real estate sector, especially focusing on affordable housing. Some of these initiatives include: • • • • •
Raising the limit on housing loans eligible for a 1 per cent subsidy in interest rates Widening the scope for housing under "priority-sector lending" for banks, making interest rates cheaper on them Earmarking substantial amount to the Urban Development Ministry for spending on extension of Metro networks in Delhi, Bangalore and Chennai Allocating US$ 20.03 million for the urban infrastructure development project. The Urban Development Ministry received US$ 1.5 billion, an increase of US$ 68.53 million from the last fiscal 2010-11. Increasing allocation for Bharat Nirman to US$ 12.89 billion. Bharat Nirman consists of 6 flagship programs, the Pradhan Mantri Gram Sadak Yojana (PMGSY), Accelerated Irrigation Benefit Program, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Program and Rural telephony.
Indian Real Estate: Road Ahead The affordable housing segment is expected to play an important role in the growth of the real estate sector in India in 2011, on the back of increasing demand for such housing, according to the Confederation of Real Estate Developers' Associations of India (CREDAI). "Affordable housing will be a key factor in driving the sector and we have already started working on progressive solutions in this area for effective and customised implementation of such projects," CREDAI Chairman Kumar Gera said. Further, growth in the infrastructure sector is also expected to accelerate real estate activities, in commercial as well as residential segments, during this year. Exchange rate used: INR 1= US$ 0.01901 as on November 25, 2011 References: Department of Industrial Policy and Promotion India (DIPP), PriceWaterhouseCoopers, Urban Land Institute and Media reports
Real Estate: Feb 2011 IBEF: February 10, 2011
The Indian real estate industry is expected to be valued at US$ 180 billion (INR 8,640 billion) by 2020. The real estate sector in India is on a rapid growth trajectory. The real estate sector is a key growth driver of the country’s economy. The contribution of the residential segment alone to India’s gross domestic product (GDP) is around 5 to 6 per cent. India has one of the largest number of retail outlets in the world. In a short span of time, the industry has evolved from a highly fragmented and unorganised market into a semi-organised market, with a large number of listed companies. With India emerging as a preferred destination for medical treatment, medical tourism in the country is expected to grow at 29 per cent to reach US$ 2.4 billion by 2012. In the organised retailing segment, the demand for quality mall space has increased with the entry of international retailers in India. The share of organised retail in the total Indian retail trade pie is projected to grow at 40 per cent per annum. Real estate activity is becoming geographically de-concentrated from large metros —Bengaluru, Chennai, Mumbai and NCR—to tier-II and tier-III cities (cities such as Chandigarh, Chennai, Jaipur, Pune, Hyderabad, Kochi and Visakhapatnam). In the last decade, foreign domestic investments (FDI) in real estate, has increased due to the growing interest of foreign players in the Indian market. The real estate sector is one of the highest FDI-attracting sectors in India, with recorded FDI inflow of more than US$ 8.9 billion (INR 403 billion) between April 2000 and September 2010. FDI of up to 100 per cent is allowed under the automatic route in most asset classes.
Armani to suit up Mumbai homes Source: Business Standard (http://www.business‐standard.com/india/news/armani‐to‐suitmumbai‐ homes/447285/), August 28, 2011
Mumbai: Almost a year after launching its ambitious project ‘World One’, touted as the world’s tallest residential tower, Mumbai’s Lodha Group is bringing iconic fashion designer Giorgio Armani’s interior design studio, Armani Casa, to India next month to design its apartments and villas. Armani, which also designed residences in Burj Khalifa in Dubai is setting up its first-ever gallery in India on the World One premises in Lower Parel. And, to announce the studio’s impending arrival, the developer is offering a select group of potential buyers the opportunity to book flats and get furniture from the studio for a single room complimentary, up to September 15. The total benefit would be in the range of Rs 50-75 lakh, possibly the equivalent of the cost of an apartment in some of the Mumbai suburbs. Armani’s association with the project seems to have completed the circle of international names like US-based architecture firm Pei Cobb Freed & Partners and landscaping architect, Ken Smith, associated with the project. But the apartments in the project that has three towers are expectedly for ones with deep pockets. Also, being moneyed is not enough; the apartments are being sold strictly “by invitation”. The price of a basic three-bedroom, 3,000-sqft apartment in World Crest costs Rs 8.5 crore; in the main tower World One, apartment prices start from Rs 9.5 crore and a mansion (duplexes with a 360-degree view of the city) costs a whopping Rs 100 crore. There are only 11 such units and the developer has put in place even more stringent filters for ascertaining potential buyers. The company directly contacts the buyers who fit the ‘profile’ of a World One mansion resident and a representative is sent with a personalised presentation to pitch the project. Also, being moneyed is not enough; the apartments are being sold strictly “by invitation”. The price of a basic three-bedroom, 3,000-sqft apartment in World Crest is Rs 8.5 crore; in the main tower World One, apartment prices start from Rs 9.5 crore and a mansion (duplexes with a 360-degree view of the city) costs a whopping Rs 100 crore. There are only 11 such units and the developer has put in place even more stringent filters for ascertaining potential buyers. The company directly contacts the buyers who fit the 'profile' of a World One mansion resident and a representative is sent with a personalised presentation to pitch the project. Sources say the potential resident must have a minimum annual turnover of over Rs 2,000 crore. And, the developer has sold just a single mansion as yet. Otherwise, Lodha has sold over half of the 350 units in World One and nearly 40 per cent in World Crest, which has 240 units, they add. The project, replete with envisaged high-end shopping boulevards, al fresco dining units and even a Mumbai museum dedicated to recounting the city's past is expected to take six years for completion. The first two towers are expected to be completed by the end of 2014 and 2015, respectively. The third is expected to come up next year and bookings will open accordingly. Though the developer plans to build 117 floors, sources say it has approval for only 85 so far. If you are still not sure about the project's exclusivity, sample this: You have to call up at least 24 hours in advance for an 'appointment' to visit the site office, be prepared to field questions about your car, your favourite holiday spots and the newspapers you read, enabling the sales personnel to 'understand' your profile. And, as if to award you for jumping these hoops, after a 10-minute presentation, when you sit for discussion with the sales manager, take your pick from pastas, sandwiches and desserts, according to your preference.
Growth/Forcast Index _With India emerging as a preferred destination for medical treatment, medical tourism in the country is expected to grow at 29 per cent to reach US$ 2.4 billion by 2012.
_ The Indian real estate industry is expected to be valued at US$ 180 billion by 2020. _ The real estate sector is one of the highest FDI-attracting sectors in India, with recorded FDI inflow of more than US$ 8.9 billion (INR 403 billion) between April 2000 and September 2010.
_ The contribution of the residential segment alone to India’s gross domestic product (GDP) is around 5 to 6 per cent. _ it has been estimated that there would be shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) _ According to a report by Jones Lang LaSalle (JLL), about US$ 15.8 billion has been invested from 2006 till date on various types of assets in the real estate sector in the country. Of which, US$ 2.7 billion went to residential projects and US$ 2.4 billion to township projects.
The popularity of the Indian real estate sector is also highlighted by a report ‘Emerging trends in Real Estate in Asia Pacific 2011’ published by PriceWaterhouseCoopers and Urban Land Institute.
Facts _India has one of the largest numbers of retail outlets in the world.
_ The top three reasons for reverse migration between 2008 and 2011-in the aftermath of the global economic crisiswere job insecurity, personal growth opportunities in India and the call of the native land, said the Kelly survey. _ India's rapidly growing economy is expected to start a reverse migration of its working diaspora currently settled abroad.
Target Cities _ These places include Jodhpur, Agra, Punjab, Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Bangalore, Hyderabad
World Crest 3,000-sqft apartment in is Rs 8.5 crore
BIBLIOGRAPHY INDEX Images
Methods This research is done for a thesis of laurea specialistica in architecture and urban landscape at Politecnico di Milano, Italy (A.A_ 2010/2011). As a part of its international program, all of the contents, reviews and discussions are conducted in English. Therefore, any related elements during the process of this research (including the non-English websites, online journals) automatically will not be reviewed or put aside from the categorization. The division of the chapters and sub-chapters on this book are at the same time the steps of methods to do this research.
Armani to suit up Mumbai homes Business Standard: August 28, 2011
Mumbai: Almost a year after launching its ambitious project ‘World One’, touted as the world’s tallest residential tower, Mumbai’s Lodha Group is bringing iconic fashion designer Giorgio Armani’s interior design studio, Armani Casa, to India next month to design its apartments and villas. Armani, which also designed residences in Burj Khalifa in Dubai is setting up its first-ever gallery in India on the World One premises in Lower Parel. And, to announce the studio’s impending arrival, the developer is offering a select group of potential buyers the opportunity to book flats and get furniture from the studio for a single room complimentary, up to September 15. The total benefit would be in the range of Rs 50-75 lakh, possibly the equivalent of the cost of an apartment in some of the Mumbai suburbs. Armani’s association with the project seems to have completed the circle of international names like US-based architecture firm Pei Cobb Freed & Partners and landscaping architect, Ken Smith, associated with the project. But the apartments in the project that has three towers are expectedly for ones with deep pockets. Also, being moneyed is not enough; the apartments are being sold strictly “by invitation”. The price of a basic three-bedroom, 3,000-sqft apartment in World Crest costs Rs 8.5 crore; in the main tower World One, apartment prices start from Rs 9.5 crore and a mansion (duplexes with a 360-degree view of the city) costs a whopping Rs 100 crore. There are only 11 such units and the developer has put in place even more stringent filters for ascertaining potential buyers. The company directly contacts the buyers who fit the ‘profile’ of a World One mansion resident and a representative is sent with a personalised presentation to pitch the project. Also, being moneyed is not enough; the apartments are being sold strictly “by invitation”. The price of a basic three-bedroom, 3,000-sqft apartment in World Crest is Rs 8.5 crore; in the main tower World One, apartment prices start from Rs 9.5 crore and a mansion (duplexes with a 360-degree view of the city) costs a whopping Rs 100 crore. There are only 11 such units and the developer has put in place even more stringent filters for ascertaining potential buyers. The company directly contacts the buyers who fit the 'profile' of a World One mansion resident and a representative is sent with a personalised presentation to pitch the project. Sources say the potential resident must have a minimum annual turnover of over Rs 2,000 crore. And, the developer has sold just a single mansion as yet. Otherwise, Lodha has sold over half of the 350 units in World One and nearly 40 per cent in
World Crest, which has 240 units, they add. The project, replete with envisaged high-end shopping boulevards, al fresco dining units and even a Mumbai museum dedicated to recounting the city's past is expected to take six years for completion. The first two towers are expected to be completed by the end of 2014 and 2015, respectively. The third is expected to come up next year and bookings will open accordingly. Though the developer plans to build 117 floors, sources say it has approval for only 85 so far. If you are still not sure about the project's exclusivity, sample this: You have to call up at least 24 hours in advance for an 'appointment' to visit the site office, be prepared to field questions about your car, your favourite holiday spots and the newspapers you read, enabling the sales personnel to 'understand' your profile. And, as if to award you for jumping these hoops, after a 10-minute presentation, when you sit for discussion with the sales manager, take your pick from pastas, sandwiches and desserts, according to your preference.
Facilities and amenities that attract NRI to invest in RE properties The NRI people who spend quite a longer period in far east prefer their new life in India as it was in abroad. So, they generally look for those facilities they have enjoyed in their abroad life. Here, we will see how the real estate player Emaar MGF attract the NRI by providing those facilities in their residential properties. In our analysis, we will try to find out how they provide those amenities and facilities . They key areas that Emaar MGF has emphasized are Outdoor Space Indoor Space Outdoor space around the residential properties can be categorized as Courtyard Open Green Lawn Mini Golf Course Indoor spaces are categorized as Living Room Open Kitchen with dining Health related facilities like Gymnasium, Pool/Snooker club
Abstract Habitation is one of the primary needs of human being. For a better dwelling place, people roam across the world, gain knowledge, experiences and ofcourse earn money. Not in every civil state, the government can provide sufficient dwelling place to its citizen. The private sector plays a vital role in this regard. For a better lifestyle people from developing nation change their native land and move towards the most developed nation in the world. During this process they adopt the new culture, lifestyle, rituals from that nation. India is a developing nation in the world and it has quite a big number of skilled and unskilled immigrants in developing nations like USA, Canada, UK, Australia and in the Middle east. Those non resident Indians posses a better lifestyle in their new place than that of their origin. In the recent past, a new trend has been started which is named as reverse migration. That is, the non resident Indians are going back to their native land after spending a reasonable period of time in abroad. This thing is a fact because of new opportunities created by the government of India with the help of a change in socio-economic condition over the last decade. Non resident Indians are looking for a new lifestyle in the very traditional context of their native land.
Real estate players in Indian market grab this opportunity to play a vital role for the placement of nonresident Indians in their native land. The new adopted lifestyle of Indians boosts the developers to provide such life Indian context. For this consequence many global real estate players have found their keen interest to come into the real estate market of India. Their interventions with the contribution of famous international architects in India have made a significant impact to draw the map of return. The analytical part of this research paper was aimed to find out the evitable points behind those causes. Methodologically, the resources in internet were the base of the analysis. To make a rational judgment, the newspaper article, online blog, and user feedback were taken into account. However, it was critical analysis to find the key actors for tracing the new map of return for the non resident Indians where architecture matters as culture.