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Volume 1 Issue 1

www.apreda.org

January 2010

APREDA : BUILDING NEW HORIZONS

From the President’s Desk

Andhra Pradesh Real Estate Developers Association, popularly known as “APREDA’, founded in 1996, is a vibrant organization with 400 members and functions out of its head office in Hyderabad and branch offices in Vizag, Tirupati and Vijayawada. My predecessors Col. (Retd.) Narne Ranga R ao, Sri. M Murali Mohan and President Sri. PS Reddy have set such high standards of service and systems it’s a privilege for the new Governing Council to inherit and enhance. The new Governing Council of ‘APREDA’ that assumed office in April 2009 took the challenges in its stride and chartered a course of action to “Spiff up its contribution through collective action.” This essentially involved a decisive shift from its traditional role of interacting with the Government in evolving development oriented policies to that of a vibrant organization that caters to the overall needs of its members as well as other stakeholders. P Prem Kumar

The strategies we have chosen to follow:4 Innovate and strengthen the brand “APREDA” 4 Create and unleash synergies in Marketing, Cost Management and Financing etc. 4 Increase the portfolio and quality of services to members and other stakeholders viz., Product Knowledge, Construction Techniques, Process Innovation, Product/Service/Price Intelligence. 4 Networking with National and Regional Organizations. Some achievements in this regard include the new logo & presentation materials, Guest Speaker Sessions, Product Presentation, SMS & e-mail Service, Networking with ‘NAREDCO’ and others. The Diary and Website are in the offing. This Newsletter is another step in this direction. “Wishing you all a healthy and successful 2010”

Congratulations

Shri P Prem Kumar, President - APREDA, is elected as Vice President (South), NAREDCO. APREDA Horizons congratulates and wishes him a successful innings in the National Realty Arena.

Schindler Elevators & Escalators

APREDA IN THE YEAR 2009 4 APREDA’s new Governing Council headed by Sri P. Prem Kumar, President, assumed office in April ’09. 4 Sri Shilpa Mohan Reddy and Sri Jupally Krishna Rao, from the Realty Industry, took over the important portfolios of Housing and Civil Supplies respectively, in the Government of A.P. 4 Sri Batti Vikramarka, erstwhile member of APREDA, is appointed as Chief Whip of Congress Party in A.P. Assembly. 4 Dr. Y. S. Rajasekara Reddy expired in a helicopter crash: APREDA paid homage to the departed leader under whose tenure APREDA had several interactive meetings with the Govt. that resulted in shaping Building Bylaws, incentives for affordable housing, establishment of a green channel for issuing of layout/building permits and several other initiatives for real estate growth. Dr. Y. S. Rajasekara Reddy had also unveiled the “Tsunami Housing Colony” constructed by APREDA members with their own contributions and handed over free of cost to the victims at Bingenpally, Prakasam Dist. 4 Several districts of Andhra Pradesh were affected by floods. While individual APREDA members contributed in cash and kind, APREDA as an association proposed to construct a housing colony for the flood victims on the lines of ‘Tsunami Colony’ constructed by APREDA and requested Sri. Konijeti Rosaiah garu, Hon’ble Chief Minister of Andhra Pradesh, for allotment of land. 4 Sri Murali Mohan, Past President & Chief Mentor-APREDA, is elected as President, Movie Artistes Association (MAA). 4 APREDA Delegations participated in (i) AP Government ‘Group of Ministers’ Interactive Meet on Integrated Township Development with Private Initiatives. (ii) Ninth National Convention of NAREDCO and National Conference on Public Private Partnership in Housing. (iii) Coordination Meeting of State Chapters of NAREDCO.

Kirloskar Gensets Finolex Cables

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RAGI ARCADE’ 141/8, R.P. Road, Secunderabad - 500 003. A.P. INDIA Ph : +91-40 2753 4826, 2753 4827, 6656 8047 / 6656 8059 E-mail : info@ragiandragi.com, visit us : www.ragiandragi.com


National Realty Trends Regulatory Bill The Central Govt. proposed to enact a Model Bill for Regulating Real Estate. The Proposal to establish a Regulatory Authority and an Appellate Tribunal in each state to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain a website containing all project details, with a view to protecting, on the one hand the public interest in relation to the conduct and integrity of promoters and other persons engaged in the development of such colonies and, on the other hand, facilitating the smooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties and for matters connected therewith or incidental thereto.[ details on website]

THE TREND OF GROWTH ACROSS METROS

Realty Revival

In a report on residential markets in India, global realty research firm Knight Frank said that from now until the end of 2011, approximately 3,67,000 units, roughly 533 sq ft of Grade A METRO residential supply, are expected to come up in seven major cities in India. Of this unit supply, the report says Hyderabad accounts for approximately 14% of the units and 6.1% of the built- Chennai up area. {see Table for other details} Bangalore

NCR Hyderabad Kolkata Mumbai Pune

Rating of Developers & Projects by NAREDCO In a bid to help purchasers, NAREDCO has introduced a service for rating of Developers and Projects. The rating is done by NAREDCO certified rating agencies like CRISIL etc. The rating system is a comprehensive mechanism covering a) Developers

b) Projects

Rating of Developers: This is based on a criteria of track record, capital employed, manpower, equipment, type of areas, number and value of projects, built-up area, amount of foreign exchange earned etc., as outlined below. 1. Track record of Developers/Builders based on general reputation in the market, including performance relating to items such as Quality of construction in conformity with nationally approved standards relating to all fields of construction. • Conformity with building by-laws and regulations. • Record of serviced land delivery a) On owned land

b) On others land

• Provision of on-site infrastructure a) On owned land

b) On others land

• Conformity with financial regulations and fair trade practices. • Nature & extent of litigation against the developer by government/semi-govt/public sector agencies/general public. • Conformity with ethics concerning sales and subsequent services. • Provision of Community Services: Education, medical, recreation etc. 2. Capital employed by the company and annual turnover for the past five years. 3. Manpower employed.

HOUSING UNITS (in 1000s)

HOUSING DEVELOPMENT (in millions sft)

33 38 92 53 25 73 53

45.4 72.1 160.1 87.2 31.9 80.6 54.2

4. Equipment used either on own or through suppliers/subcontractors. 5. Type of areas covered during the past 10 years relating to commercial, residential areas, integrated townships, group housing etc. a) On owned land

b) On others land

6. Number and value of projects in hand (both physical as well as financial) relating to properties a) On owned land

b) On others land

7. Total built-up area in current project, number of dwelling units, contribution to economically weaker section of the society. a) On owned land

b) On others land

8. Amount of foreign exchange earned through sale of real estate to NRIs during the last five years. Rating of Projects: The rating reflects the status on a graded scale indicating developer related risk factors leading to development and transfer the title of the property to the customer / investor. Such a rating shall provide incentives to developers to maintain standards and conform to legal and building norms with consumer / investor getting a fair deal. This shall facilitate the orderly growth of the sector presently characterised by inconsistencies and irregularities. NAREDCO rating of developer shall lead to a national pool of certified developers operating both at the national & state levels.

For more information, log on to:

www.naredco.org/home_rating.html


Govt. Initiatives for Real Estate Development in Andhra Pradesh Policy on Promoting Development of Integrated Townships with Private Initiatives The Government of Andhra Pradesh, with a view to giving impetus to planned urban development of urban areas and surroundings of cities and towns of the state and to encourage private sector investment / Foreign Direct Investment (FDI) in real estate sector, and to encourage development of integrated townships with private initiative, is coming up with a comprehensive Policy and Rules & Regulations. The Major Objectives of this exercise are: a) To encourage and promote large scale integrated development of self-contained townships with private initiatives that would result in optimization of land use, ensure economies of scale, increase housing facilities, and better provision of infrastructure facilities and amenities; b) To have in-built incentives and safeguards that would ensure planned development not only in large urban areas but also in smaller urban centres so as to ultimately contribute planned decentralisation and dispersal of urbanisation in the state and give impetus to development of small and medium towns; c) To have a viable institutional mechanism for promoting such integrated townships development; d) To cater to all sections of society as well as create more work spaces through such integrated townships development; e) The whole process would result in a win-win situation for all stakeholders (viz. land owners, developers, Government and public at large) f) To reduce dependency on Government lands for such type of development. APREDA is actively associated with the “Group of Ministers” in shaping this policy.

APREDA Members

Late Dr. YS Rajasekhara Reddy Garu, Past Chief Minister of AP, seen at the unveiling ceremony of Tsunami Colony constructed Tsunami Colony at Binginipally, by APREDA Members and given free of cost to Tsunami victims Singarai Konda Mandal, Prakasam Dist.

The Tsunami Colony was inaugurated by the then Finance Minister, Govt of Andhra Pradesh Shri K Rosaiah Garu

Bhu Bharti - Integrated Land Information System Brief Overview As part of efforts directed at reforming land administration, the Government of Andhra Pradesh is considering the introduction of “Bhu Bharati,” an integrated land information system, which has been piloted in Nizamabad district.

Project Description The Government of Andhra Pradesh approved the concept of the project and issued an order for piloting it in Nizamabad district. Accordingly, the current departmentcentric approach will make way for a service-centric

architecture. The system will deliver the entire gamut of land-related services to the end users through a unified interface. The present system of maintaining land records in multiple government departments will be discontinued. A single dedicated agency will create, maintain and deliver all land-related services like survey, subdivision, maintaining title records, registering property transfers, and maintaining property tax records in rural and urban areas. For more information, log on to: www.nisg.org/previewproject

Govt. of A.P. Incentives for Affordable Housing a) Issued G.O.Ms. No.01 dated 01-01-2009 for total remission of the Stamp Duty of 5% payable as per Article 47-A(d) of ScheduleI-A to the Indian Stamp Act, 1899 on the sale deeds in respect of residential flats/apartments including semi finished structures. The remission is applicable to flats/apartments measuring upto 1200 Sft. or below, including common area excluding parking area. b) Issued G.O.Ms. No. 3 dated 02.01.2009 exempting the prescribed payment of Building Approval Fee / Building Permit Fee for a period of one year to all apartment complexes /group housing projects on the built up area covered by a housing units of plinth area up to 1200 Sft (including common areas). In case only a part of the complex is proposed with Housing units of 1200 Sft, (including common areas), the said fee exemption shall be extended to that proportionate area only. APREDA has already represented to the Govt. for the extension of the exemption period for one more year.


Guest Speaker Session APREDA GUEST SPEAKERS Sri Jawahar Reddy, Commisioner, HMDA, gave a presentation on the Infrastructure Development Projects in the Hyderabad Metropolitan Area. He felt that it is not long before Hyderabad develops into a world class city. Sri Sista Vishwanatha Rao, OSD in the Dept. of Municipal Administration and Urban Development, Government of A.P, delivered a Guest Lecture on “Affordable Housing” and the proposed comprehensive Urban Land Development Rules for Andhra Pradesh. He highlighted the need to take up affordable housing projects as there is enormous unfulfilled demand for this category. He also felt that such projects will give continuous workflow and stable income for the developers even though the profit margins may be low. He also gave the outline of proposed comprehensive Urban Land Development Rules.

Sri P.S. Reddy, Immediate Past President and Chief Advisor, presenting a memento to Sri S C Mohan Reddy, Hon’ble Minister for Gruha Nirman

Sri M Murali Mohan, Past President and Chief Mentor, presenting a memento to Sri Jupalli Krishna Rao, Hon’ble Minister for Civil Supplies

PRODUCT PRESENTATIONS 4 Schneider Lifts made a product presentation at APREDA Monthly Meeting in November 2009. 4 A presentation on Gypsum Plastering as a substitute for Cement Plastering was made in the Monthly Meeting. 4 Ragi & Ragi made a presentation in APREDA Monthly Meeting on Kirloskar Gensets and Electrical Items.

Fortune towers

M a d h a p u r, H y d e r a b a d

Then, it was about shelter. Now it’s about lifestyle!

Amenities

4Spacious clubhouse with steam, Jacuzzi and indoor games 4Well-equipped air conditioned gymnasium 4Screening of visitors at security through a dedicated TV Channel 424×7 security with intercom 4Extensive greenery to explore and indulge 4Outdoor children play area with play equipment 4Water softeners

Sri Sreenivasa

CONSTRUCTIONS

Plot No.35, Sagar Co-operative Housing Society Road No. 2, Banjara Hills, Hyderabad - 34, Ph: 040-2355 1891/92 www.srisreenivasa.com

Edited and compiled by: R. Chalapathi Rao. Vice - President, APREDA Published by APREDA. For Private Circulation only.

# 102, Tirumala Shah Apartments, Yellareddyguda Road, Ameerpet 'X' Road, Hyderabad -500 073. E-mail : apredahyd@yahoo.com


APREDA Jan issue