January issue 2015 by Observer Dawn

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Briefing

Cover Story

Desk News

Investment

Chennai: Time to Invest is Now Emaar MGF Home-buyers Need not Hesitate to Invest in their Receives Prestigious Dream Home. EPC World Award The Commonwealth Games Village - Residential project, developed by Indiaâ&#x20AC;&#x2122;s leading real estate company Emaar MGF...

Smart City:The Dream of a New India

Enjoy Winters with Heated Swimming Pool

Technology

Outlook

The success of such a city depends on inhabitants, entrepreneurs, visitors and their participation in energy saving and accomplishment of new technologies.

Property

Be Careful, Before Hiring a Contractor How one can select a contractor to handle renovation or other work of a house or group housing society.

Homes are being designed in more innovative ways than one.

Letter From the Editor

Pushing for Affordable Housing sing data from the Ministry of Housing and Urban Poverty Alleviation (MHUPA), a recent report found that India had a shortage of around 20 million urban housing units. A major chunk of the housing shortage was concentrated among the economically weaker sections and low income housing groups. Also, the demand for urban housing will scale up by nearly 12 million units by 2017 and around 23 percent of this demand will come from the top eight cities of India. How to abridge this gnawing gap is really a challenging task. Experts suggest that public private partnerships (PPPs), building integrated townships, pushing redevelopment projects, increasing FSI limits and other measures will reduce the housing shortages. There is also another aspect. Though increasing urbanisation has spurred the demand for housing within cities, prevailing high prices of real estate are keeping home-buyers away. Across the major cities especially in DelhiNCR, unsold inventories have been on a rise and absorption rates continue to remain low. In such a situation, the government can tread ahead on its mission of “Housing For All by 2022” by pushing for affordable housing within the city limits across the country through PPPs. But to make the scheme successful, States need to play their role effectively. The Centre has been in the process of taking various steps and the Urban Development Minister M. Venkaiah Naidu recently said that the government is trying to get priority sector lending status for housing. As a measure to boost the housing industry, it has also relaxed norms for foreign direct investment (FDI) in real estate. However, the states need to accord speedy clearances and cut down on delays. Several states have their own housing policy, but in many cases the policy is not very clear. Financing is another major issue as far as the access to loan for such buyers is concerned. The outlook looks to be encouraging since a new dispensation came to power at the Centre. Capital markets are buoyed with improving fundamentals. The market performed greatly compared to last year. Even if surge in Sensex may not reflect economic reality, it is driven by high expectations and indicates government's preparedness to undertake the much needed reforms to take us back to the days of 8-9% growth. For foreign investors, the ‘new’ India story is appealing, considering the state of the other big economies. China is slowing and Europe and Japan are in trouble. This is despite the fact that industrial growth is still sluggish and response to the much touted ‘Make in India’ to build the nation as manufacturing hub is yet be gauged realistically. Happy Reading !

For foreign investors, the ‘new’ India story is appealing, considering the state of the other big economies. China is slowing and Europe and Japan are in trouble.

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Editor, Observer Dawn

@harityagi2003 @harityagi2003 @harityagi2003 @harityagi2003 January 2015 OBSERVER DAWN

Desk News

Emaar MGF Receives Prestigious EPC World Award

he Commonwealth Games Village - Residential project, developed by India’s leading real estate company Emaar MGF, was conferred the prestigious EPC World Award for ‘Outstanding Contribution in Green Building Project- Real Estate Category’. The project received the award during the 5th EPC World Awards 2014 held at The Ashok, New Delhi. Shri Sanjay Malhotra, Chief Financial Officer, Emaar MGF Land Ltd. accepted the prestigious award on Company’s behalf from Dr. Mahesh Sharma, Minister of State of Culture and Tourism (Independent Charge) & Civil Aviation and Shri Vishnu Deo Sai, Minister of State for Steel & Mining, Government of India. The EPC World Awards is one of the most cherished industry recognition awards in India for acknowledging achievements and stimulating efficiency across the entire spectrum of Infrastructure, Energy, EPC and Construction industries. Mr. Shravan Gupta, Executive Vice-Chairman & Managing Director, Emaar MGF said on receiving the prestigious award, “This felicitation on Commonwealth Games Village is indeed a matter of great honour and pride for Emaar MGF. It is an appreciation of our steadfast commitment and persistent dedication towards becoming the most admired and respected Real Estate Company. We have always been identified globally as a premium

organization providing exalted quality of deliverables to our customers and patrons, including eco-friendly habitats and sustainable lifestyles.” n

Ashiana, Landcraft Launch Centre Court in Gurgaon

ealty firms Ashiana Homes and Landcraft Projects raised Rs 100 crore from Pirmal Capital through PE fund in the project and another Rs 80 crore from financial institution India Infoline to fund their upcoming housing project in Gurgaon. The total cost of the Centre Court in Sector 88 A, Gurgaon, is Rs 650 crore. "We are pleased to partner with Ashiana Homes and Landcraft Developers for The Center Court, Sports Residences. The strategic location of Sector 88A benefits from two important growth corridors - Dwarka Expressway and the New Gurgaon re-

OBSERVER DAWN January 2015

gion.. We look forward to bringing more such projects with our partners in the near future as a sign of our deep relationship with them," said Khushru Jijina, MD, Piramal Fund Management.The Centre Court is offering 2 and 3 BHK deluxe apartments with sizes ranging between 1565 sqft to 2175 sqft respectively. Prices in the project vary between Rs 1 crore to Rs 1.5 crore. "In the project we have a bouquet of facilities for the residents and we assure people that this place will turn out to be the 'address' to live in. Availability of Concierge service and Laundromat service in tie up with Electrolux inside the project exclusively for the residents is in itself a proof of the class and lifestyle that we are talking about," says Rohit Raj Modi, Director. n

Open an account with Allahabad Bank, Laxmi Nagar Branch and avail following benefits

m a d a k Har ke saath aap

A-11, Priyadarshini Vihar Laxmi Nagar, Delhi 92 2

Cover Story

Surat Partners with Microsoft to Become a Smart City

urat Municipal Corporation (SMC) and Microsoft India announced their partnership to transform Surat into a smart city. SMC has been one of the early technology and e-Governance adopters and the city has selected Microsoft as its partner of choice for process automation and citizen services. With help from Microsoft and its partner ecosystem, the city administration is evaluating technology infrastructure to meet the changing needs of its citizens. Announcing the partnership, Mr. Milind Torawane, IAS, Surat Municipal Commissioner, said, “Surat is the fourthfastest growing city in the world, with a population of 50 lakhs. It is a vibrant business hub - 80 percent of the world’s diamonds are processed in Surat, 40 percent of India’s demand for textiles is met by the city and it serves as the economic hub for several industries. In this context, it becomes increasingly important to leverage technology as an enabler of constant modernization. We are excited to partner with Microsoft to transform Surat into a sustainable and competitive city that cares for its citizens.” Commenting on the announcement, Niranjan Zanzmera, Mayor, Surat, said, “By transforming Surat into a smart city, we are setting a benchmark for other cities in the country on how IT solutions can help empower citizens and address cities biggest challenges

and fuel economic growth. The work been undertaken by Surat Municipal Corporation and Microsoft India is commendable”.n

Ajnara Offers Possession of Ajnara Daffodil

jnara India Ltd announced offer of possession of its 570 residential units in its project, Ajnara Daffodil located at sector 137, Noida Expressway. Several customers were also handed over the keys on the day and will soon move into their new homes. The project offers luxurious and highly spacious 2 and 3 BHK apartments ranging from 973 sq. ft. to 2095 sq. ft. along with studio apartments. The project is full of lush green spaces, large open area and highend modern amenities such as state of art club, ultra-modern gym, golf cart for visitors, grand amphitheatre, unisex beauty salon, indoor sports facilities, party hall for social

OBSERVER DAWN January 2015

gathering and much more to relish for the residents and users. The project has a total of 1020 residential units out of which 570 units have been offered possession and 280 studio apartments. The construction is moving ahead at a rapid pace for other phases as well. Feeling jubilant, Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “The best part of having a home or an office at Noida Expressway is the location advantage it offers. It is like having a property right between Noida and Delhi, so both the places become very close. For investors also, this is more like a religious destination with hyper capital appreciation and massive demand for commercial property. We are feeling extremely proud to have delivered our first phase of the project to its rightful owners and hope to service them in the best way always”. n

Desk News

Shah Rukh Khan as DHFL’s Brand Ambassador

HFL, India’s second largest housing finance company in the private sector, has now Mr. Shah Rukh Khan as its Brand Ambassador. This is the Company's first such brand association in its 30 year journey of providing financial access for home buying amongst Indian customers. Mr. Kapil Wadhawan, Chairman and Managing Director, DHFL, said, “We are extremely pleased to have Mr. Shah Rukh Khan as DHFL's Brand Ambassador…Today, DHFL is on its way to becoming a large financial services institution, reaching out to customers across the country, with its customised products and solutions. Mr. Shah Rukh Khan, with his people connect driven by diverse performances, has en-

thralled Indians over the years. This resonates with our brand philosophy of being able to cater to customers with tailor made financial options, designed to suit their evolving needs. In this context, Mr. Shah Rukh Khan is a perfect Brand Ambassador in our endeavour to connect with every Indian for their financial well-being, today and in the future." Mr. Shah Rukh Khan said, “It is an honour to be associated with DHFL. I truly believe that owning a home is the first step towards ensuring a secure and confident future for every family. I personally believe that DHFL's mission of enabling home ownership amongst every Indian is as relevant today, as it was 30 years ago when DHFL began operations. It is exciting that, now I am associated with them as a brand ambassador in their journey of catering to customers with effective and relevant financial services products." n

Kolte Patil Developers Collaborates With Porcelanosa

olte Patil Developers Ltd.’s Luxury brand 24K, recently announced its collaboration with Porcelanosa Group, marking the European brand’s entry into the Indian market through Luxury properties in Pune, India. Porcelanosa Group will bring its core expertise in porcelain and ceramics with its flagship brand Porcelanosa. 24K’s association with the Group will also extend to two premier brands - Gamadecor and Noken. Each brand will lend their specialties in categories like kitchen and bathroom fittings to 24K by Kolte-Patil. Mr. Nirmal Kolte, the young and dynamic Project Director of Kolte Patil Developers Ltd., who spearheaded the collaboration with Porcelanosa Group, says, “Pune has witnessed tremendous growth in Real estate over the past decade, and past few years have seen substantial increase in the demand of Luxury homes. To

OBSERVER DAWN January 2015

serve that demand, we launched the brand 24K. Following the 24K design thinking philosophy, we are partnering with the best brands for our consumer. Our exclusive association with Porcelanosa Group, Europe’s leading international brand for flooring, tiles and bathroom fittings, is the first step in staying true to our philosophy. With the launch of this association through 24K Province, we are sure that our customers will be delighted with these beautiful products while others will have something to envy.” Speaking about the collaboration, Mr. Jimmy D’Heer, Corporate Product Manager -Porcelanosa Group adds, “We see in KPDL our perfect partner because we share the same values in terms of quality standards, design aesthetics, feel of luxury and the constant drive for care for detail in everything we do. The 24K concept materializes the vast majority of our brand values.” n

Desk News

Meet Brothers and Morpheus Group Rock Noida

oida could not witness a better New Year bash than this one. The eve of 2014 saw a huge gathering of youngsters and families coming in to celebrate the welcoming of 2015. Morpheus Group, one of the major emerging realty players of NCR had sponsored the event at Noida Stadium. Famous Bollywood musicians ‘Meet Brothers’ rocked the stage as the crowd was seen dancing on their popular numbers. The night was completely dominated by the famous Punjabi duothatrocked the entire stadium and the crowd went berserk. The huge gathering enjoyed Meet Brother’s performance on their latest and hit songs like “Baby Doll” and “Party toh banti hai”. The event witnessed a massive gathering of around 2,000 people. The event was perfectly organised and managed as the day was concluded with dinner and cocktail. The event ended successfully and the crowd was overwhelmed. Looking at the success of the party, Mr. Prithvi Raj Kasana, MD, Morpheus Group said “At Morpheus we have always been conducting such events to celebrate festivals. Last year we had held a concert in Manali and this year too we did a New Year bash in Noida. New Year is one of the biggest celebrations in India where the whole coun-

try celebrates and enjoys. Such concerts are really a huge crowd puller and Meet Brothers who performed in this event have given such memorable hits in Bollywood and today also, they were able to charm the crowd. We expect every one attended this event to start the year on a high note and with loads of happiness.Wishing everyone a very Happy & Prosperous New Year”. n

Godrej Security Solutions Launches Video Door Phone

odrej Security Solutions (GSS announced the launch of its new video door phone (VDP)Seethru 7. This innovative product utilises your landline to call your mobile phone in case you want to talk to your visitor when you are not at home. This 7” screen VDP has a TV out option, can support multiple outdoor units, indoor monitors, CCTV cameras and contains a removable SD card for recording images/video. GSS has a long standing history of introducing innovation using consumer market insights. In the development of Seethru 7, the needs of the target audience were identified - as the need to be able to communicate with people who visited when no one was home to shield the elderly and children from unknown visitors. Additional insights were identified, such as, ability to answer the VDP without having to walk to the indoor unit at the door, ability

OBSERVER DAWN January 2015

to retrieve the stored images etc. The features of SeeThru7 has been a result of understanding these consumer needs giving a “control” to the home owner when away. On the occasion of the launch, Mr Mehernosh B. Pithawalla, Head-Marketing, Godrej Security Solutions commented, “We are proud to launch such evolving products such as the current Seethru 7 video Door Phone which epitomizes Godrej Security Solution’s vision to provide innovative solutions for home security. This product not only ensures home safety but also provides additional benefits for the customer when he is not at home.” Seethru 7 utilises the already existing landline of the user which allows him to talk to visitors even when he away. The user only has to switch on the ‘follow me’ mode which will prompt the VDP to dial in a pre-fed telephone number whenever it is buzzed. Conventional VDP’s generally just click a photograph and store them for reference purpose. n

Desk News

Vardhman Launches Vedic Suits in Greater Noida

edic Suits is a place where luxury even meets your infinitesimal demands. It is located amidst the nature and facilities which work in perfect synchronization to make life worth living. Looking at the present trends of mammoth developments in Greater Noida, Vardhman Estate and Developer (P) Ltd has launched its much awaited project Vedic Suits in this well panned city. A luxury fully furnished studio apartment project, where you can step in and witness the world of luxury. Vardhman Vedic Suites is an address that’s the throb of activity yet it’s a space you call your own. Well connected and luminously located at Plot No 12, Knowledge part 3, near Pari Chowk, Greater Noida. Its modishness décor will leave you spell bound. You will not only enjoy the benefits of a beautiful location but, you can also take pleasure of several leisure facilities available

within the project. Unlike a 5 star hotel one need to just enter into the world of luxury and rest of the things are taken care of. Vardhman Vedic Suits in its true sense will suit styles, status and sprit of independent individual, young couple, business, pleasure traveler or a company to lodge its executive. Dreams and aspiration meets in Vedic Suits. Mr. Vivek Gupta, Chairman of Vardhman expressed the concept of Vedic Suite: “The changing lifestyle of metros make us to create something new for the buyer/investor to appeal, their investment should be beneficial and something unique which can fulfill their needs also. In KP III there are many commercial project even we have ITES project Alpha Square, karma Spaces which is almost ready to deliver, we feel there is surely an opportunity for a ready to move living space which offers all the modern facilities to the buyers so we have launched Vedic Suits which is a fully furnished studio apartment project spread over.” n

RE/MAX India Expands its Footprints in Rajasthan & West Bengal

E/MAX India, the country master franchise of RE/MAX in India has witnessed phenomenal growth this year by awarding regional master franchises in the regions of Rajasthan & West Bengal. With the new Regional Owners on board, RE/MAX India is confident of building an extensive network of Real Estate professionals in the respective regions. By extending the brands presence in these regions, RE/MAX India wants to add a new dimension to the Real Estate brokerage business by bringing together entrepreneurs offering not only high quality

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Real Estate services but also connecting Rajasthan & West Bengal to a global network of 7000 offices spread over 98 countries across the world and 100 offices in about 30 cities in India. Mr. Samir Chopra, Chairman, RE/MAX India, says, “RE/MAX is a tested system & opening of 7 regional offices under RE/MAX India this year, including the regions of Rajasthan & West Bengal clearly reflects on the demand as well as acceptance of the business model of RE/MAX in India. By associating with RE/MAX, we look forward to getting associated with budding entrepreneurs at different levels & help them in bringing their Real Estate business to a new level of success. n

Desk News

Exclusive Project Launch on a Property Portal in India

or the first time in India, an innovative developer is embracing the online medium and exclusively launching their project online. Putting aside conventional media – Salarpuria Sattva Group has chosen to launch its residential project online in an exclusive alliance with Magicbricks.com. The launch is the most critical phase for the ultimate success of any new project – so it is with Cadenza - the Salarpuria Sattva Group (SSG) premium residential project situated in the heart of the Indian IT Industry – Bangalore. To ensure the success of this pioneering effort, SSG has partnered with India’s No.1 Property Portal – Magicbricks.com (MB). “We have observed that the reach of online in general, and magicbricks.com in particular, is more effective than that of traditional media. We believe MB’s reach and presence on online, mobile and its market leadership will make this launch a grand success.” says Mr. Bijay Agarwal, CMD, Salarpuria Sattva Group. The ability to effectively focus on a target audience, communcate directly with buyers; receive their feedback, requests and queries instantly, provide an effective website interface and provide interactive multimedia rich content are some of the key reasons that SSG chose to partner with MB for this innovative online launch – that is exclusive on Magicbricks.com for 3 weeks. Magicbricks market reputation has established its reliability as an effective business partner for innovative developers such as the Salarpuria Sattva Group.

Bonanza for the End-Users by Ace Group

ce Group has launched a distinctive financial scheme for the customers interested in their residential projects Ace City, Ace Platinum and Ace Aspire in Greater Noida West and Greater Noida. Under this scheme, the buyers would be able to book their dream homes with the payment of only 10% booking amount and there will be no EMI’s till possession.This scheme has been offered to attract the end users who want to own their dream abode in Delhi NCR and also have limited finances. Mr. Ajay Kumar, CMD Ace Group says that we at Ace Group aims to deliver homes in true sense to the true home seekers and thus look forward to ensure the easy payment schemes for such end – users in order to give them ease and comfort with their mode of payments. The company has till date has announced various affordable residential housing in Delhi NCR. ACE Group has built its reputation and a loyal customer base through numerous world class residential addresses. They have never compromised with the quality, standards and finishes par excellence in modern specifications, timely completion and focused customer-centric, which has been of industry's best standards. n

Magicbricks.com would not just be the exclusive partner to launch this project, but will also collaborate with Salarpuria Sattva for its online promotion campaign. . n

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Desk News

Tata Housing Exclusively Unveils ‘The Cascades’

ata Housing Development Company participated in the Google’s Great Online Shopping Festival (GOSF), held from 10th – 12th December, 2014 by launching an exclusive ultraluxury project, ‘The Cascades’ and ensuring appreciation of property prices at other projects. Located on the only hill of Bangalore, ‘The Cascades’ is an exclusive row house project designed to promote wholesome wellness through well-lit, airy projects set amidst lush greenery. The limited period offer will allow consumers across the world to book their dream abodes by paying a booking amount of 50, 000 only for all projects and enjoy an opportunity to get an instant appreciation of upto 15%. Apart from the launch of cascades, Tata

Housing has a range of projects including Ariana (Orissa), Primanti(Gurgaon), The Promont (Bengaluru), Amantra (Mumbai), Gateway Towers (Mumbai), Avenida (Kolkata) and Myst (Kasauli) will offer schemes and will mark instant appreciation of prices. Commenting on the occasion, Mr. Brotin Banerjee, MD & CEO, Tata Housing Development Company said, “We received a phenomenal response through our pioneering initiative of online sales of real Estate through our partnership with google last year. Online home buying is an emerging platform and this year we are offering our consumers properties ranging from affordable to the ultra-luxury segment. As a leading real estate developer we are focusing on creating newer and innovative ways to reach out to this new segment of online consumers.” n

Casa Grande Private Limited Launches ‘Cherry Pick’ asa Grande Pvt. Ltd., Chennai’s largest villa developer recently launched Casa Grande ‘Cherry Pick’. Offering lifestyle apartments with more than 40 amenities the property is located at Perumbakkam, 10 minutes from Sholinganalur. Casa Grande Cherry pick is attractively priced at Rs.3390/- per sft significantly lower by more than Rs.500/per sft compared to other projects in the vicinity giving customers a saving and advantage of 7 – 10 Lakhs. The project is a great value buy for customers with apartments starting from 22 Lakhs onwards. The project encompasses 420 apartments over an expanse of 7.2 acres. The project constitutes a wide choice of apartments starting from 1bhk to 3.5bhk from 650 sft to 1850 sft. The lifestyle amenities include Club house, Swimming pool, Gym and 40 other amenities with lush landscaping across all streets. Speaking at the project launch, Mr. Arun Kumar, Founder and Managing Director, Casa Grande Private Limited said, “Casa Grande Cherry pick will be a fantastic buy for customers. The primary reason for anyone to buy this project would be the price which we believe is the most attractive in the market. This would also be a great community to live-in with abundant landscape and amenities as a feature.” n

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Desk News

Portal for Fast Movement of Cargo

r. Nitin Gadkari, Union Minister for Road Transport & Highways and Shipping and Mr. Piyush Goyal, Minister of State (Independent Charge) for New & Renewable Energy, Power and Coal were present at the inauguration of the web portal for Online Approval of movement of Over Dimensional & Over Weight Cargo by Modular Hydraulic Trailer hosted by the Ministry of Road Transport and Highways & Hydraulic Trailer Owners Association (HTOA) While inaugurating the web portal, Gadkari said, “The government will strive to amend the 1988 Motor Vehicles Act in Budget session of Parliament to make Indian roads safer and efficient. A total of 108 e-toll stations are operational across the country. By next year, a total of 350 e-tolls will facilitate easy movement of passengers and goods. Fast movement of over-dimensional and over-weight cargo across the country will contribute to Prime Minister Narendra Modi’s Make in India initiative. New technologies, innovations and transparent procedures in the transport sector are a must for the Make in India project to succeed.” Goyal stated, “The Modi government is taking concrete steps towards ease of doing business while creating a level playing field for all and eliminating corruption. Delays in movement

of power equipment can have national ramifications. Rapid industrialization is needed in India for creating new employment opportunities and overall prosperity.” n

fter receiving the occupation certificate from the authorities, DLF commences the possession of 664 residential plots in its premium integrated township ‘Hyde Park Estate’ in New Chandigarh. Hyde Park is an approx 225 acre township, and approx 1400 families have chosen their residential or commercial property here. The township development is complete with respect to all external services. The infrastructure work, including roads, smart street lighting, manicured parks, water supply, drainage and underground electrical cables along with special features such as water and sewage treatment plants and rain water harvesting are complete. The approach road, 190 feet in width connecting Hyde Park Estate New Chandigarh with Madhya Marg, Chandigarh is also operational. DLF has also signed up

“Manav Mangal World School” to open its campus at Hyde Park Estate. “These are exciting times for us”, said Mr. Mohit Gujral, Chairman & MD- DLF Universal Ltd. “Chandigarh-tricity has always been a high priority region for DLF and the delivery of Hyde Park Estate is the evidence of our commitment to the region. The township looks spectacular and, we have tried to ensure that the quality standards live upto our customer expectations.” Besides, conforming to the low density population norms, ample greenery and open spaces, the township also offers varied products for varied customer needs. In the residential segment, options include plots, Independent floors and expandable bungalows. The commercial segment has booths and SCOs. Some of the top corporate houses have also chosen Hyde Park for their staff housing needs. The construction of floors is being done by Shapoorji Pallonji Pvt Ltd. n

DLF Commences Possession at Hyde Park Estate

OBSERVER DAWN January 2015

Vatika Group and GIC Entered Into a Joint Venture

atika Group and GIC, Singapore’s sovereign wealth fund, through its affiliate, have entered into a joint venture to develop two residential projects on Dwarka Expressway, Gurgaon. The projects will meet the demand for high quality residential units and will be developed by Vatika. They are expected to be completed by financial year 2018-19 and are expected to generate revenues in excess of Rs. 2,000 Cr. The projects, with development potential at over 2.3 million square feet, are located within five kilometers of Vatika Express City (120 hectares) and Vatika India Next (250 hectares), integrated townships where Vatika is already providing extensive social infrastructure including schools, hospitals, retail, parks and recreational spaces. According to Gautam Bhalla, MD, Vatika Group, "The Group is happy to partner with GIC, a leading global investment organization with a strong vision and values that are in line with Vatika’s. We see this as a good start to a rewarding long-term partnership.” Mr. Loh Wai Keong, Co-Head Asia, GIC Real Estate, “GIC is confident of India's growth potential over the long term. Vatika Group is one of the leading developers in Gurgaon and we are pleased to establish this partnership. We have nurtured long-term partnerships with developers across the

globe successfully and hope that we will leverage each other's strengths to grow this partnership steadily in the coming years."n

GROHE: At Top-of-The-Year Ranking

nother GROHE apprentice named in nationwide top-of-the-year ranking of the country’s best apprentices while GROHE continues to support professional skills training for severely impoverished youths in emerging countries The provision of professional skills training remains a top priority at GROHE. The faucet manufacturer’s commitment to skills training benefits not only its apprentices in Germany but also makes a great difference to economically and socially disadvantaged youths in emerging countries. While GROHE continues to build and develop skills at its own factories and offices, the company also invests in training programmes in

India and the Philippines where youths from impoverished backgrounds are offered an opportunity to make a better life for themselves. GROHE has an excellent track record in running apprenticeship programmes. Since 2007, no fewer than four GROHE apprentices trained at the Hemer and Lahr factories made it onto the list of the nationwide honours. “Professional training plays a decisive role for a person’s entire career,” says Michael Mager, member of the Management Board at Grohe AG. “This is why we are committed to opening up the very best opportunities for our apprentices and trainees. At this early stage of their working lives, we want to equip them with excellent skills to master their future tasks and ensure that they enjoy their work and the success they achieve.” n

January 2015 OBSERVER DAWN

Smart City: Outlook

The Dream of a

New India

The success of such a city depends on inhabitants, entrepreneurs, visitors and their participation in energy saving and accomplishment of new technologies.

OBSERVER DAWN January 2015

ndia is a country of rich physical and human resources. It has flourishing green fields and green farms, high rising mountains which hover over our cities, long elegant rivers which keep the nations watered and plains, never-ending natural resources etc. In short, it can be said that that a mini world resides in India. The rise in population, unconventional use or wastage of natural resources and rising corruption has led in many of our countrymen losing trust in the nation’s true prospective. Our countrymen’s vision of an urbanized India is still limited to the hopes of 24 hour running water, continuous power supply and good housing. After nearly 7 decades of an autonomous government rule, the dreams of Indian should have tangled bullet trains, rising economy and a sophisticated technology. But these things still remain a daydream for a common Indian.

Why we need a Smart City

The enticement of more job opportunities and better service has always been a main cause for many of the people reposing in rural areas to travel to cities. As estimated, this has raised the urban population in our country on a vast scale. As per the study imparted by McKinsey Global Institute, by the year 2030, 70% of jobs and service opportunities will be in the cities. The study also finds that Indian cities will fabricate 70% of the nation’s GDP and will raise the countries per capita income fourfold.

Improved urban population will mean more power spending and complexness in city management. It means that the government will face tough job in dealing with everything from bylaw and order, health and security; to power, waste and transportation management. All these things make it clear that India should gear up itself to administer this rapid rise in urban population creatively and make certain that the affect of this trend is utilized for the nation’s richness and growth.

Factors necessary for Smart Cities:

The idea of smart cities can be more easily interpreted by some cautionary smart cities around the world. Copenhagen (Denmark), Amsterdam (Netherland), Vienna (Austria), Barcelona (Spain), Paris (France), London (England), Berlin (Germany) etc •

Improving or protecting the environment is one of the main aims of a smart city. Say for example Copenhagen has one of the smallest carbon footprints /capita in the world (less than two tons / capita).

• • •

Traffic reduction and managing is also a fundamental element in a smart city. In Amsterdam, 67% of all trips are done by cycling or walking.

Paris is also famous for their grand and broadly used bikesharing network which has led to a 5% reduction in vehicle congestion. Use of solar energy for the 100 % power generation is also an important factor for a smart city.

Role of Technology

The idea of a smart city is a moderately new one. Cities in the urbanized world are developing technology master plans and then using these plans to develop a citywide authority and control network that supervises and optimizes the delivery of services like power, water, traffic and healthcare. The fundamental principle of a smart city is making infrastructure network and release of services more capable across, logistics, water supply, telecommunication and gas supply.

Indian cities, in a small way, are using sophisticated technology within sections to solve problems. These include traffic control, by means of sensors to monitor water leaks, chasing garbage trucks through GPS to guarantee they put their waste at chosen landfills, energy management in smart buildings and complexes. Also under progress are smart townships that are prohibited centrally, and entire cities along the Delhi-Mumbai Industrial Corridor. Typically in a smart city, sensors will allow real-time inputs to a control centre on fresh water, energy, civic transport, communal safety, edification, and healthcare. Intelligent communication tools will let executives manage and react to emergencies quickly as well as provide residents with steady real-time inputs.

Role of M2M (Machine to Machine) Technology in Developing Smart City:

One of the major enablers of smart technologies in urban landscapes is machine to-machine technology. Smart meters are smart because they can distribute information about resource use over a communication network which machine-to-machine technology performs commendably.

In fact, telecommunications service suppliers can help make cities smarter by sustaining machine-to-machine (M2M) and machine-to-machine- to– human (M2M2H) communications. Smart cities require widespread open platforms and an information and communication technology infrastructure that can support high speed Internet access across wireline and wireless networks.

January 2015 OBSERVER DAWN

Outlook Such an infrastructure will not only facilitate machine-tomachine technologies but also help enabling higher services and applications such as telecommunication coordination, inner-city traffic management, energy management, and security networks.

The Indian approach for Smart Cities:

The cities with constant or projected smart cities include Kochi, Ahmedabad, Aurangabad, Ponneri in Tamil Nadu etc. Many of these cities will comprise special investing areas or special economic zones with customized policy and tax structures to make it eye-catching for foreign investment. With numerous reviewed laws and rules for the real estate sector in India, the above strategy of the administration will also prove to be a huge advantage for the real estate developers as well as the builders. Because, the construction of smart cities will need the capability of builders and more significantly, the prudence of real estate developers.

There are many ways to make housing, commercial and public spaces sustainable by ways of applied science, but an elevated proportion of the total energy consumption is still in the hands of end users and their doings. For instance, the success of such a city depends on inhabitants, entrepreneurs, visitors and their participation in energy saving and accomplishment of new technologies.

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However, it should also be recalled that every smart city has two more main facilitators apart from the main enabler which is technology. The other two significant enablers are: the inhabitants of the city and the management. Even with all the technology a smart city gets, itâ&#x20AC;&#x2122;s the people and the management that are at the centre of the smart city.

So, a smart city is built by these three facilitators on the following six columns: Smart governance, Smart populace, Smart mobility and move, Smart livelihood and housing, Smart environment and smart economy. If we want smart cities, we should make sure that all the six pillars are significant enough to assume the weight of the stargazed smart city.

City leaders all over the world have bosomed the smart city perception with ebullience. They are acclaiming groundbreaking projects and putting out a vision for how cities can use technology to meet sustainability goals, enhance local economies, and ameliorate services. This promise to changing how cities function is driving the constant interest in smart cities. Moreover, the smart city model is evolving as more cities set out their own schedule and a growing range of suppliers deliver solutions to meet their rising needs. n

January 2015 OBSERVER DAWN

Chennai: Investment

Time to Invest is Now

Home-buyers Need not Hesitate to Invest in their Dream Home.

- By

Mr. R. Ramachanthran, CMD, Omshakthy Agencies Pvt. Ltd

eal Estate sector in Chennai was poised towards a positive direction slowly coming out of the economic slowdown in 2013. When things were starting to be right in 2014, a residential apartment near Porur came crashing down. This incident has to a reasonable extent hit the sentiments of buyers and developers which in turn is impacting the business of real estate industry at present.

Wake-up Call

Though the Moulivakkam incident is one off, it acted as a wakeup call to the real estate industry. The incident shocked everyone and the regulatory authorities are exercising caution while approving the projects these days. Pre construction and post construction approvals are sanctioned only after the thorough check of the building plan, quality of materials used for construction, progress of the project going according to the plan, etc. The present situation should not deter the new home buyers to postpone their plan of buying a new home or stop investing in their dream house. Stringent approval norms from the regulatory authorities these days have ultimately enhanced the

OBSERVER DAWN January 2015

safety for the buyers. The buyer needs to confirm with his/her builder if all the necessary verifications have been completed by the regulatory authorities before investing. This one off incident should not stop the progress of the people as well as the real estate industry.

Itâ&#x20AC;&#x2122;s Right Time

Union budget 2014 is in favour of the people planning to invest in their dream home. Increasing the minimum taxable limit from Rs. 2 lakhs to Rs. 2.5 lakhs and enhancing the benefits in Section 80C from Rs. 1 lakh to Rs. 1.5 lakhs and raising the exemption limit on interest payment on housing loans from Rs. 1.5 lakhs to Rs. 2 lakhs per annum will benefit the people, as the burden of paying the tax has come down leaving more money in hand. Chennai as a real estate market has always been a steady market in terms of residential property prices unlike other cities such as Delhi and Mumbai where the prices are always volatile. This has consistently worked to the benefit of the Chennai market keeping the rates in a standard and affordable manner. Taking this into account, the benefit the people from Chennai have got from the budget announcement can be used to fulfill the dream of purchasing their own house. So for Chennaites, the right time to invest is now.

Places to Invest in Chennai

Residential property prices in Chennai have grown steadily year on year. The rate of appreciation however differs according to locations and market segments. Chennai offers options across the luxury, premium and affordable housing categories in and around the areas of OMR, ECR, GST Road and Poonamallee. To meet the demand from majority of the first-time home buyers, real estate developers are expanding the scope of many areas in Chennai and turning them into real estate hot spots. It is the right time now to invest in areas like Kundrathur, Perumbakkam, Medavakkam, Kovillambakkam, Vannagaram, Mangadu, Ambattur, Avadi, Chembrambakkam and Oragadam, Padappai etc. It is especially in these locations there will be a significant demand after the favourable Budget 2014 announcements. Residential supply will also improve noticeably to cater to this demand. By relaxing the minimum area prescribed for getting FDI from 50,000 sq. metres to 20,000 sq. metres and the minimum capitalization from $10 million to $5 million, the budget has ensured that mid-sized developers have access to funding and FDI participation which will enhance liquidity.There will be acceleration in the affordable housing segment in Chennai as the projects committing at least 30% of their total project costs for affordable housing will now be exempted from minimum built-up area and capitalisation requirements.

Infrastructure Development in Chennai

Infrastructure development in Chennai is turning the City to be an exciting investment destination. Ongoing infrastructure

projects such as the Metro, Monorail,OMR-ECR Link Road and the recently opened Outer Ring Road (ORR) are set to change the face of Chennai. As the above-mentioned projects are getting developed, the real estate prices in the adjoining localities of those projects are soaring high. It is advisable for the new home buyer to judiciously choose the location and invest in a property now before the prices take a overdrive when these projects are nearing completion. Thus, while the Moulivakkam incident has certainly hit the sentiments of the prospective residential buyers in Chennai, strict government norms ensuring better safety, recent budget announcements favouring the buyer and the real estate developers and infrastructure development in Chennai provide a good prospect for the buyer to invest in a new home in the City. Home buyers need not hesitate to invest in his/her dream home as the right time to invest is now. n

January 2015 OBSERVER DAWN

Property

Contractor Be Careful,

Before Hiring a

How one can select a contractor to handle renovation or other work of a house or group housing society. By Vivek Shukla

re you planning to hire a contractor who can build your home or apartment? Are you looking for a contractor who can renovate your abode? While there are many honest contractors out there, but there are also quite a few that might be looking to rip you off. If you’re about to undertake a big renovation project, it is important for you to look out for an honest contractor. Remember, a bad contractor can prove very costly for you. It is important for you that before sealing a deal with a contractor, both you and contractor signed an agreement. “It is my advice to all of you to avoid a contractor that does business with a handshake agreement or that gives you a contract that’s overly openended and fails to set deadlines. Home renovations are complex things, and every stage of the renovation should be documented in the contract,” says Mr. Sanjay Khanna, Director of Kailash Nath Projects Pvt. Ltd. Agreed that there can be some delays in any major renovation project. The reasons can vary. Like materials might not come in on time, or bad weather might prolong the project. Experts say that a good contractor should know how long certain stages of the job will take and set deadlines that he can meet. The agreement you sign should also specify what kind of materials the contractor will use. You want to protect yourself against a contractor that promises you the moon and then cuts cost with bargain-basement materials. It is a normal practise that most contractors won’t start a job without getting part of the payment upfront. After all, there are materials to buy and workers to hire. “If a contractor that wants the entire sum up front should set off alarm bells. Once you fork over the cash for a project, a contractor might lose the moti-

OBSERVER DAWN January 2015

vation to finish the job quickly and efficiently,” says Mr. Alimuddin Rafi Ahmad, MD of ILD group. In realty sector, a down payment of around 15 to 25 percent is common, and an initial payment should never exceed a third of the total cost of the project. You should remember this fact before you hire a contractor. Ajay Soni, an East Delhi-based businessman, narrated his bad experience with contractor. “I paid him around 20 per cent of the total renovation work. However, after couple of weeks, he started asking for more. Once I paid even that amount, he starting asking for total amount. I know it was an ordeal to work with him. It is important that you finalise money matters before you sign him.” It is also observed that some contractors will ask to be paid in cash, which a sure sign that there is something shady. Without a check or credit card statement to back you up, it becomes your word versus the contractor’s in any payment dispute. Experts say that even if a contractor offers you a cheaper rate if you pay in cash, don’t take the deal. While contractor gives sub-contracts and it is normal thing. For instance, if there’s a particularly tricky wiring job, it’s a good idea to call in an expert electrician. “I feel that if a contractor who is overly reliant on subcontractors, then it is a matter of concern for you. If a contractor is farming most of the work out to subcontractors, then he’s acting more like an unnecessary middleman rather than a essential part of the renovation process, feels Nikhil Jain, CEO of Ramprastha Developers. Experts also recommend that you should ask for some references from the contractor before hiring him. P.L. Sharma, who is an office bearer of a group housing society in East Delhi, says that before they hand over renovation work of society to a

contractor couple of months back, they have asked him to give them some references. Once he gave reference to us, we awarded our project to him. “Remember if a contractor refuses to give you references, it’s a sure sign that something is amiss. Every contractor should have a few pleased customers that can vouch for past jobs. If a contractor says he’s just starting out and doesn’t have references yet, take a pass and find someone with more experience,” says Sanjay Khanna. If a contractor doesn’t have an office with an actual address, don’t hire him to work on your home. Some contractors will tell you that they are so busy; they mostly just work from their trucks and leave you with nothing more than a cellphone number. But if you hire a contractor like this, you’ll have no way to track the contractor down if he takes your money and runs. It is always advisable for you to hire a contractor who has many years of experience. Petty and inexperienced contractors might offer you good rates on a renovation, but they can leave you exposed if something goes wrong. If an injury occurs during the job, or the works cause damage to a neighbour’s home, you may face tough time. Last but not the least; make sure to see a contractor’s paperwork before you sign a contract. n

January 2015 OBSERVER DAWN

The Art of Making Environics

Occupants

Buildings Healthy for its The energy correction work done by Environics at various construction sites have also led to marked improvement, leading to faster progress in work, lower accident rates and an overall general feeling of well-being. ave you ever wondered why you feel uncomfortable when you enter a particular room in your house or office? Why you don’t get good sleep in a particular room? Why do employees who are made to sit in a particular cabin or work station in the office seem to leave the organization more frequently or start developing health conditions after a period of time? A study carried out on 600 office workers in the USA showed that 20% of the employees experience symptoms of Sick Building Syndrome (SBS), causing headaches, tension between staff, loss of concentration, depression, stress and fatigue. Other estimates reported that up to 30% of new and refurbished buildings throughout the world may be affected by this syndrome (WHO 1983 and 1986). It was found that SBS can also cause a high rate of absenteeism, increase staff turnover and lowers morale of people. Most of this can be attributed to the presence of negative radiations in the buildings. These negative radiations could be due to a phenomenon known as “Geopathic Stress” and are created when the natural flow of energies in the environment is disturbed. Bio-electromagnetic radiations emanating from some of the earth’s natural sources (Ex - Magnetic grid lines, underground water streams, etc) are some of the radiations that are classified as “Geopathic Stress”. Energies and their flows are also governed by phenomena like the shape of the plot and the structure, relative shapes of the land, floor and roof of the structure, slope of the land, types of materials used in construction, location and size of doors and windows and various other aspects. Other than Geopathic Stresses, radiations emanating from some building materials (Ex - Granite), and from Electronic Gadgets (Ex – Mobile Phones, Computers, Mobile Transmission Towers, Server Rooms, etc) are also harmful for the health of human beings. The radiations emitted from the earth’s natural sources (Geopathic Stress) are 200 times stronger than the average energy level of the human body and also are negative in nature, and

OBSERVER DAWN January 2015

hence, these radiations start affecting the health of an individual if they are subjected to these radiations over a long period of time. If one is sleeping on a bed in their house or working in a

particular cabin in their office, which is cut by a magnetic grid line or an underground water stream, then their health is impacted negatively. The extent of damage will depend on the immunity level of the person. In many cases, exposure to Geopathic stresses over a long period of time (a few years) has led to serious diseases such as Cancer. Extensive research in West Germany, Austria, U.K. and France since the 1940’s on more than 100,000 people has shown that they cause blood pressure, stress, skin diseases and many more diseases. Also, almost 100% correlation was found between Geopathic Stress and Cancer. In today’s modern age of technology and communication, we are surrounded by electronic gadgets around us. A mobile phone and computer has become an accessory for every person. In homes and offices, we are also surrounded by Wi-Fi routers and server rooms. Mobile Transmission Towers are installed on the top of buildings and the number of such towers is increasing day by day. All these devices emit electromagnetic radiations which are very harmful for health and increase the stress levels in the body. These facts may scare a person initially as they may wonder as to how they will know whether the place where they live or work is free of any geopathic radiations, or how they can avoid using mobile phones and computers for long hours if their work demands such high usage. However, with advances in technology and research, solutions are also being found to problems. A case study of Infozone, an IT Park built in Electronic City,

airman, ddar, Ch o P v a n s Mr. Pra Environic Syenergy Bangalore can be taken. It was a beautiful building with more than 1 lac. Sq.ft. area with all modern amenities and facilities for IT corporate. However, it was lying vacant for more than 1.5 years after completion. Prospective clients used to visit the building to buy or lease the space, but none of them signed any deals. One of the common reasons that they used to give was that they didn’t feel too good when they entered that building. When we were contacted and given the assignment to do the energy corrections in that building, we found that the entire building had very bad energies due to various sources. We carried out our energy correction work in the entire building and on all the floors. The assignment took about 3 days to complete, after which, we would like to quote Ms. Murugan of Infozone – “Post energy correction whoever came to see the same building felt very comfortable and within 4 months the entire building got booked”. Some of the customers who had visited the building earlier also felt a drastic change in the environment and ended up taking office space in this building. The energy correction work done by Environics at various construction sites have also led to marked improvement, leading to faster progress in work, lower accident rates and an overall general feeling of well-being which makes the occupants feel more relaxed and less stressed. Less stress leads to increase in work output for the individual. More and more real estate developers, PSU's and Private sector companies are opting for energy corrections at their establishments. Solutions developed by Environics have already implemented in over 1,300 establishments (homes, offices, plants and factories, etc) in India since 2005 and have benefitted over 120,000 people till date. People who have implemented these solutions in their buildings and establishments have reported better health and productivity. International bodies and governments are now studying the data presented by many scientists across the globe over the last 80 years and are making policies which require architects and developers to conduct geopathic surveys in a site before construction and plan the developments in a better manner so that maximum care is taken in avoiding geopathic stress zones while planning the layouts and during construction. Every new and existing Building can be converted into a "Healthy Building" and benefit the health of its occupants. The investment required in making any building healthy is less than one-tenth the cost of painting it. n

January 2015 OBSERVER DAWN

Report

“Indian Realty in

Resurgent Mood” In New Delhi, commercial properties were already witnessing a rebound on the back of a rise in leasing activities, post the 2014 national elections. –A ULI-PwC Report

OBSERVER DAWN January 2015

entiment around Indian real estate among both domestic and international investors has improved in recent times, following the election of a new government and also on account of an upturn in consumer demand, says the Emerging Trends in Real Estate® Asia Pacific 2015 report, published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). Consequently, the rankings of Mumbai, Delhi and Bangalore have improved significantly from that of last year in the list of investment destinations. This year, Mumbai occupies the 11th position (it was ranked 23rd in 2013), while Delhi and Bangalore have taken up the 14th and 17th positions respectively. In 2013, Delhi was placed at 21st position while Bangalore was at 20th position. The positive sentiment can be gauged by the fact that global real estate funds focused on India are seeking to raise $6 billion in new capital, on top of $1.6 billion raised in the first seven months of 2014; most of this is aimed at residential projects. In addition, there has been a significant rise in interest from large sovereign and foreign institutional players over the course of 2014, the report highlighted. Gautam Mehra, Partner, PwC India, said, “Mumbai has climbed the most in ranking among the cities in the survey, from 23rd position to 11th, with the other Indian cities, New Delhi and Bangalore, also seeing a jump in the ranking, driven by the election of the new government. There is certainly a positive vibe complemented by the expectation of an improved economy and a more transparent environment, keeping interest levels up among investors. In this backdrop, the position of excess liquidity across various jurisdictions which is pointed towards real estate augurs well for Indian markets. Additionally, the expected developments around creation of a series of “smart cities” focused on large scale manufacturing, and the roll out of REITs, if implemented well, are expected to further add to the momentum. The outcome of large volumes in e-commerce is likely to translate in demand for large scale logistics and warehousing space,” he added. In its city-specific observations, the report said, prices of commercial properties in Mumbai have remained stable, while rentals were showing signs of inching up as local businesses showed interests in rolling out expansion plans. Since occupancy (currently standing at around 80 per cent) rates were expected to rise, prices/rents were likely to increase too, especially for high-quality and well-located premises. Meanwhile in New Delhi, commercial properties were already witnessing a rebound on the back of a rise in leasing activities, post the 2014 national elections. Bangalore, on the other hand, saw rents and capital values of business park facilities increasing steadily over the last few years. Some areas, such as the corridor along the Outer Ring Road were attracting attention among investors, the report added. Overall in Asia, real estate markets are expected to remain resilient despite weakening economic fundamentals throughout 2015, as capital continues to flow into the industry from a variety of investment sources, both domestic and international. Japan remains a favored country for real estate activity, with Tokyo and Osaka ranked first and third, respectively, in terms of investment and development prospects for next year.

January 2015 OBSERVER DAWN

Report “Currently, Asia’s real estate markets are beset by an abundance of riches. Whether derived from new sources of institutional capital, or from almost six years of global central bank easing, a seemingly endless stream of money is now pointed at real estate assets across virtually all jurisdictions and asset classes. This is pushing up prices and further compressing yields,” said ULI North Asia Chairman Raymond Chow, Executive Director, Hongkong Land Limited in Hong Kong. “As a result, we are seeing fewer transactions, a growing shortage of investment-grade properties, a search for alternatives to core products, and a general pullback from assets in secondary locations. We can expect this to continue over the next several months.” The Emerging Trends report provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on the opinions of more than 385 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

The Top Five Investment Markets for 2015: •

•

Tokyo (ranked first for investment and development) – Tokyo’s popularity is attributed to the government’s massive economic stimulus plan that has catalyzed property purchases in anticipation of rapidly rising prices. While ongoing credit easing is allowing “plenty of room for markets to run,” the report points out that Tokyo’s attraction “lies not only in its prospects for asset price inflation but also in its status as a gateway city featuring…low levels of perceived risk” Jakarta (ranked second for investment and development) - The city’s appeal is predicated on Indonesia’s booming economy as well as strong asset price growth over several years. In general, real estate prices remain low compared to other large Asian cities. One issue of concern: The market remains opaque, with interviewees expressing concern about the land title process and the court system Osaka (ranked third for investment, fourth for development) – Osaka is benefiting from the fierce competition for assets in Tokyo, with many investors being pushed into Japan’s secondary markets. Much of its product oversupply – particularly in the office sector – was absorbed over the past year, and vacancies are continuing to decline Sydney (fourth for investment, third for development) – High yields and a mature economy are drawing international investors to Sydney, which, combined with substantial participation from Australia’s pension and wholesale funds, is creating tough competition for properties. The city is experiencing strong interest in development, specifically in conversions of older office stock into residential units Melbourne (fifth in investment, fifth for development) – Melbourne is perceived as offering a similar environment to Sydney. There is a significant emphasis on development, an abundance on capital seeking investments, and attractive yields (despite some compression)

OBSERVER DAWN January 2015

Across the Asia-Pacific region, the industrial/logistics sector is by far the most popular property type for investment prospects for the coming year. According to the report, the appeal of this sector reflects “chronic shortages of logistics capacity in most markets and the relatively higher yields still offered by logistics plays.” The hotel sector also received high ratings, due to a boom in tourism in many markets. The office sector continues to be regarded as a safe investment; but enthusiasm for the housing and retail sectors has waned.

Overall Findings from the Report Include: •

.•

Investors are opting not to buy. Transaction volumes across Asia fell 24 percent year-over-year in the third quarter of 2014, compared with significant gains in the United States and Europe. Although much of the decline is due to fewer land sales in China, transactions have dropped in other Asian markets with the notable exception of Australia. Product scarcity is prevalent. The structural shortage

•

of investment-grade assets across the region is compounded by growing volumes of capital held by local institutions and the lack of incentive to sell, given that relatively little commercial real estate is held by investment funds that tend to recycle their assets into the market after a few years. Investors seek other asset classes. With core product both expensive and hard to source, investors are looking for alternative strategies. This includes value-add deals and, in general, more complicated asset management situations, and finding specific types of assets that may have been left behind by the market. Investors are wary of secondary locations and assets. Given the lack of trust in the current market, most investors prefer to remain in gateway cities, where they have more confidence in the resilience of pricing and liquidity. This applies especially in Australia. In China, many buyers are avoiding secondary locations because of a spate of overbuilding. Japan is the exception, with competition from local real estate investment trusts (REITs) forcing investors

•

to branch out to cities other than Tokyo. Emerging markets are losing some appeal. Fast-growing markets such as the Philippines and Indonesia remain on investors’ radars, but the attraction has dimmed somewhat this year as investors become cautious over the potential for capital outflows in the wake of upcoming U.S. interest rate hikes. Investors are increasingly willing to adopt development risk. Forward-funded and build-to-core strategies are popular, especially in Australia. In Japan, however, development is less attractive given increased construction costs. Currently, strong asset prices are in marked contrast with weak rentals. Occupational markets are weak in many markets, especially in Australia and Japan. Many investors project that the contrast between prices and rentals will shift, with returns based more on stronger rental fundamentals than soaring prices. n

January 2015 OBSERVER DAWN

Cover Story

e t a t s Real E

: 5 1 0 2 k o o Outl righter Phase

B a r o f g Lookin

anticipating I B R e h t d n a , up gradually g very favourable for both g in k ic p y it ic activ n is turnin io t a u it s With econom , 6 1 5 eal estate. h in 201 r t l w o ia r c r g e P m D m G o dc better residential an

espite some policy doses offered by the new dispensation led by Prime Minister Narendra Modi who unseated the Congress-led United Progressive Alliance (UPA) in the 16 Lok Sabha elections held in April-May, the year 2014 was not a remarkable year as far as real estate growth in the country was concerned. Inventory of unsold projects across the horizons especially Delhi-NCR continued to grow as developers were not prepared to reduce the prices in mid and large segment. Though there was huge demand for housing in affordable segment and Delhi Development Authority (DDA), the sole government agency in capital city which was mandated for building and providing homes in Delhi, could attract about a million buyers for its 2014 housing schemes, project execution and delivery by private developers largely remained stagnant. As for policy initiatives stuck in previous years, Union Budget FY 2014-15 stressed the need for offering affordable housing

OBSERVER DAWN January 2015

on par with infrastructure and later on the government also relaxed FDI norms in construction. Then there was the provision for 100 Smart Cities to create a new paradigm shift in urbanisation. In a hurry to pass Land Acquisition, Rehabilitation and Resettlement Act (LARR) bill, government did some tweaking in some provisions and moved through the ordinance route. Ending several years of waiting, the Securities and Exchange Board of India (SEBI), finally approved on August 10, 2014, the establishment of the Real Estate Investment Trusts (REITs) in India, and listing of these on stock exchanges for trading, along with offering detailed provisions and regulations for these purposes. Come 2015.Developers are finally reading the writing on the wall and coming in with the kind of supply that is relevant to demand. Property buyers are showing interest in projects being launched. Foreign investors who were hesitant to foray into the Indian market because of the sluggish economic growth and political environment are now planning for India. Some re-

January 2015 OBSERVER DAWN

Cover Story

ports say that more jobs will be created in 2015 - especially in the IT/ITeS, manufacturing and services sectors - and the demand for homes will increase visibly. Also, with property prices staying stable and good deals being offered by developers in order to clear their inventory, buyers are further encouraged to buy and invest in the property. With economic activity picking up gradually, and the RBI anticipating better GDP growth in 2015-16, situation is turning very favourable for both residential and commercial real estate. Buoyed by Central government's push for affordable housing, developers are now largely focusing on affordable homes and this will, to some extent, bridge the existing gap between demand and supply. Developers, on the whole, are expecting that 2015 will see the revival in Indian realty as policy makers at the highest level are making changes in complicated laws which are detrimental to smooth functioning of industry. Observer Dawn talked to several developers to get their views on prevailing market sentiments and how they foresee real estateâ&#x20AC;&#x2122;s performance this year.

OBSERVER DAWN January 2015

A better future in 2015 for real estate market â&#x20AC;&#x153;Indian economy is witnessing positive vibes after the arrival of the new government in 2014. The zeal in the market has increased, especially after the budget has set the ball rolling for the real estate sector. With allocation of more funds for affordable housing, announcement to build 100

smart cities and housing for all, easing of FDI norms, implementation of REITs and the special focus on infrastructure development, with these announcements the government has made it clear that in order to push economic growth. According to recent research, the positive sentiment can be gauged by the fact that global real estate funds focused on India are seeking to raise $6 billion (over Rs 36,000crore) in new capital on top of $1.6 billion (over Rs 9,000crore) raised in the first seven months of 2014. Most of this is aimed at residential projects. In addition, there is a significant rise in interest from large sovereign and foreign institutional players over the course of 2014. In 2015, as an apex body of real estate we expect from the government that real estate sector would get infra status and clarity over Real estate regulatory and land acquisition bill, single window system for approval and clearance. We look forward to a brighter era for the real estate sector in coming year which will boost the sentiments of Greater Faridabad, Naharpar along with developing areas of Delhi- NCR.” ---Mr JP Gupta, Vice President, CREDAI NCR- Haryana “In 2014, with the changing political scenario, Indian economy has observed impetus in every sector. In real estate sector it has observed an optimistic change with the various policy reformations. With the ease in FDI policy and prologue of real estate investment trusts (REITs) has encouraged the sector as a whole. These policy reforms bestowed new hope to attract new investors and helping the sector to relive from cash crunch. Low-cost housing and housing for all have been identified as a focus area by the Modi government and it has promised shelter to all by 2022. Hoping ahead, we look forward to see a better future in 2015 for real estate market. We expect that government will focus in some concern areas like with easing interest rate, giving infra status to the sector and bringing transparency with establishing RERA and to give clarity on real estate regulatory and land acquisition bill.” ---Mr. Aman Agarwal, Director, KV Developers

In 2014, as new and stable government came in existence, Indian Economy has got a momentum with various policy reforms which clearly demonstrated in all the sectors. With announcing housing for all and to build 100 smart cities government clearly proven their special focus for real estate and infra sector. Easing FDI norms and execution of REITs also opened new doors for foreign investment. We are very much sure that housing demand and potential of

Affordable Housing

Scheme for EPFO

Subscribers o achieve the government's mission 'Housing for all by 2022',the Labour Ministry is bringing in housing scheme to offer affordable houses to over 5 crore subscribers of the Employees Provident Fund Organisation (EPFO). The ministry will collaborate with public sector or PSU banks, housing finance companies, state-owned construction firms like NBCC and authorities like Delhi Development Authority (DDA), PUDA, HUDA to build houses at a price to be fixed by the government. According to a recent note of the Prime Minister's Office, deployment of 15 per cent of EPFO funds as loan for low cost housing would generate a credit flow of Rs 70,000 crore and can create 3.5 lakh additional low-cost homes. EPFO currently manages a huge corpus of Rs 6.5 lakh crore and its annual incremental deposit is in excess of Rs 70,000 crore. The ministry also intends to provide subsidy to EPFO subscribers in low-income bracket to help them avail benefits of various low-cost housing schemes of the government. The scheme, however, will be optional for EPFO subscribers as there is no need to provide affordable houses to those who already own one. Under the housing scheme, there would three different income categories low income, middle income and high income.

January 2015 OBSERVER DAWN

Cover Story

the industry will increase in 2015. A research indicates that luxury housing is registering maximum growth, owing to increasing HNI (High Net-worth Individuals) population and growing aspirations of people looking for luxury lifestyle. Subsequently, we are hoping that government will bring more transparency through RERA and land acquisition bill and RBI will reduce interest rate to salvage the fund crunch in the sector. --Mr. Dhiraj Jain, Director, Mahagun Group

After the new government formation industry is moving in right direction and 2015 would be a good year for the market as economy is growing, inflation rates has been down. The amended RERA bill will also add positivity in the sector and if the banks will cut down the interest rates then it would be a happier moment for the industry. Now day’s buyers are more positive and confident due to game changer policies by center government. The major role is being played by increased FAR, permission to FDI in real estate and amendments in Land Acquisition Bill. After such policies the buyer and investors both are in confident that they would not be in loosing position if they will decide to invest in land and buildup areas. -- Mr. Vivek Gupta, Chairman, Vardhaman Estate & Developers

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We anticipate positive development in 2015 ensuring consistent and efficient way of getting project approvals in a timely manner. To tackle the demand of housing requirement of urban India in an effective and speedy manner, there is a need to make changes in the Land Acquisition Act 2013 to remove the avoidable delays in acquiring land for projects. It is also important to pass the Housing Regulatory Authority Bill, 2013 at the earliest to enable single window clearances for housing projects. The new housing policy should look to suggest some viable methods for making affordable housing possible in public-private partnership (PPP) mode. The government should also look at introducing incentives in the form of tax waivers and lower interest rates should be given to housing developers who comply with provisions of the Green Building code. In 2015, we will continue to identify newer avenues for conducting business, reaching the customer through multiple channels thus ensuring and developing a strongly differentiated position in the consumer’s mind space.” -- Mr. Brotin Banerjee, MD & CEO, Tata Housing Development Company. n

New Horizon

Developing the Jewar Airport:

A Boost to Noidaâ&#x20AC;&#x2122;s Real Estate

However, there are still apprehensions about creating a second airport in National Capital Region. his is great news for the developers and public as the region of Greater Noida might get its own airport and the second in Delhi/NCR. The project was conceived in 2001 but had been stuck in the political crossfire of successive governments in the state. The then chief minister of Uttar Pradesh, Rajnath Singh had proposed the idea of developing a second airport in Jewar. This idea was well accepted and approved by his successor, Mayawati government but was later put on cold storage by the current government. However, the talks have begun again and this time the centre and state governments are looking deeply into the matter. The UP government has already acquired 2000 acres of land for the proposed airport and more can be acquired. The Civil Aviation ministry is awaiting the Uttar Pradesh government's assent. "The UP government has verbally communicated their approval and we are awaiting their written consent. Once that comes, we will form a committee in the ministry to work out the details and the proposal will be sent to all concerned, including the PMO," said the official of the ministry. Although, the planned second airport at

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Jewar is against the existing policy for construction within the stipulated radius. The distance between the proposed location and IGI is less than 150 km and according to the current norms; no greenfield airport will normally be allowed within an aerial distance of 150 kms of an existing airport. Where it is allowed as a second airport in the same city or close vicinity, the parameters for distribution of traffic between the two airports will be clearly spelt out. The government can, however, approve a greenfield airport at places where an existing airport is unable to meet the projected requirements of traffic. It can be allowed both as a replacement for an existing airport or for simultaneous operation. IGI currently has a capacity to handle 62 million passengers annually and given that in 2013-14, traffic at Delhi airport increased to 36.9 million from 16.2 million in 2005-06, there is ample room for growth as well as additional capacity expansion at IGI itself. A fourth terminal and a runway are planned and this might take the capacity to 100 million. This development

of the Jewar airport in Greater Noida is sure to benefit the real estate sector which has been taking a massive toil due to the economic slowdown over the years. There hasn’t been much activity happening in the sector which has dampened the sales, especially in the last 2-3 years. With the inventory getting piled up, developer’sprimary focus has drifted towards clearing the excess rather than launching new projects. This sight is pretty visible across all the major real estate regions in India. It is been said that an ideal market maintains an inventory of 6-8 months; whereas NCR had an inventory of over 40 months at the end of June 2014, while Mumbai stood at an inventory of over 50 months. Hyderabad had an inventory of over 45 months, Pune 20 months approx. and Chennai over 25 months. Bangalore had the minimum backlog among the major cities being around 20 months. Keeping this situation in mind, the creation of infrastructure in the form of a new airport will greatly help in correcting the realty prices in these key regions. Mr. Rajesh Goyal, MD, RG Group, says, “It’s been over a decade that this project has been kept pending and now it’s a matter of state approvals only. The entire belt across Greater Noida and Yamuna Expressway is currently witnessing a dampened demand as there are more investors than end users. The area is yet to become end user centric and this can happen only when sound infrastructure is in place. The presence of an airport will provide the right thrust for the demand as this will be a major gain for the infrastructure of the region. The sector will observe better market acceptance in the regions which will result in greater demand and better price appreciation in near future”. While the Jewar airport is still in the planning and approval phase; the developers across NCR are eagerly hopeful for its acceptance as this will not only provide a large scale boost to the infrastructure of the region; but in turn will help create a boom in the real estate sector. Mr. Prithvi Raj Kasana, MD, Morpheus Group, believes, “If the airport gets the green signal, there will be an unbelievable change in the shape of NCR real estate sector. Primary boost

will be received by the markets of Greater Noida, Yamuna Expressway, Noida and even Agra. At present, these markets are receiving moderate views from the public and due to the distance from the capital it is hard to pull the customers. If the airport here gets going, Greater Noida will have the right fuel to ignite growth in demand for these regions”. Mr. Ashok Gupta, CMD, Ajnara India Ltd., says, “Development of infrastructure is directly related to the growth of real estate in the given region. Also, there are levels of infrastructural developments which affect the sector differently. Availability of an airport, metro rail, railway station and other such civic amenities provide better boosts to the region than provision of public conveyance and other such smaller amenities as these developments cater to a macro level of public. Hence, if the airport gets the nod from the state government there will be a significant increase in demand for these regions along with capital appreciation”. Mr. Kushagr Ansal, Director, Ansal Housing, states, “A development of this scale will bring about a massive price appreciation in the markets of Greater Noida and Yamuna Expressway specially. This is extremely important for the overall development of these regions as Greater Noida is moving very slowly and Yamuna Expressway is yet to make its way in to people’s minds. On the flipside, creating a second airport in Delhi/NCR before IGI gets exhausted may render both airports impractical. The user charges at both airports will surely rise since the operating cost and capital expenditure at both airports would be spread over the same flyer base”. Mr. Deepak Kapoor, Director, Gulshan Homz, says, “Speaking off the location, strategically the regions of Noida and Greater Noida have a great industrial/commercial potential and consequently, infrastructure would be required. This will also lead to employment opportunities along with economic up gradation. For the sector, a lot of demand for housing and office spaces will erupt along with strong capital appreciation in and around Greater Noida”. Adding to the view, Mr. Rupesh Gupta, Director, JM Housing, says, “Greater Noida is being greatly recognised as one of the future smart cities of India. The master plan for the region is perfectly laid down with ample of work and scope carried in the region. Airport will be the perfect icing on cake which will give a much needed push to the demand in the regions. This will also increase the cost of land and property prices will appreciate at rate of knots”. n

January 2015 OBSERVER DAWN

Why it is Advisable to Housing

Plan Early in House Purchase

There is an old saying that early planning always pays back good reward. -By Reetesh Singh

ho says that one has to wait for few years before stepping out of one’s rented accommodation to own home? Whether it’s your first job or you are a settled professional or in govt. or PSU, young people at early stage have ample of time to plan well for their first home and taking the responsibility of being a homeowner. Planning a house early benefits you in many ways as in all circumstances, property gains appreciation year by year, one gets his/ her permanent home, investment of money in the most secure medium and mode of earning in old age time etc. So, if you go to purchase property early it means you

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are securing yourself and for your family for the rest of your life. Early house planning benefits you in tax deduction, controls monthly expenses, creates sense of saving and responsibility all together. When you take loan to purchase a property then you become eligible for tax deduction against the interest paid on the loan but always remember that it is not applicable on under construction homes. Maximum available deduction of against the interest paid on the home loan is Rs. 2 lakhs in case of a self occupied property and there is no such restriction against interest paid on the home loan in case where the property has been rented out. Apart from this, your eligibility for deduction against the principal repaid under Section 80C also increases.

Major benefits of early purchase of house:

According to Mr. Pawan Jasuja, Director, Finlace Consulting, “The investment in house provides a hedge against inflation as the property price appreciates. When one exits the property, once can reinvest in property or utilize the money without caring about the impact of inflation. The duration of housing loan is for a longer period. Hence, starting early ensures that one can repay the loan early. On the other hand, if one starts late, the loan extends till higher age which is not recommended.” Further he added, ‘also in the early years of life when one starts earning, the tendency is more towards spending and less towards savings and investment. Hence, investment in early

years ensures that the money is directed to the right channel which reaps positive results as real estate appreciates in long run. So early planning is better!’ Seeing agree with Mr. Jasuja, Mr. Suresh Gogia, MD, Ascent Buildtech, says, “Buying a home is always a value added asset that increases every year apart from social recognition. If the buyer living in the house then he is saving a lot of ever increasing rentals of metro and Tier & 2 cities and if renting out the home then also it is paying monthly income for him/ her. Whether you use it for your own or rent it out, home always manages handful cash flow on regular basis.” If in case property is bought for investment purpose in an under developed or developing area then also it is sure to see a good price appreciation within few years and in coming future it may benefit you in terms to finance another property purchase, marriage of children, higher study, family members etc. In recent years, NRIs have invested money in real estate since in India they get house in low cost and sell them on higher return. “Many people buy house for investment purpose like NRIs who earn good money and just like any other, seek higher appreciation too. In this case, if anyone is looking for promised return then property purchase is the best option. Many NRIs have been investing in Gurgaon, Noida, Gr. Noida and Ghaziabad as they know that price is going to escalate soon. After 5-7 years either they sell and make smart money or use it for own purpose or earn rental value. The reason is that it is quite easy to invest, has surety of appreciation and not complicated like; Mutual Funds, Share market etc.”, said Mr. Dinesh Jain- MD, Exotica Housing.

Challenges in property purchase in later stage:

Buying property in the later age make one’s life challenging in terms of managing rental and daily expenses of family, sudden cost of medicines and education, other miscellaneous expenses and multiplied by rising cost of property. Property rates are not stagnant in market and on the other hand salary of working professionals is in constant mode. Hence early planning benefits you in terms to manage expenses and pay low EMIs for coming 3-4 years. “Either you own it for personal purpose or for commercial purpose; it will definitely be termed as an asset with most secured form of investment. Planning early for purchasing house

not only results in value-adding asset but also provides sense of security for rest of the life. Secondly, if a person buys house in an early age, EMI’s can be kept lower by increasing loan’s tenure. Moreover, at early stage, there are no major responsibilities like; children, education, etc., thus allowing an individual to save major chunk of their income. So, it is not wrong to say that it is a sensible decision to plan early in life for buying homes.” explains Mr. Satyedra Tomar, JMD- Proplarity Group. If we talk about lending authorities, housing finance companies or national banks, they offer home loan to young professionals, depending on the eligibility, at early stage since they consider growth of the individual and almost zero liability apart from loan. In case applicant is married and both are working then loan eligibility gets higher as they can co-own the property if they apply for a joint loan.

Merits of having own property in old age:

Mr. Naveen Goel, Director, Radhey Krishna Group, suggests, “As we can notice that cost of land has gone beyond reach of many home buyers. Rising property prices has brought concept of group housing, residential project having option of villas, apartments, shopping complexes etc. to offer opportunity for everyone who want to own his/ her own property. Hence, in this scenario, it is always advisable to plan your home at early stage that offers many benefits, discounts etc. And investment at early stage in developing region always gives you higher appreciation and futuristic infrastructure in affordable cost.” A property purchased at early stage can be bread and butter for its owner too. For many people who can’t earn money in old age or don’t have any source of income after retirement, can go for RML (reverse mortgage loan) that enables senior citizens to avail periodical payment from lender/ national bank/ housing finance company (associated with NHB) for maximum 20 years against mortgage the house while remaining the owner in house only. As it makes sense to take the decision early and by the time these responsibilities will head towards you, you will strongly face them due to age old commitment. This is one investment that will never fail you, even in the worst of circumstances. There is nothing like having your own home early in life! n

January 2015 OBSERVER DAWN

Heated

Enjoy Winters with Technology

Swimming Pool Homes are being designed in more innovative ways than one.

OBSERVER DAWN January 2015

By Ramya Mishra eople are looking to bring in the five elements into balance and make it a blissful experience that is not only beautiful to look at and wonderful to spend time in, but actually has a positive effect on the health and well-being of the inhabitants. If we talk about water bodies in our home, then instantly swimming pools come to our mind. But generally swimming or pools are related to summers, in winters either they remain dry or are cleaned once a while. Due to this many people consider pools more as a liability rather than an asset. But things have changed, gone are the days when usage of swimming pool was confined to only summer. Now one can make use of the swimming pool throughout the year. Financially also, this makes sense, whole year you are paying pool maintenance cost, so why shouldn't the benefits of the pool availed in winters also. All this is made possible by the latest heating systems.There are three basic types of pool heating systems- Solar Pool Heaters, Heat Pump Pool Heaters and Gas Pool Heaters. The best system for your pool is determined by numerous factors including your needs, desires, budget and physical layout of the pool and house.

Solar Pool Heater

Solar Pool Heaters are best for recreational pool use and are recommended for those who are comfortable with pool temperatures ranging from the low to mid 80's. Solar works year round in southern climates, and extends the season in northern climates. There may be periods during inclement weather that the pool is too cool to use; however, several sunny days will bring the pool back to a comfortable temperature. Proper sizing is critical for good performance. Heat Pump Pool Heaters- For those who enjoy swimming regardless of the weather, a Heat Pump is the recommended method. It is also the preferred method for therapy or athletic

trainers, and also when a home is not "solar feasible" (i.e. solar will not fit on roof.) A heat Pump, when properly sized, can maintain any desired pool temperature between 80 and 90 degrees, regardless of outside weather conditions. A Heat Pump will work when the outside air temperature is above 45 degrees.

Gas Pool Heaters

Gas is best for heating pools for short periods of time. Gas Pool Heaters are effective, but expensive to operate. They are ideal for quickly heating the pool when guests or children are visiting or for a second home where the pool is not heated on a regular basis. Gas Heaters are generally over-sized and can easily maintain any desired temperature regardless of the weather. It is also an ideal heater or backup heater for a spa. Vivek Mishra, MD and Technical Head, Premium Pool, says, â&#x20AC;&#x153;The heating systems are easy to maintain. The cost of installation for heat pumps is around Rs.4.53 lakhs and of heaters are Rs.1.49 lakhs. There is no major maintenance cost involved. Electricity consumption is also quiet low.â&#x20AC;? Each pool & home is unique The size of the pool heater is based on several factors, including: the size & shape of the pool; pool shading (i.e. trees, screen enclosure); geographic location; swimming season and pool temperature desired; windy conditions; and for solar, the direction of the roof (south, east, west or flat). The size of the heater will determine the temperature, swimming season, and length of time to heat the pool. It is very important to properly size the heater for good performance. Keep in mind that a Thermal Pool Cover is recommended for all heating systems. Heating a pool without a cover is like heating a house without a roof. The heat just goes right out the top. Without a pool cover, the cost of operating a Heat Pump or Gas Heater is doubled, and a Solar Heater's effectiveness is dramatically decreased. For convenience a cover roller may be added to ease placement and removal of the cover. If a pool cover is not be used, the size of the heater must be increased by 100%. n

January 2015 OBSERVER DAWN

RNI Reg. No. DELENG/2013/50357