October od by Observer Dawn

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Briefing Desk News

12 14 16 18 19

M3M India Bags â&#x20AC;&#x2DC;Best Group Housing Project... Exotica Housing presents Exotica Dreamville at... Omaxe launches Omaxe Royal... Emaar MGF announces Festive Bonanza... Gaursons comes with Gaurs International...

BridgeStreet Global Hospitality Unveils...

BCC launches Bharat City Phase II with...

Cover Story

Raj Nagar Extension A Resurgent Housing Hub

Ghaziabad

Making Strong Pitch for Smart City

OBSERVER DAWN October 2014

Briefing

Environ

ent

Green NCR

inistry

Brings Joy to Thousands

Special Story

REITs:Taking a Slice of the Realty Pie

Gadgets & Gizmos

iPhone 6 and iPhone 6 Plus Phone 6 isn’t simply bigger — it’s better in every way. Larger, yet dramatically thinner. More powerful, but remarkably power eﬃcient. With a smooth metal surface that seamlessly meets the new Retina HD...

Pioneered in the US, REITs are already quite popular in several countries including the UK...

Flooring

Pergo Unveils Wood Parquet Pergo has always aimed at making the best use of natural resources in its products

Outlook

Real Estate Market Overview One of the most important announcements for the real estate sector was the Securities and Exchange Board of India’s (SEBI’s) issuing the final guidelines for Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) in India.

Retail

Mall Vacancy Stagnant Across the Cities

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Letter From the Editor

Time for Cautious Optimism olitics of development as measured by the GDP growth reached to its high-point when a new government led by Prime Minister Narendra Modi was sworn-in in May this year. As the elections were fought on the agenda of a new era of economic prosperity in the country, everyone — from the great common man to uber rich — wanted a slice of it. While the common man who also forms the part of aggressive middle class is still clueless about what awaits for him or her, industrialists and businessman are showing sign of impatience in absence of any structural reforms by the government. So, before a sense of desperation steps in, powersthat-be should do the needful. The most important expectation from the Modi government is that it would usher in reforms in the structure and performance of the government. It is no one’s expectation that these changes would be effected overnight but months have passed and still there are few signs of promised "good days ahead". However, there is no need to be cynical as the latest World Economic Outlook report by the International Monetary Fund (IMF) said. IMF predicted that investment and exports will let the Indian economy post a rather smart recovery. India will witness an expansion of 5.6% in 2014 and a significantly higher 6.4% in 2015. It praised India for “successfully” lowering the vulnerabilities by adopting tight macroeconomic policies to reduce inflation and narrow the current account deficit (CAD).Significantly, IMF's forecast is in line with the RBI's GDP growth estimate of 5.5% for 2014-15 and 6.3% in 2015-16. It is also in consonance with the finance ministry's latest estimate of 5.7-5.9% for this fiscal. Through a series of steps including the “Make in India” initiative and accelerating reforms, PM has expressed confidence of returning to high growth of 78% in the next three years. But the biggest dampener in PM's optimism is high interest rates that prevent consumption-led demand from increasing. Weak business investment, creaking infrastructure and slow structural reforms are gripping the economy. Modi won landslide in general election with a promise of bringing in prosperity. On global platform especially in Japan, he trumpeted the growth data, saying it had "generated huge positive sentiment". But there is a difference between sentiment and ground reality. Experts say that it needs at least 8% annual growth to create enough jobs for the 200 million Indians who will be reaching working age over the next two decades. And that's not possible without overhauling of public finances, complicated land acquisition laws, regressive tax regime and outdated labour rules, just to name a few. In the past two years, the realty market has been hit by sluggish economy and as developers face financial constraints, there has been little activity and low sales. The sector is still sitting on a high inventory. An ideal market maintains an inventory of eight months. Recent data by a research firm showed that the Mumbai Metropolitan Region had an inventory of 53 months at the end of June 2014. The NCR had an inventory of 45 months. Hyderabad had an inventory of 47 months, Pune 23 months and Chennai 26 months. Bangalore had 19 months — the smallest inventory among major cities. Some analysts, however, say that sentiment is positive and encouraging, but a complete revival might take a year or more. And we have little to overlook the optimism.

Modi won landslide in general election with a promise of bringing in prosperity. On global platform especially in Japan, he trumpeted the growth data, saying it had "generated huge positive sentiment". But there is a difference between sentiment and ground reality.

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@harityagi2003 @harityagi2003 @harityagi2003 @harityagi2003 October 2014 OBSERVER DAWN

Desk News

M3M India Bags ‘Best Group Housing Project – Luxury’

at NAREDCO 12th National Convention 2014

3M India, a leading ultra luxury real estate developer, wins the Best Group Housing Project Award for its Ultra luxury project ‘M3M Golf Estate’ at NAREDCO 12th National Convention 2014. A panel comprising of eminent jury, has unanimously decided M3M Golf Estate as the best project in Luxury segment. These awards were validated by the KPMG. The two day convention, 12th – 13th September, 2014 was held at The Ashoka Hotel, Chankyapuri. Event’s talks and discussions were centered on the theme – ‘Housing for All by 2022’. The chief guest of the event Mr. M Venkaiah Naidu, Union Minister of Urban Development facilitated the award ceremony held towards the end of the first day of the conclave. M3M India was also one of the main sponsors of the event. Mr. Pankaj Bansal, Director – M3M India, said, “This is a great moment of pride for us at M3M India. It is a significant

recognition of our commitment to provide innovation, technology and quality of the highest standards. To keep up with the changing demands and sustain in the highly competitive realty sector, we are always on the look-out for innovative ideas through a number of international concepts while ensuring uniqueness with a touch of personal affinity of our buyers. This award reinforces our mission to deliver high-end living with impeccable standards of professionalism, ethics, quality, service and taste.” The summit was attended by a large number of delegates from industries, developers, housing technology providers, architects, policymakers, government institutions, regulatory agencies, infrastructure & construction companies and real estate consultants. While addressing the dignitaries, Mr. Naidu emphasized on the key challenges and upcoming opportunities in the housing sector to capitalize on Mr. Modi’s vision to provide housing for all by 2022. The sessions of the event were focused on developing a constructive roadmap to achieve prime minister’s vision. n

entral Park, the leading real estate developer known for inventive and proficient designs, unquestionable building quality in Gurgaon, today announced the possessions of Belgravia Towers &The Room. The project Central Park Resorts has been built on the foundations of excellence in planning, design, construction and sustainability. High towers that reach for the sky symbolizes our high spirited efforts & loyalty towards our customers. The towers are immensely enveloping and overlooking above 20 acres of contiguous landscaped greens, interspersed with water bodies, Belgravia will enhance the lifestyle quotient of its patrons by a few notches. Keeping true to its tradition of defining luxury lifestyle, The Room at Central Park Resorts initiates the language of luxury within the studio apartment segment. The launch of these Studio Apartments creates transparency and a clear product understanding

for consumers and clients. Speaking on the occasion, Mr. A.Bakshi, Founder &MD, Central Park said, “It is a really proud moment for us and we are being glad to announce the possession of our Central Park Resorts. The project has always been famous for state of art design, technology and excellence. Central Park Resorts is spread in 47.5 acres development of which more than 80% is dedicated to open areas to give the resident an open liberated feeling.” As befits a luxury condominium, the entrance to Central Park Resorts is resplendently lined with palm trees and spectacular water features.In order to keep its 20 acre expanse of green free from cars, the company has invested an additional US$10 million in this tunnel that leads to an underground road network which connects with the lobbies of each residential tower. The company is raising the luxury quotient in real estate in NCR with unparalleled features and facilities. n

Central Park’s Belgravia Towers Ready for Possession

OBSERVER DAWN October 2014

Desk News

Exotica Housing Presents Exotica Dreamville at Noida Extension

xotica Housing has brought its affordable project – Exotica Dreamville at Greater Noida West (Noida Extension). Strategically located on Plot No. GH-01/A, Sector-16C , Exotica Dreamville has an exclusive, impeccably planned Luxury yet affordable apartments. The project is spread majestically over 10 acres with 2, 3 BHK luxury apartments ranging Rs. 33 lacs onwards, having the units from 920 sq. ft. to 1705 sq. ft. It is well connected with NH24 and FNG that offers swift transport towards New Delhi, Ghaziabad, Faridabad apart from Noida. The three side open area with contemporary and chic styles with a touch of Modern Living has vibrant colour schemes, spacious living rooms, large balconies, fancy ceilings, trendy interiors with embellished exteriors which gives you a touch of nature. Apart from this the green environment and pollution free atmosphere make living a complete pleasure. Mr. Dinesh Jain, MD, Exotica Housing, said, “Exotica Dreamville marks the commitment of Exotica Housing to continuously develop properties

with modern design concepts of international standards. Developing unparallel affordable housing in India is by Exotica Housing is virtue of its lineage, leverages expertise in. We promise our valued customer a better quality of life by providing exclusivity in terms of quality of construction, international design standards and state-of-the-art facilities.” Exotica Dreamville is Earthquake resistant RCC framed structure designed by highly experienced structural and approved by IIT Delhi having three side area, with 60 meter wide road. The project is offering 100% power back-up, two elevators in each block, adequate water supply, exterior maintenance, lawn maintenance, concierge services, and central security and monitoring. The group will maintain the project for one year after the possession and then it will be handed over to RWA. With premier design standards, quality amenities and high-end features, Exotica Dreamville promotes harmonious living within the community that consists of various size options to suit client requirements. The project is under construction and expected to offer possession from December 2015 in its first phase. n

KRasa’s ‘Centrade Business Park’ Launched in Noida

Rasa International Pvt Ltd is all set to create benchmarks in Commercial housing by its new project ‘Centrade Business Park’ in Sector-140, Noida. Spread over an area of five acre, the project is located on a corner plot that will give it a distinct business advantage. The state-ofthe-art IT/ITES Park project enjoys enviable location as it sits not only on Noida-Greater Noida Expressway but also surrounded by 13 group housing projects of leading residential developers. Combining the strengths of well-grounded experience with the dynamic needs of modern times, Centrade Business Park will usher in a new era of work culture with futuristic office spaces, at the very core of Noida’s prestigious business hub. This commercial venture will be one-of-its-kind business + entertainment & recreational center, where

OBSERVER DAWN October 2014

one can work along with luxurious sports and entertainment facility to drive off the monotony of work place. “We believe that the location advantage coupled with the quality of our products will create buzz in the real estate market. The plan is to come up with a commercial space where people can spend some recreational time after grueling hours working in office,” says Mr. Arvind Singh, Managing Director, KRasa Group. The project aims to bring in an era of work culture with futuristic office spaces where business, entertainment & recreation gel together to set the tone for an era of improvised work culture. The endeavor is to break the monotony of work place and help the companies operate from space that will give them stress-free employees with zeal to work tirelessly towards a common goal. All these facilities make Centrade a standalone project with best integrated ideas. n

Located at Phi -IV , Gr. Noida

Size Approx. 450 Sq.ft & 600 Sq.ft

Price Starting @18.90 Lacs Only/-

5 Minutes Drive From (B.I.Circuit) 2 Minutes Drive From Night Safari . 0 Km - 5 Star Hotel.

0 Km - Educational Zone. 0 Km - Commercial Complex 0 Km - Automobile Industry.

Project Approved From

V.A. Infraventures Pvt. Ltd. Head Office : A-42/6, Ground Floor , Pinnacle Tower, Sector-62 , Noida . Site Address : Plot No. 297, Opp. Honda Siel Factory , Sector- Phi. IV, Greater Noida. Phone : +91- 120-4221824 , +91 9810204688 E-mail : contactv5group@gmail.com I Website : www.clarissa.co

Construc tion in Full io Swing

Desk News

Omaxe launches “Omaxe Royal Residency” in Faridabad

maxe Limited recently launched Omaxe Royal Residency – a futuristic residential apartment in the approx. 50 acres mixed land use development project Omaxe City Centre, Sector 79, Faridabad. Sector 79 in Faridabad has been earmarked by the Haryana Government as a Commercial Business District (CBD). Spread over approx. 450 acres, this is one of India’s largest CBDs. Priced at approx. Rs 60 lakh, these apartments are crafted to inspire with units of 1685 sq. ft. in 3BHK+3 toilets. The concept of Live-Work-Play will be re-defined. Omaxe City Centre’s offerings aren’t just limited to residential complex. The World Street Junction will be the main attraction. Aesthetical elegance through design, elevation and landscaping, reminiscent of destinations like London, New York, Johannesburg, Buenos Aires, Singapore and Melbourne will be recreated. The project will also have

options of SCO plots, Retail, Underground Palika Bazar, Office Spaces, Service Apartments, Hypermarket, Hotel and Restaurant and Family Entertainment Centre and Club. Designed by DYER, an acclaimed London based architect; beautiful landscape, walkways, world-class Club etc will add to its desirability. Mr. Mohit Goel, CEO, Omaxe said: “Faridabad boasts of an extremely modern and accessibility focused infrastructure development in the form of expressways and highways, Metro Rail, Regional Rapid Transit System etc that shall not only improve intra-city travel but also allow access from nearby cities like the IT hubs of Gurgaon and Noida, manufacturing units of Manesar and HNIs from South Delhi; besides its own industrial units. Omaxe City Centre is a holistic development that will cater to the requirements of business, retail and homebuyers. While the buzz around this project is encouraging, we are confident that this will be a landmark development.” n

Crossword Book Awards finalist to Debut Young Adult Fantasy Novel

hat if your shadow wasn’t the docile grey shape you thought it to be? What if it held a vicious plague just waiting to be released? And what if the fate of the entire world rested in the hands of four children? Sceadu by Crossword Book Awards finalist Prashant Pinge intricately weaves together elements of psychology, mythology, and fantasy to offer young adult readers a thrilling adventure that takes place within the human shadow. A verse from a century old book leaves four children stranded in Sceadu, a land inside their shadows. “I wanted to provide a rational explanation for the existence of this place,” says Prashant Pinge. “And that’s why I have used the concept of the shadow from a psychological perspective. However, it still ties in beautifully with how a shadow is defined in physics as well. It is what makes this ad-

OBSERVER DAWN October 2014

venture so believable.” The children find themselves on the run from the Hefigans, creatures of Sceadu. However, things take a turn for the worse when they realize they have unknowingly triggered an ancient prophecy which promises to unleash an apocalyptic plague back home. With the survival of their kind at stake, the children have no choice but to face the treacherous Hefigans who are just as determined to claim a world they believe to be their legacy. Sceadu will be released globally via Kindle on 10th November 2014 and will be subsequently made available on other e-readers. Prashant Pinge is an acclaimed author of children’s fiction from Mumbai, India. He has been writing for over a decade with four books and two short stories to his credit. His books have been nominated for the Crossword Book Awards, with Raja & the Giant Donut being shortlisted in the Children’s Writing category in 2011. n

Desk News

Taking CSR to Community Services

ince inception Jainco group is very much involved in charity. With the help of some NGOs, Mr. Praveen Jain , co-founder himself always took corporate sustainability as a part of growing together.

Significantly, a unit of Jainco Group, Jainco Realty is taking fast navigation in real estate consulting services in Delhi & Noida Jainco Group was founded by Late Shri Naresh Chand Jain Ji and has now become a renowned name in the real estate industry with an array of world-class projects of all kinds like Industrial, Commercial, Residential and Townships.

The Group’s unprecedented success has distributed more than 15000 residential, commercial, industrial and all other types of properties. Jainco’s mission is to build healthy and sustainable green spaces to ensure that our projects adhere to the very best environmental practices, that enhance the quality and productivity of life without harming the environment. Committed to give its clients a specialized real estate experience, to satisfy every client’s need for a better experience through quality construction. n

KPDK Buildtech Unveils Newtown Square at Gurgaon PDK Buildtech, unveiled its maiden commercial project ‘Newtown Square’. The project will be developed at Sector 95 A, Gurgaon on main Pataudi road. The project is being very strategically located and shares neighbourhood with three major roadways; with Dwarka Expressway being 5 mins from the project, KMP expressway 10 minutes and NH 8 being a mere 8 minutes. Newtown Square is one of the first commercial projects being launched in the New Gurgaon region; which is considered to be the fastest growing hyper-potential zone, and one of the most desired areas for investment. It will be surrounded by high-end residential units totalling to more than 3,000 acres with a captive catchment of over one million people. The project is a unique symbiosis of premium areas for social, entertainment, corporate and residential usage spread across 3.1 acres of area.

OBSERVER DAWN October 2014

The project boasts of state of the art design and international standard amenities through meticulous planning of over 3 lac sq. ft. by renowned architects and urban planners. The building will incorporate environmentally conscious Green building design by implementing solar energy generation, recycling and latest conversation technologies. All the required approvals and clearances have been obtained for the project and the construction will commence in a few months. The company has promised to deliver the project in the next 36- 42 months. Mr. M. K. Gupta, Chairman, KPDK Buildtech, said, “The day has finally come when we unveil our very first project to the public. By offering almost every possible commercial unit under one roof, our prime focus for this project is to make it a landmark in the region. The project is well surrounded by upcoming residential projects which will make sure that a continuous demand is witnessed in the region.” n

Gaursons comes with “Gaurs International School” aursons has moved ahead by laying the foundation stone of “Gaurs International School” at Gaur City 2, Greater Noida West. Gaursons stepped in the education sector with the objective of imparting quality education to the coming generations. The school would be one of the best in terms of Infrastructure and facilities; it will be spread in 5 acres of land. As per the norms this state of the art school will have fully air conditioned 750 sq. ft. class rooms with interactive teaching boards. First time in Delhi NCR the school will have facilities like boxing ring as per the International Standards, Wooden basket ball court, 25mts. Shooting range with as per the International norms. Student will have privilege with 18 acers of Gaur City sports complex for inter and intra school competition, Day & Night Cricket

Stadium, Football Field, Swimming Pool and Athletic Tracks. The management has also pledged to rope in the best teachers across the city to make it one of the best educational institutional in the region. Mr. Manoj Gaur, Managing Director, Gaursons India Ltd, said, “Gaursons have already set a benchmark in the real estate sector, our objective of foraying in the education sector is to provide world class education in the region and prepare leaders for the future. It is a continuous and constant effort of Gaursons to make people’s life simpler, easier and happier by providing the world class amenities in its project and now with the best in class education. Going forward we are planning to set up school in every existing and up-coming township of Gaursons with the same features, so that the residents would not face any problem related to the education”.n

Creating a New Benchmark Into Real Estate

ith the project name of classic residency Shree Energy Developer has made high impact among the buyers of house at Raj Nager extension within short span of time. Shree Energy gears for high ride into real estate With the project name of classic residency Shree Energy Developer has made high impact among the buyers of house at Raj Nager extension within short span of time. Shree Energy Developers (P) Ltd. is a real estate company with an experience of 10 years. It is managed by highly experienced promoters with strong financial background. Shree Energy Developers (P) Ltd .actively seeks growth by investing in a variety of systematically identified businesses making it well-diverified Company with interest in a range of projects such as Residential,CommercialComplexes,Farm Houses and Township.And Medicare Projects. The Company is managed by Architects, Interior designers, Project executioners and highly qualified professional Who ensure that the Company maintains it's high standard. Shree Energy Group is com-

mitted to deliver the special needs of their customers, with future in mind. And today the group has expanded beyond the real estate business. The company is creating Classic Residency colony in Ghaziabad and has earned worldwide appreciation. Today, the company is known for aesthetically designed township with luxurious homes, club, commercial centre, institutional building, parks and playgrounds Excerpts from RK Jain, Director Q-Tell us why anyone should by home from you? Ans- Simply we are very quality conscious and this land is taken over since long time . We have very open area and price is upto mark. Q- As a builder what are the main challenges you face here? Ans- No challenges. 80%s houses are almost sold here and in the middle of taking other projects . Q- What is your new acquisition in terms of other projects ? Ans- In terms of other projects we are taking fast turn for Faridabad, 82 sector for commercial purpose. Apart from this Virindavan is also our top initiative making mix hub of commercial and residential projects. n

October 2014 OBSERVER DAWN

Desk News

BridgeStreet Global Hospitality Unveils Bleisure Travel Trends

ridgeStreet Global Hospitality released the results of a worldwide survey of more than 640 recent guests at the Serviced Apartments Summit this year, revealing an overwhelmingly positive sentiment toward blending business travel with leisure, dubbed “bleisure.” BridgeStreet is the leading international solution for serviced apartment experiences with more than 50,000 locations in over 60 countries. Discussed during “The Bleisure Principle” panel at the annual Serviced Apartments Summit, Kelly Murphy, BridgeStreet vice president of marketing, noted, “Employees feel bleisure opportunities benefit them and add value to work assignments, contributing to higher job satisfaction and loyalty.” Murphy continues, “The majority of our guests surveyed have takenBleisure trips before, also noting they are equally or more likely to blend business

and leisure travel in the future compared to five years ago. Emerging trends are important for the serviced apartment industry to not only be aware of, but to leverage, as our products benefit the needs of both the business and leisure guest. As bleisure is on business travelers’ minds more than ever, serviced apartment experiences meet the needs of both business and leisure guests. A more comfortable, home-like alternative to typical hotel rooms, serviced apartments are furnished accommodations with fully equipped kitchens, can feature multiple bedrooms and offer amenities ranging from in-suite wifi to premium TV channels. Spacious accommodations suit business travelers, where a large, well-designed workspace can greatly increase productivity when out of the office, while remaining flexible for leisure guests, including additional family and loved ones. n

Mr. Manoj Verma takes over as the Gobal President & Director

r. Manoj Verma, a seasoned professional with 32 years of rich experience with global leaders and MNCs, has taken over as the Gobal President & Director, NTL Lemnis. Mr. Manoj Verma relinquished the post of CEO of Orient Electricals, a C K Birla group company, Delhi to take charge of the position. He will join the Board of Directors at NTL Lemnis and shall also be a member of the Advisory Board of NTL Electronics, the parent company. Prior to joining NTL Lemnis, Mr. Verma was associated with the most respected names in the lighting business. He started his career with Philips and after spending 17

OBSERVER DAWN October 2014

years with Philips, he moved to GE Lighting India to head their professional lighting business. He then worked with Osram India to head Sales, Marketing and supply chain. In 2005, he moved to Crompton Greaves as P & L Head for the lighting business. The enhancement of his role took place in 2007 with International Business added to the portfolio for the entire group. Subsequent to this, in 2009 was given the total P&L responsibility of the Consumer Business Unit – Fans, Appliances, Lighting and Pumps. In 2012, he joined the CK Birla group as the CEO of Orient Electric. n

Desk News

BCC launches Bharat City Phase II with German Pre-cast Technology

fter immensely successful completion of Bharat City Phase I, BCC Infrastructure has launched Phase II, which will be constructed using the world-class German pre-cast technology that will speed up the construction process at a much rapid pace, keeping with all International green construction norms. Bharat City Phase I has total number of 1944 flats that will be ready for possession in two phases, by end of September 2014, and by January 2015, respectively. Over 80% of these flats have already been sold and there is a sizable demand in the rejuvenated market for the rest already. Expressing his joy on these numbers Mr. Kumar Bharat, Director, BCC Infrastructure said, “Despite the market slowdown we have been elated to see the Bharat City customer

family grow day by day. We have been immensely encouraged by the trust and support shown by our customers that makes us strive to provide best-in-class facilities, at the most affordable rates to our customers.” Bharat City Phase II will be completed in three parts and will have a total of over 5000 flats in 39 Towers, out of which, the first part of 2190 flats in 16 towers are already up for grabs. “Bharat City phase II sales have furthered our confidence with more than 30% of flats already sold in pre-launch, and within a month of launch of the phase. We hope to always be able to live up to our customer’s trust and expectations and fulfil all our commitments with utmost transparency towards delivering the best living standards at Bharat City as per our ‘People First’ philosophy”, added Mr. Kumar Bharat. n

aking its first leap towards economic and social development of the country, Noida based Proplarity Group has joined hands with Navjyoti India Foundation and extended its support to the NGO as a part of CSR activity. The real estate group has taken responsibility to provide all basic requirements to students of Bawana based Navjyoti School, studying presently in class 1st. The group boasts to announce that it will continue this initiative for coming 10 years. The group affirms to support education of children till class 10th. Besides this, other requisites like uniforms, school bags, books, furniture, etc., are also sponsored by the group as a part of CSR activity. Navjyoti India Foundation is a NGO, which has been working incessantly with underprivileged communities and run by famous social activist and former IPS officer Ms. Kiran Bedi. Gracing the occasion, Ms. Geetika Singh, Proplarity Team, says, “Being a corporate house, we take this social responsibility to educate

those kids who are not able to get their primary right, education. The sole objective of our CSR initiative is to provide bright future prospects to underprivileged kids and we are determined to take this initiative to a new level in coming years.” “This is our very first CSR activity and we believe that educating poor and underprivileged kids are one the best mediums to contribute in economic and social development of the country. Success is followed by responsibility and being a responsible corporate house, we feel it’s the prime responsibility of a society to provide basic education to its citizens” notifies Mr. Shoaib Siddiqui, Proplarity Team. Mr. Rajeev Kumar, Proplarity Team, remarks, “We are not here only to develop architectural marvels; we believe in contributing towards weaker section of the society in the most sought-after manner. Our recent initiative is the testimony of the same”. So, in a nutshell, , Proplarity group has given due importance to the novel concept that it’s time to give back to society what it truly deserves.n

Proplarity Group Sponsors Kids’ Education as CSR Initiative

OBSERVER DAWN October 2014

Gulshan Homz Launches Gulshan Bellina

aving been already known for quality products and on time delivery of projects, Gulshan Homz has launched its newest offering to the market, ‘Gulshan Bellina’. With Bellina, the company is ready to bring an address that will simply redefine beauty in Greater Noida West. After an impressive performance with projects like Grand, Centrum, Vivante and Ikebana; Gulshan Homz had made a mark at Indirapuram and Noida. With its new project, the company has its eyes all set at Greater Noida West. The company is yet again coming out with a quality project, offering 2&3 BHK apartments. The apartments will be made available in five different sizes viz. 1020 sq. ft., 1105 sq. ft., 1325 sq. ft, 1495 sq. ft., 1745 sq. ft. Being an offering from Gulshan Homz, the company has not left any stones unturned to provide its customers with world class amenities such as; kids lounge, gymnasium, amphitheatre, business lounge, yoga centre, outdoor/indoor sports facilities, laundry services, aerobic dance floor, jogging track, cabs on call, AC banquet and much more. Apart from amenities,

the project shares one of the most prime locations of Greater Noida (West). The location is very strategic as Delhi and Noida are at a very close proximity. The launch price of the project is Rs.3360 per sq. ft. onwards. The project is to be spread across a total area of 7.5 acres and will include 13 towers with 19 floors in each. The company has planned to construct a total of 1108 units with 4–6(on specific blocks) flats on each floor. The project is planned to offer possession after 36 months. At the launch of Gulshan Bellina, Mr. Deepak Kapoor, Director, Gulshan Homz, says, “First of all, I would like to thank all our present customers and stakeholders for being with us throughout our successful journey; and with this it is our sheer pleasure to present Gulshan Bellina. We have kept no stones unturned when it comes to providing facilities in this project. We have planned and designed this project in keeping in mind all the needs and requirements of our future residents. The location is also wonderful as it is in extreme close proximity to Delhi and Noida. We hope to receive a similar overwhelming response as we have been getting in all our previous projects." n

Pride of India Award to Earth Group JMD

r. Vikas Gupta, Joint Managing Director of Earth Infrastructures Ltd, recently honored with the prestigious “Pride of India Award 2014,” at a gala function held on 22 nd of September 2014, at the ‘Ryburn House’, US Congress Washington DC. The “Pride of India Award” honours leaders from a crosssection of endeavour, ranging from business and enterprise, to art and culture, for outstanding contributions made to their respective industry sectors, domains, fields of activity and to their communities. Mr. Vikas Gupta, Joint MD of Earth Infrastructure, a company engaged in Infrastructure sector in New Delhi/NCR, India, was one among the 2014 “Pride of India” honorees, who accepted the award during a reception at the ‘Ryburn House’ US congress

Washington DC,USA on the occasion of the 12th Foundation Day of the Indo-American Friends Group. Other prominent awardees of ‘Pride Of India Awards 2014’ included Mr. Joseph Crowley – NY Congressman, and Chair US India Congressional Caucus in the US Congress, Mr. Deepak Obhrai – Member of Parliament and Parliamentary Secretary with the Government of Canada and Ms. Renu Khator – Chancellor Houston System of Universities, USA. “Pride of India Award” honors leaders from a variety of business and cultural sectors for their outstanding contributions to their respective industries and communities. Each year, the Pride Of India Awards presented to trailblazers from a variety of industries. Nominations are submitted by members of the Indian communities, Indian Diaspora and Indian-American communities n

October 2014 OBSERVER DAWN

Cover Story

Ghaziabad

Making Strong Pitch for Smart City

Adjacent to capital city Delhi and real estate hubs of Noida and Greater Noida, Ghaziabad abounds in several residential and commercial projects and still falls short of being recognized as a modern city. However, recent development activities propelled by massive investment on infrastructure and connectivity are transforming the city. Ghaziabad Development Authority(GDA), the nodal agency tasked with planning and development, in synergy with some established developers and real estate stake-holders, is scripting a new narrative to create a paradigm shift in urban development .

OBSERVER DAWN October 2014

Realising that there are challenges galore to upgrade city, Mr. V. K. Goyal, Chief Engineer, GDA, was optimistic and said, â&#x20AC;?We are prepared to use innovative engineering technology to make Ghaziabad a smart city in Delhi-NCR.â&#x20AC;?

Under the dynamic leadership of Shri Santosh Yadav, GDA Vice-Chairman, Ghaziabad is poised to usher in a new era of town planning which will not only address the housing problem but also be in accordance with environmental and civic needs of the city.

October 2014 OBSERVER DAWN

Cover Story

Project Name

Zonal Development Plan-Zone-1, Ghaziabad

OBSERVER DAWN October 2014

PROPOSED LANDUSE MAP SUPERIMPOSED ON GDA SCHEME Client: Ghaziabad Development Authority, Ghaziabad Consultant: Rudraabhishek Enterprises Pvt. Ltd. 820, Antriksha Bhawan, 22 K.G Marg CP Delhi-110001

October 2014 OBSERVER DAWN

Raj Nagar Cover Story

ith property prices in tier I cities going through the roof, prospective buyers and investors have no choice but to look out for a viable alternative. Proximity with Delhi has already given Ghaziabad a vantage point vis-à-vis other cities, resulting in emergence of Noida and Greater Noida. However, thanks to stupendous growth in infrastructure in the form of connectivity, these two property hubs became out of reach for a majority of people. It is to bridge the gnawing gap that birth of yet another alternative region — Raj Nagar Extension — was spotted and now being developed. One place that is standing out in terms of a good liveability index is the Raj Nagar Extension area in Ghaziabad. Most of the projects in this area were started in 2008-09 and a large chunk of these houses are ready to be delivered. The developers working in the area inform that out of the total 50,000 units (approx.), around 3,500 have already delivered. Raj Nagar Extension is a one stop destination for a wide band of middle-class end users, offering choices ranging from a 1BHK for Rs 12 lakhs to a 4BHK for less than 50 lakhs, with amenities like entertainment zones, shopping arcades, and jogging tracks thrown in.

OBSERVER DAWN October 2014

The USP of this area is an adjoining perennially green and unpolluted belt, which is going to remain undisturbed as Ghaziabad Development Authority has declared 500 acres along Hindon River as a green belt and banned all construction activity in the area. Raj Nagar Extension is centrally located, in the vicinity of posh localities of Ghaziabad, yet buffered from the hustle and bustle of the busy township. Thus, the location offers an ideal and serene setting for a pollution-free living in a well-planned place with excellent connectivity to areas like Delhi through a proposed Metro link, and to Noida & Greater Noida by way of the proposed expressways. As soon as one crosses Hindon River, while coming from Delhi, the road to the left leads to Raj Nagar Extension, with work on this road almost complete. G D Goenka International School is also located on this road. And, this is not the end to it! Soon, the area will be connected through a six-lane expressway connecting GT Road with NH-58, which eventually goes straight to Dehradun via Meerut. The Metro line is also on the verge of knocking the doors of Raj Nagar Extension, which will surely help residents and transform the area. The place is 25km from the Central Business District of Connaught Place and only 12km from Delhi border. A proposed flyover and road from Hindon Airbase will offer

Extension express connectivity to Delhi via Wazirabad. As per the latest policy development, the proposed Delhi-Haridwar highway will also pass through Raj Nagar Extension, further enhancing connectivity of the area. A girl's hostel, a vocational college, and a training institute have also been announced in vicinity of Raj Nagar Extension by the UP government. Work on these projects has already begun and will accelerate development in the area. Today, among the important places to invest in, Ghaziabad's National Highway 58 is the most sought after. This stretch has been seeing a lot of development and investment potential. For any person who is looking out for an affordable house, this stretch promises a lot. Many developers are coming out with projects on this stretch to meet the burgeoning demand of the middle class.n Observer Dawn brings in a comprehensive story on the ongoing projects by developers as per policy and planning by the nodal authorityâ&#x20AC;&#x201D;Ghaziabad Development Authority(GDA) in the Raj Nagar Extension on NH-58 and highlight steps taken to make it as another real estate destination in Delhi-NCR.

October 2014 OBSERVER DAWN

Cover Story

Mr. Vijay Jindal, Chairman SVP Group

SVP Group Where Everyone Enjoys Good Living

OBSERVER DAWN October 2014

leading builder of the city, SVP Group has constructed and sold several residential & commercial projects successfully around Ghaziabad. The Group has played a major role in putting foundation of infrastructure development in Indirapuram. Started as Ghaziabad-based construction company, it has not just contributed real estate development but is also redefining quality in living standards and building the foundation of a stronger nation. The company has interest in different verticals of construction including education and hospitality industry along with residential & commercial projects. Mr. Vijay Kumar Jindal, Founder & Chairman SVP Groups is a very enthusiastic individual. He has a very strong sense of responsibility, towards society especially the under privileged. On the professional front Mr. Jindal has been a trail blazer in developing Group Housing and Township projects. He has added uncountable feather to his cap by building extensive Shopping Arcades and Malls that would provide retail, entertainment, leisure and shopping avenues. Mr. Jindal talks in detail about his real estate venture, Raj Nagar Extensionâ&#x20AC;&#x2122;s potential as a housing hub and the present outlook.

Excerpts:

When did you start your real estate journey?

We stepped in 1992 in real estate industry. Keeping the philosophy and vision of SVP Group in focus we have started our journey and always focus to give what people expecting from SVP Group.

While selecting the area mentioned here, what did you keep your mind â&#x20AC;&#x201D; logistics, infrastructure or demand?

While launching any project in the area, we always look the connectivity of the area from main roads. If the area is easily approachable people can think on it and even try visit at least once. However infrastructure and demand is also important as much as connectivity. Because if our potential buyers has interest in that area, than we can attract them with project offers.

Real estate outlook is poised for a massive growth. Now it appears that developers are finding it easier to mobilize capitals. How the funding for projects will be arranged?

October 2014 OBSERVER DAWN

Cover Story

After formation of stable government real estate looking forward for sustainability. We are hoping an easy and transparent financial mobilization in the sector. Past few years data shows worst years for equities. However, after a positive sign for FDI government has shown a new path of investment in real estate industry. It will create opportunities for developers to exit commercial real estate projects and will create a new investment vehicle through which smaller investors can gain exposure to income generating real estate assets. We are of the view that the government shall also stabilize the home loan interest rate to cater to the affordable housing needs of the home seekers.

Raj Nagar Extension (RNE) scores on being an affordable location that enjoys proximity to Noida, Ghaziabad and Hindon River Green Belt. With the new flyovers coming up, the locality is gradually enjoying good connectivity with NH-24 and the Grand Trunk Road. Raj Nagar Extension is one place in National Capital Region that is standing out in terms of home buying. Many projects were started in 2007-2009 in which most of them are ready to set free. It is better planned city of Delhi / NCR. Construction of a six-lane expressway and the Metro line has already started. Even though the prices are witnessing an upward trend, the area is still very affordable and offers a good option for investment for the middle end users. Connectivity to this place will further improve with the construction of the third bridge over Hindon that is underway now.

What is the target group and who is the main beneďŹ ciary, i.e. service class, lower income group, low budget, luxury class etc?

The motto of SVP Group is always to deliver what people dream. We never define our target group. However instead, we always focus to deliver what is in demand. We delivered both kinds of low budget and luxury class projects to help people to shape their sweet homeâ&#x20AC;&#x2122;s dream. And when home buyers have all the expected qualities in the project that we offer, they never quit us. We always all set to fulfill their requirements with a mark on quality.

How do you distinguish yourself from others? What is the USP of the company?

As SVP Group, we are not here to set competition for other industry runners. In stead, we put our focus towards deliver our best with transparency and given deadlines. We always believe to give our customers what we promised. n

OBSERVER DAWN October 2014

Project Details

Do you agree that the area has potential and requisite infrastructure to emerge as yet a viable alternative for real estate activity in NCR?

Residential

Doodeshwar Apartments, Ghaziabad New Panchvati, Ghaziabad Krishna Enclave Ghaziabad Parkview Apartments, Ghaziabad Krishna Vihar, Ghaziabad Krishna Kunj 1 & 2, Ghaziabad Krishna Apartments, Ghaziabad Krishna Residency, and Krishna Enclave, Ghaziabad Gulmohur Enclave Nehru Nagar III, Ghaziabad Gulmohur Tower Chiranjeev Vihar, Ghaziabad Gulmohur Green PH I & II Mohan Nagar Gulmohur Garden PH I, Raj Nagar Ext.

Commercial

The Opulent Mall, Ghaziabad Shoppers Square, Raj Nagar Extension Current Residential projects Gulmohur Garden PH II, Raj Nagar Extension Gulmohur Green PH III, Mohan Nagar Gulmohur Residency, Indirapuram Villa Anandam PH III, Meerut Road

VVIP Making Sense V

of a Luxury Living

For those who are longing to live in a peaceful environment with all luxuries, VVIP project remains the first and the last choice.

Mr, Praveen Tyagi, CMD VVIP Group

ibhor Vaibhav Infrahome Pvt. (VVIP) Ltd., a household name in Delhi-NCR, has brought in VVIP Addresses in Raj Nagar Extension. As promised by the company, the project carries with it the real meaning of a home address where one can enjoy life full of recreation and relaxation in a conducive atmosphere. Whether it is an exclusive membership at Heritage club and luxurious spa, home owners get it all. On the radar of housing development for several years now, Raj Nagar Extension in Ghaziabad has, of late, emerged as an epi-centre of growth thanks to unprecedented development spearheaded by both Ghaziabad Development Authority (GDA) under the Ghaziabad Master Plan 2021 and builders, who are doing tremendous work in this region. Equipped with all approvals from the concerned authority and financial institutions, the strategically located projects in Raj Nagar Extension have already attracted overwhelming response from buyers and investors. For a wide band of middle class end-users, with choices ranging from a 1BHK to a 3BHK, which offer amenities, like entertainment zones, shopping arcades, and jogging tracks, Raj Nagar Extension is the only destination. Geographically, a part of Ghaziabad district, it is strategically located to two National Highways - NH-91 (GT Road) and NH-58 (Meerut Road, which pass through it. As the traffic density on these roads is very high, planners and agencies were convinced to build a mini, six-lane Expressway, which will link NH-91 to NH-58, bypassing the high traffic density area of Ghaziabad. It is heartening to note that around 30 developers in the region have formed Raj Nagar Extension (NH58) Builderâ&#x20AC;&#x2122;s Association. The move is to make a united effort to develop the area for the people. In a very short span, it is poised to become one of as the most well- planned urban landscapes in the NCR. As far as connectivity is concerned, the area has high connectivity with Delhi as well as Noida,

October 2014 OBSERVER DAWN

Cover Story

Ongoing Projects at Glance VVIP Addresses: VVIP Addresses brings in the most luxurious apartments with world class infrastructure. It is ready for possession. Work on VVIP Villas and VVIP Assets, the two masterpiece projects, located on most promising location of 45 Mtr Road of Raj Nagar Extension, will commence soon. VVIP Homes: Construction in full swing VVIP Style: Construction in full swing

Generational shift: Mr. Vibhor Tyagi with his father

OBSERVER DAWN October 2014

Greater Noida, Vasundhara, Indirapuram, Vaishali Meerut and Hapur. VVIP’s project brings the luxurious apartments with world class infrastructure. Magnificence and grandeur is the first impression one can get in the first glance of VVIP Addresses. The landscaped surrounding is breath-taking. This project is being developed under the guidance and vision of Mr. Praveen Tyagi, CMD, VVIP, a bright young professional with a clear perspective to bring in the finest infrastructure for the residents of India. For the last 10 years or more, VVIP has been known for developing world class urban development infrastructure for central and State governments. These include roads, sector development water line, sewer line, sewer treatment plant and lots more. Every project has propelled VVIP's image further and further into being known as a developer with the commitment to deliver only the very best in quality. With every project, their vision comes more and more alive. About his landmark project, Praveen Tyagi, said, “VVIP Addresses’ site witnessed the presence of International Fraternity in the past quarter; engineering students and Faculty from Munich University (Germany) along with the esteemed Faculty of Delhi College of Engineering came down to VVIP Addresses to understand the quality of construction and technology being used in the construction projects of developing countries. Further, Equiwings Sports, in association with Equestrian Federation of India (EFI) & Equestrian Association of UP (EAUP), hosted the Award Ceremony for their Horse Show on VVIP Grounds hosting the guests from 10 countries—India, Britain, Canada, South Africa, Australia, Oman, Lebanon, Pakistan, Sudan, Kazakhstan.” Mr Tyagi added, “Further, we want our residents to live like a VVIP in VVIP Addresses. To ensure this we have added a modern amenity – “Garbage Chutes.” This will enable the residents on every floor to dispose off their garbage bags through a shaft which will be located on each floor. This will ensure an odourless staircase, corridor, lifts and will help to maintain a clean, hygienic and trouble-free environment in the society.” His confidence comes from the fact that within months of launching the projects, buyers and investors were queuing to own a slice of space in the area and the response is growing day by day. The company is building up and consistently maintaining the pace of the project. Of course, buyer and costumers can witness the development and output onsite, where the construction is in full swing. Mr. Naveen Tyagi, Director, Sales and Marketing, said, “We have appointed renowned architect, structural consultants and construction agencies. Every structural design is being vetted by IIT Delhi and then again it is proof checked by experienced and competent structural engineers in order to get the foolproof earthquake-resistant design and only after the series of quality check, it is implemented at our site. We have proactively initiated all the measures to control all the initial hiccups and teething problems and now the construction work is going in full swing and work has commenced almost on all blocks and the progress is at different stages and we are committed to give possession to our entire customer on the announced date(s). Needless to say, with developers like VVIP scripting new narrative in real estate activities, days ahead are really achche din(good days) for buyers and home-seekers in the region. n

s sident e r r u ant o n “ We w ike a VVIP i ensure l to live ddresses. To modern is a A VVIP have added Chutes.” Th e y this w – “Garbage nts on ever e ty ameni ble the resid eir garbage e a th will en dispose off which will b n t o floor t ough a shaf . This will e r r bags th on each floo ircase, corri n ta located odourless s p to maintai l e sure an s and will he trouble-fre t d dor, lif hygienic an ociety.” s , a clean ment in the n enviro

October 2014 OBSERVER DAWN

Cover Story

LandCraft Developers Pvt. Ltd.

“We will Grow Keeping our Values Intact” —Mr. Manu Garg, Director, LandCraft Developers Pvt. Ltd.

andCraft, one of the most trusted names in the Indian real estate sector has launched three new towers at its distinguished River Heights project. Packed with luxurious amenities and provisions, residential units in these towers are state-of-the-art creations in every way – right from the aesthetics to space planning to utilization of natural light. One look is all it takes to fall in love with them! Strategically located at Raj Nagar Extension, LandCraft River Heights apartments offer a magnificent view of pristine greens while ensuring close proximity to Delhi and well connected with NH58. Donning the Mettle Mr. Manu Garg, founder Director of LandCraft Developers Pvt. Ltd., has been devoting his core expertise for the last two decades in Finance and Management of the Garg Group, a diversified business house in the field of Publication, Education, Iron & Steel and Real Estate. An IMT–Ghaziabad graduate, Mr. Garg manages his important portfolio in CREDAI as well as in regional CREDAI NCR (RNE) besides handling the regular operations of his own business group. While he is strengthening CREDAI NCR wing as Vice-President for almost a year he emphasized in making his dream Raj Nagar Extension as an attractive destination for investors and end users. As the President of CREDAI, NCR (RNE) he has formulated various innovative media plans with his fellow members.

Mr. Manu Garg shares with us some of views related to real estate development. Excerpts:

When did you start your real estate journey?

The journey starts with the inception of River Heights in 2006. Let me share the Philosophy, Goal, Circumstances and Challenges involved in the decision of kickstarting the real estate arm. The Garg Group is a well diversified and running various businesses successfully in the region for over five decades. And in the core of all the activities things remained unchanged are the Group’s Philosophy i.e. ‘NIYAT GAIL BARKAT’ and the zeal of start-

OBSERVER DAWN October 2014

ing new ventures. Indian Real Estate Scenario in 2006 and Challenges: Year 2006 was part of historic 2002-2007 real estate boom. Record number of projects were launched and sold during this period. Real Estate Developers in India grew multifold. Land and property prices skyrocketed and many developers went for public issue. With liberalization of foreign investment regulations, International investors invested billions of dollars in Indian real estate sector. So Circumstances were real favorable and we opted Raj Nagar Extention as starting point because it was in Ghaziabad and real close to Delhi. Challenges involved in starting real estate for us were very similar to the challenges involved in starting any other business.

While selecting the area mentioned here, what did you keep your mind — logistics, infrastructure or demand?

We studied the Government policies/acts, Master plan. Title with the help of respective experts very closely and also visited the present site several times to ensure the proposed lifestyle, which includes every thing such as logistics, infrastructure etc.We find the site suitable to our plans.

The projects your company has started… and when will these be completed?

The Phase 1 is fully habited and with over 760 families are staying happily. All aminities like club house, kids play area, Play school, landscaped gardens and swimming pool are fully functional. The best part is that it is built on two side open plot with 45 meters road on both the sides. The Construction of Phase 2 is in full swing.

Project Snapshot: LandCraft River Heights • Property Type • Location

: :

• Price Starting From • Bedroom • Area Range • Possession

: : : :

Residential Apartments Raj Nagar Extension, Ghaziabad Rs. 23.65 Lac 1, 2 & 3 BHK 718 - 1665 sq. ft. Oct – 2015

What is the concept behind your company (who is the main beneﬁciary, i.e. service class, lower income group, low budget, luxury class etc)?

LandCraft is a Value based System driven company which believes in empowering its team to create value for its stakeholders i.e. Buyers, Investors, Vendors etc. We are developing mix of products aiming affordable housing at Raj Nagar Extn., Lifestyle homes at NH 24, Quality homes for Lower Income segment at Dinesh Nagar and Luxury Sports Residencies in Gurgaon

How do you distinguish yourself from others? What is the USP of the company?

‘Solid Foundation’ is word makes our offering different. Fist of all the Garg group has more than fifty years long presence in the region plus we are well diversified in various fields i.e. Education, Publication, Iron & Steel, Art, Skill Development and Real Estate. The use of latest/appropriate technology and quality control methods supports the claim fully.

Mr. Manu Garg, Director LandCraft Developers Pvt. Ltd.

Real estate outlook is poised for a massive growth. Now it appears that developers are ﬁnding it easier to mobilize capitals. How the funding for projects will be arranged? For purchase of land, Developer has to arrange fund from his own sources whereas for construction; companies with good credentials can take finance from Banks and NBFC’s

Do you agree that the area has potential and requisite infrastructure to emerge as yet a viable alternative for real estate activity in NCR?

Raj Nagar in terms of infrastructure will be one of t he best developed area in entire NCR in next 2 years to name a few :  elevated road from UP Boarder to Raj Nagar Extension will be completed by 2016,  Metro station would be available by 2016,  an international cricket stadium of more than 100 acres reserve city forest are some of the initiatives which will make this place much better place in the entire NCR in terms of commuting and life style.

5 years from now, how do you see your company will be?

As I said, the growth is going to be system driven which will create value for our stakeholders. We extended our presence beyond the region and in future too we will focus new markets apart from regional projects but the most important fact is we will grow keeping our values intact.

The new government at the centre has started in positive way. What supports do you expect from the government?

The New Government is aiming to convert our Nation as World’s new manufacturing hub and inviting multinational companies to start their units in India. It will surely generate jobs and thus related movement where people migrate from villages to cities to metros will also see a boost. So in a way it is favorable for the real estate industry too. I feel the related laws, rules and regulation should be more universal across the Nation and frequent changes in laws should be avoided.

What is your message for the customers/investors/buyers?

Today Customer/investor is smart enough to understand the market place and knows most of technicalities. But it is always good to check all the details, documents, background etc closely. n

October 2014 OBSERVER DAWN

Cover Story

Raising the Bar of Luxury Living MCC Signature Heights

“Signature Heights” will be the cynosure of excellence & affordable luxury. CC Group, a prominent real estate and construction company, has successfully collaborated in delivering several mega-structures both in public and private sectors. Currently, the Group is handling an area of over 20 million sq. ft. at various stages of construction in Delhi-NCR. The Group comprises of a number of companies engaged in various civil construction works and real estate development. The major companies of the group are namely: Modern Construction Company (Delhi), MCC Developers Pvt. Ltd. and Annika Promoters Pvt. Ltd. The firm was established by the great visionary, Late Mr. M.K. Jain in the year 1976 and it was registered as M/s Modern Construction Company (Delhi) in 1987. Over the years, the MCC Group has worked for the various reputed clients which includes Aggarwal Associates (Aditya Group), Central Public Works Department(CPWD), CHD Developers Ltd., Eldeco Infrastructures & Properties Ltd., Emaar MGF Land Ltd., Jaiprakash Associates Ltd., Prateek Group, just to name a few. MCC's stupendous success could materialise on account of its vision of delivering quality services and receiving unflinching support from customers. Mr. Nirmal Jain, MD, has rightly summed up the Group's core strength, adding, “We, at MCC Group, have always followed that the Customer is the King and we value their expressions of interest which inspire us to meet

OBSERVER DAWN October 2014

all their expectations which they think should be in their dream home. We believe Quality Customer Service includes customer satisfaction after the possession of the apartment as well. At this point, if we gain customer wows & can make them proud of their investment then it means that we are at the right place. This moment, becomes “The Moment Of Truth”. I personally believe that we must always update our knowledge and refresh our work experience with latest technology of construction industry to enable our buyers and investors to get maximum benefit of the same & live with comfort. As a matter of fact, our relationship with our buyers and investors is built through trust, understanding and transparency and is the reflection of our past reputation, services & goodwill." In the residential segment, MCC Group has already scripted a glorious chapter by successfully delivering “Signature Homes", a landmark residential project built in a consistent and endless effort. According to Mr. Manish Jain, the Group Director, “Signature Homes”, which has been occupied by most of its buyers, has generated tremendous response among end-users, investors and up-market as a whole."

Convergence of Excellence and Luxury

Now, “Signature Heights”, another ambitious project which is the epitome of excellence & luxury with affordability, was launched at Raj Nagar Extension. Market is abuzz with the pos-

Project Snapshot Name of Project Area No. of Units Size Flats Price Date For Possession

: : : : : : :

Signature Heights 4 acres 550 900 to 1500 sq. ft. 2 and 3 BHK Rs. 3150 per sq. ft. 2017

itive response that this project will set a new benchmark in real estate development in the area. Mr. Manish Jain added that with the launch of “Signature Heights”, the group is all set to create another milestone in the world of affordable luxury living. "Signature Heights", at one of NCR’s most prominent residential destinations, Raj Nagar Extension, has already started creating waves in the real estate market. This standalone project offers more than 550 affordable luxury apartments of 2 and 3 BHK specifications to choose from. Apart from the routine features, many latest and innovative technologies have been incorporated to enhance the lifestyle and living comfort. It is the first ever project in Raj Nagar Extension that offers a golf putting range in its back courtyard. All the desired amenities like Schools, colleges, shopping complexes, banks, vegetable market, plight of government and private vehicles etc. are within the neighbourhood making it an even better reason to choose Signature heights as your next home. Undoubtedly, “Signature Heights” is poised to become a new address of luxury and lifestyle at NH-58, Raj Nagar Extension. In a freewheeling conversation with Observer Dawn, Mr. Manish Jain shares his views on fundamental principles which guide MCC Group to scale new heights on regular intervals.

Excerpts: Why did MCC Group select Raj Nagar Extension to develop some of the ﬁnest residential projects?

Our group's focus on Raj Nagar Extension on NH-58 was to develop affordable luxury living for those who were looking for a serene and peaceful environment in Delhi-NCR. The area is well connected to Ghaziabad and Delhi and lot of work is being done to upgrade connectivity by enhancing the reach through Metro and elevated transport corridor system. In addition to NH-58, broader roads are being made accessible to this area. Thanks to all round development, buyers are making their choice to live here. Cost-wise also, Raj Nagar Extension appeals the home-seekers. The overwhelming response to Signature Homes and interests shown in Signature Heights is testimony to this fact.

Share in brief some milestones that MCC has received so far.

MCC is basically a premier construction company and since its inception in 1976, we have developed several landmark projects both from government and private entities like Vigyan Bhavan, IAS Academy, Mussoorie and DPS's various schools at Faridabad, Noida, Greater Noida and RK Puram.

What's your target group -- investors or end-users?

We make projects for the end-users who are aspiring to have their own dream homes at relatively affordable prices. Mostly buyers from middle segment group see here the right options to live in as permanent occupants.

Mr. Manish Jain & Mr. Nirmal Jain, MCC Group

There is common complain that developers sell dream but when buyers occupy flats, they are shocked to find their dream shattered and then they realise that flats don't contain the features which were promised when the project was launched. Your comment!

Certainly, this shouldn't happen. We always make it sure that our projects carry all features. MCC Group delivered Signature Homes which carried green-certified products and other specifications no other developers have done so far. Signature Heights will be a unique project where aestheticism and modernism will go side by side. Till now, we have not received any complain from our customers.

Since the new government came at the Centre, do you think Indian real estate scenario has changed?

It will definitely change. Under the Modi government, attempts are being made for 100% FDI in real estate. Then there is new rule for the much dreaded environment clearance which will also bolster the housing segment. A draft is being finalised according to which no clearance is needed if the project is within a stipulated area. This move will provide relief to majority of builders who develop in relatively smaller land bank.

Any message to new developers or those associated with real estate development.

You should do clean work with accountability. You must deliver what you promised to your customers.

What's the USP of MCC Group?

Quality services and timely delivery form the part of our USP. That's why we have unflinching support from our clients and customers. n

October 2014 OBSERVER DAWN

Cover Story

Fortune Residency

â&#x20AC;&#x153;We are committed to Timely Delivery

without Compromising on Qualityâ&#x20AC;?

ortune Residency offers 2/3 BHK Apartments in Raj Nagar Extension, Ghaziabad -- an upcoming residential hub which is well connected with Delhi & Noida, Greater Noida, and Vasundhara-Indirapuram-Vaishali. With its well planned infrastructure along with outstanding green landscaping, Fortune Residency offers an immaculate lifestyle that everyone aspires. Units are available in 945-1150 sq. ft. and 1350-1690 sq.ft in 2- and 3-bhk apartments, respectively. Mr. Rakesh Aggarwal, Managing Director and Mr. Neeraj

OBSERVER DAWN October 2014

Mittal, Excutive Director of VasuInfrastructure Pvt.Ltd share some details about Fortune Residency which is one of the best rated projects in Raj Nagar Extension on NH 58 .

Excerpts:

What motivated you to launch Fortune Residency in Raj Nagar Extension, neighborhood of Ghaziabad?

You know there is huge demand for affordable housing. This motivated us to launch project which can give home to buyers within their means. Fortune Residency offers attractive op-

Mr. Rakesh Aggarwal and Mr. Neeraj Mittal, VasuInfrastructure Pvt. Ltd

tions for those who want to make it their permanent living space in a conducive atmosphere.

When did you start working on this project and what is the response from buyers?

We started construction activities in 2011 after taking into account all factors which make it an ideal place to live in. As the project developed, buyers mostly end-users started booking their dream homes. We have already started giving possession on time as timely delivery is guaranteed to buyers who have reposed faith on us while pouring in their hard-earned money. Seeing the occupancy level, we could boast of getting tremendous response from buyers.

What are the salient features of Fortune Residency? Once ﬁnished, will this project set a new benchmark in residential developments?

We are firm on no escalation of prices even if it means putting own cost. Branded items and materials are used in building the project. Group Housing is loaded with all amenities and facilities like certified earthquake-resistant structure; lifts by OTIS or equivalent in each block; Housing Loan facility available from the leading financial institutions; 24x7 water supply;24x7 security with intercom; power backup with covered car parking on payment basis. Yes, it’s already set a benchmark in housing segment in this area.

To which section the project is targeted -- Aﬀordable, medium or high income group?

It is targeted to affordable and medium-income group. Without compromising on quality, design and technologies, Fortune Residency is appealing to all.

At a time when the Central government is calling for building the "House for All" within a stipulated time, do you think your project is contributing to bridging the shortage?

It is heartening that government is seriously pushing for building “House for All”. Our project is contributing absolutely to this housing agenda and in future, too, we will ensure that everyone’s basic need of home is fulfilled.

Is there any expanding plan by Vasu Infrastructure Pvt. Ltd? What’s your expectation from the government?

We are also expanding in Tier-II and Tier-III cities and are working on modality like searching for logistics and acquiring land. Both the directors retreated that this area is becoming the hub of all type of residential and commercial activity . Fortune residency has a moto for budget housing having all income groups. n

October 2014 OBSERVER DAWN

Cover Story

“Our Musical

Theme Based Proj e c t s will C

reate a New Benchmark in Dev elopment”

L To R (Sitting): Mr. Umang Arora and Mr. Anil Goel L To R (Standing) : Mr. Dujender Bhardwaj and Mr. Amit Chaudhary

OBSERVER DAWN October 2014

r. Dujender Bhardwaj represents the new league Mr. Dujender Bhardwaj represents the new league of entrepreneurs who believe in implementing new ideas and concepts to keep the organization on the right path of accomplishment. Mr. Bhardwaj is a well known person in the field of real estate. He started his carrier as a part of sales team in one of the realty majors of Delhi-NCR. He showed exemplary salesmanship acumen in selling the projects. After analyzing the real estate scenario in DelhiNCR, Bhardwaj jumped into the world of business and started his broking firm called JMD Homz in partnership with Mr. Jitender Grover and Mr. Manoj Tyagi. JMD sold maximum projects in the then upcoming area such as Raj Nagar Extension apart from other areas in the NCR. Mr. Bhardwaj worked with various developers and during his broking stint he came out as the

October 2014 OBSERVER DAWN

Cover Story customers’ person. By working in close association with real estate developers for almost 12 years, he gained insight into the nitty gritty of real estate market with ABCZ and Palm Infra. In ABCZ has three directors, Mr. Umang Arora, Mr. Amit Choudhary and Mr Bhardwaj himself. Palm Infra is led by Mr Anil Goyal, Mr. Amit Choudhary and Mr. Bhardwaj. Now, on the cusp of establishing himself as an eminent developer, Mr. Bhardwaj talks in detail about the projects and their USP besides delving into discussion about real estate scenario. Excerpts:

Which are the new projects you are developing?

Rhythm County in Noida Extension and Marine Suites in NH24, Ghaziabad are the two upcoming projects. These are musical theme-based projects where architecture and design are made aesthetically keeping in view musical instruments like guitar etc.

Taking all projects together, how do you position your company in real estate market?

See, we are relatively new comers as developer but aspire to bring in projects which will position us well in the market.

What’s the core strength of the company? Who are at the helms of aﬀair?

I have expertise in marketing, promoting and developing the real estate. Mr. Amit Chaudhary and Mr. Anil Goel are leading the administration and construction section and guiding a professionally managed team. With the strength of team and our commitment to offer musical theme-based projects, we feel that we can emerge as a brand company. In 3-4 years, we will be ranked as recognizable face in real estate.

Real estate is abuzz with fresh activity on making smart cities as envisaged by the Central government. How do you think you can contribute in creating such cities

across the country?

Of course, the government has made the big announcement for urban growth and we are open to contribute as and when such opportunity comes.

What diﬀerentiates your projects from others?

Ours is theme-based projects which keep us distinguished from others. There are very few who develop such type of projects in this region.

In a cut throat competition where several realtors are engaged in developments, how do you plan to bring in projects successfully?

As we are not facing any problems on resources, we will deliver projects on time and this will, ultimately enhance our position among buyers and investors. Our success lies in giving possession on time.

On regular intervals, developers face the ﬂak for not delivering projects on time and sometimes they resort to manipulation leaving the buyers hapless at their mercy. How this situation can be handled?

Despite the fact that real estate is not a full-fledged industry and is largely unorganized, things have changed a lot and most of us are doing our job in transparent way. Except a few, we all follow rules as laid down by the concerned authorities. Of course, authority should see and monitor any lapses and accordingly issue direction.

Overall, how is India’s real estate scenario? Is it still facing problem on liquidity or investments are not pouring in?

It will take sometimes, probably a year, after government’s initiatives will start impacting. Once investments pour in, situation will see a drastic change and it will be a win-win situation for every stake-holders. n

L To R: Mr. Dujender Bhardwaj, Mr. Anil Goel and Mr. Amit Chaudhary, Directors Palm Infra Group OBSERVER DAWN October 2014

KM Residency K

.M. Group has brought in K. M. Residency in pollution free environment in Ghaziabad. The company is a prominent name on the real estate radar of DelhiNCR. In the business of real estate development for the past 25 years, K.M. Group has successfully completed many residential and commercial projects in Vaishali, Kaushambi, Shalimar Garden and other parts of Delhi-NCR. The group is known for its commitment to quality, providing cost-effective solutions, timely possession and creating value for its customers in every sphere. The group has been involved in diversified activities and is currently developing many residential and commercial projects in Delhi and NCR. Inspired by the ethos and values of our armed forces, K.M. Residency embodies the same set of values: discipline, integrity, peace, comforts, timely delivery and latest technology which makes it an extraordinary place to live. Located at Raj Nagar Extension and flanked by the river Hindon; It's a dream living where life comes in full circle and where luxury meets

Mr. Harendra Khokhar, Director SRB Group

affordability. K.M. Residency is surrounded by the largest green belt within the NCR and provides a sophisticated, healthy and clean living ambience. With state-of-the-art amenities and an excellent location, K.M. Residency lets you live in serenity with honor. n

Project Details:

Location Price

: Raj Nagar Extension, Ghaziabad : Rs. 30.84 Lac(s) - 40.68 Lac(s) (Price per sq.ft.: Rs. 2,625) 2, 3 BHK Multistorey Apartment : 1175 Sq. Ft. - 1550 Sq. Ft. : 3 Acre : 5 : Jan 2011 : Under Construction

Covered Area Total Area No. of Towers Launch Date Status â&#x20AC;˘ Expected Possession : Dec. 2014 Mr. Mukesh Singh, Project Head SRB Group

October 2014 OBSERVER DAWN

Cover Story

Raj Nagar Extension

A Perfect blend of

Affordability, Connectivity

& Luxury!

10 Minute drive from Delhi border and you will reach to Raj Nagar Extension, A locality offering superb connectivity to the national capital is all set to offer you luxury, affordability and connectivity at same time.

Raj Nagar Extension is one of the planned cities of Delhi NCR. Its decent civic infrastructure and housing units available at affordable prices make it one of the preferred areas in the city. Raj Nagar Extension has occupied the third spot in the top ten preferred localities in Ghaziabad. Raj Nagar Extension has registered a rise of 88 per cent in property values in the last three years. According to PropIndex, the quarterly India Apartment Index report of Apr-Jun 2014 quarter, the current average value prevailing in the locality is Rs 3,200 per sq ft, which was Rs 1,700 per sq ft in Apr-Jun 2011-12. Growing demand for properties and good connectivity with key areas of Delhi NCR are reasons for prices to appreciate in the area. Closeness to New Delhi is the main driving force for growth in Raj Nagar Extension. The place is 25 km from New Delhiâ&#x20AC;&#x2122;s central business district, Connaught Place, and only 12 km from Delhi border. With the soon-to-be-enhanced connectivity via the Metro project and increased livability quotient, end users prefer to have a home of their dreams in Raj Nagar Ext. that fit their budget. Affordability is another factor that drives demand for housing here. As compared to Vaishali and Indirapuram, the property values here are still affordable. People see high scope of appreciation. Looking at the affordable values, the area is one of the ideal destinations for investment, especially for the mid-income groups. Where the area offers property at Rs 3,200 per sq ft, Indirapuram offers properties at Rs 5,200 per sq ft and Vaishali at Rs 5,400 per sq ft. The area is having more than 15 ongoing projects that are attracting buyers.

OBSERVER DAWN October 2014

Mr. Shaleen Singh: Director â&#x20AC;&#x201C; Goldmine Developers Pvt. Ltd.

B.E. (Civil), from MIT Manipal, He has worked with M/s. A. Sharma and Associates for 6 Years as GM (Civil). Capitalizing on his rich experience in the field of construction he co-founded this venture with the mission of offering complete property solutions to clients. As the director of Goldmine Developers Pvt. Ltd. his contribution has been remarkable in the phenomenal growth and success of the organization.

From schools, to recreational zones, shopping complexes and medical aid, Raj Nagar Extension has all the basic amenities within a 3-km radius. Apart from this, the area does not face any issue of water and electricity supply. The proposed 3-lane bridge over the Hindon River at GT Road and widening of the 6-lane road to 8-lane from Dabur T-junction to Meerut T-junction via Mohan Nagar and NH58 are underway. Some of the renowned builders i.e. Ajnara, Gaursons, Divyansh Realtech, VVIP Group have already marked their strong presence with their delivered and ongoing projects. n

" We Confirm to the Highest

Standard of Quality"

harms Castle is set to widen its lead over other in Raj Nagar Extension Very soon, this area will be the fastest progressive location of NCR . In a recent interview with our bureau, he narrated how, in very short span of time, Raj Nagar Extension has turned attractive place to live and he is very thankful to Shri Santosh Yadav, Vice Chairman of GDA, for proposing smart city with the urban ministry.

work is worship and therefore, it is emphasized to get better and better quality in the forth coming projects.

How is your group diďŹ&#x20AC;erent from others ?

Excerpts:

In your opinion , what are the growth prospect s of Raj Nagar Extension in NCR ?

Increasing demand of affordable house from strong economic growth to low per capita income generation demand is always there. We believe no other place is cheaper than Raj Nagar Extension in Delhi & NCR.

Mr. Sanjay Singhal Director, Charms Castle

As we are a professionally managed company which facilitates our entire construction processes to undergo stringent quality parameters, we confirm to the highest standard of quality with the ultimate aim of taking the aspirations and satisfaction of our customers to greater heights. We are headed by a team of quality professionals who are experienced and promise to deliver the best in construction industry. On-time project delivery is another advantage that comes with Charms Projects. n

Do you think real estate market will take high turn here ?

Yes. definitely, this festive season will bring momentum growth in sales penetration.

Share your vision with us.

For Charms India Pvt. Ltd., to construct an apartment is not merely a construction activity, but to achieve faith and support of the invaluable customers. For us,

October 2014 OBSERVER DAWN

Ajnara Grace Ajnara Integrity Cover Story

The two projects Ajnara India Ltd.brought in Raj Nagar Extension on NH-58 have received an enthralling response. stablished more than two decades ago, Ajnara is today a leading real estate developer in the NCR. Known for quality construction and execution, it is one of the first developer to have been certified ISO 9001:2000 in North India. Ajnara’s two landmark projects in Raj Nagar Extension are Ajnara Grace and Ajnara Integrity. It came out with Ajnara Grace which had got completed few years back and sold out too. Families are already residing. It had also completed Ajnara Integrity and it is ready to move in as well. So, the two projects the company came out with are well completed and have received an enthralling response. Mr. Ashok Gupta, MD, Ajnara India Ltd., said, “Raj Nagar Extension at present is a market with huge potential for construction sector. The infrastructure is well in place and the future plans of having metro connectivity, roadways, international cricket stadium, etc. will make sure that this place becomes a name to reckon with in the coming few years.” Mr. Gupta added further,” We build projects that cater to all the segments of the society. At the same time we believe in providing a bit extra to the affordable and low income group segments in order to enhance their styles of living.” While explaining about reasons behind Ajnara’s success, Mr. Gupta said,” Ajnara believes in complete transparency and openness so that its patrons and associates remain well aware of all company policies, payment processes, operations & important information and construction status. As it is believed that there should be a clear understanding between all parties involved to leave no scope for error and confusion.Every Endeavour aspires to bring peace, success and happiness to people associated with it. At Ajnara, every project is planned and executed to bring complete peace of mind to its customers.

Ajnara Integrity Ajnara Integrity offers 2/3/4 BHK Apartments in Raj Nagar Extension. It is location provide the people to settle in the

OBSERVER DAWN October 2014

sirous of settling here. The project offers an option of 24BHK apartments .The site is well equipped with modern day amenities and facilitates all major needs of its residents. The site is well connected by different modes of transportation and is in close proximity of various civic utilities. n

Project Details: Ajnara Integrity Mr. Ashok Gupta CMD, Ajnara Group Delhi/NCR region at a very affordable price.The expanse of East Delhi and western Uttar Pradesh being its centre of operations, Ajnara India Ltd. has effectively completed various projects, both residential and commercial in nature on land acquired from DDA & GDA, through auctions. Ajnara Grace Ajnara Grace is one of the completed residential projects of Ajnara Group. Located strategically in Raj Nagar Extension on NH-58, Ghaziabad, it meets the expectations of people de-

Price Size Plans Possession

: Rs.31.5 Lac to Rs. 62 Lac : 815-1490 sq. ft. : 2-3 BHK : December 2016

Project Details: Ajnara Grace

No of Towers No of Floors Price Size Plans Possession

: 2 : 11 : Rs. 39 Lac to Rs. 42 Lac : 950-1095 sq. ft. : 2 BHK : Ready to move

October 2014 OBSERVER DAWN

Cover Story

Mr. Manoj Gaur, MD Gaursons India Ltd.

Gaursons India Ltd.

Gaur Cascades: A Perfect Living Destination These luxurious homes will lead you to a word of enchanting experiences. aur Cascades’ 2, 3 and 4 BHK apartments come enwrapped in pure Luxury. Immaculately planned with modern living demands in mind, each apartment breathes comfort and convenience. The spacious living room adjoining an elegant dining area, casts a spell of grandeur. The lavish bedrooms with nature inviting balconies exude a rare class and sophistication. Giving a magnificent treat to all senses is the soothing environ of green landscape, shaded pathways and a clam atmosphere. These luxurious homes will lead you to a word of enchanting experiences. Away from the hectic city life, this impressive complex is situated at Raj Nagar Extension. This area is a perfect living destination for people with aspirations for better living, within their budgets. It offers a serene setting for a pollution-free living with its great connectivity to Delhi, Noida and Greater Noida. Along with sound infrastructure, sky high buildings, world class malls, & parks, this well planned city harbors the largest Green belt in NCR. All in all Raj Nagar Extension is a fine living destination where you can find all the luxuries of a city yet be quite distant from its flaws. n

OBSERVER DAWN October 2014

Highlights • Construction work already started after getting all approvals • No hidden super area, calculation of built-up area is on actual basis to maintain transparency with the customers • Low density project, approx. 60% density will be achieved i.e. less numbers of families will be residing in huge area • Separate daily need shopping area • Futuristic project design with separate service area to fulfill future requirements • No Car parking on ground level i.e more space on ground level hence more space for landscaping & safety • Situated in Rajnagar Ext. NH-58, project approved by GDA • ITT certified earthquake resistance building • Model flat ready • No Price escalation for Booked Flat, timely delivery with penalty clause • Housing loan facility from leading banks. Nursery / Primary School within the project • Two tier 24x7 Security with CCTV camera • Club with GYM, STEAM, SAUNA, JACUZZI • Billiards, Lawn Tennis, Basketball, Table Tennis and Cricket pitch with net available

Cover Story

Mr. Vipul Giri, CEO and Vinod Goswami, CMD SCC Group

SCC Group

The Group Focuses to Deliver Quality of Services

r. Vipul Giri is presently holding the position In conversation with us, Mr. Giri shares his view on issues imof CEO. He has been promoter director of the pacting the region: company. He has been traveled his career as a Why are end-users and investors alike moving to Raj Nagar ExManager entrepreneur and now as the CEO tension? of a company is handling overall execution of Under the dynamic leadership of Shri. Santosh Yadav, Vice the company. He has over 15 years experience in construction Chairman, GDA is ready for tremendous growth. Work on war footing has been started into the city developments i.e. and real estate business. His core work of area inwork on the Hindon Bridge has started; RNE Metro cludes execution of whole organization along has already approved. Ongoing development in with as a scrutinizer for the construction site, City Forest, International cricket stadium, highvisioning with the government authorities speed train from Delhi to Meerut has further and further he focuses to market its camade it an attractive region. All these factors pability to deliver hassle free and comwill give surprise returns on their investmitted quality of services to its ments. End-users also occupy homes which customers. His main objective is to have good connectivity from everywhere. provide the best quality to its customer Projects are galore but are they following the without any kind of compromise for any kind of material etc. therefore he green norm? acts as the quality control head. He is As per the GDAâ&#x20AC;&#x2122;s direction, it is mandatory one of the main pillars of the organizafor all projects to get the clearance on environtion and seems to be the powerhouse of talment issues. Thus all builders are working with ent and initiative which are the main the right strategy as per the laws of environment ingredients to make any organization the naministry. n Vishal Katiyar tion leading company. GM, Marketing SCC Group

OBSERVER DAWN October 2014

Shyam Buildwell Pvt. Ltd.

Ready to Serve Luxury

Life Style in Affordable Price

accelerate the limits of excellence through new inhyam Buildwell Pvt. Ltd. (SBPL) is novations and professionalism. To deliver the rapidly growing fast real estate high quality residential projects that meets company established by qualified the international standards. entrepreneurs having vast experience in the field of construcWhat opportunity do you see in Raj tion. Well known for their quality Nagar Extension? commitment to construction and innoRaj Nagar Extension is growing very fast vative designs, company has its own at a large scale. Here, builders have crefleet of architects designers , project exated a bunch of tools and processes that ecuters and other professional team. make it easier for the medium class busiFor last 20 years, it has earned majestic nessmen and professional to take house. name and offers a wide variety of residenWhat size of ﬂat you have and why anytial projects that match needs of all. The one should buy it? group has vast experience into construction in Size of flat begins from 1100 sq ft. to 1500 sq.ft. tomaking number of buildings in and around Rawards 2 BHK and 3 BHK. Shyambabu Sharma jender Nagar , Shalimar Garden etc. and is ready Managing Director, Shyam Buldwell We have taken care of basic amenities and certo deliver in December-15 more than couple of tain special features in most advanced way ; towers in Raj Nagar Extension to their prestigious customers. two side open, semi-modular kitchen, prime location, greenery “Shree Bankey Bihari Sharnam,” an ultra modern high rise, etc. will definitely catch elite customers of western UP where luxWhat strategy do you follow to upgrade ? ury living meets in affordable price with basic amenities. More or less we have our existing customers . On the other Mr. Shyambabu Sharma, MD, Shyam Buildwell Pvt. Ltd., hand, as one of the largest and most successful commercial real shares some ideas with us. estate capital intermediaries in the country, SBPL strives to communicate with potential and current clients and investors Excerpts: thorough basic effective tools like time to time advertisement What objectives do you have as a builder ? in newspapers, email alerts, brochures, and flyers , hoarding To implement best business practices that goes beyond cusadvertisement that demonstrate our capabilities and services. tomer expectations. To establish a new benchmark for the real estate industry by beating high standards,

October 2014 OBSERVER DAWN

Environ

Noida Realty

ent

inistry

Brings Joy to Thousands

With this news, the market sentiments of investors and end-users, who were interested and planning to buy a property in Noida, Greater Noida and Yamuna Expressway, will definitely witness a drastic improvement. uyers of Noida recently got the news that they had been long waiting for; where the Union environment ministry decided upon extending the restrictive zone to only up to 100 mtrs. around the Okhla Bird Sanctuary. With this decision,

OBSERVER DAWN October 2014

20,000 homebuyers whose possession was stuck due to the earlier decision will get a much needed relief. For the same, the central government will soon issue a notification. From now on, no development can be done within a radius of up to 100 mtrs. around the Okhla Bird Sanctuary except in

the north direction towards the Noida toll bridge along the Yamuna. It is being also mentioned that the region up to 1 Km along the Yamuna in the northern direction will be barred from any form of development. At the same time, this will not have any solid impact on the existing area under development. The prohibited area is the marshy land which comes under the nodevelopment zone. The central government will soon put out a draft notification for the public on the decision and search for any objections. After all the objections are resolved, a final notification will be issued and this entire process might take around two months. With this news, the market sentiments of investors and endusers, who were interested and planning to buy a property in Noida, Greater Noida and Yamuna Expressway, will definitely witness a drastic improvement. The draft notification is likely to be presented around the festive season; it will greatly boost the morale of the customers thereby shooting the demand and sales this year. Mr. Ashok Gupta, CMD, Ajnara India Ltd., said “There is a huge sigh of relief in the market amongst the buyers and the

developers. The earlier decision was pretty impractical as it would have gone on to destroy the sentiments completely. Now, since we are approaching the final festive season of the year, the new decision will make most buyers eagerly wait to invest again in Noida and nearby regions”. Mr. Deepak Kapoor, Director, Gulshan Homz, said “The worst impact of the previous decision was that the work got completed and delivery could not be made. As a result, the builder had to manage and maintain every unit and could not charge any penny from the customers. This prolonged judgement has added to the financial burden of both the parties. Now since a new decision is on the way, the upcoming months will be full of demand and sales for the sector”. The decision of NGT barring the Noida authority to provide completion certificates to the developers in the region whose projects were within 10 kms of the Okhla Bird Sanctuary had gone on to affect 20,000 homebuyers. Those apartments were complete and were ready to offer possession but the developers were unable to offer possession due to unavailability of approval. Also, developers were prohibited to launch new projects in the region and construction of the developing ones was put on hold. As much as 30,000 units would have been completed by next year, which now will take more time to complete as the pace of the developers have reduced. Most of the projects developing in sectors 74, 75, 76, 121, 122, 137, etc. of big names of NCR such as Amrapali, Jaypee, Logix, Gulshan Homz, Ajnara, Antriksh, ATS, Paramount and others totalled to 25 projects affected due to the previous judgement. Mr. Rupesh Gupta, Director, JM Housing, said, “The decision had delivered two separate blows to the public. One was the prohibition of providing completion certificates for the completed projects; and other being the temporary hold on the under construction projects. This resulted in thousands of units in inventory and delay in construction for the other set. Now since the sensitive zone radius is being reduced, most projects will now be able to offer possession and further can develop. Mr. Sushant Muttreja, CMD, Cosmic Group, said, “This is great news for the sector and this could not be a better time to receive this relief. Final festive season of the year is approaching and most developers are already gearing up for new launches and offerings in the market. Now the market sentiments are much improved and by the time the final notification comes out, buyers will be mentally and financially ready to buy the property that they were waiting for”. n

October 2014 OBSERVER DAWN

Architecture

The story behind the

Enigma

Sanjay Puriâ&#x20AC;&#x2122;s avant-garde architectural style is truly unique and a true expression of his creativity.

OBSERVER DAWN October 2014

t is not every day that one gets to be in the presence of sheer creative genius, which is nothing short of inspiring. One such personality is Sanjay Puri, who has silently but surely been working his way to become the leader in architecture and design in the country. A graduate of Mayo College, Sanjay went on to pursue his dream of becoming an architect and studied from the illustrious Academy of Architecture, Mumbai. His tryst with architecture began at an early age and his formal training in the subject gave him the means to channel his creativity in a productive manner. Like all creative minds, Sanjay finds inspiration everywhere. His biggest inspiration and something that he turns to even today is ‘The Fountainhead’ by Ayn Rand. This novel that is one of the greatest books of our times revolves around the life of the protagonist, an architect who is so driven that he would rather struggle than compromise on his artistic vision. This is the mantra that Sanjay follows till today and is the thing that sets him apart from other architects. Sanjay began his career by working under the master architect of his time: Hafeez Contractor, who as Sanjay says taught him a lot of what he knows on the subject. Following this he went on to establish his own firm and in 1992 Sanjay Puri Architects was born. From then on there was no looking back. Today Sanjay Puri is at the forefront, leading his impressive team of more than 72 employees in several projects in India and around the world. His avant-garde architectural style is truly unique and a true

expression of his creativity. The essence of Sanjay’s design theory is creating innovative design spaces that are contextual but at the same time sustainable. The main aim is evoke an exhilarating experience while infusing functionality effectively. Today he is the leading architect in the country with a name in India as well as overseas. He is the only architect worldwide to win awards in 3 categories at the latest MIPIM Architectural Review Future Projects Awards in France. He has won 42 international awards and numerous national awards garnering fame for himself and his firm. Sanjay Puri himself is quite a simple and straightforward man, and does not believe in unnecessary embellishments on buildings. He prefers to focus on the form of the structure and pay more attention to the way the building feels and not just how it looks. Sanjay Puri does not look like a man who will allow success to go to his head and has managed to remain humble and unassuming in spite of having appeared in over 200 international publications and being a speaker in architectural events in Italy, Spain, Singapore, Serbia, Mexico and The Netherlands. When asked to describe his work in his own words he said, “My utmost preoccupation is to evolve innovative design solutions and incorporate the geography of the location in a positive way into the design. Most of my designs have an element or principle of traditional Indian architecture that I try to imbibe in them in my own way. While designing a space, the most important thing to remember is not to hold back, to let your creativity flow undeterred. This is something that is

October 2014 OBSERVER DAWN

Architecture

missing in the run of the mill buildings that we see cropping up everywhere nowadays. I try to ensure that every structure I design and create is vastly different and unique from the previous one, and avoid repetition at all costs.’’

Powerhouse of Design

Founded in 1992 Sanjay Puri Architects today is one of the most sought after architectural and design firms in India. With a team of over 72employees that work under the skilful guidance of Sanjay Puri, the firm is an unmatched powerhouse of design. Sanjay Puri Architects has an extensive design portfolio that includes architectural and interior design projects in fields like hospitality, commercial, retail, educational and entertainment facilities as well as large urban projects and town planning. Being the Overall Winner at MIPIM Architectural Review Future Projects Awards 2014 at Cannes, France and winning three A+Architizer Awards 2014 in New York, Sanjay Puri Architects have now won 42 international architecture awards. The Chicago Athenaeum Museum of Architecture & Design’s International Architecture Awards in 2012 & 2011, The World Architecture Festival Awards in 2012, 2011 & 2010, 6 World Architecture Community Awards U.K and the Hospitality Design Awards, New York in 2012 & 2010 are some of the other awards won by the firm in the last 3 years. Evolving innovative design solutions that are contextual, con-

OBSERVER DAWN October 2014

Mr. Sanjay Puri: A

architect world renowned

tributing to sustainability and creating spaces that revolutionize the way they are experienced form the essence of the firm’s design philosophy. This mandate has allowed the firm to create a diverse portfolio of urban planning, residential, commercial, hospitality, retail, offices, cultural and institutional projects. With 72 people now, they are currently involved in the design of over 100 projects in 40 Indian cities, Spain, Montenegro, Mauritius and the UAE. Some of the firm’s most notable projects include the Chrome Hotel in Kolkata, D Caves Hotel Hyderabad, D Hotel Lucknow, 72 Screens Jaipur, The Courtyard house Rajasthan and Bombay Arts Society. Internationally the firm’s biggest and most noteworthy projects are the Chapel at Murcia Spain and Palmyra in Mauritius .. His upcoming project, Sky Courts is another example of his phenomenal work. n

The Feelings: A Literary Expression of a Poet

But, like every serious poet, he also yearns for some good and beautiful poetic creations like Ghazals and Nazms.

- By Mohammad Aleem

he leading Bollywood lyricist, script writer and a literary poet of distinct voice starts his much awaited book, The Feelings, with these beautiful lines:

I am a poet, who weaves sweet and pungent songs with the delicate and sublime words And whatever comes in my way, either thorn or a flower, I take it with a generous smile on my lips. Nawab Arzoo is known for some of the best songs which he penned in a number of hit Hindi films like Bazigar, Sathi, Bhabhi, Jaan Tere Nam, Dancer, Dil Ka Keya Qasoor and many others. He is also a sought after lyricist among the television soap producers like Ekta Kapoor, whose many popular serials are attached to many melodious title songs written by him. He is still busy with his first passion, writing songs for the films and serials. He won many awards and laurels for his song writing. But, like every serious poet, he also yearns for some good and beautiful poetic creations like Ghazals and Nazms. And that strong desire of expressing himself in literary style encouraged him to spare some precious time to pen some serious works also. Every writer and poet know it well that if one doesnâ&#x20AC;&#x2122;t compose a good book of poetry or fiction, he would not live longer in the memory of the people. Only serious literature has that kind of power to endure the tides of the time and age. I heartily congratulate Nawab Arzoo that he took this art of expression in a much more serious way, resisting all other commercial temptations which are many in the city like Mumbai. He came to this dreamy city to realize his goal of becoming a successful songwriter many decades back. It was 1982 when he landed in this city and started his career. He also went through many ups and downs as every other artist do here at the start of his or her career. He was born in 1956 in undivided Bihar. Now his hometown perches in Jharkhand which is known for its great reservoir of minerals all over the world. Some of the best minerals are produced here only, though, it is also a sad fact that after many years of its inception as an independent state of the Indian Council of states, it is still languishing in bad shape, either politically or economically. The over greedy politicians and corrupt bureaucrats have left their people writhing in pain, poverty and wretchedness. No any major

political party could give a stable government, yet. These all political turmoil, upheavals and social unrest found its way in the poems of Nawab Sahib, and he, as a very serious and passionate poet, never turned his eyes away and closed his heart. His poetry is not restricted to the feelings of a few people of his own state, but encompasses the whole humanity. And that makes his works of art truly appealing. He very aptly summarizes his pain while struggling to establish himself financially in this over materialistic city. He says: All beautiful thoughts got divided into scenes And the lure of films cut me from the whole world. It is true somehow because only a few writers and poets succeed in bringing out themselves from the entangled life of the film world which is quite alluring on one hand, but quite frustrating on the other hand. There are more than hundred Ghazals and Nazms in this collection of poems. And all equally have strength to attract the attention of the serious readers of poetry. But some lines are so powerful and enchanting that it is hard to ignore. It keeps hovering in your mind for a longer period of time. I have picked some couplets which forced me to think deeply and disturbingly. These lines are as follows:

I draw, sometimes, Roti, sometimes, vegetables and rice These kinds of figures only a lunatic sketch on the wall. We have been living in our country for centuries together Why you turn it into a slaughter house just for the sake of a few votes My city is so big, O Baba But, where is the human, O Baba Whenever you like, you may search me thoroughly I keep a throbbing heart inside my body, not a bomb Perhaps, that lonely bird got ensnared by a hunter Who used to live in my house and flew from there When the communal riots took place, it changed the face of my city completely And that house which was perched in front of the police station, got burnt quickly This book is a stepping stone, and I do hope that Nawab Arzoo will not stop himself here and produce some more good books in the future to come. I wish him a great success as both a professional writer and poet and literary master of his time. This book has seen the light of the day with the help of Juli Publications, New Delhi in the year 2014. n

October 2014 OBSERVER DAWN

Gadgets & Gizmos

iPhone 6 and iPhone 6 Plus

Bigger Than Bigger

iPhone 6 isn’t simply bigger — it’s better in every way. Larger, yet dramatically thinner. More powerful, but remarkably power efficient. With a smooth metal surface that seamlessly meets the new Retina HD display. It’s one continuous form where hardware and software function in perfect unison, creating a new generation of iPhone that’s better by any measure.

1 The Camera That Changed Photos Now Does The Same for Video Every day, people take more photos with iPhone than with any other camera. That’s because the iSight camera makes it so remarkably easy. Now, in addition to its large 1.5-micron pixels and ƒ/2.2 aperture, the world’s most popular camera is packed with new technologies to help everyone take more great photos. To make it just as easy to shoot amazing video, we added new features like the option to capture 1080p HD at 60 fps, 240-fps slo-mo and time-lapse video. And you can shoot HD video and then watch the stunning results on the large Retina HD display.

2 Not Just a Bigger Display A Better Display The size of the new, higher-resolution Retina HD displays on iPhone 6 and iPhone 6 Plus may be the first thing you notice. But what you experience is so much more. With innovations that deliver higher contrast, dual‑domain pixels for more accurate colour at wider viewing angles, and an improved polariser, these are the thinnest, most advanced Multi‑Touch displays we’ve ever made.

OBSERVER DAWN October 2014

3 Security Right at Your Fingertip Your fingerprint is the perfect password. You always have it with you. And no one can ever guess what it is. Our breakthrough Touch ID technology uses a unique fingerprint identity sensor to make unlocking your phone easy and secure. And with new developments in iOS 8 and Touch ID, your fingerprint will grant you faster access to so much more.

4 The Biggest iOS Release Ever

It’s not just iPhone 6 that’s bigger. The world’s most advanced mobile operating system has made a huge leap too. iOS 8 has new capabilities and functions that let you do things you could only imagine before, like using your health and fitness apps to communicate with your doctor. Developers now have deeper access and more tools to bring some of the amazing new features of iOS 8 to their apps. And it all looks great on the large Retina HD display.

5 Faster Wireless Far and Wide A super-fast connection can make you feel like the whole world is within reach. That’s why iPhone 6 has faster download speeds1 and the ability to connect to networks all over the world. It also supports more advanced wireless technologies to boost performance and help you connect to the things — and people — that matter most. Ultra-fast wireless With ultra-fast wireless, iPhone 6 users can experience faster download and upload speeds for browsing the web, streaming music, making video calls and more. Faster wireless performance iPhone 6 supports fast wireless technologies. That means iPhone users can connect to more high-speed wireless networks in more places. And when you’re travelling, support for more networks helps you benefit from the growing number of roaming agreements around the world.

6 Hugely Powerful Enormously Eﬃcient iPhone 6 features an A8 chip built on second-generation 64-bit desktop-class architecture. Its incredible power is enhanced by an M8 motion coprocessor that eﬃciently measures your activity from advanced sensors, including a new barometer. So you can do more, for longer periods of time, with better performance and battery life. Source: www.apple.com

October 2014 OBSERVER DAWN

REITs: Taking a Slice Special Story

of the Realty Pie

Pioneered in the US, REITs are already quite popular in several countries including the UK, Singapore and Australia. - By Achyut Nath Jha

fter years of deliberating on the efficacy of a new investment avenue for investors in the Indian real estate market and a big push from the central government, the Securities and Exchange Board of India(SEBI) cleared the final guidelines for setting up Real Estate Investment Trusts(REITs).The jury is still out on the impact of REITs of Indian realty but there is no denying the fact that this investment tool will go a long way in creating a paradigm shift in the largely unorganised sector as it will have to work in a more transparent way under the guidelines of the SEBI. In July 2014, Prime Minister Narendra Modi-led government unveiled a series of structural reforms to provide alternative sources of funding to the real estate sector. REITs are one of the major steps to rev up liquidity in the market, as some analysts put it. REITs first made an appearance in the US around 50 years ago. They are listed on exchanges and use money raised from the public to buy real estate. It

means, in developed markets, REITs have been in existence for several years now. Pioneered in the US, REITs are already quite popular in several countries including the UK, Singapore and Australia. Indian developers such as Indiabulls and Ascendas have also listed their own REITs on the Singapore Stock Exchange. But, this is a new concept in India and therefore, we (read investors) need to know what it is and how it works before we put in our hard-earned money to invest in them. A REIT can be set up by a developer or any independent fund manager. The minimum investment to be made is Rs.2 lakh. And if the REIT pays out 90% of its distributable income to investors, it gets a tax exemption.

For the starter, REITs are investment trusts that operate much like the mutual funds. Only exception is investment could be done in income generating real estate assets â&#x20AC;&#x201D; commercial, residential etc and look to generate return for the investors within the fund. While mutual funds invest in equities, REITs invest in real estate and now the SEBI guidelines make it possible for even the

OBSERVER DAWN October 2014

October 2014 OBSERVER DAWN

Special Story smaller investors to invest in real estate. Thus, it is a good option for investors to invest in real estate as they can own a piece of a prime property for a modest sum. It is also a less risky as the investors takes a position in a developed property that provides regular income. A consultative paper on draft Sebi REITs Regulations says, “For retail investors, they provide an avenue to such investors in properties which they otherwise would not have been able to take an exposure. REITs are also a popular investment option for long term pools of capital such as pension funds and insurance companies primarily since the regular stream of income helps them in managing regular outflow to their investors,”

The REIT is to be set up as a Trust comprising parties such as trustee (registered with SEBI), sponsor, manager and principal valuer with specific responsibilities. Then the REIT would raise funds through an initial offer (IPO, as in the case with equity) from investors and get listed. The minimum issue size of the initial offer has been specified at Rs 250 crore and the SEBI specified that the size of assets under the REITs should not be less than Rs 500 crore. The SEBI also clarified that till the market develops, the units of REITs may be offered only to HNIs/institutions and therefore, the minimum subscription size has been kept at Rs 2 lakh and the unit size is proposed at Rs 1 lakh. In India the REIT will invest in commercial real estate assets, either directly or through Special Purpose Vehicles (SPVs). A REIT shall hold controlling interest and not less than 50 per cent of the equity share capital or interest. Also, REITs shall invest in at least two projects with not more than 60 per cent of value of assets invested in one project.

Potential to become a game-changer Some Indian developers, however, have mixed feelings about REITs's role in changing real estate perspective. Referring to the "tax pass-through" status for REITs, they say that in their present format they attract too many taxes at various levels, making them unviable as an investment option. Tax experts also toe this line and explain that developers are uncomfortable with the longterm capital gains tax they would have to pay once they sell their units in a REIT. Unlike retail investors, who are exempt from the tax, developers need to pay long-term capital gains tax of 20 per cent if they hold their REIT units for longer than 12 months. Some analysts say that REITs would particularly help builders that have a large portfolio of leased assets.

However, many believe REITs do possess the potential to become a game-changer for the Indian real estate sector as they can reduce the developers' dependency on banks and other financial institutions for funds. According to realty consultancy Jones Lang LaSalle(JLL), 80-100 million sq. ft. of office space worth at least Rs 60,000 crore may qualify to be included under REITs. These assets could together generate rentals of Rs 6,000 crore annually.

CB Richard Ellis (CBRE), a real estate consulting firm, feels that the sector continues to lack large scale institutional funding.This is despite the fact that volume of investment grade office stock has risen from a little over 90 million sq. ft. in 2005 to more than 400 million sq. ft. “To allow I-REITs to fully achieve their po-

OBSERVER DAWN October 2014

tential, the government must consult all stakeholders before releasing detailed guidelines for the REIT regime. A successful IREIT market will require strong support from existing landlords (i.e. potential issuers) and investors, as well as favorable market conditions. While the performance of select commercial property hubs across India is improving, concerns over stagnant rental growth and oversupply remain. TheI-REIT market needs to be perceived as more attractive for pricing and asset quality, as compared to the direct real estate market and other investment asset classes, for it to become a success.”

CBRE lists several factors for successful implementation of REITs: * Lengthy registration processes and burdensome stamp duties could hinder the establishment of I-REITs. In India, the transaction cost for physical assets typically ranges between 5-12 per cent as against 4-6 per cent in Singapore. This could act as a barrier to acquisitions by I-REITs and hamper growth. * The success of I-REITs hinges on the returns being offered to investors, which should ideally score well above other instruments available in the market. A negative yield spread over stable investment instruments such as the 10-year Government Securities or the AAA rated corporate bonds could reduce I-REITs’ appeal to investors. * Supply of high quality en-bloc investible assets available for injection into I-REITs is limited. Developers preferring ownership and stable income returns will hold on to quality assets rather than sell them to I-REITS, thereby preventing stabilised properties from entering the I-REIT market. Recent entrance of foreign investors such as Blackstone, Brookfield and APG in Indian real estate market may help shape and increase the future stock of institutional grade real estate assets in the market. * International institutional investors generally have mandates to invest only in developed markets, even if they are permitted to invest in emerging markets, there exist regulatory restriction on foreign stock ownership in India. As a work around, I-REITs or trusts packaged with Indian properties could list in developed markets such as Singapore in order to increase their accessibility to FIIs, although challenges related to the remittance of funds would remain. * In mature economies there is large pool of long-term investors such as pension and insurance funds, however, investor preferences in developing economies could be different. Many buyers place an emphasis on the upside of capital values and are willing to take on risks in development projects.

Needless to say, a mature real estate sector would indeed see a large number of REITs. Do they, however, have the potential to drastically change the current Indian real-estate sector? Developers and real estate stake-holders I talked to have shown cautious approach while describing the finer points of the new investment option but they are really gearing up to explore the windfall after REITs are introduced. Their guarded response has much to do with the state of the market. Then, there is the question of the state of the market. As the major value (not less than 80%) of an REIT's assets is to be in completed properties, it brings down the risk. But then there are not many such properties at the moment. So, it will take years before REITs penetration is deep. n

During the process of developing article on REITs, Observer Dawn received views from some topnotch realtors. These are as follow: “We cannot deny the fact that Indian real estate sector is heavily debt ridden. SEBI’s new regulations and moves for setting up REITs will definitely attract and encourage the foreign investors to invest here that will benefit the Indian real estate sector. This move by SEBI is expected to recover the cash strapped sector and is expected to inflow as much as 1 lakh crore rupees from domestic and overseas investors.”

-- Mr. Deepak Kapoor, Director, Gulshan Homz

“It is very imperative to understand that REITs are advantageous for both; the real estate sector of India as well as investors. It helps in providing a secure, sound and good investment opportunity for the HNI investors in especially commercial properties and also offers an exit route for the developers. It permits the sponsors a much required liquidity by shifting the ownership to the shareholders. It’s good news for the Indian real estate as it will not only promote liquidity but also shrink the debt of the companies that are in the business of lending.” -- Mr. Kushagr Ansal, Director, Ansal Housing “Apart from aiding to reduce debt in the country; REITs will gain new equity from the market, largely lessen the pressure on banking system of the country, attract heavy finance from domestic investors and acquire long term capitals from foreign investors. The dependence of Indian developers on borrowing funds from the banks is likely to come down quite a bit as REITs will facilitate them to acquire access to inexpensive funds as compared to debt which is way too expensive otherwise.” -- Mr. M.K. Gupta, Chairman, KPDK Buildtech

“REITs will provide the investors with a chance to invest in revenue producing and finished properties. This will not be much risky versus the underconstruction properties as the investment will offer a shelter to the investors against any kind of delay in the project completion and disputes. This will also provide definite returns in form of dividends to the investors from any rental income received. Moreover, it will offer the benefit of liquidity and reduced transaction cost of holding a property. The procedure of procurement or selling a REIT will be crystal clear and supple.” -- Mr. Sushant Muttreja, CMD, Cosmic Group "Yes, we believe that it would definitely help the developers and a game changer for the sector. REITs is wonderful initiative by the Government, as many small investors can now invest and earn rental income from commercial properties like office space and malls. REITs are already quite popular in several countries such as UK, Singapore US and Australia. Several India-focused developers have already been following the trend and listed themselves at Singapore Stock Exchange. We at Central Park feel that REITs beneficial for both the investors and the real estate sector and this move will support the sector in reducing the high levels of debt, as it is going to attract the small and midlevel investors to invest will increase liquidity in the sector as a whole. " -- Mr. Rakesh Jain, President (Sales & Marketing), Central Park, says,

October 2014 OBSERVER DAWN

Special Story

REITs: An Investment Tool Do you believe that REITs have the potential to become a game-changer for the Indian real estate sector as they can lower the developers' dependency on banks for funds?

By ensuring easy flow of FDI and opening up a new avenue of fund raising for the cash strapped realty sector, there is every possibility that REITs will boost growth of real estate in the country. But REITs cannot become a game changer unless small investors in mass numbers actually start entering the market experiencing that itâ&#x20AC;&#x2122;s a less risky investment option for them.

Do you also ascribe to the view that REITs would particularly help builders that have a large portfolio of leased assets and high-end investors that are keen to invest into the country's property market?

REITs will surely help builders with large portfolio of leased assets by ensuring increased liquidity for them in the market. When REITs buy large assets from property developers, it helps developers to repay their loans by increasing liquidity in the market. REITs will also help the high-end investors to invest into the countryâ&#x20AC;&#x2122;s evolving property market by providing them avenues for safe and profitable investments.

Then there are some sore points with developers who say that the current tax structure for REITs is unviable. Your comment!

Actually there should be some more clarity on tax structure of REITs. Selling stake through REITs should be given the same treatment as selling stake through an IPO. It's unfair that if the developers sell stake through an IPO, they need not pay any tax, but when they sell it through REITs, they are required to pay tax. -- Mr. Arjunpreet Singh Sahni,

Executive Director, Solitaire Group,

Do you believe that REITs have the potential to become a game-changer for the Indian real estate sector as they can lower the developers' dependency on banks for funds?

The real estate sector, which is a major job creator and wealth generating avenue, has also been saddled with drawbacks like inventory pile-up, high prices, regulatory inefficiency and dwindling sales. REITs will establish a new asset class, and being a quasi debt-equity instrument, be attractive for risk-averse investors get the twin benefits of yield as well as capital appreciation. For developers, it would improve property market transparency, smoothen volatile property cycles, and potentially lower the cost of capital.

REITs are publically-traded instruments that pool investor money to buy real estate such as office buildings, shopping malls and residential complexes. That means, that 80-100 million sq ft of office space worth at least Rs 60,000 crore may qualify to be included under REITs as this could together generate rentals of Rs 6,000 crore annually. This means REITs could particularly help builders that have a large portfolio of leased assets and investors that are keen to invest into the country's property market. It will increase liquidity in the market as a whole as the residential project developer would be stuck for want of money. The move to introduce REITs is quite a progressive one as well. REITs have great potential to tap cash flow into the Indian economy, and help smaller investors to access income-generating real estate assets, without having to invest a large amount. Providing tax incentives to REITs for investment in housing, especially the affordable housing sector, will increase chances of its success.

Then there are some sore points with developers who say that the current tax structure for REITs is unviable. Your comment!

According to the sections included in the budget pertaining to the exemption to REITs, the REITs would be controlling interest in an SPV which in turn will have exposure in income generating assets. The government also proposed that in an investment of a REIT into an SPV, if in the form of debt, the interest income earned by the REIT will have a pass-through, that is, no tax on interest income of the REIT. But if such interest income is distributed to unit-holders as dividend (90% of the income of the REIT has to be distributed as dividend), it will have a 10% withholding tax for resident unit-holders and 5% for non-resident unit-holders. The resident unit holders will be charged at a maximum marginal tax rate with the benefit of setting off the 10% TDS cut. -Mr. Sudhir Agrawal,

MD, VICTORYONE Infraprojects Pvt. Ltd.

OBSERVER DAWN October 2014

Pergo Unveils

Pergo has always aimed at making the best use of natural resources in its products .

ergo is recognized around the world as a leading innovator of high quality laminated flooring brand. Pergo first introduced and invented laminate flooring 35 years ago and has been refining its exceptional qualities ever since. Now the world’s most preferred laminate flooring company unveils its latest Wood Parquet. Pergo has always aimed at making the best use of natural resources in its products, with the way natural resources are depleting; it is reassuring to know that Pergo, uses most part of recycled materials in its manufacturing of Wood Parquet flooring. With the launch of Pergo Wood Parquet flooring, fourteen diﬀerent designs with the new manufacturing technologies like Brushed Surface, Sawcut & Dutch Pattern designer look are introduced. Pergo Wood Parquet is easy to install and durable, which means it can withstand years of use and still look beautiful. The designs in this range are divided in 6 groups i.e. 2 decors in Svalbard, 2 decors in Gotland, 4 decors in Bornholm, 3 decors in Varmdo, 2 decors in Jomfruland and 1 decor in Dutch pattern. “With Pergo Wood Parquet, you don’t have to worry about bothersome maintenance; the parquet flooring is easy to care. It is the perfect combination of beautiful design and performance to revamp a place with the finest flooring”. It is strikingly attractive flooring from a design point of view and a residential warranty on “the product against manufacturing defect and Perfect Fold TM 3.0”; speaks for itself when it comes to the quality and durability of the collection. Commercial warranty on Perfect Fold 3.0TM is also available on request. The high quality oiled and lacquered surface is factory-applied and with a special base treatment for a particularly natural radiance. It is the perfect combination of beautiful design and performance to revamp a place with the finest floor option”. Pergo, with this range have set themselves apart with the use of one more trade mark technologies which is Perfect Fold 3.O that all in all making the Wood Parquet the perfect choice for our customers. Formats available in this range are: 2200 x 220 x 14 mm, 1820 x 190 x 14 mm, 1820 x 145 x 14 mm, 2200 x 190 x 14 mm. The new product of Pergo will be available by March 2014. Pergo is a laminate flooring brand with prominent positions in North American and European markets and as well as in India with growing market. The company develops, manufactures and markets flooring of high quality with distinctive designs and unique properties for both homes and commercial areas. Since the time when the company invented laminate floors in 1977 and created a new type of flooring material, It has become one of the world’s best known and trusted flooring brands. Pergo’s inventions are protected throughout the world by nearly 500 granted patents and pending patents.

October 2014 OBSERVER DAWN

Overview

Real Estate Market Outlook

One of the most important announcements for the real estate sector was the Securities and Exchange Board of India’s (SEBI’s) issuing the final guidelines for Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) in India.

he government presented a forward looking and progressive Union Budget in July, which managed to touch upon all topical issues of reviving economic growth, attracting investments, churning industrial production, promoting urban development, and creating infrastructure. The budget struck a fine balance between fiscal prudence and populism, and managed to provide the government’s thought process on contentious issues such as retrospective taxation and fuel/food subsidies. The real impact on the economy, however, will be upon investing all the funds allocated in the Budget through project implementations. Meanwhile, the Central Bank’s move of keeping base rates unchanged in its latest policy review was widely expected as consumer price inflation remained a concern, and the impact of the Budget was yet to be felt across sectors. Any reduction in base rates in the coming months will be a positive indicator for the sector, spurring housing demand and construction activity across the country. Yet another positive policy initiative

OBSERVER DAWN October 2014

saw the government clearing up to 100% FDI in railway infrastructure segments such as electrification, signaling, high speed and suburban corridors; while permitting upto 49% in infrastructure and defense. One of the most important announcements for the real estate sector was the Securities and Exchange Board of India’s (SEBI’s) issuing the final guidelines for Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) in India. This signaled a positive move for India’s capital markets as a whole, and its realty sector in particular.

Office Space Update

Commercial leasing activity picked up in July, with leased space appreciating by about 10% over the previous month. Although most of the demand was for small to medium sized office spaces, a few big ticket transactions were observed in Bangalore—primarily in IT/ITeS, manufacturing, automotive and telecommunication segments. Bangalore also remained the largest contributor to office space demand among the leading cities, followed by Pune and Chennai, representing about 84% of the total space transacted during this month. Occupier interest remained strong in micro-markets such as the Outer Ring Road (ORR) and Whitefield in Bangalore; IT Corridor in Hyderabad; Kharadi and Baner in Pune; and Guindy and Mount Poonnamalle Road in Chennai, with demand mostly driven by IT/ITeS firms for their expansion and consolidation needs. SEZ developments in Gurgaon, Bangalore and Chennai also witnessed healthy take-up during the month. Going forward, a few large sized transactions are expected to reach completion in prominent tech parks along the ORR in Bangalore. Rental values remained largely stable across all micro-markets of leading cities. Locations such as the ORR, Hyderabad’s IT Corridor and the Chennai CBD, however, are likely to undergo rental appreciation in the near term, owing to sustained occupier demand.

Housing Market Update

During the month of July, housing sales remained muted and new supply saw a decline across leading cities. A large majority of new projects were launched in the mid-segment, concentrated in micro-markets such as the Old Mahabalipuram Road/Grand Southern Trunk Road, Ambattur and Porur in Chennai; Marathahalli ORR, Old Madras Road, Whitefield, Hebbal, Thanisandra Main Road and Gottigere in Bangalore.

In contrast, residential real estate activity remained subdued in Delhi NCR, Mumbai, Hyderabad and Kolkata during July. Meanwhile, Pune is likely to attract significant supply addition as part of the By Anshuman Magazine, proposed township deCMD, CBRE South Asia Pvt. Ltd. velopments by prominent developers in the peripheral locations of the city. Housing prices remained largely stable during July. Owing to subdued demand levels, premium residential locations—such as Chanakyapuri in Delhi and Golf Course Road in Gurgaon—saw a slight price correction. Conversely, strong demand coupled with limited availability led to a price appreciation in Central Chennai.

Organized Retail Space

High streets across India’s leading cities witnessed healthy demand for retail space; while prominent shopping centers saw limited activity during July 2014. Demand was largely led by retailers from the F&B, fashion apparel and accessories segments. Global retailers such as Michael Kors and Giant forayed into Bangalore; while Spa Ceylon launched its first India outlet in Mumbai. Mumbai also witnessed space take-ups from numerous F&B brands such as The Social, Treesome Café, Gyros, Café Nemo, and Aqaba across various high streets. In addition, Dunkin Donuts, Pizza Express, Café Coffee Day, Joss, and Venky’s, among others, expanded their operations across other leading cities during the month. Starbucks opened its first store in Chennai, followed by Hyderabad, taking the total number of its outlets to more than 50 in the country. Rental values continued to remain stable across all micro-markets. Furthermore, the Department of Industrial Policy and Promotion (DIPP) is considering scrapping the 30% domestic sourcing clause for FDI in single-brand retail, which is likely to increase foreign investment inflows and ease the entry of foreign brands in categories such as clothing, electronics and luxury goods. Enforcing the sourcing clause is largely seen as a major deterrent by premium and luxury retailers seeking to enter the India market. n

October 2014 OBSERVER DAWN

Mall Vacancy Retail

Stagnant Across the Cities

The overall infrastructure to support retail trade such as transportation and logistics too need to improve substantially for the sector to kick in to its next phase of growth. ccording to Cushman & Wakefieldâ&#x20AC;&#x2122;s latest retail reports, the overall mall vacancy levels across the top eight India cities remained stagnant at 14.47% in Q2 2014, which was recorded around 0.4 percentage points lower compared to Q1 2014. Amongst the top eight cities, Pune witnessed sharpest decline of 2.5 percentage points due to healthy leasing activity and no new mall supply. Ahmedabad, Chennai and Bengaluru also recorded drops of 0.4 percentage point each due to moderate demand for quality mall spaces from apparels and food and beverages (F&B) retailers. Hyderabad witnessed a rise of 1.1%, in mall vacancy in the same period.

OBSERVER DAWN October 2014

Q2 2014 saw the addition of 370,000 sf. of new mall space, which was similar to that received in the previous quarter. The supply comprised of 250,000 sf in one mall in NCR and the residual 120,000 sf in an operational mall in Kolkata. As many as 6 new malls planned for Q2 2014 witnessed the deferment to the second half of the year, which together accounted for 2.33 million square feet (msf). While 3 malls measuring 700,000 sf in total were delayed in Bengaluru due to approval delays, slower construction pace in tandem with low leasing led to deferment of one mall each in NCR, Pune and Hyderabad, measuring 700,000 sf, 430,000 sf and 500,000 sf respectively.

City

Ahmedabad Bengaluru Chennai Hyderabad Kolkata Mumbai NCR Pune TOTAL

Mall Vacancy Q2 2013

Source: Cushman & Wakefield

31.50% 11.95% 6.11% 1.40% 4.54% 15.05% 14.42% 26.71% 15.04%

Mall Vacancy Q1 2014 31.58% 7.50% 6.24% 7.11% 3.57% 15.29% 13.44% 27.48% 14.51%

Sanjay Dutt, Executive Managing Director, South Asia Cushman & Wakefield, said, “The retail and retail real estate markets are still going through a period of uncertainty. Currently, we are witnessing stagnation in the demand-supply dynamics as mall supply is being deferred and existing vacancies remain more or less stable. Whilst everyone is aware of the huge potential that exists for organized retail in India and domestic and international retailers are keen to expand their presence in the country, they are awaiting the conducive conditions to do so.

“The real estate sector has been maturing to provide better quality spaces and adopting best practices to cater to retailers needs. However, macroeconomic conditions and not just the sentiments need to improve further to encourage consumer spending and the Government needs to address the uncertainty that exists with respect to its policy stand on FDI in retail. The RIET’s for commercial properties post successful listings, would potentially open up for shopping center portfolio listings, giving much needed exit route to the developers & investors. This would encourage shopping centre developers to create much needed quality organized retail space at locations that matter. The overall infrastructure to support retail trade such as transportation and logistics too need to improve substantially for the sector to kick in to its next phase of growth.”

Mall rentals remained stable across most cities except Bengaluru, Chennai, Mumbai and Pune where a few micro markets depicted rental variations. In Bengaluru, the sharpest rental decline of 13% was noticed in Mysore Road where lower trade densities impacted rentals adversely. Similarly, Cunningham Road in Bengaluru also witnessed lower demand leading to a 10% dip in rentals. On the other hand, Goregaon in Mumbai witnessed a 10% increase in mall rentals due to healthy demand from retailers.

In Pune, Hadapsar also witnessed a positive trend in leasing leading to a 9% uptick in mall rentals. In Chennai, almost all mall micro markets witnessed a rental decline from the last quarter due to weakening demand. The sharpest rental dip of 9% came in Chennai-Western where lack of new mall supply hampered retailer demand for this location. Mall rentals in Hy-

Mall Vacancy Q2 2014 31.16% 7.10% 5.88% 8.22% 3.64% 15.35% 13.50% 25.03% 14.47%

Supply Q2 2014 (in million sq. ft.) 0.00 0.00 0.00 0.00 0.12 0.00 0.25 0.00 0.37

derabad, Ahmedabad and Kolkata remained stable.

In Pune, JM Road witnessed the highest rental appreciation of 9% due to high demand from fashion and lifestyle retailers. Vashi in Mumbai also witnessed similar rental appreciation due to high interest from apparels and F&B retailers. In Chennai, lack of optimum sized retail spaces led to a 7% decline in main street rentals. Anna Nagar 2ndAvenue in Chennai also witnessed a 7% dip in rentals from last quarter as ongoing infrastructure projects curtailed footfalls. All main streets in NCR, Ahmedabad, Hyderabad and Kolkata recorded stable rentals during this quarter. Vittal Mallaya Road in Bengaluru witnessed a 4% rental drop in wake of dearth of optimum-sized retail spaces and already high rentals commanded by this established main street.

During H1 2014, Bengaluru witnessed no new mall supply; this was primarily owing to the delay in approvals, which led to the deferment of upcoming supply. Meanwhile, the city mall vacancy level registered a dip of 0.4 percentage point and was noted at 7.1% towards the end of Q2 2014 due to the absence of new mall supply and moderate demand from apparels, F&B, footwear and electronics retailers. Although most locations in main streets and mall micro markets recorded stable rental trend this quarter, select main streets and mall micro-markets registered a drop in rentals.

Whilst Cunningham Road and Mysore Road mall micro markets witnessed a decline of 10-13% in rentals in the wake of weak trading activity; Bannerghatta Road mall micro market recorded a drop of 3% in order to keep rentals competitive and attract newer brands. Main streets of Brigade Road and Vittal Mallya Road observed a drop of 3-4% in rentals due to limited availability of options with optimum sized floor plates. Going forward, Cunningham Road and Mysore Road mall micro markets may experience further downward pressure on rentals. On the other hand, established main streets such as Indiranagar 100 Feet Road, New BEL Road, Kamanahalli Road and Koramangala 80 Feet Road may witness an upward rental bias owing to healthy enquiries from apparels, F&B, electronics and jewelry brands.

October 2014 OBSERVER DAWN

Retail Chennai-Western saw the sharpest decline

In H1 2014, Chennai did not witness any new shopping malls becoming operational and this led to a marginal decline of 0.4 percentage points in vacancy, which was recorded at 5.9% at the end of this quarter. Cautious sentiments and limited transactions led to a dip in mall rentals across all micro markets. Chennai-Western saw the sharpest decline with a 9% drop owing to the ongoing infrastructure projects, which curtailed footfalls and demand. Amongst main streets, strong demand from jewelry retailers for Usman Road-North and Usman Road-South led to a 4% rental appreciation for these locations. However, no availability of optimum sized floor plates in Cathedral Road-R.K. Salai led to a 7% rental dip for this micro market. Enquiries from jewelry retailers for select main streets near CBD remain high but Anna Nagar-2nd Avenue may witness a negative rental bias due to lack of demand caused by the ongoing metro work. Paucity of quality mall space and low demand may lead to stagnant vacancy levels and rental decline across most micro markets. The mall stock in Hyderabad remained stable in Q2 2014, with 500,000 sf mall space deferred to the next quarter. Q2 2014 witnessed a rise in vacancy by 1.1 percentage points and was noted at 8.22%. Established main streets such as Himayathnagar, Banjara Hills, Jubilee Hills and Kukatpally witnessed an increase in demand from retailers, belonging to apparels, footwear and F&B categories. In the interim, enquiry level for electronic and apparels brands increased in peripheral locations such as Attapur and Kothapet. Whilst mall and main street rentals remained stable, next quarter the city is likely to witness infusion of 500,000 sf of mall space in Kukatpally micro market, which will put a downward pressure on the rentals.

Kolkata witnessed 120,000 sf of mall supply during the first half of 2014 and the overall city mall vacancy increased marginally by 0.07 percentage points. Limited transactions and moderate demand for retail space was recorded. Owing to lack of availability of quality retail space on main streets, malls witnessed more demand compared to main streets. Central and East locations continued to see majority of the leasing activity in both malls and main streets owing to churn and ready catch-

OBSERVER DAWN October 2014

ment. The first half of 2014 witnessed leasing activity predominantly from the apparels segment but rentals remained stable in both main streets and malls.

The first half of 2014 did not witness the opening of any new malls in Mumbai. Despite no new supply, churn in malls led to overall mall vacancies increasing marginally by 0.06 percentage points to 15.4%. During Q2, healthy demand led to mall rentals at Goregaon and Vashi appreciating 10% and 5% respectively while high vacancy levels in malls in Bhandup resulted in developers reducing rentals by 5% to attract retailers. Limited churn kept mall rentals stable in all other locations of the city.

Main streets in Mumbai witnessed vibrant leasing activity with domestic and foreign retailers in the apparels and F&B segments actively expanding their presence at locations like Vashi, Lower Parel, Andheri and Linking Road. Owing to high footfall and thriving retail demand in Vashi, strong interest of retailers led to rentals appreciating by 9%. Mall rentals at select locations such as Lower Parel and Malad could appreciate due to higher demand for quality space. Main streets are also expected to witness improved leasing activity in the coming months. Increasing demand for space in main street locations such as Linking Road, Borivali and Thane could lead to increase in rental values.

Delhi-NCR

Delhi-NCR witnessed one new shopping mall measuring 250,000 sf become operational with 60% occupancy levels in H1 2014. Amidst moderate interest among retailers to foray into new and emerging locations, developers continued with slow pace of construction deferring completion of malls. During Q2 2014, overall mall vacancy was recorded at 13.5%, which is 0.06 percentage points higher due to the influx of new mall space. With balanced demand supply conditions, rentals remained stable across all mall locations. H1 2014 witnessed continued interest from retailers in prominent main street locations such as Greater Kailash (I & II), Connaught Place, Lajpat Nagar, Karol Bagh, Khan Market and Defence Colony. The highest demand was witnessed from F&B brands followed by jewelry, apparels, electronics and lifestyle brands. Despite healthy demand, rentals across main street locations maintained status quo as both retailers and landlords exhibited sensitivity towards any rental change given the competitive retail landscape in Delhi-NCR.

Pune & Ahmedabad

Most of the transaction activity in malls of Pune took place in the micro markets of Hadapsar and Pimpri while few malls in Koregaon Park and Camp also witnessed an improvement in leasing activity. Though rental values in most mall micro markets remained stable, Hadapsar witnessed an increase of nearly 9% due to high retailersâ&#x20AC;&#x2122; interest. Though Pune witnessed 350,000 sf of mall supply in the first quarter of 2014, pick-up in leasing activity coupled with no mall supply in the second quarter led to a drop of 2.45 percentage points in vacancy levels, which is now at 25.0%. Transaction activity in the coming months is expected to remain stable in malls. JM Road remained one of the most preferred main street locations, registering an 8.6% increase in rental values. Fashion and lifestyle brands contributed to majority of the transaction activity in main street locations. Outlook for JM Road, FC Road and Aundh continues to remain positive due to healthy demand for these markets.

Limited availability of quality mall space kept transaction activity low in Ahmedabad. A few transactions by local brands at S.G. Highway led to mall vacancies declining by 0.4 percentage points to 31.2%. Given high mall vacancy levels and a high preference for main streets, Ahmedabad did not witness any mall supply and has no mall under construction. Despite high vacancy existing in some malls, landlords kept the mall rentals stable. Limited retail expansions were noted, which was concentrated in select main streets such as C.G. Road. Due to the attractive catchment and high footfalls, a few domestic brands opened their first stores on C.G. Road. Low transaction activity kept rentals stable across all main streets. Increasing enquiries, especially from apparels and lifestyle brands for locations such as C.G. Road and Prahladnagar could result in rentals increasing in the next quarter. Mall rentals in S.G. Highway could witness a correction due to existing high vacancy levels. n

October 2014 OBSERVER DAWN

Bonanza

The Festival Property

Time to Buy Another House

Are you going to clinch deal for your house this festive season?

By Vivek Shukla

estive seasons are on . It is learnt to boost the sales of flats. Large number of brokers are cutting prices from seven to 15 per cent across major cities, with the highest portions in Delhi-NCR. Earlier, freebies in the name of free vacations, motorbikes, a gold coin and a modular kitchen were being offered to lure customers. It is believed that the October to December period is the best period for realty world due to series of festivals. "I feel that this festival season will see more activity and sales. The sentiments are positive; enquiries have gone up substantially," says Nikhil Jain, CEO of Ramprastha Developers. Sales are expected to reach peak this year, on the back of a good festival season contributing 30-40 per cent to the total. In the earlier two years, total sales were 120,000-140,000 units annually, with very little contribution from the festival season, traditionally considered the biggest season for sales. According to Devindra Gupta, managing director of realty advisory DGS realty, â&#x20AC;&#x153; During this festival times brokers are offering an upfront discount of up to 10 per cent on unit charges, along with no transfer charges in NCR . In Gurgaon, discounts vary by location, in the range of seven to 10 per cent. The discounts have come aplenty at a time when people tracking the sector are expecting prices to go up. Meanwhile, are you ready to buy your first or second house during this festive season? This is the time when even the most cynical customers who always find faults in realty market

OBSERVER DAWN October 2014

start planning to buy their long-awaited house. Many among those who have flats, they either book or start their mission search for home. Alimuddin Rafi Ahmad, managing director of ILD Developers, says that rather than waiting for that time when prices fall in realty market, one must search and book flat according to his budget rather than waiting endlessly. After all, endless wait will only put things very difficult for you to have your own house as prices are only swelling fast. Given the trend of rising property prices over the last few years, the price of the property you have shortlisted will most likely keep going up as you wait. There cannot be any debate that the residential real estate has one asset class whose prices have been steadily rising in most markets. Ajay Singhal, director of Avalon Developers, says, â&#x20AC;&#x153; If you are thinking to have your own house or second property, then you should not mind in investing in the outskirts of your city. With the passage of time, even outskirts become part of the city. â&#x20AC;&#x153; You can meet many people in capital who would tell you that when they came in a particular area, it was bereft of any worthwhile facility. After facing hard times for couples of years, the development has started. And with development, values of their properties have really gone up multi fold. That has changed the class character of large number of people. As the rates have really gone up in main parts of the city, hence one should not mind investing in outer or little unknown areas. Investment advisors suggest that if possible one should buy

another house before retirement. Those who would not get any pension post retirement must buy another property before retirement as it would give them social security at the later stage of their life. The thinking behind this advice was that if you have more than one property, you can give the second house on rent and earn good amount through rent. Naturally, those who invest in property cannot be looser. Hence, it is advisable to invest in realty. This is especially true for all those who do not get pension benefits. It goes without saying that immovable property is a huge asset one can bank upon when the chips are down. Property can be a great source of income for your retired life or in case you lose your job as many people have lost in the recent times. There is no question that property would not help you if the investment is made at the right time. Nevertheless, experts caution all prospective buyers of second or may be third property should invest very carefully. They must invest in only those projects which are handled by those realtors with proven track record. Sanjay Khanna, director of Kailash Nath Projects Pvt. Ltd, says, “I have observed that the number of those buying second home in NCR is swelling very fast. That is an indication that the present generation know for sure that investment in property would help their cause when the chips are down. “I feel that land can be another option for those looking for their second property with a specific goal. Between land and constructed property, the former is a lucrative option as it is much easier to sell it and also the rate of appreciation is higher. If you live in Delhi, then you should not think twice to buy land in any part NCR,” suggests Devinder Gupta, CMD of realty advisory Century 21,” adding,“ That would bind to give you enough returns in future.” Talking about Navratra time and realty market, experts say this is one time when even those who have properties, even they book their flats. As now jobs are hardly permanent in nature, people have realized that they buying a second property before reaching the age of 50 years. The second home will give you rent in case you face crisis in job. Discussing about buying second or third property, “ If you look back the scenario of 15-20 years ago, then you would realize that earlier people feel satisfied after buying one property, says Nuzhat Alim, director of ILd group, adding, “As the salaries have gone up over the year, there has been paradigm shift in the attitude of people in terms of investing in realty. If investors settle for one property earlier, the later generations have been investing in multiple properties”. Admittedly, now people are investing in realty with clear cut thinking that their investment in property would be their source of income for post-retirement life. With higher disposable incomes and more loan options, this thinking is being adopted by a larger number of families. So the message is loud and clear. Real estate is and will remain a good investment option as prices do not fluctuate drastically. But caution should be exercised as it is the hard earned money of customers. n

October 2014 OBSERVER DAWN

Policy

OBSERVER DAWN October 2014

‘Housing for All by 2022’ could require USD2 trillion as investments n

A KPMG-NAREDCO report

t is envisaged that over INR16 trillion (USD260 bilin India are expected to play a vital role in providing housing lion) per annum needs to be invested to achieve the to all by 2022. Therefore, the real estate sector is looking for government’s vision of ‘housing for all by 2022’, indicertain reforms from the Reserve Bank of India (RBI) to meet cates the KPMG -National Real Estate Development a total requirement of nine crore houses, and investment of Council(NAREDCO) report launched at the at least USD2 trillion by 2022, as per KPMG study. The real NAREDCO Conclave at Hotel Trident in Mumbai last estate sector, one of the largest employers in India has received month. the least amount of money from the banking sector; less than “For the first time, such an exclusive full day event is hap4 per cent of total advances, hence the developer community pening concerning the banking and the financial issues in the has to depend on alternate sources of funding which quite exreal estate sector. All issues will be placed before the RBI/the pensive and short-term in nature. Government of India, banks, and HFIs by realtors at one The report indicates new mechanisms such as External platform, which will help policy makers to conCommercial Borrowings (ECBs), which currently sider it positively to fulfill Honourable the RBI has allowed for USD1 billion annually Prime Minister’s dream to create nine (only for affordable housing development), crore houses by 2022 worth USD2 needs to be raised to USD10 billion. trillion,” says Sunil Mantri, PresiBorrowing money through the ECB dent NAREDCO, Chairman mechanism for real estate projects Mantri Realty Ltd. must be given permission at the earAccording to the report, about liest. Unless and until massive supINR9.5 trillion (USD150 billion) port from the banking sector in is currently invested in the real terms of finance is provided, investestate sector annually, of which ments in the sector may not grow at about 80 per cent or INR7.5 trilthe target rate of 12-13 per cent anlion (USD130 billion) is invested nually till 2022. in housing development. Thus, inCurrently, the real estate sector convestment in housing needs to be tributes around 6 per cent to India’s doubled, which can be achieved if inGDP, and KPMG expects this share to be vestments are steadily increased by 12 increased to 10 to 12 per cent of the GDP to13 per cent per annum. share by 2022. This growth in the real estate “The government’s vision of ‘housing for industry is also expected to boost 250 Sunil Mantri, President NAREDCO, all by 2022’, requires more than USD2 trilother ancillary businesses dependent on Chairman Mantri Realty Ltd. lion to be spent in the next eight years to it, thus, helping the overall growth of the build nine crore houses. The investment economy. Overall, the real growth of inin the sector, which has grown at less than 2 per cent per vestments in the sector has been less than 2 per cent in the annum in recent years, needs to grow at about 12 to 13 per last couple of years. cent per annum (unadjusted for inflation). Strong reforms The report also suggests that the Government in India should targeting higher flow from lending institutions (banks and increase its allocation within the real estate sector, facilitate NBFCs), households, private savings, and foreign capital are development of affordable houses, and should work towards the need of the hour, which can be achieved by developing streamlining the approval mechanism, which currently takes long-term financial instruments for the real estate sector, about two to three years. According to the World Bank, on an opening up external commercial borrowings, incentivising average, it takes about 34 procedures over a period of 196 days housing investment, developing PPP mechanism, streamlinfor obtaining construction permits in India vis-à-vis 14 aping approval mechanism, and reforming the Rent Control provals over an average of 150 days in the OECD region, and Act,” says Neeraj Bansal, Partner and Head of Real Estate and 16 approvals over an average of 222 days in the South Asia reConstruction, KPMG in India. gion. By reducing this time-frame, the churn of capital in the The report also states that banking and the financial system sector could increase substantially. n

October 2014 OBSERVER DAWN

RNI Reg. No. DELENG/2013/50357