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March 2014

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38 14

COVER STORY

Desk News Arihant Group Launches

Policy

Will New Government Bring in Cheers to the Realty Sector? The next government at the Centre

Arihant South Winds at Planet Surajkund

OBSERVER DAWN

May 2014

In Focus Mixed Land Use Policy: An Emerging Trend

Expectations are galore from countryâ&#x20AC;&#x2122;s burgeoning realty...

Outlook

NEW HORIZON

The Next Realty Destination

The kind of location advantage that Noida gets is unbeatable.

More Indians Choose to Work in India...

March

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Letter From the Editor

Why It's Best to Tread Cautiously I

t is said that economics trumps politics in the long run. That, come what way, country will steer away from low growth regime even as expected change of dispensation at the Centre doesn't happen. Market experts always pitch for a government which remains stable for the term and is led by someone whose leadership understands the market dynamics and accordingly pursues policy and initiatives. But in a country as vast as ours, people's mandate may not be as conclusive as desired. This leaves them to remain on guard. Still, there is no stopping us to hope that a newly elected government has the coherence and leadership to begin to deal with the mess which is impacting sustainable growth and development. For example, there are problems galore with our infrastructure and there's little doubt that we must improve our approach to projects and undertakings in terms of functionality and efficiency. For sustained high growth, critical needs relating to power and logistics, with its interdependent linkages, need to be addressed for de-bottlenecking. Taking into account the role to be played by the new government, the highway ministry has also come out with its wish list. The ministry seeks, among other things, greater leeway to choose between Public Private Partnership (PPT) and Engineering Procurement and Construction (EPC) modes while awarding projects. If accepted, the proposals will help the highway construction sector gain momentum and improve the availability of liquidity. Over the past two years, the sector has been witnessing a dry spell despite the fact that during 2011-12, it had hit a record high with the National Highway Authority of India(NHAI) awarding about 6,644 km of highway projects. As far as expectations from real estate fraternity are concerned, they too are looking forward to revival in demand for housing and office space. They, perhaps, miss the point that demand can be revived only in medium term if economy picks up. Everyone agrees that real estate sector has been in the grip of sluggish growth for some months. High inflation, economic and political uncertainty, high property prices and high cost of loans have left home buyers with no choice but to abandon their plan for homes. According to a property research firm, unsold inventory is so large that it will take couple years to clear it. On the office space front, net absorption of space continues to be dwindling. Thus a major chunk of customers are waiting to book when sentiment improves. Experts say that situation on the side of demand and supply can be improved with reformist agenda like a push for environment clearance to free the blocked land for big projects and making regulatory authority really functional for speedy project approvals. Also, on increasing liquidity, implementation of Goods and Services Tax(GST) and operationalisation of Real Estate Investment Trusts (REITS) could play key roles. However, things don’t move the way we think. Sharing optimism for industry revival is always welcome but we need to have a cautious approach and tread accordingly!

Market experts always pitch for a government which remains stable for the term and is led by someone whose leadership understands the market dynamics and accordingly pursues policy and initiatives.

Connect with Hariom Tyagi

Hariom Tyagi Editor, Observer Dawn

@harityagi2003 @harityagi2003 @harityagi2003 @harityagi2003

DESK NEWS Arihant Group launches ‘Arihant South Winds’ at Planet Surajkund

rihant Group recently announced the launch of its Rs. 175 crore Arihant South Winds at Planet Surajkund, Sector-41, Faridabad. Spread over 1.65 acres of land, this twin tower luxury residential project will have 72 units with per unit size ranging from 2275 sq. ft., 2685 sq. ft. and 3295 sq. ft. and will consist of 3 BHK, 3 BHK + servant quarters and 4 BHK. Possession of the flats will be oﬀered by 2017. The project is strategically located at Planet Surajkund which is an upcoming locality in Faridabad and is only 1 km (approx) from the proposed metro station at Sarai Khwaja. Surajkund is just 10 minutes from Delhi and is well connected with the rest of NCR. The proposed metro line will further enhance the connectivity of the area. Mr. Kaushal Jain, MD, Arihant Group, said, “We have been one of the prolific realtors of NCR and keeping in line with this name, we have launched yet another masterpiece of luxury housing. We would like to give our esteemed customers a wonderfully created home because their comfort is what we seek. With Arihant South Winds,

we oﬀer a great living experience and have incorporated all aspects of luxury living. We are confident that it will receive an overwhelming response from homebuyers as it is closely located to Delhi yet a little far from the din of city life.”. n

SVP Group receives completion certificate for its Gulmohur Garden Phase-I Projects

dding another feather to its illustrious cap, SVP Group has received the completion certificate for its premium residential project Gulmohur Garden Phase-I in Raj Nagar Extension, Ghaziabad. Following this milestone, the developer has started offering possession for 720 flats in the project. Mr. Ankur Jindal, COO Sales, SVP Group: “We have always put our commitment to our customers at the forefront. Keeping in line with this trend, we have received the completion certificate for our much acclaimed residential project Gulmohur Garden Phase I with 2 & 3 BHK options. After acquiring this coveted credential, we have started giving out possession of 720 flats of the project. I am sure the residents will be proud to have such a high end residential address to their name.” At par with other premium residential projects of SVP Group, Gulmohur Garden Phase – I has all the necessary facilities and amenities of a premium home and that too at an affordable price. Spread over 15 acres of land, the project is just half a kilometer from the 6 lane expressway. This nature friendly residential complex is built according to international architecture styles to comply with the lifestyle of those who admire western living standards. The homes are spacious, accommodating and have reserved area for greenery. n

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May 2014

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DESK NEWS

Homes Connect An emerging Consulting Comany

t times, though it’s rare, something big happens. A new name appears on the horizon and soon conquers the world. That’s Homes Connect. Associated with some of the leading property developers Homes Connect is one of the fastest growing real estate consulting companies and boasts of extensive reach both in India and abroad. A professionally managed company led by a team of outstanding professionals with more than a decade of experience in the world of Property is the project underwriter for some of North India's biggest developers. A venture of Mr. Sanjeev Varshney, Mr. Rishabh Jain and Mr. Krishna Kumar Singh who want to establish new paradigm in real estate consulting and bring professionalism in this by and large unorganized sector. The range of services at Homes Connect `includes

sale & purchase, leasing & renting, advisory & counseling apart from home loans. What also makes it stand apart is its hands-on approach. Undertaking site visits, keeping clients posted with the latest developments, keeping a tab on construction progress while at the same time negotiate most lucrative deals. A firm believer in the adage, Customer First, Homes Connect does not believe in making one size fit all. Rather it has pioneered a process that seeks to understand its client’s requirement first.n

Kajaria unveils three new Kajaria Galaxy showrooms in New Delhi

ajaria, India’s largest manufacturer of ceramic and vitrified tiles, announced the opening of three new state of the art Kajaria Galaxy showrooms in the capital on 12th April,Showrooms were inaugurated by Mr.. Ashok Kajaria (Chairman & Managing Director), Mr. Chetan Kajaria and Mr. Rishi Kajaria (Joint Managing Directors). The showrooms offer over 4000 sq. ft. of wall and floor tile concepts from Kajaria wherein visitors can take advantage of a touch and feel experience of the complete range on offer. Systematic and attractive displays enhance the visual retail experience while Kajaria’s expert team provides guidance on the basics of the tile installation process, selecting the right designs in addition to other material and technical aspects of tiles. The three new outlets are Dehradoon Marble House – WZ-1390/4, Pankha Road in Nangal Raya, B.. Sanitary Emporium, 127, Samman Bazar in Bhogal and Pranay Tiles & Sanitary Mart, A-253, Main Chattarpur Road in Chattarpur

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May 2014

Extension. For the first time customers in New Delhi will have access to Kajaria’s complete variety of international quality tiles in all categories like ceramic, polished vitrified and glazed vitrified as well as extensive sanitary ware options under one roof. The showroom is a single address for the most amazing décor solutions that are in vogue both nationally and internationally.n

DESK NEWS

Continental’s Radial Truck Tires in Indian Market

he international tire manufacturer and automotive supplier Continental has started production and distribution of radial truck tires in the Indian market. With an initial annual production capacity of 220,000 radial truck tires, a dealer network of more than 1,400 outlets and sales & customer service teams in more than 70 cities across India, Continental takes the next step in expanding its reach in India after acquiring Indian tire manufacturer Modi in 2011. “Introducing Continental radial truck tires into the Indian market is a momentous occasion for us. India is the second largest market for truck tires in the Asia-Pacific region (APAC) and we strongly believe that our premium technology products, manufactured locally and distributed through our Indian market organization, will make Continental a preferred partner in the tire replacement and original equipment business,” states Dr. Andreas Esser, Head of the Commercial Vehicle Tires business at Continental.Investing in local production capacities is part of Continental’s strategy to diversify its global manufacturing

footprint and expand business in growing markets, such as India. Continental has invested heavily into the construction of a new production building alongside with machinery for making radial tires. Furthermore, Continental brought experienced staff from some of its other international production sites to India in order to train local staff on the new machinery and production techniques. Also, more than 100 local employees were sent abroad to the international production sites in Germany, Romania, China and Malaysia for comprehensive training in radial tire production and technology. n

Gulshan Homz to offer possession soon In the run up to the general elections, the real estate market has been witnessing quite a minor hurdle. Experts and developers feel that post elections, all those investors who were playing the wait and watch game will resume with their investing. Also, after elections the lost demand will catch up as a new government at the centre will promote stability in the processes and procedures. At the same time, the property prices are expected to rise substantially since the circle rates in Delhi are to be revised and demand in NCR will catch up quickly.To bridge the gap between the upcoming heavy demand and required supply, developers in the sector are gearing up with their projects to offer. Gulshan Homz, one of the leading developers of NCR will soon be offering possession of its ultra-luxurious project, ‘Gulshan Vivante’ which is located at Sector 137, Noida Expressway. Has been already known as the commercial hub of NCR due to a very strong presence of IT sector and giant MNCs. Therefore, an ultra-luxurious residential property is something that will match the standards of the region.n

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May 2014

Autodesk launches 2015 Design Suites in India

eaturing tighter integration with Autodesk cloud services, the 2015 Design Suites offer customers the ability to collaborate, simulate, analyse and more, with just one click from within the suite, the company said. Each Suite includes AutoCAD 2015, which comes with a new interface and enhanced productivity tools that will enable customers to experience a new standard in design and documentation. Additionally, Autodesk Subscription connects customers with software updates, services and support. Autodesk InfraWorks 360, which offers civil engineers additional cloud services for collaboration and analysis at the early stages of infrastructure design, includes an updated UI, support for more data formats, enhancements to Roadway Design for InfraWorks 360

and a new application Bridge Design for InfraWorks 360. The Design Suites for these fields also feature full integration of the Autodesk 360 Rendering service, which uses the virtually infinite computing power of the cloud to create high-resolution renderings efficiently. Pradeep Nair, MD, Autodesk, India and SAARC, said, “The Autodesk portfolio now has something for everyone who is involved in the design and making of products and projects. Users will notice a significant difference in how much easier it is to get their work done with the Autodesk 2015 Design Suites. And with Autodesk Subscription, users get flexible options to utilise cloud services for design.”.n

' To Media With Love' by Anjanna Kuthiala & Ahujasons

powerful glamorous evening aptly coined as ‘To Media with Love’ was presented by GTM blessed floors along Art of Living in association with Ahujasons shawls. The art works by Anjanna Kuthiala were un-

veiled to reflect the core message – Thanking media for all their eﬀorts towards womens causes. The evening was powered & conceptualised by BrandRepublix, a luxury consulting firm. Set in the uber luxurious Dusit Devarana, New Delhi (A Bird Group Resort),each of 20 personalities felicitated reflected pushing womens causes during their careers. Some of these being Shobhaa De, who was the Guest of Honour, Anna Vetticad, Atul Wassan, Indian former cricketer and columnist, Actor Shekhar Suman, eminent television personality and Director, Richa Anirudh, Social activist Teena Sharma to name a few. Eminent personalities such as Mr.Ankur Bhatia, Mr Tushar Kumar, Mr Bhuvan Ahuja, Mr Sudhir Tailang graced the occasion. Heralded as the purveyor of finest Pashmina Shawls and Scarves in the country, Ahujasons embarked on a journey to Salute the Women Achievers of the Country and as a part of their campaign joined hands with Anjanna Kuthiala in the event titled To Media With Love.n

May 2014

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DESK NEWS AVJ Group Presents Retail, Entertainment and Hospitality under one roof!

VJ Group, one of the leading real estate company in Delhi-NCR has expanded its footprint by launched its commercial project. AVJ Plaza at Bhiwadi the gateway of Rajasthan. Avj Plaza is a new hub of recreation, leisure, fun and entertainment with guaranteed fun every time. This complex will cater to the shopping requirements with sprawling fountains and land scaping. This will be one of finest shopping and leisure destinations of Bhiwadi.Avj Plaza encompassing a total of 5 floors contains luxury shopping complex, luxury oﬃce spaces, retail shop spaces and business suites which will cater a need for everyone. It is Spacious with numerous area to relax with your taste buds dining on a wide range cuisine and trendy, beautiful dimmed lights with lounge music. It has great Amusement facilities like game parlours and diﬀerent leisure activities.It contains food court, fashion brands, restaurants & bar, health & fitness brands, car parking, fire detection & fire fighting system, cyber café,100% power backup, 24 hours fresh water supply, closed circuit monitoring, lift and stairs facility. Shopping

complex consists of ground to fifth floor in which ground floor and first floor contain shops and rest of the floors contains commercial oﬃces and basement parking facilities.“People changing lifestyle with higher aspirations in the satellite towns have lead to a prosper demand of modern facilities of metro towns. At Avj Plaza we have tried to address their needs by launching a commercial mall. n

After Orchid, JM Housing Focuses on Aroma

M Housing, known for its on time delivery and quality construction had recently announced the possession of its project ‘JM Orchid’ situated at Sector 76, Noida. The best feature was the delivery as per the promised time and date. The company now has its eyes all set for the delivery of its next ongoing project ‘JM Aroma’, which is expected to give possession next year end. JM Aroma is located at Sector – 75, Noida, which is at a very close proximity to JM Orchid. JM Aroma is situated at one of the most prime locations of Noida. The project is the combination of meticulously designed 3 and 4 BHK apartments with all modern amenities such as club, swimming pool, gymnasiums, landscaped gardens, children’s park, water supply, round the clock security, power back up, etc. Being in a prime location, it shares a wonderful link by roads; public transportation is obtainable at a walking distance. The nearest metro station is just 10 minutes away from the project. Developed sectors such as sector 50 and 51 being nearby; provides it with an additional advantage. The company is oﬀering 3 and 4 BHK apartments varying in size from 1325 sq. ft. to 2550 sq. ft. The project is expected to deliver a total number of 598 units approx. n

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May 2014

Clay Craft India rolls out Summer Collection

ndia’s fastest growing manufacturer and retailer of fine bone china and ceramic tableware, Clay Craft India has introduced the summer collection of fine bone china and ceramic table ware and tea sets. The designer mug sets are made with a notion of making everyone’s morning energetic with a cold coﬀee and breakfast. Coupled with icecream bowls, attractive dinner ware are also introduced to indulge with yummy desserts. Mr. Bharat Agarwal, Director, Clay Craft India, says, “Indian lifestyle of dining is changed and people demand for fashion even in dining crockery. Various utensils of kitchen are now being replaced by either fine bone china, ceramic or thermowave products. Following the seasonal demand, we have introduced summer collection that has a theme of ‘Buttery Bloom’ and it includes the mild colours and wider space that looks buttery. We have introduced new designs and colours that have a feeling

of iciness. One can enjoy the cold coﬀee with newly introduced summer mugs to enjoy the noon.” Trending on Clay Craft’s stores and online web portals like Jabong.com, Fabfurnish.com and HomeShop 18; Belle Premium Gold Dinner Set of 36 pieces, Urmi Dinner Set, Georgian Tea Sets and Zseries of Mugs are becoming first choice of customers. In addition, family tea Tumblers, is gaining popularity as it has unique feature of choosing colours for each family member. Clay Craft India’s core competency lies in its extensive network across India. With nearly 10,000 retail counters and over 150 channel partners, the company also enjoys partnership with major retailers like Big Bazaar, Home Center, Lifestyle, Spencer, Homeshop 18, Jabong.com etc. n

Prateek Group bags yet another best project award

rateek group, one of the leading developers of Noida, again came in to picture as recently in a real estate award ceremony conducted by one of the leading publications of the country; Prateek Group won the award for the “Best Residential Apartment Project Noida, Mid Segment”.Prateek Group was incorporated in 2005 with a vision of quality and on time delivery. Founded by Mr. Prashant Tiwari, it is a young and vibrant real estate company with a lot of passion and burning ambitions. Passion to build unmatched structures with innovative designs, fresh ideas, beautiful aesthetics and high end technology, and an ambition to raise the bar the way people live, work and play.Prateek Group has been very well known in the NCR market for delivering great quality projects. It has got various projects in all segments, be it aﬀordable, mid, luxurious and ultra-luxurious. This feature of the company makes it unmatched from others. By winning this award, Prateek Group has proved yet again that it is a

strong name in the real estate market to reckon with.Following the success of this award, Mr. Prashant Tiwari, CMD, Prateek Group says, “There is no better feeling than holding a trophy of success. We feel very honoured and privileged for being recognised for our work. n

May 2014

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DESK NEWS Panchseel rewards Fantastic-50 Lucky Winner With Honda Amaze

leading real estate company of NCR rewarded its valuable customer for honoring a trust and becoming a part of Panchsheel family. The reward was given on the basis of lucky draw for Panchseel fantastic 50 offer plan. This event was held at Panchsheel Greens II project in Greater Noida West Sec-16 in presence of its customers and staff members. Among first 50 customers, 1 lucky customer was assured to win a Honda Amaze car and every subsequent customer buying home under this scheme was guaranteed with a gift. The subvention Fantastic 50 – ‘50:50 payment plan’ scheme announced by Panchsheel was for all its residential and commercial projects in Noida, Greater Noida and Ghaziabad.Mr. Anuj Chaudhary, Director, Panchsheel Buildtech opined, “We are very delighted for an overwhelming response from our customers, since the time of Fantastic 50 scheme was announced. We have added nearby two slots for Fantastic 50 lucky winners. There are extended numbers of people who par-

ticipated in this scheme and made it a success for us. Panchsheel will always bring exclusive and focused campaigns for our patrons that will benefit to shape up their dreams, converting them to reality. We are excited to announce the lucky winner and make them happy and lively with gifts.” n

Cosmic launches "Cosmic Cruise

nown as “CosCruise”, mic Cosmic Group has launched its commercial-cumresidential project in Greater Noida (west), Knowledge Park – V. The project is spread across 10 acres of land approx with an IT park in shape of a cruise, providing 7star facilities. The Group is offering office spaces, studio apartments, IT plots and premium villas. Mutreja, Sushant CMD, Cosmic Group

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May 2014

says “Earlier,Greater Noida was a place only for industries and plants & machinery and it was regarded unsafe plus, difficult to reach. With so much of development carried out on infrastructure and connectivity, this place now has everything that a resident would require. Now, even Noida and Delhi have become extremely close, so investors feel to invest in what is new & best and this has driven people to invest here. There are several housing projects underway here; these will get the most benefit out of the recent approval for metro connectivity”. n

yamuna expressway

Hogging the Limelight

Le SoLitairian W Y

ith unwavering commitment to professionalism and a pool of extremely resourceful and talented business heads, Le solitairian is all set to take the living experience to next level.

amuna Expressway is one of the ideal locations in NCR where real estate has tremendous growth opportunity, as it provides seamless connectivity between Delhi and Agra. Another factor that makes real estate at this location an attractive proposition is the Formula 1 racing track. To cash in on the opportunity, there are numerous developers, who have already taken a step forward to build skyscrapers, townships, residential schemes and more, along this expressway. Equipped with incredible expertise in the field of civil construction works, the Solitaire Realinfra Pvt. Ltd that possesses multi-layered expertise in real estate and infrastructure domain has already taken a big plunge into the growing real estate profile of this region with Solitairian City, a project of aﬀordable luxury homes. With unwavering commitment to professionalism and a pool of extremely resourceful and talented business heads, Le Solitairian is all set to take the living experience to next level. It will not be wrong to say that the expressway is like a magnet for many, as the real estate projects being developed along it are on a continuous growth track. Since there is abundance of land availability in the area, the idea behind boosting residential schemes is to develop the region as a residential paradise, besides raising the real estate profile of the whole region. There are many projects that are built on this ideal location equipped with the world class medical centers and hospitals, top

notch educational institutes, hotel conventions and exhibition, stadiums and restaurants etc. at a walking distance. Good surroundings and easy connectivity are among the attractive factors that play a vital role for the buyers for zeroing on the world class Solitairian City. According to Mr. Harjeet Singh Sahni, COO, Solitairian Group “As a developer, our speciality lies in commitment to timely delivery and quality construction. Yamuna Expressway certainly meets these requirements and offers plenty of land where residential, or commercial, both developments are possible.” “Projects that are spread across acres of land and have potential features like the green cover, 2/3/4 BHK apartments, villas and cottages accompanied with fully equipped leisure areas help the customers to make quick decisions. Solitairian City is one such luxurious projects that offers affordable housing options for everybody that are not only to lure others but assure to a placate living to its discerning patrons,” he adds. The project has been priced very significantly depending upon the area provided, i.e. Basic Sales Price (bsp) of Rs. 3850 per sqft for two Iconic towers and Rs. 3350 for rest of 11 towers is offered by the Solitairian City; 309metres away from glamorous Formula 1 racing track. To have a better understanding of the zone, a visit to the area will show how the real estate development at Yamuna Expressway location is brimming with great potential. n

May 2014

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POLICY

Will New Government Bring in Cheers to the Realty Sector?

ndia Inc is closely watching and waiting for an outcome which would bring in fresh ideas, needed support and great push to revive the growth. As a largely unorganized sector which depends on dose of support from the government of the day, real estate mandarins are looking at askance about what awaits them. A government with a probusiness agenda is what they are looking for. Industry experts regret the fact that enough is not being done to revive the economy despite tremendous potential and resources available in India. They point out so many reasons to put the policy makers and planners in the dock even as the nation is crying to emerge out of abysmal situations. Just a few months back, parliament passed the Land Acquisition Bill, after incorporating and introducing views

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May 2014

from land owners, developers, social activists and policy makers. But the whole exercise and the â&#x20AC;&#x2DC;balanced billâ&#x20AC;&#x2122; remained short of fulfilling the expectations from developers who view it as more complicated than earlier. Given that acquiring land is economically and socially a sensitive issue and if not handled properly, could invite protests and sometimes violent reprisals, governments, both at the Centre and States, play safely, even if that means derailing or blocking the projects which were okayed earlier. A consensual but pragmatic approach is needed and a level of transparency in land dealings needs to be shown. And there are so many factors aďŹ&#x20AC;ecting the smooth functioning of industry. Thus opinions seem to varied among developers and real estate mandarins on the expectations from the new

Mr.devender nagpal CMd,Colours delight Group

dr aniL jindaL SrS Group

government which will be formed when the 9-phase polls are completed. “The Indian realty sector has been expecting stringent actions and policy initiatives by the government, but ironically nothing significant has happened yet. Being a realty stakeholder and a player of the sector, we have lots of expectations from the government,” says — Mr.Devender Nagpal, CMD,Colours Delight Group. The biggest requirement for the sector is to ensure the enough liquidity in the sector. “Liquidity is the root cause of the blockages evolving on the great Indian realty show. If the new government takes bold decisions to ensure the enough liquidity right from the acquiring of lands to delivering properties to end residents, the realty sector may become a major contributor to the Indian economy by utilizing and harnessing its potential to the fullest,” Mr. Gupta says. Categorically, he counts on some of the very crucial measures in form of expectations from the new government; here are some of them: 8 Real Estate Investment Trusts (REITs) have good objectives of transparency and big investments, but it failed due to slowdown. SEBI’s initiatives must not go in vain; the new government must address the challenges for REITs. 8 Foreign Direct Investment (FDI) must be allowed in acquiring the agricultural lands and constructions. 8 The painful areas of the new Land Acquisition, Resettlement and Rehabilitation (LARR) Act must be addressed and it should be development friendly. It has caused inflating the cost of the lands and severe complexities in acquiring the land. 8 The new government should be politically strong enough to implement the much awaited GST regime. 8 The real state sector has been confronted with high interest rates for quite a long time now and we need a conducive environment now. The new government must implement the ways that nurture the developers’ fraternity with suﬃcient fund supply.

realty Bites: they look for a stable government to boost the sentiments "While the real estate market sentiment is driven mainly by demand from buyers of flats for self use, investors booking flats and shops for short/long term return could also tilt the demand to some extent. The buyer looking for house for own use, is least concerned for the Election or its result and for him a dream of roof above head is coming true and he wants it to happen at the earliest. The Election results might be of inter-

dr. KunaL banerji CMo M3M india

est or concern for the investors and only to this extent, there could be short term sluggishness in the real estate market". —Mr. R.K. Arora, CMD Supertech The current euphoria around the Indian elections is centered around the fact that the next government will be more stable and shall provide strong political leadership. It is also widely expected that it will focus its energies on pushing policy reforms and initiatives while kick-starting project clearances and investments. This clearly means that economic revival will be the topmost priority for the new government. What this will eventually translate into will be lowered inflation and a host of growth, investment and job creation measures. It will naturally mean a stable outlook, a confident business environment and higher income levels and positive buyer sentiment. Another realistic expectation will be the moderation of interest rates that will make the cost of loads cheaper for the real estate buyers. So the real estate industry is surely looking ahead with all the optimism it can gather. It is expected that all the industry shall once again enter a healthy growth period that will have a positive impact on all its facets. The existing projects should gather greater steam, the secondary market will become more active and investors & end-users alike will look for increased participation. It will also trigger faster constructions of projects in the pipeline, leading to increased deliveries. Similarly, pockets of inventories should also get toned down. So overall, one is optimistically waiting for the elections to be over and the formation of the new government. Like all other sectors, the Real Estate industry too is looking ahead for a new phase of growth and customer delight. —Dr Anil Jindal, SRS Group Many real estate companies are waiting and watching for the results of the forthcoming elections before taking any decisions on launching any new projects. Although there is no doubt in my mind that there will always be a robust demand for the primary buyers in the middle income segment for homes, the secondary market is largely dependent on market sentiments and the state of the overall economy. That's why it is very important to have a stable government after the results. We want positive proactive measures and not procrastinations. —Dr. Kunal Banerji, CMO M3M India “As we all know everything comes to stand still and looking forward to upcoming union election same in Real Estate as we are hoping for the best to come across. Homebuyers had serious complaints about the high prices of residential

May 2014

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POLICY

Mr. r.K. arora CMD Supertech

vijay jindaL CMD, SVP Group

property, which caused concern in the realty market of the Delhi NCR last year. Due to this reason, demand did not take off as expected. We are expecting a good and stable government, who will put a good effort to enhance the GDP which will directly influence each and every sector including real estate”. ---Vijay Jindal, CMD, SVP Group “If new supply comes in at an affordable-price band, demand might take an upturn. In fact, most of the end users who are living or staying on rent will purchase a house in 2014. An almost equal number of second-home buyers or people with dreams of bigger homes or long-term investment will be able to fulfill their requirement this year. A stable government in place by mid-year, 2014 should see a more robust economic environment, which will definitely help the real estate sector”. -- Kaushal Jain, MD, Arihant Group “2014 looks to be the year of hope after a dull and average year (2013) for the real estate industry. This sector is governed by several factors like the growth of the economy, stock market and overall consumer sentiments. We hope to get a stable government by the middle of the year and inflation is also expected to ease in 2014. Rates of interest are at their peak and are expected to fall from here onwards. These factors will create positive sentiments and the sector may look up again. I expect the demand to pick up and prices to firm up from the second quarter of 2014.” -- Gaurav Gupta, Director, SG Estates Ltd. “The need of the hour is to provide impetus to the sector in order to drain away the negative sentiments associated with it. For this, we need a stable government that will come out with corrective fiscal policies. Whichever party comes to rule the country should understand that housing is a basic need and should be addressed seriously. It should provide an

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May 2014

KaushaL jain MD, arihant Group

expectations are galore from country’s burgeoning realty sector which, despite its tremendous contribution to economy and prosperity, is trapped in complex policy and ever growing liquidity crunch.

suMit berry MD, BDi Group

Mr. sanjeev srivastva Wholetime Director, Crossings infrastructure Pvt. Ltd.

amiable environment for homebuyers so that they can purchase their dream home. This will bring equality in the demand supply ratio which will benefit developers also.” —Sumit Berry, MD, BDI Group A lot has been said about the revival of the real estate sector in 2014 in direct contrast to the disastrous 2013. While we are yet to see some robust results, nevertheless, all eyes

Mr. Manoj Gaur MD, Gaursons india Ltd.

are focused on the upcoming elections and how the ruling party is going to chalk out ways for a brighter future of this sector. The interim budget hardly made a serious note on the burning issues facing the industry; so the new government must do its best to boost up the sentiments since realty is a crucial sector of the economy.” —Sanjeev Srivastva, Wholetime Director, Crossings Infrastructure Pvt. Ltd. “The passing year saw major economic turbulence like the rupee plummeting, inflation spiraling, interest rates escalating, tight liquidity and large debts. This made investors, especially NRIs, skeptical about investing in the sector which is why there was huge piled up inventory. This group is eagerly looking forward to the general elections and hoping for substantial remedial measures from the winning party. If India hopes to revive its economy, then real estate cannot be ignored at any cost.” -- Manoj Gaur, MD, Gaursons India Ltd. n

May 2014

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IN-FOCUS

MIXED LAND

USE POLICY

AN EMERGING

TREND Mr. dujender bhardwaj direCtor, abCZ buiLders Pvt. Ltd.

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Mr. Pawan jasuja direCtor- FinLaCe ConsuLtinG

May 2014

Mr. satyendra toMar joint Md- ProPLarity GrouP

ull of group housing and high rise projects, Noida is now ready to witness a complete makeover in coming years. The city will be a perfect destination for daily shopping, movie, meeting venue, oﬃce space, showroom, retail along with residential apartments. In process to pull real estate industry on track and woo buyers of all category, Noida authority has approved “Mixed Land Use” policy in the Master Plan 2021. Mixed Land Use is an emerging trend in real estate industry that allow to create retail, commercial, studio apartment, corporate suites, ATM, showroom, IT- ITES space, hotel, entertainment and food zone etc. in residential and industrial plots. Moreover this policy will open use of land for multiple purposes that will bring one stop solution for shopping, work, meeting, visits, entertainment that perfectly suit for MNCs, corporate, IT professionals, entrepreneurs, retailers and foreign investors. Breaking the monotony of the industry, it seems quite attractive for authority, developers, land owners and buyers since it will oﬀer equal opportunity for all. But for that Noida authority has implemented clause of “Change of Land Use” and it will cause heavy “Conversion or Impact Fee” from owner or buyer of the land. Coming to the requirement of Mixed Land Use is that currently Noida has only selected shopping destinations and market places like; Atta Market, Sector 15 & 16, and some more shopping malls that creates trouble for many who drive from their residential sectors for every small purchase. In this scenario, mixed land use development will fulfill not only residential but also commercial demand of the locality.

Current scenario According to the current proposal, authority has approved mixed land use on 24 meter wide roads but soon it may be applicable on 18, 12 and 9 meter wide roads because of rising demand from various sectors having land bank and the reason behind this is the oﬀerings that aremulti faceted, quite unique and first of its kind in India. At this point of time when investors are far away from market due to uncertainty of industry and retail buyers hardly participating in huge investment like; com-

Ms. shivaKshi GoGia joint Ceo- asCent buiLdteCh

mercial and retail space, it could be a trend setter in India. Besides this some industry experts are taking this as a ‘smart step’ of Noida Authority at right time to boost industry, generate revenue and bring potential investors in the region. But real estate is driven by real buyers and before coming to any conclusion, one should see benefits of buyers. To understand prospects for buyers, we discussed consultants who caters a big mass of buyers and investors and met Mr. Pawan Jasuja, Director- Finlace Consulting who claimed it a big bet for end users. According to him, “Seeing the ‘Global Business Scenario’, corporate and professionals are looking for locations with 360 degree business solution and living space in the close vicinity. ‘Work from Home’ concept has almost diluted in Indian culture and that fuelling mixed land use format in 21st century. Another major fact is that earlier commercial and retail places have been known only for big investors like; corporate, MNCs, and HNIs. For investors, it has never been an issue but this time or I should say, first time ‘small or retail buyers’ will also be able to purchase own office space in main land of Noida. Because under this latest development developers are coming up with small and mid size office space, in furnished and non furnished options and that also in most affordable cost like; 200 and 300 sq. ft. onwards at the rate of Rs 6,000/- per sq. ft. (approximate figure).” Mr. Satyendra Tomar, Joint MD- Proplarity Group who is coming up with project based on similar concept says, “Here I feel that developers of all categories have huge opportunity to explore on existing land bank and create an era of revolution in NCR. Currently Noida has few selected high street and shopping centers like; Sec 18, GIP, Shopprix, S1 etc. and few more are coming. But all are away from locations of high density population areas and office spaces like; Sector 4, 45, 49, 55, 56, 57, 58, 62, 63, 71 and 72 etc. People of these areas hardly get quality space for shopping, office, multiplex, hotel, ATM, food zone, retail space etc. In this scenario, I see huge prospects to develop Noida under mixed land use because it will pull people who require daily household things, big purchase and go weekly shopping and fun.”

Mr. anand raj Ceo- MMr GrouP

Mr. iFtiKhar ahMed direCtor, niraLa india

May 2014

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PROPERTY IN-FOCUS Upcoming Projects under Mixed Land Use- In Noida, sector 62 is leading in mixed land use since multiple projects are lined up and developers like; Assotech, Proplarity, Premia have plans in pipeline. 52nd Avenue of MMR and Supernova of Supertech is also based on the similar terms. Gr. Noida West is also one the emerging location that has mixed land use type project like; NX One, Intellicity, Imperia, Premia Corporate park and some more. Real Estate industry needs a boost from Govt. and mixed land policy has that potential. Seeing the variety coming in real estate, it is a good time to implement mixed land use in Noida. Buyers and investors are keen to see new and innovative ideas in the industry rather than just group housing and luxury apartments. I feel that mixed land use policy will open doors for many to bring innovative ideas in real estate to oﬀer a whole some package for investors and buyers, says Mr. Dujender Bhardwaj- Director, ABCZ Builders Pvt. Ltd.

Future opportunities and Challenges But on the other side many are talking about its effect on existing commercial space, residential apart from conversion fee and buyer’s response. First of all huge demand is coming up to allow mixed land use not only on 24 meter road but also on 9, 12 and 18 meter due to limited land bank and need of the hour is to create equal opportunity for all sectors and land owners. Before taking any decision on this, government, authority and policymakers have to think about upcoming development on these roads. Ms. Shivakshi Gogia, Joint CEO- Ascent Buildtech says, “Noida Authority has always been advocating greenery, wide roads and open space in the city and in this scenario, policy maker need to plan in advance to restrict sectors from being over crowded, problem of space crunch for daily commuters and traffic overload. Also they need to ensure security and solemnity of residents and offices of bordering sectors. Coming to other issue, many are asking for the higher rental and cost of the units because changing of land use will cost more for developers and at the end buyers will pay more for the same, be it commercial or residential.” Industry pundits are trying to analyze another possibility due to mixed land use is that what will be effect on existing commercial and residential projects in Noida. Taking opinion from Mr. Anand Raj, CEO- MMR Group, “residential and commercial both are equally in demand and mixed land use will not create any challenge for existing commercial and residen-

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tial projects because all have got some uniqueness in itself. Projects under mixed land use are in under process and will take time to become ground reality but on the other hand on going and existing projects have established their market. Upcoming projects will face different FAR issue for different zones, taxes etc. Hence I don’t think that there will be any hard core competition in between.” On the other side of the coin, this policy is a wait and watch concept for buyers till final commencement of projects. Noida has got a big IT hub and according to industry resources there are many building which are still waiting for occupancy because of huge space that causes higher rental. In this scenario, policy makers are also planning to bring projects that is viable not only for corporate but also for entrepreneurs, professional and small scale industrialists to operate from prime locations. According to recent reports, due to IT & ITES industry, commercial sector has noticed good investment and demand in 2013. India is still top in choice of MNCs for business purposes and such innovative ideas will spur demand of commercial space. Facts & Figures- According to data shared by Jones Lang LaSalle (JLL) around mid 2013, approximately 50 million (5 crore) sq ft of office space is across the county is lying vacant while current demand is 3 crore sq. ft. annually to fulfill demand. Most of the office spaces demand (55%) came from IT space and in 2014 it is expected to continue. Still industry resources say that many space are waiting for occupancy and in this scenario creating new will not make any sense. But the one of the major facts that has been ignored till date is location and rental. Due to wrong city or location, most of the commercial

places are vacant and in case location is right then higher rental is discouraging buyers and investor. Real Estate experts also suggest to involve retail or small buyers in upcoming commercial units to avoid vacant space problem.

scenario in neighbourhood Innovation always tend to set a benchmark and seeing the demand and growth prospects of mixed land use, recently Yamuna Expressway and Ghaziabad authority has launched schemes for commercial and retail, showroom, oﬃces, IT ITES spaces under similar terms. To pull industry and corporate, authority is expected to bring new schemes that will boost not only real estate industry and employment too. Both authorities have huge land banks that are fresh to allow mixed land use

based projects. According to Mr. Iftikhar Ahmed- Director, Nirala India, “Real estate is expanding towards tier 2& 3 cities such as Lucknow, Kanpur, Mathura, Varanasi, Agra, Bhiwadi, Baghpat, Haridwar, Ajmer etc. Therefore mixed land use could be a game changer in these markets where people hardly get any options other then plots, normal apartment or just a commercial unit. Similarly Govt. needs to bring more changes in policies to oﬀer more innovative projects that can create job opportunities and pull small as well as big investors simultaneously.” Noida authority has invited suggestions on the current policy and soon will release final proforma. Overall Mixed land use seems quite lucrative for real estate industry and it need serious implementations under proposed policy hence it could be a landmark of trouble too.n

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EVENT ANALYSIS

noida: Bridging the gap between Demand & Supply

In the coming months Sector 79 & Noida-Greater Noida Expressway Sectors will perform well as many established builders are coming up with good projects

emand & supply were perfectly matched in the Noida market. In fact, there was double the supply of property up to Rs. 20 Lakh than the demand for the same. Even in terms of property types there was a good match between supply and demand. Apartments were predictably most in demand and supply. The supply and demand of plots was small. However, when it came to BHK configurations, demand was far greater for 2BHK while the supply was more in the 3 & 4 BHK and above categories. There was more demand than supply of 4BHK and above units were twice the demand in the Oct-Dec 2013 quarter. “The last calendar year was a bit slow for the property market; however the last quarter highlighted by the festive season was slightly better for the market. NRI presence due to the fall of Indian Currency brought some relief. Sector 74-78 performed well due to lower values and good amenities. In the coming months Sector 79 & Noida-Greater Noida Expressway Sectors will perform well as many established builders are coming up with good projects and by the virtue of many connectivity options said.” – Mr. Sakib Ansari, Project Head; Goldmine Developers Pvt. Ltd.

ing demand and supply in the Oct-Dec 2013 quarter. 8

The property type in Noida City noted matching demand and supply in all categories. The multi story apartments though had matching demand and supply, but supply registered an increase of 5 per cent over the previous quarter. Over 80 per cent demand and

supply was seen in the 2 and 3BHK configuration, with supply exceeding demand by 5 per cent in 3BHK category and demand exceeding supply by over 10 per cent in the 2BHK category It is clear by the facts that investors tend to go for 2BHK, and if you are an end user then should go for 3BHK as there are good chances to get better deals due to more supply than demand. n

Property wise analysis.

The maximum demand and . supply of 36 per cent, was seen in the Rs 60-100 lakh category with supply increasing by 4 per cent. 8 The remaining categories , up to Rs 20 lakh, Rs 20-40 lakh and Rs 40-60 lakh also showed match-

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May 2014

Mr. Sakib Ansari, Project Head Goldmine Developers Pvt. Ltd.

Rousha Group

NEW HORIZON

Ushering a Revolution in Real Estate R

ousha Capital Investment (RCI) is one of the best real estate consultants in Lucknow and is slowly expanding its wing to the other part of the state like Agra, Bareily,Kanpur ,Gorakhpur,Varanasi and Delhi/NCR. Company has future plans for the entire India with expansion in other countries as well under the leadership of Mr. Sourav Rousha.

inspiring Management With a visionary who have led the organization from the front under his exceptional and pragmatic leadership, the Group has consistently grown in capability, influence and brand equity. They have been instrumental in ushering a revolution in real estate through acquiring cutting edge technology, introducing innovative new ideas, changing static mindsets and never compromising on quality standards. The guidance and expertise provided by the leadership of the company have been instrumental and helped the company in touching new horizons of brilliance in a short period. Started two years ago on January 2012, today the brand RCI in realty has become synonymous with trust, quality, transparency, luxury, style, modernity, comfort and convenience with the best consultants in the industry who work day and night to provide the adequate solution to the consumers with wide range of luxury apartments, residential enclaves, modern oﬃces, showrooms and state-of-the art multi storey complex’s. RCI has not only served the needs of its customers but have helped them in fulfilling their dreams from the start till the end as RCI believes in providing the best consultancy to its customers based on their dreams. The company has taken a radically diﬀerent approach as a consultant and advisers to individuals and institutional players interested in investments in the real estate. RCI’s in-depth experience in the real estate market plays a key role to carve an appropriate investment and financial plan customized to the needs of its clients over the years.

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RCI have a substantial experience in the real estate sector with a highly qualified and experienced team of professionals. With the best real estate consultants in the industry RCI has been able to provide exactly what its customers have asked for. RCI’s research and market study has always been based on solution providing strategy which enables it to provide potential plans to maximize the market value and secure investments for our customers with the highest possible returns contributing to steady and safe growth. RCI works with sustained eﬀorts not only to enhance customer satisfaction but to render ethical and professional services in compliance and respect for all community, environmental and legal requirements. RCI is committed to render best value to the investments of its clients without succumbing to the market pressures and the competitive business race prevalent in the industry. RCI have stringent standards and strategy of ethical working, client welfare and satisfaction, which has set it apart from most of the players in real estate market. Long lasting associations and a tabulation of satisfied customersis a testimony to the above facts.The Group strongly believes in educating the investors about the real estate sector other than just being a service provider, focusing on the proposition of selling. RCI believes that its primary responsibility as a consultant and advisor is to boost the knowledge and literacy of our investors by providing them with the accurate information that enables them to take informed and best suited decision at the time of investment. RCI’s work process starts with a client meeting objecting to a better understanding of its needs and requirements. Which then proceeds ahead and selection of right mix of investment options and an expert opinion about the

investment is provided to the client. Implementation and execution is later done by the team of executives along with continuous monitoring and regular feedbacks to the clients saving them a lot of time and hassle.

rCi resources • • • • •

Real Estate Investment Advisor Real Estate Consultancy Portfolio Management Residential Property Search and Expediency Bulk under Writing on Hi- End Project.

the Market overview and growth Mr. Rousha explains the real estate sector in Lucknow is growing at a rapid pace. The city renowned for its urbane manners, beautiful gardens, poetry and music, delectable cuisines and stately palaces is witnessing a renaissance with the entry of RCI in real estate consultancy in the city. Being the capital of the most populous state and located almost in the middle of the gangetic plains, the city has grown into a well equipped, well developed and well connected major market of northern India with numerous shopping malls, multiplexes, excellent infrastructural facilities, head quarters of many big business and service corporations, Bio-technology and information technology industry being set up in Lucknow is rapidly emerging into a global hub for diverse commercial entities. RCI’s wide and varied portfolios has already grown to more than 50 lacks sq. ft. and is working resolutely on a further 100 lacks sq. ft . Be it townships, residential apartments, commercial complexes or entertainment centers, RCI’s projects are truly world class and have earned a nationwide recognition.n

May 2014

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EARTH DAY

Earth Group

Pioneering the Growth of Green Building on earth day 2010, the Group started scripting a glorious chapter in fulﬁlling their dreams of living in fresh air and conducive atmosphere on the Planet earth.

ince 1970, Earth Day has been celebrated every year on the 22nd of April. It was envisaged to promote the idea of ecology, to encourage respect for life on Earth, and highlight growing concerns about diﬀerent kinds of pollution. To protect the planet Earth from any further degradation, people around the world have come together and decided to mark it as a ’sacred’ day in the calendar. First as concerned citizens and then as passionate and environment-friendly developers, a group of four people formed Earth Infrastructures Ltd. on this Special Day on April 22, 2010. They decided to construct green buildings where one can have the true feel of a “sacred place” instead of only four-walled structure made of bricks and cement. Since its inception, the Group is strictly adopting innovative construction technologies. Slowly but steadily, the sapling of Earth Infra planted four years back started showing like a full grown tree with a tremendous growth, paying dividends to each and everyone who have been associated with it. The stupendous growth that it achieved within a short span of four years has catapulted it as a household name. In the same period, it could successfully establish it as a group of companies catering to varied interests of customers. Buoyed by people’s trust, the Group started scripting glorious chapter in fulfilling their dreams of living in fresh air and conducive atmosphere, Leaving its peer group far behind.

Greener Living A famous philosopher Toni Sorenson says, “A journey through nature is always a road that leads to self-discovery.” Toni’s statement seems especially true when we talk about real estate sector. Until we ensure the homes for our residents in the lap of nature, we can’t lead to innovation driven society, a society where every person has greater sense of responsibili-

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ties and is caring towards nature as well as his or her life. This fact was in the mind of the creators of the Earth Group when they seeded a real estate company with the commitment of deriving Greener spaces to the citizens so that they prosper and excel in a natural way and may become innovative persons to further lead the planet. In order to promote the innovativeness among the individuals through their oﬀerings of green living in society, the creators of the Earth Group found their motto statement, i.e. ‘Innovation Beyond Imagination’. Not only that, with their objectives, the creators of the Earth Group also found the name of their venture as the Earth Infrastructures Limited and founded it on the very day of the Earth Day. So, the objectives were clear and path was defined. Now when the four years are completing, the creators find their journey very remarkable ones. They have set the benchmark in the Indian real estate sector and the Greener Living is the buzzword now. Every realty consumer is seeking his or her desired places in proximity to the nature. They want natural way of living and their life assembled with the non-artificial panorama and equipments.

tremendous Growth With the completion of fourth eventful year of corporate presence, Earth Group is now at forefront of the fastest emerging key players in the Indian real estate landscape with 12 running projects in Delhi-NCR and Lucknow, the legendary vibrant capital city of Uttar Pradesh. With around five dozen offices run by around 3000 skilled staff, the group has achieved a distinction of offering hassle-free services to around 15000 customers and number in each category is growing rapidly. Giving a push to expanding plan, in coming years, it is planning to launch several state-of-art-projects at Pan India level. The Group is planning to launch residential projects in Pan India including

Mr. avdhesh Goel

Dharuhera, Neemrana, Faridabad and Ludhiana. At the same time, it never compromises on its basic tenets to care for the earth.

dynamic Leadership The Group is set to be the most innovative and trusted brand in real estate industry by adopting new technologies with a focus on green and eco-friendly construction to fulfill the expectations of the customers. This is not possible without dynamic leadership. “No doubt we are encouraging urbanization. But we are doing it with certain previous commitments to care for earth. We know earth is our “Mother” and we cannot play with its “sanctity” at all. We, the human beings will lose our presence if

Mr. vikas Gupta

Mr. atul Gupta

we lose our Mother. Therefore, environment concerns are on our priority from the time of conceptualizing to completion of the projects,” said Mr. Vikas Gupta, JMD Earth Group of Companies. “We wish to state here that we never stop thinking for the future. We keep on planning for the future projects besides working for in time completion of the ongoing projects. As such, we do have newer things slated for the next year! We hope to have next year more projects at diﬀerent locations across the country. We wish to adhere to our commitments at the time of firmly establishing ourselves and known as furthermore innovative brand in the real estate sector in India in the years to come,” said Mr. Avdhesh Goel, JMD.n

Mr. rajnish Mittal

May 2014

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POLICY

Will the New Government Create Single-Window Clearance System for Housing Sector? n By Vivek Shukla

s the nation is in the process of electing the new government at the centre, the new government would be duty-bound to give due attention to much neglected housing sector. At the outset, the new government should set up a single-window clearance system to cut delays in getting approvals for housing projects and check cost escalation. It has to ensure that the average approval time from 196 days to 4560 days. Delay in obtaining approvals often increases the cost of a housing project 1.5 times. Presently, around 34 permits are required for housing projects. It is mind-boggling to say the least. Of course, the new government has to work overtime to reduce the time. “Like me all the stake-holders of housing sector are waiting for that day when single-window system for clearance of housing projects will see light of the day. I am only hopeful that better days will come for realty sector sooner rather than later. It is a diﬀerent matter that we are already late in implementing

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May 2014

Mr. ajay MaKen Former Union Cabinet Minister, Housing and Urban Poverty alleviation

single-window clearance system for housing sector,” says Mr. Samir Jasuja of Prop Equity. It may be recalled that the when Ajay Maken was looking after the Housing and Urban Poverty Alleviation ministry, it was formulating a single window system for clearance of real estate projects throughout the country following the report of a committee for streamlining approval procedures for real estate projects. It took this step on the recommendations of the Dhanendra Kumar Committee report. The Committee was set up in mid-2012. It was asked to recommend as to how single window clearance system can be implemented. However, once Maken was shunted from his ministry, everything came to standill. Sanjay Khanna, director of Delhi based Kailash Nath Projects, says that despite the fact that realty sector is such a key sector; it hardly got any due attention from the governments. Even though we are asking for regulator for it, the government is not taking any decision. That speaks volumes about government's seriousness for housing sector.

“admittedly, some realty ﬁrms are not up to the mark, the rest face the brunt of archaic laws and clearances to implement their projects. in order to get clearances, realty ﬁrms have to spend lot of time and money. hopefully, things will streamline once single window clearance system will be in place," says rajeev Chopra, Ceo of iLd developers.

It goes without saying that real estate market in various parts of the country is in a very sorry state with developers have to face real tough time in getting clearances and a system plagued by corruption. As recently as a couple of months ago, we have seen so many innocent lives were lost when an unauthorized building near Mumbai fall. It was constructed by shady builders with the help of corrupt government officials “Admittedly, some realty firms are not up to the mark, the rest face the brunt of archaic laws and clearances to implement their projects. In order to get clearances, realty firms have to spend lot of time and money. Hopefully, things will streamline once single window clearance system will be in place," says Rajeev Chopra, CEO of ILD Developers. Meanwhile, it is believed that once the new government will be in saddle, some of its key recommendations will be implemented. Some others, including setting up of an IT-based, single-window clearance system for proposals like a singleunified form to be put up at local municipality Websites, are being discussed. “The worst thing is that even for affordable housing projects, one has to make long haul to take all the permissions. I strongly feel that irrespective of whose party’s government will be taking over the reins, it has to work to streamline the affairs of housing sector. With around 34 clearance procedures starting from the local municipality to the top, the average minimum time for approving a project is really very long,” says Mahesh Sharma, managing director of Ma-

haveer Hanuman Group. It is a well-known fact that even the top officials of union government also admit privately that due to the cumbersome policies, projects take really long time. Naturally, at the end of day, customers are the worst suffers. Meanwhile, Anil Kumar Sharma, President, CREDAI-NCR, is of the view those unnecessary and sometimes motivated delays in clearances of projects and subsequently in issuing the NOC for possession purposes are not only affecting the buyers but also negatively impacting the developers. "The vested interests at the lowest level are so strong that they do not want any transparency in single window clearance. Now it is a chain of events, first get one clearance then apply for the second, the third and so on till all clearances are received. Why can’t we have a platform for the builder or the promoter to apply for all the required clearances together, "says Nikhil Jain, CEo of Ramprastha developers. Meanwhile, Dr.Arun Kumar, who has authored highly acclaimed book 'Affordable Housing’, is of the view that the new government must give enough boost to affordable housing sector. It has to encourage private players by providing cheap land to builders for construction of affordable houses. The dream to provide cheap housing to poor will be accomplished with really big steps and honest intentions. One only hopes that things will improve for the housing sector once the government takes charge in Delhi. n

May 2014

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PROJECT

Augati Highland

An Emblem of Peaceful and Prosperous Living A

angan homz Pvt. Ltd. has just brought in a standalone residential project, rightly named augati highland, and within a short span it became a cynosure for home buyers and property seekers.

here has never been so deep an enthusiasm among buyers and investors in real estate space around NH-24 Highway, Ghaziabad, as is seen nowadays and there are ample reasons for this new found love for owning property here. This part of Delhi-NCR now abounds in a slew of projects, both housing and commercial, and developers are making attempts assiduously to plan and execute their products at par with peopleâ&#x20AC;&#x2122;s expectations. With several options with flexible price, buyers are rushing in to utilize their resources in investing in property and they are not complaining either. Equipped with all that could make a landmark project a reality to those who yearn for it, like, ideal geographical area, the requisite land, logistics, resources and skilled man-power, Aangan Homz Pvt. Ltd. has just brought in a

Mr. Sanjeev Kumar Tyagi CMD Aangan Homz Pvt. Ltd.

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standalone residential project, rightly named Augati Highland, and within a short span it became a cynosure for home-buyers. Promoted by M/s Girijapati Infrastructure Pvt. Ltd. and ably led and propelled by Mr. Sanjeev Kumar Tyagi, companyâ&#x20AC;&#x2122;s CMD and his group of professional managers, architects and designers, the project proposed to build 461 flats comprising 2 BHK, 3 BHK and Duplexes on three and a half acre(approx.) of land in a serene and environment-friendly ambience. Flats are available in 935 sq.ft., 965 sq. ft., 985 sq. ft.(in 2 BHK category), 1360 sq.ft. and 1585 sq. ft.( in 3 BHK category). Priced in the aďŹ&#x20AC;ordable range of Rs. 27 lakh to Rs. 50 lakh, the Company is expecting a huge response from the buyers and the market and accordingly, it has started work on the site. As of now, it has decided to complete the project on time and deliver flats by the end of 2017. Mr. Tyagi, the brain behind this project which has already created a buzz in property market, needs no introduction as he has been associated with real estate development in Delhi-NCR for several years. By developing several commercial complexes in east Delhi and Noida, he contributed immensely in economic growth in the region. As an entrepreneur with hard-working, optimistic and get-going temperament, Mr. Tyagi has established himself as a man to reckon with the movers and shakers of industry. n

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COVER STORY

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May 2014

Leaving Indelible Footprint on

REAL ESTATE T

he Group makes it sure to make a long-term relationship with customers and herein lies the secret of Premiaâ&#x20AC;&#x2122;s tremendous success.

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COVER STORY

ith breakthrough innovations, aesthetic refinement and holistic approach, Premia Group, the Real Estate Guru venture, today stands tallest among all other real estate companies. Under the dynamic leadership of Mr. Tarun Shienh, the Group is surging ahead, creating projects, setting the tone for tremendous growth and bringing in cheers to all who are associated with it. Noidabased enterprising company is springing one surprise after another largely as a response to the needs of buyers and investors. Premia’s landmark projects which include the nationally acclaimed India`s 1st Corporate City with “Business Center-cumProfessional Office” are located at convenient distances from major strategic sites and present a host of facilities to real estate stake-holders in the region. While Corporate City lies in the fast developing Greater Noida West, Crown of Noida is located right in the heart of Noida in Sector 62. No doubt, both have attracted huge response as these are prime locations for an office setting and commercial activities. With unmatched range of services, facilities and amenities of world class standards, Corporate City is already poised to be first-of-its-kind shopper's destination. When it comes to offer the best value for money, Premia has ensured to make a long-term relationship with customers by giving them assured return. Trust and transparency are basic tenets of organization. All these advantages combined into a single package make for an investment avenue to look forward to. While Premia makes its best efforts to make the offering as comprehensive as possible, investors are sure to be excited by the plethora of benefits they can derive out of their investment.

Foray into healthcare After consolidating its presence in housing and commercial segment, Premia Group decided to foray into the healthcare sector tap the immense potential the sector offers. Indian healthcare sector is going to experience yet another revolutionary step. Premia Healthcare aims at serving the need of masses by offering state of the art super specialty healthcare services. The Group has tied up with Fortis Escorts Healthcare for operating its first pilot hospital project via acquisition of leading running hospital in Palwal, Haryana. The group plans to scale up its operation by having a similar network of hospitals in tier-II and tier-III cities soon. Spread over 5 acres of lush green surroundings, Premia Health Care, Palwal is a 115-bed state- of- theart hospital. It is one of the centers’ having highly equipped medical facilities within a radius of 60 kilometers. Another USP of the hospital is that it would have a team of highly qualified super specialist doctors, para-medical staff who would provide comprehensive healthcare services to roughly one million people of the NCR region. On running hospital in Palwal, Mr. Tarun Shienh, Chairman, Premia Healthcare, once said, “The reason we chose a city like Palwal for our healthcare foray over other metropolitan cities is tarun Shienh because it suits ourMr. aggressive growth philosophy of serving ‘SerCMD, Premiai.e.Group vaya Janaya , Sarva Sukhaya’ Serving maximum people and for everyone’s benefit. Beside this, I feel it’s my social obligation to make quality healthcare services accessible to regions where there is a dire scarcity of quality healthcare.” Apart from tier-II and

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tier-III expansion, the company is keen on expanding its footprints in other major cities in India where there is a dire need of high- quality and state of art healthcare facilities. Eﬀectively bringing an elusive quality of latest healthcare with quality diagnostic facilities at aﬀordable price to the masses, Premia Healthcare is a step that will surely benefit scores of Indians as the venture moves ahead.

on expanding Spree As a step forward to emerge as a major conglomerate with diversified portfolio in coming years, Premia Group is all set to expand itself in Education Sector and Power Sector also. The group is making out plans to venture into solar power, education and other sectors where with the innovative thinking and immaculate planning process, they are sure to carve a name for themselves. After all, Mr. Shienh's two decades of rich experience in Finance, Banking and Investment with globally recognised blue chip companies like New York Life, Bajaj Allianz, HDFC Bank, just to name a few, has given unprecedented push to the Group he is heading.

Premia india runway, the three day spectacular event from april 16-18, was successfully organized by the Group in the heart of capital city with celebrities, fashion designers and public ﬁgures relishing the momentous occasion to the hilt. the guest, designers and models enjoyed the show and appreciated the energy of the team that was put together to make this event a huge success. Premia india runway Premia India Runway, the three day spectacular event from April 16-18, was successfully organized by the Group in the heart of capital city with celebrities, fashion designers and public figures relishing the momentous occasion to the hilt. The guest, designers and models enjoyed the show and appreciated the energy of the team that was put together to make this event a huge success. Thanks to the dynamic leadership of Mr. Tarun Shienh, the show succeeded on grand scale even though the venue for the event has to change from Talkatora Stadium to Connaught Place. Jaipur girl Koyal Rana, the Femina Miss India 2014, was the highpoint of the show. After the show, Mr. Shienh said, “I am happy to see the team work and energy that was showcased today to make this show a success. It was not possible without the support of the entire team. But this has given us a lesson that nothing is impossible in this word the only thing required is to show trust in each other. We all have created history today and have done something that no one in the past has ever thought of. I congratulate the entire team for the success of the show.”

“Premia Group Aims to Achieve Excellence through Innovation”

—Mr. tarun shienh, CMD, Premia Group, the real estate Guru Venture

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COVER STORY BHOOMI POOJAN

deep dive into Premia Group reveals how its founder and associates have been working hard, day and night, to maintain its pre-eminent position as a standalone real estate company. The founder and the brain behind the Group, Mr. Tarun Shienh, follows an exemplary pattern, not to be found easily in a cut-throat market prevailing here in India. In a conversation that took place in Group’s corporate oﬃce at Noida in DelhiNCR, Observer Dawn's Managing Editor, Achyut Nath Jha, delves deeply into Mr. Shienh's persona to find out how the Real Estate Guru's ceaseless eﬀorts and innovation worked for a company which is always reaching for something higher.

excerpts:

What’s the outlook of indian real estate especially in Delhi-nCr? Despite some irritants which aﬀect industry across the sectors, overall outlook looks to be upbeat. Delhi-NCR still attracts interest from buyers and investors in both housing and commercial segments. Every sector experiences ups and downs and real estate is no exception. Markets are reflecting positive sentiments and people at large are seeking for enhancing their investment portfolios.

Do you think the situation will change drastically post-poll results and with new dispensation at the Centre? In a democracy like ours elections are normal constitutional process to elect the government. Despite the fact that political set up often influences the policy initiatives which could aﬀect the industry, businesses and economic activities have their own ecosystem to function. I don’t ascribe to theory doing the rounds that any change of government will drastically change the scenario. Of course, an eﬃcient and pro-development leadership sends positive signal to investors and help in mobilizing resources for the sector. The expectations of the developers have immensely increased and all eyes are on the steps that would be taken up by the new party in power to speed up the delays that are faced by the developers for clearance and approvals.

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From the very beginning I was yearning to give something to market and industry which could scale them to dizzying heights. Within a short span, others including some real estate majors were following in our footsteps.

Where does Premia stand now vis-à-vis other real estate companies? Since its inception, Premia has maintained its lead over others for bringing ideas and concepts never postulated earlier. As pioneering as India’s First Corporate City and countless other unique ideas to life, Premia is one organization that never seems to fall short of motive and determination to better the lives of its patrons and investors. Premia Group has successfully devised a plan to get straight entry to investors’ good books. The Time Linked Plan(TLP) encourages the investors to part with their funds in a controlled fashion .This not only gives the investors a sense of being in control of their funds and decisions but also lends a positive vibe to the whole association.

What has been the response from customers i.e. buyers and investors in your projects? You will be delighted to know that response from our customers has been tremendous. They have accepted Premia very fast. With the massive supports from buyers and investors, we are in a position to declare that Yesterday, it was Premia; Today, it’s Premia and that’s what they care.

What differentiates “the real estate Guru Venture” from others? Please specify. It’s in one word—competition but not with others but with itself as we have put the highest bar as far as quality of projects and standardization is concerned. We put high premium on Excellence which is difficult to maintain. We have our own initiative, unflinching determination and intention to achieve excellence at whatever cost and efforts it may be. Even as India’s real estate sometimes attract flak for accounting practices, Premia has maintained separate account for projects as desired in Real Estate (Regulatory) Bill.

in a very short span, Mr. tarun Shienh has become a force to reckon with. What is the secret? From the very beginning I was yearning to give something to market and industry which could scale them to dizzying heights. Within a short span, others including some real estate majors were following in our footsteps. In methods of planning, branding and marketing, Premia is now a benchmark which others are trying to achieve but without success. The much acclaimed ‘Corporate City’ concept pioneered by us is being imitated by others, that too recklessly. Premia made new headway into the commercial realty segment with their latest oﬀering, the “Business Center Cum Professional Oﬃce”, which is available in both top notch projects — Premia Corporate City and Crown of Noida.

to what extent you have been able to fulﬁll your vision i.e. to create a paradigm shift in real estate? When I look at the way things have been evolving for the betterment and growth of industry, I feel satisfied. As a trendsetter, I could script a new success story in conceptualizing and implementing innovation much to the relief of all stakeholders. With extraordinary growth and rise of Premia Group

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COVER STORY in real estate, Healthcare, Hospitality, Power, we have been able to bolster the sector and expanded the horizon.

What are your expectations from the new government given the way real estate is passing through a lean phase? An eﬃcient and stable government with strong leadership at the top invigorates the economy and energizes everyone to participate in growth story which the country witnessed earlier. Leadership with strong vision takes some long-term decision in infrastructure development and pushes real estate activities, transforming fortunes of millions in a country as vast as India. It hinges on the government of the day to formulate policies which are based on ground realities. A pragmatic approach is needed to stave oﬀ challenges which Indian realty faces.

Do you think the year 2014 will be better than the previous as far as performance of indian realty is concerned? If Premia’s performance in 2013 and its continuous growth in the first quarter this fiscal is taken as a benchmark, I have no hesitation to say, yes.

the real estate (regulation and Development) Bill was meant to bring about some order in the sector. But it is yet to become law. even if it becomes a law, do you think there will be perceptible change in the functioning of real estate in india? Definitely, real estate is looking forward to work in tandem with government’s initiative. The proposals like this will go a long way in executing projects in a transparent way. Appointment of regulatory authority will also check companies of dubious records and only genuine players will survive and sustain. We strictly follow rules and regulation of government agencies and never compromise on our business ethics. At Premia, we are committed to deliver our projects on time in a hassle-free manner. The real Estate Bill that was passed in 2013 has helped to bring transparency in the Real Estate sector. But it would contribute in the growth of the Real Estate sector only when the other peripherals are also managed, like clearance of any project should be given within a timeline framework of submitting all papers for the projects by a developer.

any message to real estate fraternity.

Let all of us work together for the betterment of industry and society. n

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It’s in one word— competition but not with others but with itself as we have put the highest bar as far as quality of projects and standardization is concerned. We put high premium on Excellence which is difficult to maintain.

I donâ&#x20AC;&#x2122;t ascribe to theory doing the rounds that any change of government will drastically change the scenario. Of course, an efficient and pro-development leadership sends positive signal to investors and help in mobilizing resources for the sector.

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OUTLOOK

More Indians choose to work in India due to slowdown: TimesJobs.com study

Nearly 60 per cent of all the organisations also said that they are experiencing an influx of human capital from foreign shores in an earlier TimesJobs.com study.

0 per cent Indians are cautious about moving to the West for jobs due to the economic slowdown, according to a TimesJobs.com study. The study also indicates that highly skilled professionals are returning home seeking the economic opportunities that they once sought abroad. The study further pointed out that 34 per cent still prefer to move to west for a job, while 26 per cent would like to turn

entrepreneurs. Out of the total respondents who mentioned that more Indians are seeking job opportunities in India, 28 per cent believe that maximum job opportunities are in IT/Telecom and Manufacturing sector. Nearly 60 per cent of all the organisations also said that they are experiencing an influx of human capital from foreign shores in an earlier TimesJobs.com study. With 37 per cent of them reporting that the workforce inflow is maximum at the middle level. TimesJobs.com data also indicates that there has been a drop in the number of applications for international positions. It dropped by 4 per cent in Janâ&#x20AC;&#x2122;14 from an average 1 per cent increase in NovDecâ&#x20AC;&#x2122;13. However, during Jan-Marâ&#x20AC;&#x2122;14 it did register an overall increase on 3 per cent.

why are they coming back? Besides the fear of global uncertainty, it is the lure of job security and better future prospects that are bringing the talent back home, believe 58 per cent of the surveyed organisations. Good salary combined with benefits

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60 per cent of all the organisations also said that they are experiencing an inﬂux of human capital from foreign shores in an earlier timesjobs.com study. with 37 per cent of them reporting that the workforce inﬂow is maximum at the middle level timesjobs.com data also indicates that there has been a drop in the number of applications for international positions. it dropped by 4 per cent in jan’14 from an average 1 per cent increase in nov-dec’13.

(extra allowances and perks is also playing a major role in bringing back the professionals to India, said 25 per cent of the employers in the TimesJobs.com study.

where are the opportunities? Maximum job opportunities are in Manufacturing and Petrochemicals sector. Since, these sectors will be witnessing a huge number of workforce getting retired in the next 5 years, they are on a look out for experienced candidates, revealed experts in the TimesJobs.com RecruiteX report. For senior/leadership positions international exposure is deemed crucial, hence, the returning workforce has bright chances getting top jobs in these sectors.

the western perspective While the candidates are apprehensive about taking up a job in the international market, the global employers are still vying for Indian talent. TimesJobs.com data shows that across international locations, engineers, IT and accounting & finance professionals are most sought after. Demand is huge for talent

with 5-10 years of experience, followed by 10-20 years of experience. UAE and north Americahave emerged as the most active global locations. According to Jappreet Sethi, HR consultant and author of humanresourcesblog.in, “Whilst the western economy is slowly getting back on track, the number of people without a good job remains high. There are enough stories of Indians losing jobs and having to move back to base country for newer opportunities. India is seeing a good influx of talent, which is well adept in systems and processes.” R P Yadav, chairman and managing director, Genius Consultants Ltd shares a similar point of view, “Job seekers are finding it diﬃcult to get a lucrative job in the west. They are also apprehensive about the continuity of the job at hand. India seems a better place in terms of job security, plus they are closer home. Therefore, most of them are seeking a job in India and are cautious to move to the west.”n

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RESEARCH & SURVEY

Being Bangalored! Mapping it City’s realty Make-up A

ccording to Cbre’s recently released asia Pacific investor intentions survey 2014—which gauges the appetite and outlook of real estate investors at a global level for the rest of the year— bangalore has been ranked as the 9th most attractive city for investments. —By Anshuman Magazine, CMD, CBRE South Asia Pvt. Ltd.

ustained demand for IT/ITeS office space has spurred the growth of commercial real estate in Bangalore, which has emerged as the leading city in terms of completed office space in the country. The city crossed a milestone in its office realty development curve last year, in fact, by becoming the first Indian office hub to have joined the club for 100-million-sq.ft. office markets across the globe. According to CBRE’s recently released Asia Pacific Investor Intentions Survey 2014 which gauges the appetite and outlook of real estate investors at a global level for the rest of the year Bangalore has been ranked as the 9th most attractive city for investments among all groups of respondents for the survey with international investors dominating this particular survey response. Interestingly, it happens to be the only city from India to feature among the top 10 most attractive cities for real estate investments in the Asia Pacific region. The city is home to a highly cosmopolitan crowd, attracting migrants from all parts of the country. Between the Census 2001 and 2011, Bangalore’s population had nearly doubled from 6.5 million people to about 9.6 million. A continuously swelling population has understandably fuelled housing demand, with the city witnessing a record number of new residential launches during 2013. Furthermore, favorable demographics, rising per capita income, and the availability of quality retail space has led to Bangalore’s emergence as a favored retail destination, with a number of global and domestic retailers either setting up shop or expanding their footprint in the city. It has also functioned as the back office hub for international retailers like Target and Tesco, even before they explored front-end launches in the country; while global retailers like Metro Cash & Carry had been

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present in Bangalore long before spreading to other cities in India.

office space update Availability of quality office space at comparatively affordable rentals along with good connectivity and improved infrastructure has spurred demand for office space from corporate occupiers. In this regard, the Outer Ring Road (ORR) and Whitefield, in particular, have emerged as preferred options for corporate occupiers and market entrants. Meanwhile, North Bangalore has steadily emerged as a major development hub owing to its proximity to the international airport as well as to the city-center, and rapid infrastructure development. In 2013, Bangalore witnessed the absorption of approximately 7.4 million sq. ft. of commercial and SEZ space; while about 7.7 million sq. ft. of fresh office space came into the market. Although the IT/ITeS sector continued to drive demand for office space in the city, last year also witnessed steady demand from new sectors like the BFSI, research and consulting, engineering and manufacturing. Bangalore’s upcoming office supply pipeline is dominated by a healthy mix of commercial and SEZ development. Going forward, transaction activity is likely to pick up along the ORR, owing to the fresh supply of quality commercial and SEZ space over the forthcoming quarters. North and South Bangalore markets are also likely to attract rising demand for office space. Rental values are likely to remain stable across most micro-markets in the short to medium terms.

housing space From being dubbed as a ‘pensioners’ paradise’, Bangalore has emerged as the hub of frenetic residential activity. Residential

Anshuman Magazine, CMD, CBRE South Asia Pvt. Ltd.

the city is home to a highly cosmopolitan crowd, attracting migrants from all parts of the country. between the Census 2001 and 2011, bangalore’s population had nearly doubled from 6.5 million people to about 9.6 million. a continuously swelling population has understandably fuelled housing demand, with the city witnessing a record number of new residential launches during 2013. markets in Bangalore witnessed buoyant, albeit stable, growth over the fluctuating trends witnessed in the two largest residential markets of India the Delhi National Capital Region and the Mumbai Metropolitan Region. Of the approximately 40,000 units launched in Bangalore in 2013, a large number of projects were in the aﬀordable and mid-end housing segments. Residential demand is also expected to improve in the forthcoming quarters, which along with a steady supply pipeline may lead to strong capital appreciation in select locations. Ongoing and planned infrastructure projects such as the Metro Rail, Signal Free Outer Ring Road and Peripheral Ring Road, are likely to propel the housing investment market in the city too. The availability of land parcels along the Thanisandra–Hennur Road (North) and Ho-

ramavu belts (North East) are also likely to facilitate the launch of new housing projects, and help maintain a healthy supply dynamics in the city; while expansion in the IT sector is expected to keep feeding the city’s housing supply in the short to medium term. Retail Development Retail activity in the city has traditionally been restricted to popular high streets such as 100 Feet Road -Indiranagar, and Vittal Mallya Road. Bangalore’s CBD and oﬀ-CBD locations had historically been its retail epicenter, with Brigade Road, MG Road and Commercial Street being considered as prime high streets, characterized by mixed-use retail and small format stores. The same region experienced the introduction of large format shopping centers from the mid-2000s onwards, with malls such as The Forum in Koramangala (2004). Since then the city’s retail activity spread outwards (Phoenix Market City at Whitefield, and Brigade Orionat Malleswaram, for instance), in-line with the outward movement of its housing catchment in the peripheral markets. During 2013, retailers from fashion, apparel and F&B segments continued to account for a significant chunk of leasing activity. Lack of fresh organized retail supply in the city resulted in demand for shopping space in the high street areas of Koramangala, Jayanagar, MG Road, Indira Nagar, Brigade Road, Commercial Street and New BEL Road.Wholesale retailing was a fast expanding format in the city last year. Conducive government regulations led to the entry of major cash-and-carry players, with several other brands lining up for an entry. Carrefour opened its first cash-and-carry format under the brand name, Carrefour Wholesale Cash & Carry, at ETA Mall (West). With the anticipated completion of three malls by H1 2014, around 1.1 million sq. ft. of organized retail space is likely to become operational. Emerging locations in and around Bangalore are also expected to continue attracting occupier interest. n

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RESEARCH & SURVEY

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May 2014

Cr is expected to contribute approximately 1/3 in the total expected hotel rooms supply in the period under consideration.

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COVER STORY RESEARCH & SURVEY

he leading global real estate consultancy, Cushman & Wakefield (C&W), reports that the hospitality sector will see a rise of over 65% in total hotel inventory by 2017. Approximately 52,000 new hotel rooms are expected to come into existence in the next 5 years (2013 – 2017). Despite a slower response, the Hospitality sector of India is expecting to witness better demand in the coming years on account of improved global economic conditions. Many Hotel projects, that were delayed in the last 2 years are also expected to get completed adding to the inventory in the next five years. NCR is expected to contribute approximately 1/3 in the total expected hotel rooms supply in the period under consideration which is expected to see 17,000 keys, Kolkata at 105% will witness highest percentage increase in inventory by adding 3813 rooms to its existing inventory by 2017, Pune at 41% will contribute lowest number of rooms (2853) to its existing 6970 rooms. Akshay Kulkarni, Regional Director – Hospitality, South and South East Asia, Cushman & Wakefield, said “Even while India is considered to be an attractive market for both leisure and business travel, there are some inherent deficiencies due to which hospitality projects have hitherto taken long to come up including aspects like funding and regulatory issues, which have either delayed or in some cases stalled projects. Despite a significant number of leisure travel both International and Domestic, hoteliers are seen to be concentrating on business destinations, specifically gateway markets of NCR, Mumbai and Bangalore.” Akshay further said, “The expected growth in Chennai and Pune is largely driven by the current paucity of branded hotels in these cities, which has given the hoteliers an opportunity to

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look at upping their presence in the city. Taking cue from the economic fundamentals of the cities, which are strong on the basis of a more holistic growth of services as well as industrial sector, these cities are expected to see a corresponding rise in the estimated demand in the next few years as well.” As opportunities with the development for Greenfield hotel projects decrease in the key hospitality markets – Delhi, Mumbai and Bangalore, the focus has been shifting towards regional epicentres of growth. This is in line with the shift of corporate centres and emergence of more lucrative Of the total expected supply of hotel rooms in the next 5 years, midscale hotels are expected to see the highest supply of 18,500 units, followed by luxury which is estimated at 10,300 units contribute 36% and 20% to the total expected supply, while budget (9000 units) Upscale (6800 units) and Upper Upscale (6900 units) are estimated to be contributing approximately 44% to the total supply in the next 5 years. NCR will lead the pack on both these categories.

City-wise overview & outlook ahmedabad Ahmedabad has about 3,439 keys in the organised segment as of 2013. Almost 4 new hotels opened for business in 2013, adding a total of 512 keys to the existing room supply, namely Tune Hotels (100 keys), Aloft (176 keys), Easy Eastin Citizen (52 keys) & Novotel (184 keys). Moreover, Crowne Plaza with 200 keys was also expected to start operations in 2013 but is currently on hold. Ahmedabad is expected to have addition of over 1,800 keys over the next 5 years. Of the total supply 39% belongs to upper upscale, 25% to midscale, 14% to luxury, 11% each budget and upscale.

outlook Ahmedabad is a growing city with the potential to sustain much higher performance metrics. It is likely to see an upward movement in demand in 2014, given the upcoming inventory of oﬃce stock in the city and being an emerging city along with the development as a twin city, with Gandhinagar in the neighbourhood

bengaluru Bengaluru has a total hotel inventory of approximately 11,089 rooms; Leela Place is currently the largest hotel in the city with a total of 357 keys. During the last 4 years, Bengaluru saw the largest increase in inventory during 2010, with 23%, with an addition of almost 1,522 keys with brands such as Lemon Tree (173 Keys), Vivanta By Taj (199 keys), and Crowne Plaza Elec-

even while india is considered to be an attractive market for both leisure and business travel, there are some inherent deﬁciencies due to which hospitality projects have hitherto taken long to come up including aspects like funding and regulatory issues.

tronics City (195 keys) etc Bengaluru currently has a total upcoming supply 6,978 keys by 2017; of which 27% is expected to account for in the budget segment and in the midscale segment respectively, 25% in the upscale segment, 17% in upper upscale, and 4% in the luxury segment. Of the total upcoming supply, 38% is expected become operational during 2014, which includes brands such as Encore (90 keys), Double Tree By Hilton (185 keys), Hilton Residences (250 keys), Renaissance (278 keys), and Conrad (250 keys) etc.

outlook Of the total room demand 60% percent comes from corporate clients and is further expected to see steady growth in time, as of Q4 2013, the YTD Absorption for commercial space had seen a 21.14% increase YOY, an indication of growing commercial demand in time, additionally Bengaluru currently has over 7.3 million sq.ft of Grade A oﬃce space under construction.

Chennai Chennai has a total hotel inventory of approximately 7,517 rooms. During the last 4 years, Chennai saw the largest increase in inventory during 2012 with 21%, due to the addition of the ITC Grand Chola (600 Keys), The Leela Palace (188 Keys), Park Hyatt (188 Keys), and the Radisson Blu City Centre (162 Keys). During 2013 the growth in inventory was only 3% with Westin adding an addition of 215 keys to the inventory. Chennai currently has a total upcoming supply of 3,274 keys by 2017; of which 51% is in the midscale segment, 29% is in the budget segment, 11% in the upper upscale segment, and 9% in the upscale segment. Approximately 20% of this total inventory is expected to become operational in 2014,

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RESEARCH & SURVEY which includes brands such as Ibis (160 keys), Gateway (159 keys), Formule 1(150 keys), and Holiday Inn (200 Keys), etc.

outlook Chennai is a major upcoming commercial destination, with the development of the Chennai Bengaluru Industrial Corridor; the region is expected to see some major planned commercial and industrial development in the long run. Chennai is currently seeing a slight oversupply particularly due to major inventory increase over the past 2 years. The AOR in 2014 is expected to be 59% with an ADR of INR 5171.

hyderabad Hyderabad has a total hotel inventory of approximately 6,448 rooms. During 2013 inventory grew at 6%, due to the recent opening of Trident Hotel (323 Keys) in Madhapur. The average inventory per hotel is currently 46 keys with Westin having 428 Keys in Madhapur. Within Hyderabad, the midscale segment constituted 45% of the total inventory, followed by the upper upscale segment with 19%, upscale and midscale with 17%, and budget with 2%. Hyderabad currently has a total upcoming supply of 4,057 keys; of which 46% is in the midscale segment, 23% is in the budget segment, 13% in the luxury segment, 12% in the upscale segment and 6% in the upper upscale segment. Approximately 50% of the upcoming supply is expected to open in 2014, which includes brands such as Formule 1 (174 Keys), Mercure (128 Keys), The Oberoi (220 keys), Hyatt Place (148 keys), etc.

outlook Of the major micro markets existing in Hyderabad, Gachibowli and Madhapur are seen to be the prime destinations for upcoming commercial and oﬃce space ventures in the city, which is likely to augment an increase in room night demand in the future for the micro-markets. The city yet still lacks stability; the state most particularly saw a number of civil disruptions during 2011 and 2012. The issue has not been resolved, however talks are on. If Telengana is created, Hyderabad shall act as a joint capital for Andhra Pradesh and Telengana for upto 10 years. The AOR in 2014 is expected to be 42% with an ADR of INR 5,231.

Kolkata Kolkata has a total hotel inventory of approximately 3,638 rooms with the largest hotel in Kolkata is currently the ITC Sonar Bangla with a total of 238 keys. Kolkata currently has a total upcoming supply of 3,813 keys by 2017; of which 34% is in the midscale segment, 30% is in the luxury segment, 19% in the upper upscale segment, 10% in the upscale segment and 7% in the budget segment. The majority of the inventory, about 41% of the upcoming supply is expected to open in 2014, which includes brands such as Westin (323 Keys), Novotel (350 Keys), JW Marriott (300 keys), and the Lalit Great Eastern (244 keys).

Kolkata has some significant upcoming infrastructure such as

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Mumbai In Mumbai, the midscale segment is seen to have the largest inventory of 29%, followed by budget segment with 27%, luxury with 23%, upper upscale with 11 % and upscale with 10%. The average inventory per hotel is currently 91 keys; the largest hotel currently operational is the iconic ‘Taj Mahal Palace’ located in South Mumbai with a total of 560 keys. Mumbai currently has a total upcoming supply of 12,098 keys; of which 35% is in the midscale segment, 22% is in the luxury segment, 17% in the upscale segment, 16% in the budget segment and 10% in the upper upscale segment. Approximately 17% of the upcoming supply is expected to open in 2014, which includes brands such as Lemon Tree (298 Keys), JW Marriott (525 Keys), Radisson Blu Plaza Hotel Powai (335 Keys), etc.

outlook The city has a total of 12, 098 keys upcoming, which accounts for almost 71% of that of the existing pipeline. Mumbai has a significant number of upcoming infrastructure, which is expected to enhance connectivity within and to the city. This includes the opening of its much awaited new airport terminal in February; the new airport is to boost passenger capacity by 40 Million over the existing capacity of 30 Million. Additionally, Navi Mumbai itself is expected to see development of a new airport, which as a result is expected to augment demand for the micro-market in the long run.

nCr In 2013, NCR had 26,500 keys by out of which, 77% comprises of the organised segment. NCR featured a 16.5% YOY growth in total organized supply of over 20,457 keys during 2013. Close to 15 new hotels opened for business in 2013, adding a total of 2,920 keys to the existing room supply. NCR is expected to have an addition of over 17,000 keys over the next 5 years, of the total supply, 31% belongs to Delhi, 27% to Noida, 22% to Noida, 12% to Greater Noida, 5% to Manesar and 3% to Faridabad. NCR's hospitality market is substantially covered under seven main regions. Among micro-markets, Delhi achieved highest ADR of INR 7,980 at 62% occupancy, followed by Gurgaon with INR 7,550 at 60%, Noida with INR 6,500 at 61%, Faridabad with INR 5,400 at 50%, Greater Noida with INR 5,200 at 39%, Manesar with INR 4,650 at 49% and Ghaziabad with INR 3,980 at 52%.

outlook

the Light Rail Transport System, Mono Rail, Eco-Park, etc. The Expansion of the airport is likely to augment travel within the region to far greater extent, allowing for an increase in room night demand. The major Suburban development in areas such as New Town and Rajarhat are the most predominant, which includes a number of upcoming hotels such as Formule 1, Ibis, Novotel, Westin, etc. The AOR in 2014 is expected to be 45% with an ADR of INR 5,293.

May 2014

NCR is witnessing some major infrastructural changes towards

transforming hospitality dynamics of the region, Delhi hotels have recently got an approval from Delhi Development Authority for higher FSI as well as a grant to build small dwelling units in hotel complexes that will support debt-funding. Also, government has included hotel projects with costs higher than 200 Cr in infra-lending list which will support high end hotels in availing low interest funding. Thus, the NCR hotel market is indeed positive in outlook.

Pune Pune has a total hotel inventory of approximately 6,970 rooms. During 2013 the city witnessed an increase by 8%, with the opening of Novotel (251 keys), Formule 1- Hinjewadi (105 keys), Courtyard By Marriott- Chakan (180 keys), Doubletree by Hilton â&#x20AC;&#x201C; Chinchwad (115 keys ) etc. Pune currently has a total upcoming supply of 2,853 keys; of which 40% is in the midscale segment, 20% is in the luxury segment, 18% in the upper upscale segment, 13% in the budget segment and 9% in the upscale segment. During 2014, almost 24% of the total supply are expected to open, with brands such as Hyatt Place (130 Keys), Lemon Tree Pune City Center (230 keys), Country Inn and Suites (230 keys), etc

outlook The IT Parks situated in Hinjewadi, Talawade and Kharadi have acted as a catalyst as a constant attraction for the attention of global players and driving traďŹ&#x192;c to the city. With new businesses entering the market, the conference, conventions and events market too is expected to gradually swell further. Furthermore, there are plans of expanding to make a new airport which indicates the industry is deemed to see growth in footfall numbers in the city. Additionally, Pune had witnessed a increase commercial space absorption, as of Q4 2014 the city had witnessed a YOY increase in absorption by 21.14%, of which, during the 4th quarter alone the city witnessed over 470 thousand million in absorption. The IT-ITeS sector contributed to nearly 58% of the absorption followed by the BFSI with 17%, a major indicator of growing corporate room night demand in the city. 36% of total expected supply to be in Mid Scale Hotel; Luxury to contribute 20% to supply Close to 1/3rd of the total supply is expected to come up in NCR with 17,000 rooms Kolkata to more than double its current hotel capacity by 2017 n

May 2014

observer dawn

A Hard Lesson in Home-Buying

POLICY

The Supertech fiasco

if we could avoid Campa Cola compound and supertech fiasco. nBy Vivek Shukla

irst Mumbai’s Campa Cola compound and now Noida's Supertech's two under-construction 40-storey towers — Apex and Ceyane! It is no secret that in both the cases, axe fell on the poor customers. Their dreams to have roof of their own were shattered, at least, for now. The messages in both cases are loud and clear: Customers need to be very vigilant before taking final call in terms of buying a flat and India needs a regulator for realty sector sooner rather than later to flush out all the malaise that has entered in realty sector. While in the case of Campa Cola compound, the owners of illegal flats of Campa Cola compound would have to find alternative accommodation as the apex court made it clear that they have to leave their flats. As far as Supertech's case, there is still some hope for the customers. All is not lost for them as R.K. Arora,the managing director of the company, has promised that the interests of the customers will be looked after and they(company) would challenge the verdict of Allahabad high court. Arora said the company will file a special leave petition against the high court order in the Supreme Court. It may be recalled that Supertech was allotted a 48,263 sq m plot in Noida's Sector 93A in 2004 for constructing Emerald Court Group Housing Society, which was to have 15 towers with 11 floors each. These apartments were completed in 2010. Supertech issued a note telling buyers that their investments were "completely safe and secure" as the two towers were "being constructed in total compliance of all rules and bylaws of the competent authorities". In its ruling, the high court had pulled up Noida Authority for allowing construction of the two towers and ordered prosecution of oﬃcials who had a role in it. The two towers are at an advanced stage of construction. More than 21 floors have been built in Apex and 17 in Ceyane. The towers were to have 14 flats on each floor besides a penthouse each. For the buyers, these weren't good tidings. "On one hand, we need to pay EMIs while on the other, we don't have any hope of access to the new home. We were hoping to move to the new flat in 2012 when they were supposed to be handed over," said Nitin Shingla, who has bought a flat in Apex.The project's financiers are IDBI Bank, ICICI Bank, Corporation Bank and HDFC bank. "All we had to do was to fill up some forms and submit documents. Supertech roped in the financiers," said Sudeep Manchanda, another buyer of an Apex home.For almost all the apartments, the banks have disbursed 90-95% funds. "There doesn't seem to be any answer coming from the builders about a possible refund. Worse, we have to keep paying EMIs," said Dharmender Singh, who is fronting a group formed by Apex and Ceyane buyers. "If nothing else works, we might be left with no option but to file a criminal case against the builders. They have suppressed facts about an ongoing litigation for the last two-three years. And even when the litigation was on, they sold flats," said Sudeep Mandhanda, a buyer. While ordering the demolition for violation of construction norms, the court had held that the developer will also refund the money to buyers "with 14% interest compounded annually within four months from the date of filing of certified copy of this order".The towers—Apex and Ceyane— are part of Supertech's Emerald Court project. A division bench of Justice VK Shukla and Justice Suneet Kumar had said that they should be demolished.

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May 2014

While you can be duped in property transaction, it is only expected from you to do your homework before sealing the deal. Let’s us talk about Deed/ Sale Agreement. They are very important instrument as far as property transaction is concerned. After agreement on payment of the property, it’s now turn for advance payment and agreement between them. “You should know that the agreement is done on a stamp paper. It includes the final actual amount, advance payment, time limit to pay due amount and how to pay in installments, time indication when the actual sale should take place. It also includes what to do to cover loss if one of buyer or seller makes default. This ensures that the seller does not defer cost in any case after finalization and he doesn’t sell to another party meanwhile. This agreement can be done by an expert lawyer and signed by both the parties with two witnesses. After doing this agreement, if one from both parties makes any default then another one should take legal action against him,” informs Rajeev Chopra, CEO of ILD Developers. And talking about Campa cola compound, what is really shocking is that those who would lose their roof got bank loans. Banks after doing due diligence were satisfied with the documents and loans were sanctioned by nationalised banks. Keeping this fact in mind, now it is clear that it is really challenge to buy a flat. You never know what would happen later. Even after banks are sanctioning loans, you are not sure that you would be flat is legal or not. "These two cases should be an eye-opener for all planning to buy their own roof. They must check down the title deed of that property. The property title deed is the legal document which proves the ownership of property. The title deed presents certain rights and freedom to the person who holds it and such deeds are required where person wants to transfer his ownership," suggests Sunder Khatri, a noted advocate. Talking about the court verdict in the case of Supertech, chairman of Noida and Greater Noida authorities, Rama Raman, said, "Possibly some buyers are in fear and want their money back. So we have directed the developer to refund those who are not interested in continuing with the project. We will take all measure to ensure the protection of homebuyers. They need not panic," Raman said. Meanwhile, there is also a feeling that given the ineﬃciency of local authorities as well as no clear cut rules, incidents like Campa Cola compound and Supertech take place. If we would have regulator in place, it would have stepped in before the situation got out of hand, analysed it and decided the course of action. What is really sad and shocking that even though every stake holder of realty sector is demanding for regulator, government is not taking any action,” said Sanjay Khanna, director, Kailash Nath Projects. Experts say that all the would-be buyers of flats or property must ask for latest tax receipt from owner of the property. “That way you can check whether any notices or requisitions are issued on property or any tax due on the property. While you are checking property tax receipt, there are two columns in it. One is for owner’s name so verify it and other is for tax payer. In some cases, the tax receipt is not with owner,” says Mahesh Pawar, managing director of Mahavir Hanuman Group. Returning to Campa Cola compound fiasco, it is not easy to call residents really innocents who have been taken for a ride as they knew the flats were illegal. They knew that the flats are illegal but still brought them at rates as low as one-third of market prices in the hope of making a killing later once things were regularised. One only hopes that given the kind of reputation, it has built for

itself Supertech will everything possible to serve the cause of their customers. RK Arora has already hold series of meetings with customers and discussed the pros and cons of court verdict. As far as Supertech’s case, the existing residents of Emerald Court were aggrieved that the two towers were sanctioned without maintaining the mandatory distance of 16 metres between the new towers and their building block, as required by the Noida Building Regulations and Directions of 2010, "making their block unsafe. But Arora rejected the charge. He told in an interview that according to the National Building Code, the minimum requirement of distance between two buildings is 9 meter for buildings up to 36 meter, which Supertech had complied with in the case of these two buildings. The Noida Authority asked the developer of Emerald Court, Supertech, to formulate a plan to reimburse those customers of Apex and Ceyane towers in the residential project who wish to dissociate themselves. A majority of the buyers, however, have refuted the idea and decided to continue their fight in the Supreme Court to reclaim their flats instead of receiving a refund from the developer. While you can only shed tears of blood for those who would lose their homes in Campa Cola compound and also facing tough time in Noida, when you buy your flat you should remember that all property sales are illegal unless the transaction is by means of a sale deed duly stamped and registered. After collecting and checking all the documents, you have to register land/ property at the SubRegistrar or the SDM (Sub District Magistrates) of your area. If we would have a regulator, we would not have faced situations Campa Cola compound and what is happening in Noida. It would have saved a lot of trouble and trauma,” concludes Sameer Jasuja of prop equity.

supertech and the noida authority moved sC to save noida twin towers On May 30, Supertech filed a special leave petition in the Supreme Court against the Allahabad high court's order to demolish two residential towers in Noida's Sector 93A for flouting building norms. Buyers have already moved the apex court. "We have constructed Apex and Ceyane towers in conformity with the Noida Authority's bylaws and the National Building Code 2005," said Supertech chief R K Arora. "Our representatives could not present the facts properly in the Allahabad high court. We have all necessary approvals in place and our team will represent the facts properly and we are confident that we and our buyers will get relief from the apex court." The Noida Authority also moved to the Supreme Court, challenging the high court's order .The Authority filed a special leave petition in the apex court, arguing no norms were flouted in approving the maps for the two buildings in Sector 93A. Noida Authority chairman Rama Raman said Supertech, too, had adhered to rules. Raman said, "The Authority has mentioned that approved maps of these two 40-storey residential towers-Apex and Ceyane-conformed with the National Building Code 2005 and the Authority's bylaws. It has also been mentioned that the realtor was directed to follow provisions laid down in the UP Apartment Act, 2010 before starting construction." The Noida Authority chief said buyers' interest was the administration's top priority. "Keeping this in mind, we have directed the developer to address issues of the residents," he said. n

May 2014

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OUTLOOK

Global cities with maximum shopping center space under construction in 2014

lobally, a total of 39 million sq.m. of shopping center space is currently under construction across the worldâ&#x20AC;&#x2122;s major cities, representing a three million sq. m. increase from 2013, according to the latest Global Viewpoint from CBRE Research. Most of this development activity for shopping center space around the world is focused in China. According to the report, more than half of the shopping center space under construction in the 180 countries surveyed is taking place within Chinaâ&#x20AC;&#x2122;s borders. Shanghai takes first position with 3.3 million sq. m. of space under construction more than the combined total of all 86 European cities excluding those in

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May 2014

Russia and Turkey. Just behind Shanghai is Chengdu with 3.2 million sq. m., followed by Shenzhen and Tianjin with 2..7 million sq. m. and 2.5 million sq. m. under construction, respectively. India continues to see a wave of new shopping center development despite some developers pushing back completion dates due to financing issues. Around 500,000 sq. m. of new retail space is under construction in New Delhi. The largest two projects, DLF Mall of India NOIDA (204,385 sq. m.) and Logix City Center Mall (111,483 sq. m.), are both located in Noida. Among tier II cities in India, Hyderabad is the most active market with a current supply pipeline (483,000 sq. m.) three times

“The scale of new development in Asia and China in particular greater than its existing stock. is staggering but there are a number of quite understandable Buoyant occupier demand is pushing a strong developfactors behind it. The most reported is economic growth, ment pipeline in New Delhi with 500,000 sq. m. of new retail which continues, although now with some signs of slowing space currently under construction. down. In addition, Chinese cities, and many others in Asia, Commenting on the findings of the report, Mr. Anshuman present a physical environment that lends itself to environMagazine, Chairman and Managing Director of CBRE, South ment controlled shopping cenAsia Pvt. Ltd., said, “Strong economic ters. Outdoor shopping can be growth in many Asian markets has too hot, too humid, too cold, too been attracting an increasing numl A total of 39 million sq. m. of shopping cenwet, too unsafe or too dirty and ber of cross-border retailers. Even ter space currently under construction across polluted modern shopping centhough China remains by far the major global cities ters are none of these when most active market for shopping l India’s tier I & II cities among the most active managed properly,” said Sebastcenter development, the tier I and II markets globally for shopping center develian Skiﬀ, Executive Director of cities of India are also among the opment CBRE Retail. most active globally. Unfortunately, l The 2014 shopping center pipeline repreKuala Lumpur in Malaysia however, there continues to exist a sents a 3 million sq. m. increase over 2013 dearth of quality shopping space in falls just outside the top ten l Chennai among the Top 15 most active many of our market places. Along coming in as the 11th most acshopping center development markets in with the large-scale urbanization of tive market globally. Southeast the world in 2013 our leading cities and a burgeoning Asia has 3.3 million sq. m. under middle class population, it is this that construction and nearly 40% of has been driving shopping center this is located in the Malaysian development forward.” city. In Vietnam, Ho Chi Minh City and Hanoi have also seen a large number of new developments in suburban areas and are According to CBRE research, New Delhi is ranked #21, Hyseeing strong leasing demand from retailers attracted by lower derabad #23, and Bangalore #31, among global cities with the rents and the lower-to-mid income residences nearby. n maximum shopping center space under construction in 2014.

May 2014

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INVESTMENT

NRIS ARE READY TO INVEST

hile interacting with nris during the Pravasi bhartiya divas conference, the writer get an impression that they are ready to invest in languishing sector if Government creates single-window system for this sector.

By Vivek Shukla

hat the realty sector is not passing through a great period is rather well-known due to multiple factors, including in the absence of single-window clearance system, but what is really shocking and surprising that even NRIs keen to invest here too feel that unless the whole sector is over-hauled they will think twice to in-

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May 2014

vest. As the UPA-2 government is completing its term soon, it is high time that it wakes from their extended slumber to give long awaited boost to the housing sector, which hardly got any attention it deserved. One only hopes that it will set up a single-window clearance system to cut delays in getting approvals for housing projects and check cost escalation. â&#x20AC;&#x153;I was keen to pump in lot of money in the realty sector, but I give up my plans as this sector is still working in an archaic fashion. It

seems that nobody is keen to improve the aﬀairs of this important sector,” rues Amarjit Khosla, the UK-based businessman, who was here to Pravasi Bhartiya Divas(PBD) conference. There is no dearth of people who echo the thoughts of Khosla. They expect that for the sake of lakhs of Indians looking forward to have their own roof, it has to create a single-window system. When UPA-one came to power, it was expected that the government will push for single-window system for the realty sector. Sadly, nothing has happened despite the fact the mandarins of this government know that the single window system will bring down the average approval time from 196 days to 45-60 days. “Delay in obtaining approvals oftten increases the cost of a housing project 1.5 times. Presently, around 34 permits are required for housing projects. It has to be reduced greatly,” informs Sanjay Khanna, director of Kailash Nath projects. At three basic levels, these clearances are required, the urban local bodies level, which give permission regarding the plans, then the water and sewerage connections, fire clearances and at the central government level, builders need civil aviation and environmental clearances. “Like me all the stakeholders of housing sector are waiting for that day when singlewindow system for clearance of housing projects will see light of the day. I know that when Ajay Maken was heading the Housing and Urban Poverty Alleviation ministry, he was keen to put things in place so far as single-window system is concerned. Once he left the ministry, everything came into grinding halt,” says Samir Jasuja of Prop equity. The ministry was formulating a single window system for clearance of real estate projects throughout the country following the report of a committee for streamlining approval procedures for real estate projects. It may be recalled that Housing and Urban Poverty Alleviation Ministry planned a major shakeup of the sector based on key recommendations of the Dhanendra Kumar Committee report. The Committee was set up in mid-2012. It was asked to recommend as to how single window clearance system can be implemented. “Despite the fact that realty sector is such a key sector; it hardly got any due attention from the government. Even though we are asking for regulator for it, the government is not taking any decision. It is also not creating single-window clearance system for the sector. That speaks volumes about government's seriousness for housing sector,” says Ajay Agarwal, director of Avalon Developers. It goes without saying that real estate market in various parts of the country is in a very sorry state with developers have to face real tough time in getting clearances and a system plagued by corruption.

We have seen so many innocent lives were lost when couple of unauthorized buildings near Mumbai fall. It was constructed by shady builders with the help of corrupt government officials. It goes without saying that if we would have realty sector regulator, we might not have seen Campa Cola compound episode. “Admittedly, some realty firms are not up to the mark, the rest face the brunt of archaic laws and clearances to implement their projects. In order to get clearances, realty firms have to spend lot of time and money. Hopefully, this government will create single window clearance system before it demits the office," says Rajeev Chopra, CEO of ILD Developers. Even though many key people in government also admit that all is well with realty sector, things are not moving. With several clearance procedures starting from the local municipality to the top, the average minimum time for approving a project is about 196 days. Naturally, at the end of day, customers are the worst suffers. The government is duty bound to clear the mess that has damaged the realty sector sooner rather than later,” says Gaurav Mittal, managing director of CHD Developers. Meanwhile, Anil Kumar Sharma, President, CREDAI-NCR, is of the view that those unnecessary and sometimes motivated delays in clearances of projects and subsequently in issuing the NOC for possession purposes are not only affecting the buyers but also negatively impacting the developers. In the view of experience faced during 2013, the members supported a proposal for concerted and sustained efforts for making the single-window clearance system a reality in 2014. It is said that the only challenge to that [single window clearance] is that the vested interests at the lowest level are so

Mr. vikas Gupta

May 2014

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INVESTMENT strong that they do not want any transparency in single window clearance. Now it is a chain of events, first get one clearance then apply for the second, the third and so on till all 33 clearances are received. Why can’t we have a platform for the builder or the promoter to apply for all the required clearances together? Such a platform can be easily created by the State governments or the urban local bodies, where the work of seeking clearances can be done simultaneously in a transparent manner. At last, one only hopes that government will make singlewindow clearance system for the realty world. If it could not, posterity will never forgive it. Meanwhile, it goes without saying that if the buzz in the PBD is in any indication; NRIs from Punjab are looking at investing in realty in Punjab or in NCR. " NRIs are seriously thinking to buy flats for investment purpose The confidence levels of NRIs are also high since many amongst them have already earned and continuing to earn huge returns on their earlier investments.,” says Nikhil Jain,CEO of Ramprastha Developers. Amarjeet Virdi, 47, is a Sydney, Australia based NRI. He is in capital to attend PBD conference. He is meeting guys at the stalls of real-estate firms and banks outside the PBD venue. He is keen to invest in his native state, Punjab, or Haryana. He is not averse to suitable proposal from NCR. Well, the large number of NRIs from the land of five rivers attending the PBD using this opportunity to book their flat/plot or Villa. Like Virdi, Ashok Bhalla, who is a Hong-Kong based NRI, said that he is thinking of buying spacious flats as I will return to Indian after threefour years. He wants to seal the deal after all his queries are addressed. After recent depreciation in the rupee, NRIs from around the globe have evinced interest to invest in real estate in India, a Gurgaon based real estate developer has said. "We have seen when the dollar appreciating against the rupee, there was a lot of interest among rich NRIs in the UK and elsewhere to invest in India," an oﬃcial of Bank of Baroda stall at the PBD informs. According to one estimate, over 2 lakh NRI’s, who migrated from Jalandhar, Kapurthala, Nawanshahar, Ludhiana, Hoshiarpur and other parts of Punjab, are living in other countries. Lack of NRI investment into property market has also had a negative impact on overall property business in Punjab. “Only end users prefer to buy property. Investors are missing from property business,” said a PNB oﬃcial at the PBD. "NRIs prefer projects with low entry level price points when it comes to investments, and premium projects for personal use. I feel

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May 2014

that the 20/80 scheme and 10/90 schemes oﬀered to customers has been a major attraction for NRIs,” says Mahesh Sharma, managing director of Mahaveer Hanuman Group, who also set-up stall at the PBD. There is a general feeling in the realty sector that those who have settled abroad do not invest here for any emotional reason. They are not emotional people. They talk about money and returns on their investments. As they feel that their dollar can fetch them good property, they are planning to buy property. “I have observed that NRI start investing in realty every time the dollar gets stronger. Considering the current scenario where the rupee has depreciated, NRI investments are bound to increase significantly," says Sanjay Khanna, director of Kailash Nath projects. “We got many queries from NRI customers from UAE, Singapore, the UK and the US. We have observed that demand from the NRI segment has increased by 25 to 30 per cent in the past few months,” says Gaurav Mittal, managing Director of CHD Developers. The fall of the rupee against the greenback in the past two years has resulted in the price of real estate falling by a corresponding 25 per cent in notional terms, assuming that the NRIs are paying in dollars. “If a residential unit was available for Rs 1 crore before the slide of the rupee, the same is now available for Rs 75 lakh for NRIs,” adds Mittal. “It goes without saying that NRIs are thinking of investing in realty because of strong dollar. Strong dollar has given them increased capacity to pay. I feel that it is high time that realty firms with swelling inventories should also attract cash rich NRIs and PIOs so that buy their flats,” says Kamaljeet Singh, managing director of Utkarash Developers with residential and commercial projects in Neemrana.

Sukhvinder Singh, an NRI based in Dubai, says, “I am going to invest in either Mohali or Zikarpur as it makes a lot of sense to invest in real estate now as appreciation of the investment is far higher here than most parts of the country. I feel that NCR will also serve my cause.” Market watchers say that NRIs prefer to book apartments in projects which provide the latest amenities. Even if they want to book a flat for investment or for giving on rentals their preference is for the projects which provide amenities such as quality flooring, latest and high quality of electrical and sanitary fittings along with equipment that ensure proper security in place. Recently, there has been significant increase in enquiries from NRIs for property in India. Mahesh Sharma, managing director of NCR-based Veer Hanuman group feels that NRIs are also returning back to India and that is why they are investing in realty sector and for their own use. According to experts, the Reserve Bank of India (RBI) through the Foreign Exchange Management Act (Fema) regulates how NRIs can buy property in India. NRIs can only buy residential and commercial properties and not agricultural land, plantation property and farmland. However, properties falling under these categories can be inherited. If any NRI has already held properties falling under these categories before becoming an NRI, he can continue holding them. Of course, such properties can only be sold to resident Indian citizen. NRIs can buy multiple residential and commercial properties in India. Also, no prior permission is required for such transactions. NRIs can hold the property in joint names with another NRI but not an Indian resident or a foreign national. It goes without saying that the realty scene of Punjab to see better days if the mood at the PBD is any indication.n

May 2014

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BHOOMI POOJAN

TDI Infracorp Performs Bhoomi Poojan

'Lakeside Heights'

at Lakegrove City

DI Infracorp, one of the leading real estate developers of North India, shaping memorable stories for last 25 years, performs the Bhoomi Poojan of its architectural marvels Lakeside Heights, at Lakegrove. “Lakegrove” is an integrated township built around artificial lake in Kundli-Sonepat. The world-class township endows lavish lifestyle compete with Skyscrapers, High rise, Water Side Floors; Independent Villas & Plots which oﬀers an unparalleled level of magnificence and serene view of the lake. In Lakeside Heights the company will develop 416 beautifully planned apartments with 2 and 3 BHK Apartments, Homes that epitomize aﬀordable Luxury, Lakeside Heights will be the dream homes for all middle income groups’ buyers. Speaking during the occasion, Mr. Nitesh Kumar, COO, TDI Infrastructure Ltd said, “We are delighted to have an overwhelming response for Lakegrove. As a responsible real estate Mr. dujender bhardwaj Mr. Pawan jasuja with we your life style direCtor,developer abCZ buiLders Pvt. Ltd.always believe to enhancedireCtorFinLaCe ConsuLtinG

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May 2014

world class amenities. We are proud to perform Bhoomi Pujan of Lakeside heights apartments. Lakeside heights will be an example of modern life style and the choicest destination for smart home seekers.” “The project has been master planned by the leading architectural firm of London, HOK which has earlier designed the Delhi Airport (T3 terminal) and Lavasa Township. HOK has been associated with some stunning architectures of the world like Barclays World Headquarters, UK; Zagreb Mall, Croatia and many other architectural and engineering marvels, to name a few” Mr. Kumar added. Strategically located, in north of Delhi on main NH 1 in Kundli-Sonepat, TDI Lakegrove is just 15 minutes away from the posh and upmarket residential hubs of North and Northwest Delhi like Pitampura, Rohini and Punjabi Bagh through the signal-free Mukarba Chowk. With improving infrastructure Mr. satyendra toMar and upcoming fast connectivity, Kundli-Sonepat is emerging joint Md- ProPLarity GrouP

as the new hotspot for end-users and buyers. The upcoming 135 km long Kundli-Manesar-Palwal (KMP) Expressway could make the real estate projects on Kundli-Sonepat zone more viable for investors. The much awaited Kundli-Manesar-Palwal (KMP) Expressway (also known as the Western Peripheral Expressway) which inter-connects for national highways NH-1, 2, 8 and 10 in Haryana will be fully operational soon while work on Kundli-Ghaziabad-Palwal (KGP) stretch is also under progress. The infrastructural developments will be buoyed by setting up of a 5000 acre Rajiv Gandhi Education City of which IIT Delhi will be a part of the first phase development of 2000 acres, apart from this Ashoka University, Asian Educational Society, Foundation for organizational research and education (FORE),

ManavRachna University, N.C. College of engineering and research, Hindu School of Architecture, RIMT Technical Campus, Shri Balwant Institute of Technology and Research, BharatiVidyapeeth University, Pune, SRM University Haryana and National Law university are also starting their operation. Other projects like Hospitals, Education Centres, Resorts and Recreational amenities are also brimming with growth in the region. There is a full pace infrastructure development in the form of a 100 metre wide road from Narela to IGI Airport too. Other developments in the vicinity include SEZ, the Rai Industrial Area, a Proposed Cyber City, extended Metro, and Rapid Rail Transit System (RRTS), linking Kundli from Delhi in just 20 minutes.n

May 2014

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REAL-ESTATE

GREATER NOIDA WEST AND NH-24

The Emerging Commercial and Retail Destinations

with passing time, rental value and demand have increased at these locations across all categories.

f you talk about Real Estate projects in NCR, Noida and Ghaziabad are two of the locations that enjoy the proximity to the capital city not only in the category of residential but also in commercial and retail space. There are numerous projects coming up in this sector which establishes this fact. After the residential growth, Ghaziabad has become the new commercial hub followed by the demand in oﬃce space that emerged in the form of EDM mall, Pacific mall, Ansal Plaza, Shipra mall, Opulent mall, Aditya mall, Jaipuria Mall and many more. Similarly Noida has emerged as the biggest location of retail and commercial destination in the form of Sec 18 Atta Market, Centrestage Mall, Great India Place, Shopprix Mall, Sab Mall and some upcoming ones like; Mall of India, Galleria etc.

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With passing time, rental value and demand both has increased at these locations across all categories. No need to say that in coming years it would be difficult to find commercial and office spaces at these locations. This will cause corporate, professionals and business giants to find out new locations to operate well and continue in touch with industry. Mr. Pawan Jasuja, Director of Finlace Consulting, who deals in real estate segment, says, “In future, demand of office space and retail is likely to rise since people will shift here and most professionals will avoid traffic to save time and money both. Strategic location of Greater Noida West, just adjacent of NH 24 will give it more pace. As per the development, Gr. Noida West will be one of the most populated location in the region and this will require their local shopping centers, entertain-

Mr. Pawan jasuja director- Finlace

Mr. satyendra toMarDirector- Proplarity Group

ment zones, mall, office space, hotels etc. NH 24 is also an emerging location after Waves city and other projects. The proposals of expressway and highway at NH 24 are supporting developers to come up with innovative ideas around this area. No doubt available land bank and low rental will pull more buyers towards locations.” In this scenario, Greater Noida West and NH 24 (in Ghaziabad) have emerged as the most suitable destination because of its cost effectiveness in comparison to Noida and Ghaziabad. Moreover, it offers a juxtaposition of open land, retail space, corporate suits, and lockable space in both furnished and unfurnished options.

Mr suresh GoGia CMd- ascent buildtech

Projects at Gr. noida west Gr. Noida West is well connected with Delhi, Noida and Gr. Noida and as decided by NCRPB in Master Plan, Bodaki will one of the biggest railways junction and will be strategically connected with Industrial corridor. ‘Upcoming Industrial Township’ is expected to create job opportunity for millions. Days are not far when metro or mono rail will be realty for the region and commuters will have another mode of transportation apart from road. To support such huge population of Gr. Noida West, govt. will definitely bring hospitals, educational institutions, community centers, clubs, banks and ATM, strong sewage system, water supply system, power supply and internal trans-

May 2014

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REAL-ESTATE portation etc. If we see current status, there are multiple commercial projects are coming up like; Premia Corporate City, Intellicity, NX One, Trustone, Imperia, Regal Imporio and others. Most of them are based on mix land use and offering retail, commercial, hotel, office spaces, corporate suites etc. Sarvottam Group is coming up with their commercial project, NX One at Greater Noida West. Mr. Vikas Jain, Director of Sarvottam Group talks about exclusivity of projects and says, “This locality is going be the most desirable commercial hub in coming years because of most affordable rental and desirable space availability. We have launched NX One to cater the requirements of the professionals, families and corporate. Apart from commercial and retail, we are offering space for IT & ITES services, furnished and non furnished lockable space, 3 star hotel and studio apartment. Being near to the proposed metro plan, easy conveyance is going to be one of the favorable and convincing traits of this project. The heterogeneous land usage has enhanced the significance and deliverance of the project.” Measuring the future prospects, the developers are coming up with integrated city concepts to offer better opportunity for buyers in future. Huge land bank is attracting developers to experiment something new and pull buyers from India and abroad. Intellicity is similar type of concept from Airwill offering mix of residential, retail, office and hotel in the same premises of 25 acre. Promising most intelligent city of Gr. Noida West, the group is proposing advanced features in offices and apartments and dedicatedly named very innovative like; CerebrumIT Park, Spine- Office Spaces, Smart Ville- Luxury Villas, ChordClub, The Front Lobe- Retail space and ThinkPad- Studio Apartments. Similarly Onyx from Imperia is also offering home to office concept.

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May 2014

aditya builders and developers are coming up with unique concept of “high street” market to provide ultra modern integrated state of the art amenities near nh 24. having close proximity with high tech township and other proposed townships, this will redefine the philosophy of high streets like; Khan Market, atta Market, janpath and Central Market of Lajpat nagar. Projects at nh-24 Similarly NH 24 has very bright prospects in coming years and developers have shown their interest at this location. Aditya Highstreet, Waves City, Ascent Arcade have launched project offering new age shopping and office space with world class infrastructure. Connectivity of Waves City, Aditya World City, Shauraya Puram at NH 24 is undoubtedly superb with Ghaziabad, Noida and Gr. Noida. Now upcoming Link Road and widening of NH 24 is about to rewrite growth history of the region that already has dozens of residential projects. Aditya Builders and Developers are coming up with unique concept of “High Street” market to provide ultra modern integrated state of the art amenities near NH 24. Having close proximity with High Tech Township and other proposed townships, this will redefine the philosophy of high streets like; Khan Market, Atta Market, Janpath and Central Market of Lajpat Nagar. Developing on international standard that ideally suits to house big corporate and multinationals, the seven storey building will be a comprehensive unit having shops & offices, conference hall, gymnasium & cafeteria etc.

Waves group is also offering Central Business District and Shop-cum-Office plots in Waves City. This will be offering high street mall and luxury office spaces along with ample space of accommodation, park keeping all leisure at work. At the same time, Ansal API is also coming up with Ansal Plaza at NH 24 near proposed metro station and in vicinity of newly built residential complex and offering mix of shops, offices, retail space, exclusive showrooms etc. Spread over 5.5 lakh sq. ft , area has got state of the art design and is part of one of the biggest integrated township Sushant Aquapolis and claims to emerge as largest retail destination of Delhi NCR. Ascent Buildtech Pvt. Ltd. has recently launched their first ever commercial project, Ascent Arcade, at ‘Shaurya Puram’ adjacent to NH 24 which is going to cater to a big population of nearby localities. Mr. Suresh Gogia, CMD of Ascent Buildtech, says, “Before this we have been in residential projects and this is our very prestigious and first commercial project in Ghaziabad. NH 24 is soon going to be the next hub for residential

purpose and at the same time it will require well established commercial locations to meet the needs of the residents. During this tenure, we have faced many hindrances and challenges but fortunately managed to combat them with our hard work and determination. Ascent Arcade is actually results of those sweet and sour experience and we are very hopeful with future demand of this area. In construction field, we have no competition but this is an opportunity for us to create something different.”

highly beneficial investment Mr. Satyendra Tomar, the Joint MD of Proplarity Group, says, “for any development, location and infrastructure matter a lot. Gr. Noida West and NH 24 both are one of the best location for realty growth and available huge land bank will create opportunity for better infrastructure. In entire NCR, these two locations have got immense possibilities since projects are coming up under mixed land use that has unique offering for all type of buyers! Existing and upcoming industrial development around NH 24 and Gr. Noida West will surely make it a highly beneficial investment zone too, just we need a sustainable and planned growth.” “As a buyer I can see whole lot of options in Gr. Noida West since developers are coming up with projects having unique propositions. Changing the concept of traditional commercial space, many projects are offering office spaces, retail floors, corporate suites, hotels, separate food and entertainment zones, IT & ITES space and studio apartments in the same premises based on Mixed Land use. Surely it could be a game changer for coming projects. For NH 24, it is little early to say since the best is yet to come.” Says Reetesh Singh, a prospect buyer who is looking for suitable office space. n

May 2014

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TREND

due to barriers like irregular growth of city facilities, quickly increasing functional costs, area scarcity and excessive property prices, the focus moved towards the so called â&#x20AC;&#x153;emerging hubsâ&#x20AC;? or the tier-ii places of the country. as the tier i cities in india reach their limits in development, buyers and investors are showing a great interest in entering the tier ii cities.

Real Estate Trends in Tier I and II Cities A

s the tier i cities in india reach their limits in development, buyers and investors are showing a great interest in entering the tier ii cities.

oday the real estate sector is focusing on providing all amenities and comforts in both tier I and tier II cities. It has come to acquire many aspects of development across its subsectors. Commercial realty sector have turned into smart and eco-friendly structures. The retail sector is rapidly growing with dense show stores at high-end market locations.

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May 2014

They diďŹ&#x20AC;erentiate their stores by investing in innovative formats ranging from Food, discounts to convenience stores. The residential property resources are also changing along the pattern of fast urbanization and commercialization in the urban areas of the country. Buyers are looking for individuality and uniqueness in their design with high aesthetics sense. The tier I cities include Mumbai, Delhi and NCR, Kolkata, Chennai, Hyderabad and Bangalore while cities like Lucknow, Chandi-

garh, Bhopal, Jaipur, Kochi, Indore, Coimbatore, Mysore, Raipur, etc. constitute of the tier II cities in India. The tier I cities are the big cities or the metro regions where development took place a long time ago where as tier II cities are in fact the extension of these metro cities. India has witnessed a tremendous growth in its economy through the real estate. Over the last few decades, development have been taken place majorly in the tier I cities. These cities witnessed rapid growth and a spurt in urbanization that fuelled the inflow of massive populations from the countryside and smaller towns. Multi storied buildings, sky scrappers; mega townships, luxury malls, hotels, premium residential properties and industrial growth have already taken place in these cities. Due to barriers like irregular growth of city facilities, quickly increasing functional costs, area scarcity and excessive property prices, the focus moved towards the so called “emerging hubs” or the tier-II places of the country. As the tier I cities in India reach their limits in development, buyers and investors are showing a great interest in entering the tier II cities. With the current stagnant state of residential real estate in tier I cities, investors are looking towards these cities to invest due to the benefits which they oﬀer; planned development, chances to grow, new opportunities, better hygiene, relatively less congestion and pollution. Tier II cities market are also booming due to the huge growth of industrial sector and overall high rate of development, both in commercial and residential terms. Residential sectors in these cities attracts the buyers and are selling fast, due to its cleaner environment and slower pace of life, also with new job opportunities which are as good as those found in the metro due to the relocating of many BPO centers, IT and Manufacturing companies. Being the extension cities of the booming metro cities the developers have been investing in these cities for quite sometimes. Residents as well as non-residents are showing interest in making investments in tier- II cities. Apartment culture is growing in these cities, for which many people are buying housing units in townships and gated communities as their second home. Educational, retail store, entertainment options, health care and recreational zones interests the customers within the residential areas that provides all the advantages which can be aspired by the customers. Due to their wide field, the town-ships are being developed on large packages of land. Real estate developers are catering interconnected well planned and organized living experience to the home buyers. Real estate firms are shifting to these cities for cheaper real estate and manpower. Clearly, there Mr. suMit bharana director of era Landmarks

real estate firms are shifting to these cities for cheaper real estate and manpower. Clearly, there are many factors which led to the growth of real estate in these cities - walk-to-work concept, quality lifestyle, media exposure, the emergence of software companies and an increased affinity to retail. are many factors which led to the growth of real estate in these cities - walk-to-work concept, quality lifestyle, media exposure, the emergence of software companies and an increased affinity to retail. Cities like Noida, Gurgaon, Chandigarh, Patna, Mohali, Nagpur, Lucknow, Agra, and Udaipur have significantly improved in the real estate option. These cities offer an opportunity to developers for the concept of low cost housing or affordable houses. These cities also provide the builders several other advantages such as lesser salary expectations, lesser price fluctuations, a comparatively low labour cost and low operation cost. The return in investment is higher and much more stable as compared with the metros. With the increase in employment opportunities, home buyers are increasingly becoming more interested in the properties. Many people have been investing in these cities for their second homes for aged parents for whom the fast paced life of metros is a deterrent. With the government support in upgrading the urban infrastructures and the improvement in connectivity, these cities have become more accessible and hassle free. International airports are a part of cities like Chandigarh and Amritsar. These cities also provide great opportunities for investors like NRI's who prefer a bungalow spread over large acres of land. Also these places minimize the drawbacks that are associated with metros - of a reduced personal life, high living costs, costly transport, huge traffic and travel time, costly house rent and education.

sumit bharana Director of ADEL Landmarks Project Limited (Formerly known as Era Landmarks), the real estate arm of the Era Group is an ISO 9001: 2008 certified company that was incorporated in 2005. A premium and leading real estate company; it has a diverse product portfolio spread across Residential, IT Parks, Commercial, Malls & Multiplexes. n

May 2014

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OFFICE MARKET

the 8th Most expensive Location

G I

iven that it is one of the oldest established oﬃce centers in india and is in proximity to other establishments like government organizations, trading centers and retail location, demand for quality oﬃce space continues.

n the annual survey by global real estate consultant Cushman & Wakefield, New Delhi’s Connaught Place fell four notches to settle as 8th most expensive location in the world. The report ranks locations across Americas, Europe, Asia Pacific, Middle East & Africa to compare the most expensive oﬃce destinations across the world. London’s West End emerged as the world’s most expensive oﬃce market retaining its position ahead of Hong Kong in second place. Of the top ten markets only London (+5%) and New York (+17%) have seen a rise in rental values, while most other top ten markets recorded a slowdown in rental values over previous year. Moscow and New Delhi recorded no changes in rental values. Despite a stronger performance against most of

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toP 10 Most eXPensive LoCations by Country 2013 ranK

2014 ranK

Country

City

LoCation

oCCuPanCy Cost (€/sQ.M/year)

oCCuPanCy Cost (us$/sQ.Ft/year)

1 2 6 7 5

1 2 3 4 5

uK hong Kong russia China japan

London hong Kong Moscow beijing tokyo

2,122 1,432 1,092 1,027 1,003

271.61 183.32 139.80 131.48 128.34

usa

new york

993

127.09

brazil

991

126.87

india

rio de janeiro new delhi

west end Central Cbd Cbd Cbd (5 Central wards) Midtown (Madison/5th av.) Zona sul

959

122.73

10 9

9 10

France australia

Paris sydney

895 844

114.58 108.05

the top markets, the Connaught Place fell from fourth position to eighth due to an appreciation in both the US dollar and euro against the Indian rupee in

Connaught Place Cbd Cbd

2013; this caused a shift in New Delhi’s position in terms of global occupancy costs when measured on a dollar or euro basis. Connaught Place has wit-

asia PaCiFiC: LoCations with LarGest rentaL Growth)

ranK nessed stable rentals at INR 403 /sf/month. Limited activities in the location has led to the rentals remain stable and may continue to at similar levels as the market may have reached its peaks rental backed by the still prevalent and positive demand for office space in the area. The location continues to remain high on priority for sectors such as BFSI, consulting, trade, media etc. Given that it is one of the oldest established office centers in India and is in proximity to other establishments like government organizations, trading centers and retail location, demand for quality office space continues. Mr. Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said, "The weakening of the Indian Rupee against the dollar / euro has office markets in India favorable for International occupiers whilst domestic occupies have not seen any significant change in rental values. Connaught Place has remained favourable with office occupiers due to its inherent positives of location and legacy and with limited Grade A supply expected in the near future, the location will continue to to command high rentals. However,

City

1 2 3 4 5

jakarta bangkok singapore Manila taipei

6 7 8 9 10

shenzhen seoul shanghai auckland Kolkata

Micro Market

% increase in rentals (y-o-y)

rentals/sf/ yr (us$)

Cbd Cbd Cbd Makati Cbd (Xinyi Planned area) Futian Cbd Lujiazui (Pudong) Cbd Cbd

20.35% 20.04% 19.29% 11.78% 9.60%

$60.06 $32.98 $102.84 $25.27 $64.87

8.58% 5.59% 4.88% 4.65% 4.35%

$60.59 $40.26 $106.74 $41.29 $38.52

source: Cushman & wakeﬁeld research

going forward, the supremacy of Connaught Place may be challenged with newer corporate offices locations in Gurgaon that may provide better alternatives to New Delhi CBD. The trend may be similar to that in Mumbai where the planned location of BKC and the redevelopment of Lower Parel as new office destinations have been able to replace Nariman Point in terms of demand for office space. Kolkata CBD recorded the highest rental growth in India at 4.35% in 2013 driven by the positive demand from sectors such as BFSI, services / consulting

Most eXPensive oFFiCe sPaCe LoCations in india 2013

Country

City

submarket

rent

india india india india india india india india

new delhi Mumbai Mumbai Kolkata bengaluru Pune Chennai hyderabad

Connaught Place bandra Kurla Complex Cbd Cbd Cbd Cbd Cbd Cbd

414 285 275 133 85 80 76 41

annual rental growth 2013 0% 0% 0% 4% -3% -4% 0% 2%

etc. With many older office spaces going for renovations to enhance the quality of office space offered, the location has been able to command better rentals owing to this positive trend. Mumbai’s Bandra Kurla Complex (BKC) with rentals of INR 285 / sf/ mnth emerged as the second most expensive office location in India and 8th most expensive across APAC. The location has remained stable in terms of rental values over the last year due to a large upcoming supply which is estimated to be approximately 3.3 msf in the next two years. This is also expected to ensure that values remain at their current levels for a few more quarters. Demand for office space in this location has been driven by front office operations of BFSI, consulting, government and semi government organizations etc. With an increased trend of consolidation, relocation and collocation being observed in the office sector, demand is expect to remain positive albeit at similar rental values. n

source: Cushman & wakeﬁeld research

May 2014

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NEW HORIZON

Supertech Entered into Bengaluru with S

‘MICASA’

upertech launched its first project, Micasa, in southern india. Project was inspired by ‘spanish architectural style.’

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upertech Limited, North India’s leading real estate developer is now entering to the Southern part of India with its first project, Micasa in Bengaluru. Supertech announced its first residential project in the city which will have ‘Spanish Styled apartments’ at Thanisandra Road in North Bengaluru. Spread over an area of 1.75 acres, Micasa will provide aesthetically designed apartments in 2 & 3 BHK options. The area of these units will range between 1100 sq. ft. to 1735 sq. ft. These lavishly furnished apartments are planned according to the Spanish grandeur which is spread all across the township. This spectacular project will offer around 200 residential units within the price range of Rs. 3790 per sq. ft. Speaking on the occasion of launch of Micasa, Mr. Mohit Arora, Director, Supertech Limited said, “We are thrilled to have our first venture in Bengaluru with Supertech Micasa with its innovative features and unbeatable location. The IT hub a stone’s throw away, virtually assures capital appreciation. With vibrant Spanish architectural designs, Micasa will be an epitome of opulence, luxury and elegance, with the world class luxurious modern conveniences.” Micasa is a Spanish word that means ‘My Home’ in English and is the first project of Supertech Ltd in Bengaluru city. Bengaluru being a topper of the list of major Indian cities and is one of the most popular real estate destinations in Southern India, is one major reason that the group chose the city for launching this project. Spread across 76,230 sq ft of land parcel, Supertech Micasa is inspired from ‘Spanish architectural style’ and is offering opulent 2/3 BHK apartments. Located on Thanisandra Road, North Bengaluru the venture has total of 200 units in 4 towers. The entire project once completed will offer some of the best in class amenities and facilities to its residents. In short the residents at Supertech Micasa can enjoy blissful living that will come equipped with international style features with a hint of Spanish flavor. Located at a posh locality of the ‘Silicon Valley’, these exceptional homes are discerningly carved out to offer a niche lifestyle to its residents with international standard and a Spanish tint. The Thanisandra Road region where Supertech

Micasa will be located remains to be a serene situated area, with all prime locations connected to it and all major facilities located in its neighboring locale. The region has got enormous potential and the city has also seen a great raise in immigration of professional from other cities, thus creating a huge gap in demand and supply for luxury houses. Strategically located near Yelahanka the project is in close proximity with Kempegowda Worldwide International airport. Moreover, six lane roads give an advantage to the residents for congestion free movement and better connectivity from the main business region to Manchester International. Artistically designed, the project will be well equipped with all the necessary and high tech facilities which a modern home demands. The amenities will include a swimming pool, clubhouses, gymnasiums, pool tables, table tennis arenas, etc. Apart from this, the campus of the project will have clean green- manicured lawns, kids’ play area, reserved parking spaces, Wi-Fi connectivity in campus, CCTV Surveillance cameras, fire safety measures etc. Supertech Limited has successfully completed 25 years in the real estate business and today it has revolutionized the real estate arena. The company has to its credit a customer base of 50,000 clients. Supertech is scaling new heights constantly on the strength of engineering techniques, innovative designing, architectural finesse, quality and timely completion of the projects undertaken. Supertech has led to creation of various landmark projects in the fields of residential, commercial, townships, retail and hospitality. The company has already converted more than 33 million sq. ft. of residential and commercial entities. With projects worth Rs. 18,000 Crores in hand, the company has over 90 million square feet under construction. It has presence in Noida, Greater Noida, Gurgaon, Ghaziabad, Meerut, Moradabad, Haridwar, Rudrapur and Bengaluru. The landmark projects of the company are Supernova, ORB, North Eye, Emerald Court, 34 Pavilion, Cape Town and Eco Citi in Noida, Eco Village I, II & III at Greater Noida West (Noida Extension) Upcountry and Golf Country at Yamuna Expressway.n

May 2014

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NEW HORIZON

The Next Realty Destination

Sector 74-77 noida

oida has always been considered as one of the most prominent market for real estate investment. The kind of location advantage that Noida gets is unbeatable. It has got three entry/exit options from Delhi; DND, MayurVihar side and finally NH 24. This acts as a boost and

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an attraction for the investors coming from Delhi and nearby areas. After the development of initial sectors of Noida, sectors starting from NH 24 are the current hit. Starting sectors from 62 â&#x20AC;&#x201C; 70 had witnessed a massive demand few years which now has shifted to mid sectors of 70. Sectors 74, 75, 76 and 77 have seen a tremendous grow in the

demand for the past few months, and looks to grow even more. With brands like JM Housing, Prateek Group, Ajnara India Ltd. Supertech, Amrapali, Maxblis, etc. the demand is sure to roar. Mr.Vikas Chawla, Director, Maxblis says “There is a great amount of work taking place in these sectors. The location and connectivity is excellent. The best feature about this place is that most of the development started simultaneously and will also see the completion near about the same time in the coming future. There are a lot of residential and commercial spaces available for the customers to choose from as well.” JM Housing one of the first developers to give possession on time in the region delivered its residentialproject ‘JM Orchid’ offering 2 and 3 BHK apartments. Mr.Rupesh Gupta, Director, JM Housing says, “This region already looks very different from other sectors of Noida. The kind of development that is being done here will make these adjoining sectors, the key sectors of Noida. There is a lot of commercial and residential development taking place which will provide this place with an overall five stars”. Prateek Group, one of the realty majors of NCR is also coming up with a residential project in sector 77, Noida offering 2,3 and 4 BHK apartments along with wonderful modern amenities. Mr. Prashant Tiwari, CMD, Prateek Group says “The highlights of these sectors are location, connectivity, price ap-

preciation and general development. The developers here have also come out with one of their best ideas as the area demands so. Already in the last three four years the price of this region has doubled. It is very clear that this region has witnessed one of the best appreciations as well.” Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “Looking into these sectors is like looking at the next real estate hub of Noida. These sectors have shown signs of tremendous growth and opportunity for both, investors and end users. The major growth drivers for these sectors are the location advantages and connectivity. Also, prices at these sectors are still lesser as compared to other sectors of Noida”.n

May 2014

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COVER REAL ESTATE STORY

Bring in “ The cadence”

aradise Infrasolutions Pvt. Ltd. has created its name in the real estate industry since 1996, making 2014 as the 18th year of their operations based out of Gurgaon. The Group is led by the pioneering eﬀorts of Mr. J. S. Rana, Chief Managing Director of the Group whose visionary leadership and unwavering dedication have helped the group in successfully carving out a niche for itself. Paradise Infrasolutions Pvt. Ltd. Visions to become the leading Real Estate developer, known for enriching lifestyles of residents or society as a whole. Their Mission talks about creating sheer customer delight by deliver unrivaled services at the most competitive prices within stipulated time, while maintaining the best standards of innovation, transparency and professionalism. Paradise Infrasolutions Pvt. Ltd. is a name synonymous with quality, customer delight, reliability and excellence and believes in delivering innovative projects, combined with contemporary architecture, strong execution and path-breaking construction. This has helped them transform into a brand to reckon with and earn a spotless reputation in the arena of Property Deals relying on their Honesty, Transparency and Professional Philosophy. Today they command a long list of satisfied and happy customers. The Group has been successfully involved and worked with reputed builders all across Bhiwadi. After gaining adequate experience in the industry they have embarked upon its maiden project The Cadence, a unique project first of its kind in Bhiwadi. The company with its innovative philosophy aims at serving the

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May 2014

end users, keeping in mind the Aﬀordability , Accessibility and Authenticity being key factors when considering real estate options. Their marketing strategy is based on principles of Honesty, Transparency and Professionalism. Their business model is simple and easy to understand- To deliver Asiana along with all the possible amenities required as well as desired by the users in time keeping in mind the various concerns like Security, Safety, Peace and Harmony. The Cadence, one of the major projects of Paradise group, talks about celebrating the rhythm of life. “Nature’s every creation is a masterpiece. When such creation is further reinvented through man-made innovations, excellence is born.” Shelter creation for the common folk of the great country is our inspiration. Innovative technology, ethical principles, transparent term and condition, all are put together to conceive our maiden project - The Cadence. Spread across 15 acres of land providing 72% greenery and the perfect serene environment everyone is looking for in their fast paced lives. ‘Cadence’ has its dictionary meaning as rhythm, the essence of any creation with intensive value of ‘Harmony’ in all respect. It’s the brainchild of our visionary director. Welcome to the natureled-innovation, a picture perfect setting that will help you and your loved ones discover a joyous living. The Cadence enjoys a flourishing location of Bhiwadi. Since Gurgaon is rapidly reaching the saturation point in terms of real estate development, price rise and nature-rich living, Bhiwadi becomes the realty hotspot. n