Complimentry copy not for sale
Choosing the right
would like to wish a very Happy and Prosperous New Year to all our readers. Hope that each one of you enjoyed the previous edition of CREDAI Times which was my first as its editor-in-chief. Keeping up with the tradition of bringing reader-friendly articles as well as becoming the voice of CREDAI members, the lead story in this issue talks about the succession plan and change of guard in our industry. This issue is extremely relevant as we have discussed in detail the factors and points the companies should keep in mind while handing over the keys to the next generation. The recently-held NATCON in Barcelona was a great learning experience for all CREDAI participants. For the readers who could not join us in Spain, we bring an extensive coverage to make sure they get to know what experts from other countries shared with us. In this issue, we have highlighted CREDAI’s association with reputed institutions like IIM-Bangalore, RICS and NICMAR. These associations will help the industry in a major way as the skill sets and professionalism in the real estate sector require tremendous transformation to keep up with the pace and advancements in technology and know-how of the ever-changing real estate sector. I would like to request CREDAI member associations to use CREDAI Times as a platform to get recognised on a pan-India basis by finding mention of their activities in the magazine. We have also increased the print run and expect our readership will increase and that our readers’ expectations are met. We are soliciting information from our state and city chapters and existing coverage is being given due space. Please send information about any such activities being organised in your respective chapters. We are thankful to the advertisers who advertise with us as without their support this effort would have been incomplete. Through CREDAI Times, we are trying to bring the concept of focussed state/ region for the next issue which will highlight and bring the complete gamut of real estate activities, particularly CREDAI members and their vital contribution in the field of GDP, employment and infrastructure development in that particular region.
Srivastva is the managing director of Assotech Limited. He is B Tech (Civil Engineering) from NIT Calicut and is based out of Noida (UP).
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Presidentâ€™s message Chairmanâ€™s message
Dear members, I take this opportunity to wish you all a very healthy, peaceful, prosperous and a Happy Year ahead. All of you may be aware that CREDAI has worked on many mutually beneficial steps and has taken initiatives that will help the real estate sector grow by leaps and bounds. Compared to yesteryears, CREDAI has taken a giant leap forward in almost all quarters of the realty sector during last year. Starting from propelling the Government to secure industry status for the realty sector, setting up Consumer Grievances Forum, expanding from a mere 75 to 116 chapters and getting its name promulgated all across the country. It has become the face of the Indian realty sector to be recognised by the international community. We recently organised NATCON in Spain (held previously in Singapore, Dubai, Macau and Malaysia) which has added to our international recognition and got noticed by the doyens of the industry world over. CREDAI has initiated all measures to ensure that there is enough skill available in the sector to meet the colossal requirement through the decision to have study courses in association with IIM, RICS and NICMAR. CREDAI is making sure the stalled projects get bank loans to help them see the light of the day. We assure the members that CREDAI will keep on working on the aspects affecting the real estate sector in India. With best wishes and warm regards,
Chairman, CREDAI National
Dear friends and colleagues, I feel we have now done enough to lay the foundation of becoming the face and voice of the real estate sector in India and that we advance from this platform to look into future as well as gather our thoughts to work closely with the authorities to devise the best policies that would facilitate the business environment to fetch a better yield for the generations to come. The policies are being formulated and the Government is to be moved to customise these policies according to the changing environment all around and even for the realty sector in the country. CREDAI, through its presence and service by its members towards society, has become a household name in some provinces. In a short span, it has reached the pinnacle of glory. Its strong representation in the task force for affordable housing, regulatory bill, land acquisition bill, banking sector, taxation committee, skill development sector, pre-budget recommendations etc have made CREDAI the robust voice of Indian real estate. The sector, that already contributes substantial to the Indian GDP, is all set to register a metamorphic double digit GDP growth in the coming years with liberalised and encouraging Government policies. The alignment of Government machinery can change the canvas of the realty sector. Today, worldwide reforms are taking place and Indian real estate also needs reforms in areas related to administration, taxation, banking, fiscal, land acquisition etc in order to ensure the sector makes healthy contribution to the economy and help in its smooth functioning. One of the futuristic steps that CREDAI has taken is to contemplate setting up of its Youth Wing which will nurture the issues of real estate at municipal levels of the cities and districts. This wing will set targets for future of the Indian realty sector as they already have international exposure of learning and possess the mettle to take Indian realty to the next level with changing times. It is also my desire that CREDAI receives representation in its Youth Wing from every city where CREDAI is present. I wish all a happy and prosperous New Year.
Lalit Kumar Jain
President, CREDAI National
lead story Points to keep in mind during change of guard in your organisation
tech talk Importance of social media
conversation Market efficiency, transparency and real estate
Eco route Developers turning to green building
Accolades for Lalit Kumar Jain
Management course by RICS
Real Talk Land crunch problem needs to be looked into
chapter News News from all the CREDAI chapters
12th NATCON Convergence of developers in Spain
Trends A look at new marketing practices
Development IIMB-CREDAI business programme
guard Real estate has faced problems during business transition from one generation to another. Vivek Dahiya gives an insight into the matter
eal estate across the globe is predominantly a regional business. Developers have flourished in their areas of influence over generations. This is also true across all parts of India where case studies can be quoted of firms which have continued to do business over multiple decades. There have obviously been examples where the next generation hasn’t been able to take over adequately. However due to several reasons, success stories easily outnumber failures. Even if the next generation hasn’t been able to evolve their businesses to the next level, they have maintained status quo with relative ease. Here we take an interesting look at how the change of guard took place in the real estate industry in India and how it was so successful.
Reasons for this success
There are a few first-generation, self-funded developers. Globally, real estate developers emerge mainly from three backgrounds. These are: • Contractual business • Brokerage/ advisory businesses • Diverse business family
Contractors already have basic understanding of construction and regulatory matters. Subject to the profitability of their businesses and aspirations, many of such businesses turn to development for greater profit and in some cases to secure their construction business. Brokerage/ advisory businesses also have deep and professional understanding of the segment of industry they operate in. However, their margins are mostly not large enough for undertaking development. A large diverse business always ends up exploring new avenues to invest. Usually, real estate offers highest possible returns from the various options available. Several of these investments then offer opportunities to understand real estate and then undertake development. In fact, several business families, especially in India, completely moved to real estate when their historical, original nature of business hasnâ€™t grown as expected. In case of all the above backgrounds, understanding of real estate has grown over a period of time. This transition ends up taking place over several years. This usually allows next generation to stay involved in setting up of the real estate business. For several business families, diversification in real estate is a task allotted to someone in the younger generation. This also is a means of avoiding conflict in the next generation. Transition into real estate development, especially in India and as described above, has started taking place mainly since economic liberalisation. The 1990s provided greater opportunities and allowed for higher number of people explore real estate development. This has increased competition and improved the product as well. For the existing development firms, the change of guard so far has been relatively easier. There had been limited developers in each region who monopolised all real estate development. Such business was run in close-knit privately held firms. In most cases,
A large diverse business always ends up exploring new avenues to invest
relatives and/or acquaintances were employed in key positions, both due to lack of trained resources and limited trust in outsiders. Hence, the next generation was already in the thick of things right from their early days. Interestingly with several such older development firms, we still find the next generation already getting involved in the family business at a very early stage of their professional careers.
How the change takes place
This change of guard takes place in several ways, depending upon the nature of business and the stage of evolution of their business. Whenever the next
generation takes over, unless there is only one child, some changes take place. It should be clarified that the change of guard in all cases so far has been within the family and there have hardly any cases of professionals taking over family business. To undertake the change of guard, several modes have been used successfully over time. Some of them are: Start the real estate business: As mentioned earlier, real estate has provided a good escape route to avoid potential conflicts. Several of these investments into land/ building are clubbed in a new SPV to create a development firm which is then gradually
handed over to the younger generation. Identify new markets: In many cases, new and different cities/ towns have been identified to carry on the family business by next generation. This reduces potential conflict of interest. Businesses verticals: Segregating various real estate businesses into separate ventures has also been a successful way of allowing change of guard to take place. In some cases, large joint families who set up the real estate business found it difficult to split the businesses and/ or allow for change of guard to take place efficiently. This resulted in the same name being continued for several firms. While their antecedents were the same, how the split ventures grew depended on the potential of the next generation and how the split was undertaken. Interestingly in Indian real estate sector, some of the most successful case studies of change of guard were when the son-in-law became a part of the family business and took it to greater heights.
What can we expect in future?
As professionalism increases in Indian real estate, we can expect better transition and higher growth in all segments of the industry. While several developers have listed their businesses, it would be surprising to expect professionals taking charge of such firms in any near future. The change of guard would continue to take place within the promoter family or the majority shareholders. Firms with better systems and processes plus a focus on professional training and exposure to the next generation would be better placed in undertaking a smooth and effective change of guard. Finally, developers who focus on attracting best-in-class professional talent from the corporate world into their firms would stand to gain the most during these transitions. (The author is founder and CEO, GenReal Property Advisers Pvt Ltd)
Proper and a well thought out succession plan is a must to ensure healthy growth of the company, say Sunil Tyagi and Jayshree Navin Chandra
n a dynamic economic climate, sudden and unexpected change in the ownership and management of a business is a cause for concern for both internal and external stakeholders. To inspire confidence in an entity’s long-term prospects and protect continuity and performance of the business, entities engaged in real estate business and development must adopt a strategic approach to succession planning. In fact, one of the most crucial governance responsibilities of a Board is to implement best practices in the area of succession planning. As there is no universal or uniform approach to business succession planning, numerous factors must be considered including practical and commercial aspects of the business concerned and circumstances that are unique to an entity. An effective succession strategy balances and harmonizes the interests of all stakeholders. Unfortunately, such efforts are often ignored or improperly executed. The main issues can be broadly categorized under three heads – ownership and passing on of business to second/third generation; takeover of management responsibilities; and Tax planning.
The family matters
As far as succession planning is involved, family-owned businesses in the real estate sector face unique challenges.
The important question that needs to be addressed in succession planning is the role of family members – what shall be the nature and extent of each member’s ownership as well as width of responsibilities, and whether these individuals possess the requisite skills and acumen to run the business competently. Families, who consider themselves unequipped/under-equipped to handle the day-to-day running of the business, may opt for external management for executive roles. However, key portfolios as well as managerial positions are generally retained within the family. It is desirable to involve family members from the very outset, to disentangle family feuds from succession planning and to recognize that ownership and management do not have to be necessarily combined. For instance, it may be viable in some cases that ownership of an entity be transferred equally to some family members, even though only one/few are given managerial responsibilities. As family members may have different long-term business aspirations for the entity, drawing up the succession plan in writing and involving them in open dialogue can help prevent misunderstanding leading to bitter disputes and breakdown of the family business. The aim is to ensure the continuity of family’s welfare as well as wealth and business legacies.
The first step is determination of the most efficient mode of transfer of family stakes (whether wholly or in part) to the next generation. Succession of family-owned assets and interests in a business can be effected through various modes depending on the goals to be achieved and the challenges thrown due to sensitive family dynamics. If desirous of completing the transfer during one’s lifetime, outright sale, making a gift and setting up a trust are some popular modes employed. On the other hand is the more traditional mode of bequeathing one’s assets under a Will, where the transfer takes effect upon the testator’s demise. The Will should clearly set out the specific bequest to each beneficiary and appointment of a competent executor. In the absence of a Will, succession of one’s assets is governed by the rules of intestate succession under personal law – these rules may/may not be favorable from the point of view of competency and leadership ability of the beneficiaries.
Family trusts being used
Family trusts are increasingly being used as a more secure vehicle to protect wealth, especially since one can be both Settlor and one of the beneficiaries at the same time. This mode also does away with the apprehension of long-drawn legal disputes on alleged authenticity/validity of Will. Creating a trust fund can act as a buffer against unforeseen contingencies and business failures. A trust can be revocable or irrevocable. Revocable trusts are ideal where the settlor is desirous of retaining control over the income and/or assets of the trust. Such a trust can be dissolved once it has achieved its stated purpose and are a popular mode employed for separating one’s personal wealth from the business. On the other hand, if the objective is to permanently transfer one’s assets in favour of legal heirs, an irrevocable trust is preferable. Other issues to keep in mind include objects of the trust, appointment, remuneration and removal of trustees, powers of trustees, trust property, etc. Keeping in view the complexities of the business of real estate and the family hierarchy as well as the goals proposed to be achieved by
the family unit, an effective succession structure is required in place and necessary documentation to effect smooth transfer must be drawn up by legal experts. For example, conflict situations among family members and management can be prevented by executing a welldrafted Shareholders’ Agreement.
Choosing the best option is also intricately linked to undertaking the valuation of a business – whether it is a purely family-owned business or only part of it is family-owned and the remainder is held by public or other outside entities. A comprehensive business valuation shall take into account numerous factors including financial history, current and projected performance, debt liability and investments, existing and projected industry and market conditions. Though there are numerous models and methods in place for valuing a business, it remains a subjective exercise, depending largely on judgment and projections.
Succession plans are equally about efficient transfer of managerial responsibilities to the next generation.
The earlier the prospective successors are identified, the longer their training period
The first step should be to identify the challenges that the real estate business is facing and is likely to confront in the near future. Potential successors can be then identified whose competencies and skill sets are closely aligned to the entity’s long-term strategic goals. These individuals must have a sound understanding and appreciation of all business verticals – finance, legal, HR, operations and management. The search for prospective successors can be conducted either internally (within the promoters’ family) or within trusted and long-serving employees/directors. Prior to the handover, the potential successors should be given the opportunity to work alongside and under mentorship of the present leadership. They must be exposed to the working and challenges. The earlier the prospective successors are identified, the longer their training period which facilitates steady handover of the leadership.
Consider tax implications
Tax implications must also be taken into account when framing a business succession strategy. The choice of a mode of transfer of family stakes is also affected by direct tax implications. Longterm and short-term capital gains tax implications as well as tax exemptions/ reliefs that are available are some factors that must be considered. For instance, capital gains tax is leviable on transfer of assets by sale, but is not leviable when
such transfer is by inheritance/upon death of the benefactor. Further, there are differential tax implications on what is being transferred – whether it is a transfer of shareholding or a transfer of business assets. Though the concept of estate duty/inheritance tax does not exist in India, beneficiaries in certain countries may be liable to pay the same on their inheritance. The stamp duty is payable on setting up of trusts and by transfer of assets by gift or sale. In India, stamp duty rates applicable may also differ from state to state. Keeping such factors in mind, tax-efficient succession structures can significantly reduce tax liability, and the entity can invest its tax savings back into the business or other avenues. It is never too early to start planning. Given the crowded real estate market, the creation of trust and security amongst customers definitely gives a competitive advantage. Moreover, second generations have often infused fresh ideas and innovative approaches into the business. Timely succession planning of a business can help mitigate family/ stakeholder discord and public acrimony. It promotes frictionless operation of business affairs during the transition period, makes entities less vulnerable to takeovers and prevents damage to value and brand image. By projecting security, a real estate business can also maintain its relationships with suppliers, protect the morale of employees and garner stakeholder support.
Sunil Tyagi is a Senior Partner and Jayshree Navin Chandra is a Managing Associate at ZEUS Law Associates (‘‘ZEUS’’). ZEUS is a full-service corporate commercial law firm and the Preferred Legal Partner for CREDAI. One of its areas of specialization is transactional and litigation work in real estate and infrastructure. The authors can be contacted on firstname.lastname@example.org.
We strived for quality, trust followed. Kajaria has been a Superbrand six times in a row and is the Most Certified Tile Company in the World. Our intent and objective was very clear at the outset. We didn�t want to compromise. We wanted to give our consumer the very best. And that we did. Today, we are proud of having attained an enviable position in the industry. Largest tile manufacturer in India with an installed capacity of 41 million sq.mtr. per annum Manufacturing spread across six plants - Sikandrabad (UP), Gailpur (Rajasthan), Vijayawada (AP) and three in Gujarat Network of 6000 dealers and sub-dealers across the country Products adhere to Green Building Norms Alliance with Vitra of Turkey for Sanitaryware & Faucets Won Reader�s �igest Most Trusted Brand award three times in a row
* Including Subsidiaries
The presence of developers on various internet tools is picking up speed words Syed Amir Ali Hashmi
eople have taken to social media in a big way to express their sentiments about everything, right from news to trends to brands. They are venting their opinions like never before. They are complimenting brands, complaining about them and even airing their opinions about failed brands/ products. These opinions are influencing
their friends, family, colleagues and other people on their social networks. Social media have thus become great sounding boards for usersâ€™ brand sentiments. Real estate developers are not behind and have started utilising social media tools to the hilt. Though the trend has just started to pick up, it is expected the charm of social media will bite the developers across the country. People
rld Credai Times
are increasingly getting dependent on websites for all their needs. It becomes important hence to have a website of your services/ company. However, just having a website is not enough as the target should be to reach the target audience. â€œWithout being present on Search Engines (SEs) is like having an invisible shop. In order to reach the target audience and meet their queries, SE is the perfect platform. Without SEs, you will be handing out your customers to your competitors who have better presence on SEs,â€? says Vaibhav Srivastava, SEM account manager, Unicomm Network. It is not possible for many companies to recruit a separate SE team. To begin with, the time spent could be humongous as SE process includes understanding
of SE techniques and best practices, a firm grasp on web analytics and great copywriting/content creation skills. SE consultants discuss companyâ€™s goals and set targets on website rankings, traffic volumes, traffic quality parameters and timelines for achievement of the same. Many developers are keeping a tab on social media as these places have become an ideal platform for the irate customers to vent their ire. Many customers have got their pleas heard once they post their grievance on social media. Social media has become potential minefields of information. Smart developers are increasingly turning to social media such as social networking sites, blogs and discussion forums to gauge market sentiment towards the
Many developers are making their presence felt on online media through blogs and forums
project and potential location of an upcoming project. “Conventional marketing is generally addressed to masses rather than individuals, often to those who marketers believe will result in the greatest immediate returns. Social Media Optimisation, when executed smartly, engages one-on-one with all fans, users and followers,” says Srivastava. Social media managers are being hired to make sure that developers’ point of view also gets noticed and reach the potential buyers as well as the affected people. “It is not possible to physically address each and every grievance that comes by. It really helps as to hear the grievance we have to log in to various social sites and then according address the issue to the satisfaction of the customer,” says real estate professional Suresh Goswami. As opposed to conventional media which are typically used for monologues where customers are informed about the product and are meant to sale, social media allows to build a relationship through a two-way dialogue. “Once these relationships have been established well through social media, developers can easily leverage it to swing opinion in favour of their brands whether through good reviews or word of mouth,” says Srivastava. According to a study, social media optimisation contributes to 3.2 per cent of total online spends in USA in 2010, it is slated to overtake the contribution of e-mail marketing (currently 4.6 per cent) and contribute 5.7 per cent of online marketing spends in 2014. Twenty five per cent of Fortune Global 100 companies worldwide are using all four major social media platforms: Facebook, Twitter, YouTube and blogs. And 84 per cent are on, at least, one platform. As the idea is new to the Indian market, developers are still in the process of understanding the nitty-gritties. It has been noticed that the focus is more on having Facebook or Twitter accounts only.
Online reputation management has not been explored as yet. Brand reputation for a company is of utmost importance and any threat – virtual or real world – is devastating. The reputation on Internet is viral even if the concerns expressed are based on misinformation. Blogs/ discussion forums Many developers are making their presence felt at various blogs and discussion forums. However, most of the representations are being done by the brokers attached to the developers. There are very few examples where direct involvement of the developer is seen. These forums and blogs on the virtual world are becoming the real game changer in regards to the reputation of the developer and its projects. “These are places where potential buyers discuss projects. These places get maximum views from various Internet users – present and potential buyers. Thus it becomes important to be present on these forums/ blogs to make sure right representation is done. In fact, a lot of lead generation happens on these forums,” says Pradeep Agarwal, managing director, Brain Guru. Videos on Internet Another effective tool being used by the developers is the posting of project video on Internet. This helps in real representation and thus potential buyers can easily understand the product that a developer is talking about. A lot of sample flats are being shot and posted as it helps potential buyers to look at the video and take an instant decision. The strategy The strategy of using social media is to amplify positive views. It is important to identify those who are talking positively about a brand and then to amplify that to create a feel good about ithe brand. The efforts are being made to make sure that maximum number of grievances can be addressed without customer getting to make rounds of developers’ office and thus safe their time and energy.
Green is the future More and more developers are turning towards green buildings as it saves a lot of resources and are environment-friendly words Sunil Mantri
ndia is emerging both as an economic powerhouse and a global environmental leader. As India’s economy charges ahead, the country needs to produce more energy to provide a better life for its people. Buildings already account for more than 30 per cent of India’s electricity use, and two-thirds of the buildings that will exist in India by 2030 are yet to be built. Buildings are being constructed as green buildings for which certification is done by the IGBC (Indian Green Building Council). As part of its construction practices, green initiatives are incorporated in all construction activities. Some of these are: • Recycling of waste water • Rainwater harvesting • Use of high performance reflective glass in buildings • Pollution control measures during construction activity at project sites • Use of green materials in construction • Heat insulated roof treatment The three key factors that go into sustainable construction are design, materials and technologies. In order to get the benefit of those savings, a developer
The Green revolution
The country has 1.2 billion sq ft of green buildings being built or ready, and precertified by Leadership in Energy and Environmental Design (LEED), of which IGBC is the representative in the country. India’s total built-up space is 25 billion sq ft and is expected to increase to 80 billion sq ft by 2030.
Suzlon Energy Limited - Pune Suzlon’s global headquarter in Pune - “One Earth” - has been LEED ‘Platinum’ rated and certified as an eco-friendly building by the Green Building Council. Built to perfection on an area of 41,000 sq m (10.13 acres), One Earth can be counted as among the largest green building projects in India. Olympia Technology Park Chennai Built on an area of 1.8 million sq ft, this futuristic masterpiece features three mighty towers on 8.4 acre greenery. Olympia is green and eco-friendly in every sense of the word. ITC Green Centre - Gurgaon It was the first ‘Platinum’ rated building in India and has endeavored to adopt green practices that go beyond recycled waste and day-lit offices.
La Cuisine Solaire - Auroville One of the most innovative green buildings in the country is the solar kitchen at Auroville. On a clear day, this green structure can generate enough steam at a temperature of 150°C that can be used to cook meals for 1,000 people, three times a day.
Rajiv Gandhi International Airport - Hyderabad India’s first Greenfield airport is among the top10 green buildings and the first airport in Asia to be awarded the LEED ‘Silver’ rating certification by US Green Building Council.
Nokia - Gurgaon First time that a commercial interior fit-out project in India is being awarded the Green Building Award and prestigious LEED ‘Gold’ rating.
Akshaya Pvt Ltd, India’s most awarded real estate developer, recently announced the launch of its 150th project, Abov, on the occasion of their 18th anniversary. Located over 1.66 acres, Abov can claim to several firsts to its credit – the tallest residential building in Tamil Nadu (132 m), IGBC pre-certified platinum building, CRISIL five-star rating, the first building to house one house per floor and the only building to have 31 homes with 32 swimming pools. has to replace conventional methods with green alternatives on all the three fronts. Coming to materials, if conventional bricks are replaced with pre-fabricated blocks, one saves between 40-60 per cent of construction time. These blocks are made of fly ash and cement which are lighter in weight and stronger than bricks. They are non-toxic and eco-friendly. This saves costs and gives a better building. Installing a sewage treatment plant and deploying the same water for household use translates into huge savings in water consumption. Like rainwater harvesting, thousands of litres of recycled water obtained daily from sewage treatment plants can be used for flushing, washing cars, gardening and other non-potable uses. This translates into huge savings in municipal water bills More and more developers are now turning green as the savings on construction time and material costs translate into savings on capital costs. According to an estimate by IGBC, the incremental cost of incorporating technologies in a platinum-rated building is only between two-five per cent construction cost which is recovered within three-four years. This is still lower for gold and silver certified buildings.
The author is an executive committee member of CREDAI
This world class tower will set record for being the only residential tower in Tamil Nadu housing one house per floor with 6,700 sq ft single plate homes and a deck of 360 degree view. Abov will be the 28th tallest tower in India. (*Source: Our Building & Construction Magazine) Abov is located at Kazhipatturon Old Mahabalipuram Road which is fast emerging as the new urban face of Channai. The residential tower will also have an exclusive spa, a club house on the 34th floor, an ocean bar with floating sculptures and for the first time an exclusive fine dining restaurant for the residents.
Avoiding cracks Cracks not only look ugly but also puts question on quality of construction words Sunil Mantri WAYS TO AVOID FORMATION OF SHRINKAGE CRACKS ON TOP OF CONCRETE SURFACE. • During concrete pour - Dragging of concrete by using vibrator needle shall not be done . • After completion of vibration of freshly laid slab concrete, it shall be leveled and finished. • 20-30minutes later water will come up, at that time do the finishing activity for the second time. • After that also, few minutes later, water will come up, once again do that delay finish. • Till stoppage of water do this delayed finish with a time gap of 20-30 minutes. • After completion of the delayed finish, broom finish to be done in such a way that depth of impression is equal to 3mm and the gap between the lines not exceeding 2mm (for better result use heavy duty wire brush). • Immediately after completion of broom finish for that particular panel, • Spread the wet hessian cloth and keep sprinkling of water at regular interval. • After completion of 6 hours for that panel, make pond / Vats / ‘watta’ arrangement for curing. • The portion outside the Vats which are not covered by ponds shall be spread with hessian cloth and they shall be kept continuously wet. • Such care shall be taken for each and every panel of the slab.
The author is an Executive Committee Member of CREDAI
Accolades for Lalit Kumar Jain
or his outstanding contribution to the real estate sector in India, President, CREDAI National, and Chairman, Kumar Urban Development, Lalit Kumar Jain was felicitated during the CWI Awards 2012 ceremony. Over the years, Jain has emerged as a fighting crusader of credibility with special focus on transparency and a mission to clean the industry that has forever been combating the stigma of corruption and black money. As the President, CREDAI National, Jain has galvanised the industry completely with special emphasis on issues like single-window clearance, land acquisition, project funding, workforce development, affordable housing and more. “In the near future, 85 per cent of GDP will come from urban areas. We – infrastructure and real estate sector – will be the major stakeholders in this. I compliment Construction Week magazine because being here was a great learning experience, knowing about personalities and companies that are contributing to the sector. This definitely encourages people to set further goals and raise the bar,” shared Jain.
The importance of five Ds To
Lalit Kumar Jain President, CREDAI National Jodi tor daak sune kau na aashe tobe akla cholo re (if no one responds to your call then go your own way alone and if no one stands by you, walk alone) These famous lines penned by Guru Rabindranath Tagore fit in perfectly for you as a new year dawns at our doorstep. Knowing and working with you has been a great learning experience though at times, it becomes difficult to keep pace with you. An indefatigable soul like you takes rest while working and sleeps while awake. I have found five Ds play a pivotal role in your life. These are Desire, Discipline, Dedication, Determination and Direction. In fact, I find your power of concentration yet another instrument with which you do things at your will. There are myriad entrepreneurs on this planet but the verve, the mettle and the audacity inherent in you is unparalleled and matchless. It only propels me to think that you have some occult powers that get manifested as an upshot of some intense meditation. I once reluctantly mentioned to you that slowly you need to work on your secrets towards success. There is always a latent tale behind every success that needs to be unveiled so that a few avid individuals may benefit out of it. Your pioneering efforts have resulted in making reach CREDAI its pinnacle of glory. You not only made efforts but chased it with fervour, never letting the fire extinguish inside you. No deterring remarks dampen your moves. You have given a new direction, a new vision, a new life and a new stature to CREDAI. Today, CREDAI dominates the Indian geography with its glorious presence and rich values. I learnt from you that one should never limit his challenges rather should challenge his limits. May the Almighty fill your life with bliss. With regards
General Manager, CREDAI
Market efficiency, transparency and
real estate Experts deliberate on the steps to be taken to bring in transparency in real estate words Prashant Das
ne of the major tenets of market transparency is rooted in market efficiency which implies that new information about products and prices should spread free and fast. However, real estate markets are globally known for their lack of efficiency. The issue primarily stems from the inherent characteristics of real estate assets: No two properties are alike (unlike financial assets such as stocks and bonds), markets are localised, usually oligopolised and transactions are often private. Yet some countries do better than others. For example, when it comes to transparency in real estate, the US and India represent almost two opposite extremes. According to the Global Transparency Index rankings by Jones Lang Lasalle, the US is the most transparent nation in the world and India ranks at nearly 48. In fact, India ranks worse than all the BRICS nations (Brazil is ranked 27, Russia-37, China-32 and South Africa-21). What is the anatomy of the differences? How can Indian real estate sector address it?
What are your initial thoughts on transparency? Dr Ziobrowski: The higher the transparency, the more efficient the market. Efficiency, of course, means that more people have access to information about properties- restrictive covenants, zoning, pricing, etc. Dr Panchapagesan: Assessing financial market transparency is tricky as markets can be transparent in one dimension but completely opaque in another. For example, there could be transparency in prices at which people are willing to trade but little or no information about the actual quantities that they want to trade. Potential investors must know when and at what price actual transactions are taking place, to assess whether it makes sense to enter the market or not. In real estate markets, some people command more information than others. How will higher transparency impact such people? At a macro level, do they have any incentive in pushing for transparency? Dr Ziobrowski: No. My opinion is that information is power and profit. And if I know about things that you don’t, it gives me a tremendous advantage in pricing my assets. That is not to suggest that with such an environment the society as a whole is better off. Because when that kind of power and profit potential stays with a limited number of people, assets and resources do not get distributed in the most efficient fashion. For the country as a whole, transparency is the way to go. Let me put it slightly differently: I put myself in the shoes of an investor who has clear informational advantage. The market would have several other people like me. Given the real estate markets are highly segmented and stratified, would not higher transparency afford me better opportunities to enter other markets as well? Dr Ziobrowski: It would surely help you. But remember, you claim that real estate business is local. So would you really be interested in entering other markets (geographies)? Corruption is real and people who have power will not give it up gracefully. Are we implying that opacity in the market is always related to corruption? Dr Ziobrowski: I guess anything that is against the societal good is corrupt. However, this is my personal view. It (market opacity) should be discouraged and routed out. Dr Panchapagesan, what are the roadblocks to ensurE transparency in Indian real estate? Dr Panchapagesan: Transparency does not happen overnight. It requires, first, a belief among key stakeholders including the federal and local governments that transparency benefits all.
The higher the transparency, the more efficient the market The belief must then be backed by real, concerted action on the ground through proper legislations and governance and needs to be ably supported by the judicial system in case of violations. Without this, the market will only remain transparent selectively to those who know how to navigate the system. There are many road blocks to ensuring transparency in Indian real estate market such as, certainly, the vested interests who may not want to give up their competitive advantage of being able to navigate through the opaque system. Real estate brokers, for example, may feel threatened as transparency may make them redundant though the evidence may be to the contrary. Some other roadblocks are: Unclear and incomplete regulations that create scope for variable interpretations and opportunities for corruption, inefficient processes that make it difficult to ensure consistency and reliability of information. Compared to the US, how would you assess the market transparency in India? Dr Panchapagesan: Indian markets are surprisingly as transparent, if not more, compared to their US counterparts when they function as exchanges. Given their (Indian markets’) late development, they have been able to adopt technology and practices that have worked well elsewhere. Stock markets in the US are also setup similarly though the level of transparency has worsened in recent times because of the growth of ‘dark pools,’ venues that do not display anything at all. Fortunately in India, regulatory restrictions prevent setting up of dark pools and all trading happens only on established stock exchanges. Also, (in India) the demand for IPOs is established by a ‘book building’ process where investors indicate the quantity and price that they are willing to subscribe to the newly issued stock. In the US, this information is not available to the public and is known only to the investment bankers. On derivative markets, in fact, one may even argue that transparency in the US is weaker (compared to India) as it is difficult to size the total derivative market activity because of significant over-the-counter (OTC) trading volumes. Fortunately, OTC markets are less developed in India, making it easier for both investors and regulators to gauge the pulse of the market by following only what goes in the exchanges. Is it the same in the real estate market? Dr Panchapagesan: The Indian real estate market is notoriously opaque in the sense that even basic information such as transactional prices is not easily available. Recording of
Alan Ziobrowski, PhD
secondary market transactions are done by local municipalities with little consistency or coordination in the data being collected, and are not always made publicly available. Information on primary market activity such as housing starts and completions are now available for selected urban centres through private vendors whose reliability is less than what the Government can provide. Current property listings are loosely made available through a network of property portals and brokers and not systematised such as the Multiple Listing Service (MLS) in the U.S. Investors are further handicapped by the fact that reported
Dr. Ziobrowski is a Professor of Real Estate at the Robinson College of Business, Atlanta. He has earned several awards for his research including the William F. Sharpe Award in Finance (2004) and Jack T. Walker Award in Political Organization (2005). In addition, his research has often been cited among the best by the American Real Estate Society. His recent research titled â€˜Abnormal Returns from the Common Stock Investments of the United States Senateâ€™ calls for a higher degree of transparency in financial transactions by people in power. Professor Ziobrowski published over 40 academic papers in finance and real estate journals such as the Journal of Financial and Quantitative Analysis (JFQA) and Real Estate Economics (REE). He also served on the editorial board of several real estate journals. Before his career in the academe, he served as an area manager (Far East) for an international engineering firm and worked in engineering roles with U.S. firms.
transaction prices are almost always lower than actual prices because of widespread underreporting to lower duties payable to the government. In contrast, the US real estate market is at the nirvana of transparency. Buyers and sellers can get any information that they want, both at the micro level as well as at the macro level. Information such as property details, historical transactional prices and current listing prices are easily available in a very reliable way.
Indian real estate market is notoriously opaque what is the most critical factor in ensuring a healthy real estate market? Dr Ziobrowski: Certainly, transparency is a good start. The other thing you’ve got to have is the law. Property laws have to be enforced; and that is really critical. There must be laws that protect people’s interest. If there is no firm set of rules and if there is no proper enforcement mechanism, it is difficult to get people to invest in real estate. What role will your data initiatives at the IIMB Century Real Estate CentRE play? Dr Panchapagesan: The initial effort of the IIMB-Century Real Estate Research Initiative will be to collect and organise data, from both public and proprietary sources that are necessary for research on real estate. Our data efforts will help transparency in this industry in the following ways: (a) we will house all real estate related data in one place, (b) we will augment existing data with other data such as survey data that we believe will improve our understanding of the market, (c) we will provide access to our data and research to others interested in working on real estate issues and (d) we plan to organise workshops and conferences to bring together stakeholders and researchers and facilitate free sharing of ideas and research collaboration. clearly, lawmaking is one of the solutions to improving the transparency in the markets. What is the story behind your research that contributed towards the introduction of the ‘Stock Act’ in the US Congress? Dr Ziobrowski: We conducted the study almost 20 years ago. We knew from the law that there were no restrictions on the members of the congress (the US Parliament) about their investments. They were not required to recuse themselves from any investments. They knew about opportunities more than
Venky Panchapagesan, PhD Dr. Panchapagesan is an Associate Professor at the Indian Institute of Management (IIM), Bangalore where he spear heads the newly setup Century Real Estate Center. This is the first of its kind at an IIM campus. Earlier, he was a business faculty member at the Washington University, St. Louis. Beyond his specialization in Indian real estate, Professor Panchapagesan is an expert in asset management, derivatives, hedge funds and market microstrcuture. His research has appeared in top-ranked finance journals such as the Review of Financial Studies (RFS) and the Journal of Banking and Finance (JBF). He is often quoted in publications such as the Wall Street Journal, the Economic Times and the Business Standards.
anyone else did. On that premise, we ran a test of their stock performance to see how well they did against other investors. We found that they outdid the market by a significant margin. They did even better than sophisticated investors. Did you face any resistance during or after the research activity? Dr Ziobrowski: We suffered some resistance in getting the data. Lawmakers are supposed to make their financial disclosure documents publicly available. But practically it was extremely challenging to collect the data and convert them into analysisfriendly formats. While the US housing markets recently witnessed the ills of over-supply, housing is severely under-served by the supply side in India. Sometimes, it leads to price-rigging. Beyond centraliSed databases, what could be potential solutions to the issue? Dr Ziobrowski: The best cure for everything is transparency. The more people are informed, the better off they are. Let’s shift attention to real estate education. Dr Ziobrowski, do specialiSed educational programMEs in real estate play a role in improving the real estate market dynamics? Dr Ziobrowski: I think that more education makes everyone better off in the real estate business in particular. As a real estate professional, you must have a good understanding of the investment decision rules, analytical techniques, market economics and law. From marketing analysis to portfolio management, there are skills that are very specialised. Given the lack of specialiSed real estate academic knowledge in real estate, most academic programMEs are limited to being ‘management education to real estate professional’ rather than ‘real estate education to managers’. What is the way to go? Dr Ziobrowski: To some extents, we faced the same problems in the US. It only changed in last 15-20 years. Consider the
Property laws have to be enforced. There must be laws that protect people’s interest
corporations who own real estate. However, most American firms have come to realise that managing the real estate you own is a specialisation in itself. In fact, real estate must not be treated as just another financial asset class. For example, frequently it makes a lot more sense to lease a property than to buy it. However, the conventional wisdom may suggest the opposite. The distinctions between ‘leasing with an option to buy’ and ‘sale-andlease-back’ tend to be subtle but financially critical. Clearly, we need people with expertise in the area of real estate. Dr Panchapagesan, how do you plan to address the need for specialiSed real estate education in India? Dr Panchapagesan: While right now, we do not have specialised real estate education in the country besides a few programmes here and there. While it is tempting to jump into real estate education in India using what we know from other countries, I strongly believe that it would not be the right approach. Real estate dynamics is highly localised and what works well in one region may not necessarily work in another, let alone in another country. The right approach is to develop education programmes that combine global knowledge with local knowledge. Well established practices and methods need to be taught along with local market information and issues to make learning for local participants more effective. Understanding local markets can only be done through good research, which is what we are planning. In a year or so, we think we will be in a position to offer unique real estate courses, both in our regular longer term programmes as well as in the shorter term executive programmes. Our offerings will be taught by researchers who have worked on Indian problems and gained insights through their work.
The interviewer is a doctoral scholar of real estate at J Mack Robinson College of Business in Atlanta (Georgia State University, USA), where he teaches master’s and bachelor’s level courses in real estate. He is a founding partner at Realism Real Estate Consultancy Pvt. Ltd. (realism.IN ). realism.IN is an India focused real estate research and education firm. Please explore more at http://www.realism.in .
from the various chapters of CREDAI Madhya Pradesh
Global Investor Summit
Activities at CREDAI Chennai In July, CREDAI Chennai organised a training session for its members and their staff which was conducted by the Chennai Metropolitan Developmental Authority (CMDA) as a special case for CREDAI to educate them on the new Automated Planning Permission Application Scrutiny (APPAS). It also had an interactive session with the Member Secretary and all planners to sort out niggling issues. They have, in fact, handed over all their internal circulars and office orders since the 2nd Master Plan to assist members in application process.
September 27 Sub-committee for CSR activities participated in regional level workshop on Internal Migration Issues at RG National Institute for Youth Development organised by its Training Organisation and Execution wings. October 15 They supported the Indo-American Chamber of Commerce for the US Trade Delegation and Mission of Architects from the American Institute of Architects (AIA) and hosted them and the US Consulate General and Consulate Serivice Commercial Division for lunch and the Interactive sessions. Mickey Jacob, President Elect of AIA, introduced his delegation. It was followed by JLLM speaking on real
estate opportunities in the state. October 25 Sponsored Clock Towers for 40 corporation parks in Chennai and announced by mayor to Chief Minister. October 29 Seminar with FICCI on INFRAVISION for Infrastructure Development and Growth. T Chitty Babu, one of the panelists, spoke on housing with respect to Urban and Social Infrastructure. November 1 On a proposal for implementing the IIIBFT project in 100 schools looks favourable. Loyola Institute of Business Administration is keen that CREDAI Chennai help in planting Fruit bearing trees in 100 schools. November 6 Press meet to inform all on permitting multi-level car parking in the same block after CREDAIâ€™s numerous representations. November 15 An initiative of Governmentâ€™s scheme of skill development, a module for employable skills to achieve a target of 1.30 lakh candidates being trained and thus employable is being undertaken by CREDAI.
Madhya Pradesh government, under the stewardship of Chief Minister Shivraj Singh Chauhan, organised a Global Investor Summit 2012 at Indore between October 28 and 30. The summit was a huge success with MoUs worth around `2 lakh crore signed by many leading national and international companies in diverse areas like power, manufacturing, mining and infrastructure. Notable industrialists who attended the conclave were Adi Godrej, Anil Ambani, Baba Kalyani, Subroto Roy Sahara and Subhash Chandra Goel. This time the Ministry of Urban Development decided to emphasise on this sector. Few weeks before the Summit, representatives from the Ministry travelled to Mumbai and Delhi and did road shows. At state level, they engaged a dialogue with State CREDAI particularly CREDAI Bhopal and CREDAI Indore to coordinate with their fellow members and help them achieve a sizeable quantum of MoU of their future projects. The developers were initially apprehensive of signing such MoUs but after a series of meeting were convinced by the seriousness of the government and `9,000 crore worth of MoUs were signed. Vijay Mirchandani, executive committee member, CREDAI National and chairman, CREDAI Indore put forth the problems faced by local developers and insisted a time bound one window clearance system be brought in place.
Property show in Raigarh CREDAI Chhattisgarh, in collaboration with CREDAI Raigarh, organised a property show on October 27 and 28, 2012 at Hotel Ans Raigarh. All leading CREDAI members and developers from CREDAI Raipur like Avinash Builders Pvt Ltd, M/s GT Homes, Aarti Buildcon Pvt Limited, RCP Infratech Pvt Limited, Aishwarya Residency, M/s Sun and Sun Infratech Pvt Ltd, M/s Parthivi Construction Pvt Ltd, M/s VGR Real Estate, M/s Sunita Developers and many other members took part. The property show was inaugurated by Rakesh Agrawal, president, CREDAI Raigarh and attended by a large gathering from CREDAI Raigarh, Raipur and customers from all sections of society. The property show was a grand success and was attended by around 500 prospective buyers. It was also decided by CREDAI
CREDAI Chhattisgarh thanks Lalit Jain Chhattisgarh that such shows and property exhibitions will be organised in different towns of Chhattisgarh to facilitate the buyers to come and choose their dream houses under one roof from a variety of exhibitors.
Global investor meet in Naya Raipur On November 2 and 3, 2012, a two-day long global investor meet was organised in the backdrop of a week-long Rajyostav 2012 which was celebrated in the state between November 1 and November 7 at Naya Raipur. Global investor meet was inaugurated by Chief Minister Dr Raman Singh in the presence of Ambassadors and consulate generals from 18 countries apart from chairman and managing directors of PSUs, executive council member CREDAI National and Sanjeev Srivastva, editor-in-chief, CREDAI Times, were present. A large number of CREDAI members also participated in the meet including President Anand Singhania along with GS Rajpal and Rakesh
Pandey. CREDAI member developers entered into an agreement with the state government for developing the infrastructure in Naya Raipur as well entire state worth `20,000 crore.
The Global Investor Meet 2012 organised by Chhattisgarh government on the eve of the 12th anniversary of formation of the state would be a remarkable and unforgettable event for CREDAI Chhattisgarh whereby their venerable demands with respect to colony development, FAR, joint venture etc were raised by CREDAI India President Lalit Kumar Jain during the Statecon held at Naya Raipur. It would be pertinent to recall that during the Statecon, CREDAI India president observed the status of real estate sector of the state appears at par with the primitive age and has further urged the chief minister Dr Ramam Singh to ease colony development and other building permission rules so that the growth of real estate sector would get such a pace so as to occupy a remarkable and outstanding position in the pan-India as in the field of electricity generation. CREDAI members from all over India has attended the meet including Sanjeev Srivastva, editor-in-chief, CREDAI Times and Rohit Raj Modi, Executive Council Member, CREDAI National. They also met the members of CREDAI Chhattisgarh.
Annual General Meeting of CREDAI Nagpur The new team of office bearers for the term 2012-14 was unanimously elected at the AGM of CREDAI Nagpur. While Prashant Sarode was elected as the president, Anil Nair became the secretary and Gaurav Agarwala the treasurer. The AGM was attended by a large number of members and was conducted in hi-tech manner with the agenda being displayed on the screen. In its first meeting, the general body decided to donate trees worth `1 lakh to the Nagpur Municipal Council. This was done in response to an appeal made to the association by the mayor Anil Sole to help make the city green. To avoid any further maintenance, the association donated trees of more than six feet in height to Nagpur Municipal Council. Shyam Wardhane was felicitated by the Association for assuming the office of Commissioner of NMC. The association also gave a representation to the Nagpur Improvement Trust (NIT) for unwarranted threefold hike in the rates
for approving the premium areas in the building plan. It also made similar representation to NIT trustees and elected representatives. The collective efforts of the association paid good dividends and ultimately NIT has to roll back the hike. The association tries its level best to invite the elite of the city who could make an impact in the development of the city. Nitin Raut, Minister for EGS, government of Maharashtra and Devendra Fadanvis, an opposition MLA from South-West Nagpur are the notable examples.
Property Expo organised One of the most notable programmes held by the Association was the Property Expo in collaboration with Lokmat Group. It was a great success as the expo witnessed a footfall of around 15,000 people. The notable feature was allowing “only approved schemes” for the same. The expo was inaugurated by Nitin Raut, Minister for EGS, Government of Maharashtra while MLA Devendra Fadanvis from South-West Nagpur distributed the prizes for the “Best Stalls”. Secretary Anil Nair, one of the VPs Mahesh Sadhwani, one of the joint secretaries Milind Bhombe along with a few members rendered a two hour ‘Sangeet Rajani’ programme.
GBM of CREDAI Maharashtra The most successful event conducted by the association is the General Body Meeting of CREDAI Maharashtra. The meeting was held on October 27, 2012, at Hotel Sun n Sand and attended by 164 members from all over Maharashtra including president Satishji Magar. All the delegates appreciated the hospitality extended by CREDAI Nagpur Metro for the same.
Governing Council Board meeting of CREDAI The Governing Council Meeting of CREDAI was hosted by CREDAI Kerala at the backwaters in Indriya Beach Resort in Cherai, Kochi, on December 1, 2012. The meeting witnessed a healthy attendance where important discussions pertaining to the industry-related developments that have taken place over the last couple of months were held. Matters relating to the issues and concerns regarding the real estate sector were discussed. Discussions also involved CREDAI’s planning on CREDAI Institute for Real Estate Research and Professional Studies. Members also shared their experiences of how CREDAI’s initiatives on various
fronts have been beneficial for the sector and what the organisation’s further course of action be. Dinner was organised at the pool side along with an entertainment programme. Vijay Mirchandani, Getamber Anand, Lalit Kumar Jain, Jitendra Thakker, Abdul Azeez, Ranjit Naiknavare and other members of CREDAI Kerala presented solo songs. Elizaba Kurien from CREDAI Kerala Secretariat and Sushil Sionee from CREDAI National Secretariat also entertained all with their solo songs. All members were presented gifts as a token of remembrance by the members of CREDAI Kerala.
Workshop on service tax A workshop on service tax was conducted by tax consultant PK Saha, managing partner of PK Saha & Associates on May 3, 2012. The workshop saw a fantastic participation from CREDAI Bengal members and senior accounts personnel. Saha’s presentation focussed on service tax implications in the real estate sector under the changed service tax rules. The presentation was followed by a Q&A session where members of the audience asked several relevant questions to the consultant and got immediate replies. The members heartily appreciated the idea of hosting a service tax workshop.
Friendly Cricket Match between CREDAI Bengal and KMC XI The annual cricket match between KMC and CREDAI Bengal was played between two teams – Commissioner’s XI and CREDAI Bengal XI - at the Gitanjali Stadium on March 25, 2012. The captain of KMC was the KMC commissioner Arnab Roy while Aditya Bajoria was nominated the captain for CREDAI Bengal. The match was conducted by umpires of Cricket Association of Bengal. KMC won the toss and chose to bat first, scoring
196 in 20 overs. Team CREDAI Bengal XI also put up a spirited performance with youngsters like Harsh Saraf, Harsh Biyani, Abhishek Saraf, Kirti Patodia, Kumar Patodia, Rohit and Rishab Singhania performing well but managed only 151 runs only to lose the match. But the sportsmanship spirit shown by both the teams was well appreciated. Commissioner’s XI took home the winners’ trophy handed over to the winning team by Harsh Vardhan Patodia.
Workshop on new technologies
A workshop on new technologies in real estate was organised on February 3, 2012, jointly by CREDAI Bengal and iLEAD which saw active participation of five eminent persons from various fields who spoke on a range of truly inspiring products that could help the real estate business make more efficient buildings. Some of the ideations came in the form of building 3D site plans to newer door and gate automation and the viability of solar panels.
New chapters of CREDAI
At the Governing Council Meeting of CREDAI on July 18, the application of new chapter of CREDAI in Bihar as CREDAI Patna, Bihar was taken as approved and granted CREDAI membership. CREDAI Patna, Bihar chapter was represented by Narendra Kumar and Sachin Chandra. Kumar is also the president of CREDAI Patna, Bihar. agra
Workshop on Tax Implications for Real Estate
Experts from Ernst & Young addressed CREDAI Bengal members on April 12, 2012, in keeping with the need to decode the Union Budget of 2012. They addressed CREDAI members on the implications of the budget on direct and indirect taxes. There was a large turnout of CREDAI members and the timing of the event was well-appreciated.
The launch of CREDAI Agra Chapter was done amid a huge gathering on September 8, 2012. Every developer in the city spoke of ethics followed in Agra. Also shared was the fact that the Agra President never advertised his project as it is sold through word-of-mouth publicity. Till date, he has not defaulted, be it maintaining the construction quality, timely delivery, prompt service and customer relationship management. The entire city was covered with CREDAI banners and the event took place in one of the most opulent five star properties of Agra, Jay Pee Palace. CREDAI Nationalâ€™s presence was graced by the attendance of C Shekar Reddy, Getamber Anand, Jaspal Oberoi and Sanjeev Srivastva. SK Garg, President, CREDAI UP REDCO, was the chief guest. Every developer shared his experience with CREDAI and the mileage received by being a CREDAI member. The august gathering of CREDAI Agra Chapter was spellbound to hear the experiences shared by the top developers.
CREDAI NCR hosts Property Expo 2012 CREDAI NCR, the apex body of real estate developers, hosted the much-awaited CREDAI Property Expo 2012 with a press conference held at Pragati Maidan on October 19, 2012. Gracing the occasion, Arun Kumar Mishra, Secretary, Ministry of Housing and Urban Poverty Alleviation, Government of India, inaugurated the Expo and congratulated CREDAI NCR for bridging the gap between accredited developers and stakeholders. Getamber Anand (officiating president, CREDAI NCR), Pankaj Bajaj (president, CREDAI NCR), Dr Anil Kumar Sharma (vice president, CREDAI NCR), Rohit Raj Modi (secretary, CREDAI NCR), Bharat Halwasiya (treasurer, CREDAI NCR), Manoj Gaur (GC member, CREDAI NCR), Sanjeev Srivastva (GC member, CREDAI NCR) and other dignitaries from real estate sector were present on the occasion. Held for the first time, the Property Expo served as an ideal platform for buyers to meet and interact with reputed builders. With the distinction of being the most premium and exclusive property fair, the three-day extravaganza showcased a wide spectrum of residential and commercial projects of more than 100 developers from across Delhi NCR. Some of the developers exhibiting diverse options ranging from budget to
premium properties were Amrapali, Eldeco, ATS, Ashiana, Wave Infratech, Supertech, Gaursons, Assotech, SARE and Parsvanath and many more from Gurgaon, RNE, Noida, Greater Noida, Greater Noida West, Bhiwadi and adjoining NCR. Encouraging accountability and transparency, the conference addressed the need to resolve consumer grievances and means needed to translate investor protection into a mechanism. In order to fulfill the purpose, CREDAI NCR has established Consumer Redressal Forum which seeks to settle customer disputes and other related matters. In order to make home buying an easy and transparent process, PNB Housing Finance Ltd partnered with the Property Expo, reaching out to aspiring home buyers to fructify their dreams. Carrying forward its commitment to reach out to people with special needs, CREDAI NCR has also undertaken a project involving construction of low cost houses at Savda Ghevra Resettlement Colony near Munduka and Bahadurgarh areas of the Capital. The project involves building 31 low cost and disabledfriendly houses with inbuilt toilets/ washing facilities for 31 identified families. The project is being carried out in association with Habitat for Humanity India as the implementing partner and CREDAI NCR as the primary donor for funding the project.
Training and certification
A career in real estate MCHI-CREDAI and Rustomjee Academy of Global Careers have joined hands to provide certified courses to youth aspiring to make a career in real estate sector. The first batch was presented
with certificates on completion of the course by Paras Gundecha, president MCHI-CREDAI and Boman Irani, Honorary Secretary of MCHI-CREDAI and CMD of Rustomjee Group.
Interactive Seminar on VAT for complaints Advocate Vinayak Patkar addressed a seminar on VAT and service rax issues at MCHI-CREDAI. This included briefing people on the Maharashtra Chamber of Housing Industry (MCHI losing the Writ Petition No. 2022 of 2007 before the Bombay HC which had challenged the constitutional validity of the law introduced by the State Government imposing VAT on sale of flat. The Special Leave Petition has already been filed before the Supreme Court and the application for the Stay of the operation of the judgement of the High Court has also been moved.
Felicitation of Dhruvkumar Lallubhai The managing committee and the entire membership of MCHI-CREDAI’s MMR region, congratulated DL Desai (Shankarbhai) for his achievements in successfully prosecuting the cement cartel in the case filed in the Competition Commission of India. MCHI-CREDAI felicitated Shankarbhai for his achievement at MCHI-CREDAI’s Babubhai Majethia Conference Hall. MCHI-CREDAI has admired and respected Shankarbhai who has selflessly worked with one and all.
MCHI-CREDAI has joined hands with Green Energy Foundation (GEF) to promote green buildings and sustainability through GRIHA, LEED and Eco Housing. GEF is the “promotional partner” of GRIHA across India. GEF’s role is to promote green buildings to builders, developers, architects, consultants and industries through awareness programmes, seminar and workshops on green buildings. Till date, GEF has consulted and completed more than 100 projects across India and UAE. The broader concept of green building was explained by Sharmila Jain Oswal, Sustainability Expert President, GEF. Other speakers included Mili Majumdar, director, GRIHAMNRE, Government of India, who talked about GRIHA Pre-Certification and Certification and Fast Track Environmental Clearance, guiding builders how to have fast track clearance for their projects without much hassles and waiting period; Dinesh Chinappa, BCIL, Bangalore, energy expert, spoke on economics and energy conservation and sustainable buildings and Amit Ambekar, environmental management expert, Global Green Energy and Sustainability Solutions Pvt Ltd, Pune, gave a talk on environmental management and review package for environmental clearance.
AGM of MCHI-CREDAI The 30th AGM of MCHI-CREDAI was a full house with over 300-odd members in attendance, the highest till date in the history of MCHI-CREDAI. Past president Niranjan Hiranandani was felicitated
on the occasion as he takes over as the president for Indian Merchantsâ€™ Chamber (IMC). Each unit made a presentation of their achievements and the goals to be achieved.
US Asia Business Forum CREDAI and the US Asia Business Forum (USABF) invited MCHI-CREDAI members to explore joint ventures, PE and venture funding options and technical collaborations with PIOs, NRIs and US-based companies at their event, US Asia Business Expo 2012, which will be held in Florida, USA. This special preview was held to enable MCHI-CREDAI members understand about how they can explore B2B opportunities and meet potential partners and customers in the USA at the US Asia Business Expo 2012 which will focus on Synergising Strength Amongst Asian Countries with USA and Global Companies.
For a greener tomorrow
Rajkot Builders Association (RBA) organised a cricket tournament in March with a total of nine teams participating in the three-day event which was attended by 50 children from Kathiawad Balashram (orphanage) of Rajkot, invited specially to watch these matches. All the kids were given a cap and offered lunch during the breaks. On this occasion, more than `3 lakh was donated by RBA for Kathiawad Balashram. RBA donated `1.5 lakh to Kanya Kelvani Fund of the Chief Minister, Gujarat. The cheque was handed out by CREDAI Rajkot president Hiteshbhai Bagdai to the stateâ€™s finance minister Vajubhai Vala. In the past, RBA had requested the Railways department to give a piece of land parallel to Mahila College Railway Track for development of trees which was handed over to the organisation. Plantation was done on the said piece of land on which RBA spent `2 lakh for the upkeep of the plants and trees.
Opportunities in Punjab
At a recently conducted convention “Punjab Land of Opportunities” organised by CREDAI in New Delhi, Punjab deputy chief minister Sukhbir Singh Badal called upon the real estate developers from India and abroad to invest in Punjab. Showcasing 10,000 acres of prime commercial land from across the state, he announced several state initiatives in the offing that promised to provide better business opportunities for investors and promote customer satisfaction too. The CREDAI Punjab Meet was held on November 17, and Badal addressed the gathering of approximately 150 developers, mostly from the northern states. Badal said that Punjab defied
global recession by clocking 20 surplus percentage VAT without increasing any tax rate. It was the only state in the country that has prepared master plan of all cities with a focus on planned urban development. He said it would be the first state in the country that would be power surplus by December 2013, three international airports, all cities linked with 4-6 lane road networks and was laying special emphasis on education, health and hospitality. He also added that Punjab has already notified the master plan of 32 cities, 72 local planning areas, 147 towns, and 27 master plans are under preparation. Showcasing opportunities in the GMADA region, Badal said that
City Centre (80 acres), Medicity (200 acres), IT City (1,600 acres), Education City (1,700 acres) were the lifetime opportunities in the vicinity of Chandigarh that would change the profile of northern India. Reiterating the resolve to make GMADA as IT hub of South East Asia, Badal said that top IT companies were vying to set up their units in 1700 acres located near International Airport Mohali. Badal showcased real estate opportunities in Ludhiana including 124 acre land near airport, 1,500 acre integrated township near Ludhiana and the 4,500 acre entertainment hub. He also offered prime real opportunities in Amritsar, Jalandhar and Patiala.
The Jharkhand chapter of CREDAI along with the Builders Association of India (BAI) and GS Marketing Associates organised a Construction and Home Décor Fair 2012 between May 3 and 7, 2012. The five day fair was
inaugurated by chief minister of Orissa, Arjun Munda at Harmu Ground in Ranchi. There were over 140 stalls that had been set up. The exhibition witnessed an appreciable footfall and the participants yielded beneficial takeaways.
News andhra pradesh
CREDAI AP holds STATECON 2012 The first-ever state level two-day brainstorming session on various major Andhra Pradesh state ministries/ departments/ principal secretaries like municipal administration and urban development, housing, stamps and revenue, service tax, green buildings, industries (mines and geology), fire services and labour was organised on December 20-21. The event was attended by the office bearers and other members from 12 CREDAI chapters.
Raja Srinivas, President, CREDAI Vishakapatnam, presenting a bouquet to Neerab Kumar Prasad, Metropolitan Commissioner, HMDA
Neerab Kumar and Purshotham Reddy, director of Town & Country Planning, interacting with the members
Swamy, Secretary, CREDAI, Vizianagaram, felicitating Neerab Kumar
Prem Sagar Reddy, president, CREDAI Warangal and Ramchandhra Reddy EC Member, CREDAI Hyderabad, felicitating Purshotham Reddy, director of town and country planning
Venkat Reddy, president, CREDAI Kurnool, presenting a bouquet to Karikala Vallavan, principal secretary, housing, AP
Karikala Vallavan interacting with the members
Venkat Reddy, president, CREDAI, Kurnool, felicitating Karikala Vallavan
B Srinivas, president, CREDAI Rajamundry, presenting a bouquet to Vinod Kumar Agarwal, principal secretary, stamps and revenue
S Venkatramayya, chairman, CREDAI Kurnool, presenting a bouquet to Shyam Kishore, joint IG, stamps and revenue
Vinod Kumar Agarwal interacting with the members
News Rajshekar Gupta, CREDAI Tirupati, felicitating Vinod Kumar Agarwal
Satish, member, CREDAI Hyderabad felicitating Shyam Kishore
Service tax expert Suresh Kumar interacting with the members
Bhaskaracharyulu, president CREDAI Narasipatnam, felicitating Suresh Kumar
An interactive session on green buildings by Sampath from Indian Green Building Council (IGBC)
D Srinivasulu, principal secretary, industries (mines & geology) interacting with the members
Member CREDAI Hyderabad felicitating D Srinivasulu, principal secretary, industries (mines & geology)
Srinivas, director, Synergy Infra Consultants Pvt Ltd, presenting a bouquet to SV Ramana Murthy, DG, fire services
Dr Anand Rao, member CREDAI AP, felicitating SV Ramana Murthy
JC Sharma, principal secretary, labour, B Ramanjaneyulu, labour commisioner and Ravi Bhushan, secretary, Labour Welfare Board interacting with the members
PC Reddy, president, CREDAI Nandyal, felicitating JC Sharma
Brijesh, CREDAI Kurnool, felicitating B Ramanjaneyulu
Credai supports aanganwadis In July, CREDAI Vadodara adopted and financially supported 10 aanganwadis run by the Government of Gujarat and Vadodara Mahanagar Seva Sadan for underprivileged children for their education, food and upbringing by making donations for the entire financial year 2012-13. CREDAI Vadodara will personally look after and visit their nominees for better functioning of such units. In September, Minister of Revenue Smt Anandiben Patel inaugurated the fully air-conditioned, furnished and renovated office of the sub-registrar at Akota.
CREDAI AP organises property show CREDAI AP organised a property show from November 2 to November 4. The long debated idea of hosting a property show by the developers for public came to fruition under the guidance of the office bearers and the combined efforts of the commitment of various committees set up for the arduous task. The uniqueness of the event lay in the fact that it was the first show to showcase properties from Andhra Pradesh and other metros like Chennai and Bangalore. The massive event grew in confidence through the three days and
finished off with a bang, attracting 70,000 visitors. In all 120 developers participated in the show – 70 from Hyderabad and 50 non-Hyderabad and 150 stalls were erected. The vastness of the event can be gauged from the fact that around 15,000 properties were displayed. The experience was topped off with a thoroughly entertaining sand art shows by Kanthrisa and a food court dishing out lip-smacking food. The icing for the customers were freebies – ACs, TVs, refrigerators, mobile phones – and bumper prize of Maruti Alto.
CREDAI inspired by
rawing inspiration from Bollywood blockbuster and Ajay Devgan-starrer Singham, realtors of the country have united together to launch an all-out war against corruption. Industry body Confederation of Real Estate Developers Associations of India (CREDAI) president, national, Lalit Kumar Jain has urged his 10,000-strong members at their national convention held in Barcelona to stop paying bribes to officials for getting clearances. “We have had enough of this charge that builders breed corruption. One day, all of you will say Ataa Maazhi Satakli (I am losing my temper) when someone asks you for money for doing favours. We take 18 to 36 months from change of land use to commencement of work and these delays contribute up to 40 per cent of the sale price. I have heard stories of developers’
exploitation and how corruption has reached its pinnacle,” he observed. Stating that though the real estate was the second most important sector after agriculture in India, there was no adequate focus on housing. Jain pointed out that even during the slowdown, the total lending to commercial real estate in the US was 25 per cent while in Brazil, it was 22 per cent but in India, it was “woefully low” at 2.8 per cent. The mortgage-to-GDP ratio globally is 15 to 30 per cent while it is nine per cent in India. Complex legislations, a plethora of state-level laws and high transaction costs have translated to growth of this sector. “We require a whopping $32 trillion to meet the challenge of urbanisation,” Jain said. Stating that unity is strength, he called upon fellow developers not to be silent watchers of the corrupt system and exploitation and not to backstab competitors.
urbani in India
Looking at the land crunch in India, it is essential that land usage plans have to be evolved on urgent basis, says G Venkata Prasad
s per the 2001 Census, the urban population of the country was 286.11 million which constituted 27.8 per cent of the total population. As depicted in table 1, the land extent being used by 284 million people living in urban areas as of 2001 was assessed to be in the order of 7.7 million hectare. Table 1 excludes 475 urban agglomerations and 981 outgrowth areas. As per census, the numbers of cities/ towns have touched a figure of 7,935 and the urban population a level of 375 million. Going by the present way of expansion of cities and towns, the land requirement covering this urban space would have gone up to a level of 10.2 million hectare on proportionate basis as of 2011 comparing to 2001 statistics. By 2050, the urban population is expected to touch a figure of 960 million which will be 60 per cent of 1,600 million of the total population. The proportionate land requirement to accommodate this figure will be in the order of 26 million hectare. But does India have such a land expanse? Whether our policy makers are looking
Table 1: Total Area, Average Area and Density in Urban India - 2001 S. No.
No. of cities
Total Area in sq. km.
Average area of cities in sq. km.
into this aspect ? Table 2 illustrates how land usage evolved for different purposes over a period of time in India.
Land under use
The share of all lands occupied by buildings, roads, railways, industries, rivers and canals including lands put to uses other than agricultural purpose has gone up by 15.64 million hectare as of 2005-06 from the level of 9.36 million hectare during 1950-51. Land from barren and uncultivable land must have been retrieved to put the same to the use of non-agricultural purpose. From figures presented in Table 2, it becomes inevitable that with the chances becoming bleak in retrieving the left out barren land, ie deserts, the future land requirement of 26 million hectare to be drawn from the land being used presently for agriculture purpose.
Can India afford this?
Availability of land for massive urbanisation will remain as greatest challenge
With India occupying only 2.4 per cent of the world’s geographical area and supporting 16.2 per cent of the world’s human population, holding 0.5 per cent of the world’s grazing area to support 18 per cent of the world’s cattle population, agriculture providing the principle means of livelihood to 59 per cent of population, availability of land for envisaged massive urbanization will remain as a greatest challenge in the future ahead. In such
Table 2: Land Usage in India scenario, there is every chance: • Exploiting the farmers in grabbing their lands. This may create social unrest and government has started putting restriction on usage of agricultural land for real estate. • For the land rates to skyrocket, making real estate development unaffordable. • All the above factors may bring urbanisation process to chaotic status. It is essential that land usage plans have to be evolved and closely monitored so that the expected urbanization process does not come to halt. CREDAI by remaining on forefront on addressing several issues with respect to real estate industry, I feel by teaming up with experts in the country from various institutions, organisations should form a think tank to find a permanent solution by drawing best examples within the country and at global level. (The author is COO, Tamil Nadu Projects, L&T Urban Infrastructure)
1950-51 Land extent
2005-06 % share
Barren and uncultivable
Misc tree copies
Other than current fallows
Net area sown
Not available for cultivation Non agriculture use
Land used for agricultural purpose Other cultivated land Permanent pastures and other grazing land
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che C R E AT I V I T Y - I N N O VAT I O N - A M B I T I O N The 12th NATCON at Hotel W Barcelona in Spain was an enthralling experience for the developers and a way to learn from the international and national experts CREDAI Times reports
eal estate and construction play an important role in the Indian economy, contributing nearly 17.5 per cent to the nation’s GDP. It is expected to grow at a rate of 30 per cent over the next decade. Given that 496.8 million people will inhabit Indian cities by 2030 and an investment requirement of over $1.2 trillion needed to meet the growing demand for housing and infrastructure in these cities - widespread development will be necessary. The development activity in India
will drive development firms to scale up their operations significantly, whereby traditional approaches will need to be replaced with sophisticated ones, taking inspirations from the developed markets. In order to scale-up development and overcome delivery bottlenecks, developers will need to think ‘outside the box’ and conduct business like never before. The theme of NATCON 2012 which was held on October 1 and 2, 2012 in Barcelona, was ‘Think big; Think different’, and hopes to be a starting point. The forum brought together the
best in world, where all sessions were designed to showcase individual case studies and success stories to provide detailed knowledge sharing and best practices from Europe, Asia, Australia and the rest of the world. Barcelona, Spain provided an idyllic setting for the two-day conference that aimed to enhance and support the vision for real estate growth in India through the perspective of an international audience, highlighting iconic and revolutionary architecture, developments, innovations and business models.
The address by chairman and president were well suited given the current situation and reiteration by both with regard to the growth and development of Indian real estate sector. Pradeep Jain, Chairman, CREDAI, talked about the reasons for enhancing the vision of realty growth in India through innovations and newer technologies. He informed the august gathering about the various initiatives of CREDAI in the past 18 months and the way to go forward. He touched upon the critical issues of unnecessary delay in project approvals and lack of industry status to real estate sector. He hoped that this NATCON would guide the industry to chalk out a growth plan. Lalit Kumar Jain, President, CREDAI, started on a positive note and stressed the need to sensitise the policy makers, government officials and the industry to work for the cause of bridging the gap between the huge demand and low supply of housing units. He reiterated that the realty industry is victim of corruption and not the facilitator. It is high time that the builder community is given its due recognition. He said that CREDAI is constantly pushing for reforms like single window clearances across states, providing conducive environment, increase of FSI and much more. He specifically mentioned about the notification by the ministry to increase FSI to 2 in all states and recent announcements by few states to set up single window clearances. Jain requested the fellow members to be the agents of change and work at individual level to bring about change in perception level in the way developers are viewed. He also emphasised that the builder community is given its due recognition before they march on saying “AATA MAJHI SATAKALI”. The best way to eliminate corruption is to bring reforms in the sector. Willy Muller, CEO of Barcelona Regional, the Guest of Honour expressed his heartiest thanks to CREDAI and its members for hosting NATCON 2012 in Barcelona. He said there is immense scope for collaborations with India and its
companies. According to him, India has a great potential and future and this conference would go long way in establishing relationships. Shibu Baby John, Minister for Labour and Rehabilitation, Kerala, touched upon the issue of lack of skilled manpower. He said for any sector to grow and for the whole Indian economy to grow at desired pace, we need skilled labour. We can import anything but labour. He asked the real estate industry to play active role in upskilling labour force. He praised the Kushal programme of CREDAI and said that it should be replicated all over the country. Talking about the initiatives of the Kerela Government, he informed that an academy is being set up to provide skills and training across the spectrum. The academy would be equivalent to IIMs and IITs in terms of quality and will cater from a mason to an architect. He lamented the fact that Indian industry does take active interest and lead to create skilled manpower. He invited realty developers to come forward and support such initiatives. Joan Sureda i Martínez, Director-General of Industry, Government of Catalonia, spoke on the opportunities for collaboration, investments and business expansion. He informed that Catalonia comprises four provinces: Barcelona, Girona, Lleida, and Tarragona. Its capital and largest city is Barcelona, the second largest city in Spain after Madrid, and the center of one of the largest metropolitan areas in Europe. With a populations of about seven million, Catalonia contributes 16 per cent of the total Spanish GDP. It is in true sense an economic powerhouse and is strategically located. Martinez promised to extend full support to Indian industries who wish to do business in the region. Jaxay Shah, Vice President – CREDAI thanked all speakers and delegates. He said NATCON provides unique opportunity to members and delegates from other industry to meet, learn and engage with each other. It is good to see participation from across the spectrum.
(Left-right) Pradeep Jain, Lalit Kumar Jain, Shibu Baby John, Willy Muller, Jaxay Shah and Joan Sureda i Martínez
Fostering Creativity Gary Lapera
AIA, Principal Architect C. Shekar Reddy, Vice President CREDAI, and Managing Director, CSR Estates Ltd, opened the session on ‘Imagining a New India – Thoughts on Culture, Context, and Innovation’. Abdul Azeez, Managing Director, Skyline Builders, and Chairman CREDAI Kerala welcomed the speaker and gave a brief introduction about Gary Lapera AIA, Principal Architect, and his firm Michael Graves & Associates. He informed that Gary Lapera is a Principal and Studio Head at MGA with a broad range of experience in many building types. Since 1983 when he joined the firm, Gary has undertaken many of the firm’s international projects, particularly those in Asia and Northern Europe. Pioneering innovations within various building types, his training center for the Philadelphia Eagles football team has become a model for sports training. He has also created innovative interior millwork systems for developer housing. Recently, Gary has been the Principal-in-Charge of The Nile Corniche, a mixed-use residential and hospitality project, which includes a 6 star St. Regis hotel. His building design for the Ministry of Health and Sport in The Hague and district master plan received a design award as the “best development in the world” from the international real estate federation, FIABCI. Gary studied architecture at Cornell University and Harvard University. The presentation by Gary Lapera AIA, Principal Architect, Michael Graves & Associates carried learnings from a 40 year dialogue with developers across master plans, office buildings,hospitality, residential and mixed use, in different parts of the world and their current work in India. He talked about design excellence and recommended to take account of past to future buildings. There should be balance of technology and human insight to bring required vibrancy. Lapera informed that it is very important to know about your clientele and to bring in the local context. Bringing innovation should be the objective in bigger projects as there is a larger canvas to play upon. He gave several examples of the projects built in Washington DC and other parts of the world. In most projects, our approach to architecture and design is, in the broadest sense, rooted in how people use and understand buildings, cities, furniture, and other fabricated objects. It is important to us that architecture, urbanism, and design communicate and connect with the users, the place, and the local culture and history. Architecture is inextricably tied to its past while it also addresses the needs of the present and shapes the future. Thus, for us, architecture is not simply a style but rather a language that both reflects the continuum of human experience and permits transformation based on evolving contexts. The master plans, buildings and interiors of character should tell stories about the people who inhabit them and the places where they are located. According to him, design knows no boundary but it is crucial to make people believe that they belong to the place. For this, it is important to know how they live, identify their tradition and culture and bring in the social meaning. Mentioning a number of his projects executed worldwide, he said that the common theme in all his projects were to give people the opportunity to put their stamp on the interiors. Lapera said currently his firm has projects in Indian cities like Jaipur, Hyderabad. His experience has been that the most crucial part is to have the ability to make definite decisions and comprehensively understanding your market is another important aspect. It is also important to inculcate best labour practices. Though, there is no definite formula but completing the project within time, making it sustainable and economical and creating larger sense of connection with history is recommended. Innovation is the key and with the building industry’s high percentage of energy use, it is essential that architects and designers make reducing carbon footprint a priority in their projects and practices. It is crucial to address how specific sites, locations and climates can contribute to green design.
Santiago Mercadé CEO, Layetana Real Estate
Session Chair Rohit Raj Modi, Governing Council Member CREDAI and Director, Ashiana Homes P. Ltd and Co-Chair welcomed the speaker and gave a brief introduction of him and his organisation. He informed the august gathering that Layetana Real Estate is one of the leading real estate firms in Spain and part of the reason for their success is the strong product differentiation for residential business through customization, design, sustainability and customer service/sales. Co-Chair – Saireddy Pruthviraj Reddy, Managing Director SMR Pvt Ltd gave a brief introduction of the speaker, which is as follows: Santiago Mercade (CEO) joined the company in 1985 and CEO since 1989. He has succeeded in turning the company into one of Spain’s 10 largest real estate developers. He is member of the board of trustee (supreme governing body) of the Urban Land Institute (Washington). From the year 1999 to 2005, he was District President for Spain and Barcelona of the Urban Land Institute and also has been the member of its Executive Committee for European Urban Renewal Council. He commenced his professional career in (Citibank NA) and Mass consumption marketing (Sara Lee). Mercade has a degree in Business Administration and management at ESADE Business School, and MBA on a combined program in HEC- Paris and New York University. Santiago Mercadé – CEO, Layetana Real Estate gave a fine presentation talking about different aspects of real estate industry. After briefly showcasing his projects, which were spread across segments like leisure centre, retail, theme park and residential, he shared the valuable lessons and asked realty developers to identify key drivers. He said that realty products are most lasting and thus they should leave behind a legacy. They say a lot about the developer. A developer’s track record is based on his products. Thus each and every product should be carefully
Santiago Mercadé (left), Greg Reaves (middle) and Romeu Chap Chap (right)
planned, tastefully designed and since these products are to be occupied by the people, they should function and satisfy the needs of the people. The philosophy should be to create buildings that enable people to live or work better and that contribute to making their cities more attractive and sustainable. The architect should integrate ideas with his or her humanist vision and use architectural techniques to turn an idea for a building into reality. At the same time, the architect must create something that is aesthetically pleasing. The end result should be attractive, honest and lasting building. Mercadé went on to compare real estate developers to an orchestra conductor who don’t play any specific instrument but is responsible for the symphony. Thus realty players should pick right people and see that the work is well coordinated and completed within time. It is not only critical but important that right set of people with effective qualities should be engaged to have a smooth and streamlined process. He also cautioned that developers tend to forget the economic cycle of slowdown and boom. He asked that it is important to prepare and be ready for the next phase of the cycle. He advised that land banks should be build at appropriate time. Cycle is part and parcel of any economic activity but we developers tend to forget it. This is not a healthy trend as the cycle in real estate business is quite brutal whether it is for the good or bad. Thus, striking a perfect balance is not only required but desirable. Don’t be speculative as this affects our businesses immensely. Mercadé also mentioned the need for interaction with competent authorities on a regular basis. Not only would this sensitise them about our problems but vice-versa. Getting building permits and approvals is a time consuming process worldwide, thus we should be prepared for that and take it account while planning.
Romeu Chap Chap
Session Chair A. Balakrishna Hegde, Member, Executive Committee, CREDAI and Managing Director, Chartered Housing P. Ltd., welcomed the delegates for this important session and introduced the theme, ‘Habitat of the Future’ which covers lessons learned over the more than 40 year history of Safdie’s Habitat 67 project, and a number of alternative, large scale housing models. Co-Chair – Vijay Mirchandani, Member, Executive Committee, CREDAI Chairman, Mirchandani Group welcomed the speaker and gave brief introduction about his work and achievements. Greg Reaves joined Safdie Architects as a Principal in 2010. He is currently principal-in-charge for residential projects in Mumbai and Bangalore in India and in Singapore. He is also involved in mixed-use developments in China and Singapore. Before joining the firm, Reaves was a partner at Thomas Phifer and Partners in New York, where he was responsible for more than 15 notable projects and four National AIA Honor Award recipient designs, including the North Carolina Museum of Art expansion. Earlier, while at the offices of Richard Meier and Partners, Reaves served as a senior project designer on several projects, including the Getty Center in Los Angeles and the City Hall and Central Library in The Hague, Netherlands. He also worked at Skidmore Owings and Merrill in Chicago. Greg Reaves, Principal, Safdie Architects talked about the project, Habitat 67 a model community and housing complex in Montreal, Canada designed by architect Moshe Safdie. It is a popular residential project comprising 354 identical, prefabricated concrete forms arranged in various combinations, reaching up to 12 storeys in height. Together these units create 146 residences of varying sizes and configurations, each formed from between one to eight linked concrete units. Reaves informed that the development was designed to integrate the benefits of suburban homes, namely gardens, fresh air, privacy, and multilevelled environments, with the economics and density of a modern urban apartment building. It was believed to illustrate the new lifestyle people would live in increasingly crowded cities around the world. He said that we should take some crucial lessons from it to march forward where the need is to make housing more affordable, adaptable and most importantly sustainable. The focus is now delivering housing that is more efficient, integrated with culture and community. For instance, Habitat since its inception has been an innovative, emotion - generating enterprise, an enterprise that has succeeded admirably in demonstrating the enduring power of an original idea. It was not just an experiment in prefabrication and mass production, or in the use of a three-dimensional modular system as the organising principle of an urban structure. Giving few examples of on-going projects in Mumbai and Bangalore, Reaves gave an insight how regional factors can play a major role in building a better and efficient building. A lot of research, taking lessons from the past, detailing and adaption to the future should be kept in mind while going for affordable housing.
Session Chair – Rajiv Sabharwal, Executive Director, ICICI Bank Ltd started the proceedings talking about the significant development in the real estate sector. He mentioned it is time that the developer community should seriously look after its customers’ service issues. Use of social media, connecting directing with the customers, integrating with civic life and providing ample security measures in housing are few desirable steps that should be taken to improve the image of developers. Welcoming the speaker, Sabharwal said that there may be number of lessons that India can probably imbibe from the large scale housing model in Brazil. Co-Chair – G Yoganand, Member, Executive Committee, CREDAI and MD, Manjeera Constructions Ltd, gave a brief introduction of the speaker. Romeu Chap Chap is one of the past presidents of Secovi-SP, a Real Estate Association founded in 1946 that represents the real estate industry and the condominiums in São Paulo. He chaired the entity by five managements. Currently, also coordinates the Nucleus of Senior Union Themes. He has been involved in several national and international associations such as ADVB, Fiabci Brasil and Americas, Abrasce and CBIC. He was a member of the National Council of Social Development by invitation of the President of Brazil. Civil engineer and owner of Romeu Chap Chap Construction Ltd and Romeu Chap Chap Development and Real Estate Consulting, with 50 years of uninterrupted activities in the Real Estate market, in the areas of construction, development, shopping centers and leisure enterprises, was elected several times ‘Leader of the Real Estate Industry’ . Romeu Chap Chap developed and built more than one hundred high-class buildings in São Paulo and other cities. Romeu Chap Chap – Secovi-SP Group of High Themes Coordinator started his presentation by throwing light on how mass scale development has became a reality in Brazil; what reforms and policy changes had to be made? For instance, Minha Casa Minha Vida and performance of these policies and what were most successful funding mechanisms in Brazil? Chap talked about Minha Casa Minha Vida (My House, My Life), the Brazilian government’s social housing program that was launched in March 2009. Minha Vida is the solution that the Federal Government has found to promote access to housing for millions of Brazilian families who would hardly have access to it otherwise. The goal for the programme is to build one million new homes within 2016. To support this goal the federal government have budgeted and investment of 34 billion BRL, that is divided into five different sub-programs, depending on income level and other special conditions. During the project period it will be created more than 1 million new jobs, most of them in the construction industry. The program only covers the metropolitan areas of Brazil, including all state capitals and municipalities with a population superior to 50,000 people. The low-income people are automatically enrolled to their sub-programme with 400,000 unites available for distributions.
Principal, Safdie Architects Housing P. Ltd.
Session Chair – Dharmesh Jain, Vice President, CREDAI and Chairman and Managing Director, Nirmal Lifestyle Ltd, welcomed the speaker and shared some interesting facts about the London 2012 Olympic like all the venues were ready 10 to 12 months before the Games; the village was ready six months before; the final cost came to 6.7 billion pounds, a bit less than the projected figures. He said like the world, India remains fascinated by the London 2012 Olympic Park and its iconic venues, all of which have been designed and delivered to budget and ahead of schedule. Co-Chair – Sandeep Mehta, Managing Director, Jain Housing & Construction gave a brief introduction of the speaker Ralph Luck OBE FRICS, Director of Property, UK Olympic Delivery Authority. His main transactions have delivered the Olympic Village, Stratford City and the Sailing Venue at Portland. Previously he held several positions at English Partnerships (England’s former National Regeneration Agency), including being Regional Director for London and South East England and Development Director for the 300 acre Greenwich Peninsula, including the Millennium Dome. He was also Chairman of the British Urban Regeneration Association from 2004-7, having been a director for 14 years. Prior to English Partnerships he was Development Director at Chatham Maritime, 350 acres of the former Naval Dockyard. Earlier in his career Ralph was Senior Development Surveyor with Taylor Woodrow and a Chief Officer at the London Borough’s of Bexley, Harrow and Wandsworth. Ralph is a Fellow of the Royal Institution of Chartered Surveyors and the Chartered Management Institute. He was awarded the OBE for services to regeneration in the 2004 New Years Honours list. Ralph Luck OBE FRICS, Director of Property, UK Olympic Delivery Authority gave the attendees a first-hand insight into the plans for the regeneration and future of the Olympic Park. He explained how the 2012 Olympic Games has become the catalyst for the regeneration of one of the most underdeveloped areas of the UK, and how planning played a key role in the post-Games legacy. He informed that the Olympic park design embodies a clear strategy for the long-term future that will trigger major regeneration in the lower lea Valley within the wider context of the Thames gateway. The area would be transformed from Olympic park into a new urban quarter, which will contribute to the urban character, economic potential and sporting significance of the entire Valley. The ambition is to go forward with a truly outstanding development that will enhance east London and demonstrate excellence in 21st century city development. A vibrant new part of London would be created that offers the best of urban design, civic spaces and architecture, predicated on a deeply embedded sustainability strategy that delivers a high quality of life to its residents. Luck informed that the fundamental design plan was ready before anything. The first and the foremost plan were to keep all the processes open and transparent related to the Games. We got the site in July 2007 and followed our deadlines religiously.
Session Chair – Sanjeev Srivastva, Member, Executive Committee, CREDAI and Managing Director, Assotech Limited, welcomed the speaker and gave a fair idea of the presentation. He said the speaker is presenting a case study of the most important project of urban transformation of Barcelona city of the last years, where a dilapidated historic district of Sant Martí was transformed and serves as a model of innovative urban design and planning for cities around the world. Co-Chair – Ajay Mohgaonkar, President , CREDAI Madhya Pradesh and Director, Fortune Builders, gave a brief introduction of the speaker, Jordi Sacristan, International Economic Promotion, Barcelona. He is responsible, among others, of the international economic strategy, and foreign direct investment strategy. Prior to this and during the last four years, Sacristán has been the Marketing and Communication Manager of 22@Barcelona, the most strategic urban and economic renewal project in Barcelona and one of the biggest in Europe, which is transforming the former industrial areas of the city into an innovative business district where talent and knowledge are the driving forces. Sacristán holds a bachelor’s degree in Business Administration from the University of Barcelona, a Master’s degree in Marketing and Sales Management from ESADE and a PhD in Marketing Research. Jordi Sacristan, International Economic Promotion, City of Barcelona, presented the case study of 22@ Barcelona’s Innovation District. He gave startling and inspiring facts about it. He informed that in 2000, 22@District began as a government initiative to transform the dilapidated historic cotton district of Sant Martí into a booming knowledge center. By 2010, the innovation district already had 114,000 m2 of new green space and over 4,500 companies, businesses and shops, half of which moved to the district after 2000. The district has experienced a 23 per cent increase in residents and now has 90,000 employees working there. Today, the 22@District serves as a model of innovative urban design and planning for cities around the world. This innovative regeneration project has created new employment, housing and live-work spaces through five knowledge-intensive clusters: Information and Computer Technology (ICT), Media, Bio-Medical, Energy, and Design. Sacristan said the project seeks development on many levels, with an emphasis on renewal: the project’s objectives are “urban renewal, economic renewal and social renewal” fosters social interactions through the professional spaces designated in the district. While each of the industry clusters are segregated into distinct areas containing residential areas and amenities, they are unified by centralised heating and air-conditioning, electricity distribution, waste disposal, telecommunications infrastructure, and smart traffic management systems. Based on PPP model, the project has office, commercial, and research spaces and brings new life to 35 km of streets. Within this, 220,000 m2 was dedicated for new public facilities and green spaces as well as residential development including social housing.
Director of Property, UK Olympic Delivery Authority
International Economic Promotion, City of Barcelona
Success stories of Landmark Projects Ricardo Bofill Jr.
Vice President, Ricardo Bofill Taller De Arquitectura Session Chair – Satish Magar, Member, Executive Committee, CREDAI and CMD, Magarpatta City welcomed the speaker and threw light on his presentation that talked about case studies of the 1 million sqm, IT hub in Bangalore ‘Monsoon Breeze’ and a huge (250 million sqm) planning project ‘iMoscow Project’ selected by the Russian government to develop this project, amongst a competition of 100 teams and W Barcelona (Spain). Co-Chair – Anurag Sharma, Governing Council Member, CREDAI,Managing Director Alokik Buildcon (P) Ltd, introduced the speaker, Ricardo Bofill Jr., Vice President, Ricardo Bofill Taller De Arquitectura. He started his presentation by saying all good buildings have good stories. Architecture is all about playing with spaces and creating stories. Giving examples of his projects, he said that the need of the hour is to make good, efficient, sustainable buildings at low cost. Taking about his project ‘Monsoon Breeze’, a IT hub in Bangalore, he said the project has been adapted for this sub-tropical savannah weather and local culture. The Elliptical Plaza embraces the space and the people who are invited to a great stage where films, entertainment and shows happen all day and night under the monsoon breeze, like a reinvented Spanish Plaza amphitheatre that Ricardo Bofill has designed for the site. A flowing object has been designed under a curving roof that contains a high-tech feeling. The exterior Stage in the centre of the half moon, half covered by the roof of the Mall, acts as an urban canopy for the rain and the sun. The two “arms” of the soul-space become a double-order Arcade, where artists, artisans, citizens may gather and sell their crafts and show their art. Keeping in consideration the young aspiring population, there is dose of multiplex, theatre &congress, food &beverage, restaurants, roof terraces with a viewdeck over to the Residential towers that stand in a quiet classical mood. Living and commercial activities are separated yet connected forming one single body, one single community, one place with one heart. Talking about the hotel W Barcelona, he said that the idea was to make the sea the main protagonist. We used simple material yet gave a classical look to it. Today, it is an icon above the Mediterranean sea and has become a landmark in this region, which has been redeveloped with upmarket office and entertainment facilities. A sail-shaped building on a 10-hectare plot reclaimed from the sea was part of an ambitious urban renewal plan for Barcelona’s coastline. Informing about the project, he said the closest volume to the sea is a slender, 24-storey building set perpendicular to the dock. The reflecting facade of silvered glass blends with sky colours and sea sparkles. This volume is inserted in the low-slung atrium building, the lobby of which affords views of the sea and enjoys natural zenithal light. Public activities are housed beneath a platform designed in the form of two huge terraces. Giving more examples of the projects done worldwide especially in China, USA, Ricardo Bofill Jr mentioned about their latest project, that is to elaborate the Concept for the New Agglomeration of Moscow. He informed that the city of Moscow extended its territory in 1600 square kilometres, multiplying by 2.5 the territory of the city for a population of 11.552 million people in the coming years. The competition was tough as there were teams from different countries, aimed at decongesting the city center and the planning of the extension where there will be located the new financial center, state administrations, university campuses and other public facilities. According to him, this is the largest urban project of the History of Urban Planning.
Ralph Luck (top) Jordi Sacristan (middle), and Ricardo Bofill Jr (bottom)
day two 72
Creative architecture & Building Innovation
Enric Ruiz Geli
Director and Principal Architect, Cloud-9 Studio, Barcelona Session Chair – Jitendra Thakker, Member, Executive Committee,CREDAI and Chairman, Thakkers Developers Ltd talked the conference topic, Construction of Media-TIC Building, the winner of the ‘World Building of the Year 2011’ award at the prestigious World Architecture Festival (WAF) Awards. Co-Chair – Piyush Kumar Bhagat, Managing Director, Sanjeevani Estates Pvt Ltd introduced the speaker, Enric Ruiz Geli, Director and Principal Architect, Cloud-9 Studio, Barcelona. Enric Ruiz Geli, Director and Principal Architect, Cloud-9 Studio, Barcelona gave an animated and interesting presentation. He believes that while buildings currently produce 40 per cent of global carbon dioxide emissions, architects have the capability to construct buildings that only consume the energy they produce. In his eyes this would be ‘an architecture that performs the way nature does’, as generously as trees function. Talking about architecture in Spain, he informed that Spain is one of the three leading countries in the world in the field of architecture. It has lot of experience and countries like India should learn from it and vice-versa. He talked about how architecture can build societies. There should be a social agenda to it. Explaining is much talked project, Media-TIC building in Barcelona, he said that it powerfully epitomises green design as an all-in-one ethic and aesthetic. Situated in the city’s new science and IT district 22@ Barcelona, this digital technology hub uses distributed sensors to control solar shading by ethylene tetrafluoroethylene (ETFE) skins on the south-east and south-west facades. ETFE’s light and anti-adherent nature make it very versatile, but this membrane protects with a sun-filtering factor of 0.20. He explained how this dynamic interface functions: it has two different formats to match the building’s orientation to the sun. The south-west facade filters solar radiation through a screen of vertical cushioned panels containing nitrogen and oil, which coalesces as a ‘cloud’ sunscreen. The mosaic of milky white ETFE cushions adorn the 40 by 40 metre south-east facade on Calle Sancho d’Avila. Aesthetically designed, the inflatable cushions are embedded with sensors reading the heat and the angle of the sun. Layers of ETFE create three inflatable chambers within each triangular frame, which provide both shade and thermal insulation. Just as its structure takes the form of a distributed net, so the building has a distributed intelligence system employing 300 sensors, ranging from presence sensors in the lobby and common parts adjusting the performance of services according to the level of occupancy, to sensors controlling artificial light levels according to the distance from a window. Each of the facade cushions is controlled by its own sensor. Enric Ruiz Geli said his priority is bringing nature’s adaptive, productive qualities into building, to ‘create an architecture that teaches us something’. Buildings should stop being the cause of 40 per cent of global warming, and be the solution. No doubt, Media-TIC exemplifies most deeply the practice’s sustainable design principles and its synergistic approach to intelligent, energy-efficient buildings and innovative construction techniques.
Director, Laboratory for Visionary Architecture (LAVA) Session Chair – Sunil Mantri, Member, Executive Committee, CREDAI and CMD, Sunil Mantri Realty Ltd, welcomed the speaker and informed the audience about his presentation that focuses on the architectural innovation applied in the construction of WaterCube (project for Beijing Olympics - winner of Atmosphere Award, 9th Venice Architecture Biennale and also recognised in 2007 AR Awards for Emerging Architecture, RIBA London) and UTS Tower Skin, among the most talked about structures worldwide. Co-Chair – Rushabh Patel, Governing Council Member and MD, Parshwanath Realty Pvt. Ltd introduced the speaker, which is as follows: Chris Bosse is a Germanborn architect, resident in Sydney in Australia. Bosse’s Masters’ degree dealt with the implementation of virtual environments into architecture. The potential for naturally evolving systems such as snowflakes, spider webs and soap bubbles for new building typologies and structures informs Bosse’s work – the geometries in nature create both efficiency and beauty. But above all the human is the centre of his investigations. Bosse, Director, Laboratory for Visionary Architecture (LAVA), thanked CREDAI for inviting him to this forum. He said planning and developing architecture needs to keep in consideration the current needs and aspirations of societies. Our firm researched and developed a simple, cost effective, easily constructed skin that promises to transforms aged 1960s buildings in Sydney, into sustainable, iconic buildings. The ‘tower skin’ for the University of Technology (UTS) Broadway Tower in Sydney, Australia offers a unique opportunity to transform the identity, sustainability and interior comfort of the once state of the art building. Giving more information, he said, ‘tower skin’ is a transparent cocoon that acts as a high performance ‘micro climate’. It generates energy with photo voltaic cells, collects rain water, improves day lighting and uses available convective energy to power the towers’ ventilation requirements. The tower is wrapped with three dimensional lightweight, high performance composite mesh textile. Surface tension allows the membrane to freely stretch around walls and roof elements achieving maximum visual impact with minimal material effort. The ‘reskinning’ technology could be easily applied to other buildings in need of a facelift. He said that sustainability is at the heart of the project and innovations include: existing solar energy used to offset energy requirements; water collected from the atmosphere; energy peaks removed via ‘microclimate’ in tower envelope; natural convection draws conditioned air through existing rooms, vent to the exterior to generate energy; localised user control of air and temperature and much more. He talked about the Watercube or the National Swimming Center Beijing project informing that the so-called Watercube associates water as a structural and thematical “leitmotiv” with the square, the primal shape of the house in Chinese tradition and mythology. The structure of the Watercube is based on a unique lightweight-construction derived from the structure of water in the state of aggregation of FOAM. He said that behind the totally randomised appearance hides a strict geometry as can be found in natural systems like crystals, cells and molecular structures. By applying this novel material and technology the transparency and the appearing randomness is transposed into the inner and outer skins of ETFE (Ethylene tetrafluoroethylene, a fluorine based plastic) cushions. Unlike traditional stadium structures with gigantic columns and beams, cables and backspans, to which a facade system is applied, in the Watercube design the architectural space, structure and facade are one and the same element. The NSC has been designed to act like a greenhouse, absorbing solar radiation and avoiding heat loss. The double skin façade of bubbles is so well insulated that it has the potential to achieve an annual net heat gain. The clear and translucent facades will allow high levels of natural daylight which removes the requirement to artificially light the pool during the day. A core feature in the design of ETFE skin is the variable shading control system.
Founding partner, KieranTimberlake Session Chair – T Chitty Babu, Hon Secretary, CREDAI and Chairman-CEO, Akshaya Pvt Ltd lauded the efforts of CREDAI, especially the initiatives of transparency and code of ethics. He also talked about the development in regard to single window clearance and the problem of shortage of housing. Taking it further, he a brief of the presentation that how pre fabricated construction technique has been designed to be used to deliver homes in large numbers after Hurricane Katrina in New Orleans and the implications it has for housing in India Co-Chair – Nagaraj Reddy, President, CREDAI Bengaluru and Chairman, Zonasha Projects, presented the introduction of the speaker, James Timberlake, founding partner, KieranTimberlake. The firm has received over one hundred design citations including the 2008 Architecture Firm Award, the highest honor bestowed on a firm by the American Institute of Architects and the 2010 Cooper-Hewitt National Design Award. He is currently involved in the design of the new Embassy of the United States in London, the Brockman Hall for Physics at Rice University, the Center City Building for the University of North Carolina at Charlotte, the Revelle College Apartments at the University of California in San Diego, and the Delaware River Master Plan in Philadelphia. In addition to his architectural practice Timberlake teaches a graduate design research studio at the University of Pennsylvania. He has also served as Endowed Professor in Sustainability at the University of Washington College of Architecture and Urban Planning, Eero Saarinen Distinguished Professor of Design at Yale University, Max Fisher Chair at the University of Michigan, and has taught at Princeton University and the University of Texas at Austin. He lectures extensively in the United States and abroad. James Timberlake, founding partner, KieranTimberlake, thanked CREDAI for inviting him to this forum that focuses on ‘Think Big and Different’. Innovation is of utmost importance and the need is to look at the baseline as there is enough potential and opportunity to develop housing for the people at the bottom of the pyramid and that too within limited time frame. He informed the august gathering that KieranTimberlake was one of 13 architectural firms commissioned by actor Brad Pitt to design affordable housing for the Lower Ninth ward in New Orleans through the Make It Right Foundation. Our design is a flexible, integrated system designed to accommodate a range of customizable options from interior program to environmental systems to aesthetics. The proposed design anticipates a transition from stick-built construction in the first generation to local off-site fabricated subassemblies in later generations. The basic structure and organisation of the house is comparable to the chassis of an automobile fitted with optional components and assemblies that vary the specifics of its function and its appearance. Through selection of options the house is readily customized to satisfy a range of conditions and desires. Homeowners are encouraged to deploy this array of variables as they see fit. We see this approach as essential toward re-building a neighborhood and not simply providing shelter. He said that think global and go local is the theme that should be adapted going forward. He gave example of use of technologies in projects like new US Embassy project in London. Timberlake talked about the concept of Ideal Choice Homes in India especially in Tier-II & III cities that are not only affordable and scalable but futuristic, recyclable ethical and most importantly durable. He informed that the prototype would soon be unveiled near the city of Mumbai. This has been done after lot of research and studies done in 11 cities. Manufacturing facilities related to prefabrication is being discussed and developed. The way forward is looking at sustainability, delivery mechanism, innovative funding strategies, integrated designing and construction methodologies.
Managing Partner, Counselage India Session Chair – Prakash Challa, Governing Council Member and Managing Director, SSPDL Group, welcomed the speaker, Suhel Seth, Managing Partner, Counselage India who is one of India’s most admired marketing and management gurus and a highlyregarded columnist. Challa informed that the speaker will share his views on how developers can benefit from a deep rooted understanding of building strong brands in the long term that will pull customers towards them. Seth is the Managing Partner of Counselage India and founder of Equus. He has several passions: he is a regular speaker at industry meets; is a lecturer at various Indian Institutes of Management. Suhel also writes provocative columns in The Financial Times, London and in Business India, The Hindustan Times and The Indian Express on current affairs and the social landscape of India. Suhel has co-authored two books on Calcutta with Khushwant Singh and R K Laxman. Suhel was also the Keynote Speaker at the Indian Advertising Congress in 1998. Suhel has also been a speaker at all Marketing Summits organised by CII and was the Chairman of the CII Marketing Summits from 2005 to 2010. Being usual self, Seth, was not only blunt but specific what should real estate industry do to bring good name and build realty brands. He said that the problem is of perception, which currently is that developers make lot of money too quickly at expense of poor customers. They are not only unethical but uncaring and unpromising. The perception is too bad, according to him and that needs to be changed strategically. Firstly, the way the real estate business works should change. There should be accountability, clarity and quick grievances redress mechanism. Currently, the builders are subservient to the customers till the time he is paying
the amount and as soon as it gets over, the opposite happens. He advised that worldwide, brand building depends upon three things: Clarity on brand offers, pricing and after sales services. Why make a promise which you can’t fulfill and then you blame the system for it? The customer is not interested in your problems. He looks at brand trust. And the realty developers can do this if they work and function like an industry. It is important to leverage your positions where ever you can. Why is nobody willing to support realty sector when from a professional to a Supreme Court judge, everyone must have bought a flat? This is because real estate players have allowed people to take shots at them. It is time that they change their strategies and think about the customers. How many times have you advertised that what the developer will offer on the date of possession or one year after that? Have you ever returned money of the customers saying that the government is not giving approvals beyond its control? Have you created NGOs, worker bodies or organisations that can take your fight? Can’t CREDAI create forums where consumers’ problems are addressed and then advertised in each state? It is sad to see that people who are building a new India is being treated like this. It is necessary that you built trust across stakeholders. You may be doing a lot of good things but it is not being conveyed to public at large. So communication is the key. Another significant point is that most of you indulge in transactional transaction rather than being it a relational one. It is required to keep your consumers in good humour, be in touch and change the whole consumer experience for better. Bring Humanism, replicate paint industry success model and provoke transformation. Make consumer your champion.
President, ABIBOO Architecture Session Chair – Rajnikant Ajmera, past president, CREDAI &, CMD, Ajmera Realty & Infra India Ltd, welcomed the speaker and talked about the presentation that would showcase the similarity between Spanish and Indian cultures and projects and areas of opportunity for innovation in architecture to achieve higher value for the project, branding, quality and cost savings. Co-Chair – Ram Reddy Gummi, Member NATCON Organising Committee & CMD, Ark Infra Developers introduced the speaker, Alfredo Munoz, President, ABIBOO Architecture. ABIBOO Architecture is led by Alfredo Munoz, an architect titled in Spain,PhD in Architectural Design at the USA & International Associate of the American Institute of Architects. He has lectured & taught at Columbia University, University of Pennsylvania,European University, Pescara University, the Stockholm Royal Institute of Technology & Tongji University in Shanghai,among others. Prior to his commitment as an architect / entrepreneur he worked in Europe, the Middle East, India, Japan & USA for internationally renowned architects like Campo Baeza (Spain) & Skidmore,Owings & Merrill (SOM) (USA) as ID of
subsidiaries, Assoc.& Manager of major projects worldwide. Alfredo Munoz, President, ABIBOO Architecture began his presentation by asking how international practices in the field of architecture can be used in Indian context to achieve desired results. He said architecture is inspired by culture and both the countries boast of rich culture and traditions. Thus a lot can be learnt from each other, a blend of east and west. There are lots of things in common among both the countries. Both the countries are multicultural, have multi languages and can work hand in hand. India can learn about the iconic structures, knowledge of design and blend it with their traditions and cultures. Vaastu is something we have started incorporating in projects worldwide. Thanks to India, we can now work on bigger projects. It is due to our experience here in India that we got bigger projects outside India. Talking about his project in India, the ELA Residential Complex is located in the city of Chennai, southeast of India, he informed that the project combines a number of independent blocks, articulated in two areas defined by the presence of an existing power line tower on the site, which becomes the structuring element of a large linear eco-park with innovative solutions for alternative energy resources, and that turns out to be protagonist of the project and at the same time, the architectural relationship between the project and the National Highway. Spaces of social interaction are designed to maintain the relationship with the numerous green spaces provided in order to create a healthy living environment. Another point that he highlighted that India is cost sensitive market so detailing from the start of the plan is important as it saves cost. This is something which seems to be missing in India. It is also important to innovate to suit your customers’ needs at effective cost. Planning, use of advanced technologies and bringing in new concepts are other crucial steps that help to reduce overall pricing.
Principal, Studio Daniel Libeskind Session Chair – Getamber Anand, Vice President,CREDAI and Managing Director, ATS Infrastructure Ltd warmly welcomed the renowned architect, Daniel Libeskind, Principal, Studio Daniel Libeskind. One of top 15 architects of all times, he is winner of numerous awards and designer of breathtaking world renowned projects around the world including Ground Zero NYC, City Life in Milan, Reflections at Keppel Bay to name a few. Anand informed that the presentation will focus on the large ideas and concepts in architecture demonstrated through Libeskind’s current and past work. He will share words that underlie his vision for architecture — raw, risky, emotional, radical — and that offer inspiration for any bold creative pursuit. Co-Chair – N Nandakumar, Managing Director, Devi Narayan Housing & Property (P) Ltd introduced the speaker. Born in Postwar Poland, Libeskind immigrated to America with his family becoming an American citizen in 1964. He studied music in Israel (on the America-Israel Cultural Foundation Scholarship) and in New York, and became a virtuoso performer. He left music to study architecture, receiving his professional architectural
degree in 1970 from the Cooper Union for the Advancement of Science and Art in New York City. He received a postgraduate degree in History and Theory of Architecture at the School of Comparative Studies at Essex University (England) in 1972. Since establishing his practice in Berlin in 1989, Libeskind has designed major cultural, commercial and residential projects around the world. These include the master plan for the World Trade Center and the Jewish Museum Berlin. In October of 2011, his firm, Studio Daniel Libeskind, completed its redesign of what is now Germany’s largest museum, the Military History Museum in Dresden. Among the many Libeskind buildings that have received worldwide acclaim are The Felix Nussbaum Haus, in Osnabrück, Germany (1998); the Imperial War Museum North in Manchester, England (2002); the extension to the Denver Art Museum and the Denver Art Museum Residences (2006), the Royal Ontario Museum (2007) and the Glass Courtyard, an extension to the Jewish Museum Berlin,(2007) etc. Daniel Libeskind feels architecture is nothing but art of communication. It is a language that tells us stories of cultures, people, society, countries and traditions. It is done with heart, mind and hand. It is also about human spirit; spirit of making things positive. An architect should be positive, spirited and he should have the ability to spread optimism. Sound is another integral part. It creates connection. Giving example of his projects: Museum at Berlin or Grand Canal Theatre project at Dublin’s dockland, the architecture should be such that the sound resonates. According to him, sculpture is equally important. The building should be artistic. Libeskind said that he has a profound desire for a new time in which the experience of architecture aims at the liberation of space. In his view architecture is seen as a spiritual domain, a realm that cannot be visualised, an area of invisible presence
since it deals with the unspeakable. Without spiritual content and without a contribution to a deeper understanding of our Being there can be no significance in any building. Talking about his projects, he explained how complexity is critical. He asked why architects go for a simple building. There should an element of surprise. Bring the unexpected. There should be diversity in your creation. Dialogue is another important aspect of architecture. He explained how his university project in Hong Kong had to be designed in a way that it dealt with the 21st aspirations. Thus the buildings should be urbane and modern in its outlook. He talked about importance of counterpoint, a rhythmic structure that should be incorporated. In some cases, the design can be radical to appeal to a specific set of people. But in all, every building should leave a legacy and thus should be unique. Libeskind believes that building can be political too but it should transform and be adaptable to the future needs. Detailing his personal experiences, he said there should also be an element of risk in every project. There should be a calculated risk that every architect should take. And finally there should be a democratic set up in the firm. Every member of the team should be able to express his/her opinions. Talking about the project at World Trade Center site, he said that he did not to build two gigantic towers or even three gigantic towers, but to spread the density of office space. We have 10 million square feet of office space. Instead of putting it into two buildings — or even some architects considered putting it in one building — I said let’s put them into five buildings. So the building can be lower, they can be safer. They can create a better streetscape so that streets are pleasant to walk. They don’t have those wind tunnels. And to me, they’re more connected to the scale of the historic downtown New York.
Principal of Chart Lane, and member of CIMCIG Session Chair – Sushil Mantri Member executive CREDAI,and CMD Mantri Developers Pvt. Ltd started the proceedings by giving the demo of the newly launched website of CREDAI. He then welcomed the speaker and informed the gathering about the session. He said that social media platforms hold enormous potential for real estate companies to grow their business, sell more property and promote new projects. The presentation will help educate the audience on how they might benefit from social media and such newer marketing tools such as – Facebook, Twitter, YouTube, personal blogs, etc Co-Chair –Anand Singhania, President, CREDAI CHHATTISGARH and MD, Avinash House introduced the speaker. Ross Sturley is Principal of strategic marketing and communications consultancy Chart Lane. He blogs for Construction News, and is committee member for the Chartered Institute of Marketing Construction Industry Group (CIMCIG). After a short but successful career in the entertainment business, Ross moved into business to business media, and has spent 20 years serving sectors like science, social work, hospital management and pharmaceuticals.
Ross Sturley, Principal of Chart Lane, and member of CIMCIG (Chartered Institute of Marketing’s Construction Industry Group) said that with a large section of the internet accessing population connected to various social media online, social media marketing is a potential tool. People by nature are social. They love to mingle, interact and know about newer things. According to him, social media is a like big party and you are host. You have to welcome the guests, talk to them, make them comfortable, strike the conversation, entertain them and keep things in order. Communication is the key part and you must not only been seen but heard. Listening is also critical. Giving examples of sites like Facebook, LinkedIn, YouTube, Blogs, Twitter, he gave tips to be active and interesting. He gave figures of mobile phone users of 900 million and out of which 30 per cent would be having smartphones by 2017. Sturley said that setting up your social media presence is easy, making it work is not. He added one needed time and resource, expertise and authority and planning and commitment. So commit to the conversation.
CREDAI OPEN FORUM
Introduction to MBA Programme and Academy Dharmesh Jain, Vice President, CREDAI and Chairman and Managing Director, Nirmal Lifestyle Ltd talked about the importance of skill development programmes of CREDAI. He said that it is imperative that skills are upgraded from time to time to keep pace with newer technologies and concepts. He informed the august gathering how IIM Bangalore first time ever has come up with a co-branded course. CREDAI together with IIM Bangalore has come up with this course for owners and next generation owners of realty firms. There are 25 seats and requested the members to enroll at the earliest. The good part is that the people joining this one year course will get alumni status. For the middle management, CREDAI members can do skill development course and training at Sigma facility at Pune. There is also online certification programme by RICS in 10 different categories. He also requested the President, CREDAI to look into the resolution of forming a youth wing of CREDAI.
Credai for exploring opportunities and achieving business growth.
How can CREDAI be more useful to members? Lalit Kumar Jain, President, CREDAI and CMD - Kumar Urban Development Limited moderated the session whereby all city and state presidents gave their views and suggestions on how NATCON can be more effective and CREDAI can work in a more streamlined and organised way. There were following suggestions from the state and city presidents along with other reputed members of CREDAI
1. There should be more importance given to highlight CREDAI’s different initiatives. This can be done by having a session on this, may be on Day 2 of the future NATCONs. 2. A committee was formed to look into collecting authentic data of housing inventory available in the country: that too state wise. This data would be used to convince government in different policy matters. Also, an initiative to have mandatory CREDAI registration can be looked into to get the right kind of data. 3. The UP chapter showed confidence that the policies of Punjab can be replicated in the state. It is a learning for them. 4. There was a wide consensus that senior government officials from all state governments should be invited to such forums. This would sensitise them to our problems and vice-versa. The President, CREDAI requested all state and city presidents to invite and bring senior officials of state to the conclave in Delhi. 5. Another suggestion was made that local city officials should also be made a part of such conferences.
Meeting with the representatives from College of Civil Engineering in Barcelona, Catalonia Represented by Joaquim Liagostera, General Manager, College of Civil Engineering in Barcelona, Catalonia A special meeting was organised between the representatives from College of Civil Engineering in Barcelona, Catalonia and President, CREDAI to discuss about deploying the civil engineers from the state of Catalunya in India. Civil Engineers Institute made a presentation after the presentation, President, CREDAI appreciated their efforts and mentioned that this will be the biggest take away from convention here in Barcelona, that if competent engineers can be hired back home and can elevate the performer’s level of our engineer back home also how we deliver in time.
6. While the content and quality of speakers were appreciated at NATCON 12, there were suggestions to include more Indian speakers from various backgrounds as they are aware of problems that the developers face during project execution. 7. A study tour should be organized to iconic buildings of the host city of future NATCONs. 8. A special award can be constituted for the most iconic building in India every year. This would give developer the right impetus to go for such creative and innovative buildings. 9. A suggestion was made to have global speakers who can talk about different topics like large scale project management, effective financial management, customer relationship management and the likes. 10. A member suggested that we can have special rates from preferred supply partners as this would be a healthy trend. 11. There were suggestions that how NATCONs and other conferences can be made affordable for developers and members for huge participation. 12. There can be a panel of speakers from CREDAI who can be asked to speak at various city and state conferences where good quality speakers are hard to find.
13. There should be proper structure of CREDAI at state levels. Issues like define state constitutions should be looked into. All states to have proper State CREDAI and all city bodies to be affiliated to the respective state body. There should be active participation at all levels. The President, CREDAI requested that all city and state units should be in place within 3 months. 14. He also stressed the fact that there should be no duplication of authority. Once man should hold one post and CREDAI branding should from top to bottom. 15. He called the members to sign the Code of Conduct at the earliest. He said if we do not have 100% compliance implemented how can we ask the government to look into our problems.
Meeting with Govt officials from Punjab Participants (From Government of Punjab) N K Sharma, Satinder Bhamra, K K Kaul, Hernek Dhillon, Pankaj Bawa, Seet Singh, Amarinder Singh.
(From CREDAI) Lalit Kumar Jain, C Shekar Reddy, Getamber Anand, Jaxay Shah, Kulwant Singh and Amardeep Singh Hira. While the conference was on at the main hall, Lalit Kumar Jain held a parallel meeting with the delegation from Punjab at a separate hall. The meeting can well be summarized as – State of Punjab is all set to take up urbanisation on an aggressive note, the political environment, economic situation and above all a positive will to bring a metamorphic change in the state is evident. Punjab is heading towards resurgence and time is not far when it would certainly be referred as model state of India.
Next level for
Enroll in Executive Development Programme on Real Estate and Construction Management
o gain proficiency in tools, techniques and practices required for supervising, managing projects and business functions specifically in construction and real estate sectors, National Institute of Construction Management and Research (NICMAR) was incorporated in September 1983. NICMAR aims at efficiently and effectively developing awareness of principles and practices of real estate, construction management and related areas. The institute is recognised by the Government of India as a Scientific and Industrial Research Organisation (SIRO). The major
academic programmes of the institute were started with technical assistance from UNDP and academic inputs from the faculty of Loughbourgh and Indian Institute of Management, Ahmedabad. The institute is managed by a board of trustees, a board of governors and an academic council. After much discussion on various aspects required to be covered in training for middle level managers, CREDAI, in association with NICMAR, launched a one year Executive Development Programme on Real Estate and Construction Management (EDP-RECM) that has been targetted to the middle level managers of real estate sector in India. The programme addresses the broad areas of issues in general business, real estate management, project management, construction management and support management. The objective is to train this band of executives to perform their duties in a manner that would add immense value to the companies and individuals alike and thereby to the real estate industry in general. The participants get to learn and effectively communicate with clients, consultants, sub-contractors and outside
The target participant profile is a middle level manager from a technical/ non-technical background or a diploma
agencies as also planning, scheduling and controlling of project time, resources and costs to ensure that work is executed on time within the budget and to the ownerâ€™s satisfaction. It helps participants acquire proficiency in supervision of construction quality at sites and also organises construction site, integrates activities and developes human resource and safe working environments. The programme, offered by NICMAR, seeks to upgrade the managerial and technical capabilities of working executives of construction
and project organisations, government departments, other organisations engaged in infrastructure, real estate, utilities and facilities, process engineering, R&D organisations and service sector organisations. The entire curriculum is delivered over a period of one year, covering 28 days contact at Pune. The accommodation per participant per day is `1,200 on twin sharing and `2,000 on single occupancy basis, inclusive of all meals from bed tea to dinner. The target participant profile is a middle level manager from a technical/ non-technical background or a diploma holder in engineering from State Board of Technical Education with seven years plus of work experience. The courses will be conducted by NICMAR faculty and experts drawn from the industry. The taught courses are assessed by an examination method with the presentations as well as workshops assessed by practical tests. Examinations are held module-wise for the courses. After successful completion of the programme, the participants are awarded a certification of completion subject to a minimum attendance of 90 per cent and passing all subjects through written evaluation and assessment of project work.
Developers across the country are using multiple tools to reach out the target audience, says Syed Amir Ali Hashmi
ince the start of the century, real estate sector has gone places when it comes to positioning itself in the eyes of the potential stakeholders. Gone are the days when a simple advertisement in a newspaper or a simple hoarding did magic for the real estate developers. The age of going over the board has stepped in and we can now see newer ways of promotions to deliver the message across the board. It all happened with the coming up of newer generation taking up positions in the companies or in many cases, their taking up the position at the helm. It is not to say that earlier developers employed lesser effective methods
With buyers getting tech-savvy, it is becoming important to employ all possible marketing tools
but to say that now developers are using every tool at their disposal to ensure that their offerings reach the target audience with the right message. Now the game is all about conversion of a particular campaign. So a developer will not mind spending little extra if that step means more eyeballs and hence conversion for the project and the company. One of the earlier steps was when a developer in Delhi NCR launched a project and used Kapil Dev as the brand ambassador. For the press meet, the ambassador came out of a ball replica kept on the stage. It was the call that real estate sector has arrived in style. This may not have been the first step but it surely made people realise the way real estate was shaping up in the country.
One of the easiest tools that have been successfully employed by the developers is to shoot bulk emails to all the potential buyers, present as well as future. The thought was to reach out to as many people as possible without even giving a look at the profile of the e-mail reader. It was done with an idea that most people nowadays use Internet and even if they will not buy they can always spread the word around. In this step, however, it was important to keep a check on the areas that a developer is targetting. Special agencies came to fore which has
the data that works according to the demand of the developer. If a developer wants to target people in Delhi NCR in the age group of 35, the agency has the data and shoots the mail accordingly.
A recent report by Internet and Mobile Association of India (IAMAI) and IMRB states that the number of Internet users is estimated to grow up to 150 million by December 2012. There will be 105 million users in urban India while the rural belt will contribute 45 million subscribers.As of June 2012, there are 137 million claimed Internet users in India (99 million from urban India and 38 million from the rural parts), it added. Looking at the widespread usage it makes more sense to utilise this medium of communication. Developers all over India are using various websites to post their advertisements. To further strengthen their reach, developers are posting videos on these popular websites to get seen and heard at the same time.
With the advent of mobile telephony and relaxation in the SMS format came a new trend in real estate. It has become a norm to get SMSes from various real estate brokers and companies announcing
development in their projects. It has become a potent tool as people can always call up the number given at the end of the SMS to enquire about the project.
Real estate developers in India have come of age. Not only in developing innovative townships but the way they are marketing themselves. Market forces in the recent past have also made it important for the real estate players to make their presence felt. So we see a lot of developers coming up with brand ambassadors to put seal of authenticity and quality to their projects. Real estate developers are enrolling celebrities as brand ambassadors to encash their pan-India cult status. In order to reach out to the customers in a rapidly expanding real estate sector, developers signed on cricketers and other popular celebrities as their brand ambassadors. With the expansion of real estate sector, the customer base has also grown fast which has underlined the need for new companies to reach out to the customers in a fashion that instils confidence in buyers/ investors. Roping in celebrities with whom people relate easily means that developer has that edge to cement the confidence as people believe celebrities get attached to someone only when they are assured of a particular companyâ€™s good intentions.
We have model-actor Sushmita Sen for Assotech Limited, actors Rishi and Neetu Kapoor for Gaursons India Limited, cricketers Praveen Kumar and Suresh Raina for VVIP, cricketer MS Dhoni for Amrapali, actor Shah Rukh Khan for Mahagun India Pvt Ltd, actor Kangna Ranaut is the face of Ajnara Homes and cricketer Yuvraj Singh is the face of Investors Clinic to name a few. The trend of choosing brand ambassadors has picked up because people know that the celebrities choose brand they promote very carefully and this aspect works well on the customer psyche. A celebrity not only brings the face value to the company but also bring in goodwill to it. “It has helped us in getting good brand visibility as not only the old generation but present generation too is smitten by Rishi and Neetu Kapoor. Having said that brand ambassadors help in brand recall and instant attention, it is important to keep the quality and timely delivery in mind. No marketing initiative can be successful if we fail to deliver on
these basic counts,” says Manoj Gaur, managing director, Gaursons India Ltd. Experts believe these initiatives by big names in real estate have started a trend in re-branding and brand recall. The psyche behind this concept is simple. “People want to see a reflection of their role models in everything they do, including buying property. What they will see is how good a company represents itself and interacts with consumers. That’s why brand ambassadors are the best medium to reach the target consumers because they can communicate the positive aspects about the company (they represent) and attract the best possible clientele required to stay ahead in the industry,” says Praveen Tyagi, CMD, Vibhor Vaibhav Infrahome Pvt Ltd (VVIP). Emotions and bonding are the two factors that work in India and developers are using it to the best of their advantage. “In residential real estate, one has to communicate and give feeling of bonding. Level of communication has risen because intellectual quality of the customer has
Brand ambassadors help in getting the emotional connect with the prospective buyers
gone high. We must understand that the romance with residential possession is not over as yet. In fact, it has begun. Middle class is trying to secure old age as other forms of investment like banks are not giving good interest, they have no choice but to buy perforce a second home, which can be encashed during old age,” says Ashok Gupta, MD, Ajnara Group. However, choosing a brand ambassador is one herculean task because the choice should be acceptable by one and all. “A popular personality who gels with the vision of the company is chosen as the brand ambassador. We have to make sure that the image of the celebrity chosen is in line with the clientele that we are catering. Yuvraj Singh is flamboyant and a swashbuckling batsman. All these qualities are reflected in the working of our company also,” says Honey Katiyal, CEO, Investors’ Clinic.
Sponsorship of events
The biggest coup in event sponsorship came when DLF sponsored the Indian Premier League. With the popularity of IPL, name of DLF also reached millions. It can be contested that how much the sponsorship helped a company like DLF but it certainly helped in getting more eyeballs and cementing the place as one of the financially strong developers. One more trend that has come out in the recent past is the sponsorship of news
channel programmes. Many developers have lapped up the opportunity to sponsor news programmes where important issues are being discussed. Event sponsorship is mostly done to bring home the point that the developer concerned is financially strong and is serious about the projects it has taken up. Sponsorship is being done for the events/ programmes that are likely to be watched by a large group of audience. One developer has also sponsored Bollywood awards, which obviously is one of the most watched events by the masses.
Digital marketing (FM)
In the last five years, radio listening has also picked up pace. In the traffic chaos of metros people love to switch on their FM to ward off the weariness of traffic congestion, in smaller cities people still depend on this medium to spend some quality time and listen to their popular songs. Developers grabbed this opportunity of reaching out to people and over the past few years are airing their advertisements on these popular music radio stations.
The time in real estate has come when all the advertisement and promotion tools are being used. The need is to measure the effectiveness of a particular tool to get the maximum mileage out of the activity concerned.
The right course for management
professionals Enroll in Blended and Distance Learning Programmes to maximise benefits
o give CREDAI members edge in an increasingly competitive market, RICS India Professional Education now offers a range of education programmes across important activities in real estate and construction cycle. The developer’s professional team, well-trained in these key areas will ensure sound investment and valuation of real estate, project construction within desired time, cost and quality as well as proper maintenance and management of real estate. And to be successful in a challenging and fast-growing real estate sector, professionals across all levels and stages of the property and construction life-cycle need to stay informed of the latest trends, tools and technologies, learn new skills and techniques, innovate and apply new ideas in their daily work. A RICS and CREDAI Skills Development Initiative, the courses for management professionals for real estate sector include Foundation Programme in Property Valuation, Advanced Programme in Property Valuation, Foundation Programme in Quantity Surveying, Advanced Programme in Quantity Surveying, Foundation Programme in Facilities Management, Foundation Programme in Project Management, Advanced Programme in Construction Project Management – Levels 1 and 2 and Programme in Building Inspections and Quality Control. These specially created programmes enhance technical expertise, provide exposure to international best practices, equips with the most relevant skills, enhance flexibility through self-paced learning which suits personal learning styles and busy work schedules, provides 24x7 accessibility to programme materials via a cutting-edge online learning academy which allows interaction with faculty and other candidates through
Blended Learning Programme
Distance Learning (DL) Programme + Face to Face (F2F) Name of the programme
Format and Study Hours
Fee for CREDAI members* (`)
Advanced Blended Programme in Construction Project Management
DL-6 months F2F
Short Programme in Building Inspections And Quality Control
2 weeks F2F
Blended Programme in Building Inspections and Quality Control
DL-2 months plus 2 weeks F2F
RAC/CILI Programme in Real Estate DL-450 hours Investment and Finance (offered by RICS)
Distance Learning (DL) Programme Name of the programme
Fee for CREDAI members* (`)
Foundation Programme in Property Valuation
Advanced Programme in Property Valuation
Foundation Programme in Quantity Surveying
Advanced Programme in Quantity Surveying
Foundation Programme in Facilities Managament
Foundation Programme in Project Managament
Advanced Programme in Construction Project Management – Level 1
Advanced Programme in Construction Project Management – Level 2
Programme in Building Inspections and Quality Control
* Inclusive of applicable service tax @ 12.36 per cent
discussion forums and gives an edge in RICS membership application as these programmes satisfy the requirement for structured learning that an applicant must have. In these programmes, valuation professionals act as independent land economists to determine the value of land and property portfolios for mortgage, taxation, probate and collateral purposes. Real estate finance and investment professionals work with property firms, banks and financial institutions and provide investment
related services linked to the financial attributes of property as an investment class rather than its physical attributes. Not only this, facilities management professionals manage major facilities such as residential complexes, shopping centres, offices, universities, industrial, health and transport facilities while project management professionals provide management services over the entire construction process to achieve the required specification and quality of works to ensure delivery on time and adherence to the budget.
Giorgio Armani bullish on Indian luxury real estate
Gurgaon to get Asia’s largest residential skywalk
The first-ever 100 per cent FDI-funded real estate developer in Gurgaon, Experion brings Asia’s largest residential skywalk to the city. Larsen & Toubro has been appointed for the flagship development, Windchants on a turnkey project basis. With an estimated project cost of more than `1,000 crore, Windchants has been conceptualised by some of the finest consultants like Arcop Associates for architectural design and concept and Site Concepts International (Singapore) for landscape planning. As ‘design & build’ partner, L&T construction’s scope goes beyond civil construction to include providing design construction drawings for architecture, structure and all services coordinated under a dedicated project team right up to occupational status. “Windchants is a unique development that boasts of several firsts, a 1.4 km of skywalk to and fro that would meander amid abundance of lush, green exotic flora, shaded sit-outs, beds of herbs and spice gardens, interspersed with AC community interaction hubs at the seventh level. Possibly Asia’s largest residential skywalk, it would connect the seven condominium towers and duplexes within the development,” said Rakesh Kaul, CEO, Experion.
After a successful run in Dubai with its luxury apartments in Burj Khalifa, Italian fashion designer Giorgio Armani is bullish on Indian luxury real estate. Just after a year of tying up with the Mumbaibased Lodha Group, he is collaborating with Noida-based Supertech for an Armani Tower. Spread over 4,00,000 sq ft, the Armani Tower in Supertech’s luxury project Supernova, will comprise 100 luxury residential units. The interiors and furniture will all be done by Armani. Supertech is paying Armani a one-time fee for exclusive rights. According to analysts, the brand Armani is resistant to any slowdown in the market. In Dubai, when the realty market fell and prices saw a steep decline in Burj Khalifa, the Armani Residences in the tower held on to the price. Lodhas signed on Armani for their 117-storey residential tower and will have apartments and villas designed by the designer, with price ranging between `7.5 crore and `50 crore.
AlphaOne, Ahmedabad, conferred with CNBC Awaaz Real Estate Award AlphaOne, Ahmedabad, won the award under the retail category of the CNBC AWAAZ Real Estate Awards 2012. The awards evaluate not only the financial performance in a category but also for the standards of quality, customer satisfaction and efficiency. It has been a year of growing popularity and success for AlphaOne as Gujarat’s largest and newest lifestyle and entertainment destination with over 1.4 crore footfalls since the launch making it the hub of retail and entertainment activities. With 44,000 regularly interacting fans on Facebook portraying the high level of involvement of consumers with the facilities, the experience of the brands at AlphaOne has been phenomenal in the first year of operations. AlphaOne, Ahmedabad, has also been felicitated with several awards from national and global apex and media bodies for blending local flavours with international norms in the finest manner in Ahmedabad.
he Saviour Group is the tantamount to deliver contemporary quality amid excellence and diverse innovation. It has emerged as one of the prominent entities in the real estate sector and is into Residential, Commercial and Township projects. The group devotes its complete dedication to reach higher and build better. With its immense hard work and loyalty “Saviour” has accomplished the dream of delivering various tremendous infrastructures round the city. Some of its significant projects like, Saviour Greenisle , Saviour Park ,Saviour Street ,Gaur city -1, Gaur city -2 and many more have created a new benchmark within the trade. As stated by Mr. Sanjay Rastogi,Director of Saviour Group, “Saviour is coming up with its new residential project, the property is spread over an area of 10 acres amid 1500 flats near greater Noida (West) and is a house hunter’s paradise. The world
known architect “Hafeez” has bared its splendid imaginations to bestow the remarkable gaze and experience. The entire project is eco friendly fasten by 100*325 m green belt around to witness the whiff of fresh wind in close proximity”. Keeping affordability and requisite in mind the group has planned and offered flats with various sizes. Starting from 1300 Sq.Ft, 1600 Sq.Ft, 1900 Sq.Ft and 2300 Sq.Ft (appox) these flats are enclosed by 3BHK,4BHK and 4BHK + study. The arterial way of commuting through road way is the 130 meters wide road on one side amid 45 meters wide on the other side. With the proposed metro station 0 km from this project it will be a glance of relief for all the residents. Other basic and essential amenities are all at walking distance for better ease and comfort. The core business philosophy of maintaining quality and efficiency the group ensures to deliver value for money.
IIMB-CREDAI Business Leadership Programme to help professionals CREDAI Times reports
or practicing professionals in today’s business environment what has become most crucial is the ability to manage and sustain the change. Meeting and measuring up to this emerging challenge is the prime function of today’s professionals. To do this, they require keen perception, flexibility and the ability to merge management theories into action plans. The Indian Institute of Management Bangalore (IIM-B) CREDAI Business
Leadership Programme has been designed to help CREDAI members to meet the key challenges of managing in today’s dynamically changing and complex environment. The constant flux in the business and political environment, it requires business leaders to continuously review their existing worldviews and explore new ways of building and sustaining the competitive advantages for the firms they lead. This, in turn, calls for an in-depth, cross-functional knowledge and a global
perspective combined with personal leadership. The Business Leadership Programme (BLP) aims to allow participants to manage this development agenda. The programme helps participants to become strategic thinkers and dynamic leaders who shape the industry’s future and its structure in a dynamic and fast-growing industry, understand and assimilate the emerging concept, technology and business practices in achieving operational excellence that can lead to superior competitive performance. The programme has been envisaged as a fully residential programme during which the participants meet together five times over a year. Overall, it has been organised into five modules and spread over 10 months. The purpose of the programme is to help the participants to open up their minds through exposure, reflection and interaction which ultimately helps them to lead their companies in businesses successfully in a complex and high growth industry in the years to come. Accordingly, the programme helps them to build for themselves a coherent view of the future. Successful completion of this programme makes the participants of BLP eligible to register and alumni of IIM Bangalore (with a lifetime membership fee which, at present, is `3,000 per participant). IIMB has been recognised as the No. 1 business school in Central Asia by Eduiversal, a French consultancy group for three consecutive years.
Sunil Kumar V Director, Asset Homes (P) Ltd, Kochi
It was an enlightening experience attending the IIM-B CREDAI Business Leadership course. I thank CREDAI for taking up the initiative and providing us with this opportunity. Module 1 which focussed on strategy management, envisioning the future, intrinsic and extrinsic factors affecting our businesses, value creation, understanding our core competencies and leadership profiling has truly lived up to its expectations. Prof PD Jose and Prof K Kumar arranged presentations and invited discussions which provided insights and taught us innovative ways to understand our business. Our faculties encouraged three-way interaction inside the classroom, raising issues and concerns faced by the industry. The profile of participants included CEOs and MDs of reputed companies. Moreover, it was an icebreaker session for all fellow participants and faculty. My expectations from Module 1 were sincerely met and the areas concerning my organisation were discussed with our course faculties. I personally feel CREDAI should invite some of its members as visiting faculty to come and share their views and experiences which will be beneficial for second generation entrepreneurs.
Sankar Sastri General Manager, CREDAI
Thanks and regards Ronak Panjabi, RAMA GROUP
I am indebted to Mr Balakrishna Hegde and Mr Sushil Sionee for convincing me to join the Business Leadership Programme at IIM Bangalore. The first module â€“ Visioning the Future (October 31-November 4, 2012) was very interesting. Though I was apprehensive about going back to school after a gap of 30 years but both the programme directors, Professor PD Jose and Professor K Kumar, made us extremely comfortable on the very first day itself. Then on, the sessions became interesting. A lot of planning had been done by the programme directors to ensure that the participants enhanced their knowledge. The interaction with other classmates was fruitful. The classroom had students from age 26 to 59 and came from different cities. This goes on to show that with our CREDAI fraternity, you are never out of place and age does not matter. The outdoor session at Pegasus was an eye-opener. It helped all of us and we got to know each other better. The accommodation was good too. The classrooms were air-conditioned, neat and comfortable. The surroundings were enjoyable as was the food. Mr Dharmesh Jain, Mr Hegde, Mr Vijay Mirchandani and Mr Rohit Raj Modi have indeed done CREDAI proud and I strongly recommend this programme to all our CREDAI members.
First of all, I want to say a big thank you for the initiatives taken up by CREDAI. The general feeling seems to be that IIM Bangalore is a wonderful institution that provides incredible experience. However, the first day was tough as we were not prepared for the enormity of the business school experience. Furthermore, so many of our peers appeared like we were having the time of our lives and felt like we were taking it up for the first time. Yet the course is absolutely worth it as IIM Bangalore has a number of dynamic people who truly challenge and amaze you. Also keep in mind that while the projects and tailgates are enjoyable, they are not the only thing IIM-B is all about. Yes, we had fun, we got to know a lot of people better, received exceptional education, friendships flourished and enriched us academically. We all will walk away as changed persons. Thanks to CREADAI and thanks to IIM-B.