NRIs Are Choosing Affordable Properties To Invest
For last few years, affordable housing has been the talk of the town, in Indian real estate industry. However, it’s a newer trend among the NRIs and it’s being observed that they are taking more interest to buy ‘affordable’ as a viable rental income source. The average ticket size of NRI housing purchases has gone down from INR 70 lakh in FY16 to INR 51.5 lakh in 2018 [according to data from consultant 360 Realtors].
Among all types of investment options, real estate has always been a favorite investment asset class for non-resident Indians. NRIs with higher purchasing power have always been interested in purchasing luxury properties; however, in recent times, they are showing more inclination toward affordable homes as they bring better capital appreciation.
Affordable housing is expected to give returns of 8-10 percent for NRIs followed by 6-8 percent for mid-segment, 3-5 percent for luxury and 2-3 percent for ultra-luxury properties [according to a survey by Anarock Property Consultants].
Before 2015, investing in luxury properties was a far more lucrative option for the NRIs. Then came a wave of benchmark changes in the Indian real estate industry in the form of recession, demonetization, the RERA, and GST while the entire scenario of NRI-investment witnessed a paradigm shift and it started bending toward commercial properties and affordable segment as they promised higher yields.
According to statistics, investment by NRIs in the domestic property market, from $ 5 billion in 2014 to $ 10.2 billion in 2018 and the market is expected to touch $ 180 billion by 2020 [Source: www.business-standard.com].
In days to come, besides affordable homes, co-working spaces, shared accommodation, commercial, light industrial, warehousing and logistics segments are expected to see more NRI investments, say experts.
GST Rate Cut For Housing Sales Is A Big Relief For The Industry
Finally the day came for which the entire real estate industry and the home buyers were waiting for a long time. In a meeting held on Sunday, GST Council has announced that tax would be reduced for both affordable and other segment, too. On the wake of general election, it’s a welcoming move from the Government.
As per the announcement, GST Council has slashed tax rate on under-construction residential properties, and the effective tax rate now would be 5% for the normal category and 1% for the affordable housing category. However, in both the cases, developers will not be able to claim the input tax credit (ITC). The effective rate would be applicable from April 1st, 2019.
Before this announcement, for a long time, the demand of under-construction properties took severe blows because of the high GST rates on them while the ready to move-in properties didn’t attract any GST. There were pressures from all the levels of real estate sector for a rate cut,
Aside the developers, home buyers are the most benefitted lot by this announcement. Especially the first home buyers who are looking to buy affordable houses are going to be very happy by this step as the revised GST rate for this sector has come down to 1%. Apart from the affordable housing segment, the new GST rate would also help the middle class, neo-middle class, and even the aspirational class – said Finance Minister Arun Jaitley.
More than anything, this big decision by GST Council will help the sentiment of the industry which was sliding down constantly, for a long time. With this welcome rate revision, we can finally hope for some heavy-duty improvement in the sentiment of the sector in 2019.
However, Council has expanded the definition of affordable housing; now, GST benefits would be applicable to properties which cost up to Rs. 45 lacs and measure up to 60 square meter (approx. 646 carpet area) in metro areas and 90 square meter (approx. 969 carpet area) in non-metro areas. One more important aspect remains that after removal of ITC, how the developers are going to adjust the benefit and how are they going to package the final cost. Only time will tell!
[The author of this article is a senior Real Estate strategist and runs a Digital agency specialized in Real Estate Marketing. One may contact him at firstname.lastname@example.org for any query or discussion]
(Image Courtesy: zeebiz)
Co-working Space Is The New Favorite Among Indian Start-ups
Co-working is a services provision for a business model that includes individuals working individualistically or collaboratively in shared office space. Bernie DeKoven was the first to use the term ‘co-working’ in 1995. The provision of a work environment along with office equipment and amenities found in a typical office is generally given by the owner of the co-working space. The usual user of a co-working facility is generally self-employed, for instance, be a telecommuter or a freelance worker. Some businesses even use such the spaces to provide equipment, space, and services to their employees that they could not otherwise afford. Typical provisions of co-working facilities include shared workspaces, round the clock or 24/7 access, rental conference and/or boardrooms, Private branch exchange (PBX) systems, Shared kitchens, Wi-Fi, Communal printer/copier/fax, bathrooms, and lounges, etc.
There exist business models which adhere by co-working spaces. The first kind is of supportively managed spaces run like non-profit organizations. Organizations of this kind may charge affiliates just enough to support operations. The second model includes flat-rate memberships and fee structures which are based on access for a certain number of days per week, month or year or a single visit. Another model is of giving provisions “co-working visas” that provide free access to partnered facilities in different locations. Co-working is different from incubators, business accelerators, and executive suites because these spaces don’t fit into the co-working model because they often miss the collaborative, social and informal aspects of the process. In co-working spaces, the management practices are nearer to that of a cooperative by which it further includes focusing on community rather than profit.
There are several reasons why a co-working space is preferred. The very first reason is that it provides the work environment which generally self-employed people and freelancers do not get. Space provides with all the facilities and amenities required working (it can initially cost for a huge capital for startups, hence this way they save a lot of money. One gets all the office facilities like beverages, Internet, electricity, housekeeping, etc. while not worrying about any extra cost for renting up a place. This place also allows for Social Interaction; a co-working space is a compact place of active people from different professions, thus they are not bound like a regular workplace. Another special benefit is that flexible working hours are available at a co-working space which a regular workplace can’t provide. Thus a member gets to choose the right time which suits his needs. As written earlier, such a space provides its members with all the amenities which is required for working.
There have been several startups which have been supported by co-working spaces. Even if co-working spaces were initially not opted by some startups during their initial phase, they still look forward to work in it due to its endless benefits.
The co-founders of AdmitKard based in Noida, Rachit Agrawal and Piyush Bhartiya, have very positive outlooks for co-working spaces. According to them, such a space can be beneficial during the start of an organization and also while expanding it further as a place doesn’t become an issue. They believe not only a work environment but a proper talent pool is available in a co-working space. A lot can be learned from other members of different professions.
Kathy Gallo, the founder of Daily Cup, believes that a co-working space additionally helps in networking with other like-minded and driven individuals, providing motivation as the space provides a certain amount of structure, decreasing office politics there is much less competition or interpersonal rivalry along with the fact that people occupying the same coworking space may be potential clients.
The income model of Co-working startups is quite simple, either earning by charging according to a number of hours or desks used or through subscription fees. These rates depend on amenities being provided, advertisement and location of this office. A lot of companies or startups these days move every 18 or 24 months to a new space. Thus investing in proper real estate or taking long leases is not an economical option anymore.
There is a new trend visible of real estate adapting to the wishes of companies and trying to become a product on-demand. As per trends on co-working, people these days tend to opt for a space that has more than one location inside a city since they get a choice to work at any of the locations. Businessmen or Frequent travelers tend to choose for co-working spaces that generally have multi-city locations. An interested person should definitely be a part of some co-working passport programme which allows the cardholder or the affiliated card of being a part of that co-working organization to use a designated number of hours at any participating co-working space.
Some ongoing trends in co-working spaces include babysitting, making office space pet-friendly, bank tie-ups for a loan, a chartered accountant for your startup, business account etc. Previously co-working spaces were meant for solo entrepreneurs, freelancers or small businesses but these days even have known corporate companies are discovering co-working spaces for some of their employees.
In the USA, business giants like IBM, and AT&T have begun investing in such spaces to keep their engineers driven and up-to-date with the most recent innovations and industry trends. The Indian counterparts of such MNCs shall follow this trend in the near future as co-working as well.
Awfis was founded in 2015 and it presently has its base in Delhi, Bangalore, Noida, Kolkata Hyderabad, Mumbai, Gurgaon, Pune. It offers a shared space for a price range of Rs 5,000-15,000 per seat. Apart from the basic amenities, it provides a program known as ‘Start A Startup’ program (SAS). It includes funding support, MVP development, pitching sessions, certification options, business model evaluation, and opportunities for networking.
It is spread across Bangalore, Delhi, Goa, Mumbai, Gurugram, Hyderabad, Noida and Pune. Aside from the regular features, the organization offers regular workshops, seminars and events meant for enhancement and supplementation are habitually conducted. Membership is available on a monthly basis, thus during cash crush, one need not worry about security deposits.
It is situated in Mumbai. Space sharing for a single day would cost INR 499 and a monthly subscription is INR 6500. India’s first official Quora meet up and many other important workshops were held here.
4. Mumbai Coworking-
Based out of Andheri-Lokhandwala, this co-working space is one of the coolest coworking spaces in Mumbai. Prices for open space start at INR 5000 per month while dedicated spaces start at INR 7000 per month. A one-day pass can also be taken.
5. Work Loft
This is one of the best co-working spaces in Mumbai ideal for startups, freelancers and small business. It has all the amenities that include conference room access, printers and scanners, high-speed internet access, gaming zone and much more. Prices start at - Day pass for INR 500 per day, weekly pass starting at INR 2000 per month and monthly desk passes starting at INR 3000 per month.
Nirvana Realty’s Unique Project, Wollywood, Delivers On All Its Ambitious Promises!
Nirvana Realty, the largest player in Maharashtra’s second-homes market, has earned its reputation by introducing unique concepts, delivering quality homes and most importantly, keeping all its promises. It’s these qualities that helped it bag the coveted DNA Property – Developer of the Year Award for 2016. This month, Nirvana continued its glorious run from 2016. It delivered all its promises to the first batch of Wollywood home owners. Wollywood is a unique Bollywood-themed township in Wada, which even Bollywood’s Dream Girl Hema Malini approves of! Nirvana just handed out possessions of the homes, not just in time, but ahead of it. That’s a real estate story you’re most unlikely to hear!
Wollywood was launched, with great fanfare, in November 2014. Brand ambassador Hema Malini introduced the dream project, by booking the very first apartment with Nirvana’s smooth, secure online system, which was a first of sorts in the Indian realty sector.
On its launch, Nirvana made very ambitious promises to all its prospective buyers. And this month, with the advance delivery of its homes, they have kept their word. On-time deliveries are rarity in the Indian real estate sector. And before-time deliveries are practically unheard of. By keeping its promise, Nirvana Realty has set a new precedent in the Indian real estate sector.
Said Mr. Punit Agarwal, CEO – Nirvana Realty, “Ours is a young company, built on very strong ethos of trust and quality. We spend a lot of time in planning every project, so that every contingency is accounted for. Our team works hard to keep all things on track and keep our home buyers updated with every development. Wollywood is one of our most ambitious projects and we are ensuring that everything is perfect and on track. Its work is underway at a brisk pace.
The first of the four phases is complete. All others are also scheduled to be ready, as promised. The momentum is infectious, and it will reflect on all our in-development projects. We are aware that this before-time delivery is a rarity in our sector and it delights us to surprise our home owners. It’s our way of showing respect to not just them, but also towards our own word. This is just the first of many more promises that will be kept. And with every project, we will aspire to keep this benchmark going!”
Wollywood was the first project in India to introduce a subscriber-based initial booking system, a fair and path breaking way to allot homes. It’s safe and quick online system further smoothening the otherwise cumbersome home booking process. Wollywood is a theme-based community sprawled across 50 acres of lush greenery in Wada.
It’s designed to be the perfect weekend home, with its low cost, wide choice of apartments (1 RK, 1 BHK, 1 BHK Spacious and 2.5 BHK), gymnasiums, children’s play area, badminton court, infinity swimming pool, club house, skating ring, community hall, walking tracks and a host of other lifestyle features that every home owner yearns for.
But what makes it truly special is its Bollywood theme, where everything is designed to make you feel like a superstar. Imagine this: a gorgeous entrance lobby to welcome you, intricately designed street lights that lead the way to your home, film-themed temple to pray in, a Bollywood library to spend long hours in, spotting your favourite star on the Walk of Fame or even better, bumping right into them at your dance class! Wollywood truly brings the life of the superstars, well within the reach of the common man. Because everybody deserves a great lifestyle at affordable prices!
Nirvana Realty has delivered 6 projects in just 7 years, an astounding turnaround time for the sector. With the handing over of the first batch of apartments, Nirvana is ensuring that all others are delivered at as brisk a pace. 9 buildings in the first phase are complete and possessions are already underway. As these home owners will soon live their Wollywood dreams, many others keenly await their turn! With Nirvana’s award-winning track record and astounding dedication, they wouldn’t have to wait too long! And if you want to be a part of this story, go ahead and book your home today!
Sheth Creators Launches Auris Tower III – The Art Of Extravagant Living In Malad, Mumbai
Sheth Creators, one of the foremost real estate companies in India presents the launch of Auris Tower III a signature property in Malad, Mumbai.
The ultra-modern residential development boosts of aesthetically designed interiors and exteriors, and will prove to be a perfect destination that is sure to entice one and all. Spreading over an extensive landscaped area, the Tower III has been designed by the firm P&T Singapore. Gracefully embracing spectacular luxurious elements, an internationally styled modern lifestyle and path breaking modernisms, the property is a perfect example of offering a high-quality living focusing on complete well-being.
Encompassing of a tower comprising of 52 storey’s, the project offers residents with specifications of 2 BHK and 2.5 BHK palatial apartments, standing tall above 7 podium levels with the best of world-class amenities. These include facilities like garden and kid’s pool area, skating rink, ample car parking, barbeque deck, a multi-purpose hall, gymnasium and many more exciting amenities along with a sparkling view of the Malad Marve coastline and the gleaming sea beyond.
Being strategically located on the Link Road in the western suburb of Malad, the project features infrastructure services like the best of schools, hospitals, shopping complexes, leisure facilities and lifestyle centers within the vicinity. Along with these benefits, the projects also offer an easy connect to other parts of the city along with a great railway and roadway connectivity.
Commenting on the launch of Auris Tower III, HiralSheth, Director -Marketing, Sheth Creators, says, “We are gratified to announce the launch of Auris Tower III. With the onset of this lavish project, we believe that Malad would get the first-of-its-kind residential development which will be a beautiful mélange of luxury, tranquility, opulence and comfort”.
About Sheth Creators:
Sheth Creators, one of the leading real estate companies in India, is a name to reckon with its iconic project. Carrying the legacy of Sheth Developers ahead, which has always kept pace with the magnetic growth of the city, is inspiration indeed. New-age creations, built on the solid foundation has completed a blend of 60 mixed used developments across the globe with their residential, commercial, retail and township projects.
Rivali Park - Smart Gardens
Inputs by Mr Harjith.D.Bubber MD & CEO, Rivali Park, CCI Projects
Sustainability being the need of the hour, modern landscaping has become a hot trend these days. Nothing offers you more joy than the idea of being surrounded by the aura of blissful gardens and greenery.
A garden can add character to any home, office or restaurant. Contemporary gardens are more suited to welcome and create an indoor-outdoor lifestyle. Gardens initially were those typical small spaces in the outdoors which were very limited to any kind of contemporary additions. This concept has witnessed a drastic change in recent times. The gardens which were initially only an outdoor affair, today has made its entry into indoors as well. Indoor gardening is the modern way to accentuate one’s home decor.
If you have tried all ways and means to up the look of your abode but still feel there’s some missing element, you must try and bring in some lovely plants indoors. Fresh plants and flowers are sure to bring a positive aura and an atmosphere that will enhance your mood and health.
Indoor gardening will add a fresh appeal to your home interiors with the fragrance of fresh flowers and plants growing indoors. However, if your home follows a modern look, having a traditional garden will look really outdated. These days the term indoor gardening is picking up at a fast rate. The major question that comes to mind while we consider gardening is where would people who don’t have balconies, patios and outdoor areas grow their green foliage. The answer to all these questions is to start growing indoors. Add a touch of delight to your mundane interiors by bringing in some lovely indoor plants. If you are an enthusiast of indoor gardening, the areas like living room, bedrooms and even the kitchens are great spaces for gardening.
Lend your guests a green vibe by flanking your entryway with lush green planters. You can add an all-green symphony to your living room with the installation of a living green wall. This will add a natural feel to your space. A vertical wall in the bathroom may be an amazing idea if you are looking at transforming the look of your bathroom. Taking a bath amidst the green foliage will lend you a feel of dipping into a woodland pool. Mounting a freestanding tub near a green wall will give you the desired look.
You can also create interesting, low-maintenance, miniature gardens indoors. Most kitchens echo a boring look, but with indoor planting you can surely vouch to pep up the look of your kitchens. Adding a live herb garden can leave your kitchens spilling over with greenery. Having edible plants growing in your kitchens are the most functional gardens you can grow indoors. Single narrow planters fit well if you have a windowsill garden. Mason jars are great to use for indoor herb gardening. You can make use of all the available vertical space by hanging small baskets of plant stands. Although these plants will add to the look of your kitchens, ensure that these plants will need plenty of sunlight to grow. If you have a small home, use of miniature plants will help make your space look bigger.
While we invest a great deal of time, effort and money in accentuating one’s home interiors, the outdoors also demand equal amount of attention. Moreover, stunning outdoors are bound to complement the indoors. Gardens traditionally would make use of a plenty of floral plants, shrubs and trees leaving less scope for any kind of outdoor activities. On the contrary, modern day contemporary gardens limit the use of plants leaving more scope for outdoors to blend with the indoors.
The modern gardens have a more concrete patio as compared to the old-styled gardens; the pergola which was initially built by wood, today has been replaced by steel elements. These gardens make use of good amount of lights either natural or artificial along the pathway and water features, to make the space look more dramatic. Elements like stoned walls, different variations of plants and ample of seating spaces add to the charm of the gardens.
Today it’s a popular ritual for most outdoors to make use of a Buddha figurine to accentuate the look of the space and to add a tranquil aura. Gardens near the pool area are an awesome way to relax. Glass enclosed gardens with private seating adorned with garden accessories are also gaining a lot of traction. Use of pergola with teak and timber furniture sets in geometric shapes help accentuate the space all the more.
Modern day gardens are more relaxing and calming, thanks to the modern landscaping that are low in maintenance and more emphasis laid on hardscape. As per the modern trends plants with bold outlines and shapes lend a clean look to the gardens, while subtly coloured concrete pebbled patio can make it an inviting space. Great and comfortable seating arrangements that encourage conversations are other important elements which also add a function touch to the gardens in recent times.
Patio sets have been designed to embellish the gardens in the most beautiful way. Hence if outdoors is what you prefer you might as well think of investing in a good and durable set since these come with unlimited amount of benefits. You can sit on the courtyard and enjoy the outdoors, read a newspaper or enjoy the sunset sipping over a cup of coffee.
Patios will definitely enhance the look of your garden and the vast variety of choices available in the market today makes your buying decision all the more difficult. Available in a wide variety of materials and colours like oak, cane and wicker, these will definitely beautify your gardens. Wooden patio sets made from different types of wood are very popular today. Teak patio sets have been used for centuries and is still popular because of the durability of the material. Try adding accessories like umbrella’s, and lights to add to the ambiance.
Gardens and lighting go hand in hand. You cannot think of a garden without finalizing on a proper light fixture. One has to bear in mind that the ambience of the garden during the night is totally different from what it looks during the daytime. Your gardens glow with the natural lights during the daytime, why not give them the virtual glow during the evenings.
Complement your gardens and give them the much-needed glow by using the right kind of light fixtures. LED light fixtures are often used these days to illuminate the gardens during the evenings. Apart from LEDs, one can also opt for ambient lights, warm lights, backlights and front lights. You can also add a lot of effect to your gardens by adding colour changing lights. Either natural or artificial, lights will surely make your gardens glow. Also use of lights around the garden pathway will add to the look of the space.
Types of Contemporary Gardens
Gardens in modern times come with a lot of smart variations like indoor gardens, vertical gardens, speciality gardens, woodland garden’s and water gardens to name a few. One of the biggest promoters of green design and sustainability, the vertical gardens are today the most popular gardens commonly seen either in homes or in commercial and hospitality segments. A vertical garden is nothing but a green wall that is partially or completely covered with green plants.
These gardens can be used both indoors and outdoors and can be either free-standing or attached to the wall. These new and innovative gardens work well if you have a bare wall. You can grow these vertical planters on the wall and see the wonders for yourself. Vertical gardens will only grow vertically, thus leaving a lot of space for horizontal growth in the gardens.
All you have to do is to choose a wall on which you want the green plantations to grow and build a frame with a plastic sheet where you want your plants to be placed. Since these gardens need to be watered regularly, many vertical gardens come with an in-built irrigation system. After you have chosen the plants you want to see in your vertical gardens, you can start inserting them in the vertical wall.
Today most people who have love for gardening prefer to have indoor gardens. One can experiment a lot when it comes to having indoor gardens. These gardens can come with beautiful additions like swings, fountains, stunning lights, faux grass and plants, pebbled flooring and open skylights which allow plenty of natural lights to peep in to the gardens.
Knowing the fact that the sound of water adds to appeal to any gardens, water Gardens is another form of smart garden. These gardens occupy a lot of space and are best for outdoor gardening. These feature fountains, waterfalls, streams and small ponds.
An amazing alternative for urban gardeners, rooftop gardens is the most popular form of gardening when it comes to smart gardens. The only difficulty in rooftop gardening is extreme climate conditions.
These days’ containers are also for gardening purpose. This is an awesome technique for people who want to transform their balconies or verandas into blissful gardens.
Another type of smart gardens would be the modern formal gardens which feature geometric shapes like squares and triangles and comprise more of plants than flowers.
These types of gardens are great if you wish to highlight a part of your patio. If you prefer to have a Mediterranean garden, you can make use of terra cotta pots. Today DIY gardens are also popular among most people who love gardening.
It is not always necessary that gardens be really huge spaces, smartly-designed compact gardens will look equally appealing with the modern touches. They should be designed to be an extension to one’s home.
Real Estate Market Scenario Of Chennai Is Complex Yet Promising!
Chennai, also known as ‘Gateway to South India’ is the capital city of Tamil Nadu. The city has played a very critical role in the traditional, historical and intellectual growth of India and a standing testimony of Dravidian civilization. Chennai is the 4th largest city of India and is also the commercial centre of South India. The city is constantly growing and emerging into one of the biggest IT, automotive and manufacturing hub. It is also considered as the cultural hub of South India with strong heritage in classical dance, music, architecture, sculpture, movies & theatre, etc.
The city of Chennai is one such location which hasn’t witnessed any significant dip in the demand of commercial real estate sector. A lot of new companies are setting their base in the city leading to fresh employment opportunities each year.
In Chennai, unlike in other Indian metropolitan cities, the residential market is driven by end users who constitute 80-90% of the buyers. Absorption rate increased to 31.3 per cent in 2015 from about 26.6 per cent in 2014, and even though the market saw fewer launches in last 2 consecutive years, there have been more closures.
This resulted in clearing a lot of unsold inventory facilitating an upward correction in the market, a JLL repost says.
To go with the commercial surge in the city, infrastructure developments are happening to fulfill the needs of industries which are coming in to make Chennai their home.
The Public Transport across the city is getting better with more bus services and projects undertaken by government aiding faster and convenient commuting. Chennai Metro Rail project and Monorail projects are gaining momentum as well owing to which brighter days are expected for the city commuters in near future.
Chennai has always been known for its high-class Healthcare and medical facilities which is also one of the best in the county. The city is also known to have one of the best education eco-system in the county. Development of new hospitals, schools, malls and multiplexes are all abetting growth for the city’s residential real estate industry.
Along the expanding skyline of the city, there lie a number of grand bungalows adorning the city of rich heritage and history. These bungalows have been standing tall for decades and centuries and haven't lost any of their glory till now. While some of these are still used as residences, many have been converted into commercial and heritage establishments. One of the first names in the list of heritage bungalows in the city is the Chettinad Palace in MRC Nagar. Built in the early 20th century by the Nattukotai Chettiar family, the palace displays amazing work of Italian marble, limestone and teak. Another palace in the city is Amir Mahal in Royapettah which houses the Nawab of Arcot and his family. Constructed in 1798, this is a building which displays stunning Indo Saracenic style.
Radiance Builders, Doshi Housing, Jain Housing, Arihant Foundations are among the most prominent local developers in Chennai who are delivering quality, consistently. It is recommended that buyers make an investment decision keeping in mind the various schemes and offers that are being offered at present.
It won’t be wrong to comment that this is the right time to buy as customers have a wide choice of locations, apartment sizes and prices, which going forward may not be available due to the increase in demand!
Story courtesy: moneycontrol, Business Standard, Magicbricks
Real Estate "Modi-fied" - Best Time To Buy Property Is NOW
India’s fight against black money, corruption and terrorism just got very real. In what many consider to be a rather bold move, Prime Minister NarendraModi on November 8th announced that the INR 500 and INR 1000 notes will no longer be legal tenders. Modi has said that these notes will be replaced with newly minted INR 500 and INR 2000 notes. This move has far reaching implications for many sectors including real estate which has been going through a somewhat uninspiring phase in the recent times.
It is expected that the segments of the property market which have a high proportion of cash transactions will be hit hard- viz the secondary property market, luxury home sales and land transactions. The range of cash component used in these segments is anywhere between 15-40%. One can expect to see a price correction triggered by stagnation of sales as the stock of unaccounted money which lubricates these markets has been sucked out.
Even though many are predicting negative market sentiments for the realty sector there is a silver lining for buyers who are financing their property purchase via means of accounted money and home loans. Here are top 5 reasons why a salaried property seekers should invest in a property today:
If you are looking to buy a home, and are looking to finance your purchase through a loan, there can’t be a better time than now!
India Property Online Pvt. Ltd. is the country's leading portal in the online real estate space. IndiaProperty.com offers one-stop property marketing solutions serving builders, real estate agents and home owners, to sell or rent their properties, while offering a feature rich interface for property buyers to search and identify properties that match their requirement. India Property has pioneered several innovations such as Assisted Property - India's first online assisted buying service, Gruhapravesh - India's first series of virtual and offline property shows, 3D Virtual Tour and India's first augmented reality based Real Estate Mobile Application amongst others. The portal has over 5 million registered users with over 700000 property listings and 8000+ builders and agents using the platform to market properties.
Demonetization Will Not Allow Any Foul Play In The Real Estate Sector
India is elevating to be an aggrandizing economy. Few statistics show that India's property market was already facing decline since a couple of years on account of being unorganized, hugely inflated, a convenient way to park undeclared income and evade taxes. Our Prime Minister, Mr. Narendra Modi has come out with a very interesting and impressive strategy to crack down on unaccounted wealth/black money.
His move to demonetize Rs. 500 and 1,000 notes may not curb the root cause of black money but may dissuade corruption to a certain extent. However, real estate sector would be the worst-hit among other sectors and the market is expected to experience freeze for some time.
It is a single master stroke taken by our government to tackle all three malaises plaguing the economy-a parallel economy, counterfeit currency and terror financing. This aberrant industry is all set for some reformations that will turnaround the real estate sector like lowering of stamp duty, framing a new Act named RERA(Real Estate Regulatory Act) which will replace the mandatory clause to verify the identity of the applicants by Aadhaar database to verify a person’s identity.
The current demonetization will eliminate the cash component in the payments by the buyer, thus the property prices will become more affordable as compared to the recent scenario. This will not only curtail corruption but also restrain the trend of giving bribes for speedy approvals and sanctions from authorities, making transactions more transparent.
The stagnant price is expected to attract more investments from the NRI market. Also, banks could start funding land transactions, thereby decelerating land prices. This initiative will invite correction of prices and carve out the speculation in real estate prices. While the secondary market will take a major hit in the process, the primary market will not be impacted largely since most of the houses are sold on finance provided by the banks.
But in the long run, this sector may experience a positive demand scenario. Now, a majority of individuals with black money will be forced to travel in the same boat as honest tax paying citizens. The real estate sector may be in a muddle for around a year, but this direct attack on the parallel black economy and the impact of RERA will further bring about a discipline the industry.
However, following fair practices will provide an edge to organized players and the move will only aim to eradicate the parallel economy of black money. Thereafter, back again the real estate prices will be controlled by demand & supply and the market will reflect more transparency.
- By Mr. Rahul Shah, CEO, Sumer Group
How Will Demonetisation Affect Real Estate Rates?
Namaskar & warm greetings to my dear Customer/Reader Brothers & Sisters,
One question on top of everyone’s mind is whether demonetization will affect real estate rates. The clear answer I can think of is YES. Demonetization will definitely affect property & housing prices. But we need to understand in detail how this effect will come into being.
Real estate market today has two distinct divisions: Luxury & Affordable. The luxury market is largely investor driven & the affordable market is majorly driven by end users. The investors today are in two minds about investing in real estate market.
This may reduce the demand for luxury housing and the possibility that a few developers may be forced to reduce their rates is not unthinkable anymore. But the scenario in affordable housing market is completely different. The customers in affordable housing market are majorly end users who are buying the property to inhabit it.
Even today, the sales in affordable housing market are going strong. The disposability of affordable houses is very high. Numerous investors are now eyeing to shift from the luxury segment to the affordable segment for benefit of a higher return on investment and easier disposability.
Instances of many investors investing their same amount of capital and buying six to seven affordable housing units instead of one luxury home are on the rise today. This has led to a steady rise in demand of affordable homes from investors in addition to the existing demand from consumers.
The last two weeks have seen deposits in banks to the tune of Rs.5 Lac Crores. This figure is tipped to reach 16 Lac Crores in some time soon. This sudden rise in liquidity for banks is a very positive event. The rates for deposits as well as lending will unequivocally see reductions soon. This will explicitly lead to reductions in home loan rates. Fence sitters will have higher loan eligibility and moreover the EMI required to purchase the house that costs the same will come down. This will clearly lead to an increased purchasing power.
The government support for affordable housing is more than ever with unprecedented initiatives. The Pradhan Mantri Awas Yojana has proved to be a huge enabler for first time home buyers while offering benefits upto Rs.2.2 Lacs. The coming decade is going to see rapid urbanization with huge population shifting from rural to urban areas. This will drive the demand for first time home buyers in a big way in upcoming & developing areas like Muthaval in Kalyan.
Just like before, the Haware group facilitates you to pay completely in Cheque. Online booking option has also recently been started in the wake of demonetization, in addition to credit cards, debit cards, net banking. We’re one of the first adopters of this new innovation from our industry enabling the shift of our economy into a digital one.
Muthaval location in Kalyan has proved to be very successful. More than 1000 customers have already booked their homes here in projects by Haware Properties. The construction is in full swing and execution is ahead of targeted timeline. The rates of affordable houses at Haware Pinnacle are already very low and the discount offers are applicable now for a limited time only. The best time to book your dream home is NOW. So kindly accept my friendly advice, don’t wait any longer, visit the site today and to see this project first hand to book your dream home or shop. Kindly come with family and don’t forget to bring your cheque book. We’re eager to welcome you.
Amit Haware, C.E.O. & Joint M.D. - Haware Properties
This story was published on Maharashtra Times. See here: (https://www.facebook.com/www.haware.in/photos/a.1230523010327360.1073741825.431600400219629/1274676992578628/?type=3&theater)
Housing.com To Reintroduce Rental Offering Ahead Of Schedule
National, December 06, 2016: Housing.com, India’s most innovative and trusted real estate platform, announced today that it would be expanding its presence from the core business of Home Buying and Selling to include Home Rentals as well. Last year, Housing.com had taken a strategic decision to close Rentals in order to focus the Company on the Home Buying and Selling segment, the largest and the most lucrative real estate category in India. Housing.com has now started preparing for the re-entry and plans to launch Home Rentals early next year.
The decision of Housing.com to focus its resources on the Home Buying and Selling segment has led to a business turnaround and enabled the company to establish itself as the most popular online platform for buying and selling homes. Compared to last year, on a monthly basis, the Company's revenues have grown by 400%, operating costs have decreased by 70%, traffic has increased by more than 200% growing from 1.3M to 4.1M and number of homes listed have increased by over 450% growing from 110,000 to 630,000, making it the most popular platform for both home buyers and sellers.
With leadership established in its core business, Housing.com is now ready to expand into newer business opportunities in the online real estate space and entering rentals is the logical next move.
While the Company had planned to relaunch rentals towards end of next year, the government’s recent demonetisation move has led to an advancement in the plans. Demonetisation is expected to cause a slow-down in the Home Buying and Selling segment, while it will likely spur growth in the home rentals space, making it an opportune time to relaunch the rentals business.
Commenting on the development, Jason Kothari, Chief Executive Officer, Housing.com said, “The Company has delivered exceptional results in the last one year and has achieved a successful business turnaround. We are excited with the progress and believe now is the right time to expand, starting with Rentals. Although we had planned to restart rentals around end of 2017, but the recent demonetisation move has led us to advance our plans. We have started the preparations, and we look forward to an aggressive launch early next year.”
When Housing.com was founded in 2012, Rentals was one of the key focus areas for the Company. At the time of discontinuing rental operations, Housing.com was a leading player in the segment. With market leadership already established in the Home Buying and Selling segment and with the rental business slated to go live early next year, the Company will further strengthen and grow its leadership position in the online real estate segment.
Founded in 2012, Housing.com is India's leading online real estate platform with 1.7 million verified homes listed to date, and an unparalleled online user experience. The Company is a technologically innovative real estate platform with a larger vision to bring more transparency, efficiency and trust across the real estate ecosystem in India.
Housing.com is the only provider of independently verified listings of every home listed, conducted by a trained team of data collectors, analysts, auditors and photographers. With over 100 data points per listing, the in-house Data Sciences Lab is empowered with a significant body of information to allow buyers and sellers to make more informed decisions. Housing.com is passionate about taking a 360 degree view on solving India's real estate challenges.
Housing.com has led a number of strategic acquisitions, such as the largest community forum on buying and selling homes (Indian Real Estate Forum), an established company focused on doing due diligence of new real estate projects (Realty Business Intelligence), and a popular software for developers to manage and enhance their marketing and sales efforts (HomeBuy360).
Housing.com has raised over $100 million in capital from India's leading investors, including Softbank, Nexus Ventures, Falcon Edge, Helion Ventures, Nirvana Ventures, Qualcomm, DST founder Yuri Milner, Viacom 18 co-founder Haresh Chawla, Snapdeal founders KunalBahl and Rohit Bansal, among others.
A case study on Housing.com has been published by Ivey Publishing (Ivey Business School) and is also listed at the Harvard Business School.
Haware Properties Wins Power Leaders 2016 Award
Haware Properties is a prominent name in Mumbai’s real estate industry. The group has facilitated more than 60 million sq. feet of developments in residential, commercial & retail sectors. This is one such real estate brand which puts customers first and every project of theirs is built on a solid base of research and dedication and commitment.
Recently, Haware Group has won POWER LEADERS 2016 AWARD for their latest successful affordable Nano-housing projects at Haware Properties: Haware Pinnacle, Kalyan & Haware Paradise, Kalyan at the hands of Lord Loomba, House of Lords, UK. “As much as this is a huge delight & an absolute honor, it’s also that much more responsibility on our entire team going forward. Thanks so much for your motivation & blessings” says Amit Haware, C.E.O. & Joint M.D. - Haware Properties.
What Will Be The State Of The Real Estate Market In 2017
Knowing the prevailing political developments, an attempt for the eradication of black money by our Government and implementation of the real estate regulatory body (RERA) to ensure real estate business is performed in a regulatory framework. Definitely, 2017 looks as a revolutionary year for an Indian real estate market, especially the metro cities. According to us, because of the transparency and regulation, it will receive an influence of funds from FDI (Foreign Direct Investment), REIT’s (Real Estate Investment Trust) and Pension Funds.
Also, individual investors, banks and buyers will regain trust in real estate sector because of the accountability RERA imposes on the developer. In a region like Mumbai, affordable housing at strategic locations shall always witness high volume momentum of sales. Areas like Kandivali, Borivali, Dahisar where budgeted ticket sizes are between 60 lakhs to 1.5 crs which will surely witness a good traction.
We perceive because of the demonetization, banks will have surplus money and there will be an increase in tax revenues which will eventually lead to the reduction in interest rates for home loans which will further benefit real estate sector. Tax rebates proposal by the Government will ensure affordable housing in metro cities as well.
We see an upsurge in demand for nearing completion commercial properties as business requirements grow, budgeted offices at important locations like Andheri and Bandra will do very well. The Government of India along with the Governments of the respective states took a major initiative in encouraging the real estate development. The Pradhan Mantri Awas Yojana (PMAY) as affordable housing for all will see massive growth in real estate sector.
Ticket sizes over and above 6 crs. which form a high volume transaction shall see a significant slowdown due to an oversupply of luxury projects in Mumbai and also due to affordability in liquidity period for all business community purchases.
FDI: They feared entry into the system because of the issue of black money and lack of transparency and there was no official regulator so lot of developers used to collect money from buyers and use it for acquisition of other projects so thus the developers used to face cash crunch for the development of the project and used to get stuck at some or the other level. Also, the regulatory approvals used to take a lot of time and thus increasing the risk of the project getting stuck.
Earlier investors used to shy away from real estate investments because of the project delays and insufficiency of legal framework for investments changes in the laws and lack of central body regulating the real estate and inconsistency in state laws and central laws.
RERA is bringing an end to woes of investors as all the real estate transaction will come under one central law and state level regulators will ensure the enforcement of central Government law.
Because of RERA, all the money collected from the buyers will be deposited in ESCROW account and which can only be used towards construction and land payments. Also, in the case of delays of delivery of the projects the developer will have to pay interest at the rate of 10.9% for the delayed period.
In 2017, you will see a huge profit for startups and employment which will eventually see an increase in demand of corporate and residential real estate projects. Affordable housing supply and demand is expected to see a bag full of offers by the Government for both developers and buyers as well. Demand for good quality development will increase were buyers were facing trust deficit on home buying schemes available in the market.
India’s strong economy is one of the biggest factors behind the real estate sector and is most globally recognized sectors. This will also ensure in more NRI investments. The Banking sector is flushed with funds which will decrease rate of interests and will boost the growth and of course, GDP of Indian economy. The payment system will be seen and implemented in a much improved manner which will increase e-payment and will reduce cash dealings resulting into a transparency and efficiency.
Keeping, the long story short 2016 may have seen turbulences and the number crashed almost one-third of the projected sold units in real estate market, but 2017 looks promising and is expected to boost the Indian real estate industry.
By: MR. PARTH MEHTA, MANAGING DIRECTOR – PARADIGM REALTY
13th Edition Of International Property Show Attracts 100 Exhibitors From 40 Countries
In first 45 days of 2017, value of real estate transactions reached AED 42 billion, nearly half of all 2016 investments (AED 91 billion)
Dubai, UAE, 15 February 2017: Representatives from Dubai Land Department (DLD) and officials from real estate companies have unveiled plans for the 13th International Property Show 2017 in Dubai, the only show of its kind which allows retail sales and purchases for both local and international properties.
At a press conference organised by Strategic Marketing & Exhibitions, the leading marketing and exhibitions company in the Middle East, today (Wednesday 15 February 2017) it was announced that 13th International Property Show 2017 will have over 100 exhibitors from 40 countries representing the cream of the international developers, brokers, consultants, and investors from all over the world. The show will be held from 2-4 April in Dubai International Convention and Exhibition Centre.
The press conference was addressed by Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, Majid Saqer Al Marri, Senior Director of Real Estate Investment Management and Promotion Center in Dubai Land Department (DLD), Masood Al Awar, Chief Commercial Officer, Dubai Properties, and Sandeep Jaiswal, Chief Operating Officer, Azizi Developments. It was highlighted that the show is the only of its kind that allows direct real estate deals, thanks to the authorization given by Real Estate Regulatory Agency (RERA) since its launch. All the exhibiting companies have the right to receive down payments or full payments for the properties they sell.
Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, said the company works according to a far-sighted vision and clear business plan to promote Dubai real estate sector in a unique manner.
Al Shezawi said that the International Property Show in its 13th edition will be quite different by focusing on innovative and creative ways to promote the real estate, and by allowing the investors to use the opportunities provided by the show to add real value to both visitors and investors.
“DLD is very much interested in all shows and exhibitions that aim to show the strength of our real estate market. We are keen to support these shows,” said Majid Saqer Al Marri, Senior Director of Real Estate Investment Management and Promotion Center in Dubai Land Department (DLD).
DLD, with its strategic partner, Strategic Marketing & Exhibitions are working together to support local developers.
“Our support to this show is part of our main duties, specifically organising the real estate business and guaranteeing everybody’s’ right. This show provides the perfect environment for developers to operate and grow. Our support also gives greater credibility to the special offers and helps reassure clients,” continued Al Marri.
Al Marri explained that in 2016, the total value of investments in the market exceeded AED 91 billion involving 42,018 investors. The growth now is very obvious in the first 45 days of this year. The realty industry in Dubai has taken a positive curve since the beginning of the year. A report released at the press conference by DLD showed that in the first 45 days of 2017 the transactions value reached AED 42 billion.
“There will be many initiatives in this year’s edition. One of the most important differentiators is the debut of the real estate brokers village in collaboration with DLD. The brokers will offer the best and latest properties in Dubai, and visitors will have special discounts and offers during the three-day show,” said Al Shezawi.
Al Shezawi anticipated that the number of visitors will cross 16,000, with growth in the number of the deals as well, including some major ones.
Masood Al Awar, Chief Officer Commercial at Dubai Properties said: “With over a decade of experience as one of the top developers in the country, Dubai Properties’ objective is to continue to play a key role in shaping the future of the real estate industry. We are positive that our strategic partnership with one of the most influential and dynamic shows in the region, the International Property Show will support us in further promoting our projects that are strategically developed in answer to verified social and economic needs, as well as meet with current and potential customers and investors.”
Sandeep Jaiswal, Chief Operating Officer, Azizi Developments, one of the main sponsors of the International Property Show, said he is upbeat onthe real estate projects that will be showcased by the companies in the show. He explained that these projects fill the unmet needs in the market. Jaiswal said that his company’s participation is a great opportunity to show its projects, apart from the opportunity to meet other developers and share ideas.
Speakers in the press conference said that the show this year will register new record in terms of countries and companies that seek to benefit from the opportunity to clinch direct real estate contracts.
They also stressed that the show was keen to open new real estate markets to enhance its role as international platform that allows all key players in the real estate sector to meet, exchange experiences and seal deals. The show allows visitors to benefit from the chance to invest and get revenues from the promising real estate markets.
After 13 years of its launch, International Property Show is able to compete among the most prestigious real estate events worldwide.
“This remarkable success pushes us as organizers to improve, by attracting more international participations and offering even better special offers. The International Property Show 2017 presents an opportunity for all stake holders in the real estate sector to benefit from,” Al Shezawi concluded.
International Property Show 2017 is held in sync with 7thAnnual Investment Meeting (AIM) 2017 and inaugural ‘Future Cities Show from 2-4 April in Dubai International Convention and Exhibition Centre, which gives the three events further strength.
UK Iridium Brings The Best Of The World To The Heart Of Kandivali!
At a time when homes in Mumbai are getting more and more unaffordable, comes a breath of fresh air. Right in the heart of this bustling city, is an oasis of peace and comfort. Luxurious homes that are grand like your dreams, and well priced to suit your pockets! UK Iridium, a magnificent dream by UK Realty, brings you a 3.5 acres property that you can now call home!
Right from the acquisition of land to the final delivery of the project, the entire project takes up to several years, incurring major loss of time and money for developers, all resulting into frustration and loss of trust meted by the buyer.
Located in a prime location in Kandivali East, UK Iridium is centered on the idea of making luxury affordable. Busting the myths that lavishness is for the uber rich, UK Iridium has worked to create smart city homes. These homes are right-sized for urban families and the community provides for every demand of the modern lifestyle.
Its earthquake-resistant 4 glorious towers offer you studios, 1-BHK and 2-BHK homes. The 4 dedicated levels for car parking ensure there’s ample space for amenities on the ground. The 3.5 acres lush community has sprawling gardens, a state-of-the-art gymnasium, a jogging track, meditation area, power backup for those rare days of fluctuation, a large children’s play area, a multipurpose lounge for you to entertain your guests, an indoor games room, lawn tennis and badminton courts, a beautiful temple, fire-fighting systems, a 60-feet gushing waterfall, high-tech security to keep you safe, solar panels, a front-desk and high-speed elevators.
Said Mr. Dinesh Bansal Co-Founder, “UK Iridium is the manifestation of a long-cherished dream we’ve had at UK Realty. We’ve always wanted to present to the people of our city Mumbai with thoughtfully handcrafted spaces that are luxurious and affordable. Our team consists of the best designers, technicians and craftsmen who are piecing together this haven for families. From studios to 2-BHK, we have homes for a wide range of family needs. UK Iridium is at the heart of all city must-haves, like hospitals, malls, schools and highways. In Mumbai, this is the home that you’ve been looking for – luxurious, affordable, and hand-made for your family!”
UK Iridium is a stone’s throw away from the Western Express Highway, and a few minutes walk from the business districts, high-tech hospitals, the best schools, shopping areas and sports recreation centres. What’s more, when you enter its walls after a long day at work, the entire 3.5 acres property welcomes you home!
All apartments come fitted with Vitrified Double Charged Tiles in Living/Dining Room & Bedrooms, Superior Quality Sanitary Ware and CP Fittings, Pearl Black Granite Platform with Stainless Steel Sink etc. The studio apartments are smartly designed in an area of 277 sq. ft., the 1-BHK is 369 sq. ft. and the 2-BHK is spread over 500 sq. ft. These homes begin at an unbelievable price of just Rs. 43 lacs!
From the facts above, it can be concluded that the government is determined to make PM’s vision of ‘Housing for All 2022’ a success, by lending support from all directions. The scheme can prove to be a driver for the sustenance of real estate industry; therefore, developers eye affordable housing as a lucrative venture for growth optimization.
In a city with dwindling habitable pockets, UK Iridium is a great, rare chance to claim the good life for you and your family. Where else can you get a world of facilities in your budget?! So get in touch with UK Iridium today and book your own piece of paradise!
Theme Based Housing Is Gaining Momentum In India
Changing face of Indian real estate
Theme-based homes are gaining popularity as the preferences of Indian home buyers are changing with time. Gone are those days when a retired man in his late 50s could finally build a small house for his family with all the money he had saved through provident fund and gratuity.
Today even a 20-something with a promising career thinks of investing in a property and because of that developers are more than willing to accommodate the changing needs of today’s customers. They are experimenting more than ever, taking risks and are spoilt for choice!
Growing competition, rising aspiration and increased exposure to global standard of living have led to more sophisticated real estate developments in India.
To differentiate their residential projects from competition brands and to cater to an evolved set of customers, the developers are now coming up with theme-based housing projects in various cities of India. Most of these high-end and theme projects are coming up in and around metro and tier-I cities such as Delhi NCR, Mumbai, Bangalore, Chennai, Pune, etc., primarily due to their higher density of corporate employees with high disposable incomes.
A few notable theme projects
PurvaVenezia, Bengaluru by Purvankara Builders brings the spirit of Venice in this theme project
Image courtesy :http://www.puravankara.com
Romano, a Roman theme residential project developed by Supertech at Noida
Image courtesy :https://www.makaan.com
Lakeside Habitat by Prestige Group is a Disney theme project in Bengaluru
Image courtesy : http://www.propertykhazana.com
Villa Viviana is a Spanish themed township in Chennai, it’s a JV project by Arihant Housing and J P Morgan
Image courtesy :https://www.proptiger.com
US Open Apartments by Nirmal Lifestyle is a sports theme project at Mulund, Mumbai
Image courtesy :https://im.proptiger.com
Other few theme-based projects are
Ambrosia by Ajnara Group in Noida
Lavasa Villas in the Lavasa, Pune is inspired by the Mediterranean theme
Why theme-housing is gaining popularity?
Innovation is the key to progress in any industry, real estate is no exception. In earlier times a luxury house meant a large living spaces, fancy facades and high-end amenities and security gadgets. But now that a sizeable section of Indians are more exposed to global standard of living and are interested in adapting to it, more and more developers, influenced by customers' changing preferences and tastes are making projects with specific themes.
Due to the originality factor, theme-based housing is expected to grow continuously in times to come. Especially now when the Indian developers are joining hands with international architects, designers to bring true essence of global styling in Indian constructions.
92 Bellevue By NRS Developers Gets Prepared For Early Possession!
The Developers, customers, partners and other stake-holders of 92 Bellevue, a 21 storeyed luxurious residential development celebrated a rather unique milestone – of getting possession-ready ahead of schedule! The event was held at the site, Borivali (w), Mumbai on 4th April, 2017.
The luxurious project 92 Bellevue is being developed jointly by Nahar Group, Rajesh LifeSpaces and SKM Steel. This residential project is quietly tucked into the leafy by-lane of Borivali (w), a booming suburb of Mumbai and offers 3 BHK Compact and 3 BHK Classic homes.
The apartments flaunt modern architecture, finest amenities, inspiring designs and the complex is lapped by lush green landscape; a rarity in Mumbai city. It also has a Conference room, Banquet hall, a plush Cha bar and a fully-equipped Gym.
The Developers decided to meet & greet the customers and partners on the grand occasion of getting possession-ready earlier than the schedule.
The customers and the brand custodians who attended the event got an opportunity to interact with each other and celebrate the moment. There was a gala dinner and dazzling musical performances to entertain and engage with the attendees.
We bring you a few moments from the happening show and congratulate everyone who are associated with this prestigious project
Authored by 9amstories.com Editorial
Developers Make Hay While The Sun Shines On “Affordable Housing”
For years, a foremost hurdle in the growth of real estate industry has been slow approvals and delayed certifications by the government. After thorough documentation and rigorous follow-ups, a real estate developer has to take almost 50 different permissions and NOC (no objection certificates) with each such permission taking almost several months to come along.
Right from the acquisition of land to the final delivery of the project, the entire project takes up to several years, incurring major loss of time and money for developers, all resulting into frustration and loss of trust meted by the buyer.
The central government passed the Real Estate Regulation and Development Act (RERA) last year. RERA will ensure transparency by builders with stringent provision for penalty in case of delays; however the act lacks a strong measure to pressurize authorities to deliver timely approvals, which have been discouraging industry players to venture forth.
But the face of real estate industry is about to change, ever since infrastructure status has been accorded to affordable housing segment, the government has opened up new avenue for business growth of realty sector across nation.
Under the infra tag, the affordable housing developers will now be eligible for several government incentives, subsidies, tax benefits and most importantly institutional credit, thus encouraging developers across nation to tap the opportunity as a lucrative option. Over and above the obvious benefits attached, a new ray of hope is the expected acceleration in approvals and easy land allotments.
Under the scheme, NHA has announced to refinance individual housing loans of about Rs 20,000 crore in 2017-18. Jumping on the bandwagon private banks experiencing surplus liquidity as an effect of demonetization has already reduced their home loan lending rates.
A few FAQs:
To promote affordable homes, the government also proposed to amend the Section 80-IBA, increasing the period of completion of the project from the current 3 years to 5 years. The allocation under the Pradhan Mantri Aawas Yojana-Gramin was also increased from last year’s Rs15,000 crore to Rs 23,000 crore.
From the facts above, it can be concluded that the government is determined to make PM’s vision of ‘Housing for All 2022’ a success, by lending support from all directions. The scheme can prove to be a driver for the sustenance of real estate industry; therefore, developers eye affordable housing as a lucrative venture for growth optimization.
Post demonetization the real estate industry has suffered a slump due to the lack of cash flow and stringent policies of loan approvals. Industry has witnessed huge downturn from buyers of luxury and commercial segment as overall economic dynamics has gone downhill.
Mr. Anubhav Aggarwal, Managing Director at one the Mumbai top realty company, RNA Corp said.”Today in India, a primary demand for property buyers is seen from young couples looking at expanding their family, but there exists a significant gap between the cost of housing and annual incomes making homeownership seem improbable, if not impossible. This gives way to affordable housing sector to make an Indian Dream Home a reality, by producing lakhs of units under the scheme.
“The need of the hour is quicker clearances by the authorities, however till that materializes, the infra tag will offer a stress-free land allotment specifically for the purpose of affordable housing development.” Mr. Aggarwal said.
The company RNA Corp. itself have produced affordable housing units in Mira Road in the past and is planning to convert its existing land parcels in the outskirts of the MMRDA region under the affordable scheme.
RERA Came Into Force On 1st May: Key Points To Know
Governor of Maharashtra, Mr. C.V. Rao announced the launch of the Maharashtra Real Estate Regulatory Authority on Maharashtra Day and the official website https://maharera.mahaonline.gov.in/ came into force.
As stated on the website, the key objectives of the Act are:
Here are a few things about the newly introduced Act which we should know about –
Real Estate Agent Registration:
Registration will be valid only in Maharashtra for a period of 5 years. Every Agent has to be listed by Promoter during the Project Registration / Status Updates without which Agent can’t market the project. If any real estate agent fails to register, he shall be liable to a penalty of Rupees 10,000/- for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated.
Source: Maharashtra Real Estate Regulatory Authority ( MahaRERA)
According to a few experts, Maharashtra RERA is stricter compared to other states. For example, there is a clause that allows an agreement to be terminated only after giving a 15-day notice to a buyer who has defaulted on payment thrice. The notice period and three chances are aimed at giving buyers time to arrange for funds.
Under the new law, a developer can withdraw money kept in a separate account for the project, only after its architect, engineer and accountant certify the progress of the project. The Maharashtra RERA also prohibits discrimination on the basis of religion, caste and gender, which, if implemented properly would be a boon for homebuyers.
A few FAQs:
Which areas of Maharashtra are included in the Planning Area as defined in the Act?
Ans: In accordance with notifications issued by Urban Development Department of Government of Maharashtra, MR & TP Act is applicable to all the districts of Maharashtra. Hence, all areas of Maharashtra are included in Planning Area as defined in Section 2(zh) of the Act.
Can advertisement be issued for a new project after 1st May, 2017 without registering the said project?
Ans: No. The advertisement issued, for a new project, after1st May 2017 must carry the MahaRERA Registration Number of the project.
Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to MahaRERA?
Ans: Yes, the layout of the real estate project has to be approved. However, the promoter may include some buildings in his application of registration where apartments are proposed and the Building approvals are pending. Building Approval for the apartment must be obtained before the agreement for sale is signed between the promoter and buyer, regarding the said apartment.
Source: Maharashtra Real Estate Regulatory Authority ( MahaRERA)
The big question, however, remains, whether or not the state is ready with the infrastructure and resources to implement the Act. Also most developers and agents are still seem to be struggling to understand the Act and are still preparing themselves to comply with the regulations.
Let’s wait and watch how RERA benefits the buyers, the developers and the real estate industry as a whole.
The Face Of Indian Real Estate Industry Is Changing For Better
For months together Indian real estate developers, industry experts, stakeholders and of course the homebuyers waited for the much-anticipated RERA to get rolling and it finally came into force from 1st May, in Maharashtra along with few other states.
Indian real estate space has witnessed many significant changes in last one year or so. The industry had to struggle hard to align itself with the positive intentions of demonetization which subsequently managed to eliminate the age-old ‘cash transaction’ practice to a good extent and then came knocking, the big bold RERA!
Post 1st May there was a period of confusions, assumptions and apprehensions. No one seems to know for sure the exact outcome and consequences of the much anticipated Act. Standing today, the buyers are marginally optimistic, the developers still are in ambiguity but more welcoming than before and the authorities are still in the process of adapting to the new regulations and rules.
RERA, in all likelihood will revive the real estate sector by bringing much-needed accountability and transparency. The Act is also expected to revive confidence of investors/stakeholders in the real estate sector. RERA primarily aims to safeguard the interests of the homebuyers.
While it’s easy to target the developers for a host of property related issues especially delays in deliveries and cost escalations, one has to keep in mind that it’s not just the developers’ shortcomings. Approvals of the projects get stuck at various levels in the system and authorities are equally responsible to ensure that a project is completed in time and buyers get possessions as per promised timeline.
Finally, the organized segment of Indian real estate industry is understandably positive about the bill as this will bring transparency and legitimacy for the industry and that will eventually open the door for quality domestic/foreign investments.
We, at UK Realty, remain fairly optimistic about the benchmark Act and the positive changes it brings along with it.
Authored by Mr. Dinesh Bansal - Co Founder – UK Realty
Benami Properties: The Crackdown Continues
What is a Benami property?
The word ‘Benami’ means ‘anonymous’ or ‘without a name’, in English. When a person purchases a property in the name of a proxy it’s called a Benami property. In most of the cases, the name of the person/s in records is/are different from the one who is purchasing it. In this kind of transactions, the person on whose name the property has been bought is called the Benamdar and the property is called Benami property. The person who pays for the buy is the real owner.
The dark side
As an old practice, to avoid taxation and evade interferences from IT department people invest and sidetrack their black money by buying Benami property. More than often the real owner/s of these properties is/are difficult to trace as they use fake identities to mask the odds. The Benami route is also taken by hawala channels to route black money very often. There are offenders who hoard the black income in cash and many of the tax evaders invest their illegal money in buying Benami properties. This practice disturbs the revenue system of Government and harms the growth of the state and the country.
What’s good and what’s not
Followings are the transactions which are not Benami:
Properties purchased in someone else’s name which don’t fall under the above categories may be termed as Benami. Under present Government majors steps are being taken to eradicate the black money system and at present strict actions are being taken against Benami properties.
Laws against Benami Properties
The first act against Benami properties came into existence in 1988 as the Prohibition of Benami Property Transactions Act, 1988.The Government of India decided to amend the act, a bill was introduced in the Parliament in 2015 and from 1 November 2016, it finally came into effect.
Under The PBPT act once a property is marked Benami by the concerned department a thorough investigation will be carried out and if found guilty the convict is liable to face rigorous imprisonment for 1 year to 7 years. Additionally, 25% of the property value at current rate will be charged from the Benamidar. If anyone furnishes false information about a Benami property, under the Benami Act he/she is prosecutable and may be imprisoned up to 5 years along with fine up to 10% of market value of the Benami property.
There are also provisions for confiscation of such properties without any compensation to the owner.
The Real Estate context
Unlawful real estate transactions took a huge blow when the historic Demonetization drive was delivered. Prime Minister Mr. Narendra Modi came down heavily on black money holders and naturally Benami property was the next in line. The act will certainly limit people from laundering their black money into real estate. The obvious aftermath of this would be better transparency in real estate transactions. Post Benami property act and RERA it may not be wrong to expect that there will be realistic price corrections and better accountability in Indian real estate space.
Authored: 9amstories editorial
Image Courtesy: http://img.etimg.com
Anuj Puri Launches ANAROCK Property Consultants Residential Brokerage, Fund & Investment Platfor
Anuj Puri Launches ANAROCK Property Consultants Residential Brokerage, Fund & Investment Platform
Fund will invest INR 300 crore in, Residential projects, targets USD 500 mn by 2020
Mumbai, 26 June 2017: Anuj Puri, former Chairman & Country Head of international property consultancy JLL India, today announced the launch of ANAROCK Property Consultants Pvt. Ltd., essentially rebranding JLL's erstwhile residential brokerage business which he acquired earlier this year.
Simultaneously, Puri announced the Firm’s real estate investment and fund platform, which will invest INR 300 crore in Residential real estate projects.
"We have chosen the brand ANAROCK with the motto 'Values Over Value' to reflect a business model and philosophy founded on the bedrock of Trust and Reliability," says Anuj Puri, Chairman - ANAROCK Property Consultants Pvt. Ltd.
"ANAROCK is the Group Brand, which will house multiple real estate services verticals. We will provide our regular residential advisory services which charges zero brokerage from our customers. Additionally, the Firm will operate a revolutionary business model of bulk-purchasing residential apartment inventory through a proprietary investment fund. ANAROCK will also provide debt, equity and mezzanine funding to residential developers. And this is just the beginning.”
Ashwinder Raj Singh, who continues as CEO - ANAROCK Property Consultants Pvt. Ltd. is currently enhancing the Firm's team of residential brokers to a Pan India headcount of 700 by the end of 2017.
ANAROCK’s radical and disruptive residential brokerage model fully enables supply, demand, and discovery through a digital platform, with transactions facilitated offline via highly-trained real estate experts. "Our unique, multi-pronged approach will significantly differentiate ANAROCK from all other players within the Indian residential property market," says Puri. "We are fully substantiating the Firm’s motto 'Values Over Value'."
ANAROCK’s Investment and Fund platform, which is targeting a capitalization of USD 500 million by 2020, currently houses two funds. ROF-I, with its recent investments, stands fully deployed at INR 161 crore and has already demonstrated successful exits.
ROF-II, for which INR 300 crore was raised in 2016, will invest into meaningful residential assets from an existing pipeline and its deployment will commence as soon as it completes the last leg of regulatory requirements.
The Fund’s key focus areas will be underwriting and asset management since in the current market dynamics and with the introduction of RERA and implementation of GST, delta returns and successful exits can only be achieved through constant monitoring and robust in-house asset management.
“We will redefine the way residential real estate transaction business is done in India,“ says Puri. “This company's brand is forged to withstand the test of time. ANAROCK is the merging of two words. As outlined by British mathematician Charles Howard Hinton, ANA is the fourth spatial dimension and symbolizes the Firm’s four core values of Ethics, Integrity, Transparency, and Trust. ROCK is the globally understood symbol of Solidity and Stability.”
With Anuj Puri's proven background and experience in strategizing real estate companies' success and growth in India, ANAROCK Property Consultants Pvt. Ltd. has set its sights on multi-dimensional growth as India’s premier digitally-enabled and customer-focused residential brokerage and services platform. Real estate history is being rewritten – yet again.
Courtesy: https://www.linkedin.com/pulse - Mr. Anuj Puri
Mr. Atul Chordia - Chairman, Panchshil Realty Talks On GST & Its Impact On Property Price
"We only have completed and near ready projects in our portfolio. For our near ready projects we will be paying GST at 12% but on the cost of construction. This for Panchshil is usually higher than the industry as we tend to use best-in-industry materials, much of which will fall under the 28% slab. Panchshil products are also known for their extensive use of global technology inside the residences, which will now come under a higher 18% slab.
For our completed projects and ready-to-move-in residences, GST will not be applicable.
However, taxes have little or no impact on buying decisions in luxury residential as HNI buyers are usually interested in global products, concept homes and prestige addresses like Panchshil Towers, Yoopune and Trump Towers among others.
The long-run benefits of GST in the sector are obvious. For long, quality players have been overburdened with the cost of tax compliance which will now ease a little along the value chain and help us pass on some benefits to our discerning customer base."
Looking Into The Crystal Ball: How RERA And GST Will Affect The Destiny Of Real Estate Developers
India’s real estate sector has rarely been out of the news lately, and for good reason. Demonetisation, RERA, Infrastructure Status and now GST have all left their mark. These regulatory changes are transforming the way we buy and sell our homes, leaving developers and homebuyers alike uncertain how best to navigate this changed business environment.
The proliferation of initiatives we have seen this year reflect the fact that the affordable housing challenge we face is finally receiving the attention it deserves from politicians and policymakers. Currently, there is a shortage of nearly 20 million homes across India. By 2030, 590 million Indians will live in cities, necessitating a further $2.1 trillion of capital investment in urban infrastructure. Without addressing this unprecedented urban housing shortage, growth will stifle, inequality will rise and social cohesion will suffer.
Encapsulated in Prime Minister Narendra Modi’s initiative to achieve Housing for All by 2022, this new regulatory framework represents an attempt to combat India’s affordable housing crisis. While this new regulatory framework has been positioned as a consumer-friendly set of policies, the changes will inevitably impact upon real estate developers. Deciding whether the rise of housing up the country’s development agenda is positive or negative for real estate developers, however, remains the subject of much debate.
Let’s start with demonetisation, which sent shockwaves through the Indian economy back in November 2016. As a sector, traditionally reliant on cash transactions, the real estate industry was particularly affected by the sudden withdrawal of certain bank notes. However, although consumers and investors held off transactions during the initial economic turbulence caused by demonetisation, the policy may yet provide a boost to the affordable housing sector in the long-term. This is because, prior to demonetisation, large developers were more focused on offering solutions in the premium segment of the market, since high demand was expected in this area.
However, the luxury and high-end segments of residential real estate have been hit the hardest by the recent change, as legal financing channels have accounted for only a small part of all transactions in this space. Instead, it is expected that there will be a decrease in demand from big ticket purchases mostly led by investors, to purchases of affordable homes by end-use customers through official channels, who now constitute almost 90% of aspiring home buyers. As a result of this, construction is increasingly shifting to the affordable housing segment.
Turning to RERA, rewarding transparency appears to be a theme running through the government’s recent policy changes. RERA’s primary goal is to address issues that have tarnished the industry with a bad name, including delays, price and construction quality. For example, the Act obliges the developer to keep 70% of project funds in a dedicated bank account to ensure that developers are not able to invest in numerous new projects with the proceeds of the booking money from the first project, thus delaying completion and handover to consumers. Concurrently, if the project is delayed, the developer is liable to pay the consumer interest at the same rate as that which the consumer is paying the bank.
For trustworthy developers that already deliver projects responsibility, safely and on time, these measures are nothing to fear. In fact, by curbing the actions of the minority of developers that currently do not sign up to responsible business practice, the act simply promises to level the playing field.
Such increase transparency will not only increase the demand from homebuyers who will be able to put greater trust in developers, but will also open up newer, and cheaper, avenues of finance as the industry’s credibility returns. In a market that has seen housing sales fall by 1% across eight major cities over the last quarter, such increased accountability should be welcomed by developers.
Like all new legislation, however, the act is not perfect. Many developers have raised the issue that government bodies are not made accountable for delays they may cause bynot issuing clearances on time, for instance, which then may impact upon thedeveloper’s ability to deliver a project on schedule. Provisions need to be in place to bring accountability to all stakeholders in the construction process, not just developers, if the industry is to transform its reputation fully.
RERA represents a positive step in restoring accountability, transparency and credibility to India’s real estate sector. For the majority of developers that have always conducted business in a responsible manner, it simply means business-as-usual.
Additionally, after a long wait, the government finally awarded infrastructure status to the long-neglected sector of affordable housing. By ensuring easier access to institutional credit, this decision has helped to reduce developers’ cost of borrowing for affordable projects, savings that in turn have been passed on to homeowners.
Alongside this supply-side incentive, the government’s PMAY scheme, which provides a credit linked subsidy to home buyers purchasing residences below 60sqm, has significantly reduced the costs of buying a house and expanded the possibility of homeownership to a greater number of families. With demand for affordable housing now set to increase by a further 25% in the coming years, PMAY has decisively contributed to the growth of this market segment.
Finally, the latest addition to the regulatory landscape, the Good and Service Tax (GST), promises to shock the real estate sector yet again. Described by the Economic Times as “the most revolutionary tax related reform to be seen in India”, the GST aims to simplify the current system of taxation.
Replacing the current complicated multi-staged tax structure, in which different taxes are levied by state and union governments separately, with a federal tax system that will create a single market in India; the benefits of this policy change for the economy as a whole are evident. Indeed, it is predicted that, over time, the new system will add between 2-2.5% to annual GDP. Lower priced goods, increased exports and an overall thriving economy will undoubtedly increase demand into the domestic housing market, as more families are able to save up to own their own home.
While the benefits to the economy as a whole will inevitably have favourable impacts on the real estate sector, the direct impact of the GST on the industry are less certain at this time. The final tax rate has not yet been confirmed and the effects of any change will only be felt in 2-3 years time. While many predict that GST will not increase the overall tax burden on the sector, the exclusion of stamp duty and other relative duties under GST has disappointed many industry analysts. It is simply too early to draw conclusions either way.
What is certain, however, is that the residential real estate market cannot be reduced to tax rates. Consumer sentiment is affected by a range of issues, of which the recent policies designed to restore a relationship of trust between developers and homebuyers should not be underestimated.
In this time of uncertainty, what is clear is that the new world of real estate we find ourselves in is increasingly transparent. The future of real estate is one in which the virtues of legitimacy and trustworthiness will finally pay off.
By: Mr. Rahul Nahar, Founder, Xrbia Developers Ltd.
Mulk Holdings, A $2bn UAE Based Conglomerate Invests 100 Crores In Mirage Ceramics.
UAE-based conglomerate Mulk Holdings has invested Rs 100 crore to pick 50% stake in Mumbai-based Mirage Ceramics. The Indian Ceramic Tiles industry does a humungous business of about INR 25,000cr per annum.
With the support of a handful of respected brands, powering a large chunk of this business, and numerous upcoming ones, the ceramic tiles sector is one of the most dynamic sectors in India.
Said Mr. Shrikant Khadilkar, Chairman, Mirage Ceramics, “We have built Mirage Ceramics brick by brick, from a company with a single store to having over 450 dealers today, in all parts of the country. We’ve been pioneers who have pushed the envelope in the Indian ceramics sector. Now, we are re-inventing by introducing two distinct product lines. The first will be an elite collection which introduces Gold, Platinum and Rose-Gold finishes for the truly bespoke spaces. The second will be an affordable line that is more suitable for the immense demand in India’s thriving real estate, hospitality, healthcare, housing and retail sectors. With this investment, we will reach further into India’s deep pockets, providing them with classy, affordable tiling solutions that they didn’t think were possible. We are elated to join hands with Mulk Holdings, whose eye for identifying the right sectors and companies all over the world is laudable. We are certain that their global presence and expertise will benefit us a great deal and help us expand globally.”
Mirage Ceramics, a young 8-year old company that is managed by industry stalwarts with over two decades of experience, was the first Indian company with its own production setup of Glazed Vitrified Tiles (GVT). Later, with the successful replication of marble on to tiles and the introduction of the metallic finish, Mirage became a respected name of the ceramic industry in India.
For a long time, ceramic tiles were perceived as hygiene products that served a basic need for cleanliness. However, Mirage completely changed that expectation with its tiles, which, in addition to being high on utility, came in a variety of finishes such as metallic, satin, matt, high gloss, stone, slate, wood, gold, silver, marble, lappato and rustic, thus making them the perfect for indoor as well as outdoor decoration. Over the years, Mirage has found its way into India’s most prestigious addresses, helping to sheen up classic and modern spaces.
Mr. Shaji Ul Mulk, Chairman, Mulk Holdings said, “Mulk Holdings is always on the lookout for companies that are dependable, brave, innovative and in a segment that has growth potential. Mirage Ceramics fits the bill perfectly. India is globally ranked number 3 in production, and it’s only going to go higher. We expect Mirage to be a major player in this growth.
The local availability of raw materials, skilled and unskilled manpower, a great domestic demand and a bullish scope for exports give us the confidence that Mirage Ceramics is going to go from being successful locally in the short term to being a global hit in the future. It’s an exciting investment for us and we have worked together on a detailed plan to make sure that all the resources are utilised judiciously.”
Mr. Shaji Ul Mulk further added, “India is a very lucrative market for us. The economy is booming and we look forward to an ongoing investment here over the next five years, during which we will be investing more than Rs. 1,000 crore in the Country”.
With a portfolio of 18 companies across 11 countries Mulk Holdings has business interests across interior and exterior designs, metal composites, plastic industries, power generation, healthcare, real estate and solar energy. Their flagship brand, Alubond, a manufacturer of building façade panels, has a sales and distribution network in over 100 countries.
The government’s focus on easing policies to aid businesses seems to be off to a promising start. The domestic growth is projected to be at 15%, ahead of the global standard of 11%. In the past 6 years itself, the ceramic sector has seen an investment of over INR 6,000 crores and the next few years are likely to see this figure jump up.
With Mulk Holdings’ major investment in Mirage Ceramics, the world’s attention has been drawn to India’s ceramic tile industry. And it promises to yield results faster than one would expect.
The Global Indian Realty Summit 2017, Mumbai To Be Hosted By News18.com & St. Angelo’s VNC
Indian real estate industry is witnessing a wave of changes since demonetization shook the nation last year. In the wake of these changes, News18.com's third edition of Global Indian Realty Summit (GIRS) 2017 definitely has deep significance. GIRS, 2017 is being held in association with St. Angelo's VNCT Ventures and BMW Authorized Partner - Infinity Cars on July 27th at Four Seasons, Mumbai.
The summit will enlighten attendees on the consequences of the new reforms on the real estate sector in the country.
GIRS Mumbai will bring together industry experts on a common platform and meaningful discussions on various related topics are expected to take place. Attendees will get to interact with expert speakers, share knowledge and experiences about the changes that are taking place in the wake of RERA/GST and other reforms.
The panel will have industry experts/practitioners such as Nagu Chidambaram (MD, St. Angelo’s VNCT Ventures), Agnelorajesh Athaide (Chairman, St. Angelo’s VNCT Ventures), Gulam Zia (Executive Director - Advisory, Retail & Hospitality, Knight Frank India), Srinivasan Gopalan (CEO, Ozone Group), Avikshit Moral (Partner, Juris Corp) and Harsh Roongta (Chartered Accountant & SEBI registered Investment adviser). Renowned real estate expert, Manisha Natarajan, Group Editor, Real Estate & Urban Development of the Network18 group, will be the moderator for the panel discussion at the GIRS Mumbai.
To debate on the ‘New Normal in Indian Real Estate,’ Mr. Agnelorajesh - CMD of St. Angelo’s VNCT Ventures will speak on the changing real estate climate in the country.
Commenting on the success of Global Indian Realty Summit 2017, Manish Maheshwari, CEO, Network18 Digital said, “With GIRS peddling up its presence now in Mumbai, we at News18.com aim to build a platform to facilitate insightful conversations between industry experts and investors looking to invest in Indian real estate. With the current structure being reformed post GST implications, there are factors that need consideration and our esteemed panelists will help us understand the workings better.”
The unique element of GIRS is the integration of the ‘Inspiring Conversations’ segment that draws out insights of successful entrepreneurs. At Mumbai GIRS 2017, the session will have Dilip Chhabria - Founder of DC Designs.
About the speakers:
Agnelorajesh Athaide (Chairman, St. Angelo’s VNCT Ventures): A promoter of social entrepreneurship whose powerful and popular initiative www.inspiringconversations.in essentially encapsulates his passion and beliefs.
Nagu Chidambaram (Managing Director, St. Angelo’s VNCT Ventures): He is also the Director - Finance and Project Management for all the real estate initiatives of the group, and is a recipient of the National Award 2003 - Best Entrepreneur of the Year.
Gulam Zia (Executive Director, Advisory, Retail & Hospitality, Knight Frank India): With over two decades of experience across the entire gamut of real estate services - Zia is a well-known personality in the industry.
Srinivasan Gopalan (CEO, Ozone Group): He has formerly served in the capacity of the COO + CFO with The Wadhwa Group. Having joined the Ozone Group in mid-2014, he has taken the company to a new height in just 2 years
Avikshit Moral (Partner, Juris Corp): He is enrolled with the Bar Council of Maharashtra & Goa and has been practicing law for over 9 years now. He is involved in drafting and negotiations of various commercial contracts, advising on society law related matters and advising various high net individuals on issues pertaining to personal law and inheritance.
Harsh Roongta (Chartered Accountant & SEBI registered Investment adviser): He works as a financial coach & counselor and is active in the area of financial awareness and financial literacy.
Top 7 Things To Consider Before Investing In Luxury Property
Luxury homes are considered a good option for both investment as well as dwelling purpose. In India, the demand for luxury properties has seen a rise especially among high net-worth individuals HNIs and non-resident individuals NRIs.
If you’re paying big amount for your new luxury home, you want to make sure it’s money well spent and if you are planning to buy a luxury home, it’s likely that you want to look into every minute detail to ensure that everything is exactly as you had imagined your home to be. One such important detail is to evaluate the developer’s credibility. Many developers offer specifications like private pool, gym, smart systems, security and safety and theme based infrastructure.
Here are tips to help you make the right purchasing decision that will get you the property you want at a fair price and will leave you with no regrets.
Not everyone can afford a luxury home, but if you are able to, you should absolutely take the time and make the effort to ensure the home you buy is the right one for you. Get familiar with the luxury home buying process, understanding housing trends in various neighborhoods, and practice some patience as you go from house to house in search of the perfect home.
By: Gunjan Johar | Real Estate Analyst & Home Decor Blogger
Why HNIs And NRIs Should Invest In Indian Office Space?
Non-Resident Indians (NRIs) and High Net worth Individuals (HNIs) have always considered India as the most preferred destination for investment. This is especially true in the last few decades where there has been a significant growth in number of NRIs all across the globe, they continue to make it big and the lucrative deal of real estate investing attracts them to India.
Today's NRI's are buying commercial properties for investment. Of course, HNIs also continue to plough huge amounts of money into high-ticket commercial properties in the quest for yield. Private bankers and wealth management firms confirm that their clients have actively started investing in commercial properties.
There are different kinds of commercial properties that are available like retail and office spaces. Investors looking at retail space can now consider affordable options in free-standing high street outlets and shopping malls. Commercial Office segment offers several advantages as compared to residential segment. The rental yield is currently higher at 7-9% p.a. compared to the 2-3% p.a. yield that the residential segment offers.
There is great equilibrium between demand and supply in the commercial segment and rentals are inching up in most leading metros. As the economic recovery gathers momentum, the demand for commercial space will increase further. Another advantage for investing in commercial property for HNIs and NRIs is to run their own venture when they return to India. This segment holds scope for both capital appreciation and regular income through monthly rentals.
Investing in commercial space requires much larger investments than residential and this is why commercial real estate is seen as an asset class where only HNIs or NRIs investors can participate. Composed FEMA Policies and associated laws by RBI regarding property purchase by NRI's have also reinvigorated the interest of NRI's in investing in the country. This has proved to be a major factor in driving the demand for commercial real estate in the tier 1 and tier 2 cities of India.
Investing in a property in India helps NRIs and HNIs to reap regular rental returns. A large number of young NRI’s are making smart investments by buying properties in India and making money by putting these out on rent. India’s growing working population makes it one of the most favourable countries for real estate investment for rental purposes. There are many locations you can explore for investing in offices, some of them recommended by real estate consultants include Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad and Chennai.
DELHI-NCR :- It is one of the most important investment destinations in the country, also the biggest in terms of stock availability. Due to the large supply, it also has a high vacancy level. Investing in a pre-leased asset may be the best option, as it will generate revenue from the first day. Investors can also gain from the periodic increase in rentals that can be defined in lease agreements. Sohna Road in Gurgaon and Noida-Greater Noida Expressway have emerged as new office hubs and offer good opportunities.
MUMBAI :- The country's financial capital is another big market for office properties. IT/ITeS and BFSI (banking, financial services and insurance) sectors account for more than half the occupied office space. Like in most metro cities people in Mumbai too are moving from central locations to emerging areas for cheaper and better offices. Locations such as Lower Parel and areas as Andheri-Kurla Road and Goregaon have seen a lot of transactions as they offer good connectivity and high quality spaces at much lower prices.
BENGALURU :- Bengaluru is the country's IT capital. The city's office market has so far been driven by demand from IT companies. Though a lot of manufacturing, automobile and biotechnology industries are also present in the city, IT sector is the dominating force and accounts for 57% of the occupied office space. This may be a good time to invest in offices in Bengaluru due to the potential for capital appreciation, provided the investment is made in the right asset. Areas like Indiranagar, Koramangala, Airport Road and Old Madras Road, will continue to be popular with companies looking for prime locations close to residential areas.
PUNE :- Pune is again home to many IT companies. The growing presence of IT companies is fuelling demand for quality offices. This has led to development of new locations in suburbs. Pune is now an important destination on the Indian office market map. Kalyani Nagar, Airport Road, Vishrantwadi, Kharadi, Yerwada and Baner offer a lot of big and quality spaces. These are well-connected with other parts of the city and have the lowest vacancy rates.
HYDERABAD :- Hyderabad has developed as a technology hub. It has witnessed large scale infrastructure development and rapid growth in locations surrounding the Hi-tec City and the township at the core of the state's IT boom. The city's business landscape was dominated by engineering and trading companies. SBD office markets of Banjara Hills and Jubilee Hills are preferred markets for investment as they have a lot of mixed-use projects.
CHENNAI :- The capital city of Tamil Nadu is one of the important destinations for the office segment. Chennai is a hub for automobile, electronics and apparel industries. The city's industrial growth is aided by two major ports-Chennai Port and Ennore Port which make it easier to export and import goods. In terms of good returns from your investments in office units locations like Anna Salai, RK Salai, Nungambakkam, Greams Road, Egmore and T Nagar, Mt Poonamallee Road, Porur and SBD OMR are fruitful. Chennai is the only city out of the six discussed here, where central business locations are expected to beat secondary locations in terms of investment returns.
As REITs compliant currently, the implementation of RERA act will result in more compliant spaces in near future. With favorable rupee movements against the dollar, Non-resident Indians (NRIs) are returning to the commercial real estate market, to cash in on the opportunities in Delhi-NCR and other markets. Expanding businesses and the emergence of India as an attractive destination, is leading to a growth of interest for both HNIs and NRIs. Increasing purchasing power, combined with government incentives that are looking to attract foreign investors make this the best time to invest in the country’s commercial real estate market.
By: Gunjan Johar | Real Estate Analyst & Home Decor Blogger
Smart Cities: Is The Need Of The Hour
Prime Minister Narendra Modi’s vision “Digital India,” has set an ambitious plan to build 100 smart cities across the country. PM Modi in his speech quoted, “Cities in the past were built on riverbanks. They are now built along highways. But in the future, they will be built based on availability of optical fiber networks and next-generation infrastructure.”
India’s Smart City plan is part of a larger agenda of creating Industrial Corridors between India’s big metropolitan cities in India. It is hoped that many industrial and commercial centres will be recreated as “Smart Cities” along with these corridors. About 25–30 people migrate every minute to major Indian cities from rural areas in search of better livelihood and better lifestyles. With this momentum, about 843 million people are expected to live in urban areas by 2030. To accommodate this massive urbanization, India needs to find smarter ways to manage complexities, reduce expenses, increase efficiency and improve the quality of life.
A smart city is characterised by an urban region having modern technological infrastructure, access to smart energy, smart mobility, smart public utility services and ultra fast communication network. The smart city benefits everybody - its residents, business persons and the government. These cities are generally considered the engines of economic growth, such a huge population in cities would be the biggest market in the world and may be the source of 80 per cent economic growth of the country.
This amount of huge population would also require accommodation, jobs, civic amenities, efficient governance, fast communication means, speedy and hassle-free transport system, power, water supply and good quality of life. The Smart City Mission aims to provide the same to Indians.
How Smart Cities will Impact the Indian Real Estate?
The growth of a Smart Cities can give way to massive opportunities to the real estate market. The tech sector is in full bloom, so developing districts and supporting businesses in this segment will create jobs and attract professionals, which mean housing demands will increase. Population growth will have the same effect. Who wouldn’t want to move to a city with high-paying jobs, great public transportation, efficient communication with officials and modern resident services? Growing the standard of living comes naturally from smart cities.
Another aspect is that smart cities have lower operating costs, which means significant amounts of money can be redirected to other projects in real estate. Finding additional resources to invest in the city is always great news for developers who often use area amenities to market their properties. Cities applying new technologies or policies for a better quality of life will always be relevant, that attracts capital from real estate investors.
A smart city project, along with real estate, also entails many possibilities across sectors like Information Technology, architecture, interiors, and other application designers who will be a part of the project.
Developers will get an amazing opportunity to offer new projects in the upcoming smart cities which boost the regional, social and economic infrastructure. Presently, the real estate sector contributes about 7% to India’s GDP. With the vision of building 100 smart cities, many expect this share to increase to 10-12 percent by 2030.
Smart cities will not only improve the quality of life for millions of Indians, but also create more jobs facilitating economic development and thus, more investment in real estate. It will also jump start to a capital from private enterprises and developers in real estate, towards joint ventures within the smart cities. The Smart Cities Mission is being accompanied by simple and transparent real estate transactions like RERA.
This will facilitate lesser corruption and better transactions in real estate. If the government policies are favourable, many real estate companies within and outside India will invest in the future smart cities projects. This move will help bring a phenomenal growth in promoting modern living for the Indian community. It is a win-win situation for all!
By: Gunjan Johar | Real Estate Analyst & Home Decor Blogger
How GST Will Affect The Commercial Establishments
India is an evolving market and evolution has been a key driver for growth. The last decade has witnessed a huge surge in non-traditional businesses, largely dominated by domestic startups and international e-commerce giants. For new businesses and startups, it becomes impossible to navigate through various direct and indirect taxes.
Constant changes to taxes like Service Tax are making things more complicated. Apart from its current efforts to bring transparency into the country’s domestic economy, the government has been working towards bringing transparency into the real estate sector as well including commercial spaces. Several steps taken by the government in recent times - from the Real Estate Regulatory Act (RERA) and the Goods and Services Tax (GST), to Real Estate Investment Trusts (REITs) - have all been implemented for improving the ease of doing business in this sector, as well as for increasing investor confidence.
The spread of initiatives we have seen this year reflect the fact that the commercial spaces facing multiple challenges of direct & indirect factors are receiving attention it deserves from the government. And, the Goods and Services Tax (GST) has been India’s one such biggest structural reform in decades. The landmark regulation will remove a plethora of indirect taxes and establish India as a single unified market.
Whilst this new regulatory framework has been positioned as a consumer-friendly set of policies, much has been said on the precise impact of GST on India’s commercial establishments as well as real estate.
As far as implementation of the GST is concerned, the onus lies on the Centre and states to ensure a smooth transition to the goods and services tax, which is the biggest indirect tax reform to create a unified market. Malaysia, which introduced GST two years ago, educated businesses and customers, but that did not suffice.
India should be prepared better for the switch over to avoid any chaos. So, rules must be clear, and the tax administration well-equipped to handle GST. Ideally, the new levy should be rolled out three months after the publication of GST rules to make transition smooth for businesses.
A single indirect tax which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels. That said, it should be remembered that the favorable effects of this new taxation regime will become evident only within 2-3 years of its implementation.
GST is a game changing tax reform, if it delivers on its promises. Let us welcome the GST with a positive note as it has something for all stake holders. Single uniform tax across entire country will make transactions much smoother & clearer.
By: Mr. Mukesh Kumar, SVP, Infiniti Mall
Why Hire A PR Agency For A Real Estate Event?
In the world of information and publicity no industry or business can ignore a proper PR strategy when planning a corporate event.
Event is an important component of a brand’s marketing strategy and provides a great opportunity to highlight a brand’s image, marketing objectives and reputation.
Irrespective of the purpose for hosting an event, it’s a wise call to include public relations early in the event planning. There is more than one reason why PR will play an important role to make any kind of event, a success.
Public relations, be it the traditional channels or new age manners, can effectively secure attendance and even generate sales. A proper professional PR agency will also help obtain sponsors and advertisers, create the proper kind of buzz within the industry and influence media to cover the event if that’s one of the objectives.
Here is how an event should be planned with the help of PR tactics.
It’s important to develop a PR plan around the event well in advance. After outlining the strategies and channels for communications the PR agency will start inviting the media from across the channels. For a real estate brand, this phase of the PR exercise can be used for brand awareness; key messages can be conveyed to the various target audiences in a professional manner.
Pre Event exercise is an excellent way to generate brand awareness and create network of contacts.
Without the help of a professional PR agency, it’s a very difficult task for a brand to ensure maximum quality turnout. No matter what kind of event we are talking about, be it a Symposium or a Seminar, a Project launch or a simple Meet-and-Greet gathering, presence of a PR agency can help the objectives, tremendously.
When a PR agency approaches the media and other influencers for an event, the brand’s visibility improves and going forward that helps to generate business.
A professional PR agency will manage the media effectively on the day of the event. It is very important that the media houses that are present at the event are pleased and impressed suitably so that the brand gets the coverage it deserves.
Another critical role a PR agency plays at the event is to take interviews/bytes for content generation purpose.
A professionally managed event helps a brand greatly to build brand awareness and generate new business.
The role of a PR agency doesn’t end with the Event, it goes well beyond it. The agency will make sure the Press Release & Media Kits are mailed to the proper database. PR agency also helps writing the releases and preparing the media kit.
Another important role of a PR agent is to circulate event pictures and other important documents such as Media Dossier etc. to not only the attendees but also other invitees who couldn’t attend the event.
By Sangeet Hemant Kumar
Director, RealtyCORP Communications
Image courtesy: cdn.businesscollective.com
Smart Homes For The Future Generation
In the ever-evolving technology landscape, everything is getting smaller. From the pictures we take to the music we listen to, many of our most treasured belongings can now fit into the palm of our hand. With urbanisation, population growth and rising house prices creating major housing challenges in cities across the globe, our homes too now face “the big shrink”. Like their technological counterparts, however, the new era of micro-homes can mean smarter, more efficient and even more enjoyable living.
The key to ensuring small living spaces works is good design. Transformable furniture that adapts to different uses, clever space maximisation and access to outdoor space all have their role to play. If designed successfully, smaller houses can provide both comfort and affordability. Additionally, with 66% of the World’s population in 2050 expected to live in urban areas and cities already buckling under the current housing shortage, micro-homes are increasingly becoming necessary to cope with the population challenges of the future (United Nations World Prospects Report, 2014).
India’s housing challenge is particularly concerning, with an estimated shortage of 20 million homes across the country (BBC, 2015). Policy makers have finally taken notice, with the headline slogan “Housing for All by 2022” displaying the government’s new commitment to tackle this acute shortage. While the scale of the task at hand is immense, smartly designed microhomes can provide a vital piece of the puzzle in ensuring this rhetoric becomes reality.
Having long pioneered affordable housing in India’s largest cities, Xrbia’s transition into compact housing solutions has been a natural step forward. One of our most recent developments, Chembur Central, has been designed with the help of the renowned architect, Hafeez Contractor, to provide state-of-the-art compact homes for the next generation of homeowners.Alongside excellent space planning that has left no space left underutilised, the apartments at Chembur central have been kitted out with innovative space-saving furniture. The beds, for example, conveniently fold into the wall, transforming into a spacious play area for children. Enabling rooms to adapt to different uses ensures the homes feel comfortable, not cramped, throughout the day.
Xrbia understands that it is not just the design of the buildings, but also their surroundings that make people feel at home. For this reason, the project combines innovative compact homes with generous communal infrastructure to provide ample breathing space for residents. Indeed, the impressive array of amenities is more typical of a five-star hotel than an affordable housing project.
The vast array of facilities includes a 150-meter-long swimming pool, a gym, a jogging track and a rock climbing wall. The project similarly caters to those that enjoy a more relaxed pace of life, with an orchard walk, artificial beach, sky garden and meditation room creating an oasis of tranquillity amidst the bustle of city life. With ample green space on your doorstep, residents never have to feel constrained within their apartments.
The 5,000-home development offering two types of one-bedroom apartments of 186 sqft and 247 sqft, as well as a two-bedroom apartment of 306 sqft, has unsurprisingly attracted a lot of interest from millennial buyers. For this generation, well-designed compact spaces are becoming increasingly popular as new buyers crave flexibility, convenience and affordability in every aspect of their lives.
Of course, the issue of cost is unavoidable, and Xrbia’s innovative compact home design has injected some much-needed affordability into the real estate market. By choosing to live in a compact home, homeowners can achieve the convenience of city centre living at a reasonable cost, while answering society’s need for greater energy and space efficiency.
A revolution is taking place in the way we live, and compact no longer has to mean cramped. Skilfully designed micro-apartments that combine adaptable interiors with spacious exteriors can ensure that smaller homes provide just as much comfort and privacy as their bulkier predecessors, and all for a more affordable price.
By Mr. Rahul Nahar, Founder, Xrbia Developers Ltd.
Home Buying Essentials For Newly Married Couples
Marriage is a life changing decision for anyone.
No matter whether you had planned for it for long or it happened in a jiffy, life will surely throw unexpected challenges at you after you take the plunge. Finding and doing up your first home is one of the biggest tests you would face!
We shall try to help you with a few quick and simple tips; hopefully this makes your struggle a little bearable.
So, plan ahead, do your ground work right and enjoy worry free marital life.
Welcome to your happily-ever-after home!
Authored by 9amstories.com Editorial
Cheerful Home For The Singletons
Shine till the bachelorhood lasts!
Well, we’ve had enough of these internet humors about being single and happy. We all know how difficult it is to manage a home on our own, how tiring it can get at times. But keeping that aside staying alone has its own pluses such as living on our own terms, being able to alter/modify anything and everything in our house, not having to answer anyone about coming late/sleeping late etc. etc…
A bachelor’s pad is often imagined to be an untidy cramped space, stinking of unwashed cloths and utensils – gloomy, littered and shabby. If you are living alone in a personal space, please ask yourself whether it has to be like this? How difficult it would be to follow these simple tips and live in a hearty, healthy and bright space you can call home!
If you can’t afford a designer to do up your space, try these DIY tricks -
Authored by 9amstories.com Editorial
Young NRIs & Real Estate Investments
Home, sweet home!
Indian real estate is going through a plethora of changes and reforms as part of its growth. In earlier decades Indian real estate had a bad name of being unorganized and murky but things are changing for better and a large contribution to the image transition of the industry has been from Indian corporate and NRI investors, many a times the young investors.
After all owning a home in India is important for young NRIs, for one simple reason, to stay connected to one’s root.
Gone are those days when we would see people above 50 only buying properties, with the help of their life-long savings and retirement funds. Today more young people are investing in properties in home countries owing to the disposable income and exposure to a global lifestyle. Also, today’s generation has better understanding of various financial gains possible from real estate investments. On top of that, owing to the growing population of women professionals, numbers of dual income families are on the rise. Last but not the least, the younger lot puts a lot of importance on how their peer groups look at them and hence real estate investments give them a strong sense of achievement.
Places & purposes
Studies and researches show that majority of the young NRIs fall in the age range of 18 to 35 years. The biggest reason being better home loan benefits for younger buyers. City wise, IT hubs like Bangalore, Hyderabad are among their choicest destinations while Mumbai remains high on their priority as well. Chennai, Pune, Delhi are among the other favorite cities for the young investors. A large section of the buyers are investing in residential properties for their personal use, mostly for their parents and extended families back home. Many are investing for future financial security. The majority of the buyers are choosing homes falling in the affordable range i.e. between 10 lacs to 1 crore.
In cities like Mumbai, Delhi-NCR etc. where the rental rates are going through the roof, investment for steady rental income remain a lucrative option for the NRIs. With the working population migrating to metro cities in India, demand for rental accommodation is here to stay. Young NRIs are surely making intelligent move by purchasing properties in Indian cities and leasing out for steady monthly return.
Affordability is one of the main driving factors for the young NRIs to invest and due to the difference in the value of currencies; investment in Indian real estate is a profitable proposition for them. That’s why developers focusing more in affordable segments are increasing in numbers. Market is getting increasingly favorable because of Government policies like RERA and reforms like upcoming GST etc. Henceforth, the market of NRI investments is expected to show upward trend only.
Authored by 9amstories.com Editorial
A Good Credit Score Ensures Better Home Loan Eligibility
Home loan & repayment ability
A home loan helps one to achieve one of the biggest dreams of his life; that is buying his dream home. A home is much more than just four walls for a common man; it’s one’s biggest asset, security for family and a shelter for life. For an end user, lot of emotions are involved with a house, hence for every common man purchasing a house is a big decision.
A home loan comes as an aid to fulfill one’s home buying dream but at the same time, one needs to plan his finance meticulously to be able to repay the loan within the predetermined time. Therefore, it’s very important for everyone who’s taking a home loan to assess his repayment ability. Repayment ability is mainly governed by a number of criteria such as one’s income, age, expenses, assets, number of dependents, repayment history etc. Credit score which reflects one’s repayment history is a decisive factor for one’s loan eligibility.
What is a Credit score?
A Credit score is an indicator of one’s creditworthiness. Roughly it reflects the willingness of one to repay the loan in time. The value of a Credit score normally varies between 300 and 900. Credit score is calculated on the basis of one’s all time Credit history, all secured and/or unsecured loans and any other debts if any.
A high Credit score of a customer is an assurance for a lender that he can comfortably repay the home loan. Different lenders have different cut-off of score for deciding the home loan eligibility. For example, for a 50 lacs home loan amount, HDFC and ICICI bank have cut-offs of 640+ while non-banking financial Institutions (NBFCs) are more flexible and lenders like Indiabulls or DHFL has cut-offs of 550+.
Though cut-off rates vary largely depending on various other factors, it can safely be said that scores in the range of 700-750 are regarded as pretty good and scores above 750 are considered to be excellent. CIBIL data says 80 per cent of the loans that get approved have a score above 750.
Source for credit-score cut-off data: Paisabazaar.com | the numbers are purely indicative
Benefits of a good Credit score
Other deciding factors
Interestingly though, Credit score is not the only parameter lenders consider before loan approvals. Loan approval and the interest rate also depend on loan amount, payback tenure and the borrower’s employment status. One’s current income source and employer make a good difference even if he has a relatively lower Credit score based on past records.
For a low Credit score the lender may reduce the loan to value ratio (LTV) and may settle for a higher interest rate. Typically NBFCs would be a better idea for someone who has a low Credit score and is seeking for a home loan; however one should note that NBFCs charge higher interest rates as compared to banks.
Improving loan eligibility
It’s a better idea not to go to a mainstream bank if one’s Credit score is below than 650 before working out a recovery plan. Once can always better his score by
5 Proven Ways To Boost Your Luxury Home's Resale Value
Are you planning on selling your home in near future? To get the most value from your sale, you must make your home stand out in the crowd. Investing in few cost-effective renovations or improvements can make a big difference in how quickly your home sells and the price that buyers are willing to pay.
Here are 5 ways to improve your home before you put it on the market.
What buyer's see when they first drive by your home is tremendously important! Make planting a priority and seek expert advice on the proper placements and care of your trees and your porch area.
Re-do the Bathroom:-
Reworking bathroom is a great way to add value to your home. There’s plenty to be done to refresh a bath, especially if it’s been neglected compared to the rest of the house. Even if you have a small bathroom, adding new lighting or extra storage is possible.
Upgrade the Kitchen:-
Most Real Estate experts would agree that updating the kitchen will provide the greatest return for the money invested. Small kitchen improvements such as adding colour with a new backsplash or transitioning to new stainless steel appliances will make a big difference to an outdated kitchen.
Let the Light In:-
Outdated light fixtures or poor lighting can take attention away from your home’s most attractive features. When you’re replacing fixtures, don’t forget to swap old light bulbs for ones with a higher wattage. You want buyers to be able to see all of the highlights when they walk through your home and if you’ve got dim lighting, they may be missing out on some key selling points.
A fresh, crisp paint colors in modern neutrals shows off your home to best advantage. Just be aware that the bolder your choice, the more likely it is that it won't agree with someone. An overly bright or badly chipped exterior paint color may need refreshing too, so don't stop with the indoors.
By the end of your efforts, you’ll be confident that you’ve done everything in your power to boost your home’s value and attract buyers. It’s also helpful to seek out the expert opinion real estate agent before you start tackling unnecessary tasks.
A good real estate agent will know exactly which of these tasks should be prioritised, taking your local market competition into consideration.
Author : Gunjan Johar | Real Estate Analyst & Home Decor Blogger
Real Estate Industry Is Poised To Witness An Upturn
In a special discussion with 9amstories.com, Niranjan Hiranandani, Founder and MD, Hiranandani Group & MD, Hiranandani Communities, expresses his opinions on current real estate scenario and on his new responsibility: President, NAREDCO (West)
Please let us know your perspective on Indian real estate market?
Real estate, as an industry, witnesses business cycles, and market indications are that it is poised to witness an upturn. The festive season which will start in a couple of months should define positive sentiment. This ‘positive trend’ began in 2015, and we have seen it grow through 2016 so far – and it should continue its growth through the rest of 2016.
To what would you attribute this ‘positive trend’?
A major role in the growth of positive sentiments in 2016 is the Real Estate Regulation Bill being passed by Parliament and becoming law; and as a result, I foresee increased credibility and positivity, going into the second half of 2016. These are among the reasons why we see this ‘positive trend’ in Indian real estate.
Which segment is driving this ‘positive trend’?
This is being driven by demand for commercial and office spaces, which started picking up in second half of 2015. This has continued its growth story through 2016. As Indian real estate trends show, growth in Commercial Real Estate has a cascading impact on residential realty; and we are witnessing this slow pick-up and increased off-take of residential real estate too.
Does it mean that there is a co-relation between commercial and residential?
I look at the positive aspect driven by commercial real estate and its growth – corporate entities are expanding and consolidating, and they are also relocating – for example, corporate entities across Mumbai and suburbs are picking up space for immediate use in locations like Thane as also booking space from a future perspective in locations like Panvel. This has resulted in enhanced off-take of commercial realty across 2015 and in 2016 till date. I believe that the momentum of commercial real estate demand will provide will also positively impact demand for residential real estate in the vicinity of these commercial properties.
You are the Founder and First President (West), NAREDCO – you were President of MCHI-CREDAI some years ago. Please explain what NAREDCO is?
The National Real Estate Development Council (NAREDCO) is a body representing stakeholders in Real Estate. It works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India. The Maharashtra chapter was set up last year; I am the Founder and First President, NAREDCO West.
Tell us something about the NAREDCO National Convention and when it is being held?
The National Real Estate Development Council (NAREDCO) 13th National Convention will be held in New Delhi on 19-20 August, 2016. “The Chief Guest of the Convention will be Mr Venkaiah Naidu, Hon’ble Minister of Urban Development, Housing and Poverty alleviation and Information Broadcasting, Government of India. This National Convention and Exhibition will provide a fillip to the real estate sector.
What does the NAREDCO National Convention seek to achieve?
The main objective of the Convention is to deliberate on the existing real estate scenario and prepare road map for various legislative, regulatory, administrative and financial reforms. The thrust of the Convention would be on promoting development of the real estate sector, apart from discussing various aspects associated with ‘Housing for All by 2022’, the initiative of Prime Minister Narendra Modi.
Why is Housing for All by 2022 important?
It is simple – consider the fact that the Government is targeting construction of 6 crore houses by 2022; 2 crore houses in urban areas and 4 crore houses in rural areas. The Convention, with a view to making ‘Affordable Housing’ a reality, as also building Smart Cities and rejuvenating urban infrastructure, will provide an opportunity to all stake holders to deliberate the challenges the sector faces, and evolve strategies to accelerate the pace of growth.
What do you expect from the Convention, and is it just about knowledge takeaways?
It’s a common platform where stakeholders will share problems and suggest solutions. Speakers at the Convention will include leaders from the Government, academia, real estate industry and financial institutions who have international exposure and experience. Along with the Convention, the ‘National Real Estate Scroll of Honor 2016’ will honor meritorious industry players and associates for their outstanding performance, contribution and innovation. With the aim of furthering the growth of the real estate sector, an exhibition to display new properties, technologies, products and materials for the benefit of the participants will also be organized at the same venue.
Real estate is poised to witness an upturn.
Raju Kanchwala, CEO & MD Of JP Infra Shares His Insights On Real Estate Ecosystem Of Navi Mumbai
Q. According to you how is the residential real estate market picking up in Navi Mumbai?
We are noticing steady demands in residential segment, especially in Navi Mumbai region with a few exceptions like Palm beach Road, Koparkhairane due to availability of a wide range of properties in the vicinity. We have seen a rise of 2 to 14% in demand on quarter to quarter basis.
Q. Which projects have you launched recently and how are the responses till date?
We launched a project in Taloja Kharghar annex, which is a theme based project, with top-class amenities. We received a phenomenal response on launch and seeing a 2% increase in demand on quarter to quarter basis.
Q. What is product expectation from consumers for your upcoming developments?
The decision making parameters for purchasing properties have changed a lot in recent times.
In today’s time, a customer considers a lot of things before he/she makes a decision, such as return on investment, connectively, better carpet area, amenities, availability of parking space and good payment plans.
Customer looks at buying home with committed timelines for possessions.
We have noticed these changes and are continuously evolving keeping them in mind.
Q. As a CEO of the organization, what business goals you have set for your brand in next 3 years?
In next three years we will like to hand over the keys as per our commitment and a few ambitious projects are in line, which will be set new landmarks in the industry, not just in Navi Mumbai but globally.
Q. If you could give any advice to our readers who are planning to invest in residential property what would it be?
I believe that today is the right time for a family to invest into their dream home. Today homebuyers and investors have best of the offerings, in terms of prices, in terms of choices, in terms of payment plans.
I would say "Buy Now".
Affordable Housing Without Compromising On Quality: Cj Group & Navi Mumbai Real Estate Landscape
World’s largest planned city, New Bombay a.k.a Navi Mumbai is the new hotspot for real estate roar after Mumbai. While the city of Mumbai is getting crowded with each passing day, Navi Mumbai is becoming more popular as real estate destination for both residential and commercial sectors.
In an exclusive talk with us, Mr. Jugal Modi, Director of Cj Group, shares his thoughts and valuable inputs about his business and future expansion plans in this region.
Do you have a launch story to share with us?
Project launches remind me of glamour, lavish parties, celebrity guest and all that jazz.
But now as we entered into affordable luxury segment our launch strategy has changed significantly. Now we are more focused on providing more value for our customers in form of better amenities and features. Our motto now is cost optimization as the customer segment in question is not believed to have extra money but investing everything that they have. They are very cautious as they are investing whatever they have plus taking future liability for next 15 to 20 years. We as an organization owe a lot to our customers, both emotionally and morally.
How do you see the Indian Real Estate market evolving in near future?
I am very positive about the future of real estate industry in India with numerous infrastructure projects materializing. Market for affordable homes is developing fast as lucrative subsidy like Pradhan Mantri Awas Yojna is helping people to fulfill their dreams of owning a home. I trust, housing for all by 2022 would play major role in booming market for affordable segments.
What business goals you have set for your brand in next 3 years?
Our main mantra is quality deliveries at every stage, timely delivery and affordability for every segment of customers. Also we are planning for some diversification of business.
As a CEO and entrepreneur, what do you see as the most valuable thing you can provide to your organization as a leader?
If you could give any advice to our readers who are planning to invest in a property what would it be?
Invest wisely, check background of builder. If builder is selling at rate lower than prevailing market rate, don’t be happy yet! It’s a first indication that he is under high pressure. We believe today’s customers are smarter and difficult to fool
To know more about Cj Group, visit: http://www.cjgroup.co.in/
Mr. Pratik Patel, Director Of Rajesh Lifespaces In Exclusive Talks With 9 AM Stories
Only a few developers understand the dynamism associated with Mumbai’s real estate ecosystem the way Rajesh Lifespaces does. For over 50 years, Rajesh Lifespaces has been creating landmark projects both in residential and commercial segments. As a group, Rajesh Lifespaces stands for unmatched business ethics and utmost commitment towards their customers. Many iconic projects such as Raj Residency, Raj Sarovar, Raj Manor, Raj Classsic adorn the Rajesh portfolio. Also, an ambitious line of ongoing and upcoming projects stand testimony to the impressive growth of the brand.
In an exclusive talk with 9 AM Stories, Mr. Pratik Patel, Director of Rajesh group shares his exclusive launch story on Raj Torres, an elite project at Ghodbunder Road, Thane (W), Mumbai.
1. Tell us about your new project Raj Torres
Raj Torres aims to create a lifestyle which will be an amalgamation of functionalities and contemporary amenities. We’ve centred it around the concept of #PracticaLiving! Raj Torres denotes a home and environs which caters to all your possible needs. Homes here provide easy access to important landmarks making it a convenient location for you and your family. Replete with amenities befitting your lifestyle, your home fills you with content. More so with retail stores close-at-hand, your dose of retail therapy brings both glamour and everyday needs into your life. A functional classroom, an expansive dance studio and a crèche, are some of the features which will leave you enthralled.
2. How do you see the Indian Real Estate market evolving in the near future?
A lot of positive sentiments are making rounds within the real estate fraternity. With the implementation of RERA, transparency & accountability of the real estate sector is going to improve significantly, leading to more streamlined investments. The overall growth of the industry will gain great impetus. Customers and investors will surely look at the real estate industry with more pronouncements.
A lot of awareness can be seen around sustainable living and green projects in recent times. Many developers are building projects keeping in mind the importance of eco-sustainable measures and their responsibilities towards larger societies. We are also seeing digital media bringing a lot of positive changes in the industry. With digital media evolving every day, customer-behavior is changing, so are their expectations. Information is abundant and easily available which makes it doubly important for developers to be truthful to their customers. The e-commerce space again, is immensely enabling and opens up a lot of opportunities for both the developers and the customers.
3. What business goals you have set for your brand in next 3 years?
Our focus has always been very clear and unflinching. Our customers are our biggest strengths and we are committed to placing their interests ahead of everything else.
In the coming years, our quest for exceeding customer expectations will continue with reinforced resolve. We also intend to maintain on-time delivery of projects and aspire to expand to geographically diverse locations to satisfy demands and growth.
Rajesh Lifespaces believes in keeping pace with advancing technology and is a strong advocate of implementing these new technologies for the betterment of overall functioning of businesses.
4. As a CEO and entrepreneur, what do you see as the most valuable thing you can provide to your organization as a leader?
We as a group hold onto fair business practices at every level of operations. I try to instill this very quality of absolute transparency in my teams and believe in communicating with them as much as possible to keep things uncomplicated. As a business leader, I trust my team and their abilities with ideation. I am also involved with processes and continuously try to implement latest technologies and practices to enhance the capabilities of my team.
5. If you could give any advice to our readers who are planning to invest in a property what would it be?
I would recommend, buyers entrust and invest their money only with developers who are of repute and have a proven track record in the market. It is very important that everyone investing in a property, conduct a proper background research of the developers, he/she is considering, along with their investment potential. This will help them make an informed decision and safeguard their purchase.
MCHI CREDAI’s ‘The Great Mumbai Property Festival – 2016’ Takes Off In Style
The sun lit a little brighter, the sky looked a little clearer as the festival time finally kicking off with a long-drawn monsoon finally receding..! In the wake of brighter days, what could have been more cheering than soaking in the home buying fever Mumbai is witnessing at present.
MCHI CREDAI is the most prominent and recognized body of real estate developers of Maharashtra. The organization has more than 1800 leading developers from across Mumbai city and has now expanded across MMR .
Tata Capital presents ‘The Great Mumbai Property Festival, 2016’ is promised to be the biggest meeting platform for the developers and the home buyers in Mumbai.
This year the expo started with a 15 days long online version which presented the home buyers a unique experience to browse, compare and avail of special offers.
The physical expo started on 6th October at Mumbai’s Bandra-Kurla complex with élan!
Here’s a dekho from the stunning inauguration ceremony:
With the likes of DB Realty, Rajesh LifeSpaces, ACME Group, Ajmera Group, Nirmal group, Godrej properties, The Wadhwa Group, Mehta Group and like as participants and a varied projects from all categories like affordable home, luxury residences etc., the exhibition is all set to cater to a large number of customers with fascinating offers and never-before schemes.
As the real estate sector goes through a number of interesting reforms and policies, the overall sentiment of the buyers and the developers seem to be quite buoyant and promising. Also, as a lot of Indian buyers wait for the auspicious occasion of ongoing festival season to make their purchase decisions, the organizers are extremely hopeful about a quality footfall and healthy transactions to happen in this year’s expo.
Watch out this space for more updates on the expo. Stay tuned to 9amstories!
The Inspiring Story Of Bhairaav Group And Its Growing Footprints In Mumbai’s Real Estate Marke
Sheer determination, hard work, sincerity & commitment will convert one’s visualization to realty in any sphere of life.
Please share the story of the inspiring journey of Bhairaav group and you being the prime driver of the quest to become best in the business?
I began my professional career with Garment Manufacturing business with a capital of Rs. 29,500/- and just one sewing machine and later forayed into real estate, having projects amounting to 5,800 Cr. in hand, thus creating distinctive name for Bhairaav Group.
My entry into business was purely accidental when I took up garment job-work activity. Fortunately, the business grew by leaps and bounds and within a short time I started exporting readymade garments to USA & European countries.
Nearly a decade after tremendous success and steep progress, in the year 1984 a devastating fire in our factory wiped out almost everything we built and I was back to square one! I was committed to bounce back and once again re-built the entire garment export business. Thereafter there was no looking back.
Over the years I have been taking initiatives and active interest in trade matters along with fellow exporters. We took up critical issues faced by the industry with the Government. I was also elected as President of “All India Garment Exporters & Manufacturers Association” (AIGEMA) for three consecutive terms.
In the year 1995, when India signed GATT agreement, I anticipated a gradual slowdown of garment business by 2005 and hence ventured into real estate at the dawn of the 21st century. In 2002, Bhairaav Group successfully bid for a Govt. mill land and was the purchaser of the first textile mill land in Mumbai. Till today Bhairaav Group has undertaken several prestigious Residential & Commercial projects in Mumbai & Navi Mumbai. The Group has so far successfully completed over one and half million sq. ft. so far and has 5 million square feet constructions under various stages of execution.
Bhairaav Group has been honored with Corporate Excellence Award – 2015 at the hands of Hon. Housing minister, Govt. of Maharashtra, Shri. Prakash Mehta.
Was awarded as a ‘Samaj Ratna' in the year 2012 from the hands of our past President Smt. Pratibhatai Patil.
My belief akin to Jain religion's tenet is, “To Give and forgive. In 2013, I was honored with “Jain Samaj-Ratna” Award at the hands of the then Hon. Chief Minister of Maharashtra Shri. Prithviraj Chouhan.
I am the founder of Chief Patron of Jain International Trade Organisation (JITO) and held top positions in different times.
Born to devout Jain parents, I have been felicitated by various social organizations. To name a few:
My sons Viivek Jain and Akkshay Jain are ably supporting me now to take Bhairaav group’s legacy to new heights.
How do you see the Indian Real Estate market evolving in near future?
Indian Real Estate market will evolve in coming near future as the trend is changing; people are growing and also their demand for better lifestyle. The buying trend has a slow and steady move but has a movement and it’s going to pick up more. Buyers these days are doing proper research before purchases and are willing to explore new locations.
People now opt for property where they don’t have to commute more and get the facilities at their doorstep. Nowadays the developers are building projects keeping in mind the importance of eco-sustainable measures and their responsibilities towards the society. We can also see that digital media is bringing a lot of changes in the industry. With digital media progressing every day, customer-behavior is also changing, so are their expectations. As customers are well-informed these days, the developers are being more transparent and upfront. The electronic media is extremely enabling and has opened up better prospects for both the developers and the customers.
What business goals you have set for your brand in next 3 years?
In coming years Bhairaav Group aspires to complete 5 million sq.ft of constructions which are at various stages of execution and we intend to achieve the same with team effort and hard work.
Bhairaav at all times will like to maintain its very strong commitment towards customer satisfaction with timely delivery of projects and providing its customer with better lifestyle.
Bhairaav believes in being updated with today’s latest advance technology and foresees to use the same in its overall functioning of businesses for its future evolution with the help of capable committed people.
If you could give any advice to our readers who are planning to invest in a property what would it be?
I would suggest them to invest in the growing and developing area like Ghansoli which is a node of Navi Mumbai. Ghansoli is well connected from all the sides i.e. the proposed Jogeshwari–Vikhroli Link Road (JVLR) – Ghansoli link will become Gateway to Navi Mumbai. The upcoming International Airport at Panvel, work starting from October, 2016 will make Ghansoli a linking point between Airport and Mumbai. Many infrastructural developments such as Sports complexes, Recreational parks, Malls are underway at Ghansoli. Ghansoli also has well-known IT Parks, Business centers, Renowned Educational Institutions and many more. In all Ghansoli will be the next prime location or you can say a place where one can have a “BETTER LIFESTYLE” where all the necessities are at one place.
I will suggest 9amstories readers and prospective buyers to explore new locations like Ghansoli which are fast developing and offer affordable housing choices.
Image courtesy: Topcount
Mr. Punit Agarwal, CEO, Nirvana Realty Talks About New Projects & 2nd Home Market Scenario, In A
According to you how is the residential demand picking for second homes?
The residential demand for weekend homes is certainly increasing. With the current slump in the 1st homes market, a lot of emphasis is on the weekend homes segment wherein buyers prefer to spend considerably lesser and own a home in the outskirts of the city rather than investing huge amounts into a 1st home in the city. This is just one segment of the society, which can be categorized as the thriving middle class. On the other hand, the upper middle class who already has one or more flats in the city is constantly looking for weekend home / holiday home options to invest in. This class is the one who usually settles in for villas and other premium properties, which are about 2 to 3 hours drive from the city.
Moreover with the variety available in the market in terms of destinations, themes, facilities, etc the consumers are certainly spoilt for choice. Another important reason for the rise in the demand for weekend homes is the high stress levels and chaos of city-life that people now want to escape. With the rise in disposable income, nuclear family & DINK concept, there is absolutely no stopping this burgeoning market.
As per recent reports, destinations such as Lonavala, Alibaugh, Karjat, Wada, Talegaon, Khandala, etc, have seen steady growth in the number of weekend home projects. Options include villas, NA plots and affordable housing. Most of the second home options are located between the cities of Mumbai and Nasik or Mumbai and Pune.
Which projects have you launched recently and how are the responses till date?
Nirvana farms, Waterfront, Divine villas were sold out within a year. Wollywood is near completion the customers are being handed over their flats 4 months before completion date. Break the routine - is in the second phases with phase 1 receiving a great response/ City of music isour latest project and is currently launching phase 2.
Interesting milestones, awards, tie-ups, collaborations:
What is the expectation from consumers for the second home projects in upcoming festive season?
We are very bullish & expect a great response this year. The market sentiments are upbeat and we are expecting all our projects to do well.
As a CEO of the organization, what business goals you have set for your brand in next 3 years?
Nirvana is now a leading second he developed in Mumbai, we aim to become no. 1 in Maharashtra. We are expanding to locations like Mulshi, Igatpuri, Alibaug & Karjat. In the coming years, we also hope to expand to other cities in India like Jaipur, Bangalore & Gujarat. In terms of growth, we are targeting a 200% growth rate YOY and are very bullish about it. We are also expanding our top management team and are creating top management positions in every department to help take us to the next level. Another aspect is the Digital transformation in every process that we are working on which will help make customer experience seamless. Moving ahead we are looking for more partners such as hospitality, food & retail, airline partner, entertainment, furnishing partner, etc to offer value add services to our customers.
If you could give any advice to our readers who are planning to invest in second homes what would it be?
This is the right time to invest in your dream holiday home – go ahead & make your pick!
Real Estate Purchases & Indian Festivity
Like every year, real estate industry is gearing up for the great, grand Indian festival season! It goes without saying that this is a feel good thing to spend without a worry during festival times but should it just end with low-cost buys (i.e. electronics, jewellery, cloths, vacations etc.) or one should hold his property purchase decisions till festive season as well – is the question!
Most of us Indians do believe in ‘good muhurat’ and ‘bad muhurat’ and often hold back important purchasing decisions to strike deals in auspicious periods. Let’s have a look at the calendar and find out the best and worst times to purchase a house as per traditional beliefs and guidelines.
As per Hindu calendar, after a long lull of 2-3 months, property purchases begin to rise during Ganesh Chaturthi and Diwali at a fast rate as this period is considered to be favorable to seal any new deal. Diwali marks the starting of the business year and is believed to be the best time to make new investments. Diwali is regarded as an auspicious time to make money, and nothing can be better than investing in property. If sources are to be believed, real estate developers achieve one third of their annual sales target during this period.
During the first half of the year, Akshaya Tritiya is another extremely auspicious time to invest in properties. This festival is believed to bring good fortune and wealth. Same can be said about ‘Gudi Padwa’, the day, as per traditional belief, universe was created by Lord Bramha. The bright colors of Gudi’s cloth symbolize Lord Bramha’s flags and the overall sentiment attached with this festival is the victory of good over evil. ‘Gudi Padwa’ is celebrated with splendor in the western part of the country, especially Maharashtra while in other parts of the country the occasion is known by different names.
Another important aspect of the festival time is, a lot of developers plan their crucial project launches in this auspicious phase. Many home buyers and investors look forward for the lucrative offers, both launch specifics and festival specials. Especially for buyers who are looking for affordable housing or budget homes, the festival time bargains can actually be deal makers.
India is celebrated as the land many religions and countless languages, it might well be described as a land of festivals as well. We Indians love celebrating little joys and bigger occasions with equal eagerness and our festivals are painted with joyous celebrations, colors, music, folk songs, dances, delicious foods, sweets and important beginnings. Investing in real estate is one of the biggest celebrations in the family which is associated with the ‘great, grand Indian festivity’.
This year, the eco-system of the property market is positive. Thanks to bountiful rain and overall positive sentiments around market with new policy initiatives, economy is showing signs of improvements. Therefore, it will not be wrong to expect better movements in the real estate scenario this year.
Do you have your own personal favorites? Are you planning to buy property during the festival season in 2016? What are your home buying stories? Do share with us: email@example.com
Image courtesy: www.indiancaravans.com
Newly Appointed Chief Product & Technology Officer - Housing.com Mr. Vivek Jain Talks About His
1. Congratulations on your new role in housing.com and all the very best from 9 AM Stories team. Firstly, how excited you are to join housing team and how the future is looking like?
Thank you. Yes, the journey seems to be very exciting indeed.The team is young, bright and zealous spelling out marvellous insights on every development in the industry. It is a pleasure working with this enthusiastic bunch of people and the exchange of ideas enables immense knowledge sharing amongst everybody in the team.
I am all geared up to explore multiple avenues for Housing.com to drive its vision of being the most innovative and trusted real estate platform and look forward to contribute to the company’s commendable efforts to keep the momentum on.
2. Tell us something about your responsibilities at housing.com. You bring a lot of experience and diverse expertise from Amazon & Google; what do you find the most challenging and exciting thing about your job role in housing.com?
I have been tasked with applyingmy competencies to strengthen the product and engineering aspects of Housing’s business. I will also work towards ascending the brand to achieve the objective of becoming a full-service transaction player.
Real estate is a highly unorganized market and hence poses umpteen challenges like lack of transparency, low trust, no historical records / data, no MLS and lack of reliable information on market / transaction prices. Housing.com has successfully mined several opportunities out of these challenges and we believe in continuing doing so. Challenges are a way of life and helps keep us thriving, functional and vigorous enabling us tounlock doors to innumerable opportunities untapped.
Tell our readers something about your journey so far. According to you, what are most special expertise and knowledge you bring on board that are going to strengthen housing.com product innovation strategy?
I started my career as an early member of Texas-based start-up Ashley Laurent (later acquired by Cisco) and was promoted to be Deputy Director/India Country Head within three months. Two years after that I moved to Motorola Mobility, a division of Google todrive the product in several developed and emerging markets through conceptualization, definition, testing, optimization, certification and successful phases. Post this, I moved to Amazon as a Bandwidth Product / Business Head for the cloud division.
My responsibility at Reliance Jio, being a part of Chairman’s leadership team was to build the company’s Digital Media business and the core leadership team. Prior to joining Housing.com, I was the CEO at CA Media Digital (owned by The Chernin Group and private equity firm KKR) and focused on growing the company’s digital service portfolio and various consumer facing businesses in New Media.
It is important to bridge the gap between technology and business and this is something I would really want to focus on. Through the several years of experience I have gained, I have realised that while innovating with technology is important, it is also crucial to simplify and make it customer friendly for the benefit of end users.
4. How do you see the competition and what are your immediate plans on housing.com management vision to be leader in transaction services?
We obsess over our customers rather than looking at competition. Wepay attention to our competitors but it’s not where we spend our energy; it’s not where we get our motivation from. We really like to start from customers and work backwards. Over the years, I have realized that if you obsess over the customers, it will truly cover a lot of other errors / mistakes.
5. What are your plans on product innovation at housing.com? Anything exciting that your team is working on to launch soon, can you share with us?
We have always strived to be ahead of the curve and keep innovating for our customers. This is a fact corroborated by the various innovations we have launched like Maps, Data Science Labs, Artificial Intelligence, Machine Learning, Chat Box, Virtual Reality, etc. We are also partnering with Google and Facebook on various technological and product integration and innovation.
It is in our DNA to think exponential and for that we are open to taking calculated risks. We challenge ourselves by setting bold goals to achieve factors of 10Ximpact. We constantly run experiments, collect data, are not afraid of failure, learn from our mistakes and keep iterating till we succeed.
6. How is it like working with Mr. Jason Kothari and the Board at Housing.com?
Jason’s dexterity coupled with his commitment and focused approach to work has helped steer Housing.com to achieve great heights. It is a laudable fact that he has been able to formulate and direct the company’s strategic plans commendably in such a short span of time. We are in talks about various things to be launched soon for our customers and I look forward to many such discussions and successful implementations in the near future.
Modi’s Surgical Strike On Black Money: How Will It Affect Real Estate Sector?
All hell broke loose when PM Narendra Modi addressed the nation and announced that Government has decided to scrap Rs 500 & Rs 1,000, country-wide, effective from mid-night, November 8th. There was chaos all around with people frantically queuing up in-front of the ATMs to withdraw and deposit cash before the currency notes of Rs. 500 & Rs. 1000 turn into worthless pieces of papers. Long queues were noticed at the petrol pumps as well where people tried to make use of their 500 & 1000 rupees notes, for one last time! A ‘decisive war against the menace of corruption, black money and terrorism’ was set…
Unorganized builders and secondary realty market are expected to be impacted harder as compared to organized real estate businesses following Modi’s historic decision of scrapping Rs 500 & Rs 1,000 notes, yesterday evening - Bankers and Economists believe.
Unorganized real estate sector would surely feel the heat as it is one of the most preferred investment options favored by individuals to salt away their black money. A large number of real estate transactions are not reported on account of high property transaction taxes.
The real estate sector in India contributes about 11 percent of the gross domestic product (GDP) and a considerably large percentage of India’s black money transactions are believed to be in real estate industry.
However, the larger sentiment in the organized real estate sector is not dim and in sync with the positive surge of reactions from the tax-payers and common men across the country. Modi’s masterstroke to curb black money, corruption and terrorism has been welcomed with all heart by the section of real estate players who already have moved towards authorized transactions using bank channels and for this section it’s a positive move towards a matured economy.
This move is expected to affect property price and may push it down as investors will now fail to park their cash in property investments, which may cause a dip in the price. Real estate market is expected to experience substantial price correction on account of reduced land price as well.
It will not be wrong to say that be it’s a hearty and progressive step towards a better India and will neither affect a clean developer nor an honest buyer, the move will only benefit them.
Cheers to a brighter and transparent real estate world!
Creating A Greener World Is A Collective Responsibility - Smart Green Summit & Awards 2016 Is Al
‘Smart Green Summit and Awards’ which is being held today in Mumbai, is an unique platform where who’s who from the building & construction industries come together to discuss various topics on sustainable developments. ‘Smart Green Summit’ is a part of Saint-Gobain’s, ‘Shaping the Future’ initiative that focuses on wellbeing in living spaces and is partnered by The Economic Times.
The event celebrates the innovative initiatives of individuals/organizations in the area of green living and developing sustainable living spaces. The previous version of the event held in 2015 was a huge success and was adorned by a panel of prestigious personalities from various sectors.
James Law - Chairman & CEO & Chief Cybertect, James Law Cybertecture, Ajay Pandey – MD & Group CEO, GIFT City, Gautam Balakrishnan – VP & Head, Smart Cities at TATA Projects , Dia Mirza – actor & Green Crusader are among the esteemed speakers who are attending today’s event.
9 AM Stories brings to you the glorious moments from the show:
Watch out this space for more updates on sustainable living. Stay tuned to 9amstories!
Mr. Dhaval Parikh, Partner Dhaval Developers, Shares Story Of Becoming A Renowned Brand & The Wa
Please tell us about Dhaval Developer's journey so far; the early days, the difficult times, the achievements and the motivations that define your success story?
The key management team of Dhaval Developers is from the business era of the mid 80s, which soon hit back with the 1991 reforms, but not looked back since then. The foundation of the company was laid in early 2000. The motives were fresh, and goals high! The company by then had build one tower of 7 floors in Kandivali.
Real estate was not the sole motive of the company when started, but soon there was some kind of momentary ease, which was sinking in handling real estate in the home city of Mumbai. Since then we bagged Juhu, Kandivali, Malad almost the whole hinterland of Suburban Mumbai. Now where we come from is dealing in raw land, highly litigated properties, diverse extended skills in getting the project to lay its’ first brick. Gradually, after the great recession in 2008, the projects started shaping up and we entered mainstream development.
But the real project started in mid-2015, when the industry started facing tumbles. Here we are with two highly approved ambitious projects in hand with future in our hands to change the scenario of the micro markets forever. A lot many exitingprojects are lined up for coming years, roughly about 5 million sq. ft. of development is being planned.
What's your opinion about the present scenario in real estate industry, how do you think GST and RERA are going to impact business? Do you see positive changes coming?
We are really positive in terms of the regulatory changes coming in the industry. We were always concerned for the matter of fact that the buyer was always kept in the shadow, real-estate being the black-hole in terms of money.
This will bring the much-needed discipline in the country, dealing all buyers in the best respect. RERA is still at the drafting stage in Maharashtra, but will soon be applied, Mumbai having the starkest impact. With this Act, all the dirt in the industry will have to surrender to the law, which had highlighted the malpractices in the industry, giving the industry its bad name in recent times.
We expect to have the good virtue soon, after the setback of 2 years. In terms of GST, there is a lot more clarity needed, but we are assured this government will be buyer focused, therefore the end user need not worry about the implications.
Tell us about your ongoing project Sunrise Charkop. This is believed to be a luxurious project within the reach. Can you please tell our readers more about the project? Are you offering any special scheme/s to the buyers at present?
Sunrise Charkop, is a beautifully placed tower, set amidst natural surroundings but merely 3.8 kms from Kandivali Station. Breathtaking views of the lush natural foliage are a treat to the eyes. This project reminds the buyer of safety, security, homeliness, de-clutter of the urban jungle, family & living life in the moment. It is much more than just a project for us, as this is the biggest project for us, and as someone says the artist takes the longest time to make his first painting. It is very carefully crafted with most futuristic in terms of value and conservation of natural resources.
When we talk about any scheme, it is always the benefit being passed to the buyer. In this frantic uncertain market, we are focusing on delivery and the core fundamentals of the project. The project price positioning is the strongest scheme in itself. The open message to all the buyers about communicating the scheme is, that they come to us as if they’re buying their house we will have all the points referred and develop a tailor made scheme as per the buyer’s flexibility and concerning their best possible interests.
We came to know about the next upcoming project from Dhaval Developers - Sunrise Orlem at Malad (W). Please tell us who are your prospective buyers for this project and what can they expect from Sunrise Orlem?
Sunrise Orlem, is not a massive apartment complex, but we are offering merely 67 limited edition apartments. The project has the advantage of 3-sided road access. The Marve Road junction being less than 500 meters apart, the residents will have the best possible un-cluttered connectivity. Orlem Church is a sacred place for locals and we are highly obliged to be present in this location with such rich, diverse history. The project boasts6 storeypodium and a swanky 2 storey Health club for its residents. The unit sizes of our 2 Bhk& 3 BHK apartments are the best in the area, giving the buyer the best in its class space advantages. With 2 flats on each floor in both the towers, the buyer holds big advantages in terms of security & privacy. The apartments delivered will be tailor-made style with deep attention to detail.
The prospective buyers for this project are the natives of the area who have seen this place shaping from its start.
Union Budget 2017: Will It Turn The Table For The Real Estate Industry?
The D-day is here
Still reeling under the monumental weight of Demonetisation, Indian real estate industry is hopeful of a favorable budget from Finance Minister Arun Jaitley on 1st February to turn the table around. Expectations are plenty mixed with apprehensions, questions and speculations.
While all other sectors are getting ready with their wish-lists and expectations are rising, real estate is probably one such industry which is in need of a positive turnaround more than any other industry.
Industry leaders and Stakeholders are putting forward their demands that central government considers relaxation in income tax rate, bring on clarity on GST, raise House Rent Allowance (HRA) deduction etc. A section of industry expert s believe that exemption in income tax slabs will benefit the end users leaving their pocket heavier and that will uplift the sentiment in the real estate sector.
Owing to the demonetization drive many potential buyers especially from middle-income groups decided to postpone their purchase decisions, waiting for corrections in the rates and other factors. Some confidence-boosting announcements from the FM would surely aid the buyers to move forward and take quicker decisions. A few believe that a probable cut in stamp duty along with income tax rate cut for may provide the much-needed boost to the real estate industry.
The silver lining
A part of the industry believes that government is already favoring the real estate industry and trying hard to bring positive changes, the results of which were visible throughout 2016 in form of policy announcements such as introduction of RERA. Post demonetization, major banks like SBI, ICICI, HDFC have cut their lending rates by up to 0.9%. Prime Minister Narendra Modi’s announced reduction in interest rates by 4% on bank loans for property below 9 lacs and 3% less on 12 lacs as per Awas Yojana, on 31st December.
They also believe that the government is seriously pursuing its big vision ‘Housing for all by 2022’; however, there might be a need of reaching out to all target segments rather than only low-cost housing.
Image courtesy: http://www.thehindubusinessline.com/
Real estate industry has been asking for an industry status for long now. With its contribution of roughly 15% of India’s GDP, real estate industry believes that this status is overdue. With the absence of the industry status the developers are obligated to borrow at high interest rates which in turn increase the final price of the properties making it unaffordable for a large section of the buyers. Industry influencers are hoping this demand to be fulfilled in this year’s budget.
For a long time now real estate developers have been demanding single window clearance to reduce red-tape delays. Demands run high on this front as well as the developers are waiting with bated breath to see significant changes in this direction.
With the announcement of the goods and services tax (GST) tax structure, the real estate industry is waiting anxiously to see which tax rate is applied to the real estate and construction industry. Some clarity on this would surely bring relief for the developers and would eventually help the end users as well.
Overall, the industry is optimistic that Union Budget 2017-18 will bring cheers to the common men in the country. With banks cutting rates and the government promoting affordable housing for EWS and LIG categories, with all possibilities, this year’s budget should mark the beginning of smoother and brighter days for real estate industry in India.
Authored by 9amstories.com Editorial
Commercial Real Estate: What To Expect In 2017?
2017 & its promises
In 2017, Indian economy as a whole is making a turnaround and is expected to be counted among the fastest-growing major economies in Asia. 2016 has been a mixed year with a significantly healthy first half followed by a destabilized market, affected majorly by the lethal blow of demonetization towards the end. However, with the introduction of GST and RERA, Indian real estate climate is expected to show good signs of recovery in 2017 – the experts say.
Changes are on their ways
Change is the only constant in life! Indian real estate developers too are adapting to the various changes and reforms that the industry has witnessed in 2016. The industry is fast becoming more professional and transparent. A few of the important policy reforms Indian real estate industry is witnessing are – Real Estate Regulation Act, The Benami Transactions Amendment Act, Implementation of GST, Permanent residency status for foreign investors etc. These reforms are impacting the residential as well as commercial real estate markets in positive ways.
Let’s see where we stand in commercial real estate space -
Source: A CIRIL Report
India now features at the top of the list of preferred destinations for real-estate investment for major institutional investors. The promises for 2017 are likely to be hearty with demand from manufacturing, logistics, consumer goods, IT/ITES and service sectors. A healthy improvement in commercial space leasing is likely to boost demand too. Analysts are expecting an overall 5-10% jump in lease rentals in the forthcoming year. Source: Livemint
Mumbai, Delhi-NCR, Bangalore & beyond
Mumbai: 2016 has been overall a good year for Mumbai commercial micro-markets though demonetization is expected to slow down the transaction activities in 1st two quarters of 2017. Mumbai office market saw total absorption of around 2.75 million sq. ft in year 2016. Overall, the submarkets of Worli, Andheri-Kurla Road, and Central Suburbs constituted 60% of Grade A net absorption followed by SBD and Malad/ Goregaon. In terms of supply, the Mumbai market witnessed supply of around 5 million sq. ft of commercial space. Rental prices will largely remain unchanged in 2017. Demand for office space is less impacted due to demonetization but there will definitely be price correction.
Image courtesy: http://www.jeevanfacadesystems.com
Delhi-NCR office real estate segment has remained positive and is expected to grow steadily in year 2017. The NCR office market maintains its lead as most preferable office destination with 7.6 mn sq. ft absorption at the end of 2016. Gurgaon remained the preferred choice for opening offices in the National Capital Region (NCR) with 51% share.
Image courtesy: https://failedarchitecture.com
Bengaluru saw highest leasing activity with total absorption of around 11.2 million sq. ft in 2016. Outer Ring Road submarket accounted for almost 55% of the total Grade A leasing, followed by Suburban East (25%) and Peripheral submarkets (10%). Year 2016 witnessed total supply Grade A supply of around 6.1 million square feet (msf). Vacancy remained stable at 9.9%. The city has a robust new supply pipeline of approximately 20.5 million sq. ft. in the next 3 to 5 years. IT / ITeS sector continues to be the major demand driver followed by E-commerce and BSFI.
Image courtesy: https://i.ytimg.com
Chennai, Hyderabad, Kolkata are among the other cities which witnessed moderate to significant transactions in commercial real estate space. Source: A CIRIL Report
For the investors
With the positive changes happening in the industry in the form of reforms and policy changes, more transparency is underway and that’s definitely going to encourage high net worth individuals to invest in commercial real estate. Investing in commercial space requires much larger investments as compared to residential. This is the reason why traditionally only the investors with deep pockets could have invested in commercial space. However, the scenario is changing fast. Also, an overall positive sentiment and growing confidence can be noticed among the NRI investors because of the business-friendly stand of the central government.
The rental return for commercial properties has traditionally been 8-11% as compared to 2-4% for residential sector. Owing to the rising demand in commercial space investors can expect higher capital appreciation as well as recurring rental income.
With the leading developers foraying into commercial space with renewed vigor, it would not be wrong to say that now is the right time to invest in commercial real estate.
Ultra High Net Worth Individuals & Their Luxury Homes!
The luxury real estate market in India
In recent years, Indian real estate market has grown up to accommodate ultra-luxury projects meant for the uber wealthy segments. The booming economy and want of lavish lifestyle, India’s UHNIs have shown a keen interest for super luxury apartments, exclusive residences, independent villas, row houses and bungalows.
India’s economic growth story continues, adding volume to the disposable income of the HNI population of the country. According to a Wealth-X report, if the current trends continue, it is expected that India will have 4.37 lakh (437,000) millionaires by 2018.
‘By Invitation Only’ Residences
The rich and affluent class of India is fast becoming accustomed to the global ways of luxury living. Travelling abroad for work and pleasure is making them exposed to the international standard of living and now they are not just satisfied with an up market location but also are looking to upgrade their lifestyle measures. There come the ‘By Invitation Only’ residences where one can expect private gymnasium, private swimming pool even private garden, crafts of internationally acclaimed architects, modern amenities, high-end home automation systems and the privilege of private living.
Branded residence similar to super-luxury cars or hosting a celebrity party is testimony to social and financial superiority. This emerging segment is alluring and hence the real estate developers of the country are taking up such projects, often in collaboration with international partners. Many developers aim to take up such project/s to raise their brand value and build a coveted portfolio.
Super luxury real estate markets are primarily Mumbai, Bengaluru, Pune, Delhi, Gurgaon, Chennai and a few other tier-I cities. Luxury residences are regarded to have massive investment potential not only by the domestic investors but also by NRIs and foreign investors. Primarily because ultra luxury segment is immune to market dynamics the rise or fall of property price would hardly have any impact on the purchasing decision of the buyers.
A few signature projects
Image courtesy: https://www.happykeys.com/
Lodha World One:
This is projected to be the tallest residential apartments in the world. The tower is designed by Italian couturier Giorgio Armani.
Image courtesy: https://www.happykeys.com
There are only twelve residents in this spacious tower apartment. These individual living spaces are available in 3 bedroom, 4 bedroom and duplex penthouse configurations.
Image courtesy: http://esquegeneral.com
Each 7,000 sq. ft apartment has wide sun-decks, separate servant quarters, infinity edge swimming pool, state-of-the-art gymnasium with sauna and jacuzzi, a 20-seater state-of-the-art mini theatre and conference room.
Image courtesy: https://abcbuildcon.files.wordpress.com
Ireo Grand Hyatt Residences Gurgaon
Image courtesy: https://www.jllresidential.co.in
Four Seasons, Noida
What UHNIs expect?
Authored by 9amstories.com Editorial
Mr. Sushil Raheja Talks About The Journey Of Being In Real Estate
From a humble beginning of selling standalone properties to have developed a legacy of real estate brilliance - How has been the journey? What were your biggest challenges and most cherished accomplishments? It has been a journey full of ups and downs in the last 25 years. There has been lot to learn especially with the industry growing, new technologies and trends coming in. The approach today is more organized and professional. We can now proudly claim we have got in-depth knowledge of the real estate business and are committed to excellence. Our biggest achievement has remained the fact that we have been able to develop confidence among our clients. One of the greatest challenges has always been to keep setting new benchmarks and maintain a new standard in redeveloping the society and offer the best in terms of architecture, construction, technologies and facilities.
You have an enviable portfolio of real estate consultations with the best brands - How has been the experience?The idea was to acquire intrinsic knowledge. My association with names like Kalpatru, Lodha, and Hiranandani among others helped me refine my skills as a consultant while making me understand the industry in depth. It is a continuous and an ongoing process of learning.
We would like to know your valuable opinions on the future of real estate industry of India in coming 2-3 years?
The real estate industry in India is going through a phase where many crucial changes are taking place thanks to the much needed initiatives being taken by the central government. A lot of positive initiatives are being taken and we are expecting new trends to emerge especially by end of next year with the implementation of GST in April.
We are headed towards a more organized, transparent and disciplined system over all that will help build better developer-buyer relationship apart from bringing in more funds through FDI. We are hopeful that the market will touch around US$ 180 billion by 2020 with Mumbai being the place bet in terms of rental returns on investments. Apart from Mumbai and NCR, Bangalore, Pune, Ahmedabad and Chennai will attract maximum foreign investments. Overall the next five years are expected to bring a good phase for the market.
What are your marketing plans? Which media and modes of advertising you find the most effective?
In today's times we need to constantly keep bringing in fresh ideas and strategies when it comes to marketing. Today the buyer is more aware of what they want. Our marketing focuses on the USPs of our projects. The modern day online media is extremely important .
We believe that you have an ambitious plan of building 10-15 township projects in coming years. Will you like to elaborate?
My vision for my company is to make it a household name in the coming years. With regards to building townships, it is a very challenging task and takes great efforts. We as Raheja homes will be looking at making apartments with all modern facilities and eco-friendly apartments according to clients needs.
By Mr. Sushil Raheja , CEO, Raheja Homes Builders & Developers
Times Property Investment & Homebuyer Show Kicks Off In Style, Sets The Mood Buoyant!
There was tension in the air, there were apprehensions everywhere, and people became cautious and watchful; the biggest ever Indian demonetization drive took everyone by surprise! The mood was rather solemn, until this morning, until Times PROPERTY INVESTMENT & HOMEBUYER SHOW takes off in Mumbai!
One of India’s oldest property expo - Times Property Expo’s 25th edition presents numerous opportunities to the exhibitors and the visitors. The unique characteristic of this prestigious event has been the premium nature of the products that are exhibited and the high profile attendees. The majestic international event is famed to bring together a dynamic bouquet of real estate tycoons and quality players of varied profiles from the growing realty sectors of India and different parts of the world.
Here’s a dekho from the star-studded inauguration ceremony:
Watch out this space for more updates on sustainable living. Stay tuned to 9amstories!
With the likes and like as participants and a diverse range of premium segment properties, Times Property expo is set to present the choicest of options and number of high-profile deals are expected to happen over next three days.
As the real estate sector sails through an interesting time, a lot of challenges and a number of reforms and new policies, the anticipation is high and expectations are high from one of the biggest property shows in the country. This is the 25th edition of this high-status show and the previous editions saw extremely favorable and positive response.
Watch out this space for more updates on the expo. Stay tuned to 9amstories!
Mr. Raj Shah, Executive Director, Namrata Group Talks About The Concept Project EcoCity 2.0, How Own
Tell us something about your recently launched project EcoCity 2.0 at Talegaon.
The Namrata Group is committed to provide superior quality homes at affordable prices. The Ecocity 2.0 project has been designed to cater to India’s burgeoning middle-class and their ambitious dreams of owning a home. Ecocity 2.0 is a thoughtfully designed residential township with spacious 1 and 2 BHK apartments. The location is just about 1 km from Talegaon MIDC and 2 kilometers from the railway station.
The project has all the amenities that are essential for a comfortable modern day life. The Club House, Swimming Pool, Gymnasium, Kid’s Play Area, Temple and Gardens are ready at the project. Every facility has been designed keeping in mind the holistic modern lifestyle. Priced between 25 lacs for 1 BHK and 35 lacs for 2 BHK EcoCity 2.0 is the best project in its class.
You have a unique project USP for EcoCity 2.0 which says 'Zero se apna ghar banao'. Will you tell us more about it?
We understand the agony which the typical home buyers go through while buying their homes. To eliminate this agony we came out with this innovative concept of 'Zero Se Apna Ghar Banao'. Through this unique proposition we assure all the buyers Zero Risk Property, Zero Wastage Apartment and Zero Down Payment.
We have all legal approvals, environmental clearance and bank tie-ups in place, making this project a zero risk investment. The advance Aluform construction technology ensures zero wastage in carpet area, maximum space utilization and low maintenance cost. And the icing on the cake is the zero down payment.
In today’s market there are genuine buyers who want to buy home in the range of 20 to 40 lacs and there is huge demand in this segment. Most of them opt for bank loan but they don't have 20 % of the cost as their own contribution. We understand this problem and to make sure that these dream homes are available to one and all, Namrata Group has created the groundbreaking concept of Zero Down Payment. The 100% loan tie-up with leading banks means that home-buyers can own a home at Ecocity with zero down payment and just pay government taxes.
The home buyers have appreciated and welcomed this innovative concept. We got a tremendous response and over 200 units are booked within 2 months of launch.
EcoCity 2.0 is a much talked-about project and it's being endorsed by none other than Nana Patekar. What prompted you to take this branding call?
As the top developer in Talegaon, Namrata Group has 28 years of rich legacy, with over 150 projects completed and more than 4500 customers. The Group is known for quality construction and keeping our commitments to deliver on time. The objective of EcoCity project is to provide the best homes at affordable price. And when we conceived our concept of 'Zero Se Apna Ghar Banao', we thought of none other than Nana Sir. He connects well with the common man. He is one of the greatest actors and icon himself. Most importantly, he is one of the finest human being. After achieving so much success he is still a simple, down to earth person. And now he has started NAAM foundation, which works extensively for farmers in rural part of Maharashtra and devoting maximum time for the foundation.
When we approached Nana Sir he was apprehensive about endorsing our project. He is very particular about associating his name with the brand. But when we briefed him about the project and the Zero concept he was impressed with the way the project is planned. Its zero wastage, zero risk and zero down-payment concept made him feel like this is something that the common man will truly appreciate. He did his own study and checked our past projects, quality of the homes, location and amenities which we are providing. He took almost 3 months to say yes for this association.
But once he accepted this project he was completely involved in the project and its launch. The buyers believed him and the project got a huge success during launch. We are very proud and blessed that we have him not only as our brand ambassador but also as our guide and mentor.
Mr. Raj Shah, Executive Director, Namrata Group talks about the concept project EcoCity 2.0, how owning a house is no more a distant dream for the middle-class & much more – In a heart-to-heart talk with us.
Please tell our readers how are the investment opportunities in Talegaon city? What promises it offers to the prospective buyers?
Located right between megacities Mumbai (130 Kms ) and Pune ( 30 Kms ), Talegaon is well-connected by rail and road, while the Mumbai-Pune expressway is a whisker away. Situated at a higher altitude than even Lonavala, it enjoys the best weather in Maharashtra. Some of largest MNCs as well as Indian organizations like General Motors, L&T, JCB, POSCO, Tata Motors and many others have set up their plants in Talegaon. This region is the nerve-centre of Maharashtra’s vibrant manufacturing industry. Under the government’s ‘Make In India’ campaign, at least $ 6 billion is expected to flow in, giving a further thrust to Talegaon City.
With a great social infrastructure, Asia’s largest floriculture park, bustling industrial environment and massive investments expected in the near future, Talegaon is emerging as the best place to live in as well as ideal investment destination.
Do you currently have any special offer or schemes going on for EcoCity 2.0, especially when the festive time is here?
I think we already have our path breaking Zero offer for home buyers right from the day one. We are not giving any special festival offers. Today's buyers are smart and they understand that nothing is free. In festive season we are launching compact homes in EcoCity starting at 18 lacs with same Zero offer.
Please tell us about your forthcoming projects and expansion plan?
We are launching premium homes project in Talegaon and Villa project in New Lonavala immediately after Diwali. In December we would be launching affordable homes township in Kamshet. There are few projects in planning stage in various location of Pune.
We are a progressive developer and are the first to adapt new technology. We would be soon launching our interactive and responsive website with online booking facility. Customer can also see the progress of the projects online. We are also coming out with NAM Club, a customer Club for all Namrata buyers where they will be able to enjoy host of privileges.
What are your views on the proposed regulators and reforms in real estate industry?
I sincerely feel that RERA would be the best thing happened for real estate industry till now. I very well understand that this is an act with some harsh rules and regulation but once we accept and adapt to these reforms, the things will be much easier for developers, customers, banks, government and all other stake holders. The experienced, professional and customer focused developers will not only survive but will grow exponentially once these reforms take place.
RERA & GST: Game Changers For Indian Real Estate Industry?
In India if common men are asked about their biggest aspirations, many would reply ‘a home of my own’! Probably this kind of a consumer sentiment is unique to India. A normal first home buyer aspires to secure a shelter for lifetime for himself and his family, whereas many consider real estate investments as they have almost always yielded high-returns.
Are the days changing?
Demonetisation, Real Estate Regulatory Authority (RERA) and the introduction of Goods and Services Tax (GST) have surely changed a lot of things for Indian real estate industry. At present the sentiment among the developers and the customers are hopeful and everyone is waiting to see the long term changes in the industry.
Current Government has taken a number of measures to encourage transparency and bring down discrepancies in the realty sector but whether the collective effect of these policy reforms will bring down property prices and help the common men or not, is still arguable.
The Real Estate sector contributes around 9% of India's GDP and is the second largest employer, after agriculture. Real estate plays an important role in country’s economy and lately the Government is clearly paying more attention to this sector than other industries by introducing supporting measures like infrastructure status to affordable housing, policy reforms, tax exemptions in various cases etc.
Other game-changing initiatives that have been announced were ‘Housing for all by 2022’, ‘Pradhan Mantri Awas Yojana (PMAY)’ etc. The changes have been welcomed by the majority as they are aimed to bring the much-needed constitutionality and clarity to Indian real estate sector.
But we must wait longer to realize the actual reforms that take place and whether or not they meet the expectations of the home-buyers and the developers alike.
The realty sector has been witnessing a sluggish growth for last few years and is dire need of a turnaround. With the introduction of RERA and GST, the real estate sector in India is likely to move towards a promising future provided the execution happens in due manner. While a section of the industry believes that real estate prices will go up post-RERA, finance experts think that in the long run GST will be able to bring down the property cost.
The buyers’ interests will be protected and better transparency will be ensured after the RERA, which will bring accountability to real estate transactions and the developers will be forced to ensure timely development of projects. GST is the biggest tax reform ever that India is witnessing and it aims to get rid of the difference in indirect taxes applicable across various states. GST will further streamline the real estate business in India and also bring ease of doing business in the realty sector.
Prior to GST, in Maharashtra, 4.5 per cent service tax plus 1 per cent VAT were in effect. Under GST, the tax on under-construction projects will be 12 per cent flat. Apparently that’s an increase of 6.5 per cent for the buyers but with the introduction of Input Tax Credit benefits to be availed by the developers, final property price would probably come down.
Government has included a very important clause in the GST bill to ensure that all the manufacturers, developers and service providers pass on the cost benefit to the final customer. With this clause in the bill, it will be compulsory to pass on the benefit of reduced tax owing to input tax credit to the buyers.
Another important benefit of GST would be elimination of cascading tax structure and introduction of a uniform tax structure. GST may take some time to affect the property price in favor of customers but the implementation of the bill will surely be a sentiment booster for the entire fraternity.
One area still remains a concern for the industry and has not been provided with any relief to is Stamp Duty, which remains very high for land and apartment sales. Hopefully government will look into it in future.
For the first time in independent India an industry has gone through so many changes in a short span of 8 months. However there are many factors aside RERA and GST which will decide the actual positive changes possible in long run such as single window clearance for all the projects, removal of Red-Tapism, eliminating of lengthy processes of getting sanctions/approvals etc. one can expect momentous improvement in buyer sentiment and the way world looks at Indian real estate industry, moving forward.
Authored: 9amstories editorial
Green Building: The Indian Scenario
What is sustainable living?
Sustainable living is not just a few measures here and a few policies there; it means a full-fledged committed lifestyle that promotes uses of Earth’s natural resources, minimally, as an attempt to reduce environmental damages.
A sustainable lifestyle promotes less energy consumption, reduced carbon footprint, efficient waste management and a balanced natural ecology. Sustainable living is also about practices that safeguard the interests of future generations and ensure that today’s developments don’t leave the environment with irreparable damages.
What is green building?
The definition of green building varies between countries but what remains common is that green buildings are the buildings that are developed in a manner where effective waste management is ensured at every stage, be it the construction stage or the operation of the building. Green buildings are designed to reduce the impact of developments on the environment and the human health. The development needs to use energy, water and other resources efficiently and keep the waste at minimal to be categorized as a green building. Another common aspect of green building is appropriate design to take care of the occupant’s health.
Why green building?
The construction industry is one of largest producers of demolition waste and greenhouse gases. During the construction stage a huge amount of energy gets consumed while at later stages it’s the air-conditioning systems that consume the most amount of energy. While it’s commercially viable for a developer to make arrangements of amenities like lighting systems, air-conditioning or water heating facilities for the home owners but these are also the main reasons why massive energy consumption happens in residential and commercial buildings.
In green buildings, sustainable measures are taken to recycle and reuse. The most important element of green building is energy efficiency and less carbon emissions. Green buildings are designed in a way that improves the way homes use energy, water, and materials, to keep the waste minimum; both during construction and later.
What makes a building green?
In comparison with a construction which is not green, a green building:
In recent years green building concept is gaining momentum in India; mainly promoted and backed by the Indian Green Building Council (IGBC). IGBC which is a part of the Confederation of Indian Industry (CII) was formed in the year 2001. The vision of the council is, "To enable a sustainable built environment for all and facilitate India to be one of the global leaders in the sustainable built environment by 2025”. IGBC has an array of advisory services to provide knowledge and guidance on green developments to the industry. They are working toward awareness on energy efficiency, water management, more use of renewable energy etc. Though it remains relatively easier to implement sustainable development measures in buildings which are under construction, however, even many things can be done in the older buildings as well to use energy effectively.
IGBC has a rating system to bring together a host of sustainable practices and solutions to reduce the environmental impacts such as IGBC Green New Buildings, IGBC Green Existing Buildings, IGBC Green Homes, IGBC Green Residential Societies, IGBC Green Interiors etc.
Energy consumption in Indian buildings is going to increase multi-fold considering the growth of the commercial areas and extended residential patches in urban and semi-urban areas. Hence, it is extremely important that the awareness about green building and sustainable living increases among the policy-makers, the business industries and common men, equally. The real estate industry has a very important role to play in this context.
(Authored: 9amstories editorial)