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EstatE avEnuEsJuly 2013 | Vol 1 | Issue 7 | `60www.estateavenues.in

The Leader in reaL esTaTe informaTion

Dr. Anil Kumar SharmaCMD, Amrapali Group

P 26

Realty of the

South

P 46

North India Real Estate Report

2013-14?Powered by

P 36

Regulation and Development Bill

fails to address

kEy ISSuES

Trendsetters of buyer-developer

environment

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EstatE avEnuEs | juLY 2013 www.estateavenues.in

EDITORIAL

EDITOR S L [email protected], +91 8527622880

EDITOR - Research Projects GD Singh +91 8527622550

REPORTER-cum-sub-EDITOR Yukti [email protected]

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PubLIshER & cEO Suraj [email protected] +91 99991 76985

ART

ART DIREcTOR Shivaji [email protected]

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advisoRy boaRd

Dr. Anil Kumar SharmaCMD, Amrapali Group

Mr Mohit AroraDirector, Supertech Limited

Mr Chitty BabuCMD, Akshay Homes Ltd

Prof P S N RaoChairman, NAR India

Ms Ananta Singh RaghuvanshiDirector, DLF Universal Limited

Ms Rakhee NagpalFounder-Chairman, DVS

Mr Pradip JainChairman, Parsvnath Developers Ltd

Mr Himanshu PantHead Sales & Marketing, Silverglades Group

Dr. Kunal BanerjiDirector, Shri Infra

Col. Prithvi NathHead North NAREDCO

Cyrus EngineerHead - Marketing and Sales, Tata Realty

Mr Dheeraj DograDirector, Retail, BNP-Paribas Real Estate

Amit HandaExecutive Director, Shri Group

Copyright @ 2012 Estate Avenues , all rights reserved throughout the world. Registered Editorial Marketing and Subscription office – F-3/G-13, South End Apartment, Charmwood Village, Eros Garden, Suraj Kund Road, Faridabad – 121009, Haryana, India. Printed, published and owned by Suraj Sharma, Editor SL Talwar, Place of Publication – F-3/G-13, South End Apart-ment, Charmwood Village, Eros Garden, Suraj Kund Road, Faridabad – 121009, Haryana, India. Printed at – Gokul Offset – D-159/A, Okhla Industrial Area, Phase – 1, New Delhi - 110020 Registered with RNI New Delhi.

CAUTION ADVICE, RESEARCH: Articles and advertisements in Estate Avenues are purely for information purpose and represent neighthyer endorsement nor recommendation of such companies by the Publisher, Editor and their agents. Readers must always take relevant professional advice before entering into any contract with companies or persons described in the maga-zine’s articles and advertisements.l The publisher and the editor can not accept any responsibility for transactions between readers, advertisers and companies appearing in Estate Avenues.

While reasonable care is taken to insure the accuracy of information Estate Avenues at the time of preparing for the press, no responsibility can be taken for any error that may have crept up inadvertently, or consequences of action based on any mate-rial contained herein. The views expressed in Estate Avenues to not necessarily reflect those of the Publisher or the Editor. We welcome unsolicited material for consideration, however, Estate Avenues accepts no responsibility for them.

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EstatE avEnuEsThe Leader in reaL esTaTe informaTion

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ediToR’s desk

With the current economic scenario, the residential

market is witnessing subdued demand that has in turn lead to a slowdown in the new project launches along with delays in project deliveries. High

borrowing costs, rising input prices, slowdown in transaction activity and inventory pile up has resulted in cautious approach by both buyers and developers.

Government initiatives have played and are likely to have a major role in the growth of the real estate sector. The recent Budget for 2013-2014 focused on affordable housing with the announcement of additional housing loan interest deduction, increased allocation for rural housing loans and introduction of funds for urban housing. Though still to be made an Act, the recent approval by the Union Cabinet for the Real Estate Regulatory Bill is welcome news as it is expected to bring forth higher levels of transparency and accountability from the developer community thereby boosting buyer confidence. Also, The Reserve Bank of India is expected to lower interest rates in the coming months, which would further boost the sentiments of developers and buyers. Overall, improved infrastructure and government initiatives for comprehensive rural and urban development in the next few years will have a positive impact on the real estate sector.

Given the current momentum in the NCR real estate market, the residential sector is likely to witness stable demand and supply dynamics in the short term. Prices are likely to remain stable across most micro markets with marginal price appreciation expected in select locations of Gurgaon and Noida. Given the recent hike in the circle rates in Delhi, demand is likely to remain stagnant in the coming few months due to cautious buyer and seller sentiments.

Moreover, locations such as Mullanpur, Dera Bassi and Zirakhpur around Chandigarh have witnessed robust upcoming supply of residential units. Connectivity to the markets of north India and relatively lower real estate costs compared to

Gurgaon and Noida are anticipated to provide the required impetus for development of the city.

Dehradun has witnessed rapid industrial and IT development over the last few years, which has led to robust real estate activity with growing demand for residential and commercial real estate. The State Government is taking initiatives for promoting the IT/ITeS industry in the region. For example, Dehradun is still an emerging market and would establish itself as an attractive real estate destination over the next few years.

Himachal Pradesh: With the large scale industrialization in the state, the real estate boom happened in Himachal Pradesh over the last few years. Demand for commercial and residential properties has seen a rise with the growth of the large industries such as pharmaceutical and packaging to name a few. Developers are coming up with residential properties such as holiday homes/second homes along with group housing projects by prominent developers such as Omaxe as well. The Himachal Pradesh government is exploring the possibility of inviting Foreign Direct Investment (FDI) in the housing sector as the demand for housing has gone up in the state.

Tier II and III cities offer investment avenues for individual investors with lower risk appetite constrained by the investment/ticket size. In north India, besides NCR, Tier II and III cities such as Greater Noida, Chandigarh, Jaipur, Lucknow, Ludhiana, Bhiwadi, Himachal Pradesh, Dehradun, Panipat, Sonepat and Neemrana to name a few are emerging as attractive real estate destinations witnessing robust growth in real estate activity over the past few years. The demand drivers for these cities include low land cost, land availability, increasing high income population and infrastructural developments.

Prices are likely to remain stable except marginal appreciation in NCR

S L TalwarEditor

[email protected]

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ContentsJuly 2013

www.estateavenues.in

10Publisher’s Desk

12NEWS

26Realty of the South

36 Real Estate Regulation & Development Bill fails to address key issues

40 Boom in Ludhiana property 2013-14 after two years lull

EstatE avEnuEsThe Leader in reaL esTaTe informaTion

Don’t miss The latest excitement about real estate

Now available on

This Magazine is available on

2646North India Real Estate Report Will North India Real Estate Market be Cheerful or Gloomy in 2013-14

50 Delhi-NCR 61 Sonepat-Kundli

63 Faridabad

66 Gurgaon

67 Bhiwadi

68 Punjab 69 Chandigarh Mohali Panchkula

77 AmritsarLudhiana

79 Jalandhar Bhatinda

80 Patiala

81 Himachal 83 Kasauli

86 UP 86 Lacknow

89 Meerut

90 Mathura- Vrindavan

36

96

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EstatE avEnuEs | juLY 2013www.estateavenues.inwww.estateavenues.in

92A Growing trends of luxury residences in India

93Realty Regulation Bill How the Consumers Stand to Gain

94Luxury living in SAHA Amadeus

96Private Equity Funding for Real Estate Projects Options Extent Implications

100Bring in the warmth of colours this monsoon

102Q&AHave property grievances, tell us

103Project

114Vaastu Vaastu makes your business profit-friendly

42100

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Co

ver

Sto

ry

Trendsetters of buyer-developer

environment

Amrapali Group: Appreciating Excellence in Real Estate

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PublisheR’s desk

We believe that with all the right ingredients, one’s home can far exceed the mere purpose of putting

a roof over your head. The home is a nest, a comfort zone to which you return after a busy day at work. There, you can feel world’s away from the office unwind and have quiet moments of reflection, or spend quality time with your loved ones.

In all our residential developments, as with our other endeavors at Estate Avenues, we strive to meet the ever rising modern urban homeowner. We respect the importance of nature, and the basic human need for balance. This is reflected in our strategically chosen locations of our flagship residential complexes—typically, peaceful surroundings in full view of lush, natural green landscapes, while offering 21st century amenities and remaining within reach of the city.

Exactly a year ago, we launch Estate Avenues monthly magazine which hits the newsstands across India last September. Within a short span of time, we successfully organized first ever Real Estate Expo, Panel Discussion and Real Estate Awards at Hotel JW

Marriott in Chandigarh. With the full support of the real estate industry who are with us since the inception of Estate Avenues, we are organizing our 2nd Expo, Panel Discussion and Real Estate Award in August-September this year in Delhi-NCR in less than a year time. We hope, this time again, we will get your support to make the show successful.

Lastly, I want to emphasize that running a great magazine depends on the creativity, energy and passion. The Estate Avenues team worked incredibly hard all year long with one goal in mind: to give you the best residential, retail, commercial and shopping center magazine on a monthly basis. I think you’ll agree that our product reflects our commitment.

We need right ingredients for home for peaceful life

Suraj SharmaPublisher & CEO

[email protected]

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Sikka Launches ‘Sikka Kartavya Greens’

sikka, leading real estate developers of North India, after successfully

delivering many magnificent projects in Delhi and Noida, now forays into new region, Meerut. Sikka is making once again a grand entry into the State of Uttar Pradesh by launching the residential project ‘Sikka Kartavya Greens – a modern living space for family’ at GH-01, Sector 7, Pocket B, Vedvyas Puri, Meerut, UP.

Sikka Kartavya Greens is going to be the highest residential tower in Meerut with 76 metres of height and S1+S2+25 floors. Top two floors of all towers is unique glass covered penthouse with splendid view on all sides. The total area of the project is more than 300000 sq. ft. which comprises 2&3 BHK in the sizes of 995 sq.ft. to 1360 sq.ft. The Penthouses are available in 3 BHK & 4 BHK with features like, gym, servant

room, lounge area, home theatre and terrace garden.

On the occasion, Mr. Gurinder Singh Sikka, Chairman, Sikka said, “We are very delighted to launch ‘Sikka Kartavya Greens’, a luxury project. It has all those features which one requires for modern living. We are providing the best possible facilities & amenities which will surely give the proud owners a delight and different feeling”.

Artistically designed by renowned ACPL architects, the key features of the project are 24X7 round the clock 3-tier security with intercom & CCTV, Five star ambience entrance lobby in each tower, huge entrance gate with fountain and Boom-Barrier, exclusive club, fire-fighting equipments as per latest norms, 24X7 water supply with 100% power back up, amphitheatre, broad band connectivity and rain water harvesting etc.

Regus sets up maiden business centre in Gujarat Luxemburg-based Regus, the

world’s largest provider of flexible workplaces, today made its foray into Gujarat, opening a new business centre at Memnagar in Ahmedabad, which is western India’s commercial and industrial powerhouse.

Regus’ debut in Gujarat is part of the company’s core strategic investment in India. With the new centre, the company has further consolidated its position as India’s number one provider of flexible workspaces. Regus, which established its first office in India in 2005, now has 47 centres. Business has been encouraging too; the last 12 months saw an impressive 42% rise in business.

The new office located at GCP Business Centre is strategically located at Vijay Char Rasta, the nerve centre of Ahmedabad’s professional and entrepreneurial ventures. The new 24-hour centre offers 43 ready-to-use offices, 148 work stations, a business lounge, meeting space, video conferencing suite, high-speed secure internet and a coffee bar. These apart, there is multilingual reception and administrative support.

Madhusudan Thakur, Regional Vice-President - South Asia, Regus said, “Regus goes to locations that matter. We focus on places where local and international businesses congregate. Gujarat is already the foremost industrially developed state in the country, driven by industries and services sector. Through our first venture in Gujarat, we look forward to helping local firms grow in the city and through the entire region.”

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EstatE avEnuEs | juLY 2013www.estateavenues.in

News

haridwar: The Uttrakhand based Developer KBJLPlus has

introduced its first project ‘Gulmohar Apartments’ in Haridwar on the National Highway 58. Dedicated to modern lifestyle, the project is designed keeping in mind the every single need of the authority, replete with state of art facilities and surrounded by lush green beauty of the mountains and privacy.

The project is spread over an extent of 1 acre and 70 service apartments are anticipated with an area of 431 Sq feet. The Service apartments will be ready to own as they are said to be fully furnished with modular kitchen, refrigerator, microwave, gas burner, dinner set for 4, Air Condition and DTH theater all Pre installed. Double bed and sofa cum bed will also be given in bedrooms and drawing room.

Each entity is vaastu compliant and is supported by power backup, wooden flooring, round the clock security, landscaped gardens, children’s play

areas focusing on the security needs of the authority. The Project will also have kitchen for Food &Beverages on Order and a dormitory for drivers. The project is surrounded by world class commercial and entertainment facilities and will have High appreciation value in future.

As per Mr. Pradeep Agarwal, Director, KBJIplus” The face of Haridwar has changed enormously in last 10 to 15 years. Due to this, the executives working in the companies operating in SIDCUL are demanding a high end service apartment for them. Keeping this in mind we have launched this project with world class facilities”.

These apartments can be owned at a very reasonable cost of `11.99 lacks including all the facilities mentioned above. The construction of first phase consisting of around 40 units has already started. The possession will be given to the buyers by March 2014.

KBJIPlus launches Project “Gulmohar Apptt” in Haridwar

Assotech Realty launches ‘Sandal Suites’ at Shirdi

Assotech Realty Pvt. Ltd, the harbinger of ‘serviced residences’ across India

has launched premier service residences at Shirdi, christened as ‘Sandal Suites’ at an approximate cost of rupees 100 crores. This is first of its kind ‘service residence’ meant to cater to the needs of pilgrims traveling to Shirdi and expecting comfort and luxury at affordable cost.

With over 10 lakh visitors thronging the city every month, Shirdi is amongst the most frequently visited spiritual epicenter of the saint Sri Sai Baba. Sandal Suites – Shirdi’ will offer ultramodern design, infrastructure and amenities embracing warmth, simplicity and youthful vitality to create a stimulating environment to seek refuge in realm of relaxation and tranquility.

Sprawling over 2.5 acres of land, Sandal Suites – Shirdi will have 125

elegantly designed suites set amidst large spance of landscaping and water bodies. Just walking distance from Shirdi Shrine, the project will have a small Sai Temple and Satsang Hall along with Pooja area and meditation centres.

Commenting on the offering, Mr. Neeraj Gulati, Managing Director – Assotech Realty Pvt. Ltd said “luxury and innovation has always been our forte. We have done an in-depth research on identifying the location and approaching it with a different aspect to make it subtle yet fruitful proposition for pilgrims. This is an opportunity to not only own a home in the spiritual town but also make it earn valuable income from the asset so created. The investment is meant to bring recurring returns to the tune of (18 – 20 %) Y-o-Y basis with expected daily rental between five to six thousand approximately.”

DLH Ties-up with MegapanDLH has since 1908 been trading in

timber and wood products all over the world, has tied up with Megapan to bring in a revolution in the partition board industry by bringing Megapan Base, a Magnesium Oxide type board, to India.

Megapan Base is a technologically advanced building material that offers superior performance in every category when compared to traditional wood, gypsum and cement board based products. It is manufactured from a combination of magnesium oxide and magnesium chloride as its main materials. Megapan is mainly used in exterior and interior wall partitions and ceilings, and the boards are fireproof, waterproof, has very good acoustic properties, easy to handle, are extremely strong and lightweight, and show no erosion. Megapan Base is 100% termite and algae resistant. They offer extensive possibilities to the design of the building and can therefore be used to replace traditional board materials. It is well-suited for use in both indoor and outdoor areas as decorative or construction panel and adds a unique look to your living space. In comparison of other Magnesium Boards available in the market, Megapan is having a unique property which comes from a revolutionary production method as well as an in-house developed binding agent, which makes it superior to all other available magnesium oxide boards.

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News

Godrej Properties adds a new project at a prime location in New DelhiGodrej Properties Limited (GPL) (BSE scrip id: GODREJPRP), the real estate

development arm of the Godrej Group, through its subsidiary, has entered into a Development Agreement with M/s Southend Infrastructure Private Limited, to develo p a 5 acre property situated in Okhla Phase 1, New Delhi. The project will be developed as a luxury residential group housing project.

This prime parcel of land is strategically located near affluent parts of South Delhi on the main road going towards Mathura Road from Greater Kailash. Upcoming road infrastructure will further enhance the connectivity of the project to Central Delhi, Noida, Jasola, and Faridabad.

This will be Godrej Properties’ first development in New Delhi and its third in NCR. The company is also currently developing two residential projects in Gurgaon. This project is expected to be the first project under the residential investment platform that Godrej Properties established in FY13.

We are happy to enter our first project in New Delhi. NCR is a key part of our growth strategy

and we believe this project’s strategic location will help grow our presence in the region. We will make every endeavour to deliver a world class residential project.

Mr. Pirojsha GodrejManaging Director & CEO Godrej Properties

s.Oliver to invest 20 million euros in Indias.Oliver, the German Fashion and

Lifestyle Company has restructured its collaborative arrangements in April 2012 to partner with Design Pod for its business in India. Over the last year, the partners have completed far-reaching structural changes within the business and will expand to over 30 point of sales in 2013 in order to raise the brand´s share in the Indian market. The company also plans to introduce the s.Oliver Junior line in October 2013, as part of the expansion plans that will enhance its product portfolio and position s.Oliver as a brand for the whole family.

Speaking about the new strategy, Managing Director of s.Oliver India, Rajive Ranjan said, “‘Proceeding in Giant Steps’ is the new motto for s.Oliver India. The year 2013 will be the first step towards a successful and enduring growth of the brand in the country. We want to triple our market presence from the current 10 to over

30 points of sales during the next months. With our new strategy we are confident that s.Oliver will beat up to 200 point of sales by 2016”.

s.Oliver India will be investing 20 million euros towards its goal of 200 point of sales, of which 2 million euros will be invested into the 30 point of sales that are slated to be open by the end of 2013 itself. “s.Oliver has a global sales volume of 1.3 billion euros worldwide. India is a challenging market with a lot of potential. It gains a significant importance for our global portfolio and will be in focus of our expansion plans in the next years,” said Thomas Steinhart, CFO of s.Oliver Bernd Freier GmbH & Co.KG.

As part of the expansion strategy, s.Oliver India will focus on Northern India targeting cities such as Delhi NCR, the major cities of Punjab, as well as Rajasthan, Uttar Pradesh and Uttarakhand.

The Sterling Guide to Vaastu by Naresh Singal

It is small book that tries to de-mystify Vaastu for you. In the recent

past, with the boom in housing in the country a lot of attention has also gone to Vaastu. People want to employ the principles of Vaastu in their homes and workplaces to get the maximum benefits of energy that various elements and directions can bring.

Author is an expert in this field. He has studied the various structures from the past as well as from the present to add to the theoretical knowledge of this ancient science. He takes you through the cross sections of various modern and ancient structures and explains how the energy flow in those structures helped the dwellers of those buildings. He talks about her experiences of dealing and their usual expectation and the kind of solutions that they are generally looking for. He carefully explains what should be the intention behind choosing the right Vaastu and not look at it as something that will give you some instant material benefits.

He takes the reader through the very basics of Vaastu, introducing the vaastu purush and how it lies within a house and talks about what sections of the house are good for what and how the nakshatras of the house owner have to be matched while working out the perfect vaastu solutions for the family. It introduces you to the science behind the concepts and how they can help balance the energy in the space that you live. It explains that your personal energy has to be aligned to the energy of the space so that energy in maximized.

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Realty major, Sobha Developers Ltd., has been recognised as the Best

Indian Company in the Real Estate Sector by Dun & Bradstreet (D&B), the world’s leading provider of global business information, knowledge and insight.

Sobha was bestowed this honour at the ‘D&B Corporate Awards 2012’ function, held on May 28, at Hotel Trident in Mumbai. The award was presented to Mr. J.C Sharma, Vice Chairman and Managing Director, Sobha Developers Ltd. by Mr. Jayant Kumar Banthia, IAS and Chief Secretary to the Government of Maharashtra.

Expressing his happiness on the receipt of this award, Mr. J.C Sharma said, “I am truly humbled to receive this Dun & Bradstreet (D&B) award for Sobha

Developers. Over the years Dun & Bradstreet’s “India’s Top 500 Companies” publication has become an important reference document for all Corporates around the country. And to be specially recognized by them in the real estate sector is a matter of pride for all of us.”

“Sobha was established in 1995 with a clear vision to transform the way people perceive quality. Today, 313 projects later,

Sobha is a brand trusted for perfection. And this award is indeed a testimony of the work done by us in the past 18 years.”, he added.

Sobha’s superior execution capability is one of its core strengths. As of March 31st, 2013, in the past 18 years since its inception, Sobha has completed 85 real estate projects and 228 contractual projects covering about 56.25 Million Square Feet of area.

The Company currently has 43 ongoing real estate projects aggregating to 25.83 Million Square Feet of developable area and 10.65 Million Square Feet of contractual projects under various stages of construction. Sobha has made a footprint in 23 cities and 13 states across India

Sobha Developers awarded Best Indian Real Estate Company by Dun & Bradstreet

Viviana partners with retailers to develop the next generation shopping destination

Viviana (formerly known as Vivacity), one of the largest malls in India by Sheth developers, is being developed in collaboration with the retailers to ensure

an enriching shopping experience for the consumers. Viviana’s pioneering efforts in developer-retailer relationship management will set industry benchmarks for creating next generation shopping destinations.

Viviana Mall’s innovative design and attention to details while complimenting the surrounding environment, has won the most prestigious awards in the property industry- Asia Pacific Commercial Property Awards 2010. Viviana project was judged as the ‘Best Retail Development (India)’. The structural elements, proportions and compositions of the building, along with the project’s efficient use of space, won it the title of ‘Highly Commended’ in the ‘Architecture Award (Retail)’ category at the Asia Pacific Commercial Property Awards program.

Godrej Properties launches the 5th phase of its residential project in Kolkata

Godrej Properties Ltd announced the launch of Phase 5 of its residential

project in Kolkata – Godrej Prakriti. The new tower, standing 19 floors tall, will offer 3 BHK modern apartments measuring between 1,100 sq. ft. and 1,400 sq. ft.

Godrej Prakriti is strategically located on BT Road and is a few minutes away from the closest bus stop, railway station, auto-rickshaw stand and taxi stand. The proposed Metro Railway extension from Baranagar to Barrackpore will be in close proximity. Renowned English-medium schools such as St. Xavier’s Institution, Adamas International, and Aryan’s fall within 3 km-radius.

Spread over 22 acres of lush greenery, Godrej Prakriti offers all the comforts and conveniences of modern, urban living, along with natural tranquility. Facilities such as a community hall with indoor games, playground, clubhouse, swimming pool, library, gym, party hall, etc. are also planned within the complex. The flats open out to sweeping views of the landscaped gardens, serene waterfront or the cityscape offering a perfect, relaxing getaway at the end of a tiring day.

Mr. Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, “We are happy to launch Phase V of Godrej Prakriti. It is our endeavor to offer customers a modern lifestyle and an environmentally friendly living. We have already started handing over the first phase of the project.”

News

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Knight Frank India, one of the leading International Property Consultants,

inducted two new senior management executives to strengthen its leadership team to drive the next level of growth and transformation.

Rajeev Bairathi and Satish BN will join Knight Frank as Executive Director - Capital Transaction Group and North; and Executive Director – South respectively. With these key appointments in New Delhi and Bangalore, Knight Frank India has also signaled its intent to aggressively grow its North and South businesses.

After the appointment of Shishir Baijal last November as Managing Director & Country Head, this is another important move by the firm to reinforce its commitment to the Indian market, and boost revenue growth by leveraging market opportunities. Alistair Elliott, Senior Partner & Group Chairman, Knight Frank LLP said, “The new executives bring a great depth of knowledge and experience that will be crucial for our India growth strategy. We intensified our focus on the Indian subcontinent with Shishir Baijal’s appointment as Managing Director & Country Head last November. The additions will have a positive impact on our long-term plans for continued

Knight Frank reinforces India growth with the appointment of new executives; increases focus on North & South

Rajiv BairathiExecutive Director - Capital Transaction Group and North

Satish BNExecutive Director, South

Capital Transaction Group

Parsvnath announces execution of Development Agreement with Rail Land Development Authority (RLDA) for Sarai Rohilla land

Parsvnath Group (Parsvnath), India’s leading real estate and infrastructure

developer with a diversified portfolio, announced the execution of a Development Agreement with Rail Land Development Authority, Ministry of Railways on May 31, 2013 for the development of 15.27 hectares (38 acres) of railway land area situated at Sarai Rohilla-Kishanganj, Delhi.

Pursuant to the selection of Parsvnath Developers Limited (“PDL”) as “Selected Bidder” by Rail Land Development Authority (“RLDA”) in a tendering process for development of 38 acres of railway land area situated at Sarai Rohilla-Kishanganj (“Project”) vide Letter of Acceptance dated November 26, 2010, the Company has, after meeting the conditions precedent and completing various formalities, executed, as Selected Bidder, a Development Agreement amongst the Company, RLDA and Parsvnath Rail Land Project Private Limited, a special purpose company incorporated for implementing this project.

This project will be developed over an area of about 38 acres, comprising of Luxury Air-conditioned Residential Apartments, Commercial/ Shopping areas, Railway Housing, Railway Service Building & Common facilities, Hospital/School and other amenities, State of the Art Club with Gymnasium and sports facilities, etc.

Commenting on the aforesaid development, Mr. Pradeep Jain, Chairman, Parsvnath Group, said: Consequent upon securing the bid for development of 38 acres of railway land area situated at Sarai Rohilla-Kishanganj, Delhi from RLDA in November, 2010 for an aggregate value of `1651 Crores, the Company has so far made payments of two installments aggregating to `660.60 Crores and has completed requisite formalities pursuant to which the Company has executed the aforesaid Development Agreement with RLDA for development of the project.”

Dazzle your feet with the glittering ‘The Bling Collection’ from Senoritacinderella, the most applauded princess, married her prince charming wearing the

sparkling glass bespoke. This wedding season you can also be in her shoes and walk down the aisle in style with the new and gorgeous range of Senorita’s ‘The Bling Collection’ by Liberty. ‘The Bling Collection’ is eminently stunning, whether it’s for the new bride, bridesmaid, mother of the bride-to-be, or nearly anybody going to attend a wedding. Inspired by the new beginning in every woman’s life, this collection is the perfect choice for the special occasion.

Be it the Wedding Day, Sangeet Ceremony, Engagement Party or any other ceremonial merriment, the new wedding collection from Senorita promises to give you and the bridesmaid, the most elegant sophisticated and graceful look.

Most wedding shoes for women bring glamour and elegance but completely overlooks the comfort quotient. Liberty’s ‘The Bling Collection’ by Senorita focuses on comfort without compromising the beauty and grandeur. Thus, say goodbye to sore feet!

Senorita Bling Collection comes in bright Gold, Silver and Copper colors with Sequins, Beads and Embroidery to enhance the allure of anything you wear, from a traditional Banarasi silk to the unconventional designer dresses.

profitable growth, greater productivity, and geographic expansion.”

Rajeev Bairathi has an extensive experience of over 16 years in corporate finance and real estate transactions. He has successfully built DTZ’s investment advisory, valuation, and consulting capabilities in the North, and has also set up its land transaction vertical. Prior to DTZ, Rajeev has worked in Reliance Industries, E&Y, and Bharti Retail.

Satish BN has a vast experience of more than 18 years in real estate industry having worked in K Raheja Group of Companies, CBRE, and DTZ. At CBRE, he was responsible for advising and managing real estate portfolios of various IT and ITES companies such as Intel, HP, American Express, Cadence, Cisco, Lucent, Mentor Graphics, NCR, Nortel, etc.

News

18


The DLF Mall of India, Noida announced the names of its key

tenant partners at a retailer convention that took place in Noida recently. DLF Mall of India which will be a fashion destination in the country is a project with an investment of `1100 crore and has inked agreement deals with the world’s leading international retail brands many of which will open their first flagship store in India. Amongst the established international labels are Uniqlo, Marks & Spencer and Forever 21, that will showcase their eclectic ensemble in the International Boulevard zone.

The International Boulevard which is spread across 5, 60,000 sq. ft. retail space is going to see the presence of large format twin level stores of:- Uniqlo (40,000 sq. ft. GLA.), Forever 21 (40, 000 sq. ft. GLA) and Marks and Spencer flagship (68,000 sq. ft. GLA). The tenant mix of the debutants as well as existing international brands will make DLF Mall of India a fashion destination in the country. Currently 50 percent of

We are approaching key milestones and have completed over 50% of leasing presently. We are

extremely proud of our partnerships with national & International brands that are going to make debut in the country through their first flagship stores in DLF Mall of India. Bringing these global brands to one stop destination reaffirms our commitment to the retail industry and our discerning customers. We look forward to a long lasting and successful relationship with all our partners and hope that the mall and the brands receive warm response from the customers.

Pushpa BectorSenior Vice President Heading DLF Mall of India

DLF Mall of India announces national & international brands as tenant

space has already been leased out to the renowned and popular retailers.

The DLF Mall of India has also signed other well recognized and leading franchisees of international premium fashion labels like Major Brands, Arvind Ltd, Aditya Birla Nuvo to unveil more than 30 international labels in the mall across 120,000 sq. ft. of retail space.

Strategically located in NOIDA, the DLF Mall of India is modeled after international flagship properties, the 1.8 million sq. ft. mall is set to make an offering that will be spread across six levels of retail experience with zones marked as, International Boulevard, Market Place, High Street, Family Hub and Entertainment City. The unique differentiator of the mall is the creation of experiential shopping zones. This will give consumers a feel of shopping at an entire mini city or, many malls within a mall.

With many first to its portfolio, the DLF MoI will have over 450 brands under one roof. It will house a 1, 10,000 sq. ft. GLA hyper market Reliance Mart in The Market Place zone. The second zone of the mall which would be the High Street will house the cult high street fashion under one roof. It will host an array of brands such as Anita Dongre, Global Desi, Meena Bazaar, Kalpana, Study by Janak, Shakuntalam, etc. An added feature is the largest indoor Entertainment City of the country, which will be spread over 2 levels – with 7 DT star screens. The Funcity which is a leisure division of Landmark group would set its first super flagship store across 28,000 sq. ft. GLA. The DLF Mall of India will host the largest food court with 1200 seating space. It will offer a delectable dining experience through 22 casual dining restaurants.

Leading international property consultants Jones Lang LaSalle

India have successfully concluded the largest M&A real estate deal in Pune this year to date. Acting on behalf of the company holding BlueRidge Special Economic Zone (SEZ) Phase 1, the Firm’s Capital Markets team has successfully facilitated the sale of 100% equity in the company to IDFC Limited, one of India’s largest domestic financial institutions.

The enterprise valuation achieved is approximately USD83 million (INR 4500 million) and the equity stake will be bought in phases as per defined milestones.

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, “Hinjewadi is the leading IT Hub of Pune and continues to be among the biggest draws for IT-based corporate occupiers as well as private equity investors. This M&A deal had been carefully structured to ensure optimal value for both parties.” BlueRidge SEZ is an IT SEZ being developed by Paranjape Schemes, one of the largest developers in Pune.

Aditi Watve, COO - BlueRidge says, “Phase One of the SEZ has approximately 1.45 million sq ft of leasable space and is already operational, with key tenants such as Accenture, Cisco and L&T. The closing of this deal is undoubtedly one of the highlights of our relationship with Jones Lang LaSalle India over a number of years. We found JLL a well-networked, client-focused partner who helped us achieve the right valuations and find the right investor.”

Jones Lang LaSalle India was instrumental in raising the private equity capital for this project in 2007 on behalf of Paranjape Schemes. This deal definitely underscores Pune’s continued and ever-increasing potential and attractiveness as a IT destination of choice.

Jones Lang LaSalle India Closes Pune’s Largest M&A Deal Of 2013 At BlueRidge SEZ, Hinjewadi

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AG8’s (Aakriti Group) new offering – Aakriti Aquacity “Powai”new Delhi: Water is one of

the most important things on earth. Consider living a life in a place where there is water everywhere around you. Aqua City is a refreshing concept in township-living, inspired from water; coming in the form of fully integrated structure that is supported by great planning, architecture, soul-pleasing beauty and the quality & trust of the AG8 (Aakriti Group).

Bhopal’s very own Aakriti Aquacity introduces Aakriti Aquacity “Powai”, the spacious 4 BHK bungalows. Set amid this uniquely designed township, these bungalows offers a great opportunity, to experience the luxury of spaces. These bungalows not only provide a spacious inside but also an ample space on the outside. To add to it Aquacity “Powai” also offers all the modern amenities of the Aquacity Township, which means the best of both worlds, enjoy free living as well as enjoy the pleasure of abundant greenery, contemporary architecture, and well planned water bodies.

Hemant Kumar, CMD, AG8 (Aakriti Group), says, “With an endeavor to give the luxurious and spacious living to the residents of Bhopal, we are introducing Aakriti Aquacity “Powai”. The spacious 4 BHK Bungalows are located at uniquely designed Aakriti Aquacity Township. Surrounded by beautiful gardens, wide walkways and Aquacity’s water bodies, these bungalows present a great environment to enjoy a life of luxury and comfort.”

Each of the Bungalows at Aakriti Aquacity “Powai” offers open spaces on its 3 sides, spacious bedrooms, abundant sunlight during the day, well ventilated rooms, adequate parking space for two cars and many more.

One of the emerging real estate companies of India, Advance

India Builders & Promoters Pvt. Ltd. (AIBPL) has launched their ambitious project “Advance Saga Castle” a unique mixed-use commercial development being constructed for the first time in Bhiwadi on Bhiwadi-Alwar Express Highway (SH-25). It will be the tallest commercial tower in Bhiwadi and surrounded by many residential projects that already taken possession.

Saga means Legend and Castle denote Tower, so the name Advance Saaga Castle represents an adventurous legend tower with a bunch of different concept and will be one of the prominent iconic tower.

According to Mr. Ajay Yadav, Chairman, Advance India Builders & Promoters P. Ltd. “We are happy to launch the tallest commercial tower of Bhiwadi, The project will be similar to international towers and it accommodates all the facilities under a single roof, fun, entertainment, shopping, food court, offices, and the luxury maharaja suite.

Advance Saaga Castle is a unique

AIBPL Launches the Tallest Commercial Tower of Bhiwadi

concept where classic luxury blends with contemporary lifestyle, organized retail, fully-furnished raw office spaces, entertainment and fun zone, Corporate Business Centre, Theme based restaurant, Maharaja Luxury suites.

The floor wise distributions have done on the basis of commercial importance and detailed study on present emporium statuses. The lower floors (Ground, first and second floors) will be accommodated by multinational companies for their show room outlets. Third floor is dedicated to Food Court & Rrestaurants. Fourth Floor credits Entertainment & fun zone such as, health club, beauty salon, spa, yoga center, kids zone and games etc. On Fifth floor AIBPL introduced CBC, the Corporate Business Centre first time in Bhiwadi. The USP of this CBC is that one can hire an office on hourly basis also, Sixth and Seventh floors have kept aside for fully furnished and raw office spaces eighth floor is reserved for services and again a very unique concept Maharaja Luxury suites with swimming pool & garden on ninth and tenth floor for the first time in Bhiwadi.

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Nautinati- the premium kidswear brand launches exclusive store in Noida

Premium kidswear brand Nautinati, owned by Omega Designs, a 20 year

old garment exporter for top premium brands in US and UK has made its debut in Delhi-NCR by opening its kids wear store in Noida at Great India Place. The outlet spreads across an area of 917 sq .ft. Nautinati already has two exclusive stores in premium malls like Phoenix in Bangalore and Rahul Raj in Surat.

Speaking at the store launch, Mr. Shantanu, Managing Director, Nautinati, said: “We as a brand believe that children are just children, they are neither teens, preteens, nor adults. Every parent desires comfortable but trendy clothing for his kid. Hence, we focus on making clothing which not only looks good but is extremely comfortable for kids.”

The design studio of the brand is based in Italy, the Mecca of fashion. Offering high-end clothing for kids, the brand aims to set new benchmarks in the country for kidswear by introducing international quality designs and trends. Nautinati will offer special inaugural discounts of 30%.

Avenue Venture to invest `55 Crore in Casa Grande, Chennai

casa Grande Pvt. Ltd., one of Chennai’s leading premium real estate enterprises today announced that Avenue Ventures Real estate Fund, Mumbai has invested

`25 Crore at Project level. This is the first tranche of investment out of the total planned investments of `55 Crore.

Casa Grande is a real estate company based out of Chennai started in year 2004, with spreads to Coimbatore and Bangalore. Casa Grande has developed 2.5 Million sq.ft across 32 projects and has a projected pipeline of `1,000crores for this fiscal.

Avenue Ventures is a Mumbai based Real Estate Fund focused on investments in residential projects with developers having a good growth trajectory in western and southern India.

The proposed luxury apartment project is a 2.4 Lakh sq.ft apartment complex with all lifestyle amenities and features coming up in Thoraipakkam, OMR. The project is conceived to have a contemporary architecture with prominence for significant community spaces that make enriching living experience.

Speaking on the investment Mr. Arun Kumar, Founder and Managing Director, Casa Grande Private Limited said “We are happy to be associated with Avenue Venture and believe that we will provide a good investment platform for the PE investor. Avenue Venture partner has invested at project level and the Project is strategically located in Thoraipakkam which is the most sort-out locations on OMR.”

Jones Lang LaSalle’s Segregated Funds Group announces first closing of `101 Cr for its maiden fund

Jones Lang LaSalle’s Segregated Funds Group today announced the first closing of its maiden real

estate fund in India; Residential Opportunities Fund – I (ROF – I). The fund raised `101 Cr of capital commitments in its first closing, in line with the INR 300 Cr total fund raising target.

The Segregated Funds Group is a new entity setup by the global consultancy firm to raise a series of funds with dedicated investment themes for the Indian Real Estate Market. Scheme ROF –I was amongst the first real estate funds to be registered with SEBI under the new Alternate Investment Funds (AIF) regulations. The objective of the fund is to invest in the residential sector in prominent location across seven cities in India, namely Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Kolkata, Hyderabad and Pune.

Commenting on the fund’s first closing, Mridul Upreti, CEO, Segregated Funds Group said, “We are extremely appreciative of our investors for their support to our fund. The current times provide an attractive opportunity to generate higher risk adjusted returns for investors by securing investment opportunities that have shorter development cycles and good locational attributes. We believe the depth of our experience, analysis and relationships in the market, positions us to capitalize on this opportunity”. Axis Bank Private Limited acted as the placement agent for Scheme ROF – I.

Nitesh Estates Ltd Signs Up `300 Cr Nitesh British Columbia Project

nitesh Estates Limited announced its ` 300 crore mid-income

housing project, British Columbia in south Bangalore. The project, coming up at Kanakapura Road in southern Bangalore, will house 500 apartments ranging from a large 900 sq. ft. up to 1800 sq. ft. The configuration of apartments will be 2BHK and 3 BHK. The apartment prices would start at `35 lakh and go up to ` 80 lakh depending on the unit size.

Nitesh Estates Limited has presently 15 residential projects at various stages of construction, with a developable area of 11.82 million sq. ft. and plans for future development of approximately

5.3 million sq.ft. area for residential and commercial development in near future. These mid-income apartments with adequate space planning and well thought through interiors and with close proximity to Shopping Centers, Schools and Health Care facilities make it one of the most sought after places to live in Bangalore.

Speaking at the launch Mr. Ashwini Kumar, Executive Director and Chief Operating Officer, Nitesh Estates Limited said, “We have seen brisk take up of our middle income projects. We see this continuing in near future given the now established preference of the market for residential projects like British Columbia as these are not only accessible to their workplace, but also offers better connectivity and excellent features and amenities”.

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News

India’s largest ‘HOT’ marketplace opens in Delhihoused in a an area of 40,000 sqft ,the House of

Technology ( HOT) is a breakthrough initiative by Unique Infoways, an established IT & electronics re-seller, designed to raise the bar in electronics & IT retail and set new benchmarks in the way consumers interact and purchase products in this category. This new plush marketplace located at the Nehru Place Metro station is undoubtedly set to become the new, happening destination for IT & electronics products.

HOT has several “firsts” to its credit: The first strategically located electronics outlet in a buzzing metro; the first store to remain open 24X7 the year round; the first to host close to 100 technology brands under one roof; the first to offer product fulfillment solutions onsite and the first retail format that ensures maximum interactivity between customers, products and sales support staff.

The store has the most comprehensive array of products – be it laptops, desktops, peripherals, accessories, mobiles, tablets, smartphones, gaming equipment, cameras and much, much more… all showcased under their respective brands in a format that simulates a shop-in-shop scenario with well trained , knowledgeable staff on hand. Several Product Trial Stations help customers get a leisurely feel of the products prior to making their purchase decision.

More than 100 brands that include Apple, Dell, Lenovo, IBM, HCL, HP, Acer, Asus, Toshiba, Fujitsu, Samsung, LG, Blackberry, HTC, Nokia, Sony, Motorolla, Micromax, Canon, Fujifilms, Nikon, Panasonic, Viewsonic, Bose, Siennehiser, Jabra, iBall, Philips, Huwaei, Hitachi, Compaq, Casio are on display at the mall.

mr Lalit Kumar Jain, Chairman of CREDAI and CMD Kumar

Urban development Limited, Mumbai-Pune realty major, said: “Infrastructure development is the back bone of Urban development. This country needs robust Urban Development to increase GDP and Employment. Mumbai-Pune corridor is one of the most important development strips in the country. Coupled with the Mumbai-Pune expressway the Eastern Freeway will cut down travel time between Mumbai and Pune which is a welcome development.”

Mr Jain said: “However, we need mindset change to fully take advantage of the infrastructure development. At a time when globally urban science talks of high density urban growth with infrastructure development along with affordable housing and protecting green

We are pleased that we have been able to bring together

all the premium IT brands under one umbrella called HOT, making this a truly one stop destination for all gadget needs. I am proud to dedicate HOT - India’s largest, world class and interactive digital lifestyle centre to the people of Delhi.

Mr. Vipul JainCEO & Promoter, Unique Infoways

Affordable housing with infra development must, says Lalit Kumar Jain

zones and agriculture land, we in India seem to be living in illusion with FSI paradigm.”

“It will be a futile exercise if we do not exploit our infrastructure in a correct manner which is why we at CREDAI have been stressing for promoting housing and job centers along with infrastructure planning,” he said.

“The Eastern Freeway will undoubtedly come as a big boon for the residents of eastern suburbs and those living and travelling to Navi Mumbai. However government needs to do more for promoting housing particularly affordable segment by scrapping the FSI restrictions and allowing vertical buildings to meet the ever rising demand for housing in Mumbai which is facing tremendous land crunch,” Mr Jain added.

K V Developers Pvt. Ltd (KVD), a Noida-based real

estate developer coming up with a futuristic housing project in Tech Zone IV, Greater Noida (West) announced it has tied up with two of the biggest names in real estate development, Colliers International and C P Kukreja Associates. While Colliers International is one of the world’s leading Project Management Consultants and a global leader in commercial real estate services, C P Kukreja Associates is a world-renowned, multi-disciplinary ISO Certified Architecture & Engineering firm.

Elaborating on their collaboration with the two industry icons, Mr Aman Agarwal – Director, K V Developers, commented: “Since we are absolutely committed to offering customers best-in-class amenities and global-quality construction, it was imperative to tie-up with two of the biggest names in their respective domains.

Located in Tech Zone IV, Greater Noida (West), the premium project covering approximately five acres will have six towers comprising 2, 3 and 3+Servant apartments approx 950 to 1,500 sq ft., designed environment friendly with maximum sunlight & wide wind corridor for cross ventilation.

Keeping Indian traditions in mind, the project is located on East-facing plot, making it Vaastu compliant. Adjoining a 130m-wide road, the project is in close proximity to a proposed Metro line. Being barely 20 minutes from South Delhi, 10 minutes from the DND Flyway and 25 minutes from Connaught Place, therefore very well connected to Delhi, Noida, Ghaziabad & Faridabad (Close proximity to FNG).

In the near future, K V Developers has robust plans to expand its realty footprint into other areas in Delhi NCR, such as the Noida Expressway, Yamuna Expressway and Gurgaon etc. in luxury & mid-segment.

K V Developers ties up with Colliers International & C P Kukreja Associates

News24


new Delhi: India’s leading Real Estate Company Omaxe Limited and one of world’s largest hotel companies The Intercontinental Hotel Group (IHG) together

bring to the city of New Chandigarh (formerly Mullanpur), a five star hotel “Holiday Inn”. In an exclusive tie-up for a hotel in Omaxe’s integrated township Omaxe New Chandigarh, the company will undertake the construction of the 150-room hotel which will be managed by IHG.

The coming up of Holiday Inn is a step forward towards creation of a commercial hub in Omaxe New Chandigarh that will house two architecturally superb office and retail spaces – International Trade Tower and India Trade Tower, alongside the hotel. Landscaped greens, beautiful gardens and water bodies and wide roads to manoeuvre along are some of the ideal setup envisaged in the commercial hub.

Omaxe will invest close to Rs 200 crores in building this luxurious Hotel that will cater to corporate and the local elite, including tourists. The office and retail spaces in the vicinity have been attracting reputed companies from sectors like IT, BFSI, Retail etc in the national and international arena.

Holiday Inn has been one of the most reassuring choice for business and leisure travellers across the Globe. With over 2 lakh rooms, it is the only hotel brand that has been named the Best Mid-Market Hotel Brand in “Asia Pacific” and “Worldwide” by Business Traveller magazine for 8 years in a row.

Omaxe New Chandigarh, spread across approx. 700 acres, is an integrated township in New Chandigarh. With offerings like plots, independent floors, villas, proposed group housing, office and retail spaces, hotels etc.; the township with its greenery, clean environment and proposed creation of schools, colleges, hospitals etc will emerge as a world-class city.

India’s largest and leading international property consultant

Jones Lang LaSalle has advised on the outright purchase of 25 acres prime land at Devanhalli, Bangalore by L&W Construction Private Limited from a large Bangalore-based industrial group. The transaction value was INR 1 billion.

L&W Construction Private Limited, a 100 per cent subsidiary of Singapore’s Lee Kim Tah Woh Hup Pte Ltd, has acquired this land in one of Bangalore’s most lucrative locations to develop a high-end residential project.

Mayank Saksena, Managing Director – Land Services, Jones Lang LaSalle India said: “This is an extremely strategic acquisition for L&W Construction Private Limited, and one of Bangalore’s largest land deals of 2013 to date. The location of this land, on NH7 at Devanhalli is among Bangalore’s most promising growth corridors by virtue of its proximity to the Bangalore International Airport.”

In developing the project, L&W Construction Private Limited will draw on the extensive expertise of Lee Kim Tah Woh Hup, which is a joint venture company established by Lee Kim Tah Holdings Ltd and Woh Hup (Pte) Ltd, two of Singapore’s oldest construction companies. Together, they have successfully completed projects in Australia, UK, China, Singapore, Thailand, Malaysia, Indonesia, Myanmar, Middle East, Sri Lanka and the Philippines.

The Devanahalli sub-market is defined by an impressive scale of activity on premium and luxury projects. This is largely due to the on-going and planned infrastructure developments in these areas, with the establishment of Bangalore International Airport being one of the primary catalysts for the North Bangalore micro-market.

JLL India facilitates sale of 25 acres for residential development in Bangalore

Property exhibitions are one of the most popular and often used property marketing platforms in Indian residential real estate. Almost all cities in India have their

yearly share of regular property exhibitions - booming markets like Pune, Navi Mumbai and Thane have as many as four or five a year.

Property exhibitions serve a valid purpose - in the first place, they give developers the opportunity to display and create awareness about their projects. Since India is a country where every denizen of the middle class who does not yet own a home is on the market for a residential property, the turnout at property exhibitions tends to be fairly large. This allows developers to connect directly with potential customers. For this reason, property exhibitions tend to be by far the most effective marketing mechanism.

Of course, prospective property buyers at these exhibitions are also benefited by the fact that they get a good overview of the available options in their budgets and locations of choice. They can visit the sites of the projects they are interested in right away, or schedule a viewing in the near future. Also, since property exhibitions also have banks and financial institutions specializing in home loans in attendance, visitors who make a firm purchase decision can avail of their services on the spot. Finally, many developers also offer add-on incentives at such exhibitions.

At times – though this is definitely not a given – one can get a fairly decent bargain, since the presence of many competing developers for the same buyer segment can give rise to a favourable situation for bargaining. However, this is variable that depends on the prevailing market dynamics and also the skills of the buyer at identifying and acting on such a situation.

Despite all the positives of such exhibitions, prospective property buyer should not attend them without knowing what to expect - and what not to expect. What they can expect is to see a lot of showcased residential projects, along with their facilities, amenities and pricing. What they cannot expect is a seamless viewpoint of every project that is within their means and personal requirements. This is because not all developers active in a certain city or location participate in property exhibitions.

Holiday Inn to come up in Omaxe New Chandigarh

All You Need To Know About Property Exhibitions

Estate Avenues presents a comprehensive overview of the real estate scenario in major centres of South India. Besides taking recourse to all prominent sources of secondary information as well as direct interaction with few of the developers in the region, the fact and figures are largely based on inputs from International property consultants Jones Lang LaSalle (JLL) India and Cushman & Wakefield (CnW) India. Read on to get the prevailing rentals, total inventory, vacancy rate and prospects in the commercial, retail and residential space across the major cities...

south India was the pioneer in large retail space development, malls and shopping centres, and also in development of

mega commercial complexes (SEZs) for information technology (IT) and IT enabled services industry; but unlike the trend in North and West zones, there was never a phase of frenzy and undue haste while the real estate infrastructure was being developed in this part of the country. These developments were carried out in a systematic way as a result of which today there is higher occupancy rate and each major city of South India has an element of uniqueness around it.

The Southern states of Tamil Nadu, Puducherry, Kerala, Karnataka and Andhra Pradesh together house 20 per cent of the country’s population but contribute 22 per cent to the GDP. The contribution could be higher in 2013 given the progressive weakening of Indian rupee as the IT/ITES industry, remittances from abroad, and exports segments are major beneficiaries in this environment. The southern states today specialise in value-added services like Healthcare, IT, and IT enabled services like BPOs and KPOs and also in manufacturing segments like textile & apparel, fashion accessories, automobiles, defence, aerospace and pharmaceuticals.

Real estate development in the South is dominated by local companies, with national as well as global players making their presence stronger over the past seven years. Prominent developers active in the South region include Prestige Group, Mantri Developers,

Brigade Group, Shobha Developers, DLF Group, Alpha G:Corp, RMZ Corp, Purvankara Projects, Adarsh Developers, Salarpuria-Sattva Group, Unitech Group, Godrej Properties, Tata Housing, Ozone Group, Gopalan Enterprises, ETA Star, Ascendas, Akshaya Homes, Sahara Group, Abad Builders, Vaswani Group, Bren Corp-SJR Group, Astrum Homes, Habitat Shelters, Nippon Infra, Aisshwarya Group, DS-Max Properties, Sterling Developers, and Ferns Builders among several others.

One long standing feature of the southern cities is that migration of population as well as businesses from one southern state to another has been a smooth and welcome affair, unlike in many other states. Local developers in one city have easily been able to expand operations to other cities in neighbouring states. Rising job opportunities and increase in migrant population have led to speedy and timely implementation of infrastructure projects, and hence the opportunity for more residential developments. Also, there is a general tendency to speedy completion of real estate projects in the south cities, this contributes to reduction in overall project costs and facilitates reasonable pricing.

One of the many success stories is that of Akshaya Homes whose Chairman and CEO T Chitty Babu started with a seed capital of just `10,000 in 1995 and today it is a company with a turnover of `450 crore. “Akshaya has successfully positioned itself as one of the biggest and fastest growing real estate companies in this part of the country and we look forward to achieve `1,000 crore

by 2014 -2015, by diversifying into healthcare, schools and senior citizen homes,” says T Chitty Babu.

CommerCial estateInternational property consultant Jones Lang LaSalle (JLL) did a detailed real estate survey of seven major Indian cities – Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Pune – out of these the three Southern cities, Bangalore, Chennai and Hyderabad together account for 45 per cent of the overall stock of commercial space.

Growth projection for the period 2012-2016 indicates a CAGR of 8 per cent in supply of commercial space in the South as against an 11 per cent growth projection for the whole country, which implies that the share of South in office stock will get reduced to less than 40 per cent by 2016, as per JLL’s Estate South 2012 report.

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SOUTH ESTATE REPORT

Realty of the Southby GD Singh

Within commercial estate, the southern cities accounted for 64 per cent of IT special economic zones (SEZs), a fact that South India continues to be the preferred destination for IT and ITES related industry in India.

What could be the specific factors that go to the advantage of this region, especially in this sector of the economy? The rentals are at more realistic & affordable levels in the South as compared to the North & West zones, which ultimately contribute to the reduction in working cost of the tenants. The contention of “realistic & affordable level” could be debated. It is basically the demand and supply scenario that determine rentals, the exception being that of a monopolistic market. Experts are of the view that an ideal scenario will largely depend on the accurateness of supply-demand projection by real estate developers. There certainly seems to be more restraint as also better preparedness to scale up on the part of developers operating in the Southern cities.

The total stock of commercial space in major cities of South India is projected to be around 170 million square feet by end-2013, the additional supply being around 17 million square feet and vacancy rate is estimated to be 16.5 per cent, which is less than the projected pan-India commercial space vacancy of around 20 per cent. The positive signal is that creation of additional commercial space between 2013 and 2016 will remain subdued and as a result vacancy rate in the south is expected to fall.

retail estateAt a time when pan-India vacancy rate in mall inventory is 30 per cent, malls in the South have a very modest vacancy ranging from 4 to 10 per cent. Common reasons for high vacancy in other regions are faulty planning/positioning of the mall, demand-supply mismatch and high rentals. Irfan Razack, chairman & managing director of Bangalore based Prestige Constructions has evolved a very simplistic yet effective revenue model to address the third shortcoming: “Developers ought to understand that retailers can’t pay till their stores start making money, so we have introduced a ‘variable rental scheme’ whereby the fixed rent covers our costs and if the store does well, we get a percentage of the turnover; most of the other large shopping centres are also following this model now.”

It is projected that retail space in the South will be in excess of 40 million square feet by year 2016 when

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SOUTH ESTATE REPORT

Developers ought to understand that retailers can’t pay till their stores

start making money

Irfan RazackChairman & Managing Director-Prestige Constructions

it will command a 36 per cent share of the country’s mall space. Retail activities were always better organised in the Southern states than in the rest of the country and Chennai holds the distinction of having the country’s first shopping centre – the Spencer’s Plaza. However, year 2000 onwards Delhi NCR and Mumbai stole the show with a flurry of malling activity, which got accelerated year after year. All this while the southern cities were more focussed on organised retailing at city centres and high streets; a renewed interest in malls surfaced in 2006.

The very successful run of Prestige group’s Forum mall in IT hub Bangalore gave a fresh impetus to shopping centre activity across the southern cities and today there are nearly 60 malls in various stages of construction across the region. JLL’s Estate South 2012 report estimates that between year 2012 and 2016 major cities in the south will contribute 56 per cent of the country’s incremental retail space.

On the basis of ongoing construction activity in the retail estate, JLL report estimates that the share of South India in the country’s retail stock will be more than 36 per cent by end-2016. Up to year 2010 there was balanced supply-demand of retail space and vacancy rate remained as low as 3.5 per cent. It is estimated that this vacancy rate could peak at around 17 per cent by end-2014, mainly because a lot many sub-standard projects are currently underway. But this excess supply is not likely to have any significant effect on rentals because there is demand for quality retail space mostly available in malls or high streets that promise heavy footfalls. Hence very mild

correction in rentals can be expected.

residential estateDemand for residential space in South Indian cities has always been heavily loaded towards affordable homes and the trend appears to be somewhat changing in favour of costlier space since early 2012. So, basically the market comprises price conscious buyers who seek value for money. Also, the young professionals in IT and ITES industry would find it most convenient to manage a bank loan to get in to a house of their own instead of wasting the hard earned salary on rentals. Furthermore, they used to find it rewarding to sell off their property in the event of a transfer, usually at a fat premium.

This mindset is now changing due to three main factors: one, job is no longer as secure as it was in pre-2008 period, hence provision of savings takes precedence over investment decisions; two, high bank rates have blurred the attractiveness of housing loans; and three, people who had invested in affordable houses with the aim of making short term profits have badly burnt their fingers as rates have generally fallen from the 2008-09 levels.

Sensing the prevailing market sentiments, developers in the south have now switched to higher grade dwellings and there is ready demand for that as well. Who are the target buyers and investors now? The NRIs, business families, top professionals in different

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SOUTH ESTATE REPORT

Cities Mall Stock Mn sq ft

NCR 22.88

Mumbai 18.18

Bangalore 8.00

Chennai 4.45

fields and retired bureaucrats from across the country who still find the southern property better priced than in the rest of the country.

North zone is undoubtedly contributing the most to new residential space being created in the country but contribution from south cities is now clearly on the rise and is at par with the west zone. During January 2011 and March 2012 nearly 33 per cent of the country’s residential projects were launched in the southern cities, as per JLL’s Estate South 2012 report.

speCial eConomiC ZonesThe Indian government introduced the SEZ Act 2005 with a view to creating infrastructure and employment enclaves in secondary cities and remote locations that would kick start the growth and development of these regions by functioning as engines of growth. This was replication of the Chinese model where SEZs helped create new jobs, improved export competitiveness of the products-services, attracted foreign investment, and finally contributed towards increasing the country’s GDP. Besides providing inclusive and balanced development, these SEZs would also help relieve metropolitan centres from the pressure of migrants. The outcome thus far is far from satisfactory.

In all 140 SEZs have become operational since 2005 and out of that 90 specialise in IT/ITES and about 33 SEZs applied for de-notification between 2008 and 2011 as there were no buyers of space due to adverse business environment. Revision in rules, rollback of concessions in duties and taxes, are some of the reasons for not so encouraging results from SEZs in spite of the impressive $66 billion growth in revenue in FY2012-13 (23 per cent of India’s total exports). Most severely criticised of the newly introduced changes in rules is the removal of minimum land requirement and reduction of minimum built-up area clauses for SEZs: this will only favour plain real estate development rather than creating new industrial hubs with modern infrastructure. In contrast to this, revision in Maharashtra state industrial policy that allows SEZs to use 40 per cent of their land area for residential and commercial purpose and reserve remaining 60 per cent for export-oriented manufacturing activities is a welcome development that could foster the creation of ultra-modern integrated industrial estates.

In Karnataka 58 SEZ proposals were approved of which 41 have been notified, a total of 1,805 hectares land allotted and `18,032 crore has been invested thus far in 20 operational SEZs.

In the operational units, developers have employed 12,078 people while the units have provided employment to 1.25 lakh. Similarly, there are 76 notified SEZs in Andhra Pradesh, 20 in Kerala, and 53 in Tamil Nadu.

29


SOUTH ESTATE REPORT

BenGalUrUYear 2013 has thus far seen restrained supply, approximately 1.6 million square feet of commercial space out of which 45 per cent was dedicated to the SEZs. The total commercial stock is estimated at 112.7 million square feet out of which 85.5 million is grade-A property. Around 25.1 million sft of commercial space is currently under construction, 95 per cent of it in grade-A property. There was sufficient demand except that some IT and ITES companies shifted premises from CBD areas to the peripheral areas in order to reduce operational costs. This has caused minor increase in vacancy levels, which stood at 14.7 per cent by the end of first quarter; there is better demand for grade-A property

30


Rental Value appreciation in Q1 2013

Grade A Rental ValueCapital Value

Office Retail Residential

Delhi NCR

Mumbai

Bangalore

Chennai

Pune

Hyderabad

Kolkata

SOUTH ESTATE REPORT

Bengaluru real estate ratesCommercial Rents Capital Value

Key Precincts INR per sq ft per month INR per sq ft

CBD 48–55 5,500–6,500

Old Airport Road 60–65 6,000–7,000

Outer Ring Road (Eastern) 46–52 4,700–6,000

Old Madras Road 30–34 3,000–3,500

Electronic City 26–28 2,500–3,000

Retail Rents Capital Value


Koramangala 80–150 9,000–16,000

Indiranagar 90–180 12,000–18,000

New BEL Road 50 – 80 6,000–10,000

Commercial Street 175–250 16,000–20,000

Jayanagar 80–120 7,000–15,000

Residential Rents Capital Value

Key Precincts INR p.m for 1,000sft 2BHK apartment INR per sq ft

Old Madras Road 12,000-16,000 5,000–6,000

Indiranagar 18,000-20,000 10,000–20,000

Bellary Road 10,000-14,000 3,000–7,000

Hosur Road 10,000-14,000 3,000–5,500

Whitefield 13,000-16,000 3,000–7,000

Tumkur Road 7,000-11,000 3,000–5,000

Kanakapura Road 8,000-12,000 3,000–5,500

Mysore Road 8,000-10,000 2,800–3,500

Source: JLL June’13

Q1 2012 Q1 2013 Y-O-Y Change12 Month Forecast

Overall Vacancy 10.3% 12.5% 2.2%

Net Asking Rents (INR/sf/month) 45.37 51.28 13.0%

YTD Net Absorption (sf) 729,718 411,258 -43.6%

Source: Cushman & Wakefield Source: Cushman & Wakefield

Source: Cushman & Wakefield

Bengaluru Commercial estate rates

Proposed Mumbai-Bangalore Industrial Corridor and implementation of Phas-2

of Metro Rail project will give a fillip to real estate and industrial infrastructure development in area within 4-5 km radius along Tumkur Road.

Girish KSDirector-Strategic Consulting, JLL India

where the vacancy rate was slightly lower at 12.5 per cent, as per property consultant Cushman & Wakefield. Rents have remained more or less stable with minor drop in the central areas. Old Airport road commands the highest rental while Electronic city on Hosur road offers the most affordable commercial space.

Bengaluru did not witness any new mall supply in the first quarter of 2013. In view of the sustained high rate of inflation, consumer sentiments remained more or less stable with bias towards essentials. Apparel retailers took up much of the vacancy in Koramangala and other malls resulting in reduction in vacancy levels that now stand at 12 per cent. Among the important high

streets, rentals are highest on Commercial Street, Brigade road and Jayanagar and lowest in Malleshwaram and New BEL road. Malls at Koramangala commanded highest rentals (`420 psf/m) and those at Rajarajeshwarinagar the lowest (`85 psf/m).

Improvement on the employment front is attracting migrants from other parts of the country and this is contributing towards marginal appreciation in rentals in the city. Migrants from smaller cities in Karnataka and adjoining states prefer to purchase a house and settle down rather than pay rent. In the residential segment, rental and value are highest in Indiranagar. Rentals are lowest on Tumkur road while property valuation was least on Mysore road localities.

CHennaiNet stock of commercial estate in Chennai is estimated at 70.8 million sft of which 43.1 million sft is grade-A property. Commercial space of 6.1 million sft is currently under construction of which 85 per cent is in grade-A property. The volatile economic scenario has prompted most Chennai based businesses to remain cautious in their expansion plans as a result of which leasing activities in the commercial segment remained low with merely 131,500sft net absorption from 371,000sft of fresh supply of commercial space in the first quarter. Almost the entire fresh supply was leased but most of the big tenants had shifted from costly property in and around CBD to the relatively cheaper HITEC city and western and southern peripheral areas. The overall vacancy rate in commercial stock is 15.9 per cent as against 18.7 per cent vacancy in grade-A property, as per data from Cushman & Wakefield. Leasing rate in June 2013 was lowest `20-32psft/m in Ambattur and highest `70-100 in RK Salai area as per JLL data.

Automotive biggies Nissan, Hyundai, TVS and Yamaha, each

with investment plans of `2,000-2,5000 crore in Chennai, as also big investment proposals from Hitachi, Nokia, Murugappa Group and others will bring substantial commercial estate activity to the city suburbs. The state government also plans to set up industrial townships near Mahabalipuram and Thirumazhiasai near Chennai that will also attract huge residential and retail developments for the employees.

In Chennai, the most demanded locations are OMR & Porur targeted at IT/ITES, education, hospitality, retail and medical segments. For the Industrial belt, the choice would be Oragadam and GST due its proximity to the national highways.

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Significant Leasing Transaction

Prpoperty Location Tenent Sq Ft

Standalone Jayanagar Madura Garments 10,000

Standalone Koramangala Mc Donalds 4,000

Significant Projects Under Construction

Prpoperty Location Square Feet Completion

Vega City Mall Bannerghatta Rd 400,000 Q2 2013

Bengaluru retail estate ratesEconomic IndicatorsNational 011 2012E 2013F

GDP Growth 6.2% 5.0% 5.5%

CPI Growth 9.0% 8.0% -

Private Final Expenditure Growth

5.5% 5.0% -

Govt. Final Expenditure Growth 5.1% 5.0% -

Prime Retail Rents – MARCH 2013

MAIN STREETSINR SF/MTH

MG Road 240

Brigade Road 330

Commercial Street 310

Indiranagar 100 Feet Road 200

Jayanagar 4th Block 330

Sampige Rd, Malleswaram 120

Koramangala 80 Feet Road 125

Vittal Mallya Road 315

New BEL Road 140

Marathahalli Junction 125

Kamanahalli Main Road 125

MALLS INR SF/MTH420

Koramangala 420

Magrath Road 375

Cunningham Road 100

Mysore Road 90

Vittal Mallya Road 400

Whitefield 120

Rajarajeshwarinagar 65

Malleswaram 250

Bannerghatta Road 250

Note: Asking rents(INR/sf/month) on carpet area

of ground floor Vanilla stores is quoted

SOUTH ESTATE REPORT

The real estate market across key cities has seen significant

revival in economic activity and this upsurge has brought about an increased demand in the residential as well commercial realty spaces.

T Chitty BabuChairman and CEO-Akshaya Pvt Ltd

SOUTH ESTATE REPORT

Chennai Real Estate RatesCommercial Rents Capital Value


Mount Road 60–90 9,000–15,000

RK Salai 70–100 10,000–15,000

Pre-toll OMR 40–62 5,000–6,500

Post-toll OMR 25–35 3,500–5,000

Guindy 40–60 6,000–9,000

Ambattur 20–32 3,250–4,300



T. Nagar 120–180 12,000–15,000

Nungambakkam 130–150 13,000–16,000

Velachery 80–120 10,000–12,000

Pre-toll OMR 50–70 8,000–11,000

Anna Nagar 110–140 11,000–13,000

LB Road (Adyar) 110–130 10,500–13,500


Key PrecinctsINR p.m for 1,000 sft 2BHK apartment

INR per sq ft

Adyar 20,000-30,000 11,000-17,000

Medavakkam 7,000-14,000 3,600-5,250

Tambaram 6,000-12,000 3,500-4,500

Anna Nagar 15,000-25,000 9,000-14,000

Porur 5,000-10,000 3,800-6,200

Sholinganallur 9,000-12,000 4,250-5,800

Mysore Road 8,000-10,000 2,800–3,500Source: JLL, June’13

The retail segment in Chennai has witnessed better absorption rate and also increase in rentals during the first quarter of 2013. Chennai’s largest mall, the 10 lakh sft Phoenix Market City and the 7 lakh sft Prestige Forum Vijaya mall were launched in the first quarter of 2013 with near full occupancy and a sizeable presence of global brands. This has also contributed in bringing down the overall vacancy level in malls to 6.5 per cent, down 2.0 per cent from last quarter 2012. As per C&W data, rentals within malls range from `200psft/m in south Chennai suburbs to `300psft/m in CBD in the first quarter of 2013.

High streets in Chennai witnessed increase in retail rentals ranging from over 9.0 per cent in Usman road to 3.7 per cent on Nungambakkam road during first quarter, resulting from increased demand from apparel and F&B retailers and lack of quality space to accommodate the same. As per JLL data, high street retail rentals in June 2013 range from `50-70 in pre-toll OMR area to `120-180 in T Nagar.

In the residential segment, the supply of fresh space was slightly subdued as a result of which there was 15-20 per cent appreciation in rentals and costs of space over the last six months. This has depressed demand to some extent.

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Chennai Commercial estate ratesStats on the go

Q1 2012 Q1 2013 Y-O-Y Change 12 Month Forecast


Net Asking Rents (INR/sf/month)

36.0 40.0 11.2%


On an average Chennai records a gross absorption of 4 million sft of

commercial estate each year and in 2013 we expect slightly lower, around 3.6 million of gross absorption.

Alastair HughesCEO-Asia Pacific, JLL

The total commercial stock is estimated at 112.7 million square feet out of which 85.5 million is grade-A property.

SOUTH ESTATE REPORT

Rentals and capital value were lowest in Tambaram area (`3,500-4,500 psft/m) and highest in Adyar (`11,000-17,000 psft/m). The demand trend is now shifting towards villas, luxury and studio apartments as against the traditionally popular affordable flats.

“In the affordable home category, after the Chennai suburbs like OMR, GST, Porur and Oragadam the emerging cities of Tamilnadu will be Coimbatore, Trichy and Madurai,” says T Chitty Baby of Akshaya Homes, and adds: “In fact, Coimbatore is one of the hottest investment destinations in Tamil Nadu; it is a market with a capacity to absorb `80 crore home loan disbursals per month.”

Asked on the prospects of luxury homes segment, he says suburbs of the cities are the popular locations while for super-premium automated homes Sterling Road, Wallace Garden Road, Khadar Nawaz Khan and Besant Nagar are the popular destinations in Chennai, Trichy Road in Coimbatore and Trichy Market itself is for the niche investor.

“Coimbatore is a fast emerging centre for commercial estate as well, especially around areas like DB Road, TV Swamy Road and Crosscut Road,” opines Chitty Babu.

33


Prime Retail Rents – MARCH 2013MAIN STREETS INR SF/MTH

Nungambakkam High Road 140

Khadar Nawaz Khan Road 200

Cathedral Road –RK Salai 150

Usman Road –South 125

Usman Road – North 120

Adyar Main Road 160

Anna Nagar 2nd Avenue 150

Purusavakam High Road 110

Pondy Bazar 150

Velachery 140

MALLS INR SF/MTH420

Chennai –CBD 300

Chennai –Western 230

Chennai –South 200Note: Asking rents(INR/sf/month) on carpet area of ground floor Vanilla

stores is quoted


Prpoperty Location Tenent Sq ft

Phoenix Market City Velachery Big Bazar 100,000

Phoenix Market City Velachery RMKV 7,000


Prpoperty Location Sq ft Completion

Prestige Forum Vadapalani 700,000 Q2 2013

PS Grand Mall Velachery 311,000 Q2 2013


HYderaBadTotal commercial stock in Hyderabad is estimated at 50.15 million sft of which 26.5 million sft is in grade-A property. Overall vacancy rate is 19.2 per cent, the situation being better in grade-A property with only 13 per cent vacancy, as per C&W data. New projects will add 19.1 million sft of which 58.5 per cent will be in grade-A property. In view of the Telengana agitation companies remained cautious in their expansion drive as a result of which net absorption in commercial space in the first quarter of 2013 was only 430,000 sft, a decrease of 32 per cent as compared to same period last year; the IT/ITES sector took 83 per cent of this space. Supply in grade-A commercial space remained low on account of project delays but rentals remained more or less stable.

There are signs of likely rebound in commercial estate demand by end of the year, availability of skilled manpower, good infrastructure and reasonable lease rentals being key drivers for boosting the demand. Several MNCs

Hyderabad Real Estate Rates Commercial Rents Capital Value


Begumpet 45-55 4,500-6,500

Banjara Hills 50-60 4,500-7,500

Hitec City 36-42 4,000-5,200

Gachibowli 36-40 4,000-5,000

Uppal 25-35 3,000-4,000

Shamshabad 20-25 3,000-4,000



Banjara Hills 100-130 10,000-13,000

Jubilee Hills 110-140 11,000-14,000

Secunderabad 80-100 8,000-10,000

Hitec City 100-130 10,000-13,000

Kukatpally 100-120 10,000-12,000

Dilshuknagar 100-120 10,000-12,000


Key PrecinctsINR per month for a 1,000 sq ft 2BHK apartment

INR per sq ft

Banjara Hills 20,000-25,000 7,500-14,000

Begumpet 12,000-16,000 4,000-5,500

Kondapur 8,000-16,000 3,200-5,000

Tellapur 6,000-12,000 2,800-3,500

Kukatpally 7,000-10,000 3,500-3,800

Miyapur 5,000-8,000 2,400-3,500Source: JLL, une’13

SOUTH ESTATE REPORT

the share of South India in the country’s retail stock will be more than 36 per cent by end-2016.

34


applicable to projects of five acres and above instead of the one acre previously.

Miyapur, Kukatpally and Tellapur localities presented housing in the affordable range while Kondapur and Begumpet rentals and costs were in the mid range and Banjara Hills is the posh locality where monthly rent and costs ranged `7,500-14,000 psft.

otHer Centres

KoCHiKochi in Kerala was a real estate hotspot in 2007-08, with developers like DLF, Abad Builders, Sobha Developers, Ansals, Purvankara, Confident Group, Oceanus, Unitech, Nitesh Estates, Housing Development and Infrastructure (HDIL), Prestige Group, Emaar MGF descending and announcing projects worth over $2.5 billion. Sobha announced the Hi-Tech city in Maraadu, DLF purchased close to 4 acres from the State Government and HDIL purchased a 70 acre plot for developing an IT park. As a result property prices shot up by over 60 per cent during this period as bookings were plenty, especially from investors. Property prices shot up over 2010-2011 but crashed in the following year.

But today property prices in Kochi seem to have achieved some degree of stability. If announcements in emerging Kerala go as planned, and Kochi Metro (25 km stretch) is delivered in time, there is scope for appreciation in a few years time. The other big development here is the Lulu shopping mall with an area of 25 lakh sq.ft.

KoZHiKodeKozhikode is the third largest city in Kerala and the state’s second largest urban agglomeration with a metropolitan population of 20 lakh plus people. The

Hyderabad Commercial estate ratesStats on the go

Q1 2012 Q1 2013 Y-O-Y Change 12 Month Forcast


Net Asking Rents (INR/sf/month)

33.0 37.7 14.3%



Prpoperty Location Tenent Square Feet

Sai Galleria Jubilee Hills Lakshmi Nissan 12,800

Fortune Height Madinaguda Bajaj Electronics 10,000


Prpoperty Location Square Feet Completion Date

Manjeet Trinity Kukatpally 425,000 Q3 2013

Coronet Mall Banjara Hills 210,000 Q4 2013

Sangeet Mall S. P. Road 135,000 Q4 2013

Prime Retail Rents – MARCH 2013MAIN STREETS INR SF/MTH

M.G. Road 110

S.P. Road/Begumpet 110

Raj Bhavan Road/Somajiguda

105

Banjara Hills 140

Abids 125

Himayathnagar 125

Punjagutta 120

Ameerpet 105

Jubilee Hills 130

Kukatpally NH.9 120

A.S. Rao Nagar 90

Madhapur 100

MALLS INR SF/MTH420

NTR Gardens 150

Himayathnagar 150

Banjara Hills 260

Madhapur 235

Note: Asking rents(INR/sf/month) on carpet area of ground floor Vanilla stores is quoted


including Facebook, TCS, Google, Accenture, Amazon, Cognizant, etc have expanded their operations recently.

In the retail segment there was slightly better demand for mall space in the first quarter of 2013 as a result of which vacancy rate dropped by 0.5 per cent and there was a record 99.6 per cent occupancy in malls. Rentals in malls and high streets remained more or less stable with 7-10 per cent increase in areas like Banjara Hills, S.P road and Begumpet. Three under-construction malls are likely to add 770,000sft to the retail stock. Mall space rentals range from `150 psft/m in NTR Garden and Himayathnagar to `260 psft/m in the Banjara Hills area. High street retail rentals were lowest in AS Rao Nagar (`90 psft/m) and highest in Banjara Hills (`140 psft/m).

There was increased demand for residential space in Hyderabad while supply remained stable which caused only marginal increase in rentals and capital value across the city. Changes in property laws through GO-245 are seen as developer-friendly since the mandatory provision for earmarking 20 per cent of developed housing land for EWS/LIG category is now to be

SOUTH ESTATE REPORT

The NRIs, business families, top professionals in different fields and retired bureaucrats from across the country who still find the southern property better priced than in the rest of the country.

35


major population of the city is employed in the Middle Eastern countries and their remittances are the major source of economy of the region. The city has more than 40 IT companies operating at the moment. Given the proximity to Bangalore & Mysore and the presence of IIM Kozhikode, the city could prove to be a major IT hub in the coming decade.

Some interesting projects on the anvil are the HiLite City, a first of its kind urban integrated township with 32 lakh sft of residential, commercial and retail spaces awaiting completion this year. The total project cost of HiLite City is put at `900 crore. The other one is the mono rail project on a 12.6 km stretch and the operation of exclusive buses to the International Airport. The estimated cost is `1,018 crore.”

tHirUVanantHapUramIn Thiruvananthapuram developments have been happening mainly in pockets like Vattiyoorkavu, Vazhuthacaud, Vellayambalam, Technopark, etc. The influx of IT professionals to the city at Technopark, has given a major boost to the real estate developments in the city. The biggest projects underway include Monorail, engine assembly unit of Volkswagen at an estimated cost of `2,000 crore. The RP developers group plans to invest `1,000 crore in the city to set up a world class convention center.

mYsoreMysore realty market has become an attraction for non-resident Indians (NRIs) and expats from Karnataka who are increasingly showing an interest in the real estate of the city for residential as well as for business purpose. The IT/ITES industry in Bangalore is already extending its tentacles to this heritage city as a result of which the residential estate is fast growing. Currently,

South Indian market is largely an end-user market and residential remains a sought after

category.

Ananta Singh RaghuvanshiDirector-Sales & Marketing, DLF India Ltd,

there are over 30 residential projects in Mysore being developed primarily for NRIs. All major builders active in Bangalore are present and retail estate is also fast developing.

manGaloreThe real estate scene in Mangalore and surrounding areas is upbeat with several new announcements from developers. The significant growth in the sector is largely due to entry of reputed developers such as Godrej, Raheja group, and Purvankara group. Gandhinagar is the most sought after locality besides areas such as Bejai, Valencia, Falnir, and Bendorewell where going rates are in the range of `4- 5 thousand. Here too the NRIs and high network individuals (HNIs) are driving the demand side.

UniQUe soUtH’s CHallenGes & BUYer trendsAsked to comment on the uniqueness of the South Indian realty market, Ananta Singh Raghuvanshi, Director-Sales & Marketing, DLF India Ltd, says “South Indian market is largely an end-user market and residential remains a sought after category due to greater demand from increasing number of nuclear families.”

What are the major challenges to South Realty sector? “The major impediments for the realty sector are policy paralysis, demand stagnation, lack of political will, and lack of urban, civic & residential infrastructure which together are crippling the development process,” says T Chitty Babu of Chennai based Akshaya Pvt Ltd.

On the consumer-buyer trend in different cities of South India, especially with regards to residential estate, Anata Raghvanshi said “Bangalore with luxury options such as Bella Greens and value homes like Woodland Heights is a fair option. Commander’s Court at Chennai and Riverside at Kochi are other luxury options which have been well received and much in demand. Affordable plotted developments such as DLF Gardencity is a successful model at Hyderabad.”

T Chitty Babu is of the view that the real estate market is showing upswing for the past couple of months. We can conclude this report with his observation: “The real estate market across key cities has seen significant revival in economic activity and this upsurge has brought about an increased demand in the residential as well commercial realty spaces due to growing population, expanding cities, demanding youth and rapid urbanization” Ea

The Central Government approved the long pending Real Estate Bill paving way for providing the much needed transparency by seeking to regulate the hitherto largely unregulated housing sector in India. By applying this bill on all projects over 4000 sq metres in size, the ambit if quite large and seeks to cover all major private residential developments across the country. As and when the Bill gets enacted, it will look to provide considerable relief to the ordinary buyer and investor who goes through innumerable obstacles when buying a property and at times is duped by even small developers, builders and brokers.

36


by S L Talwar

Real Estate Regulation & Development Bill fails to address key issuesRegulation & Development Bill fails to address key issues

REAl ESTATE POlicy

37


From a buyer’s perspective, the Bill offers complete

transparency and a protective shield. The Bill is protective in nature. Through transparency and standardization of different terms, the Bill will

assure the buyer that he will not be cheated. First of all, if you begin from the agreement, the agreement will be standardized now. It will be balanced, it will be pro buyer but it will be pro developer also. Secondly, only after the commencement certificate is got by the developer he will be able to register with the regulatory authority. So the buyer is assured that the land is free from any kind of encumbrances, he should be assured that the building plans are sanctioned, environmental clearances are taken and land conversions have been done- so all such things the buyers should be assured of. We have had and have seen many cases where the land use has not been changed still the project was advertised and buyers used to give money and with on that money developers used to earn profits and the project never started. Such kind of things will not happen.

Mr Ajay MakenCentral Housing Minister

We are not against a regulator in principle, but any such bill should

not be anti-development and retrograde in nature. With unilateral provisions, it may be misused by people in the power to unnecessarily

further delay real estate projects.

For example - Registration with the regulator should be deemed done once applied for rather than give a 30 day lever to the sanctioning authority to delay the application on any flimsy ground as was provided in the earlier version of bill. Also cancellation of registration can be highly misused an jeopardize projects which are well underway and thereby harm even the consumers. There are many such provision bills which CREDAI had appealed to the government to re-look at,

Mr. Getamber AnandCMD, ATS Infrastructure

We welcome the thought of Government that at least they are bringing

the said bill but we are not willing to accept it in its current form. We have been opposing the bill in its current form from the beginning. We are disappointed

with the way government is going ahead without addressing our concerns. According to us, said bill is neither benefitting the Consumers nor other stake holders. If this bill would have covered other regulatory / approving authorities then it would have been much beneficial for everybody.

Dr. Anil Kumar SharmaPresident, CREDAI-NCR

So, this is an encouraging move from the government towards promoting accountability in the sector and protecting buyers from unethical business practices.

Developers have to declare this information in advertisements related to a project. A misleading advertisement by a developer, with representative pictures and not actual ones, is proposed to be a punishable offence. India’s real estate and housing sector is largely unregulated and opaque, and home buyers do not have access to complete information. The builders lobby, however, said it was against the proposed law in its current form.

The real estate (Regulation and Development) Bill aims at protecting home buyers from getting duped by developers and builders.

While welcoming the Cabinet approval of the long-awaited Real Estate Regulatory Bill, the Confederation of Real Estate Developers’ Association of India (Credai) expressed reservations on some of the clauses of the Bill. The Credai president, C.Sekhar Reddy, said the apex body of real estate developers however, would keep working with the government to ensure that the developers are not “unnecessarily victimised”. Certain provisions in the Bill need to be amended or removed else they would result in substantial escalation in costs to home buyers, he said.

According to industry experts and

like credentials of promoters, lay out plan, land status, carpet area and number of apartments booked and status of statutory approvals, addressing a major concern of buyers about incomplete or fraudulent land acquisition and pending clearances. The Real Estate (Regulation and Development) Bill 2013, which seeks to provide a uniform regulatory environment to the sector, was opposed by private developers in totality but housing minister Ajay Maken stuck to it, saying the basic tenet of the legislation is based on public disclosure that will infuse transparency.

The essence of the Bill lies in its various provisions that support homebuyers in making informed decisions while purchasing property. Provisions such as registration of all upcoming projects with the proposed regulatory authority and releasing relevant details regarding project specifications, size, carpet area and sale details in the public domain are steps that will help clear the ambiguity surrounding residential projects by private developers.

This is likely to protect the buyers from misrepresentation, delays in delivery and failure from developers in meeting contractual obligations.

The Real Estate (Regulation and Development) Bill 2013, which seeks to set up real estate regulators in states to

protect the interests of homebuyers ensure fair practices and accountability, besides fast-track dispute resolution, is cleared by the Central Cabinet. The Bill proposes that developers register their projects with state regulatory authorities by declaring their building plans, timeline and other details of a project. This will then be posted on the regulator’s website. CREDAI welcomes the Bill, but also wants certain provisions to be amended or removed else it will result in substantial escalation in costs of real estate.

While the commercial real estate has been kept out of purview of the proposed bill, it will apply to residential buildings. There is a provision for mandatory public disclosure of all project details

REAl ESTATE POlicy

38


pending Real Estate Bill paving the way for providing the much needed transparency by seeking to regulate the hitherto largely unregulated housing sector in India. By applying this bill on all projects over 4000 sq mtrs in size, the ambit if quite large and seeks to cover all major private residential developments across the country. As and when the Bill gets enacted, it will look to provide considerable relief to the ordinary buyer and investor who goes through innumerable obstacles when buying a property and at times is duped by even small developers, builders and brokers. By imposing strict regulations on the Promoter, the Bill looks to ensure that construction is not only completed in a timely manner but that on completion the buyer gets the property as per the specifications that he had been promised.

Further, by seeking to establish the Regulatory Authority and the Appellate Tribunal, the Bill aims to create a dispute resolution mechanism and provide a specialized forum for hearing disputes related to property matters and address the grievances of the consumer who otherwise has had recourse to either a prolonged litigation process in a court of law or consumer courts.

At the outset the Bill and the idea of forming a regulator is

a positive step in the interest of all the stakeholders associated with the sector , however certain provisions like protecting the builders interest by giving a time bound

statutory clearances and having homogeneous state policies to ease implementation of project seem to have been ignored.

Though Financial regulation proposed are appreciated but streamlining capital availability for institutional funding through various long pending regulation like REIT & REMF and having a positive approach from financial institutions needs to be addressed immediately in the interest of the customers.

Mr. Pranav AnsalVice Chairman & Managing Director, Ansal API

The Real Estate Regulatory Bill seeks to whip only errant

developers and expressed fear that it could encourage corruption instead of curtailing the social menace. Mr Jain said the real estate sector definitely needs

a regulator on the lines of the one controlling telecom, banking, stock markets and insurance sectors. He lauded the intent of the Housing Minister but said that the discretionary powers for registering or deregistering projects and adjudication by a bureaucrat could become breeding grounds for corruption. Moreover, the provision for criminal prosecution of developers could lead to the exit of professional and qualified developers.

Our fear is that those with expertise to handle political influencers will only survive, thus leaving the all important industry in the hands of corrupt people,” Mr. Jain said and called for regulator covering all stakeholders like defaulting customers, the approving authorities and financial institutions that fund projects.

Mr Lalit JainChairman-National CREDAI

Described the Bill as a welcome move by the Centre to boost the

morale of the sector. In the short to medium term, there could be a noticeable slowdown in launches of new projects as getting all the necessary permissions in place

may delay the process of launching a project, he observed. “The Bill may create an upward pressure on prices as there will also be some cost implications as developers wait to launch their projects with due approvals in place,

Sanjay Dutt, Executive Managing, Director, South Asia, Cushman & Wakefield,

The Bill also seeks to prevent developers from putting out misleading advertisements which make promises which are not backed by the real development on ground. They also need to clearly mention the sanctions and approvals they have obtained and cannot market the project unless the necessary approvals are in place. By making registration of the project compulsory with the Regulatory Authority, the Bill aims to provide greater transparency in project marketing and execution.

The Bill works both ways. While it aims to hold the developers accountable, it also looks to ensure that the allottees do not default in making payments. Thus, by providing penalties for both the promoters and the allottees, the Bill seeks to ensure that non-compliance is minimal. On enactment, the Bill seeks to ensure that real estate transactions are carried out in a just and equitable manner. Though the Bill will turn out to be a boon for the property purchasers and the consumers, it has received a lot of criticism from developers for not being inclusive in its approach towards them. The Bill in its current form does not provide for any relief to them in terms of getting through the cumbersome approvals and permissions process in any expeditious manner.

However, the Bill provides for a uniform regulatory environment to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real

consultants, the Bill is neither benefiting the consumers nor other stakeholders. If this Bill would have covered other regulatory and approving authorities, then it would have been much beneficial for everybody. The Bill, initially planned for the entire real estate sector, including commercial real estate, was amended after the urban development ministry objected to the inclusion of commercial real estate, and now covers only residential real estate.

The provision of depositing 70% of the money raised for a project in a separate account and using it for the development of that project has been diluted. This has been replaced by 70% or such lesser percentage, as notified by the appropriate government, under the Bill. It also says builders can launch projects only after they acquire all clearances.

Anuj Puri, Chairman and Country Head, JLL India said: “The Central Government approved the long

REAl ESTATE POlicy

39


estate sector. Also, the promotional role of the proposed Regulator like standardization in the sector carpet area, checking money trail and curbing money laundering, professionalism and promoting planned development are music to our ears. The Bill should have aimed at catalyzing domestic and foreign investment into the real estate, thereby contributing to enhance economic activity and increase in GDP growth.

Mr Brotin Banerjee, MD & CEO, Tata Housing: “The proposed setup of a regulator will not only protect consumer interests but will also ensure fair practices and accountability on the part of industry players. However, the Bill should be more balanced and should include clauses that protect developers as well. We believe that the government understands the impediments faced by the industry due to delays in clearances and thus should ensure setting up of a Single Window Clearance mechanism to avoid unnecessary delays. The notion that the industry is not regulated is debatable. It is in-fact over-regulated given that a multitude of government agencies need to approve projects leading to inordinate delays. Even government officials should be held accountable for an efficient and transparent approval process.”

Under the Bill, not sticking to deadlines will attract a penalty and repeat offences will invite a jail term. One or more real estate regulatory authorities will be set up in each state and union territory with specified functions, powers and responsibilities, as per the Bill. Once the Bill comes into force, there will be a standard definition of carpet area for the entire country, the official added.

Under the proposed Bill, all property brokers must obtain a licence to conduct business. The official added that the Bill would benefit those who have already bought a house.“If there is delay and cost escalation for ongoing projects, then the consumers can approach the adjudicating authority (or regulator) to settle the dispute,” the official said. The Bill will provide much-needed transparency in the sector and provide relief to home buyers, experts said.

Naveen Raheja, Raheja Dev on regulation land amendment. “It is a

will only increase the cost of Premises which is going to harm the customer the maximum.

This is a very important Bill and no one can deny the fact that home buyers are facing difficulties at the hands of builders and hope the Parliament will pass it very soon, The government intend to introduce the bill in the Monsoon Session and then it will go to the Parliamentary Standing Committee(PSC) for clearance.. Once it becomes an Act, one year time will be given to states to set up the regulatory authorities and regulatory mechanism. Ea

welcome step. We had been waiting for the same since long as it would bring buyers at ease along with transparency and respect to the sector. It will protect the interest of all stakeholders, people, developers and also help check unscrupulous players in the sector and would streamline the sector. The bill will ensure housing for the urban poor by making it compulsory for developers to provide some portion of project townships for the lower income group. The bill will help streamline the clearances process for all developments; developers site approvals and clearances process as the main reason for project delays. This now would help to establish a regulatory authority for enforcing fair practice and accountability norms and fast track dispute resolution mechanism in real estate transactions.”

Mr. Vimal Shah, President, MCHI-CREDAI, commented, “In its zeal to curb a small section of erring developers, the government is punishing the whole industry. The bill makes it mandatory for a developer to obtain all clearances before commencing a project, but it does not take into account the inordinate delays in project approvals on the part of government bodies and local authorities.”

The Regulator can be effective only if it is in position to Regulate all constituents of the Real Estate Industry i. e. Developer, Landowner, Approving Authorities and Customers. The bill provides for regulating only one of these. The bill

From a buyer’s perspective, the Bill offers complete transparency and a protective shield. The Bill is protective in nature. Through transparency and standardization of different terms, the Bill will assure the buyer that he will not be cheated. First of all, if you begin from the agreement, the agreement will be standardized now. It will be balanced, it will be pro buyer but it will be pro developer also -

Government

We welcome the thought of Government that at least they are bringing the said bill but we are not willing to accept it in its current form. We have been opposing the bill in its current form from the beginning. We are disappointed with the way government is going ahead without addressing our concerns. According to us, said bill is neither benefitting the Consumers nor other stake holders. If this bill would have covered other regulatory / approving authorities then it would have been much beneficial for everybody—

Developers

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Punjab is a State in Northwest India that enjoys the status of being located in one of the world’s first and oldest

civilizations. Major cities of Punjab witnessing rapid growth in real estate include Amritsar, Jalandhar, Ludhiana and Patiala. Ludhiana is a city that is making growth in both commercial and residential sector in the past few decades as compared to its sister cities in Punjab. However, the demand for the housing sector in Ludhiana has increased to such an extent that it is now outstripping the supply.

As per the industry soothsayers, Ludhiana are expected to get the major share of upcoming projects of Punjab like Metro rail, International airport in the coming few years.

Majority of the Ludhianvis are born and brought up in the City from the last few decades and are well established. They are buying the housing as per

Boom in Ludhiana propertyFew real estate groups can match the track record and prestige of Janpath Estates in Ludhiana the Manchester of Punjab. Since inception the group has always strived for benchmark quality. Customer centric approach, robust engineering, in house research, uncompromising business ethics, timeless values and transparency in all spheres of business conduct, which have contributed in making it a preferred real estate brand in Punjab.

their family growth. Only 7.68% of the peoples are migrated in Ludhiana over the past three and half decade. There is also a second home concept culture in the Ludhianavis. The ultimate buyers are end user over and above of the ticket size of `one crore.

The creator of the most talked about residential project _ “Janpath Villas” is Janpath’s latest luxury residential project, combines climate-sensitive architecture and state-of-art technology such as intelligent System Planning which is geared to address the specific requirement of the region. Janpath Villas sets new benchmarks in high end ultra luxury living experience through the use of superior quality material formed to the most stringent specifications. The complex, which will be home to a select 67 families, is spread over 10 aces, with independent Villas comprising only 55% around coverage and an indulgent 45% green landscape area. The lush green surroundings make this property a visual masterpiece that also provides for your wellness and recreational needs. Janpath Villas is coming to known for Road to serenity and where life is a vocation.

Few real estate groups can match the track record and prestige of Janpath Estates in Ludhiana the Manchester of Punjab. Since inception the group has always strived for benchmark quality. Customer centric approach, robust engineering, in house research, uncompromising business ethics, timeless values and transparency in all spheres of business conduct, which have contributed in making it a preferred real estate brand in Punjab. After the grand success of Janpath Villas, group is coming up with another approved ultra luxury residential project in Village Bains and Birmi, on canal road, Ludhiana on the intersection of National Highway no. 95 named One Janpath in around 116 acres.

The real estate projects in Punjab have already come up to the pipeline’s brim. Every day, there is an announcement of some projects being launched in the region or some completed. The plethora of projects gives the consumer the liberty to choose as per the budget and requirements as well. The boom ensures the availability of multiple projects to choose from at every segment. Ea

2013-14 after two years lull

by Mahinder Goel President , Janpath Estates Pvt. Ltd. Ludhiana

cOvER STORy

He came to the Capital with big

dreams, and was able to realize them with his exceptional

skills. Despite coming from a family who is not evenly remotely

associated to the real estate business,

Dr Anil Kumar Sharma, CMD,

Amrapali Group, has been achieving

great success in the field. Ask him,

and he stresses that his hard-work,

and meritorious educational career

helped him climb up the success ladder.

Amrapali Group:

42


cOvER STORy

an excerpts of dr anil Kumar sharma recent interview given to estate avenues

Estate Avenues: Are you witnessing any slowdown given concerns of less demand and rising costs? What is your outlook on real estate prices?Dr Anil Sharma: In concern of demand, I would like to clarify you that there is no shortage of housing demand when you can find out the huge gap between demand and supply. The Government is unable to fulfill overall hosing demand alone without having any assistant of private sector. That’s why near about 90 per cent of housing demand is fulfilling by private developers and bodies that require huge support of government to make prices stable and reachable to all buyers.

Of course, no one is in the favour of price rising absurdly that bears by buyer finally, which can be controllable with smart steps such as reducing timeliness of projects approval, single window clearance system, transparency, subvention and reducing interest rates.

EA: What is the total area under development and what is your land bank?Dr Anil Sharma: At present the Amrapali Group is developing an area of approximately 50 million sq ft and has another around 2000 hectares land bank across India.

EA: How do you see commercial and residential demand?Dr Anil Sharma: In Delhi-NCR region, most ambitious commercial project of Amrapali Group’s Amrapali IMT Manesar park is in running condition. Another one project in Greater Noida’s Amrapali Tech park construction is going in full swing.

Till recently, commercial property was an investment option for select investors. Not only did it involve large sums of investment but it also required a different mindset from the investment point of view. Over the years, changing lifestyles, which has pushed up disposable incomes, has brought in a fresh set of investors to the arena. As a result, even a salaried professional considers the idea of investing in a commercial property. In addition, the emergence of semi-commercial properties in residential locations has made the investment financially viable.

Moreover, In terms of housing needs and demand, mind setup of middle class has been changed. Now they demand world class amenities with value added services and always think of best return

Appreciating Excellence in Real Estate

Trendsetters of buyer-developer environment within a short span of time the group has grown

into a brand to be reckoned with 50 projects in 24 cities during 12 years of its existence, the Amrapali Group is on a high‐class construction

spree keeping energy‐efficient and environment‐ friendly features on priority. Today, Amrapali Group is destination to one of the largest home builders in Noida and Greater Noida. Apart from Delhi-NCR, the group has a strong presence in cities such as Bhilai, Lucknow, Bareilly, Vrindavan, Muzaffarpur, Purnia, Gaya, Jaipur, Jodhpur, Udaipur, Raipur, Kochi and Indore, consisting of residential condominiums, commercial plaza, hospitality, multiplexes and residential townships. Amrapali Group, the leading name in quality housing, commercial spaces and township development, under guidance of one dynamic personality, Dr. Anil Kumar Sharma, CMD of Amrapali Group, ably supported by Executive Director Mr. Shivpriya, Directors Ajay Kumar, Mohit Gupta, Suvash Chandra, Nishant Mukul and Amresh Kumar.

Amrapali Group has strong presence over various locations in north, central, eastern and southern India as on date and the group has several projects which have either been successfully completed and handed over to the buyers or under development. Amrapali group has projects in Noida, Ghaziabad, Greater Noida, Lucknow, Bhilai, Jaipur, Manesar, Indore, Vrindavan, Bareilly, Muzaffarpur, Kochi, Patna, Udaipur, Jodhpur, Nagpur etc, consisting of residential condominiums, commercial plaza, hospitality, multiplexes and residential townships.

Proud to have M.S. Dhoni, as its brand ambassador, the group goes extra mile to ensure timely completion and delivery of projects. The Group is constantly consolidating its leadership position from strength to strength. The improving economic scenario is an additional factor behind Amrapali’s distinctive zeal. Today Amrapali Group has diversified his business and earning name in the field of film production, education, hospitality while group has entered into the arena of food products by the name of “Amrapali Mum’s. The movie ‘I Don’t Luv U’, released on 17th may was a youth based love story defines new definition of love, produced by Amrapali Media Vision (Film and Production wing) adds a bunch of success in the cup of Amrapali Group after got an overwhelmed response of its first film venture ‘Gandhi to Hitler’, which was a periodical movie, starred by Neha Dhupia and Raghuvir Yadav.

43


of their investments. Residential demand is always very high as there is a huge gap between demand and supply in our country.

EA: Are you seeing some slowdown in your projects?Dr Anil Sharma: No way, customers are the USP of our business and our growth has been driven by them only. In our projects, the demand is quite higher than availability of dwelling units. Although, it is very well known that real estate market perhaps fluctuate and it never remains same in the entire year.

EA: Your view on affordable housing?Dr Anil Sharma: In NCR region, where we have strong presence, I always observe one thing is that most of the young buyers between age group of 24-35, are eagerly looking forward to have their own dream home at affordable price, even they prefer it on their marriage and other priorities. It is because about 70 percent of NCR working population has migrated from

various regions of country and forced to pay a huge part of their salary as a house rent. As a protagonist of prominent real estate group, I am willing to comply the demand and fulfill the dream of needy middle class buyers.

EA: What do you say about the real estate regulatory Bill?Dr Anil Sharma: Being president of CREDAI-NCR, We welcome the regulatory bill with the hope that it will regulate fly by night builders and boost prominent developers but it would have given the right direction to this sector if the status of industry and single-window system were clearly pronounced. If this bill would have covered other regulatory / approving authorities then it would have been much beneficial for everybody.

I personally, very positive about the regulatory bill, but when I went through the draft bill I found there are a lot of things left to be addressed. If there is the real estate regulator, it should not

target only the consumers’ problems but parallel emphasis should be given to the developers, so that the sector can move ahead smoothly.

EA: Any plans to expand international footprint?Dr Anil Sharma: Yup of course, we are lucky that most of the NRI investors have shown their faith in our projects. It pulls us to get connected with them and fulfill their dreams. . Undoubtedly, the world class luxurious facilities provided by Amrapali Group in their all projects at affordable price make it first choice to NRIs.

I am candid to say that NRIs are the major source to drive our overseas business about 15 per cent. We usually achieve a very huge business from all across world such as Dubai, Singapore, United Kingdom, USA, Bangkok and some more countries, big population of our country staying there and they all want to have their own home at their motherland in India.

Amrapali Platinum, Noida is one of the biggest projects of the Amrapali Group. Over the past few years, Noida has emerged as a planned, integrated, modern industrial city that is well-connected to Delhi and one of the largest planned townships of Asia. Amrapali Platinum offers the best and the highest standard of living in all respects. Eighty per cent open area offers free flow of light and air to each apartment. Vaastu compliant, lavishly built entrance lobby in each tower, state-of-the-art club features are a few insights to the project. Accommodation offered includes Duplex Villas, Penthouses and Apartments ranging from 1495 to 6000 sq. ft.

Amrapali Sapphire

Amrapali Platinum

cOvER STORy

Amrapali Sapphire is one of the popular Residential Developments in Sector 45 neighborhood of posh locality of Noida. A premium project from Amrapali, where most of the buyers who have their dream homes are bureaucrats, IAS and IPS officers. The project has been launched in two phases. The first phase, spread across 10 acres of land and having 1100 houses is completely sold out. The second phase is spread across 12.5 acres of land having around 2350 units and offers 2, 3,and 4 BHK apartments in the sizes of 1140 sq. ft. to 3075 sq. feet with beautiful landscape. These spacious flats are available between `75 lakh onwards and `2.05 crore. The Project has various modern amenities like Swimming Pool, Play Area, 24 hrs. backup, Security, Club House, Rain Water Harvesting, Gymnasium etc. The Sapphire location has a residential as well as an educational environment. In the recent past, a large number of IT companies like HCL have shifted their offices to Noida, Educational institutes like Amity College, School like Lotus Valley School is situated here. Amrapali Sapphire is fully surrounded by residential complexes, colleges, companies, schools etc. that make it a common hub of day to day life actvities. It is at a walk-able distance from Delhi-Greater Noida Expressway (Next to Amity School) opposite Sector-44, a short drive from Metro station and Sector-18, Noida.

44


Amrapali Silicon City at Sector-76 Noida offers 2, 3, 4 bedroom apartments with full of modern amenities that suitable your needs, providing best connectivity while the price remains affordable. The group is targeting the residential segment with this upbeat housing project “Amarpali Silicon City”. The commercial sector in Noida began to develop at a phenomenal speed with many companies settling down here. Both these reasons directly led to the development of Noida as the next hot spot for both residential and commercial activities. Number of IT companies, educational institutions and other residential units are coming up around the Amarpali Silicon City The strategic location and greenery of the Amarpali Silicon City is attracting all the more people to lay foundations of their homes. The high value is given to boost further by improving the infrastructure in the form of wider roads, refined drainage system and perfect underground cabling. Many world-class shopping malls are opening up near Amarpali Silicon City. Amarpali Silicon City distance is very close to New Delhi, is a biggest asset for the area’s growth and infrastructure therefore property developers are scouting land banks there.

One of the biggest projects of Amrapali Group, Amrapali Zodiac, located in Sector 120, is one of the most popular Residential developments in Noida neighborhood of Delhi-NCR. Over the past few years, Noida has emerged as a planned, integrated, modern industrial and residential city that is well-connected to Delhi. It is also one of the largest planned townships of Asia. Amrapali Zodiac offers the best and the highest standard of living in all respects. Eighty per cent open area offers free flow of sun-light and air to each apartment. Vaastu compliant, lavishly built entrance lobby in each tower, state-of-the-art club features are a few insights to the project. It is located on Faridabad-Noida-Ghaziabad (FNG) Road behind Noida Special Economy Zone industrial area, and all nearby sectors got developed where lots of multistory projects are completed or near completion. Closest to FNG and at the intersection point of FNG & Golf Course Road, this road is leading from under-construction metro station. Currently, the FNG is under construction in Noida.

Amrapali Zodiac, Sec-120, Noida

EA: Now you are elected as President, CREDAI of Delhi-NCR, how you will see the region and make a new bridge of trust between the consumer and developers which is now disappearing?Dr Anil Sharma: In terms of housing demand, northern region has maximum potential and an extra edge over other regions of country. On based of reports, there is about shortage of 270 lakh dwelling units and by 2025, shelter would be of a matter of a huge concern for about 50 crore people. Undoubtedly, the government alone will not be able to meet the mammoth challenge.

In the NCR, for example, during 2008-2011, against demand of close to 7 lakh, only about 25,000 homes were launched in the `10-20 lakh category. In the `20-40 lakh category, against a demand for 2 lakh homes only 1 lakh such homes were launched. The demand for affordable homes is real but supply can only catch up if governments take proactive steps.

Moreover, for setting up transparency parameters, The Confederation of Real Estate Developers’ Association of India

(CREDAI)-NCR has come up with a “Code of Conduct” for its real estate members which will ensure fair and transparent deals with the customers. Apart from other provisions, the code has envisaged a Grievance Cell, where a consumer can complain about any deficiency or problems in dealing with a real estate developer.

Members who don’t adhere to the Code of Conduct will be expelled from CREDAI. The code will ensure clear and marketable property titles, transparency in information sharing with the customers, standardisation of built-up areas and presentation of proper plans of a project. I am sure that CREDAI-NCR will win over the trust of buyers. It will ensure that developers who believe in customer satisfaction rather than earning money will come together.

EA: Do you have new plans as a CREDAI President for the consumers’ benefit and timely delivery of homes?Dr Anil Sharma: I want to create buyers-developers friendly environment,

where all suggestions are always welcome that can edify things on prolific track and transparency will be viable indeed. The NCR Chapter of the Confederation of Real Estate Developers Association of India (CREDAI) also plans to boost end-user demand in housing by imposing lock-in-period for re-sale and higher transfer charges along with ensuring timely delivery of homes. I have come across situation where some of the brokers are not providing full and correct information to buyers. The governing council will take up the matter how to regulate them. As well as i have very close eyes on every necessary movement of developers.

EA: Brief us about your current and future projects for FY13-14?Dr Anil Sharma: This year, we are shifting our buyers to their homes which are in the condition of ready to move such as ‘Amrapali Platinum’, ‘Amrapali Zodiac’, ‘Amrapali Sapphire’ while ‘Amrapali Silicon City’ is nearing possession and will be delivered very soon. Ea

Amrapali Silicon City, Sec-76, NoidacOvER STORy 45


NORTH iNdiA

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“Buy land, they’re not making it anymore” – MARK TWAIN, US Novelist-Humourist-“People in the beginning of twenty-first century pounced on whatever property they could get their hands on, refusing to learn the lessons of even the recent past”

Will North India Real Estate Market be Cheerful or Gloomy in 2013-14

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with the current economic scenario, the residential market is witnessing subdued demand that

has in turn lead to a slowdown in the new project launches along with delays in project deliveries. High borrowing costs, rising input prices, slowdown in transaction activity and inventory pile up has resulted in cautious approach by both buyers and developers. The commercial office segment has also seen a decline in leasing activity with most occupiers reducing their real estate costs by means of consolidation and relocation of operations, and some have also put their expansion plans on hold.

Given the current momentum in the NCR real estate market, the residential sector is likely to witness stable demand and supply dynamics in the short term. Prices are likely to remain stable across most micro markets with marginal price appreciation expected in select locations of Gurgaon and Noida. Given the recent hike in the circle rates in Delhi, demand is likely to remain stagnant in the coming few months due to cautious buyer and seller sentiments.

Moreover, locations such as Mullanpur, Dera Bassi and Zirakhpur have witnessed robust upcoming supply of residential units. Connectivity to the

The north India real estate market is expected to remain stable and will not see much buyers and investors till 2015 barring few pockets of Delhi-NCR and Chandigarh where prices can be seen minor escalation. The real estate experts are of the opinion that high borrowing costs, rising input prices, slowdown in transaction activity and inventory pile up and political instability at the Centre and Delhi and Parliamentary elections in the next few months has resulted in cautious approach by both buyers and developers. In north India, besides NCR, Tier II and III cities such as Greater Noida, Chandigarh, Jaipur, Lucknow, Ludhiana, Bhiwadi, Himachal Pradesh, Dehradun, Panipat, Sonepat and Neemrana to name a few are emerging as attractive real estate destinations witnessing robust growth in real estate activity over the past few years.

markets of north India and relatively lower real estate costs compared to Gurgaon and Noida are anticipated to provide the required impetus for development of the city. The proposed metro rail is expected to improve connectivity to the suburban locations and increase real estate activity.

With the large scale industrialization in Himachal Pradesh, the real estate boom happened in Himachal Pradesh over the last few years. Demand for residential properties has seen a rise with the growth of the large industries such as pharmaceutical and packaging to name a few. Developers are coming up with residential properties such as holiday homes/second homes along with group housing projects by prominent developers such as Omaxe as well. The Himachal Pradesh government is exploring the possibility of inviting Foreign Direct Investment (FDI) in the housing sector as the demand for housing has gone up in the state. For the same, the government is looking at set up five satellite towns in the Hamirpur, Shimla, Solan, Una and Mandi districts. Besides housing, the state government is looking at introducing multi-brand retail trading

in Himachal Pradesh. Overall, with the government initiatives along with increasing developer and buyer interest, a real estate boom is likely to be witnessed in the state in the medium term.

Real estate activity continues to gain momentum in all major cities of the country. NCR in the north continues to attract buyers and investors with promising returns on investment. The saturation in metro cities along with high price points has resulted in the shift of real estate activity and demand to the Tier II & III cities. With the growth of sectors such as manufacturing, IT/ITeS, Banking and financial services and consumer goods to name a few, demand for commercial real estate space in the region has been increasing over the last few years. A multiplier effect of this has resulted in an increasing demand for residential and retail real estate too. Additionally, these cities are seeing a rise in demand for homes from NRIs and individuals wanting to retire to smaller towns and cities due to the quality of life that they provide.

Tier II and III cities offer investment avenues for individual investors with lower risk appetite constrained by the

by S L Talwar

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REAl ESTATE REPORT47


investment/ticket size. In north India, besides NCR, Tier II and III cities such as Greater Noida, Chandigarh, Jaipur, Lucknow, Ludhiana, Bhiwadi, Himachal Pradesh, Dehradun, Panipat, Sonepat and Neemrana to name a few are emerging as attractive real estate destinations witnessing robust growth in real estate activity over the past few years. The demand drivers for these cities include low land cost, land availability, increasing high income population and infrastructural developments.

demand for residential will improve in 2013-14With a reduction in interest rates and an expected improvement in macro-economic conditions, it is expected that demand for residential real estate will improve in 2013-14, enabling higher and better returns on investments. Despite the current slowdown in the real estate sector, developers and some consultants say that market will do better in 2013-14 than it did in 2012-13. With the macro-economic environment keeping potential buyers in a wait-and-watch mode 2012, saw the residential real estate market in India struggle. Factors like high interest rates, rise in labour costs and inflation continued to impact buyer sentiments, which led to a fall in sales overall. However, with a reduction in interest rates and an expected improvement in macro-economic conditions, it is expected that demand for residential real estate will improve in 2013-14.

The returns from real estate in 2013-14 will take a beating because of a slowdown in the economy. Unlike 2012-13, when the returns from residential real estate were in the range of 30-40% in various cities of the country,2013-14 is likely to be a subdued year when the returns could

be in the range of 10-20 %,Cushman and Wakefield said in a report.

A cautious buyer sentiment is setting in across most micro markets in all cities, though a sizable number of units targeted at affordable and midrange segments are under construction and more are poised to be launched in suburban and peripheral locations of cities, even as the inventory of unsold units is piling up. The increase in the inventory of unsold property is putting downward pressure in some pockets, on the other, there are still some locations within cities that are registering strong sales due to high demand and limited supply and these will continue to record some growth in prices in the next about a year. Critically, inflation should continue to trend lower helped by a combination of the sub-par growth environment and the flatter outlook for commodity prices.

Residential property prices have breached affordability limits in North Indian cities. Nevertheless, developers will have to factor in the ground realities of the business while debating the lowering of prices to catalyze sales in 2013. Obtaining the 57-odd permissions to begin construction of a project can take as much as two years. During this time, the cost of acquisition or even just holding the land for a project rises. Builders are already beset with the increased costs of license costs and cost of construction.

Developers will also offer buyers attractive pre-launch benefits in a bid to accelerate sales momentum in the initial months following a launch. Developers with large-scale projects with a greater share of unsold inventory will be under greater pressure to offer discounts than those with smaller projects and limited inventories. Most of the cities of India, especially North Indian cities will see an

increase in residential launches in 2013.

rising cost slowing real estate sectorAccording to a survey conducted by Assocham, the slowdown in the sector is mainly due to an unregulated price hike in key construction material, together with rampant shortage of workforce at all levels. Upward spiraling costs of significant construction materials have been putting a great pressure on project execution as they find it difficult to keep their margins intact. Steel, cement and labour are the key components and they alone make for almost 75 per cent of overall construction cost, the Assocham report said.

Construction material manufacturers and traders are not only coping with eroding profit margins but reportedly their stocks have also lost the market capitalisation by 15 to 20 per cent over the period of last four to five months, it added.

increasing UrbanizationAbout 37.7 crore Indians, comprising 31% of the country’s population, live in urban areas according to Census 2011.By 2031, about 60 crore Indians will reside in urban areas, an increase of over 20 crore in just 20 years. This change in the socio-economic landscape will have a bearing on several things, housing being the foremost in real estate.

market size/ Growth prospectsThe total revenue of the real estate sector was US$ 66.8 billion during 2010-11. By 2020, the sector is expected to earn revenue of US$ 180 billion. In fact, the demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014, with tier I metropolitan cities projected to account for about 40

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per cent of this.

investmentsSluggish economic growth and poor market sentiments are affecting the real estate sector, which saw a decline in terms of new investments in 2012-13 all over the country. The sector’s investment commitment for the financial year 2012-13 was only `42,000 crore, against `92,600 crore in the previous financial year (2011-12), as per an analysis done by trade body Assocham with the help of the Centre for Monitoring Indian Economy (CMIE).

India is ranked 20th in the list of world’s top real estate investment markets with investment volume of US$ 3.4 billion in 2012, according to the latest report titled ‘International Investment Atlas’ by Cushman & Wakefield. The sector is set for robust inflows of US$ 4-5 billion from overseas investors in the next couple of years, with Bangalore, Delhi and Mumbai emerging as the favourites, according to Jones Lang LaSalle, a global real estate consultancy giant.

The overall trend remained negative. The new investment commitment was `2,000 crore in 2011-12, but in the last fiscal, this increased to `17,000 crore. Realty accounts for over 11% share in the total outstanding investments in both private and public sectors. Uttarakhand saw an increase in new investment commitments are 400% and Rajasthan 175% while the rest north Indian states witnessed a decline. The real estate sector is facing challenges like falling sales, increasing construction costs and low market sentiment. Add to that sluggish economic growth, high interest rates, high inflation and poor industrial production due to which realtor companies are selling their land to reduce their debt.

Construction development sector (including townships, housing, built-

up infrastructure & construction-development projects) has attracted a cumulative foreign direct investment (FDI) worth US$ 22,007.67 million from April 2000 to February 2013. FDI flows into the construction sector for the period April-February 2012-13 stood at US$ 1,260 million, according to the department of industrial policy and promotion (DIPP). India needs to invest US$ 1.2 trillion over the next 20 years to modernize urban infrastructure and keep pace with the growing urbanisation, as per a report released by McKinsey Global Institute (MGI)-India’s urban awakening.

Housing shortageAt the same time, the Technical Group on Estimation of Housing Shortage projects the total shortage of dwelling units in urban areas in 2012 was 18.78 million. The estimated slum population in India is 9.5 crore in 2012.As against this, the number of dwelling units sanctioned under JNNURM in its seven-year mission period was 1.6 million. The supply of decent affordable housing by private sector has remained woefully inadequate. These findings have become the underpinning of the country’s 12th five-year Plan (2012-2017).

north india needs over 62 lakh dwelling unitsThe real estate sector is a critical sector of economy. It has a huge multiplier effect on the economy and therefore, is a biggest driver of economic growth. It is the second-largest employment-generating sector after agriculture. Growing at a rate of about 20% per annum and this sector has been contributing about 5-6% to India’s GDP.

The Indian real estate industry has traditionally been dominated by a number of small regional players with relatively low level of expertise. Historically, the sector has not been benefited from institutional capital;

instead, it has traditionally trapped to high-net worth individuals, which has lead to low level of transparency. However, with the allowing Foreign Direct Investment (FDI) in this sector, real estate market was flooded with investment and developmental activities.

The real estate segment has witnessed tremendous growth in the past few years owing to continuous growth in population, migration towards urban areas, ample job opportunities in service sectors, growing income levels, rise in nuclear families and easy availability of finance. Due to rising urbanization, demand for houses in urban area has increased considerably while supply of houses could not keep pace with demand thereby leading to a steep rise in residential capital values in urban areas. In spite of the stupendous growth witnessed in the past 10 years, substantial housing shortage is still prevalent in India.

The cities and towns, which are growing at faster rate, need to develop and deliver a faster and greater supply or housing. The need for additional housing, for increasing poorer sections does not get translated in an economic demand due to non-affordability by the economically weaker sections or low income group sections, thus leading to a sizeable number of urban population resorting to squatting on government or municipal lands, leading to creation of slums.

Prices of the residential properties in North India saw an upward swing in 2013 with prices in realty segment going up to 20 to 25 per cent for the apartments or builder floors and 50 to 60 per cent for the residential plots, and independent houses. Real Estate analysts point out the rising demand for residential properties by end-users as the main reason for the price rise. Another reason is that several big real estate developers have started new housing projects in the North Indian cities like Chandigarh, Mohali, Ludhiana,

High property

prices, low sales, land rows and project delays continued to cast a shadow on

the sector

Hundred per cent foreign

equity in single brand and 51 per cent FDI in

multi-brand retail will give a boost to the commercial

and mall space market.

Foreign borrowings

of up to $ 1 billion allowed for low-cost

housing projects

Plan approved to

develop housing in slums across

250 cities

Demand for affordable homes and quality retail

malls

Highlight of north india market

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Amritsar, Bathinda, Jaipur, Noida, Greater Noida, Gurgaon, Dehradun, Panipat-Karnal, Kullu-Manali, Shimla, Baddi, Kasauli, Jammu, Jodhpur, Bhiwadi, Lucknow, Kanpur and Ghaziabad.

The real estate market has been encouraging in the northern region. The prices in the residential sector firmed up for the customers. Also, the realty developers made a swing towards the luxury housing segment not like in the year 2009-10 where the spotlight was on affordable housing projects.

Property prices in major cities are just beginning to move up. The trend is borne out by the GDP data for 2012-13 too. For the fourth quarter of the year, construction has turned around to record a growth rate of 4.4 per cent against 2.9 per cent in the previous quarter. This trend is reflected in the Residex numbers too. As per the index for the quarter January-March, 2013 prices of properties are firming up in twelve of the 20 cities that the Residex tracks. Of course there are wide variations among them too.

In the Delhi NCR which accounts for the bulk of the real estate market in the country, there is a clear sign of uptick. Delhi itself shows a rise of 3.59 per cent while Faridabad has corrected by 0.98 per cent. From the current quarter Residex has been expanded to include: Chandigarh, Dehradun and Meerut. Compared to the base year 2007 prices in these cities naturally has risen considerably. It is 94 per cent in Chandigarh followed by 91 per cent in Meerut and another 84 per cent in Coimbatore down to 56 per cent in Raipur.

rising trend Residential housing prices in 3 cities have shown increase in prices quarter January-March, 2013, over the previous quarter ended December, 2012 (October-

In the esidential

segment there was an increasing trend of pre-launch sales by cash-strapped

developers to raise funds

The concept of

pre-fabricated construction

gained ground

Demand

for affordable properties

soared

Land transfer

rules for public-private-partnership

projects eased

Housing loan for

weaker sections raised to

Rs 10 lakh

trends of residential marketHousing prices Recovery in some project of North India

Total housing unit ready or under construction in NCR

5.2 LAKH

Housing stock1.40 lakh (27 per cent of total construction)

Decline of new launches

33500 units 31 per cent (second half of 2012-13)

Decline 12 per cent last year

33200 units

Total shortage of housing Units in India

Approx 2.47 crore

Total housing shortages in North India

Approx 62.2 lakh

Uttar Pradesh 23.8 lakh

Delhi 11.3 lakh

Rajasthan 10.0 lakh

Punjab 06.9 lakh

Haryana 05.2 lakh

Uttaranchal 01.8 lakh

Chandigarh 00.8 lakh

Himachal Pradesh 00.6 lakh

CITIES 2007 JUL-SEP 2012

OCT-DEC 2012

JAN-MAR 2013

Faridabad 100 216 205 207

Jaipur 100 85 87 112

Lucknow 100 175 189 183

Delhi 100 178 195 202

Ludhiana 100 168 179 167

Chandigarh 100 - - 194

Dehradun 100 - - 183

Meerut 100 - - 191There are several reasons concerning the developers regarding their projects and price escalations such as

Application to the local bodies for 1. grant of license;

Obtaining permission and 2. sanctions of authorities to undertake development. It may take from one to three years to complete the process;

Timely completion of the project; 3.

Making an offer to the public for 4. investment in their project:

Lack of availability of financing. 5. Access to short term loans for acquisition and on development of on-site infrastructure is limited by the commercial banking institutions;

Payments of external development 6. charges for off-site infrastructure such as water, sewerage, surface drainage, roads, landscaping and community facilities;

Progress of external development 7. at Licensees’ cost. Provision of ‘off-site’ infrastructure such as: development of roads, provision of power, water, sewerage and storm water drainage, garbage collection and disposal, street lighting, maintenance of parks and gardens, sewerage pump houses, maintenance of water supply system;

Construction of social 8. infrastructure

Provision of plots/dwelling units 9. for LIG and EWS categories;

The lack of available off-site trunk 10. infrastructure. Development of transportation links etc.

DEVELOPERS CONCERNS AND PRICE ESCALATION

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Soaring prices and

delays

Increasing debt burden

Shortage of affordable properties

Several new mall projects deferred

Costly credit

Rising cost of

construction material and fund crunch

Challenges

(Delhi-Noida-Greater Noida, Yamuna Expressway, Faridabad, Gurgaon, Sohna Road, Dwarka Expressway, Manesar, Neemrana, Bhiwadi, Kundli-Sonepat, Ghaziabad, Rajnagar Extn)

DELHI-NCRDELHI-NCRNoida-Greater Noida and Yamuna Expressway continues to attract investors, buyers and realtors owing to the infrastructure and good

connectivity of the area. Demand for residential and the commercial property on this stretch, which further connects to the 165-km long Yamuna

Expressway, is increasing at a fast pace. Residential sectors have developed on both sides of the Noida-Greater Noida Expressway. The main advantage of living along this passage is the rapid access to Noida and Delhi through one side and to Greater Noida through the other. Developing sectors like Sectors 94, 95, 96, 97, 100, 101, 110, 107, 137, 142, 143, 150, 151, and 168 along the expressway offer great scope for strong and sustained growth for all segments of the real estate.

Greater noida/Yamuna expressway Best places For investmentThe outlook for real estate sector in the 2013 looks promising in the NCR. However, consultants and developers says that those areas where the prices have not yet peaked and where the authorities concerned and builders are developing world-class infrastructure

like roads, sports complexes, parks, educational institutions, rapid transport systems, entertainment etc, will have the maximum appreciation. The Noida, Greater Noida and Yamuna Expressway show huge potential for investors as well as end-users. The price sustainability and appreciation trends of the recent past, and also its relative affordability, will continue to maintain investor interest and confidence,

the report says. The increase in commercial development, its developing infrastructure, continuing affordability and the proposed connectivity via Metro and the Expressway between Faridabad-Noida-Ghaziabad will put this region on top of the realty radar in 2013.

infrastructure The region has best infrastructure so far and the Noida/Greater Noida and Yamuna

December, 2012). Maximum increase was observed in Jaipur (28.74 per cent) followed by Delhi (3.59 per cent), Faridabad (0.98 per cent),

declining trend Two cities have shown decline in prices over the previous quarter with maximum fall Ludhiana (-6.71 per cent), Lucknow (-3.18 per cent).

it is time for mixed-use realty projectsWith the shrinking land bank in big cities and towns and skyrocketing

prices of land, the developers are now geared up for mixed-use of land as retail, entertainment, shopping and accommodation within a single building. According to real estate consultants, the retail does not work on more than three floors; developers are utilizing the extra floor space for other classes of tenants such as commercial, residential as retail space is typically limited to 300,000 to 700,000 across the country. DLF Place in Saket, New Delhi, World Mark by Bharti Realty Aerocity in South Delhi, Supernova-Radiance Place in Noida, and Trilium in Amritsar are some of

the buildings in North India real estate sector. This new class of tenants can help ease the liquidity problems of developers that are affected by rising project costs, delays and weak demand. Though the real estate sector in India remained weak in 2012 as investors, buyers and occupiers kept away from the market which has been affected by falling sales, delays over approvals, rising construction costs and high interest rates. However, the occupier market saw demand rising modestly in the first three months of 2013 but the development starts remained broadly flat in the quarter

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Land use Noida Greater Noida Yamuna Expressway

Commercial 3.80% 8.45% 6%

Industrial 18.37% 21.40% 20.30%

Public & Semi Public facilities 8.89% 10.40% 9.00%

Residential 37.45% 27.60% 20.00%

Roads & Public Transport 12.71% 08.48% 15.00%

Green Cover 18.10% 24.19% 25.70%

Water body 0.68% 02.88% 04.00%

Expressway authorities are several plans for more infrastructural development which will enhance the appeal of the place for end-users and investors. As per Master Plan of the city, the authority has plans to link Noida with Greater Noida and later with Yamuna Expressway. The authority has plan to build metro line between Botanical Garden and Kalindi Kunj, another 6.6 km line from sector 32 to Sector 62. To meet the water requirement of the region, authorities are making arrangements to provide Ganga water to the residents besides road work and sewage treatment plants. The Noida/Greater Noida and Yamuna Expressway have good educational institutions and universities and land to good number of more educational institutions have also been allotted.

In 2013-14, (Kundli-Manesar-Palwal Expressway) an Expressway connecting Kundli with Palwal via Manesar in Haryana, in 2013-14, (Southern

Peripheral Road) it will further connect Gurgaon and Manesar with South Delhi, in 2014-15, (Dwarka Expressway) an alternative link between Dwarka, Delhi and Gurgaon and after 2016, (FNG) the entire stretch will be connected between Faridabad, Noida and Ghaziabad.

affordability is the reasonNoida Extension and Noida Expressway will continue to generate interest as

With a huge migrant population present in all across the major metro cities today, availability of affordable homes have become a necessity where the prices and demand are quite high but supply

is not up to the mark due to some setback policies. For affordable housing, costs have to be reduced. Major costs are land, taxes, easy availability of finance at reasonable rates and speedy implementation of the project.

‘Since land cost is very high in A and B grade cities, one way to reduce this cost is to increase the FAR and density allowed for development of the project. However, for this meticulous planning is required by the local authorities

for implementation of adequate infrastructure facilities. There are various taxes imposed by the central and state government. They vary from state to state and are not simple to implement. These contribute to a major chunk of the cost and are very cumbersome to implement. This need to be simplified and we are encouraging towards single taxation source.”

There is a mammoth demand of dwelling units in 2013 but supply is not up to the expectations. It is estimated that about housing shortage to 70 million units in India. Many number of projects that were launched in 2010 have seen execution delays pushing the completion dates to 2014 and early 2015. Due to hike of prices and construction cost, more funds are required to execute real estate projects. The government can’t fulfil the demand of homes alone without having any support from developers. Now the trend is shifting more towards affordable homes. The government should develop a mechanism to encourage developers to built homes in affordability segment.”

Being President of CREDAI-NCR, our team will focus on consumer awareness and consumer redressal. We have already formed a consumer redressal forum last year and have so far received about 700 complaints and out of that 90 per cent cases have been resolved. On disclosure of carpet area by developers in their brochure and application form, we will ask our members to disclose saleable as well as carpet area and also method used for calculation of such areas. Meanwhile, on property brokers’ mis-selling products, we have come across situation where some of the brokers are not providing full information to buyers. The governing council will take up the matter how to regulate them.

Dr A K SharmaChairman & Managing Director, Amrapali Group and NCR Credai President

more and more IT-ITeS companies shift their offices to Noida Expressway for its rental affordability. The Noida Expressway will increase its appeal as a residential hub. Better infrastructure, easy accessibility and availability of affordable options will appeal to investors and end-users. Supply in this region will not be an issue, and good levels of absorption, with appreciation in capital values, are a high possibility in 2013. However, affordability will remain the key factor for the sector to do well in the current financial year. The important step is to bring down the home loan interest rates as they are hampering the decision of many homebuyers in the affordable segment. However, the luxury offerings will remain stable in the year and many high-end projects recently announced might pick up some pace.

new okhla industrial development area (noida)Greater Noida is a planned township. Roads are wide with service lanes for every major road. The sectors are named by letters of the Greek Alphabets. All cabling and utilities are run underground. It is currently planned to be connected to Delhi through Delhi’s metro system by 2016. Recently there has been a spurt in the development

of shopping malls and retail stores. Major retail chains such as Tata Croma, More Retail, Reliance Fresh, Reliance Footprints, etc have set up business in Greater Noida. The development model of Greater Noida was to attract industries, provision of quality infrastructure, employment generation and growth & Development of the city.

Greater Noida has emerged as a modern model of farsighted town

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planning. Availability of basic infrastructure is planned to exceed demand at all stages of development and inter-flowing green spaces, a grid iron pattern of wide roads for an efficient transport system, and a unique integration of industrial, commercial, institutional and residential zones. There’s even an 18-hole, 236-acre PGA-standard golf course designed by renowned-golfer Greg Norman. And an endless supply of unpolluted, fresh air!

Being developed on 20,000 hectares with wide roads, underground cabling and drainage system, the city offers amenities and infrastructural facilities of international standards. Among them: Reputed Educational Institutions, Shopping Centres, Medical facilities, Aesthetically-developed Theme Parks and Entertainment Complexes- and even a 222 acre international designer Golf Course.

The residential and commercial policies of the Greater Noida Industrial Development Authority (GNIDA) have led to remarkable development of infrastructure in this area. This, coupled with other top-notch infrastructural facilities, has prompted realty watchers to peg it very high among the real estate destinations in the NCR.

Greater Noida has today becomes one of the fastest developing sub-cities in the NCR and is an attractive destination for commercial and residential real estate.As the city is close to central Delhi and Noida, it provides a good residential solution to working people. Besides, as a number of corporate houses have chalked out plans to start offices here, it will provide good employment opportunities to residents.

realty market is expected to Upswings On Expressway stretch, large numbers of renowned developers are coming

Real Estate in India, specially in North India and NCR, is growing at a phenomenal rate but facing countless challenges which includes no single window system for clearance, lack of clear

land titles, approvals and procedural difficulties, rising man-power, inadequate source of finance, are affecting this “industry”. He demanded single window clearance and industry status for this unorganized sector. Bringing in transparency through and reducing the cost of property by making uniform stamp duty suitable amendments in the Foreign Direct Investment (FDI) guidelines in the sector.”

Mr Raheja said,” the single biggest reason for delaying projects that a number of developers use the funds for buying land elsewhere, the funds meant to be utilized for the construction of a particular project resulting possession is delayed considerably which lead to consumer unrest. Currently, NCR is the hottest destination for north Indian real estate with upcoming cities like Mohali, Jaipur, Lucknow and Meerut. He said there should be a balance between the circle rates and the actual transaction rates so that “coloured” money transactions can be curtailed.

“Every market is a function of demand & supply. Demand outstripping supply results in upward movement of prices. Real estate is no different. Demand from investors & end-users combine to outstrip supply significantly, leading to increased prices. The only way out of the market scenario is an effective affordable housing policy aimed at those who are left out of the normal market. The housing policy should aim at PPP model with a focus on land at affordable rates for developers to come out with low cost housing, which is a challenge today on account of spiraling land prices”.

Naveen RahejaChairman & Managing Director, Raheja Developers says

Considering the economic slowdown already being experienced, the hike in

land would prove to be a counter-productive move for the real estate market. It will add to the costs for the buyer and make houses and property more expensive.

Getamber AnandVice-President CREDAI.

with their new projects. According to an estimate, the annual appreciation is around 30 per cent; this is a handsome return on investment by any yardstick and this is raising a huge demand for property on the Noida Expressway. The mid-segment apartments are quoting at `3500 to 5500 per square foot and the premium segments are in the range of 9000 to `15,000 per square foot. Professional, end-users, investors are looking out this new stretch as a good destination for investment purpose as the area is yielding good returns as per developers. Some of the upcoming projects on Expressway are Gulshan’s Ikebana, Logix Blossom Greens, Prateek Edifice, Ajnara Daffodil, Paramount Floraville, Amrapali’s Heartbeat City and Hanging Garden, ATS Pristine,

Supertech’s Supernova, Unitech Grande, JP’s Wishtown and many more.

investors’ First ChoiceHousing prices in the region have hit with the Noida Authority decision to hike the

Noida Expressway Apartment Pricing

Average price in March, 2013

`5515 per sq.ft

Median Price in March 2013

`5125 per sq.ft

Out of total 30 residential projects in Noida Expressway, 16 due for possession in 2014.

Most popular locality Average price ( per sq. ft) Median price (per sq. ft)

Noida Expressway 5515 5125

Sector-129 4030 3874

Sector-128 6745 6745

Sector-137 5149 5200

Sector-107 5764 5800

Sector-100 6150 6150

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The market is stable in this region at present and I do not think there

will be big price changes in the real estate market in the next two/three years. However, demand for housing will be in the market. The sector is creating around

50,000 jobs per year in the NCR real estate sector and a person getting `40,000 and above per month, needs a home after three years of his/her job. May be the other parts of North India, the demand will not be as high as in NCR.

There are no sign of any escalation of real estate prices in the market in the current year but I think, the prices should be moreover stable. The biggest problem before the real estate industry is the shortage of skilled and unskilled labour and this is the main reason of delaying in the completion of projects. The government should declare the real estate as an “industry” for more transparency in the interest.

Mr Vijay JindalChairman & Managing Director, SVP Group,

The North Indian real estate market is not in good shape at present and there are little chance

to recover in the near future as the Delhi (in November) and Parliamentary elections (in April next year) are round the corner but we can expect good

recovery in the next financial year 2014-15.

S P SinghManaging Director, BCC, Ghaziabad

Real estate sector has a huge multiplier effect on the Indian economy and therefore there is a need to streamline government policies and introduce reforms to boost this sector. The expected

reforms will bring transparency in the system, which we believe should work for limiting intervention in the process of granting clearances and registrations and providing a credible platform to address consumer dissatisfaction. Granting industry status would bring in a much deserved discipline in this sector enabling it to have access to organized funds from banks and financial institutions.

Despite of the ongoing substantial growth of realty there are still some obstacles which need to be confronted. There is a high demand for commercial and residential properties in North India and property values have quadrupled in the last decade making it difficult for middle class Indians to invest.

With property boom spreading in all directions, North India has become a dream for every potential investor looking forward to dig profits. Delhi and the adjoining National Capital Region (NCR) has seen a 20 per cent rise in property prices over the past year, the highest among all metropolitan regions in the country, according to a report. These areas are witnessing increase in capital values and property market here has been upbeat for a while and is expected to see a similar trend on account of huge latent demand. However, Tier II & III cities have also evolved as a better alternative to metro housing due to availability of land at affordable prices, improved infrastructure and connectivity.

On Industry status to real estate, a regulation should be the one that empower customers and enforce discipline among property developers. It’s been our long pending demand that the sector should be given the industry status so that it is able to raise funds from banks and financial institutions without difficulty and at the same time it will also bring transparency and trust of buyers to the developers. The legislation should promote clarity on policies concerning special economic zone (SEZs), land acquisition norms and certain taxes. Besides, there is a need to speed up the grant of approvals and setting up of a single-window mechanism in the sector.

Mohit AroraDirector, Supertech Ltd

land allotment prices by 8.53 per cent to 30 per cent in Noida, Greater Noida and Yamuna Expressway. The Noida Authority have hiked the allotment rates in non industrial area by 15 percent while that of the industrial/commercial areas have been hiked up by 30 per cent and 11.25 per cent. The Greater Noida Authority has declared a hike of 8.53 percent and the Yamuna Expressway Authority has raised the rates between 14 and 18 per cent. The Greater Noida and the Yamuna Expressway authorities have also increased the compensation rate to be offered to farmers for acquisition by 10.4%.

In Greater Noida, the allotment rate for land across all categories has been uniformly hiked by 10.4%. The Yamuna Expressway area has seen the steepest hike in allotment rates as residential properties have gone up by about 40%, while, the allotment rate for industrial and institutional properties have been hiked by 28 to 42%. The

hike in allotment rates means that residential properties in Noida have become dearer by at least `5,100 per sq m in ‘A’ category sectors like 14, 14A, 15A, 17 and 44 and by `1,855 per sqm in ‘E’ category sectors like 102, 115, 158. Group housing flats in Noida have become costlier by almost `7,000 per sq m in the ‘A’ category areas and by `4,640 per sqm in ‘B’ category areas.

“Considering the economic slowdown already being experienced, the hike in land would prove to be a counter-productive move for the real estate market,” said Getamber Anand, vice-president CREDAI. “It will add to the costs for the buyer and make houses and property more expensive.”

noida extensionThough developers recognize Noida Extension as a separate location, it comprises Sectors 1, 2, 4, 16B, 16C, 16D and Knowledge Park V of Greater Noida.

It is close to Noida (10-km from Noida City Centre) and 18km from Connaught Place, New Delhi’s prime business location. A proposed metro rail link will improve connectivity between Noida and Delhi. It is the most attractive location in the NCR for affordable housing and is expected to see yearly growth of 15-20 per cent in the next five years. Knight Frank says properties in Noida Extension will give an annual return of 16 per cent over the next few years.

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There is always boom in the North Indian real estate and good

growth is reported continuously for the last over two decades. There is various reasons like best development and infrastructure in the region and

good connectivity with other parts of the country. We have seen slowdown in other parts of the country like Bangalore, Mumbai or Chennai but the North Indian real estate continuously growing and definitely in the current financial year, it will upswing though little.

Mr Shekhar MutrejaDirector, Cosmic Group Noida

emerging areas are best for investmentAs per real estate principles, we always have to invest in emerging areas/ emerging cities/ emerging sectors. The best investment would be the plots which will be developed within a township. For e.g. JP plots within a township are returning best today as they have come up with a great infrastructure as a township inside. There are lots of social amenities within township example, Golf, Lake, Stadium etc etc. In future people would love to live within that township.

For investment side, you’ll find that the prices are already on saturation, and may not get best returns but if you would invest in those areas where the work is either under development or the areas have future projects or plans, you will get best returns. The areas which have future plans like future connectivity, upcoming projects, upcoming industries, malls etc. would give you best returns.

Greater noidaSituated around 40-km from the south-eastern part of New Delhi, Greater Noida, is emerging as an industrial region and an educational hub. It has

Lack of availability of funds is an outcome of a prolonged weakness of the sector to generate trust among investors and the

lending institutions. In addition to this, country’s huge current account deficit and subsequent inflation have burdened developers and homebuyers. Current account deficit hit a record high of 6.7 per cent of GDP in December quarter. While rising cost of input materials and high cost of labour is a concern for developers high interest rate scenario

is making lending costlier for both developers and homebuyers. Though, the RBI has revised the key policy rates several times to lower the burden from borrowers and the industry, it may not be enough.

Another problem that is hampering the growth is the shortage of manpower. According to RICS Research Report ‘Real Estate and Construction Professionals in India by 2020, India has nearly 50 million people working in built environment, of which only 2 million are professionally qualified, while the remaining are primarily construction workers. To deliver all the potentially required real estate space and planned infrastructure, India may potentially require nearly 4.5 million ‘core’ built environment professionals over the next decade. However, given the miniscule supply of built environment professionals today; the current demand-supply gap ranges between 82-86%. The built environment

will have the requirement of 5 million skilled candidates every year till 2020. This shortage further delays the delivery of projects.

Indian real estate, construction and infrastructure sectors need technological advancements along with skilled workforce to meet the delivery timelines. The challenges involved in construction and delivery of projects are enormous. There are common worries focused on timeliness, costs, performance and delivery. Stakeholders involved across the development process are often insufficiently coordinated to deliver a finished product within budget and on time. Safety is also a growing concern.

To address some of these issues, the builder’s community should look at embracing innovative construction materials, equipment and technologies that lend support to lean project delivery cycles. Recent technological advances in the use of information and communication technology have the potential for dramatically improving construction productivity while reducing waste and improving inventory levels, project cycles and budgets. Efficiency, innovation and cutting-edge technology are the keys to success in addition to professionalism, transparency and regulation. This answer is still better than all above questions.

Mr Sachin SandhirMD, RICS South Asia

good infrastructure and is home to several big companies. It is connected to Noida by a six-lane highway operational since 2002. You can drive from Noida to Greater Noida in 15-20 minutes. The Yamuna Expressway, which has also become a property hotspot, connects it with Agra via Mathura. A metro link will connect it with Noida, Ghaziabad and New Delhi.

Greater Noida is an attractive location for mid- and high-end residential

segments. “Though there was not much activity in last 15-17 months due to land acquisition and master plan issues, things are expected to pick up. The area may witness a year-on-year price increase of 20-25 per cent.

residential projects in noida (West)- Greater noidaSupertech’s prestigious North Eye project in Sector 74 is coming up

Developers say that buyers have all the options at hand, be they construction-linked plan or ready-to-move plan. With clear land titles and progress in delivering units so far, Raj Nagar Extension is a one-stop destination for a wide band of middle-class end users. It is good to invest in areas where development has already taken place and people have moved in. This way you will know that your investment is secure. An area that offers affordable homes and can provide secure investment is Raj Nagar Extension.

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List of Project near Completion in Noida region

Projects Price (per sq. ft) Possession

Supertech Apex Tower 5100 2013

Supertech Ceyane Tower 5700 2013

Supertech Emerald Court 7000 2012

Eldeco Olympia 7700 2012

Eldeco Sylvan View 8370 2013

Logix Blossom Zest 3790 2014

Klassic Heights 3874 2014

Logix Blossom Greens 4190 2014

Victory Crossroads 4250 2013

Today Ridge Residency 4250 2015

Jaypee Krescent Homes 4415 2016

Ajnara Daffodil 4435 2014

Divine Meadows 4500 2013

Sikka Karnam Greens 4670 2014

Nimbus Golden Palms 4700 2014

Supertech Ecociti 4750 2013

Gulshan Vivante 5000 2013

Lotus Zing 5000 2015

Sunworld Arista 5000 2015

Supertech Apex Tower 5100 2013

Paras Seasons 5150 2013

Paras Tierea 5400 2014

Loginn 5500 2013

3C Lotus Panache 5500 2014

Paramount FloraVille 5600 2013

Supertech Ceyane Tower 5700 2013

Prateek Stylome 5700 2015

Amrapali Sapphire 5900 2013

Ajnara Elements Studios 6000 2014

Supertech Emerald Court 7000 2012

Jaypee Kalypso Court 7500 2013

Eldeco Olympia 7700 2012

Omaxe The Forest Spa 8000 2014

Eldeco Sylvan View 8370 2013

Unitech UGCC Amber 8495 2013

Today there multiple issues affecting the real estate industry such as declaring land use in Master Plan, the develop0ers need to get enrionment clearance—a

time consuming effort; Banks are not readily coming forward to furn projects, prohibition to use ground water for construction and delayed infrastructure development in land/provisional urbanisation, periodical increase in BDC/IDC charges and increase in taxation rates, unabated growth of developers in the absence of government benchmarking for qualifying developers with track-record; higher cost

labour and input charges etc. The government should go for single window system approach for all clearances.” He said, “Developers face many impediments in the process of project completion- be it delay in sanctioning, delay in bank finances, slow sales due to high rate of bank loan interest, need for multiple clearances, no legislation controlling erratic labour require to built projects. Multiple NOCs required for project clearances.”

All Delhi NCR region has experienced surge in Demand - Gurgaon, Noida, Greater Noida, Bhiwadi, Manesar, Dharuhera, Ghaziabad, Sonepat to name a few. However major metros have always been a preferred destination due to job opportunities presented and conveniences of urbanization. North India has always been cash rich and has invested well in real estate. Hence the scope for New Chandigarh is bright. However things will better emerge once political environment becomes more conducive and economy starts to look up.

Extending urbanisation, increasing FAR, control of raw material cost, rationalization of taxation and registration cost, incentive on development, land availability on easy terms and Single Window Clearance to reduce timeline will help in reducing the cost of real estate to make it more accessible for mid segment, said Mr Jain.

Mr Pradeep JainChairman, Parsvnath Developers:

Indian real estate continues to be one of the safest channels for investment. But there are still many areas that need attention like, deficiency of capital,

funding issues for buyers and investors, soaring land prices, unreliable record of sales transactions and many others. Apart from these issues, the protracted global slow-down also as a natural consequence, affects the performance and progress of real estate development in the country. The new bill allowing for a bona-fide and empowered regulator will hopefully facilitate more

transparency and accountability in the sector. Besides, the industry status and proper planning for the sector too is long awaited, but sustained political will be achieve the maximum potential of this crucial sector seems to be missing.

The future of North Indian real estate is very bright. Smaller cities and towns in North India have woken up to global trends in development. People there are demanding cosmopolitan lifestyles and have the means to pay for the premium amenities and additions. However, the real estate sector is lacking good infrastructure. But several town planning authorities across North India have the Noida and Greater Noida models to be inspired by. I believe that we will see many more progressive and sustainable development and infrastructure models in other North Indian cities soon.

Dr Prodipta SenExecutive Director, Marketing, Corporate Affairs & Retail, Alpha G:Corp

with 66 floors, spread over 9 acres land, is set to provide fully-furnished studio apartments, 2-3 BHK apartments, shopping malls and expected to be delivered in April 2015. The prices in the range are `1.7 crore to `4 crore while studio apartments are around `50 lakh. Cape Town is also coming up in the same complex in 50 acres with eight variants of well-planned 2-3-4 BHK apartments, penthouse

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Government must provide fiscal incentives to developers to build low cost and affordable housing for the masses and also review the existing FDI guidelines for investment and development in Indian

real estate in order to increase the flow of foreign capital into the sector. There is a need to streamline government policies and introduce reforms to boost the real estate sector. The cabinet approval of the Real Estate (Regulation and Development) Bill 2013 will prove its true relevance when the government gives project approvals on time and avoid unnecessary delays as acquiring the clearances is mandatory before launching projects, as mentioned in the bill, which might cause delayed projects and cost overruns.

It has been a pressing demand from all the stakeholders in the real estate sector for the sector to be given the status of ‘infrastructure.’ Whilst it is the RBI’s prerogative to grant this status, it is also up to the Government to recommend and push for this.

Noida, Ghaziabad is the micro-market that has shown an upward trend in sales, primarily due to a number of project launches in the affordable range, witnessing the highest number of launches in the area. Top urban centers like Noida, Ghaziabad, Gurgaon owing to the proximity to the national capital of the country followed by Chandigarh and parts of Uttarakhand and Rajasthan are the hot destination for investment.

It will ultimately help the industry to mature, improve management and adopt advanced construction techniques. Adequate infrastructure forms a prerequisite for sustaining the long-term growth momentum of the sector. The pro-farmer bill will further stretch the process of land acquisition for industry and will push up costs and delay projects, thus upsetting, both the buyers and the developers.

Anil MithasChairman & Managing Director UNNNATI GROUP

Looking at the current economic scenario, due to the depreciating

value of rupee & rising inflation the market might have taken a hit but it looks favorable from the perspective of NRI investment. The demand & supply

of property in the Real Estate segment seems to be holding on fine in the Delhi NCR region due to the infrastructural growth & availability of plots & segments for further development. What is essential in the North Indian states especially in the Delhi NCR region is a scope for Redevelopment & introduction of the Urban Planning for areas like Karol Bagh & Chandni Chowk, Old Delhi essentially for taking the state to New Height. The pricing of the properties can be fixed but they have their own pros & cons as a lot of factors play a major role in deciding the price of a property.

Mr. Pradeep MisraDirector, Rudrabhishek Enterprises Pvt. Ltd (REPL)

towers and luxury villas. The first phase of Cape Town has 17 towers and construction is in full swing. The project is expected to be completed in the current year.

Grihapravesh Buildteck has launched its first group housing project in Sector 77 in an area of 5 acres, offering 2-3-4 BHK apartments in the carpet area of 1175-2569 sq ft. The project boasts of good connectivity plus infrastructural developments apart from the amenities and facilities. The project is likely to be delivered in mid-2014. The other two projects—Prateek Wisteria & Prateek Laurel—of Prateek Group is coming up in Sector 77 and 120 respectively. The presence of commercial centres and other infrastructural facilities are the added benefits. The Antriksh Group’s 50-acres Antriksh Forest in Sector 77 is offering 2-3-4BHK apartments in sizes 1195 to 2700 sq ft.

Ajnara Grand Heritage of Ajnara India in Sector 74 is offering luxurious features as the project is in proximity to posh localities like Sector 50 and 58 and commercial centres, malls and institutions which have played a major role lin the development of all these

new sectors. Currently, the rates of properties here are comparatively lower compared to the other nearby sectors. Sector 121 is has also in good demand because of its close proximity to major malls and commercial centres Homes 121 of Gulshan Homz project is getting tremendous response from investors and buyers. The present prices are around `4870 per sq ft.

Yamuna expresswayYamuna Expressway is growing attraction to the NCR. With scarcity of land in Noida, Yamuna Expressway has large parcels of land available on either side and projects are already planned and many townships are proposed near the highway. Developing sectors like Sectors 94, 95, 96, 97, 100, 101, 110, 107, 137, 142, 143, 150, 151, and 168 along the expressway offer great scope for strong and sustained growth for all segments of the real estate.

The Yamuna Zone, spread over more than 2,30,000 hectares (Greater Noida to Agra) along the 165 km long Yamuna Expressway, is being developed as one of the preferred zones for residential, industrial, institutional,

The current real estate market is certainly not a vibrant one where everything and anything

is selling. It’s a choosy and selective market where only the best products are getting sold at the right price. The market is slow but steady. While a

lot of brownies like the real estate regulation bill are round the corner, their execution would take time. Hence, the north Indian Real Estate market would continue like this or maybe only marginally improve with no drastic changes till major government reforms are implemented. Some strategies that the Developers are implementing like flexi payment plans , subvention schemes are giving a sort of push to customers to invest. For Developers this scenario implies that their projects are correctly priced, for brokers it implies that they focus on the right project and for customers it implies that they exercise caution while investing and also while choosing the right Broker and Developer.

Anuja Sinha Director Bricks & Mortar Global Real Estate Advisory Pvt Ltd.President Elect - NAR INDIA Delhi NCR .

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State and local authorities like; GDA (Ghaziabad Development Authority), UP Awaas Vikas and local municipal authorities, has developed infrastructure in a planned way and Ghaziabad has scaled a quick rise in front of investment in real estate.

After metro connectivity, now plan of rapid metro from Delhi to Meerut via Ghaziabad, inter connected mono rail in city and multiple flyways and flyovers has increased connectivity of Ghaziabad from Delhi, Noida, Meerut and other adjoining cities. On the other hand, UP government is concentrating on widening of roads, new underpass

and foot-over bridges, service lanes with green belt to revive overall infrastructure. This has contributed to a sharp spurt in realty sector of the district that has resulted in various residential, commercial, township, hospitality and

The real estate scenario in North India, specially in Delhi-NCR, is very

bright because of best infrastructure, connectivity with roads and Metro, educational institutions and large number of people arriving in this particular

region in sewarch of job from other states in the last 7-8 years.” In the last two years uncertainty in the real estate market, the investors and end-users are still adopting “wait & watch”.

After two years stagnant and sluggish market, it is picking up once again in the current year because of devaluation of Indian currency and gold uncertainty, the NRI are taking big interest in the Indian real estate. He said the market was badly affected with the frequent interest rate changes and not declaring the real estate as “industry” by the government. Delhi NCR (specially Noida, Greater Noida and and Yamuna Expressway), Chandigarh and tier III cities like Bhiwadi, Alwar are the hot destination for investment.

He said the Indian developers should adopt the foreign technology for speedy and quality product.

Mr Ashwani PrakashExecutive Director, Paramount Group of Companies

The market is completely depends on demand and supply of any product.

The product is sold when there are buyers in the market. The Delhi-NCR market has still huge demand. It is very common to face some slowdown

after every 2 to 3 years but it is temporary. The real estate market of Delhi-NCR had always been very favourable for the developers and builders. The pricing of the properties can be fixed but they have their own pros and cons as a lot of factors play a major role in deciding the price of a property.

Manu GargDirector, Landcrafts

business & corporate suites in Vaishali, Kaushambi, Vasundhara, Mohan Nagar, Indirapuram, Govindpuram, and Crossing Republik.

In coming future, Ghaziabad is going to be a very prime destination because government has plans to make it a city of dreams. To increase connectivity from Delhi, recently GDA has approved plan of metro link from Dilshad Garden to New Bus Stand. New corridor, FNG (Faridabad-Noida- Ghaziabad) is another landmark for Ghaziabad to increase connectivity with two big and developing cities of NCR region. Due to high rise apartments in Ghaziabad, now GDA has plans to explore possibilities of Mono Rail from Vaishali to Ahinsa Khand initially and moving forward it could be another medium of world class public transport in the city. Even state government is also pushing the infrastructure model in the city and infused a huge investment of `3750 crore in Ghaziabad only with major structures like water treatment plant, widening of NH 24, internal road communication, power stations etc.

Mr Jindal said, “GDA’s current plan to increase metro route till Collectorate is going to bring big opportunity for Ghaziabad and position it as one of the most prominent location in Northern India. Strategically location of Ghaziabad makes it a more lucrative destination. Higher rentals and space crunch of Delhi has forced people to look towards Ghaziabad for affordable options.

sports, recreational and service sectors. With the Yamuna Expressway Authority planning to transform the whole area into a giant urban agglomeration sporting world-class infrastructure, investors and developers are moving into this emerging economic hotspot. Around 50,000 hectares of the Yamuna Zone is coming up for development in the initial push.

Having Delhi, Noida and Greater Noida in neighbouring pockets and with easy accessibility via Noida-Greater Noida Expressway and with the addition of the Six-lane World-class Expressway, there is no concern of travel issues for the people who are looking to invest here. Another selling point is the attractive price brackets offered by the real estate developers in Delhi. Apartments are available from `2,500 – 3,800 per sq ft and plots from `19,000 – 30,000 per square yard.

Ghaziabad-indirapuram Vaishali-raj nagar extn

infrastructure developments pushing realty growth in GhaziabadMr Vijay Jindal, Managing Director, SVP Infrastructure Pvt Ltd says:, Increasing population, traffic jams and hunt for home has become a big reason for Ghaziabad’s realty growth in NCR as most preferred location. In recent years strategic infrastructure development from government has also pushed realty growth at a new level in Ghaziabad.

Raj Nagar Extension has already emerged as the nerve centre of the area.

With excellent connectivity and a huge green area, it enjoys the status of having high connectivity with Delhi, Noida, Greater Noida, Vasundhara, Indirapuram,

Vaishali, Meerut and Hapur,” a realty consultant says. The ease of commutation that this place has is also one of the USPs. “Using New Karhera Flyover, RNE will be just 5km away from Vasundhara, 8km from Indirapuram, 9-km from Vaishali Metro station, 11km from Anand Vihar Railway and Metro stations,

Gaurav Gupta, Director of SG Estates

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Currently Ghaziabad has all basic amenities for society, be it hospitals, schools, colleges, shopping places, transportation, banks along with ATM, electricity, sewage system, rail & road connectivity, green belt and parks etc. Walking together, the developers with local government authorities have also shown their commitment in development of the city with ultra luxury, luxury, and affordable segment for home buyers and providing all facilities like; 24x7 power back up, electricity, water supply, club and sports facility, and other basic amenities for all age group. This is another reason for sudden hike in house demand and approximate appreciation of 25- 35% hike in prices of property. In the search of dream home, people have moved towards Ghaziabad and invested in all categories.

raj nagar extension-hot and budgeting destination but unplannedRaj Nagar Extension is the most ideal and hot destination planned city of Ghaziabad district and Delhi-NCR region having best impeccable civic infrastructure, affordable prices to suit middle class group. The Raj Nagar Extension is being developed by about three dozen developers of the region including some top real estate players with a view to develop a flawless destination for people who aspire for a

better living and within their budgets too. The real estate developers of this region are providing affordable and strategically located homes at very low prices compare to surrounding areas like Noida, Ghaziabad and Delhi to its customers and that too within Delhi-NCR. The developers’ affordable homes are available approximately between `15 lakh to `30 lakh.

Mr J P Chauhan, Director, M R Mittal & Co admitted that this upcoming city is unorganized as lands were offered to developers as per their choice instead of preparing blueprint of the city first and this is the biggest setup. Raj Nagar Extension is a well-planned city where the apartments are nestled on land with 80% of the area devoted to greenery;

Vihar ISBT, Vaishali, Dilshad Nagar, ISBT Kashmere Gate is 18 kms from Raj Nagar Extenion. Noida is 15 minute drive, Greater Noida 35 minute drive, Vasundhra, Indirapuram & Vaishali 10 minute drive and Meerut- Hapur approx 40 minute drive from Raj Nagar.

property trends in raj nagar extensionAround 16,000 housing units of 40 projects are either completed or under-constructions. The property trend at present here is `2200 to `2600 an average. The region is concentrating on budgeting house in the size of 500 sq ft to 1280 sq ft. To provide budgeting houses to all, the land is being purchased from farmers directly and selling at `600 sq ft for land + `1200 to `1400 sq ft as construction charges (total `2000 sq ft)

on affordable and budgeting houseThe developers here have their own version about the budgeting house. Mr J P Chauhan, Director of M R Mittal & Co says the upcoming city is offering affordable and within budgeting house unit and this is the reason, homebuyers

Raj Nagar Extension is one place that defied many myths and

perceptions in the real estate circles. One of the strongest doubts was when people started talking of the model where real estate developers work towards one project.

The place saw the conglomeration of 12 developers initially, and as the project got off, more joined the cause. And, Raj Nagar Extension doled out affordable homes at a time when many such options were not available even in the Delhi NCR. As of now, there are 25 developers who have taken the job of delivering affordable houses to buyers.

Manoj GoyalChairman and MD of KDPMGI

Overall the North India real estate market is gloomy and there is not much buyers or

investors in the market at present but may be pick up after the Delhi Assembly elections and Parliament due next year. It is not the right time for investment or

home-buying. I think the investors should “wait and watch” the market before investing in the real estate. The buyers are keeping distance from real estate market in Rajasthan and Punjab also.

Dr. Kunal BanerjiDirector-Marketing, Shri Infratech

The North Indian Real estate sector in India has come a long way by

becoming one of the fastest growing markets. It is not only successfully attracting domestic real estate developers, but foreign investors as well. The growth

is attributed mainly to a large population base, rising income level, and rapid urbanization. Even when the market has been comparatively down since 2011, the demand in the real estate market hasn’t dropped extensively. Investors Clinic generates 30,000 – 40,000 leads every month proving the same. Giving examples from Delhi NCR, Gurgaon continues to do well with New Gurgaon and the Sohna master plan coming up. Even though 2013 is undergoing a worse impact of recession today as compared to the previous years, overall the northern market looks good.

Honey KatiyalCEO, Investors Clinic Infratech Pvt. Ltd.

all homes offer beautiful view of the landscaped gardens and parks. This place has one of the largest green belts in the whole of the NCR and holds out a lesson to all urban centres to have a clean and green environment so as to promote a healthy living and also to protect our environment.

distanceRaj Nagar Extension is 30-35 kms from AIIMS /Dhaula Kuna, 40 kms from IGI Airport, Gurgaon IT Hub about 50 km, Connaught Place, Delhi Old and New Delhi Railway Station, Delhi University, India Gate all within 25 km reach, near Delhi Metro Stations Anand

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North India real estate sector holds great promise and is amongst

the fastest growing sectors in this region today. The improvement in connectivity between States and in overall transport infrastructure has driven the real

estate activities in north. Prices have shot up considerably in the last 1-2 years and is likely to go up further in the coming years. This region is already seen as a good investment option and a lot of good properties are being developed to attract investments from different segments of the society. Prominent developers from south, east and west have ventured into the north market to tap new opportunities for development.

Mousumi RoySenior Director & Head, Real Estate, Urban Infrastructure, FICCI

We always knew that once the delivery of units happens, the area will see enhanced interest of homebuyers. In fact, many families have started living here. With timely delivery, we have proved that the conglomeration of developers can work in unity if they have common cause,” says Mr. Vijay Jindal.

By delivering some projects on time developers have proved that a conglomeration of firms can work in unison if they have a common cause. “We always knew that once the delivery of units happens, the area will see enhanced interest of buyers. In fact, many families have started living here,” says Manu Garg, Director of Landcraft Developers & spokesman for Raj Nagar Extension Developers Association.

and investors are taking keen interest here. He says, his project Raj Nagar Residency, yet to be taken up next month, over 70 per cent has already been sold. But Mr Anuj Goel, Director, KDP has his own version. He admit about 4 years back, when this city came into existence, there were some developers offering within budgeting house but now no house unit is less than `25 to `30 lakh here. But the scenario is changing here as home-buyers have enough funds to spend.

However, the scenario is finally starting to change and people who are looking to buy early possession budget houses can easily close their transactions in the area, as there would be many projects offering possession soon with a benefit of low costs. Thus this should result in the rates firming up a little with more and more families shifting to this area, said Mr Pankaj Jain of KWorld.

The real estate market in North India should remain largely stable

this year. The economic situation is expected to weigh on investor and buyer sentiments; as a result they might continue to remain cautious of the level of

opportunities available in the market. However, the upcoming assembly and parliamentary elections might result into some last stage big ticket announcements on reforms, such as those on the land acquisition bill and foreign direct investment. These are expected to bear positive results for the sector, particularly in major cities such as Delhi-NCR.The commercial real estate market should see large supply infusion, mostly in Gurgaon and Noida, amidst stable demand levels. The retail market should remain upbeat with more clarity being provided on FDI guidelines, likely to churn the entry of numerous global retail chains particularly in the F&B, fashion and apparel segments. The residential market will remain slow in terms of off take and the number of project launches are also expected to remain muted. Housing sales are likely to appreciate if the central bank continues with its present trend of monetary easing.

Anshuman MagazineChairman & MD, CBRE South Asia Pvt. Ltd.

The future of real estate market and demand is very good in north

India. Though at present, the market is stagnant as investors are keeping distance. At present the NCR real estate residential market is likely to witness

stable demand and supply dynamics in the short term. Prices are likely to remain stable across most micro markets with marginal price appreciation expected in select locations of North India market. But it will pick up in the next two to three years or by 2015.

Amit HandaExecutive Director, Shri Group

wide range to offer customers; from 1BHK for `12-15 lakh to a 3BHK for `40-45 lakh. We believe that ‘affordability’ has a wider connotation and, hence, we have kept our price range wide so as to include the whole of the middle class. Though this place, too, will become fully occupied in the next three years, it will still be far ahead of other places where the population density will not appreciate before the next five-six years.”

real estate on nH-24, nH-58A quiet and dusty town a few years ago, Ghaziabad has now turned out to be a chic place to live in. Two places in Ghaziabad that have witnessed maximum real estate attention are the areas in and around NH-24 and NH-58. Places that used to be deserted in 2003, with a hint of development taking place, are now buzzing with real estate activity and are now commanding a premium. Since 2003, localities like Indirapuram, Vasundhara, Kaushambi, Vaishali, NH-24 and NH-58 came into prominence and have became the addresses that people are literally fighting for.

As an option to the capital city, NH-24 and NH-58 are flourishing owing to their proximity to the capital, excellent connectivity and infrastructure

raj nagar extension a middle-Class HavenThen the myth that people will not come to the place as it seemed, at that time, that it is away from main road has also been busted. Today, the people who invested here feel vindicated about their decision as the infrastructure which was promised by developers is in place. Four years after the project took off, enquiries have not stopped and the place has emerged as one of the most talked about real estate destinations in Ghaziabad.

options for allVijay Jindal says: “With clear land titles and the serious intent of the developers to deliver, Raj Nagar Extension has a

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Raj Nagar Extension has seen good infrastructure development as

promised and, thus, people have moved into the area in just four years of its launch.

Check all the papers of the developer and do not fall prey to sugar talk. You have a right to ask for papers. The first thing that a buyer should ask about a project is whether the land has a clear title or not. They should check all the government clearances before investing.

Dujender BhardwajDirector of JMD Realty Pvt Ltd.

development. The Delhi Metro project is also an added feather to connectivity, whereas Anand Vihar rail junction has already enhanced rail mobility. With a strong commercial catchment, a well-planned infrastructure network and an affordable price band, both regions offer several drivers to draw a homebuyers’ attention.

Rakesh Yadav, the MD of Antriksh Group, says: “These are places that have seen maximum attention and boast of huge projects. Crossings Republik, Antriksh Sanskriti, Wave City and Golf Links are the major hubs getting a good response from buyers. Golf Links is a

golf-centric development and a high-income project.”

This place is now topping the popularity chart because it has caught the pulse of buyers; Raj Nagar Extension has lived up to the expectations of buyers who were thwarted by the high price index in other parts of the NCR. Situated on new Meerut bypass and a virgin piece of land only a few years ago, it has now a well-laid wide road that passes through it and construction activity can be seen in full swing. Also, people have started living here. Its proximity to the bypass enables people to travel to Delhi without crossing the crowded Ghaziabad.

sonepat, which falls on one of the busiest national highways just 2.5

km from Delhi border, today boasts of the best of residential and commercial facilities. With the Delhi Metro network soon expected to reach Sonepat, the city is set to receive even higher investment inflow in the realty and business sectors. Sonepat is the new emerging residential, commercial and retail destination for Delhiites after Gurgaon, Noida and Greater Noida as it is hardly 30 minutes drive from signal free Mukerba Chowk (Delhi bye-pass) and is second Gurgaon in the pipeline because of its strategic location and national highway No. 1. Kundli is just a 15 minute drive from north Delhi colonies of Pitampura, Rohini, Shalimar Bagh and one can buy property in Kundli at almost one-fourth price as compared to prices in North Delhi.

Kundli-Sonepat, the future millennium city to look for, will be the future Indian city and will develop like Gurgaon in the coming years. Haryana and National

soNEpat-KuNDLIsoNEpat-KuNDLI

Highest Locality Price

`3,403 per sq-ft

4%

Average Locality Price

`3,236 per sq-ft

3%

Lowest Locality Price

`3,069 per sq-ft

3%

Comparatives - Jan-mar 2013

Capital Region (NCR) have evolved over the past few years and the development is taking shape beyond Gurgaon and Noida market. The splurge of residential groups and world-class amenities surrounding the NCR is shifting growth to locales like Kundli in Sonepat.

Construction of the 136-km Kundli-Manesar-Palwal Expressway is to be completed within three years. This is expected to rid Delhi of at least half the traffic from other states passing through the city for other destinations. The expressway will be a dual carriageway with four lanes with a provision for widening it to six lanes. Hence, major traffic coming from Punjab, Haryana and Rajasthan will no longer need to enter Delhi.

Leading developers have purchased nearly 2,000 acres of land here. These include TDI, Ansal Properties & Infrastructure, Omaxe, Parsvnath, and Senior Builders. These builders plan to launch mixed use townships here. In Kundli land prices today range from `8,500 to 9,000 per sq yd. A year ago the price was about `5,000 per sq yard which means that prices have

appreciated by almost 70-80 % in one year. Built-up property is being offered at the rate of `1,700-1,800 per sq ft here.

One reason why Kundli and other outer areas have emerged as favourite destinations of investors is because prices are already high in the other parts of the NCR. These NCR regions, therefore, do not offer much scope for appreciation, whereas in these outer areas prices are still low, and investors can hope to make quick profits by putting in money at the pre-launch or launch stage (and selling out either when the project is launched, or when possession is given to end-users). Since Kundli is located on the highway, it is easily accessible from west and north Delhi.

Kundli came on the investment map by the developers after it was declared part of the NCR in Delhi’s Master Plan 2021. In future, Kundli will enjoy very good connectivity as both the Eastern and the Western Expressway will converge here. The Haryana government has also proposed extending the Metro network up to Panipat. This project, when completed, will give a massive push to Kundli’s development (witness the appreciation in property prices in Kundliwest Delhi since the opening of the Metro line). Lastly, the state government is also exploring the feasibility of establishing an international airport at Asaudha in Rohtak.

This development too will give a big

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Key Infrastructure coming up in the region:The Global Corridor: The Global Corridor is in the pipeline on 62000 hectares •for world class development along with the KMP Expressway. The development of Kundli-Manesar-Palwal (KMP) Expressway has been undertaken by HSIIDC. This project holds unprecedented potential for development of economic hubs at strategic locations along with Expressway. A global economic corridor is planned along the KMP Expressway with provision for establishment of various theme cities like Knowledge City, Cyber City, Bio-sciences and Pharma City, Medi-City, Fashion City, Entertainment City, World Trade City, Leisure City, Dry Port City, Eco City, Sports City etc. These cities/hubs will cater to institutional, commercial, industrial, research residential, logistics/freight activities and will be spread over area of more than 150 square kilometers. The KMP is expected to be operation by this year end.Signal free Mukarba Chowk intersection at• `195 crore completed to give smooth traffic on GT Karnal Road;Rajiv Gandhi Education City: Coming up near Kundli along the national highway for •higher learning and a centre for research at 5000 acre landEPIP KUNDLI: Export promotion industrial park is developed on an area of 107 •acres by the HSIIDC in Kundli;Peripheral Expressway: Infrastructure project expected to provide a boost to the •area is the proposed eastern peripheral express way

boost to the development of the Kundli-Panipat region. The Haryana CM has also announced that the Rajiv Gandhi Education City will be developed at Kundli.

With residential facilities developing in Kundli, the industrialists and people associated with these industries will not have to commute to and fro everyday from Delhi to Kundli. Bawana and Narela, two other industrial areas, are located nearby. Constructed at an estimated cost of `1800 crore, the KMP Expressway will have facilities like a trauma centre, helipad, parking lots, refilling stations, refreshment centres, police stations, a car wash and the usual recreational facilities. And what with the government laying emphasis on developing the region as an education hub, interest has also been evinced by a number of multinationals from the IT, ITES and education sectors.

Kundli, a major business hub, will see major developers like TDI, Ansals, Parsvnath, Omaxe come up with mega residential and commercial projects. The development of 1,200 acres for a residential project: TDI City in Kundli.Besides the proposed SEZs to be set up along the Expressway, three new industrial model townships (IMT), apart from the one at Manesar, are to be developed during the next five years However, the construction of the Expressway has sent property prices northwards. A couple of years ago land rates in Kundli were `25-40 lakh per acre, today they stand at `2-3 crore per acre.

In Bahadurgarh, the rates were `l3-18 lakh per acre, now they are `50-90 lakh per acre. In Manesar, prices have shot up from `20-25 is on having green cover, increasing residential space, lakh per acre to `1.10-3.50 crore. The story is the same in enhancing commercial space, and improving connectivity Palwal, where land rates have risen from `14 lakh per acre with neighbouring Delhi. to `45-80 lakh per acre. And once the Expressway becomes functional, these rates are expected to rise further. The new areas being developed in the Gurgaon-Manesar belt, even existing areas, will now be modelled like

Inspired by the Chandigarh town-planning model, the new Chandigarh’s self-sustaining sectors, each of 200-

300 acres, Gurgaon-Manesar Urban Complex Plan 2021, the first master plan for the region, aims to keep population density. DLF plans to start a residential project in 25 acres of land in the newly covered areas lower than in the old. The focus Haryana’s Sonepat, bordering the national capital while ten

The 135 km Kundli-Manesar-Palwal (KMP) Expressway (also known as the Western Peripheral Expressway) inter-

connects four National Highways: 1, 2, 8 and 10 in Haryana. A 100-metre wide road from the IGI airport to Narela and proximity to KGP and KMP Expressway are the additional infrastructure developments. Apart from road connectivity, government is also focused on improving rail network. It is planned that Kundli will soon have a metro stop as part of the Rapid Rail Transport System, connecting ISBT to Sonepat in 20 minutes.

Developers and upcoming projects•Elite-Jindal Global City of Jindal Realty Pvt Ltd –sizes 500 sq yard, up to 6 BR, with •total cost around `1.5 to `1.86 crore, launched in Nov 2010;Signature-TDI Infrastructure Ltd in 2490 sq ft of 4 BHK, `2600 sq ft, launched in •April 2011 and expected to be completed in 2015Express City of Express Builders Ltd launched with sizes ranging from 300 to •1000 sq yd @ `16000 sq yard, started in March 2009;Express Homz: Express Builders Ltd in 1350 sq ft sizes of 3 BHK at • `2200 sq ft launched in February 2011 are near completionKingsbury of TDI Infrastructure Ltd between 1100-2400 sq ft of 2/3/4 BHK at •`2200 sq ft , launched October 2005 and completedTuscan floors-TDI Infrastructure Ltd in 1164 to 1564 sq ft sizes of 3 and 3+Study •BHK at `2350 sq ft, launched Feb 2010, are near completion;Green Escape-Ansal API in sizes 1305, 1745, 2200 sq ft of 2/3/4 BHK at • `1800 sq ft and expected to be completed by next year.Omaxe City, 17 km from Mukerba Chowk, •Eldeco Brighton residential projects-Villas, Sector 19, in 359 sq yards (Build up •in 1960 sq ft to 3290 sq ft) prices between approx 67.5 lakh to 83.5 lakh from 2 BHK TO 5 BHK plus other chargesTDI CITY KUNDLI, in 1250 acres, in sizes 250 sq yards, 350 and 500 sq yards.•TDI GREEN SONEPAT and several others•Tulip Grand•Tulip Centre Point•GTM Greens, launched 2011•

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The area between Kundli and Sonepat towns of Haryana falls under a highly industrialized zone. Atlas Cycles, Hilton Rubber, Indo Asian Fusegear, ECE, Hindustan Everest Tools and Satnam Overseas are some of the well-known brands which have units here. The majority of these industrial units are concentrated on both sides of the G.T. Road. Besides industries, Sonepat also boasts of a rich agricultural base with quality rice and cash crops being cultivated in plenty.

market overviewDuring 2011-12, developers across NCR ventured into new sectors in

Noida, Greater Noida, Kundli-Sonipat and Gurgaon to take full advantage of low cost of land in the unexplored regions within NCR and at the same time, strived to pass on the benefit to the consumers by launching projects at affordable prices. Demand for housing in the NCR received further impetus with the revival of the EMI on possession scheme and introduction of the flexi payment plan. Though the flexi payment plan is designed in similar lines of the construction linked plan, it is supposed to further ease out liquidity pressure on the buyer as compared to the earlier schemes. With the introduction of these two schemes along with reasonably

priced home loans rates, the demand for housing in NCR has been on the rise.

Ansal API has constructed integrated township over an area of 300 acres in Kundli and started giving possession. The developers are also ready to handover the possession of Sunshine County in the next 2-3 months and have plans to start new projects in this area. Jindal Realty Pvt Ltd is planning to bring top and large sizes residential units at affordable prices for middle and upper middle class segments. The Express Group too is coming up with Express City township in Sonipat at an area of 125 acres and hopefully the possession will be made in June next year.

FaRIDaBaDHot DEstINatIoN FoR MIDDLE CLassGreater Faridabad (Nehar paar),

owing to the availability of large chunks of land and the proposed infrastructural development, has become one of the realty hotspots for middle-class buyers

in the NCR. Looking at the future of the realty market and the prospects of long term investment, a number of realty players like RPS, BPTP, MGH, Puri Construction, KLJ Town Planners, Era Landmark, SRS, Omaxe, etc, have already launched housing projects here, with some of them even in the process of delivering their units.

Today, Greater Faridabad is ready to cater to the residential demand of nearly 25,000 people, with the completion of around 5,000 houses; it is expected that with developing sectors like Sectors 75,76,77,78,79,80,81,82,83,etc, poised to deliver nearly 50,000 housing units in the three-four years, this area would have the potential to house nearly 2 lakh people more.

Why invest in Greater FaridabadGreater Faridabad has emerged as one of best locations for affordable and luxury segments of residential real estate owing to the growth opportunities, improving infrastructure and fast connectivity

of the place. Most of the realty development is taking place in Sectors 75 to 89 in Greater Faridabad. Top realty players like Assotech Ltd, Gardenia Group and TDI have plans to launch new projects like integrated townships and commercial complexes here.

The real estate development in Greater Faridabad started off with only a handful of developers; but, with improving infrastructural development and availability of land, more than 80 projects have been launched till now. Also, looking at the increasing demand for housing in the NCR, developers are going all out to launch and complete their projects at a rapid clip.

new expressway on nH-2 Like the 165-km long Yamuna Expressway by the JP Group, Reliance Infrastructures is also going to construct a 180-km-long nonstop expressway from Faridabad to Agra on NH-2.Reliance Infrastructures has already bagged the road project on high-density traffic zone for this purpose. It involves four-laning of Gurgaon-Faridabad Road and improvement of Ballabgarh-Sohna Road on build-operate-transfer basis, at an estimated cost of `2,945 crore.

The project to widen NH-2 (Delhi-Agra highway) is a part of the golden

quadrilateral project. This highway connects Delhi, Faridabad, Ballabhgarh, Palwal, Kosi Kalan, Mathura and Agra.NH-2 is well connected with West, North and South Delhi and states like Haryana, Punjab, Himachal Pradesh, and J&K.

The Delhi-Agra Toll Road Pvt Ltd (DATRL) road starts from Badarpur Border and ends before the Yamuna bridge in Agra. The 180km-long stretch covers Haryana and Uttar Pradesh. Commuters travelling between IGI Airport, Delhi and Agra can now take a new and convenient route via the operational 25kmlong Gurgaon-Faridabad road; this route to Agra via Gurgaon would be cost effective as the total toll for a car would be `196,compared to `347 to be paid if one were to travel via the Noida toll bridge and the access-controlled Yamuna Expressway.

NH-2 is considered as the most convenient route for international tourists zipping around Delhi, Mathura, and Agra. This highway caters to cities and major towns like Delhi, Gurgaon, Faridabad, Ballabhgarh, Palwal, Hodal, Kosi, Vrindavan, Mathura, and Agra. It covers tourists destinations like Surajkund, Badkhal Lake, Jagmohan temple, Shivling Temple at Hodal,

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Government at Faridabad. Investment in Faridabad is the best

choice for many individuals in recent times. This is the right time to buy property in Faridabad and NCR as the real estate prices are rapidly growing in demand in this area. Faridabad in the recent past has seen a lot of growth and development in its infrastructure as well as property value. Both commercial as well as residential scenario in Faridabad is buoyant and developing at a massive rate.

There are lots of upcoming real estate projects in Faridabad which is contributing to the faster growth of this city. Many big builders and prominent constructors are all geared up to work on different real estate projects coming up here. Real Estate companies like Omaxe

and few others have changed the image of Faridabad with modern state-of-art building and malls construction and other projects both residential as well as commercial. Residential Projects like ‘The Forest’ by Omaxe Real Estate Developers is a prime example of posh residential development in Faridabad.

In the recent past, Faridabad has seen a lot of growth and development in infrastructure; the property values have appreciated considerably, as a result. The real estate boom in the city has transformed the skyline of Faridabad in the last few years, both in commercial and residential segment, with demand escalating by the day.

residential real estate scenarioFaridabad has been a subject of intense construction activities at least for

The new master plan of Faridabad for 2031 has projected a population of 42 lakh, up by 24 lakh from the current 18 lakh. Faridabad has 101 sectors, but once the new master plan is implemented, Faridabad will be home to 171 sectors, most of which will be situated in the Greater Faridabad and IMT areas. Greater Faridabad has the potential to develop into a mega city of Faridabad with a number of institutional, industrial and entertainment projects.

the past 5-years, and country’s most prestigious real estate developers have launched their projects in the city quite ambitiously. Omaxe, Eros and RPS have already set up their foothold in the city with their huge residential projects, while Business Park Town Planners (BPTP) is set to develop a mega township, covering as much as 1500 acre of land in Sectors 5 and 7.

The capital prices of residential properties in prime areas have reportedly gone up by 25 per cent in the past 18 months, although the same have been stabilizing for quite some time now. At present, the capital values that vary between `2080 and `3,850 per sq. ft for apartments in prestigious projects may fetch marginal appreciation. According to industry veterans, investing in Faridabad Real Estate with long term could be beneficial.

real estate developersInfrastructural development and real estate boom are making Faridabad a focus for investors. A number of real estate developers like BPTP, Eros Group, Omaxe, Vipul Ltd, Piyush Group, SRS Group, KLJ, Ansals, Parsvnath, Eldeco etc, have contributed in a big way to tap the potential of this emerging destination. Faridabad has always been underpriced in spite of the geographical advantage that it offers in being equidistant from Delhi-Gurgaon-Noida and enjoying good connectivity by road as well as on the rail route.

But now the situation has been transforming with the entry of the private players. Along with swanky residential projects like Charmwood Village (Royal

Banke Bihari temple, Radha Krishna temple, Radha Kund, Kokilvalam Dham, Shani temple, ISKON temple, etc.

realty scenarioGreater Faridabad Sectors 75,76,81,82,85 adjoining Neharpar and near the posh Sectors 14 and 15,is expected to be the preferred site for people coming from different pockets of Faridabad and Delhi. A number of developers like BPTP, Omaxe, RPS, SRS, Puri Construction, KTS, Home Town, Piyush Heights, Emerald Heights, Universal Group, ORS Infrastructures, Iris Abode Pvt Ltd, etc, have come up with mega projects here. BPTP, a big realty player in terms of the land bank under its possession here, is expected to deliver its project like Park Floors, Park Grandeura, Princess Park, The Resort, and Park Elite Floors soon.

RPS Group has developed a township, RPS City, over 90 acres in Sector 88 in Greater Faridabad. One of the largest group-housing projects of the group, Savana, with over 2350 units, in different categories, is coming up over 50 acres in RPS City. Another residential project, RPS Palms, with over 450 spacious independent floors is also under construction here. The RPS Group is diversifying into commercial projects as well and recently launched RPS-INFINIA, an IT park on Main Mathura Road along NH-2.

Factors for speedy development: The factors that have led to the speedy development of the region are primarily due to extending Delhi Metro to Faridabad and upcoming Expressways namely as Western Peripheral Expressway connecting Palwal, Manesar and Sonipat in Haryana and the Western Peripheral Expressway. Faridabad is also experiencing the growing demand of property from builders. Most of the residential housing is already on verge of saturation with the constant demand of residential property surrounding this city. This modern NCR Township enjoys its proximity to Delhi, Gurgaon and Noida and gives shelter to many industrial houses. There is a proposal of setting up of new Industrial Model Township (IMT) by the Haryana

Currently, we do not see any upswing in the north Indian real estate market but can expect

after the elections. However, the real estate market of Faridabad and Greater Faridabad is growing because of its good connectivity with

Delhi, Noida, Gurgaon and Mathura. The prices in Faridabad are much lower compare to adjoining areas such as Noida and Gurgaon.

Dr Anil JindalCMD, SRS Group, Faridabad:

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Retreat I, Royal Retreat II) by Eros Group, Parklands by BPTP, Piyush Heights by Piyush Group, there are a lot of commercial projects like EF3 Mall, which are either on the verge or have been completed. Many shopping arcades and malls are already functional here.

nehar paar, Faridabad (Greater Faridabad)The Nehar Paar region in Faridabad was incorporated into the new Master Plan about 6 years ago. Nehar Paar, as the locals call it, refers to a cluster of residential about 20 sectors in Faridabad with an area of about 3,000 acres land for residential and commercial hub. Also termed as Greater Faridabad, this area is still being developed but already boasts of superb facilities such as wide roads, huge buildings, shopping malls, educational institutions etc. A number of people choose to reside here due to its close proximity to Noida and Delhi. The developers are providing several options such as multi-storey apartments, plots, villas and townships.

The residential plots are available in the range of `10,000 and `5,000 per sq.yard and flats are available with a price range of approx `1800 to `2000 per sq.ft. Since the prices are on the rise, Nehar Paar will be on a par with other major realty hotspots.

Nahar Paar area remains the center of development currently. However, the development of this area is in early stage. Property prices have been climbing in the area. The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Third Industrial Model Township (IMT) is developing 1,750 acres. Sector 79 has been declared commercial by Municipal Corporation of Faridabad. The commercial projects will be developed as store and shop with flat. In terms of pure residential Projects in Nehar Paar mainly the apartments are being built.

The new infrastructure projects that will help in development of Faridabad include the 165-km long Yamuna Expressway (near Sector 80) and a highway starting from Kalindi Kunj and running parallel to Mathura Road that will bypass the city. Sector 75 near Agra canal is going to be the next commercial hub for Faridabad. The authorities are

paying due regard to the greening of the place as well. While several shopping malls are under construction, Faridabad is likely to have more than 40 such commercial spots over the next few years.

Property and real estate prices in New Faridabad are already shooting up. In the near future, the property at Greater Faridabad will be a priced possession. The industrial city with nearly 300 large and 10,000 small-scale industries under its belt has always been under-priced. But, now, the situation is changing. Among the sectors that have great potential are Sectors 88 and 89; these are in demand as they will be close to two forthcoming highways. Property rates in New Faridabad have jumped up by 20-25 % during the last few months.

recent developmentsThere has been a rise in demand in the residential sector of Neharpar, hence the rental rates have also gone up. The available price for a 3 BHK is `17,000 meanwhile in September 2010 the rentals were hovering around `14,000. Realtors predict that rentals can go higher up in the coming months. Two new projects are coming up in Neharpar. SPR Imperial Estate where the price for a 3 BHK will be `17 lakh, while in BPTP Park Elite Floors, the rates are `18 lakh-28 lakh for a 3 BHK.

latest property trends in FaridabadThere has been a massive spurt in property prices in the past two years with certain pickets having scaled up in the region of 100 per cent. In December 2009 one could get a property in Sector 16 to 21 at around `25,000 per sq.yd, but today the same costs around `38,000 per sq. yd.

New development is taking place all around Sector-80, in the Neharpar region, now re-christened as ‘Greater Faridabad’. “The prices of plots, which are mostly available in re-sale, in Neharpar sectors are between `9,000 and `2,000 per sq yd.

For flats the prices are in the range of `1,800 per sq ft. One of the best options for the area is the independent floors in various projects. The BPTP group has already announced a project offering independent floors. The rate of Puri

Constructions’ independent floors for an area of 300 sq yard is around `30 lakh. Ansal Buildwell Ltd. and Crown Group have also launched New Faridabad’s first luxurious, planned and integrated high rise apartments ‘Ansal Crown Heights’ situated at Sector 80, spread across 18 acres, adjacent to commercial hub of Faridabad Sector 15A, 15 and 14. The project will include two bedroom, three bedroom, four bedroom apartments and four-bedroom duplex pent houses, with the price range of `30 lakh to 1.80 crore.

The industrial city with about 300 large and 10,000 small-scale industries under its belt has always been under-priced. But now the situation is changing. It not only has swanky residential properties but a lot of commercial projects have developed too, while some are under construction.

Future perfectThe Nehar Paar area was incorporated into the new master plan around six years back and is a cluster of over 20 sectors spread over roughly 3,000 acres. BPTP, Omaxe, SRS, Vipul Group, Piyush Group, Puri constructions, RPS etc have affordable category as well as premium residential projects here. The area already boasts of broad roads, shopping malls educational institutions etc and is a preferred location for investors because of its proximity to Delhi and Noida.

The advantage of buying a home or investing in Faridabad is that the prices are in the affordable range here still. Residential plots are available in the range of `10,000 and 15,000 per sq yd and flats are available in a price range of `1,800 to 2,000 per sq ft. in most of the projects. Ansal Buildwell has a project in Sector 80 offering 2, 3 and 4 BHK apartments and pent house with the starting price band of `29 lakh.

However, the city also has a lot to offer to the HNIs and those looking for luxury projects. Omaxe’s Forest Spa project in Surajkund which is a luxury project having ultra luxury apartments and penthouses are in the price band of `6,500 per sq ft. Faridabad has close to a dozen malls with Ansal Plaza, Crown Interiorz, SRS, Pristine etc getting good response from international retail chains.

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GuRGaoNGuRGaoNGurgaon realty market is one of the

most attractive investment options amongst investors. Not only Indian investors, but investors from all across the world find it a lucrative choice. Active presence of major real estate players in the city makes it a vibrant property market. And this is not limited only to the investment; end users also find it an excellent living destination due to various reasons such as good ‘life to work’ environment, good career options and state-of-the-art infrastructure. One of the contributing factors in growing real estate market in the city is the escalating significance of city as a corporate hub.

Whether its residential properties or commercial properties, Gurgaon realty market is widely known for the world-class architecture it offers. It has been a significant factor behind success of the city. Various realty leaders have launched state-of-the-art projects such as EMG Ekaantam, IREO Skyon, Vatika INXT City and Puri Emerland Bay etc. The city reports presence of major real estate builders including DLF, BPTP, Raheja, Emaar MGF, Ansal, Unitech, Omaxe etc. These developers use services of highly qualified national and international architects, use latest techniques and focus on offering an international lifestyle to the residents, which raise confidence of investors and end-users.

Over the last one year, capital values rose by more than 30-35% in Gurgaon’s residential sector. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets. Emerging residential areas are still not able to meet the huge housing demand.

Hot locationsResidential property prices on the upcoming southern peripheral road connecting to National Highway 8 have seen considerable appreciation over the past few months. This location holds great investment potential thanks to enhanced connectivity that NH8

provides to Manesar and Dwarka. In particular, residential properties along the Dwarka Expressway have attracted interest from the mid-income buyer group. As prices soar in upcoming locations of Gurgaon such as Golf Course Extension, Sectors 70 and Sector 78, buyers have been looking at these alternate locations.

Areas in the NCR like Dwarka Expressway, New Gurgaon-Manesar show immense potential for investors as well as end users. The year 2013 is expected to be promising for the real estate industry. Jones Lang LaSalle India report says in a report on NCR that areas like Dwarka Expressway, New Gurgaon-Manesar show huge potential for investors as well as end-users because of its infrastructural advantages and the locational benefits, has immense potential. The area has been able to successfully withstand the heat that many other areas and pockets of NCR have faced.

The residential real estate market in 2013 will depend on many factors though 2012 was not very good for the sector and market picked up only a little at the end of the last quarter. In the coming year, several steps are needed from the government and the developers to make sure that the market remains affordable for buyers. One very important step is to bring down the home loan interest rates, as they are hampering the decision of many homebuyers in the affordable segment. The market for luxury offerings will remain stable in the year and many high-end projects recently announced might pick up some pace, says Mr Vijay Jindal, Managing Director SVP.

The Gurgaon Residential Market performed decently in 2012, but it was not uniform all across. There were high levels of unsold inventory in some of the projects, while many others sold exceedingly well. Golf Course Road, Golf Course Extn Road and Sohna Road achieved handsome appreciation in both capital values and rentals. The factors what worked for them were their good connectivity with New Delhi through the

six-lane NH-8 and MG Road, providing quick and easy access to the IGI airport and the 14-km Southern peripheral Road, which covers all the major developments in this part of Gurgaon and connects MG Road and Golf Course Extension Road with NH-8, the report said.

The most sensational performer in NCR region is Dwarka Expressway. Its proximity to the international airport and the proposed diplomatic enclave, along with its rapidly evolving infrastructure and good connectivity with west Delhi and Gurgaon continued to work in this region’s favour.

Residential demand on Golf Course Road was driven by heavy demand from corporates. Projects there saw an average appreciation of around `1,500-2,000 per sq foot during the year, thereby taking the price point to an average of `12,000-15,000 per sq foot, the report said.

Golf Course Extension was also a hot destination for residential real estate. Project in the area saw capital appreciation of around `1,500-2,000 per sq foot because of its vicinity to Golf Course Road, its various other locational advantages.

With good-quality supply under construction and more affordable options, Golf Course Extension saw high level activity from investors looking for lucrative returns over an investment period of three-four years.

Similarly, Sohna Road saw very decent residential sales levels as it is more affordable than Golf Course Road and Golf Course Extension and had a steady supply of ready-to-movein units to offer. This made it a location of choice for end users.

Projects on Sohna Road appreciated by around `1,500-2,000 per sq foot, bringing price points to the current average of `8,000-9,500 per sq foot, the report said. Sohna Road also benefited from the cyclical impact of high-level leasing of office space by companies to base their office out of the area. This, in turn, generated the demand for residential options which further augmented the office leasing activity.

expectations in next few yearsReal estate experts states that in next few years Gurgaon real estate market might

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grow rapidly. They further said that in next five years nearly 150000 ready-to-move-in apartments can be available in the city. One of the contributing factors in the growing property demand is the prevailing high property cost in the millennium city. It raised the interest of the investors, who want a property with sound capital appreciation.

In some emerging areas like New Gurgaon and Dwarka Expressway, existing prices are not that high, but once construction of these areas is completed these are anticipated to be the centre of Gurgaon. And this will definitely result

in price hike in these areas. So investors who want long term investment options find it to be a great opportunity to invest in these emerging corridors.

As per the new Gurgaon Master Plan 2031, there will be more availability of land for more real estate corridors are proposed in the master plan. As per the new plan nearly 14900 hectares of land has been allotted for residential projects, which will offer home for more than 58 new sectors.

theme based projectsOne latest trend in Gurgaon real estate

market is theme based projects, which are drawing attention of domestic and international buyers. These projects are basically to tap a niche market. These clients want something above basic amenities such as health clubs, swimming pools, spa & saunas etc. For instance The Nile by Omaxe is a premier project aimed at offering a live ancient Egyptian civilisation with its arches, tomb and entire structures that symbolizes Egyptian culture. It also includes villas and flats inspired from Spanish villas and Arabic architecture.

bhiwadi is a fast developing tier II town and having low rates

compare to Gurgaon and Manesar, it is the hot destination for investors, buyers and consumers who are seeking affordable housing as the Bhiwadi is well-connected with Delhi, Gurgaon, Manesar, Tijara, Alwar and Jaipur. Bhiwadi is about 70 km from Dhaula Kuan, 55 km from IGI Airport, 90 Km from Alwar and 60 km from Faridabad. Hectic construction activity in over 20 residential projects and five malls here amply reflect the buyer and builder interest in this area.

This area will also be connected with the upcoming Kundli-Manesar-Palwal Expressway, which promises rich future connectivity under the 2021 Gurgaon-Manesar Master Plan. All this makes Bhiwadi hold great potential for robust growth in the near future. The development that started along NH-8 in Gurgaon has since spread to Manesar, Dharuhera and now Bhiwadi, and is likely to go up to Alwar.

It holds potential to give value for money to the investors and buyers. Development in Bhiwadi has gathered pace with the intervention of an industrial hub. The Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) is aggressively pushing for rapid development and major investments

in the town. The investors and buyers are now looking Bhiwadi-Tijara Road (around 3 km downtown of NH-8- Delhi-Jaipur) in Alwar district for investment because of comparable low rates in the region. Currently, Bhiwadi is new hub of residential as well as industrial.

revised master plan: Prepared for the development of 555-sq Km area, the Master Plan has been scripted after factoring in the future needs as the freight corridor will fuel the growth of multiple sectors, encompassing a wide spectrum of economic activities. The Khushkhera-Bhiwadi-Neemrana belt is being developed as the first node for which the required land has nearly been acquired. The early bird projects that would come up in the node include a 70-km road link between Neemrana and Bhiwadi. The master Plan is bound to add to the attraction of Bhiwadi which has already emerged as a centre of investment.

The prices here are reasonable as compared to Gurgaon, and the property rates have witnessed an average hike of 12 per cent per annum for the last 2-3 years. The first developer to pitch tent in Bhiwadi was the Ashiana. Launched at the rate of about `2,200 per sq ft, the units are now selling in the range of `3,400 per sq ft. Ashiana has launched

and handed over possession to seven group housing projects, namely Greens, Bageecha, Gulmohar Park, Gardens, Villas, Rangoli and one senior-living housing society ‘Utsav’. Genesis Infratech Pvt. Ltd launched its first residential project with the name of Genesis Gardenia.

The other players, including Genesis, Omaxe, Avalon, Nemai, Terracity, M2K, Cosmos, Essentia, and Krish Group, have also come up with many projects in this area. The selling prices of apartments in Bhiwadi look reasonable: one can get a 2 BHK apartment for `30 to 40 lakh as compared to Sohna road and Manesar, where these cost any thing between `60 and 80 lakh

locationBesides its proximity to Delhi, Gurgaon, Manesar, Bawal, Alwar and Neemrana, the area has a direct approach to NH-8 and the Delhi Mumbai Industrial Corridor runs right through it. Apart from this, it is linked to the Japanese Corridor intersection. A big advantage for Bhiwadi, and for those matter cities along or near NH 8, is the ease of connectivity. The place is attracting industrialists and thus the scope of

BHIWaDI Property prices in the city will obviously be majorly impacted by the forthcoming rail link

and realty in Bhiwadi will undergo a facelift and makeover of the city as a real estate destination will be complete.

Mr Rajesh Kumar YadavManaging Director, R-Tech Developers.

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real estate growth is booming here. Earlier, investors were vary of picking up property here, but that sentiment is going to change now with projects like the ‘Rapid Rail Plan’.

affordability factorIn spite of rapid industrialisation, property prices in this region of the NCR are still in the affordable bracket and this is one of the major attractions for end users as well as investors. The prices here are at least 30 to 40 per cent lower than those in Gurgaon, its nearest neighbour in NCR. It offers

better facilities at a much affordable prices within the reach of the middle class buyers when compared to those in Gurgaon, Noida, Faridabad etc whose company has residential, commercial and hotel projects lined up for Bhiwadi. The current price is in the range of `2,200 to `2,800 per sq ft. The cost of a two BHK flat is between `25 to `32 lakh, while a three BHK can cost up to `35-40 lakh. Villas with four bedrooms in an area of 2200 to 2500 sq ft may cost over a crore here. Owing to the affordable cost and world class facilities, the newly constructed apartments are

in high demand and most of these have already been booked.

looking upWhile land acquisition mess and the very recent water imbroglio have given jitters to the property market in other NCR destinations like Noida Extension, Greater Noida and Gurgaon, Bhiwadi’s ride seems to be clear of such potholes. “At the current pace of development I would not be surprised if five years down the line Bhiwadi gives tough competition to NCR’s star-Gurgaon -as far as property prices and living conditions are concerned.

puNJaBReal estate market of Punjab is

growing fast and new projects with new ideas are coming up in almost all the big and small cities of the state as the residential property is in big demand from local and NRIs in areas like Chandigarh, New Chandigarh, Mohali, Panchkula, Kharar, Zirakpur etc. Due to the variations in real estate market prices, buyers are investing in Chandigarh Tricity and its suburb areas, The developers are offering flats, housing complex, villas, apartments with luxury features and affordable houses.

The Punjab real estate market remained stagnant and sluggish for two/three years, facing problems of slums in cities like Ludhiana, Amritsar, Patiala and Bathinda and with a glut of unconstructed property lying vacant. Thousands of flats are lying vacant in the periphery of Chandigarh which was purchased only for investment perspective. The new housing policy is aimed at addressing these grey areas and infuses fresh life in a listless realty market.

The Property market has big expectations in the current financial year. Punjab has been upbeat in the residential properties with an increased supply and consequently prices surged. The prices also increased in Chandigarh

and Greater Chandigarh-Mohali due to various policy changes including increased ground coverage and floor area ratio. The ground coverage has been increased from 50 to 70 per cent of the plot area and the floor area ratio is increased from 1:50 to 2.00 to for a 10-marla residential plot.

punjab realty to get “industry” status likely With land resources shrinking and property prices shooting, Punjab is all set to lead India on the path of green growth by subsidizing high-rise and energy efficient buildings in the state. The state government has plans to attract massive skyscrapers in its cities and incentivize high rise and energy-efficient constructions through its new Real Estate Policy. The new policy would accord industry status to the sector and remove various bottlenecks and simplify procedures. Once accorded the industry status, the real estate sector will get all the benefits available to industry. The state government is also planning to grant industry status to give a fillip to investments in the state in a bid to boost its economy which is facing a crunch due to global economic downturn.

The state hopes to attract an additional `50,000 crore investment into the state

soon after the new policy is unveiled. The state was set to simplify procedures and make investment attractive by removing all bottlenecks and making the real estate policy incentive-based. To attract investment in the real estate market, the government claimed that Punjab would be a power-surplus state by next year and would have one of the best air and road connectivity with the starting of three international airports and four-six laning of state and national highways running across the state. Showcasing real estate opportunities in GMADA region, the Punjab government is coming up with city center (80 acre), medicity (200 acre), IT City (1600 acre), Education city (1700 acre) in the vicinity of Chandigarh’s.

time for vertical buildings:To attract more investments for its real estate market, the state government is shortly announcing the new housing policy. The new policy underlines

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the feature of the housing policy is to ensure hassle-free and time-bound clearances for the investors, besides offering incentives in floor area ratio for green buildings like five per cent extra FAR for green buildings in the state. Punjab is committed a home for the poor by 2020. The government will earmark a share of flats for the EWS in all the projects undertaken by the Punjab Urban Development Authority. The notification will spell out rationalizing norms for housing projects and simplified procedure in applications and processing. The policy has decided on uniform buildings rules, incentives for construction of affordable houses/green buildings and the timeline for approval of projects.

regulatory BodyWork has already commenced on constituting the state regulatory body on all the constructions in the state. The body will ensure that no relaxations are allowed on the fresh constructions, so that the state is saved from the existing mess of hundreds of housing projects that are without quality services inside the complexes. Besides, regulating new constructions, the body will also look into straightening out the complications in the existing structures, particularly the new breed that has come along the major townships adjoining Chandigarh and other important townships in Punjab.

turn-key formulaIn Punjab, all real-estate projects, in future, will be allowed only on turn-key basis. The builders will have to take responsibility for roads, sewerage, lying out of the electricity cables and allied facilities. Turn-key is a type of project that is constructed so that it could be sold to any buyer as a complete product. The company will be required to maintain, all the facilities, for at least 15 years after handing over the possession to the owners. Instead of shifting between the government and the company, the intention is to make a single party responsible, as otherwise a common man is left shuttling between different agencies to obtain clearances. In the first phase, as many as 700 flats have been constructed in Mohali on turn-key basis to set an example.

CHaNDIGaRH-MoHaLI-

paNCHKuLa (Zirakpur, Mullanpur, Kharar, Landran, Dera Bassi, Pinjore-Kalka and adjoining areas)

Every 5 to 6 years, realty prices in Chandigarh-Tricity take a big jump

and then stabilize for a while but the prices never really fall because the supply is limited and the takers are always too many. The price correction is visible across the city. Prices of houses in the northern sectors of the city which earlier went up to `11.5 crore is now down to `10.5 crore. In southern sectors, Mohali and Panchkula too, the drop is proportionate. It is expected the current prices are likely to continue for the next two to three years.

The periphery of the tricity is riding high on Chandigarh’s top ranking as one of the best cities to live in, in the country. Zirakpur, Mullanpur, Peer Mushalla and the stretch from Mohali towards Kharar and Landran are all cashing in on this appeal and drawing in buyers who want to live near the union territory.

The contours of real estate trends are generally defined by the customer demand. This basic demand and supply equation is the factor that is fuelling the current trend of independent floors in the tricity areas. While astronomical land prices in tricity and its periphery would ideally make a perfect pitch for residential units in high rise 10-15-storey towers, the buyers’ demand has jacked up the supply of independent floors with almost every developer worth his salt coming up with an independent floor project.

Further, scarcity of land and pressure

of population allowed construction of additional floors and new concept of group housing (apartments) has been introduced. These alterations not only permanently altered the cityscape but also the city has lost its original built form, he said. While talking to big names in housing sector—DLF, OMAX, L and T and Sushma BuildTech Limited agreed that a number of new concepts have been added in the housing sector.

Housing sector has changed from vertical to horizontal. Function-based design in housing has been changed to organization-based thinking. City suffered from urban sprawl, soaring prices and lack of attractive housing alternatives were the result of a narrow inflexible housing market and families moved from Centre to suburbs where they got affordable, compact dwelling unit, said the official of DLF.

Key driversPunjabis have always had a soft corner for land and independent homes and in big cities these floors come closest to owning an independent home for those who can’t afford the astronomical property prices in big cities like Chandigarh. This is the main reason for increased demand for independent floors here. The home buyers have a choice between going for an apartment in Zirakpur societies or a floor in Mohali area and as there was very little price

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Architects are the most conformist professionals. Presently, majority

of new housing consisted mass produced multi-storey residential buildings suitable for middle-class as it is the single biggest wealth creator. In terms

of flooring, plans, fittings and materials, new housing has very uniform. The Indian developers today are appointing best architect for using the space maximum with new innovative design. It is the duty of the architecture to utilize the space in a manner that it gives new look as best designed buildings have the huge demand in the market today.

Mr Vakul MittalManaging Director Planner Group, Chandigarh

difference, home buyers went in for an independent floor as they can have front and backyard and there will be no hassle of parking etc. Low maintenance charges is another factor that make many end users opt for an independent floor, says Deepak Makhija of Ansal API group.

Around 75 per cent young Chandigarh residents employed in public sector undertakings, working in multinational corporations or having different types of businesses or professions prefer to invest in real estate. This was revealed in an Associated Chambers of Commerce and Industry (ASSOCHAM) survey titled ”Latest Investment Trends Among Urban Professionals”, which was carried out in five cities.

Chandigarh was second to Delhi when it came to the importance of real estate as an investment option. The urban professionals included doctors, lawyers, businessmen and those employed at offices. The survey was carried out between September 2010 and January 2011. Chandigarh-based professionals divulged that they preferred to invest in the real estate business for the long run as on one hand, it guaranteed them higher future returns and on the other, it helped them stay away from risky investment options like stock market, equity, mutual fund and gold.

ASSOCHAM’s interaction with big players in the realty sector found that

even expatriates preferred to invest in property in and around the Tricity and that had increased the value of areas like Zirakpur, Pinjore, Kharar, Kalka, Kurali, Ropar, Morinda and Banur, where real estate giants are competing to build residential and commercial complexes. Realty is India’s money-making sector as it allows urban individuals to pay monthly rental and provides them with tax benefits as they repay loans.

Upsurge in the property prices coupled with growth and development in the region were other significant factors that attracted working individuals to realty. While many of the respondents in Chandigarh stated that investing in national saving certificates (NSCs), fixed deposits, post office monthly income scheme (MIS), bonds, debt instruments represented ”old school” investment concepts, prudent investors were trying to strike a balance vis-a-vis exposure in real estate, gold deposit schemes, mutual funds and life insurance to achieve financial safety, security and independence.

projects and pricesIndependent floors have emerged as the buyers’ favourite in integrated city/township projects along the Kharar and Landran-Banur roads as well as in the Mullanpur area and in the Pinjore-Kalka Urban Complex. In most of these ‘mini cities’ the builders are coming up with more than one such projects. While the TDI group already has handed over possession of 150 units in My Floors and 240 units in Tuscan Residency are in the final stages for possession, Ansal API already has three projects —Luxury Floors, Exclusive Floors and Happy Homes — in its Golf Links-I in Sector 114, on Kharar-Landran road. Gillco City, Acme Floors, Premium Acres, in Mohali also have these floors on offer.

While in this area of Mohali there is ample choice even for the salaried class, in Panchkula and Mullanpur, the independent floors come wrapped in an aura of luxury. While DLF, had offered over 1,900 floors in its DLF Valley in Pinjore Kalka Urban Complex, Sector 3, the price band is steep at around `5,100 per sq ft making an 1850 sq ft floor cost around `one crore. But the high prices are not a dampner for the demand for

floors. In Mullanpur DLF had recently offered independent floors in its Hyde Park Township and the 200 units each with a ticket price of around `78 lakh were booked in a matter of days.

With two major developers — TDI group and Ansal API — launching two independent floors projects in the Mohali area, the developers now seem to be playing the affordability card by keeping the price band at par with that of an apartment in a high rise. The TDI group has even strategically christened its new launch ‘Affordable Homes’ where in a three-BHK floor is being offered in the range of `33.5 to 38.5 lakh (depending on the floor and including the EDC charges). The project will come up in the group’s TDI City, Sector 110-111, Mohali. Ansals API, the other group that also launched its Victoria Floors project in Golf Links-II project in Sector 116, Mohali, has a two-BHK offering in the price range of `30 lakh to `40 lakh (depending on the floor).

Omaxe, another player in Mullanpur also has over 1,000 floors in its kitty in three projects — Ambrosia, Cassia and Silver Birch — in its 700-acre Omaxe New Chandigarh Project. The price range is between `2200 to `3800 per sq ft. Though three-bedroom is the ideal size, independent floors in the affordable range are also available in two bedroom option for smaller families. With no hassle of paying society and parking charges and more independence and quality life, independent floors is a trend that is going to keep the realty scene

After two years stagnant and sluggish Chandigarh Tricity real estate

market, it is now picking up. We are receiving good demand from the customers despite price hike. A good development is being seen all around the

Chandigarh city and new projects are being announced on demands from the consumers. The apartment rates are around `3400-`3500 in the area.

Mr Satish JindalManaging Director, Barnala Builders Zirakpur (Chandigarh)

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residential plots were allotted at `12,000 per sq yd and in Eco city, Mullanpur where the plots were priced between `15,000 and `19,000 per sq yd, GMADA has fixed the rate of residential plots at `23,500 per sq yd in the Knowledge Park project according to the officials. Any variation in the allotment rates, depending on the plot size has not been disclosed so far. The rate was the outcome of higher land compensation of `1.70 crore paid to the landowners. The subsidized land rate to be offered to the IT and bio-tech industry would be compensated from the sale of residential plots, measuring 100, 200, 300, 400 and 500 sq yd.

dera Bassi

Zoom bookmark share print translate Dera Bassi real estate market

started rising with the Zirakpur real estate market activities, attracting small investors and end-users in the budget-accommodation segment. In Zirakpur, located on NH-22 (Chandigarh-Delhi Road), most of the real estate activities are on this highway while in Dera Bassi, largely it happened in the interior areas, particularly of NH-22. Higher prices coupled with the slow pace and low quality of infrastructure development in Zirakpur has pushed buyers, particularly end-users to explore this market.

Mr Dhall said good demand-supply from end-users and investors made the area for an attractive investment option for the medium and long term. As compare to Chandigarh, around 20 km from Chandigarh towards Ambala, the real estate rates in Dera Bassi are almost one-tenth of Chandigarh and also indicate high potential for higher investment returns. There is big demand for quality homes here and prices are appreciating of such projects.

Local and national-level developers like Parsvnath, Silver City, Raglan, ATS entered into this market after 2006-07. Apartments are the primary demand in this area though plots are also available. Residential products are available in most price segments, though the majority of supply comes in the budget-accommodation segment of `20 lakh to

Key pointersIt will be a prestigious project, •as a 200 ft road along Mohali would ultimately link the proposed international airport with the Kharar-Banur highway while crisscrossing Aerocity.It would more be like an IT park •having residential and commercial components. The concept of IT parks in Singapore was being studied for the purpose. The area has been chosen specifically as expansion of the future city has been envisaged towards the southeastern edge of the existing Mohali town.GMADA is eyeing to attract a •number of IT companies in order to make SAS Nagar an IT hub.GMADA has already written to the •Airport Authority of India (AAI) to know about the construction schedule of the airport so that work on the road could be taken up accordingly. Officials said the Knowledge Park had been planned to take advantage of the expansion of the airport and other development in its proximity. The airport would act as a catalyst for the IT industry.

abuzz in the tricity for a long time.The existing rate of commercial

property on Madhya Marg Chandigarh is around `35,000 per sq. ft and the rentals are about `120 to 150 per sq ft. In sector 17 in Chandigarh the rent is about `7 lakh for ground floor for any of the main showrooms, which comes to around `700 per sq. ft. In comparison in Zirakpur commercial space is easily available for `4,500 to 5,000 per sq. yd and rental on the main road is around `60-85 per sq. yd. So it makes sense to invest in Zirakpur where the return on investment is five times of that in Chandigarh. See the difference in rental income is not huge, but you can buy the same commercial space at probably 1/5th the price of any property on the Madhya Marg.

Higher price BandAs compared to Aerocity where

`30 lakh. Most developers are offering apartments. These are available in both the primary and secondary markets. Since constructions began in 2006-2007, possessions have already been offered in most of these projects, says Mr Dhall.

The Dera Bassi realty market faces competition from other similarly priced areas like Kharar-Landran Road and New Chandigarh (Mullanpur) also in the Mohali district. But it has its advantages. When compared to the Kharar-Landran area, it has better connectivity and the supply-demand dynamics are also better. The supply is much stronger than the demand. Dera Bassi also scores over the Mullanpur area. While many areas in Mullanpur are in the initial stages of development, a big chunk of Dera Bassi is already developed.

sas nagar (mohali): Greater mohali

mohali new and vibrant city located next to Chandigarh is a new hope

for real estate sector and is competing with the City Beautiful where ultra-modern infrastructure is getting ready and waiting for everyone. Baby steps taken in real estate in Mohali a few years ago have turned into big strides. A sleeping village came into lime light in 1975 when the Congress Session was held here under the patronage of Giani Zail Singh, the then chief minister of Punjab.

Since then it is heading to become another Chandigarh. To fulfill the dream of another world-class city in the vicinity, the Punjab Government has formed GMADA that intends to develop Greater Mohali Region (GMR). It has prepared a Vision Plan (2008-2058) consisting regional plan and master plan of the entire GMR which maps out the vision for the Greater Mohali Region.

The plan has long term development strategy for a projected population of 4.5 million. The Punjab Urban Development Authority (PUDA) stepped in. Now the powers and functions of PUDA relating to development and urban planning have been transferred to GMADA. It had approved some key real estate projects in principle. Besides a number of global tech giants like Dell; Philips; Sebiz Infotach; and SCL entered the ring, there are giants developers those have been allotted major chunk of land.

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Increased employment potential and improved connectivity have

combined to do Chandigarh’s real estate market a lot of good. The future demand in both commercial and residential properties is high. The scope of future

developments would naturally give rise to concerns about the ability of the city’s infrastructure – which has been carefully and calculatedly calibrated in the past - to shoulder the number of projects coming in. Moreover, the planned city of Chandigarh has only limited future supply, dependent on what the Government releases.

Of course, Chandigarh no longer exists as a stand-alone location. Panchkula and Mohali, the two peripheral towns, are also seeing a lot of growth because they cater to the spill-over demand from Chandigarh. There is escalating demand in these areas as well, and this demand is and boosting real estate values all around. The growth in these two cities is slower and less organized than in Chandigarh, but they have a bright future in terms of their real estate markets.

Santhosh KumarCEO – Operations, Jones Lang LaSalle India:

The real estate market of Dera Bassi witnessed price appreciation in

the range of 25% to 30% in 2010-11. In the following year, 2011-12, though the appreciation was not the same but trends were not negative either. The prices in the

apartment segment vary between `1500 sq ft and `3500 per sq ft and plot segment, prices vary between `8000 and `20,000 per sq yards. Currently, the price growth has been minimal and this has been visible mainly in the primary market.

S C DhallMD, Subhash Mangat & Sons, Chandigarh.

Residential (old phases) Area Rate

House

4 marla `50-65 lakhs

8 marla `1.25 to 1.50 cr

10 marla `1.75 to 2.25 cr

16 marla `2.50 to 3.25 cr

20 marla `3.50 to 4.50 cr

CommercialBooths `40 to 50 lakh

Showrooms `3.50 to 6.50 cr

moHali

Location Type Area Rate (`)

Chajju Majra Road Apartments1286, 1446, 1528, 1678, 1760 sq ft

`2500-3500 sq ft

Sec 85 Apartments

3 BR 1675 sq ft to 4 BR 2650 sq ft

`3800-4200 sq ft

Plots 350 sq yards to 500 sq yards

`38,000-40000 sq yards

Sec 100 and 104 Plots

150,200,256.67, 400, 450, 500 sq yards

`20,000 to 25,000 sq yards

Towers `3100 to 3200 sq ft

CHD-Kharar Highway

Apartments 1600 to 2040 sq ft `2500-3200 sq ft

Plots `17000 to `28000

Kharar-Landran Road Apartments `2700-3200 sq ft

Plots `17000 to 23000

Sector 91Apartments `3500 to `4200

Plots `35000 to `45000

Chd-Mohali- Landran Rd

Apartment `2500-3000

Plots `14000-Rs 21000

On Chd-Ropar-Kharar Apartments `2500 to 2800

On NH21,Chd-Ropar Rd, Kharar

Apartment `2500-3000

cent of the earlier estimated investment. The key drivers in the housing projects from Sectors 85 to 106 are of DLF Universal with investment of INR 30 billion and EMAAR MGF (38.2 billion). Besides, Emaar MGF is also developing an integrated ‘golf and leisure city’ in Mohali city at a projected cost of more than `27 billion.

A number of projects are upcoming in GMR—city centre in Sector 62; Habitat Centre in Sector 64; a golf course in Sectors 91 and 93 on an area of 293 acres of land; knowledge city in Sector 81. It is also disclosed that 12 new industrial parks are expected to be developed in the GMR with 18 per cent of total proposed investments. More than 50 new multiplexes are being developed with investments of `75 billion during

the past five years. The planned investment

in more than 25 new hotel properties with cost of `15.5 billion is in the pipeline. As per study of the Chandigarh Residential Real Estate View-2012 conducted by ICICI Property Service real estate prices in GMR will continue on an upward trajectory owing to

DLF allotted 800 acres of land; PACL (I) Limited 260 acres; Emaar MGF 2100 acres; IREO Limited 300 acres and Shipra Estate Limited 650 acres to provide a booster dose to the real estate.

From 2007 to 2011, the total investment in the mega projects coming up in GMR was around `435 billion which was about 12 times the estimated economic output of the region. Overall it appears that the major investment in the GMR is expected in residential properties, business parks and office spaces to accommodate IT/ITes operations, multiplexes, industrial parks and hotels, stated the official of the GMADA. The key drivers IT/ITeS will continue to grow at high rates, he hoped. As huge investment is in the pipeline, its economy is also expected to drive growth in economic output.

The investment in residential properties in the region is expected to be `218.7 billion which is over 50 per

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the high per capita income in the region. Moreover the proposed site for

airport extension is impacting the prices in Zirakpur, Mohali and Greater Mohali, say local builders. In this micro market buyers have a high holding capacity due to which despite the current economic slowdown when transactions were impacted southwards prices did not correct. A significant presence of local builders is witnessed. “Plots in the region are selling at approximately `20,000-35,000 per square yard,” said a property

Price Index

Sector 81 13,500 to 15,000

Sector 82 20,000 to 23,000

Sector 83 12,000 to 15,000

Sector 85 38,000 to 40,000

Sector 86 24,000 to 29,000

Sector 87 20,000 to 24,000

Sector 88 20,000 to 22,000

Sector 89 22,000 to 25,500

Sector 90 40,000 to 44,500

Sector 91 40,000 to 47,000

Sector 95 25,000 to 28,000

Sector 96 25,000 to 28,000

Sector 97 24,000 to 26,000

Sector 98 26,000 to 28,500

Sector 99 26,000 to 27,000

Sector 100 24,000 to 28,000

Sector 66 & 66 A 45,000 to 49,000

Sector 67 48,000 to 60,000

Sector 68 55,000 to 62,000

Sector 69 55,000 to 60,000

Sector 70 & 71 55,000 to 63,000

Sector 72 to 73 30,000 to 34,000

Sector 74 to 75 36,000 to 42,000

Sector 76 54,000 to 55,000

Sector 77 57,000 to 58,000

Sector 78 54,000 to 55,500

Sector 79 54,000 to 56,000

Sector 80 53,000 to 55,000

dealer of Phase II. Based on the report of the Technical Group pent-up demand for housing will be 26,484 dwelling units to meet the current demand.

Demand for MIG and HIG is expected to surpass that of EWS and LIG by 2020 and however, demand for MIG and HIG units will constitute only 38 per cent of total housing demand. It is also revealed even at the end of the planning period (2056) only 14 per cent (32,537 DUs of a total of 2,35,330

dwelling units) can be met. Keep the present trend it is stated that the economy of GMR would grow to about four times in current size in 25 years, says Charanjit Singh, an expert in real estate but warned ‘go brown but keep agriculture in the PINK.

Greater Mohali area’s growth potential has kept the buyers, investors as well as developers in high spirits and keeping the hopes of realty players high with its mega projects which have given impetus to the real estate sector in the area. The two projects—Aerocity and Eco City—near the proposed international airport and in Mullanpur not only got an overwhelming response from buyers, but have also played a major role in setting up a buoyant price threshold in the nearby areas. Mullanpur and Kharar-Landran Road have emerged as the main hubs of real estate growth as country’s top developers like DLF, Omaxe, TDI, Ansals, Emaar, MGF, JLPL and others have residential and integrated township projects here.

strong economyThe Chandigarh Tricity has the third highest per capita income in the country with 68 per cent literacy level. Strong economy of the state, availability of highly skilled workforce, growing number of regional tourists and spillover from Chandigarh and Delhi has also been highlighted. According to a source, the total investment in the Greater Mohali area was around `40,000 crore in between 2007-2011.

Upcoming big projectsHaving best infrastructure, its proximity to the proposed International Airport, wide roads, Greater Mohali is the best investment option today. The upcoming 1,000-acre Aerocity project near Zirakpur-Patiala highway is bringing in a number of private realtors in the area. The Patiala road is coming up as a promising realty destination with a number of residential projects, educational institutions coming up here creating the robust demand for housing over the next few years. A private developer, Royal Estate Group, has launched one of the biggest private project, a 200-acre integrated township. The state government too is serious

Price Trend: Negative.Note: Prices are based on 20 marla / one kanal plots. Plots in smaller size are costlier by 6 to 10 per cent depending on the size of the plot. Prices in ~ per sq yd

Greater mohaliNorth India realty markets will continue to be vibrant with

tier-II cities such as Lucknow and Chandigarh doing reasonably well. The prices will rise steadily as there is an increased demand in the wake of greater investments

flowing into real estate instead of Equity, Gold and NRI markets. Luxury products are also sought after. Cities such as Ludhiana and Jalandhar hold a promising future. Not only is this the right time to grow vertically but also explore newer options such as Studio Serviced apartments and multi-purpose living space that is usable as a home, an office or a hotel suite, all in one.

The Government may like to give a thought to the lending rates so as to make home loans more affordable for the masses. At the same time, increased fuel prices has also had an impact on cost of construction over a period of time. This may be checked by exploring and creating new energy supply chains which help in reducing costs and thus benefit the economy as a whole. Review taxation, registration charges etc. While most of the developers do their best to ensure timely delivery, in some cases, the possession may be delayed owing to pending payments by customers which in turn affect the speed of construction. Also, the government and the judiciary need to protect the developer and the customer from non legitimate PILs that may bring construction activity to a halt, thus leading to loss of time and resource for both parties.

Ms Ananta Singh RaghuvanshiDirector-Marketing, DLF

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about providing world class amenities in the Greater Mohali region.

The New Chandigarh (Mullanpur-Chandigarh Greater) is on the other side of Greater Mohali, the first 6,000- hectares eco-town of Punjab has risen as a stable realty playground in the region, will have major projects like Medi City and PCA Stadium among others. Eco City project is receiving big response from Punjabis, who wish to live in the periphery of Chandigarh. The plots in the 400 acres Phase-I have already been allotted while the acquisition process is on for a 370-acre Phase II and will be launched shortly. The DLF launched independent floors at its 200 acres Hyde Park township where plots have already been sold. Omaxe is also constructing and developing its project in Mullanpur. Besides these, Group Housing Societies are also coming up with their residential projects.

Real estate in Mohali has been witnessing a northward push and certainly has good future prospects too as real estate projects like Westend, Sunny Enclave, Whistler Hieghts, Ansal Orchard County, Emaar-MGF and many others have already initiated. The Mohali been extended to Greater Mohali and the development on the Kharar-LandranChandigarh road is attracting both the developers and the buyers.

The rates of these vary from project to project with the option of both the flats and the residential land. The flats may vary from `1600/sq ft to `3000/sq ft whereas the plot rates in these projects range somewhere between 14,000/sq yards to 20,000/sq yards. Whereas as the open market rates in Mohali for a residential house in some of the old phases may be from `3000/sq ft to `5500/sq ft depending upon the location of the house as well as the type of construction i.e. whether old or new. The commercial booths may be somewhere between `20-40 lakhs and showrooms may be from `2-3.5 cr.

ZiraKpUr

Zirakpur, where a large number of housing societies have mushroomed

over the last few years, is coming up as one of the most densely-populated areas in the periphery. Real estate agents reveal that prices have gone up by 40 per cent since January 2010. The rise,

they say, is driven by the escalation in Chandigarh, Panchkula and Mohali. For people who want to move into their own flat soon, Zirakpur is emerging as the first choice.On the other hand, from an investment point of view.Most real estate agents and builders agree that with its fast, unplanned developed, Zirakpur faces infrastructural problems. With a budget of `30-50 lakh, those who want to own their own house fast know that Zirakpur is a good option.

Zirakpur comes under district Mohali and big residential and retail projects are coming up here in the last about 5 years because of its close proximity with Chandigarh. The projects like Bollywood Heights, Nirmal Chhaya, Sunrise Greens and many more have forayed into this region specially on Zirakpur-Panchkula Road and Zirakpur Rajpura Road.

Apart from the locational advantage Zirakpur is the only place which can offer huge space which is key to operationalise brands like Wal-Mart and Metro. “Factors like the availability of land parcel required for business-to-business model and well-defined clients have also made Zirakpur a preferred location.

Zirakpur also has a huge catchment area, and the commercial complexes set up here don’t cater to just the 2 lakh odd population here, but it caters to the entire population of tricity. “With International airport coming up in the vicinity and PR-7 connecting road to Himachal and Haryana also on the cards, Zirakpur is all set to acquire a cosmopolitan outlook. Infrastructure is there. There are hospitals, schools and recreational facilities all in place. So with the setting up of office and retail spaces, Zirakpur is truly promoting the concept of live, work and play in the same surroundings”, said a member of senior management team of Shipra World, which is coming up with a 1,100-acre township in the vicinity.

Another aspect which has helped Zirakpur in becoming a hot spot for commercial and retail settlements is that the land which is offered here is on a freehold basis, whereas in the other locations on the outskirts of tricity it is on a leasehold basis. “The store in Zirakpur is among the few properties built on land owned by the Metro, and

Locational advantage for Zirakpur has always been there. It is the entry point to Punjab,

Haryana, Himachal and Chandigarh. So having retail facility over here makes absolute business sense, since the footfall in terms of number of customers over here is pretty high.

Mr N K SharmaManaging Director N K Sharma Group of Zirakpur.

this was the single biggest contributing factor for setting up our first retail store of the region here”, the executive from Metro maintained.

Over the years Zirakpur has also become synonymous with affordable housing. So there is ample representation of the middle income group people here. “Zirakpur today has approximately 50,000 dwelling units. So massive retail space is required to fulfil their need and if the place to work ‘office-space’ is also close by then it is surely a double whammy.

BarWala

barwala adjoining Panchkula is favoured by those looking for low-

cost accommodation. An Investor says that a flat for `35 lakh was good enough for us after taking a housing loan. The infrastructure problems will get solved in some years, we hope.On account of the haphazard urbanisation in these belts, property consultants say resale value at Barwala is not very encouraging. Mullanpur. Mullanpur is emerging as the favoured destination in the periphery, since development here is more planned. Development at Mullanpur is more planned, and big names in the real estate sector have pushed up its appeal. In about three years, Mullanpur is likely to appreciate much.

peer mushalla:Peer Mushalla has benefited greatly from its proximity to Panchkula’s Sector 20. While three-bedroom flats in Sector 20 are now priced at `80-85 lakh, those in Peer Mushalla are available in the range of `50 lakh. Some housing societies on the Kharar Landran road are offering flats at a lower budget. For people who want to move out of rented accommodation and give EMIs

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instead, flats in the periphery are the best choices.

panCHKUla

The new and the next most profitable real estate destination for investors

is property market of Panchkula. The real estate market of Panchkula has witnessed unprecedented growth in the last few months. Located in Panchkula district, Haryana, this city was once a poor cousin of Chandigarh. The city has shown a meticulous potential and attitude for growth, which is why it has attracted the attention of many real estate enthusiasts. Panchkula is considered as hot favorite destinations for real estate investment. There are huge number of builder’s floors been set up in Panchkula. The exponential expansion of modern retail in Panchkula is apparently evident from the large presence of glitzy shopping mall developments, multi storeyed malls, and huge complexes offering shopping,

entertainment and food all under a single roof in Panchkula. It is also known as the hunting ground for Real Estate Company.

residential property of panchkulaPanchkula real estate market majorly comprises of residential developments in the form of bungalows, plots and flats. With rising demand and proximity to Chandigarh, there are ready buyers for the available lands. Investment in residential property of Panchkula brings along a lot of benefits in monetary terms. Its small houses have made a region to luxurious apartments and kothies, villages are growingly sprouting themselves to become suburban towns. Most village people have sold their field to individual buyers or local residential developers at skyrocketing prices.

Panchkula is a perfect place for setting up Call Centers and Manufacturing units and Offices. The

reason being: Convenient location, Excellent infrastructure, Manpower and Accessibility to airport. Most of the commercial places in Panchkula are high rise commercial towers with:Excellent façade, 100% back-up, Centralized security, Maintenance, Fire safety systems,Landscaped open areas and Plenty of space for Parking.

Panchkula is presently a prudent choice for Industries, BPO and multinationals companies to set up their offices. Panchkula has rambling vacant places and also easy accessibility to different sources required for manufacturing and outsourcing.

KalKa-pinJore

homebuyers and investors who had set their eyes on owning a

piece of property in the much-hyped Pinjore-Kalka Urban Complex area have heaved a sigh of relief as the stay on construction activities here was vacated recently.

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All construction activities had been stopped in the area after a stay had been ordered in a case that had questioned the legality of land acquisition there. The court order had made the investors jittery and many had feared that the area would go the Noida Extension way. But now the clouds of uncertainty looming over the picturesque urban complex area have cleared. With this the project site, which is along the NH-22, is back in the reckoning and the builders as well as buyers are in an upbeat mood. According to experts this may also serve as a shot in the arm for the slackening realty market in the area.

The Haryana Urban Development Authority’s (HUDA) ambitious urban complex project has not had a smooth run since its inception. HUDA was the first to announce its intention to develop the area as urban complex about five years ago. However, the project ran into rough weather with the Union Ministry of Environment and Forests raising objections. The project has remained largely unexploited due to legal and demographic reasons, in spite of vast options for the investors and end users to own a dream house in picturesque surroundings.

Big construction activitiesWith the decks cleared for construction activities, HUDA and several big realtors are all set to cash in on the demand of the people wanting to own a house in the urban complex. HUDA, in fact, is the biggest player in the area with the largest land bank and scope of acquiring more land. The layout plans for three sectors are in the final stages of approval by the Haryana Government following which HUDA’s residential and commercial urban complex would be opened to the public.

Private players like DLF and Ireo have mega integrated township projects planned in Sectors 2 and 3 of the urban complex. Though construction activities are yet to commence fully in Ireo group’s 200-acre Fiveriver” project that was launched in 2011, it will have premium apartments, villas and penthouses.

A purview of the upcoming projects reveals that there is something to suit every pocket here with options including freehold residential plots, group housing

Panchkula Sector Type Rate per sq yard

Sec 25, 20, 12, 8,9 Plot (250 sq yards) `1.75 cr to `2.50 crore

Sec 25,26,27, 28 Plot `1 cr to 1.35 Cr

Panchkula Residential Projects

Location Type Rate (Rs.)

Sec 20 Apartment `4500-5500 sq ft

Panchkula Kalka Highway

Plots `30,000 to `35,000 sq yards

DLF Plots `35,000 - `38,000 sq yards

Ireo Apartments `4000 - `4200 sq yds

Plot `30,000 - `35000 sq yards

Panchkula Commercial Project

Sec 5 `5000 to 6000 sq ft

Mani Majra (Panchkular) Near CPT

Apartments `12000 to `14000 sq ft

Greater Chandigarh, Mullanpur

Eco City Plot `20,000 sq yards

SCO -- `90 Lakh

DLF SCO -- `85,000

DLF Plots -- `25,000 to `35,000 sq yards

Omaxe -- `20,000 to `27,000 sq yards

panchkula residential plot rates

flats, low rise apartments, villas, commercial space etc. While prices are on a higher side in DLF and Ireo’s integrated projects, the emphasis in both the projects is on offering a complete package comprising residential, commercial and recreational facilities, including clubhouses, schools and hospitals etc to buyers from different parts of the region. While the DLF Valley, Panchkula, is situated on a flat terrain amidst scenic surroundings with river bed, hills and forests ensuring a tranquil and peaceful abode, Ireo’s villas promise a “neighbourhood feel”.

Though independent floors were the key focus in DLF Valley initially, the group is planning to launch new products in its project keeping in mind the changed market dynamics.

plus pointsThe strategic location on the Zirakpur-Shimla highway and the sylvan environs has been the major USP of the area for big realtors. The main plus points of the area are its proximity to Panchkula and

good road connectivity because of which more and more prospective buyers are now scouting the periphery areas for buying a house.

“It is being seen as one of the major residential markets in the area with Baddi — a hub of over 3,000 industries — just half an hour’s drive away. This coupled with the completion of the four-laning project of Zirakpur-Parawanoo highway and Pinjore bypass would ease traffic flow on the NH-22. As currently the area is not densely-populated, the low-rise group housing accommodation will attract the middle and lower middle class hoping to have a home in the region.

The current price range for plots in the area is between `32,000 and 40,000 per sq yd, while for apartments and independent floors it is between `3,500 and `5,000 per sq ft. With property prices being much less than those in Chandigarh and Panchkula and with good connectivity and planned development on the cards, investment here seems to be a good proposition.

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with the property prices across the district stablising, now only the

genuine customers are being wooed by the colonisers. While the prices per square yard in upscale areas like Mall Road, Green Avenue, Basant Avenue is in the range of `45,000 to `50,000 and between `35,000 and 45,000 in Ranjit Avenue, in areas on Fatehgarh Churian Road these are between `10,000 to `12,000. The current rate of land in approved colonies on GT Road is between `9,000 and `14,000 per sq yd and in Loharka Road it is between `10,000 and `2,500.

The buyer, however, is moving cautiously as just a handful of PUDA-approved colonies, including SG Enclave, SG Heights, Dream City, Impact Gardens, Oasis Green Acres, Holy City, Splendor May Fair and Vrindaban are there to attract the customers in view of their customised facilities. This has given them an edge over partially approved colonies in the city.

People from different economic strata have shown keen interest to settle down

AMRITSARThe first half of 2013 has seen the realty sector in the holy city of Amritsar in the ‘cooling off’ phase. The property prices in the city, which is the main pilgrimage centre of Sikhs, have not shown much movement over the past one year, largely reflecting the “slow” trend being witnessed elsewhere in the state.

Residential ProjectsS G Enclave, NH-1 •Global City, NH-1 •Dream City•Ansal City •Alpha International City NH1•Mayfair County, Airport Road•Blessing City, Airport Road•Amritsar, NH-1 •SARE homes, Amritsar •

Preference for a better lifestyle (Property)

Shahid Udham Singh Nagar

`9000 to 12000

Ambuja Dream City `11000 to 13000

White Avenue `28000 to 35000

Ajnala Road `12000 to 14000

Basant Avenue `32000 to 45000

Kennedy Avenue `36,000 to 48000

Model Town `20,000 to 23000

The transformation of present residential properties located in

the heart of the city into commercial complexes is catching a trend these days. Even the flat culture is mushrooming in the city as the industrial town attracts a large number of youth for jobs and is termed as the University of Entrepreneurship by the renowned industrialists of the city.

Many of the business houses are establishing their corporate offices in the city as they are ready to explore the growth potential in the markets in the industrial hub. The new destinations for the real estate residential projects in Ludhiana are Ferozpur road, Dugri, South city, Pakhowal Road, Chandigarh road, Hambran road, Jalandhar bye pass and the periphery areas like Mullanpur,

LUDHIANA

This segment of buyers has added a new dimension and the colonisers hope that this clientele will help sustain their growth in the coming years.

market driversThe realty sector in Amritsar has always got a boost from the large number of NRI. Punjabis and Sikhs settled in other parts of the country. Over 50,000 people across the country are visiting Amritsar daily to pay their obeisance at Harmandir Sahib and the number is much more during week-ends and festival season.

A majority of products in residential market are designed as per their needs as developers go all out to woo them. So right from serviced studio apartments apartments to independent floors, villas and extendable villas are on offer for this target segment. The fall in the rupee value has also raised the hopes of builders that more NRIs would be interested in buying property in the city.

Ludhiana is witnessing a transforming change in the realty sector as the city is progressing at a rapid pace. The prices in the periphery of the city have come to match the prices of the residential and commercial places in the posh areas as new localities like New Sarabha Nagar, extensions of the posh localities are coming up in various parts of the city.

Sanhewal, Gill, Pakhowal village and other periphery areas as the builders are comings up with flats, plots, viilas and farm houses in the city.

Real Estate in Ludhiana is progressing at a rapid pace. Ludhiana has attracted huge number of real estate investors because of its flourishing economy. The city is the cultural capital of Punjab popular for its hosiery and sports goods industries. This industrial town of Punjab is the most populated city of the state.

The Feroze Gandhi Market is located to the west of Ludhiana, which has become the first choice for business centres. In this area the retail sector is on the ground floor and the floors above are used for office purposes. One of the recent trends in the real estate of Ludhiana is the transformation of present

in new developed colonies with proper infrastructure. This has led to a gradual increase in the number of people from the congested area within the walled city, who are buying plots and flats in these colonies on the city periphery. “This is a very positive sign for the realty scene in the city”, says Micheal Uppal, a city-based broker. A significant number of cash-rich farmers from the rural and border belt are also moving into these newly developed colonies.

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residential properties located in the heart of the city into commercial complexes.

Pakhowal Road complexes are case in point where a number of office-cum-retail project are coming up. Presently, in the real estate market in Ludhiana there’s no distinction between office and retail space. Both retail and office space are mostly for sale rather than on lease. The price of the commercial properties of Feroze Gandhi market range from `4,000 to `5,000 square feet, Jalandhar

Road properties is `3,500 per square feet. The real estate in Ludhiana has also flourished in the residential sector. The real estate in Ludhiana has also flourished in the residential sector.

Sarabha Nagar located at the west of the city has many lavish residential projects. The other alternatives in the residential locations are Gurdev Nagar, BRS Nagar, Kitchlu Nagar, Civil Lines and Club Road. Some of the famous developers like Aerens and Omaxe have made mega projects in the city. Project of Festival City and Omaxe developed a 2 million square feet.

In the residential sector, some of the prime locations of Ludhiana are Sarabha Nagar, Civil Lines and Gurdev Nagar with the capital value of `2,200 to `3,300 per square feet. While in other areas the price ranges from `1,500 to `2,000 per square feet. The other alternatives in the residential locations are Gurdev Nagar, BRS Nagar, Kitchlu Nagar, Civil Lines and Club Road.

Some of the famous developers like Aerens and Omaxe have made mega projects in the city. Aerens has built 500,000 square feet. Ludhiana is emerging as a new real estate destination; the city will soon be a home to India’s biggest IT parks and would be counted among the cosmopolitan cities. Residential and retail sector is

also rolling and the capital and rental values of the city are increasing. The city is also projected to cater SEZ projects in the year 2008-09 where many multinational companies will start full-fledged operations from Ludhiana.

This has attracted many industries from IT, ITes and PBO sector that are now pouring investments into the city to establish their presence. All this will really buzz prevailing residential and commercial real estate values. The real estate in Ludhiana has

Area Apartment/Flat Plot Individual

House

Sector 32A -- 1100-1400 1550 – 2150

Aggar Nagar -- 2300-3150 --

Aman Park -- 500-600 --

BRS Nagar -- -- 1600-2100

Bhai R S Nagar -- -- 2500-3350

Chandigarh Road -- 1250-1700 1450-1900

Dugri 2300-3100 -- 1100-1450

Friends Colony -- 500-680 --

Gurdev Nagar -- -- 1300-1800

Mahavir Enclave -- 650-850 --

Kitchlu Nagar -- 2300-3100 2900-3800

Model Town 2500-3100 -- 5600-7500

Pakhwal Road 1700-2300 -- 3000-4000

Sant Ishwar Nagar 1700-2300 -- 3100-4100

Sarabha Nagar 2300-3100 1700-2300 --

Vishal Nagar 2300-3100 -- --

also flourished in the residential sector. Sarabha Nagar located at the west of the city has many lavish residential projects square feet.

The new destinations for the real estate commercial projects in Ludhiana are Mall Road, Ghumar Mandi, Feroze Gandhi Market, Link Road, Sarabha Nagar Market and Ferozepur Road instead of Chaura Bazaar. The vibrancy of the market could be measured by the fact that Bollywood celebrities are also showing interest to expand their business in hospitality sector in Ludhiana.

The new destinations for the real estate commercial projects in Ludhiana are Mall Road, Ghumar Mandi, Feroze Gandhi Market, Link road, Sarabha Nagar Market and Ferozepur Road, Jalandhar Bye Pass instead of Chaura Bazaar. Both the retail and commercial spaces are mostly for sale rather than on lease.

The price of the commercial properties of Feroze Gandhi market range from `3,500 to `4,500 per square feet Jalandhar Road properties are worth around `3,200 per square feet. The real estate market in Ludhiana has also flourished in the residential sector. High-end plotted developments in Sarabha Nagar, Civil Lines and Gurdev Nagar have emerged as prime locations, where rates range between `2,200 to `3,300 per square feet. Model Town Extension, Rajguru Nagar, Maya Nagar and Green Park are invoking interest from the developers and the property rates here range from `1,660 to `2,200 per square feet.

The city, which was known for textile and cycle industry, has seen big money pouring in with realty bigwigs like DLF, AerenR, IREO and Omaxe setting up residential as well as commercial properties in the city. Then there are local players eyeing a pie in the growing real estate market. The three hotels including MBD Radisson, Piccadilly and Oberoi and big names like JW Marriot and Taj are all set to have their property in the city.

Apart from this, more than 25 residential complexes by the local and the big players and 15 new malls are set to take the prices of the property to more than double or triple over the next three years. Vipul’s residential project is offering apartments on 250 square yards of area and can be bought for `45 to `60 lakh.

The major impact on the realty market is the conspicuous absence of

NRI money in Doaba property market. The large numbers of cash-rich NRIs of the region have always fuelled the growth of the realty sector here.

It is for the first time in the past several decades that hardly any NRI investor is around in the market. Global economic recession that has gripped North America, Europe and other countries has forced NRIs to stick to foreign shores. They are so hard-pressed over there that it is difficult to spare money for investment in India, particularly in Punjab. This has surely filled the real-estate scene with chill.

Mr Himanshu PantHead Marketing Silverglade Group, Ludhiana.

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with Punjab ranking the highest in the National Well Being

Index 2013 [Source: Tata Strategic Management Group Report 2013], there has been support provided by the State and Central Government in terms of Energy, Water and Connectivity by road, rail and air.

Jalandhar once used to be a preferred place for investment in the real estate sector but currently passing through a bad phase and the sale-purchase activities of residential and commercial are on the decline. The demand-supply scales are highly lopsided in Jalandhar as a large number of townships have already come up in the city. Presently

No NRI

money flow in Punjab this

time.

People feel the hike

in Collector Rates of lands will only

make it difficult for them to own a

home.

Only queries,

almost no buyers in Doaba

region.

Experts see a

silver-lining as investors will

eventually come for

the availability of the space in Jalandhar is much high than the demand and finding buyers/investors is certainly an uphill task. For the last sometime, the real estate market is passing through a rough phase. Secondly, the arbitrary ban on the Power of Attorney has also taken a toll on the realty sector in the city.

At present the land rates of the residential properties in the main posh areas in Jalandhar city are quite high. While the price of land in Model Town is between `38,000 and `42,000 per sq yd, the land prices in Defence Colony, New Janta Nagar, Lajpat Nagar, Udham Singh Nagar are about `33000-Rs 35000 per sq yd. As far as commercial properties are concerned, there is huge variation depending on the site location.

FACT SHEET

*Price Index DHURI in per sq yard

AP Enclave `18,000 to `18,500

Green City `7,800 to `8,500

Malerkotla Road `7,000 to `7,600

Old City Area `20,000 to `23,000

Preet Nagar `10,000 to `11,000

Tulsi Nagar `16,000 to `17,000

*The prices are indicative only and may vary as per the plots size, approach road, location etc.

The property market of Jalandhar and Doaba has been witnessing a complete standstill for the past three years. Let’s have a look at the reasons that have lead to this state.

nris missing “Not only in Jalandhar, has property scene in Ludhiana also been stagnating for a couple of months,” added Mr Pant.

The NRIs and big builders from Delhi region had sent their people to sniff the Punjab market before elections. They had surveyed the market for launching of new housing and commercial projects but, their plans turned into smoke due to lack of interest from medium and small buyers and investors.

Collector rates caresAdding to the worries of industry insiders is the proposed hike of around 20 per cent in Collector Rate for registration of land. They fear that this move would only contribute to the decline in business. In some areas, the Collector Rates are even higher than the market prices. For example, in Model Town in Jalandhar one can buy a plot for between `7 and 20 lakh a marla but the Collector Rate remains the same irrespective of the actual price, so as a result a person paying `20 lakh pays the same as a person paying `7 lakh.

Jalandhar

while infrastructure and development projects are

considered beneficial for the health of the realty sector in any area as they lead to price appreciation of residential as well as commercial properties and high rental returns, Bathinda is witnessing a reverse trend at present. The residential rentals in Bathinda city, areas of Raman Mandi, Talwandi Sabo and Dabwali have nosedived post the commissioning of the refinery. House rents in these areas have gone down

BathindaThe realty scene in Bathinda has been on a roller-coaster ride, thanks to the Guru Gobind Singh Refinery project. While it was the launch of this ambitious project that fuelled a boom in the property market four years ago, now it is the completion of the project that has sent the realty wagon hurtling down giving nightmares to all the stakeholders.

The City of Jalandhar, renowned for its sports goods industry, is not far behind. It has indeed taken a lead when it comes to Retail Real Estate with Viva Collage, Ansal Plaza and MGF Metropolitan to name a few. The DLF Galleria Mall at Nakodar Road offers Retail as well as commercial pace right at the heart of the city.

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by more than 30 to 35 per cent over the past six months. Earlier, a 2 BHK rented accommodation on second floor in Bathinda city would fetch `10, 000. But with the refinery employees shifting to their newly constructed colony within the commercial establishment’s campus at Raman and many others leaving after the completion of the project, no one is ready to pay such a high rent.

In 2008, when refinery’s construction was in full swing, a huge army of workers and their families migrated to Bathinda. There were at least 120 big and small contractors working for on the project with almost 32,000 employees, who needed space to stay in Bathinda. Employees of several big contractors like Larsen and Toubro lived in rented accommodations as the colony in refinery was meant only

for the HMEL (HPCL-Mittal Energy Limited) employees. Rentals in the area zoomed as these executives could afford to pay high rent. Most of them preferred areas like Model Town I, Model town II, Model Town III, Guru Teg Bahadur Nagar, Bhagu road, Patel Nagar, Kamla Nehru Colony, Panchvati Nagar, Green Avenue, Veer Colony and others and house owners were paid the desired amount as rent. As most of these ‘imported’ employees preferred planned areas of Model Town I, II and III, even the property rates in these localities soared to `30,000 to `35,000 per sq yd.

Riding high on the refinery-propelled economy, many people took loans from the banks and added more floors to their houses in order to cash in on the need for accommodation here. “More floors mean more space to cater to the massive

demand for rental accommodation. In many cases, locals even sold their ancestral land and valuables to add more storeys to their houses and rent them out”, reminisces Surinder Singh, a resident of Model Town Phase I, who refused to flow with the tide and never gave his property on rent.

Bathinda witnessed a boom in the property sector and an influx of new private colonies that offered planned housing solutions in between 2007-12. These colonies included Sheesh Mahal, Ansal Mittal Sushant City I near village Jassi Pau Wali and Sushant City II near village Kotshamir, Pearls Colony, HBN Colony and Ganpati Enclave. While these colonies are doing fairly well there are no new private projects lined up at present so the realty market is dull and stagnant at present.

The prices of properties, both commercial and residential, in the

royal city have witnessed a slow upward trend as end users are giving up their wait-andwatch policy and are checking out properties in and around the city. According to market watchers, the prices in the city have remained stagnant for a long time and are not likely to fall any further and this fact is making genuine buyers come out of their cautious cocoon and finalise deals. Property consultants operating in the city are also hopeful that this renewed buyer interest will give a boost to the market overall.

Though the city never witnessed an unusual property boom like Mohali, Ludhiana or Amritsar, recession did affect property business considerably as investors virtually vanished from the realty scene in the wake of global recession. But now the property sector seems to have heaved a sigh of relief. “We are now able to sell some properties which were being held for the past few months”, echoed property dealers.

Property fortunes in Patiala have remained stunted due to a number offactors. Firstly its proximity to areas

PATIALAThe realty market in Patiala is still recovering from the slowdown that has crippled the sector in almost all major towns in the state over the past two years. However, the situation is likely to improve with investments trickling in slowly now.

like Mohali and Chandigarh has been a great impediment as investors are always partial towards these “happening” cities that promise much better returns. “Someone investing in Patiala will have to wait for a couple of years to get decent returns, while anyone investing in Mohali will expect better returns in a year’s time. The only difference is that the investment in Mohali is bigger as compared to Patiala.

Secondly, lack of job generating industry is also a dampener for property prices. “Unlike Ludhiana, there is no industry in Patiala and hence investment in the commercial sector was never much and with the recent slump in the market even the residential property is difficult to sell and only end users are approaching us”, said Palwinder Singh of PS property consultants.

The recent steep hike in the rates of construction material has also added to the woes of buyers and developers as some big-ticket projects on the outsirts of the city have been hit badly due to these factors. Prices in residential colonies in posh areas vary from `15,000 to `40,000 per sq yd. The

mushrooming of illegal constructions and colonies has also not helped the cause, with prices in many parts remaining stagnant.

The prices of commercial property have increased slightly in some areas. These generally range between `20,000 per sq yd and `2 lakh per sq yd. Though on the whole, the rates have not come down in any part of the city, they are stagnant and those who had invested in property in order to make profit are now feeling the heat. Majority of those dealing in the real estate business said the property business in the city is likely to be back on track in the next few months as they are receiving demand for residential plots and houses, especially after the Parliamentary elections. “A stable government at the Centre will mean more funds for states and we are hoping things would improve in towns like Patiala.

skill shortageThe rising cost of cement, bricks and steel and other input materials has taken a toll on the performance of the real estate and construction sector. The

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cost of these materials has escalated by over 30 per cent in the past two years. Inflationary pressures and high interest rates, coupled with a severe shortage of skilled manpower have resulted in execution challenges with project delays becoming common place. However, lone of the most ardous hurdles for the real estate and construction sector is the human resource challenge. The sector has a shortage of quality talen which stems from the absence of specialized real estate education. This has lead to the absence of much-needed fresh skilled manpower in the sector.

The towns and cities of Himachal Pradesh such as Baddi, Solan, Kullu, Manali, and Shimla witnessed a rising trend in the prices in 2013. There has been about 20-25 per cent rise in the prices and around 15 per cent increase in rentals of independent floors or apartments in the region. Currently, the main attention of the real estate developers has been on the budget housing in North India. Still, one can expect a further price rise of minimum 12 to 15 per cent for the residential properties in 2013

himachal Pradesh is also one of the favourite destinations of NRIs looking for investment or owning a home in their

home country, India. As the serene and pleasant environment of the hills provide a much sought after destination especially in summers, the beauty of the place is another reason for staying in Himachal Pradesh.There are wide places to choose from,starting from lower hills like Baddi to upper hills like Solan, Kandaghat, Mashobra, Chahal etc. The rates on the hills are also at lower side as compared to the cities on the planes. A 2 BR flat away from mall in Shimal is available from 10-15 lacs.

A large number of high-rise constructions — commercial as well as residential — along the NH-22 and various other roads in the Solan district

give an impression of a booming realty scene and a strong economy in the area. But the reality is just the opposite.

Even though a large number of residential and commercial projects have come up here, these have not led to a corresponding increase in the value of properties. The property market has remained dull by and large as investors are wary of parking their money in the hill state because of confusion over the apartment Act. Along with this the ecological impact factor also plays an important role in the rise of prices here. On an average 25 to 30 per cent decline has been witnessed in the real estate markets in the area in the past few years

A 2BHK flat in Shimla, Kasauli and Solan towns is now selling for approx Rs 25 lakh. A 3-BHK is available for Rs 35 lakh to Rs 45 lakh and a cottage costs

anywhere between Rs 60 lakh and Rs 80 lakh, the Shimla realtors said.

The Himachal Pradesh Apartment and Property Regulation Act of 2005 enables builders and developers to build and sell flats and cottages in the state. There are over 60 big and small builders and developers in the state which include DLF, JLPL, Omaxe Constructions, Optima Amarnath Aggarwal Builders, Surya Builders etc.

As the investors and buyers have preferred to wait and watch in the first quarter of 2013 it is the developers who have become more proactive in the past one month by aggressively marketing ktheir products, launching new projects and even by offering price discounts and easy payment schemes to kick start the sales, especially in the tourist destinations in the state.

Property peek

Tripuri 8, 000 to 26,000

Model Town 20,000 to 40,000

Punjabi Bagh 35,000 to 50,000

Urban Estate 30,000 onwards

Majithia Enclave 18,000 onwards

Bhadson Road 16,000 onwards

HIMACHAL PRADESH

At present, the built environment which includes real estate, construction and infrastructure, employs approximately 50 million people. Of these only 2 million are professionally qualified, while the remaining chunk of work force comprises unskilled and semi-skilled workers. Over the years, the growth of unskilled construction labourers has risen significantly from approximately 10.67 million in 1995 to 25.60 million by 2005, depicting a CAGR of 9.15 per cent.

As of 2010 the cumulative demand for such professionals was 4.38 million with a supply of merely 569,000, translating to a shortage of approximately 87 per cent. By 2015 this demand-supply gap is expected to reduce but only marginally to 85 per cent, with the demand pegged at 4.73 million and the supply accounting for 7,25,000 professionals.

Bank loansApart from unavailability of land,

inadequate financing options are the main reason for the shortage of fresh supply of houses in the country, which in turn, is also responsible for high property prices.

At the same time, real estate is amongst the largest mainstream asset classes for investment, the report said. But there is no instrument available in the country to participate in the real estate investment by the common man.

In the NCR, real estate has given a return of over 25% compounded annually in the last 20 years. But, the average middle class cannot participate in this class of investment because of its large ticket size.

In the last two years, the growth in banks credit exposure to the real estate industry has come down from 19.08% in November 2010 to 5.29% in November 2012.In contrast, credit growth for housing loans has marginally increased to 13.25% in November 2012, from 12.21% in November 2010.

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Himachal might have drawn scores of realtors after enactment of the HP Apartment Act but the unplanned, unscientific and reckless constructions undertaken by the builders are not only putting pressure on the scarce natural resources but are also affecting the prices of property here, said a local property dealer.

Though the scenic environs lure buyers from plains to have a second home in the hills, the lack of basic facilities like water, power and roads are making them think twice before investing here and as a result very few transactions have taken place in the past year or so.

Interestingly, the number of unoccupied houses in the district has increased from 15.3 per cent in 2001 to 22.3 per cent in 2011 as maximum permissions to outsiders to buy land under Section 118 were granted in Solan in the last couple of years. This clearly indicates that outsiders are not staying in majority of these houses.

need for proper policyThe state government has been contemplating to do away with the controversial Himachal Pradesh Apartment and Property Regulation Act, 2005, by integrating it with the Town and Country Planning (TCP) Act as it had failed to regulate commercial constructions.

Maximum permissions to the outsiders to buy land in the state were given after the enactment of this Act. There is a blind race to possess a summer cottage or a flat here by the outsiders merely as an additional asset and in the process reckless flattening of fragile hill slopes is causing irreparable damage to the ecology.

Since the area falls under the extremely sensitive high intensity seismic zone IV and V it is extremely vulnerable from the point of view of earthquake thus necessitating the need for undertaking preventive measures while undertaking construction. Though the Town and Country Planning Department has restricted the number of storeys to three while permitting an additional one for parking, its violation is evident all along the highway and various roads like Khil-Ka-Mor, Kumarhatti-Nahan, Dharampur-Kasauli,

Kasauli-Jagjitnagar, etc.,The builders have taken advantage

of the policy of regularising illegal constructions which had been rolled out by successive governments in the state to indulge in this practice. Strict regulation of norms and denying fresh permissions can help save further damage to the hills.

Water & electricity scarcityThere is no natural source of water which can cater to the burgeoning population in the area. Water is supplied on alternate days to the local population lin places like Kasauli, Dharampur, Garkhal, etc and power availability is at its worst during the winters when the the power supply in the state is forced to impose power cuts for two hours every day. Though the state government had enacted the HP Groundwater (Regulation and control of Development and Management) Act, 2005 to regulate the use of groundwater its adherence was limited.

The builders have to furnish an affidavit stating that they would not demand water while being given permission to buy land, but they could seek permission to draw groundwater later.

residential projects in Himachal pradeshExplore the most picturesque panorama of residential property in Himachal Pradesh, the state known for its delicious apples, White Mountains and rich cultural heritage. The old age heritage of wooden house has now been transformed into modern day villas and bungalows, which have fascinated many investors from other states and NRI to invest

COMMERCIAL PROPERTY RATES (APPROXIMATELY)

Kasauli `2.5 to 3.0 lakh per biswa

NH-22 `3 to 4 lakh per biswa

Dharampur-Kumharhatti

`2 to 2.5 lakh per biswa

Nahan Town `10,000- 15,000 per sq m

Kala Amb `8 lakh to `15 lakh per bigha

Rampur Jattan `lakh per bigha

Suketi `3 lakh to 4 lakh per bigha

Paonta Sahib `1.5 lakh to 3 lakh per biswa

Moginand `10 lakh to 15 lakh per bigha

Sainwala `10 lakh to 15 lakh per bigha

in Himachal Pradesh real estate. The continuous growth of real estate in Himachal Pradesh is mainly credited to HP housing and Urban Development Authority.

Buying new Himachal property in the green and calm surroundings of this extravagantly beautiful state is proved to be the most beneficial deal. Himachal Pradesh is experiencing an extensive development of modern day like malls, apartments, multiplexes and many entertainment hubs etc. Which are giving a new height to its residential real estate.

Valleys like Kangra, Dharamsala, Manali, Dalhousie and Solan are recognized not only for their calm & cool atmosphere and attractiveness but also for the newly developed residential properties in Himachal Pradesh. According to real estate advisors, this is the perfect time to invest in Himachal upcoming projects, as the rates of Himachal property will take a sharp jump once the work of major connecting highways is done.

The Developers, Tata Housing is coming up with Eco Luxury Villas in Kasauli (possession in 2016), DLF its Samavana in Kasauli (2014) and Samantara in Shimla (2014). The Kangra, Kannour, Kullu, Mandi, Sirmour, Solan, Una, Baddi, Kasauli, Shimla, Bilaspur, Chamba, Hamirpur are the hot destination in the state where new projects are being launched by the developers.

There is a slump even in Shimla, Kasauli, Dharamsala and Palampur towns, that were once the preferred destinations for investors. Some proposed projects have been put on hold while some investors are desperate to sell and recover their money, the market expert said. A Bill is expected to be put in the monsoon session of the State assembly to do away with the existing Act and by incorporating it with the Town and Country Planning Act. Regulating construction by realtors may rest on the Himachal Pradesh Urban Development Authority (HIMUDA).

opening doors for outsidersThe Himachal Pradesh government is opening the doors for outsiders (non-Himachalis) to buy property in the state

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At present, Kasauli has seen the elite, high-

middle class, retired people and many other categories

of investors, who are looking for some land area to construct summer homes in this region. Owing to the pleasant weather and healthy ambience of the place, many people are also inquiring about properties in places like Dagshai, Sanawar, Dharampur and so on. Major traffic bottlenecks at Pinjore, Kalka and Parwanoo are likely to improve with four-laning and the construction of the Pinjore-Parwanoo bypass on Zirakpur-Solan stretch of the National Highway (NH) 22. The returns on realty investment can be high if the property has a scenic view, good roads or connectivity, parking space and easy availability of drinking water.

The Kasauli area is the most sought-after, and so the property prices are comparatively higher here. Prices increase as one gets closer to Kasauli town, which itself is a Cantonment area. The prices on the Garkhal- Jagjitnagar Road are around `70 lakh per bigha. On the Dharampur-Kasauli Road a bigha is priced at around `70 lakh and on Jangeshu-Parwanoo Road, the price is around `30 lakh to `35 lakh per bigha. On Kimmughat- Chakki-Ka-Mor Road, thje prices range between Rs 40 lakh to `50 lakh per bigha. The cost is lesser as one moves more into the outskirts and higher in the market area,” said Bhanu Singh, a local property consultant. Manoj Sharma, a Parwanoo based property dealer said: “We have a lot of visitors who are interested in buying land inthis area.In some of the most scenic areas, the price for one bigha of land can even reach

`1 crore. In other areas such as Nahan Road, prices are around 10 to 20 per cent lower than those in Kasauli area. The Kasauli area promises the best returns among different locations in the district.

In Kasauli area, well-constructed independent cottages are available in the price range of `50 lakh to 1.50 crore, depending upon size, location and road connectivity 2,500 square feet independent cottages are available for around `80 lakh to `1.50 crore, while smaller cottages are available in the range of Rs 40 lakh to `75 lakh. Prices of built-up cottages on the Nahan road near Kumarhatti are 5 to 10 per cent and those in other areas are around 10-20 per cent lower than those in the Kasauli area.

DLF has come up with a 58 acre residential project in Kasauli. called Samavana offering ultramodern, luxury villas and apartments, nestled in the unique colonial ambience of Kasauli. Positioned as elite homes for the elite people, the project is destined to become one of the most sought after residential destinations in north India. The villas and apartments will be developed to blend in with the natural environment which is accented by a plethora of beautiful pine trees thus creating a perfect retreat and making it an ideal location for luxurious holiday homes.

The demand in Solan is sluggish and prices are stable at present. Neither the end-user nor the investor has boosted sales in the area. The investor does not see a quick revival in the local realty market, and has adopted a wait and watch policy. There is some movement in the market, and the sentiment is also turning positive but the expectations of a surge in demand from investors and end-users are not so high.

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scrapping Section 118 of the Tenancy and Land Reforms Act, 1972 which barred purchase of property by people who are not state domiciles. The non-Himachalis are now free to construct houses on plots of land measuring up to 500 metres directly. The plot above 500 metres, the applicants have to convince the government that they indeed have compelling reasons for settling down in the state. The Himachal Pradesh Apartment and P:roperty Regulation Act 2005 permits non-Himachalis to buy plot of land or apartment from a licensed builder without seeking any approvals from the government. About three years back, Himachal Pradesh Urban Development Authority (HIMUDA)HP Apartment and Property Regulation Act has been specially promulgated to encourage participation of private builders for ensuring planned housing development in the state. On one hand, while builders/developers are being issued licenses to build housing infrastructure, individuals’ non-resident property buyers through a special cabinet decision have been exempted from seeking lany government approvals.

Presently, Himachal has a new potential market and are drawing up various plans. Particularly, the bustling industrial townships of Baddi, Barotiwala and Nalagarh in Shivalik foothills close to Chandigarh have attracted developers in a big way because of severe good housing shortage. A large number of builders like Hillview Infrastructure, Shakun Infrastructure, Amarnath Group, Mountview Group have started building apartments besides Omaxe building Park Woods apartment in Baddi.

sirmaurDespite its proximity to Uttrakhand and Haryana and housing the crucial industrial corridor of Kala Amb and Paonta Sahib, no much real estate activities are report anywhere in and around Sirmaur and Nahan districts where one or two projects witnessed. Nahan as such is the centre of administrative offices and apart from the public sector-owned Resin and urpentine Factory, little industrial or commercial activity has been witnessed here. Acute shortage of serviced land, presence of forest areas and steep sites has acted as

a deterrent for undertaking commercial activities. With most of the land suitable for development either belonging to the royal families or the Municipal committee and the army, only minimal linear growth along the main road has been witnessed. Nahan and Sirmaur towns have around 700 large and medium and small scale enterprises and Paonta Sahib and Kala Amb have the largest industrial activities.

Kala Amb, which is 12 km from the district headquarter of Nahan is yet to witness any realty activities though some hotels have developed on NH-71 but developers failed to set foot here. The Himachal Pradesh Housing and Urban Development Authority (HIMUDA) have, however, made a beginning to develop planned housing colonies after acquiring land at several places in the area to make flats and plots available to homebuyers.

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with the current economic scenario, the residential market

is witnessing subdued demand that has in turn lead to a slowdown in the new project launches along with delays in project deliveries. High borrowing costs, rising input prices, slowdown in transaction activity and inventory pile up has resulted in cautious approach by both buyers and developers.

Government initiatives have played and are likely to have a major role in the growth of the real estate sector. The recent Budget for 2013-2014 focused on affordable housing with the announcement of additional housing loan interest deduction, increased allocation for rural housing loans and introduction of funds for urban housing. Moreover, Tax Deducted at Source (TDS) on sales transactions was introduced along with reduction in service tax abatement for housing in the non-affordable segment. On the other hand, certain concerns still need to be addressed such as Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) taxation on SEZs, recognition as an industry/infrastructure sector, reducing the input costs, speedy approvals and need for encouraging more investments in real estate. Though still to be made an Act, the recent approval by the Union Cabinet for the Real Estate Regulatory Bill is welcome news as it is expected to bring forth higher levels of transparency and accountability from the developer community thereby boosting buyer confidence. Also, The Reserve Bank of India is expected to lower interest rates in the coming months, which would further boost the sentiments of developers and buyers. Overall, improved infrastructure and government initiatives for comprehensive rural and urban development in the next few years will have a positive impact on the real estate sector.

Given the current momentum in the NCR real estate market, the residential sector is likely to witness stable demand

Mr Sanjay DuttExecutive Managing Director Cushman & Wakefield South Asia

and supply dynamics in the short term. Prices are likely to remain stable across most micro markets with marginal price appreciation expected in select locations of Gurgaon and Noida. Given the recent hike in the circle rates in Delhi, demand is likely to remain stagnant in the coming few months due to cautious buyer and seller sentiments. In the commercial market, moderate demand and leasing activity is expected in the next few months with steady supply likely to enter the market. Occupiers are likely to remain cautious with their expansion plans and new space take-up. Steady demand is likely to be witnessed in the retail market from both domestic and international retailers.

Chandigarh: Chandigarh has seen growth of sectors such as manufacturing, IT/ITeS, banking and financial services industry, etc. resulting in increased employment opportunities. This is evident with the upcoming commercial and retail developments in the region. Moreover, locations such as Mullanpur, Dera Bassi and Zirakhpur have witnessed robust upcoming supply of residential units. Connectivity to the markets of north India and relatively lower real estate costs compared to Gurgaon and Noida are anticipated to provide the required impetus for development of the city. The proposed metro rail is expected to improve connectivity to the suburban locations and increase real estate activity.

Dehradun: Dehradun, the capital of Uttaranchal, has witnessed rapid industrial and IT development over the last few years, which has led to robust real estate activity with growing demand for residential and commercial real estate. Its proximity to Delhi and other important northern cities, good infrastructure like power and water, and relatively lower real estate costs are driving the demand for real estate. The State Government is taking initiatives for promoting the IT/ITeS industry in the region. For example, The Industrial Development Corporation of Uttaranchal is setting up a software park on more than 60 acres of land at Dehradun. Other demand drivers include good climate, low crime rate and presence of prominent educational institutes. There is robust upcoming residential supply,

especially catering to HNI’s and NRIs looking for holiday homes. Dehradun is still an emerging market and would establish itself as an attractive real estate destination over the next few years.

Himachal Pradesh: With the large scale industrialization in the state, the real estate boom happened in Himachal Pradesh over the last few years. Demand for commercial and residential properties has seen a rise with the growth of the large industries such as pharmaceutical and packaging to name a few. Developers are coming up with residential properties such as holiday homes/second homes along with group housing projects by prominent developers such as Omaxe as well. The Himachal Pradesh government is exploring the possibility of inviting Foreign Direct Investment (FDI) in the housing sector as the demand for housing has gone up in the state. For the same, the government is looking at set up five satellite towns in the Hamirpur, Shimla, Solan, Una and Mandi districts. Besides housing, the state government is looking at introducing multi-brand retail trading in Himachal Pradesh. Overall, with the government initiatives along with increasing developer and buyer interest, a real estate boom is likely to be witnessed in the state in the medium term.

Real estate activity continues to gain momentum in all major cities of the country. NCR in the north continues to attract buyers and investors with promising returns on investment. The saturation in metro cities along with high price points has resulted in the shift of real estate activity and demand to the Tier II & III cities.

Tier II and III cities offer investment avenues for individual investors with lower risk appetite constrained by the investment/ticket size. In north India, besides NCR, Tier II and III cities such as Greater Noida, Chandigarh, Jaipur, Lucknow, Ludhiana, Bhiwadi, Himachal Pradesh, Dehradun, Panipat, Sonepat and Neemrana to name a few are emerging as attractive real estate destinations witnessing robust growth in real estate activity over the past few years. The demand drivers for these cities include low land cost, land availability, increasing high income population and infrastructural developments.

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JAMMUwhile the realty sector

elsewhere in the country is in the grip of a slowdown, in Jammu the property

prices have gone up considerably over the past couple of years. The city is emerging as a preferred destination of private developers as there is sufficient demand for housing units here. The city has good rail, road and air connectivity and is also attracting a large number of families migrating from the militancy-affected areas in the state.

Factors that are driving demandWhile years of strife and fear of terrorism had severely stunted the demand for housing in the winter capital of the state for a long time, the city also did not have much influx of well-paid professionals as there was virtually no major industry or commercial activity going on here. Most of the buyers were either locals or those from the nearby areas. The current surge in property prices and demand for housing here is largely because of the migration of population from different parts of the state.

Over the past two decades lakhs of people have made Jammu their home, and this has lead to an increase in the demand for residential units here. People from Rajouri, Poonch, Kashmir valley, Doda, Bhaderwah and Ladakh are buying property in the city. After this large scale migration, the land prices shot up and this boom attracted many big developers like Parsvnath, Ansal Housing and Royal Nest, who have all launched housing projects here.

Big developers show interestThough Article-370 gives Jammu and Kashmir a special category status and offers non-state subjects little opportunity to invest directly in the state, major real estate developers have been investing crores of rupees in tie up with the local colonisers.

emerging trendAmid all this activity in the realty sector, the trend which is gathering steam here is the one for apartments in multi-storey buildings. Investors as well as end users are preferring flats due to the secure and well-planned ambience offered by these.

A decade back housing colonies and apartments were alien concepts here and only J&K Housing Board was involved in the construction of residential flats, but now Jammu skyline is dotted with high-rise buildings. Although buyers are still conservative in their approach towards flats, the change is all evident as the cost of building independent homes has risen considerably and lack of civic facilities in the old city areas has made many families look for more planned options on the outskirts of the city. Banking institutions are also giving a major push by offering attractive loan facilities to those interested in purchasing apartments.

the price riseA drive through Jammu, especially the outskirts, confirms that the city is fast turning into a vibrant metropolis. This has given a further boost to land prices. The price of one marla at Sidhra, Bhatindi, Sainik Colony, Bantalab, Top Serkhania that used to be around Rs 10,000 to 20,000 sometime back has now shot up to Rs 2 to 3 lakh per marla.

The price range for apartments start from Rs 30 lakh goes up to Rs 50 lakh. Groups like Ansals, Grace Apartments at Sainik Colony, Royal Palms by Riddhi Siddhi Group, and Parsvnath Developers Ltd were among the first companies to have invested in the area.

“Land prices in our village have shot up and there is a lot of change since the apartments has come up here. Some local developers are also now interested in retaining their land for developing planned colonies, rather than selling plots. The price escalation of property here is bound to be steep. With infrastructural developments taking place at a good pace, the city is going to be a perfect choice for traders and corporates in days to come.

City municipal limits have now grown from 32 sq km to 132 sq km and the population is expected to reach two million by the end of this decade. Apartment concept is the best as these societies are independent mini-towns.

The government is also giving a push to this trend. The Master Plan 2021 formulated by the Jammu Development Authority (JDA) also proposes setting up of plotted colonies with focus on private developers to construct multi-storey apartments.

J&K is an unexplored state and investment avenues in real estate here are vast. People here are more attracted to brand names and are buying flats in spite of having their own homes, which is driving the developers. Though the completion of several projects has been delayed, the market sentiments are still high.

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tremendous Growth in real estate sectorUttar Pradesh, the state which boasts highest number of population in India has recorded a massive 106 % escalation in total outstanding investments in real estate sector of India. According to the analysis presented by the Associated Chambers of Commerce and Industry of India (Assocham), from the period of 2008-09 to 2012-13, Uttar Pradesh have seen a tremendous growth in outstanding investments in real estate sector. Out of the total outstanding investments of `14 lakh crore, UP has a share of over 9 percent till March 2013.

Apart from the outstanding attainments worth `1.3 lakh crore till March 2013, the state also witnessed a drop of about 69% in investment commitments from 2011-12 to 2012-13. Uttar Pradesh ranks fifth with a substantial share of 6% out of the total value of investment commitments worth `42,000 crore which involves both domestic as well as foreign real estate investors in 2012-13.

In 2011-12, the state successfully attracted real estate investment commitments valued `8,200 crore but during the previous financial year, the state’s performance declined and witnessed a drop of around `2600 crore in the investment commitments.

Uttar Pradesh has clocked 106% growth in total outstanding investments attracted by the real estate sector between 2008-09 and 2012-13. This is stupendous achievement considering outstanding investments in realty had risen by only 25% on pan-India basis during the period, according to a sector specific analysis by Associated Chambers of Commerce and Industry of India (Assocham). “UP ranks sixth with a share of over 9% in total outstanding investments worth over `4 lakh crore attracted by realty across India until March 2013.”

The state had attracted new investment commitments in the real estate sector worth over `8,200 crore in 2011-12. UP failed to improve its performance

as new investment commitments in real estate sector in 2012-13 declined to just about `2,600 crore. While most states witnessed drop of over 50% in attracting new investment commitments in realty during 2012-13, Uttarakhand (400%) and Rajasthan (175%) were the two North Indian states that saw massive growth in new investments.

The domestic real estate sector has been plagued with problems liked dwindling sales, rising construction costs, dampened market sentiment overall, sluggish economic growth, high interest rates, high inflation and poor industrial production (IIP) due to which leading players in the sector had to sell their land to reduce debt, private equity players have trimmed exposure in realty and general slowdown has hit commercial real estate. However, certain positive developments like Parliament’s approval to foreign direct investment in multi-brand retail would help attract foreign investments and give a fillip to the retail industry and simultaneously boost the demand for commercial real estate in India.

UTTAR PRADESH

LUCKNOWThe city is surrounded by towns

and villages like Malihabad, Kakori, Mohanlalganj, Gosainganj, Chinhat and

Itaunja. It is bounded by the Barabanki district in the east and the Sitapur district in the north. To the north west of the city is Hardoi district, while south-east and south-west are bounded by Rae Bareli and Unnao districts respectively. As per the provisional census 2011, the population of Lucknow has seen a decadal growth of 25.79% and currently stands at 4,588,455. This includes 2,407,897 males and 2,180,558 females. The district has a literacy rate of 79.33 %; male and female literacy are at 84.27% and 73.33% respectively.

a Glimpse of residential development in lucknowNew Lucknow lies in the trans-Gomti

region, with the exception of certain prime localities around Hazratganj (in Central Lucknow) that are located in the cis-Gomti region. This part started to develop at a much later stage, therefore is equipped with well-planned roads, modern architecture and an organised social infrastructure. While the real estate landscape is dotted with independent houses, the trend of apartment/floor establishments by reputed builders is now being witnessed. Lucknow over the years has witnessed a radial growth, greater along the Faizabad Road and also along the roads leading to other neighboring cities, hence carving out newer locations on the real estate development map.

market sentimentThe Lucknow real estate market is currently a ‘buyer’s market’. It is

largely ‘end-user’ driven, with some investment activity prevalent in the new emerging locations. In New Lucknow, the investor participation is approximately 40% which is expected to escalate in the future. While investors are predominantly long-term investors, short term speculation is still at a very nascent stage.

Moreover, demand flows in from residents of other cities in Uttar Pradesh like Faizabad, Gonda, Bahraich, Sultanpur, Unnao, Sitapur, Barabanki, Allahabad, Kanpur and Varanasi, who aspire for an upgradation in living standards. A recent CRISIL report titled ‘Real(i)ty Next - Beyond the top 10 cities of India’, stated that Lucknow is one of the next top ten cities with enormous real estate potential. The builders exude positive market sentiment in the long run which is supported by the fact that

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Factors boosting Real Estate in Lucknow

Lucknow’s position as the state capital 1. and the second largest city of Uttar Pradesh. The city is the only large urban centre amidst a number of small towns in the surrounding districts, making it an attractive destination.Growing per capita income of state, 2. coupled with positive aspirations of middle-class. The state’s per capita income in FY 2011 stood at a moderate level of Rs 26,211. Per capita income of Uttar Pradesh in FY 2006 was INR 14,115 and has shown a progressive trend each year.Improving infrastructure in terms 3. of road networks, good educational institutions and organized retail. Creation of employment opportunities by the public and private sector companies is an added factor.Availability of land at affordable prices 4. when compared to metros, has led private developers to venture into the market.Presence of reputed private developers 5. like DLF, Rohtas, Eldeco, Halwasiya, Emaar MGF, Ansals, Unitech and Sahara in the form of various mega projects with world class social amenities is slowly and gradually changing the face of residential real estate in the city.Lucknow’s eligibility under JNNURM.6. The proposed Metro in the city is 7. another reason for the boom. However, issues like slums mushrooming in almost all the parts of city, water-sanitation issues and pollution of the river Gomti are a few causes of concern.

many outside developers of repute have expressed interest in establishing their projects in the city. Developers show interest in Tier-II and Tier-III cities like Lucknow because of better profit margins due to lower land costs. The real estate market of Old Lucknow is predominantly end-user driven with very limited investment opportunities.

independent Houses vs. Builder developmentsBig real estate developers like DLF and Emaar MGF have recently forayed into the Lucknow market while some

known builders such as Rohtas, Eldeco, Unitech and Parsvnath have already been offering projects in the city. While the lure of land plots/independent houses is still rampant, migration to builder societies has been witnessed particularly on account of better amenities and security. Most builder projects in the city offer a diverse product mix (comprising land plots, villas and floors), as per estimated demand.

migration from independent Houses to multi-storied apartmentsThe city is undergoing a transition, wherein the appetite for plots/independent houses has seen some change towards a taste for multi-storied developments. This is on account of diminishing supply of land plots within the desired budget and lucrative amenities in builder developments.

land acquisition by private developersThe developers buy land parcels that are sold or auctioned by the government authorities (Lucknow Development Authority, Uttar Pradesh Housing and Development Board) or farmers. This phenomenon is visible in the developing/ upcoming parts of the city like Faizabad Road, Gomti Nagar Extension, Rae Bareli Road and Hardoi Road. There are several old ‘kothis’ erected over huge land parcels at various locations within the city. These kothis are generally old and dilapidated and many owners are offloading these properties. Builders are either purchasing these kothis and reconstructing apartments or entering into a joint-development model with the owners wherein builders construct their project and share profits with the original owner. This trend is prevalent in developed areas like Central Lucknow, New Hyderabad, Dalibagh, etc

investment scenario in lucknow Growth corridorsItz has been observed that certain locations in Lucknow have seen a sharp property price growth to the tune of 25-50% in the past 2-3 years. The locations that are considered hot-spots for investment are mainly in the trans-Gomti region. Locations such as

Gomtinagar, Indiranagar, Jankipuram and their extensions are certain growth corridors within the city.

However, as the city has been expanding radially, the highways connecting with surrounding cities such as Sitapur, Faizabad, Sultanpur, Rae Bareli, Kanpur and Hardoi have gained prominence in terms of infrastructural development and market activity. While infrastructure development is underway at these locations, mega projects by many reputed developers like DLF, Ansals, Sahara, Eldeco and Unitech are under-construction and many new projects are in the pipe-line.

major development areas of lucknowGomti Nagar belt (Gomti Nagar Phase I, II & Extension, Indira Nagar, Chinhat, Faizabad Road, Rabindra Palli) has emerged as a prime location in Lucknow with a fair mix of residential, commercial and retail developments, specially dotted with the presence of independent houses and premium apartments. The prices have an appreciation in between 5 to 10 per cent in this region over the last year. There are large number of activities on Faizabad Road, connecting Lucknow to Faizabad with the presence of premier educational institutions, residential townships and commercial/retail establishments. The residential properties along this road fall in the price band of `2000 to `2500 sq ft. On Chinhat-Deva Road, the price band is in between `2000 to `2500 sq ft. Gomti Nagar area has Zee Mall, East End Mall and Riverside Mall beside Taj Group’s hotel.

The reason for growth of this area is for its good road connectivity owing to existing and upcoming wide roads, highways, bridges and flyovers. Moreover the entire region is in close proximity to the CBD and maximum operational malls are in this region. In locations like Sitapur Road, Janakipuram, Aliganj, Niralanagar, Mahanagar, Daliganj is typically comprise of independent houses. Re-development of old properties to builder apartments is prevalent in some part of this area. The Aliganj area has witnessed an appreciation in the range of 9-10 per cent over the last one year because of well-planned colonies. The price band

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of property here is around `2000 to `4000 per sq ft. Major developers in the Jankipuram area include Sahara and SAS.

Being the commercial catchment and with good connectivity, has driven residential demand in these areas besides institutional buildings of government offices and University. The other major areas for new development are Kanpur Road, Rae Bareli Road, Sultanpur Road, LDA Colony, Ashiana Colony, South City, Vrindavan Upnagari, Alambagh. Though there is very little development is noticed on the Rae Bareli Road and Sultanpur Road because

Location Capital Values (INR/sft.)

Land Rates (INR/sft.)

Average Rentals for 2 BHK (INR/month)

Sitapur Road 2,000 - 3,500 1,500 - 2,000 4,000 - 5,000

Jankipuram and Extn. 2,000 - 2,500 2,000 - 2,500 5,000 - 6,000

Vikas Nagar 2,500 - 3,500 2,500 - 3,500 6,000 - 7,000

Nirala Nagar 3,000 - 3,500 3,000 - 3,500 6,000 - 7,000

Aliganj 3,000 - 3,500 3,000 - 3,500 6,000 - 7,000

Mahanagar 3,000 - 4,000 3,000 - 4,000 6,000 - 7,000

Gomtinagar 3,000 - 4,000 3,000 - 4,000 6,000 - 7,000

Gomtinagar Extn. 2,000 - 2,500 2,500 - 3,000 9,000 - 10,000

Indiranagar 2,500 - 3,500 3,000 - 4,000 6,500 - 7,000

Faizabad Road 2,000 - 2,500 1,900 - 2,100 5,000 - 6,000

Rabindra Palli 2,500 - 3,000 2,500 - 3,000 5,000 - 6,000

Kanpur Road 1,500 - 2,000 1,500 - 2,000 4,000 - 5,000

Rae Bareli Road 2,200 - 3,000 1,500 - 2,500 4,000 - 5,000

Sultanpur Road 2,000 - 3,000 1,000 - 2,000 ----------------

Vrindavan Upnagari 2,000 - 3,000 2,000 - 3,000 5,000 - 6,000

Ashiyana Colony 2,500 - 3,500 2,500 - 3,500 6,000 - 7,000

Alambagh 2,000 - 3,000 2,500 - 3,500 5,000 - 6,000

South City (Unitech) 2,000 - 3,000 2,000 - 3,000 6,000 - 7,000

Hazratganj 3,500 - 4,500 4,000 - 5,000 9,000 - 10,000

Jopling Road/ Gokhle marg

4,000 - 6,500 4,000 - 5,000 9,000 - 10,000

Mall Avenue 3,500 - 4,500 4,000 - 5,000 9,000 - 10,000

Aminabad 2,000 - 3,000 2,000 - 3,000 5,000 - 6,000

New Hyderabad 3,000 - 4,000 3,000 - 4,000 7,000 - 8,000

Paper Mill Colony (Metro City)

2,000 - 4,000 2,000 - 2,500 7,000 - 8,000

Hardoi Road/IIM Road 1,500 - 2,500 1,500 - 2,500 5,000 - 6,000

Rajajipuram 2,000 - 3,000 2,000 - 3,000 5,000 - 6,000

Chowk 2,000 - 3,000 2,000 - 3,000 5,000 - 6,000

Residential Property Rates in Prime Residential Markets and prime commercial and retail zone

of the city and State’s Assembly. The second largest commercial of old Lucknow is Aminabad. In this central Lucknow, Gokhale Marg, Jopling Road and Mall Avenue are niche residential localities surrounding the CBD and are landscaped with prime bungalow style or premium multi-storied developments. The property prices range from `3500 to 6500 sq ft. Sahara Mall too is in this area. The major developers in the region are Eldeco, SAS and Halwasiya.

Good connectivity, presence of organized retail, Lucknow Golf Club, close proximity with key areas and railway station and presence of reputed financial institutions, corporate offices, and excellent social infrastructure are the growth drivers of this region.

Hardoi Road, Alambagh, Rajajipuram, Chowk, Thakurganj are the other locations of the old Lucknow city. This area of the old city is reached at a saturated point except upcoming areas like Hardoi Road and IIM Road where many reputed developers have been venturing into this part to develop residential projects. Both Government and private developers have planned for residential projects and the main developers are Eldeco and Sahara. In fact, the entire old Lucknow belt predominantly witnesses secondary market transactions. However, primary market transactions can be seen in the Hardoi Road belt.

Defence activities, but good growth is witnessed on Sultanpur Road, Kanpur Road, because of good connectivity. Several private developers have forayed into this area to develop residential projects and the price band is around `2000 to `3000 per sq ft. The prices in Vrindavan Upnagri are `2000-`3000.

Hazratganj is the Connaught Place of Lucknow

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meerut has rapidly come up as a strategic real estate destination

owing to its close proximity to the Delhi NCR. It is connected to Delhi by NH-58. Meerut has shaped up as an ideal destination catering to the increasing housing demands on one hand, while maintaining the prices within affordable limits on the other.

Infrastructure development in Meerut is currently going through a boom phase and the people here have many reasons to cheer. Today, Meerut has shaped up as an ideal destination for affordable residential realty, as real estate prices in the NCR have gone beyond the reach of the mid- and the lower-middle class buyers. Thousands of people commute for work to Delhi, and vice versa, every day on the NH-58.

real estate developmentReal estate in Meerut is riding on the crest of demand, boosted by large availability of land at low prices. The market trends are upbeat with the presence of prominent builders like Ansal API, Supertech, MSX Developers, Era Group, Majestic Properties, DLF, Alpha G:Corp and Omaxe. With these leading construction companies eager to buy land and build mega projects, property prices in Meerut have seen a tremendous appreciation, quoting at almost three times the prices a couple of years ago.

There is a great demand for quality accommodation units on the outskirts of Meerut, which have excellent infrastructure facilities, sound planning as well as top-grade security. The most sought-after location is along the Meerut Bypass. Also, the Hapur Road and the Cantonment Road are gaining prominence as ideal destinations for property investments and are attracting large developments. Of late, commercial and residential complexes are also coming up on Mawana Road and Modipuram on the Muzaffarnagar Highway.

residential propertyExcellent infrastructure facilities, sound planning and top-grade security of some of the housing projects on the outskirts of Meerut has increased demand in this area. The most sought-after location is along the Meerut Bypass.

Also, the Hapur Road and the Cantonment Road are gaining prominence as ideal destinations for property investments and are attracting large-scale developments. Of late, commercial and residential complexes are coming up on Mawana Road and Modipuram on the Muzaffarnagar Highway.

Prominent builders are coming up with new projects like Ansal Housing, a residential township by Ansal API; Sports City, Shopprix and Palm Greens by the Supertech Group, and a two residential projects and a mall by the Era Group. Other builders like Saamag Group have residential projects like Saga Habitat, Ark City and Coral Springs, while the Gayatri Group is building many residential projects here.

Why meerut?With an increase in the number of domestic and foreign players across industries shifting base to Tier II cities, demand for townships is on a high. The prices of residential property vary from `2,550 per sq metre to `17,500 per sq metre, depending on the location. Price of land in Meerut is not so high but the property market is certainly showing phenomenal potential for growth.

property sceneAnsal API has Ansal Housing, a residential township, Era Group has two residential projects and a shopping mall, Supertech Group is coming up with three projects, Sports City, Shopprix and Palm Greens. There are many other builders moving towards Meerut like Saamag Group with residential project like Saga

Habitat, Ark City, Coral Springs, while Gayatri Group is developing residential projects.

Supertech’s Sports City, over 51 acres, is strategically located on the national highway (Roorkee Road) near Pallavpuram. The project is close to the main town, yet it accords buyers the pleasure of residing in lap of nature. This project has a distinctive design that unifies modern architecture with sports facilities; it has a beautifully designed highrise tower and superb villas along with a full-size cricket stadium, a boating lake and putting greens. A 200-bed hospital and an Iskcon temple are also in the works.

With a number of domestic and foreign players, across industrial sectors, shifting their base to Tier II cities, the demand for space here is very high. We have planned to develop a signature township, Sushant City, over 300 acres. It will offer an array of options like built-up houses, independent floors, bungalows and villas. The township will cater to the housing requirements of more than 5,000 families.

ConnectivityThe congestion on NH-58, which passes through Ghaziabad, Muradnagar and Modinagar, made commuting to Delhi long and uncomfortable. But, with the 64km Delhi-Meerut Expressway slated for completion in 2015, this may be a thing of the past. The Delhi-Meerut drive is expected to be cut down to only 45 minutes, and, naturally, this would send property prices through the roof. The other major development is the high-speed rail link – a Rapid Rail Transit System (RRTS) is in the works, which would speed up the journey from Delhi (Anand Vihar) to Meerut (Begumpul). An underground track will be laid from Anand Vihar to Dabur, due to the Metro project, and then run on elevated track up to Meerut. The consultant company has designed the entire project in a manner that there is no need to acquire or demolish any existing property.

MEERUTRIDING ON THE CREST OF DEMAND

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(Sources: Some parts of this write up is taken from The Daily Post and The Tribune, Chandigarh and ICICI Bank Report)

mathura-Vrindavan is witnessing lots of development on the

residential and commercial front with lthe emerging interests of various local and outstation real estate players like Shri Group, Triveni, Suncity Projects, Space Buildwell, Tarang, Prabhatam Buildwell and more. The Shri Group has already constructed and sold out 200-housing units Shri Radha Puram on NH-2. Currently the developer is working on about a dozen projects including Shri Radha Orchids, Shri Radha Puram Estate, Shri Radha Farms, Shri Radha Brij Vasundhra, Shri Radha Golf, Shri Radha Valley, Shri Radha Highway Farms, Shri Radha City, Shri Radha Town and Shri Radha NRI Greens.

Along with villas, new houses and apartments, the township concept has also caught up in Mathura.Triveni Infrastructure Development Company (TIDCO) is creating a mini township, ‘Triveni Krishna Vatika’, in Vrindavan,

on 43 acres of land incorporating all the modern conveniences and accoutrements like marble flooring, lavishly designed interiors, state-of-the-art attachments and fitting, security camera scans etc. The proposed township will be a blend of modern and spiritual living as it will have a golf course, a billiard room , tennis court, skating rink along with the provisions of conducting “pooja and havanas.” House-keeping facilities will also be included.

The Plan is to have three segments¾ Nand Vatika, Anand Vatika and Govind Vatika, each of them independent These all freehold villas having options as one, two and three bedrooms. They are planning one more Kanha Vatika consisting of four bedrooms to come up on 1000 sq.yard area. The price of a fully furnished residency at Krishna Vatika will range from `2000 to `2700 per sq. ft. The luxurious Krishna Vatika project is being developed keeping in mind the needs of NRI and HNI buyers.

MATHURA-VRINDAVAN

The North India real estate sector promises to be a lucrative destination for foreign investors into the country. The

realty sector, if channelized properly, could catapult the growth of several other sectors in India through its backward and forward linkages. However, there are potential constraints for domestic as well as foreign investments in India. Absence of a single regulator to monitor business practices prevailing in real estate market is perceived to be a risk factor by investors. The SEZ guidelines which are issued by the Commerce Ministry are constantly modified, creating uncertainty. Since the liberalization of FDI norms, significant foreign investments have flown into real estate; but availability of suitable exit options for such investments is still constrained. Maturity of the real estate markets will lead to infusion of foreign investment and adoption of international best practices by real estate players. Developers will get more organized, and become more transparent to avail opportunities emerging in the market. With the Indian securities market regulator SEBI allowing real estate mutual funds (REMFs) in India, equity investors will have an exit option available to them. All these factors will contribute in making the real estate market more organized and structured, thus providing better investment opportunities.. Ea

affordable Housing Mathura- Vrindavan Development Authority (MVDA) has also been playing a significant role in contributing to the real estate boom, particularly by way of meeting the demand for low income housing. Radha Puram, Krishna Puram, Chaitanya Vihar, Kailash Nagar colonies of low cost houses offering one bedroom flats of `5-6 lakhs and two bedroom flats for `10-12 lakhs. Prabhatam Group is coming up with a residential project of 480 flats over 20 acres of Goverdhan, near Mathura. The USP of this project comprising 1 and 2 bedroom double-storey flats is that these will be fully furnished flats equipped with all modern facilities. The one-bed room flat of 500 sq ft costs `8-9 lakhs while the 2 bedroom flat of 800 sq ft costs `12.5-13.5 lakhs. The residential complex promises beautiful landscaping and recreational facilities in the form of a Club House.

North India Real Estate Report

Conclusion

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In the realm of prospering economy witnessed by India, there has been an untamed demand for business travel across India with intense

globalization bringing forth expats from foreign lands for longer stay. Due to which growing impetus on business and medical tourism in India has clocked 25% - 45 % manifold growth in past five years.

Consenting to the growth trajectory of hospitality sector; reflecting the huge gap between the number of travelers and hotel room available. It is expected that there will be a shortage of quality accommodation in near future, as in, supply of hotel rooms is apprehended thereof. As per industry sources total number of hotels available, is expected to grow at a phenomenal rate in India, particularly in Tier 2 & Tier 3 cities by 2015.

Sighting such crunch in the supply chain, few developers have started joint venture with foreign brands in developing property for hotel establishment with a view to cater the demand for hotel rooms in coming times; yet the concept for joint venture is uncertain and unpredictable as it is at its nascent stage and the requirement for curtailing the cost remains a major concern for the hotels with 5/4 star offering.

Whereby, a ‘serviced residence’ is an apartment alternative to hotel accommodation for long stays - leisure or business travelers. However there are two types of accommodation namely extended stay and corporate housing. It is built in a manner where a furnished accommodation with small kitchenette is provided with basic facilities of a household, sometimes even provided with concierge service. The lodging rates are substantially cheaper compared to the starred hotels which

charge at an exorbitant rate. Proliferation in sectors like Medical

Tourism, BPO, ITES, and Financial Institutions are pulling the crowd for service apartments in India. The concept which embarked on Mumbai around 2003-04, has seeped in cities like Bangalore, Hyderabad and Delhi NCR.

Encashing this opportunity the segment possess, Assotech Realty Pvt. Ltd has taken the initiative to deliver luxury ‘Service Apartment’ across India.

The company is amongst the pioneers in the field of office space development and ‘Service Residences’ in India, they have been in this trade for past nine years, it has flourished as a leading real estate developer in northern India and has been able to successfully established the concept of serviced residences in Delhi/NCR under its flagship ‘Cabana Serviced Residences’; At the current stake the company is focused on increasing its foothold across India as a part of its expansion drive, under the brand name ‘’Sandal Suites’’, a four/five star level offering. For the same, it aims to foray into newer markets in the tier II and III cities of Noida, Shirdi, Ahmedabad, Katra and Goa; a move in line to strengthen its hold in the Service residence segment of the country.

‘Sandal Suites’ is a Luxurious Service Resident complex spread across vast expansion, offering a deluxe and premium accommodation options. All suites comprise of a kitchenette with a dining area in addition to the living and bedroom areas. The suites are aesthetically designed paring with vastu based architecture which are elegantly furnished with all modern amenities. The provisions has set new standard

ever since its inception, for the corporate executives seeking long term stay for the purpose of luxury and unhindered relaxation.

The service resident complex are stacked with an array of facilities like double height Guest Entrance Lobby, state of the art Health Club with Spa, Business Centre, Board/Conference Rooms, Meeting Rooms, Terrace , Swimming Pool and Multi-cuisine restaurant for guest to savor to their individual taste. The charges pertaining to lodging varies from Rs (2,000 – 10,000) per night depending on the time period, size and amenities provided for stay.

The company also offers lucrative investment options where there is a guaranteed return on investment for the investors. In particular, it is mend for those who desire a recurring return (18 to 20) % Y-o-Y basis. As these residences, which are strategically located near the corporate hubs. The, occupancy levels are expected to remain high throughout the year. In addition to the investment the investor are given a privilege of free stay for a limited period across India along with a club membership with the company.

The concept is an unique blend of hospitality and real estate creating a new pool of investor and target group of its own. ‘Assotech Realty’ has been able to march ahead and set up new bench mark with an unique line of innovative concept through amalgamation of two domains.

‘Sandal Suites’ – Assotech Realty Pvt. Ltd brings to you an ideal place to find solace in between hectic work schedule. Needless to say, these are for the ‘Limited few’ to bank on. A place which aspires you to the royal Indian congeniality and rejuvenates your spirit while one stays aloof from home. Ea

With increase in corporate travel and spending weeks and months for working from different location has become frugal these days. Where people are left with no other options apart from lodging in hotels which is always a costly affair in own terms. With the advent of newer concept; ‘service apartment’ offers an alternative solution to the problem

Growing trends of luxury residences in India

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Sandal Suites

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This Bill looks to ensure many factors. Primary among them is that construction is not only completed in a timely manner,

but that on completion the buyer gets the property as per the stated specifications that he has been promised. The developer is required to declare the time frame for developing the project and has to adhere to stated timelines, failing which there would be considerable penalties imposed by the Regulator. The Bill also makes it mandatory to define the carpet area, which shall be a standard definition across the country. For compliance, the Bill will provide model Agreement to Sell under which the promoter is liable to furnish the necessary project details to the allottee/buyer while also becoming responsible for providing project level details as demanded by the buyers.

Developers will need to also clearly mention the governmental sanctions and approvals that their project has obtained, and cannot market or promote the project unless the necessary approvals are in place. By making registration of the project compulsory with the Regulatory Authority, the Bill will certainly provide greater transparency in project marketing and most importantly, execution. The Bill itself has been thoroughly thought through and hence, works both ways. While it aims to hold the developers accountable, it also looks to ensure that the allottees/buyers do not default in making the due payments. Thus, by providing penalties for both the

promoters and the allottees/buyers, the Bill seeks to ensure that inconsistency and non-compliance is minimal in the entire process.

There are also provisions to stop builders from issuing misleading advertisements on upcoming projects. A first-time breach would attract a penalty, which could be up to 10% of the project cost. A repeat offence could also land the developer in jail for up to 3 years! Another aim is to make it mandatory for a developer to set aside half the money collected from buyers into a separate (escrow) bank account for each project to ensure that the money raised for a particular project is not diverted into a new project at the cost of the former. As I write this, it is also being attempted that the category of real estate brokers too are brought under the ambit of this Bill by making their registration mandatory, thereby providing further safeguards against tall claims and false projection.

As should be the case, the Regulatory Authority would have the requisite Appellate Tribunal for dispute resolution with a Specialized Forum to hear disputes related to property matters. Consumers and investors who until now had no recourse except prolonged litigation processes in a court of law or consumer courts will now be able to file their grievances with the Specialized Forum for quick and satisfactory resolution. This measure alone will increase the general market confidence in property investment and growth.

The Union Cabinet last month approved the Real Estate (Regulation and Development) Bill 2013 that allows for the creation of a bona-fide and empowered Regulator in the real estate sector. Once enacted, it is aimed to protect buyers’ interests and usher in the much-needed transparency in the sector, which was until recently unregulated and relatively unaccountable. The upcoming regulation of real estate will hopefully provide considerable relief to the ordinary buyers and investors who go through innumerable obstacles due to the grey areas prevalent in the purchase of property

by Dr. Prodipta Sen Executive Director Alpha G:Corp & MRICS

Realty Regulation Bill How the Consumers Stand to Gain

While single-window clearance for projects is crucial for optimum compliance and implementation for the developers/builders, it is not going to be an easy process for the government to implement on account of the simultaneous coordination that would be required with related government bodies like, the Ministry of Environment, Airports Authority of India, the Ministry of Housing and Urban Poverty Alleviation, et al. However, the details and concerns in this regard are being worked out since single-window clearance will be an important component if Indian real estate is to function as an efficient and effective industry in tune with the growth requirements of the nation.

It is now paramount to introduce this legislation at the earliest. Practical glitches will emerge given the magnitude of the Bill, but these would have to be ironed out in due course with some political and executive will if the intent to safeguard home buyers and enhance development at the same time, is to be translated into reality on the ground.

At a personal level, we at Alpha G:Corp feel delighted and gratified at the Real Estate Regulation Bill being approved at this juncture. From the time of Alpha G:Corp’s inception in 2003, we have announced and initiated projects only after procuring all required regulatory licenses from the Government for all projects without exception. Being a 100% FDI compliant company with Morgan Stanley Real Estate as one of our investors, all our projects have separate earmarked escrow bank accounts with funds received from buyers getting deposited directly in the respective project’s dedicated account.

Finally, and especially in the present context, the consumer deserves the transparency and services being promised through this Bill. In fact, it is this belief about our consumers’ interests that has led us to achieving our primary objectives as a progressive developer. I hope the new Regulation will increase that perception of the customers’ importance across the Indian real estate industry and bring about more and more professional developers and increasingly satisfied customers across all categories. Ea

lUxURy liviNG

Luxury living in SAHA AmadeusThe SAHA Groupe proudly

belongs in the former domain: committed to relentless excellence, the

Groupe owes its towering reputation to the demanding philosophy– maximization of customer delight, with first-in-field value additions; and that is exactly what we are expressing in AMADEUS.

the man & His saHa GroupeMr. Aniel Kuumar Saha’s business philosophy emanates from the belief that you can’t know where you’re going unless you know where you came from. That motto has propelled his rise from an ambitious young architect, to a visionary commercial and residential real estate entrepreneur, obsessed with shattering the barriers of conventional imagination. An acclaimed Architect and self-confessed workaholic, Mr. Saha and his Groupe are famous for delivering ‘quality beyond commitments’, and ‘masterpieces before deadlines’. As an example, a few years ago, he committed to deliver one of Noida’s most prestigious residential projects within 36 months… all the 18 towers were completed and delivered in a record time of just 30 months!

Besides him, his company, SAHA Groupe is spearheaded by an impressive pool of qualified and experienced professionals

from both private and government sectors including industry stalwarts such as Mr. A.K. Sirohi, JMD, a PhD and MSc in Statistics and Mr. Aunirban Saha, Director, who, after completing his BE Electronics and Instrumentation from BITS-Pilani, Dubai, and MSc. in Financial Mathematics from the University of Leeds went on to acquire an MS in Real Estate Development (Sustainable Development) from the prestigious New York University and in the long run, wants to be a pioneer in actual sustainable research to provide a lifestyle of exemplary luxury and indulgence whilst minimizing environmental impact. They are assisted by Mr. Jahangir, Director, Project Coordination, whose illustrious career spans 35-years of project implementation in infrastructural and civil works projects with the government at various positions of responsibility. He at SAHA Groupe heads the In-house Construction Team that has been the reason for Mr. Saha’s previous hallmark projects.

So far Mr. Saha has successfully completed and delivered five major projects—ATS Greens I, ATS Greens II, ATS Village, ATS Greens Paradiso Phase-I and TGB Meghdutam- a masterpiece of modern living. The sixth ambitious and luxury project SAHA AMADEUS was launched earlier this year in April.

For those who appreciate real value, there is a world of difference between a lofty vision and a tall claim! And

while the majority will happily languish in the latter domain, there are those rare few, who will push the limits

of possibility, to raise the benchmark again…and again.

•ProjectdesignedbyrenownedArchitectHafeez Contractor

•32Storieshigh•Approximately300unitsspreadover3

towers•Superluxuryapartmentsavailablein

2,675 / 3,175 & 4,275 sq. ft. sizes•Structuraldesigningincludespile

foundation by Mahimtura Consultants (Mumbai) and vetted by IIT – Powai (Mumbai)

•Internationallevellandscapingbyrenowned Consultants – LSG (VA, USA) and Green Space Alliance (GSA Mumbai). The landscape includes water bodies and fountains

•Uninterruptedviewsofbeautifulgreensfrom maximum units

•3-tiersecuritysystemswithelectronicsurveillance

•Wi-FiinternetbroadbandconnectivityandHigh Speed Elevators

•Well-manicuredexteriorswithwalk-waysand jogging tracks

•InnovativelydesignedClubhouse,Gymand Swimming Pool

•ExclusivelyplannedSportsArena(TennisCourt & Half Basket Ball Court)

•Futureproofing–IPTVdesignready•Optionofcustomizationofapartments*•Optionofdifferentlevelofhome

automation**Available on additional cost

project in a brief

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by Mr Aniel Kuumar SahaChairman, SAHA Groupe

lUxURy liviNG

•0-kmsfromtheNoida-GreaterNoidaExpressway and from the proposed FNG Expressway.

•200-mfrontagealong75-mwidesectorroad, which provides easy accessibility to DND Flyway and Yamuna Expressway

•Proposedmetrolinkwithin1-kmradiusfrom the site.

•Easyconnectivitytohealthcareservicessuch as Max Hospital, Fortis, Escort Heart Institute, Apollo Indraprastha, Kailash and Indo-Gulf Hospitals.

•CloseProximitytoeducationalinstitutions such as Amity University, Mahamaya University as well as to Greater Noida Educational City.

•ReputedschoolsinthevicinityincludeThe Shriram Millennium School, Lotus Valley School, Genesis Global School, DPS Expressway, and Step-by-Step World School.

•NearbyAttractionsincludeNightSafariPark, Buddh International Circuit (F1 Track), Worlds of Wonder Amusement & Water Park, Sector 18 Commercial District, Noida City Centre, Noida Golf Course, Botanical Garden.

specialties in the amadeus

the amadeUs

This landmark project will give you a taste of what lies beyond the convention of luxury, redefining the entire concept of the experience. Envisioned to be the epitome of all things extraordinary, Amadeus will be the ultimate address for those who have been there, done that, and now crave for the next level of premium living. Located in Sector 143, on the bustling Noida – Greater Noida Expressway and the proposed Faridabad Noida Ghaziabad (FNG) Expressway, it is here, that the Groupe has chosen to make an emphatic statement – Amadeus, imbued with opulent aesthetics and ultra-modern infrastructure, to offer a standard of living that will become the ultimate signature of luxury living.This project is designed by Architect Hafeez Contractor, one of the most renowned names in the field. This project will have uninterrupted view of the lush greens from most of the units in the project. Apart from this, the project boasts – 3 tier round the clock

security, high speed elevators, internet connectivity, walkways, jogging tracks, a residents’ only clubhouse, a gym and a swimming pool. The project will be ready for possession in December 2016. SAHA Amadeus will feature fully-finished 3 and 4 bedroom apartments with areas 2,675 / 3,175 and 4,275 sq. ft, distributed over 3 towers and spread across sylvan greens, with spectacular landscaping by Landscape Consultants, LSG (VA, USA) & Green Space Alliance (GSA, Mumbai). The project is designed to achieve a LEED India/ IGBC Green Homes Platinum rating. The towering 32-storeyed Amadeus will offer a panoramic view of Noida’s skyline, from its luxuriantly landscaped rooftop greens, which truly makes Amadeus one of the most desirable properties in the Delhi NCR region.

In many ways, Amadeus would

be the first of its kind project in the country, with 4 levels of

greenery including about 16,000 sq. ft. of private sky gardens with

Penthouses, and over an acre of Rooftop Park with full-grown trees. The cumulative 4 vertical levels of

landscaping give Amadeus over 150% of green coverage!

That’s AMADEUS - Experience the essence of

splendor to believe it!

location advantages

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UP-FRONT

PRIVATE EQUITY FUNDING FOR REAL ESTATE PROJECTS

by GD Singh

Cap on FDI in Indian real estate was lifted in 2005, two years later in 2007 there were a record 202 private equity investment deals worth more than $9,949 million (approximately `58,000 crore), and then the global slump in 2009 dampened sentiments to some extent. Things have started looking better now. From a net FII inflow of `35,000 crore in 2012, we have had `43,171 crore till 20 June 2013. This year PE investors have already committed deals worth $837million and some of the large players are reported to have lined up more than $17,000 million for investing in the near future...

To start any business you naturally have to have an idea, a strategy, and some amount of capital to get going. For a

decent real estate business, the asking investment at the start is reasonably high, the gestation period too is long, and other than residential projects, the risk of returns on investment are also high. Hence arranging for extra funds to finance and sustain the business becomes a primary concern.

Where to look for the funds? Well, one instantly available option of project financing is through raising debt from individuals or institutions, which we also term as loan. In this case the creditors or lenders will demand collateral guarantee, which is not always easy to furnish. You can acquire the land through self-financing and then pledge the same to the creditor. But that is usually not possible in the case of smaller start-ups. The entrepreneur is

required to pay an interest on the sum borrowed with a time-bound schedule for repayment. The plus point with debt financing is that the loan does not alter the ownership structure of the company and the lender will not intervene in the day-to-day functioning unless there is a situation of default by the company.

Another option for raising capital to finance real estate projects is through the stock market. This option will mostly benefit businesses, firms and individuals who have already earned a fair degree of reputation in the public domain and hence institutions and common investors will subscribe to their initial public offering. The venture will be subject to regular public reporting and control of stock market regulator. The plus point is that unlike VF or PE funding there is easy liquidity option, no interference of investor in functioning of business, and no effect of external economic upheavals.

OptionsImplicationsExtent

the options in private FundingVenture fund (VF), private equity (PE) investments, angel investors, hedge fund, etc they all have played significant role in driving growth and generating employment in India as also in other countries across the globe. In Europe for example, PE and VF professionals and firms have invested more than €270 billion (approximately `20 lakh crore) in 56 thousand plus companies since year 2000. Record investment deals in 7.5 thousand companies amounting to €71 billion (approx `5.52 lakh crore) took place in 2006 alone, but thereafter things softened up due to the global slump.

The terms venture fund and private equity are often used interchangeably in media as well business discourses even as they are very different in approach. They both recruit former bankers and they both are in the businesses of buying in to shareholding of existing or planned businesses at a low price, helping develop the business over a period of time, and then selling off their stake at a high price as per the negotiated exit clause. However, the two set of investors approach the task from two different directions, rather with two different mindsets. PE first and foremost examines the statistics of the business, determines the level of investment, and then fine-tunes the business strategy and organisation towards achieving the set target. VC on the other hand first assess worth of the idea and organisation, more specifically the proponents of the idea or plan, re-works the HR set-up and investment portfolio, and thereafter formalises the business strategy and financial targets.

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UP-FRONT

Since the middle of the 20th century two new avenues of project financing came to the fore – private equity (PE) and venture fund (VF) – the nature, scale and magnitude of such investments can be broadly divided in to four major phases comprising three cycles of boom and bust occurring till date. PE was initially better known as leveraged buyouts (LBOs).

• Thefirstphase(1946-81)witnessedsmallvolumesofPEinvestments,itwasalearning phase when investing organisations were small and had little knowledge of the task undertaken.

• Thesecondphase(1982-93)sawlargescaleleveragedbuyoutswhichwasfinanced by junk bonds, the boom phase seeing buyout of an US tobacco-food conglomerate RJR Nabisco Inc flowed by a near collapse of the LBO business by early 1990s.

• Thethirdphase(1992-2002)ofprivateequityfundingfollowedtheglobalstockmarket crash resulting from insider trading, the real estate market collapse and the recession of early 1990. Institutionalised PE firms surfaced, and massive funding to IT companies started during this period, also called the Dot-com bubble.

• Thefourthphase(2003-07)sawtheemergenceofverylargePEfirmsliketheBlackstone Group that concluded a sizeable IPO, large scale leveraged buyouts of IT and ITES companies, and eventually bankruptcy of a huge MNCs and several European governments, and a worldwide depression in market sentiments.

EVOLUTION OF PRIVATE EQUITY

Thus we see that PE is an infusion of equity capital by investors in high growth potential companies or projects that they feel are lacking in resources, strategy, technology or expertise. This investment can also be a buyout if the opted equity stake is major. Hence the overall size of PE investment is large, sufficient enough to have some control over the company, which can also be a mature public company. Considering the high level of investment, the PE investor has to ensure that the company or project does not fail, even if it means a considerable wait period.

In contrast, VF is investment on a smaller scale, may come in small instalments, and equity infusion is only meant to support the launch or initial stages of a new project or to support expansion of an existing one. VFs work on the belief that many of the companies they invest in will fail and hence they have to extract the maximum from a handful that will succeed.

There are also the growth equity firms that are somewhere in between VF and PE: they usually tend to invest in mature stage start-ups that have base capital and customers but need funds to further expand their business. We have hedge funds that prefer investing in individual securities that are more tradable and liquid as they want to hold investment for a much shorter period, hence not very suitable to real estate business, except in conditions of emergency.

In spite of the economic slowdown, Indian real estate continues to provide high ROI, being as high as 50 per cent per annum in select centres of Delhi, Noida and Gurgaon. As a result we have investment companies who we can term as NRI Fund, that connect with worldwide NRIs who wish to buy, sell and manage real estate properties in major Indian cities. One such company is San Francisco based Aukeva. These companies develop strategic partnerships with top realtors not just in India but also in the country of origin and provide a gateway for Indian investors seeking real estate property in foreign countries.

Even domestic high net-worth individuals (HNIs) are now pooling resources in creditable real estate private equity (REPE) funds to cash

Private Equity Investment in India Real Estate

in on this lucrative sector. These funds have a six to seven years lifespan. Leading operators of such funds include Kotak, HDFC, ICICI, ILFS, Anand Rathi, and so on. Latest entrant is the JLL segregated funds group that has raised `101 crore in the very first haul of its `300 crore residential opportunities fund-I. Then we have fund of funds, firms that invest in other PE firms, hedge funds, mutual funds, etc rather than investing directly in any security or company.

© Estate Avenues Source: Venture Intelligence

PE can also support start-ups depending on nature of project,

like the slum rehabilitation scheme in Mumbai, where in the initial 2-3 years huge payout in the form of of rent to temporarily

displaced persons is involved.

Rajnish ChangraniPrincipal-Investments, Research & Portfolio Advisory, Red Fort Capital

$ MillionNo.of Deals

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When and why would developers want to avail PE or VF investments? Rajnish Changrani, Principal-investments, research & portfolio advisory and founding member of Red Fort Capital says “It is more an issue concerned with the nature and stage of the real estate project: the principal project cost, in most cases where it is a prime location, is on acquisition of land and developers will want the PE to come in at this stage. Investors on the other hand would want the developer to bear the entire cost in land precisely because land entitlements, fragmented nature of holdings, and uncertain socio-legal issues surrounding land are too risky a proposition to be in.”

Why would the developer need PE investment once he has secured the land? “Often developers have the land but have little idea how to move forward, here the need for hand-holding arises: they may need advise on deciding upon and finalising the development project, on getting the necessary

clearances, on executing the construction plan, and finally on marketing the same,” adds Changrani, who has evaluated and cleared investments worth $750 million (approx `4,479.8 crore) since 2001, covering his current and earlier stints at Red Fort Capital and Trigran Investments, a Chicago based hedge fund.

But VF/PE investors are known to support start-up ventures as well, even in real estate. “Yes, as I mentioned earlier, based on nature of project, private equity can also support start-ups in real estate,” agrees Changrani: “Take the case of slum rehabilitation scheme (SRS) in Mumbai and other cities where as per directives of the regulatory authority (SRA) the developer has to arrange alternate accommodation for original residents, pay rent for the space till completion of project, which may be at 2-3 years – here huge initial investment is required and private equity have readily participated in these.”

When asked as to the difference in nature of venture capital and private

equity funding, Changrani said a VC could start

by investing say `10 crore in SRS type of scheme, which could be a small percentage of the project share, but will exit only after the valuation exceeds ten times the principal money. On the other

hand, a private equity will invest, say a sizeable `100 crore in similar project and as per exit terms, could exit when the valuation is just two to three times higher.

equity in indian real estateWith the sheen for real estate having faded in US and other European markets in early 21st century, opportunities having been near-exhausted in the Middle-East and with access availed to China and other south-east Asian countries, real estate financiers in the developed world mounted pressure on the Indian establishment to open doors to foreign direct investment (FDI) in this sector. Barriers were lifted in 2005 and the very next year in 2006 private equity investment in Indian real estate mounted to $2,077 million (approx.`12,000 crore) coming from a total of 87 deals of which 63 declared the value. This was followed by a total of 202 deals in 2007, 147 of the declared ones worth $9,949 million (approx. `58,000 crore).

This was a phase of excessive and over-enthusiastic hype in India’s property market and the buoyancy kept on till the unfolding of global meltdown in later part of 2008. This year a total of 150 private equity deals were signed and investment to the tune of $6,481 (approx. `37,500 crore) flowed from 113 declared projects. As per data from Venture Intelligence, a research service focussed on private equity and M&A, the top five PE deals in Indian real estate happened in the hype years 2007 and 2008.

The largest block of private equity investment came from the London based $77.7 billion Ashmore Group Plc -- $550 million real estate funding in year 2008 to Gurgaon based Sweta EstatesPvt Ltd promoted by Amarjit Bakshi and Kanwaljit Singh Bakshi. The second largest funding block of $450 million again in same year came from New York based Symphony Capital LLC to India’s largest real estate company DLF. The third largest equity investment block of $425 million in the previous year from Deutche Bank was attracted by Mumbai based Lodha Group, and another two separate blocks of $400 million each were cornered by DLF Assets and the Mumbai based Shapoorji Pallonji Group.

The global meltdown in 2008 caused © Estate Avenues Source: Venture Intelligence

The largest block of private equity investment came from London based $77.7 billion company Ashmore Group Plc: in 2008 funded $550 million to Gurgaon based Sweta Estates

UP-FRONT

The Real Estate (Regulation & Development) Bill 2013

works both ways: while it aims to hold the developers accountable, it also looks to ensure that the buyers do not default in making payments.

Anuj PuriChairman & CountryHead Jones Lang Lasalle India

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sizeable losses to foreign investors in Indian real-estate and PE investment dropped to $1,145 in 2009. Losses were not solely due to the meltdown. But many of those investments soured as developers used the money to buy land while failing to complete the construction on schedule. Some projects that did materialise were confronted with an uncertain economic environment on account of which these properties could not sell on expected lines. Meanwhile, India’s initial public offering market lost its lustre, depriving many of the private-equity firms of the quick exit strategy they had expected. There was some sign of recovery in 2011 but that too fizzled out the in 2012 even as there were a couple of sizeable deals in the past couple of years.

As per reports, some of the major PE deals cited above exited with a less than expected yet reasonable appreciation: Deutsche Bank received an additional $90million (21%) from Lodha Group while DLF paid additional $100 million (25%) to DE Shaw in 2009. Some others, especially domestic PE investors have made rich haul even in depressed conditions. HDFC’s Griha Investments fund had put $46.62 million in Manyata Promoters in 2006 and exited at $119 million in 2011, more than one and half times ROI in 5 years. Kotak RE fund invested just $21.13 million in Peepal Tree Properties in 2006 and exited at $115.36 million in 2011, in this case more than five times returns in five years!

There were also several PE investors who incurred heavy losses in real estate investment precisely because they brought land at excessively inflated prices. Experts feel that expectation of return was somewhat unrealistic during the hype years but now things are settling at more realistic and realizable levels.

impact of real estate (regulation & development) bill 2013Commenting on the RE Regulation Bill Anuj Puri, chairman & country head-Jones Lang Lasalle India, said it is good that the bill applies on all projects over 4,000 sq metres in size and hence seeks to cover all major private residential developments across the country.

What is lacking in the Bill? “The

Bill does not seem to be inclusive in its approach towards developers,” says Anuj Puri and adds: “there is no any relief to them in terms of getting through the cumbersome approvals and permissions process in an expeditious manner, like providing for a single-window clearance to cut through the red tape.”

Rajnish Changrani, of Red Fort Capital says saddest part is the provision for maintaining 70 per cent of the investment cost in escrow account, which is just not possible, especially when you consider prime locations in metropolitan cities where 70 per cent has already been spent on acquiring land: “Ideally speaking, the government ought to have included only the construction and development cost with the exclusion of land cost when defining investment cost.”

Anuj Puri however feels that this 70 per cent or less to be retained in a separate escrow account would largely consist of the monies collected from the allottees and will ensure that the money is utilized only towards the particular project and cannot be diverted.

there is renewed interest in indian real estateEven after subdued economic sentiments and high interest regime blocking several projects, the above cited instances of high returns on investment at exit has once again ignited private equity investor interest in Indian real estate. The trend seems to have taken a positive turn yet again but only after investors have studied the market in more details and re-formulated their strategy accordingly. Private equity firm Blackstone Fund Services India ltd invested $200 million (approx.`1,000 crore) last year into a joint venture with Bangalore based Manyata Embassy Group that develops and operates commercial park. This year too Blackstone and Singapore based Temasek Holdings are in separate talks with Sriram Ventures to invest $200. Another major player Morgan Stanley (MSREI), which had invested approximately $660 million in Indian real estate till last year but suspended investment since 2008, renewed its commitments with an investment of $90 million (`540 crore) in a residential complex joint venture of Mumbai based Sheth Developers. MSREI plans to invest another $200 million by the year end.

HDFC property fund is reported to have raised $500 million, Motilal Oswal PE has collected `500 million, international property consultant JLL has announced a `300 crore property fund, and US-based Portman Holdings has earmarked $300 million for investing in Indian real estate. The union and state governments are also providing huge opportunities for developers and private equity investors in the subsidised housing schemes for urban poor and for slum rehabilitation. It is a general belief that the Indian economy should be able to get out of the slumber around 2014, and real estate would be amongst the largest beneficiaries of the emerging scenario! Ea

PE and VF investors approach the task of financing deals from two different directions, rather with two different mindsets.

The Regulation Bill is a necessity but will succeed only if it is

synchronized to encompass all 4 major stakeholders – the developer, the financial institution, concerned government authorities, and the

end customer.”

T Chitty BabuChairman and CEO-Akshaya Pvt Ltd

UP-FRONT

“The Real Estate Regulation and Development Bill 2013 is

in the best interest of the home buyer and developers who are committed to delivering quality projects. It will reinforce the faith of the customers

and help curb malpractices in the Business

Ananta Singh RaghuvanshiDirector-Sales & Marketing, DLF India Ltd

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HOmE dEcOR

Bring in the warmth of colours this monsoon

Incorporate warm colours in your spaces with reds, yellows, and oranges in a range of hues. Since this is not the ideal time to resort to painting or wall-papering, bring in colours through curtains, artwork, lamps and lamp shades, upholstery, and accessories. For curtains, go for a combination of heavy and light so that you can enjoy the weather and shut out the cold. So, you can combine a white sheer curtain with a heavier velvet, damask, taffeta, or brocade one that will look beautiful by providing contrasting textures and serve a dual purpose.

by Yukti Talwar

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HOmE dEcOR

monsoons are always welcome as they give relief from the careless summers but with

monsoon you also get damaged home, smelly interiors and numerous diseases due to bacterial and fungal growth. But if you are monsoon ready then you can welcome this rainy season with open arms and can cherish every moment without any hassle.

Everyone loves rain but does your home love it too? We don’t think so. We never thought of taking precaution before the arrival of rain and ends up having numerous problems like moisten of wall,s smelly interiors, fungal design, coming water from the roof and many others. Due to moisture in the air our wooden furniture, clothes, household accessories etc all go for a waste because we are not ready with the precautions.

Most of us enjoy getting drenched in the rain once in a while but after a while we crave for the warmth of our home. What better way to burst the monsoon gloom than doing up your home in bright monsoon decor colors so put away your furnishings with dark colours and let whatever light that enters the home to be maximized with reflective colours. This monsoon season suggests few decorating ideas to make your home look more vibrant and livable.

Simple smart steps go a long way in making you a perfect home maker. With monsoons round the corner it is time to preparation for a neat, clean& microbial free home. Monsoon not just gets images of creaking furniture, smelly cupboards or damp sofas. Some simple

tips given below can help you counter these problems.

Vibrant Coloured Cushions Monsoon is the season of wonderful colours and cool weather so complements your sofa and bed with a range of colourful cushions by @home. The range of cushion covers spans from solid colours like turquoise, purple, pink and green with lovely designs on them. Using these colours your home would get a marvelous appearance . Also one should avoid using dark colours like black and grey as the ambience outside is already dark and using these colours would make the room look gloomy.

Warm and bright linensThe season calls for bright colours to liven up the room. Warm and bright coloured linens by @home can make you feel comfortable and create a harmonious environment. Hues such as oranges and yellow are ideal for the monsoon interior decor as they also give a feeling of dryness. One should use soft pure cotton and other light material fabric linens so that it doesn’t gather too much of a moisture.

light coloured window drapesDuring the monsoon it is advisable to replace your blinds or heavy dark curtains with light drapes so that is compliment the room and the atmosphere outside. Bright coloured and vibrant hues drapes by @home make sure that enough sunlight enters your home and lightens up your mood.

So invest in translucent window drapes or curtains without lining to ensure that there is proper lighting during the damp weather.

Carpet CareYou must have noticed that if you have a carpet in your room then in rainy season that room stinks a bit. This is because the moisture makes the surface of the carpet wet5 and due to the growth

of bacteria and fungus in the carpet it ultimately leads to disgusting smell. Due to growth of bacteria and fungus it also tends to destroy your carpet by raining the whole fabrics.

Roll away that expensive carpet for the monsoon. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open. Invest in bright, multi-colored washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft to the feel as other synthetic fibers but they are very durable, water, static resistant, and offer extremely good value.

Furniture: In rainy season your wooden cupboards and other furniture tend to get these type of because of moisture and which can lead to damaging your clothes and other expensive articles, so in monsoon keep your expensive clothes in metal closer to keep them away from damage. If you have leather furniture make sure that you clean them regularly to eliminate moisture from the surface.

Plants are always great to have around the home. Flowering plants will lend colour and much-needed cheer to spaces. Potted versions of Hibiscus, Anthurium, and Desert Cactus can be placed in corners, among a display of figurines, on a table placed below artwork, a centre table, a window sill, or even beside your bedside table.

So this monsoon decorates your home with different accessories and colours. Ea

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Question: I have executed a sale deed under which I have purchased two properties which are located in two different districts. Where should I get the document registered? Each property will be registered at the respective Tehsil of the district, where the property is located.

Question: I had entered into a lease deed last year. Certain disputes have now arisen with the tenant. However, the tenant contends that the document shall not be admissible in evidence in the courts as it has not been registered, is that correct?Every lease deed for a period of more than 11 months must be registered. In case the lease deed is not registered, the document shall not be admissible in evidence in the court.

Question: I had recently entered into an agreement to sell for buying a plot and had also paid 20% of the total sale price at the time. I am not keen to purchase the plot anymore. However, the seller informs me that the part payment made by me will stand forfeited. Can the seller forfeit such a hefty amount?If the agreement that you have entered with the seller, carries the clause specifying forfeiture in case the full payment has not been made, then the seller can forfeit the amount.

Question: I had purchased a flat in a Rohini Society in 1992. Later in 2000, I was told to pay Rs 35,000 (Total

bank loan was Rs 35 lakh) to clear the bank loan which was availed by some members of the society. The first owner of the house, from whom I had purchased the flat, had not taken loan from the Bank. To clear the Bank loan, the managing committee of the society converted the individual loans into Society name? Can managing committee do this and realized the amount which was not taken against my flat? Where I can lodge the complaint? It is advisable to seek legal advise from a counsel specializing in Society Act. In case you feel the need to lodge a complain, the same can be done at the Economic offences wing of the Delhi Police.

Question: What is the ROI if I invest `1.5 crore in the real estate and which is the best location in Delhi-NCR or Chandigarh Tricity?Delhi NCR has good locations ranging from Noida Expressway to Phase V in Gurgaon for a good Return on Investment.. In Chandigarh Tricity, Panchkula and Mullanpur by far are likely to fetch very good returns.

Question: My native state is Rajasthan and I want to purchase a house somewhere in Shimla or Kasauli? Can an outsider purchase the property in Himachal?An outsider can purchase property in Shimla and Kasauli if the builder has permission under section 118 of the Himachal Pradesh Tenancy and Land Reform Act 1972.

Ms Ananta Singh RaghuvanshiDirector Sales & Marketing, DLF Universal Ltd

Real estate - Q & A

Have property grievances, tell us

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Project

YOUR SEARCH FOR “DREAM HOME”

ENDS HERE

Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale

of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. On the

following pages, we have made efforts to bring crisp information about the upcoming new projects across the country for your ready reference.

For further details, please contact the developer(s) concerns.

UPCOMING NEW PROJECTS

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Whispering HeightsDeveloper: KST GROUP

Location: Sector 88, Faridabad, HaryanaBuilt up area: 1250-2270 sq.ft

Total No. of Towers/ floors: Multiple Floors No. of Units: 66 Units

Expected date of Completion/Possession: Under Construction

Rate: Price on requestType of Units: Apartments

DAC ORODeveloper: DAC Promoter

Location: Anakaputhur, Chennai, TamilnaduBuilt up area: 514-759 sq.ft

Total No. of Towers/ floors:-3 Floors No. of Units:10 Units


Rate: `3,500 - 3,600 per sq.ftType of Units: Apartments

The Meadows @ GokuldhamDeveloper: Pacifica Companies

Location: Sanathal, Ahmedabad, GujaratBuilt up area: 2205-3060 sq.ft

Total No. of Towers/ floors: Independent homes

No. of Units: 3 UnitsExpected date of Completion/Possession:

Under ConstructionRate: Price on request Category of Project: Type of Units: Villas

Silver GardeniaDeveloper: AVIRAT GROUP

Location: Gota, Ahmedabad, GujaratBuilt up area: 1359-1890 sq.ft

Total No. of Towers/ floors: Multiple floorsNo. of Units: 2 Units


Rate: Price on RequestType of Units: Apartments

AHMEDABADAHMEDABAD

Shree Radhey Krishna DhamDeveloper: New Leaf Developers Location: Vrindavan, Mathura, Uttar PradeshBuilt up area: 525 sq.ftTotal No. of Towers/ floors: 2-3 floorsNo. of Units: 30unitsExpected date of Completion/Possession: Under ConstructionRate: `1,700 - 2,100 per sq.ftType of Units: Affordable Apartments

Manor One Developer: Kashish Developers LimitedLocation: Sector 111, Dwarka Expressway Gurgaon, Gurgaon, HaryanaBuilt up area: 895-5600 sq.ftTotal No. of Towers/ floors: MultipleNo. of Units: 57 Units Expected date of Completion/Possession: Under ConstructionRate: `8,000 - 8,800 per sq.ftType of Units: Apartments

CHENNAi JAiPUR

Royal CastleDeveloper: Kotecha Group and CKD Builder and Developers.Location: Gandhi Path, Vaishali Nagar, Jaipur Built up area: 1030-1820 sq.ftTotal No. of Towers/ floors: Multiple FloorsNo. of Units: 35 units Expected date of Completion/Possession: Under ConstructionRate: Price on RequestType of Units: Apartments

TVH Ouranya BayDeveloper: True Value Homes India Pvt. Ltd.Location: Padur, Chennai, TamilnaduBuilt up area: 2084 sq.ftTotal No. of Towers/ floors: Multiple floorsNo. of Units: 52 UnitsExpected date of Completion/Possession: Under ConstructionRate: Price on requestType of Units: Apartments

Project

GURGOAN VRiNDAVAN / MATHURA

FARiDABAD CHENNAi

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DLF Bellagreens ProjectDeveloper: DLF

Location: Akshaya Nagar, Begur Hobli, Bannerghatta, Bangalore, Karnataka

Built up area: 3222-4598 sq.ftTotal No. of Towers/ floors: Villas


Rate: Price on RequestCategory of Project: Luxury

Type of Units: Villas

Brigade PalmgroveDeveloper: Brigade Group

Location: Bogadi, Mysore, KarnatakaBuilt up area: 4070-4750 sq.ft

Total No. of Towers/ floors: VillasNo. of Units: 3 Units


Rate: `2.1 CroresCategory of Project: Luxury

Type of Units: Villas

KARNATAKA KARNATAKA

Ansal CityDeveloper: Ansal Buildwell

Location: Puthiyakavu, Thripunithura, Ernakulam, Kerala

Built up area: 985-3981 sq.ftTotal No. of Towers/ floors: Multiple floors


Under ConstructionRate per sq ft: `32.51 Lacs - 1.19Crores

(`2,800 - 3,500 per sq.ft)Type of Units: Apartments

AquacityDeveloper: Shhwas Homes

Location: Cochin, Ernakulam, KeralaBuilt up area: 899-2057 sq.ft

Total No. of Towers/ floors: Multiple FloorsNo. of Units: 25 Units


Rate: `3,000 - 3,100 per sq.ftCategory of Project: Luxury

Type of Units: ApartmentsKERALA COCHiN

Project

Habitat CrestDeveloper: HABITAT VENTURESLocation: Whitefield, Bangalore, KarnatakaBuilt up area: 2862-3252 sq.ftTotal No. of Towers/ floors: Multiple FloorsNo. of Units: 5 UnitsExpected date of Completion/Possession: Under ConstructionRate per sq ft: `1.52 Crores - 1.97Crores (`5,239 - 6,429 per sq.ft)Category of Project: LuxuryType of Units: Apartments

Purva HighlandDeveloper: Puravankara GroupLocation: Kanakpura Road, Bangalore, KarnatakaBuilt up area: 1339-1843 Total No. of Towers/ floors: Multiple FloorsExpected date of Completion/Possession: Under ConstructionRate per sq ft: `61.25 Lacs - 68.17 LacsCategory of Project: LuxuryType of Units: Apartments

BANGALORE BANGALORE

Necklace PrideDeveloper: Salarpuria Sattva GroupLocation: Hyderabad, Andhra PradeshBuilt up area: 1280-1884 sq.ft Total No. of Towers/ floors: Multiple FloorsNo. of Units: 322 UnitsExpected date of Completion/Possession: Under ConstructionRate: `4,890 per sq.ftType of Units: Apartments

Symphony Park HomesDeveloper: SafewayLocation: Hyderabad, Andhra PradeshBuilt up area: 2030 sq.ftTotal No. of Towers/ floors: Independent Villas No. of Units: 250 UnitsExpected date of Completion/Possession: Under ConstructionRate: `51 Lacs - 63 LacsCategory of Project: Middle Segment Type of Units: Villas HyDERABAD HyDERABAD

106


Samraat TropicanoDeveloper: Samraat Group

Location: Gangapur Road, Nashik, Maharashtra

Built up area: 985-1780 Sq FeetTotal No. of Towers/ floors: 12 Floors


Under ConstructionRate: Price on request

Type of Units: Apartments

Shree Siddheshwar NagarDeveloper: Shree Siddheshwar

Developer & BuilderLocation: Ring Road, Nagpur, Maharashtra

Built up area: 925-1125 Sq FeetTotal No. of Towers/ floors: Multiple floors


Under ConstructionRate: `22 Lacs - 31 Lacs


NAGPURNASHiK

Nirmal Sports CityDeveloper: Nirmal Lifestyle LimitedLocation: Thane West, Thane, MaharashtraBuilt up area: 1152-2205 Sq FeetTotal No. of Towers/ floors – Multiple FloorsExpected date of Completion/Possession: Under ConstructionRate: `1.39 Crores - 3.15CroresCategory of Project: LuxuryType of Units: Apartments

Unitech HarmonyDeveloper: Unitech GroupLocation: New Town, Kolkata, West BengalBuilt up area: 1574-1893 Sq FeetTotal No. of Towers/ floors – Multiple FloorsNo. of Units – 127 UnitsExpected date of Completion/Possession: Under ConstructionRate per sq ft: `75.47 Lacs - 90.77 Lacs (`4,795 per sq.ft)Category of Project: Luxury Type of Units: ApartmentsKOLKATA THANE

Dream ParkDeveloper: Space India Builders

& DevelopersLocation: Mumbai, Maharashtra

Built up area: 390-920 Sq FeetTotal No. of Towers/ floors: Multiple Floors


Under ConstructionRate: `2,500 per sq.ft


Juhi ResidencyDeveloper: Juhi Developers

Location: Navi Mumbai, MaharashtraBuilt up area: 1206-1333 sq.ft

Total No. of Towers/ floors: 12 Floors No. of Units: 42 Units

Expected date of Completion/Possession: Near Completion

Rate: `75 Lacs - 80 LacsCategory of Project: Affordable Housing

Type of Units: ApartmentsMUMBAi NAVi MUMBAi

TAMiLNADU PONDiCHERRy

Pelican BelfortDeveloper: Pelican GroupLocation: No.1, Pelican Belfort, Pinnachikuppam Road, Pinnachikuppam Road, Bahour, Pondicherry, PondicherryBuilt up area: 716-1743 Sq FeetTotal No. of Towers/ floors – VillasExpected date of Completion/Possession: Under ConstructionRate: Price on requestType of Units: Villas

Bharath SquaressDeveloper: Bharat ConstructionLocation: 9th Cross East, Thillainagar, Tiruchirappalli, TamilnaduBuilt up area: Bharath 515-1330 Sq Feet Total No. of Towers/ floors – Multiple FloorsNo. of Units – 20 UnitsExpected date of Completion/Possession: Under ConstructionRate: `5,500 per sq.ftType of Units: Apartments

Project

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iN-Land EspanaDeveloper: In Land

Location: Mangalore, Karnataka Built up area: 1160-1785 sq.ft


Expected date of Completion/Possession: Near To completion

Rate: `4,300 per sq.ftType of Units: Apartments

Vrindhavan ApartmentsDeveloper: Germanus Properties Pvt. Ltd.

Location: Madurai, TamilnaduBuilt up area: 1245-1380 sq.ft


Expected date of Completion/Possession: Near To Completion

Rate: `4,200 per sq.ft Type of Units: Apartments

MANGALORE MADURAi

G9 projectsDeveloper: G 9 ProjectsLocation: Behind Infosys, Belagola, Mysore, KarnatakaBuilt up area: 1200-2000 sq.ftTotal No. of Towers/ floors: Row HouseNo. of Units: 300 UnitsExpected date of Completion/Possession: Rate: `31 Lacs - 55 LacsCategory of Project: Afordable Homes Type of Units: Row Houses

Bhawani ComplexDeveloper: DevsarLocation: Nagpur, MaharashtraBuilt up area: 905-1111 sq.ftTotal No. of Towers/ floors: 2-3 FloorsNo. of Units: 4 UnitsExpected date of Completion/Possession: Under ConstructionRate: `3,300 per sq.ftCategory of Project: LuxuryType of Units: Apartments

NAGPUR MySORE

Premier RedwoodDeveloper: Premier Properties

Location: Lalitha Mahal Road, Mysore, Karnataka

Built up area: 1338-2306 sq.ftTotal No. of Towers/ floors: 4 Floors


Under ConstructionRate: `5,000 per sq.ft


in-Land WindsorDeveloper: In Land

Location: Airport Road, Maryhill, Mangalore, Karnataka

Built up area: 1360-1950 sq.ftTotal No. of Towers/ floors: Multiple floors


Under ConstructionRate: `4,500 - 4,750 per sq.ft

Category of Project: LuxuryType of Units: ApartmentsMySORE MANGALORE

iN-Land EchelonDeveloper: In LandLocation: Ballabgarh, Mangalore, KarnatakaBuilt up area: 1956-2183 sq.ftTotal No. of Towers/ floors: 7 FloorsNo. of Units: 10 UnitsExpected date of Completion/Possession: Under ConstructionRate: `4,500 per sq.ftType of Units: Apartments

ChiragDeveloper: JPS Infra DevelopersLocation: Mangalore, KarnatakaBuilt up area: 828-1296 sq.ft Total No. of Towers/ floors: 5 Floors No. of Units: 29 UnitsExpected date of Completion/Possession: Under ConstructionRate: `3,500 per sq.ftType of Units: Apartments

MANGALORE MANGALORE

Project

108


EARTH iCONiCDeveloper:Earth Group Of Companies

Location: Sector-71, GurgaonBuilt up area: 450 – 650 sq.ft

Total No. of Towers/ floors: 2 TowersExpected date of Completion/Possession:

Under ConstructionRate: Office: 7500 sq.ft Studio Apartment: 9750

Sq Feet, Shop: 13500 sq.ftType of Units: Commercial As well as

residential

Era Redwood ResidencyDeveloper: Era Landmarks

Location: sector 78, FaridabadTotal project Area: 10.50 Acres

Build up area: 1,200sq. ft. (2BHK) & 1,470 sq. ft (3BHK)

No of units: 700 unitsDate of construction: Under construction

Rate: `3,500 per sq.ftCategory of project: Residential

Type of units: 2BHK & 3BHK

imperia TowerDeveloper: BNB Group Location: Gurgaon, HaryanaBuilt up area: 3012-5467 sq.ftTotal No. of Towers/ floors: Multiple FloorsNo. of Units: 6 UnitsExpected date of Completion/Possession: Under ConstructionRate: `9,500 per sq.ftCategory of Project: LuxuryType of Units: Apartments

KW SrishtiDeveloper: K World GroupLocation: Raj Nagar EXTN, Ghaziabad, Uttar Pradesh Built up area: 950-2650 sq.ftTotal No. of Towers/ floors: 12 - 14 FloorsNo. of Units: 897 UnitsExpected date of Completion/Possession: Under ConstructionRate: `2,400 - 2,975 per sq.ftType of Units: Apartments

GHAziABAD GURGAON

GURGAON

Earth CopiaDeveloper: Earth Group Of CompaniesLocation: Dwarka Expressway, Sector-112, GurgoanBuilt up area: 1235 – 2592 sq.ftTotal No. of Towers/ floors:10 Towers and G+14 FloorsNo. of Units – 550 UnitsExpected date of Completion/Possession: Under ConstructionRate: 6500 per sq.ftType of Units: ApartmentsGURGAON

KST Metropolitan SuitesDeveloper: KST Infrastructures Ltd.

Location: Sector 89, Faridabad, HaryanaBuilt up area: 350-550 sq.ft



Rate: Price on requestType of Units: Apartments

PBEL CityDeveloper: PBEL Property Development

Location: Hyderabad, Andhra PradeshBuilt up area: 1160-1788 sq.ft


Expected date of Completion/Possession: Near to Completion

Rate: `3,250 - 3,450 per sq.ftType of Units: Apartments

FARiDABAD HyDERABAD

HyDERABAD

SMR Vinay CapitolDeveloper: SMR HoldingLocation: Balnagar, Hyderabad, Andhra PradeshBuilt up area: 540-3125 sq.ftNo. of Units: 9 UnitsExpected date of Completion/Possession: Near to Completion Rate: Price on requestType of Units: Commercial Building

Project

FARiDABAD

Project

Project

114


by Naresh Singal,

vaastu

The ultimate aim behind setting up any business is to earn profit. If you see, this is your business or job, which is actually the backbone for your family. That’s the reason we put our best in

our job or business throughout our life. To make our business profit-friendly, we should not ignore the vaastu principles.

With increase in population, the land scarcity for residential and commercial activities is building up very fast. Hence, multi-storied buildings for commercial activities are being constructed and the numbers of such complexes are increasing fast day by day. With increasing production, the business houses are opening their offices and showrooms in numbers for marketing their products.

While constructing of multi-storied complexes, most of the vaastu principles cannot be followed. Due to high price, most of the value for the price is taken and maximum utilization of space is done. Even doing so, if the rules laid in Vaastu are followed while construction of commercial complex they gain fame and are sold quickly and the business or offices operating for such buildings become profitable.

Vaastu principles not only make your venture profitable, but they safeguard it in the adverse circumstances as well.

Here we would like to mention, though basics for domestic and commercial vaastu are same, still there are major difference between both. When we go for the commercial vaastu, we have to consider the nature of business/commercial activity to be done in the building. A professional vaastu consultant shouldn’t ignore this. Anyway, here are some basic rules which can be applied in any kind of commercial building or office space.

Rectangular plot of side ratio between1:1 to 1:2 are best �suited for the purpose. Construction on such plots is auspicious and is beneficial not only to the owners but also to the occupants who rent or buy the commercial units in such constructions. There should be enough space left around the building. �More open space towards North and East side of the Building as compared to south and west sides.Lawn in north side open space and parking in east side is �auspicious.Slope of the land should be from south to North and West to �East.As far as possible the main gate should never be in South- �west zone of the plot. The height of the main door to the building should be more than the entry doors of individual unites in the complex.Any underground water storage or tube-well may be �constructed either in North or North-East zone of the plot. Whereas, overhead water storage tanks may be put in north-west.Waste water drained out of the building and also the rain �water should flow towards the north or east directions.If the trees are used in horticulture, tall and dense trees �should not be near the building. They should be such planted that their shadow does not drop on the building till 4 pm in evening.Every floor should be constructed in such a manner that �fresh air should flow freely in every room. There should be provision of day light to enter in every room of the building. If attached toilet is to be provided with any room in the �complex, it should be in the south portion of the room.If store room is required along with the office, it should be in �the south or west part of the room.It is advisable to construct stairs in the south or west zone �of the main building. Stairs in north or east portion of the building are not auspicious.

If the above rules followed properly, they will prove profitable for both i.e. builder and the business concerns operating from there. Ea

Vaastu makes your business profit-friendly

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