Draft BOOK

Real Estate Placemakers in India for Non Resident Indians : Transformation of Living Culture

A Thesis of Master Degree by A Tesi di Laurea Specialistica di Amir Ebn Sharif

Thesis Supervisor Tesi Supervisore Prof. Giovanni La Varra

Tesi di Laurea Specialistica

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Facolta’ di Architettura e Societa’

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Politecnico di Milano

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A.A - 2010

intentionally left blank

CONTENTS Abstract

4

Chapter I

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Identity Card

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List of top Real Estate developers in India History First Point NRI (Non Resident Indian) NRI Map of Return Push and Pull factor

6 8 9 11 12 16

Chapter II

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Real Estate Actors

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Facilities & Amenities that attract NRI to Invest Interior & Exterior Amenities: A Comparative Analysis

18 20

Chapter III

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Architecture Matters

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Building Form/Type/Style, Architects & Consultants, Construction Qualities Supporting Infrastructure

22 24

Index Images Diagrams

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32

Bibliography

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Credits

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ABSTRACT Habitation is one of the primary needs of human being. For a better dwelling place, people roam across the world, gain knowledge, experiences and ofcourse earn money. Not in every civil state, the government can provide sufficient dwelling place to its citizen. The private sector plays a vital role in this regard.

For a better lifestyle people from developing nation change their native land and move towards the most developed nation in the world. During this process they adopt the new culture, lifestyle, rituals from that nation. India is a developing nation in the world and it has quite a big number of skilled and unskilled immigrants in developing nations like USA, Canada, UK, Australia and in the Middle east. Those non resident Indians posses a better lifestyle in their new place than that of their origin.

In the recent past, a new trend has been started which is named as reverse migration. That is, the non resident Indians are going back to their native land after spending a reasonable period of time in abroad. This thing is a fact because of new opportunities created by the government of India with the help of a change in socio-economic condition over the last decade. Non resident Indians are looking for a new lifestyle in the very traditional context of their native land.

Real estate players in Indian market grab this opportunity to play a vital role for the placement of nonresident Indians in their native land. The new adopted lifestyle of Indians boosts the developers to provide such life Indian context. For this consequence many global real estate players have found their keen interest to come into the real estate market of India. Their interventions with the contribution of famous international architects in India have made a significant impact to draw the map of return.

The analytical part of this research paper was aimed to find out the evitable points behind those causes. Methodologically, the resources in internet were the base of the analysis. To make a rational judgment, the newspaper article, online blog, and user feedback were taken into account. However, it was critical analysis to find the key actors for tracing the new map of return for the non resident Indians where architecture matters as culture.

Amir Ebn Sharif Milan, 4th December, 2011

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Chapter I Identity Card

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Methods

This research is done for a thesis of laurea specialistica in architecture and urban landscape at Politecnico di Milano, Italy (A.A_ 2010/2011). As a part of its international program, all of the contents, reviews and discussions are conducted in English. Therefore, any related elements during the process of this research (including the non-English websites, online journals) automatically will not be reviewed or put aside from the categorization.

The division of the chapters and sub-chapters on this book are at the same time the steps of methods to do this research.

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List of top Real Estate Developers in India in alphabetical order

AnsalProperties DLF Emaar-MGF HDIL India Bulls Real Estate K. Raheja Corporation Parsvnath Developers Shapoorji Pallonji & Co Sobha Developers Ltd TATA Housing Development Co. Ltd. Unitech

07

A brief history

EMAAR MGF

_History

_First Point

Emaar Properties, based in the United Arab Emirates, is a

The Company commenced operations in India in February 2005

Public Joint Stock Company (PJSC) listed on the Dubai

and is into real estate development with a pan-India presence

Financial Market. Established in 1997 with an initial paid-up

and operations spanning all key segments of the Indian real

capital of AED 1 bn, Emaar Properties is currently the Persian

estate industry, namely the residential, commercial, retail and

Gulf region's largest land and real estate developer. With over

hospitality sectors. The Company's operations encompass

60 companies, Emaar's activities include property investment

various aspects of real estate development, such as land

and development, property management services, education,

identification and acquisition, project planning, designing,

healthcare, retail and hospitality sectors, as well as investing in

marketing and execution. At present, its focus is on the

financial service providers. In 2007 the government of Dubai

development of residential projects in Delhi and elsewhere in

through the Investment Corporation of Dubai took a 32% equity

the NCR, Mohali, Hyderabad, Chennai and other key Indian

stake in Emaar by exchanging land for 28 billion AED worth of

cities.

stock.

Emaar MGF Land Limited is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Limited of India. Emaar is one of the world's leading real estate companies, having developed approximately 89 million square feet of real estate across residential, commercial and other business segments and with operations in 14 countries. MGF has established itself as one of the key players in retail real estate development in Northern India and has delivered approximately 2 million square feet of retail space.

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Timeline of Emaar-MGF Properties MGF Developments Ltd. & EMAAR Properties merged together in India and formed Emaar MGF

EMAAR Properties listed as public joint stock company in UAE

2007

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

2006

Commissioned for constructing ‘Commonwealth Games 2010’ Village in Delhi

MGF Developments Ltd. started its journey in India

Factors that attract for Investing in India non resident indians (NRI)

€ $ £

forex

As Foreign Direct Investment(FDI) _Starting from a baseline of less than USD 1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010-2012. _As per the data, the sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and

events

XIX Commonwealth Games, Delhi 2010

facilities

Commonwealth Games Village in Delhi

UNCTAD_United Nations Conference on Trade and Development

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Non Resident Indian (NRI)

An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with nonresident Indian citizens (NRIs) for the purpose of certain facilities.

non resident

mapping indians worldwide 10

NRI population in the world

_Map _NRI Population (approx) _Currency

_Map _NRI Population (approx) _Currency

USA

Europe

_Map _NRI Population (approx) _Currency

UK

_Map _NRI Population (approx) _Currency

Middle East

_Map _NRI Population (approx) _Currency

Australia

€ $ £

11

NRI presence in the world

Middle East

Asia - Pacific

Africa

o Saudi Arabia 1,400,000

o Hong Kong S.A.R. 35,000

o South Africa 1,200,000

o United Arab Emirates 1,200,000

o Malaysia 2,300,000

o Mauritius 800,000

o Kuwait 500,000

o Singapore 400,000

o Reunion 250,000

o Oman 350,000

o Philippines 125,000

o Kenya 70,000

o Qatar 175,000

o Uganda 60,000

o Bahrain 140,000

o Tanzania 50,000

o Yemen 100,000

South America

o Madagascar 30,000

o Jordan 4,100

o Guyana 326,782

o Mozambique 21,000

o Suriname 162,113

o Zambia 20,000

o Trinidad 473,735

o Zimbabwe 20,000

Europe

North America

Australia 150,000

o United Kingdom 1,500,000

o United States 2,500,000

o Netherlands 300,000

o Canada 800,000

Fiji 350,000

o France 70,000 New Zealand 70,000

Report dated 21/04/2011

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Going back to India

Elements that attract NRI to come back to their root

NRI from all over the world

Diagram_1

Good governance Social Cause

Social Security Pull factor Tax Rebate by govt. of India

Economic Cause

Foreign Direct Invest (FDI)

Investment Opportunity Fixed/Immovable Asset

Residence

Retail

that attract NRI people to invest

Fixed Asset

Commercial

Residence

Land/Plot

In our research, we have focused on residential properties that are attracted by NRI people. Real Estate developers like EMAAR MGF construct units focusing on following key amenities that are well known

by NRI as they are used to enjoy those amenities while residing abroad.

Facilities of Residential Properties

Diagram_2

Outdoor Spaces & Amenities > Courtyard > Lawn > Golf Course

Indoor Spaces > Kitchen > Rest/Wash Room Indoor Amenities > Pool Club > Bowling track > Swimming Pool > Gymnasium

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Chapter II Real Estate as Actors

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Facilities and amenities that attract NRI to invest in RE properties

The NRI people who spend quite a longer period in far east prefer their new life in India as it was in abroad. So, they generally look for those facilities they have enjoyed in their abroad life.

Here, we will see how the real estate player Emaar MGF attract the NRI by providing those facilities in their residential properties.

In our analysis, we will try to figure out _What they are providing to attract NRI in Indian RE market

So, In our research we have found that the key areas that Emaar MGF has emphasized are: _Outdoor Space _Indoor Space

Outdoor space around the residential properties can be categorized as _Courtyard _Open Green Lawn _Mini Golf Course

Indoor spaces are categorized as _Living Room _Open Kitchen with Dining _Health related facilities like Gymnasium, Pool/Snooker club

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Diagram_2

A very popular outdoor game in western countries. This game is not so popular among Indians. But NRI adopt this game in their life in abroad.

Emaar-MGF has kept the provision of golf course in their designed gated community targeting the NRIs.

Formal courtyard space is well appreciated outdoor space in western countries. Designed landscape along with outdoor seating, street light features add values for Emaar-MGF projects to attract NRI to buy their new address in India.

A far eastern cultural space, mostly American. Emaar- MGF is providing such space in their ‘Villa’ projects

Golf C ou rse

Op en

Gr ee

outdoor space

n La

C

r ou

tyard

wn Synthesis of Outdoor Spaces

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Diagram_2

A far eastern cultural space, mostly American. Emaar- MGF is providing such space in their ‘Villa’ projects

g

Sp

ace dining

Modern kitchen design with breakfast table.

This lifestyle has changed the way of starting a busy working day among NRI in western world. They have become used to cook and eat in a same place to save their time in week days.

Liv i

n

Fully furnished and well decorated living, dining space with western theme interior finish, lighting create an ambience of modern living style.

Livi ng Sp a

billiard

Hea lth

F ac

ies ili t

spa

ce

formal living

indoor space

en Kitch en p O

Synthesis of Indoor Spaces

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Elements that attract NRI to come back to their root Outdoor Spaces & Amenities |

courtyard a comparative analysis

lawn golf course

Traditional Indian Housing

arannya housing project, India 1982

traditional courtyard space which has the influence of typical indian daily lifestyle

Proposed masterplan by EmaarMGF proposed courtyard space which has a design influence from far west in terms of design elements, vegetation

Synthesis of Outdoor Spaces

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courtyard lawn golf course Traditional Outdoor Spaces as Lawn, Park

Proposed Outdoor Space by EmaarMGF

_Proposed green Lawn/Park in gated community _More formal in nature, design and function _Formal landscape generates ordered space like pedestrian way, vehicular way etc.

_Traditional green open space around homestead. _Mostly used for recreation, playground for children _A bit informal outdoor space _Also used for some religious occasion like ‘Puja’

_Formal outdoor space as lawn _Design inspiration from American villas. _Non Resident Indians (NRI) who use to stay in USA are the main target group for this kind of residential projects in India. _NRI have found their interest in these type of living style

Children playground

Synthesis of Outdoor Spaces

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courtyard

Famous Outdoor Sports of Indians

lawn golf course

Emaar-MGF Proposed Golf Course along with Residential Community

The game of Cricket is called the religion for the Indians. In urban life, people used to play cricket on street, empty pockets in neighborhood, big play field anywhere they get flat piece of land.

Due to long stay in abroad, the NRIs get used to play golf in their leisure period as cricket isn’t famous in abroad.

Golf is a famous American outdoor game for Non Resident Indians.

So, while targeting the NRI, real estate player like Emaar-MGF has considered the space for playing golf which can enrich the value of the property to the NRI.

Golf course infront of Villa houses which are also considered as second house of the owner

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courtyard lawn other outdoor sports

Outdoor Swimming Pool in large condominium is an adopted culture in India.

Because of western lifestyle, the NRI get used to it and appreciate to buy an apartment space which has adjacent facilities and access to the swimming pool.

Additional Outdoor Amenities Proposed

The culture of playing Lawn-Tennis is not so popular in India. But this outdoor game is very popular among NRI who stay in Europe, USA because of local cultural flavor .

Emaar-MGF has picked this leisure event to input a new dimension of lifestyle in their residential projects.

This type of intervention attracts NRI, to investfor their future home in India.

The culture of playing Polo is also an unfamiliar outdoor sports event to Indians.

Emaar-MGF has also picked this leisure event to input a new dimension of lifestyle in their gated communities for NRI. This type of intervention attracts NRI, to investfor their future home in India.

Playground for Lawn-Tennis

Playground for Polo

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Elements that attract NRI to come back to their root Indoor Spaces & Facilities | a comparative analysis

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Living Room Open Kitchen with Dining Health facilities

Living Room Open Kitchen with Dining Health facilities

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Living Room Open Kitchen with Dining Health facilities

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Living Room Open Kitchen with Dining Health facilities

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Chapter III Architecture that Matters

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Analysis of Building Form/Type/Style

Condominiums

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Villas & Single Residences

Andalusian Villa The Andalusian style originated in the Iberian Peninsula when the Moors integrated their culture and architecture with the Spanish. Characterized by the blending of the simple forms found in simple Spanish vernacular and in Moorish traditions of highly ornamental fenestration and facades, it utilizes courtyards and verandahs to maximize thermal delight. Andalusian Revival homes can be found along the California Coast near Santa Barbara.

Mediterranean Villa The Mediterranean style echoes the architecture of its cousin, the Emirates Hills. A simplified version, the Mediterranean style reflects the rectilinear forms of the many vernacular white-washed hillside towns that dot the Mediterranean Coast. From this simplicity, the refinement in solid details presents a style that echoes the past but forges into the modern era.

Spanish Villa The Spanish style is a reflection of the homes found in the Iberian Peninsula as a response to its particular climate and availability of materials. Simplicity characterises this style, yet handcrafted Mexican decorative tiles highlight the arched entryways and gables. Balconies and windows are enhanced with decorative wrought iron railings. This style witnessed a renaissance in early 20th century California, where the climate mimics that of Spain.

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Gated Communities & Sub-Urb Target Cities Jodhpur Agra Punjab Pune Mohali Uttar Pradesh Haryana Madhya Pradesh Rajasthan Bangalore Hyderabad

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Newspaper Articles, Blogs on Emaar-MGF Properties’ projects

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32

33

34

35

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INDEX Images P. 08

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P. 10

_

P. 12

_

P. 14

_

P. 16

_

P. 18

_

P. 20

_

P. 22

_

P. 24

_

P. 26

_

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INDEX

Diagrams P. 08

_

P. 10

_

P. 12

_

P. 14

_

P. 16

_

P. 18

_

P. 20

_

P. 22

_

P. 24

_

P. 26

_

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BIBLIOGRAPHY

List of NRI Based Websites Http://www.nri-worldwide.com http://www.migrationinformation.org http://www.garamchai.com/Return2India1.htm

Foreign Direct Investment Http://en.wikipedia.org/wiki/Foreign_direct_investment#cite_note-6 Commonwealth Games Http://en.wikipedia.org/wiki/2010_Commonwealth_Games CW Games Village Http://commonwealthgamesvillage.in/Default.aspx Indian Realty News Http://www.indianrealtynews.com/real-estate-india/real-estate-fdi-worries-may-continue-this-year.html#more-6140 Emaar MGF Http://www.emaarmgf.com/residential.asp List of Construction & Developer Companies in India Http://info.shine.com/ListofCompany/Construction-and-Real-Estate/855.aspx

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ACKNOWLEDGMENT

I would like to express my most sincere gratitude to my honorable supervisor, Professor Giovanni La Varra for his visionary guide, expertise, critiques and friendly relationships. Throughout my research, i have got enormous support and inspiration from him.

Furthermore, I would like to thank my friends in Politecnico Di Milano for their assistance throughout my research.

Finally, I would like to express my deepest gratitude to my parents without whom I can’t travel my journeys all these years.

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