Horizons Volume 2
ANDHRA PRADESH REAL ESTATE DEVELOPERS ASSOCIATION www.apreda.org
A P ’s
Issue 7
m o s t
Rs.50
c r e d i b l e
r e a l
October-November2012
e s t a t e
m a gazine
Commercial Property
new vistas
HORIZONS AP’s most credible real estate magazine
1
October - November 2012
HORIZONS AP’s most credible real estate magazine
2
October - November 2012
HORIZONS AP’s most credible real estate magazine
3
October - November 2012
T
c o
APREDA TOUCHING NEW HORIZONS
he Andhra Pradesh Real Estate Developers’ Association, popularly known as APREDA, was set up in 1995. APREDA today has a majority of leading builders and developers as part of its over 400 strong membership. It has branches/associates in Vizag, Vijayawada, Guntur, Kakinada and Tirupati. Over the years, APREDA has emerged as an effective, self regulatory promoter body of the real estate industry in Andhra Pradesh. In tune with the times and in keeping with the spirit of Hyderabad, APREDA’s vision is to make it a ‘smart city’ and AP a model state for real estate development. Committed to improve the quality of the built environment and to bring in more informed decision making practices, APREDA has been organising property shows to make the public aware of the products, numerous offerings and various options from the real estate industry in AP; more particularly in the twin cities; all under one roof. The first APREDA Property show 2010 was conducted on 30-31st Oct 2010 at HITEX and was a huge success with about 20,000 home seekers attending the event. It was inaugurated by Dr K Rosaiah, then CM of AP. This show was the harbinger for other events to be showcased. This success was replicated in 2011 when the second property show was organised on 15th & 16th October 2011. The property show was inaugurated by Sri N Kiran Kumar Reddy, Chief Minister of Andhra Pradesh. This time around we had over 150 properties on display and despite the fact that the exhibition was conducted amid political unrest, it attracted over 40,000 visitors. Conservative figures indicate that about 1,500 people purchased properties during this two day event. The APREDA property show was undoubtedly the biggest in its genre in 2010 1nd 2011. For the third year in succession, “APREDA Property Show 2012” is being organised at HITEX on 10th and 11th November. All major builders and developers of AP have booked their stalls. With a mix of building material providers, interior product suppliers, service providers, leading home loan financing agencies and government and infrastructure players participating, this version of the APREDA Property Show will sure touch new horizons. Enriching the members’ knowledge with the latest trends in marketing, financing, construction technologies, ecological conservation and related areas is the major function of APREDA. To achieve this objective, APREDA has been organising conferences and workshops each year since 2010. In collaboration with NAREDCO, a conference on “Green Buildings, Townships and Destination Hyderabad” was organised in 2010. A conference on “Vibrant cities for vibrant economy - Galvanizing for action“ was organised in 2011 with the Foundation for Futuristic Cities as its Knowledge Partner. APREDA is the first to respond to shortage of river sand in the current year. A workshop on “Alternatives to river sand” was organised with technical experts, Mines and Geology Dept. and rock sand manufacturers. The workshop’s recommendations were published in the cover story of “APREDA Horizons”, the bi-monthly magazine on realty published by APREDA. This year, a conference on “Real Estate – Accelerating the Growth Story” is being conducted by APREDA with Jones Lang LaSalle (JLL) as the Knowledge Partner. The conference is being held at NAC Auditorium, Hitech City, Hyderabad on November 10, 2012. More details on “APREDA Property show 2012”, conference, previous issues of “APREDA Horizons “ and activities of APREDA can be accessed from www. apreda.org. We look forward to the participation of real estate companies, suppliers of building materials, interior products and associated goods in the property show and also extend an early welcome to the public, requesting them to note the dates, 10-11 November 2012, of AP’s biggest property show.
HORIZONS AP’s most credible real estate magazine
4
From the news pages & sites...- Page 6
COMMERCIAL PROPERTY the new GOLDEN goose - Page 10
NHB’s Residex portends good tidings for HYDERABAD - Page 18
Choose the right colour - Page 40
October - November 2012
n t e n t s
Clarity on service tax exemptions under new law - Page 30
Mega IT boost for Hyderabad - Page 22
Current issues needing attention - Page 26 Swimming pools in the SKY - Page 29
Tantalising Araku valley - Page 32
PAIGAH TOMBS TAJ MAHAL of the SOUTH - Page 38
Effective meeting protocolPage 46
One more feather in Pragati’s cap - Page 42 Leasing looks UP - Page 43 APREDA D I A R Y - Page 44 R EAL E STATE O N O F F E R -Page 52 Projects - Page 58
HORIZONS AP’s most credible real estate magazine
Printed, published by P. Prem Kumar on behalf of AP Real Estate Developers Association, owned by AP Real Estate Developers Association, printed at Paper Craft Center, 2-3-514/4, Umanagar, Ameerpet, Hyderabad, A.P. Published from AP Real Estate Developers Association, # 102, Tirumala Shah Apartments, Yellareddyguda, Ameerpet ‘X’ Road, Hyderabad, A.P.- 500 073. Tel: 65572184, 9989844467 email: editor@apreda.org www.apreda.org Editor: Chalapathi Rao Raidu, RNI. No. APENG 03278/01/1/2011-TC
5
October - November 2012
News
From the news pages & sites... uled to be held in Hyderabad from October 1 to October 19. This was announced by R Hampaiah, chairman of the Andhra Pradesh Biodiversity Board. He said that the State board would also develop a biodiversity park alongside the museum on a sprawling 15-acre land on the Gachibowli-Mehdipatnam road. “We have already taken possession of this land and work will begin after the meet. While the museum is being built by the Ministry of Environment and Forests (MoEF),we have been sanctioned about Rs 5 crore to develop the park,” Mr Hampaiah said, while speaking to the media.
Residential market sentiments look up in Hyderabad
JLL CEO upbeat on Indian realty market Colin Dyer, Global CEO of international property consultancy Jones Lang LaSalle (JLL), recently spent a week in India and met several key clients and reviewed the company’s operations. The following are his real time observations on the Indian real estate market.
The Hyderabad real estate market saw launch of 6,000 residential units, about 45-50 per cent lower than the actual capacity, according to consultancy Knight Frank. In its report, the consultancy finds that the residential market sentiments in Hyderabad have improved considerably over first quarter of FY13 after a relatively subdued phase last fiscal. After a restrained absorption during the first three quarters of FY 2012, the Hyderabad residential market witnessed some amount of upward movement in the year last quarter, which continued in the first quarter of the current financial year, it observed. As of June 2012, around 58,000 residential units were under construction across various micro-markets in Hyderabad. Of the total upcoming supply in the residential market, the western region will account for a significant share of around 67 per cent. The pace of project launched had substantially slowed down during the last financial year due to Government Order No. 45, which mandated an allocation of 20 per cent of the developed land to the economically weaker sections and for low income housing. During the financial year 2012, about 10,000 residential units were absorbed. While the absorption trend remained almost subdued across the first three quarters of fiscal 2012, Q4 FY 2012 witnessed some amount of upward movement.
On investments in India Vs. other BRIC countries Interest from international real estate investors in Indian real estate has been limited in 2012. India has witnessed 6% q-o-q growth in direct commercial real estate in Q1 2012, compared to China which has seen negative growth of -45%, however China performed better in Q2 2012 on the back of one mega deal. In Brazil, investment volumes seem to be reaching a more ‘normalized’, sustainable pace following the supercharged 2010-2011 period. Broadly, India has seen roughly 18 billion US$ being invested in real estate over the past seven years. With 3.4 billion US$ of exits, Indian real estate performance has not seen exciting times for the foreign investor with average multiple of 1.25.
Biodiversity museum
The foundation stone for a Rs 100 crore biodiversity museum in Hyderabad will be laid during the international biodiversity meet, Conference of Parties 11 (CoP 11), sched-
HORIZONS AP’s most credible real estate magazine
However, India remains an attractive investment opportu-
6
October - November 2012
News
India gets first mortgage
nity and foreign investors are definitely still participating in situations that offer higher risk adjusted returns like buying stabilized leased assets and providing receivable-based ‘mezz’ financing against housing sales. Also, foreign investors are looking at putting capital behind successful investment managers and many are also directly investing in India on a selective basis.
guarantee entity The National Housing Bank (NHB) recently announced the formation of an Indian Mortgage Guarantee Company, a joint venture with US-based financial security company Genworth, the Asian Development Bank and the International Finance Corporation.
In terms of commercial real estate outlook, there has been a demand contraction of about 15% with reference to absorption in 2011. He expects a supply correction for 2013 and 2014, but supply for 2012 is by and large on track. The market will continue to be under stress for another four quarters, with vacancies going up, but rents are unlikely to fall further as they are already at the bottom, says the JLL CEO.
This is the first mortgage guarantee company in India. Its aim is to offer credit risk coverage in the form of guarantees to housing finance companies and banks in case of defaulting borrowers. This would help mortgage lenders avoid piling bad debts in their books. The NHB holds 38 per cent stake in the venture and Genworth 36 per cent, while ADB and IFC have 13 per cent each.
Accounting norms for developers soon The Union Finance Ministry recently said that it would soon bring out an accounting standard for revenue recognition in the real estate sector so that builders do not show too much discretion in showing revenue from projects that are under construction. The Central Board of Direct Taxes (CBDT) chairperson Poonam Kishore Saxena said in reply to a question from Financial Express that the Ministry is working on an accounting standard for the sector for the purpose of taxation. “The tax planning and legislation unit will shortly come out with an accounting standard for revenue recognition in the real estate sector for tax purposes,” Saxena said.
The initial paid-up capital is Rs 120 crore, to be increased over time to support the new company’s growth. “We have received the Foreign Investment Promotion Board’s approval and will be applying to the Reserve Bank of India for registration in a couple of days,” said R V Verma, chairman and managing director of NHB. IMGC will be a purely commercial venture. The company will have processes for approving lenders and housing loans for guarantee cover and help in maintaining the asset quality of lending institutions. “Adapting itself to the Indian context with a range of customised products for the lending industry and borrowing community, the company will operate under the regulatory jurisdiction of RBI,” Verma told Business Standard. IMGC is expected to focus on residential mortgage-backed securitisation and growth of the secondary mortgage market. Thomas Davenport, IFC Director for South Asia, said the new company will help expand access to affordable housing finance across income segments and regions.
Recently, a panel on black money appointed by the CBDT had pointed out that many real estate companies resort to subjective ways of recognising revenue. While some show income when a project is only 30 per cent complete in order to get bank credit, the cash-rich ones do not show income even when a project is 90 per cent complete, the panel said. Accounting standard 7, which stipulates that revenue recognition in construction contracts should correspond to the percentage of project completion, excludes the real estate sector. Income Tax Act does not recognise AS 7 of Institute of Chartered Accountants of India (ICAI). Another committee appointed by the CBDT to look into the accounting standards issued by ICAI submitted its report in August, but that too was silent on the subject. The Ministry, therefore, wants to issue its own standard for taxation of real estate firms.
HORIZONS AP’s most credible real estate magazine
Saudi Arabia to set up consulate in Hyderabad With a large number of migrants from the State working in the Kingdom of Saudi Arabia (KSA), the oil-rich country intends to set up its consulate in Hyderabad, second in the country after Mumbai. Highly-placed sources in the General Administration Department (GAD) told the Sunday Times of India that officials of the State Government and diplomats from Saudi
7
October - November 2012
News Arabia were working out the details. The government has welcomed Saudi Arabia’s proposal to set up its consulate in the city and has offered to allot necessary land to build their offices.
tion industry holds as one of the largest economic activities of the country, Mr S Raghupathy, Executive Director, CII Sohrabji Godrej Green Business Centre, Hyderabad, believes that preserving the environment poses many challenges and at the same time presents wonderful opportunities for various stakeholders.
So far, five countries -- the Unites States of America (USA), the Islamic Republic of Iran, the United Kingdom, Turkey and Russia -- have their consulates in the city. The State government wants to create a ‘Diplomatic Enclave’ in the city where consulates of various countries could be located, sources said.
The demand for energy, water and materials for construction has been growing enormously over the years and the need has arisen to address the minimization of natural resources for the building construction and their associated impact on the environment, says Mr Raghupathy. The building sector accounts for 30-40 per cent of global green house gas emissions.
“Though workers from Kurnool, Krishna, East Godavari and West Godavari districts also head to the Islamic state, migration from Telangana districts is high,” sources said. If all goes well, Saudi Arabia would open its consulate in the city by 2013.
The construction sector therefore needs to play a responsible role towards preservation of the fragile environment. In this regard, green buildings can play a catalytic role in addressing environmental issues and concerns.
India one of fastest growing realty markets in world India is one of the fastest growing real estate markets in the world, which is not only attracting domestic real estate developers, but also foreign investors. Moreover, the real estate industry in India is addressing the demand for built-up space from a variety of property segments such as offices, housing units, shopping malls, hospitality industry, manufacturing sector and logistics parks, in which the housing sector is undergoing significant growth.
The major benefits of green buildings include energy savings to the tune of 40-50 per cent and water saving of about 20-30 per cent, intangible benefits which include enhanced ventilation, better views and day lighting that significantly improve the productivity of the occupants, green corporate image and also demonstrates the company’s commitment to environmental protection. One of the biggest reasons why green buildings are now widely accepted by a cross-section of society is the fact that green buildings make good business sense and are financially attractive, says Mr Raghupathy. The construction costs of a green building would be 5-8 per cent higher for a Platinum building than a conventional building, the incremental cost gets paid back within 3-4 years with substantial reduction in operational costs.
According to a report of reportlinker.com, the housing segment of the Indian real estate industry has shown strong growth despite global economic gloom. Moreover, with the continuously rising population, growing aspirations, increasing nuclear families and rapid urbanization, the housing sector in India is anticipated to register a strong growth in the coming years. Further, the report facilitates detailed information on housing market structure comprising a number of housing units, rooms, and ownership of flats by type. A comprehensive study on housing demand analysis segmented into affordable, HIG, and luxury housing has also been included in the report in which it has been found that affordable housing segment is expected to witness a strong demand of around 40% during 2012-2014.
Centre to set up GoM on Land Acquisition Bill The Centre is expected to set up a Group of Ministers (GoM) in the last week of September to examine certain provisions of the controversial Land Acquisition Bill. The Union Cabinet had decided to refer the bill to the GoM in August after some Ministers raised reservations on certain provisions of the proposed legislation. Sources indicated that Agriculture Minister Sharad Pawar, Minister for Road Transport and Highways C P Joshi, Defence Minister A K Antony and Rural Development Minister Jairam Ramesh may be part of the nine-member GoM.
In this report, also included are forecasts on faucets, tiles, switches, cement and steel, paint, bathroom fittings, furniture, floorings and modular kitchen industries which will help the industry and its related players to get the complete 360 degree view of the industry. Besides, the report also includes city-level analysis (Mumbai, Delhi/NCR, Chennai and Kolkata) to help industry players monitor the estimated housing supply in these cities.
A number of Ministers, including Urban Development Minister Kamal Nath, Civil Aviation Minister Ajit Singh, Corporate Affairs Minister Veerappa Moily and Transport Minister C P Joshi had voiced reservations on certain provisions in the bill.
Green buildings make real estate business sense
Commerce Minister Anand Sharma had also suggested that the bill be put on hold till the concerns are addressed.
Holding forth on India’s tremendous growth in infrastructural development and the key position which the construc-
HORIZONS AP’s most credible real estate magazine
8
October - November 2012
News Rechristened ‘The Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition’ Bill, it has been hanging fire for long even though the National Advisory Council headed by Sonia Gandhi has been pushing for the law and has even framed its broad contours.
office late. One of the great variables in their daily schedule is the toll plaza battle they wage. It’s not just business chiefs and their staff who are a happy lot at the disappearance of the barriers at the plaza. The builders are keeping their fingers crossed that the toll points remain hassle-free. They see property appreciating and creating wealth all around once the accessibility problem is cracked.
The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced in Parliament in September last year and was referred to a Parliamentary Standing Committee, which submitted its recommendations in May.
Tax benefits of buying a home with joint loan
Gurgaon magnet for property investors
As the cost of buying a house is very high, most individuals, especially from the salaried class, opt for a home loan. So, while you decide the details on location, type, cost and quantum of loan, it would be helpful to know that you can avail certain tax benefits on the loan taken. Also, tax benefit increases in case the loan is taken jointly. Joint loans also help increase your eligibility for a higher loan amount since income of all co-owners is considered by the bank to decide the amount to be sanctioned. In case of a joint ownership with a woman taxpayer, some States also provide the benefit of lower property registration fee. Additionally, legal issues may be less in case of any unforeseen situations. Deduction for interest paid on housing loan: Interest paid on housing loan can be claimed as a deduction while calculating income from house property. If the property is self-occupied, the annual value of the property is considered as nil, and in such case, a deduction of Rs 1,50,000 is allowed for interest paid. This means that you would effectively have a loss under the head house property of Rs 1,50,000, which can be set off against other income such as salary and interest.
With the exception of Delhi, the only city which is reputed to have a bright future as a financial and corporate centre in the North is Gurgaon. Which is why the city is already home to over 300 Fortune 500 companies and a magnet for property investors. Gurgaon’s image as a city of the future is staked more on its potential than on its performance. That image, which has taken a beating with mounting infrastructural problems and poor accessibility despite the expressway, has got a fresh sheen with the windfall removal of barriers on the 32-lane toll plaza as per the order of the Punjab and Haryana High Court last fortnight.
A salaried individual could give a declaration to his employer for such loss and his tax liability on salary income would be reduced to that extent resulting in more cash. In case of a house that is given on rent, the entire amount of interest paid can be claimed as a deduction. Deduction for interest paid during pre-construction period: Interest on housing loan paid before the possession of the house or before the completion of construction can be claimed as a deduction after taking possession. The prior year’s interest can be claimed in five equal instalments starting from the year in which the possession is given. The deduction is covered within the limit of Rs 1,50,000 in case of self-occupied property and there no limit on deduction in case of rented property.
According to Yogesh Kochhar, director of strategic engagement at Microsoft, the traffic flow these days is a breeze. Kochhar, who has an office in Cyber City, said that he usually conducts most of his meetings in Delhi. “It’s suicidal to invite your business clients to Gurgaon. It’s an ordeal for them, and for us. But the last few tollfree days give us a glimpse of what it could be to commute to the city. Certainly it doesn’t have to be a nightmare. The sight of cars whizzing past the gates has been exhilarating.” One of the dreams associated with Gurgaon is that it wears the air of a modern urban centre, thanks to blocks after blocks of state-of-the-art corporate buildings. A visitor who looks up may see a skyline that one normally associates more with Manhattan than, say, Manesar.
Deduction for repayment of principal component: An individual could also claim a deduction up to Rs 1,00,000 per annum for repayment of the principal amount of a housing loan under section 80 C of the Income-tax Act, 1961. Advantage of joint ownership and joint loans: In case the property is purchased in joint names and funded through joint loans, each of the borrowers would be entitled to tax deductions for payment of interest and principal. Thus, if a husband and wife purchase a property with equal share, then both are entitled to claim housing loan interest deduction and also claim deduction for repayment of principal amount of the housing loan in their personal tax returns.
More than five lakh employees who work in the city’s IT and ITeS companies too no longer worry about reaching
HORIZONS AP’s most credible real estate magazine
9
October - November 2012
Comm
the new
Some companies open a window for small and medium investors to ensure regular returns and higher capital appreciation
HORIZONS AP’s most credible real estate magazine
10
October - November 2012
mercial property
w golden goose
I
n comparison with the share market, bullion, foreign exchange, art and antiques, and so many other avenues realty has witnessed unprecedented growth over the last two decades in the face of rapid urbanisation and a pronounced shift of people from the rural to urban and semi-urban areas and to jobs and services in the cities. The Horizons August-September 2012 issue covered extensively how realty was the winner, hands down, as the best investment option for individuals. Realty pertaining to the housing sector has no doubt seen a quantum jump in the last two decades, but the commercial property sector too, hand in hand with the residential sector, is now witnessing a boom, thanks to the growth in the economy, and the assured and hassle-free returns it offers.
HORIZONS AP’s most credible real estate magazine
11
This is not just confined to the metros but extends to the Tier-11 cities. Of the various components in commercial property such as entertainment and leisure spots, clubs, malls, resorts, warehouses, shopping areas, medical facilities and social infrastructure, office spaces of late are currently witnessing encouraging growth. There is, however, an emerging tweak or change in the sector, or a new trend to put it otherwise. Hitherto, investing in commercial property was the preserve of the corporates and HNI (high net worth individuals) or the well-heeled sections with deep pockets. In the current circumstances, commercial property is also being offered on retail basis to Small and Medium Networth Investors (SMNIs) who want to have
October - November 2012
Cover Story
The impressive facade of Shata Sriram’s Techpark at Gachibowli a share of the commercial pie. The investment could be in the range of Rs 50 lakh and Rs 2 crore. Shopping for retail space Developers, particularly in the DelhiNational Capital Region (NCR), the pioneer in these type of offers, advertise retail spaces or shops in malls as great investment. Many also provide assurances of guaranteed income of ranging from 9 to 12 per cent over a period. So, let us see how the retail commercial space segment is faring in India? Retail sector The Indian retail sector is estimated to have annual sales of $450 billion (Rs 25 lakh crore). Though organized retail comprises less than 10 per cent of the segment, it is expanding at 20 per cent a year. According to Cushman and Wakefield, the retail realty sector received a fresh mall space supply of around 2.27 million square feet in the January-June 2012 period. ‘Mall mantra’
Despite the slow phase in retail space, shops offer one of the highest yields at 10-14 per cent. So you cannot strike them off your list if you are looking at investing in real estate. “Retail as an asset class has longterm appreciation and safety as catchment consumption only increases. Revenue share will keep increasing and keep pace with inflation,” says Shubhranshu Pani, managing director, retail services, Jones Lang LaSalle (JLL) India. However, the dynamics of this segment is different from that of residential properties and the success of a mall depends on a number of factors. Mixed-use projects In recent years, several developers have ventured into development of mixed-use projects with homes, offices, shops and even hotels. The mixed-use format is an innovation to offset risk by having captive demand for residential, retail and hospitality by leasing office
HORIZONS AP’s most credible real estate magazine
12
space. Developers also use it to make the project more attractive to buyers. The revenue model is also evolving. Retailers (tenants) are increasingly paying a base rental along with a share of the revenue to owners. This allows retailers to bring down their fixed costs and pass on a part of the business risk to the owner. The leading players in this business are DLF, Raheja, Unitech, Ansals, Omaxe, Hiranandani, Nirmal, etc. Office space as an investment avenue for Small and Medium Networth Individuals (SMNIs) In recent times, several companies have come up with innovative schemes opening a window for SMNIs. We now present the case example of two companies, the Gurgaon-based Vigneshwara Developers, headed by Mr Sunil Dahiya, senior vice-president of NAREDCO, and the Hyderabad-based Shanta Sriram Constructions led by Mr Narasiah.
October - November 2012
HORIZONS AP’s most credible real estate magazine
13
October - November 2012
Cover Story
‘FDI in reta
The futuristic venture of Vigneshwara, Aquarius Business Park in Gurgaon. Investment sans hassles Shanta Sriram Constructions believes that while commercial properties such as IT parks are the best segments, investing smaller amounts such as Rs. 50 lakh in blocks/units of a project can also bring in good returns. If you want to own rental property, but don’t want the hassles of being a landlord who has to attend to all minor and major issues, a real estate investment group could be the best solution. Having a mentor is the fastest and most efficient way to make the most of real estate investing. You can buy a set of blocks or units and then let the company operating the investment group collectively manage all the units, taking care of maintenance, advertising vacant units and interviewing tenants. The company says that its project at Gachibowli, currently the hottest property destination in Hyderabad, Shanta
Sriram Techpark, is a convenient option for investors by providing all property maintenance-related solutions. Shanta Sriram Techpark has set up a dedicated department which takes care of the full scope of property management before, during and subsequent to the investment. Better alternative Shanta Sriram offers an investment opportunity to SMNIs in commercial property in blocks/units of projects such as Shanta Sriram Techpark with guaranteed returns in the form of monthly rental returns. The unit areas available are in the range of 850 to 4,800 square feet. While the project commenced in June 2012, it is expected to be completed by May 2014. The proposed rental starts from the day of handing over of the unit with guaranteed returns at the rate of 9% per annum for two years from the date of handover.
HORIZONS AP’s most credible real estate magazine
14
Welcoming the Central Government’s okay for FDI in retail, Mr Dahiya of NAREDCO has some interesting takes on the latest developments in FDI in retail and believes that commercial property will lead from the front, again. The last cycle of the real estate boom between 2000 and 2008 was started by commercial office space fuelled by the requirement of the IT/ITeS business in hubs like Hyderabad, Gurgaon, Pune and Bangalore. In fact, metros like Delhi, Mumbai, Chennai and Kolkata did not witness as much demand as they did not have the area available to build the large inventory that these businesses required. This demand was created by the reforms started in 1996 in Banking, Insurance, and Telecom popularly called BFSI (Banking & Finance and Service Industry). Their expansion in the airport proximities of Hyderabad, Gurgaon, Pune, Bangalore saw unprecedented price rise in land and real estate around. This price rise coupled with capital flow from IT/ITeS into the hands of professionals created the next layer of boom in new age residential living that continues till today. Metros like Delhi, Mumbai, Chennai and Kolkata are largely witnessing growth only in residential prices as they have become centres of migration from the Tier-II cities. Posh areas in these metros still hold their price tags, even in the thick of the meltdown after 2008-2009. For instance, if an investor takes up the minimum area of 1,000 square feet for which the basic cost comes to Rs.55,00,000 (at Rs.5,500 per square feet) and additionally pays Rs.2,50,000 towards parking slot, the total investment (excluding taxes) comes to Rs.57,50,000. On this investment the annual rent that the investor will receive at 9% per annum on basic cost
October - November 2012
I e
N t s a a p w T r r m h O w p t t w s s f
W g e H P fi 3 s o c m a
Cover Story
ail will fuel next property boom’
Investment in these regions is very expensive, hence not for all.
Now the second round of reforms in the retail industry like permitting FDI in single brand and multi brand retail will again be led by commercial real estate and this time again, an unprecedented price rise in land and real estate will be witnessed. This reform should be welcomed by the real estate industry, as the lifecycle of retail will result in the setting up of hyper markets, retail outlets and large warehousing. One more trend will be witnessed which will see the NRIs return and become part of this retailing revolution, that they started when setting up stores in the West. Obviously, these NRIs would want to buy more land, houses and shops when they come back, while some others may choose to stay back for good.
With 100 crore Indian and rural migration centred around urbanization, engulfing the metros and centres like Hyderabad, Gurgaon, Bangalore and Pune, we will still be short of Grade A office and retail areas. Even if we expect 30 per cent Indians to work out of office space we need 3,000 crore square feet of Grade A office space (@100sq.ft per capita space/person). By today’s estimate, our metros and cities have only about 15 crore square feet, i.e. still not
even 1% of the requirement. It is estimated that in India 45% youth (25-35) are equipping themselves to work in the service sector. We therefore will need roughly 500 crore square feet annually of Grade A office space and retail area. The current gap in commercial real estate is due to the bankruptcy of ideation and innovation in the Indian banking sector. Today to buy a house, you can avail a housing loan, but to start a business you cannot get a loan for a commercial office space. Indian banks think that it is safer to finance a house, as there is a need for housing but no need to set up work/ business and that financing commercial real estate is risky and speculative. In the macro picture, the housing loan portfolio of the banking industry is 80% and commercial real estate is even less than 5%. This implies that they think 80% people will live at home and still be able to service their housing loans. Looking at this shortage of ideation and innovation in Indian banking, the developers have found innovation and ideated to sell their commercial real estate with assured returns and guaranteed rentals. Logically speaking, if 80% housing stock has been
is Rs.4,95,000 (minimum assured return) which comes to a monthly rental income of Rs.41,250. So the minimum assured return expected by the investor is Rs.9,90,000 for two years. Over and above this, the capital appreciation is expected at approximately 10% to 25% per annum.Comparatively, if the same investment is made in FRDs, the maximum return achieved
extended loans by the banking sector, then it is evident that the same segment is in dire need of commercial real estate to be employed from. Hence, smart investors have sensed this demand supply gap. In effect, these investors are bridging this gap of creating the commercial real estate by way of lapping up this innovative product offering of developers. Investors who invest at lower levels of prices in real estate are always investors – and always known as good buyers, while the rest are sellers!!
would be 35% gain after four years (max. return of 8.75% per annum x 4 years). Also, if the investment is made in residential property, the maximum rent gained would be Rs.1,20,000 per annum (3% P.A.) on Rs.40 lakh investment aside from capital appreciation, whereas Shanta Sriram Techpark assures 9% per annum return apart from higher capital appreciation.
HORIZONS AP’s most credible real estate magazine
15
Vigneshwara Developers Vigneshwara Developers’ project, Aquarius Business Park, is located in the heart of Gurgaon, the “Millennium city of the world.” Built on the unique concept of ‘Work’, ‘shop’, ‘live’ and ‘play’, this impressive business park is spread across approximately 1.8 million sq. ft. and has three multi-tenanted corporate towers. Set amid beautifully
October - November 2012
Cover Story
Omaxe India’s Trade Centre which offers 12 per cent assured returns in retail/office/studio apartments. landscaped surroundings, these towers have an ultra-modern façade with granite claddings for the lower three floors and glittering glass & aluminium panelling for the floors above. At the ground floor of each tower, a Tech Park Mall equipped with various amenities, services and recreational facilities has
been set up so that a well-deserved break from work is always within easy reach.The offices here have been built on ready-to-move module. Also, you get complete assistance in interior designing and organizing while shifting your office here. In order to ensure the smooth flow of your business, a
HORIZONS AP’s most credible real estate magazine
16
property management team, dedicated power plant of 9 MW plus five diesel generator sets, reliable voice & data communication stations, hotspot ‘Wi Fi Zones’, and many other services have been put to round-the-clock service. Now let’s have a look at what Aquarius has on offer for investors.
October - November 2012
HORIZONS AP’s most credible real estate magazine
17
October - November 2012
Trends
A
critical analysis of the RESIDEX covering the period from 2007 to 2012 brings out very interesting findings with regard to Hyderabad. The National Housing Bank (NHB) was set up in the year 1988 and will celebrate its silver jubilee in year 2013. It is the principal agency to promote housing finance institutions both at the local and regional level and provide financial and other types of support to such institutions. One of the initiatives of the National Housing Bank is the ‘National Housing Bank Info India’ which is a single point source for complete and reliable information on housing and housing finance in India. Each year the NHB comes out with an annual report covering various aspects of the housing scenario in India. What is Residex? A mechanism to track the movement of prices in the residential housing segment was set up by the National Housing Bank. The study initially covered five cities and as of now covers 63 cities in India. This index is called the RESI-
NHB’s Residex portends good tidings for Hyderabad
HORIZONS AP’s most credible real estate magazine
18
October - November 2012
Rachna Gupta
HORIZONS AP’s most credible real estate magazine
19
October - November 2012
Trends DEX. RESIDEX takes the year 2007 as the base year and indicates the movement of the residential price index on a scale of hundred. A critical analysis of the RESIDEX covering the period from 2007 to 2012 brings out very interesting findings with regard to Hyderabad, when compared to other cities. The RESIDEX has increased by three times in the case of Chennai, and almost two times in the case of Mumbai. In Delhi it has increased by 2.5 times to 267 from 100, whereas in Bangalore it has remained stable. Considering the major cities, it is interesting to note that the only in the case of Hyderabad has the RESIDEX reduced to 79. Barring the year 2009 the RESIDEX is at its lowest point in the year 2011. When we look at the short-term and track progress of the RESIDEX from January-March 2010 to January-March 2011, we also notice that it has largely been constant at the 75-80 level and has stayed below the 100 points base figure of 2007. What conclusions can we draw from these statistics? We can divide our inferences on the basis of two factors. One is that Hyderabad as a destination for investment and the other is to consider whether this is the right time for
PROPERTY RATES S.No. City Premium Segment 1 Mumbai 23000-32000 2 Bangalore 10000-20000 3 Chennai 9500-16500 4 Delhi 12000-16000 5 Hyderabad 5500-10000 6 Kolkata 10000-15000 investment in the residential sector. Hyderabad as a destination for investment: When comparing the statistics of 17 cities in India, barring Jaipur, Hyderabad has the most buyer friendly RESIDEX in India. As can be seen from the table given below residential spaces are a still available in the range of Rs. 2000 - Rs. 3500 per square foot in decent localities with all amenities in Hyderabad. Even in the premium segment the residential space rates in Hyderabad are the lowest, when compared to other metros. This information is tabulated in the tables with this article. Best time to invest? When we compare the rise and fall of RESIDEX in the case of Hyderabad, we notice that there has been a decline from the base year of 2007 up to the year 2009 when it was the least. From
HORIZONS AP’s most credible real estate magazine
20
Affordable Segment 4800-7000 2500-3500 3500-4500 3500-4000 2000-3300 2500-4000
the year 2009 the index has been in the 80 to 90 zone and in October-December 2011 has again touched a low of 79. Based upon these figures it is obvious that this year is a very good time for anyone considering purchasing residential property to invest in Hyderabad before the prices go up due to increase in the input costs. Analysing the intra-city scenario in Hyderabad (see bar graph), the zone wise Residex specific to the city indicates that except in the case of the east zone covering the areas of Kapra, Uppal Kalan, and L.B.Nagar, the Residex has stayed in the sub hundred range, indicating a positive buying opportunity. Prices in the premium segment of Hyderabad too, which are now at half the level of Bangalore, are set to increase and this is the most opportune time to invest.
October - November 2012
HORIZONS AP’s most credible real estate magazine
21
October - November 2012
IT Arena
Mega IT boost for Hyderabad The Cyber Gateway in Hitech City.
A
fter hanging fire for nearly four years, the much-awaited Hyderabad IT Investment Region (ITIR) is all set to become a reality with a high-powered committee headed by the Union Cabinet Secretary finally giving in-principle approval to the mega project. Straddling 202 sq km or 50,000 acres (nearly five times the 10,000acre ITIR projects cleared for Karnataka and Orissa), the Hyderabad ITIR is slated to catapult the city into India’s largest knowledge hub in the coming years and could well be the biggest booster kick that Hyderabad has been desperately waiting for. Estimated to suck in investments of over Rs 15,000 crore in just internal
and external infrastructure over the next 25 years, the mega project is expected to send AndhraPradesh’s IT, ITeS revenues soaring to a whopping Rs 2,35,000 crore, a fivefold jump over the existing Rs 50,000 crore, and boost 10 times the State’s fledgling electronic hardware manufacturing industry from Rs 8,000 crore revenue to over Rs 80,000 crore. The Andhra Pradesh Government also hopes the project will create lakhs of direct and indirect jobs, taking up the total direct employment number in the sector to 15 lakh from the existing 3 lakh and send the indirect employment figure zooming from 12 lakh to 50 lakh, an official said. The ITIR will primarily comprise areas
HORIZONS AP’s most credible real estate magazine
22
falling under Cyberabad Develoment Authority including Gachibowli and Madhapur, Hyderabad Airport Development Authority areas, including Mamidipalli, Raviryal, Adibatla and Maheshwaram as well as the new growth areas in the Uppal-Pocharam belt. It will be a combination of production units, public utilities, logistics, environment protection mechanism, residential areas and administrative services and will include special economic zones, industrial parks, free trade zones, warehousing zones, export oriented units, growth centres and existing industrial estates. PROJECT PROJECTIONS IT Investment Region’s Spread:
October - November 2012
HORIZONS AP’s most credible real estate magazine
23
October - November 2012
Luxe story
Raheja IT Park in Hitec City. 50,000 acres Estimated Investments Over 25 Years: 15,000 crore Expected Revenues Over 25 Years: 2,35,000 crore Direct Employment: 15 Lakh Indirect Employment: 50 lakh Centre to foot external infrastructure bill The ITIR is expected to see the addition of another 90 million sq.ft of builtup space to the existing 40 million sq.ft, taking the total built up area under IT, ITeS and electronics sector to 130 million sq.ft, State IT and Communications Minister Ponnala Lakshmaiah told newspersons recenly while giving the nod to the project. “The funding of Rs 2,189 crore for external infrastructure development will be taken care by the Centre,” Mr Lakshmaiah said, adding that players setting up new projects in the ITIR will be extended the same
incentives being currently given to the existing IT firms and those laid down in the recently announced Electronic Hardware Policy 2012-17. Needless to say the State government is elated at the crucial hurdle being cleared as it feels the final approval from the Cabinet Committee on Economic Affairs (CCEA) is just a mere formality, as IT&C Ministry officials pointed out. The IT/ITeS industry, too, is certain that the proposed ITIR will pave the way for big-ticket investments into the State and result in a tremendous improvement in the overall quality of life making the city a preferred destination for the knowledge industry. “The project will fuel the second phase of growth not just for Hyderabad but the entire State. It will create an entire eco-system for the sector, thanks to a full-fledged focus on development not
HORIZONS AP’s most credible real estate magazine
24
only of core infrastructure but also soft infrastructure like international schools, incubation centres and the like within the ITIR perimeter,” points out V. Rajanna, president of The IT and ITeS Industry Association of Andhra Pradesh and global head of telecom technology business unit as well as regional head of Hyderabad centre of Tata Consultancy Services. “This is the good news that the State has been looking for quite a while now. Just like first the SPTI scheme and then SEZ schemes attracted a lot of FDI and investments, there is an expectation that the ITIR will create dedicated clusters and result in an explosion in terms of IT investments, attracting top talent and adding to the revenue growth for the State and Hyderabad in particular,” adds Bipin Pendyala, secretary general of ITsAP and site manager for CA Technology Centre in Hyderabad.
October - November 2012
HORIZONS AP’s most credible real estate magazine
25
October - November 2012
GO’s
Current issues needing attention G.O.Ms. No. 342 dated 04.09.2012 The Government has extended the facility of paying the City Level Infrastructure Fee in instalments for a further period of three years. The Impact fee can now be paid in six equal instalments within a period of 3 years. Post dated cheques have to be given at the time of release of Building Permission and an additional 5% of the built up area or 50% of the ground/flat/sand floor area, whichever is less has to be mortgaged to the sanctioning authority over and above the area to be mortgaged under Andhra Pradesh Building Rules 2012. This facility is open till 19.01.2014. This facility has come as a big relief to many builders who have to invest large sums of money prior to the launch of a project. Requests of APREDA under consideration with: A. Municipal Adminstration & Urban Development Department. 1.Vacant Land Tax. Vacant land tax is being levied on all Urban Property lying unutilized. This tax is also being levied on lands/plots/property for which permission for construction was given and the work is in progress. Such lands are no longer ‘Vacant’ and various charges like development/ external development etc are already paid. Collection of vacant land tax in respect of all projects under construction must be stopped. House tax/property tax may be levied once occupancy certificate is issued and the units are assessed for property tax. 2.Value Addition Charges (VAC) in erstwhile Cyberabad Development Authority. The Cyberabad Development Authority (CDA) was constituted in the year 2001. Even though the CDA
REALTY POLICY AGENDA
APREDA had always been in the forefront to work with the Govt. of AP in evolving the policy framework to herald a conducive environment for faster and better realty development. Based on the representations of APREDA, the Govt. has issued orders in respect of City Level Infrastructure Fee. The other policy issues taken up by APREDA with the Govt. of AP are summarized in this article. APREDA appeals to the Government to resolve these issue soon. was superseded with the formation of Greater Hyderabad Municipal Corporation (GHMC) in April 2007, VAC was not withdrawn and on the other hand External Development Charges (EDC) are also being collected. VAC in the erstwhile CDA must be done away with and uniform development charges must be fixed for all localities in the GHMC. 3.Provision of EWS/LIG Housing Units in all Housing Projects, Gram Panchayat Areas: In the case of GHMC, GVMC & VMC an option to provide the EWS/LIG units within a radius of 10 km of the project site or within 5 km from the nearest aerial boundary of the municipal limits has been given. Similarly, for Urban Local Bodies, an option to provide the EWS/LIG units within a radius of 5 km of the project site or within 5 km from the nearest aerial boundary of the municipal limits has also been given. A similar provision to provide the EWS/LIG units within 5 km of the site to all the projects that are coming up in Gram Panchayat areas falling in Urban Development Authority
HORIZONS AP’s most credible real estate magazine
26
areas and in sanctioned master plans must also be made. 4.Disposal of EWS/LIG Units. The disposal of LIG/EWS units must be left to the discretion of the Builder/Developer. In many cases people purchasing villas or large housing units are approaching the builders to purchase these units for their employees like drivers, security and household staff. Therefore it is felt that the allotment and disposal of these units be left to the Developer/Builder. 5.LRS: Layout developers shall be encouraged to regularize the balance unsold plots in the unauthorized layouts to facilitate cohesive regularization of the entire layout. A provision may be made to permit such regularization, subject to other conditions of GO 902. Agreement of Sale or GPA executed prior to the cutoff date of 31-12-2007 may be considered as proof for applying for regularization. Further, the time for submission of applications for LRS must be extended up to 31 March 2012 to cover the leftover plots so that the entire layout gets regularized and left over developments works can be taken up to make the colony livable. B. Registration & Stamps Department 1. Relaxation on production of Pattadar Pass Books/Title Deed Books. Hitherto, registration of lands from the owners was being carried out by the Registration Department without the insistence on production of the Pattadar Pass books/Title Deed Books. Recently instructions have been issued by the government not to carry out registrations if the land owners do not produce them and as a result numerous registrations have come to a standstill. Administrative procedures for issue of valid Pattadar Pass Book at the revenue offices at Mandal and Village levels are not yet streamlined due to various reasons. As a result, valid title holders are unable to obtain the Pattadar Pass Books in time. This is resulting in great inconvenience to people desirous of selling their land, as also to those intending to purchase the same. In certain cases, production of Pattadar Pass Books is not possible as
October - November 2012
HORIZONS AP’s most credible real estate magazine
27
October - November 2012
GO’s listed below: a. When a person purchases or has purchased agricultural land through an AGPA, after having paid the registration fee and after having paid the complete amount to the land owner, Pattadar Pass books are not issued to the AGPA holder. The AGPA holder may not be able to get the Pass book from the original land owners, as in some cases only a part of the land has been purchased. The original land owners are also not cooperating in providing the Pass Books or in some cases are demanding additional payments for the same. Since, as a procedure, Pattadar Pass Books are not issued to AGPA holders, insisting on production of the same by the Registration Department is not practical. b. When a company purchases some agricultural land from a land owner,
Pattadar passbooks are not issued in the name of the company. Only proceedings are provided by the MRO and insisting the production of the Passbooks by the registration department is not practical again. c. When an individual purchases some non-agricultural land, the registration office is insisting for Pattadar Pass Books, even for non-agricultural lands, which are not issued at all. Instructions must be issued to permit registration without insistence on Pattadar Pass Book till such time the procedures for issue of the same are streamlined and implemented at the revenue offices. As an interim measure this extension may please be provided for a period of two years so that the public is not inconvenienced. 2.
Registration
HORIZONS AP’s most credible real estate magazine
of
28
Government
Lands/Assigned Lands-Prohibited Properties Certain Instructions Issued. Vide Memo No. G1/15370 / 2012 dt 27.07.2012, the Government has issued instructions not to register certain properties based on NOC of MRO duly confirmed by the district collector concerned. While it is agreed that Prohibition of Registration of Govt Lands/assigned lands as per Gazette publication under Sec 22 A of the Registration Act is valid, the Registration Department is applying this condition to all lands as a general rule. Suitable instructions must be issued to the Registration Department to apply this condition only to lands notified through a gazette publication under Section 22 A of the Registration Act and not to include any other lands under the ambit of the Memo No. G1 / 15370 / 2012 dt 27.07.2012.
October - November 2012
Cover Story
Swimming pools in the sky
HORIZONS AP’s most credible real estate magazine
29
A
skyscraper under construction in Mumbai, India, not only includes more than 200 apartments, three levels of car parking, a gym and sauna, but also features pools on the edges of several balconies. Called the Aquaria Grande, the two 37-storey towers were designed by architect James Law and the real estate company Wadhwa Group. It’s just the latest building to push the boundaries of conventional homes in India. With 228 apartments, the Imperial in Mumbai has two 60-storey towers featuring high-security systems, outdoor terraces, an entertainment area and pool. A gym is expected to open soon and the largest apartments include lap pools.
October - November 2012
Taxation & Laws
service tax exemptions under new law
I
n my previous article I had mentioned the various changes introduced by the Budget in the existing law. The one major hit, if I may say, is that the smaller builders who were earlier safeguarded by the exemption provisions are now facing rough times. The government has now restricted the exemption on the levy of service tax to construction of single residential units, otherwise than, as part of a residential complex, in terms of Item No. 14 of the mega notification 25/2012-ST dated 20.06.2012, which reads as under: 14. Services by way of construction, erection, commissioning, or installation of original works pertaining to: (b) a single residential unit otherwise than as part of a residential complex; in terms of the definitions contained in the mega notification: (zc) “residential complex” means any complex comprising a building or buildings, having more than one single residential unit; (ze) “single residential unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family; A very common question which we have been attending to is; What is the service tax liability on the construction of a two-floor house built through a contractor? And whether the contractor is right in demanding service tax? The Education Guide contains a sufficient explanation for the above question and
clearly states as follows; “Service tax is payable on construction of a residential complex having more than one single residential unit. Single residential unit is defined in the notification and means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family. If each of the floors of your house is a single residential unit in terms of the definition, the contractor is rightly demanding service tax. If the title of each of the floors is capable of being transferred to another person by mutation in land/municipal records, both the floors may be considered separate single residential units.” A combined study of all of these provisions throws up some very interesting issues. Let us analyse the conclusive meaning arising from the above mentioned provisions. “Single residential unit” is defined as a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for a single family. The exemption, it seems, is not available if the single residential unit is meant for more than one family, for e.g. if Mr. X and his brother jointly construct a single residential unit, they would be denied the exemption, as this could be treated as being constructed for the residential purposes of more than one
HORIZONS AP’s most credible real estate magazine
30
family. The term ‘family’ has not been defined in the Finance Act, 1994 or in the mega notification and I presume, that this term will have to be interpreted in terms of its usage, in common parlance. Far-fetched Taking this forward… the views expressed in the Education Guide that each floor of a house can be treated as a ‘residential unit’ if it “is capable of being transferred to another person by mutation in land/municipal records, both the floors may be considered as separate single residential units” seems a bit far-fetched, as this could significantly reduce the exemption provided for single residential units. Based on this view, exemption would be sought to be denied to construction of bungalows, etc. with multiple floors. Moving further… a “residential unit” is now defined, under the new law, in a rather restricted manner, to mean any complex comprising a building or buildings, having more than one single residential unit. To recapitulate, let us compare this with the definition of “residential complex” under the old law, which is reproduced below: “Residential complex” means any complex comprising: i) a building or buildings, having more than 12 residential units;
October - November 2012
Taxation & Laws ii) a common area; and iii) any one or more facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning the layout, and the construction of such complex is intended for personal use as residence by such person. Explanation For the removal of doubts, it is hereby declared that for the purposes of this clause: a) “personal use” includes permitting the complex for use as residence by another person on rent or without consideration b) “residential unit” means a single house or a single apartment intended for use as a place of residence Since an exemption notification would have to be strictly interpreted, it would seem, per se, that construction of row houses, villas or individual houses, which form part of a gated community come under the service tax levy effective 1-7-2012 given the fact that the new definition of “residential complex” seems rather wide. The conditions related to approval of the layout, the need to have common area, etc. based on which, exemption could be claimed under the old law, are no longer relevant under the new law. Joint ventures Another topic I would like to discuss is relating to taxation of JVs in construction. It is a common practice in the construction industry for landowners and the builders/developers to enter into a joint venture agreement and that the total constructed area would be shared between the land owners and builders/ developers in agreed proportion. For example, if 10 flats are to be constructed on a land, the landowner on the one hand and the builder/developer on the other, may agree to retain five flats each for them. The builder/developer can sell his por-
tion of flats to individual buyers. While selling so, the undivided share of land pertaining to these flats would first be sold and construction agreement entered into with the buyers. It may be noted that when the builder/developer thus sells his portion of 10 flats to individual buyers, the amount ttributable to the value of UDS land sold to the buyer, actually belongs to the landowner as he is only the owner of the land. But, the builder/developer is allowed to retain this sum, in consideration of constructing and handing over five flats to the landowner. The landowner may deal with his five flats in whatever manner he wants. Let us assume that the builder/developer is selling his portion of the flats at Rs.50 lakh, of which Rs.10 lakh is towards sale of UDS and Rs.40 lakh is towards construction cost. The question is whether the builder/ developer is providing any service to the landowner when he constructs and hands over five flats to the land owner. Though it is being argued that this is a business venture for share of profits in the form of constructed area, and there is no relation of service provider and service recipient between the builder/ developer and landowner, by and large, the builder/developer is liable to pay service tax for the 10 flats handed over to the landlord. But, it may be observed that the landowner will not be making any payment to the builder/developer, for constructing his five flats. Instead, the builder/developer can sell the UDS portion pertaining to his share of five flats (Rs. 10 lakh X five flats) and retain the same. Such sale will happen over a period of time, as and when the builder/developer is identifying buyers for his share of five flats. Hence, the consideration for constructing five flats for the landowner is not readily ascertainable. CBEC circular In this connection, reference is drawn to the CBEC’s circular 151/2/2012 Dt. 10.02.2012, wherein it has been clarified as below, with regard to valuation: Value, in the case of flats given to first category of service receiver (landowner), is determinable in terms of section 67(1)(iii) read with rule 3(a) of Service
HORIZONS AP’s most credible real estate magazine
31
Tax (Determination of Value) Rules, 2006, as the consideration for these flats i.e., value of land/development rights in the land may not be ascertainable ordinarily. Accordingly, the value of these flats would be equal to the value of similar flats charged by the builder/ developer from the second category of service receivers. In case the prices of flats/houses undergo a change over the period of sale, the value of similar flats as are sold nearer to the date on which land is being made available for construction should be used for arriving at the value for the purpose of tax. Service tax is liable to be paid by the builder/developer on the ‘construction service’ involved in the flats to be given to the land owner, at the time when the possession or right in the property of the said flats are transferred to the land owner by entering into a conveyance deed (eg. allotment letter). Two key issues Two issues have been clarified in the above circular, viz. (i) value of service provided to landowner shall be based on comparable value of service provided to other buyers; (ii) service tax for services rendered to landowner has to be paid when the flats are handed over to the landowner. It was always being argued when the builder/developer is getting the right to develop and sell his share of UDS immediately on entering into the Joint Development agreement, when no sale to individual buyers would have happened, it would be more appropriate to treat the value of UDS portion of land pertaining to the builder/ developer’s share of five flats, on the date of Joint Development agreement as the value of services provided to the landowner. In other words, the value of service provided to the landowner in the above example should be Rs. 10 lakhs X five flats and not Rs.40 lakh x five flats. Varun Jakkinapalli is a chartered accountant and partner of M/s Kumar & Giri. He also teaches tax to students aspiring to become CAs.
October - November 2012
Travel
Tantalisi Araku Va By Sushreeta Mitra
N
estled in the Eastern Ghats, in Visakhapatnam district of Andhra Pradesh, lies a beautiful hill station named Araku Valley. Located in between the coordinates of 18.33◦N and 82.86◦E and at an elevation of about 911 m, Araku is at a distance of about 120 km from the picturesque city of Visakhapatnam. Surrounded by mountains like Galikonda, Raktakonda, Sunikarimetta and Chitamogondi, this valley receives
an average rainfall of 1,700 mm in between the months of June to October. The mesmerising beauty with bridges, tunnels, waterfalls and thick forests all over attracts thousands of tourists from all over India every year. The place has lot of things in store for all age groups. For people who want to be away from the hustle and bustle of the city, this place acts as the best tranquilizer. On the other hand, Araku also welcomes all energetic and enthusiastic youngsters, who are looking for adventure. Tourists can even go for
HORIZONS AP’s most credible real estate magazine
32
early morning treks in the forest. One of the highest broad gauge tracks in Indian Railways is the Eastern Ghats rail route from Visakhapatnam to Anantagiri, which passes through tunnels, hill sides and streams, giving an exciting and enjoyable experience to tourists. The places to visit in Araku are: 1. Sangda Waterfalls: One of the spectacular waterfalls in India is the Sangda Waterfalls. This is located in Sangda village of Munchingput mandal.
October - November 2012
Travel
ing alley 2. Matsyagundam: As the name suggests it is the fish pool, which is situated in the Machkund river near Mathan village. It flows under the magnificent Yendrika hills and reappears about 100 yards lower down, where it forms a pool, which is the house of thousands of fish of all sizes. On the bank of the river there is also a Shiva temple, which attracts many devotees. 3. Padmapuram Botanical Gardens: The tree huts or hanging cottages make this garden one of the special
points of attraction of Araku. These cottages are ten feet above the ground level, which swing along with the movement of the trees. To get a different feel, tourists can stay in these huts. 4. Waterfalls: Like other hill stations, tourists can even enjoy the view of three different waterfalls. Ranajelleda waterfalls, Dumbriguda waterfalls and Ananthgiri waterfalls. 5. Borra Caves: On the way to Araku from Visakhapatnam, you will find the mysterious Borra Caves, which attract thousands of tourists every year. These are situated on Ananthagiri Hills at an elevation of about 2,313 feet and depth of around 263 feet. These million-yearold caves are spread over an area of around one sq. Km, with 300 feet thick roof above. Borra caves are one of the deepest and largest caves in India, which are formed by the natural deposition of stalactites and stalagmites from the river beneath. The APTDC has illuminated the caves with different types of lights, which give a spectacular look to the caves. Due to accumulation of stalactite and stalagmite there are formations of different shapes which are really worth seeing. 6. Tyda: This eco-tourism project is a joint venture of AP Tourism and the State Forest Department. This lies on the way to Araku from Vizag, which is situated at a height of nearly 2000 feet above sea level. It houses Jungle Bells resort, which is spread over five acres of land. Coffee plantation Hill stations are usually famous for tea plantations, but Araku is an exception, which is popular for its coffee plantations. In the year 2007, Araku Valley became the first to launch tribal growers organic coffee brand. The premium brand of organic coffee named “Araku Emerald” is renowned worldwide. This picturesque valley of Eastern Ghats is home to different tribes, who are still able to maintain the natural beauty of the place with respect to purity of the environment. Anantagiri and Sunkarimeta are two reserved forests, rich in biodiversity. The splendid beauty of the valley attracts even people from
HORIZONS AP’s most credible real estate magazine
33
the film industry, for shooting movies.
FACTFILE How to Reach Araku? By Road: The hill station is well connected to Visakhapatnam by road. Tourists can follow the following route: From Visakhapatnam city head towards Steel Plant Road, GNT Road, NH5, NH5 Bypass, Hindu Temple, Araku Road Paderu to Araku, Araku Railway Gate Araku to Visakhapatnam Road Araku. By Rail: The tourists can even take a train from Visakhapatnam to Araku. Journey by train is very exciting as it passes through streams, tunnels and hill sides. While going up to Araku tourists can take train and come down via road to Visakhapatnam as they can experience both the routes. Accommodation: Tourists can choose from the wide range of hotels in Araku, with different types of amenities in different hotels, but whichever hotel the tourist chooses, it brings everyone very close to nature. The list of hotels is as follows:
Hill Resort Araku (Yatri Nivas) Tel: : +91 8936 249201/02/03 Cell: +91 9440793556 Haritha Mayuri Resort Tel: +91 8936 249204 Cell: +91 9440793518 Ananthagiri Hill Resort This resort has well-furnished cottages along with a restaurant. Tel: +91 8936 231888 Jungle Bells – Tyda Tel: 0891 2713135/ 2746446 This hotel provides well equipped cottages with a restaurant. The tourists staying have favourite past time like Rock Climbing, bird watching and trekking.
October - November 2012
HORIZONS AP’s most credible real estate magazine
34
October - November 2012
HORIZONS AP’s most credible real estate magazine
35
October - November 2012
HORIZONS AP’s most credible real estate magazine
36
October - November 2012
HORIZONS AP’s most credible real estate magazine
37
October - November 2012
Heritage
Paigah Tom
Taj Mahal of the So
The interiors of the iconic Paigah tombs.
T
he Paigah tombs, also known as the Shams-ul-umra tombs or more famously as the “Taj Mahal of the South”, are a recent discovery, and date back to the eighteenth century. They house the graves of 27 members of the Paigah family, the most important nobles of the Nizams of Hyderabad, who held high positions in their rule and were also allied to them through marriage. Numerous features characterize the Paigah Tombs … some exquisite jaali
HORIZONS AP’s most credible real estate magazine
38
work, intricate stucco ornamentation, marble inlay work, unique geometrical features, floral designs, trellis marble fence, exotic lattice work, numerous courtyards, arched alcoves, pietra dura work on graves, embellishments of coloured gemstones, pietra-dura work on marble graves. The tombs are magnificent structures, representing in some part the Mughal, Greek, Persian, Turkish, Islamic and Rajaputana schools of architecture. The emphasis given to detail and embellishment is striking.
October - November 2012
Heritage
mbs
outh pineapples, drums and even serpents. There are arched alcoves along the walls. The ornamentation in all the tombs is rich in flower and foliage motifs, characteristic of Mughal architecture.
Entry to the tomb complex is through the naubatkhana, a huge traditional doorway. Inside the complex is a mosque, with a water tank. The main façade of the mosque has three pointed arches and two minarets. It is said that the presence of a mosque here is a deviation from tradition. A series of courtyards houses these tombs. Each wall has different designs in carved marble, some resembling
Jehan in the Taj Mahal at Agra. On the tomb of Sir Asman Jah, the sculptor has mounted intricately etched a semi-precious stone imported from Italy. The stone is said to change colours according to the vagaries of seasons – jade green when it rains, white in winter and yellow in the sun. On the sides of the graves are inscriptions in Arabic, mostly excerpts from Islamic scriptures. Above the cornices of the building rise bulbous turrets shaped like pineapples. Beautiful stucco work is seen throughout, specially along the columns and turrets. In the entire complex the arches are multi-cusped , again a Hindu architectural element. The most striking feature of the tombs is the jaali work, each in a unique design, which is floral and geometrical. This is very similar to the Jaali work found in the Mughal monuments of the North. However, unlike Mughal Jaalis which are made in marble, the Paigah tombs complex has Jaalis crafted in lime plaster! Beautiful Jaali work is also seen on the pavilion style doorways leading to the tombs. The panels of the doors are carved of wood into delicate and beautiful patterns of Jaali work. Intricate stucco work decorates the jharokha style perimeters of these doorways. As most monuments of Deccani architecture go, the Paigah tombs also incorporate the Rajasthani, Mughal, Persian, and local styles blended together and known as the Indo-Sarcenic style of architecture, so unique to this part of the country.
Each tomb is enclosed by rectangular marble fence walls intricately carved with lattice trellis-work and exotic designs, floral and geometric. Each of the four flanks forming the rectangular fence has different motifs. The canopy is supported by pillars which are akin to Hindu temple pillars. Outstanding among them is the canopy on the tomb of the Amir-e-Kabir. There is an ostrich egg suspended over Amire-Kabir’s tomb, a signbelieved to be associated with royalty. Begum Khurshid Jah’s tomb is made of marble and inlaid with precious and semi-precious stones. These, however, have been vandalized over time. Set against the milk-white of the marble, the stone inlay work shines in blue, green, yellow (Rachna Gupta is a and orange. This tomb has often been freelance journalist compared to the tomb of Emperor Shah based in Hyderabad)
HORIZONS AP’s most credible real estate magazine
39
October - November 2012
Vaastu
Choose the right colour C
olours make life beautiful. They can harmonise and balance our energy and improve our life and destiny. Colours play a vital role in influencing vaastu sastra to a great extent and have a definite influence on the vaastu of a dwelling. They are most powerful in influencing the human mind and body. During the Vedic age, all colours were extracted from vegetables and flowers, which were more permanent in shade, soothing to the eye and had a natural tint. At an early period in human history the symbolic use of colours was made. During the early period, heart, which was the seat of life and blood was identified with life and consciousness and was colored red. Yellow was possibly the colour of fire and white that of the day. Vaastu Sastra provides vital guidelines as to how to decorate our homes etc, in a decent manner to derive maximum benefits.
According to some vaastu experts, the colour schemes should conform to the raashi (constellation/zodiac sign) of the owner to bring good luck and happiness. If a room has poor daylight, it should be painted in a light colour and if a room gets good amount of natural light throughout the day, it can be painted in some deep colour. If a room has only a north window, which allows cold light, we should not use blue on the walls. If a room gets much direct sunlight, it is not advisable to paint the walls yellow or peach. It is nearly better to have white ceilings and the ceiling temperature should be less than the human body temperature. Some experts suggest different colours as per the directions a construction faces. They are really the colours of the planets governing these directions. Colours contrast in value is perhaps
HORIZONS AP’s most credible real estate magazine
40
the most important factor in a composition or a design. Maximum contrast is obtained by the use of colours of extremely strong chromes. A strong yellow on a black field is an excellent example of maximum visibility. A bright strong yellowish red would be considered a powerful colour. The colour of an object depends upon the light it emits or sends back to an eye. Contrasting colours are quickly changed when it is mixed as for black which makes colours both brighter and lighter in looks. Surrounding an intense colour with a grey increase the apparent colourfulness of the intense colour making. It appears even brighter or brilliant. Surrounded by yellow, grey may appear slightly blue. Surrounded by red, it may appear slightly green and surrounding by grey with a bright colour on the other hand may influence the eye to discern in the greying of the complemen-
October - November 2012
Vaastu
Market rates
tary of the bright colours. One must always bear in mind that no individual is completely white (good) or black (bad), but is an amalgam of the two
-- grey. A sensible good blending can create a forceful creation. A particular colour can activate or can control human glands by different bodily functions. Such as for good appetiser or to give excitement for the low blood pressure patient, a light limited soothing colour atmosphere is recommende d .
Locality
Price(Rs/Sq.Ft.)
Alwal Attapur A S Rao Nagar Barkatpura Bachupally Bandlaguda Bibi Nagar Banjara Hills Bollaram Chandanagar Chintal Dilshugnagar Domalguda East Marredpally Erragadda Gujularamaram Gachibowli Hi-Tech City/Madhapur Habshiguda Hyderguda Himayath Nagar Hasmathpet
1895-2300 2800-3100 3000-3200 4000-4800 1500-2100 2000-2200 2000-2500 3700-7500 1800-2200 2000-2200 1800-2000 2200-2800 3500-4500 4200-5000 3200-3800 1500-2000 3000-4500 3600-4500 3000-3500 3000-3500 4000-5500 2300-2800
HORIZONS AP’s most credible real estate magazine
41
Similarly, blue is to stop overeating habits. For a high blood pressure patient, a light limited soothing colour atmosphere is recommended. For quicker healing, green colour is used in hospitals. For good healthy, tasty food, golden yellow or tinted brown colour is recommended. Colours affect our body and mind very much. The purest and most thoughtful minds are those, which love and colour the most. The cool colours are blue sea or mainly blue in cast. The warm colours are red or mainly blue in cast. The warm colours are red and yellow in cast. Red makes you feel happy while man can work best when surrounded by blue, but too strong a blue or red cause depression. People often feel cold in a blue room and warm in a red room. It is the colour which makes them feel that way. As such choose the right colour and make your life contented and joyous.
Hydernagar Jeedimetla Jamai Osmania Jubilee Hills JNTU Road/Kukatpally Kompally Kondapur Kavuri Hills Lingampalli L B Nagar Marredpally (Secunderabad) Mehdipatnam Nampally Madhapur Mallapur Manikonda Nagole Appa Junction Sainik Puri ShaikPet Srisailam Highway Thirumalgiri Uppal Yapral
October - November 2012
2500-2800 1800-2100 2300-2500 6800-7800 3200-3800 2200-2500 3600-4200 4000-5000 2000-3400 2500-2800 3400-4300 3000-4200 2800-3900 3500-4000 2000-2700 2200-3600 2200-2800 2500-2900 1655-2200 2000-3000 2500-2900 2200-2650 2000-2900 2100-2400
Achievement
One more feather in Pragati’s cap
P
ragati Green Meadows and Resorts Ltd. has been awarded the “Talented Conservator Award” in recognition of their outstanding contribution in the field of conservation and propagation of medicinal and aromatic plants and horticulture crops for the promotion of livelihood and rural development at the international level. The award was presented by Nirupama Rao, Ambassador of India, Washington D.C. and received by Prof. G. Sudarsanam on behalf of the company during the “4th International Conference on Medicinal Plants & Herbal Products” held during September 6-8, 2012, at Johns Hopkins University Montgomery County Campus, 9601 Medical Center Drive, Rockville, MD 20850, in the US. Pragati’s distinction Meanwhile, the Convention on Biodiversity, United Nations, has now recognized Pragati Biodiversity Knowledge Park as a model for biodiversity. However, Pragati has been practising and implementing the biological conservation for the past one and half decade. Mr. Ahmed Djoghlaf, ex-executive secretary, and Mr. Braulio Ferreira de Souza Dias, the current executive secretary of Convention on Biological Diversity, Canada, visited Pragati’s resorts in connection with the International Convention on Biodiversity (CoP–11) to be held in Hyderabad from October 1 to October 19 gave feedback to the local authorities that the resort showcases biodiversified, unique and rare plant species, including medicinal herbs and aromatic species. They also advised that this facility may be of interest to delegates visiting Hyderabad for the Cities for Life Summit. Pragati is happy to inform that they have received a letter from the Commissioner, Greater Hyderabad Municipal Corporation, informing them to organise a visit to their resort for international and national delegates on October 17. Their visit would include a presentation on the unique features of the resort and a tour of the available facilities. The company is also glad to inform that the Convention of Biological Diversity, which is conducting a few events on awareness and biodiversity in Hyderabad for CoP-11, apart from an exhibition, has been invited to make a presentation at the events on October 4 and October 16. The GHMC has taken note of Pragati’s facility which conserves and propagates medicinal and tropical plants in close proximity and nearer to the Metropolis. Pragati is sure to be a great draw during CoP-11 as delegates from 193 countries, coming to participate in the big-ticket event on biodiversity, will visit the resort, considered a trail-blazing and novel place for the promotion of biodiversity.
HORIZONS AP’s most credible real estate magazine
42
The ‘Talented Conservator Award’ being presented by Ms Nirupama Rao, Indian Ambassador to the US, to Prof. G. Sudarsanam, representing Pragati Herbal Healing Gardens, during the 4th International Conference on Medicinal Plants & Herbal Products held during September 6-8, 2012, at Johns Hopkins University, Montgomery County Campus, 9601 Medical Center Drive, Rockville, MD 20850, US.
October - November 2012
HORIZONS AP’s most credible real estate magazine
43
October - November 2012
APREDA
D iary
Former APREDA president M.Murali Mohan presenting a bouquet to Mr Digbijay Das, senior consultant of Cushman & Wakefield, at the MGM held on August 28. Looking on is APREDA president P. Prem Kumar.
APREDA secretary general P. Dasharath Reddy welcoming Mr Arun Rathee of Cushman & Wakefiled.
Mr B.R.V Susheel Kumar, Director, Mines & Geology, Govt. of AP, Mr B.R. Tagore, APREDA president, Vizag, S.R. Niranjan, APREDA secretary Vizag and M.Srinivasa Rao, MD, Akshaya Infra Consultants at the workshop on “Problems and prospects of manufactured sand” at Vizag held on Sept. 6.
Mr Bhawarlal Jain, executive vice president of APREDA, Mr Dasharath Reddy and Mr Prem Kumar felicitating Mr. V. Sudhakar Prasad, MD of Sulakshana Developrs, hosts of the meeting.
Members are all attention at the proceedings of the MGM.
HORIZONS AP’s most credible real estate magazine
Prominent film personalities Mr Alllu Aravind and Mr Murali Mohan along with the APREDA president at the MGM.
44
October - November 2012
APREDA
D iary
CURTAIN RAISER - A smashing success
The curtain raiser function of the third Property Show of APREDA was a grand success. It was inaugurated by Mr Thota Narasimham, minister for Stamps & Registration. Over 300 guests representing the real estate industry, suppliers, Finnacial institutions, marketing agencies attended the event. Officials from the Registration Department were also present.
BEAUTIFICATION OF HYDERABAD FOR CoP-11
Continuing in discharging its corporate social responsibility, and in asociation with GHMC, APREDA has undertaken the beautificaion of the 1.5 km stretch of the road from Hitex entrance to NAC grounds. Specially chosen plant species were planted along the median and carpet grass laid all along the median on a war footing to make the stretch green, ahead of the inauguration of the prestigious CoP-11.
HORIZONS AP’s most credible real estate magazine
45
October - November 2012
Etiquette
Effective meeting protocol
By Carolann Philips A recent article reported that an average worker feels productive on only three days of the week. Ineffective business meetings were ranked at the top of the list as one of the biggest time-wasters. A business meeting can be defined as any gathering consisting of two or more people in a professional setting. Business meetings are meant to provide a setting where ideas can be created and problems can be solved whilst developing work and leadership skills. Even though a majority of executives feel that meetings are ineffectual, the fact is that they are not essentially insignificant, just often poorly managed. If ego and power are put aside, this powerful and productive communication tool can be the true backbone of corporate suc-
HORIZONS AP’s most credible real estate magazine
46
cess. Here are some protocol guidelines for effective meetings -An efficient meeting is one where the goal is achieved for which the meeting was held. Therefore, clarify the aims or purpose of the meeting. If the aims of the meeting are not clear a meeting should not be arranged. One way to clarify aims is to ask, “Once the meeting is over, what do I hope will have happened?” Then, create an actionable agenda where each item on it begins with an action word. For example, “Decide on date and venue for staff party”. Allot specific amounts of time for each item according to their importance. A good strategy to do this is to consider the likely level of participation and agreement for each item on the agenda. Distribute the agenda and other
October - November 2012
Etiquette pertinent materials in advance to those who are involved. Begin the meeting on time. Establish ground rules about how the members will interact. All groups violate their ground rules sometimes, and it is the leader’s duty to remind the group. Review the agenda, making clear what decisions need to be made or actions to be taken. Keep the discussions focused. To get a discussion back on track say something like, “We are getting off the topic and need to move back to finalizing the date of the staff party.” Important issues that come up but are not directly related to the agenda item should be noted on a separate sheet of paper. Role of a leader This can be consulted for agenda planning for succeessive meetings. Effective meetings are participatory and a leader should try to get everyone involved. All ideas should be sought b e fore critiquing. Waiting to critique generally increases participation. All decisions taken in a meeting should be restated and summarized. This helps ensure that all members hear the same thing. An action plan should then be completed which outlines the specifics that must be done. Agenda items for the next meeting should be invited from the group or some members could
be given the responsibility to work on creating agendas. Members are more likely to participate in a meeting if they are allowed to have some input into building the agenda. Before the meeting adjourns, a brief evaluation should take place in order to identify areas of improvement. This can be done by the leader asking some informal questions or by handing out a brief paper survey where the results are aggregated and shared. Do’s and don’ts If you are an attendee, do not be more than five minutes early or late. Be sure to greet everyone gathered when you arrive and depart. Remember to silence your mobile phone. During discussions, allow more senior members to
your spectacles or doodle. If you miss a meeting, apologize giving solid reasons, not excuses. Whether you are an attendee or the organizer, you will find challenges during every meeting; but the above guidelines should be sufficient to help you start every meeting on the right footing. (Carolann Philips is a certified etiquette and protocol consultant and behavioural skills coach. She is the managing director of Hallmark Events, a company that focuses on designing and developing programmes with emphasis on organizational behaviour and thinking, based in Muscat, Sultanate of Oman.)
contribute first. Never interrupt, even if you disagree strongly. Note what has been said. Wait for your turn or return to it later with the leader’s permission. When speaking, be brief and ensure what you say is relevant. Don’t slouch, swivel or rock in your chair. Sit upright and be as attentive as possible. Don’t check e-mail, clean
If ego and power are put aside, this powerful and productive communication tool can be the true backbone of corporate success
Floating Rate of Intrest Companys
Upto 25 lakhs >25 - 75 Lakhs
India Bulls
10.50%
10.75%
11.25%
2500 + S Tax
HDFC
10.50%
10.75%
11.% Flo
0.50 + S Tax
LIC Housing
10.65%
11.00%
0.50 + S Tax
SBI
10.00%
10.75%
11.00%
0.25% + S Tax
ICICI
10.50%
11.00%
11.75%
0.50 + S Tax
DHFL
11.25%
11.50%
11.75%
1% + S Tax
HORIZONS AP’s most credible real estate magazine
47
> 75 lakhs Processing Fee
October - November 2012
Pulse
Leasing in Hitec City remains stable
(We reproduce here Jones Lang LaSalle’s outlook for September 2012 for Hyderabad compiled by Trivita Roy)
HORIZONS AP’s most credible real estate magazine
48
October - November 2012
AD
HORIZONS AP’s most credible real estate magazine
49
October - November 2012
Auspicious Days
October 2012 Date Day 10/10/2012 Wednesday 18/10/2012 Thursday
November2012
Auspicious days
Time (IST) A.M. 09:00 to 10:30 07:30 to 10:30
P.M. 04:00 to 07:00 04:00 to 07:00
A.M.
P.M.
5/11/2012
Monday
09:00 to 10:30
04:00 to 07:00
11/11/2012
Sunday
06:00 to 10:30
02:00 to 04:00
18/11/2012
Sunday
06:00 to 10:30
02:00 to 04:30
23/11/2012
Friday
06:30 to 10:30
04:30 to 07:00
30/11/2012
Friday
06:30 to 10:30
04:30 to 07:00
Humour corner
Definitions of Designations
Project Manager is a Person who thinks nine women can deliver a baby in One month. Developer is a Person who thinks it will take 18 months to deliver a Baby. Onsite Coordinator is one who thinks single woman can deliver nine babies in one month. Client is the one who doesn’t know why he wants a baby. Marketing Manager is a person who thinks he can deliver a baby even if no man and woman are available.
HORIZONS AP’s most credible real estate magazine
50
October - November 2012
HORIZONS AP’s most credible real estate magazine
51
October - November 2012
Classifieds
r e a l e s tat e o n o f f e r ADITYA CONSTRUCTION COMPANY Project Name : Aditya’s Eden Park Developer / Builder : Thota Satyanarayana Location :Gachibowli, Nallagandla, Property Type : 3BHK Independent Flats Unit Size range :1805 – 2380 sft Price range : Call for Price Contact Person :Mr. Ramakrishna Telephone No. : 9912225072 / 44605555 Email : enquiry@adityacc.com Web Site Address :www.adityacc.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Contact Person Telephone No. Email Web Site Address Project Name Developer / Builder Location Property Type Unit Size range Price range Completion By Contact Person Telephone No. Email Web Site Address
: : : : : : : : : : :
: : : : : : : : : :
Imperial Heights Thota Satyanarayana Hafeezpet, Near Hitech City, 2 & 3 BHK Apartments 1250 – 2000 sft Call for Price Mr. Ramakrishna 9912225072 / 44605555 ramakrishna.ps@adityacc.com www.adityacc.com
Express Towers Thota Satyanarayana Shaikpet, Jubilee hIlls, Residential 1600 – 2385 sft 70 Lakhs – 1 crore Dec 2014 Mr. Ramakrishna 9912225072 / 44605555 ramakrishna.ps@adityacc.com www.adityacc.com
HALLMARK CONSTRUCTIONS Project Name Location Property Type Unit Size range Price range Completion By Contact Person Telephone No. Email Web Site Address
: : : : : : : : : :
Hallmark KSN Residency Kondapur 3 BHK Apartments 2300sft to 2800sft 3,500 per sft Ready for Occupation O.V.V.S.Murthy 9849056529 info@hallmarkconstructions.com www.hallmarkconstructions.com
HORIZONS AP’s most credible real estate magazine
52
October - November 2012
Classifieds
CHOICE INDIA INFRA PROJECTS PVT LTD Project Name Developer / Builder Location Property Type Unit Size range Property Range Completion By Telephone No. Email Web Site Address
:Guru’s Choice Residency : Choice Infra Projects : East Marredpally : 2 BHK Independent Flat : 1126sft to 1414sft : Call for Price : 2012 : 9441115599 : email@choice-india.com : www.choice-india.com
Project Name Developer / Builder Location Property Type Price range Telephone No. Email Web Site
: : : : : : : :
Choice-india, Kavuri Hills Choice Infra Projects Kavuri Hills, Jubilee Hills 3 BHK Apartments Call for Price 9441115599 email@choice-india.com www.choice-india.com
Project Name Developer / Builder: Location Property Type Unit Size range Price range Telephone No. Email Web Site Address
: : : : : : : : :
N-95 Choice Infra Projects Nandagiri Hills, Jubilee Hills 4 BHK Apartments 4016 sft Call for Price 9441115599 email@choice-india.com www.choice-india.com
Project Name: Developer / Builder Location Property Type Price range Telephone No. Email Web Site Address
: : : : : : : :
NV-63 Choice Infra Projects Nandagiri Hills, Jubilee Hills 4 BHK Apartments Call for Price 9441115599 email@choice-india.com www.choice-india.com
HORIZONS AP’s most credible real estate magazine
SAKET ENGINEERS (P) LTD Project Name : Developer / Builder : Location : Property Type : Unit Size range : Price range : Completion By : Telephone No. : Email : Web Site Address :
Saket Pranaam Saket Engineers A S Rao Nagar Studio, 1, 2, 3 BHK Independent Flats 454 sft to 1686 sft Call for Price Possession 9642352233, 9848808407 sales@saketgroup.com www.saketgroup.com
Project Name: Developer / Builder Location Property Type Unit Size range Price range Completion By Telephone No. Email Web Site Address
: : : : : : : : : :
Saket Sriyam Saket Engineers A S Rao Nagar 2 & 3 BHK Apartments 1241 sft to 1999 sft Rs.35,00,000/Under Construction 9642352233, 9848808407 sales@saketgroup.com www.saketgroup.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Completion By Telephone No. Email Web Site
: : : : : : : : : :
Saket Bhu:Sattva Saket Engineers Nutankal, Near Medchal 3BHK Independent Luxury Villas 200 – 325 Sq yards 2800 Per sft Under Construction 9642352233, 9848808407 sales@saketgroup.com www.saketgroup.com
53
October - November 2012
Classifieds JANAPRIYA ENGINEERS SYNDICATE Project Name Location Property Type Unit Size range Price range Telephone No. Email Web Site Address
: : : : : : : :
Janapriya Arcadia Kowkur 2 & 3 BHK Independent Flat 850sft to 1500sft 1895 per sft 23222999 / 666 / 333 sales@janapriya.com www.janapriya.com
Project Name Location Property Type Unit Size range Price range Completion By Telephone No. Email Web Site Address
: : : : : : : : :
Janapriya Metropolis Motinagar, Ameerpet 2 & 3 BHK Apartments 625sft to 1460sft 10 to 50 Lakhs 3 Months 23222999 / 666 / 333 sales@janapriya.com www.janapriya.com
Project Name Location Property Type Unit Size range Price range Completion By Telephone No. Email Web Site Address
: : : : : : : : :
S AND S GREEN PROJECTS PVT LTD Project Name Location Property Type Unit Size range Price range Telephone No. Email Web Site Address
: : : : : : : :
Green Meadows Gachibowli Extension 3 BHK Independent Flat 1045sft to 1445sft 30 Lakhs 9966981888 info@greenmeadows.in www.greenmeadows.in
Project Name Location Property Type Unit Size range Telephone No. Email Web Site Address
: : : : : : :
Green Grace Gachibowli 3 BHK Independent Flats 2010sft to 2870sft 9966981888 info@greenmeadows.in www.greenmeadows.in
Janapriya Nitevally Madinaguda near Miyapur 2 & 3 BHK Apartments 940sft to 1560sft Call for Price 3 Months 23222999 / 666 / 333 sales@janapriya.com www.janapriya.com
HORIZONS AP’s most credible real estate magazine
54
October - November 2012
Classifieds
SREE SALASAR DEVELOPERS Project Name Location Property Type Unit Size range Telephone No. Email Web Site Address
: : : : : : :
Sree Salasar Gardenia Old Bowenpally 2, 3 & 4 BHK Apartments 900sft to 1683sft 9246833320 / 64573321 info@salasardevelopers.com www.salasardevelopers.com
Project Name Location Property Type Unit Size range Telephone No. Email Web Site Address
:Sree Salasar Krishna Royale : A.S Rao Nagar : 3 BHK Independent Flats : 1053sft to 1242sft : 9246833320 / 64573321 : info@salasardevelopers.com : www.salasardevelopers.com
PHOENIX GROUP VENKUSA ESTATES
Project Name : Developer / Builder : Location : Property Type : Unit Size range : Price range : Telephone No. : Email : Web Site Address :
Project Name:Venkusa Estates Phase – II & III Location : Yapral, Kowkur Property Type : 3 BHK Independent Villas Unit Size range : 267 Sq. Yards Telephone No. : 9866217605 / 9542607999 Email : venkusaestates@gmail.com Web Site Address : www.venkusaestates.com
HORIZONS AP’s most credible real estate magazine
55
Golf Edge Phoenix Living Spaces Nanakramguda, Gachibowli 2 & 3 BHK Luxury Apartments 1685 sft to 3625 sft Call for Price 9160098888 / 7799200007 sales@golfedge.in www.golfedge.in www.phoenixindia.net
October - November 2012
Classifieds VERTEX HOMES PVT LTD
THEME AMBIENCE CONTRUCTIONS PVT LTD Project Name Developer / Builder Location Property Type Unit Size range Price range Completion By elephone No. Email Web Site
: : : : : : : : : :
Golf View Bimal Kumar Kedia Nanakramguda 2 & 3 BHK Independent Flats 1130sft to 2050sft Call for Price Dec 2014 9391050852, 93911453440 theme@themeambience.com www.themeambience.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Telephone No. Email Web Site Address
: : : : : : : : :
Lake View Bimal Kumar Kedia Tolichowki – Gachibowli Route 3 BHK Independent Villas 278 – 369 Sq. yards Call for Price 9348521652, 9391050852 themeambience@gmail.com www.themeambience.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Telephone No. Email Web Site Address
: : : : : : : : :
Fort View Bimal Kumar Kedia Hydershah Kote, Langer House
2 & 3 BHK Independent Luxury Flats
960 sft to 1498 sft Call for Price 9348521652, 9391050852 themeambience@gmail.com www.themeambience.com
HORIZONS AP’s most credible real estate magazine
56
Project Name Location Property Type Unit Size range Price Range Completion By Contact Person Telephone No. Email Web Site
: : : : : : : : : :
Vertex Sadguru Krupa Nizampet, Kukatpally 3 BHK Independent Flats 1453 sft to 1492 sft Call for price Possession Mr. Hari Prasad 9396664859 vertexhomes@gmail.com www.vertexhomes.com
Project Name Location Property Type Unit Size range Price range Completion By Contact Person Telephone No. Email Web Site
: : : : : : : : : :
Vertex Lake View Nizampet, Kukatpally
Project Name Location Property Type Unit Size range Price range Completion By Contact Person Telephone No. Email Web Site
: : : : : : : : : :
4 BHK Luxury Independent Villas
164 to 383 Sq Yards Call for Price Possession Mr. Hari Prasad 9396664859 info@vertexhomes.com www.vertexhomes.com
Vertex Prime Nizampet, Kukatpally 3 BHK Independent Flats 1140 sft to 1470 sft Call for Price Possession Mr. Hari Prasad 9396664859 info@vertexhomes.com www.vertexhomes.com
October - November 2012
Classifieds SRI SRI GRUHA NIRMAAN
VAMSIRAM BUILDERS Project Name Developer / Builder Location Property Type Unit Size range Price range Telephone No. Email Web Site
: : : : : : : : :
Jyothi Vista Vamsiram Builders Road No. 5, Banjara Hills 2 BHK Apartments 3503 sft to 3600 sft Call for Price 9849558979, 9642323313 sales@vamsirambuilders.com www.vamsirambuilders.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Telephone No. Email Web Site
: : : : : : : : :
Jyothi ANRI, Huda Enclave Vamsiram Builders Jubilee Hills 3 BHK Independent Flats 3125 sft Call for Price 9849558979, 9642323313 sales@vamsirambuilders.com www.vamsirambuilders.com
Project Name Developer / Builder Location Property Type Unit Size range Price range Telephone No. Email Web Site
: : : : : : : : :
Jyothi Dwelling Vamsiram Builders Huda Enclave, Jubilee Hills 3 BHK Independent Flats 2092 sft Call for Price 9849558979, 9642323313 sales@vamsirambuilders.com www.vamsirambuilders.com
HORIZONS AP’s most credible real estate magazine
57
Project Name : Location : Property Type : Unit Size range : Price range : Completion By : Telephone No. : Email : Web Site Address :
Sri Sri Antahpuram Nagarjuna Sagar Road 4 BHK Independent & Duplex House 120 to 150 Sq. Yards Call for Price Possession 9000480300 / 9550369053 / 24069596 srisrihomes@gmail.com www.srisrigruhanirman.com
Project Name : Location : Property Type : Unit Size range : Price range : Completion By : Telephone No. : 24069596 Email : Web Site Address :
Sri Sri Avenue Gurramguda Village, Sagar Highway Road 2 & 3 BHK Independent and Duplex House 600sft to 900sft Call for Price Possession 9000480300 / 9550369053 / srisrihomes@gmail.com www.srisrigruhanirman.com
October - November 2012
Projects S.No. Project Name
Developer / Builder
Location
Property Type
Unit Size Range Sqft
Price R
1 Empress Towers Aditya Construction Shaikpet, Jubilee Residential Apartments 1600 to 2385 70 lakh Company India Pvt. Ltd. Hills, Hyderabad 2 Alekhya Towers Alekhya Constructions Ltd. L B Nagar, Hyderabad High Rise Residential 1BHK (975 SqFt & 1075 SqFt), Rs 280 Apartments (Deluxe Flats) 2BHK (1400 SqFt, 1425 SqFt & Rs 25 / 1525 SqFt), 3BHK (1470 SqFt, 1525 SqFt, 1750 SqFt, 1625 SqFt, 1650 SqFt, 1900 SqFt) & 4BHK (3500 SqFt & 4000 SqFt) 3 Choice India Choice India Infra Projects Kavuri Hills Residential Apartments 2900 Please Private Limited (3BHK) 4 Guru’s Choice Residency Choice India Infra Projects East Marredpally Residential Apartments 1150 to 1414 Please Private Limited (2 & 3 BHK) 5 N 95 Choice India Infra Projects Nandagiri Hills Residential Apartments 3800 Please Private Limited (4 BHK) 6 Sri Lakshmi Nivas Kosuri Constructions Patrikanagar, Madhapur Residential Apartments 1250 50 Lakh 7 Lahari Holiday Homes Ltd. Lahari Green Park Bhanoor, 8 min. drive HMDA approved from ORR independent, Luxury Villa 1500 - 2000 sq. yards Please 8 Lahari Infrastructure Ltd. Lahari Green Park Shankarpally, 8 min. HMDA approved 250 - 400 sq. yards Please drive from ORR independent, Plots 9 Lahari Green Park Lahari Green Park Shankarpally, 8 min. HMDA approved 250 - 400 sq. yards Please 10 Lahari Green Park Lahari Green Park Bhanoor, 8 min. HMDA Regularized, drive from ORR independent Plots Independent plots 600 sq. drive from ORR 11
Mantri Celestia
Mantri Developers Pvt Ltd
Near Wipro Junction, Gachibowli
Residential Apartments ( 2-3BHK) in G + 24 Format
850 to 1198 sft
Rs 379 sic pric car par and oth
12
Splendour
Modi Builders
Gajularamaram, Kukatpally
Apartment
966 sft to 1933 sft
Rs. 21 2225 p
13
Emerald Heights
Modi Builders
Pocharam
Apartment
947 to 1895 sft
Rs.192 Rs.202
14
Palm Springs
Modi Builders
Kompally
Apartment
1200 to 1910 sft
Rs.205
15
Emerald park
Modi Builders
Pocharam, annojiguda Independent Villas
1494 to 1490 sft
Rs.325
16
Sunshine park
Modi Builders
Ghatkesar
Independent Villas
1494 to 1490 sft
Rs.2980
17
Harmony Homes
Modi Builders
Shamirpet
Independent Villas
1495 to 1490 sft
Rs.240
18
Greenwoods
Modi Builders
Dindigul
Independent Villas
1494 to 1490 sft
Rs.308
HORIZONS AP’s most credible real estate magazine
58
October - November 2012
Projects
Range
Amenities
Completion By Contact Person Contact No
hs - 1crore Call for Amenities Dec-14
Website
Ramakrishna 040 - 44605555, enquiry@adityacc.com www.adityacc.com 9912225072
00 / SqFt + Call for Amenities Summer 2013 Aditya Mitta 924 800 3369 AdityaMitta@Alekhya- www.AlekhyaTowers.com & / SqFt / Floor ConstructionsLimited.Com ited.com www.AlekhyaConstructionsLim
Call for Price Call for Amenities
May-13
V.Srinivas
9441115599
info@choiceinfra.com
www.choice-india.com
Call for Price Call for Amenities
Ready to Occupy V.Srinivas
9441115599
info@choiceinfra.com
www.choice-india.com
Call for Price Call for Amenities
Jun-14
9441115599
info@choiceinfra.com
www.choice-india.com
V.Srinivas
hs Call for Amenities 15 Months Call for Price Call for Amenities Call for Price Call for Amenities Under Development Call for Price Call for Amenities Under Development
. yards onwards Call for Amenities Under Development Srinivas Manda
9849210101/ 9246153993 7799777755 / 7799777766 info@laharigreenpark.com www.laharigreenpark.com 7799777755 / info@laharigreenpark.com www.laharigreenpark.com 7799777766 7799777755 / info@laharigreenpark.com www.laharigreenpark.com 7799777755 / 7799777766/ 7799777766
info@laharigreenpark.com www.laharigreenpark.com
9177444769, 8008755656, 9989500621, 9989800664
hyderabad@mantri.in
www.mantri.in
90 per sft ba- Call for Amenities ce plus FRP, rking charges her extras
Handing over commencing from Dec 31st 2012
125 to Rs. per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085888
sales@modibuiders.com
www.modibuilders.com
25 to 25- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085888
sales@modibuiders.com
www.modibuilders.com
50- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085888
sales@modibuiders.com
www.modibuilders.com
55/- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085889
sales@modibuiders.com
www.modibuilders.com
0/- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085890
sales@modibuiders.com
www.modibuilders.com
05/- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085891
sales@modibuiders.com
www.modibuilders.com
80/- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085892
sales@modibuiders.com
www.modibuilders.com
HORIZONS AP’s most credible real estate magazine
59
October - November 2012
Projects
S.No. Project Name
Developer / Builder
Location
Property Type
Unit Size Range Sqft
Price R
Independent Villas
2593 to 3131 sft
Rs.243 Rs.283
19
Stering homes
Modi Builders
Gundla pochampally,kompally
20
The Retreat
Rajapushpa Properties Pvt. Ltd.
Gachibowli, Kokapet- Residential Apartments Golden mile area
1250 Sq.Ft - 2107Sq.ft
Rs.36 60 lakh
21
Cannon Dale
Rajapushpa Properties Pvt. Ltd.
Gachibowli, KokapetGolden mile area
Residential villas
4200 Sq.ft - 4450 Sq.ft7Sq.ft
Price d
22
Open Skies
Rajapushpa Properties Pvt. Ltd.
Gachibowli, KokapetGolden mile area
Residential Apartments
4700 Sq.ft-5100Sq.ft
price d
23
Samvruddi Sirisampada
Sirisampada Constructions
Plot 271&284, 100 ft HT Line Road, Opp. Gem Motors Work Shop, Raghavendra Colony, Off MiyapurGachibowli Road, Kondapur, Hyderabad
Residential Apartments
1600 to 1625
Please
24
Sri Sairam Towers
Srisairam Projects Ltd.
Hafeezpet, Near HiTech City, Hyderabad
High Rise Residential Apartments
1500 to 5000
Rs.3,1 _ Ame others
25
Adi Emerald
Srinilaya Projects
Kondapur (Lahari Homes)
Residential Apartments (3BHK)
1828 to 2214
Please Price
26
Rock Cliff Apartments
Tirtha (India) Projects
APPA Junction/Bandlaguda
Residential Apartments (2-3BHK)
1125 to 1515
1900 p
27
Srinivasa Krupa
Vishal Projects Ltd
Trimulgherry R.T.C.Colony.
Residential Apartments
1835 to 2738
65 Lakh
28
Red Clay Court II
267 Sq Yrds
Rs. 350 Per Sq
24
West Mount Projects
Maheswaram Mandal HMDA Final Approved Adj to Harshaguda Residential Layout Habitation about 2.5 kms from ORR
COMMERCIA 1
Choice Center
Choice India Infra Projects S D Road Private Limited
HORIZONS AP’s most credible real estate magazine
60
Commercial
October - November 2012
40,000
Plea Price
Projects
Range
Amenities
Completion By Contact Person Contact No
Website
30 /- to 30/- per sft
Call for Amenities
Ready to Occupy Ms.Mary
9700085893
sales@modibuiders.com
www.modibuilders.com
9666988488, 9666988588
sales@rajapushpa.in
www.rajapushpa.in
6 lakhs hs
Call for Amenities December, 2013 Miss. Anusha, Mr.Damodar
details on call
Call for Amenities
December, 2013 Mr. Sathish Varma 9666988688
sales@rajapushpa.in
www.rajapushpa.in
details on call
Call for Amenities
Feb, 2013
sales@rajapushpa.in
www.rajapushpa.in
Mr. Sathish Varma 9666988688
e Call for Price Call for Amenities
November 2012 Nagewar Reddy, (Dasshera/ Ramaiah Deepavali)
7702979752/ 9676749359
sirisampadaconstruction s@gmail.com
100/- Per Sft enities and s
Call for Amenities
Ready to Occupy Pradeep
9393559595
info@srisairamgroup.com
www.srisairamgroup.com
e Call for
Call for Amenities July, 2013
Prasad Vasireddy
9963265559/ 9963465559
info@srisairamgroup. com
www.srinilayaprojects. com
per sft
Call for Amenities
Novemeber 2012
Subramanyam
9908155115, 9989937234
thirthaprojects@yahoo.in
www.thirthaprojects.com
hs to 1 Crore Call for Amenities
November 2012
Karunakar
9666669835
vishalpl@hotmail.com
www.vishalprojects.com
00/q Yrd
Ready for Registration
Dr. T S Rao
9848017162
info@westmountprojects. com
Call for Amenities
www.westmountprojects. com
AL PROJECTS
ase Call for e
Call for Amenities
Jun-14
V.Srinivas
HORIZONS AP’s most credible real estate magazine
9441115599
61
info@choiceinfra.com
October - November 2012
http://www.choice-india. com/
HORIZONS AP’s most credible real estate magazine
62
October - November 2012
HORIZONS AP’s most credible real estate magazine
63
October - November 2012
HORIZONS AP’s most credible real estate magazine
64
October - November 2012