P&W Aug Sep 2014 by Property & Wealth

contents

COVER STORY

Dynamic times

The remarkable journey of Anuj Puri over the years and his experience through the dynamic indian real estate saga.

It's cold here - very cold. The wind that blows over the picturesque mountains is icy, and it brings a message of change with it... a change that we all hope to see…

propertywise News & Events 13 Hotspots

Investment Sale – India’s Growing Real Estate Opportunity

How To Choose The Best Integrated Township 30 The Detriments of High-Rise Buildings 34 Page 44

Page 28

Affordable Homes - What They Are And What They're Not 36 CARE Assigns “NCR 6-Star” Rating to Magahun Mezzaria

prosperityseek

Page 42

Be a Prosperity Seeker

Amazing Buildings

Amazing Gadgets

World Heritage Sites

Eyecatchers

Amazing Getaways

Planetsavers 53 8 super rich people who are really frugal

Bookshelf 57 Location aspects for health and beauty through right vaastu

Top 3 Ways to Make Your Page 60

Page 50

Money Work for You

Healthy Living

Softcorner 64 04 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

from the

about this issue The new government promises to aggressively promote affordable housing. It is anticipated that property will once again become the most popular investment option. How India story has emerged as a world story, read all about hope for change & need to refuel growth for real estate, in our cover story this month with Anuj Puri, Chairman & Country Head JLL India. Lots of exciting knowledge sharing events coming up. PHD Chamber is organizing Infra Invest 2014, a conference on financing and investments for infrastructure and real estate development towards August end at JW Marriott, Chandigarh. This conference shall be an effective forum for exchange of ideas and information about infrastructure and real estate and delve on how to reinvent your approach towards this sector in order to capitalize on the important opportunities that exist in today’s market. FICCI is organizing a one day conference cum expo on Housing & Urban Development in North India on 5th September 2014 at Chandigarh. It aims to discuss trends, challenges and opportunities in Housing & Urban Development in North India with focus on Punjab & Tri-City. ‘PnWConnect’ a brand owned by Idea Catalysts Inc, publishers of Properrty & Wealth is organising a two day expo ‘REAL ESTATE INVESTMENT SHOW’, at Himachal Bhawan, Chandigarh on 4-5 October 2014. A new government, an alluring scent of optimism in the air. Is India back on the global investment agenda? An elite gathering of realtors will deliberate this and more at GRI INDIA 2014 on 7-8 October 2014 at TAJ PALACE Mumbai. And so to global investors; is now the right time to return to India? Will the non-bank lenders provide the much needed debt financing for new projects? Will RBI’s stimulus make norms easier for banks to access and disperse funds? Will REITS really throw $10 billion into the sector as some experts predict? India GRI has lots of pertinent topics to deliberate on. News section is grabbed by new launches & new entrants. Figure out the tallest residential tower in Bangalore by Golden Gate and World’s tallest residential building by Lodha Group in Mumbai. The new entrants include Century 21 Real Estate Franchisor & Sotheyby’s International Realty both leading international real estate franchisee groups. There are only two times a banker will call you sir or ma’am, and that’s when you have $ 1 million on deposit, or when you owe the bank $ 1 million. Do not miss the book review from one of my personal favorites, Building Wealth: From Rags to Riches Through Real Estate, By Russ Whitney Jasmeet Dhamija Editor-in-Chief

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CONTRIBUTORS AND ASSOCIATES Publisher & Editor-in-Chief Jasmeet Dhamija jasmeet@propertyandwealth.in

editorial

Editor Charu RS charu@propertyandwealth.in

Status quo to what!

Feature Writers Monika Tandon, Satpal Kataria, Prabhjit S., Rupinder K.

So the Modi chankya is all laid up and the neetis as well as netas are set, presumptuously on right person for right place bases! As common to any new governance, the fresh electrifying list of goals and tasks has cut across the ennui that has pervaded for long. It has certainly started to twirl up winds of change, of hope, of good.. Taking another step further, the Finance Minister’s flag up to the pass-through status of taxation of REIT has infused in much needed boost to the Indian real estate sector and has carved the way for an attractive avenue of raising funds and easing liquidity. Owing to the expectation of faster decision-making, positive reforms & pro- business agenda set by the new guard, the current market sentiments are up-beating & reflect high degree of optimism. No wonder, the country has once again started to lure the foreign investors to return to the Indian real estate market after fleeing the country in the wake of the financial crisis. Its for sure that the status quo will change- for what, would be clear in the quarters to come! Until then happy reading!- Charu RS Editor

Art Director & Visualiser Rajesh Bhardwaj Graphics Team Sunil Rana, Mamta Rawat Advertisement & Sales Navjeet Sood (COO) (M) 98106 30665, 95694 74873 nsood@propertyandwealth.in Subscription Ajay Gupta (M) 9216841278 Photography Rohit Bhatia Pre Press Team: Gopal B. Production Team: Vijay Maurya, Jitender Kumar. Advisory Board Harpreet Pooja & Associates Architects Rajiv Gupta & Associates Chartered Accountant Vikas Chatrath, Advocate Printed & Published by Jasmeet Dhamija at Plot No. 437-A, Industrial Area Phase-2, Chandigarh. Owned by Jasmeet Dhamija, 220, Sector 19-A, Chandigarh & Printed at Savitar Press, Plot No. 820, Ind. Area Ph-2, Chandigarh. Print Production

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PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 07

cover story It's cold here - very cold.The wind that blows over the picturesque mountains is icy, and it brings a message of change with it... a change that we all hope to see…

Dynamic times

The remarkable journey of Anuj Puri over the years and his experience through the dynamic Indian real estate saga.

Anuj Puri, Chairman & Country Head JLL India

“I

t's cold here - very cold. The wind that blows over the picturesque mountains is icy, and it brings a message of change with it... a change that we all hope to see…India is far away, but my thoughts today have never been closer to my country. I'm also thinking of a power ballad by the Scorpions that was all the rage in the '90s, which went "the wind of change blows straight into the face of time..." (DAVOS DAIRIES) I couldn’t find a better introduction to this piece than the words from the man himself who has been there, done that! Literary speaking he has seen it all, icy cold winds, rocky terrains and some good sunshine… his 2 decade long journey in the Indian Real Estate has never been a cakewalk. However with true hopes, dedicated hard work and an unmatched intellect quotient, Anuj Puri has ruddered through the not so steady industry, quickly learning the tricks of the trade and realizing that this is not a place for those who are prone to motion sickness! Charu R.S. 08 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

The Journey it has been! Puri’s professional journey began with a longish stint in chartered accountancy and loss adjustment firms, where he assumed directorship of the Delhi office for Trammell Crow Meghraj Property Consultants Pvt. Ltd (TCM) in 1997, one of the most successful real estate consultancy in India back then. He soon went on to become the Managing Director of TCM managing around 1000 staff members across 10 offices in the country. With what Puri quotes as one of the high points in his career, the merger of TCM with the global giant called Jones Lang LaSalle (JLL) in June 2007 & ever since there’s been no looking back! “It was a merger of equals – and one of my proudest achievements to date. Both firms brought an equal amount of business and margin in the combined entity. The merger gave us a huge edge over rival real estate consultancy firms - and we have maintained this edge ever since.” says Puri cheerfully. And like hard work comes to fruition over a period, Puri is currently riding high with JLL being named the Best Property Consultancy 2014 in the very beginning of the year, by The International Property Awards Asia Pacific 2014. Puri over the years has donned the boots of a multi disciplinary advisor, steering transactions ranging from real estate to social development projects and expertizing in planning, demand assessment studies and transaction services, technical analysis, marketing strategies and fund & investor sourcing along with many others. Leading the India chapter of the international investment management firm offering specialized real estate services, Puri at JLL manages to 6800 people across offices in 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore). JLL in India provides comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels,

health care, senior living, education and retail advisory and Puri proudly quotes his annual business turnover being INR 800 crores. a change that we all hope to see… With the change of guard at the centre and for the first time in many years a majority government being formed, winds of change are certain to blow. The Indian economy is perched on the threshold of recovery and there is a dire need to refuel the growth trajectory. India has a long way to go when compared to developed countries. This is true in all respects and includes the real estate sector, as well. However, few developed countries promise the kind of growth that a young and rapidly emerging country like India does. The established markets of developed economies are about stability, while the India story has and will continue to be about growth. As per Puri, India’s real estate market has been faltering for quite some time as the economy remains under stress. Realty prices have been surging in an unprecedented manner unlike income levels which are not rising. The price increase is mostly speculative and can be attributed to the predominantly

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cover story capital-driven nature of the sector. The property market in India has always seen typified by unorganized and fragmented growth. However, over the past decade we have seen a big shift in the fundamental growth drivers. This has attracted private equity players and other real estate funds from abroad. In addition, existing and new players in the development business are eyeing viable and profitable projects. The market continues to grow in all major markets of the country. In commercial real estate, Mumbai, Pune, Delhi, Bangalore, Chennai and Hyderabad have attracted the interest of IT/ITES companies, who are either setting up their bases or looking for expansion. The suburban localities in these cities are experiencing a high level of activity due to easier availability of land, construction of large floor plates; offer of built-to-suit facilities and at lower rental. Things are also looking up for residential real estate once again. Post the arrival of a new government, the Indian economy is once again poised to reach near-normal rate of growth. As a result, residential property sales will also revive. Recent trends and the foreseeable outlook suggest that the volume of sales will rise as developers focus on mid-segment and affordable homes. On the other hand, increased focus on affordable to mid-segment housing would help bring the average prices down, hence retaining the value of properties. The new government promises to aggressively promote affordable housing. Puri anticipates that property is once again going to become the most popular investment option, as there will be significant appreciation in real estate prices on the heels of higher demand in the coming years. With the easing of regulations, developers are expected to speed up the construction process, providing relief to buyers who have already invested. With the 45 days old government out with its maiden budget, it has been able to weaves in the thread of hopes for the real estate.

“We are, however, satisfied that the real estate sector is once again headed in the right direction.”

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“The Union Budget 2014-15 was presented in the parliament under economic circumstances that required tax revenues to keep pace with targets. Considering the state of government finances and the current situation – below-normal monsoons, Middle East tension leading oil price volatility, the weakness of the India rupee etc., there was not much room for populism.

BUDGET HIGH POINTS • • •

Construction of highways & metro rail systems will boost real estate in respective cities Creation of 100 smart cities & Rs 7060 Cr allocated towards creation of 100 smart cities to have positive implications Retail real estate to get thumbs up with Rs 5000 Cr for warehousing sector

The Finance Minister took a cautious, yet courageous path with his budget announcement,” says Puri. Puri adds that construction costs have been rising at the rate of 17 percent over the last three to four years, and the budget has not provided enough measures to bring down these costs. Contrary to expectations, material costs involved in real estate construction will remain high over the near-to-medium term, which is bound to put pressure on developers’ margins. He feels the infrastructure and manufacturing sectors have been given paramount importance, since these are job-creating verticals. Banks will now be encouraged to extend long-term loans for infrastructure projects without any regulatory preemptions such as CRR, SLR and priority sector lending norms. This additional enforcement of banks to support the creation of infrastructure will result in faster infrastructure creation and the consequent benefits to the real estate sector. In his opinion, overall, the real estate sector’s expectations have not been met completely in the budget. However, given the economic situation prevailing in the country, this is not really surprising as the government needs to balance myriad issues while addressing growth.

International Diaries! “India has an important place in the larger global picture”. Talking about the global scenario, Puri is all hopes for India especially in the light of changing world economic order. At the recent Davos Submit, it was great to see the highest of dignitaries of the world eyeing India as an influencer and seeking Indian opinion on global issues. On the popular never ending India v/s China debate, Puri admits that China’s government has a strong reputation for thinking on its feet and leveraging global business opportunities. “China’s focus on world-class infrastructure is also nothing short of admirable – and here, again, India would have to concede a certain shortfall.”, says Puri. India’s political system is more suited for long-term equity investments, while China holds more attraction for mid-term investors. Naturally, this also reflects on the country’s real estate market via a more robust long-term health prognosis. However, interestingly we have seen two types of corporate occupiers heading to each of these two countries. The services, knowledge talent seeking companies are heading for India – demonstrated through growth in IT and ITES, banking etc. whilst the large scale manufacturing and skill based corporates are expanding their base in China. In Puri’s opinion, India’s scale of development stands a strong chance of outstripping that of China for a couple of fundamental reasons. The first is that most of the land in China is unrelentingly government-owned, which puts a default ceiling on overall availability. This is not the case in India. Moreover, India relies more on IT, which requires less land and infrastructure than manufacturing – which just happens to be China’s forte. Well more than anything else what’s notable is that India has an important place in the larger global picture. “ I look in the future and see a new India unfolding, and this India fits very well into the concept of a reshaped world. We are here today because India has an important place in the larger global picture. We are here to be witnesses to and participants in the evolution of economies like ours. And more than ever, I’m proud to be an Indian. The future's in the air, I can feel it everywhere blowing with the wind of change..."

China’s focus on world-class infrastructure is also nothing short of admirable – and here, again, India would have to concede a certain shortfall.

The services, knowledge talent seeking companies are heading for India. Whilst the large scale manufacturing and skill based corporates are expanding their base in China.

India relies more on IT, which requires less land and infrastructure than manufacturing – which just happens to be China’s forte.

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news & events REAL ESTATE & INFRASTRUCTURE NEWS EVENTS ROUNDUP

KEEP YOUR SELF ABREAST WITH REAL ESTATE SCENARIO Subscribe to Property and Wealth For subscribtion details turn to page 65

news&events Earth Group Launches a ‘Marvel’ in Lucknow

Aesthetically designed “Earth Marvel” to come up at Raebareli road Lucknow

Earth Group of Companies has launched “Earth Marvel”, its latest residential project at Raebareli road, Lucknow. Through its new project Earth Group will offer a great location, incomparable facilities & amenities, landscaped open spaces and beautifully laid out architectural design. Earth Marvel will offer 2 and 3 BHK residential apartments. Earth Marvel has a Vaastu compliant layout with lush green landscape, water bodies, jogging track, Gazebo and lily pond. While all the apartments will have balconies with every room, the project will also have facilities like swimming pool, Kids Zone, secured gated community and ample parking spaces. Announcing the launch, Mr. Kalim A Lohar, Head - Marketing & Communications of Earth Group of Companies said, “At Earth we believe in building home and not just houses. Earth Marvel reiterates our same philosophy as it offers comfort and blissful living. It will not only have lush green surroundings but

also an infrastructure based on green building concept.” To make your living more blissful Earth Marvel will have Special Zones as Sports Zone- Tennis Court & Basket Ball Ground; Health Zone Area- Spiritual Zone, Yoga & Aerobics Classes Area;Art Zone Area - Music, Dance & Painting; Caring Zone - Round-the-clock Chemist Shop and Hospitals in neighborhood; Entertainment Zone- Barbeque Corner, Party Area with Pavilion and Aromatic Garden; Club Zone Area - Spa Facility, Card Room, Ball Room, Salsa Dance Classes etc.; Fine Dining Zone- Lounge and Roof Top Cafeteria, Creche facility. Earth Marvel will have 10 blocks of multi-storey apartments with 2 and 3 BHK flats. 2 BHK will have a super area of 1225 sq ft and 3 BHK will have 1545 sq ft. A flat in project will cost Rs 2650 / sq ft on construction linked plan and Rs 2350 / sq ft on Down payment plan.

forthcoming events ArchiBuild - 2014 by PHD Chamber Venue: Himachal Bhawan, Chandigarh Date: 26-28 September, 2014

Chandigarh

Housing & Urban Development in North India by FICCI Venue: Hotel Taj, Chandigarh Chandigarh Date: 5th September, 2014 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 15

news&events Golden Gate Properties Launches Presidential Tower, Tallest (50 storeys) Residential Tower in Bangalore India’s first “Snag Free” Certified Project located at Yeshwantpur, the Manhattan of Bangalore in making Bangalore

best-in-class fully loaded club house on the campus, ensure life remains at its pulsating best- be it in the sky or on the ground. The Presidential tower will provide the elite of Bangalore with the ultimate premium lifestyle experience. This is Golden Gate’s latest offering in the Premium Luxury segment, launched on the back of the resounding success of its

Golden Gate Properties Ltd, South India’s leading property developer, announced the launch of its prestigious new project “Presidential Tower,” in Yeshwantpur. The Presidential Tower, rising 50 storeys and 151 meters high, will be the tallest residential tower in Bangalore (and in fact South India too!). The Presidential tower is located in the hub of Yeshwantpur, in close proximity of the Outer Ring Road as well as the World Trade Centre, Orion mall, Star hotels, World class healthcare, leading schools, colleges and the latest civic conveniencemetro rail station. The principal concept architects for the project are Llewellyn Davis of UK. Replete with a 20,000 square feet expansive skypark on the 50th level, offering a bouquet of superlative amenities that include an Infinity pool, children's Fun Pool, Dance Floor, Health Club, Bridge Gym, Meditation park, Terrace Party Deck, Outdoor Decks, Viewing Gallery, not to mention several more at the ground level. These and the 60,000+square feet

earlier projects. According to Mr. K Pratap, Promoter of Golden Gate Properties Ltd., “We aspire to set new industry standards in guaranteeing the timely delivery of our project within 36 months from the commencement of construction. This guarantee is assured by way of a bond that is signed by the promoters. In case of delay beyond the guaranteed delivery date and an additional four months grace period, the customer is compensated for the delayed period, at the rate of 10% per annum, for the amount invested. We have very consciously pegged the penalty far higher than projects from other developers, as we are very confident of our ability to deliver as per committed schedule.” “Bangalore is the third largest hub for high net worth individuals (HNIs) with over 10,000 individual dollar millionaires. As residents of the city become wealthier, the demand for highend luxury residential apartments grows.

forthcoming events GRI INDIA Venue: Taj Palace Mumbai Date: 7-8 October 2014

Mumbai

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REAL ESTATE INVESTOR SHOW by PnW Connect Venue: Himachal Bhawan, Chandigarh Date: 4-5 October 2014

news&events Century 21 Real Estate Franchisor Enters India Mumbai

Century 21 Real Estate LLC, the franchisor of the one of the world’s largest residential real estate sales organization has announced its expansion into India. The Global Real Estate brand, which has operations in 77 countries with approximately 7,100 offices and 102,000 sales associates, continues its aggressive global expansion. CENTURY 21 India will look at implementing international best practices and creating a new age real estate broking experience for buyers and sellers throughout India. Considering the same, India has the potential to absorb up to 2500 real estate franchises in the next 5 years. Through its professional training & global presence, real estate agents can now take advantages of the vast CENTURY 21 franchise network locally and globally.

professional education of real estate practitioners who guide customers through one of the most crucial decisions of their lives i.e. finding and buying their home. With its state-of-theart technology, formally trained workforce, expert partners, specialized and researched knowledge base, established systems and global lineage, CENTURY 21's best practices will help to enhance the image of the industry. With over 7,100 independently owned and operated franchised broker offices in 77 countries and territories worldwide, CENTURY 21 in affiliation with more than 102,000 sales professionals. The CENTURY 21® SYSTEM is actively increasing its presence globally, with international operations throughout Europe, North America, Latin America, Middle East, Australasia and Asia.

CENTURY 21 India also aims to institutionalize the

Sotheby’s International Enters Real Estate Franchise Business in India New Delhi

Sotheby's International Realty Affiliates LLC has signed an agreement with RealPro Infra Private Ltd to develop the Sotheby's International Realty brand in North India with the opening of North India Sotheby's International Realty. Amit Goyal is co-owner and chief executive officer of the firm, which will serve the luxury residential real estate market throughout Northern India. The first office begins operations in September 2014 in New Delhi followed by Gurgaon, Noida, Chandigarh and Jaipur. "Northern India is one of the most exciting, beautiful and fastest growing markets in the world, with a developing luxury real estate market," said Philip White, president and chief executive officer, Sotheby's International Realty Affiliates LLC. "Expansion into India was one of our core objectives for this year, and I am proud to welcome Amit and his team to our global network." "We are delighted to become part of the Sotheby's International Realty worldwide network," said Goyal. "The luxury residential real estate market in India is beginning a period of expansive

growth and the Sotheby's International Realty brand will meet the needs of high net-worth individuals internationally looking for luxury homes in India and overseas using the brand's global platform. We also envision future appointments of exclusive representation of luxury residential properties. India's luxury residential market is poised to grow rapidly, supported by strong economic growth, and we are in an ideal position to lead this growth by leveraging the Sotheby's International Realty global platform." The Sotheby's International Realty network currently has more than 15,000 independent sales associates located in approximately 720 offices in 52 countries and territories worldwide. North India Sotheby's International Realty listings are marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, the firm's brokers and clients benefit from an association with the Sotheby's auction house and worldwide Sotheby's International Realty marketing programs. Each office is independently owned and operated.

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news&events Armani/Roca will Create Bathrooms at The World Towers by Lodha Group in Mumbai, The Tallest Residential Building in the World The Armani/Roca collection, a unique concept in interior design for bathrooms, is featured in some of the most luxurious residential complexes in the world. Mumbai

A symbol of luxury around the world, the Armani/Roca collection will now be featured in the bathroom spaces of the luxury development The World Towers by Lodha Group in Mumbai, India, the tallest residential building in the world. This collection is a unique concept in bathroom interior design, which is based on integrating all of the required elements into a space in a comprehensive configuration. The result of the collaboration between two leading firms in their respective sectors, the Armani/Roca collection combines the aesthetic values that define the prestigious Italian design house with the advanced technological solutions of Roca. Bringing these concepts together results in a bathroom design in which harmony and sensuality meet comfort and elegance. This balance is made possible by the selection of materials, the variety of textures, and the surprising use of space. 18 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

The unique Armani/Roca concept will be used in The World Towers, thanks to an agreement between Giorgio Armani and luxury property developer The Lodha Group Located around a grand 2-acre courtyard in an 18-acre expanse in South Mumbai, The World Towers will be the first design in Asia by the Armani/Casa Interior Design Studio which will have exclusive three- and four-bedroom residences, luxurious villas with private swimming pools, and duplex mansions with personal swimming pools, gymnasiums and elevators. The innovative bathroom collection by Armani/Roca has become a symbol of luxury and fine taste throughout the world. It also occupies a leading position in some of the most luxurious commercial districts in the principal capitals of fashion, such as Madison Avenue in New York and Xintiandi in Shanghai.

news&events 3 Smart Cities in five to seven years Mumbai

India's first set of three smart cities will come up in the next five to seven years in Gujarat, Mumbai and Delhi-Mumbai corridor, it was announced here Friday. Three hi-tech and energy efficient cities with connected communities will be based on the Barcelona smart city model implemented by Cisco Systems. "We cannot divulge the name of the smart cities but there are three of them, one in Gujarat, one in Mumbai and one in the Delhi-Mumbai corridor. Plans have been drawn and the process is in the last stage, said Koushik Nath, regional head-systems engineering, Cisco Systems India Pvt. Ltd.

organizations. Nath said though the Narendra Modi-led NDA government at the Centre has given a strong positive signal for the proliferation of smart cities in India, challenges remain in getting the work done in time by the state governments. "India is 10 years behind countries like U.S. and others in the concept of smart cities. You need smart people to live in smart cities. India has a long way to go... it is not yet ready for them," he said, adding there are sufficient funds available for such ventures.

He was speaking at a discussion in the ICT East 2014 organised by the Confederation of Indian Industry here. The project is in collaboration with the central government and other

Capital Gains Tax on Residential Property New Delhi

Finance Minister Arun Jaitley in his first Budget proposed changes to income tax laws related to capital gains from property sale. The finance minister put a cap on the amount of tax-saving by investing long-term capital gains from property sale in specified bonds, also called as capital gains bonds. Mr Jaitley also clarified that investment should be made in one residential house property situated in India for availing longterm capital gains benefit. As per the current income-tax rules, long-term capital gains on sale of a property held for three years, attracts 20 per cent tax. Exemptions are granted under certain conditions. These the proposed changes to the income tax laws.

property, subject to certain conditions. To get the captain gains exemption, the assessee needs to purchase the new residential house within a period of one year before or two years after transfer of the original house. For under-construction properties, the construction needs to be completed within three years from the date of transfer of the original house. It has now been clarified that the investment for getting capital gains benefit should be made in one residential house property situated in India, not abroad. This amendment will apply in relation to the assessment year 2015-16 and subsequent years.

Capital gain exemption on residential house property: As per the existing tax provisions, long-term capital gain arising from sale of a capital asset is exempt under Section 54/54F if invested in purchase or construction of a house

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news&events Maya Garden launches first ever 6-Bedroom Flats in Region Gated community to have 48 luxury flats Zirakpur

Maya Garden City announced the launch of six bedroom flats, the first of its kind project in the region. These luxury flats, each costing Rs. 1.82 crore would offer high-end facilities in the gated community of the project on Chandigarh-Ambala highway, a prime location in Zirakpur. Addressing media persons here, Mr. Sandeep Pruthi, General Manager, Maya Garden, said, each of these duplex flats are being constructed on an area of 5110 square feet and there are 48 of such flats in all, which would come up in two 12-storey buildings. He informed each building would house 24 sixbedroom flats, having a 24-hour power and water backup. Mr. Pruthi said there will be two approach roads to the project, a 66 feet wide road from Nagla road and a 200 feet wide road from the New Ring Road, both of which have got approval of the government. He informed possession of these six bedroom flats would be given in November next year.

The project, with each flat having a modular kitchen, boasts of a clubhouse, swimming pool, health club, yoga centre, library, community hall, card, carom, billiards and table tennis facilities. Some of the common features of our properties and project include earthquake resistant RCC frame structure, lush green gardens, jogging track, kids play area, 24×7 security, fire fighting arrangements in each block, wide and well-lit internal roads etc. Each floor will be provided with two lifts. Mr. Pruthi informed if someone is interested in a fully furnished flat, it would entail an additional expenditure. Maya Garden City project is also offering luxury 5-bedroom flats. There are 88 such flats and 4 penthouses in two different blocks, each costing around Rs 1.04 crore.

Conference and Exhibition on Housing & Urban Development in North India Chandigarh

FICCI is organising a one-day conference and exhibition to discuss trends, challenges and opportunities in Housing and Urban Development in North India with focus on Punjab and Tri-City. The conference aims to establish itself as a significant platform in North India to deliberate upon issues which are critical to the growth of housing and urban infrastructure sectors in the region and explore opportunities for the authorities and industry to usher in holistic and planned development of the region in a sustainable manner. North Indian states play an important role in shaping the economic environment of the country due to their proximity to India’s capital, New Delhi. With big infrastructure projects and industrial corridors being planned in North India, a new wave of development is soon going to sweep the region especially in Punjab and Tri-City. The demand for housing and urban infrastructure in North India will grow tremendously as these projects start to materialise. This first conference in North

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India will sensitise the Government, Urban Local Bodies, Planners and Real Estate industry about the scale of challenges, opportunities and new approach to development of futuristic, smart and sustainable cities in in Punjab and Tri-City. Senior Government officials from Government of India and Government of Punjab as well as senior real estate industry experts will address this conference which will discuss strategy for expediting housing and urban development in Punjab and Tri-City, need for affordable housing policy for Punjab, planning of smart & sustainable cities and Transit Oriented Development in the state and region with respect to Amritsar-Kolkata and Delhi-Mumbai Industrial Corridors. The event is expected to attract participation from a wide section of stakeholders in the northern region.

news&events

GRI INDIA 2014

7-8 October, Taj Palace Mumbai A new government, an alluring scent of optimism in the air. Is India back on the global investment agenda? It’s not just Mumbai and Delhi attracting attention. Mega Townships and deferred malls are back on track, corporate tenants are demanding Grade A offices, Bengaluru and Kolkata are seeing infrastructure projects creating new real estate plays, and Hyderabad is enjoying political stability and growth.

KEYNOTE ADDRESS India in a global investment context SANJAY NAYAR Member & Head, KKR INDIA Discussions: FOREIGN INVESTORS – Monsoon of money or too soon to tell? PRIVATE EQUITY – Is Indian real estate still an attractive destination? ARE THERE ENOUGH CASH-strapped developers to interest the opportunistic funds? DEBT VS EQUITY – What’s the right balance? DEBT FINANCING – Traditional, mezzanine and alternative; how to get access?

And so to global investors; is now the right time to return to India? Will the non-bank lenders provide the much needed debt financing for new projects? Will RBI’s stimulus make norms easier for banks to access and disperse funds? Will REITS really throw $10 billion into the sector as some experts predict?

REITS – New dawn or false dawn? POLICY & REGULATION – Will a national regulator de-stress developers? TIER 2 -3 CITIES – Pricing themselves out or ripe for investors? MEGA TOWNSHIPS – A growth story or stunted by infrastructure challenges?

India GRI is your best opportunity to understand what your clients and peers are really thinking. To get to know each other on a first-name basis. And to engage in a meaningful way. From this comes new business opportunities and lasting relationships.

DELHI NCR - Masterplan & Emerging corridors; enticing opportunity or road to nowhere? HOTEL FINANCING – Is debt still too expensive to satisfy growth plans? HOTEL DEVELOPMENT - Where are the next big hotel

A GRI meeting is based around informal discussion groups in which everybody participates. Each discussion contains a Moderating Chair, and a selection of co-Chairs who participate no more, no less than anyone else in the room. Group discussions run concurrently, several going on at the same time in separate rooms. Walk in and out at your convenience and attend as many sessions as you want.

opportunities in India & South Asia? COMMERCIAL – Demand-supply gap for Grade A office space? RESI – Luxury, middle-class, affordable: What’s hot and what’s not? LUXURY RESI – A subsector in hard times or enjoying the lap of luxury? LUXURY RESI – A subsector in hard times or enjoying the lap of luxury

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 21

news&events

INFRA- INVEST 2014

Conference on Financing and Investments for Infrastructure and Real Estate Development 29th August, 2014- J.W. Marriot, Chandigarh India's Planning Commission has projected an investment of US$ 1 trillion for the infrastructure sector during the 12th FiveYear Plan (2012–17), with 40 per cent of the funds coming from the country’s private sector. India's focus on infrastructure since the turn of the millennium has helped make it the second fastest growing economy in the world. The country’s constant growth gives investors, domestic and foreign, a tremendous opportunity for investment in its infrastructure and real estate sector. A strong infrastructure sector is vital to the development of a country's economy. The new Indian government has played an important role and has drawn an ambitious infrastructure development programme for the next 10 years according to which “A fast-track, investment friendly and predictable PPP (public-private participation) mechanism will be put in place”. In a thrust on urban infrastructure, the government will build 100 cities focused on specialized domains and equipped with world-class amenities. The Indian infrastructure and real estate sector continues to be a favoured destination for global investors. Several large global investors, including a number of sovereign funds, have taken the first move by partnering with successful local investors and developers for investing in the Indian real estate market. The National Council for Applied Economic Research (NCAER) estimate indicates that the middle class is expected to grow to 53 million households in FY16 and 114 million households in FY26. With this underlying demand as well as increases in disposable income and consumption, there is definitely a potential for continued growth. In this backdrop, PHD Chamber is organizing a Conference on Financing and Investment Opportunities in Infrastructure and Real Estate Sector on 29th August, 2014 at J.W. Marriot,, Chandigarh. The objective of organizing this conference is to give a 360 degree on trends, strategies, risks, and opportunities in Project 22 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

Financing and attracting foreign investments for Infrastructure and Real Estate Industry in North India with discussion on: • Assessing the feasibility of project financing and PPP structure in infrastructure and Real Estate Sector • Managing and allocating political, social, technological, operational and financial risks efficiently • Exploring the options and attracting the Foreign Fund Investments for Indian Infrastructure and Real Estate players. • Understanding the Policy and regulatory framework in which the Infrastructure and Real Estate sector operates. • The Way Forward- Presentation of the sector overview by Knowledge Partner This Conference shall be an effective forum for the exchange of ideas and information about infrastructure and real estate and delve on how to reinvent your approach towards this sector in order to capitalize on the important opportunities that exist in today’s market. In this event, leading infrastructure and real estate Developers, professionals and experts will participate and deliberate upon several important topics critical to future infrastructure and real estate success. The event is designed for the Infrastructure and Real Estate industry and it is an opportunity to network with leading edge companies, share ideas and connect with people in the real estate industry. It would bring together all the key stakeholders to engage in serious deliberations that include: • • • • • • • • •

Developers/ Builders Building Construction Manufacturers Real Estate Service Providers Brokers and Traders Fund Asset Managers Technology Consultants Finance Companies and Investors Trade Associations Lawyers/ Accountants

CHANDIGARH CAPITAL REGION PROPERTY HOT SPOTS ZIRAKPUR R ZONE 1 ZIRAKPUR R ZONE 2 MULLANPUR - NEW CHANDIGARH KANSAL AEROCITY MIXED LAND USE & INDUSTRIAL SECTORS 82, 66, 66A, 66B LANDRAN - BANUR ROAD (RIGHT SIDE) LANDRAN - BANUR ROAD (LEFT SIDE) KHARAR LANDRAN - ROAD BALONGI - KHARAR ROAD

FOCUS THIS MONT H ZIRAKPUR R ZONE 1 + WEEKEND HOMES

WEEKEND/HOLIDAY HOMES

Tata Myst Kasauli

DLF Samavana

Location: Foothills of the Himalayas near Kasauli at 5,500 ft. above sea-level. Highlights: Eco Villas, Myst is gated 12 acres complex, with only 76 units. It includes all modern facilities like Club, Pool, Security etc. Options: 2/3 BHK Duplex 2525-4915 sq ft.

Budget Planner

100

150

200

250 300 350 400

` in Lakh

Location: Kasauli Hills at 5000 feet, nearly 15kms from Kasauli amidst pristine environment. Highlights:Each Villa & Apartment providing a panoramic view of Mountains. Landscaped Gardens, Swimming Pool & Gym. International 5 star Hotel Options: Villas and Apartments

Budget Planner

90 100 150 >200

Sales Organisers/Dealers: Call 9216841278 to Advertise in this space

Zigma Wealth: 8146992437

JLPL - SANAWAR HILLS

New York Residency, Kandaghat

Location: New Lawrence School Sanawar, Kasauli Highlights: Each cottage has been individually conceived and designed according to layout of the land. and parks etc.Options: 3/4/5 BHK Luxury cottages with servant quarter, 3200 to 5200 sq ft.

Budget Planner

90 100 150 >200

` in Lakh

Location: Kandaghat-Chail Road Near SIMLA, Village Kuhari Highlights: Gated project with flats, cottages and commercial space with facilities like park, playing area. Non Himachalis can buy. Options: Studio Apartment, 2/3BHK

Budget Planner

90 100 150 >200

Sales Organisers/Dealers: Call 9872635220 to Advertise in this space

Mega Marketing: 9815740230

Kaisville

Pine Wood Cottages

Location: Kais Village, Kullu Highlights: First of its kind group housing in HP, Unique terraced landscaping all around. Options: Exclusive low rise designer apartments and Luxurious villas

Budget Planner

90 100 150 >200

SS Associates: 9876500036

` in Lakh

Location: Solan Simla Old Road, Kumar hatti Highlights: Beautiful fully furnished apartment With un spoilt view of the mountains. An ideal hill farm house. Options: 2BHK and 3 BHK

Budget Planner

90 100 150 >200

` in Lakh

Call 9815601347

DISCLAIMER: Features, information & Budget Planner given above are indicative only. Please contact respective builder for more specific & accurate information. Property & Wealth is not responsible for any decisions taken through use of above information.

26 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

9216635220

9216635220 98156-01347 98726-35220, 98726-35220,

98726-35220, 98156-01347

property wise

Investment Sale – India’s Growing Real Estate Opportunity In this mode, investors acquire a stake in partially or fully-leased properties rather than entering at early stage of construction. This eliminates the execution risk for investor and provides regular rental income along with possibilities of capital appreciation, and developers enjoy better valuations for their properties.

Investment Sale - Gaining Ground eal estate is a business that requires regular funding, be it at the acquisition or execution stage. To raise funds, developers in India opt for modes like joint venture, pre-sale and construction finance. Construction finance can work out cheaper but is difficult to obtain because of the strict guidelines laid down by the Reserve Bank of India. Other routes are relatively easier but cut into a developer’s profits, since they involve sharing approval as well as execution and 28 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

marketing risk for the project. Considering the time and complexity involved in the approval processes in India, coupled with delays in execution due to various reasons, a new option is becoming popular among developers and investors. This option is the investment sale route. In this mode, investors acquire a stake in partially or fullyleased properties rather than entering at early stage of

construction. This eliminates the execution risk for investor and provides regular rental income along with possibilities of capital appreciation, and developers enjoy better valuations for their properties. Residential – Not a Preferred Asset Class For Investment Sales Since the objective is to hold the property for a longer term to earn regular rental income while retaining an option to exit later, the quality of development as well as the project’s tenants become very important. This puts commercial properties at a distinct advantage, since a commercial lease transaction is, in most cases, an agreement with a corporate for a longer tenure of between 3 - 9 years. A residential lease arrangement, on the other hand, is with an individual and invariably for a shorter term that usually does not exceed 11 months. Also, while office or retail assets provide higher yields of 10-12%, the yield for residential properties rarely exceeds 3-5%. Hence, residential - while indubitably the most popular asset class in India - is not preferred for investment sales transactions. India Offers Huge Investment Potential Real estate in India is currently at an interesting juncture. While it remains impacted by an uninspiring economic scenario that is likely to prevail for some time to come, Indian real estate’s long-term potential is wholeheartedly acknowledged by investors across the globe. With the government taking active steps to improve transparency in the sector, investor interest is expected to grow multi-fold in the future. The Indian office sector in the top seven cities is currently valued at around USD 72 billion. Completed office space accounts for approximately USD 45 billion, while underconstruction stock accounts for USD 27 billion. In terms of area, completed A Grade office stock in the top seven cities is as high as 376 million square feet and is highly concentrated in Mumbai, Bangalore, Chennai and the NCR region, which together constitute more than 80% of the total area. Out of this A Grade office stock, nearly 45% is FDI compliant which, combined with higher rental yields, has made India an automatic choice for global investors. Weak Rupee And Probable REIT Listing The country’s weakening domestic currency has made investment in India all the more lucrative. If an investment of one USD fetched a foreign investor an asset worth INR 49 two years back, it fetches an asset worth of INR 59 today. While this is a double-edged sword, the advantages of a good entry point can certainly not be ignored. If the REIT commences in India, it will also provide easier exit with better valuation.

Challenging Environment While India offers interesting investment sale options, the challenges it presents remain. The restriction on investments into specific asset classes, ever-changing policies on FDI, taxation and development, coupled with a lack of transparency in the system and high amount of friction in approval mechanisms, have led to an uncertainty in yields and tenure of lock-in for investments in real estate. This has affected investor sentiment and as a result, FDI in real estate and infrastructure in India dropped considerably from USD 5.8 billion in FY10 to USD 1.3 billion in FY13. New Government – New Hopes The new government at the centre and its various ministries have been distributed with focus on ‘minimum government, maximum governance’. By giving high importance to good governance and development in his mandate, India’s new Prime Minister has made it clear that he will go the extra mile to encourage foreign investment into the country and, in turn, improve the country’s business environment and prospects. With massive real estate stock available at high rental yields, India’s excellent investment opportunity will multiply exponentially. If FDI regulations are relaxed going forward, investment sales as a market vertical will grow substantially in years to come. Shobhit Agarwal, Managing Director – Capital Markets, JLL India PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 29

property wise

How To Choose The Best Integrated Township There is no doubt that integrated townships are fast becoming the only viable long-term residential choice for metropolitan living. With this emerging as a clear fact, city dwellers that are looking to upgrade to the township life are on the rapid increase.

ndian real estate is now at a stage of evolution wherein integrated townships are no longer just an option - they are a dire necessity. With a number of India's large developers now developing these futuristic mini-cities, townships are rapidly becoming the most significant model of property development in the foreseeable future. With urban living rapidly giving way to extreme turmoil and lack of civic amenities, it is definitely high time for the proliferation stage of townships in India. Indian metros invariably 'explode' from the centre outwards, with the inner locations becoming the focal points of heat and pressure. Therefore, urbanization also happens with the city centre consistently receiving - and maintaining - the highest saturation of population. Developable land in these places becomes increasingly expensive and soon unavailable. This leads to developers active in these areas to build up every square inch of their plots and selling their units there at exorbitant prices. In this kind of environment, opens spaces, infrastructure and overall accessibility are rapidly eroded by buildings. Also, these areas are increasingly plagued by extreme traffic congestion, shortage of parking and very high pollution. Conversely, integrated townships offer their residents complete supporting infrastructure. They are no developed with the objective of maximum development potential but maximum liveability potential, and this means that they also provide green and open spaces. In fact, the difference between the liveability quotients of integrated townships versus traditionally developed residential areas in a city are considerable - while the former enjoy clean air, green open spaces, regulated traffic, constant water and

30 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

power supply and quick access to shopping, healthcare and entertainment, the latter tend to be defined by high pollution levels, a 'concrete jungle' ethos, bumper-to-bumper traffic, crippling commuting times and frequent power and water cuts. There is no doubt that integrated townships are fast becoming the only viable long-term residential choice for metropolitan living. With this emerging as a clear fact, city dwellers that are looking to upgrade to the township life are on the rapid increase. The following are some basic tips for choosing the right kind of township: • Check whether the developer has obtained all the requisite municipal and environmental clearances. There are a number of approvals and clearances that the developer must obtain before his township project is legally sacrosanct and futureviable. Ensuring that all of these are indeed in place is very important to safeguard your investment as well as the future comfort of your family. • Check the developer's track record for completing his larger projects on time. Most developers of townships also have smaller projects to their credit, but smaller residential projects also take less time and capitalization to develop. Large integrated townships are developed in phases and take much longer to reach final completion, so the developer should show sufficient evidence of healthy capitalization and a flawless record for handing over possession to customers. • Check whether the developer has included a sufficient saturation of commercial buildings in the plan. The generous

availability of office spaces within the township has a two-fold benefit - firstly, it will mean a potential walk-to-work option in the future. Secondly, the investment value of residential properties increases with proximity to job-generating commercial establishments.

â&#x20AC;˘ Check on what kind of developments will come in to take care of your shopping, entertainment and healthcare needs. Likewise, there should be good schools planned within the township. Do not be satisfied with the mere proximity of such establishments outside the township - they should be included within the township itself.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 31

DOCUMENTS CHECK LIST FOR HOME LOANS DOCUMENTS CHECK LIST FOR HOME LOANS Salaried Customers

Self-employed Professionals

Self-employed Non-professionals

Salaried NRIs

Self-employed NRIs

Application form with Photograph duly signed by all applicants

Application form with Application form with Photograph duly signed by Photograph duly signed by all applicants all applicants

Application form with Photograph duly signed by all applicants

Identity, Residence and age proof

Copy of valid passport showing visa stamps

Copy of Passport along with valid visa stamp

PAN Card copy of the main applicant

Copy of valid visa / work/ permit/equivalent document Supporting NRI Status of the Proposed account holder

Trade license or equivalent document

Last three Months Salary Slip

Education qualification certificate and proof of business existence

Proof of business existence

Latest contract copy evidencing salary/salary certificate / wage slips

Computation of income, P & L account and Balance Sheet for last three years Certified by the CA/CPA, or Any other relevant authority (or equivalent company accounts)

Form 16/ Income Tax Returns

Last three year’s income tax Returns with income computation

Business Profile

Overseas bank account Statement

Six months overseas bank account statements and Nre/Nro account

Last Six month’s bank statements

Last three year’s CA-certified / audited balance sheet and profit & loss account

Last three years’ income tax returns with income computation Last three years’ CA-certified / audited balance sheet and profit & loss account Processing fee Cheque

Last Six month’s bank statements

Last Six month’s bank statements (Self and business)

Processing fee Cheque

Note :- The above mentioned list of documents are inclusive and not exhaustive. The Bank / Financial Institutions may ask for any additional documents / information on case to case basis at their discretion.

property wise

The Detriments of High-Rise Buildings All in all, this amounts to around 60 skyscrapers. Developers see such edifices as a good way to attract potential buyers - high-rise buildings are a good gambit to differentiate their offerings from the rest of the pack. However, this coin has two sides â&#x20AC;&#x201C; high-rise development has its own share of demerits, too:

nternationally, a building that reaches or exceeds the height of 150 metres is considered a skyscraper. Until recently, Mumbai was the only Indian city with highrise buildings. The financial capital continues to see the highest demand for skyscrapers, as the only option to grow there is vertically. It now seems that in the coming decade, Maximum City will receive an even more cohesive skyline, with a host of projects in the race to touch the sky being constructed. The demand for high-rise buildings is certainly growing, and other cities are catching up.

34 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

Mumbai continues to have the maximum number of tall buildings approved or under construction. Development of India One - the tallest in the country - has already begun in Maximum City. It spans 126 floors and stretches up to a height of 720 metres. Apart from this, Mumbai has more than 30 such super-tall buildings ranging between the heights of 150 metres to 450 metres either at the approval stage or already under construction. Â New Delhi, the capital of India, has around a dozen of such

buildings coming up. They range between heights of 150300 metres. Kolkata too is catching up with 9 such residential buildings extending to the height of 245 metres either approved or under construction. Ahmedabad too has about 13 tall buildings which are under construction and are ranging between 200 metres to 410 metres. Hyderabad and Bangalore too are witnessing some development in construction of tall buildings for residentialcommercial purpose with 2 or 3 approved projects. All in all, this amounts to around 60 skyscrapers. Developers see such edifices as a good way to attract potential buyers - high-rise buildings are a good gambit to differentiate their offerings from the rest of the pack. However, this coin has two sides – high-rise development has its own share of demerits, too: Effect On Urban Wind Rise in the elevation of a building increases the distance of the wind shadow and minimizes the air flow at the street level behind the building. Near high-rise buildings, the local wind speed is high even in summer. In addition, high-rise buildings tend to create a turbulent flow of the gradient wind as a result of increasing the roughness of the boundary layer surface. Increased Air Pollution In summers, local wind speeds near skyscrapers are very high and troublesome. The ventilation conditions in the urban spaces and major streets with high vehicular traffic have significant impact on the concentration of air pollutants at the street level. The high velocity and turbulent wind at the street level results in the mixing of the highly polluted low-level air with cleaner air flowing above the urban canopy. Effect On Urban Radiation High-rise buildings absorb direct and reflected solar radiation of surrounding low-rise buildings and convert it into heat via convection of long wave radiation. However, when buildings are of different heights, the walls of the higher buildings absorb part of the reflected and emitted radiation and block a portion of the sky, resulting in reduced solar exposure and long-wave emission from the roofs of the lower buildings. Increased Urban Temperature Size and density of the built-up areas affect urban areas temperatures. In the congested centres of large cities, temperature levels are generally higher than in the suburbs. The largest elevations of urban temperature occur during clear and still-air nights, also called ‘Urban Heat Island'. Excessive opacity of high-rise buildings in city centres results in concentrated heat generation by high-density land use

(traffic, lighting, heat exhaust) and contributes to the creation of urban heat islands. Effect On Night-Time Cooling Nocturnal radiation is a major climatic factor that reduces atmospheric heat in urban areas located in hot, dry regions. Nocturnal radiation decreases when the density and the height of built-up urban masses increase. High-rise buildings store solar energy during the day time and release it slowly into low-speed local wind, especially at night. The vertical distance between cool winds above buildings roofs and the ground surface is long, and this results in decreased radiant cooling during the nights. Low-rise buildings that match trees heights of 12-15 meters, on the other hand, penetrate nighttime ventilated cooling at the ground level and also store cool radiation through built-up urban areas. Other Factors • Tall buildings are colder in winter and hotter in summer than regular buildings, and therefore require more heating and more cooling. This is particularly true of modern glass towers. Thus, a lot of energy is required to keep these high rises functioning. • Exterior cleaning and maintenance of a high-rise building can be very costly and dangerous. With global warming (which causes higher wind speeds) on the rise, insurance companies often refuse coverage to maintenance companies in charge of high-rise buildings at certain times of the year. • High-rise buildings take longer to build, and due to rapid and heavy construction activity within the city, there is a heavy load on civic infrastructure. • In-high rise buildings, the average construction cost per square foot is 20-25% higher if the building has more than 12 floors. • Major modifications and/or renovations in a skyscraper are significantly more cost-intensive. • If a new building has to be built on the same piece of land, the number of claimants is vastly higher. When it comes to our largest cities, there is not much one can do about these factors – and indeed, they are accepted as a fact of life in a city like Mumbai, which must grow vertically if it is to grow at all. Unfortunately, the areas of our cities which are in the biggest need of high rise buildings are also the ones which offer the lowest scope for remedial infrastructure measures that could reduce the impact of skyscraper development. Subhankar Mitra, Head – Strategic Consulting (West) JLL India

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 35

property wise

Affordable Homes - What They Are And What They're Not Developers of such projects cut their costs in every possible manner and in turn over-price the flats within them, secure in the knowledge that they will still sell because of the severe dearth of affordable housing.

hen we talk of affordable housing in India, we are not talking merely about cheap homes. If that were the only parameter to define, affordable housing, then houses in villages or in utterly remote outskirts with no back links to the main cities would qualify as 'affordable'. Needless to say, homes in such locations tend to be affordable more or less by default, because of the low land prices and the leisurely nature of demand there. Â In the Indian context, affordable housing as a market concept must refer to homes for people working in urbanized areas.

36 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

Thanks to our cities' economic activity spreading steadily outward, this does not necessarily mean that projects offering such homes must coexist with pricey developments in the central areas. To put a finer point to it - affordable homes are needed wherever people find jobs that pay well enough for them to run their families, but not well enough to pay for the financial indulgences that the middle and upper-middle class can afford. Â In what price bracket should such homes fall? The rates for genuinely affordable homes in India should range between Rs. 10 lakh and Rs. 20 lakh. It is true that every city has its own

benchmarks of affordability, but it is also true that there are fairly large families in every city whose combined income does not exceed Rs. 15,000-20,000 per month. Regardless of how well the Indian economy performs or how well the job market does, there will always be such families in the country. Who are these people? They are the ones no city can do without - they are the factory fitters and turners, the construction workers, the hypermarket assistants who bag groceries, household maids and drivers, roadside vegetable and newspaper vendors, 'alteration' tailors and rickshaw drivers, to name just a few. Their skills and services are very important to the city, but their scope for income growth is inherently limited. They work hard for a livelihood and to educate their children so that they have the possibility of a better life, but they themselves rarely - if ever - manage to improve their own financial status quo. The majority of these people, collectively known as the LIG (lower income group) segment, live on rent in ramshackle chawls and slums. They are the mercy of ruthless landlords, highly erratic water and electricity supply, public sanitary facilities and a very high risk of disease. For them, owning a secure home with decent facilities in a modern project is more than just a dream - it is a necessity. Such a home is also usually their sole source of financial security, and the only tangible asset that they will be able to pass on to their children. As a rule, what the Indian property market has to offer to this segment of people in most of our cities falls in the category of

concrete 'pigeon coops' with thin walls built from substandard materials, no balconies, no common facilities or amenities, almost no security, and no play areas for children or open spaces of any kind. Developers of such projects cut their costs in every possible manner and in turn over-price the flats within them, secure in the knowledge that they will still sell because of the severe dearth of affordable housing. Maple Shelters' Aapla Ghar model was specifically formulated to put an end to this approach. By means of innovative sourcing of well-located plots and quality construction materials, maximum leverage of available government incentives and subsidies for affordable housing and unique project designs, it is absolutely possible to deliver high-grade housing projects for the LIG segment. These projects have everything that is needed to give their inhabitants a safe, wholesome, comfortable life generous flat sizes, open spaces, security, connectivity to their places of work, healthcare, means of entertainment and scope social interaction. With a significant number of such projects already delivered on the ground, it has been indisputably proven that genuinely affordable quality housing is very much possible. The only question that remains is whether enough developers will now take up the clarion call so that the supply increases sufficiently. The scale that is required is massive if we are to even come close to meeting every Indian's housing needs by 2022. Sachin Agarwal CMD - Maple Shelters PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 37

property wise

CARE Assigns “NCR 6-Star” Rating to Magahun Mezzaria by Nexgen Infracon Limited Project Star Rating Rationale • Project developer quality Mahagun group is promoted by Mr PK Jain, chairman, who has an experience of more than 40 years in the infrastructure industry. Development of residential real estate constitutes the core focus area of business activities of Mahagun. The group has already completed construction of about 67 lakh sq ft of residential and commercial real estate in Delhi-NCR and currently has projects involving development of approximately 114.5 lakh sq ft in hand. In addition, the group had delivered the possession of about 3,000 residential dwelling units to its customers, whereas more than 10,000 units are currently under delivery/execution. The group has also constructed a shopping mall and has already completed the construction of a five-star hotel in Delhi, which is running under the name of ‘Park Plaza’. As such, the group has adequate experience in this line of business.

• Project construction quality and amenities This residential project is located at Sector 78, Noida. The company has tied up with experienced consultantslike JMC Projects Pvt Limited (civil construction) which has an experience of 32 years in this line of activity, M/s Optimmum Design Consulting Engineers for managing the operations at the site, Hafeez Contractor (architect) and Mahimtura Consultants Pvt Ltd (structural consultants) for the project. Apart from the basic necessities like water provision, power backup, car parking, the project has various amenities suited for premium living including a club house with facilities like gymnasium, swimming pool, tennis and badminton courts, billiards room, 24/7 security guard service, advanced fire fighting systems. Furthermore, there is a provision for rain water harvesting, sewage treatment plant and about 60% of the total area has been reserved for lawns, parks, open and landscaped greens. • Project legal quality The land measuring 40,468 sq metres had been allotted 38 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

to Nexgen Infracon Private Limited (NIPL) from New Okhla Industrial Development Authority (NOIDA) on leasehold basis for 90 years through a lease deed dated May 31, 2010. The company has its building plan and map approved for FAR of 2.88x from NOIDA (2.75x + additional 5% of green building), for the project “Mahagun Mezzaria” and comprises of seven towers with 700 flats. • Project financial quality The total project cost of Rs.614.25 crore is likely to be funded through Rs.5 crore of equity, Rs.115 crore of debt and the rest through customer advances. The funding risk of the project is medium as the company has already achieved comfortable sales booking of 308 units being 8.24 lsf (40%) as on January 25, 2014 with sale value of Rs.396.45 crore, of which Rs.198.01 crore (50% of the sales) has already been received. Nevertheless, the high dependence on customer advances makes it imperative for the company to achieve sales progress as envisaged.

Project Profile Project Name

Mahagun Mezzaria

Project Type Residential Project Location

Sector 78, Noida (UP)

Development Type

Leasehold land from NOIDA for 90 years

Project Start Date

September 2012

Physical Construction Completion Date

March 2016

Agreed upon Possession to the customer The developer proposes to deliver the residential unit within 48 months from

the date of completion of raft.

Total Saleable Area

20.76 lsf

Construction Status

The development of project is at initial stage. As on January 25, 2014, the company has incurred 38% of its total construction cost. The construction for six towers is under process. As on January 25, 2014, while the construction has reached 4th floor for tower 4, 1st floor for tower 3 and ground floor casting work is in progress for other towers.

Project Developer Profile Name of the company developing the project

Nexgen Infracon Private Limited

Project developer group

Mahagun Group

Development Experience of the developer group 30 No. of years in the industry

>40

No. of projects developed till date

Total Area developed till date

No. of projects ongoing

Project Developer The Mahagun group is promoted by Mr PK Jain, chairman, who has an experience of more than 40 years in the infrastructure industry. The development of residential real estate constitutes core focus area of business activities of Mahagun. The group primarily operating in the Delhi-NCR region has already delivered the possession of about 3,000 residential dwelling units to its customers, whereas more than 10,000 units are currently under delivery/ execution. The group has also constructed a shopping mall, comprising of shopping areas, food court, a 4-screen cineplex-running under the brand of ‘PVR’ Cinemas - and a service apartment hotel of 127 rooms

being operated under the brand name of ‘Mahagun Sarovar Portico’. Furthermore, the developer has already completed the construction of a five-star hotel in Delhi, which is running under the name of ‘Park Plaza’. The group is managed by experienced professionals from diverse backgrounds. Mr PK Jain, chairman (Emeritus) has an experience of more than 40 years in the infrastructure industry. He looks after the day to day operations of the group and is supported by an experienced management team compromising of Mr Dhiraj Jain (director, with 16 years of experience), Mr Amit Jain (director, with 16 years of experience), Mr TK Peer PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 39

(group CFO, with 30 years of experience), Mr Sanjay Varshney (senior VP - construction, with 23 years of experience), Mr SC Sharma (VP - commercial, with 30 years of experience), Mr SK Gupta (VP - construction, with 28 years of experience) amongst many others.

The project has been designed in conformance with seismic zone IV requirements, as required in the area. Highlights of the Project • Designed by internationally renowned architect Hafeez Contractor

Project Details The project Mahagun Mezzaria is a premium group housing project located at Sector 78-Noida, spread over a land admeasuring 10 acres. The company has plans to develop the entire project in a single phase comprising of 7 towers with 700 flats having a saleable area of 20.76 lsf. The project is scheduled to be completed by March 2016.

• Double height living rooms in each apartment with attached double height balcony

The project is located in the city of Noida which falls within the National Capital Region of India’s capital New Delhi. The project is in close proximity of the already developed townships/ projects like Gaur Grandeur, Amrapali Platinum, Amrapali Zodiac, Eldeco Amantrum, etc. The land is a 4-side open plot with a green belt area of 45 metres all around. The project is located at a distance of approximately 4 km from nearest metro station (Noida City Centre metro station), 4-5 km from Fortis Hospital, 3-4 km from Dadri Road and around 7-8 km from Noida Expressway. Also, the project neighbourhood area provides decent connectivity to adjoining schools, hospitals and commercial areas.

• Solar power lightening in landscaped and open areas • 3-4 passenger lifts and one service lift for each block • Air conditioned apartments, with energy efficient VRV/ VRF system, excluding kitchen, toilet • Rain Water harvesting system to recharge aquifer, and use of treated water from STP for flushing and horticulture. • Requisite power back up of 250 KVA for running lifts, tube well, water pump and common areas. The power backup is also provided for each flat (on payment basis) • 60% of the total land area as green area. • Advanced fire fighting systems with water sprinklers, smoke detectors, fire doors, staircase, etc.

Current status of the project Particulars

Remarks

Tower 1

Raft, 2 Basements completed, Ground floor slabs about to be completed

Tower 2

Raft, 2 Basements completed, Ground floor slabs completed

Tower 3

Raft, 2 Basements completed, First floor slabs completed

Tower 4

Raft, 2 Basements completed, Fourth floor slabs completed

Tower 5

Raft, 2 Basements completed, Ground floor slabs completed

Tower 6

Raft, 2 Basements completed, Ground floor work started

The development of the project is at an initial stage. As on January 25, 2014, the company has incurred 38% of its total construction cost.

complexes, hospitals, airports, railway stations, etc. The same are also associated with the Mahagun Group for the last two years.

Brief particulars about various contractors is as follows –

2. Structural consultants and civil engineers The structural consultants of the project are M/s Mahimtura Consultants Pvt Ltd (MCPL). MCPL has an experience of 57 years and the same are associated with the Mahagun group for the last 10 years.

1. Architects The company has hired are Hafeez Contractor (HC) for providing consultancy for the overall layout and design of the project. HC has an experience of over 35 years and has been successfully providing consultancy in the field of architecture and has successfully executed projects of various nature like group housing schemes, apartments, residences, commercial

40 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

3. Civil engineers The civil work is being handled by JMC Projects Pvt Ltd (JMCP). JMCP has an experience of 32 years and has successfully

executed projects of DMRC, CPWD Commonwealth games division, Software complex of Infosys, Bangalore etc. However, this is the first project with the Mahagun group. Project management The company has hired M/s Optimmum Design Consulting Engineers (ODCE) to manage the entire project at the site. Having an experience of 21 years, ODCE had been associated with various reputed projects in and around Delhi NCR, primarily of groups like Gaur, Prateek, Supertech, Ajnara, etc. Apart from managing the entire operations, the company also regularly provides details regarding the raw material procurement, usage, requirement, etc on a regular basis to the management. Also, the raw material procurement (cement and steel) and labour contracts are managed by the promoters themselves and are done through local labour contractors. The project uses a combination of column along with Raft foundation technique. Moreover, the MIS is prepared by each department every month. The key reports are reviewed by the head of departments.Further, these reports are shared with the top management on monthly basis. Project legal status The land measuring 40,468 sq metres had been allotted to Nexgen Infracon Private Limited (NIPL) from NOIDA on leasehold basis for 90 years through a lease deed dated May 31, 2010. The company has its building plan and map approved for FAR of 2.88x from NOIDA, which corresponds to “Mahagun Mezzaria” and comprises of seven towers with 700 Flats. Key features of sale agreement The buyer agreement has been drafted and executed between developer and buyer. The buyer agreement provides details of possession timeline, key deliverables, payment schedule, penalty on buyer and seller, cancellation terms and maintenance terms among other details. Project financial status The total project cost of Rs.614.25 crore is likely to be funded through Rs.5.00 crore of equity, Rs.115.00 crore of debt and the rest through customer advances. The company has achieved comfortable sales booking of 308 units and 8.24 lsf (40%) as on January 25, 2014 with a sale value of Rs.396.45 crore. Also, the company has already received Rs.198.01 crore (50% of the sales) as on January 25, 2014, thereby indicating reasonable collection progress. Nevertheless, with high dependence on customer advances, the sale of the remaining inventory as envisaged and the timely collection of customer advances would be important for completing the project in a timely manner.

About CARE Credit Analysis & Research Ltd. (CARE) was promoted in 1993 by some of the leading Indian banks and financial institutions. Major shareholders of CARE include IDBI Bank, Canara Bank and State Bank of India. CARE is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types of debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE’s rating methodologies are in line with the best international practices.

Disclaimer CARE’s star rating of real estate projects is an opinion on the developer’s ability to execute the real estate project in timely manner and with the agreed upon quality standards. Besides, it is an opinion of the legal quality of the project. The analysis draws heavily from the information provided by the developer and information obtained from sources believed by CARE to be accurate. However, CARE does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Also, CARE does not guarantee the adequacy of title search done to arrive at the legal quality of the project. CARE’s Real Estate Star rating is also not a recommendation to buy, sell or hold the rated real estate property. CARE shall also not be liable for any losses incurred by users from any use of such rating. Most of the developers whose real estate projects are star rated by CARE have paid a rating fee.

Also, the execution of the project is still in the initial stages with Rs.224.24 crore of cost incurred (36.5%), funded through Rs.5.00 crore of the promoters’ funds, Rs.75 crore of debt and the rest through customer advances.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 41

be a prosperity seeker

Worldâ&#x20AC;&#x2122;s largest dome Structure

Driver Easy speak

The Singapore Sports Hub is a mammoth new sports complex containing the East Asian city state's new National Stadium: a 55,000 capacity venue that boasts the notable achievement of being the world's largest dome structure. Situated on 86.4 acre site, the Singapore Sports Hub was designed by local firm DP Architects, and its centerpiece is the National Stadium. The National Stadium's dome shaped-structure measures a total of 312 m (1,023 ft) in diameter, besting its nearest rival in the dome structure size stakes, the Texas Cowboys Stadium, by 37 m (121 ft). The stadium also sports a huge retractable roof and a flexible interior layout that can host athletics, soccer, rugby, or cricket as required, taking around 48 hours to convert.

The 2015 Toyota Sienna minivan has an optional microphone system that lets the driver relay announcements via speakers in the back. Known as Driver Easy Speak, the feature is one of several accessed via an optional 7-inch touchscreen in the console. The idea is that drivers won't have to raise their voices to be heard by passengers in the back, nor will they have to turn around to face them. To that end, buyers can also opt for a pull-down conversation mirror, which allows drivers to glance at their rear-seat passengers without turning around or readjusting the main rearview mirror. There's currently no word on pricing or availability of the 2015 Sienna.

42 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

name, fame, money, social work… know what gives you a kick!

Bedside views of the Northern Lights

Charity Water by Scott Harrison

Architecture firm Waterstudio and developers Dutch Docklands have been given the go-ahead to construct a floating luxury hotel near Tromsø, Norway. Situated within the optimal Aurora Borealis (or Northern Lights) viewing zone, the Krystall hotel will feature a glass roof so guests can enjoy one of nature's finest spectacles from their beds. Finer details on the five-star hotel's structure are yet to be revealed (as is the budget), but early renders depict a snowflake-like structure that floats but remains in a stationary position. It will include 86 guest rooms, conference rooms, a spa and wellness facilities, and will be accessible only by boat. Its shape and size will offer some degree of stability on the water, but a stabilizing system of dampers, springs, and cables will also be used to offer guests the feeling of standing on dry land.

Scott Harrison is the Founder and CEO of Charity Water which has completed 11,900 water projects in 22 countries providing clean water to over 2,700 people per day. Scott also leads over 100 employees/volunteers in New York City and hopes to raise over $50 million in donations in 2014. Scott was recently recognized in Fortune Magazine’s 40 under 40 list, the Forbes Magazine Impact 30 list and was recently #10 in Fast Company’s 100 Most Creative People in Business Issue. He is currently a World Economic Forum Young Global Leader.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 43

amazing buildings

The Piano House Huainan City in China hosts one of the most unusual and beautiful buildings in China, the Piano House. This incredible structure was designed by Hefei University of Technology to commemorate advancements in Huainan City. The Piano and accompanying violin entrance are built on a true 50:1 scale, perhaps making them the largest to scale instruments in the world. The building has escalators, meeting rooms, and space to host weddings and other events. You will find tourists and locals lounging underneath the Piano on warm days taking advantage of the massive structures shadow. At night the piano and violin light up with fluorescent lighting outlining the structures.

quotemagic

If you think it's expensive, to hire a professional, wait until you hire

an amateur.

amazing gadgets

Tracking on-field staff made easier with TeamBerry

ld-school, monotonous lead management software nowadays fail to provide adequate results in real time, and therefore feel like a baggage to both employees as well as the administration. So, no matter if you are a small real estate builder / broker only starting to make a place for yourself in this highly competitive sector, you can benefit immensely by employing an efficient sales tracking application like TeamBerry to help you attain a better insight of your business and capturing its growth nodes. With its latest additions that let you track your team in the field, your leads and analyse your sales funnel graph in just a glance, TeamBerry is a very user-friendly software. It helps you keep a tab of all expenses incurred by each of your on-field sales

46 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

execs and the tours they have gone on/ are on/ would be going on. The daily task list of your team members can be accessible to you anytime, and client information can be stored safely on the cloud, along with an online record of all types of orders and spreadsheet reports of any of the aforementioned parameters. Thus, TeamBerry has become the ultimate Ninja in the world of Pre- and Post-sales management activites. In a nutshell, if you aim at being the business leader in your area of operations, you must switch to a management system that not only enhances your productivity, but also offers features that help you stay ahead of your competitors. Get in touch with us, for a free demo and limited period trial offer today! visit: www.teamberry.biz

quotemagic

"It's

tangi ble, i t's so beau lid, it tiful. 's it's a from rtisti m c, y sta and I ndpo just l int, ove r eal e state -Don ald T ." rump -

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 47

world heritage sites Hiroshima Peace Memorial Hiroshima Peace Memorial, commonly called the Atomic Bomb Dome or Genbaku Domu, in Hiroshima, Japan, is the only structure that survised the atom bomb. It is part of the Hiroshima Peace Memorial Park and was designated a UNESCO World Heritage Site in 1996.

48 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

eyecatchers

Neha P. Naik, 23, who is a Special Olympics International Global Messenger met US President Barack Obama and his wife for an exclusive dinner at the White House on July 26, 2014.

S President Barack Obama and his wife hosted 12 differently-abled people from all over the world, including one from Mumbai, for an exclusive dinner at the White House. The lucky Mumbaikar from suburban Goregaon is athlete Neha P. Naik, 23, who is a Special Olympics International Global Messenger, besides taking part in the 100 metres and shot-put events. For the event, Neha was accompanied by her mentor and teacher Jonita Rodrigues of the 33-year-old Punarvas Education Societyís Shri Devrajji Gundecha Punarvas Special School & Vocational Training Centre for Mentally Handicapped. Asha said that Neha was born a normal child, but suffered high fever at the age of five, which affected her natural mental growth. We admitted her to a regular school, but she just couldnít cope up with her studies. Later, as we realised that she was a different child, we admitted her to Punarvas school,î she said. Since then, Prakash and Asha dedicated their entire life for Neha ñ their only child ñ looking after her special requirements, needs and extra-curricular activities.

addressing audiences, leaving a permanent impression on the listener, said Asha. This talent is what got her an opportunity to represent India as a SOIGM since the past five years around the world. Something that she plans to display before President Obama, if granted an opportunity. ìI plan to inform him about the special needs of special children all over the world. How they need more educational institutions, hostels and then suitable jobs to make them truly independent in society,î Neha said earnestly. She explained that there are many special children in farflung areas in India who cannot come up in or cope with life as they donít have proper educational facilities within reach. The White House dinner organised by the Special Olympics. In fact, her family credits Special Olympics for giving independence and confidence to Neha to address large audiences and share her experiences and excitement with the world, including at the 2013 Special Olympics in Korea. Besides, she also participates in Special Olympics athletic events and trains young athletes in India, teaches reading and writing skills to others youngsters requiring special attention.

At Punarvas, though she lagged behind in studies, Neha more than made up in her speaking abilities and athletics. She is gifted with a unique, convincing manner of speaking and

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 49

amazing getaways

Experience Colorado At Seven Falls Step Into A Natural Wonder Called “The Grandest Mile of Scenery” in Colorado, the approach to Seven Falls excites the senses and for shadows the dramatic landscape ahead. Crystal clear water from the Pikes Peak watershed has shaped a spectacular natural box canyon: the steepwalled, enclosed canyon that’s become symbolic of the American West. Those who want to dive into nature, 224 steps by the side of the falls lead to two hiking trails and the banks of the glistening stream that feeds the falls. Others might prefer a more leisurely experience. For them, browsing our shops, dining at the cafe and learning from our exhibits is sure to delight. Of course, the children can’t miss our traditional native American Indian dance performances (summer only).

50 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

quotemagic

"Prosperity begins with a state of Mind."

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 51

quotemagic

Vision without action is a

daydream.

Action without vision is a nightmare. Japanese Proverb

planetsavers

Earth Day 2014

April 22 2014

prosperity seeker

8 super rich people who are really frugal Just because you have plenty of money doesn't mean you should spend it. Check out these 8 frugal rich people.

ou might be dreaming of one day owning a private jet or luxury yacht, but it’s refreshing to see some of the world’s richest people living below their means, choosing instead to lead simple, modest lives. Proving it’s not all about the high life, here are 8 super wealthy people who are also very thrifty. Facebook founder and chief executive Mark Zuckerberg might have a net worth of $33 billion, but he leads a notoriously lowkey lifestyle. Zuckerberg recently turned 30 and still wears the same grey t-shirt and hoodie every day. He also opted for a modest wedding to girlfriend Priscilla Chan, which took place in his backyard, and the newlyweds were reportedly spotted dining at McDonald’s on their Italian honeymoon. Keira Knightley Despite earning millions from movies, modelling and TV appearances, Keira Knightley, the English actor turned heads when it was revealed she paid herself a salary of just $50,000 in 2012. She also had a low-key wedding last year in France, with just 11 guests at the wedding and 50 at the reception. The founder of Swedish furniture giant IKEA is worth billions, but still chooses to live frugally. Ingvar Kamprad drives the same Volvo he’s had for 15 years, flies economy class and has reportedly furnished his entire home with furniture and decorations from IKEA.

54 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

With a net wealth of $44 billion, Warren Buffett, the founder of investment company Berkshire Hathaway is one of the richest people in the world. But you’d never know. He’s lived in the same home for 54 years which he purchased for $31,000 in 1958. This might be an unfamiliar name, but chances are you’ve heard of the giant retail chain he founded, Zara. With a net worth of $57.5 billion, Amancio Ortega goes to the same coffee shop, wears the same thing and eats lunch with his staff in the cafeteria every day. Fittingly, he also lives in a simple apartment building in Spain. The second woman on our list, Christy Walton was named by Forbes as the richest woman in the world, with a net worth of $36.7 billion. She’s the widow of John T. Walton, a son of Walmart founder Sam Walton. Despite her wealth, she wanted to raise her son in a normal and un-extravagant environment, so after her husband died Walton donated her home to the International Community Foundation centre for Cross Border Philanthropy. Following on from in-law Christy Walton is Jim Walton. While the Walton Family Foundation is considered a not-for-profit heavyweight, with just under $2 billion in assets, it recently came to light that the Waltons give almost none of their own riches to the family foundation. Turns out that besides Christy, second generation Walton heirs, Rob, Jim, Alice

Carlos Slim Warren Buffett

Mark Zuckerberg

Ingvar Kamprad Keira Knightley

Christy Walton

havenâ&#x20AC;&#x2122;t contributed much. Jim Walton gave a single personal contribution of $3 million to the foundation more than 15 years ago. He may not be as well-known as others on this list, but the chairman and CEO of Telmex, Carlos Slim Helu has a net worth of about $69 billion, putting him just behind Bill Gates

Amancio Ortega

Jim Walton as the second richest person in the world. But rather than splurging on lavish luxuries, apparently he doesnâ&#x20AC;&#x2122;t own a yacht or a plane, drives himself to work every day, and has lived in the same house for over 40 years. By Monica Tandon

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 55

bookshelf

Building Wealth:

From Rags to Riches Through Real Estate By Russ Whitney

Whitney was a twenty-year-old high school dropout working in a slaughterhouse for five dollars an hour when he set out to become a millionaire. Armed primarily with guts and determination, he became one of America's youngest self-made millionaires by the age of twenty-seven. Russ Whitney is living proof that you don't need formal education, capital, or even credit to get rich. But what you do need is a plan: a practical program of tried-and-true moneymaking techniques to help make your own financial dreams come true. In Building Wealth, Whitney shares the very strategies that have helped.

Excerpts from the book

expenses, when your mortgage is paid off you will have an

A Million in Debt is a Million in Net

asset worth $ 100,000 plus whatever appreciation in value it’s

There are only two times a banker will call you sir or mam, and

gained over the life of the loan. If the house’s value rose by 2.5

that’s when you have $ 1 million on deposit, or when you owe

percent a year over a period of a 20 year loan (which is a very

the bank $ 1 million.

conservative figure), you’d have an asset worth $ 150,000 and your tenants would have paid it for you.

As long as you make the payments, banks are happy to have you indebted to them. And you must understand that the only

The same thing applied to larger, multi-unit properties. It also

way to get wealthy is with debt – but it has be good debt. If you

works on businesses other than real estate. When you buy

owe $ 1 million or more on appreciating income-producing

an appreciating asset, you start out with a big debt, bu you

assets, your wealth will be increase in direction promotion of

use the income from the asset to pay the debt and ultimately

your debt. Ideally the income should cover the debt service,

turn it into a sizeable net worth. If you purchase an income

and the assets will gain in value as the amount you owe

producing appreciating asset for $ 100,000 and it increases

decreases. When the loan is paid off, you will have an asset

in value just 10 percent, you’ve made $ 10,000 over and

that has paid for itself; it can continue to generate revenue for

above whatever profits the asset produces. If you purchase

you, or you can sell it.

an appreciating asset for $ 1 million and it appreciates at that same 10 percent, you’ve made $ 100,000.

The principle works on any scale, from a small house to a multi million-dollar development. If you buy a house for $ 100,

When you purchase a business, always try to buy the real

000 and rent it for enough money to cover the loan and other

estate as well, instead of just leasing.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 57

vaastu

LOCATION ASPECTS FOR HEALTH AND BEAUTY THROUGH RIGHT VAASTU “Beauty is the thing of joy”

58 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

Vaastu Shree, Vaastu Visharad Shri Naresh Singal, Vaastu & Feng-Shui Consultant. For any further queries on the subject, readers can contact him on mail@vaastunaresh.com

ill 1960, the Indian ladies used to have a healthy, beautiful and natural life but with the change of lifestyle with the globalization, the females across India have started facing several health problems, no matter of what age group they belong to. To keep themselves fit and healthy, they are seen doing yoga, visiting gym, taking medication and balanced diet but in most of the cases, it is seen, females are not getting much help. The Perfect beauty of Women can be described through a set of social norms of what the ideal Indian beauty is, they must have the: Almond-shaped eyes, a straight- sharp nose, full lips, hairless body, thick black hair, and an hourglass figure. The beauty of woman shows the power of her looks in helping achieve her goals of being the beautiful. Women of today is open and versatile who can do anything to enhance her beauty as so many salons and parlour offer various scientific techniques to alter their body parts. Though there are many technologies and products available today which can enhance beauty still it is believed that beauty is something natural. Makeup can only hide your outer defects to aggravate your beauty; however it is inner beauty which can’t be fad away. Today persons above 50 or 60 years are also very conscious about their health. Vaastu has great relation with diseases. Studies of recently constructed houses reveal that modern houses have many Vaastu defects. Since the last many decades, architects have been emphasizing more on aesthetic value of the house, rather than making it vaastu friendly. That is the reason Vaastu principles are being ignored knowingly or unknowingly at the time of making the house. Vaastu plays on important role

in affecting one’s health whether male or female. A kind of disharmony is created between positive and negative energies if there is Vaastu defects in the house which not only has effects on the health of the residents but to their life as well. Let us find out the reasons, responsible for disharmony between these energies in the house. By following Vaastu Shastra, principles for beauty parlor or salons helps flourish the business resulting in customer’s complete satisfaction, rejuvenation and more profit. Remedies: 1. The entrance of the beauty parlor/unisex salon should be preferably in the West or South direction and spa and aroma therapy area are best to have in North, East or North-East direction. 2. Mirrors in the beauty parlor/saloon should be fixed on the northern and eastern walls and cash counter should be in the north-east side. 3. Sauna or steam is advisable to have in the south-east direction and the locations for the pantry are south-east and north-west zones. 4.

Store all your cosmetics and beauty treatment products in west direction and always play a soothing and refreshing music while air-conditioner and other electrical gadgets are good if kept in the south- east direction.

5. Never keep the head of facial bed in the north direction.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 59

prosperity seeker

Top 3 Ways to Make Your Money Work for You

60 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

ne of the biggest differences between the wealthy and the not as wealthy is that the wealthy people earn interest and everyone else pays interest. It is important to realize that money is a tool that can help you to achieve your goals. In order for you to reach true financial independence you need to have your money begin to work for you--not you for it. Here are three things you can do to start making your money work for you. 1. Budget The most important way to change the way you handle your money is to budget. When you are budgeting you are making your money do what you want it to. By assigning each rupee to a category you are controlling where your money goes and what it does. This will help you to begin to reach your financial goals. Your budget is the best tool you have next to your income to really build wealth. Your budget gives you control over your finances, and allow you to make financial decisions at the beginning of the each month. When you master budgeting, you will be able to reach your financial goals more quickly and avoid debt. 2. Get Out of Debt Do you know how much money you are paying in interest each month? How much of your monthly budget is being eaten up by home loans, car payments and credit card bills? If you could take all of that money and put it into retirement, it

is amazing at how quickly you could save for your retirement and other things that you want. Debt often becomes a burden and limits the choices that you can make. One of the best things you can do with your money is to get out of debt and stay out of debt! Your debt limits your other opportunities. Just think what you could do with the extra money you would have each month if you were completely out of debt. You may also be able to start your own business or quit a job you hate if you were debt free. Take the time today to start getting out of debt. 3. Save Your Money Once you have freed up all that extra money from paying off your debt you need to begin saving aggressively. There will be a point when the money you have will earn more than you do in a month. This takes quite a bit of money and in order for this to happen you need put a large amount away each month. Once you have a six month emergency fund saved, you will need to begin investing your money. This way you can grow your wealth the most effectively. Additionally saving money can help you be prepared to handle the ups and downs that will happen throughout your life. Saving for an emergency fund may be the first step, but you will begin to really build wealth when you invest. Think beyond savings for retirement and find a good financial planner to help you save and invest your money. By Monica Tandon PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 61

healthy living

Best ways to drive out Headaches

Endorphins: bodies own pain killers

ELAXATION exercises can help to relieve headaches, backaches and insomnia.

One of the simplest relaxation exercises is deep breathing, which will release endorphins (the body's very own painkillers) into our body. Begin by breathing through your nostrils; inhale for five counts, silently saying the word "in" (concentrate on breathing deeply); fill your lower abdomen with air; count to five, and then exhale slowly, silently saying the word "out" as you let the air escape through your mouth; repeat this exercise for about two minutes; gradually you will be able to build up to ten counts or higher; increase your relaxation by imagining a peaaceful scene or by breathing in fresh air or pleasant smells. Best ways to drive out Headaches Headaches can be caused by a number of different reasons, and diet is only one area that could contribute. The most common causes of headaches are stress with associated muscle tension, or hormones or medication or medical conditions like high blood pressure or water retention. Ensure that you drink 6 to 8 glasses of water daily, and limit alcohol consumption to a maximum or abstain completely. Increase water intake if you are having alcohol. Keep your blood sugars constant by eating regular meals, preferably with snacks in between, and limit intake of very sugary foods (e.g. sugar, jam, cool drinks, sweets, etc.) as

62 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

these cause a rapid rise and resultant fall in sugar levels. Eat high fibre foods to help keep blood sugar levels constant. Certain foods can trigger headaches. Dietary triggers are foods which are commonly found to trigger headaches or migraines in certain individuals. However certain foods will affect different people differently, and you will need to identify which particular foods trigger your headaches. The most common trigger foods are: • Red wine, champagne and beer • Caffeinated beverages especially coffee, smart drinks, tea and carbonated beverges like • Coke • Cheese • chocolate and chocolate drinks • Peanuts and peanut butter • Foods containing Monosodium Glutamate (MSG) like packet or canned soups, sauces, instant pastas and Chinese foods. Foods high in other additives can also trigger headaches. avoid processed foods and learn to read labels on foods. • Salted and cured meats, dried meats, pickled herring and chicken livers may also be a problem. • Certain beans (broad lima, soya, lentils) and citrus fruits; avocados, raspberries and bananas. In order to identify trigger foods, start doing exclusion tests, eliminating a food item each day. When you get a headache, rewind and learn what probably did not suit you.

prosperity seeker

Discovering You Life is all about manifestation of perfection already in you.

Can a fish be judged on its ability to climb a tree? It may rather sound stupid. Every human is individual self, with its own set of skills. If you read the eye catchers column on page 49 you will get to know that even a child who is disabled in one way or the other has a set of skill. The girl in the column has a unique, convincing manner of speaking. Itâ&#x20AC;&#x2122;s her parentâ&#x20AC;&#x2122;s effort who identified the special skill in her not focusing on her disabilities. And she is the lucky one to get an invite from none other than US President Obama. So discover the diamond in you, discover what you are good at. Find out what you are made for. God gifts every one with a special skill. Some are able to identify yet others are not. Life is not just about Mathematics or Biology. It is about discovering yourself and doing what you are made for. Treat education as manifestation of perfection already in you.

PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014 63

softcorner

REDIFINING LIFE BEHIND BARS

J's is a unique brand with a wide range of products which are manufactured by the prison inmates in Tihar Jail Factory. This provides an opportunity of reformation & rehabilitation to them by channelising their energy towards a positive direction.

prices to the public, government and private institutions TJ's products are manufactured in Tihar Jail Factory, which is accredited with various ISO certifications for complying with international

TJ's has a variety of products such as Bakery products, Handloom & Textile, Apparel, Furniture, Pure Mustard Oil, Recycled hand-made paper products, paintings, designer candles & lamps, Jute bags, herbal products and many more. TJ's is a brand developed with a non-commercial and non-profit objective. It offers best quality products at very competitive

The Smallest Act of Kindness is worth more than the grandest intention Oscar Wilde

64 PROPERTY & WEALTH VOL 4, ISSUE 01, August-September 2014

standards & practices.

Mr. Ajay Gupta

amazing facts

Gen X Entrepreneurs

he advent of Internet has been a significant game changer for our generation. Mouse Charmers are a new breed of entrepreneurs in emerging India powered by the Internet and the opportunities that it offers to create new markets and to cater to old markets in new ways. Some of them have already achieved success where they can be called iconic and inspiring while others have powerful ideas that put them on the same path. Anuradha Goyal tells the stories of digital in three key areas: commerce, content and connectors. how they started out, the innovations and technologies involved, their business models and unique marketing strategies. Inspiring and useful, The Mouse Charmers is an essential guide for aspiring entrepreneurs and features Flipkart * MakeMyTrip * Big Basket * CaratLane * Zomato * Games2Win ImagesBazaar * Chai with Lakshmi * shaadi.com * RangDe * CommonFloor * IndiBlogger Featuring the popular real estate portal, CommonFloor (founded in 2008) Anuradha in her book the Mouse Charmers, says, that the unique prtal connects the housing community of home seekers, real estate owners, builders and service providers (maintenance, security, interior design). The apartment management ERP tool helps address community needs across various stages of home activities and not just oneoff interactions. Revenue sources include paid listings, ads and database insights. New ideas were generated earlier via

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brainstorming with The Morpheus and now via user meetups; experimentation continues with features like augmentedreality viewing tools. Anuradha has 18+ years of experience spanning across the various facets of IT industry. Her experience includes program managing multiple initiatives, incubating new groups in fresh areas that address the multiple levers of the organization and help it define the new growth engines. The key initiatives she has handled include creating the platform for innovations where everyone in the organization can participate, enabling the organization to capture and capitalize the latent ideas in internal teams. The initiative involved not only capturing ideas but managing the life cycle of the ideas generated. These programs inherently include elements the change management and multiple enabling initiatives. She has published multiple papers in various forums and journals and is an active blogger. Her Ideas to Explore series brings forth ideas that are open to anyone to pick and work upon, these are ideas that Anuradha thinks have business potential and are supported by strong customer needs. Interstingly, this year in the 25th edition of India’s premier record book Limca Book of Records, this blog AnuReviews. com found a place as a record holder with maximum ever number of books reviewed.

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