Property & Wealth, Vol 4 - Issue 4. by Property & Wealth

contents

COVER STORY

E-Commerce - The Game Changer for Retail in India Store Retail is facing the e-challenge. The good thing is that store retailers are not just watching but gearing up for a transformational change. Retailers who keep pace with technology, adopt omni channel and focus on their differentiators rather than merely competing on discounts have the opportunity to thrive.

propertywise

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News & Events 15 Hotspots 23 The hard facts of the housing Shortage in India 28 Government Passes Land Acquisition Bill In Lok Sabha 30 9 sales pitches that you should be wary of while buying your first house 32 Mohaliâ&#x20AC;&#x201C;consistently a hot destination to invest near Chandigarh 34

prosperityseek

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Be a Prosperit Seeker

Amazing Buildings

Amazing Gadgets

World Heritage Sites

Eyecatchers

Planetsavers 45 Celebrating habitat â&#x20AC;&#x201C; the real, the virtual & the imaginary'

Collaborate, innovate & celebrate 48 Softcorner 50

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04 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

from the

about this issue

Retailers that cannot successfully complete an omni channel transformation will begin to fade, while others that are ahead of the omni channel curve will take the lead and prosper. In our cover story this month, read how e-retailers are posing a challenge to brick & mortar retailers and how the latter are planning to get transformed to keep the game on. The news sections reports how DLF plans to pare it debts using REIT platforms, its strategy to monetise almost 30 million sq. feet of commercial assets. News ahead reports on brisk sales in a relatively very slow market, for the Park by Lodha Group. In property hot spots, browse through projects near upcoming Mohali International Airport and Mullanpur, New Chandigarh. While Airport zone promises to be a business hub of the near future, New Chandigarh is all develop as Punjabâ&#x20AC;&#x2122;s 1st Eco City with thrust on services sector including health and education. 'India has hundreds of problems and millions of solutions'. Meet our eye catcher â&#x20AC;&#x2DC;Kailash Satyarthi, the seventh Indian to win the Nobel prize. Trim, soft-spoken, articulate, amiable yet passionate about his work and goals, read the inspiring brief about the Nobel Peace Laureate. My Personal favourite, which changed the way I do perceive my business. Innovate, Collaborate & Celebrate, a truely inspiring speech by Shoppers Stop founder B.S.Nagesh. Trust me on this, do not miss to carry out his message and it might improve the way you carry your business. In soft corner, read how Lodha group is extending its vision of 'Building a Better Life', the devoting over 2% of our annual profits are to community development activities that are undertaken by Lodha Foundation. Hope you enjoy the magazine. Wish you good read.

Jasmeet Dhamija Editor-in-Chief 06 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

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

editorial Roll, Camera…………………A-C-T-I-O-N With the roles set, vision in place, its time for policy & framework reforms to be acted

Editor Charu RS charu@propertyandwealth.in

upon. Only a few months old, the new government indeed has been able to touch the right cords to spurt up the market sentiments and for the people, at large, to sense the blossoms of change through the social policy rich DNA of the government. In principle, the year has seen a number of announcements. From formalizing Foreign Direct Investment (FDI) in the construction sector by relaxing investment norms, approving the guidelines to set up Real Estate Investment Trusts (REITs) in India to easier lending norms announced for affordable housing, the government has been able to make the right kind of noises in the real estate sector. Speaking of “Housing for All by 2022” as a policy of the Government, it is been seen as an invitation by itself to a new discourse on Housing. Unlike anything that has gone before, the Government for the first time has set up a task that is definite in terms of scope and timeline. At another level, taken along with Clean India campaign and the Smart Cities project, the Government policy in its totality involves a shift from a situation where urbanization was marginal to policy to one where urbanization is recognized as a feature of modernity and a desirable end in itself. In terms of investment, 2014 was a robust year for deal making. As per sources, it saw investors—private equity funds, non-banking financial companies, sovereign and pension funds—queuing up to fund developers. So far this year, around $1.13 billion across 45 deals has been invested in the real estate sector, compared with $756.74 million in 46 transactions in 2013.

Feature Writers Monika Tandon, Satpal Kataria, Prabhjit S., Rupinder K. Art Director & Visualiser Rajesh Bhardwaj Graphics Team Sunil Rana, Sanjeev, Mamta Rawat Advertisement & Sales Navjeet Sood (COO) 98106 30665, 95694 74873 nsood@propertyandwealth.in Subscription Ajay Gupta 9216841278 Photography Rohit Bhatia Pre Press Team: Gopal B. Production Team: Vijay Maurya, Jitender Kumar.

With experts still sensing a status quo for the sector, a comeback in home sales might add the much-needed momentum in the sector. This would generate positive cash flows for developers, who have been borrowing capital at high rates to repay debt, make payments for land buys and to execute projects. A cut in interest rates by the Reserve Bank of India (RBI) may too offer a trigger of sorts, but a full-scale revival is still far away. While all this is just keeping with the pace in implementing the pending reform proposals and also unpolularly been seen as extensions of the administrative agenda of the previous goverenment, the real structururals reforms are yet to see light of the day. On the regulatory front, 2015 has its fair share of challenges. The still-pending Real Estate Regulatory Bill has been hotly contested at every stage, and its approval has

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.

been deferred once again only recently. There is also a pressing need to revisit the Land Acquisition, Rehabilitation and Resettlement Act in 2015 given that land is single biggest

Print Production

hurdle in the sector and with the government’s ambitious focus on housing for all. To set the tune right for bolstering the lost dynamism of the economy, there is a need for radical structural reforms & hence for the Modi led government to prove its reformist credentials. Well! so, the stage is set, the cast in place, camera ready, it’s time for the director sahib to say ACTION!!

Charu RS Editor

info@ideaprintcity.com

cover story

re e-commerce sites creating a crisis for brick and mortar retail? Indian retailers are receiving approximately half the foot fall that they experienced just a year ago. With consumer confidence in e-commerce growing in leaps and bounds, the decline in foot traffic signifies a major shift in the way consumers shop and buy. There is no denying that everyone is leading a busy life. Shopping does take time and buyers are finding it easy to research and shop it online. Although in-store visits in India are not just about shopping, they are mini excursions as Retail Plazas and Malls offer wholesome experience which can be fun. Mall visits can be multipurpose in many ways as movies and eating out are often a part of it. Whereas shopping online or via a mobile device offers a relaxed homely experience as it can done from the couch while watching a world cup cricket match, during office hours, lunch breaks and while on the go. The last year hasnâ&#x20AC;&#x2122;t been particularly kind to big & small traditional brick-mortar store retailers in India. The brands and malls that were once regarded as unshakeable are now recording negative growth in sales & footfall alike. Many are trying or rather forced to reorient and a few are opting to close the shop all together. Talking in specific about Chandigarh Capital Region, nearly all Malls baring Ellante are barely able to run on the basis of Movie Screens they run. Store Retails Vs E-Retailers, the Game is On Retailers that cannot successfully complete an omni channel transformation will begin to fade, while others that are ahead of the omni channel curve will take the lead and prosper.Â Without a major re orientation, the traditional malls may go further down & even extinct and we have live examples of the same from the Chandigarh Capital Region, referring in particular to PVR Mall, City Emporium, Shalimar Mall, Piccadilly and Fun Repulic. The malls really need to offer more than what they are

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doing now. If customer interest continuous to fade and they really donâ&#x20AC;&#x2122;t have anything besides shopping to look far in these malls then the game is up. So what the retailers are doing besides opting to shut stores. A few aren't throwing in the towel just yet. Creating compelling experiences for brick-and-mortar shoppers is at the top of many retailers' To Do lists, with retailers brainstorming ways to integrate technology with traditional stores. What fuelled the e-commerce boom? New enabling technologies, spread of internet, time saving, better pricing, no physical boundaries, instant options with comparisons, loyalty rewards are the advantages that an online buyer enjoys over traditional brick-mortar stores. Retail business decision-makers increasingly recognize the value of data and

insight-driven decisioning based on customer preferences and approached 1-1 marketing. Mobile payment and apps that provide cashless capability have grown exponential in last couple of year making it easier to shop online. Loyalty Rewards are easy to maintain and claim online rather than at traditional stores. The marketing conversation is accessible to consumer via apps, social media, and mobile. All these factors fuelled the e-commerce boom. However, necessity is the mother of invention and store retailers are leaving no stone unturned to corner the advantages, a web store enjoys. Advantage E-Retailers & How the traditional stores can catch up? 1. CROSS MEDIA 1 to 1 Engagement Shoppers increasingly are interacting with retailers across channels – from web, across social and mobile platforms. In 2014, this became the social shopping norm, with internet access growing at a rapid pace of about 20% annually and users increasingly getting net savvy, these e-retailers have reasons to smile. Smart e-retailers have used these platforms to provide individualised and privilege message to their customers. All it takes is technology investment and customer data. E-retailers are able to get complete customer information during the registration process and have ready access to phone, email id and even address. Several sites further go on to record customer's date of births, anniversary dates, shopping

preferences and more. With the kind of data they have for each customer these retailers have been able to achieve higher sales. The ones that have invested, are seeing reduced cost of inventory, reduced out-of-stocks, and increased ability to forecast, target and promote products to specific consumer segments. Ideas for Traditional Stores on how to catch up with e-store Many traditional stores have been issuing loyalty card, privilege customer cards, and discount cards to attract and retain customers. While all this is good, they need to step up the efforts, put kiosks at their stores, where a customer can feed in more data, inputting preferences, likes, dislikes etc. At end of registration process a customer code can be generated. Currently less than 5% of the customers opt for a privilege card and hence retail store has database for less than 5% of the walk ins. If some incentives are put, say 2.5% flat off if you generate a customer code at the kiosk then this data entry customers can be up to 95% of the walk ins. A simple effective way to capture customer data. Now this can bring at par with an e store and the data can be used to put similar personalised promos on web, mobile apps and social media. 2. Easy & Delightful Browsing Experience Content sells the product as much as look, fit, and feel. Savvy retailers are using multimedia content to make the shopping experience more engaging. Retailers recognize that shoppers want to be entertained and informed as they browse the web PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 09

and make purchase decisions. Personalised login’s with saved preferences help the e-retailer offer only the things that the customer usually shop in far. User ratings, hot selling products are highlighted, making it easier for the consumer to take a decision. Ideas for Traditional Stores on how to catch up with e-store No matter how good a multimedia presentation or products shots may be, retail stores will keep a definite advantage as they allow the customer to actually feel, touch and try the product. More ever content-rich experiences extend beyond the web to the physical store. In 2015, retailers will continue to find new ways to differentiate the in-store shopping experience from the one shoppers find online – testing, trial and sampling, new ways of engaging with shoppers in-store thereby keeping the store relevant in the retail landscape. Marketers have been challenged to produce content for more channels (social, websites, search, newsletters, paid, owned, etc.), and have been challenged to make that content meaningful and informative. Content will continue to be a central directive for retail marketers in 2015. Innovative retailers can offer increasingly personalized and exclusive in-store only events and services; and invest in guest experience aimed at bringing customers to stores and keeping

DLF ties up with Snapdeal to sell flats online DLF will offer on Snapdeal about 50 flats in eight housing projects across the country in a price range of Rs 34 lakh to Rs 3 crore. Customers of the country's largest realty player will be able to buy flats at Rs 30,000 booking amount on the Snapdeal. With e-commerce business growing in India, realty major DLF has tied-up with online market place Snapdeal to sell its apartments and would offer 1 percent discount to potential home buyers. DLF will offer on Snapdeal about 50 flats in eight housing projects across the country in a price range of Rs 34 lakh to Rs 3 crore. Customers of the country's largest realty player will be able to buy flats at Rs 30,000 booking amount on the Snapdeal. These flats are in projects located at New Chandigarh, Panchkula, Lucknow, Bangalore, Chennai, Kochi and Kolkata. This is the first time DLF is having a tie-up with an e-commerce firm. Earlier, Tata Housing had tied up with Google, Snapdeal, and Housing.com, while Puravankara had tied up with Google and realty portal 99 acres.com. Godrej Properties , too, had tied up with Snapdeal to offer online booking of its projects. Snapdeal aims to become the most trusted channel for customers to buy apartments online. It has tied up with developers like Tata Value Homes, Godrej Properties and Kolte Patil among others.

them there and hence recording increased sales. Augmented Reality concept, which is about creating an interactive product experience and for providing better navigation of the store, has been on every retailer’s lips and more often showing up in vendor showcases at major retail shows. In 2015 this concept will be keenly watched for implementation at brick & mortar stores. iBeacons is another thing that is expected to be deployed across retail outlets in 2015. IBeacons are a new source of data to store retailers already short on data to do their consumer analysis. iBeacons allow for personalized, microlocation-based notifications and alerts. This technology allows for accurate placement of shoppers within a retail outlet and can provide store employees with information on the shopper and their digital metrics – an opportunity for the store to present "surprise and delight" offerings.

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Some e-retailers are also experiment with turning the store into a fulfillment center.

3. Options & Comparisons E-retailers have an advantage of showing more options as they are not bounded by warehouse space and displays. Instant comparisons for products across various brands, quick selection of products brand wise, colorwise, any parameter wise, cost wise etc. E-retailers are using data-enabled insights and analytics, a small subset of retailers are heavily investing in data scientists, data and analytic discovery platforms, and new analytic tools that go well beyond traditional vertical and horizontal views of the business. New analytics, insights, and resulting decisions will fuel the "potential" for growth while maximizing existing investments – and allow for faster business decisions based on new performance metrics. Ideas for Traditional Stores on how to catch up with e-store From a customer experience perspective, there is no comparing buying in physical presence. In a world of increasing choice, customer still likes to keep his preferences short and rather focus on being an informed buyer. Retail stores can focus on creating a unique experience focused on convenience for customers. Built in feedback loops, ease of access and user experience are at the heart of marketing strategy for brick and mortar stores. Retail marketers must consider how to curate better experiences for consumers. 4. Expanding technologies – advantage e-retailer Net is growing @ 20% CAGR in India and data packages on mobile sets is only making it easier for people to shop while on move. In 2014, mobile payment capabilities grew exponentially as e-retailers deployed numerous ways to pay, may it be through debit cards, credit cards, loyalty rewards, net banking, pay pal etc. Cashless will grow substantially with the capability in 2015. Financial institutions, payment networks, mobile network operators, merchants, and mobile technology providers all have a vested interest in the deployment of

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Amazon is rapidly expanding fulfillment centers, and locating them near major metropolitan areas in an effort to locate key high demand products close enough to efficiently serve same-day or next-day delivery. Retailers have more limited warehouse infrastructure for their online businesses, but may have a big advantage in many store locations nationally and even worldwide. In the 1990s, many retailers pushed to have all their stock on the sales floor. But now we may see stores re-modeled to add direct order fulfillment and stocking in the back-office, limiting the assortments stocked on the floor. This will require system investments and operational changes, but these are critical for competing long-term with the likes of Amazon and other resourceful retailers.

a profitable mobile wallet solution and are battling for their own share and from here things are only going to grow and advance. Ideas for Traditional Stores on how to catch up with e-store Most retailers will say that cash can never go away completely (due to consumers not having credit cards, bank accounts, or smartphones. Face of retail is changing and e-commerce is the virtual game changer. Thinking of the past got to change. A key element to implement for brick and mortar retailers in this evolution is the convergence of online and in-store systems. A unified commerce platform needs to be put in place that leverages the latest technological advances to serve omni channel shoppers. Omni channel is the idea that every channel must work together to deliver a unified and consistent customer experience. For retailers this means trying to slide by with in-store pick-up of online orders, or taking returns in-store of orders customers placed via the Web. However, the business case extends well beyond these tactical initiatives to satisfy basic customer needs—increasing the lifetime value of customers, delivering faster inventory turns in-store and creating higher margins through reduced markdowns of stock stuck at the wrong store. With all the steps that store retailers will be taking, it can be said that the game is far from over as the good thing is that Store Retailers are not just watching but taking some concrete steps to save their market space. -Satpal Kataria

The history of retail is littered with individuals that failed to make it big — businesses struggle and crash for a multitude of reasons. But when a retail venture hits it big, it can really hit it big, and make tycoons out of those holding the reigns. Forbes 29th annual look at the world's richest is littered with retailers; in fact three of the top 10 and seven of the top 20 finishers made their fortune in retail. According to Forbes the number of billionaires in the world today has hit an all-time record of 1,826 with an aggregate net worth of over $7 trillion. Here are the top few richest retailers (brick & mortar as well as online) according to the report: Amancio Ortega. RETAIL VENTURE : ZARA The 78-year-old, self-made billionaire started the apparel and accessories retailer Zara in the mid-70s working out of his living room. Through innovative business practices like limiting advertising and controlling much of his own supply chain the Spaniard aggressively expanded the company. Forbes ranking: 4. Net worth: $64.5 billion. Christy Walton. RETAIL VENTURE : WALMART The richest women in the world married into the Walton family and inherited her fortune from her late husband John Walton. The majority of her wealth comes from her Walmart holdings — she made over $470 million after taxes from dividends on Walmart stock in 2014 alone. Forbes ranking: 8. Net worth: $41.7 billion. Jim Walton. RETAIL VENTURE : WALMART The youngest son of Sam Walton, the iconic founder of Walmart, is a board member at the company his father started. In addition to his responsibilities in the family business, Jim Walton is also the CEO and chairman of Arvest Bank. Forbes ranking: 9. Net worth: $40.6 billion. Alice Walton. RETAIL VENTURE : WALMART The daughter of Sam Walton is the heir to the Walmart fortune. She doesn’t have an active hand in the running of the company, instead occupies her time with art curation. Forbes ranking: 11. Net worth: $39.4 billion.

S. Robson Walton. RETAIL VENTURE : WALMART The eldest son of Sam Walton is the chairman of the board at Walmart and the face of the company. In addition to his role at the retailer, Walton also owns the venture capital firm Madrone Capital Partners. Forbes ranking: 12. Net worth: $39.1 billion. Jeff Bezos. RETAIL VENTURE : AMAZON The 51-year-old CEO and founder of Amazon continues to grow the online giant. The company is no longer simply an online marketplace, it has its own line of smartphones and tablets, produces video content, and is reportedly entering the movie business. Forbes ranking: 15. Net worth: $34.8 billion. Jack Ma. RETAIL VENTURE : Alibaba Founded the Chinese e-commerce giant Alibaba. The brand, which is routinely called the Amazon of China, broke a Wall Street record with its $25-billion initial public offering last fall. Forbes ranking: 33. Net worth: $22.7 billion. Phil Knight. RETAIL VENTURE : Nike The founder and chairman of Nike oversees the ever-expanding athletic shoe and sportswear empire. The 77-year-old continues to expand Nike around the world and his company's swoosh logo is universally recognizable. Forbes ranking: 35. New worth: $21.5 billion.

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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 DLF plans to pare debt with REITS & Divestment

REIT platforms to monetise almost 30 million sq feet of commercial assets Gurgaon

India’s leading real estate developer DLF plans to raise over Rs 3,000 crore through divestment or joint ventures in certain projects and will form two Real Estate Investment Trusts (REITs) next fiscal as part of its strategy to improve cash flow and reduce debt. DLF awaits Finance Minister Arun Jaitley’s Budget to give clarity on tax treatment for Real Estate Investment Trusts (REITs), through which the company expects to ease its `20,000-crore debt. While the company has already appointed investment banks JP Morgan and Morgan Stanley for listing REITs. For sponsors to structure REITs, they have to exchange shares (of underlying properties) in a special purpose vehicle. Currently, there is no clarity on whether transfer of shares will attract minimum alternate tax (MAT) or not. “REITs in India need to be competitive in terms of MAT and Dividend Distribution Tax (DDT) feels DLF. “Ninety per cent of the lease rentals are supposed to be distributed to the buyers of units, whether be an individual or an FII (foreign institutional investor). There would be less incentive to invest if you cut down returns in the form of DDT.” The developer is committed to forming two REIT platforms to monetise almost 30 million sq feet of commercial assets, DLF had said in its investor presentation post the third quarter financial results. It will create two REIT platforms next year – one for office and the other for retail — and will target first filing within fiscal 2016. The current attributable net debt to developmental business (DevCo) is `6,350 crore and to leasing business (RentCo) is `14,000 crore. The leasing business is 30 million sq ft. The company has reported a 9.2 per cent drop in net profit at `131.79 crore for the third quarter of the current fiscal, compared with `145.29 crore in the same period a year ago. The total income from operations fell 4.9 per cent at `1,956.72 crore (`2,058.42 crore). As far as the developmental business debt is concerned, it has

taken a hit over the last six years. But if the company strikes a large deal, then it can wipe out some of its debt, and reduce the developmental debt first. If an REIT comes in, then the company will get an immediate boost, as it will be able to reduce its debt. The company is in dialogue with few private equity players for part cash out in some marquee projects before launching in FY'16. DLF's net debt has risen by nearly Rs 400 crore to Rs 20,336 crore as on December 31, 2014. The current attributable net debt to DevCo (development arm) is Rs 6,350 crore and to RentCo (rental business) is about Rs 14,000 crore. While DLF wants to maintain the debt of DevCo range bound by raising private equity funds, the company plans to cut debt of RentCo through launch of REITs. The committee of independent directors have appointed two investment banks JP Morgan and Morgan Stanley to advise them of the best possible path going forward which will create sustainable, long term income for DLF and its shareholders. DLF, the real estate major has been riding on tightrope with interim order by the Supreme Court (SC) to deposit Rs 630 crore in an antitrust case while CCI adding to its trouble by adding more cases and SC refusing to put stay on the same. On the operational front, the company will look at a couple of launches in the Gurgaon market to improve its residential sales bookings. It has not had a launch in over a year, given the sluggish market conditions of in the National Capital Region, which accounts for over half its sales. DLF will be hoping for an encouraging response, as this will not only improve its struggling development portfolio but also help it reduce debt.

forthcoming events Times Property Expo - Delhi Venue: Pargati Maidan Date: 20th March to 23rd March

Delhi

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news&events INDIA BULLS records higher profits Mumbai

India Bulls Real Estate Ltd (IBREL) has reported more than two-fold jump in consolidated net profit at Rs 78.75 crore for the third quarter ended December 31 on higher sales. Its net profit was Rs 28.36 crore in the October-December period of 2013-14. Income from operations rose 45 per cent to Rs 652.11 crore in the third quarter of 2014-15, as against Rs 449.67 crore in the year-ago period. Its total income increased to Rs 728.79 crore for the quarter ended December from Rs 462.56 crore in the year-ago period, Mumbai-based IBREL said in a filing to the BSE.

The company has major presence in Mumbai and DelhiNCR markets. It also has projects in London. It is currently developing 9 projects in India with total saleable area of 29.09 million sq ft. During the third quarter of this fiscal, IBREL sold 330,00 sq ft of area for Rs 523 crore. It also raised $175 million through International Bond offering. The company also acquired 7.2 acre prime land parcel in Thane from Voltas through an auction process. IBREL said it has a fully paid land bank of 1,010 acres across major cities and that is sufficient for proposed development over the next 7 years. The company also possesses 2,588 acres of SEZ land in Nashik, Maharashtra.

DIP in New Realty Launches, reports Cushman & Wakfield Mumbai

Real estate developers launched 1.53 lakh new housing units during the last calendar year, a fall of 12 per cent from 2013, in the country's top eight cities. According to property consultant Cushman & Wakefield, cities such as Ahmedabad, Bengaluru, Chennai, DelhiNCR, Hyderabad, Kolkata, Mumbai and Pune had together witnessed a launch of 1,74,400 housing units during 2013. In Delhi-NCR, the launch of new homes dropped by 30 per cent to 38,400 units in 2014 from 26,800 units in the previous year, C&W said in a statement.Mumbai saw a decline of 19 per cent in launches at 25,000 units, while Bengaluru witnessed a fall of 17 per cent at 40,900 flats. Bengaluru, Delhi-NCR and Mumbai accounted for 60 per cent of the total new launches in 2014. The number of new unit launches dropped substantially by 46 per cent in Hyderabad as developers reconcile to the changing market dynamics post the bifurcation of the state, the consultant said.

C&W Executive Managing Director South Asia Sanjay Dutt said: "Despite the upliftment of economic sentiments post the election, the end user uptake of residential units has been restricted leaving a reasonable unsold inventory that developers would like to off-load." Mid-segment residential units continued to remain favourite amongst developers with a two-third share in total launches. Unit launches in this segment increased by 5 per cent from the previous year. "Unit launches in the high-end segment dipped by 29 per cent in a year; whilst in the affordable segment they declined by 38 per cent from the previous year. Although luxury units contributed only 1 per cent to total unit launches, they increased by five times from the previous year," the statement said.

forthcoming events The Indian Luxury Expo Venue: New Delh Date: 27th Feb- 1st Mar 2015 18 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

New Delh

news&events Rental Market PropIndex by Magicbricks New Delhi

Magicbricks has launched its 1st PropIndex Rental Market Analysis Report (Oct-Dec 2014). This is the first time Magicbricks has taken a dip into the demand and supply analysis of the rental market. The report gives insights about the existing demand and supply in different budget ranges, BHK configurations and property types across the 11 major cities of India. The maiden edition reveals that over 75% demand is noted for apartments as rented accommodations while the Rs 10,000-15,000 rent-per-month category is the most preferred segment. "Limited availability of ready-to-move-in properties and pilling up of under-construction inventory has pushed up the rental demand. In an endeavor to address the growing demand for properties on lease, Magicbricks has deconstructed rental demand and supply activity across residential categories in the top 11 cities," says Jayashree Kurup, Head, Content and Research, Magicbricks. This report shows that at the national level nearly 30 per cent demand in the rental market is noted for the Rs 10,00015,000 per month category. It further reveals that 9 out of the 11 cities tracked witness over 75 per cent demand for apartments. Chennaiand Bengaluru on the other hand have seen a significant demand of 35-37 per cent for other residential housing formats. Key Takeaways - Demand for residential properties on lease is the highest in Bengaluru followed by Mumbai and Pune - Nearly 55 per cent demand is witnessed for the budget category of Rs 10,000-20,000 per month. While supply for the category is nearly 35 per cent - Nearly 45 per cent demand is for 1 and 2BHK units each across the 11 cities while 40 per cent demand is concentrated on 2BHK units alone. - Supply across cities is concentrated for 2 and 3BHK units with more than 70 per cent availability except in Mumbai - Mumbai records the highest demand (61%) and supply (31%) for 1BHK units - Seven out of the tracked 11 cities recorded the maximum supply for 3BHK units

Delhi records the highest demand (41%) for properties on a monthly rent of Rs 15,000-25,000 while supply is still inclined towards the Rs 50,000 and above category. The 2BHK units also witnessed a significant demand of 45 per cent. However, 47% supply was inclined towards the 3BHK category. A drastic drop in demand of nearly 20 per cent was for properties commanding a monthly rent of Rs 40,000 and above inGurgaon. And demand saw a shift towards the up to Rs 20,000 per month and Rs 20,000-25,000 per month categories. Noida recorded more than 50 per cent demand for 2BHK units while supply was inclined towards the 3BHK category. In Ghaziabad, 2BHK units were the most demanded as well as supplied category while 3BHK units were over-supplied by more than 25 per cent. More than 65 per cent demand was noted for properties commanding a monthly rent of Rs 10,000-20,000. Supply in Mumbai was concentrated for smaller units (1 and 2BHK) with nearly 75 per cent availability while demand for the same stood at 92 per cent. Properties commanding a monthly rent of Rs 10,00020,000 were the most preferred as well as supplied in Pune. Demand (14%) and supply (12%) for Rs 20,00025,000 per month category was almost corresponding. Both 2 and 3BHK units saw a healthy supply of over 40 per cent in Ahmedabad in the current quarter. On the other hand demand was seen for 1 and 2BHK units with 85 per cent preference. Both Chennai and Hyderabad recorded the highest demand in the Rs 10,000-15,000 per month category. Cities in the south including Bangalore recorded the highest demand (24-37%) and supply (22-39%) for residential houses.

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news&events Connaught Place – India’s No. 1 CBD Connaught Place has moved up two places to the sixth spot on the global top 10 rankings for prime office markets in 2014. New Delhi

It's official, Delhi's Connaught Place is now the number one office location in India. Leaving behind Mumbai's commercial business district of Bandra-Kurla Complex (BKC), Delhi's Connaught Place has emerged as the most sought after office location in the country. BKC has slipped to the second position in the list of expensive office locations in India. BKC also ranks eighth in the Asia Pacific region for prime office market.

new corporate real estate spaces, renting day offices in New Delhi is a good option.

According to Nakul Mathur, Director of Operations at Avanta Business Centre Pvt. Ltd., " This upward trend in global marketplace has helped Connaught Place become the number one business district in India. It has been one of the business-friendly districts in the country and has now become the number one."

In 2013, Connaught fell down from fourth to the eighth spot due to the appreciation of US Dollar and Euro against Indian Rupee. However, few gains of Indian Rupee in recent times have put this CBD back up on global rankings.

He further added, "Being in Connaught Place gives you an opportunity to position your business strongly in the global market. Leasing your own office can be a little expensive, but a fully-equipped office space in Connaught Place is the way to go. They're economical, ready-to-go, and strategically placed in the number one business district of India." Connaught Place has a strong leasing environment. Office occupiers from all sectors tend to lease commercial office spaces in Connaught Place. However, with the shortage of 20 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

As per the recent survey by CBRE, a prominent commercial real estate services and investment firm, Delhi's Central Business District (CBD) - Connaught Place has moved up two places to the sixth spot on the global top 10 rankings for prime office markets in 2014.

"Connaught Place remains a highly sought after destination for corporate office occupiers because of its central location and connectivity to the rest of the city," CBRE said. The business district continues to attract sectors like banking, consulting, insurance, trade, media, and financial services. The CBRE survey said that there has been a rising demand for high quality space in Connaught Place because it is the oldest established office centre in the country. This location is also in close proximity to other establishments such as trading centres, government organisations and retail location.

news&events The Park by Lodha Group Reopens With Over 250 Crores of Sales in One Weekend Mumbai

Worli, located at the entry to South Mumbai, is emerging as the preferred luxury district of Mumbai with the rich and famous moving here in large numbers. The Park, located at this central hub, has recently received unprecedented interest within one weekend (two days) - clocking over Rs. 250 crores re-establishing the area as one of the most coveted places to live in Mumbai. Worli has become hub to a plethora of offices and conglomerates being headquartered in this area. This is well complimented by two of the city's newest luxury hotels, the Palladium Hotel and the Four Seasons, as well as the Phoenix Mills and Palladium mall, which will soon be joined by another luxury retail centre, this one by Bombay Dyeing, at Spring Mills. Entertainment has also acted as a proponent, with a slew of popular flagship brands such as PVR multiplex, SMAASH, Blue Frog and a host of independent restaurants and bars emerging in the erstwhile mills of this area. Lodha Group has been at the forefront of the urban renewal of this prime location, building some of the most coveted residential developments in this area, including World One (which will soon top off as the world's tallest residential tower), and The Park, a luxury 17-acre development that has Aishwarya Rai Bachchan as its brand ambassador. Commenting on the gentrification of Worli, Abhinandan Lodha, Deputy Managing Director of the Lodha Group said, "Mumbaidesperately needs a world class live-work-play destination, which is easily accessible from all parts of the city. Worli enjoys great connectivity with Malabar Hill and Nariman Point as well as Bandra and the airport. With the focus of the government on making significant improvements in the investment climate in Maharashtra, we expect that Worli will become the hub to showcase how Mumbai can offer a world-class mixed use location. In fact, we recently re-opened bookings for 'The Park' and in just one weekend (two days), over 250 crores of residences have been sold . This shows that with great quality products in this location, there is only one direction to prices and demand - up! We recommend

that anyone looking at Mumbai from a medium to long term perspective should consider buying into a high-quality development in this area at current prices." Shveta Jain, Executive Director, Residential Services, Cushman & Wakefield (i) Pvt. Ltd. acknowledged the development by saying, "There is interest from clients, both in Mumbai and from offshore, to own prestigious real estate in the city. The area has outrun our expectations for 2014 and we expect decent returns in terms of market lease rates as well as capital gain rates year on year. Some of the nicer developments in this region are being led by the Lodha Group of Mumbai - adding to the fervour is a gorgeously landscaped 17-acre space called The Park." Mrs. Aishwarya Rai Bachchan, future resident and brand ambassador for The Park, has expressed her appreciation of the development, stating The Park as an outstanding development, at par with the best internationally. Currently 2, 3, 4 and 5 bed apartments are being developed across the mixed-use development which will feature select bungalows and townhouses.

PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 21

news&events World One, the world's tallest residential tower records brisk sale Property registered bookings to the tune of over INR 500 Cr in the metropolis, three years after it reopened for bookings. Mumbai

The iconic World One is part of the ultra-luxurious development, The World Towers by Lodha Group, India's one of the largest real estate developer. It is Asia's first project to have interior design by Armani/CASA and is located in the island city's 'Golden Mile', a mile long stretch of premium residences, offices and entertainment centres in southcentral Mumbai. Nearly 75 per cent of the civil construction has been executed. The project is expected to be completed in 2016. "World One reopened sales for a limited window and received record bookings within few days. This reflects on customer's appetite and desire for buying high-end, high-quality

22 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

developments," said Mr. Abhishek Lodha, Managing Director, Lodha Group. Currently 3 and 4 BHK apartments are being developed, which are fetching in the upwards of INR 70,000 to INR 80,000 per sq. ft. Besides World One, Lodha Group is developing two other towers - World View and World Crest - on the land parcel spread over 17 acres. The World Towers will house luxurious World Residences, World Villas and select World Mansions offering an exclusive lifestyle experience to meet the demands of the cities affluent, eminent personalities and the crème de la crème of India Inc.

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 MIXED LAND USE & INDUSTRIAL SECTORS 82, 66, 66A, 66B + MULLANPUR - NEW CHANDIGARH

Location Plan Showing Mixed Land Use Areas Sector 66A, 66B, 82-A, 82, Near Airport, Mohali

HOT SPOT IN FOCUS

Disclaimer: Map is not to scale and purely for illustrative purpose. Accuracy of the map is not guaranteed. 24 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

MIXED LAND USE & INDUSTRIAL SECTORS 82, 66, 66A, 66B

JLPL GALAXY HEIGHTS

JLPL FALCON VIEWS

Location: Sector 66 A, Airport Aerocity Road, Mohali. Highlights: 6 Towers, 16 Storeys High, Airport view. Options: 2 BHK Apartments with Club House.

Budget Planner

90 100 150 >200

` in Lakh

Location: Sector 66- a Mohali Highlights: Over 28.5 acres of lush green majestic location, Falcon View combines all the urban essentials. An architectural landmark in the making. Options: 3, 4 BHK Residential Apartment.

Budget Planner

KLV SIGNATURE TOWERS PAGE NO. 1

rchitecture improves the quality of life elp conserve the earth’s resources. are well known consultants in the field of cape, MEP & delivery solutions nt.

JLPL City, Sector 66A, Mohali A KLV Builders & Developers & JLPL (Joint) Initiative

LUXURY IS BY APPOINTMENT ONLY

ny time up to the final “as built” status in accordance with final designs of the etc. may have variations in texture, color & behavior.

90 100 150 >200

` in Lakh

Budget Planner

90 100 150 >200

` in Lakh

90 100 150 >200

` in Lakh

JLPL IT TWIN TOWERS

Location: Sectors 82-A, 83 A and 101-A, Mohali. Highlights: IT City will have around 810 acres for IT industries, another 810 acres for residential purposes and remaining 180 acres for commercial establishments. Options: IT Plots & Residential Plots. 0

Location: 200 ft Airport Road, International Airport Mohali. Highlights: GMADA Developed 1200 Acres Township in Proximity to Mohali Internationa Airport Options: Residential Plots from 150 sq.yds to 500 sq.yds.

GMADA IT CITY

Budget Planner

GMADA AEROCITY

Location: Sector 66 A, Mohali. Highlights: Stone's throw distance from the Knowledge City Sector 81, Mohali spread across 350 acres, where ISB, IISER are operational. Options: 4BHK With Servant Room (3500 sqft)

KLV

Budget Planner

` in Lakh

Location: Sector 66 A, Mohali. Highlights: With flexibility in office sizes, there is plenty of room for corporates of all sizes to co-exist in perfect harmony. Options: Small Offices to Full Floor Plates.

Budget Planner

90 100 150 >200

` in Lakh

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.

PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 25

PCA CRICKET STADIUM

Disclaimer: Map is not to scale and purely for illustrative purpose. Accuracy of the map is not guaranteed. 26 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

www.capitalinfra.in

SUNTEC CITY

(Indian Co-Op. House Building Society Ltd.)

Phase-1

OMAXE

Phase-3

TATA CANCER HOSPITAL

OMAXE

ECO CITY

NEW CHANDIGARH

DLF DLF

HOT SPOT IN FOCUS

MULLANPUR - NEW CHANDIGARH

DLF HYDE PARK ESTATE PLOTS

OMAXE THE LAKE APARTMENTS

Location: New Chandigarh, Mullanpur, Behind Eco City Phase-1. Highlights: Just 06 km from PGI, Spacious Clubhouse, Shopping Club, Open Areas Options: Plots 250, 350 sq yds, SCO's, Microshops

Budget Planner

100

150

200

250 300 350 400

` in Lakh

Location: New Chandigarh, Mullanpur. Highlights:Aqua Themed, proximity to Sector 38 WEST, Chandigarh 3.5 kms only Options: 1BHK, 2BHK, 3BHK, 4BHK and 5BHK apartments, and penthouses

Budget Planner

SUNTEC CITY PLOTS

90 100 150 >200

` in Lakh

Altus Space Builders

90 100 150 >200

` in Lakh

Location: New Chandigarh, Mullanpur Highlights: Construction is in full swing by Shapoorji Pallonji Co. Ltd. Options: Independent Floors, Ground, FF, 2nd Floor, with or without lift on 350 sq yds plot

Budget Planner

90 100 150 >200

` in Lakh

PALM SPRINGS MANOHAR SINGH CO.

Location: Mullanpur, New Chandigarh Highlights: Plots located at village Salamtpur, Dhode Majra, Rasulpur and Saini Majra in Mullanpur Planning area of GMADA over an area of 270 acre Options: Plots 250, 350, 500 sq yds/villas/group housing

Budget Planner

DLF HYDE PARK TERRACES

Location: Sector 4E, New Chandigarh, Mullanpur Highlights: Sector-4E is very near Education hub and I.T./R&D zone as per New Chandigarh Master Plan. Options: 300, 400, 500, 1000 sq yds Plots, Independent Floors, Villas, Commercial.

Budget Planner

` in Lakh

Location: New Chandigarh, Mullanpur Highlights: Inspired by European architecture, the accent is on cutting edge, flowing design, layout and workmanship. Options: Super Area: 1500 sq. ft. 3 BHK + 3 Bathrooms

Budget Planner

90 100 150 >200

` in Lakh

PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 27

property wise

The hard facts of the housing shortage in India Today, land is not an easily available asset in India. In most cases, acquisition of a plot for housing development is a cumbersome, time-consuming and highly expensive process.

ven today, a majority of Indians still find it hard to fulfill the desire to own a home. Surprisingly, this is a decade when luxury items like LED TVs and smartphones are becoming affordable and housing is getting more and more expensive. Many people in India still live in below average standard homes. This does not mean that the average income of Indians is reducing, but only that housing prices have been increasingly exponentially. There is a huge gap between supply and demand and people have fewer choices when it comes to

28 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

living standards. In some case, people have to queue up and take part in lotteries to have homes allotted to them. According to the Ministry of Housing and Urban Poverty Alleviation, affordable housing constitutes living units for which the equated monthly installments (EMIs) should not exceed 40% of the owner’s gross monthly household income. However, even homes priced between Rs. 20-40 lakh are also often referred to as ‘affordable’ by developers.

Whatever the exact definition of ‘affordable housing' may be, the main concern is that there is a huge shortage of supply in this segment. 80% of this shortage is still concentrated in the economically weaker section (EWS) of the Indian population. If the current backlog is maintained, then by 2020 the country will be facing an extra demand for more than 30 million additional homes. According to the 12th 5-year plan (2012 – 2017), the housing shortage in India has reduced to 18.78 million. However, the data collection is questionable and government departments continue to argue on the exact figure Also, it is not just the income of the EWS that seems to be a deterrent factor here. Land prices, financial and regulatory concerns and other factors also play a big role in the problem. Today, land is not an easily available asset in India. In most cases, acquisition of a plot for housing development is a cumbersome, time-consuming and highly expensive process. With increasing population- and rising urban density, the demand for land has also seen an exponential rise. The shortage has also been contributed to by poor municipal, state and central regulations.

The majority of Indian home seekers are workers moving into cities and looking for housing that would be compatible with their starting incomes. The ones from the economically weaker sections look for properties that provide access to public transport, water and power supply systems, sewage treatment lines and other conveniences. In this respect, they are no different from home buyers from the middle or upper middle class. Why should they be? These are the basic things that any home buyer would look for. No matter what measures are proposed by the government of self-governing bodies of real estate developers, they will not be able to reduce the figure of housing deficit if they do not start catering to the EWS-generated demand. The bulk of the existing shortage of homes remains squarely in the genuinely affordable housing sector. No amount of supply in housing units costing above Rs. 20 lakh is going to make any difference – in fact, supply priced above this will just add to the oversupply that we are seeing in most cities. -Sachin Agarwal, CMD – Maple Shelters

Land prices are higher than the rate which is compatible with the development of mass real estate development – read affordable housing. There also has been an increase in the cost of construction, directly reflecting in the housing prices. Another problem is the lack of infrastructure. Developers are bringing out projects in peri-urban locations to keep the housing cost down, but these locations are generally unattractive based on lack of public transportation and increasing pollution in these areas. PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 29

property wise

Government passes land acquisition bill in lok sabha India has for the first time approved legislation allowing the creation of realestate investment trusts (REITs), a long-awaited move that should result in greater stability for the real estate industry in the country.

30 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

he Central Government managed to get the amended Land Acquisition Bill passed in Lok Sabha yesterday. The ruling dispensation enjoys brute majority in the Lok Sabha and hence had no problem getting the Bill passed through it. This Bill is an amended version of the original Bill introduced and passed in 2013 by the previous government. Due to a long-standing demand from industry to relax some provisions which made land acquisition difficult, expensive and time-consuming and thus harming industrial growth, the ruling party brought in some changes by the means of an ordinance. Normally, any ordinance has to be brought to the parliament within six months of it being issued to be passed again by the Parliament to make it a law. The new Bill introduced and passed in the Lok Sabha had nine additional amendments or concessions, plus two additional clauses made by the government to appease its allies and the opposition to some extent to gain some consensus before introducing it in the Rajya Sabha. The amendments made are: 1. Limiting the industrial corridor to 1 km on both sides of highways and railway lines. This is limited to industrial corridors being set up by the government only. 2. Employment for at least one member of farm labour families which are affected due to displacement and land acquisition. 3. Removal of exemption from consent clause extended earlier to five sectors has been taken away from social infrastructure projects under PPP model. SIA will be conducted for such projects also. 4. Acquisition to be of bare minimum land. 5. Survey to be undertaken of wastelands. 6. Hassle-free grievance redressal to be undertaken at district level and creation of a quasi-judicial authority. 7. Social Impact Assessment has been made a prerogative for the state governments. 8. States can create land banks of vacant land for development projects. The changes above are in addition to the earlier amendments moved through an ordinance where the government had added five sectors (defence, rural infra, affordable housing, industrial corridors, infra and social infra projects including PPP) to a list that would not require owners’ consent while acquiring land as well as exempted them from submitting

a social impact assessment (SIA) and removal of restriction on acquisition of multi-crop lands for these sectors. The last social infra projects including PP have been removed from the exemption list. The changes above have managed to appease the allies to some extent, but questions remain whether the opposition is willing to relent as most of them walked out during the vote in the Lok Sabha. In the Rajya Sabha however it is a different story as the ruling NDA does not enjoy a majority there and where the amended Bill is likely to be defeated by an united opposition. The earlier changes or removal of consent clause has been termed anti-farmer, though they are definitely industry-friendly, while removal of SIA will save costs and time both. The main point is that the process should be fair to both farmers as well as the industry. The government has the option to either pass the bill in a joint sitting of the two houses where it will have the requisite numbers to get it passed in case it gets rejected in the Rajya Sabha or it will have to re-promulgate the ordinance again to give itself breathing space. There is also the option of setting up a parliamentary panel and referring the bill to it, though it is likely to delay passage of the bill by a further six to eight month period. -Anuj Puri

PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 31

property wise

9 sales pitches that you should be wary of while buying your first house 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.

any young people are planning to buy their dream houses, but have been held back by high property prices and an uncertain job market. This is prudent because the decision to buy a house should be based not just on the need, but also on the individual's financial readiness. It involves a big financial commitment, and one should go ahead only if one is absolutely sure. As the festive New Year season approaches, salesmen and agents are preparing to lure you with freebies and discounts. Here's how to see through some of their sales pitches and take a decision based on facts. 32 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

â&#x20AC;&#x153;You can never go wrong with property.â&#x20AC;? The first thing a builder or realtor is likely to tell you is that real estate prices never go down. In other words, don't think about the price, just go ahead and buy. This is also the wisdom you may have received from friends, relatives or parents, the people who had bought property earlier. However, what was true then may not be so now. Real estate, like other asset classes, goes through periods of ups and downs. The only difference is that it is not as volatile as, say, stocks or gold. Property prices in some markets have been stagnant for the past 1-2 years. In fact, some areas have actually witnessed a fall in prices.

Don't fall for projections of high rental income Don't fall for projections of high rental income from property if you are not planning to occupy it immediately. 'No one can predict the rent a property will fetch in the future. These days, a reasonable annual rent is 4-5 per cent of the value of the property. However, in most cases, it is not possible to earn this much because property prices are very high,' says Pankaj Kapoor, managing director, Liases Foras, a real estate rating agency. “There may have been some correction in other areas, but we have not cut prices.” Recent media reports have talked about a correction in real estate prices, but if you mention this to the builder, he might laugh at you. Even if he agrees that some locations have witnessed a price correction, he will contend that the area where his project is coming up has not been affected. However, if you look around, you will see the signs. A correction in the property market does not necessarily mean that the builder has brought down the prices. Even if there has been an increase in price in the past year or so, it effectively means a correction in real terms if one accounts for inflation. Likewise, steeper discounts than the previous year on the same property are a correction in real terms. “This is the most affordable project in this area.” If a new project has 2-BHK flats priced at Rs. 42 lakh each, when the going price in the area is Rs. 50 lakh, isn't it a steal? Not really. The full-page ads in newspapers speak a lot about the facilities and features of the project, but miss out on an important detail—size of the flat. A recent report by Jones Lang LaSalle, a property consultant, reveals that the average apartment size has come down in top metros in the country. In Mumbai, for instance, the average unit has shrunk 31 per cent in the past five years. “We will deliver on time since there’s a penalty clause.” Project delays are a reality and very few are completed on schedule. Some builders do offer compensation for delays in handing over possession, but it's not something you can bank upon. One, the amount offered will be nowhere close to the EMI you are paying. This is because you would be paying the instalment for the total cost of property, but the compensation offered will be linked to the base price, which does not include additional charges for parking, club membership, etc. Some builders slip in a clause in the agreement, which insulates them against any claim by the buyer. Others have an upper limit for the compensation they will pay.

“These rates will be revised soon.” IT's the favourite trick used by almost every builder to entice buyers. If you tell a builder that you need time to think it over, he will say that the project is almost sold out and prices will soon be revised upwards. The fact is that today developers are more desperate to sell than buyers are eager to buy. Overheated markets, sliding stock prices and rising interest rates have made matters worse. “What you see is what you get.” Is neither true for the price quoted by the builder, nor for the sample flat that you see at the construction site. The latter may look like the perfect home you have been dreaming of, but the reality is quite different. The interior designers hired by the builders to do up the sample flats are experts at creating optical illusions. They know how to use lighting and place furniture in such a way that the house appears bigger. Even the furniture is an accomplice in this charade. The customised beds and dining table sets are smaller than the normal size and the cupboards lack depth. “The freebies bring down the effective cost.” Freebies are the flavour of the season. From registration fee to modular kitchens, even cars, all are being offered when you book an apartment in a project. Don't fall for these lures. All freebies are already factored into the price of the apartment. The same goes for the attractive schemes on offer. The truth is that developers urgently need the cash and many of the projects have not even got approvals from the authorities. This puts a question mark on these projects. Another such lure is the 'attractive' financing schemes that builders offer by tying up with banks and housing finance companies. In most cases, you will get a better deal by approaching the bank directly. “Don’t worry about the loan. We have tie-ups with banks.” Builders do have tie-ups with banks, but this is no way an endorsement for the project. A tie-up also does not promise the best home loan rate. What it means is that you are more likely to get a loan from those banks than with others. However, for the best rates, you may still need to go to the bank branch to negotiate, instead of relying on the representative at the bank site, a person who may not even be from the bank. You may also be told not to worry about the high home loan interest rates as 'rates will come down soon'. -Monica Tandon

PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 33

property wise

Mohali â&#x20AC;&#x201C; consistently a hot destination to invest near chandigarh Mohali is the only investment zone in and around Chandigarh apart from Zirakpur that has been consistent in terms of giving returns on investment.

ithstanding the blues of the economic slowdown last year, Mohali near Chandigarh is one investment zone that has consistently reaped healthy returns. Officially named as SAS Nagar, the town has played the role of a catalyst in Punjabâ&#x20AC;&#x2122;s real estate growth and witnessed a capital appreciation close to 83 per cent in the last four years (Q2 2014 over Q2 2010). Factors that have contributed to its growth include land crunch in Chandigarh, the well-established IT sector driving more investors and buyers to the Mohali and the subsequent 34 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

social and physical infrastructural growth that it is witnessing. The peripheral town is picturesque with the presence of lakes and lush green spaces, making it score high on location attractiveness index too. Price trends in Mohali Residential apartments in Mohali are priced in the range of Rs. 3150-4100 per sq. ft. The town has been on a growth trajectory for the last four years with average property prices increasing from Rs. 2050 per sq. ft. in the second quarter of

2010 to Rs. 3750 per sq. ft. in the second quarter of 2014. On an average the locality witnessed a 7-10 per cent hike in capital value of multi-storey apartments Y-o-Y.

be connected to the Chandigarh Airport, offering international flights to all major destinations around the world. The project is expected to be completed by 2015.

As with all other real estate markets in India, Mohali also faced the brunt of fiscal downfall in 2012-13 but the prices did not fall, they remained stable at around Rs. 3200 per sq. ft. for the entire financial year. However, with the change of Government at the Centre in May 2014, buyer sentiment improved and the property market witnessed a positive change. In less than six months, the rates of residential apartments rose to Rs. 3750 in Q2 2014 from Rs 3300 per sq. ft. in Q1 2014. This translates into a growth close to 14 per cent in just one quarter. Real estate experts feel that the uptrend is here to stay with the announcement of new infrastructural improvements in Mohali

Railway station at SAS Nagar: SAS Nagar has a railway station that connects the city with several important locations including Delhi, Ludhiana, Amritsar, Ambala and even other parts of the country.

Mohali vs. other investment zones around Chandigarh Mohali is the only investment zone in and around Chandigarh apart from Zirakpur that has been consistent in terms of giving returns on investment. The popular investment zones surrounding Mohali like Chandigarh, Dera Bassi and Kharar have shown significant falls in property prices. Real estate experts feel that the kind of planned residential spaces that Mohali offers is hard to find anywhere else in Punjab. According to Karanvir Kataria, Earth Group of Companies, Chandigarh, “Mohali has a dedicated transport nagar, IT park, and AERO city, which as its USPs. The well-designed internal road network and the demand flowing in from professionals operating in the companies located in Sectors 72-75 have added to Mohali’s growth as a residential zone.” Popular projects in Mohali Some of the upcoming projects in Mohali include a city centre at Sector 62, a habitat Centre in Sector 64, up gradation of existing road network and a golf range at Sector 48, Mohali, where facilities such as club, restaurant, swimming pool, etc. are proposed. Witnessing such developments a lot of good and well-known developers have come out with their residential projects in the city. Major developers present here include Unitech, Emaar MGF, IREO, Ansals and DLF. Infrastructural Developments and growth stimulators for Mohali The new developing sectors of Mohali offer direct connectivity to Chandigarh, Ambala, Ludhiana, Khanna, Delhi, Patiala, Ropar and Himachal Pradesh. This clubbed with a number of upcoming infrastructural developments are playing a major role in the growth of Mohali.

Housing demand from Chandigarh: Proximity and good connectivity with Chandigarh drives the housing demand to Mohali and the residents are able to enjoy social amenities and facilities of Chandigarh as well. Presence of IT SEZ: Mohali houses offices of many global tech giants like Dell, Philips, Sebiz Infotech and SCL to name a few. The Denver based Quark Inc. SEZ is also located in Mohali. It also houses many state local companies like PTL (Punjab Tractor Limited), ICI Paints and the Godrej Group. So the workflow here drives houses demand. Improvements on health front: Around 260 acre of land has been allocated for developing hospitals and health institutions in Mohali. A robust road network: Mohali has a wide network of roads, including 52 km of National Highway and State highway of 1272 km. Upcoming metro rail: A 37.573 km metro rail network is proposed to be constructed in Chandigarh out of which 23.468 km will be elevated and 14.105 km underground Corridor. It will run from north to south. It will start near Capitol Complex and will go up to Mohali (from secretariat to Aerocity, an upcoming golf course and a knowledge park). Knowledge City: A knowledge city is planned to be developed in Sector 81, housing some premier educational institutes like Indian Institute of Science Education and Research (IISER), National Institute of Nanotechnology, National Institute of Agro Food Biotechnology, etc. The premier management institute, Indian School of Business has its second campus in the knowledge city, Mohali. -Monica Tandon

Chandigarh International Airport in Mohali: The new international airport at Mohali is under construction and will to PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015 35

be a prosperity seeker

Virat Kohli

Kiran Mazumdar Shaw

A typical modern-day cricketer, Virat Kohli plays his game aggressively, bares his emotions loudly in public, yet retains the element of maturity that forms an integral part of every good and great player. Today he is recognised for his growing maturity, and, more importantly, for his superb skills with bat in hand. His defensive technique is organised, he is an accomplished strokeplayer all round the wicket. His gung-ho attitude, his youthful charm and his aggression have also made him the mascot of his IPL team, the Royal Challengers Bangalore. Kohli helped Bangalore reach the finals of the 2009 and 2011, IPL seasons and then almost single-handedly taking them to the title clash in the 2011 Champions League Twenty20. He was handed the Royal Challengers Bangalore' captaincy for the 2013 IPL season, with the intention of grooming him as the future captain of India. His fantastic fielding, and the ability to assess situations and seize the moment, makes Kohli one of the most exciting players.

Kiran Mazumdar Shaw, was named about the Fobesâ&#x20AC;&#x2122;2014 list of 100 Most Power Women. Ranking her name as 92nd, Kiran is the face of New India and is the founder of India's leading biotechnology enterprise, Biocon Ltd. With a net worth of $655 million, she is the wealthiest self-made woman. Biocon is famous for making low-cost drugs for chronic diseases, everything from head and neck cancers to diabetes, and delivers affordable medical products to partners in 70 countries. This year she set a benchmark by developing an affordableÂ HER2-positive breast cancer treatment. She is a recent donor of an handsome amount of $5 million for a new research unit at her cancer hospital in Bangalore.

36 PROPERTY & WEALTH VOL 4, ISSUE 04, March-April 2015

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

Solar Impulse 2

Dilip Shanghvi

Solar Impulse is aSwiss long-range solar-powered aircraft project. It is led by Swiss psychiatrist and aeronaut Bertrand Piccard, who co-piloted the first balloon to circle the world non-stop and Swiss businessman André Borschberg. The privately financed project hopes to achieve the first circumnavigation of the Earth by a piloted fixed-wing aircraft using only solar power. The first aircraft, bearing Swiss aircraft registration HBSIA and often referred to as Solar Impulse 1, conducted its first test flight in December 2009, and first flew an entire diurnal solar cycle, including nearly nine hours of night flying, in a 26-hour flight on 7–8 July 2010. Building on the experience of the prototype, a slightly larger follow-on design, designated HB-SIB and known as Solar Impulse 2, was built and first flown in 2014. In March 2015, it began a circumnavigation of the globe, leaving from Abu Dhabi in the United Arab Emirates and scheduled to return there five months later.

Founder of Sun Pharmaceutical Industries, India's most valuable drug company (market cap:$31 billion), is now the country's second-richest person, after Reliance Industries' Mukesh Ambani. Sun's shares surged after it acquired scandal-tainted rival Ranbaxy Laboratories from Japan's Daiichi Sankyo for $4 billion last year. In December, India's competition watchdog approved the deal, provided the merged outfit sells off 7 drugs. Some clouds: The U.S. Food & Drug Administration issued an import alert for Sun's factory in Gujarat and an unfavourable report for another factory. Sun recalled six drugs from the US over quality issues. In his first major move outside pharma, he struck a $300 million deal in February for a 23% stake in debt-laden wind power firm Suzlon. Shanghvi founded Sun in 1983 as a maker of psychiatric drugs borrowing the equivalent of $160 from his father.

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amazing buildings

Cybertecture Egg, Mumbai The concept for the Cybertecture Egg was inspired by looking at the world in terms of the planet, being a self sustaining vessel with an ecosystem that allows life to exist, grow and evolve. Like planet earth, the building exudes a sustainable ecosystem, derived from an integrated and seamless Cybertecture to give the buildingâ&#x20AC;&#x2122;s inhabitants a conducive environment to work in.

quotemagic

ALWAYS LAUGH WHEN YOU CAN. IT IS CHEAP MEDICINE. Lord Byron

amazing gadgets Our homes are our castles and, it’s fair to say that we love to fill our castles with technology and gadgetry. While there is a myriad array of gadgets out there that you can get today, we feature a simple one here that can prove to be of great utility. Happy gadgetry....

The Floor Plan Light Switch

hile only a concept idea, the contemporarystyled Floor Plan Light Switch by Taewon Hwang lets you control the lighting in your home from a single switch, with each room in the home represented on the floor plan shaped light switch.

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How many times have you left a light on upstairs just as you’re rushing out the door for work and don’t have time to switch it off? No more running back upstairs or the other side of the house to turn it off to save on electricity. Here’s to this being produced!

quotemagic

Your Integrity will always be remembered longer than your Prosperity.

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world heritage sites

Chhatrapati Shivaji Terminus (formerly Victoria Terminus)

The Chhatrapati Shivaji Terminus, formerly known as Victoria Terminus Station, in Mumbai, is an outstanding example of Victorian Gothic Revival architecture in India, blended with themes deriving from Indian traditional architecture. The building, designed by the British architect F. W. Stevens, became the symbol of Bombay as the â&#x20AC;&#x2DC;Gothic Cityâ&#x20AC;&#x2122; and the major international mercantile port of India. The terminal was built over 10 years, starting in 1878, according to a High Victorian Gothic design based on late medieval Italian models. Its remarkable

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stone dome, turrets, pointed arches and eccentric ground plan are close to traditional Indian palace architecture. It is an outstanding example of the meeting of two cultures, as British architects worked with Indian craftsmen to include Indian architectural tradition and idioms thus forging a new style unique to Bombay.

eyecatchers

â&#x20AC;&#x153;India has hundreds of problems and millions of solutions.

ailash Satyarthi, the seventh Indian to win the Nobel peace prize. Trim, soft-spoken, articulate, passionate and amiable, Satyarthi has always kept a low profile.

Born in Vidisha, in Madhya Pradesh state, Satyarthi, the son of a police officer, studied electrical engineering at a government college. His first campaigns involved a football club using membership fees to pay the school fees of needy children, while another project became a book bank in his home town. In 1980 Satyarthi founded the Bachpan Bachao Andolan (Save the Childhood Movement) and began raiding factories, brick kilns and carpet-making workshops where children and their indebted parents often pledge themselves to work for

decades in return for a short-term loan. He worked with Guardian Films on a documentary about modern-day slavery in Assam. In the film, he led a raid to rescue a girl trafficked from a tea estate into domestic slavery in Delhi. During filming, he explained the dangers of his work. â&#x20AC;&#x153;In my own case I have my broken leg and my broken head and my broken back and my broken shoulder, so different parts of my body have been broken while I was trying to rescue children. He lost 2 of his colleagues, one was shot dead and one was beaten to death. Most of his junior colleagues have been beaten up many, many times

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quotemagic

"MANY GO FISHING ALL

THEIR

LIVES

WITHOUT

KNOWING THAT IT IS NOT FISH THEY ARE AFTER. --Henry David Thoreau

planetsavers

SAVE PAPER

SAVE

TREES SAVE THE WORLD

• Think before you print • Print both sides of paper • Reduce the font size by 1 • Check Print preview before printing • Learn to load the letterheads/envelops correctly • Use a projector instead of printed hand-outs in metings • Go Digital - Read, write & store digital documents

prosperity seeker

Celebrating habitat – the real, the virtual & the imaginary' Celebrated architect Balkrishna V. Doshi, gives a glimpe of the way he sees space & design at an exhibition in the Capital.

“C

ities should celebrate public spaces with movement, chatter & transaction!”, believes Balkrishna Doshi, one of the most celebrated Indian architects. A believer in simplicity and keen observer and practitioner of living life in close communion with nature, Doshi has imbibed influences from a wide array of saints, sufis, philanthropists and innovators. In his own words, beautifully describing the set up of his architectural retrospective he said, “The arrangement is not chronological but intuitive, so as "to show relationships" and to ignite "wonder". "Architecture is not passive. It makes you feel something else than what you are, it awakens your spirit," The exhibition Celebrating Habitat – The Real, The Virtual & The Imaginary' which was up at the National Gallery of Modern Art (NGMA) in Delhi offering a glimpse into the way he sees space & design. “There is a lot to celebrate. Celebration is part of Indian life. If you look at Indian history and culture, we are full of celebrations -holidays, dancing, singing, eating, gathering on the street, under trees, in temples, during festivals.. Earlier courtyards, balconies, terraces, verandahs, were really the places of Indian habitat.When I talk about celebration I mean these places we have forgotten as a society.”says the sprightly 87-year-old architect talking about his idea of celebration in Indian architechture. The charismatic teacher who has inspired a generation of

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architects, has his philosophy of architecture rooted in his childhood. He grew up in a large, fairly prosperous Vaishnava family in Pune and remembers his learnings from the epics & Indian mythology. His own house in Ahmedabad, built in 1959, is one of the first building done by him and clealy personifies his style. Among his milestone works that include the Shreyas School at Ahmedabad (1957), the CEPT Campus (1967 until almost 2012), the Sangath office at Ahmedabad (1979-81) and the Amdavad-ni-Gufa (1992-95), the Indian Institute of Management, Bangalore (1977-85) is what is most close to his heart. “Buildings are critical instruments to celebrating life. For me celebrating habitat means that we must start with ourselves, our own homes, our workplaces, our streets, and make them afresh.” opinions Doshi. Disapproving of the educational system today for the changing dynamics of life & individual perception on what we value, he examplifies, “Look at European towns, even today every balcony has plants and trees; even hostile environments are touched by nature.”

Demystifying the science of design Doshi says, “Anything that enhances the quality of life, which amplifies our senses needs

to be valued. People should be made aware of it. So when you bring architecture into the gallery it becomes a way of reestablishing your connection with buildings. What you might miss on the street becomes special when placed in a gallery . The exhibition is not about me or my work, but it is basically connected to my vision of what a home or a village or a city can be.”

Remebering his past growing years Doshi tells, “I get up every morning in the skin of a donkey", attributed to Corbusier, is one of the four maxims Doshi has lived by. He considers Le Corbusier, as his guru and has worked with him on the Chandigarh Project for four years.

Strongly disagrreing with the cities of Modern day, Doshi advocates, “Our cities are becoming working places, not living places. Archirecture in Cities like gurgaon is pure imitation pure mechanical, pure commercial; it's quickly produced and sold to people who are dumb, deaf and almost dead. When a man goes to a place he must first feel relaxed, he must feel joy , feel happy and tranquil. He must say, my God I don't want to leave this place. His life slows down, he begins to discover himself; his sight and hearing and smell becomes acute and he can hear the birds, and the music; even his space changes. On his idea of model city he explains, “Maharajah Sawai Jai Singh wanted to make Jaipur a self-sufficient city. He gave houses to artisans and called them from everywhere and asked them to settle there. Jaipur is a model city for me. Our old buildings created those sensations -the courts, the verandahs, the internal gardens -they held a silence that made you aware that you were somewhere special; they made you special. That's what celebration is!”

“For me, Corbusier was playing a game in Chandigarh. Through his buildings he made everybody aware of the sun, the rain and temperature, and ground and sky. Because of him I discovered that creating an awareness of natural phenomena is the real virtue of good architecture. Buildings aren’t designed for classifications -modern, postmodern, deconstruction -in real life we don't live like that. Everything we do actually is connected to our understanding of life.

As the founder Dean of Centre for Environmental Planning and Technology (CEPT) in Ahmedabad he influenced generations of architects in the country: whether as an institution builder, teacher or academician. His own practice, the Vastu-Shilpa Foundation for Studies and Research in Environmental Design pioneered work in affordable housing and city planning. Doshi was eventually awarded the Padma Shri in 1976 in recognition for his services to architecture.

The work at the exhibition was a silent play of light & volume, subtly touching the onlooker with the dash of elements that constitute a building, about painting and sculpture; but only indirectly.

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prosperity seeker

COLLABORATE, INNOVATE AND CELEBRATE I am writing this through my personal attendance at one of the recent conferences where Shoppers Stop founder BS Nagesh spoke about three key very important aspects in his presentation: one, define your purpose of doing business and aligning it with your personal goals; two, collaborate, even if it means doing it with your competitors, to gain advantage; and third, create an environment where one as an individual and his team, can innovate. (Jasmeet Dhamija)

or any organisation or an entity, the key element has to be purpose. Most of the time, we go about setting goals and objectives, but don’t set a purpose. “How many of us sitting here have clearly identified the purpose of your organisation,” asked Nagesh. “Is your organisations purpose just working or making money, creating brand, I don’t know what it is, but how many of you have this purpose defined?”

his purpose was, and he said, if my dad retires and my brother goes away, I don’t know how I am going to manage the business.

Next he asked, how many have personal mission or a purpose defined for yourself? “Unfortunately, the alignment of the two purposes does not meet.”

The other aspect of business he emphasises on was the goal of a business and how we confuse the purpose of our business goals. He gave another example. “Once I was with a football team in Pune, and talking to the captain, I asked him what would he want to do? He said, ‘I want to hit one goal.’ I asked him, what if your competitor hit two goals. He changed his answer, and told me that he wants to win the match. I told what if your competitor wants to win the tournament? He thought and then realised that he should become the best football team in Pune. His purpose started expanding.”

He gave an example, where he was once with a chairman of a family-owned company, who was around 50 years old, what was his purpose in business and life? The gentleman said, I am somehow looking to ensure that my family business is transferred to my children. He then went on to ask the same question to his son, who said, he was looking at a technology business because he is not interested in his father’s business. Nagesh narrated that he went on to ask the other son, what

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“Here the business and personal purposes are not at all aligned. If your purpose of your business is not aligned with your own purpose, how can the organisation be driven,” he said.

Nagesh added, “We also need to keep reviewing our purpose,

looking at it again and again, especially in this drastically changing world.” Collaborate – Collaboration is about mindset. Collaboration does not say don’t align with your competitors. Collaborating with your competition can also derive you advantage. Snapdeal, Fab India and similar businesses is all about collaboration with innovation,” said Nagesh. Innovation, is a simple word but is very difficult to do. Innovation can happen only when there is an environment to excel. Nagesh said, “We talk about Indians innovating in Silicon Valley. The same Indian cannot do the same kind of innovation here in India. Why?” The answer, Nagesh said, lies in creating an environment where the individual and his

people can excel and innovate. Nagesh further added, not allowing individuals/groups to do things because of fear of failure, is yet another factor that derails innovation. “In our personal life, we encourage our toddlers to walk, run, even if they fall. There’s no harm doing the same with the people in your business. Try not to give up, allow people to try as you would in your personal life,” he said. And finally, Nagesh signed off by saying, when you achieve success, celebrate every moment of it, including celebrating it in your office.

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softcorner

Building a better life- the lodha foundation

xtending its vision of 'Building a Better Life', the Lodha Group over 2% of our annual profits are dedicated to community development activities that are undertaken by Lodha Foundation.

The foundation’s Employment Linkage Programme is helping the youth to prepare for interviews and seek suitable employment. The foundation also runs Computer Training Centres that provide vocational training in computer hardware and mobile repairing. Under its Vocational Training Programmes for women, it provides training to them in making soft toys and imitation jewellery, mehndi & beautician courses.

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With the aim to improve health of the community, the foundation runs Mobile Health Clinics in various localities providing medical check-up, investigations and medicines. Special health camps are organized for children and women. A medical assistant initiative called 'Jeevan Asha Yojana’ arranges for financial and medical help for under privileged patients. Cleanliness drives are carried out from time to time to arrest the spread of diseases like Dengue and Malaria. Through its various initiatives the foundation is directly impacting upon the lives of thousands of individuals to have a better quality of life.