PROPERTY OBSERVER MARCH, 2012 by Harsh Vardhan

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Contents 6 AMR Infrastructure to Invest ...

11 Godrej Properties’ Real Estate ...

15 Paharpur Business Centre Conferred...

30 Choose a Different Space...

15 16 Hello Pranab -Da! Don’t Forget... 34 GST Consensus still Eludes ..

26 Vastu Live Examples ... 36 Will Cities Cope with the...

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43 46 Paramaunt Group 80 Magicbrics.com

84 Uncorking the Real Estate... 56 A Fistful of Rice Without going into the merit and ...

70 70 Hike in Property Price in...

90 Omaxeâ&#x20AC;&#x2122;s The Forest Spa, Surajkund, Delhi, NCR

74 Acron Developers Launch...

95 When Everyone Talks About..

80 High Potential Meets ...

38 74

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Publisher & Director: Sachin Mittal

Property Observer

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FROM THE PUBLISHER’S DESK

Budget should Boost Realty Sector

e are living in an interesting era. To me it appears that Global volatility has become ‘the new norm’. The Euro crisis coupled with US economic slowdown has impacted the global economy. And, then a combination of economic and political forces has led to global inflation with the crude and commodity prices touching a new peak. When there is a slowdown all around, the Indian economy cannot be left untouched. India’s economic growth during the last quarter i.e. December has touched a 6.1 %. So what do we expect from the forthcoming Budget? For the Union Finance Minister, Pranab Mukherjee, a tough task lies ahead. For him while presenting the Budget this year, it won’t be merely a balancing act with minor policy changes here and there. We need a policy thrust backed with action for providing a stimulus to the key sectors including Education, Healthcare, Real estate, Infrastructure as well as Aviation. For overall growth of our economy, we need bold and non- populist policymaking by the government. It is high time that the Government gives an industry status to the real estate sector. The real estate is the biggest contributor to the country’s GDP, after agriculture today. Only a few leading realty companies are listed on the stock exchange. For mitigating the problems of the realtors, the current FDI policy needs a re-look. It should be made more Foreign Investor friendly. It’s high time to address the rising cost of external commercial borrowings (ECB) by way of giving exceptions to the interest income. Also, the lim-

ited Liability Partnerships (LLPs) could also become a business vehicle for the real estate sector. The route if opened for Foreign Investor should lead to overcome the liquidity crunch in the sector. Also, the service tax issue for the realtors needs to be rationalised as it is having a retrogressive impact on the real estate sector. Clarifying tax issues on Joint-Development Agreements are also necessary. The draft Real Estate Bill for bringing accountability to the sector should be legislated and brought to a logical conclusion. A positive step would be rationalising the stamp duty across various states through a uniform stamp duty policy. A favorable resolution on FDI in Retail and Aviation should address the issue of the low level of organized retailing and the current liquidity crunch. The housing sector is a major driver for economic growth as it generates countless jobs across various verticals and allied sectors. So, enhancing spends on this sector is a most desirable step. According to estimates there is a shortfall of 26 million houses in the country. The real estate industry in its pre-budget recommendations has asked the government for promotion of rental housing as everyone cannot buy a house. Royal Institute of Chartered Surveyors (RICS) had also suggested lowering of the tax rate on rental income from 30 per cent to 20 per cent, along with taxing only 50 per cent of the rental income as compared to the current 70 per cent. The Budget could be a good great opportunity for the government to restart the country’s growth engine. The sentiment could be improved by appropriate policy making and consistent action such as lower home loan interest rates. The realtors should also be provided loans for completing their projects at reasonable rates by the banks. We do need a good budget which is Productive that propels growth with equity. Real estate sector certainly deserves its rightful share and the time has come. Infrastructure and construction activity aimed at boosting the economic growth of real sector holds the key.

Sachin Mittal Publisher and Director @Sachin Mittal

@Mittal_Sach

@Sachin Mittal

sachinmittal@propertyobserver.in

March 2012 | PROPERTY OBSERVER | 5

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NEWS ROUNDUP

AMR Infrastructure to invest `1,200 crore in Greater Noida

Slowdown in commercial property market : Survey

fter a sharp growth for about two years, the commercial property market in the country witnessed a slowdown in the last quarter of 2011, as sentiments were hit by tight liquidity and uncertain demand conditions. According to a survey, market sentiment seems negative -- it points more towards a slowdown in the commercial property segment, rather than anything more material, especially as the market is now levelling off after having risen substantially over the past two years. In its Q4 2011 Commercial Property Survey, prepared by RICS, it said that expectations for both investment and demand have been downgraded. The report further said that the investor demand fell for the third consecutive quarter during the October-December period of 2011. In addition, expectations for future transaction activity also declined and the fall in investor appetite has also led to capital value expectations remaining negative. RICS said that the sentiment in the occupier market has also turned a little more negative, after significant rise in rents through 2010 and the first half of 2011. However, falling tenant demand and rising supply of space leads to a further deterioration in the rental outlook. "During 2011, we witnessed a continuing slowdown in supply of prime office space coupled with a decline in office space take up. This sentiment was indicative of the larger scenario of uncertainty within the corporate sector both in India and in the global market which impacted demand,” said Anshuman Magazine, Chairman at RICS South Asia Board. l

ealty firm AMR Infrastructure is developing an integrated township at Greater Noida with an investment of `1,200 crore. "The 25-acre project includes IT office space, residential units and a shopping mall. The shopping area will be a kind of adventure sports mall, where over 45 kinds of activities will be offered," said Kapil Aggarwal, MD, AMR Infrastructure. When asked about the investment, Aggarwal said, "The total cost of the project is `1,200 crore. We have already put in ` 600 crore". He further added, “The Company would fund these investments through internal accruals and sales to customers.” AMR, which is part of Delhi-based R C Jewellers, would develop 10 lakh sq. ft. of IT space, while the adventure mall will be constructed in an area of 10.5 lakh sq. ft. "We will also offer 800 fully-furnished service apartments inside the project. We have planned to sell the flats at a rate of ` 4,000 per sq. ft.," said Aggarwal. Elaborating on the project, he said that the adventure mall would offer various facilities such as helicopter joyrides, hot-air ballooning, remote-controlled airplanes, and remote-controlled Formula 1 cars and reverse bungee jumping. l

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NEWS ROUNDUP

`1.11 lakh per sq. ft: The highest deal for a flat

n the highest deal in the country for a residential apartment, a flat in Cuffe Parade's Jolly Maker 1, India's richest housing society and a four-decade-old symbol of Mumbai's affluence, was sold at the rate of Rs 1.11 lakh per sq. ft. A 21st floor flat with a carpet area of 2,590 sq. ft. fetched `29 crore on January 27. The highest price till now was `1.02 lakh psf for a 3,600 sq. ft. of 19th floor duplex flat in Worli's Samudra Mahal which was sold for ` 37.25 crore in 2010. The four-bedroom apartment, with a closed garage with two car parks, was sold by the Jagwani family (which runs a jewellery business) to Ashok Patni, one of three brothers who own Patni Computers. The flat is registered in the name of Sadhana Patni, wife of Ashok. Incidentally, all the three Patni brothers; Narendra, Ashok and Gajendra already own apartments in this sea-facing tower. The deal has caused excitement in the otherwise lukewarm realty market but property expert’s voice caution as it is a one-off transaction. "Auctions of such exclusive properties do not conform to market norms," said the head of a leading property consultancy firm. Earlier than that, the last big property deal in the city happened two

Ramky Estates plans `1,700-crore investment

and a half years ago when a 3,475 sq. ft. (super built-up) flat in NCPA apartments at Nariman Point was bought by a London-based NRI for ` 97,842 per sq. ft. l

Joint measures to check iron ore smuggling

M amky Estates and Farms Ltd plans to invest `1,700 crore in the markets of Hyderabad, Chennai and Bangalore in the next 3 to 4 years. The announcement was made by Ramky Estates’ executive director M. Nanda Kishore after the launch of a residential project. Besides these cities, the realty firm will expand its construction activities in other parts of the country, including Mumbai and Kolkata. l

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ineral-rich Odisha and Jharkhand have decided to take joint measures to prevent cross-border transport of iron ore mined illegally. Senior officials of both states recently met at Jamshedpur in Jharkhand and discussed the need to launch a joint offensive, said Manoj Ahuja, secretary of Odisha's steel and mines department. He further added, “The states decided to set up three or four joint checkposts along their border and increase surveillance”. Emphasis was given on the need to share mining-related information between the two states on a regular basis. "We will meet every six months. The next meeting will be held in Odisha," said Ahuja. Odisha is India's top iron ore producing state. It started a crackdown on illegal mining in July 2009 following allegations of operations without licences. It has taken several measures over the past years to check transportation of iron ore mined illegally. Chief Minister Naveen Patnaik has sought a ban on iron ore export from the country to ensure that domestic steelmakers have enough of the raw material. l

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Giving top priority to dedicated freight corridor project

Deutsche Bank exits Lodha Developers

eutsche Bank has exited the country's biggest foreign direct investment (FDI) in the real estate sector - a ` 1,640-crore investment it made in Mumbai's Lodha Developers in 2007 - making a return of 55%, or `900 crore, in the bargain. "We have paid Deutsche Bank a total of `2,542 crore. This is one of the largest and the most profitable exits in Indian real estate," said Abhisheck Lodha, MD of Lodha Developers. The bank had made the investment in a Lodha subsidiary, Cowtown Land Development, which executes projects in Mumbai. The builder raised ` 825 crore last week through a non-convertible debenture issue and used internal accruals of `1,720 crore to finance the exit. It had generated revenues of around `6,000 crore last year and had a free cash flow of around `1,500 crore from sales and deliveries. He further added, "We had earmarked `800 crore at the end of 2010 for repaying Deutsche Bank.” In 2007, Deutsche Bank had subscribed to fully convertible debentures issued by Cowtown and had invested `1,640 crore, the single biggest FDI in the real estate sector. These debentures carried an interest and if Cowtown were to default in its interest payments, Deutsche had the option to convert the FCD to get a 99% stake in Cowtown and its subsidiaries. This issue had held up Lodha's plans to go public two years ago. Abhisheck Lodha said that there was no immediate plan for an IPO as the company is sitting on huge reserves. l

rime Minister Manmohan Singh has asked central government ministries and departments and state governments to give top priority to `1 lakh crore dedicated freight corridor project that will substantially reduce infrastructure bottlenecks. The project will connect a land mass of over 3,300 km in the country and could prove to be a backbone of India's economic transport facility, according to a statement from the Prime Minister's Oﬃce (PMO). "In a meeting held in the PMO, the chief secretaries and representatives of the states assured the full cooperation of their state governments in taking forward this important project," the statement said. It was decided that monitoring committees will be set up by the states to resolve issues relating to the freight corridor project, especially land acquisition, in an expeditious manner. The representatives of the nodal authority, the Dedicated Freight Corridor Cooperation India Ltd (DFCCIL), will be overseeing progress of work with the targeted project completion date being March 2017. According to DFCCIL, 67 percent of the land acquisition has been completed through the Railway Amendment Act 2008. As of now, the project is, by and large, on target. "The PMO will be closely monitoring progress of the project so that necessary action is taken in a timebound manner," the statement said. The western corridor from Dadri in Uttar Pradesh to the Jawaharlal Nehru Port Trust near Mumbai will be 1,499 km long. It will connect Haryana, Rajasthan, Gujarat and Maharashtra, with an exclusive high speed railway track. l

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NEWS ROUNDUP

Delhi government distributes 2,200 low cost flats ahead of civic polls

ith an eye on the MCD polls, Delhi Government has finally started allotment of around 2,200 low cost flats to industrial workers in the city. In the first batch, a total of 115 industrial workers were given allotment letters of flats built at Narela area of North West Delhi, at a function attended by Chief Minister Sheila Dikshit. Each beneficiary will have to pay around `1.6 lakh to the government as cost of flat having 16.1 metre of carpet area. The government has made arrangements with a number of banks to provide loan to facilitate loans to the beneficiaries. Infrastructure development agency DSIIDC, which built the 2,229 flats on 'no loss no profit' basis, selected the beneficiaries by holding a draw of lots. A total of 11,000 applicants had applied for the flats. The flats have been built under Rajiv Gandhi Housing scheme for industrial workers. The remaining 2,114 flats will be allotted within next six months. Officials said that the Government would make available hospitals, schools, shopping complexes and bus services to the occupants of the flats in Narela so that the industrial workers and their families do not face any inconvenience. Dikshit, who personally distributed allotment letter to 22 beneficiaries, described allotment of the flats as beginning of a major task ahead. "It

was our dream to give you a roof and today we have made a signiﬁcant step forward in realising the dream. This is just the beginning. There is a major challenge ahead of us and we will do our best to take on the challenge," said Dikshit. l

Belated steps to reclaim land in unauthorised colonies

elhi Government has directed DDA and other government agencies to reclaim their land in the 43 unauthorised colonies whose provisional regularisation certificates were cancelled following a high-level probe. "All land owning agencies have been told to take possession of the land in 43 unauthorised colonies whose PRCs (provisional regularisation certificates) have been cancelled," a top official said. He said chief secretary P. K. Tripathi will also write to the agencies to reclaim their land in these unauthorised colonies. An inquiry headed by divisional commissioner Vijay Dev has found serious wrongdoings in the process of issuance of PRCs to a number of unauthorised colonies in 2008 and based on the report; government last month cancelled PRCs of 43 unauthorised colonies. The inquiry committee had recommended criminal proceedings against those involved in the irregularities and said certain non-existent colonies were also issued PRCs. Tripathi, responding to a a query, said action will follow against officials found guilty. But at the same time he added that the entire issue will be examined very carefully before initiating any action against anybody. l

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Asiad Village apartment sold for `5 crore

Godrej Properties’ real estate venture in Chennai

n one of the recent transactions in Delhi, a 176 sq.m duplex apartment was sold for `5.05 crore. The secondary sale transaction took place in the Asiad Village, a posh residential area in South Delhi, near Siri Fort Sports Complex and Auditorium. This is a 3 BHK duplex apartment with one courtyard and one garage. Asiad Village was built for Asian Games in the year 1982 and made available for sale to general public in the year 1986 by DDA. Also, an apartment in Santacruz, measuring up to 1,300 sq. ft. was sold for a total value of `3.45 crore. A resale property commanded a average capital value of `26,000 per sq. ft. in accordance to the estimated capital value for comparable properties that range between `24,000 `32,000 per sq. ft. and is subjected to the age and actual location of the property. l

odrej Properties (GPL), the real estate arm of Godrej Group, has launched its ﬁrst venture in Chennai, the ` 450 crore 'Godrej Palm Grove'. Pirojsha Godrej, ED, GPL, said that 1,556 modern apartments would come up over 12.5 acres along NH-4 Bengaluru Highway, ranging from 1,188 sq. ft. to 1,489 sq. ft. “Armed with a pre-certiﬁed Gold rating by the Indian Green Building Council, each apartment will cost "roughly" between ` 50-60 lakh,” said Godrej. "Chennai is one of the most important real estate markets in the country and had been doing well for the past years even when the market had not been so good in other cities," he added further. He said that the project, a joint venture with Addison and Co, would be completed in three to four years. Indicating at delays in approval process for such ventures all over the country, he said that the governments should understand that such delays could result in escalation of property prices. l

HDIL makes `800 crore land sale to clear debt

ealty developer, Housing Development and Infrastructure Ltd (HDIL), is learnt to have sold 10 million sq. ft. of land for approximately `800 crore in Virar to repay a debt of `3,300 crore. It owns about 70 million sq. ft. at Virar. Approximately, 5 million sq. ft. was snapped up by three developers for about `450 crore. Ashok Mohanani-led Ekta Housing Pvt Ltd purchased 2 million sq. ft. (built-up area 18 lakh sq. ft.) for approximately `200 crore, Vinay Unique bought 1.5 million sq. ft. for nearly `150 crore while Bhoomi acquired a million sq. ft. for approximately `100 crore. The rest has been picked up by three to four other developers for `350 crore. The developer is close to selling a two-acre land parcel at Andheri for an estimated `300 crore, sources said. This plot of land is part of a large parcel on which HDIL is constructing a residential

project, Metropolis. Apart from a sale of 10 million sq. ft., HDIL is also planning the sale of another plot in Andheri with development rights is part of the deal. The plot has a saleable area of 650,000 sq. ft. It was also planning to construct around one million sq ft of commercial space as part of the project, the sources said. Real estate analysts say HDIL is facing a double whammy of delay in approvals and weak demand in the Mumbai property market, where it has maximum exposure, more so in the redevelopment space. l

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NEWS ROUNDUP

Now, the IT mar on DLF

he Income Tax department has slapped additional tax notices of `1,137.23 crore on the company and its subsidiaries for the 2009-10 assessment years, according to DLF. However, the company said it has challenged these orders before the appellate authorities. "The company and its certain subsidiaries received assessment orders for assessment year 2009-10 and for some reopened cases of earlier assessment years from the Income Tax Authorities, creating an additional demand of `1,137.23 crore," the company said in a statement. Out of this amount, `1,031.90 crore is due to disallowance of SEZ profit under section 80IAB of Income Tax Act, it added. The company and its subsidiaries are confident that additional tax so demanded will not be sustained on completion of the appellate proceedings. DLF said that the additional tax notices are on the similar lines as done in assessment year 2008-09 that had amounted to `1,643.42 crore. l

The Gulf region lines up USD 1trillion worth of projects

ew projects worth more than USD 1 trillion are expected to be completed in the Gulf region by 2020. Edmund O'Sullivan, chairman of the judging panel of the Meed Quality Awards for Projects 2012, said the projects will be evaluated not just in terms of size and aesthetics. "This is not about being the biggest or tallest. We review the projects on the basis of economic, social and environmental impact as well as innovations and achievements in design, engineering and construction. These are benchmarks that will have an impact of the long-term success of not just the projects industry, but the GCC as a whole," Oâ&#x20AC;&#x2122;Sullivan said. The Meed Quality Awards for Projects is an independent award recognition programme established in the Gulf region in 2011 to recognise project excellence across several categories. l

Hospitality industry facing several hurdles, CII-PwC survey said

recent survey came out with the findings that high real estate costs, lack of any tax incentive and bureaucratic hurdles were huge problems for the growth of the hospitality industry. "The high costs of real estate and lack of any tax incentives by the government are acting as hurdles for the hospitality sector. These challenges are further accentuated by overall infrastructure deficit in the country," said a Confederation of Indian Industry (CII)Pricewaterhouse Coopers (PwC) survey. The survey covered the top of the mind issues that chief executive officers (CEOs) of various companies face in the hospitality business -- from managing costs to developing synergies across multi-format, multi-location functions in the business. At present, a hotel needs almost 80-100 licences before it starts its operations in India. l

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NEWS ROUNDUP

Punjab's realty sector likely to miss revenue target for FY'12

t will be difficult for fund-starved Punjab to achieve the target of `2,900 crore from property transactions for 2011-12 as Election Commission's tough measures for curbing misuse of money in elections led to a big drop in property buying and selling. Although the state government officials maintained that they were hopeful of meeting the revenue target, they attributed the significant drop in property buying and selling to the Election Commission's tough measures for curbing misuse of money in elections last month. "There has been a significant impact on business transactions in the real estate market in Punjab because of heavy seizure of unaccounted cash on the directions of EC last month," said, spokesman of Punjab Revenue Department. Till December, 2011, the collection from stamp duty and registration fee stood at `2,349 crore. Property experts pointed out that in the wake of sluggish market conditions, it would be tough for Punjab to collect `550 crore in three months (January till March) to meet revenue collection target. During the last fiscal, Punjab failed to meet the revenue collection of `2,300 crore from stamp duty and registration fee with actual collections reaching about `2,200 crore.

Conﬁscation of huge amount of unaccounted cash by surveillance teams to curb misuse of money power in Punjab elections had almost paralysed the real estate market, with buyers refraining from entering into any business deals. "Seizure of cash ahead of elections in Punjab hit the property market hard because people were scared of making any investment. There was hardly any property transaction taking place in the month of January," said, Anil Singh, Chairman of Punjab Property and Colonizers Association. l

Bharti Realty to buy DLF’s Noida plot

ndia's biggest real estate ﬁrm DLF is close to selling two 25acre plots of land in Noida to Bharti Realty, the realty arm of Bharti Enterprises, for `250 crore. The two plots of land in sector-144 of Noida have permissions to build IT parks under the IT park scheme of Noida and the buyer can build

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close to 2.5-3 million sq. ft. of office space on each of the two plots. Bharti Realty, who has been keen on expanding its footprint in Noida, has been in talks with a number of other landowners in sector 144 and 145 of Noida for potential buys and joint development agreements. These deals, however, have fallen through over the last few quarters. The company had earlier bought a commercial plot of land from DLF in 2010-11 in Gurgaon's sector 65 on which it has just started developing an office building. According to one of the persons, Bharti Realty is currently negotiating with Bharti-Walmart to bring them in as an anchor tenant. This is expected to be BhartiWalmart's headquarters in the future. "They are looking at expanding their real estate business as the group's in-house requirements for space are growing," he said. For DLF, this sale is part of their on-going divestment of non-core assets. To reduce mounting debt, DLF has decided to sell its noncore assets, which include land, SEZs and some office buildings. The company's net debt stands at `22,758 crore at the end of December 31, 2011, down marginally by `169 crore in the OctoberDecember quarter. l

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SPECIAL STORY

The government cannot build houses and give them to needy in the name of social welfare, but can incentivize Low Income Group (LIG) households and aﬀordable housing developers through various tax exemptions. Vinit Kumar Koneru with inputs from Property Observer team

ith India's growth slipping below 7 per cent and its target to hit double digit growth rate of 10 per cent in the Twelfth Plan period (2012-17) looks unachievable, the budget of 2012-13 and policy proposals will be very crucial roadmap for rest of the ﬁve year plan. While it is evident from 12th planned outlay that India needs an investment to the tune of USD 1 trillion in the Infrastructure sector, it is still very much unclear whether the crucial sectors like housing, realty, cable networking will fall under infrastructure or not. The government in recent years has stepped up spending to develop country’s infrastructure, but the slow pace of reforms

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and lack of long-term funding options constrain the infrastructure growth. The 12th Five-year Plan focuses on removing some of these roadblocks and creating a framework for private sector participation, but it all depends on the reforms to create a robust framework with transparent policies for project execution and funding and ability of bureaucracy to execute these plans. It is more likely now that the ﬁnance minister Pranab Mukherjee will extend the window of additional tax deduction of `20,000 in longterm infrastructure bonds and may raise the limit, but whether he will include housing in the list of infrastructure is a big question. Experts and realty players are calling to include housing under infrastructure, so that the shortfall of 26 million houses can be met. Presently infrastructure includes power, airports, toll roads, railways, and ports.

Infrastructure Financing In his previous budget speech, Pranab Da announced setting up of Infrastructure Debt

Fund (IDF) in order to accelerate and enhance the flow of long term debt in infrastructure projects for funding the government’s ambitious programme of infrastructure development. To attract off-shore funds into IDFs, Finance Minister had also announced that withholding tax on interest payments on the borrowings by the IDFs would be reduced from 20% to 5%. Income of the IDFs has also been exempt from income tax. Infrastructure projects, given their long pay-back period, require long-term financing in order to be sustainable and cost effective. Until now, banks have been the main source of funding these projects, but given their assetliability mismatch and exposure limits, they are unable to provide long-term funding. IDFs through innovative means of credit enhancement is expected to tap into source of savings like Insurance and Pension Funds which have hitherto played a comparatively limited role in financing infrastructure. The IDFs will also help accelerate the evolution of a secondary

India Inc expects finance minister to bring in more institutions eligible for tax free bonds like that of NHAI in coming budget and further ease FDI investment and reduction in withholding tax and paving a path for a trillion dollar investment in the five year plan. market for bonds which is presently lacking in suﬃcient depth. Thus the IDFs would enable sourcing of funds through alternate sources which would help in bridging the likely debt gap. Government last year allowed few public sector undertakings (PSUs) to ﬂoat `30,000 crore worth tax free bonds to

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SPECIAL STORY

Mr. Neeraj Gulati, MD, Assotech Realty Pvt. Ltd. Responded to the Budget-related queries of Property Observer Q1. Some from your industry still think the coming budget to be a make-orbreak. What do you think is going to be the one big idea as far as Budget 2012 is concerned? l We expect that the government will implement policy measures for FDI in retail in a manner that not only generates employment but also curbs inflation. Also, retail is a capital intensive sector and requires large investments in real estate cost, for setting up outlets but also in developing support infrastructure like logistics, warehouses, cold storages, etc. Q 2. The real estate sector had a little bit of a disappointment last year. Mr. Neeraj Gulati This time around, what are you anticipating in terms of the sector focus as MD, Assotech Realty far as the government is concerned? l A policy to promote SEZs: Setting up of SEZs was beneficial in the past, but it has now negatively impacted the real-estate sector owing to 18.5% MAT. Tax benefit received from setting up SEZ is nullified due to application of MAT. This has led to an increase in tax outflow affecting the earnings severely. If we have an effective policy in place, the builders will not back out from such zones. l The Government should offer proper tax benefit to those who are having offices in properly sanctioned, bona fide commercial buildings. This will result in higher valuation of commercial office spaces, giving it the much needed boost. l Also, there is dire need to have policy reforms in terms of taxation in real-estate. Availability of housing loans needs to be increased, prioritized and properly structured. l Also, FDI in retail, if allowed, would benefit Indian retail greatly from increased spending in back-end logistics infrastructure and growth of organised retail Q3. Infrastructure is likely to be another area of focus. The Finance Minister would like to clarify a little more on tax concessions on infra bonds and the infra debt fund. On infrastructure specifically what do you see the FM saying this time around? l We feel that the limit of investment in infra bonds and the infra debt funds will be and should be considerably increased from the current limit of Rs.20,000 to around Rs. 1,00,000. This will enable more investments, tax benefits to the investors and a saving of up to Rs.30, 000 for the salaried. Q 4. In terms of the reform agenda, what do you think the government is going to prioritize and focus on? l Industry status for the real estate sector has long been spoken of but not implemented. The sector is a great contributor to the Govt. in terms of revenue and employment generation. It would help the sector in being organised and benefit from policies being specifically designed for real estate. l Implementation of the long discussed real estate regulatory bill will help in providing single-window clearance for real estate development projects l It would be of benefit if the government implements policy measures for liberalisition of FDI in real estate. The market environment needs to be rendered more investment-friendly for the much needed FDI in the sector. Q5. Do you anticipate a hike in service tax because that's the big buzz? l The buzz has been rife for a very long time now. In fact, there should be proper policies on service tax being levied on the real-estate sector. Sale and purchase of property should not come under the service tax category but it’s not certain if the Government would have it as a consideration in the upcoming budget. Q 6. There is some talking about that some aspects of the DTC and some aspects of the GST may come through this time around. Your comments? l If DTC and GST are implemented in the real-estate sector, it will impact the tax laws of the country in a positive manner. It will invoke great levels of competitiveness amongst the PSU’s. But this should be complimented by proper application of Constitution Amendments Bill. That will be the driving force for the absorption of various taxes such as service tax, exercise tax et al. l

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Dr. Rajesh Aeren, Vice Chairman, Aeren R Enterprises Looks Optimistic About the Budget Some from your industry still think the coming budget to be a make-or-break. What do you think is going to be the one big idea as far as Budget 2012 is concerned? l expect this budget to unleash active and aggressive steps to stem the decline in the rate of growth of GDP. Q2. The real estate sector had a little bit of a disappointment last year. This time around, what are you anticipating in terms of the sector focus as far as the government is conDr. Rajesh Aeren cerned? VC Aeren R Enterprises l Government should actively roll out an incentive-based IT policy (such as STPI) for Tier 2 and Tier 3 towns. Bring out strong and convincing evidence of intention to implement the proposed real estate regulator in 2012, and provide single-window clearance for real estate development projects. Drastic changes in Govt. policies to attract investment in the housing sector and accelerate supply. Fiscal incentives provided to the sector, in the past, has impacted supply as also demand but there is lot more still need to be done. Q3. Infrastructure is likely to be another area of focus. The Finance Minister would like to clarify a little more on tax concessions on infra bonds and the infra debt fund. On infrastructure specifically what do you see the FM saying this time around? l There is no silver bullet or any single solution to the problem. What is required is a holistic approach comprising of cut-across measures: l Monetarist policies need a serious relook (13 rate hikes by RBI since Oct 2010 have not had the real impact. l Massive investment in infrastructure, energy and agriculture to provide supportive mechanism for growth, increase in productivity and stepping up of competitiveness. Increase infrastructure spending in urban areas with a view to unlock the value of neglectl ed and hidden land assets in suburban and peripheral districts is expected. Q1.

In terms of the reform agenda, what do you think the government is going to prioritize and focus on? l Real estate sector is primarily looking forward to the RBI's intervention to control the inflation which has adversely affected the industry. Real estate should get a industry status as this will enable it to have access to organized funds from banks and financial institutions. The real estate industry also expects the Finance Ministry to relax the norms on FDI and ECB, especially for township projects which will give developers source funds at a much reasonable cost. Q5. Do you anticipate a hike in service tax because that's the big buzz? l Sale and purchase of property should not come under the service tax category but it’s not certain if the Government would have it as a consideration in the upcoming budget. Q6. There is some talking about that some aspects of the DTC and some aspects of the GST may come through this time around. Your comment. l The implementation of the revised DTC will have strong implications on SEZs. The industry requires clarity on the issues that may emerge, and how businesses would be promoted in Special Economic Zones. l Q4.

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SPECIAL STORY

Grant “Industry” Status to the Real Estate Sector

n the last 2 decades as one of the fastest growing economies in the world, India has had tremendous infrastructure requirements and has had to develop these at a fast pace, and this has been one of the reasons for the tremendous growth and frantic development of “Real Estate” sector in the country. Over the last 2 decades, Real Estate & Construction industry occupies close to 10% of the nations GDP and also forms the bulwark for its progress. Given these reasons its quite obvious that there has been a constant demand for the grant of “Industry” status to the Real Estate Sector. l Inflation Concern: As there seems to be no respite in sight with regards to the present level of Inflation and the efficacy of govt’s approach of hiking of interest rates as a measure to control inflation is being questioned, considering that the supply side constraints are the major contributor to Inflation. Also there needs to be some rationalisation with regards to Steele & Cement prices.

n interest subsidy of 7% for affordable housing tenements with a loan up to `5 lakhs would go a long way in supporting the cause. Urban development, in the current context, has a significant role to play in generating new jobs and providing Mr. Manoj Goyal shelter to all. It is, CMD, KDP Buildwell Pvt, Ltd therefore, necessary that the Real Estate Industry is given the status of Infrastructure industry, taking a cue from the World Bank definition.

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Tax Reforms: Extension of tax holidays on EWS and LIG housing under section 80 IB, upward revision in interest on home loan deduction limit, another major issue is 30 to 36% of sale value are taxes (excise, VAT, service tax, stamp duty etc) & the government needs to address this situation so as to help address the housing problem. The implementation of the revised DTC will have strong implications on SEZs. The industry requires clarity on the issues that may emerge, and how businesses would be promoted in Special Economic Zones. More funds should be allocated to the Rajiv Awas Yojna (RAY) for urban housing targeted at the EWS and the LIG sections; Being primarily a Residential Developer, we would like to see enactment of provisions for Special Residential Zones (SRZs) to incentivise the growth of housing stock at targeted locations. FDI: This sector is starved for organised funds and the paucity of it leads to nefarious practices. Banks have a higher provisioning norm so they do not lend and most of their lending is in construction ﬁnance. Relaxation of norms

attract public investment in long- term infrastructure projects. India Infrastructure Finance Company Limited (IIFCL), after government’s go ahead nod in December 2011, plans to raise an infrastructure debt fund of `5,000 crore (USD 1 billion) from February this year with the participation of private players. India Inc expects ﬁnance minister to bring in more institutions eligible for tax free bonds like that of NHAI in coming budget and further ease FDI investment and reduction in withholding tax and paving a path for a trillion dollar investment in the ﬁve year plan.

Housing and Real Estate concerns… Roti, kapada and makan (Food, clothing and

Mr. Nikhil Jain CEO Ramprastha Group

with regards to FDI can make the sector attractive, transparent and more organised. External commercial borrowing (ECB) should be permitted for funding construction costs of real-estate projects which qualify for 100 per cent FDI under Press Note 2. Going Green: CSR & Going Green are the need of the hour, with so much noise with regards to carbon emissions and concrete jungles, the way forward is being environmentally conscious. The Govt. at present has not introduced any tax beneﬁts or policies for accounting towards the higher costs in green building like higher levels of depreciation and tax breaks and reducing any projects carbon footprint. l

shelter) have been in political agendas for decades, and these concerns are being addressed by various programmes and projects. The government cannot build houses and give them to needy in the name of social welfare, but can incentivize Low Income Group (LIG) households and affordable housing developers through various tax exemptions. Taking cue from World Banks definition of Infrastructure, there has been consistent demand in the realty sector to classify real estate under infrastructure, so that the sector can benefit from incentives given to infrastructure. As the real estate sector has been faciing liquidity crunch coupled with drop in demand in last 12 to 18 months both due to internal

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Union Budget 2012-2013 can be a Turnaround Story for the Sector

r. Ravi Saund, COO, CHD Developers Ltd. feels, “Real estate is the prime mover of the Indian economy and has a major role to play in the India Growth story. It is high time when it gets the required ﬁllip and the much awaited “industry status”. Union Budget 2012-2013 can be a turnaround story for the sector. I am quite optimistic and anticipate that the Union Budget 20122013 will bring in reforms that will energize the entire sector.

ne of the sectors that have been severely impacted by the global economic downturn has been the Indian real estate sector. In the past 12 to 18 months, the sector has experienced liquidity crunch coupled with slowdown in demand. Though in the past month or so, there have been some signs of a revival; there is a clear need for the Government to provide additional stimulus to Mr. Sanjay Rastogi the sector to put Director, Saviour Builders Pvt, Ltd it back on the growth path. The industry also expects more sops and re-introduction of tax holiday for aﬀordable housing projects. With a rapidly growing urban population, the government needs to allocate funds for development of satellite towns.

My wish lists include i.) Create national level “Real Estate Regulatory Authority” for introducing transparency. Ii,) Enact the Model Real Estate (regulations & development) Act. ii.) Introduction of Single Window Clearance System iv.) It is necessary to continue last year’s 1% interest rate subsidy that was provided for loans towards aﬀordable housing. But the scope of this subsidy should be broadened include a wider price range of budget housing to eventually beneﬁt

and external economic environment, the industry experts call for tax holidays to aﬀordable housing projects and allocate funds to develop satellite towns to ease pressure from few cities. National Real Estate Development Council (NAREDCO), which functions under the aegis of Ministry of Housing and Urban Poverty Alleviation, has recommended Ministry of Finance and other concerned authorities to declare housing as infrastructure and bring it under u/s 80IA of IT Act 1961. This will enable developers and Housing Finance Institutions (HFIs) to raise funds at low rate of interest from domestic and foreign markets, which, at the moment, is conﬁned to Indian Banks and Public Equities at a very high rate of interest. This will also incentivize developers by bringing down their income tax liability. There is also demand for increase in deduction limit on account of interest payment on home loan from `1.5 lakh to `3 lakh u/s 24 of IT Act 1961. Since the real estate sector is passing

Mr. Ravi Saund COO, CHD Developers Ltd

the end consumer, especially in the Middle and Lower middle income group. The interest rate subsidy should be increased to loans up to Rs. 50 lakhs and income tax exemption to be increased to Rs. 3lakhs. v.). Lower interest regime by reducing vi.) Standard Operating Procedures for funding in Real Estate l

Housing Sector contributes almost five per cent of the country's GDP. In the next five years, this contribution to the GDP is expected to rise to 6 per cent. Indian real estate sector has seen an unprecedented boom in the last few years. This was ignited and fueled by two main forces. through diﬃcult times due to the increasing raw material cost and dwindling demand for housing units, this demand from the real estate sector assumes great importance. The concern of the Government to provide good quality low cost housing to public at large will be

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SPECIAL STORY

e look forward that the ﬁnance minister will keep the existing exemptions on payment of interest on housing Loan and principal repayment. There is a long pending demand that the limit of `150000 on interest payment be increased to `200000 to make Mr. Gaurav Gupta Director, SG Estates buying homes more attractive for people. Also exemption on income from aﬀordable housing for builders should be reintroduced under section 80 I (b) which was withdrawn 2 years back.

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addressed to a large extent by acceding to their requests made, feel the people in the industry. Real Estate sector has been kept under low priority/no priority category by banks due to which project loans are not considered by most of the banks and where considered the rate of interest is exorbitant. “The entire gamut of problems will be solved if real estate sector is given the status of ‘Industry’ because the real estate ultimately takes the shape of business centers, movie theatres, hotels and group housing which all are either directly or indirectly industrial activities. In fact, in all the forums, the Government is admitting that real estate is the largest employment provider and the products consumed like cement, steel etc., are basic industrial products supporting the economy”, said R. K. Arora, CMD of Supertech limited. According to a report by realty consultant Jones Lang LaSalle, investment in infrastructure

Real Estate sector has been kept under low priority/no priority category by banks due to which project loans are not considered by most of the banks and where considered the rate of interest is exorbitant.

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“Reduce Interest Rates on Housing Loans”

ousing Sector contributes almost five per cent of the country's GDP. In the next five years, this contribution to the GDP is expected to rise to 6 per cent. Indian real estate sector has seen an unprecedented boom in the last few years. This was ignited and fueled by two main forces. First, the expanding industrial sector has created a surge in demand for office-buildings and dwellings. Second, the liberalization policies of Government have decreased the need for permissions and licenses before taking up mega construction projects. In view of above, governmental action is required in adequate measures to let the sector grow and also generate sufficient reserves to continue investment in the sector. I would like the budget to incorporate following considerations of housing sector: 1. Granting industry status to the sector. 2. Government should create an 'affordable housing fund' which shall assist projects that are delivering majority of houses of size 1000 sq ft and smaller. Further, affordable housing policy should be formulated to provide better quality of housing at reduced costs. Tax rebates, excise duty reduction, stamp duty waivers and expansion of the interest subsidy on loans from 10 lakhs to `25 lakhs, should be the necessary tools for such policy action. 3. One of the sectors that have been severely impacted by the global economic downturn has been the Indian real estate sector. In the past 12 to 18

months, the sector has experienced liquidity crunch coupled with slowdown in demand. Though in the past month or so, there have been some signs of a revival; there is a clear need for the Government to provide additional stimulus to the sector to put it back on the growth path. 4. There is need for simplification and rationalization of the overall indirect tax structure which is currently plagued by multiplicity and classification issues. The current income tax benefits on deduction of interest on housing loans are considered inadequate. Any steps to reduce interest rates on housing loans are welcome in the current market conditions. The centre should issue guidelines to bring uniformity in these rates across states. The rate of stamp duty should also be brought down. Goods and Services Tax (GST) should be introduced and the Real Estate sector should be included under the ambit of this single tax regime. This will simplify transaction costs (which currently include stamp duty) and give developers a setoff or credit on the taxes paid on construction material and services. 5. The industry also expects more sops and re-introduction of tax holiday for affordable housing projects. With a rapidly growing urban population, the government needs to allocate funds for development of satellite towns. 6. In addition to this, as the environment becomes more fragile with every new development, the logical way forward is to think green. The government

Mr. Om Chaudhry Founder and CEO FIRE Capital and Chairman, Astrum Homes

should benchmark apex bodies and provide a structured approach through higher levels of depreciation and tax breaks for certiﬁed green building. 7. Introduction of REITs should be expedited. To address the housing shortage and provide quality housing facilities, rental housing as a concept is an eﬀective tool. Such concept cannot survive unless there are REITs who can provide an exit. 8. Faster implementation of plans under Rural Infrastructure Development Fund projects would logically improve the real estate potential of smaller towns. 9. Increasing the limit of tax exemption for home loan repayments will encourage more people to buy properties; it will open up the demand which actually exists.l

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SPECIAL STORY

“Setting up of a Real Estate Regulator to Ensure Fairplay and Transparency “

“W

hile the government is trying to provide the requisite stability to the economy, it now needs to focus on strengthening the real estate sector. This is important in view of the fact that construction sector is the second largest employer next only to agriculture, and growth in the sector has a direct impact on ancillary industries such as steel and cement, creating a ripple eﬀect in the market and help in giving a push to the economy. Having said that, we strongly feel the need for setting up of a real estate regulator to ensure fair play and transparency in the industry and protection of consumer interests. The main idea behind having a regulator is to create a level-playing ﬁeld. Also, with so much being talked about carbon emissions and concrete jungles, the way forward for the real estate industry is being environmentally conscious. Currently the real estate sector contributes to more than 5% of global carbon emissions. In order to address this utmost important issue about carbon emissions

during 2007-12 stood at USD 500 billion which is approximately 2.5 times that of 10th plan and this is expected to be doubled in 12th plan period i.e. USD 1 trillion mark. The report also pointed out that about 97 million jobs are likely to be created over the next 10 years across diﬀerent sectors in the country. And due

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faced by the globe, there is a strong need to encourage the developers to build green and sustainable projects. Our government should provide appropriate subsidies to the builders and help in lowering the carbon emissions. On the other hand the consumers should also be given reduction in stamp duty for opting for green development. We also believe that integrated townships are the way forward for Indian developers as it immensely helps to reduce the pressure on city infrastructure. The appeal of integrated townships lies in the fact that it puts aﬀordability, convenience, and focus on lifestyle in one very attractive package. Also in order to meet the demand and need for facilitating MIG/LIG housing, and thereby the requirement of decongestion of cities, there is a need to extend tax holiday under section 80IB for Integrated Township development project as Infrastructure project (development of township project with over 20 acres of land out of city limits with development of at least 50% of the FSI area as Aﬀordable housing with area less than 950 sq. ft). This section gives tax relief to the builders for construction of integrated townships and thereby contributing to

to this huge increase in jobs, India may need to potentially build an average of 8.7 billion sq. ft. of real estate space every year, adding up to a whopping 95 billion sq. ft. between 2010 and 2020. The study, however, said there is a huge shortfall of skilled manpower in the infrastructure sector that needs to be addressed with

Mr. Brotin Banerjee,

MD and CEO, TATA Housing Development Company Limited

development of infrastructure around the metros and tier 1 cities, thus reducing the demand and supply gap for affordable housing. Some of other initiatives which could benefit the developers as well the end consumers would be lowering & standardization of stamp duty across the country as well as reducing transaction burden. The introduction of unified taxation system across all states will also help to incentivize more consumers for home ownership.” l

urgency. As per estimates, only 27,000 civil engineers are added every year against an annual demand of 4.27 million for the next decade. Similarly, the country is likely to witness a total shortfall of 3.64 million architects and 1.1 million planners during 2010-20. l

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VAASTU

Vaastu

Live Examples By now you all got the very good idea of vaastu principles. How they aﬀect the individuals in his day to day life is not a puzzle any more.

ow is time to discuss live examples of good and bad vaastu which is also the topic of this month. Two examples – one from Delhi and other from Meerut are presented here for the beneﬁt of readers. Ideal locations of various rooms as

per vaastu are displayed categorically in Figure-1. Now Figure – 2 and 3 are given as a live example of good and bad vaastu respectively. Let us examine the disposition of various rooms of Figure 2 (Good) & 3 (Bad) with reference to Figure 1 (Ideal as per vaastu). House shown in Figure-2 is an

apartment in one of the group housing society in IP Extension, Delhi. While house of Figure-3 A & 3 B is an independent house in Meerut which is constructed with ground floor and partially covered on first floor. Table – 1 gives the status of vaastu compliance of 10 points including disposi-

Table: Vaastu Compliance Status of Both Houses of Figure 2 & 3 S/N

Evaluation Item

Entrance Door

House of Figure – 2 

House of Figure – 3A & 3B 

Side Entrance

Main Entrance - Very badly placed

Kitchen

Study



Study – 1

Other Study Rooms Very badly located

Toilet /Latrine



Bath Room / Water Source



Bed Rooms



Only Bed room 1 & 2

Other Bed rooms

More Open Space in East & North



Less Open Space in West & South



First Floor Construction in Not Applicable

South / West so that more open space in North /East

First ﬂoor is constructed in East, North & South.

Cow Shed & Storage for Coal/ Wastes

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Not Applicable

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tion of various rooms, entrance and surroundings of both examples. It is clearly visible from the table that house of Figure2 complied to most of the vaastu dictums while house of Figure-3 does not comply mostly. Since these are the live examples, I can list out the positive and negative effects the people experienced who lived in both the houses. The IP extension flat of Figure-2 was completed in 1990 and since then the flat was rented most of the time. Whoever took this flat on rent shifted to his own house after few years living in this flat on rent. This itself confirms that the inhabitants of the house got growth, prosperity and all happiness while living in the flat. There are 4 such tenants I know personally who lived in this flat. This is the effect & impact of good vaastu and living in harmony with nature.

Now let us evaluate the results of bad vaastu house of Figure - 3A & 3B. The house was constructed some times in 1940s. It was a joint family. There were more than 10 members in three families living in this house. Study-1 is best located. Whoever studied in this room excelled in the exams and career. There was no financial growth to the people living in the house. As soon as anyone left the house, he could then do well and achieved success. Untimely death to the elders of the family was another bad effect. For last few years, this house is totally vacant and locked. No one wants to go back and live in this house. Main entrance, toilets, kitchen, water source and first floor construction are the major points which need corrections in this particular house. The impact of vaastu whether good or bad is certain and slow. Therefore, at the end I would like to summarize with the advice to all the readers that implement

Rakesh Goel vaastu principles in your house and make your life prosperous, happy and healthy. We will discuss more on vaastu next month till then good bye and Happy March 2012. l For any vaastu-related query please contact: E-mail: rkgoel1995@rediﬀmail.com M: 9810175400

Meditation

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VAASTU

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PROPERTY RELATED Zodiac Forecast For March12 The below predictions are based on Moon Sign and planetary positions during March 2012: ARIES

TAURUS March-12 is not a good period for Aries to buy or sell the property. For Taurians, March-12 is not a good month for any type of property dealings i.e. buy or sell. If possible avoid such decisions. Chances for residence changes are very strong.

GEMINI

CANCER Avoid any dealings related to property during March-12. Losses are indicated.

Good time to buy or sell your property. Good deals are expected.

LEO

VIRGO Right time to buy or sell the property. Ensure legal aspects of the property before ďŹ nalizing it. Avoid any property related matters in March. It is not the right time from real estate perspective. However, soft furnishing may be done.

LIBRA

SCORPIO Likely to get good gains by selling your property. March-12 is right time to ďŹ nalize real state dealings even to start a real state project. It is not a good time to buy or sell your house but you may be in a critical situation when such dealings become important. Avoid if possible.

SAGITTARIUS

CAPRICORN You may get good price for your house if planning to sell. Check and ensure all legal documents of the property you plan to purchase. March-12 is not right the period to do any type of property dealings. So, avoid it. There is very strong possibility to shift your residence at a distant place may be in a foreign country due to your work.

AQUARIUS

PISCES You may change your residence due to work. You may sell your property in March if pending for long time. March is not very good month from real estate perspective. If possible, avoid.

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TREND

Choose a Different Space to Work in Each Day Hot–desking has become a hot concept these days among companies. It involves multiple workers using a single physical work station during different time periods. In simple words, office desk is being shared by multiple office workers on different shifts. Kamal Meattle aharpur Business Centre and Software Technology Incubator Park (PBCTM-STIP) practices hot desking on a regular basis. During normal working hours, employees and clients work in Business

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Centre, however, during night, same space/workstations/desks are occupied by a BPO. It is primarily done to reduce cost through space savings. We encourage BPO to work at PBCTMSTIP during night. From a managerial perspective, hot-desking is attractive because it

can cut overhead costs signiﬁcantly. Employees and management recognize that each employee is crucial in running the business, therefore, employees are encouraged to hot–desk. Hot–desking requires clearing of desk when one’s working hours are over and leaving it tidy for the next per-

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son, who uses it later in next shift. This gradually leads to disposal and recycling of unwanted/used papers.

Reasons for hot-desking l Encouraging

team work: It increases the level of interaction among the employees and they work effectively as a team. l Reduction of the cost: Only for the people who have to work in office need work stations, as the people who have field jobs do not need permanent space in the office. l Utilization of the space: The structure of the office space is designed in such a way that the furniture is movable; therefore the room is designed as per the requirement. Paharpur Business Centre & Software Technology Incubator Park (PBCTM - STIP) offers ready-to-move-in serviced Green office solutions with flexible terms ranging from a day, a month or longer. It provides eco-friendly facility, with state-ofthe-art IT infrastructure, located at the

biggest commercial hub at Nehru Place in New Delhi. PBC rents out space to the offices so that they work on “plug and play” basis. The key reason for taking flexible office space is either to reduce fixed costs or to meet the needs of project based work. The flexible office space includes the serviced offices, virtual offices, single-day –stay offices, meeting rooms and video conferencing. Situated at South Delhi’s prominent commercial hub, Nehru Place, PBC is only about 50 meters away from Nehru Place metro station. It is very commuter-friendly. It offers a range of services, 24 x 7, depending on need –, Interview Rooms, Conference Rooms, Training rooms, Web Conference Rooms, hot – desk, Virtual offices and BPO incubator facility. It can accommodate 5 t0 80 conferees. With an outstanding indoor air quality, every minute turns out to be productive. PBC -STIP is ISO 14001:2004 certified for Environmental Management

Kamal Meattle, CEO

System, ISO 9001:2008 for Quality Management System, ISO 22000:2005 for Food Safety Management System, SA 8000:2008 for International Standard for Social Accountability and OSHAS 18001:2007 certiﬁed for Occupational Health & Safety Management System with a commitment to UN Global Compact. l

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RESIDEX

Price Movement of Residential

HB Residex tracks the housing prices in the select 15 cities. The latest Residex is for the quarter October-December 2011. It may be useful to policy makers, banks, housing ﬁnance companies,

builders, developers, investors and individuals. The movement in prices of residential properties has shown increasing trend in nine cities and decline in ﬁve cities during the quarter OctoberDecember, 2011 in comparison to the previous quarter. However, the property prices during quar-

ter i.e. October – December 2011, have not witnessed significant fluctuations/corrections due to moderation in demand, real estate firms/construction agencies holding land banks and slow down of launching of new residential projects and/or progress of the existing projects.

City-Wise Housing Price Index CITIES

2007

Jan-

July-

Jan-

July-

Jan-

Apr-

July-

Oct-

Jan-

Apr-

Jul-

Oct-

Index

June’08

Dec’08

June’09

Dec’09

Mar’10

Jun’10

Sept’10

Dec’10

Mar’11

June’11

Sept’11

Dec’11

Index

Hyderabad

100

Faridabad

100

121

139

145

154

152

170

176

165

220

206

218

Patna

100

103

100

107

119

127

124

148

146

141

140

Ahmedabad

100

106

100

127

128

113

131

141

164

165

169

163

167

Chennai

100

104

120

143

164

183

210

214

218

248

271

296

Jaipur

100

119

115

Lucknow

100

103

102

104

119

112

133

148

152

157

160

154

165

Pune

100

101

103

117

124

135

140

141

148

150

169

184

Surat

100

101

111

123

109

136

128

133

128

149

139

152

Kochi

100

106

101

107

Bhopal

100

139

151

139

162

158

153

166

173

167

224

208

211

Kolkata

100

114

140

162

185

165

176

191

213

211

194

191

190

Mumbai

100

112

117

124

126

134

160

167

173

175

181

194

193

Bengaluru

100

101

100

Delhi

100

124

130

121

113

106

110

115

123

126

147

154

167

Source: National Housing Bank(NHB)

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PERSPECTIVE

GST

Consensus Still Eludes the New Tax Regime

To resolve the problems apprehended by states, it is the duty of the centre to take care of the immediate gradual loss suﬀered by states due to gradual phasing out of CST with a suﬃcient dispute resolution mechanism.

Kamal Nath Thakur

o what if Goods and Services Tax (GST), touted by all and sundry including economists as the single most important tax reform initiative in India since independence, once again falters at the altar of political and economic expediency? So what if, three years of extensive negotiation (GST was slated for 2010) between the Centre and States, couldn't make any clear headway? After all, in India, several reform agenda however growth-propeller these could be are stuck due to the lack of a long-term perspective. It's time to accept that unlike China, we always remain slow to any reform, economy too. Economy awaits reforms. Industry keeps its ﬁngers crossed. There is the suspense over the

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ambitious GST rollout, scheduled for April 1, this year (nay, next year). India’s tryst with GST is all set to delay again. With stiff opposition from state governments, the implementation is expected to be delayed further. The states fear that they would lose fiscal autonomy while the finance ministry recommends splitting GST equally between the states and the Centre. The government has already missed the earlier deadlines. A fresh announcement is expected during finance minister Pranab Mukherjee's upcoming budget session speech. The original proposal was to implement the new tax system by 2010. However, there have been severe delays – mainly due to discussions around potential revenue losses by the States. The current plan is to introduce the new regime in the tax year 2012-13. The economists believe that GST will boost

Pranab Mukherjee

The original proposal was to implement the new tax system by 2010. However, there have been severe delays – mainly due to discussions around potential revenue losses by the States. The current plan is to introduce the new regime in the tax year 2012-13.

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Indian economy, and would remove ambiguity. Once it comes into effect, multiple taxes such as Octroi, CST, SST, stamp duty and entry tax would be abolished. Under GST regime, the taxation will be divided equally between the services and manufacturing. Tax will be levied only at destination point. The new policy would also facilitate corruption-free tax administration that seems to be panacea for all diseases. The Central government mulls 12 per cent for essential products while 20 per cent for other items during the first year. With convergence at 16 per cent during subsequent period the tax will be divided equally. MAIT president Dr Alok Bharadwaj said that GST would be a game changer for the entire Indian industry as a whole. “It will make India a homogenous land for the purpose of taxes and duties and will eradicate fragmented price patterns across the nation due to multiple and different levels of taxes,” Dr. Alok added further. While the prospect of missing the April 2012 deadline to roll out GST looks dim, the status of the bill was not known, while sources said the empowered panel headed by Sushil Modi, the deputy chief minister and finance minister of Bihar, would like to discuss the issue with the states further. Though, few days back, Mukherjee talked about problems of the infrastructure for collecting GST, during a private meeting with institutional investors he admitted that he was facing resistance from states. During a meeting with senior customs and excise department officials, FM said a pilot project would be unveiled next month in 11 states and government is committed to go ahead with launch of required infrastructure for indirect tax reforms. However, a senior finance ministry official said that, "It's difficult but not impossible." This is a complete change of track, as the GST missing the April 2012 deadline appeared to be a foregone conclusion in the ministry before Modi's statement last week. The official said if there was a consensus, the whole process of bringing in a legislative framework for the GST implementation could be completed before April next year. The key issue to imposing the new, simplified

GST is agreeing on a formula to satisfy all States following the withdrawal of local taxes. Current discussions indicate that no resolution is near, and so this years’ April deadline will be missed. The target date for the national introduction of GST has been postponed several times in recent years. Presently, local States levy VAT. the Central tax office raises the following indirect taxes: Central Sales Tax on cross State transactions; Service Tax on the provision of services; and Central VAT on the supply goods. The principle complication is taxation on inter-State transactions. Many jurisdictions do no provide for relief on cross-State business, which can lead to double taxation or inability to achieve a full refund of input VAT. During the transition from, VAT to GST, there will be a sliding scale of tax rates to smooth the change over and ensure States do not lose out. The aim is to move from a combined VAT rate of about 12% to a new combined GST rate of 16% - evenly split between the State and Centre. First of all, the lawmakers at the centre and the states have to agree on the modalities of the GST but they are constantly disagreeing on various matters even though they have taken more than sufficient time for it. See there is a dead lock between the “fiscal autonomy” and “fiscal discipline” and states are using their right to defend the “fiscal autonomy” very sensibly and strongly and have the guts to oppose the centre with strong defensive tactics. The fact is that GST is beneficial to the Indian economy but each and every compromise on basics of GST are degrading it quality wise. But one is be wary the way one very powerful lobby is continuously propagating the benefits of GST since inception of talk on GST and amazingly they are still projecting and propagating about the same “volume” of benefits to the Indian economy and Indian trade and industry. Already lots of compromises have been made with the basic structure of GST and still the lawmakers at centre are ready for further compromises. There is danger that further tweaking with GST may not solve the purpose for which it is made. The lawmakers have already lost the valuable time and at present the odds are not in their

Sushil Modi favour because before going for the GST they have to make an “agreement” between themselves i.e. the centre and the states. The FM has tried his best but there is still a deadlock and now it is open to Indian taxpayer that there is “something serious” for which centre and states have different views and questions are now being raised “what is the hurry” for GST? To resolve the problems apprehended by states, it is the duty of centre to take care of the immediate gradual loss suffered by states due to gradual phasing out of CST with a sufficient dispute resolution mechanism. For that centre should adopt mechanism based on the economical health of the different states. The Centre should be more flexible. In a country like India, where there are so many different states, and economic conditions are very different, you cannot use one stick for each and every state. There are many issues on which the states have a unanimous view, but even they have not been incorporated in the Constitution Amendment Bill. Modi has rightly pointed out to make GST on broad-based coverage. Computerisation of the states taxation cell also needs to be kept on the fast track. Modi, who has been heading the empowered committee since July 2011, said that with the GST roll-out missing the 2012 April deadline, it may only be implemented from 1 April 2013. In an interview on the sideline of the January 9-10 meet in Bhopal, Modi spoke about the way forward for GST, the need for the Centre to address the states’ concerns and evolving a political consensus on tax reforms. l

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OUTLOOK

Will Cities Cope with the Growing Urbanisation

500 million Indians will need new, urban homes by 2025. City capacity will need to grow nearly 400% in less than 50 years. Industry lobby, FICCI’s report on ‘Urban Infrastructure in India’ reveals how this can be achieved.

OUR TAKE Aside the rhetoric about the gnawing gap and growing disparity between Bharat (read rural populace) and India (urban residents), urbanization will add millions in the coming decades, putting Indian cities under tremendous pressure. This means more Indians will live in urban areas than in villages, challenging everyone from planners to common people to bring in the requisite

n just over a decade from now, nearly 500 million Indians will need new, urban homes, close to the needs of China, North America and Western Europe put together. The

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infrastructural development in these areas. As the report by industry lobby – Federation of Indian Chambers of Commerce and Industry (FICCI) -- indicates, however, the rate of urbanization in India renders this division questionable. As the economy shifts from largely agrarian to service-oriented urban, challenges become all the more glaring to answer the simple question: where and how will we live? Except some exclusive pockets, bigger chunk of cities are badly managed. In the last decade, efforts were made to upgrade urban transport infras-

country population is slated to grow to 1.7 billion by 2050 and rapid urbanization will add nearly 900 million people to Indian cities. City capacity will need to grow nearly 400% in less than 50 years. This is the

tructure, from roads to public transport, but it looks minuscule. The top-down approach of our planners and policy-makers mostly targets Metros or tier I cities which have been the destination of rural workforce. Here, too, urban local bodies are gradually losing their role as providers of basic amenities. Local bodies are often not empowered to enact the changes that would benefit cities. There is a need of bottom-up approach and devolution of power to local authorities and make them responsible to the people.

scale of urbanization and urban infrastructure needs India has to contend with in the face of grossly inadequate urban infrastructure to meet demands of the existing urban population. There is insurmountable

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pressure on civic infrastructure systems such as water supply, sewerage and drainage and solid waste management, says a FICCI report on ‘Urban Infrastructure in India’. The report, prepared by FICCI’s Urban Infrastructure Committee, highlights some of the deficiencies in urban infrastructure procurement process, suggests remedies and articulates a blue print of short term measures as well as long term goals. The report states that Urban Local Bodies (ULB) and government procurement in relation to urban infrastructure focuses more on construction of the facility rather than on the long term operation and maintenance of the facility. The Indian planning norms are antique in nature. Given the scarcity and high value of urban land, the accepted international solution is to go vertical. Low density planning norms have manifold implications for creating slums and urban impoverishment. The bulk state ownership of land in urban areas can be utilized to galvanize affordable housing leading to a construction boom. The report notes that Indian ULBs have a weak fiscal and financial base which hampers their ability to provide efficient services to citizens. There is no framework governing or providing for maintenance of common spaces particularly areas such as markets, housing colonies, bridges, footpaths, street lighting, play-grounds, common green and open areas etc. Urban Infrastructure, more than any other sector, faces the drag of multiple authorities having jurisdiction over different aspects of the same infrastructure facility. “We have to rethink the way we live or there is no tomorrow,” said Pradeep Puri, Chairman, FICCI Urban Development Committee & CEO, METCO Project, IL&FS Ltd. “We need lively, diverse and rapid development in urban infrastructure that is holistic in scope and accommodates for

the needs of our future cities. Resource mobilization continues to be a challenge and government funding needs to be rationalized efficiently with fast track approvals for high priority projects with proven developers,” said Sushil Sethi, cochairman, FICCI &Urban Development Committee & MD, SPML Infra Ltd. The report recommends that in respect of all Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) cities and ULBs receiving project assistance from the Central Government, the appointment of Transaction Advisors (TA) should be actively encouraged or made mandatory for the duration of JNNURM / other Central Government assistance. It says Government authorities should be directed to shift the focus of their contracts for new facilities from merely construction works contracts to performance based maintenance contracts under which the scope and obligations of the contractor would be mentioned. Undertake maintenance of the facility for a minimum number of years; and Link disbursement of money evenly over the period of construction / maintenance. According to Dr. Rajiv Kumar, Secretary General, FICCI, “To reap benefits of rapid urbanization, all the tiers of Government need to have proactive approach, sound planning and its efficient implementation.” In 2001, about 286 million persons were living in urban areas of India and it was the second largest urban population in the world. According to the Registrar General & Census Commissioner of India, the urban population in India over the next 25 years (from the year 2001) is expected to grow 38% and become 534 million in 2026. Furthermore, as per the Census of India, 2001, 640 cities/towns in 26 States/Union territories have reported slum populations. Andhra Pradesh has the largest number of towns (77) reporting slums followed by Uttar Pradesh (69), Tamil Nadu (63) and Maharashtra (61). 42.6

million people lived in slums in 2001 which constituted 15 percent of the total urban population of the country and 22.6 percent of the urban population of the states/union territories reporting slums. For the long term, the FICCI report

calls for a review of planning norms, reevaluating and amending the framework regulating urban ﬁnance, augmenting the stock of aﬀordable housing and a shift towards common framework governing the urban sector, restructuring of legal framework governing land use and urban land development. The housing market in India has become increasingly skewed against the poor. Apart from the sporadic success of

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OUTLOOK

some EWS schemes, bulk of the housing market caters to middle income groups. Given the supply side constraints on availability of land and the attendant high/unrealistic land price, housing market is driven by high margins and low volumes. A more equitable and just land acquisition law is need of the hour, report notes and suggests that this can be remedied, more readily, at the state level by the state government developing a clear land asset management strategy applicable to all authorities having jurisdiction in relation to urban development. At the Government of India level, this can be achieved by creating a regulatory framework for regional urban development and by exercising the residual legislative power vested under List I of Schedule VII of the Constitution of India and formulate a national law relating to urban infrastructure development.

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The following are the short and long term recommendations : A. The suggested short term measures do not entail any change in legislation and can be implemented within a short span of time with minimum intervention to existing systems: 1. Creation of a Framework for Capacity Building in ULBs: It is recommended that in respect of all JNNURM cities and ULBs receiving project assistance from the Central Govt., the appointment of Transaction Advisors (TA) should be actively encouraged or made mandatory for the duration of JNNURM / other Central Govt. assistance. Role of a TA should be to: a. Prepare ďŹ nancial road map for the ULB for enabling it to achieve some measure of self sustenance; b. Undertake all project development

work including feasibility, DPRs, etc for upgrading infrastructure projects and other services; and c. To provide the requisite oversight for project implementation. 2. Shift from Construction Contracts to Performance Based Maintenance Contracts: A. It is recommended that government authorities be directed to shift the focus of their contracts for new facilities from merely construction works contracts to performance based maintenance contracts under which the scope and obligations of the contractor would be to: a. Undertake construction of the relevant facility; b. Undertake maintenance of the facility for a minimum number of years; and c. Link disbursement of money evenly

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over the period of construction / maintenance In this regard it is important that Municipalities should have a well deﬁned standard Model Concession Agreement (MCA) for urban infrastructure services on the lines of MCA for roads sector. Provide for Creation of Regional Self Sustaining Infrastructure Funds: The State Governments / Govt. of India should provide for creation of speciﬁc regional, self sustaining, professionally managed infrastructure funds that would receive contributions from the Govt. of India, State Governments and the participating municipalities and leverage the seed amounts through bonds and other instruments for creating a self sustaining fund. Monetization of Land & Land Based Revenues: Most State Municipal laws

The housing market in India has become increasingly skewed against the poor. Apart from the sporadic success of some EWS schemes, bulk of the housing market caters to middle income groups. Given the supply side constraints on availability of land and the attendant high/unrealistic land price, housing market is driven by high margins and low volumes.

already provide an adequate legal basis for imposition of land based revenues such as development charges, cess, betterment levies and other levies linked to benefits that land owners or developers derive from implementation of planning schemes. However, such levies generally go into the fund of relevant authority and are, at times, not used optimally. It is suggested to establish adequate systems under existing laws that could enable creation of funds or use of funds for identified purposes already authorized by existing laws. Development and Implementation of Greater Regional Projects: In order to mitigate the political risks associated with urban infrastructure projects, State Governments can develop regional infrastructure projects that benefit

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OUTLOOK

more than one municipality. Require Land Developers to contribute towards Development of Infrastructure: For some large scale infrastructure investments e.g. development of a suburb or new area of a city/urban region, some jurisdictions require the landowners and land developers to contribute upfront and in stages, towards the development of or extension of existing infrastructure to make the area attractive to new residents and enable a shift from existing

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congested areas. B. Measures that require greater time horizon: 1. Review of Planning Norms: Indian planning norms have been borrowed mainly from the west and need important modifications. Provisions for social infrastructure, open spaces, etc in such norms are too high and are practically not affordable by local planning & implementation authorities due to high land values. Planning norms should be efficient for large cities and small towns due to land price variation and availability of land. Integrated large scale development should be encouraged to internally provide social facilities and open spaces to reduce burden on the civic authorities. There should be a “Mission on Urban Planning”. 2. Re-evaluating and Amending the Framework Regulating Urban Finance: Property tax, fees, additional stamp duty, revenue share from certain taxes as recommended by State Finance Commission, state grants, etc, are the sources of revenue for ULBs. The common underlying link between all these sources is the overwhelming lack of flexibility to a municipal authority to control its finances and implement measures such as increasing borrowing or user charges or taxes, without the consent and approval of the State Government. Also, the funds so collected are deposited in common municipal fund and then is used in accordance with the Municipality’s Annual Budget. This framework needs modification and is in dire need for being updated in order to enable urban authorities to raise resources and take advantage of private capital and private participation. In this regard it is significant to improve capital market access for the ULBs. In the US, capital markets have played an important role in creating and augmenting urban assets. For improving

the capital market access, several systemic and policy issues need to be addressed, including: Creating adequate security structures given the poor credit worthiness of ULBs. For example, security structures based on the cash ﬂows of the ULB is an estoppel for fresh asset creation. In the US a guarantee facility provided by insurance companies has been used successfully. Restrictive RBI covenants that restrict capital market exposure by Banks/Financial Institutions Augmenting the Stock of Aﬀordable Housing: The housing market in India has become increasingly skewed against the poor. Apart from the sporadic success of some EWS schemes, bulk of the housing market caters to middle income groups. Given the supply side constraints on availability of land and the attendant high/unrealistic land price, housing market is driven by high margins and low volumes. A more equitable and just land acquisition law is need of the hour. This would make the declaration and enforcement of change in land use mandatory prior to a State mandated acquisition process. Also, large tracts of land with low density need to be replaced by high quality housing with FSI of 5 or 7 with state controlled / occupied land providing a trigger. A Planning / Legal Framework for Common Areas: There are a variety of examples pursued by ULBs internationally for maintenance of common spaces. The problem is acute in the Indian context whereby building permissions have historically been provided on a plot by plot basis with a result that the common spaces are “orphaned”. In respect of the existing markets etc there is a need to evolve either legisla-

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tion or byelaws which would make it mandatory for every market place etc. to create an association which would need to do an O&M of the surrounding space including beautification. The cost could be recovered from a variety of sources e.g. parking fees levied in the area to be appropriated by the Market Association, contribution by the association etc., advertising rights, sponsorship etc. Beautification of the market areas should also be eligible for grants from the Tourism Ministry and the Tourism Departments of the State Governments. Existence of the following is important for a city: a. Land Fill Sites Redevelopment – Redevelopment of land fill sites by creating landscaped parks and green areas with basic amenities b. Parks & Playgrounds – Up-gradation and maintenance of parks and playgrounds should be undertaken on a regular basis for maintaining greenery and also for having well maintained play grounds. 5. Restructuring of Legal Framework Governing Land Use and Urban land Development: The present legal framework governing land development in most of the States does not provide for a clear framework for private participation in township development nor does it provide for an efficient process for ensuring change in land use. There is a complete absence of a regulatory framework that could reduce or manage the risks relating to land financing structures or provide incentives for better management of land as a resource by the relevant authorities. There is no clear framework in Indian law that: a. prescribes actions that would reduce risks or improve economic efficiency of land based financing mechanisms, or b. Establish incentives for authorities to better align their functioning to

achieve desirable common economic and development goals. It is suggested that Authorities should have jurisdiction to undertake commercial dealings in their land resources. This would enable them to seek land based ﬁnancing for their other social / non revenue functions. Shift towards Common Framework Governing Urban Sector: One of the main hindrances in urban development and planning is that the regulatory framework governing the sector not only varies from state to state but also within the state may vary from town to town. This only increases legal and regulatory risks and also

increases uncertainty. This can be remedied, more readily, at the state level by the state government developing a clear land asset management strategy applicable to all authorities having jurisdiction in relation to urban development. At the Government of India level, this can be sought to be achieved through creating a regulatory framework for regional urban development and by exercising the residual legislative power vested under List I of Schedule VII of the Constitution of India and formulate a national law relating to urban infrastructure development. l Courtesy : FICCI report on “Urbon Infrastructure in India”

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SURVEY REPORT

The Downsizing of the Rental Hub Mumbai is no more among world's 10 most expensive oﬃce sites— Cushman & Wakeﬁeld

hose who count India’s commercial capital as the last and only breathing realty destination which can stave off any downturn must be ready to take it with a pinch of salt. Mumbai’s CBD (Nariman Point) drops to 15th most expensive CBD office location from its previous 8th position according to the annual report -- Office Space Across the World 2012 by Cushman & Wakefield, leading global property consultants. This is also the first time in over 6 years that Mumbai fell out of the top 10 rent rankings. Mumbai. Hong Kong, London and Tokyo maintained their top position as the top three respectively on the annual chart. Beijing (5) and Sydney (7) came into the top ten for the first time in 2012. Office Space across the World, one of Cushman & Wakefield’s longest-running global publications, examines total occupancy costs for prime space in 68 countries. Markets are ranked in each country, and the

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most expensive markets in each country are further ranked vis-à-vis those around the world. “The decline of Mumbai’s CBD rentals is reﬂective of two very important

aspects; ﬁrstly, that other micro markets across Mumbai are witnessing a growth vis-a-vis the CBD. Secondly, that there is a certain amount of rationalisation in rentals

The world’s most expensive CBD office locations Rank 2011

Rank 2012

1 2 3 7 13 5 6 4 9 10 8

1 2 3 4 5 6 7 8 9 10 15

Location

Occupancy Cost (€ /sq.m/ year) (dec2011)

Hong Kong London (West End) Tokyo Moscow Beijing New York (Midtown) Sydney Rio de Janeiro Paris Zurich Mumbai (CBD)

Source: Cushman & Wakefield

2026 1978 1635 1223 1082 992 987 904 875 809 626

Occupancy Cost US$/sq.ft/ year (dec2011) 244 239 197 148 130 120 119 109 106 98 73.3

Rental growth/ decline (%) +1 +8 +7 +41 +75 +4 +6 -8 +5 -3 -8%

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in locations that had seen unprecedented rise in peak periods of 2007 – 08. Nariman Point has seen a steady and perhaps planned decline in the last few years as other micro markets like BKC and Lower Parel recorded a corresponding rise. BKC was consciously planned to decongest the CBD over a period of time and we see this phenomenon setting in.” said Ravi Ahuja, Executive Director, Cushman & Wakefield, India. Nariman Point saw a rental decline of approximately 8% in 2011 allowing the location to slip in global ranking, largely due to diminishing interest from occupiers on account of higher prices, lower quality and age of construction and growing distances from residential hubs. In contrast to this, locations like Bandra –Kurla Complex (BKC), Worli -Lower Parel and Andheri –Kurla Road offer larger floor plate and higher quality of construction whilst being closer to residential hubs. BKC has been inching upwards in terms of rental values

(6%) owing to a steady demand from sectors such as BFSI, Consulting and other sectors. Locations of Andheri–Kurla and other western suburbs are catering to the

requirements of back office operations. Ahuja further added, “The trend of shift in focus from the CBD to other locations is also visible in the prime office markets in NCR and Bangalore where, suburban and peripheral locations are witnessing a rise in activities. Not only do these locations have a cost advantage over traditional locations, they are able to offer greater value in terms of social and civic infrastructure and also good talent pool from the vicinity. Thus we are likely to see this phenomenon continue for another few quarters.” Beating expectations of most, Kolkata saw a striking growth rate in rental values in 2011 making it one of the fastest growing office markets in Asia. Kolkata’s Rash Behari Connector (Ruby) saw the highest rental values appreciation of 28.1% over last year. Three other locations including Park Circus Connector (26.1%), Dalhousie Square (24%) and Park Street/ Camac Street (18.4%) also recorded high growth in rental values. This was largely due to the fact that quality office space supply is scarce in these locations thus the limited available Grade ‘A’ supply has started to command a premium over others.

Top ten most expensive locations in India RANK

CITY

1 2 3 4 5 6 7

Mumbai Mumbai Mumbai NCR Mumbai NCR NCR

8 9 10

NCR Kolkata Mumbai

MICRO MARKET

Bandra-Kurla Nariman Point Worli* CBD-Prime Lower Parel CBD-Others South Delhi Micromarkets South Delhi-Prime Park Street/ Camac Street Andheri-Kurla Road

RENTAL VALUES (INR / SQ. FT./ MONTH) Dec , 2011 Dec, 2010

% CHANGE IN 1 YR

275 275 260 257 170 162 150

260 300 275 250 185 161 151

5.7 -8.3 -5.5 2.9 -8.1 0.5 -0.6

148 122 115

144 103 120

2.7 18.4 -4.2

Source: Cushman & Wakefield Research

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SURVEY REPORT

Fastest growing office locations across India RANK

CITY

Kolkata

3 4 5

Kolkata Hyderabad Kolkata

6 7 8 9

Bangalore Bangalore Pune Chennai

10 11

Chennai Pune

Chennai

Mumbai

MICRO MARKET

RENTAL VALUES % CHANGE IN 1 YR (INR / SQ. FT./ MONTH) Dec , 2011 Dec, 2010

Rash Behari Connector (Ruby) Park Circus Connector (Tapsia) Dalhousie Square Suburban Park Street/ Camac Street Suburban Peripheral 3 Sholapur Road Off CBD-T.Nagar, Alwarpet (IT/ITeS) Suburban- Ambattur Off. CBD S.B.Road and Wakdewadi CBD-Anna Salai, RK Salai (IT/ITeS) Off CBD-T.Nagar, Alwarpet (Corporate) CBD-Anna Salai, RK Salai (Corporate) Bandra-Kurla Complex

28.1

26.7

62 38 122

50 32 103

24.0 18.8 18.4

58 49 30 55

52 44 27 50

11.5 11.4 11.1 10.0

23 70

21 64

9.5 9.4

9.1

8.3

280

260

7.7

Source: Cushman & Wakefield Research

Although, Bangalore registered rental growths in the range of 3%-11%, it remained outside of the top positions of the survey. Driven almost entirely by the IT/ITeS industry, the majority of the leasing activities have been in peripheral and suburban locations which have seen a corresponding increase in values. CBD /Off CBD in Bangalore provide for smaller office spaces which have seen a growth of approximately 6% largely backed by other sectors like BFSI, consulting, media amongst others. There has been a noted decline in supply in the city, while absorption has been buoyant, which has ensured that the vacancy has remained at a low 13% in the end of 2011. Chennai on the other hand a good year for office spaces rentals with most of its location recording growth in rental values

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ranging between 7% - 9% over the previous year. This was on account of the market seeing some robust activities in the first half of 2011. Chennai provides for a distinct advantage as against others of having quality supply whist remaining cost effective. NCR markets remained one of India’s top ten office space destination but with marginal increase to the rental values. The demand was largely skewed towards IT SEZ space which also showed a resultant increase in rentals by approximately 4% over the previous year. Much like other cities, corporate houses are showing preference for newer office space locations that offer more modern amenities. Asia-Pacific recorded the steepest regional prime office rental increases in 2011 according to Cushman & Wakefield’s

report. Overall, rents across the region increased by an average of 8%, with Beijing recording the highest jump in rents globally (75%). Hong Kong maintained its position as the most expensive office location in the world for the second year running, with Tokyo in third. “Steady improvement in property fundamentals has sustained solid rent growth in most markets within Asia Pacific. While signs of cooling were certainly evident in the second half of 2011, broad-based regional economic growth of 5.9% fuelled leasing activity largely driven by IT and banking sector. Rents, however, maintained their downtrend in supply-heavy markets such as Seoul, Hanoi, Ho Chi Minh, and Mumbai.”said Sigrid Zialcita, Managing Director for Cushman & Wakefield’s Research team in Asia Pacific.l

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BOOK REVIEW

PUBLISHED BY : Harvard Business Press AUTHOR : Dr. Vikram Akula PAGE: 224 PRICE : USD 23.37

ithout going into the merit and timing of reviewing the book, one needs to retrospect and keep in mind the facts and furies which surrounded this microﬁnance company. SKS Microﬁnance Ltd, India’s only listed microlender, was embroiled in controversies ever since the company hit the capital market in August 2010. It hogged the limelight for wrong reasons which ranged from sacking of its former CEO Suresh Gurumani to its alleged role in borrowers’ suicides in Andhra Pradesh. If that was not enough, the company saw a controversial exit of its founder chairman Vikram Akula. Then there

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was talk about how SKS compromised on corporate governance practices. However, the above development, in no way, lessens the objectives of the book by Akula who pieced together the best of both socialism and capitalism to help India's poor transition from paupers to customers to business owners. A Fistful of Rice narrates how tenacity, creativity, and innovation can be transformed into handy tools for changing the lot of impoverished individuals living on pedestal. Along with companies such as Airtel, Nokia, HDFC Bank, microfinance companies are trying to take lots of products to the poor, who are widely spread and difficult to cater to otherwise. Their distribution network is a huge competitive advantage over others on the street. We can also envisage a situation when SKS helps its customers (the poor) connect to the markets to sell their products. Netnet, business model becomes networking model over a period of time. This is similar to the story of google, when they first started “information posting” as a paid service, then moved on to “information access” as a paid service and then ultimately moved on to making both posting and accessing information free, but making their revenues from third party advertisements. I have just finished reading “A Fistful of Rice” by Akula. In 2006, Time magazine named him one of the world’s 100 most influential people. He has received a number of awards, including the World Economic Young Global Leader (2008), the Schwab Social Entrepreneur of the Year in India (2006) and the Ernst and Young Start up Entrepreneur of the Year in India (2006). Some of the learnings/important points captured from the book are: Inspiration may come from anywhere — Entrepreneurs get their inspira-

tion from the situations they encounter on a day to day basis. For example, Dr. Akula got his first inspiration from seeing the poor eating the left-out food from a party, and it sparked the thought of doing something for the poor. He followed that resolution and converted it into a successful business. Similarly, Captain Gopinath got his inspiration for his aviation business (Deccan) from the traffic of flights at Phoenix Airport in the U.S., which was flying more aeroplanes compared to all Indian Airports taken together and for his logistics business when he faced the issues of transporting the engine for his blocked plane at Calcutta. Several business ideas originate in such a way and most of us, talk about them and let go. However, what differentiates successful people is their ability to pick up thoughts, conceptualize business models around them and then act relentlessly. Execution is extremely critical. Legendary thought leader Peter Drucker stated “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” The Poor: an opportunity not a burden — Late visionary and management Guru Dr. C. K. Prahalad repeatedly stated “We have to look at poor as an opportunity and not as a problem; with eyes of customer and not charity. Poverty is lack of opportunity, not stupidity”. What the poor need is an opportunity and not consolation. They are not essentially thought poor; they are resource poor. If their resource need is fulfilled, they may pull themselves out of the poverty. Dr. Akula’s work has actually proved that right to large extent. High cost of funding for micro loans is the output of market design — High cost of funding has been an issue of criticism on microfinance. Question we need to ask is why the cost of funding is high?

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Answer to this question lies in high cost of capital given the risks in the business (borrowing cost), high regulatory cost (provisions for bad debts), high operational cost (cost of people, systems, low ticket loans, high volumes and remote locations of customers) and some profit margins. All these costs add up to some 22-23% without margins. Given the structure, microfinance loans have got to be expensive. Now, the question is “what is the alternative to this high cost of funding?”. Probably nothing. It means, debate boils down to high cost of funding vs. non-availability of funds to the poor. If funds are not available, for sure, the poor would not progress at all. However, if funds are there, even if at a higher cost, there is a potential possibility of the poor becoming better. Sustainability of any business model is critical — As they say “You give fish and feed the guy for a day; you teach

High cost of funding for micro loans is the output of market design — High cost of funding has been an issue of criticism on microfinance. Question we need to ask is why the cost of funding is high? Answer to this question lies in high cost of capital given the risks in the business (borrowing cost), high regulatory cost (provisions for bad debts), high operational cost (cost of people, systems, low ticket loans, high volumes and remote locations of customers) and some profit margins.

him fishing and feed the guy for his life time”. Similarly, in case of charity based business model (not for profit organizations) that offers donations, there would always be a limit to the available capital. However, to attract capital — debt or equity, activity needs to be run as business. Dr. Akula states in the book “Interest rates have to be fair for borrowers but high enough to not only cover costs but provide investors a healthy return.” He further states “Doing well by doing good is not only acceptable, it is absolutely ethical. In fact, I believe that offering microfinance as a highly commercial, for profit venture is the more ethical choice, by far.” Idea is quite simple - one will not be able to attract continuous money (other than grants and government funds) unless and until one provides decent returns to the investors on their capital. This is what late Dr. C. K. Prahalad propounded in his book Fortune at the Bottom of the Pyramid, where he said that there is money to be made by serving the world’s poor. I am sure, some of the people may not agree with Dr. Akula’s point of view, but at the end of the day, it is just a thought process. Indeed, I would also choose a model of helping the poor stand on their own feet rather than just keep feeding them. Objective is not to donate money but make the poor move towards entrepreneurship with financial support. Pressure to return the capital with interest puts them to act. If money is taken by them with intention of not to return it ever, would there be a challenge (when we get the basic requirements get fulfilled anyway, why would one need to work) Net-net, microfinance business needs scale, scope, and profitability to substantially combat poverty on persistent basis. No one can help others — There is a saying “No one can teach you anything

but you can learn everything”. Similarly, I think, the poor have to help themselves. Dr. Akula states “We could not help the poor — but what we could do, and had to do, was help the poor to help themselves. Every product, every system, every program that was designed to help the poor had to be designed by the poor themselves.” Business models evolve — In addition to funds based activity (lending to the poor), SKS has forayed in the fee based business by joining hands with various product/service Learning is a continuous process — As “Still water starts stinking; we all need to grow through learning each day. Dr. Akula states in the book about his learnings from various sources: “Grameen system (ingenious combination of trust and peer pressure); Coke and McDonald (scalability and efficiency creation through standardization of products and systems); Financial system (profitability); IT (application of technology to make the operations efficient and reduce the cost of operations.).” Is not that phenomenal! Indeed, it is. I am reminded of Mr. Charlie Munger, partner of Mr. Warren Buffett at Berkshire Hathways, when he mentions “Become a learning machine”. He states “Every day, when we go to bed, we should be better than what we were when we got up that morning”. Wow!! What words of wisdom... Let me conclude by stating that this book is a kind of autobiography by Dr. Akula. It is a nice read, inspiring in terms of commitment of someone to a cause and then making it happen in spite of several impediments on the way. The book also encourages readers to continuously search for better ideas, unleash creativity and innovation and above all execute relentlessly. l

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BOOK REVIEW

PUBLISHE BY : McGraw-Hill AUTHOR : Bradley J. Sugars PAGES : 199 PRICE : USD 16.95

he Real Estate Coach with the tagline of ‘A story of real estate investment success!’ is one among a dozen of books in series by Bradley J. Sugars, the founder and chairman of ActionCoach, a renowned business coaching firm. To whom the book is targeted is reflected in its cover page in the three highlighters: Invest in real estate with little or no cash; spot great deals and make them happen and count the rent roll or sell for big profits. Divided into twelve parts, the author moves the narrative with Brian and Sarah’s story with the Coach guid-

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ing and telling them where to invest their money, how to proceed with their earning and what they really need to configure themselves among a slew of investment tools. In the first part, page no.3, readers encounter useful lines: The basic idea of becoming wealthy is to first develop your cashflow through your job or your business, and then to turn it into physical assets that in turn produce a cashflow all o of their own. Further, Coach, while talking to the couple, defines the investment as “an asset that both grows in capital value and gives of passive cashflow.” Summarising the conversation with Brian, the following rule comes to the fore that the reason he/she buys property is essentially for capital growth, but sometimes he/she has to buy properties with higher cashflow to balance the portfolio. Income from property is designed to cover costs while his/her property grows in value, not to generate a substantial cashflow. Also there are different rules governing different units. Through the Coach, Bradley conveys to Brian: “The investing rules for buying a new inner city unit are quite different from those that apply when buying an existing house in an outer city suburb. Then there are rules for property you intend living in yourself, property you intend renting out, property you want to buy and then sell again quickly, property you intend holding onto long-term … there are about 27 different types of residential real estate categories.” Armed with statistical data in tabular form, Part 2 gives details about balancing portfolio with clearer role that the cashflow gives out. It says, “A property that has relatively low capital growth usually has a higher rental

cashflow. Investment properties that generate a greater cashflow can usually be found in lower socio-economic areas, outer suburbs, country towns, and in some high-density housing.” While continuing his sessions, the coach talks about some fundamentals that would help Brian and Sarah avoid making some of the basic mistakes that so many small-time investors do. Across the globe, the value of land can’t be underestimated. Emphasizing its importance, Bradley writes that the real attraction of the real estate market is land. Land is a commodity that will not grow on tree as they say, so it should keep on appreciating. Stressing on the importance of negotiation process, we came to know that the profit we make on any investment property would be determined by the purchase price. Then there is one important point that needs to be taken seriously: Build a list of realtors you speak with often, and keep them up-to-date with what you’re doing. In the parts that followed through conversational pitches, the prospective investors represented throughout the book by Brian and Sarah, things look to be getting clearer. It’s time they should get down to business and actually negotiate the purchase of their first investment property. One thing that keeps Bradley’s book apart is the use of language which is simple, lucid and to-the-point giving readers an insight of how real investment can be a joyous experience. Earlier targeted to the Western investors, basic principles enunciated here are equally interesting and useful for Indians where real estate is slowly but steadily towards institutionalization. l Reviewed by Achyut Nath Jha

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PROPERTY OBSERVER We are taking the real estate to the next level. To connect and communicate the right information at the right time to all the stake-holders, we have joined hands with

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REAL ESTATE

Hike in Property Price in Delhi

Is It Good for the

NCR? After talking to several stakeholders of capital’s realty world, one thing has emerged that realty prices are touching the roof in capital. There has been rapid increase in prices. Still buyers are around. However, most of them are buying bigger properties after selling their existing house. The present scenario is also considered as good for NCR realty.

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By Vivek Shukla

ardly any kind of surprise was expressed among various stake-holders of realty sector in East Delhi when a 3BHK flat, in not a very prestigious cooperative group housing society, sold for whopping `1.40 crore last month. The first floor flat had an area of 1250 sq. ft. Perhaps no surprise was expressed as the realty rates not only in East Delhi but in entire capital are touching the roof. Samir Jasuja, MD of prop equity, said, “ If the location is good, then increase in rates is even more. I am sure unless the prices do not fall to reasonable levels, the market would not see lot of positive energy.” Well, there are no dearths of serious buyers who are ready to pay even up to

`60 lakh for two BHK flat in any good location. Even this amount is proving less to purchase house in places like Mayur Vihar, IP Extension,Vikas Puri and Janak Puri. “Despite the fact that rates of properties are going up very rapidly, there are buyers in the market. There is good amount of activity in the secondary market. “People are asking for moon from prospective customers,”informs Rajeev Garg, a Mayur Vihar-based realty consultant, adding, “The other side of the story is that there are many who were looking for flats now shifting their focus to Noida, Ghaziabad and Gurgaon, ”he concludes. Meanwhile, a Paschim Vihar-based realty consultant was of the view that those buying properties in capital are looking for bigger accommodation. They first sold their house in order to buy the bigger one. Chartered Accountant, Rohit Jain (name changed) too

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Vivek Shukla recently did the same thing. Jain first sold his third floor 2 BHK flat and then purchased 3BHK flat in Mayur Vihar after. Of course, he put additional money to clinch the deal. There are several other people like Rohit Jain. “While buyers are very much there but the current situation is absolutely crazy. This is not the time to clinch the deal. The

secondary realty market of the capital is touching a new low as the rates of ﬂats have increased without any rhyme or reason up to 18 to 20 per cent during 24 months,” informs Devinder Gupta of DGS Realtors. And if you visit important areas of West and North Delhi like Rohini, Paschim Vihar and Vikas Puri, the increase in prices were up to 25 percent. A realty expert says that market goes up once some property sold at a good price. After that, the rate of that particular deal becomes the benchmark in that area. People forget that there are many factors that determine the price of a particular property. Hence, what is true for one property cannot be true for another property of the area. According to a Janak Puri-based realty consultant Manish Malhotra, “There is hardly any deal that is reaching to their logical conclusion so far as DDA or Cooperative group

Vijay Jindal, CMD of SVP group, feels, “One has to be very practical when it comes to finalizing property deal. “ Rather than waiting for that time when rates fall, one should buy the property at a second best possible place. NCR is thriving because capital is now more or less out of bounds for working class and middle class people.

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REAL ESTATE

housing flats are concerned. The current going rates for MIG flat in Paschim Vihar, Janak Puri and Vikas Puri is at around `80 lakh. The rates for HIG flats are even more. That is too much. With these rates, it is not easy to find buyers.” And, as for the Yamuna paar, the rates of both DDA and society flats are again crossing the limits. You can feel lucky if you manage to buy a two BHK DDA flat at less than `70 lakh. There are some societies where flats are even costing more than ` two crore. Yes, we are not joking. Give the fact that the original costs of such flats cannot be more than `18-20 lakhs, the rates are absolutely crazy, to say the least. Vijay Jindal, CMD of SVP group, feels, “One has to be very practical when it comes to finalizing property deal. “ Rather than waiting for

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that time when rates fall, one should buy the property at a second best possible place. NCR is thriving because capital is now more or less out of bounds for working class and middle class people. It is now no secret that is why a very large number of buyers are looking for flats that match their budget in places like Noida, Ghaziabad, Gurgaon, Faridabad and other places. His thoughts are echoed by Gaurav Mittal, MD of CHD Developers,“ I feel that rather than waiting, one should book a flat in any town of NCR. Now, Metro is spreading its operation, it is advisable for all those looking for homes to book flat in any part of NCR. Thousand of happy families live in NCR who too first tried their luck in Delhi. When they failed, they

moved on.” Is the high cost of flats/floors proving to be dampener for buyers in capital? This very claim or perception is hotly contested by Sanjay Khanna, director of Kailash Nath Projects private Ltd, who says, “this is not true at all as in capital floors worth four/five floors are finding buyers. There are buyers for luxury floors and flats. That segment is thriving.” Joining an issue with Sanjay Khanna, a realty consultant said that is why dingy flats in places like Laxmi Nagar, Ganesh Nagar, Shakarpur are also finding buyers in a big way. “But you never know what would happen to them and those living there in future,” he said, recalling the incident of building collapse at Laxmi Nagar which killed 70 people. l

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NEW LAUNCH

Acron Developers Launches Luxurious Villas

ugenia Evergreens is situated in the picture perfect village of Moira in Goa. Perched on a plateau and cascading down the slopes, the development encompasses 15 carefully conceived spacious villas spread over 4 acres of creative greenery, each with an inspirational view of the undulating countryside. The meandering river in the distance lends enchantment to the view and the occasional sighting of peacocks and local fauna is an added blessing. The new project is a place where every home-owner enjoys the sense of freedom and space one can only dream of in a crowded city. Each villa is designed for its’ own individual eco-friendly green rating by the Indian Green Building Council and comprises approximately 4000 sq ft of built-up area on

approx. 9000 sq ft of private garden. Some villas have smaller gardens. Each villa has 4 bedrooms with en suite toilets, a den, some have celestials bathing the indoor courtyards with light, some master bedrooms open out onto private sundecks with great views and all master bedrooms have walk-in closets and large bathrooms. Each villa has domestic quarters with attached toilets and utility rooms, large kitchens, dining rooms with bay windows and the larger villas have entertainment dens. A few villas have 10 foot tall windows for the living-dining areas and double height atria. Ground ﬂoor heights of some villa’s are 12 and a half feet lending luxury and comfort. All the villa owners are entitled to quite a lot of special privileges like home care, housekeeping & maintenance and pet care. In case

the villa owner wants to rent out the property, reputed rental management agencies will be coordinated with for an elite & discreet clientele. The villa owners will also be benefited with chauffer driven limousine airport transfers. Information on special offers at spas, hotels, restaurants and cafes in Goa’s exciting coastal belt and also information on Goa shopping, travel and other advice and booking assistance for movies, theatre, shows & performances will be shared with them. l

KIWA Introduces Kyra Range of Wardrobes

IWA offers new Kyra range of Wardrobes – An elegant and spacious Wardrobe Collection which will not only reflect the elegance of your home but ignite a spark of flamboyance and sophistication to the drawing room and bedroom. The Kyra

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range of Wardrobes is a merger of the modern trends and fashions of the Italian world keeping in mind the style and design conscious connoisseurs in India. Made from exceptional quality German hardware, wardrobes from company assure durability and toughness. With customization being the key to every design and style introduced by company ; the brand is committed to implement anything a customer ever imagines and dreams of. The company latest innovation the Kyra range of Wardrobes is a modular walk-in

composition customized to your needs. This new range of wardrobes from company satisﬁes all the functional expectations as well and also stores clothes and accessories with order and intelligence. The Kyra range of wardrobes is characterized by versatility and innovative designs with lacquer and matt ﬁnishing which help to organize and distribute space for your precious belongings. The latest wardrobe also comes with plenty of shelving space and drawers providing an attractive storage option for the design conscious Indian market. l

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AMR Infrastructures Brings in The Great Adventure Mall

MR Infrastructures Ltd., one of the leading real estate development enterprises in India, has announced the launch of ‘The Great Adventure Mall’, its most ambitious project till date. Located at Tech Zone, the 650 acres of IT & retail hub in Greater Noida, a future-proof city planned with obsession, The Great Adventure Mall is replete with every adventure facility from across the world, making it India’s ﬁrst all-in-one adventure & entertainment destination that redeﬁnes realty and sets a new benchmark. In its immediate vicinity are Night Safari (fourth of its kind in the world, poised to make Greater Noida a tourist destination, designed by globally renowned Bernard Harrison); Gautam Buddha University (one of the biggest in Asia); Formula 1 track; cricket stadium; and the strategic Faridabd-Noida-Gurgaon (FNG) corridor. Situated along the Yamuna Expressway, AMR Infrastructures’ The Great Adventure Mall is

designed by award-winning international architects, Aedas Pte Ltd. It has a massive frontage of 1.3 km on 135 ft. wide connecting road and would encompass development of more than 23 lakh sq. ft. The ground floor has a wide corridor lined with shops and an 18 ft high roof that adds to its grandeur. "Mall visitors want more than just shopping & entertainment now. We’ve brought in the best adventure facilities & transformed it into a place that has no parallels. It is India’s first allin-one adventure and entertainment destination that redefines realty and sets a new benchmark. Precisely why we are receiving phenomenal response from international brands & investors!" said. Kapil Agarwal, MD, AMR Infrastructures Ltd. Mall gives you a bird’s eye view of the land beneath through helicopter joyrides, paramotor, and hot air ballooning. There are all-terrain vehicles or ATVs with dirt track and go-karting for those who wish to have fun on the wheels.

Fetch the remote and become a pilot, literally, by ﬂying aero-models as big as your oﬃce cabin. And if you happen to be a Formula 1 freak with the likes of Schumacher & Senna as your heroes, race the fast cars against those of your family & friends at the touch of few buttons, without being in the hot seat and hence sans any risk whatsoever. For those desiring an adrenaline shot, The Great Adventure Mall has reverse bungee jumping too. l

Tata Housing Expands Smart Value Homes’ in Gujarat

ata Housing Development Co. Ltd., India’s fastest growing pan-India real estate developer with a presence across the consumer pyramid announced the company’s foray into the Gujarat market with the launch of Shubh

Griha, Tata Housing’s iconic value-housing pan-India brand in Ahmedabad The project will be jointly developed with Arvind Real Estate, under the banner of Arvind & Smart Value Homes LLP, a special purpose vehicle (SPV) created to develop a mega integrated sustainable green township, spread across 135 acres. Shubh Griha, a part of integrated township project, designed by internationally renowned architectural ﬁrm HoK of Toronto is planned taking inspiration from the architecture of Gujarat. The project will become a

benchmark infrastructure project in Gujarat. The project will follow an integrated sustainable township approach and is conceptualized by Tata Housing with a vision to create a positive ecosystem for the neighborhood and the community. “Following the success of Shubh Griha at Boisar & Vasind in Maharashtra and coupled with an extensive consumer demand from the low and medium income consumer segments, we are happy to bring this iconic and successful brand for the people of Gujarat.

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NEW LAUNCH

PERGO Comes out with the Toughest Laminate Flooring

ergo (Sweden), the world’s most preferred laminate flooring is the first to launch the world’s toughest laminate flooring with Class34 certification. Pergo being one of the toughest laminate flooring available to be accorded with Class 34 rating, making it the perfect choice for heavy traffic and commercial areas. As a part of technological advancement Pergo again has new feature for reduction of sound with its professional soundbloc technology. Enjoy the silence and simplicity of Pergo with the most advanced technology ever. Pergo’s various patented technologies are developed and designed to meet the requirements of a truly commercial and heavy

traffic floor; considering the footfalls it attracts. Pergo presents a whole new world of style, beauty and enduring durability. “The Class 34 Decors of Pergo reconfirms the durability and quality of the laminate flooring. The flooring is cut out for heavy duty work and performance in the most demanding public areas and in keeping to that Pergo offers a life time residential triple guarantee towards surface wear off, color fading and there will be no stains on floor. No matter what your living space or work space represents, flooring plays an important role from both an aesthetical and functional point of view. Pergo offers a solution that combines these two criteria without any compromises” said Naresh Maheshwari,

CEO, Pergo India. Pergo flooring with Class 34 certification has unique features: One of the patented features is the “Triple Protection” system or TitanX advanced technology with multiple armed overlays of aluminum oxide spray known to be the second hardest substance after diamond which provides the floor with incredible wear resistance. l

Ashiana Housing Launches Utsav Care Homes

here is a certain age when one can look back at a life lived with dignity, a life of responsibilities fulﬁlled, a life made rich by experience, knowledge and understanding. That ‘certain age' also brings with it some realities: one may not have the vigor and energy one had; one may require some assistance, medical support and secure surroundings. From being the care-giver, one

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needs to be cared for. Thinking on the same bylines, Ashiana Housing Ltd., has launched a new concept of Care Homes in Northern India for the very ﬁrst time. To broaden access to quality care and retrieve valuable life to those senior citizens who are on the verge of assisted living, has come up with Utsav Care Homes in Bhiwadi. Utsav Care Homes is a pragmatic concept that provides housing, support services and personalized care for elderly individuals who may need help with daily activities, hygiene maintenance and health & medication management. It is a combination of home-living with professional & customized care: an option that makes it possible for seniors to maintain and

in fact, improve their quality of life, while getting the nursing care they need at an aﬀordable price. “The lack of a viable strategy and people for elderly care has created humongous demand for assisted living in India. And this new project is in line with our commitment to nurture smile and provide quality life with healthcare accessibility to senior citizens.” said Ankur Gupta, MD, Ashiana Housing Ltd. He further added,“These Care Homes are meant for those Senior Citizens for whom health considerations are a big factor. Assisted-living communities combine independent accommodations with support services such as dining, wellness, social activities, personal care, medication management, and more.” l

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Kamrup Housing to Invest ` 220 Core in Two New Projects

Real estate developer Kamrup Housing Projects will invest about `220 crore to develop two housing projects in Guwahati and Greater Noida over the next 3-4 years. "We are developing a housing project in Guwahati. We have already acquired the land and received all necessary approvals from the authorities. It will require us to invest about `100 crore to complete the construction work," Shridev Sharma, MD of Kamrup Housing Projects (KHP). The seven-acre project--Neelachal Enclave-will house 272 apartments and will be developed over two phases, he added. "The ﬁrst phase will be completed within the next 24 months. The second phase

will be over in the next 36 months," said Sharma. As per plans, the company will construct only 3-BHK flats in the project and the size of each unit will be 1,900 sq. ft. "Although we have not decided about the selling prices yet, but it will vary between `2,000 and `2,100 per sq ft. That means the prices of the flats will be Rs 38 lakh to `40 lakh," Sharma said. He further added, “Our plan is to construct 120 housing units. We are also thinking to offer 10-12 penthouses in the project,". The company will start construction work of the project --Doorva Greens--in the next six months and will be ready for possession in the next 2-3 years, he added. "The project cost has been estimated at around `120 crore," said Sahrma. l

Mauritius PE Paracor to Invest USD 200 mn in Housing Projects

he Mauritius-based private equity fund Paracor Capital Advisors is planning to raise USD 200 million to invest in real estate projects in the country. "We will be raising USD 200 million by June to invest in real estate projects mostly residential, around 90 per cent. We are looking at projects in top seven cities," said Anil Pathak , managing director and chief executive of Paracor Capital. Paracor identiﬁes investment opportunities in the country and advises overseas investment companies in selecting their investments here. The investment will be routed

through its arm Madison India Real Estate Fund Mauritius that focuses on real estate and hospitality investments. Pathak said that the company has already tied up for raising the funds. "These funds will be mainly through high networth individuals. Once we have the funds, we will cautiously invest in projects," said Pathak. He further added, "These funds will be invested for seven years". Pathak said that the company will be investing only after carrying out due diligence. "We don't want to invest in any project that comes our way. We are getting inquiries from developers but we are not in a hurry to

disburse our funds. We will invest only after scrutinising the projects," he said. Paracor Capital, which recently exited from two projects in Chennai, is likely to exit from a few more over the next two to three months, which will mainly be in the Western region. l

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NEW LAUNCH

Neha Dhupia Unveil Book on Vaastu Shastra

andbook’, an established reference for new Vastu enthusiasts and with clear explanations of every aspect of Vastu Shastra was launched at a spectacular event which

took place at Hotel Claridges, in New Delhi. The book was unveiled by the sensational Neha Dhupia and Vastushastri Khushdeep Bansal in funcation. MahaVastu Handbook – the Compendium of Vastu is the Thickest, Biggest and the most expensive book on Vastu ever made. ‘MahaVastu Handbook’ is practical, detailed, carries a lot of new coloured diagrams with clear explanations on each and every aspect of Vastu Shastra. “It is dedicated to the process of inner and holistic development of an individual under the guidance of well versed experts of respective subjects. With more than 600 diagrams and 200 Vastu case studies you will get clear guidelines to successfully apply tested and eﬀective Vastu remedies. With the application of

these Vastu remedies you can expect excellent results in diﬀerent domains of life like, better health, money, relationships, studies, security, bigger gains, exponential growth and many more. This is our initiative to bring joy, success, growth and abundance in your life and that of your loved ones.’’ said Khushdeep Bansal, Vastushastri and Author of the book.l

Foundation Stone Laying Ceremony for Gurudwara inTDI City

he TDI Infrastructure Ltd has conducted a Foundation Stone Laying Ceremony for a Gurdwara at its 1250 acres of integrated township, TDI City, Kundli, which is the largest township in North of Delhi. "It's a great honour to have this memorable day for the construction of a Gurudwara at TDI City, Kundli and my warmest thanks to the top management of TDI for this impressive accomplishment in their beautiful city. It is a day we hope to look back upon with joy and satisfaction for many years to come. And, it is also a day that future generations will also look back upon as a great beginning.” said Sardar Paramjit Singh

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Sarna, President of Delhi Sikh Gurdwara Management Committee, while laying the foundation stone. TDI City, Kundli, which houses over 250 families in its city already has Mandir and now Gurdwara. The residents of TDI City, Kundli are very excited about this new development. In fact the numbers of residents are expected increase to 3000 families by the year end. The TDI City already has in-house facilities like dailyneed provisional store, Doctor’s Clinic, Helpline Centre, on call ambulance and cab. Free bus transportation from the TDI City to nearest Metro Station. Gym to keep the residents ﬁt. Soon they will have exclusive Club to them-

selves. “Our commitment to the residents of TDI City is not simply of creating beautiful and modern facilities around their dream homes rather creating assets for the whole generation. Religious places near one’s homes always help discover the knowledge of spiritual responsibility, enabling us to better understand and more ably serve God’s creation,” said Kamal Taneja, Managing Director of TDI Infrastructure Ltd. l

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NEW HORIZON

High Potential Meets Uncertainty in

Gurgaon’s Emerging Residential Area As the city of Gurgaon grew and expanded its boundaries, newer areas needed to be brought under the development umbrella. The new upcoming sectors in Gurgaon encompass the region surrounding the under-construction Dwarka-Gurgaon Expressway (also called the Northern Peripheral Road). Most of these sectors are approved for group housing projects, with a handful of commercial projects also approved for development.

Rohan Sharma he two main clusters are along the upcoming DwarkaGurgaon Expressway in New Gurgaon’s Sectors 102 to 113 and Sectors 76 to 95 along the NH-8 connecting Gurgaon to Manesar. Both these clusters were predominantly marketed as aﬀordable and mid-income housing

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catchments. A host of projects were launched in these locations over 2009 and 2010. The peak of these areas’ popularity was in mid-2010; however, as with most developments, a generic price rise of between 15-20% dampened demand with price-sensitive buyers. Though still favoured by budget home

seekers, these areas have also seen recent launches in the premium segment by bigger developers like Sobha, ATS and Puri Constructions. This phenomenon has attracted HNI buyers and investors who are looking for capital appreciation opportunities. In comparison to projects in the Dwarka-Gurgaon Expressway precinct, the

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The Southern Peripheral Road is close to the established residential corridor of Sohna Road. A host of residential projects have been launched here by Unitech, Tata Housing, Today’s Group, BPTP and Tulip, among others. developments along the NH-8 – spanning sectors 76 to 95 – are selling at lower price points. Connectivity to these areas is expected to improve further with the development of the Northern Peripheral Road and the arterial sector roads.

Sector-114, which lies near the upcoming Dwarka Expressway, is designated for commercial use. Due to its proximity to Delhi and the airport, commercial development here is expected to witness good demand levels. However, the demand for commercial office space would depend on the completion of the Dwarka Expressway, the internal sector roads and other infrastructure improvements. Currently, connectivity is through a 24-meter sector road. Demand for commercial office properties in this part of Gurgaon is likely to pick up over the next 3-5 years, when certain projects will show visible signs of construction progress and this will provide a clearer vision of the completion timelines for the Dwarka Expressway. Apart from its proximity to the airport, this region will also benefit from the planned Metro connectivity, which will further fuel demand for office space.

However, the, bottom line remains that only complete clarity on the timelines for the infrastructure developments in this part of New Gurgaon will finally boost commercial office space demand in this sector. Its proximity to Delhi and the development of the Expressway and the Metro will definitely prove advantageous to this sector over the medium to long term. Most of residential demand for midsegment housing is concentrated around the upcoming residential corridors around the Northern Peripheral Road and other sectors around NH-8. Prices in these projects have appreciated steadily over the second half of 2010 and the whole of 2011. This is an indicator of the healthy demand in these clusters.

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NEW HORIZON

The Southern Peripheral Road is close to the established residential corridor of Sohna Road. A host of residential projects have been launched here by Unitech, Tata Housing, Today’s Group, BPTP and Tulip, among others. Residential prices on the Southern Peripheral Road are closer to those of projects on Sohna Road and vary between `4600-7200/sq.ft. Both these upcoming residential corridors in Gurgaon oﬀer a host of options by reputed developers, at and prices which allow for a potential capital appreciation.

Struggling with Challenges On a more somber note, a lot of the proposed infrastructure in these clusters is still being put in place. For instance, the Southern Periphery Road and the last stretch between Sohna Road and the NH8 are still incomplete. No clue is yet available on the issue that is delaying the

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completion. The contract for the Dwarka Expressway has been awarded to Indiabulls, and construction is slated to finish over the next 12-16 months. The concern going forward is two-fold: 1. The support infrastructure – specifically the arterial and sector roads, traffic management, civic services, etc. 2. The developers’ ability to finish their projects, adhere to schedule and delivery quality Also still to be demonstrated is the ability of the civic authorities to create and maintain infrastructure which will be able to sustain the pressure of a sizable addition to the population over the next 4-5 years. l Physical infrastructure like roads, power and sewage disposal are developing at a slower pace than what working at optimum capacity would deliver. l The road infrastructure, in particular,

has struggled to cope with the increase in vehicular traffic. l The sector roads in upcoming clusters need to be fast-tracked (the current state of existing roads does not inspire much confidence). l Gurgaon has been plagued with inadequate power generation; with power requirements increasing rapidly, concrete steps need to be taken in this regard. In short, infrastructure development in Gurgaon has definitely not kept pace with the speed of real estate development. The Millennium City is already challenged in providing the right quality of life to its citizens, and the upcoming developments there are going to exert further pressure even as capacity building remains at sub-par levels. l ( Writer is manager, Research and Real Estate Intelligence service, Jones Lang LaSalle India)

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IN FOCUS

Uncorking the Real Estate

of Delhi’s North West Focus now is shifting towards small towns like Narela which could aﬀord reasonable housing and developers have already begun to construct middle-class housing societies in this region.

By Sanjeeb Kumar Sahoo elhi is one of the most active real estate markets in India. As a capital city, it attracts all and sundry -- job seekers, professionals, entrepreneurs from across the country. The massive surge of people depends on the city infrastructure and property values too. The

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undergoing project, Kundli-Manesar-Palwal (KMP) Expressway, will improve connectivity in NCR and number of areas in northern, western and southern parts of the NCR. Due to Expressway project, builders are hiking property prices in Delhi and NCR regions. The Expressway in Haryana, also known as the Western Peripheral Expressway, has been divided into three sections of 45 km

each. Four ﬂyovers are being constructed at places where the expressway crosses national highways, namely, NH1 near Kundli (Sonepat), NH10 near Bahadurgarh, NH8 near Manesar (Gurgaon) and NH2 near Palwal (Faridabad) and State Highway 13 (Gurgaon to Alwar) near Rozka Meo Industrial Area in Mewat District. Sixteen overpasses and underpasses at crossings on

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state highways and major district roads; seven overpasses, nine underpasses and 27 underpasses at crossings on village roads and 33 agricultural vehicular underpasses, 31 cattle crossing passages, 61 pedestrian crossing passages, four railway over-bridges, 18 major and minor bridges, cross drainage works (culverts) at 292 locations, and two truck parking and four bus bays will also be constructed. This road link will be known as one of the longest expressways in India that will open avenues for real estate development as well as transforming the adjoining areas into well established economic centres which will, in turn, beneﬁt towns in the North West District of Delhi.

Project Hitting the Sub-city of Delhi The KMP Expressway Project, very close to Narela, is situated in the outskirts of Delhi and almost borders with Haryana State. It is mainly an Industrial area of the North West

Delhi zone and is in close proximity with New Delhi and South of Sonepat. It is a well established Industrial Area with very high prospects and a boost to the real estate industry for residential property demands once this area sees a well connected transport link to the other parts of Delhi. It is approximately 12 km from Rohini and 3 Km from Kundli, which are both known as excellent real estate destinations. It will be the more beneﬁtted of project. “Due to undergoing project, most of the builders are taking advantages of this particular place and I hope after ﬁve years prices will go higher,” said Rohini- based property dealer.

Delhi’s North West Narela has recently captured the interest of the real estate business of Delhi after the Delhi Development Authority (DDA) constructed a string of LIG Flats, MIG Flats and HIG Flats and sold them through a draw of lots. In fact, the overall property boom

between 2007 and 2008 that led to an unparallel rise in the value of property across Delhi also impacted Narela to a high extent owing to the fact that people started looking for affordable property as they could not afford the sky rocketing property rates in the main areas of Delhi. Focus now is shifting towards small towns like Narela which could afford reasonable housing and developers have already begun to construct middleclass housing societies in this region. Post economic slowdown, the value of properties in this region has witnessed an incredible rise due to the high demand for affordable residential complexes which has in turn increased the demand for commercial property in this area. Due to its commercial importance and industrial influence, Narela never experiences any water shortage or electricity cuts, however the only drawback was the absence of well laid roads, proper transport facilities and connectivity to places in Delhi. This concern has been tactfully

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IN FOCUS

In 2008, the DDA had launched numerous residential apartments and plots in Narela wherein allotment letters had been finalized and distributed in December 2009 while residential complexes financed by private developers are also underway that will overall contribute to the end user demand for affordable housing.

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addressed by the Delhi Government with numerous infrastructure plans underway.

Plan DDA is planning to extend the Metro link to Narela Sub City that will be completed by 2020 and will definitely benefit this area extensively. This road link will be known as one of the longest expressways in India that will open avenues for real estate development as well as transforming the adjoining areas into well established economic centres which will in turn benefit towns in the North West District of Delhi including Narela sub city. In 2008, the DDA had launched numerous residential apartments and plots in Narela wherein allotment letters had been finalized and distributed in December 2009 while residential complexes financed by pri-

vate developers are also underway that will overall contribute to the end user demand for aﬀordable housing. Today, Narela is known as one of the last upcoming localities within the main capital city of Delhi.

New circle rate As per the revised rates approved by Delhi Cabinet, `2.15 lakh per square metre has been ﬁxed as new circle rate for category A colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas. This means nobody would be allowed to buy land and immovable properties in these colonies for less than `2.15 lakh per square metre. The existing rate in these colonies was `86, 000 per sq. ft. and the hike aﬀected by the government is

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250 per cent. Revenue Department oﬃcials said that the government hiked the rates as in most cases; actual rates of properties are not shown on paper due to which the Government suﬀers loss in revenue in stamp duty and registration fees. “Due to excellent Metro connectivity up to (North West Delhi) Rohni and Kundli–Manesar– Palwal Expressway Project and other development activity in Harayan neighbor of capital, property prices have been increasing,” said a leading property dealer of Delhi and NCR. Though prices of residential properties have already peaked in the seven major cities-New Delhi, Mumbai, Chennai, Kolkata, Bangalore, Pune and Hyderabadnon-metros and small cities could still be great destinations for investing in real estate.

India’s Property Market The Indian property market has been growing fast since March 2005, when the current UPA government decided to open FDI in

real estate. Some have suggested that given India's population density is closer to that of Europe than that of America; the real value of Indian Real Estate should be close to European levels rather than American levels. When looked at in that way Indian real estate is still cheap. This argument assumes the rapid economic growth in India will have brought per capita income in India to Western European levels within the next 10 years in urban areas. Rival argument to this is that US prices would ideally move with economy/inﬂation rate of 2–3% while Indian prices will gallop at the rate of 10% a year and probably more as the land distribution market is ineﬃcient. This price increase is mostly due to two reasons – one primarily in most cases the developers creates false claims of overbooking and increases the demand and price and the other reason may be that most of time properties are bought sold within 6–12 months from one buyer to other. There is no system available to the public to track

The Expressway in Haryana, also known as the Western Peripheral Expressway, has been divided into three sections of 45 km each. Four flyovers are being constructed at places where the expressway crosses national highways, namely, NH1 near Kundli (Sonepat), NH10 near Bahadurgarh, NH8 near Manesar (Gurgaon) and NH2 near Palwal (Faridabad) and State Highway 13 (Gurgaon to Alwar) near Rozka Meo Industrial Area in Mewat District.

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IN FOCUS

these sells or buys. In US, there are lots of real estate websites which provide the buy and sell details like, what is fair value, when the house was built, how many houses are on sale, etc.

A comparative appraisal The other factor to consider is cost-to-facility ratio, in Mumbai a 2 bedroom apartment with living space of 1,200 sq. ft. (110 sq.m.) or 1,400 sq. ft. (130 sq.m.) of build up area will cost about 60 lakhs to 1 crore or even more, same for other major Indian cities like Chennai, Bengaluru, Hyderabad, Pune , Gurgaon, etc. Whereas in USA, Australia, the UK or France, a 3 bedroom/2.5 bath townhouse which is at least 2,000 sq. ft. (190 sq.m.) around most of metros( other than Manhattan and Los Angeles ) will cost between USD 250,000 to USD 500,000 which is between `1 crore to `2 crore. These houses have parking garage, back yard and with basic kitchen setup including cabinets, refrigerators, washer and dryer and for higher range may

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include a private swim pool, basement, front yard. In these western countries average salaries are almost 8 times the Indian salaries but cost of house (For a much better house) is only double. Also the Interest rate paid by Indians is almost double that of their developed country makes the EMI paid on par with developed countries in many cases. By its very definition a bubble is a short term phenomenon while Indian real estate market has continued on a secular upward trend apart from periodic adjustments, in the last 10 years. Bear in mind that there are almost 400 million Indians waiting to hit the middle class group and they will exert additional pressure on the system. Affordability is the most important factor when it comes to housing prices and middle class housing is on higher levels of affordability in most of the major cities in India. People, who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course, there is a huge demand for housing but they can only buy what they can

afford. One of the big problems of real-estate market is that supply lags behind demand by about 5 years (Plan-Approve-FinanceConstruct time). Lack of efficient signals to market participants means that there will be periods of mismatch between suppliers and buyers hence leading to cycles of booms and busts. India ranked second out of 50 countries for annual growth of residential prices. To revitalize the real estate sector, government should provide tax holidays for both domestic and multinational companies to set up business in India. German cement manufacturers are pioneer in the cement manufacturing sector and will be ready and willing to invest in India, if the government extends full support and fast project clearance has done. In reality, government doesn’t want to displease the cement and steel cartel in India. The cement cartel will shake up if govt. allows mass import of cement and essential goods to India to contain and reach inflation up to 4%. l

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PROPERTY OF THE MONTH

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PROPERTY OF THE MONTH

| ProPerty observer |

INDIA’S

FIRST-EVER

REALTY BIBLE

LAUNCHED

A Planman Group initiative, STAR REALTY 2011-12:Lords of the Land, was unveiled on February 22, 2012 by the Honourable Union Minister of Urban Development, Shri Kamal Nath and Prof. Arindam Chaudhuri, Editor-in-Chief, Planman Media, at the Taj Palace Hotel, New Delhi. India’s first-ever Real Estate Bible, the book confers the title of Star Realty to the top 50 real estate brands of the country. These 50 companies were selected based on a survey among thousands of respondents across 10 cities by the Indian Council for Market Research (ICMR). The grand event commenced with a message by the Honourable President of India, Smt. Pratibha Devisingh Patil that read, “I extend my warm greetings and felicitations to all those who were

associated with the event and wish the event every success.” The evening also witnessed leading real estate companies and their extraordinary leadership being honoured for their great contribution in shaping the landscape of the Indian diaspora. “Star Realty 2011-12 - Lords of the Land is a brilliant initiative and I would like to congratulate Planman Group and Prof. Chaudhuri for speaheading such a unique concept,” Mr.. Nath said after unveiling the book. In addition to members of the real estate fraternity, the unveiling was also attended by several prominent names from across the country, which included honchos from other ancillary industries, eminent designers and architects. “It’s a great day for the Indian Real Estate Sector,” stated Prof. Chaudhuri and

urged the sector to bolster housing for the lower and middle-class. Mr. Deepak Kaistha, CEO, Planman Media added, “Star Realty is a unique endeavour by Planman Group to present the leading brands of Indian real estate in a classic format. Star Realty is the first-of-its-kind coffee-table brand book to have chronicled real estate brands on a pan-India basis. The book is the most meticulously researched, clearly written and thoughtfully designed project in the country.” The book highlights the growth prospects and drivers for the sector through a comprehensive industry review and analysis, and features the maestros of modern Indian architecture in a never-before-seen avatar.

1. Star Realty 2011-12: Lords of the Land stage. 2. Prof. Rajita Chaudhuri. 3.Prof. Arindam Chaudhuri, Editor-in-Chief, Planman Media with Deepak Kaistha, CEO, Planman Media. 4. Sanjay Khanna, Chairman, Marc India with Deepak Kaistha. 5. Prof. Chaudhuri with Urban Development Minister Kamal Nath. 6. Prof. Chaudhuri with Harshvardhan Neotia, Chairman, Ambuja Realty, Kamal Nath and Deepak Kaistha. 7. Rohit Manchanda, Dean â&#x20AC;&#x201C; Centre for Executive Communication and Personality Development, IIPM. 8. Abhimanyu Ghosh, Managing Editor - Projects. 9. Pranav Ansal, Vice Chairman and MD, Ansal API. 10. Dr. Anil Kumar Sharma, CMD, Amrapali Group. 11. Rohtas Goel, Chairman and MD, Omaxe Group. 12. Getamber Anand, Chairman, ATS Group. 13. Vidur Bharadwaj, Director, The 3C Universal. 14. Paras Pandit, Chairman, Sheetal Infraprojects. 15. Rushabh N. Patel, Chairman, Parshwanath Corporation. 16. Prashant Tiwari, MD, Prateek Buildtech. 17. Sanjay Khanna. 18. N.K. Patel, CMD, Sun Builders. 19. Saurabh Jindal, Joint MD, SVP Group 20. Arun Mahajan, Chairman, Style Spa 21. O P Agarwal, Chaiman, Asian Tubes 22. Dharmendra Chauhan, Chairman and Dharmesh Choradia, MD, Sharnam Group 23. Mahesh Vithani and Sanjay Sorathia, Executive Directors, Happy Home.

1. (R-L) Rohtas Goel, Dr. Anil Kumar Sharma, Harshvardhan Neotia, Navin Ansal, Kamal Nath, Raseel Gujral Ansal, Shabnam Singhal, Prof. Arindam Chaudhuri, Sanjay Khanna, Pranav Ansal, Vidur Bharadwaj, a guest and Prashant Tiwari. 2. Prof. Chaudhuri with Shabnam Singhal and Raseel Gujral Ansal. 3. Prof. Chaudhuri with Harshvardhan Neotia. 4. Kamal Nath. 5. Prof. Arindam Chaudhuri. 6. Prof. Chaudhuri with Kamal Nath. 7. Kamal Nath. 8-10: Guests

AWARDS 1. Dr. Anil Kumar Sharma receiving the award.2. Prashant Tiwari receiving the award. 3. Rohtas Goel receiving the award. 4. Pranav Ansal receiving the award. 5. Vidur Bharadwaj receiving the award. 6. Vidya Basakord receiving the award. 7. Vaibhav Deo receiving the award. 8. Prakash Hegde receiving the award. 9. Getamber Anand receiving the award. 10. N. K. Patel receiving the award. 11. Mahesh Vithani and Sanjay Sorathia receiving the award. 12. R. Karthik and Samujjwal Ghosh receiving the award. 13. Saurabh Jindal receiving the award. 14. Dharmesh Choradia and Dharmendra Chauhan receiving the award. 15. Paras Pandit receiving the award. 16. Rushab N. Patel receiving the award. 17. Jagadish Nangineni receiving the award 18. Praveen Apte receiving the award for Darode-Jog. 19. Chitrak Shah receiving award for Shivalik Group. 20. Ankur Jindal and Ankush Jindal receiving the award for SVP Group. 21. Girish Shah

receiving the award for Godrej Properties. 22. Brijesh Bhanote receiving the award for The 3C Universal. 23. R Rajesh receiving the award for Shapoorji Pallonji Group. 24. Vaibhav Deo receiving the award for Raheja Universal. 25. Rupesh Brahmbhatt receiving the award for Safal Constructions. 26. Jagadish Nangineni receiving the award for Sobha Developers. 27. Tanuja Kehar receiving the award for Unitech Group. 28. Jyoti Prakash receiving the award for Hiranandani Group. 29. S K Jain, Sunil Kothari and Vishal Kothari receiving the award for Om Metals Group. 30. Vishal Khosla receiving the award for Tata Housing. 31. Vvikas Aroraa receiving the award for Runwal Group. 32. Getamber Anand receiving the award for ATS Group. 33. Dilip Ravani receiving the award for Ravani Developers. 34. Ashish Mathur receiving the award for Ramky Group. 35. Narendra Kumar and Chetan Bagaria receiving the award for Elysium Properties.

36. Prashant Tiwari receiving the award for Prateek Group. 37. Prem Prakash receiving the award for Jaypee Greens. 38. Rohit Poddar receiving the award for Avani Group. 39. Nimish Vora and Jignesh Vora receiving the award for Kavya Buildcon. 40. Shweta Gupta receiving the award for Wave Infratech. 41. Mahesh Vithani and Sanjay Sorathia receiving the award for Happy Home. 42. N K Gupta receiving the award for Manglam Group. 43. Ashok Agarwal and Ashish Agarwal receiving the award for Shreeram Group. 44. Chiranjiv Patel receiving the award for P C Snehal Group. 45. N K Patel receiving the award for Sun Builders. 46. Rushab N. Patel receiving the award for Parshwanath Corporation. 47. Rishi Arora receiving the award for Shri Infratech. 48. Harsh Soni and Darpan

Shah receiving the award for Wallman Group. 49. Abhayraj Singh Raghav receiving the award for BOP. 50. Raju Ram Panjabi and Ronak Moti Panjabi receiving the award for Rama Group. 51. Subhashish Ghoshal receiving award for Lalit Kumar Jain. 52. Vibour Sogani receiving the award from Prof. Chaudhuri and Prof. A Sandeep. 53. Alok Agarwal and Col.Amit Sehgal receiving award for Ozone 54. Rajesh Srivastava, MD, Meinhardt receiving the award. 55. Shabnam Singhal, Managing Partner, Sirius D&E Group receiving the award. 56. Akash Deep Jyoti, Head-Real Estate Ratings, CRISIL, receiving the award. 57. Vijay Prakash Jain, Chairman, Pavit, receiving the award. 58. A. K. Monga and Umang Monga, Harrison, receiving the award. 59. Neeraj Bhalla, SS Group receiving the award.

POST EVENT

3 1-2. Star Realty team. 3. Deepak Kaistha, Himanshu – Art Director, Rajiv Khati – Editor, Prof. Arindam Chaudhuri. 4. Shalini Kaistha, Deepak Kaistha, Prof. Rajita Chaudhuri and Prof. Arindam Chaudhuri. 5. Zubair Salroo – Project Manager. 6. Rajat Sogani – Project Manager. 7. Shikha Sharma – Head, Corp Comm. 8. Swati Gupta Sharma – Vice President, Client Servicing