Anniversary Combo Issue(April-May) by Harsh Vardhan

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Realty Regulars

Over 14,000 illegal construction cases registered…, Sunteck, Neptune, Tata…launched new projects, Bhoomi Poojan was performed by World Residency and Golf Country Villas.

Cover Story

As a premier real estate company, Omaxe has proved its mettle in the ever burgeoning real estate industry of modern India.

Luxury Living

Property of the Month, Araya, a privilege reserved for the elite…, dream big, dream villas…picking up a villa from a catalogue.

Economy & Policy

Need of a realty regulator…, affordable housing on priority…, RBI rate cut impact…GST and missing deadlines, capital gains, mortgage risk

Books

Review of Guaranteed To Fail and How To Think Like Benjamin Graham And Invest Like Warren Buffett… a slew of books.

Legal

A Delhi High Court advocate taking a painstaking effort to analyse the SC verdict on GPA…, 10 things before signing the property deal.

Lifestyle Getaways

Golfing prolongs life span, it is great for keeping you slim and trim…, using the pool for swimming in summers…and poolside parties.

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Shining Horizons

Front runners of Indian realty, they are the ones who made the sector…, the trend of brand ambassador endorsements has picked up of late.

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Publisher & Editor: Sachin Mittal COO: Satish Grover Executive Director: Nehal Gupta Director-Finance: Vikram Abrol Support Head: Shruti Gupta Editorial Editor at Large : Yogesh Sood Head Editor: Achyut Nath Jha Special Correspondent: Varnika Kukreja Feature Editor: Asad Waseem, Neha Simpy Sub-Editor: Rashmi Tiwari Executive Editor: Hariom Tyagi Art Art Director: Vishal Goyal, Comdez.com Head Concept & Design: Siddharth Agarwal Senior Designer: Mohd. Manjoor, Raj Kumar Circulation & Support Assoc. VP - Circulation & Subscription Alok Nautiyal Dy. Manager Operations: Jitender Dahiya Sr. Executive: Jitendra Rana Sr. Executive: Rakesh Kumar Finance Amarjeet Singh Legal & Corporate Advisor Rupesh Tyagi

Clarification Property Observer welcomes your comments/suggestions about any error or omission. It is our policy to reply to all queries. You may write to the editor at: edit@propertyobserver.in Property Observer Property Observer, a monthly magazine is published and printed by Sachin Mittal under the aegis of Dreamwork Media and Entertainment Pvt. Ltd.(DMEPL). The copyright of the magazine is vested with the Publisher. Reproduction in any manner without the prior permission is strictly prohibited. All disputes subject to the Jurisdiction of competent court in Delhi only. @ 2012 DMEPL. All Rights Reserved. Printed at Modest Graphics (P) Ltd. C-52, 53, DDA Sheds, Okhla Industrial Area, Phase-I, New Delhi- 110020. http: www.propertyobserver.in

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CHENNAI

Contributors Subhash Lakhotia Kamal Nath Thakur Vinit Kumar Koneru Sales Manager ( North): Rahul Mathur Manager (West): Shah Nawaaz Khan Manager (East & South): Praveen Singh Manager-Events Harsh Vardan Eralu Photographer Hariom Sharma Office Support Sandeep Rawat Rinku Kumar

MUMBAI

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THE NEW LOOK Thank you all for your overwhelming support for Property Observer for thirteen months and making it as No.1 and at the same time, I owe you an explanation as to why we gave a miss to your favourite magazine in April. Actually, with feedback from markets and independent analysts I along with editorial and marketing team were engaged in retrospection, analysing and updating about where the magazine stood and who did it target? The result— a completely revamped 184-page mega issue in new shape and design—is in your hand. You will agree that we have hit the stand with double strength. I am now sure you will appreciate our efforts and continue the same level of support by welcoming this issue as a media partner which has always been yours. The combined April-May issue has plenty for you and to keep you engrossed for several weeks. While inside pages have plethora of interesting and invigorating topics, this month’s cover story is a narrative about Omaxe Group, CMD Mr. Rohtas Goel and his contribution in real estate development. As you know, it has been our aim to provide optimum coverage to those who have contributed immensely to India’s growth story and are still playing significantly. I hope the new look mega issue will find resonance with you all. Happy Reading!

Sachin Mittal Editor

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OVER `14,000 ILLEGAL CONSTRUCTION CASES REGISTERED n recent times, the Municipal Corporation of Delhi (MCD) has registered 14,306 cases of unauthorised constructions, demolished 5,128 and sealed 2,476 constructions in the last three years. In a written reply, Minister of State for Home Affairs, Mullappally Ramachandran said that the MCD as well as the Delhi Police were making all efforts to curb cases of illegal construction in the capital. "MCD has registered 14,306 cases of unauthorised construction in the last 3 years. It has also fully/partially demolished 5,128 constructions and sealed 2,476 buildings in the same period," said Ramachandran. The minister further said that four people were arrested in 2011 in connection with cases related to illegal constructions while none were arrested till February 29, 2012. "Whenever any apprehension to the security of the whistle blowers is brought to the notice of police, immediate legal action is taken by Delhi Police and security is provided to such individual; after necessary enquiry," said Ramachandran.

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H&R JOHNSON’S RETAIL OUTLET OPENED &R Johnson (India), a division of Prism Cement Limited, has opened its first ‘House of Johnson’ modern retail in Chandigarh. Spread across 3,800 sq. ft, this House of Johnson store would be a one-stop-shop for the company’s home lifestyle product portfolio. The House of Johnson is a modern retail format catering to Punjab’s customers’ varied home lifestyle needs in tiling, engineered marble and quartz, wooden flooring and bathroom products under a single roof. Punjab has been one of the key drivers of H&R Johnson’s business growth since the last few years.

The company is focusing on north India and Punjab specifically, to drive growth in business volumes across its various business ventures. In order to cater to the demand, it is also ramping up its bathroom products business towards cornering a higher market share in the organised bath-fittings and sanitary ware market. As part of this business plan, the company has doubled the production capacities at its Baddi (Himachal Pradesh) manufacturing unit to 6 lakh pieces annually. The new capacities have started commercial production and are expected to peak capacity utilisation during next fiscal. The Baddi unit manufactures the prolific range of Johnson’s bathroom fittings. The investment made towards Baddi expansion is part of the `400 crore capex, announced by the company towards capability building across its various business ventures.

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CHERIE BLAIR TO MEDIATE HIRANANDANIâ&#x20AC;&#x2122;S usiness scions in India often hog the limelight for the sibling rivalry. But when the stakes are high and realty bites, its Cherie Blair who the Hiranandanis choose to play peacemaker. The wife of former British Prime Minister, Tony Blair and a Queen's Counsel (QC), Blair is an arbitrator for `1,400-crore dispute in the developer's family. The other arbitrators are QC and former Delhi high court Chief Justice A. P. Shah. The panel is expected to solve spar between brother and sister, who are both high-fliers in their own right.

While son, Darshan, before turning 30, reportedly developed 23 Marina, the "world's tallest residential towers" in Dubai, daughter Priya Vandrewala sold her business process outsourcing company for USD 100 million in 2005 when she was not even 35. The scions are squabbling over the spoils of the family's massive real estate empire. The feud in the relationship appeared three years ago when the London-based Priya, a CA by training, suspected that her brother and father were doing her out of her rightful share of profits by allegedly violating an agreement that was signed in 2006. The agreement pertained to Hirco PLC, which the Hiranandanis and Vandrevalas started in London and subsequently, created a subsidiary, Hirco Developments Pvt Ltd, to develop large urban housing centres in India. Priya's case was that she and her husband, Cyrus Vandrevala, had raised the money for investments but contrary to their agreement, her father and brother continued to buy plots by involving other developers. The claim has been countered by both Hiranandani and Darshan. The 57-year-old Blair has her own identity as a leading QC in Britain. A barrister since 1976 and a law graduate from the London School of Economics, she specialises in public law, discrimination, European Community law, employment law, human rights mediation and arbitration. Last month, she joined the list of high-profile names who sued Rupert Murdoch's group for alleged hacking of her phone by News of The World.

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KOTAK REALTY TO INVEST IN PARSVNATH arsvnath Developers is raising `120 crore from Kotak Realty Fund for a new 100acre integrated township project on Sohna Road in Gurgaon. Kotak Realty fund will get a 20% stake in the special purpose vehicle (SPV) that will develop the project. The project will be largely residential in nature with some commercial and retail developments, and will be launched in the next two months. "The land for the project has been aggregated by Parsvnath over many years and approvals are being taken to launch the project," said an insider. A senior executive at Parsvnath confirmed that talks were on.

Parsvnath Developers has sold stakes in many of its residential and office projects to private equity funds in the past. Last year, JP Morgan had invested USD 30 million in Parsvnath's residential project La Tropicana in Civil Lines area of north Delhi. The fund was used to give an exit to Red Fort Capital that had invested 115 crore in the project in 2009. Red Fort Capital had earlier picked up 24.5% for `120 crore in an office project Parsvnath is developing on land it had got from the Delhi Metro Rail Corporation in New Delhi. In January 2011, Sun-Apollo India Real Estate Fund invested `100 crore for a 49.9% stake in a residential project Parsvnath Exotica in Ghaziabad near Delhi. The listed real estate company, which has a focus on the NCR, is currently trying to reduce its debt, which stands around `1,300 crore. It recently put a 1.2 acre plot in the heart of Delhi, on Kasturba Gandhi Marg, on the block and is expecting to raise around 700 crore through the sale. The plot is located opposite the American Centre on KG Marg, just outside the Lutyens Bungalow Zone. If the sale goes through, it will be the first new building to be built in the central business district of Connaught Place in Delhi, after the Birla Tower that was built in early 2000.

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FALL IN US MORTGAGE APPLICATION CONTINUES hough weekly fluctuation in any market index may not indicate in totality, it reflects the sentiment it passes through. The US Mortgage Bankers Association (MBA) said the Market Composite Index of US mortgage applications, a measure of mortgage loan application volume, decreased 7.4 percent in the week ending March 16, 2012 on a seasonally adjusted basis from the previous week. The Refinance Index dipped 9.3 percent from the previous week, while the seasonally adjusted Purchase Index edged down 1.0 percent, reported Xinhua.

As a result, the four week moving average for the seasonally adjusted Market Index fell 2.79 percent from the previous week. The four week moving average dropped 4.31 percent for the seasonally adjusted Refinance Index, while this average ticked up 3.25 percent for the Purchase Index, said the survey. In addition, the association said the average contract interest rate for 30 year fixed-rate mortgages last week increased to 3.93 percent from 3.82 percent, while the average contract interest rate for 15 year fixed-rate mortgages rose to 3.47 percent from 3.36 percent. "With the rate increase last week, refinances are obviously slowing, and the refinance share at 73 percent is down to its lowest level since last July," said Jay Brinkmann, MBA's Senior Vice President of Research and Education.

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NHAI BIDDERS TO GAIN elect road construction companies are set to benefit from the final round of awarding of road projects by National Highway Authority of India (NHAI).These are the ones which chose not to participate in outrageous bidding just to secure projects in the last few months. Armed with a fair amount of cash flow from operations, relatively low debt-equity ratio and few under-construction projects, these companies would have less competition in the forthcoming road projects to be awarded by NHAI.

L&T, IRB Infrastructure Developers, Sadbhav Engineering and Reliance Infrastructure are the ones, which would benefit from the forthcoming road projects to be awarded by NHAI. In the current fiscal, NHAI has awarded close to 4,000 km of road projects. In securing these projects, the competition among players became intense and fierce. On an average, there were twenty bidders for the project. Also, the difference between the top two bidders, on an average, was 30%. However, since November last year competition started loosening. The number of players and the gap between the top bids got reduced. Now, the number of bidders in a project awarded in the last two months has been less than ten. Also, since many companies do not have enough financial strength to bid and mobilise funds for new projects, there would be fewer companies bidding for these projects. And those which bid and secure projects, have been unable to achieve financial closure on recently awarded projects. These factors have brought down the fierceness in securing projects and hence those players who stayed away earlier would get projects at more meaningful price levels. For this fiscal, 11 NHAI projects with a total length of nearly 2,000 km are up for bidding. Hence, at a time when those companies, which grabbed projects aggressively, are looking to churn their portfolio by divesting or selling part of their projects. These companies can make the most of these forthcoming projects. In the coming quarters, the only hitch these conservative players, which would secure projects, would face is the stretching up of their balance sheets. These companies would also not be in a position to grab any more projects in future. Hence, in the next fiscal, for healthy competition to prevail, interest rates need to soften.

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L&T BAGS ORDER WORTH `1,120 CR &T, engineering and construction major, claimed that its construction division had secured orders worth `1,120 crore so far this month, a large chunk of which came from abroad. In a filing to BSE, the company said power transmission and distribution vertical under L&T Construction has secured orders worth `548 crore order from Abu Dhabi Water & Electricity Authority. This is for construction of 220 kv overhead lines, switching solutions and other related electrical works. The USD 11.7 billion L&T operates its businesses through several independent companies including L&T Construction.

L&T Oman, a part of L&T Construction, has bagged `156 crore order from a 'reputed' client for the construction of an electrical sub-station and associated work, the filing said. The Building and Factories vertical has also secured orders worth `416 crore from various customers. Major wins include those for construction of factory projects, and also include contracts for additional work from various ongoing projects. However, the company did not give the locations of the orders.

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DLF TO SELL MUMBAI LAND ealty major DLF is back in the market to sell it's prime land in Mumbai's Lower Parel area. The company is in close talks with a consortium of developers who have offered to pay `2500 crores for the land parcel. According to sources, consortium includes Mumbai-based developer Vallabh Sheth and Pune-based builder Avinash Bhonsale. A well diversified group with realty business may also join the group for funding purposes. The consortium of developers has offered to pay `2,000 crore over a period of two years and have offered to pay `500 cr in case the FSI (floor to space Index) is enhanced with necessary approvals. The Lower Parel land is a huge parcel of 17 acres with around 3 million sq. ft. of developable area.

Also in the race are Piramal Realty, Oberoi Realty and many other developers who have eyed DLF's property but the deal has not fructified as none of the offers have matched up to the valuation expectations of the company, sources said. The land parcel was bought by DLF from NTC for `700 crore in 2005.

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EMAAR MGF PAYS FOR CWG FLATS eveloper Emaar MGF has paid the contractual amount due to the Delhi Development Authority (DDA) following which the agency would release the flats from its possession. Thus, the long wait of buyers for the possession of Commonwealth Games flats seems to be over. â&#x20AC;&#x153;Emaar MGF has paid the conditional payment to the DDA and now it (DDA) will issue the power of attorney to the developer. The power of attorney is expected to be given in another few days", a senior Emaar MGF official said. Once Emaar MGF receives the power of attorney from the DDA, it can execute sale deeds in favour of buyers, officials said. Senior DDA officials also confirmed that the agency had received the money, a sum of over `19 crore from the developer, and would now issue a power of attorney soon.

Emaar MGF, which had built multi-storey towers in the Commonwealth Games Village, had been directed by the Delhi High Court to pay its dues to the DDA so that completion certificates could be issued to the flats. The court also asked the DDA to issue power of attorney to the builder once its pays the dues so that the possession of the flats could be given to the owners. The DDA had told the court that it had recently issued completion certificates to 26 towers and for four towers (numbered 13, 17, 31 and 36), it would issue the certificates once the dues are cleared. On the last date of hearing, the court had directed the DDA to expedite the process of issuing completion certificates to the flats, housed in 30 towers, at the earliest and keep four towers separately in the Village. The DDA was directed to keep four towers- 5 and 15 (Emaar MGF share), 26 and 29 (DDA's own share)- out of the total 34 towers to allot them to flat buyers, in case some flats were demolished due to violation of building bylaws. Till now, the DDA had been in possession of the entire project comprising 1,168 flats in 34 towers.

New Delhi

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GODREJ PROPERTIES’ SHARE PRICES UP all it a comeback phenomenon or a one off event, Godrej Properties’ issue of shares to institutional buyers closed with 17 per cent more bids than the 74.42 lakhs shares on offer. The company was looking to raise about `475 crore that would be utilised to cut debt and acquire realty projects. According to data available on the BSE, Godrej Properties received bids for 86,96,153 shares. The price band for the offer was `575-620.The Company intends to use the net proceeds to reduce its current debt of about `2,000 crore, acquisition of land development rights and general corporate purposes.

While talking to the media, Pirojsha Godrej, Executive Director of Godrej Properties said, “The funds will be used for the financial growth of the company. We successfully concluded the first IPP in India at the lower end of the price band, which is `575 per share, we will be raising about `470 Crore in the near future.”

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RAHEJA UNIVERSAL LAND PROJECT BLOCKED umbai-based realty developer, Raheja Universal, has put a 38-acre land parcel, which is part of its flagship project Raheja International Corporate City (RICC), including an IT Special Economic Zone in Navi Mumbai, on the block. Suresh and Ashish Raheja-led company, which pulled out its IPO, due to volatile market conditions two years ago, is now eyeing `450 to `500 crore through this land sale. Responding to media's query, Raheja Universal said: "RICC is our flagship project, part of which we are looking to sell to captive end-users. We will still develop rest of the land on our own and this will still be our flagship project."

RICC was proposed to be spread over total 138 acres with three phases and a total developable space of around 36.27 million sq. ft. The land parcel is located near Juinagar railway station and adjoining the National Highway 4. Property market experts in Navi Mumbai expect the land parcel to fetch a higher price, given its proximity to the highway and major commercial development around it. In a recent land auction conducted by the City and Industrial Development Corporation of Maharashtra (CIDCO), six land parcels totaling 16.7 acres at Ghansoli in Navi Mumbai were sold for `650 crore. Of the three phases, the developer has already started work at RICC-I and RICC-II, while construction has not started at the third phase. Navi Mumbai Work on RICC, with total saleable area of 20.35 million sq. ft., started in 2009 and is scheduled to be completed in phases by 2018. RICC was conceptualised as a corporate and IT park with office space for IT/ITES, banking, financial services and insurance companies, among others. The first two phases of RICC were earlier notified as special economic zones (SEZs) in 2007. However, the company later got the first phase partially and the second entirely de-notified in 2010. Based on its initial planning, the land earmarked for third phase that is proposed to be sold, was estimated to have a total developable space of 10.11 million sq. ft. and saleable area of 5.55 million sq. ft.

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FINANCIAL SERVICES OUT OF SAFTA TALKS ollowing strong objection from the Reserve Bank of India (RBI), the government has decided to exclude financial services from the SAARC agreement on trade in services. The Central Bank has argued that India has already allowed access to foreign banks under the World Trade Organization (WTO) agreement. The 8nation grouping which includes India, Pakistan, Bangladesh and Sri Lanka, is working to expand the region's free trade agreement (FTA) in goods, or SAFTA, implemented six years ago to include services and investments. The broad contours of the agreement are still being worked upon. "RBI has argued that it allows foreign banks to open branches in the country under the WTO agreement. There is no need for any bilateral or multilateral agreement over and above that," said a government official. India had committed to the WTO in 1997 to give 12 new branch licences to foreign banks every year.

RBI has so far exceeded that number. "RBI has also said that it is not in favour of India making any requests to other SAARC countries for opening up their financial sector," the official added. The other members of SAARC are Bhutan, Maldives, Nepal and Afghanistan. For the record, intra-regional trade under SAFTA has hit USD 1.4 billion. Another government official said that India's decision to exclude financial services from the services and investment pact could further impede its progress. "Some countries do not want to liberalise several services sectors as they fear India, which is the biggest economy in the region, will take advantage of its size," the official said. Four countries Afghanistan, Bhutan, Nepal and Maldives are yet to sign the agreement on services. India, however, is taking all steps to promote this agreement. It has decided to reduce the sensitive lists of items that it has excluded from the FTA in goods, especially for the least developed countries.

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GMR INFRASTRUCTURE TO DESIST FRESH PROJECTS MR Infrastructure has clarified that it does not want to take up any new projects on its own for at least a year. The company will spend time and effort in increasing cash flows from existing infrastructure projects. The Bangalore-headquartered developer of roads, airports and different utilities, which has a debt of around `25,000 crore, also wants to resolve issues related to different projects in partnership with government. "We don't need to continuously grow. We have grown enough in the last 10 years and now we need to shift gears. There is a consolidation phase. That's where we have reached now. We already have USD 5-6 billion of assets on the balance sheet which are operational.

“Another USD 9 billion of assets are under construction. So we would have a total of USD 15 billion assets on our balance sheet by 2014. That's a decent growth that we have achieved”, GMR group's CFO A. Subbarao told. Subbarao said that the company may look at some infrastructure projects in a "limited way", such as the Mumbai-Trans Harbour Link Project, for acquiring technical experience. "We will explore few projects through the joint venture route, where we can have small exposure. We will not put our capital and balance sheet to risk at this point of time," he said. GMR owns 16 power generation projects of which five are operational and 11 are under various stages of implementation. It also has 10 road assets, of which six are operational and four are under construction. The infrastructure company has developed and commissioned the international airport at Hyderabad. It is also operating the Delhi International Airport and the new integrated terminal T3. "We have grown enough in the last 10 years and now we need to shift gears. The need of the hour is to consolidate these projects, get cash flows from them, sort out all issues in partnership with government, the ministries or the bureaucracy," he added. Analysts, however, said that the biggest challenge for GMR will be to deal with mounting debt even as cash flows remain low. GMR's power generation capacity has been severely hit by lack of fuel linkage. While it’s existing 387-MW gas-based power plant is running at a 40% capacity due to a fuel shortage, a new 220 mw project is yet to get gas linkage.

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ASK PROPERTY INVESTS IN MUMBAI SK Property Investment Advisors, the real estate-focused private equity (PE) arm of diversified financial services company ASK Group, has invested `40 crore in a Pune project being developed by Paranjape Schemes (Construction) Ltd. The investment is the last transaction from its `326 crore first fund, ASK Real Estate Special Opportunities Portfolio-1. In the first investment from its new, second fund, it has deployed about `100 crore in a residential project in Mumbai, said CEO and MD, Amit Bhagat. “The fund will continue to invest in mid-segment, mid-sized residential developments in the top five cities like Mumbai, Bangalore, Chennai, Pune and Delhi-National Capital Region,” said Bhagat.

He added that the fund is in no hurry to close deals, but is exploring various opportunities and looking at prospects amid sales slowing considerably in recent months. The Paranjape Schemes investment is from its first domestic fund, which was raised in 2009. Six investments have been made from the fund earlier and this would be the third in Pune. The investment is also unique for ASK because it’s being marketed as a signature, luxury project, a space the fund typically doesn’t invest in. Bhagat also said the second fund from which this deal has been closed has already raised a substantial money so far, and will continue to raise another `300 crore of capital through a green-shoe option, which allows it to retain demand overflow. ASK, in a recent report on the Pune real estate market, said property prices are expected to remain firm with an upward bias in growth corridors. Shrikant Paranjape, Chairman of Paranjape Schemes, said the Pune project is one of the few developments in the heart of the city. The partnership with ASK will improve agility, he said. Realty-focused funds have been in investment mode for the past one year and are likely to continue that way, with almost every developer tapping both PE fund and non-banking financial companies to raise capital for a host of reasons including land payments, debt repayment and even project development. Real estate funds in India, both veterans and new fund entrants, are trying to raise around USD 4-5 billion of capital from both domestic and offshore markets, of which a larger chunk would belong to overseas capital. ASK Property is also raising its first offshore fund, which will be in the range of USD 250-300 million. The new fund will largely look at investors in South-East Asia, West Asia and Africa.

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SIGNATURE CONCIERGE SERVICES’ TO ENHANCE THE LUXURY LIFESTYLE EXPERIENCE unteck Realty, a leading premium real estate developer, in association with Vertu, market leader in luxury mobile phones announced the launch of ‘Signature Concierge services’ for the residents of Signature Island. Sunteck’s Signature Island, the flagship project of the company is located in the heart of Bandra Kurla Complex, Mumbai. The concierge services will be accessible through the Vertu Signature & Constellation handset in each apartment and a dedicated ‘Signature concierge services’ desk at Signature Island. An ultrapremium luxury project, Signature Island, will be home to top honchos of the corporate world. Signature Island, with developable area of over 1 mn sq.ft, is an iconic landmark at Bandra Kurla Complex (BKC) that makes for an enviable residential address for the discerning few. Speaking on the announcement, Mr Kamal Khetan, CMD, Sunteck Realty, says, “Signature Island apartments have been meticulously designed to cater to the lifestyle preferences of its residents and provide unparalleled luxurious living spaces. To give a complete experience of luxury, we started with the best location and engaged the most esteemed and renowned partners to deliver an ultra luxurious project. The association with Vertu reiterates Sunteck’s endeavour to bring world-class amenities at Signature Island.”

Mr. Gordon Watson, Head of Vertu Europe, Middle East, Africa and India, says, “The Vertu concierge service is a manifestation of the luxury lifestyle that Signature Island reflects. Our Concierge service will enable the residents of Signature Island to experience exclusive lifestyle without having to actually arrange it themselves.”

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NEPTUNE LAUNCHES SECTOR IV OF ITS HOUSING PROJECT eptune Group, a company with diverse portfolios of real estate developments, has launched Sector IV of its affordable housing project Swarajya in Ambivali near Kalyan.The apartments for Sector IV opened with an introductory price of `18 lakhs onwards.

Sector IV is a follow up to Sector I and II of the project that had been launched in March 2009. The project has received an overwhelming response till now with most of the apartments in the previous two sectors already being sold out. Swarajya is spread over 150 acres and has 10,000 apartments to accommodate close to 50,000 people. The integrated township that aims at providing a home-to-all in the vicinity of the city of Mumbai has a proposed school, retail outlets at convenient locations and dedicated market space. It is a 10-minute walk from the Ambivali railway station. Speaking about the project, Mr. Nayan Bheda, Chairman, Neptune Group said, “We at Neptune Group believe that your dream home should not be out of reach for you. We have created Swarajya to give residents a sense of attachment and personal environment as they get some good space to live in.” In Sector IV, residences will be available in 1 BHK and 2 BHK with a carpet area of 360 and 505 sq. ft. Following the success of Sector I and II, on popular demand, the area of the flats in Sector IV has been increased. There will be more sectors coming up and the entire project will be completed in five years.

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CASTRO & FILHOS LAUNCHES WOOD FLOORING EARTH ICONIC LAUNCHED IN GURGAON elhi-NCR-based realty major Earth Infrastructures Ltd. launched its yet another ambitious project called Earth Iconic at Sector-71 in Gurgaon. Spread across 3.75 acres of prime landscape and set within the increasingly popular concept of commercial mixed land use, Earth Iconic offers retail shops, entertainment zone, food courts, studio apartments and unfurnished office spaces as one facility. Some of the other highlights of the project include bank ATMs, restaurants, fully AC shopping galleries and basement parking zone. It is strategically located at the 60m wide sector road which will enjoy the connectivity to the proposed metro phase II and 150m wide link road. Surrounded by best residential projects, Earth Iconic also has connectivity with Southern Periphery Road, besides being in close proximity of Sohna Road which will surely attract the maximum footfall of the residents staying in close vicinity.

Earth Iconic is not only a commercial project with office space but also has a space for recreation, shopping, entertainment and a home. Developed with 60% open landscaped area and 40% construction area, the project consists of retail shops at ground and upper ground levels, office spaces at second floor to fifth floor and fully furnished serviced studio apartments from sixth to eleventh floor. The sizes of retail shops vary from 250 sq. ft. to 650 sq. ft. The office spaces and studio apartments are of 450 sq. ft. each. The project is being designed by the international architect BDP. The project is designed with all the latest techniques which will ensure the low cost management of the building for the occupants.

ooden flooring is the latest trend in interior designing and everyone wishes to get the best of it for their living spaces. NLDK Timbers Pvt. Ltd., the leading company in timber trade has partnered with Portugal's most premium hardwood flooring brand Castro & Filhos to bring them in India.

The flooring range from Castro & Filhos not only promises to accentuate the beauty of your home with its unique look and style but is also safe and will not cause any allergies. Being natural and solid wood products these are also shock and scratch resistant as the wood has inherently good acoustic and thermal insulating properties. The range is available in a variety of designs and is sure to spell magic to the interiors. Premium quality woods from Africa, America, Brazil and Europe are being sourced to produce fine and beautiful floors in various designs and colors. The company focuses on the selection of finest raw materials, a straight internal control of the output quality is on priority, there is regular upgradation of the equipments and machinery and the production is taken care by specialised technical teams. â&#x20AC;&#x153;It is a matter of immense pride to get Castro & Filhos, one of the leading manufacturers of hard wood flooring in the world, to the Indian market. We aim to provide world class finished products to our customer and live up to their expectations, making it a huge successâ&#x20AC;? says Mr. Jatin Pasricha, Managing Director, NLDK. Along with producing world class floors, Castro & Filhos puts special emphasis to a variety of investments that has been taken out in order to guarantee the total fulfillment of the environmental norms and the safeguard of the security, health and hygiene of the workers. They also focus on upgrading and renovating of the vacuum cleaning system in all the industrial areas.

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EQUINOX LAUNCHES WATER’S EDGE ITS FIRST PREMIUM RESIDENTIAL PROJECT IN INDIA quinox Realty announced the launch of Water’s Edge, their maiden premium housing project in India. Located across Nagavara Lake at Hebbal in Bangalore, this project marks the foray of the company into the residential segment. The project is being implemented with the best in class features and technologies; it features internationally acclaimed architectural and services consultants for efficient planning and design. Water’s Edge is an ideal abode for people who want to experience luxury lifestyle together with all urban conveniences. Speaking on the launch of the project, Mr. Cherag Ramakrishnan, CEO, Equinox Realty says “We have always strived to be known for our differentiated and quality product offering rather than volume of our business. So Water’s Edge has been conceived and planned to offer a perfect blend of luxury and design matching to global standards. This is our signature residential project and our stress on quality and finesse is intended to provide an enhanced user experience to our clients. It is this focussed approach which will cement our place in a competitive market. While most people sell dreams, we are already building it and want to share it with the people.”

The proposed project has the total development spread across approx. 8 acres and it will include a total of five high-rise residential towers which will be among the tallest buildings of the city. These buildings will house elegantly planned apartments (3 BHK onwards) with lifestyle elements such as provision for Jacuzzis and options of upgrades in internal finishes.Other key features of the project include extensive sports and recreational facilities, high end club, multiple parking levels, eco-friendly elements, a 4 tier security system and top notch property and facility management services. The area around Hebbal Lake and extending into the Outer Ring Road towards Nagavara is a preferred location as it offers many positives.

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TATA HOUSING’S RETAIL INITIATIVE WITH GOODLIFE ata Housing Development Company, the real estate arm of Tata Group, has brought in its first pan-India retail brand 'GoodLife', which is designed specially to bring mall culture to urban localities, where there are no malls.

The company will be introducing the brand as a part of its 65-acre integrated township project in Boisar in the neighbouring Thane district. "GoodLife is much more than a collection of shops with basic infrastructure and a conducive shopping environment, which are planned to fit the locality and geography, into which, it is built," Tata Housing MD, Mr. Brotin Banerjee, said in a statement. GoodLife will take shape into a hypermarket, which will cater to daily requirements of the township by offering a range of products, such as apparel, accessories and services like a bank branch, ATMs, salon, restaurants, a café and entertainment - customised as per the requirements of the customers. "We are confident that our retail initiative will become a destination shopping experience in suburban locations like Boisar and beyond. Along with entertainment and diverse cuisines for the family, GoodLife is the refreshing experience that customers and retail brands have been waiting for," Banerjee added.

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MAHAGUN LAUNCHES MEZZARIA IN NOIDA Mahagun India (P) Ltd., one of the leading developers in Delhi NCR, after catering to the needs of the masses and classes is now all set to launch one of its most awaited luxury projects – Mahagun MEZZARIA in Sector 78, Noida. The aim is to deliver a project that would redefine the luxury in real estate market of Delhi NCR. In Mezzaria, Mahagun is coming up with a concept of having homes high above the ground. The apartments will be built around 25 feet above the ground level and the area below these flats will give a feeling of openness and bring in a lot of natural light. “At Mahagun we have always tried to make sure that people should live their dreams of spending life in an area that offers them a perfect ‘reel world setting’. The abodes here along with the surrounding manicured greenery will add zing to the stressed lives of people and will force them to spend as much time as possible inside the project. We have also made it a point that people should enjoy clutter less surrounding that is why we have very low density in this project. There would be only two homes per floor in most of the blocks,” says Dhiraj Jain, Director, Mahagun India (P) Ltd. In this project units will be available in 3 BHK (2350 and 2850 sq.ft.), 4 BHK (3200 and 4150 sq.ft.) and 5 BHK (4570 sq.ft.). Coming up at a location that is surrounded by the developed areas, it is designed by internationally renowned architect Hafeez Contractor and will be a certified green building conforming to the ‘Gold’ standard. “We will make sure that all the aspects for green building are adhered to. The units will have optimum utilisation of natural light with insulated roofs in each block for energy conservation. We will have solar powered lighting in landscaped and open areas among the many other facilities that will add luxury to the lifestyle in eco-friendly manner. The project will have wheel chair ramps to cater to the needs of aged and differently abled people. With Mezzaria our endeavour is that everyone should enjoy luxury irrespective of age,” adds Jain. Mahagun has significant presence in real estate services primarily in the areas of residential and commercial. The world class projects developments offered by the company have created a new level of excitement amongst the people. Mahagun has successfully completed projects like Mahagun Mansion, Mahagun Maestro, Mahagun Morpheus, Mahagun Villa, Mahagun Manor, Mahagun Mosaic, Mahagun Maple, Mahagun Mascot, Mahagun Metro Mall and many more.

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‘GOLF COUNTRY VILLAS’ NCR’S most sought after, golf centric development on Yamuna Expressway – Property Observer Desk upertech Limited performed the bhoomi poojan of Golf Country Villas. The ceremony marked the commencement of construction of the villas located at Yamuna Expressway. The bhoomi poojan was performed by Mr. R. K. Arora, Chairman & Managing Director, Mrs. Sangeeta Arora, Joint Managing Director, Mr. Mohit Arora, Director, Supertech Limited. The occasion was attended by the customers and officials of Supertech Group. Speaking on the occasion, Mr. R. K. Arora said, “We have always believed in offering something different to our customers, so with the construction of villas, we have tried to provide a healthy and relaxed living in the surroundings of a golf course and amidst green environment.” It is planned as ‘modern urban development on the concept of live, work, play and learn.’

Golf Country is a 100 acre township, which comprises of individual plots, villas and high rise buildings. A large number of plots have already been booked. The key features of the project will be 9-hole golf course, shopping mall, club house, hospital and school etc. The whole township is accessed via 24m wide CC road marked by pedestrian pathway and shaded tress. An integrated landscape including water bodies enveloping eco-friendly architecture created in compliance with vaastu . The entire infrastructural development is being planned through underground ducts. The entire campus is Wi Fi enabled and stands strong with a 3-tier advanced security system. Besides these, it has environment friendly waste disposal system and sewage plant within an independent rain harvesting unit to ensure maximum recycling of water. The environmental balance works in favour of Golf Country project which is further enhanced by the existence of 200 acres of dense forestry.

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WORLD RESIDENCY, INDIRAPURAM eal Anchors Group of Companies, a leading real estate developer performed the bhoomi poojan of its new project ‘World Residency’- the new premium luxury apartments are located at Shakti Khand IV, Indirapuram. This is the most occupied and fully developed area in NCR and enjoys the neighbourhood of shopping complexes, elite schools, hospitals and decent residential societies.

The pooja ceremony was performed by Mr. Sanjay Singh, Chairman, Real Anchors Group of Companies, Mr. Sanjeev Kumar, Director, Real Anchors Group of Companies. After the auspicious ceremony of bhoomi poojan , the guests were enthralled and entertained by the pleasant performances by international artists on piano, saxophone and keyboard. There was a corporate presentation of the Group Company followed by a lavish lunch. The company was established in 1997 as a consultancy company providing real estate services to Indian corporate and MNCs. ‘Real Anchors’ handles real estate investment portfolio of HNI's and corporate. In a short span of time, the company handled biggest commercial deals in NCR. Real Anchors diversified into development of some of the finest residences in South Delhi and provided consultancy services to leading developers to develop Delhi's best and most modern commercial districts at Saket and Jasola.

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OMAXE TURNING

dreams

INTO REAL(I)TY

As a premier real estate company, OMAXE Ltd. has proved its mettle in the ever burgeoning real estate industry of modern India. By far, it is a huge name to reckon with, in a generation of the most innovative real estate developers. The company’s slogan, “Turning Dreams into Reality” is epitomised by the translation through several projects throughout the country. It’s endeavour to become the most progressive name can be seen through various constructions be it Malls, Commercial or Residential projects, which are in excellent position. The company’s vision to work towards making India a developed nation stands at the threshold of success, writes Yogesh Sood. THE GAME CHANGER

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wenty-two years after it was incorporated, Omaxe Limited has emerged as one of the most diversified conglomerates in real estate and infrastructure development. Growing by leaps and bounds, Omaxe now has a presence in 40 cities across 12 states in India.

In today’s world, when the media is abuzz with the names of several realtors, who claim to be scripting a success story, Omax has already achieved it. Among the shining names, few realty companies have been working quietly but steadily and excelling towards delivering international standard architectural projects which are truly global. Omaxe not only existed, but rather excelled and experimented in conspicuously distinct and internationally acclaimed way. Omaxe Constructions Ltd. (OCL) is one of the brightest stars in real estate’s horizon. To its credit, the company has successfully delivered several projects, ranging from housing plans to the state–of–the art international standard integrated townships, specialty malls, commercial complexes, multiplexes, resorts, hotels as well as service apartments. Now, the company has diversified into IT parks, bio-parks etc. The company’s ultimate dream is to make the country’s infrastructure simply world class. The company is currently working on 42 real estate projects — 18 integrated townships including a Hi– Tech Township, 14 Group Housing Projects, 8 shopping malls and commercial complexes and two hotel projects. The company posted consolidated net revenue of ` 1522 crore and net profit of ` 92.7 crore on consolidate basis in the fiscal 2010-11. As a premier realty major, Omaxe has been forging ahead to greater heights. The reason behind the company’s phenomenal growth has been due to its unwavering commitment to quality, integration and value creation. From a humble beginning as a contracting company over two decades ago to a blue chip ISO9001: 2000 certified company, it has surged

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“

Omaxe’s focus has been on becoming the most progressive name in real estate industry. An added advantage is our ability to deliver quality, professionalism and ethical values.

ahead of its near rivals. Today, perhaps, Omaxe is the only Indian company with Dun & Brandman 5A2 Rating. Omaxe takes pride in being a real estate development company which has successfully turned the dreams of the millions across the country into a reality. Way back in 1987, the company was a family-owned and run by CMD Rohtas Goel and his brother Sunil Goel. The company’s genesis goes back to 1989 when first generation entrepreneur and civil engineer Rohtas Goel founded Omaxe Builders Private Limited to undertake construction and contracting business and completed 123 projects till date for several reputed companies. The company’s initial projects included Apollo Hospital, Coco-Cola, Pepsi, LG, Amity University, Samsung, Wave Cinemas, Bennet Coleman and Co. and Electrolux which helped Omaxe gain recognition from a construction company to a premier organisation that stands on quality and trust within the sector. Way back in 1999, the company changed its profile to a limited company known as Omaxe Construction Ltd.

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`lsbo=pqlov Finally, the company was rechristened as Omaxe Limited in 2006 and listed on Indian bourses (BSE an NSE) in 2007. Encouraged by its landmark IPO which was oversubscribed 68 times, the company is now one of the largest listed real estate development companies in India. True to its slogan “Turning Dreams into Reality “, Omaxe has delivered over 63.67 million sq. ft. since its inception, 30 million sq. ft. of construction projects and 33.67 million sq. ft. of construction projects and 33.67 million sq. ft. it delivered and offered for possession of its real estate development. The company diversified into infrastructure business in 2006 through its wholly owned subsidiary Omaxe Infrastructure and Construction Ltd. (OICL).

The government has been actively pursuing the policy of developing infrastructure in the country and the coming decade has rightly been touted as the ‘Decade of Infrastructure.’ Sensing an opportunity, OICL aspires to enter the new segments of infrastructure business in segments like highways, Airport modernisation, railway freight corridor, power plants, modernisation and construction of ports etc. The company has been gearing itself for bigger challenges ahead and accordingly, strengthening the requisite skills and expertise to execute bigger projects. In 2010, the company forayed into highways and bridge construction. In this vertical, the company has bagged 14 projects, which comprise EPC contracts for roads and bridges construction.

The inherent advantage of an established brand name, a strong presence in tier II and III cities and consistently strong financials made the transition easy. Since the company started its business as a construction company way back in 1989 and executed more than 120 projects, this experience made the transition all the more easy.

Omaxe stands tall on the foundation of its core values, namely delivering homes, offices, retail spaces, townships and other infra facilities to millions of people across India. In metros, Omaxe has made a mark of its own with some landmark projects and engineering marvels.

Over the years, the company has developed a strong team under the leadership of Rohtas Goel. The company, through its dedicated and expert team of professionals has gained business expertise in operation, maintenance and marketing of PPP projects, ensuring timely completion. OICL has been executing projects in states like Punjab, Uttar Pradesh, Odisha(far–flung Cuttack) and the hilly terrains of Jammu and Kashmir. The company has constructed and handed over the township at Dariba in Rajasthan, awarded by Hindustan Zinc and Vedanta Group. Among the major works which are under implementation include construction of AIIMS, Rishikesh, Manyavar Kanshiram Allopathic College and its associate hospitals at Saharanpur in Uttar Pradesh, residential complex at Indore in Madhya Pradesh, Nagrota (Jammu and Kashmir), Nashik (Maharashtra) for Defence Personnel and construction of modern jails in Punjab.

Omaxe’s uniqueness lies in the fact that the company keeps pace with the progress in the construction technology and is working with the finest architects. Over the years, the company with its unique technical expertise and innovative ideas made a huge difference in Indian construction industry. Not only Omaxe is a profit-making company but, over the years, it has been fulfilling its Corporate Social Responsibility (CSR) through Omaxe Foundation, which works for the empowerment of children of construction labourers.

A Progressive Name in Real Estate “Right from the inception”, says Rohtas Goel, “The company has also assiduously strived towards delighting its customers with quality construction. Most importantly, Team Omaxe works towards building a reputation in the field of commercial, residential, housing, institutional and industrial construction. The success mantra of Team Omaxe is adopting and adapting to the cutting edge technology with ethical values.”

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Today, Omaxe Group has over 2,000 professionals who are working towards a common goal of taking the company to newer heights. The company comfortably delivers quality projects in a minimum time frame. While doing this, the professionals adhere to stipulated time. Herein lies the company’s forte which gives the company an edge over other construction companies. As a pioneer, it offers a penalty clause, introduces the concept of sample flats and also brings in theme malls, especially related to wedding. Omaxe also has been the first company to come out with ready-to–move home sets with fully furnished rooms. The company has an impeccable record of carrying out environmental protection measures with rigorous implementation of norms at all its sites. Surely, that’s why Omaxe is one of the frontrunner companies of the multi–billion Indian real estate sector. The company’s core strength also lies in its marketing strategy with three tenets, namely quality, affordability and delivery. The company has gained a very high trust in the market through its deliverables and customer-centric policy. Omaxe has big plans to spread its wings across the country with unique development called Omaxe Cities. Rohtas Goel says, “The Indian real estate is presently going through very challenging phase in the NCR and markets like Mumbai attribute to the oversupply scenario. The customers’ preference there is closely towards the ready-to-move homes, so that minimum time is wasted in making a choice for buying their home. However, in tier-II and tier III cities, there is a very good realty demand as these destinations promise substantial growth opportunities. Besides, the mid-housing segment will continue to get maximum attention and would primarily drive the sector in the coming years. Rightly so, it is time that the reforms in land acquisition, review of FDI policy for the retail, single-window clearance, streamlining of the stamp duty laws are the need of the hour to facilitate real estate developers to meet the demand-supply gap”. According to the company sources, Omaxe is executing close to 40 projects spread over 33 cities and 9 states. In 2012, some new launches are planned for Chandigarh, Lucknow, Faridabad and Yamuna Nagar. At Chandigarh, the company owns close to over 600

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acres of land and had already launched and sold project on more than 150 acres. Gradually, more area will open for sale. Similarly, for Lucknow, the company has already delivered two projects successfully in past and is presently working on an integrated township on 102 acre and hi-tech township on 2,700 acres.

Moreover, there are in all seven new projects in the pipeline to be launched during 2011 and there could be a need to raise fresh debt to the extent of ` 3 billion for these new projects put together. By the end of the fiscal 2012, the company’s gross debt will reduce from Rs. 15.52 billion to ` 12.3 billion approximately.

The current book value could lead many spellbound. Omaxe has got access to over 5,000 acres of land including approximately 145 million sq. ft. of saleable land for future developments. However, part of it, around 22.66 million sq. ft. will be completed in FY 2011 and another 17-18 million sq. ft. by FY 2012. The company is gradually adding land in cities like Lucknow, Chandigarh and Allahabad where it already has ongoing projects. Omaxe’s subsidiary, OICL has order book of ` 14.4 billion as on date and is executing 15 projects.

Talking about the rising interest rates for home-buyers, he further says, “For Omaxe, the impact would not be significant for the only reason that our sales price are within the pocket of the common man. The average cost of a 1,700-1,800 sq. ft. unit is anywhere between ` 20 lakh to 30 lakh which professionals, salaried class, trader and agriculturist can afford to purchase. In tier II or tier III cities, the hike in the interest rates will certainly have an impact on investor demand. As far as end–user is concerned, a hike of say 50-100 bps won’t matter as the loan is for 15-20 years and accordingly, the benefits will also get spread. For a tier-I end-user, the loan hike will impact his decision-making process.”

But then the moot question is: How is the company planning to raise up to ` 6 billion for new projects? The ebullient CMD says, “The Company has proposed to pass a resolution to raise fresh capital to the tune of ` 6 billion from market. But the exact amount to be raised will depend upon market conditions prevalent at that time. We are in no dearth of capital and our business accruals are sufficient enough to maintain growth. The company needs to mandatorily bring the promoter stake down by approx.14 per cent from present 89.14 % to 75% or less. It will explore possibilities for raising fresh debt for the new projects as and when required.” Industry watchers also ask how Omaxe plans to cut its debt by 25%. However, Goel clarifies that Omaxe has scheduled debt repayment of ` 6.25 billion for the FY 2012. It is comfortable to repay this liability from its robust internal accruals.

Giving more details, the realty major adds, “For the investors in real estate, the safest bet would be to go in for a plotted development. Although, it would not generate recurring income, say vis-a-vis on an investment made in purchasing a flat. Indeed, if someone is going for an additional loan to purchase second property, then they may go for the ready-tomove project of any branded developer, whose track record of delivering flat on time is impeccable: one can go and safely park his/her investment there. As far as price correction is concerned, I think the ready-to-move projects don’t have any scope of price reduction. For the NCR region, the issue is not as much about prices but huge supply which can make the market vulnerable.”

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The NRI City Today, Omaxe enjoys the brand equity as a trustworthy company. The most hyped project that the company has delivered includes NRI City, Greater Noida that makes Omaxe proud. It is an integrated mini-township with its world class ambience and top-ofâ&#x20AC;&#x201C;the line features. Located in Sector Omega II, NRI City is spread over 85 acres. The project comprises of villas, individual plots, multi-storeyed apartments, penthouses with shopping mall, a commercial centre, schools and hospitals in a clean pollution-free environment with easy connectivity to Delhi via the Expressway. The NRI City is a premium project with world class infrastructure that Greater Noida provides. The idea behind launching the project is to offer best features and facilities at par with those available internationally. Omaxe keeps the NRI customers updated through either web or phone. For the high-profile NRIs, there is the NRI City of Omaxe. Then there are high-end premium and luxury condominiums; the 85 acre township with over 600 plots, choice of multi-storeyed flats, wide roads. Schools and hospitals are some of the USPs, which made the project a preferred choice of the NRIs and got sold out in no time after the project was launched.

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Another feather in the cap of Omaxeâ&#x20AC;&#x2122;s completed project is The Forest Noida, a luxury project. The Forest in sector 92 Noida is designed exclusively for 105 High Net Income (HNIs) group. Built on an earthquake-resistant structure, all apartments and penthouses at The Forest either face a green reserve forest or the Central Park. Each apartment has centrally air-conditioned facility and consists of a living room, lounge and dining room besides 4 bedrooms with servant room. The residents have got an in-built health club in the master bedroom fitted with sauna, stream bath, Jacuzzi and a shower cubical.

Omaxe Heights Besides these projects, the company has also expanded in real estate developments in smaller towns of North India. Its Omaxe Heights, Lucknow project, located in Gomati Nagar has gained a reputation of its own. The project offers apartments and penthouses; it is a blissful enriching experience for the residents. The proud owners of Omaxe Heights can choose either 3 BHK apartments, 3 BHK apartments with servant room or 4 BHK penthouses offering modern conveniences and facilities. For the residents of Omaxe Heights, huge parking spaces, environment-friendly, lush green landscaping with water bodies around make it an experience.

COMPLETED PROJECTS

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Omaxe Connaught Place Recreating the iconic Connaught Place, one of the Asia’s most popular shopping destinations, is the high point of Omaxe’s project which is spread over 15 acres in Greater Noida. Popularly called Omaxe Connaught Place (OCP), it will be a premier iconic commercial landmark. The structure is designed by the renowned Hafeez Contractor and constructed by Larsen and Tubro. It consists of retail office and hotel facilities. A new age, post-millennium lifestyle facilities for the residents of the NCR, OCP will enjoy other advantages like vicinity to the proposed international airport, quality infrastructure of Greater Noida and growing preference of consumers staying in integrated and fully landscaped townships in Greater Noida. Synchronizing with the best resources from the world over, OCP has been conceptualised as a structure that is best in its class, an architectural and customer satisfaction landmark with the state-of-the-art design. OCP is expected to be ready for possession within 12 months with the office tower almost ready for possession. The state-of-the-art space is a testimony to the quality and trust that has been reposed by the investors and customers of Omaxe who have been associated with the company for the past several years. Several international brands like KFC, Pizza Hut, Costa Coffee, Puma and Reebok have already been signed as

retail partners. The strategically located OCP will cater to the vast populace in the NCR region. With multiplexes and entertainment zones already in habited area surrounding OCP, it will get an added boost. An investment in OCP offers an astonishing 158 per cent returns. The strategic and attractive location of the OCP signals good investment opportunity. The company is offering 14 per cent per annum commitment charge in the first two years and subsequently, 13 % per annum through lease and rental in the next 10 years. The minimum payment for this scheme has been pegged at ` 21 lakhs, with ` 3.15 lakhs as the booking amount and the rest to be paid within 30 days. The return period is 12 years through assured lease. The selling right to an investor has been assigned from the very first day. What differentiates this scheme from other instrument is that it doesn’t have a lock-in period.

UPCOMING PROJECTS

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According to Rohtas Goel, “An assured return of 158 % is the best any developer or for that matter, any investment instrument will offer at this point. OCP already has many reliable investors. We are sure that with such an attractive offer, investment in OCP is an offer of a lifetime.” The lack of quality commercial properties in Delhi-NCR makes OCP a sought after project. According to the Department of Industrial Policy and

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Promotion (DIPP), the inflows in single brand retail trading during April 2000 to September 2011 stood at US dollar 44-45 million. The commercial retail estate is showing a sign of revival as the government has already relaxed FDI norms in single brand. The realtors are also hopeful that the day is not far when relaxation in the FDI multi-brand retailing sector will happen. The industry is optimistically looking at multi-brand retail FDI as the next big thing to happen. Unfortunately, in the real estate retail sector, there has been a slowdown in space utilisation in the IT/ITeS, banking and financial services. OCP offers investors to multiply their investment. The other prestigious projects undertaken by Omaxe Ltd. include SpaVillage, Faridabad, Palm Greens, Greater Noida, Grand Woods, Noida, Omaxe Royal Residency, Ludhiana, Omaxe New, Chandigarh, Omaxe Eternity, Vrindavan, Omaxe Waterfront, Omaxe Mall, Patiala, Omaxe City Centre, Gurgaon. Omaxe Grand Woods is located in sector 93B, Noida. This residential project offers world class infrastructure and facilities like swimming pool and other modern amenities. The project offers 2-3 BHK apartments in 1110-1940 sq. ft. which is a modern day integrated township range.

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The New Chandigarh City Omaxe New Chandigarh project near PGI Chandigarh will be an integrated township project. It will be the first eco-town of Punjab. The New Chandigarh City would provide more space to new development with better planning and well connectivity to Chandigarh. The project enjoys the vicinity of the upcoming metro line and bus terminal, Sarangpur Industrial area and is at a stoneâ&#x20AC;&#x2122;s throw from PGI Chandigarh, making it a very attractive destination for the investors. The township is also home to Punjabâ&#x20AC;&#x2122;s tallest commercial hub, India Trade Tower. The township offers an array of high lifestyle options in both residential and commercial investment opportunities. The township has got independent plot or 3 BHK+Utility independent floors packed in a perfectly planned concept of G+2 living. The township boasts of an infrastructure including educational institutions, healthcare, hospitality, landscaped gardens, jogging track, children park, underground drainage, medical facility, club with ultra modern facilities, to name a few. A rejuvenating view of the Shivalik Ranges and lush Botanical Gardens makes the environs pollutionfree and clean. Omaxe now stands for steady and competitive innovations, aesthetic design and above all, adopting quality systems that match any international standards.

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`lsbo=pqlov From a humble start in 1989, Omaxe Ltd., a listed real estate and infrastructure conglomerate, has emerged as a name to reckon with. With a slew of completed projects that have now become landmarks, Omaxe has never stayed away from innovating and creating products which offer its customers value for their money. In its motivational and legendary promoter and Chairman Rohtas Goel, who has given Omaxe a direction and vision, the company has almost doubled its turnover between 2009 and 2011. Rohtas Goel, founder of Omaxe Group, is a civil engineer who started his professional career with a private construction firm and later undertook his own entrepreneurial journey. He is a widely recognised and trusted name in the real estate industry in India with a Pan-India presence. Nurturing it from a construction house to a renowned infrastructure conglomerate, Omaxe has grown by leaps and bounds under his dynamic leadership. He is a visionary and among the first to diversify his business into Tier II & III cities where he saw huge potential to be tapped and demandsupply gap to be bridged. The pace and growth in number of projects over the last few years proves the increasing confidence of the people and the market in brand Omaxe. As a true leader, Mr. Goel believes in giving direction rather than keeping distance from his workforce. Throughout his entrepreneurial journey, he has led astutely and motivationally a strong and talented workforce that strives hard each day to build Omaxe into a bigger brand. Mr. Goel has been successively elected twice as the President of National Real Estate Development Council (NAREDCO), an autonomous self-regulatory body, under the aegis of Ministry of Housing and Poverty Alleviation, Government of India. A prominent voice in the real estate industry, Omaxe is also a member of several industry bodies like CII, FICCI etc. Excerpts from an exclusive interview with Rohtas Goel CMD, OMAXE Ltd. to Yogesh Sood.

Q: Omaxe is one of the largest real estate companies with dominant position in North India. How has the journey been so far? A. The journey from a construction company to one of Indiaâ&#x20AC;&#x2122;s largest real estate companies has been eventful. With several firsts to our credit, we have marched ahead with the purpose of providing quality housing to the people. Innovation, technological upgradation and world-class lifestyle are the hallmark of Omaxeâ&#x20AC;&#x2122;s projects. And the continuous faith reposed by our customers has encouraged us to push the envelope further. With a successful IPO in 2007 and our venture into infrastructure business has further strengthened our credentials, financials and exposure. Today, we aim to be a part of the lives of every Indians, make a difference in their thought and fulfil their aspiration and dreams. Our well-thought out strategy of entering the small towns not only reaped huge benefits for us, but also helped us contribute our bit into bridging the housing gap of the ever-growing middle class. Q. Omaxe broke the citadel of regional and small real estate companies in several cities of North India like Vrindavan, Lucknow, Jaipur, New Chandigarh, Indore etc. What strategies did you adopt? A. Our entry into tier II and III city marks an interesting story. After carving a niche in Delhi-NCR with projects like NRI

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City, Greater Noida; The Forest, Noida etc, the transition and migration to cities such as Vrindavan, Lucknow, Jaipur, Allahabad, New Chandigarh, Indore etc was natural and obvious. My journey through these cities during the early days of my entrepreneurial life made me realise the huge potential that lay untapped. So, during 2007-08 when financial crisis hit Indian shores and real estate scenario worsened in metros, funding became difficult and properties found no buyers, we made a conscious decision to tap cities like Lucknow, Jaipur, Vrindavan etc. However, the going initially was tough as smaller players had a stronghold that seemed difficult to breach. However, with the reputation Omaxe had built over the years as a successful, reliable and quality real estate company; our projects with quality and affordability found takers and we emerged stronger. Q. Do you see tier II and III towns emerging as potential real estate destinations? A. Yes. These cities have deep pockets. With lots of development, prosperity, disposable income and dream of a better lifestyle, the urge to possess and replicate metro-like lifestyle is very much visible. Besides, salaried people in these cities look for post-retirement homes in these cities. Property rates in Lucknow are now comparable to Noida. Indore is

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`lsbo=pqlov another city which is fast emerging as the hub of IT industry with TCS and Infosys planning to open offices there. This will be a huge boost to the already booming residential space. Besides, emergence of nuclear families is also creating a lot of demand for residential and hence commercial space. Allahabad and Varanasi are catching up with the development level of Lucknow, but aspirations of the people remains high. The next five years will see a huge shift with development and scope for employment generation fast emerging. New Chandigarh is a delight with people coming from far-off cities and dream of a lifestyle similar and comparable to the planned development of Chandigarh. Accessibility is a major factor that will propel New Omaxe Chandigarh’s demand. Q. How do you see the real estate scenario at this moment?

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as an important component of economic growth. With Government moves, fresh investment in this area is beginning to flow. And, with returns on the rise, banks and financial institutions are shrugging off any scepticism. The oversupply created over the years still has a slight hangover. After IT/ITeS, Banking and financial sector, retail could be the next big thing to happen for the commercial space. However, the global uncertainty has a flip side as well, considering that these countries will outsource more and more work to India, thereby giving a flip to the commercial segment. In locations where we are present, our commercial properties have found good response, especially in tier is offering 158% II and III locations like Ludhiana, assured return which enAmritsar, Lucknow etc.

tails 14% per annum commitment charge in first two years and subsequently, 13% per annum through lease rental in the next 10 years.

A. Presently, real estate scenario is at crossroads. Events in the past like rising input cost and persistently high interest rate have made it difficult for buyers and developers alike. Liquidity, too, remains tight. With CRR cut in RBI has clearly signalled that the softening interest rate regime is going forward. We expect that a cut in policy rate will ease off some pressure and see some demand. Q. Do you think there are several policy impediments?

A. Policy impediments have slowed real estate growth to some extent. The industry has been demanding a singlewindow clearance for projects for speedy execution, but it hasn’t been acted upon as yet. The Land Acquisition and Resettlement and Rehabilitation Bill in its present form makes it difficult to acquire land and question the sustainability of real estate companies. Certain clauses of the Real Estate Regulation Bill, too, don’t sound encouraging for the industry. For approval delays from government agencies, real estate companies shouldn’t be deemed liable. Considering the demand-supply gap, the Government should devise ways and means to encourage affordable housing. An extension of tax holidays for housing projects under Section 80IB (10) of the I-T Act, enhancement of the benefit to individual home buyers and extending I-T benefit to affordable housing projects are some of the key issues that need Government’s attention. Q. What do you think about commercial real estate, with Government allowing 100% FDI in single-brand retail and working on 51% in multi-brand retail? A. Commercial real estate is an important part of the development landscape. Since they create jobs, they are seen

Q. Omaxe is creating the most-talked about commercial and entertainment zone, Omaxe Connaught Place(OCP), in Greater Noida. What is the idea behind your dream project?

A. Omaxe Connaught Place has been conceived keeping the ethos and sensibility of the iconic and one of Asia’s most famous shopping and entertainment hub, Connaught Place, Delhi. However, we have a modernised setting with state-of-the-art facilities matched with construction superiority. Located in Greater Noida and designed by Hafeez Contractor, OCP is set to be landmark. With excellent accessibility and emergence of several residential properties, OCP will be the most sought-after business, commercial and entertainment centre in North India. It will have one of the largest shopping-cum-entertainment malls, ultra modern office space, world-class shopping mall, multiplex, 5-star hotel, food courts, family entertainment zone etc. Many international brands have already signed up for OCP like EasyDay, KFC etc. Office space is ready for possession. Spread across 15 acres with a total built-up area of approx 1.9 million sq. ft. and parking space for more than 3,000 cars, the mega commercial project offers lease-only model. The space available will vary from 500 sq. ft. to 35,000 sq. ft. Omaxe is offering 158% assured return which entails 14% per annum commitment charge in first two years and subsequently, 13% per annum through lease rental in the next 10 years. The minimum payment for this scheme has been pegged at ` 21 lakh, with ` 3.15 lakh as a booking amount and the remaining payable within 30 days.

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A PRIVILEGE RESERVED FOR THE ELITE!

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The desire, realisation, and experience of a bespoke life and the harmonious ensemble of nature, architecture and luxury.

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3, 4, 5 bedroom apartments ranging from 3498 sq. ft. to 5761sq. ft.

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Your en-suite bath in your master bedroom has features like-Jacuzzi, steam and enclosed rain shower.

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From finest marble to timber veneered wooden doors; European modular kitchen to imported cupboards, thoughtful extravagance touches every aspect of the home.

mmerse yourself in a home as individual as you are, Pioneer Urban has taken the lead in ushering this new era of luxury. Built to the highest specifications and with impeccable attention to detail, Araya is the perfect blend of form and function, of luxury and design, of space and convenience. Ensuring, every moment is an experience to savour! Araya is designed for the connoisseur, where residents and their guests are to experience an unparalleled lifestyle.An extension of a highly refined world and designed to surpass expectations, Araya residences emulate uber-contemporary feel, subtly manifested in the architectural style and choice of furnishings.

Crafted and built to match your affluent personality, Araya is the desire, realisation, and experience of a bespoke life and the harmonious ensemble of nature, architecture and luxury. Spread across 10 acres in Sector 62 on Golf Course extension Road, Gurgaon, the Araya residences boasts of 4 elegantly designed towers with apartments that incorporate all modern amenities.

3, 4, 5 bedroom apartments ranging from 3498 sq. ft. to 5761sq. ft. n It offers 5BHK Penthouse units with a family room, private pool and a sun deck. The sizes range from 9625sq.ft. to 10019sq.ft. n From finest marble to timber veneered wooden doors; European modular kitchen to imported cupboards, thoughtful extravagance touches every aspect of the home. n From the lavish swimming and splash pools to the stateof-the-art gymnasium, world-class indoor squash courts to a luxurious rejuvenating spa, an exclusive lounge to a chic restaurant, the beyond comparison residences bring all the plush facilities to pamper the best in you. n Your en-suite bath in your master bedroom has features like- Jacuzzi, steam and enclosed rain shower. n It also offers world class outdoor basketball/badminton courts. These exclusive residences capture the essence of truly opulent lifestyle with deep sense of privacy and security. The residences manage to be urbane and yet removed from the clamour of city life. The indulgence in an extravagant lifestyle can just never stop here!!

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DREAM BIG DREAM VILLAS If the real estate biggies in the country are to be believed, picking up a villa from a catalogue has never been as easy as it is now. High-end users can choose from various models that are on offer and customise them according to their tastes. â&#x20AC;&#x201D;Property Observer Desk

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aypee Greens' WishTown Noida, namely, The Kingswood Oriental and the Augusta Town Homes and over 150 Estate Homes, Villas and Town Homes at Greater Noida offer exquisite living. On the other hand, Unitech's ‘The Villas’ at the Uniworld Resorts in Gurgaon has been developed to give a new definition of living in a villa. Tata Housing Development Co. Ltd. brought in their new residential project in Gurgaon — Primanti, a premium luxury housing complex. Today, consumers are increasingly opting for gated communities or villa living and wish to have a quiet luxurious lifestyle without compromising on their comforts and amenities. Traditionally, retired individuals and high net worth individuals opted for gated communities or villa living but, with high housing values and relatively low housing prices, this idyllic lifestyle is being adopted by many, singles, young couples, families and cash buyers who otherwise, lived in apartment complexes.

These communities are not only inspirational, environmentally conscious and give each inhabitant a rich experience of modern day living but tend to be self sustaining providing their own power, water, security and sanitation services. Well manicured lawns for children to play, a garden to relax, swimming pools, ample plot space, shopping malls, spa and gym – all this and more is just a peek into community living. One can safely say that the safety and amenities of gated communities are undeniable. They are a safe and friendly alternative to one’s traditional apartment complexes. These communities usually require some sort of identification or pass to enter for those living within the community or guests of residents are allowed into the facility. This means fewer strangers entering the community and greater security for the children and elders. It also means less traffic - a problem that the city life continues to battle.

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JAYPEE GREENS INDEPENDENT WITH

OVER 250 OPTIONS aypee Greens has launched over 250 independent options at WishTown Noida, namely The Kingswood Oriental and the Augusta Town Homes and over 150 Estate Homes, Villas and Town Homes at Jaypee Greens- Greater Noida. The exquisite privacy of Villa Living at Jaypee Greens –Greater Noida whispers luxury. Launched in 2010, over 95 % of independent options at The Wish Town –Noida have been sold. Besides this customers have a choice of building their own homes at the various residential plot options that were launched and which got an over-whelming responses and all the plots have been sold.

Kingswood Oriental

Kingswood Oriental, a part of a wishtown, Noida, is set on 5 basic pillars of life- Long Life, harmony, beauty, happiness, and spirituality. It is an exclusive community that offers unparallel ambience and lifestyle. Spread over acres of beautiful landscapes and adjacent to 18-hole golf course, these exclusive individual homes get expansive views of the 18 hole golf greens on one side and a chip and putt golf course on the other.

The architecture for these Kingswood Oriental homes is inspired by the “Oriental” and use wood, bamboo and colourful stones. The various elements incorporated in Kingswood Oriental creates a personal heaven for the residents providing perfect living for the select few who have the taste of finer things and want to explore the rare luxury lifestyle.

Kingswood Oriental homes are offered in areas of 3850 sq. ft., 4550 sq. ft., 4700 sq. ft. and currently all of them are sold.

One of the key attractions of Kingswood Oriental is its clubhouse, which has rich and elegant ambience creates an ideal place to relax and rejuvenate. An ornamental and South East style design forms the basis clubhouse architecture. The

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Features:

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Kingswood Oriental homes gets the unobstructed view of the 18 hole golf course designed by Graham Cooke and a chip & putt golf course. Surrounded by stunning bonsai landscapes, Zen gardens, and alluring water bodies. Exclusive premium clubhouse based on an Oriental concept. Wide open spaces, personal balconies, well-lit airy interiors. One of the defining features of the community is the boulevards and the spacious pedestrian-friendly walkways.

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UNITECH’S ‘ THE VILLAS’ UNIWORLD RESORTS

nitech, India's leading business group and an integrated developer of large-scale real estate projects, has launched ‘The Villas’ at the Uniworld Resorts. This lush green and pristine property is spread over an area of 154 acres secured gated community. Situated at the Sector 33 and 48 in Gurgaon on National Highway 8, off the Sohna Road, this property has been developed based on the original concept of a villa. These beautiful villas will present four floors of spacious villa living with a host of premium features in every part of each living unit including a personal elevator. The modern VRV air-conditioning system ensures that the villas are at homely room temperature. One of the unique features of these villas comes with a personal lap pool especially designed in the backyard.

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Some of the key characters of the properties are: 1) The location of the project is in sector 33 of Gurgaon, Sohna Road. 2) Strategically located near Rajeev Chowk on National Highway 8, the property is fifteen minutes away from the International airport in Delhi. The presence of many world class schools within a radius of 15 minutes drive from the property. 3) The idea of these villas was inspired by the original concept of a villa which will ensure a good living in a landmark location. With four floors of spacious villa and a host of other premium features, each of these villas will have a personal elevator.

4) State of the art technology VRV air conditioning system has been used in these villas. 5) Each villa comes with a personal lap pool especially designed in the backyard. 6) Some other refreshing features of these villas are an exclusive 8.5 acre landscaped park with putting greens, full proof security arrangements in this gated community as well as the facilities and services of the Uniworld township. 7) The premium clubhouse will ensure that the residents can enjoy many games like tennis, badminton, swimming, basketball and also exercise at the gymnasiums.

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TATA HOUSING’S PRIMANTI ata Housing Development Co. Ltd. is India’s leading real estate development company. Strengthening its presence in Delhi-NCR, the company recently launched their new residential project in Gurgaon — Primanti, a premium luxury housing complex. Spread majestically over 36 acres of sprawling area, Primanti is no ordinary address, it is envisioned in a way where nature’s boundless beauty meets every luxury one can imagine. A series of interconnected orchards, meadows and gardens span sinuously across the complex. The rich flora forms dramatic patterns with stone structures and water features, inspired by Delhi’s Mughal Gardens.

Primanti is a green haven with 80% of the property reserved for open spaces. Amidst these landscaped gardens are the premium villas, duplexes and luxurious tower residences, with elevated courtyards, open terraces and private gardens. Strategically located on the Southern Peripheral Road in Sector 72 of Gurgaon, this exclusive residential property is closely connected to NH8, which provides high speed access to airports, business centres, shopping malls, schools, healthcare facilities, entertainment areas and many other important destinations. Designed by international architect Kohn Pederson Fox

Associates (KPF), Primanti offers 102 world-class villas, 75 Executive Floors, 89 Executive Apartments and 828 Tower Residences. It also offers a state-of- the-art clubhouse and sporting zone along with spa facilities designed to provide the perfect ambience to de-stress and unwind. Speaking on the occasion of the launch, Mr. Brotin Banerjee, MD & CEO, Tata Housing Development Co. Ltd., said, “We are proud to launch our new luxury residential project in Gurgaon, thereby increasing Tata Housing’s portfolio of premium and luxury residences. After Prive, Lonavala, this will be the next landmark in the luxury housing. New Luxury being the theme of Primanti, is truly befitting as it is envisioned to redefine luxury in India, Primanti will offer its residence a modern and contemporary designed product having two clubhouses and sky restaurant at 40th floor.” He further added, “As a quality conscious and responsible real estate development company, we believe in creating homes based on an in-depth understanding of consumer needs and preferences. We are committed to offer our consumers a unique and differentiated product that would provide them a great lifestyle while at the same time the project would abide by the tenets of sustainable and green development under the guidelines of IGBC.” Paul Katz, Managing Principal of KPF, said: “Tata Housing is one of the most prestigious residential developers in India, and we are excited to have the opportunity to introduce new living concepts to a rapidly growing city like Gurgaon. We are able to draw on our experience of designing new cities and tall buildings around the world, to create a sustainable neighborhood suited to the specific cultural, social and climactic demands of this region.”

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AFFORDABLE HOUSING ON PRIORITY .

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Real estate sector, which is passing through a difficult phase on account of global slowdown, eurozone crisis and inflationary economy, was expecting a massive relief from Central government. The sector was looking for policy initiatives which would propel investment, easy credit and buyers/investors’ confidence. However, contrary to their expectations, these policies will increase cost of residential sector — Achyut Nath Jha

ndia’s real estate sector, which has been under tremendous pressure, had great expectations from the Budget 2012-13, but according to developers, their hopes were belied. Yes, for those waiting for affordable housing, this budget has several encouraging things. Real estate market experts also agree with this sentiment. Although they say that this budget will benefit to buyers of lower middle class and middle class. The move will enhance liquidity in the market which will consequently benefit the sector.

In the coming days, builders’ interest will be more in execution of low-cost houses especially those which fall in the category of 600-1200 sq. ft. Buyers of this category will get their home in relatively lesser cost. In order to offer affordable houses to common man, in this budget, Finance Minister Mr. Pranab Mukherjee has allowed External Commercial Borrowing (ECB) making law easier to get or manage foreign funds for the project in India. This will pave the way for managing funds from foreign countries for the already struggling real estate companies in India. National Real Estate Development Council (NREDC) has welcomed Service Tax relief up to 60 sq. m. of housing units. It says that the budget proposal is in favour of affordable housing because external debt ( through ECB) is restricted to low- cost housing continuance of 1% rebate up to 15 lakh for house which costs `25 lakh is a boosting factor. At the same time, by increasing investment linked reduction on capital expense from 100% to 150% and reducing tax on ECB interest from 20% to 5%, a bold step has been taken. Finance Minister’s announcement allowing National Housing Bank (NHB) and HUDCO to mobilise tax-free bond of `5000 crores will motivate Housing Finance Companies (HFCs) and States’ housing board to offer loan at lower rates. While talking to media, Anil Sharma, CMD, Amrapali Group, says, “Middle class Indians will get maximum benefits from the budget. This will bolster affordable housing in India.” Although, 1% subsidy on `15 lakh loan for a house valued at 25 lakh will continue. Experts are divided over the actual impact it will have on buyers’ capability, as there are few

_rvbop=lc=qefp=`^qbdlov tfii=dbq=qebfo=eljb=fk obi^qfsbiv=ibppbo=`lpqK fk=loabo=ql=lccbo= ^ccloa^_ib=elrpbp=ql `ljjlk=j^kI=fk=qefp _radbqI=cfk^k`b=jfkfpqbo joK=mo^k^_=jrhebogbb== options available in cities like Delhi or Mumbai on ` 25 lakh category. Even if options are available, will buyers have the capability to raise 10 lakhs from their kitties to buy a `25 lakh house? One expert says that it would have been better if Finance Minister has kept provision for a cheaper home loan. The push of 2% Service Tax in many services and 2% excise duty will increase common man’s monthly burden substantially. In such a situation, your EMI portfolio will be more painful. According to a developer, starting TDS on immobile properties and Service Tax increment will have negative impact on the sector. Real estate sector, which is passing through a difficult phase on account of global slowdown, eurozone crisis and inflationary economy. The sector was expecting a massive relief from Central government. The sector was looking for policy initiatives which could propel investment, easy credit and buyers/investors’ confidence. However, contrary to their expectations, these policies will increase cost of residential sector. Some realty experts estimate that 2% raise in service tax and excise duty will roughly increase the cost of cement, iron and other building materials by 5 to 7%. Construction cost of building will increase by `50 to `100 for per sq. ft. Developers will have to fork out 2% extra as Service Tax for completing their projects, which consequently affecting the real estate demands.

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Ravi Saund COO, CHD Developers Ltd.

Infrastructure has taken a centre stage yet again in the reforms in the Union Budget 2012-2013. The steps to increase funding for roads, highways and other infrastructure will surely add more terrain on the Indian realty map taking tier 2 and tier 3 cities on new growth trajectory. The 1% tax rebate for home loans of up to `15 lakh on homes costing up to `25 lakh will prove beneficial for developers in the category of residential sector. Exempting proceeds from the sale of a residential property from Capital Gains tax if they are invested in equity or equipment of an SME definitely provides home owners with more reinvestment options. Companies in future are allowing External Commercial Borrowing (ECB) for affordable housing which is no doubt an admirable move. ECB will attract more developers to enter affordable housing.

Dr. Suresh Surana Founder, RSM Astute Consulting Group

In recent years, we have witnessed heightened litigation in transfer pricing and taxation of foreign companies. The move to make Advance Pricing provisions operative in the Finance Bill 2012 is a very positive step which will enable greater certainty and improve investment environment. â&#x20AC;&#x153;The steps for alignment of Central Excise and Service Tax and proposal to consider introducing a common code for central excise and Service Tax are definitive forward movements in the implementation of GST. It is also proposed to introduce a common registration form and common return for excise duty and Service Tax. The setting up of a National Information Utility which is expected to become operational from August 2012 is a very positive development. These steps recognise that due to inherent complexity and humongous task involved in introducing GST at the national level, it is important to break up the exercise and have a modular approach towards the overall objective.

Gaurav Gupta Director S.G. Estates

This is a disappointing budget for the real estate industry. No demand for the housing industry met. None of the exemption on housing loan is increased under sec 24 and sec 80c. Service Tax instead of being removed has been increased by 2% across all categories. Industry status not provided the real estate sector nor any mention on reintroduction of sec 80 (IB). Housing though contributing around 5 percent to GDP has not been given any significant impetus. Only silver lining is allowing external commercial borrowing for affordable housing and exemption of Capital Gain tax on property If proceeds reinvested in SME.

Manoj Gaur MD, Gaursons India Ltd

Budget hardly had anything substantial for real estate there are certain things that will help sentiments in the sector. The 1% interest subvention for home loans up to `15 lakh has been kept intact and is a relief for the buyers of LIG segment. Developers who will come up with this segment will see a constant flow of buyers. Some of the areas that might benefit from this step are NH 58, NH 24, and certain sectors of Noida and Greater Noida. With the increase of service tax and likely increase in many products buyers might end up with less money at disposal, which is in turn harmful for the affordable housing segment.

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Raamdeo Agrawal Joint MD, Motilal Oswal Financial Services Ltd

The budget has been average. No bold reforms have been made. Cut in STT and Rajiv Gandhi Equity Saving show that the importance of capital markets has been recognised. The government expects GDP growth to be around 7.6%. If that is achieved, it would bring much better job opportunities in the country.

Dhiraj Jain Director, Mahagun India Private Limited

Be it the credit policy of RBI or the budget it has left the buyers and real estate developers high and dry. Expectations from the budget were all nullified. There was no concrete steps taken to help the affordable housing and there were no signs that will suggest that home loan interest rates will come down. No steps have been taken for giving industry status to the sector and to bring the real estate regulatory bill.

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UNION BUDGET 2012-13 AN INDIRECT IMPETUS TO REALTY SECTOR

Anurag Mathur MD India, C&W India

Sachin Sandhir Managing Director, RICS South Asia

“For the real estate and housing sector, this years’ budget has exceeded expectations given the pressure on fiscal situation. Most importantly, it has taken into account the crying need to focus on affordable housing sector by allowing ECB for low cost housing, road as well as construction and setting up of a Credit Guarantee Trust Fund. Withholding tax on ECBs for affordable housing has been reduced from 20% to 5% for 3 years and this move will help ease the liquidity in the sector. Also, investment linked deduction of capital expenditure in affordable housing is proposed to be provided at 150% as opposed to 100%.” Country needs infrastructure growth and the budget has not disappointed on this front as well. The doubling of allocation in infrastructure debt fund through allocation to NHDP, IIFCL, NHB and SIDBI coupled with full exemption from basic customs duty for equipment for road and highway construction are likely to boost infrastructure and construction sectors. One year extension of sun set clause on tax incentives for infra projects under 80 (IA) is also a welcome step.”

Whilst there is not much incentive provided to the general housing buyers other than a token increase in tax exemptions, the positive aspect of the budget it, that it has increased support to affordable housing sector in the form of enhanced budgetary support and institutional support by creation a Credit Guarantee Trust Fund and allowance of ECB in affordable housing. This is a welcome initiative. Moreover the increase in allocation (and widened scope for private sector participation) in infrastructure implies a clear intent on enhancing the urbanization process as well as providing a support to the slowing industrial sector. This will mean an indirect impetus to real estate creation as well.”

Bhim Yadav CEO Falcon Realty Services

We welcome the Finance Minister’s decision to allow External Commercial Borrowings (ECB) for low cost affordable housing projects as this will give a much needed boost to the affordable housing segment. This will further help in bridging the demand supply gap in the affordable housing segment. Also setting up of the Credit Guarantee Trust Fund to ensure better flow of institutional credit for housing loans is an excellent impetus which will have a great impact on the prospective customers going for affordable homes.” “Our Global Eco-city project which is located on NH-8 alongside the Delhi-Mumbai Industrial Corridor (DMIC) will see a surge in demand as Japanese funds have pumped in to a great extent for a gamut of sectors including infrastructure, technology, automobile, etc. Also, people with an income between 5 lakh to 10 lakh will have to pay a tax of 20% which was earlier `8 lakh. This will leave more money in the hands of consumers and thus they can invest more in low cost housing.

“At the same time the increase in the service tax from 10% to 12% would lead to additional burden on the tenants as the service tax on rentals has remained unchanged. The IT sector would have also expected a more favorable treatment. The uncertainty over implementation of DTC was somewhat expected, as was the lack of firm commitment over FDI in multi-brand retail. The GST regime which is proposed to be implemented from August 2012, is a welcome step for modernising the taxsystem. Overall, the budget has carried forward the government’s cautious approach from the previous year.”

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Vishal Gupta MD, Ashiana Housing Ltd.

The budget for the real estate sector seems to be neutral. However, the positive points are: i) Extension of the existing scheme of interest subvention of 1% on housing loans up to `15 lakh where the cost of the house does not exceed `25 lakh for another year will enhance the overall sales by providing cheaper loan to the customers. ii) Enhancement in the exemption limit of individual taxpayers will increase the disposable income of the salaried middle class to pay more for a house at the same level of income. iii) Also, enhancement of the flow of funds to the infrastructure sector will indirectly help the real estate sector as a whole in long run. On the other hand, things which will not work for the sector are: i) Expectation of raising the priority sector lending limit for housing loans by the government was not met. ii) Enhancement of service tax from 10% to 12% will further increase the cost of homes to the end-users.

David Walker Executive Director, SARE Homes

Union Budget has made modest efforts to address the real estate sector with measures like offering 1% tax rebate for home loans of up to `15 lakh on homes costing up to `25 lakh and allowing External Commercial Borrowing (ECB) for affordable housing. Controlling the fiscal deficit will pave the way to lowering of interest rates which will revive real estate sales. Several positives steps taken to revive the ailing infrastructure would of course come as a boost to the economy.

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Sanjay Rastogi Director, Saviour Builders Pvt. Ltd.

Jyoti Narain Director, Wital See Marketing Ltd.

This years’ budget for the real estate and housing sector, has exceeded expectations given the pressure on fiscal situation. It has taken into account the need of the sector and to focus on affordable housing sector by allowing ECB for low cost housing, road as well as construction. Withholding tax on ECBs for affordable housing will help ease the liquidity in the sector. All these measures will encourage supply of low cost housing.

Demand for affordable housing will remain intact and it might increase, as low-cost housing loans up to `15 lakh that were eligible for 1% interest subsidy has been retained. This year people might see a smooth market for houses that will not exceed the cost of `25 lakh. Though the sector was expecting some more good sops to be given to help boost this segment’s market but then we have to be content with whatever has been laid out in the budget.

Dr. ANIL JINDAL Chairman and Managing Director, SRS Limited

Nitesh Kumar COO, TDI Infrastructure Ltd.

Raising the priority home loan limit from `20-25 lakh is good news for developers like us as we are rolling out budget housing in North of Delhi. It will benefit genuine home buyers. The 1% interest subvention for home loans up to `15 lakh from the previous limit of `10 lakh will come as a relief to home loan borrowers from the budget housing segment. At the same time I must add that raise in Service Tax to 12% will increase the production cost which will affect the interest of the buyers directly.

Overseas borrowings for builders will bring in the much needed liquidity into the system, and one can optimistically expect that the cost of these funds will be lower. Now this will have two effects: one, the construction time should get accelerated leading to more timely deliveries, and secondly, one could either see the builders reducing the prices a little bit or offering higher value ads. “ Additionally, this will lead to a higher proportion of end-users coming to the market, as against investors or speculators – higher number of end-users will be extremely good for the industry.

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GST

& MISSING DEADLINES Will GST, touted by all as the single most important tax reform initiative post-Independence, once again fall to the whims of political and economic compulsion? If it is so, it will take time before we have a uniform tax regime across the nation. — Achyut Nath Jha

e agree that current tax system needs restructuring to eliminate the drawbacks of the present system of taxation in India. We also agree that multiplicity of taxes is against our reform agenda. But when it comes to implement any, we move helter-skelter, often clueless about the direction we are moving. Some years ago, the then Value-Added Tax (VAT) faced the same dilemma but fortunately, its opponent in some of states finally agreed to implement it. The same politics of economy is putting brakes on Goods and Service Tax (GST) and it is not heartening either.

CENVAT is that taxes like Additional Custom Duty, Additional Excise Duty, etc. are not included in it. VAT fails to include taxes such as luxury tax, entertainment tax and others. Significantly, Service Tax is ignored in both the cases. To overcome such difficulties implementation of GST is being considered.

With all the three drafts of GST constitutional amendment bill proposed by the Centre being opposed mainly by the opposition-ruled states, the proposed GST has many deadlines. After missing the original April 2010 deadline for GST rollout, the government proposed to introduce it in April 2011. But it is all set to miss this deadline too. For the record, if it is implemented, it will subsume indirect taxes such as excise duty and service tax at the central level and VAT on the states front, besides local levies.

To get to its bottom-line, some important aspects of GST methodology need to be cleared:

Earlier, the introduction of Value-added Tax (VAT) and Central Value-added Tax (CENVAT) has considerably helped in reduction of multiplicity of taxes. The problem on account of

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GST includes a uniform rate of taxation in all respects. This would allow an implementation of a continuous link from the primary producer of goods and service to the retailer’s stage. This will also eradicate all cascading effects in such process.

Basically, the GST system is based on the same concept as VAT. It is divided into two components — Central Goods, Service Tax and State Goods, Service Tax. Along with the regulations, definitions and classifications, rates charged across all states and the Central level is uniform. GST is applicable to all Goods and Services sold or provided in India, except from the list of exempted goods which fall outside its purview. It is charged and paid separately in case of Central and State level. The facility of Input Tax Credit (ITC) at Central level is only available in respect of Central Goods and Service

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tax. In other words, the ITC of Central Goods and Service tax is not allowed as a set-off against State Goods, Service tax and vice versa. In GST system, each taxpayer shall be provided with a unique 13 to 15 digit ID number for filing periodical returns with the Central and State government. But for all merits that GST has, the Central government will need some grand political bargaining. A Constitution Amendment Bill is necessary according to the current arrangement, the Centre cannot impose a tax beyond manufacturing and states cannot levy Service Tax. After the amendment bill is passed by both Houses with a two-thirds majority, 50 per cent of states have to ratify it through a vote in their legislatures. If all goes well, the 4th draft of bill will be introduced in Parliament during the current session.

The third draft had proposed setting up a GST Council by an Act of Parliament, instead of a Presidential order, as proposed in the second draft. The fourth draft has now proposed setting up a GST Council by Presidential order. It will describe the composition and the role of the Council, to be headed by the Union Finance Minister. The GST is one of the main planks and the structural backbone of the reformist legislative agenda that the UPA outlined in the budget speech. The UPA doesn't command the numbers, and this amendment will need support across party lines. The main opposition party, BJP, had highlighted its commitment to the GST in its election manifesto during the last general election campaign. Now it has dialled down its support considerably. It claims that some of its chief ministers believe that the GST regime will significantly dilute states’ autonomy.

SALIENT FEATURES OF GST: •

Parliament and the legislature of every state have power to make laws with respect to Goods and Services Tax imposed by the Union or state.

•

Goods and Services Tax levied and collected by the government of India shall also be distributed between the Union and the states.

•

The President shall by order constitute a Goods and Services Tax Council, to be headed by Union Finance Minister.

•

GST will be levied on supply of goods or services or both except taxes on the supply of petroleum, diesel, natural gas, avia tion turbine fuel (ATF) and alcohol.

The Central government and the state governments have now been engaged for almost four years in developing a roadmap for the rollout of GST. To assuage the states’ opposition, the Centre had prepared a fourth draft of the Bill, dropping some key proposals. In the first draft, the Centre had proposed veto power for the Union Finance Minister in the GST Council and said the decision would be binding on the Union government and all the states. The third draft had proposed the setting up a GST Council by an Act of Parliament, instead of a Presidential order, as proposed in the second draft. The fourth draft has now proposed setting up a GST Council by Presidential order. It will describe the composition and the role of the Council, to be headed by the Union Finance Minister. Given the stalemate created by state governments, one tends to be overly pessimistic to believe that the tentative timeline for GST introduction (i.e. October 2011 or April 2012) appears ambitious. Drawing an analogy from government’s intention to introduce direct tax reforms on April 2012, it may appear indirect tax reforms may coincide with implementation of the Direct Tax Code (DTC). If that is the intention, we should welcome FM's assurance. Tax reforms are a noble policy shift and clearly trade and industry need to plan their existence around the proposed reforms.

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Some of the latest Judgments of the Courts with reference to Capital Gains are reproduced below which will help the tax payers to save tax on Capital Gains

molcfq=lk=pîb=lc=peôbp=fkfqfîiv=mroè^pba=colj=ltk=crkap `^mfqî=d^fk The Delhi High Court in the case of CIT v. Rohit Anand, 327 ITR 445 held that where the assessee did not intend to treat shares as business asset and made investment in the shares out of own funds, took delivery after payment and held them for a stipulated period, then the transaction of sale of such shares would give rise to Capital Gain and not business income.

abar`qflk=rkabo=pb`qflk=RQ_=bkqfqiba=ql=qeb=^ppbppbb=abpmfqb=efp plk=_bfkd=qeb=`l ltkboK= The Punjab and Haryana High Court in the case of CIT V. Gurnam Singh, 327 ITR 278 held that the transfer of agricultural land, by the assessee, used for two years immediately preceeding the date of transfer and purchase of another agricultural land from the sale proceeds within two years after the date of transfer is entitled for deduction even if the assesseeâ&#x20AC;&#x2122;s son is shown as the co-owner in the sale deed.

fkqbobpq=lk=il^k==_looltba=clo=mro`e^pb=lc=molmboqv=fp=`lpq=lc= ^`nrfpfqflk=^ka=abar`qf_ibK== Company borrowed loan from its director to purchase land and put up a hotel project which did not get materialized and the company sold that land. The Karnataka High Court in the case of CIT v. Sri Hariram Hotels, Pvt. Ltd., 325 ITR 136 held that Interest on loan paid for purchasing the property will start accruing as soon as the loan is taken and is included in cost of acquisition of the asset. Hence, it is deductible.

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qbepfia^o obmloq=^_lrq=i^ka=_bfkd=_bvlka=bfdeq=hfiljbqbop=colj jrkf`fm^i=ifjfqI==bubjmqba=d^fkp=colj=qo^kpcboK The Punjab and Haryana High Court in the case of CIT v. Lal Singh & Others, 325 ITR 588 held that the assessee produced a certificate from the Tehsildar that the land which was sold by the assessee was situated beyond eight kilometers from the Gurgaon municipal limits. Hence, there was no liability to payment of Capital Gains on the sale of agricultural land. In this case, the assessee produced a report of the patwari countersigned by the Tehsildar to say that the land which was sold was situated beyond 8 kms from the Gurgaon municipal limits. However, the Inspector of income-tax also submitted the report in which neither the Khasra number of the land of the assessee was given nor had it been explained how the distance of the land from the municipal limits was measured. Hence, it was finally held that the report of the Inspector not be relied and based on the report of the Tehsildar the matter was decided.

èô^`qbopqf`p=lc=^dof`riqroî=i^ka=al=klq=è^kdb=fc=klq=`riqf s^qba=clo=ilkdbo=mboflaK The Bombay High Court in the case of CIT v. Smt. Debbie Alemao, 331 ITR 59 held that even if no agricultural income was shown in the Income-tax Return in respect of the agricultural land which was sold but as the land was shown in the revenue records as “Agricultural Land”, Capital Gains would not arise on selling such land. In this case the Assessing Officer had bought the Capital Gains to tax on the ground that the land had nonagricultural potential as it was sold at nearly ten times the purchase price within two years of purchase and the said land was purchased for the purpose of setting of a beach resort, hence, the land was a non agricultural land. However, the above thinking of the tax department was not approved by the Hon’ble Judges of the Bombay High Court in the case of CIT v. Smt. Debbie Alemao 331 ITR 59. Wherein it was held that as the land was shown as Agricultural land in revenue records and that no permission was taken by the assessee for conversion of land use, hence, there was no Capital gain on such sale.

obkrk`f^qflk=lc=ofdeq=ql=pr_p`of_b==ofdeq=pe^obpK= The Karnataka High Court in the case of CIT v. United Breweries Ltd. & Another, 325 ITR 485 held that the renunciation of the right to subscribe right shares does not amount to transfer of Capital asset especially when renunciation was done in favour of general public.

mro`e^pb=mof`b=lc=molmboqv=`^kklq=_b=pr_pqfqrqba=clo=pq^jm=arqv s^ir^qflkK The Punjab & Haryana High Court in the case of CIT v. Chandni Bhuchar, 323 ITR 510 held that the purchase price of the property as disclosed in the sale deed cannot be substituted for the price assessed for the purpose of paying stamp duty as per the Circle Rate. Hence, no addition to the total income can be made on this account.

bubjmqflk=rkabo=pb`qflk=RQc=clo=`rkpqor`qfkd=^=elrpb=lk=i^ka=ltkba _v=tfcbK

In the case of CIT v. P.R. Seshadri, 329 ITR 376, the assessee held 90% shares in a company and transferred the same in favour of another compay and received `25,00,000 as advance payment. The amount was invested in constructing the house on the land owned by his wife. The Karnataka High Court held that the assessee had contributed to the cost of construction and there is no impediment in the assesse’ claim for relief under section 54F of the Income-tax Act, 1961.

Subhash Lakhotia Tax and Investment Consultant Tax Guru: CNBC Awaaz

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MORTGAGE RISK GUARANTEE FUND Will It serve the purpose? The idea is holistic, no doubt, but keeping in mind the outcome of the other populist policies, there is genuine concern about its effectiveness as a feasible policy initiative. â&#x20AC;&#x201D; Amarnath Mishra

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he setting up of Mortgage Risk Guarantee Fund (MRGF) is undoubtedly a right step by the Union Government for bringing the economically weaker and lower-income group section of our society into the mainstream by securing their housing needs, particularly the urban section of the society. Though they desire to own their dwelling unit, they are treated very negatively by the lenders (Banks and HFCs) keeping in mind their paying capacity which do not fit properly in the existing eligibility criteria of their paying capacity. Although many of them possess very good saving tendency, they cannot afford to buy a dwelling unit of their own unless they are in a position to pay the price upfront. The housing needs of this group, particularly the economically weaker section of the urban population, are met by this mode alone since they do not have any other alternative. In every modern Indian city there are so many unauthorised colonies, jhuggis and slums. All deals in these unauthorised colonies are strictly on cash basis, and one should not conceive the idea that the slums and jhuggis are occupied by the dwellers free of cost. Yes, they buy (as they call it) it for some good consideration primarily dominated in monetary form. In the metros, even a slum or a jhuggi is sold (handing over of the possession) by the occupant ranging between one to ten lakhs in upfront cash.

The idea of applying the scheme to rural area seems to be another faux pas in the series by the lawmakers. They should be aware of the fact that the rural poor are always deprived of cash resources. They cannot service the debt even if it is for making their dream home. In my opinion the lawmakers have not travelled across the territory of this large country. They may have some idea about India of India but they are not acquainted with the Bharat of India. Yes, we are living in a country which has two separate identities Bharat (rural) and India (urban) and it has been created by the governments which have ruled India after Independence. The situation is created by the leaders, whether knowingly or unknowingly, of the governments by centralising the development and industrialisation in urban areas alone. We would have been living in India in totality had this not been the truth. Even now, it is not too late (jabhi jago tabhi savera). If we rise to the occasion before it becomes too late, we can make a great India as we were known in the ancient era. By proposing the MRGF to rural India, the same faux pas is going to be repeated.

The MRGF, with an outlay of nearly `180 billion, will build up a confidence among the developers/builders and Housing Finance Companies (HFCs)/Banks by securing their advance. The lender is mainly concerned with servicing of the debt and if it is guaranteed by some government/ government sponsored agency/organisation, they will come forward for advancing loans to this section equally.

The government should imbibe the nature of developing industrious people in our country but not to develop a community which becomes addict to government aid. government must endeavour to make Indians industrious instead of lazy .The aim should be assisting the borrower to get the loan for making a house but at the same time it should be guaranteed that the loan is serviced in full and in time. Meeting these criteria should be studied first and then the government should propose any scheme. Definitely the government is committing yet another populist measure which is detrimental to prudent economic policy. Skepticism about the efficacy of MRGF, if implemented as is conceived by the government presently, is not unfounded. Some economists foresee it as India's equivalent of Fannie Mae and Freddie Mac. Assist the needy people, there is no problem, but do not resort to it as a populist measure. The conditions are entirely different in the context of US and India but the outcome will be the same. Fannie Mae and Freddie Mac suffered the loss because of sub-prime lending in US.

The idea is holistic, no doubt, but keeping in mind the outcome of the other populist policies, there is genuine concern about its effectiveness as a feasible policy initiative. But again this mindset will lead to the failure of the very purpose of the MRGF. While mentioning Government-funded schemes, we often cite the statement by a former Prime Minister who candidly commented that only 15 paise out of one `goes to the real hand and rest is drained off. Unless and until the Government controls the corruption, every step taken by it to alleviate the conditions of poor and needy will be a futile effort. Thus it is very much feasible to implement the scheme if implemented in proper way.

The bad loans that Fannie Mae and its twin Freddie Mac had on its books, led them to near bankruptcy. The result was that the US government had to spend billions of dollars to bail the two companies out. The main reason for the bad loans which led to their bankruptcy was that loans were given out to people who did not have the earning capacity to meet their loan obligations. Our country is not new to loan meals and the resultant inevitable loan waivers. If we start distributing housing loans like a charitable dole, the scheme is bound to fail. Prudent and strict distribution of loans to needy persons, with good intention, will serve the very purpose of the scheme.

If these people of our society can be assisted by helping them by arranging financial loan assistance in buying a residential unit I am sure that the NPA (Non-Performing Assets) ratio will be definitely lower than the normal NPA percentage in housing finance. These sections of our society barely earn routine income in the form of salary but they do earn handsome amount for their livelihood and yes, they would prefer to sneak and enter into the mainstream of our society by becoming a proud owner of their own houses.

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REALTY REGULATOR NEEDED A regulator would help protect interests of the customers.

ess than one-third of India's population lives in urban areas and despite the rapid growth in urban clusters — planned and unplanned — there is demand-supply gap of 30 million units in the residential sector alone. The prevailing situation, no doubt, provides great opportunity for entering the real estate development sector across residential and commercial development. With government's role restricted to more as a facilitator than developer, private sector, with big and small names, entered into the bandwagon, making the scene highly competitive. The result —sometimes better delivery, sometimes delayed occupancy and on a few occasions no delivery at all. The loser clearly is one who invests his years of saving in the hope of owning and getting high returns. The buck stops with buyers who couldn't choose a genuine one from among a large variety of developers. Had the customers shown due diligence before buying, they wouldn’t have faced this predicament. Even if, realty sector is now showing maturity and global players are in a queue to invest in Indian property, both end-users and investors should remain watchful about companies which may make tall claims regarding their projects but fail to deliver the product as promised during the deal. That's why, a developer's past record is also important.

In India, land acquisition has never been a smooth affair and sometimes the process takes undue time. Most of the land acquisition is done by government authorities, like Delhi Development Authority (DDA) and NOIDA. Both Centre and State have their own development authorities which acquire land from farmers after paying compensation and then sell or give the same to developers. In states like Gujarat, farmers are encouraged to sell their land directly to builders and only when any dispute arises, government's role comes in. This may be one of the reasons why land acquisition has invited less protest from land-holding community. Generally speaking, a developer puts a large chunk of its resources in purchasing land and awaits customer payment to finance working capital. Thus completion of projects depends directly on how speedily buyers/investors pour into them. The situation becomes challenging for unlisted companies, those which have no

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wherewithal to mobilise funds. A smart customer must verify land title, the title to the land on which project is to be built and regulatory approvals ( if the same is approved by regulatory authorities like DDA, NOIDA, HUDA as the case may be). If the developer dilly-dallies and offers any other excuse, it's time to look for some other. If needed, the buyer should hire legal expertise to see documents pertaining to land title, building plan approval and commencement of construction. It is always advisable to ascertain timelines for delivery and quality of work. For developers with poor execution strength, it becomes tedious to complete even a small project which may comprise even a few hundred homes. In recent times, we often hear reports that a few prominent developers are keeping their buyers in waiting. A credible developer assures its customer that it is committed to deliver the flats/homes on time come what may. Till now the real estate is not regulated, but it is heartening that there has been a serious plan to have a regulator. Appointment of a regulator will go a long way in making the sector function as a full-fledged industry and it will provide a level-playing field for the developer and customer. A regulator would help eliminate anomalies in the existing legal system. An independent regulator with clearly set guidelines and directives to follow will ensure fair competition and protect the interests of builders, brokers, investors, and above all— customers. Regulation apart, a buyer should speak to as many people as possible about the developer and the project before committing to buy. If possible, he/she should gather information from the occupants in his previous projects regarding quality of construction, timely delivery, compliance with the agreement, basic amenities etc.

Vikas Sharma Director Universal Group

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RBI RATE CUT WILL IT BOLSTER THE REALTY CASH FLOW? Post-Budget 2012 there has been a mixed response from the real estate sector in terms of growth and investment. Both buyers and builders were expecting a repo rate cut of 25 bps but a cut of 50 bps has sent waves of growth and confidence across the industry. There has been a very positive response within the by lanes of real estate sector for such a positive step by RBI. In this issue, Property Observer takes an insight of the repo rate cut, its need, its effect on the trade and subsequent impact on the real estate growth. We also encompass opinions and suggestions of industry gurus and people from the trade. â&#x20AC;&#x201C; Property Observer Desk

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eal estate has generated huge revenue, lifted infrastructure growth, created employment and solved housing problems. With so much to deliver and dedicate the industry feels it has been given a stepmotherly treatment. It’s not a lame comment. There are enough facts backing this view. Relentless hike in interest rates, tight liquidity and irregular monetary flow have put a big question mark on the face of government policies.

With an oversized population and limited residential infrastructure, the common man aspires to have a home of his own. Is it not true that those aspirations are hammered by higher interest rates? Is it not true that after subsequent interest hikes of past years, the present cut would compensate? Are our economic policies so lame that they can’t even regulate basic housing issues? The current repo rate has been welcomed, but the industry was expecting more— it’s somewhat like ‘Indian realty on a dog diet’. Perhaps, there should be a focused introspection from the other side. It’s very humane to say that an average Indian needs a home not a house. Hope we understand the ‘consumer sentiments’ soon. RBI’s decision to cut repo rate by 50 basis points is going to propel realty sales volume and ease pressure on developers. Recent past has been quite hard for developers, with increased funding and tight liquidity in the market. The rate cut will serve a boost to buyers, since home loan rates would come down. Cash flow among realtors will also get a boost with the RBI rate cut step.

Repo Rate Cut: The growth catalyst Last some years were quite stressful for the buyers, as there was no ray of hope for them due to high interest rates in home loans. The repo rate cut will bring in a new change among the consumer circle. Home loan buyers are currently paying a higher rate of interest in the range of 11.50-13 percent on floating basis. This had created a vacuum in the consumer market as well as the developer market inter-dependent on each other. Repo rate has become the need of hour in this scenario. Supporting the RBI rate cut policy Anurag Mathur, Managing Director, Cushman & Wakefield India says, “After a moderate budget, the real estate market has finally

something to be happy about. The subsequent reduction in interest rates will provide a positive boost to the consumer sentiments. For the last one year buyers had to face the dual menace of rising interest rates and stubborn price levels. While some buyers may hold out for a while but volume of sales transactions will keep on increasing.” Om Ahuja, CEO, Residential Services, Jones Lang LaSalle India says in this regard, “RBI has hiked interest rates a total of 13 times between March 2010 and October 2011. The series of hikes in the past have also affected the price that builders put on their properties, since their own cost of borrowing has increased. It is very likely that there will be an upward bias on property rates because of the anticipated improvement of sentiments with buyers.”

Views from the fraternity The RBI rate cut step has also been well received by the people from the real estate fraternity. Mr. Prashant Tiwari, MD, Prateek Group says, “ The rate cut will bring smile on the faces of buyers and developers . It is likely to better sales volume and improve realtors’ cash flow. Home loans will also be on the rise after a gap of long time.” The consumer market has to wait to determine the extent of these cuts. Mr. Ashok Gupta, MD, Ajnara India Ltd, says, “The real estate industry can have a breath of fresh air as the repo rate reduction, if passed on to the consumer, will reduce the prevailing home loan rate in the Indian market. The initial reactions indicate that this will effect a change in both deposit and lending rates. One will have to wait for the extent of these cuts but there is no doubt that the rates are headed lower.” It’s a well know fact that the real estate market can thrive better by proper co-ordination between the buyers and builders. The real estate market had been suffering for long due to lack of consumer interest in property buying, all because of higher interest rates in home loans. Mr. Deepak Kapoor, Director, Gulshan Homz says, “The rate cut will have a good impact on the realty sector. Though the clear impact on realty sector has not been defined but deduction in home loan rate is more likely now. In last

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two years the multiple hike in lending rates had created a havoc among buyers. Majorly affecting the mid-segment buyer and hence adversely affecting the demand. We hope that this move brings smile to buyers and developers both.” Mr. Gaurav Gupta, Spokesperson, Raj Nagar Extension Developers' Association has almost similar views to suggest, “The major relief for home loan customers is abolishment of prepayment penalty. This will force banks to pass on the benefit to even existing customers as otherwise they have the option of moving to other banks where the rates offered are competitive and as per current market scenarios.”

Repo Rate Cut Versus the Inflation Syndrome The Central bank was expected to cut repo rate by 25 basis points in its annual monetary policy for 20122013. Realty developers wanted more rate cut despite a cut of 50 basis points. Realtors had continued to use in NBFCs and PEs for funds at a higher cost of 16-20%. After the rate cut they believe that cost of funds will ease. There is a speculation in the market that the step is intended to speed up economic growth and kill the monster of inflation.

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“Keeping in view the upside risk of inflation, the RBI could not afford to cut repo rate for the last couple of years. Now that the inflation has moderated to approx 7 % though the risk still persist. However, it seems that growth is likely to improve supported by mainly pick up in consumption demand. The RBI has cut the repo rate which is a welcome step for real estate sector as high interest were impacting the demand on one hand and on the other hand increasing the cost of construction. It is expected that banks will reduce the interest on home loan by 50 basis points which will ultimately perk up the demand and will help the developer to dispose off their unsold stock, it’s a move in right direction,” said Mr. OP Aggarwal, Chairman, Lotus Infra Projects Pvt. Ltd.

Real Estate: What lies ahead ? Real estate is the need of hour for growing India. In the 12th Five Year Plan period, investment in infrastructure will reach up to Rs 50 lakh crore, half of which is expected from private sector. The repo rate cut will hardly go in for a revamp according to financial experts. Liberal policies from the government, clearing of financial plans and administrative support will surely make this sector as the golden bowl of Indian economy.

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A REFRESHER ON INVESTING PHILOSOPHIES Published By: McGraw-Hill Pages: 267 pages Price: USD 24.95

just finished reading the book, How to Think like Benjamin Graham and Invest like Warren Buffett by Lawrence A. Cunningham. Cunningham, a corporate lawyer and professor of law, has very kindly documented some of the valuable lessons from investing philosophies of both Benjamin and Buffett. While he has written many other books and articles, another famous book of his is: The Essays of Warren Buffett: Lessons for Corporate America. I have to get to that book sometimes later. Meanwhile, I thought of jotting down some basic points from the above-mentioned book:

• Investment Managers need to be business analysts rather than market analysts or securities analysts. This is because a great business may do well even in gloomy world and a bad business may die even in booming economy. • Discipline is the key in investing and it simply means, following set of investing principles/guiding rules. Also, as in any other part of life, with discipline, nothing is impossible and without discipline, nothing is possible. • Independence of thoughts and judgment is critical to successful investing. • Buy businesses for quality of earnings, assets and cash flows and not capital appreciation. Latter is always a by-product of strength of the former. • "An investor needs to do very few things right as long as he or she avoids big mistakes"- W.B. • Book value for businesses could be misleading because assets are recorded at historical cost less depreciation and could be worth much less than their listed amount. • On importance of careful scrutiny of financials, Cunningham states, "Rules can't eliminate managerial discretion, and there will always be the possibility of imaginative, unorthodox, creative and even fraudulent financial reporting." • Liquidity, sentiments and then fundamentals drive Mr. Market (a term coined by Benjamin Graham) in the same order. Cunningham states, "Pricing in the market could be far from rational, infected by emotions, psychology and noise; may even be chaotic." In a nutshell, I would say that this book is a light reading for Benjamin and Buffett followers and a simple and easy going refresher on their investing philosophies.

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Reviewed by Achyut Nath Jha

MORTGAGE FINANCE

Least of all, Fannie Mae and Freddie Mac need the right intervention.

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Published By: Princeton University Press Authors: Viral Acharya, Matthew Richardson,

Stijn van Nieuwerburgh and

Lawrence White Page: 232 Price: $24.95 — Achyut Nath Jha

slew of books have been devoted to update us about how and under what circumstances, the US government decided to take over Fannie Mae and Freddie Mac—two government-sponsored enterprises (GSEs) that bought mortgages and created a secondary market in them. Significantly, these two companies, in some senses, were described as propellers to the US’ phenomenal economic growth in the post-war decades. Ironically, these two have become symbols of what went wrong with the US financial system, compelling economists and policy-makers had to chalk out a plan ensuring the same phenomenon doesn’t occur.

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Guaranteed to Fail explains the policy failure of the US federal government which kept providing guarantees to these companies, despite several warnings. This led to appearance of the housing finance boom and finally, to the eventual collapse. The government created and provided guarantee to these GSEs offering liquidity to the secondary mortgage markets. But, lo, companies just overleveraged themselves, adding up risks on their books, subsidising wealthier homeowners and leaving the whole society to bear the costs. In the blurb of the book itself, while referring to futility of excessive government interventions, there

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_llhp= is a mention of charting out a blue print based on publicprivate partnership for better organising and managing government-sponsored enterprises. The authors – Viral V. Acharya, Matthew Richardson, Stijn Van Nieuwerburgh, and Lawrence J. White — are professors at the Leonard N Stern School of Business at New York University. While all of them are experts in applied finance. White has also served on the board of Freddie Mac. Beginning with an interesting anecdote from the nineteenth century novel Frankenstein by Mary Shelley in which the monster destroys its creator. In the chapter, ‘Feeding the Beast’ further quotes Ralph Nader who documented about interconnections between governments and Fannie and Freddie:…Born of the federal bureaucracy, these enterprises have swiftly and skillfully managed to pick up the roughshod tactics of the private corporate world and at the same time cling tightly to one of the federal government’s deepest and most lucrative welfare troughs … The combination has produced two big GSEs that are not only big to be allowed to fail but too influential and too politically connected to be regulated. Needless to say, authors have laid bare the way a key component of the US financial system got distorted and how the process was aided by the government for decades. Drawing a parallel with India’s UTI’s flagship US 64 in one of the chapters in which authors lament the influence of GSEs in the economy which eventually end up doing exactly the opposite of what these are set up to do. Armed with statistical presentation in graphic and tabular form, most of chapters intensify debate over Fed’s support for the GSEs. In chapter 7 titled as, ‘How others Do It”, the book explains, “While countries organise their housing and mortgage markets quite differently across the globe, very few have the level of government support for home ownership of the United States. Indeed. None have institutions quite like Fannie and Freddie … Is a high level of government participation in mortgage markets necessary?” Earlier, in Reckless Endangerment, Gretchen Morgenson, a veteran New York Times reporter, and Joshua Rosner, a consultant, provided the best account yet of how the US financial system went off the rails. However, in Guaranteed to Fail, a more detailed analysis was presented by three authors who join up the dots between Federal government, interest groups, GSEs and Wall Street which other books had failed to link. It also offers other useful things; the most important is a comparison of US’s mortgage system with those of other countries. But main features of the book relate to ways and means to what authors put in chapter titled, ‘How to Reform a Broken System’: The goal of reforming the housing finance is to ensure an efficient market, both in primary (origination) and in secondary mortgage markets … by an “efficient “mortgage market, we have in mind a housing finance system with the following characteristics:

1. Such a system doesn’t engender moral hazard issues in mortgage origination and securitisation. 2. If any market failures exist, a housing finance system corrects them… 3. It maintains a level playing field between the different financial players in the mortgage market to limit a concentrated build-up of systemic risk. 4. The system features market pricing of risks as well as charging for implicit or explicit government guarantees. So, there is a detailed template for reform. Book calls for Fannie and Freddie will dramatically shrunk and their subsidies to be explicitly recognised on the federal books. If government has to play a role in insuring the mortgage system against financial catastrophe, authors stress the need for a new type of public-private partnership (PPP). In this model, the private sector prices the risk but insures only a portion itself, with the government covering the rest as a silent partner and receiving the corresponding premiums. Moving to such a mechanism would be far from easy, given the political support of the GSEs. Authors declare:...Our preferred long-term solution is a discontinuation of the GSEs in their current form: (1) elimination of their trading or "hedge fund" function, (2) a private sector solution for their guarantee function (with or without a private/public sector insurance partnership), and (3) a hand-over of their low-income home ownership programs to the Federal Housing Finance Agency (FHFA). In the epilogue which moves with Keynes’ quote that says that the difficulty lies, not in the new ideas, but in escaping from the old hones, the book makes a sweeping statement about the dilemma modern capitalism faces: It is certainly true the vast expansion of mortgage finance could not have taken place without the involvement of the GSEs. But why was this expansion necessarily a good thing? The current administration is desperately trying to keep the market afloat, even though all economic signs point in the opposite direction. However, authors with all their bashing and criticism are also convinced that their proposal will result in reduced subsidies to homeownership. Again, how much it will affect low-income families depends on the extent of support given to the Federal Housing Agency (FHA). Extending the private/public insurance to non-conforming loans will also benefit lowincome families. In short, though the book specifically targets or rather pinpoints weaknesses in the US financial system and comes out with an alternate module to make mortgage financing selfreliant, it also raises pertinent question about the excessive government intervention. Guaranteed to Fail is an incisive, informative and invigorating book and has a mesmerising impact on readers who are curious to know how to sustain and survive when a behemoth fails to deliver.

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IS THE GPA ERA OVER? As the judgement has come from the highest court, real estate seems to be in a tizzy. Thatâ&#x20AC;&#x2122;s why we at Property Observer decided to explore its legal impact in a clear way to stop misgivings, if any. Prachi Gupta, a Delhi High Court advocate, has taken a painstaking effort to analyse the importance of the verdict.

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ibd^i hough it is tough to indicate the market size of General Power of Attorney (GPA) transactions, some rough estimates suggest this could constitute as much as 70 per cent of the total real estate deals in Delhi-NCR. The Supreme Court referred to rampant use of GPA to transfer properties in Delhi, Punjab, Haryana and Uttar Pradesh. It said that it aimed to put a stop on the practice and check generation of black money.

GPA registration mandatory for mutation of property. Since 2001, mutation is allowed only if the general power of attorney document is registered, along with a registered agreementto-sale deed. However, with a large number of people yet to go for mutation, the future looks uncertain. The judgment is a rude shock for those who have been banking on the GPA to help them dispose of their property by skirting taxes or simply taking a short cut to owning the property.

The judgment passed by the Apex Court is not only the findings and views but it is the law in existence. The Apex Court has already passed number of orders and directions in this regard. The GPA/SA/WILL method for the sale/purchase of the immovable properties is evolved to avoid payment of stamp duty and registration charges on deeds of conveyance, to avoid payment of capital gains on transfers, to invest unaccounted money(‘black money’) and to avoid payment of ‘unearned increases’ due to Development Authorities on transfer.

The Supreme Court judgment will affect properties which are bought solely on power of attorney and registry of the property is never done. What it means is, let’s suppose, I sell my property to someone and give him just a power of attorney stating that this particular person will be responsible for taking care of this property and his rights are revocable and that he can further assign these rights to someone else without my consent. Since the property in question is never registered, money and property can exchange a lot of hands (all black money) without government getting its share. Majority of transactions in Delhi (especially business areas) are done through GPA and SA and this ruling will affect them. Unauthorised colonies will also be affected by this ruling.

Bad Effects of Such Transactions

Recourse to `SA/GPA/WILL' transactions is taken in regard to freehold properties, even when there is no bar or prohibition regarding transfer or conveyance of such property, by the following categories of persons: (a) Vendors with imperfect title who cannot or do not want to execute registered deeds of conveyance. (b) Purchasers who want to invest undisclosed wealth/income in immovable properties without any public record of the transactions. The process enables them to hold any number of properties without disclosing them as assets held. (c) Purchasers who want to avoid the payment of stamp duty and registration charges either deliberately or on wrong advice. Persons who deal in real estate resort to these methods to avoid multiple stamp duties/registration fees so as to increase their profit margin. Whatever be the intention, the consequences are disturbing and far reaching, adversely affecting the economy, civil society and law and order. Firstly, it enables large scale evasion of income tax, wealth tax, stamp duty and registration fees thereby denying the benefit of such revenue to the government and the public. Secondly, such transactions enable persons with undisclosed wealth/income to invest their black money and also earn profit/income, thereby encouraging circulation of black money and corruption. The GPA/SA/WILL based sales/transactions are very common in Delhi-National Capital Region (NCR). Most property transactions at Mahipalpur, Chhatarpur, Rangpuri, Maidangarhi and Najafgarh are based on the general power of attorney. The GPA/SA/WILL based transactions are the preferred modes of transaction wherever property registration is a legal issue. It was in September, 2001, that DDA made

As far as the RE prices are concerned, it looks like properties with clean title will fetch a premium. This verdict is also going to bring down the price of several unauthorised colonies in Delhi/NCR, where people were speculating the regularisation and buying properties keeping that in mind. Further, the Apex Court has made it clear that if the documents relating to `SA/GPA/WILL transactions' have been accepted, acted upon by DDA or other developmental authorities or by the Municipal or revenue authorities to effect mutation, they need not be disturbed, merely on account of this decision. And also the aforesaid observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. The judgment of the Supreme Court shall reduce the danger of operation of land mafia/hooligans whereas it is an incentive to all the genuine transactions. It shall also reduce the litigations due to defective title and increase the revenue collections by way stamp duty, registration charges, tax payment etc. This judgment may also be called a boon to the bonafide purchasers wanting to own a property with an assurance of good and marketable title.

Prachi Gupta Delhi High Court Advocate

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Signing

10 THINGS BEFORE

A PROPERTY DEAL

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here can be two broad classification of property which a buyer can buy: Commercial Property and Residential Property. Commercial Property includes office buildings, industrial property, medical centers, shopping centers, farm land, etc. Property which is zoned for single-family homes, multi-family apartments and townhouses are covered under Residential Property.

People while investing money in a property, tend to overlook few things which end up incurring losses for them. Most property transactions in India happen without verifying the facts. We advise that the purchaser should carefully examine the following matters:

1 2

The title of the seller must be clear and free from any encumbrance. Before you buy a property, verify the title of the seller. A search of the records at the sub-registrar’s office may be carried out for documents that may affect the property and may have been registered. The buyer must find out whether the property is freehold, leasehold, etc so that it could be ascertained that the seller acquired it in a lawful manner. The source of title may be traced from any of the following documents depending upon the nature of transfer of property:

Right of purchase…….........................… Sale Deed Inheritance……....................….Entries in Revenue records, and predecessor's title Partition……………........……. Deed of partition

6 7 8 9

Gift……………….............… …Gift Deed Settlement………............……..Deed of settlement Grant…………...................…..Grant order Lease………… .............……..Permanent lease

3 4 5

The encumbrance certificate is vital for property buying, whether it is for home loan or loan against property. It ensures that the land does not have any legal dues. Government Authorities and Financial Institution like banks etc demand 13 years of encumbrance check. A property is involved in litigation cannot be transferred as the decree is going to affect the rights. It should be verified from the concerned court if there is any litigation on the property to be purchased. Verify if there are any objections in revenue, municipal offices about inheritance or any other matter.

If seller is a power of attorney holder, it should be verified from the principle if such power of attorney is genuine and whether it is still in force. It should be verified whether the transaction is opposed to public policy. If the sale transaction is against the public policy, the document will not be registered. If the property is a granted land to the member of scheduled caste and scheduled tribe, it should be verified whether permission of the government is obtained for transfer as this is not permissible under law. Make sure that contract terms are workable for you. If they are not, attempt to negotiate terms that are more reasonable for instance levy of additional charges, late payment charges, payment methods, dispute resolution etc. The buyer must ensure that the builder has an approved building plan, layout plan and floor plan which need clearance from the Corporation or the concerned authority. After completion of project, builder has to get completion certificate from concerned authority to ensure that construction of building is as per the approved plan.

Sanjay K Chadha BSK Legal Solicitors & Advocates

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GOLFING PROLONGS LIFE SPAN Golf is a game that burns up calories, reduces cholesterol and can reduce stress. It is great for keeping you slim and trim. â&#x20AC;&#x201D; Property Observer Desk

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Golf Estate Leads the way!

Golf Estate Developers like M3M in Gurgaon can actually extend your life span whilst offering you a grand lifestyle.

Golf can be a good investment for the health

Scientists from Sweden claim death rate for golfers is 40 % lower than for other people of the same sex, age and socioeconomic status, which correspond to a 5 year increase in life expectancy. M3M Golf Estate is one of the best choices as it is the only â&#x20AC;&#x153;in-cityâ&#x20AC;? golfing lifestyle residences in Gurgaon.

Golf and impact on health

It is a well-known fact that exercise is good for health, but the expected health gains of particular activities are still largely unknown. A team of researchers from Karolinska Institute has now presented a study of the health effects of golf as a low-intensity form of exercise. The study shows that golf has beneficial health effects. The death rate amongst golfers is 40 per cent lower than the rest of the population, which equates to an increased life expectancy of five years. There are several aspects of the game that are proved to be good for the health. People play golf into old age, and there are also positive social and psychological aspects to the game that can be of help.The study does not rule out that other factors than the actual playing, such as a generally healthy lifestyle, are also behind the lower death rate observed amongst golfers. However, the researchers believe it is likely that the playing of the game in itself has a significant impact on health. Coupled with this is the world-class M3M club, with over 1,25000 sq.ft. of spas, gym, pools and tennis courts.

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Benefits of Golf Golf and exercise

Golf is a game that burns up calories, reduces cholesterol and can reduce stress. It is great for keeping you in trim. Everyone knows that walking is the most fundamental of all exercise programs. So, it makes sense that walking a 9-hole reversible golf course would be considered good for you.

Cardiovascular work out

Brisk walking is known to increase cardiovascular capacity, improve your lung capacity and your blood flow. When playing golf, heart rate pumps away at between 90 and 120 beats per minute. This low intensity workout is perfect for gently burning off fat. Even the simple act of swinging club or bending down to place a ball on its tee or pick up a ball helps keep joints supple and muscle groups in trim.

Mental health

Playing golf is not just physically good, but it also releases powerful, natural, mood enhancing drugs called endorphins into the bloodstream. It offers a mental challenge. Counting endless shots, working out the Stableford score or just calculating yardages and club selection are all mental exercises.

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Find new friends

Golf is a social game, a chance to get to know someone better, that's why so many business people play golf. A round of golf can take a few hours where individual differences disappear as playing the game becomes the common focus. Most golfers play with family or friends but most are happy to join up with a single golfer to make a three or four ball group. Also, the etiquette and rules of golf encourage care and respect of others and the course. The Graham Cooke designer golf course at M3M Golf Estate is a great “pitch-n-putt”, 9-hole reversible golf course.

Sleep better

Study after study has shown that regular exercise increases the positives that sleep brings. You’ll fall asleep faster and remain in a deep sleep for a longer period of time with regular exercise, which includes activities like golf. Sleep is important because it allows time for your muscles to repair themselves. Playing a round of golf by day will likely increase the quality of your restfulness by night. Golf provides a stimulating challenge combined with a healthy walk in pleasant surroundings and can be played by people of all abilities and ages. Playing golf regularly can help you stay fit, improve muscle tone and endurance, and lose weight and body fat. Also, it is a very social and enjoyable sport.

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POOLING AROUND

Apart from using the pool for swimming in summers, it is now used for throwing pool side parties as well as it adds value to the property. —Property Observer Desk

he next time you jump into the swimming pool at your lifestyle resort, pause and take a look around. In most cases, you’re likely to be in a pool which is attractively designed and could be of an unconventional shape. You’ll surely appreciate the avantgarde design of the pool, a far departure from the typical rectangular pools that were a staple of hotels and condominiums even a decade ago.

Swimming pools, rather designing, construction and maintenance of pools, have emerged as a niche lifestyle product segment in India. Besides designing and constructing pools and spas, per se, swimming pool companies provide water filtration and treatment services. Premium Pools: Aims to design and construct the best swimming pools, spas and landscapes in India, for all budgets and lifestyle and has a flair for design and the ability to produce a quality product on every occasion. It brings together human creativity and computer accuracy to create the most advanced design in above-ground pools. The components are carefully crafted using the latest materials which results in a product that performs as well as it looks for

years to come. It provides the perfect backdrop for a lifestyle you deserve. Its dexterity in making pools is evident from the wide range that it provides. “We design and construct pools, spas and landscapes and cater to all budgets and lifestyles,” says Vivek Mishra, Director and Technical Head, Premium Pools, one of the pioneers in the field of constructing designer pools. His company forges an assimilation of human creativity and technical accuracy so as to build the best above-ground pools, Mishra adds. The advent of these designer pool companies have led to some of the most eye catching pools we see today. Here are some of the pools that one can get to see these days. Free-form pools: This style of pool designing is very comfortable and allows retreating to a cosy and private corner akin to drifting aimlessly on a raft. People often compare it to a mountain or oasis like retreat. Therapy pool: In which hot tubs and spas are pools with hot water, used for relaxation or therapy, and are common in homes, hotels, clubs and massage parlours.

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Wading pool or kiddie pool: Is a small shallow area of water in which small children or adults can get their feet and lower bodies wet. Indoor swimming pools: Indoor swimming pools, while still considered a pretty fancy feature in the home, are truly gaining popularity in mainstream India. Outdoor swimming pools: Outdoor swimming pools can be of many types like garden pools, terrace pools, stream-fedscenery pools etc. Custom pool designs: Customers often prefer a particular type of pool comprising some personal preferences or customised features. These include the beach entry or the vanishing edge. The reason behind the increasing popularity of designer pools is that apart from conventional swimming, diving and several water sports activities, splashing around has always been an amusement sport, especially for the kids. With a pool in your house you get to know who your children are going around with as their friends visit their house instead of them going out. Pool activity is at its height during the summer months when the mercury touches a new high almost every day. It costs lesser to have a pool in your backyard than even a mid size car. People head for amusement parks or water theme parks during this season to escape the unbearable summer. The myth among people is that its about

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consumption of water to have a pool, but actually it is about conservation of water as we hardly change the water of pool even once in a year. Even winter, these days see people heading towards the pool as the temperature of the water is kept warm. And what could be more refreshing and invigorating than a warm leisurely dip in a warm pool. The business of swimming pool construction is booming as well. What was considered niche even about a decade ago has seen the influx of several new players. With the realty sector witnessing renewed activity following several years of slump, the construction is thriving again. Condominiums, lifestyle resorts and amusement and theme parks are being set up all over the country. Most of these installations comprise designer pools which calls for expertise to build them. Hence, the requirement of swimming pool designers and constructors. It takes just 30 feet by 15 feet of the kitchen garden space to accommodate a pool in your back yard. It does not take more than 45 working days to have a swimming pool constructed in your back yard, if you have opted for the right swimming pool builder. Apart from using it for swimming in summers, pool is now being used all the year round for throwing pool side parties etc. as well as it adds value to the property. â&#x20AC;&#x153;We have countless choices of contemporary and functional swimming pools that cater to all swimming related needs. Ours is a name that you can blindly trust on this regard. We give that extra edge in making the pool,â&#x20AC;? says Mishra.

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Chaudhary Raghvendra Singh DLF Founder

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FRONT RUNNERS OF INDIAN REALTY They came, they saw and they conquered. These are the realty majors who after decades of conceptualising, planning and executing made Indian realty estate where â&#x20AC;&#x201C; Property Observer Desk it is now.

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DLF’S VISION IS TO CONTRIBUTE SIGNIFICANTLY TO BUILDING THE NEW INDIA AND BECOME THE WORLD’S MOST VALUABLE REAL ESTATE COMPANY.

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n Delhi-NCR, you mention the name of any developer and first one that will strike you is none other than DLF. Such is the prominence of this real estate company, which is, more often than not, is identified as the maker of the Millennium city — Gurgaon. DLF was founded by Chaudhary Raghvendra Singh in 1946. Now, his son-in-law — Mr. Kushal Pal Singh — is the Chairman of this company, regarded as the largest real estate firm in India.

DLF's primary business is development of Residential, Commercial and Retail properties. The company has developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949. Since then DLF have been responsible for the development of many of Delhi’s other well known urban colonies, including South Extension, Greater Kailash, Kailash Colony and Hauz Khas. From developing 22 major colonies in Delhi, DLF is now present across 18 states (about 28 cities) in India. The company has 349 msf of planned projects with 44.9 msf of projects under construction. Its residential projects are: The Summit, The Pinnacle, The Icon, The Royalton Tower, The silver Oaks, The Beverly Parks, The Regency Park-II, The Hamilton Court, The Windsor Court, The Richmond Park, The Oakwood Estate etc. Its commercial projects are: Corporate Greens, DLF Building 7B, DLF City Centre, Grand Mall, IBM Tower, DLF Gateway Tower, DLF Square, DLF Infinity Tower, DLF Cyber Greens etc.

THE GOLDEN REALTOR Mr. Kushal Pal Singh Chairman, DLF

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BLAZING EXCELLENCE Mr. Ramesh Chandra Founder & Executive Chairman Unitech

nitech is a leading developer in India and till recently, it was touted as the second largest real estate company by virtue of its landholding and market capitalization. It was established in 1972. Mr. Ramesh Chandra, who founded the company, is now its Executive Chairman. At present Unitech is in number of operations which include construction of highways, power transmission lines, residential projects, hotels, indoor stadiums, steel plants etc. Today, the company’s presence is almost all places in India such as: Delhi/NCR, Chandigarh, Mohali, Dehradun, Bengaluru, Siliguri, Agra, Varanasi, Bhopal, Nagpur, Mumbai, Hyderabad, Chennai, Mysore, Kochi etc. Nirvana Country, in Gurgaon, is a great example of company’s unique creation. Unitech homes promise to be a worthwhile experience to live through. Its projects are: Unitech Corporate Parks, Uninor, Uni Homes, Unitech Infra etc. Unitech’s vision is to be leading Real Estate Company with a pan-India footprint.

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UNITECH IS A LEADING DEVELOPER IN INDIA AND TILL RECENTLY, IT WAS TOUTED AS THE SECOND LARGEST REAL ESTATE COMPANY BY VIRTUE OF ITS LAND-HOLDING AND MARKET CAPITALIZATION.

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THE ROYAL REALTOR Mr. Navin M Raheja Chairman & MD, Raheja Developers Ltd. r. Raheja is an entrepreneur and visionary par excellence. It has been primarily his vision, determination, dedication and untiring efforts that has led the company to reach its present heights. His farsightedness for the infrastructural development in the National Capital Region is widely acknowledged by everyone including government, industry, media; as well as the common man. He was awarded the ‘Top Managing Director’ Award by the Institute of Marketing & Management, Delhi. Mr. Raheja is a firm believer in technology up-gradation, innovative designs and quality product. His remarkable talent for inking even the minutest details helps in keeping to his commitments and in delivering the projects ahead of schedule. This sets him apart from the others in this industry.

Raheja Developers came into existence in 1990 with the launch of major real estate projects starting with a farm house colony in Gurgaon as well as bringing in the first big apartment complex in Nainital. There has been no looking back since then. It was his dynamic leadership, that led the company to achieve such high stature in professionalism, quality controls and integrity in the Realty

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sector in India while keeping the company virtually debt free and free from outside funding. It is one of the most highly awarded Real Estate companies in the country. The company has won over 44 Awards of national and international acclaim between 2009-2011, notably CNBC, CRISIL, Bloomberg, CIDC (under the Planning Commission, Govt. of India). Asia Pacific and Cityscape for best Residential & Commercial developments. Recently Raheja Developers was bestowed with the internationally prestigious “Best Developer In India” by Euromoney Real Estate Polls, 2011, UK and the ‘Best Developer Worldwide Award’ by OPP Awards for the year 2011. The company, apart from having one of the largest land bank of execution-able projects, has many firsts to its credit in the country such as being the first large notified SEZ Developer, first in situ slum redeveloper with DDA in Delhi and having presence in all segments of real estate be it Housing, Commercials, Malls and Multiplexes, Townships, Hotels and Hospitality, Luxury villas & Condominiums or EWS housing.

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PROMOTING GREEN ARCHITECTURE Vidur Bharadwaj Director, The 3C Company he driving force of GREEN ARCHITECTURE, Mr. Vidur Bharadwaj is the initiator of sustainable developments in Delhi and NCR, his pretense as a Director of The 3C Company, showcases his unwavering commitment to create buildings that are sustainable in form, function and use that has shaped the mandate of The 3C Company and set very high standards in the concept of green construction for others to follow. A graduate from School of Planning and Architecture, Delhi, Vidur has taken his creativity to new heights with his dynamic and innovative designs that have brought accolades for him and his team. It is under his visionary leadership that The 3C Company has been recognized as the pioneer in sustainable green developments in Delhi and NCR. Patni Campus in Noida and Wipro Campus in Gurgaon are classic examples of Green Buildings where in they are saving up to 48% on their energy costs.

He is the Chairman of Indian Green Building Council (IGBC), Delhi Chapter. Vidur is also the Advisor for Hong Kong Development Group on â&#x20AC;&#x153;Sustainable Ar-

chitecture in Urban Citiesâ&#x20AC;? and the Managing Partner of Design and Development, the only architectural firm in India, which is in the process of being awarded carbon credits for Green Buildings. An avid reader and orator, Vidur has been contributing articles in various publications of repute. He remains the foremost choice as a speaker at many national and international forums that revolve around the discussion of reducing carbon footprint on the earth. He has received many accolades such as: n The only architect in the world to have designed THREE PLATINUM and FOUR GOLD rated LEED (Leadership in Energy and Environmental Design) certified Green Buildings under the USGBC (United States Green Building Council) umbrella. n In 2005, he was felicitated by the then President of India - Dr. A. P. J. Abdul Kalam for developing the largest most environment friendly Platinum rated LEED building in the world for Wipro Technologies, Gurgaon.

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mrapali, a prominent player in the real estate sector is built on the pillars of profound vision of quality and commitment towards society and national priorities. The man behind the success of this incredible group is none other than Dr. Anil Kumar Sharma, ably supported by skilled and highly well qualified team of Executive Director Shivpriya, Directors Ajay Kumar, Mohit Gupta, Suvash Chandra, Nishant Mukul and Amresh Kumar. Dr. Sharma started his professional career as a bureaucrat with the Bihar Civil Services before his passion for tall buildings propelled him into the realty sector. Armed with a degree in civil engineering from IIT Kharagpur, completing his MBA and Law from Patna and doing his doctorate from Sri Lanka, Dr. Anil Sharma is today the CMD of Amrapali Group. Amrapali Group in Noida is also emerging as a favourite destination for cricketers to buy property. Team India captain and Amrapali Group brand ambassador Mahendra Singh Dhoni and Medium Pace bowler RP Singh have their own flats in Amrapali Sapphire at sec-45 Noida. Within a short span of time the group has grown

into a brand to be reckoned with. With 45 projects in 22 cities during 12 years of its existence, the group is on a high class construction spree keeping energy efficient and environment friendly features on priority. Having taken Amrapali to great heights by constructing over 4000 residential flats, the group diversified into townships, malls, commercial complexes, IT parks, hotels and hospitals. Apart from DelhiNCR, the group has a strong presence in cities such as Bhilai, Lucknow, Bareilly, Vrindavan, Muzaffarpur,Purnia, Jaipur, Udaipur, Kochi and Indore. Its project includes: Amrapali Sapphire, Amrapali Zodiac, Amrapali Silicon City, Amrapali Heartbeat City, Amrapali Hanging Garden, Amrapali Empire, Amrapali Platinum, Amrapali Golf Homes, Amrapali Leisure Valley Villa, Amrapali Leisure Park, Amrapali Centurian Park, Amrapali Terrace homes, Amrapali Dream Valley Villas, Amrapali Dream Valley High Rise, Amrapali La-Residencia, Amrapali Spring Meadow, Amrapali Royal, Amrapali Village I, Amrapali Village II and Eden Park etc. Amrapali Group stands out with its steadfast dedication to quality and delivering projects on time.

THE RISING STAR Dr. Anil Sharma CMD, Amrapali Group

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A VISIONARY PAR EXCELLENCE Sushil Ansal Chairman, Ansal API

ushil Ansal is the Chairman of Ansal API, one of India’s leading real estate infrastructure conglomerates. Regarded as one of the doyens of the real estate development business in India, Ansal was primarily responsible, in the early 1970s, for changing the skyline of downtown Delhi and converting the Connaught Place area into a contemporary central business district, with the capital’s first high-rise buildings. Born into a middleclass home and to a remarkable father who combined Gandhian austerity with entrepreneurial zeal- giving up, in the 1940s, a secure government job to set out on his own- Ansal has been true to this ethos. From its native village in Punjab to its beloved city of Delhi, the Ansal family has made a tradition of giving back. Ansal’s projects have taken him across India and the world. The Ansal signature is visible as far apart as Palam Vihar in Gurgaon and St Petersburg in Russia. Past 70, Ansal remains active as ever. He is now incubating two hi-tech townships- one in Lucknow, the other adjoining Noida- that he promises will remain state of the art, even in the closing years of the twenty-first century.

As part of a small group of business leaders who urged the government to open up the real estate sector, he has contributed to the regulatory transformation that has underpinned a series of privately built townships (many of them bearing the Ansal name) and given the national capital region and neighbouring states an array of modern urban spaces, creating millions of first-generation homeowners. Sushil Ansal sees this as the most important part of his legacy, one that will occupy him for the rest of his days.

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STAR STUDDED REALTY The trend of brand ambassador endorsements has picked up of late as the realtors believe that celebrity promoted project works well on customerâ&#x20AC;&#x2122;s psyche. â&#x20AC;&#x201D;Hariom Tyagi

eal estate developers in India have come off age, not only in developing innovative townships but the way they are marketing themselves. Market forces in the recent past have also made it important for the real estate players to make their presence felt. So, we see a lot of developers coming up with brand ambassadors to put seal of authenticity and quality to their projects. Emotions and bonding are the two factors that work in India and developers are using it to the best of their advantage. In residential real estate, one has to communicate and give a feel of bonding. Level of communication, has risen because intellectual quality of the customer has gone high. We must understand that the

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romance with residential possession is not over as yet; in fact it has begun. Middle class is trying to secure old age security, as other forms of investment like banks are not giving good interest; they have no choice but to buy a second home, which can be encashed during old age. Delhiâ&#x20AC;&#x201C;NCR-based real estate developers enrolled celebrities as brand ambassadors to encash their pan-Indian cult status. In order to reach out to the customers in a rapidly expanding real estate sector, developers signed on cricketers and other popular celebrities

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as their brand ambassadors. With the expansion of real estate sector, the customer base has also grown fast which has underlined the need for new companies to reach out to the customers in a fashion that instills confidence in buyers/investors. Roping in celebrities with whom people relate easily means that developer has that edge to cement the confidence as people believe celebrities get attached to someone only when they are assured of a particular company’s good intentions. Brand ambassadors are the new-found marketing mix for real estate sector. Last year we saw many celebrities from Bollywood, sports and glamour world enter the realty sector as brand ambassadors of prominent developers.

Real Estate shakes hand with fashion world

Luxury lifestyle is all set to get glamorous by adding new feather to its cap by embracing the fashion designers in the property business. The fashion designers are getting associated with the various top notch residential projects. The designers are aiming towards shaping up the projects akin to their clothing lines which are exclusive in nature.

Recently, Jade Jagger, daughter of the iconic rock singer Mick Jagger, was seen imparting her magical touch as a designer to 70 apartments, in Equinox Realty’s 400-unit housing project in Hebbal, Bangalore. All these apartments with 4,000–6,000 sq. ft. are going to be sold within the price bracket of ` 5 crore- `10 crore. The other assignment in her kitty is for Lodha’s Fiorenza project coming up off the Western Express Highway in Goregaon, Mumbai. According to a prominent real estate consultancy, the 4tower project consists of 2, 3 and 4 BHK apartments which is priced between `1.71 crore and `4.87 crore. Following on the heels of the trend, is Panchshil Realty which has an agreement with yoo, a global interior design firm which was established by Philippe Starck. Panchshil Realty has approached the firm for their upcoming project in Kharadi. The units have monetary value of `15,000 per sq. ft. and are apportioned from 5,110 to 6,900 sq. ft.

Kolte Patil’s Glitterati project in Wakad, Pune is having its interiors designed by none other than Gauri Khan. In past, Parmeshwar Godrej has been associated with interior designing of a 3,401 sq. ft. apartment in Planet Godrej in Mahalakshmi, which had a reserve price of `15 crore or `44,000 per sq. ft. Samira Habitats, located at Mumbai, is a lifestyle infrastructure company has introduced its trademark villas in Alibaug which has been styled by Sabyasachi Mukherjee, a well known fashion designer. The brand name, no doubt, matters; but the developers are now associating celebrities (some of whom have national and international presence) with advertisement campaigns. The concept was at a nascent stage in the NCR, but once it was tried, it took the sector by storm. Popular cine stars and cricketers like Twinkle Khanna, Kangna Ranaut, Rajeev Khandelwal, Prachi Desai, Bipasha Basu, Sushmita Sen and Virender Sehwag. We have Rishi Kapoor and Neetu Kapoor for Gaursons India Limited, Praveen Kumar and Raina for VVIP, MS Dhoni for Amrapali, Kangna Ranaut is the face of Ajnara Homes, and Yuvraj Singh is the face of Investors Clinic, a real estate consultancy, to name a few. The trend of choosing brand ambassador has picked up because people know that the celebrities choose brand they promote very carefully and this aspect works well on the customer psyche. A celebrity not only brings the face value to the company but also bring in goodwill to the company. Ashok Gupta, the managing director of Ajnara India Ltd, says: "Ajnara is a brand which offers affordable to luxury housing options with quality and bring high levels of professionalism to the trade. Kangna is one of the very few

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â&#x20AC;&#x153;

Real estate developer, Krrish Group, launched its first project Provence Estate - with Bipasha Basu endorsing it. People have started associating them with Group whenever they see these celebs anywhere. This kind of connection with the endorsers and the recognition among people was what we expected and we have achieved it, MD Krrish Group says.

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“

Roping in celebrities with whom people relate easily means that developer has that edge to cement the confidence. — Indian Cricket Captain M.S. Dhoni is brand ambassador for the Amrapali Group

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pefkfkd=elofwlkp actresses who has achieved stardom in Bollywood in a very short span, though coming from an ordinary family. She is today the epitome of style and fashion, yet so humble. We believe that this would help our brand connect with our buyers well." Prashant Tiwari, the managing director of Prateek Group, says: "The basic idea is to make a person feel comfortable when buying an apartment. This is a one time purchase and having a brand ambassador does help in people connecting with the developer." Prateek Group has not one but two brand ambassadors— Rajeev Khandelwal and Prachi Desai. Both are well-known faces from Bollywood, who have been associated with the Group for nearly two years now. “It has helped us in getting good brand visibility as not only the old generation but present generation too, is smitten by Rishi Kapoor and Neetu Kapoor. Having said that brand ambassadors help in brand recall and instant attention, it is important to keep the quality and timely delivery in mind. No marketing initiative can be successful if we fail to deliver on these basic counts,” says Manoj Gaur, MD, Gaursons India Ltd. Experts believe that these initiatives by big names in real estate have started a trend in re-branding and brand recall. The psyche behind this concept is simple. “People want to see a reflection of their role models in everything they do including buying property. A common man never checks the internal working criteria of a company. What they will see is how good a company represents itself and interacts with consumers. That's why brand ambassadors are the best medium to reach the target consumers because they can communicate the positive aspects about the company (they represent) and attract the best possible clientele required to stay ahead in the industry,” says Praveen Tyagi, CMD, Vibhor Vaibhav Infrahome Pvt. Ltd. (VVIP). Real estate developer, Krrish Group, launched its first project - Provence Estate - with Bipasha Basu endorsing it. “People have started associating them with Group whenever they see these celebs anywhere. This kind of connection with the endorsers and the recognition among people was what we expected and we have achieved it,” MD Krrish Group says. However, choosing a brand ambassador is one herculean task because the choice should be acceptable by one and all. Honey Katiyal, CEO, Investors Clinic, says, “A popular personality who gels with the vision of the company is chosen as the brand ambassador. We have to make sure that the image of the celebrity chosen is in line with the clientele that we are catering. Yuvraj Singh is flamboyant and a swashbuckling batsman. All these qualities are reflected in the working of our company also." Real estate analysts believe that such initiatives picked up after the slowdown as it became important to win back the customer confidence. We have to understand that business

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Ajnara is a brand which offers affordable to luxury housing options with quality and bring high levels of professionalism to the trade. Kangna is one of the very few actresses who has achieved stardom in Bollywood in a very short span, though coming from an ordinary family. outlook changes sentiment, and sentiment changes perspective. So even the companies, which were lying dormant earlier are making full use of their energies to come back. We must keep in mind that Jo dikhta hai, wahi bikta hai.

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OFFICE VAASTU

Vastu murti paramjyoti Vastudevo parashiva I Vastu devastu sarvesham Vastudevam namamyaham II Shri Vastu devatabhyo namah I

very person spends about one third of his time everyday in the office. As vastu affects oneâ&#x20AC;&#x2122;s life in his house, it equally influences his work efficiency and progress in the office as well. Where he sits? Which direction he faces? Where is the workshop? Where is cafeteria, washrooms and drinking water? Where the CEOâ&#x20AC;&#x2122;s office located? Where are the electrical panels and generators installed? These are some important questions, if not answered in line with Vastu principles, could adversely impact the growth of the office or factory. Vastu has the solution to all such questions.

Main dictums of Vastu which were discussed in previous issues for a house are applicable in an office also. For example south-east direction belongs to Agni Deva (God of fire). Hence all activities related to fire and high temperature can be performed in this direction. Such activities are

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cafeteria, electrical panels, generators, furnace, boiler, etc. Similarly all heavy machinery should be placed in south or south-west direction to provide stability. East is the direction of knowledge hence, R&D and computers can be placed in east. North is the direction of Kuber (God of Wealth) so this direction is most suitable for finance and accounts departments. North-West is the direction of wind which means any thing placed in this direction will not stay there for long. Therefore, finished goods should always be stored or displayed in North-West direction. To help the readers, note the following important points in relation to office vastu: n n

Entrance in east, north or north-east is recommended. More open space in east and north while less open space in west and south.

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s^^pqr n n n n n n n n n n n n n n n n

Puja and water tab in north-east. Underground water storage in North-East but overhead water tank in southwest is good. Higher floors should be constructed in south west direction. North-East should be left open. Office of CEO / Head of the office / Owner should be located in south-west or south direction and he should face east or north while sitting on his chair. Heavy machines can be placed in south, south-west or west. Raw material storage is recommended in south-west, south or west. Finished goods should be stored and displayed in northwest direction. Cafeteria in south-east direction is most suitable. Boilers, furnaces, electrical panels, generators and transformers are suggested to keep in south-east and south (towards east) directions only. Septic tanks are most preferably located in north or east and avoid north-east. Cabin doors should open inwards. Sales department should be located in north-west and all sales people should face either east or north while sitting. Swimming pool’s best direction is north or east. Stairs should be clockwise and in west or south direction. Reception can be in east, north or north-east. Always keep North-East direction and reception area clean and decorated with fresh plants and flowers. Staff room should be placed in west or north-west direction.

Cash counter and CEO’s chair should not be placed under the beam. n Accounts and finance departments are best in North direction. n Administrative block may prove good in East direction. Additionally, a lion-shaped plot for commercial purpose is considered good. In absence of harmony, among five natural elements – Earth, Water, Air, Fire & Space many problems can be faced by the owner of the commercial establishments. The problems can be sales of finished goods, recovery of dues or receipt of payments on time, support and dedication from staff, good and innovative products, etc. All these problems can be addressed up to some extent by balancing five elements, by applying vastu rules. This not only helps growing the company but it’s employee as well. Before concluding, I suggest everyone to sincerely apply and follow vastu principles in your house and office to achieve success. We will explore vastu remedies in the next issue.

Rakesh Goel Astro-Vaastu Advisor Property Observer

North Uttar

North-West Vayavya

More Open Space Vaya-

Kuber-

Eshawara

Lord of Wind

Lord of Wealth

Puja Room

Granary Cow shed,

Treasury,

Meditation

Toilet

Entrance Door

Varun-

West Paschim Less Open Space

Lord of Rain Dining Hall, Study Room

North-East Ishan

IndraBrahma Courtyard

Lord of Devas Entrance Door, Bathroom, store for oil, Ghee, etc.

Niruthi-

Yama-

Agni God

Demon

Good of Death

Kitchen

Wardrobe, Tools,

Bed Rooms

East Poorva More Open Space

store, Toilet, etc.

South-West Nairuthya

South Dakshin

South-East Agneya

Less Open Space

Figure 1; Disposition of Various Rooms in a House as per Vaastu

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PROPERTY RELATED ZODIAC FORECAST FOR APRIL & MAY 12: The below predictions are based on Moon Sign and planetary positions during April 2012.

Aries: April & May are not a good period for

property related decisions. It is likely to change

Aries to buy or sell the property.

your residence.

Taurus: Till 14th April is not a good month for any type of property dealings i.e. buy or sell. Postpone such decisions till 15th April and then

Virgo: Avoid any property related matters in April and May. It is not the right time from real estate perspective.

Sagittarius: 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. Both - April & May are good months for Sagittarians.

it is a good period till May end. Soft furnishing of the house is indicated.

Gemini: Any dealings related to property during April & May. Losses are indicated.

Libra: Likely to get good gains by selling your property. Second half of April & whole May are best time to finalize real state dealings or even to start a real state project.

Cancer: Good time to buy or sell your property

Aquarius: You may change your residence due to work. You may sell your property now if pending for long time. April and first half of May is a good time to furnish your house.

before 15th April. Avoid such dealings in the second half of April and whole May.

Capricorn: It is not a right time to do any type of property dealings. So, avoid it.

Scorpio: April is not a good month to buy or sell your house but you may be in a critical situation

Pisces: April & May are not very good month

Leo: Right time to buy or sell the property. Sec-

when such dealings become important. Avoid if

from real estate perspective. If possible, avoid.

ond half of April and whole May are better for

possible or take up such activities in May.

You may take home loan.

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TIPS ON BUYING AN UNDER-CONSTRUCTION PROJECT One should think about the pros and cons before buying an under-construction property. So, be aware and up-to-date.

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uying property involves long-term financial commitment, and you have to be in a position to afford the investment. A property under construction would definitely be cheaper than one available for purchase or occupation. The principal initial requirement would be the reputation, caliber and track record of the builder or developer. It is in your best interest to invest with a known and well-placed builder.

The biggest benefit of buying a flat in an under construction project is the “rates” at which you can book the flat because by all means by the the time the building or project is ready and you are handed over possession of your new flat, the prevailing rates would be considerably higher than what you had originally booked the flat for. This happens in 99% of the cases. The benefits ends here though. Buying an under construction flat also carries the inherent risk of delays in handing over possession by the builder or stalling of the project because of the builder not sticking to the prescribed laws and running into legal wrangles leading to a lot of heartburn for flat buyers.

n Check and verify if the necessary permission or sanctions have been obtained for water, fire, electricity and other basic amenities.

Changes In The Original Development Plan

Certain necessary changes are usually permitted and also mentioned in the agreement. Once actual construction begins, there may be grey areas on the blueprints that come to light only later. Sometimes, this may involve new regulations with regards to parking space or other aspects beyond the developer’s control.

Failure To Hand Over The Property On Time

There are certainly such incidences, as can be expected in a largely disorganized market. Generally, reputed builders deliver on time and as per promised specifications. Small developers, however, often default by stretching their projects beyond the promised delivery date – sometimes by as much as a year or more.

The primary disadvantages would be that the property cannot be immediately used for occupancy or renting out, that one’s money is locked into a non-performing asset and that there may be delivery delays or sometimes even defaults, that can have serious financial repercussions.

Often, this is caused by funding issues. They may also skimp on construction costs, banking on the buyer’s ignorance of quality parameters. Sometimes, the drawings they submit to the municipal authorities are not sufficiently detailed, leading to non-approval of their projects. There are also fly-by-night operators who pocket their clients’ up-front payment and then disappear altogether.

Check Before Buying?

Precautions

n Always verify the approved plan of the building and check how many floors have been sanctioned. This obviously means that you need to check if the floor you have booked the flat on is approved. n Confirm the ownership of the land and check if the land title is clear. You need to check if the builder owns the land or if he has got into an agreement with another land owner. Whatever may be the case it’s highly imperative to confirm the ownership of the land and ask relevant questions to the builder to clear the air. n Check if the builder has followed the prescribed bylaws applicable to the location while constructing the building. Any deficiencies on this front can lead to serious consequences both for the builder as well as the buyer. n Verify if the specifications and amenities outlined in the agreement to sale match with what has been promised or portrayed by the builder in his sales brochure. n Check if the location falls under the purview of the Urban Land Ceiling Act. If yes then you need to confirm if the builder has obtained an NOC to begin construction.

n A prospective buyer should check into the developer’s credibility, past projects and performance and delivery record. n The buyer is perfectly entitled to ask for copies of all necessary permissions prior to making a financial commitment. n He should also ensure that the project is funded by a known bank and that the project has all the correct approvals.

If there is any reason for initial doubt, conducting a property purchase through an attorney qualified and experienced in handling real estate-related issues is certainly advisable.

Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India

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URBANISATION REDEFINED In a unique synergy of idea and media, Rakesh Purohit and Property Observer put forward a research paper on model of National Development Authority.

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^asf`b ndia witnessed a rapid growth in terms of industrialisation, economic reforms and induction of new technology in agriculture sector. Second half of 20th century was a turning point for the oldest civilisation of the world. India saw tremendous changes in her socioeconomic scenario after independence. Economic growth brought a shift in urban regions and population in cities started to increase due to heavy migration from rural areas, and the partition also played a major role in Delhi, Mumbai and Kolkata.

People frequently came to cities in search of employment and business opportunities, higher education and better life style and sometimes for better medical facilities from all corners. Cities got their own charm and will always attract rural population to migrate. However, Indian cities were never prepared to face sudden increase in population and it directly affected the infrastructure and created lots of new challenges in front of the administration; such as problem of shelter, law and order situation, education and health facilities. When cities were facing pressure from growing population, unfortunately no policy could be framed to stop these migrations from all corners of the nation. Whatever may be the percentage, we have seen people from south moving

towards northern cities and people from eastern parts have moved to western cities due to economic, social or some time personal reasons. Can we upgrade rural areas by providing urban facilities to stop migration? We must understand that we can only provide some basic amenities to these rural areas like; school level education, primary health facility, connectivity of roads to nearby areas, convenient shopping and business centre to meet local requirements, internet and telecommunication facility to connect people worldwide and facility to organise some local level sports event etc. Rural areas need these facilities in terms of getting quality life, but if we think that it will be able to put a hold on migration from rural to urban areas, itâ&#x20AC;&#x2122;s time to think again. People donâ&#x20AC;&#x2122;t migrate just for life style or job or business, they move out for opportunities, and bigger opportunities and much larger opportunities which they find only in big cities. We must realise that there will always be a difference between rural and urban areas. Rural areas will never be able to match urban infrastructure and opportunities, thus people keep migrating from rural to urban areas.

â&#x20AC;&#x153;

Cities are symbol of civilisation and villages carry legacy of culture and tradition.

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^asf`b We can look at some of the developed countries where despite all modern facilities available in rural areas, majority of the population live in cities.

Do we need cities or big cities?

Yes, countries like India with larger population and growing economy, where majority of people still belong to lower income group or live below poverty line, India need big cities to support her economic growth. Big cities have their own advantages; it is economically viable to create advance and modern infrastructure due to higher population density and people have higher purchasing power in comparison to suburbs and rural areas. It is easy to attract private investment in cities for infrastructure development. It is economically viable to create and maintain advance transportation system, like metro rail network, super specialty hospitals, university (with regular colleges) and technical institutions, sports stadium and any other cultural centre, commercial/industrial/ business zones to support larger business activities.

Need of bigger and better cities

Today is the right time for India to decide future of our cities. Presently, we are either extending city limits or upgrading infrastructure to meet demand of urban population. We need to find some alternatives to manage our urban population it is time to understand that as our economy will grow the urban population is bound to increase

We need to take some major decision and discover what is more feasible to do: (I) We keep extending our existing cities and put more efforts to support the urban infrastructure or

(II) We create new cities with all modern facilities to meet our future requirements.

The challenges ahead

It is difficult to formulate any urban development programme which can be implemented at national level, due to different compulsion of state governments. Even if all states agree to follow one policy, its implementation, style of operational functioning may vary the results. We need to realize one hard fact that poor

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implementations by one state will definitely going to affect growth process of nearby states and other major cities. If people will not find competitive facilities in nearby areas they will not hesitate to move to distant places. The answer to this problem is formation of National Development Authority to make sure that urban India prepares itself for future challenges.

The Proposal On the way to become developed country, we certainly need more urban areas, ideally new cities. Cities equipped with modern infrastructure and to create proper balance of growth between rural and urban areas. Strong URBAN policy can decide fate of RURAL India, itâ&#x20AC;&#x2122;s time to form a national level Development Authority.

I proposed this national development authority to be called as Urban Specialty Housing Authority. The Urban Specialty Housing Authority Development of new town certainly requires a huge investment and resources. Development authority will be responsible for all town-planning activity and will have liberty to invite FDI and any private investment as par central government law or approval. Central government will control administration of these cities through Development Authority. URBAN SPECIALTY HOUSING AUTHORITY will locate new virgin areas having local importance and potential to be developed as future city. State government will provide all necessary support as needed to acquire the land and necessary approval (if any).

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URBAN SPECIALTY HOUSING AUTHORITY will have the liberty to invite joint ventures from private developers for development of such cities provided some of the area to be reserved for housing of lower income group and economically weaker section. URBAN SPECIALTY HOUSING AUTHORITY will work mainly to create new cities within country only but if needed can take up special assignment of commercial value outside India.

Advantages of Urban Specialty Housing Authority Newly formed housing authority will not remain dependent on local resources to develop infrastructure and other facilities it will have liberty to pool its resources and funds from any parts of the country. Housing Authority will not just remove the burden of urban development but also provide platform for rural development for state government.

Why is it an Urban Authority? Every city developed by Urban Specialty Housing Authority must have: n n n n

National/International level Airport Rail and Road Link from other major cities and rural areas, coverage area 50-80 Kms. University and colleges and technical institutions At least, one big hospital equivalent to AIIMS and sufficient medical facility to cater any natural or man-made disaster within 40 km radius.

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n n n n n n n

Business centers and commercial complexes. Industrial Estates Government and other Corporate offices Recreation Centers Places for tourist attraction (i.e. rock garden, zoological park, lake, adventure sports etc.) Sports stadium Cultural Centers

We know that Greater Noida Development Authority has been recently awarded ISO certification and it became the first city of its kind in India and is the best example of PPP (Public Private Partnership); we must find out some midway solution for acquisition issues. But the given example is quoted to indicate execution excellence. Development authority should not overlook the national mission of â&#x20AC;&#x153;Housing for Allâ&#x20AC;? and create more and more areas for lower income group and economically weaker section it is the responsibility of the authority to meet the requirement of their habitat. Other than its social obligations the development authority will have total liberty to use its resources for commercial purposes.

Finance

When we are doing disinvestment in most of the government undertakings why government should need to create a special budget for an urban development authority to make huge investment in an industry which requires heavy investment?

Answer: If we see real estate industry trends in India, we will find that not only private developers but many local development authorities are profit making centers too. A seed capital is an only investment which will be required and rest will be generated from market sources. Real Estate business works on different calculation than any other business; it is an ageold formula what every businessman of real estate industry knows (formula of 10%). You need only 10% investment of your total project cost and the rest in only turnover (a detailed project wise study can be arranged if required). This authority, if given some rights to develop cities in any state, can easily find partners and financers on liberal conditions (a step by step guideline can be provided if required).

Incorporation of Development Authority

Central government can constitute development authority on the Basis of NHAI Act (for an example only) and permit to work on national basis on land related issues. Central government may give some special powers to development authority to enter into agreement with State government and in case of development of cities developed by the authority may intervene into the matter.

Further

Above is only a draft of proposed National Development Authority. If we receive positive response from Central government, a detailed report can be presented along with a model. Similar sustainable program can also be designed for state government. This ideational initiative incorporates a preeminent role of planners, developers, agencies, financial institutions, and common citizenry amidst the clamour for new cities.

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GHOST BUYERS â&#x20AC;&#x201D; Kapil Nepalia

n normal situation, whenever any dispute over housing units arises, it is the builder who is alleged to be the culprit and buyer gets sympathy as a victim. The common refrain is that, builderbuyer relation can never be mutually beneficial as the former sustains on the vulnerability of the latter. But this could be one off story as the reports of builder-buyer nexus, though in a smaller scale, affront us at the regular intervals. This nexus creates a scenario where banks, the lenders, are led to believe that homeloan seekers are bonafide as they are mostly employed with MNCs and blue chip companies with a high salary package and offering them loan is without any risk and default. These buyers are not interested in either buying or investing in property; they are offered a lump sum amount per annum by builders to behave as genuine buyers. The sanctioned amount thus goes to builders who use it to complete their projects. The end result looks fine as far as project execution and fund management are concerned. But all hell breaks when the nexus gets broken and payment crisis appears, living banks shocked and clueless. What buyers do in the above scenario may be a profitable venture for both buyers and builders but is it ethically allowed way to enrich them? Doesnâ&#x20AC;&#x2122;t it help create a superfluous and unhealthy trend in real estate? Ghosts are ghosts; they can never be an alternative to real figures.

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aDvICe Ramesh Chandra, a senior executive with a MNC in Gurgaon was surprised by the unique proposition of earning more than 2,00,000 per annum without investing a single penny. He was approached by a former colleague, so there was no question of holding any doubt on the merit of it. All he had to was sign up an application for a home loan of `40 lakhs. Sayali Mishra, a Sales Manager with an automobile company in Noida is already earning a hefty sum for ‘buying’ a home at greater Noida from the promised `1.2 lakh per annum. She had applied for a home loan of `22 lakhs in January, which was approved by a nationalized bank considering her clean financial record. In both the above-mentioned cases none of the applicants was interested in buying property, but since their financial records are impressive, they are the top priority of money arrangers for the builders. These buyers are termed as ‘ghost or dummy buyers’ in the realty sector. In fact the home-loan scam, where bank employees were found guilty of doling out loans to real estate companies after taking bribes, has made availability of loans tougher for realty firms than what it was earlier. According to the banking rules and regulations, realty firms do not get loans for land acquisitions. However, banks give them loans for construction of housing projects. Since the realty market has not picked up outside metro cities to the pre-crisis period, a number of realty firms are still facing liquidity crunch and their dependence on bank loans is still very high.

The home-loan scam has made availability of loans tougher for realty firms than what it was earlier. Realty firms are facing liquidity crunch and they have no choice but to arrange money from other sources. Ghost buying or Buy Back is emerging as a solution, but is it legally correct? The home-loan scam has made banks cautious in giving loans and it may have put paid to the prospects of several realty firms’ long-term plans. Deepak Parekh, Chairman of HDFC Ltd. the country’s largest home-loan lender, says that after this scam, every lender will be ‘cautious’ while lending to companies in the real estate and infrastructure sectors. The bankers are reluctant to finance developers because they (realtors) have fallen into liquidity crunch. At the same time, the developers are also not seeing much demand from customers in view of the rising prices of houses. Bankers say the liquidity crunch faced by the developers will force them to sell-off properties at a lower price. On the other hand, realtors have no choice but to arrange money from ‘other’ sources otherwise the industry will be forced to see price correction. “We are basically a link between the thirsty and the well. The thirst is at both the ends. Realtors want money at any cost to

WHAT IS GHOST BUYING? Builder launches a project Banks and Financial Institutions deny hefty loans Builder looks for Fund Managers Fund Managers look for Ghost Buyers with good profile Ghost Buyers apply for home loans Bank approve loans Money goes to builder Builder completes project on time develop their projects and attract buyers, while the executives look for ways to add an extra source of income,” says proprietor of a mortgage firm on the condition of anonymity. The need of such fund managers is growing silently all over the country. “The developers all over India are witnessing a liquidity crunch. On the one hand banks are reluctant to finance them; on the other the demand for houses has remained stagnant due to their exorbitant prices. So the developers are not getting finance. As per RBI norms, we can give only certain amount of funds to the realtors but that is not enough,” said a senior bank official. The real estate industry believes that the developers do not get finance because there is a cash crunch among investors. Yet the latest discounts offered in budget have raised some hopes, but that too will take time to launch on ground realities. Besides, the offers are not enough to fulfill the needs of the entire sector. The fund management from abroad too has been affected badly. Housing loan scam and the investigation into alleged wrongdoing in the allocation of 2G telecom spectrum both involve real estate companies. Subhash Bedi, Managing Director of Red Fort Capital Advisors Pvt. Ltd, said overseas investors are being cautious because of devaluation in their real estate portfolios. “Global investors are turned off by the Indian real estate story, with realty stock getting hammered.” Red Fort is the only realty fund that had raised money overseas last year. Last month, it invested about 200 crore in a 108-acre township project in Gurgaon being developed by Ansal Properties and Infrastructure. In most of the deals, the buyer too feels his position safe because property is ‘officially purchased’ in his name. To keep a safeguard, the fund raisers or the builders keep a sale deed signed by the buyer, but generally legalities do not occur in most of the cases. “We are getting our payments on time and since our repayment is maintained timely by the builder, it is adding value to our profile as well,” says Mishra, a ghost buyer. A Senior Manager with a nationalized bank says on the condition of anonymity, “I can give you over 50 examples of ghost buyers, but you can’t prove any wrongdoing. Brokers are coming with bulk applications, but all are genuinely signed by buyers.” “How can we deny loan to a MNC professional who has a permanent job of over 18 lakh per annum and who has paid regular income tax since last five years?” asks the official. (the names of buyers are changed to maintain anonymity).

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DEMAND AND SUPPLY DYNAMICS OF REAL ESTATE The mismatch between demand and supply in the real estate sector calls for urgent introspection. It is time that the planners formulate policies in order to bridge the gap. â&#x20AC;&#x201D; Rakesh Purohit

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Letâ&#x20AC;&#x2122;s examine demand and supply patterns in all urban areas of the country. To understand present trends Iâ&#x20AC;&#x2122;ve divided these cities into three categories:

1.METRO CITIES New Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore.

2.TIER II CITIES State capitals

(other than metros), satellite towns of Metros and cities having population above 2 million (within city periphery).

3.TIER III CITIES Satellite town of tier II city and cities having population above 0.5 million (within city periphery).

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METROS • • • •

Prime residential property remained immune from market fluctuations, most of the demands remained unannounced due to limited or no seller; it continued as sellers’ market. Peripheral areas of metros had shown moderate demand; prices remained stable and matched with satellite towns resulting extra focus on buyers. Deviation in demand as seen in LIG (Lower-Income Group) and MIG (Middle-Income Group) segments, investors tried to get out of deals which they were holding from a long time. Prices varied in old localities, due to less transaction. Growth contour in demand chart moved straight in upper middle class segments. People looking for upgraded habitat in this category kept their decision on hold for time being.

• TIER II CITIES •

• •

•

These cities continued to be centre of attention for local/suburb residents to outside investors. Strategic locations like city centre, transport corridors and institutional hubs stayed in demand. In these areas investors continued investing into residential properties, this accelerated demand and resulted price hike. Tier II cities creating new residential zones or urban development areas. Demand is largely created by outside investor and well supported by local requirement. Unlike metros, in tier II cities, investors prefer residential plot over condominiums but in recent time new trends show that end-users are shifting towards flat/apartment culture for better facilities and security aspects, which is only possible in group housing projects. Although farm-house culture has not started picking up in tier II cities, smart investors have already started to hold bigger residential plots in peripheral areas.

TIER III CITIES • • •

Modest demand which was generated primarily by investors only remained largely with second or third generation investors resulted in speculation and created sense of false demand. Local inhabitants show less enthusiasm in new projects but demand in old areas surely raise by neighborhood in tier III cities which are well connected with transport corridors (National/State Highway or Expressway) in recent time. Similar to tier II cities, preference of investors and end-users continued in residential plots. Housing demand in these cities varied from state to state. It has shown rapid growth in the areas where local authority acted smartly for developing infrastructure. This surely created demand in outskirts as well as in city too.

WHAT TO DO? Metro Cities •

Investment in metro cities is only because of emotional reasons. Connectivity with nearby areas actually broke myth of prime address witnessed in the past when lots of big corporate brands actually moved out of city and acquired bigger and larger spaces in the outskirt of metros.

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•

Neither selling nor buying. This is not the right time to think about metros. If you don’t show your eagerness for selling property in metro you will certainly get good margins in your deal. Due to less availability in the market and most of the buyers of metro are buying the property mainly for strategic or emotional reasons. It means less negotiation. Be smart and be wealthy.

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METROS • • •

For metropolis cites of India, there is no question of falling demand. Supply line is week for EWS, LIG and somewhere MIG it does not meet with present requirement. Most of local development authorities have already started tying up with private developers to meet requirement of shelter. Lack of supply for desired demand resulted in price hike in prime locations. It created further demand as investors and speculator want to remain in market for longer period for higher rewards. • Another factor resulted sluggish supply as many developers are holding land bank and waiting for extra premium which is expected to come after this slothful period (price wise). • Present supply is irregular and mainly from already existing localities where properties are available on sale by property owners (mostly re-sale). Local Development Authorities showing passive approach to meet growing demand in metros future supply heavily depends on much talked PPP (Public Private Partnership) model.

TIER II CITIES • • • •

Tier II cities at present are flooded with all options of real estate industry starting from residential plots, villas, group-housing projects, independent houses, mini farm houses etc., mainly due to new age “boom developers.” Majority of new players have crafted the market what we see today. Supply in peripheral areas is somewhere more than existing demand. One positive point about current scenario is availability of all price options, suited for every kind of investor available in market. Situation is vulnerable in main city centre (old areas), where people started moving out of main city to outer areas for bigger and better habitat hence creating space inside city for new aspirants.

TIER III CITIES • • •

Tier III cities have lesser alternative in supply side (range/specification/price). Most of the tier III cities have less number of migrant population, resulting in cautious approach by developers. One can see huge variation in price in cities where local development authority is not working effectively. Private developers, and less innovative method of town planning are unable to create supply chain for any futuristic demand.

The outer areas of metros are more demanding and developing. Several big developers and builders are moving towards such areas. As the builders thinks that, these areas are much cheap and suitable as comapred to metros. Being emotional one cannot always opt metros as the prior choice. Connectivity is also great with these areas and people have options. The outskirts of metros are also have open space, but this is not with the metros. People can feel free with

the hustle and bustle of metros. The option of tier I and tier II cities as regards to demand and supply is much better. One can see so much options of residential and commercial spaces in these cities. Today, the big players in real estate industry have changed the whole scenario of outer areas of metros. Because of the new age developers, these cities are flooded with so much construction projects. It’s your choice to select the best option.

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JAPAN SHATTERED fp=fkaf^=ob^av\

— Property Observer Desk

ne of the most powerful earthquakes on earth challenged the world’s bestgeared nation, exposing its helplessness; but Japan still holds lessons for India. The earthquake of magnitude almost 9 on Richter’s scale, triggered tsunami waves that struck coastal areas, shook buildings, ignited fires and exploded the most well built nuclear reactors which set off a massive death count. Officials believe that at least 10,000 people were killed, and possibly many more. Everything, including roads and rail, power and ports has been crippled across much of Japan's northeastern parts and estimates of the cost of the multiple disasters have reached up to as much as USD 170 billion. These huge losses accentuate the pre-dominance of natural forces over manmade technology. But scientists and structural engineers say that Japan’s actions over the years to protect itself from tremors through rigorous quake-resistant building construction and

O 2010

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2011 North-Eastern Japan David Guttenfelder

design codes have dissimilarities dramatically with India’s meagre efforts to keep its people safe from earthquakes. In India, we are very new to preparations against such disasters. “It was Gujarat earthquake in 2001, which introduced an earthquake-resistant building design as a subject in undergraduate civil engineering courses,” says Mandeep Singh, Professor of architecture at the School of Planning and Architecture, New Delhi. “Many civil engineers start helping in constructions right after their graduation degree, but for some reasons, courses on earthquake-resistant designs were only confined to postgraduate programmes,” he said. Singh was a part of the team in IIT Kanpur, which brought in the earthquake resistant designs studies in graduation. He is doing a research on ‘Why buildings kill people during earthquakes’ and says Japan’s structures had focussed on reducing building loads. This is achieved through the use of special lightweight concrete as well as that of thin nonconcrete in partitioning rooms. “We don’t really need bulky slabs of concrete to separate rooms within a building or a house,” says Singh. “The lighter the building, the lower the force it will experience when waves from earthquakes strike,” he said. Structural engineers are cautioning continuously that authorities in our country do not pay enough attention to the structural integrity of buildings. Across Delhi NCR alone,

more than 20 percent of the population lives in vulnerable buildings. “In my opinion, buildings like AIIMS, which have been built before 1991 are also subject to assessment to find out if they are safe or not,” adds Singh. Structural engineers say that the extra cost of protecting new buildings through earthquake-resistant design may touch 5 to 10 percent of the project cost. Engineers believe, subjective surveys reveal that many buildings breach the rules, and thus those are quite vulnerable. “An example is, that most of the modern apartments are built over stilts — with space within used for parking cars or other purposes like shops or clinics. The space is called ‘soft storey’ and is quite vulnerable. Stilts are made in safe buildings too, but with this, a building design needs to add on special features that can add strength to the construction. In most of the apartments we find them missing,” Singh adds. “The question arises then, whether there is any enforcement in our country?” asks T D Aneja, a former Superintending Engineer with Haryana PWD and a building consultant at Gurgaon. “Earthquake resistant building design is not magic — it just needs to be executed.” Bureau of Indian standards has already made a National Building Code, but very few builders are implementing it. “The structures made using the code are safer in comparison to those which are constructed by hamfisted builders. If you will observe minutely, you will find those buildings in Japan are still standing well which were built using the principles of standard design,” adds Aneja. 155 PROPERTY OBSERVER

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According to geologists, our country was using a faulty seismic hazard map which horribly miscalculated the actual force that structures across northern India would experience during powerful tremors. The recent studies done by ‘Geological Survey of India’ have cautioned that the revised seismic hazard map, classified much of northern India along the Himalayas as falling in Zone 4, with a few regions within Zone 5, but the structures are not constructed accordingly. “We do not even have surveys of earthquake vulnerability of all the buildings,” says Aneja. A field survey conducted by some experts from the Department of Earthquake Engineering, IIT Roorkee, on so-called ‘engineered’ buildings of NCR reveals that seismic performance of multistorey buildings in the area has many deficiencies. Despite the claims that these buildings represent the best design and construction practices prevailing in India, they do have some basic problems. “Common dearth found in the buildings is presented along with the preliminary assessment as per an international standard FEMA-310 (prepared by Federal Emergency Management Agency, USA). Regularity of building plans and elevations, and adequacy of building structures in shear and overturning is examined. It is observed that a majority of the buildings is inadequate for the ground shaking hazard expected in the area as per Indian seismic design code, indicating a very poor enforcement of code. An investigation of the construction practices prevailing in the area also reveals that the ductile detailing practices as per the Indian code of practice are not being followed. The 156 PROPERTY OBSERVER

It was Gujarat earthquake in 2001, which introduced earthquake-resistant building design as a subject in undergraduate civil engineering courses,” says Mandeep Singh, professor of architecture at the School of Planning and Architecture. details at beam-column joints are particularly poor,” concludes the study. “Yet many newly constructed structures are safer since they are built according to BIS code, but the problem is, we can’t reconstruct the old buildings,” says AK Agrawal, a Structural engineer, involved with many projects in and around NCR. “Most of the houses and apartments made by small builders do not take experts’ opinion, and thus, are quite vulnerable in case of an earthquake,” adds Agrawal. Experts feel that adding up to old structures is also useful till some extent. The process is called Seismic Retrofitting. It is a method of modifying the existing structure to make them more resistant to seismic activities, ground motion or soil failure due to earthquakes. With better understanding of seismic demand on structures and with our recent experiences with large earthquakes, the need of seismic retrofitting is well acknowledged, but since the technique is costly so it is not being applied on constructions. “In our country there is a tendency that we do not wake up till the water crosses our heads. No one wants to spend a single penny unless damage is already done,” says Agrawal. “It seems we too are waiting for a quake to come and if any such calamity comes, believe me it will end up in a huge sacrifice,” worries Aneja.

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THE WORLD’S BIGGEST CINEMATIC THEMED THEATRICAL MUSICAL EXTRAVAGANZA ‘ ZANGOORA, THE GYPSY PRINCE’ —Property Obsever Desk

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ingdom of Dreams is a spectacular world of unparalleled imagination, which brings to you a blend of India’s culture, heritage, art, crafts, cuisine and performing arts buttressed with the mind boggling technological wizardry of today. This unique tourist destination, situated at the apex of the golden triangle of Jaipur, Agra and Delhi.

Kingdom of Dreams is designed and conceptualised to offer international and domestic tourists a breath-taking, magical Indian experience. It showcases modern and traditional India

and present Indian culture in an entertaining format to all visitors. It offers you the best of India in the form of Cuisine, Crafts, Musicals, Dramas, Carnivals, Street Dances, Mythological Shows and much more. Kingdom of Dreams, the mammoth project is one-of-a-kind initiative of the Great Indian Nautanki Company to promote Indian culture and tourism. The promoters of this phenomenon are Wizcraft International Entertainment, India’s leading entertainment and Communication Company and Apra Group of Companies. It is India’s answer to the Sydney

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Chennai Coffee House Culture Gully Int-117

Assam Tea House CultureGully Int-69 162 PROPERTY OBSERVER

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IIFA Buzz Cafe Culture Gully Int-145

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Performing in Azeem-O-Shan Shahenshah

A Snapshot from Bollywood Musical Jhumroo

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elpmfq^ifqv Opera House, Moulin Rouge in Paris, Fatasea in Phuket or Esplanade in Singapore.Designed and conceptualised to offer international and domestic tourists a breath-taking, magical Indian experience with a brilliant showcase of modern and traditional India, Kingdom of Dreams presents four key highlights - Nautanki Mahal, Culture Gully, Showshaa and IIFA buzz. Nautanki Mahal is the world’s first 4D theatre featuring extravagant interiors and cutting edge technology. The opening production at Nautanki Mahal is India’s first theatrical musical - ‘Zangoora, the gypsy prince’. Zangoora brings to life India’s culture combined with Indian cinema style entertainment. Designed, produced, scripted and composed using the best Indian and international talents, like Javed Akhtar, who has written the script, screenplay, story and dialogue. The music by ShankarEhsaan-Loy is a heady mix of popular Bollywood numbers which play an integral part in stringing the story together. The costumes are by Neeta Lulla, choreography by Shiamak Davar and the direction is by the distinguished director and animator David Friedman of London. Hussain Kuwajerwala, Isha Sharvani and Gauhar Khan are the lead star cast for Zangoora, the gypsy prince. Nautanki Mahal is the venue for Bollywood style musicals and theatre in the grand style of royals that will leave you breathless. An overwhelming and amazing magical experience. Showshaa Theatre will present Indian mythological shows such as Ram Lila & Krishna Lila in an awe inspiring format perked up with latest technology in the entertainment field. Culture Gully is a lavish air conditioned boulevard of multifarious Indian cultures, culinary delights and shopping experiences. You can visit the backwaters of Kerala, savour the taste of fenny in a quaint tavern in Goa, view the royal splendour of a Rajasthani Palace or enjoy the rustic charm of a Punjabi village… .. All in one place. You can interact with street performers, live artisans, magicians and folk dancers besides shopping, eating and other experiences like palm reading, tea sipping and much more. For food lovers, Culture Gully is a gourmet’s paradise with authentic Indian cuisine from various regions. At the end of this magical experience, after you have satiated all your five senses, take a spiritual walk in our specially designed avenue that will bring you closer to your higher self.

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LUXURY LIVING REDEFINED

VVIP Addresses brings you the most luxurious apartments with world class infrastructure. — Property Observer Desk VIP here stands for Vibhor Vaibhav Infrahome Pvt. Ltd. VVIP Addresses is being developed in Raj Nagar Extension. Your home address at VVIP Addresses comes with an exclusive membership at Heritage club. Here you can enjoy luxurious spa like indulgences for relaxation and recreation.

for developing world class urban development infrastructure for Central and State governments. Every project has propelled VVIP's image further and further into being known as a developer with the commitment to deliver only the very best in quality. With every project, their vision comes more and more alive.

Raj Nagar Extension is a one-stop destination for a wide band of middle class end-users, offering choices ranging from a 1BHK for `12 lakhs to a 3BHK for 40 lakhs, and providing amenities like entertainment zones, shopping arcades, and jogging tracks. It falls under Ghaziabad district, which is strategically located, in terms of two National Highways - NH91 (GT Road) and NH-58 (Meerut Road) which pass through it. Invariably, the traffic density on these roads is very high which convinced planners to build a mini, six-lane Expressway, which will link NH-91 to NH-58, bypassing the high traffic density area of Ghaziabad.

“I am extremely touched by the recognition given by industry. I would like to share our feelings with all of you from this prestigious Award—‘Emerging Developer of the Year (Residential) 2011’— which was given to us by Builder Council of India (BCI). Indeed, this award belongs to all of us” says Parveen Tyagi, CMD, VVIP Ltd

So, if you are looking for your dream house, look no more. VVIP Addresses brings for you the most luxurious apartments with world class infrastructure. The landscaped surrounding is breath-taking. In addition to it, the vibrant dancing fountains provide you a warm welcome and a dreamy ambience. This project is being developed under the guidance and vision of Mr. Praveen Tyagi, a bright young professional with a clear perspective to bring in the finest infrastructure for the residents of India. For the last 10 years, VVIP has been known

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He added further, “VVIP Addresses’ site witnessed the presence of International Fraternity in the past quarter; engineering students and Faculty from Munich University (Germany) along with the esteemed Faculty of Delhi College of Engineering came down to VVIP Addresses to understand the quality of construction and technology being used in the construction projects of developing countries. Further, Equiwings Sports, in association with Equestrian Federation of India (EFI) & Equestrian Association of UP (EAUP), hosted the Award Ceremony for their Horse Show on VVIP Grounds hosting the guests from 10 countries—India, Britain, Canada, South Africa, Australia, Oman, Lebanon, Pakistan, Sudan, Kazakhstan.”

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PROMISING LUXURIOUS LIFESTYLE

Rajnagar Residency, a residential project in Rajnagar Extn. offers modern day living style showcasing design symmetry. The focus is on functionality, free flow of space, privacy for families in sync with greenery.

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leading real estate developer, M.R. Mittal Infratech, recently launched Phase II of Rajnagar Residency, a luxury residential project at Raj Nagar Extension. First phase was launched in October, 2011 and witnessed a good response from the buyers. The construction of phase-1 is in full swing.

Rajnagar Residency has been designed in keeping with the essentials of modern day living style. The focus is on functionality, free flow of space and privacy for families. Showcasing regular design symmetry, the residence receives the best of nature, with approx 75% area greens and landscaping. Rajnagar residency is the outcome of the vision of Sunil Mittal. On the occasion, Sunil Mittal, Director , M.R. Mittal Infratech, said, “I am highly delighted to announce the launch of Phase II of Rajnagar Residency as it means more options for the people looking for luxury in Raj Nagar Extension. We are very delighted by the response that we have got in Phase I and we will definitely live up to the expectations of the people showing trust in us.” “Our target is to deliver luxurious and comfortable living style with all modern amenities with artistic touch. The Group succeeded to deliver an integrated township of 68 acres with the name ‘Oasis Greens’ JPL in Alwar, Rajasthan and group housing with the name ‘Grace Apartments’ in Gurgaon, Haryana. And the upcoming projects in NCR Delhi are ‘Delhi Residency’ and ‘Dharuhera Residency’ in Dharuhera Industrial Estate, Haryana,” told Mr. Mittal. He explained, “The project Rajnagar Residency is well connected to FNG, Metro and Rapid Rail Transit System (RRTS) built on landscape podium concept. Rajnagar Residency has 2 BHK in 1050 sq.ft. and 1145 sq.ft., 3 BHK in 1380 sq.ft. and 1498 sq.ft., and in 4 BHK the options are 1880 sq.ft. and 2180 sq.ft. The price has been kept at ` 2180 per sq.ft. With good schools around and the area not far from the main city, Raj Nagar Extension has been able to carve out a niche in itself.

Mr. Sunil Mittal Director , M.R. Mittal Infratech

Project Highlights Located at Rajnagar Ext. on national highway-58. Delhi Public School, Ghaziabad in close vicinity. Multiplexes and amusement park coming up in close vicinity. Plans approved by Ghaziabad Development Authority. 2/3/4 BHK luxurious apartments in a pollution free environment. Ecofriendly feature of rain water harvesting. Assured timely possession with penalty clause. Each apartment served by two lifts. 24 hours power backup and water supply. Each apartment served by three lifts. Space for 5 star featured club, indoor and outdoor games, gym, spa, sauna, jacuzzi, fitness club. Eco-friendly and Earthquake resistant design with the latest building by-laws. Structural design is tested against static and dynamic forces under seismic condition. Easy home loans from banks and financial institutions. 300 meters from Meerut road (ALT Crossing).1 km from DPS School. 2.5 km from GD Goenka School. 4 km from new bus stand Ghaziabad. 6 km from railway station.

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ABC: FOUR-STAR LEVEL SERVICE RESIDENCES This project is strategically located at a few minutes’ drive from the DND toll road at Sector 135 on the Noida Expressway, a hub for multinational firms.

From L to R Mr. Mahindra Goel, Associate Director, Mr. Neeraj Gulati, MD, Mr. Salil Kumar, Associate Director- Assotech Realty

eople living in the main city centres think twice to move towards peripheral areas. The main reason behind such a move is being away from the convenience of shopping, good institutions, hotels etc. With real estate saturating in the main cities, it has become necessary to attract people towards peripheral areas and at this juncture the best model is to have mix land use development. When suburbs were coming up people thronged the places but still find it difficult to adjust to the fact of driving kilometres to get things of daily use or for medical purposes. To address this issue, developers came up with projects that have commercial spaces right inside the project. This idea was of benefit not only to the buyer but also the developer as could attract more investors. It is comparatively easier to market mixed land development projects and such projects also offer higher appreciation levels. The only aspect to be kept in mind is that such developments should be regulated and well planned.

One such concept in mixed use development is Work-PlayRejuvenate-Stay. Assotech Realty Pvt. Ltd. recently announced Assotech Business Cresterra (ABC), which is a premium mixed use development in Delhi/NCR and would include High-Rise Offices, Four-Star Level Serviced Residences named ‘Sandal Suites’, and a High Street Retail ‘Sandal Street’. Spread across sprawling 14 acres area, ABC is strategically located at a few minutes’ drive from the DND toll road at Sector 135 on the Noida Expressway, a hub for

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multinational firms. The project cost of ABC is approx Rs 300 crore and it will be completed within 3 years. Overall 12 lakh sq ft. will be commercial use, 1.5 lakh sq.ft. has been designated for serviced appartments and 70,000 sq.ft. for retail space. The reason is that the customers have started to look for options that offer good quality of life in totality including work, play rejuvenation and a good stay. The potential of such places is very high and that is the reason that Delhi NCR is abuzz with projects on these lines. Though in the initial stages it may look that these mixed use developments take time to develop, but in the medium and long-run, these projects develop faster since they have options of healthcare, retail, commercial, residential and offices. When such projects are coming up, the need is to keep in mind the environment also. Intelligent eco-friendly projects with construction inspired by nature and landscape oriented infrastructure will be a hit. The focus should be on the performance in five key areas – sustainable site development, energy efficiency, water savings, materials selection and indoor environmental quality. ABC has been designed keeping these aspects in mind; the construction and management of the project will be made on the guidelines of LEEDS Gold Certification. ABC’s theme for ‘Green’ emphasises care for nature supported by complete insulated green terraces, green technology – building with zero

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discharge, lighting and ventilation taking more advantage of natural resources and of available technologies. It will have a pedestrian and handicap friendly infrastructure with intelligent traffic planning. All such developments are being made in sync with the needs and aspirations of the working brigade, who spend maximum much time away from home. Developers have to come up with solutions that can take care of this ‘working class’ work-play-rejuvenate-stay requirements all at one destination. How is the realty sector for investment in the present scenario? What are the things that one should keep in mind while making an investment in real estate sector? These are some of the aspects on which Neeraj Gulati,MD, Assotech Realty Pvt. Ltd. throws some light.

Do you think this the right time to invest in real estate sector? As far as real estate sector goes you can invest at any point of time. You should know where to invest, the price, and the location. If you buy a property at good prices and good location then returns on such a property would be handsome. Last year in Q3 a lot of new projects were launched, this has provided varied options to the buyers/investors. Simultaneously there have been signs that RBI might bring down the home loan interest rates. So this is the best time invest in real estate sector.

Which are the best places in Delhi NCR to invest in? NCR Noida and Gurgaon has given good returns to the investors, and these two places have also been good for the end users. For upper-middle and upper class the best locations were Noida-Greater Noida Expressway, Yamuna Express way, Dwarka-Gurgaon Link Expressway, GurgaonSohna Road and Golf Course road (Gurgaon). Greater Faridabad and Raj Nagar Extension have been good for middle class. The best part about NCR is that it has homes available in varied price range.

You have launched project at Noida-Greater Noida Expressway. Tell us something about your project. This is a business park ABC (Assotech Business Cresterra) in Sector 135. Being developed by keeping in mind the good connectivity and future needs, the project is spread over an area of 14 acres and will have 6 office towers of G+8. This project will have retail also along with commercial. It will also have recreational, entertainment and health facilities. We are also building serviced residences in the project.

What are serviced residences and what is the scope in NCR? They are serviced apartments. In ABC we are coming with serviced apartments named Sandal Suites and we are calling

Mr. Neeraj Gulati MD, Assotech Realty them serviced residences. Before this we had developed Cabana serviced apartments in –Indirapuram, Ghaziabad. After the success of Cabana we are coming up with this project in Noida.

What are the options of serviced apartments available in ABC? We have 142 serviced apartments in this project. There are two options -- premium (776 sq.ft.) and Deluxe (975 sq.ft.). The best part of these serviced apartments is that apart from drawing room, bedroom and kitchen, one will also get a balcony.

How is this location connectivity wise? Today customers look for good connectivity and this project fits that demand. It is on Noida-Greater Noida Expressway, Faridabad-Noida-Gurgaon Expressway (FNG) is near the project, and Noida-Greater Noida metro station will be at a walking distance from the project.

What kind of location is good for serviced apartments? We developed Cabana in Indirapuram which is a residential area and across the road was Noida’s institutional area and electronic city. Serviced apartments works best in areas that have commercial and residential activity in full swing. Areas near Sector 135 are witnessing good commercial activity that is why we believe that demand of this project will be good.

What are your future projects? After Noida, we will come up with serviced apartments in Gurgaon. We want to take Sandal Suites to various parts of the country. We are planning to build Sandal Suites in more than 25 cities. In the first phase we will bring serviced apartments in Ahmedabad, Pune, Bangalore, Kolkata, Mumbai, Hyderabad and Goa. We have started looking for land in these cities.

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LOTUS BOULEVARD The Green & Futuristic Estate

designed to present rejuvenating views from all directions. Located at Sector 100 of Noida, Lotus Boulevard Estate is the closest residential option to the Expressway, offering easy accessibility to its residents, makes commuting a breeze, with South Delhi only a few minutesâ&#x20AC;&#x2122; drive away.

The Green Estate conserves critical natural resources and huge amounts of energy & living costs and lets one contribute significantly towards making environment holistically a greener and healthier place. Insulated Roofs and Walls (optional) substantially reduce heat ingress (up to 60%), thereby resulting in substantially lower air-conditioning loads. With the latest solar technology, over 80% of open spaces, all balconies and windows have been specifically

Right from basic eco-friendly construction materials to odorless paints and textures on your walls, relish the benefits of a healthy green environment. The latest in Rainwater Harvesting technology, water conserving fixtures & fittings, along with native & low water consuming plants, let you save every drop of water you can. A home where nature seamlessly merges with the modern structural design, the amenities that come along, are also equally impressive, for instance, the 125000 sq. ft. 'PLANET LOTIER'-Impeccable in form and function, it'll be the social heart of the estate, where people of all ages shall converge to fulfill various social and recreational needs, thus forming a large community of interest. In sum, Lotus Boulevard is an ideal address for the urbane customer, who is keen to attract, develop and a green lifestyle through a well defined approach to sustainable living.

estled amidst 40 acres of tranquil and solace, the green estate offers a delightful mix of breathtaking architecture with a green natural charm to the environment. The fascinating outdoor landscape, the 'Green' features and benefits of this unique residential estate reflect the urbane lifestyle which is contemporary yet thoughtfully serene and naturalistic. Right from sprawling acres of refreshing greens populating every corner, to fresh and cool breezes streaming inside, to the cross-ventilated arrangement that guides natural light into all corners of the houses, are parts of the exceptional advantages of a lifestyle in this exquisite 'Green' haven.

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AMRAPALI SILICON CITY The strategic location and greenery of the Amrapali Silicon City is attracting all the more people to lay foundations of their homes. The high value is given to boost further by improving the infrastructure in the form of wider roads, refined drainage system and perfect underground cabling. Many world class shopping malls are opening up near Amrapali Silicon city. Amrapali Silicon City distance is very close to New Delhi, which is a biggest asset for the area's growth and infrastructure, therefore property developers are scouting land banks there. mrapali Silicon City at Sector-76 Noida offers 2, 3, 4 bedroom apartments with full of amenities which suites your needs, connectivity with other places is superlative while the price remains affordable. The group is targeting the residential segment with this upbeat housing project “Amrapali Silicon City.” The commercial sector in Noida began to develop at a phenomenal speed with many companies settling down there. Both these reasons directly led to the development of Noida as the next hot spot for both residential and commercial activities. Number of IT companies, educational institution and other residential units are setup around the Amrapali Silicon City. The strategic lo-

LOCATION ADVANTAGE n 0 km. from Sec. 50

n 1.5 Km. from Sai Mandir

n 2.5 Km. from Metro Station n 3 Km. from Fortis Hospital

n 15 Min. Drive from DND Flyway

n 10 Min. Drive from Sec. 18 Mkt.pressway, offer-

ing easy accessibility to its residents, makes commuting a breeze, with South Delhi only a few minutes’ drive away.

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cation and greenery of the Amrapali Silicon City is attracting all the more people to lay foundations of their homes. The high value is given to boost further by improving the infrastructure in the form of wider roads, refined drainage system and perfect underground cabling. Many world class shopping malls are opening up near Amrapali Silicon city. Amrapali Silicon City distance is very close to New Delhi, which is a biggest asset for the area's growth and infrastructure, therefore property developers are scouting land banks there.

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rAting

CARE’S REAL ESTATE PROJECT STAR RATING

Among the top three rAting Agency, ‘credit AnAlysis And reseArch (cAre)’ is the second most vAlued finAnciAl rAtings firm. stAndArd & poors bAcked ‘crisil’ stAnds first, while moody's bAcked ‘icrA’ hAs third lArgest mArket cAp. cAre wAs promoted in April 1993 by mAjor bAnks/fis (finAnciAl institutions) in indiA. According to rAting com pAny's website, the three lArgest shAreholders of cAre Are idbi bAnk ltd., cAnArA bAnk And stAte bAnk of indiA. the other shAre holders in clude federAl bAnk ltd., il&fs ltd., ing vysyA bAnk ltd. etc. 182 PROPERTY OBSERVER

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o^qfkd Among CARE-rated project, “Arihant Adita” by Mumbai-based Arihant Superstructures Ltd. was assigned rating of Jodhpur 4-Star.

Project Star Rating Rationale l

Project developer quality– The developer has strong track record of developing real estate projects in and around Mumbai region with 32 projects completed over last 23 years. Besides, the developer has six ongoing projects, excluding Arihant Adita. Further, the developer has entered into Jodhpur Real Estate market with the project Arihant Adita. Project construction quality and amenities– Above average track record of project contractors, adequate and innovative project amenities which includes green building concepts on top terrace for cool temperature and UPVC sliding windows with tinted glass and project site being comfortably connected; though located in the outskirts of the city. The project is one of the first high rise residential projects in Jodhpur city. However, the project is in a nascent stage with commencement of foundation work for Phase I.

Project legal quality– The developer has received “Patta” from Jodhpur Development Authority (JDA) which states that the land can be used for real estate development. The project has received construction approval for the phase I and has applied for environmental clearance upon receipt of which; would enable the developer to commence the construction for balance two phases. Project financial quality– Moderate funding risk owing phase wise construction of the project, provision for debt funding and liquidity available with the developer.

Project Developer Arihant Superstructures Ltd (Arihant Group) is an established real estate developer in Navi Mumbai. Since inception in 1988, the group has constructed over 2100 residential units across Navi Mumbai. Arihant Superstructures Ltd. (ASL), the flagship company of the group is listed on BSE (Bombay Stock Exchange) and is also ISO 9001:2008 certified. The developer is also a registered member of MCHI and Builder Association of Navi Mumbai (BANM). The developer group has been in the real estate industry for over 23 years and has completed 32 projects. Hence, the developer has adequate experience in the real estate industry. The past experience of

FINANCIAL PERFORMANCE – ARIHANT SUPERSTRUCTURES LTD. (` Crore) For the Year Ended / As on March 31,

2009

2010

2011

(12M,A)

12M,A)

(12M,A)

Total Income

0.08

27.06

107.77

Total Cost

0.04

24.11

95.10

PBILDT

0.04

2.96

12.68

Interest

0.00

0.94

1.72

Depreciation and Amortisation

0.00

0.03

0.15

PBT

0.04

1.99

10.81

Tax

0.01

0.68

3.45

PAT

0.03

1.31

7.36

GCA

0.03

1.40

7.66

Equity Share Capital

0.25

14.94

27.44

Tangible Networth

0.29

15.41

36.71

Promoter Loan

10.79

Total Debt

0.25

22.75

Cash

0.18

0.29

0.38

Total Capital Employed

0.29

15.67

59.58

PBILDT Margin (%)

54.56%

10.92%

11.76%

PAT Margin (%)

37.14%

4.84%

6.83%

0.02

0.62

Overall Gearing (x)

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rAting the developer is characterized by concentration of its projects in Project Developer Profile Mumbai region with single biggest Name of the company developing the project Arihant Superstructures Ltd. project having saleable area of Project developer group Arihant Superstructures Ltd. 1.79 lakh sq.ft. However, the developer has managed multiple Development Experience of the developer group 23 years projects at a time in the past. The No of years in the industry 23 years current project (Arihant Adita) is located in Jodhpur (Rajasthan) No of projects developed till date 32 and is the first project by the Total Area developed till date 18.98 lsf of saleable area developer in the city. Further, the company has two other projects in No of projects ongoing 7 (26.73 lsf of saleable area) pipeline to be launched in Jodhpur city. The company is headed by Mr. Ashok Chajjar, the Managing project has a total saleable area of 9.45 lakh sq.ft in all three Director. Apart from overall functioning of the project, the MD phases. The project site is on the outskirts of Jodhpur. overlooks architecture related aspects of the project. The company has its own “in-house” team of engineers, consultants and legal advisors who take care of company’s Highlights of the project technical, financial and legal issues, respectively. The Group has Enterprise Resource Planning (ERP) system which helps l Provision for rain water harvesting. intense management of multiple projects effectively with upl Gothic elevation design. to-date status reports for all the project aspects including l Solar Panel. sales, construction progress and resource availability. Project Details Arihant Adita is one of the first high rise residential project in Jodhpur. The project proposes to provide with all state of the art facilities and amenities such as swimming pool, badminton court, basket ball court, kids play room, amphitheatre, garden lawn, steam room, gymnasium, etc. to name a few. The project consists of 826 units in 14 buildings and is built on an area of 11.63 acres of land. The

l l l

Club house, gardens and swimming pools as common amenities. Shuttle bus service. Green concept at top terraces for cool temperature.

Currently the project is in nascent stage of construction with only 3% of the construction cost been incurred as on Sep-

PROJECT PROFILE Project Name

Arihant Adita

Project Type

Residential

Project Location

Gangana, Jodhpur

Development Type

Bought out land

Project Start Date

June 2011

Scheduled Project Completion Date

December 2015

Agreed upon Possession to the customer

December 2015

Total Saleable Area

9.45 lakh square feet (lsf) having 826 units in 14 buildings spanning across three phases. Phase I: 2.42 lsf Phase II: 3.64 lsf Phase III: 3.38 lsf

Construction Status

The foundation works for Phase-I have commenced. The sample flat is complete and the boundary walls have been erected.

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Property Observer and CARE comes together Real estate in India is a largely unorganised and fragmented industry. Despite corporate governance which is in practice in some sectors, realty has relatively low-level of trust and transparency. As a result, buyers and investors don't get true perspective of projects and their promoters. This is where CARE comes into picture. Marking a historical moment, Dreamwork Media and Entertainment Pvt. Ltd.(DMEPL) -promoted Property Observer which has entered into a synergy with CARE. Their combined effort will herald a new chapter in dissemination of working of India’s realty sector.

tember, 2011. The company has completed excavation for the first phase (four buildings) and commenced foundation work. The company has promised possession to the purchasers by Dec, 2015. The project booking status is 42% (100 out of 236 units are booked) for Phase-I. Phase-II and Phase-III bookings are yet to commence. Brief particulars about various contractors is as follows:

FSI available to the developer is about 1.2 and the developer uses the entire FSI. l l

1. Structural Consultants A.G. Gokhle and associates are the structural consultants to the project. The firm is Mumbai based and has developed 350 projects as of current date. Prior to this project, the firm has completed 50 projects which are of similar size to the project being rated. The firm is associated with the developer since last 16 years.

2. Architects

Vinee Architects from Mumbai serve as the architects for the project. They have been associated with the developer group since last 4 years. They have completed 90 projects in total and 15 projects similar to the current project.

3. Civil Engineers l

4. Project Management Consultants Dev Architects undertake the project management activities for the project. The firm has over 100 project experience and have completed 5 projects in the past that are of similar nature to the project being rated. The firm has been working with the developer since last 1 year. l

The JDA has provided a Patta which permits the developer to construct a residential housing project on the same. The

The project is yet to receive environmental clearance. As a result, JDA has given commencement certificate for Phase-I only. Once the environmental clearance is obtained, the developers would receive the permit to develop Phase-II and Phase-III. The project doesn‟t require CRZ or aviation clearance. High rise clearance for the project has been obtained by the law committee. The sale agreement, though is thoroughly detailed and covers all possible points, does not provide for penalty to the developer in case of delay is completion of the project. The sales agreement specifies a particular date of possession instead of quoting a time frame from the booking date which shall provide comfort to buyers.

Project Financial Status

The civil construction works is overseen by Balaji superstructures. The firm has constructed 100 projects in the past and 12 projects were of similar size to the current project being rated.

Clear and marketable land title with a title search conducted for 2 years.

The total project cost of `168.92 crore is being funded through promoter’s fund of `6.13 crore, `25 crore of debt (yet to be tied up) and `137.79 crore through customer advances. As on September, 2011, the project has already incurred `7.65 crore towards the land cost (`4.49 crore) and construction (`3.16 crore) which was funded through promoter funds of `6.13 crore and customer advances of `1.52 crore. The remaining cost of `161.27 crore is to be funded through loan and customer advances. Besides, the promoter has liquid funds of about `20 crore, as on September, 2011. The project is booked to the extent of 42% (100 out of 236 units booked) of the total units from Phase-I. The bookings for Phase-II and Phase-III are yet to commence.

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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