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Friday, November 27, 2015

Owning a home in Chennai is a boon or bane?

This is not to dissuade anyone to buy home in Chennai. But the fact is the fact! Chennai is among the top real estate destinations in India. The prices of properties, both within and outside the city, are steadily going up irrespective of the fact that some of the pin codes still to have basic facilities like black-top roads, clean drinking water, clog-free drainage network and reliable power supply.

As an added bonus, people’s most cherished homes and swanky cars can go under water during the monsoon season aided by depressions in Bay of Bengal. One can imagine the plights of the residents residing in city’s fringe areas, who had spent fortune to own a home there.

Scenic Chennai outskirts are under the thick cover of flood water

They have only houses sans basic amenities - No roads, no sewage and water connections, poor transportation facility, unsafe and unhealthy surroundings, lack of security and utility services like bank, post office, ATMs hospital, etc, and the list just goes on and on. But the real estate prices in these areas are touching the roofs making the salaried class to only day-dream of having a home in Chennai.

But is it worth owning a home in Chennai?

The recent rains brought by a depressed in Bay-of-Bengal and its aftermath flood inundating the so-called posh areas of Chennai and most sought-after areas in the city outskirts have opened up the floodgates of debates again among the denizens that whether or not the city is a megapolis, which is ill-prepared to withstand a few hours of rainfall.

Most of the areas having very high real estate value like Velacherry, Kotturpuram, Anna Nagar, Mugappair, KK Nagar, Ashok Nagar, Porur, Kolathur, Kodambakkam, Valarasavakkam, T-Nagar, to name a few, have been inundated with knee-deep to hip-level water while the entire world witnessed what has happed to the residents of West Tambaram, where water entered houses and remained there for more than a week. More than 100 people lost their lives in the state and properties worth crores have been lost. One could only see the top of the parked cars on the roadsides in several ‘posh’ areas.

Thambaram-Mudichhur high-way was completely invisible, and areas on both sides looked like a huge lake dotted with partly submerged buildings. Residents remained indoors for days as rescue and relief operations were selective and lackadaisical, allege residents.

Why the areas of West Tambaram, which have not seen such floods over several years, gone under water, making the residents to use of boats to reach various places to meet their daily needs? Rain water got mixed with drainage in several areas and people had horrific experience in finding food and answering nature’s call.

Some of the residents allege that real estate sharks, to sell a chunk of their land in low level areas, had illegally changed the course of the rain water flow in West Tambaram which had resulted in flooding in other nearby residential colonies. Several of the water bodies in and around the cities have been usurped by illegal residential colonies, which resulted in flooding in adjoining areas.


Take for example, Alappakkam near Valasaravakkam, which had a huge lake, now became a full-fledged residential area. So, whenever, Porur or Chembrambakkam reservoir overflows, excess water instead of coming into the Alappakkam Lake, now inundates adjoining areas in Virugambakkam, says real estate experts.

Same holds true for areas around Kattupakkam, Kolathur and Madipakkam. Shocking it may be, but as per a recent report in a leading daily, the Porur Lake in West Chennai, whose original area was around 800 acre, has shrunk to a meager 200 acre now, thanks to the overwhelming illegal constructions under the aegis of some political powers and real estate sharks.

So, no one is sure whether one area is safer than other in Chennai. May be this time an area would have been spared from flood, but may not be the next time, thanks to the intelligent planning of officials which lacks farsightedness and wide-spread illegal construction activities by unscrupulous real estate companies.

Another issue in Chennai is the mindless practice of re-laying of roads by the Corporation. Instead of ‘milling’ the road to remove the old asphalt and then re-lay the road, they lay the fresh aggregate on the old road itself, thereby increasing the road’s level by two to four inches every time. This makes the houses on the either side of the road dwarf in few years making them vulnerable to floods.


The construction of ambitious rain water drains, which had started way back in 2011, has not seen its light yet, despite spending fortune on the project. In many areas, flood water entered due to incomplete drain works. Roads have to be cut to drain out the excess water in several areas. Almost all roads in Chennai have been affected due to the recent rain, and to repair or relay them, the government needs huge funding and man power.

This year’s flood is not a “once-in-blue-moon affair for Chennaiites. They are used to such conditions and have been suffering for years. It was in 2005, 2008, 2009, 2011 and then now in 2015. Every time, precious lives lost, crores worth properties perished, but no lesson learnt.

So, no prize for guessing, whether owing a home in Chennai is a boon or a bane? 

The article also appeared on Merinews.com.

Despite rate cut, real estate sentiments remain lukewarm: ASSOCHAM

Despite the recent rate cut of 50 bps by Reserve Bank of India (RBI) and great offers made by developers on the festive season, the investment in the property have remained lukewarm in and around the NCR region due to lack of confidence in state of economy, delay in project execution, lack of fresh employment generation and overall slowdown, reveals the ASSOCHAM recent study. 

"The sentiment in the housing market is really at a low key. The prices have almost crashed but they are still un-affordable. Be it Rohini, Dwarka, South Delhi, Noida, Gurgaon, the prices of property are down by 25-30% as compared to the last two years.”, said D S Rawat, Secretary General ASSOCHAM while releasing the survey.

The ASSOCHAM conducted a random survey of nearly 125 real estate developers in Delhi-NCR. The survey reveals that demand for buying property have decreased by over 30% over the last year.

As per the ASSOCHAM paper, inordinate delays in getting necessary approvals from multiple regulations and authorities result in cost and times overruns. The resale or secondary market is also dull this festival season as there is very little resale going especially in the NCR and surrounding areas, adds the survey.

According to survey, the residential market has witnessed a steep decline by 25-30% in new launches as well as demand resulting a significant shrinkage. The unsold inventory pressure in NCR region is the highest among all other cities.

According to the majority of real estate developers in NCR regions said, about 62% of the unsold real estate in NCR is in areas which are currently uninhabitable. The problem has been confounded by delays in regulatory clearances and litigations, points out the survey.

The NCR residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30% of the units under construction, adds the survey. As per the survey, there are nearly 8.5 million workers engaged in building and other construction activities in India. 

The ticket price 3-bedroom, 2 BHK  and single room flats has seen correction by 30 per cent in Noida, 25 per cent in Gurgaon and 15 per cent in some key areas of Delhi but still, the demand stays subdued, adds the survey.

Modular kitchen, LED televisions and air conditioners are among the most common freebies on offer this Diwali. Some developers offered hefty discounts to the basic sale price for early investors. Many others warned of sharp revision in property rates post Diwali. However, the lure of freebies failed to charm home buyers, the survey noted.

Majority of the developers have complained that inordinate delays in getting necessary approvals from multiple regulations and authorities resulted in cost and time overruns.

To counter the slump in sales, developers have been offering some discounts and incentives. But even these steps have failed to attract buyers. The sales continued to remain low despite developers offering attractive pricing schemes and discounts to attract buyers.

Festive season considered to be auspicious for home buying and offering bargains, contributes over 30 percent of annual realty sales. But with the prevailing depressed market sentiment, the sector has been witnessing muted sales since the festive season of 2015, recording 30-35 percent lower sales compared to the healthy period of 2010-11.

Besides offering standard freebies like parking and club facilities, modular kitchens, air-conditioners, developers are taking just 5-10 percent of the house price as booking amount and that too in installments, with the balance payment on possession.

Thursday, November 26, 2015

Govt approves Rs 3120 cr to improve infrastructure for 102 cities under AMRUT

Seeking to improve basic infrastructure in urban areas, the Ministry of Urban Development has approved an investment of Rs. 3,120 cr for enhancing water supply, sewerage network services, storm water drains, non-motorised transport and availability of public spaces in 102 cities, under Atal Mission for Rejuvenation and Urban Transformation (AMRUT). 

An inter-ministerial Apex Committee chaired by Madhusudhan Prasad, Secretary (Urban Development) approved State level Annual Action Plans for 2015-16 with an investment of Rs. 438 cr for Haryana which has 18 Amrut cities, Rs. 573 cr for Chattisgarh (9 cities), Rs. 416 cr for Telangana (12 cities), Rs. 588 cr for Kerala (9 cities) and Rs. 1,105 cr for West Bengal which has 54 Atal Mission cities. 

Total investment in water supply projects in 58 mission states will be Rs.2,386 cr, sewerage projects-Rs. 495 cr in 17 cities, Storm water drains- Rs.106 cr in 9 cities, Urban transport - Rs.61 cr in 9 cities and Rs.72 cr for development of parks and green spaces in all the 102 cities, a PIB release said.

The Apex Committee approved investments in different basic urban infrastructure areas as proposed by respective state governments. Ministry of Urban Development will provide an assistance of Rs.1,540 cr which is about 50% of total project expenditure approved on Thursday. 

With these approvals, the Ministry has so far cleared a total investment of Rs.11,654 cr in 272 Atal Mission cities for improving infrastructure for ensuring water and sewerage connections to all households in Atal Mission cities besides enabling water supply as per the norm of 135 litres per capita per day for urban areas etc. 

At present only about 50% of urban households are provided with water connections and water supply is about 75 lpcd. Availability of sewerage connections is very low. Atal Mission seeks to bridge this deficit. 

As per the State Annual Action Plan (SAAP) for 2015-16, presented by the Haryana Government, water supply at present in all the 18 mission cities is below the norm for urabn areas. It is only 43 litres per capita per day in Jind, 88 lpcd in Sonipet and a maximum of 130 lpcd in Gurgaon. 

In other mission cities of Rohtak, Ambala Cant, Thaneswar, Sirsa, Hisar, Palwal, Karnal, Yamuna Nagar, Kaithal, Bhiwani, Ambala City, Rewari, Panipat, Bahadurgarh and Jagadhari, present water supply is in the range of 102 lpcd to 127 lpcd.

Siddha Group Builds World's Longest Rooftop Skywalk in Kolkata

Siddha Group, one of Eastern India's leading real estate developers, has launched world's longest rooftop skywalk, 'Starwalk', as a part of 'Siddha Galaxia, its affordable luxury apartments on Rajarhat Main Road, Kolkata. 

Sanjay Jain, Managing Director, Siddha Group and renowned actor Gargi Roy Chowdhury who unveiled the project, said:


"With Siddha Galaxia, we aim to redefine modern living in Eastern India. The major draw there is Starwalk, a rooftop skywalk at the 14th floor level, connecting eight towers with a 1.1 kilometre long rooftop skywalk and open landscaped greens, water bodies with fountains, sit-outs and a deck for telescope viewing. It will be the world's longest rooftop skywalk, offering a whole range of outdoor experiences, 140-feet above the ground level which makes this the world's longest jogging track at the highest level." 

"To meet the demand of open spaces within close reach, features like skywalks have become a necessity now. It's a quick-fit solution for the residents who want to experience open greens, leisure and collective activities within the complex. For them, the project's igh-in-the-sky activities will be a fascinating experience! I am quite sure that Siddha Galaxia would be unique and trendsetting - a luxury statement for an average middle class," added Jain.

Siddha Galaxia Phase II, featuring Starwalk, will be completed within the committed time frame. Phase I, ready already, has six towers while the Phase II will have eight. Siddha Galaxia is one of the largest affordable luxury complexes in Rajarhat. With open greens, Siddha Galaxia will eventually have 2500+ families and 10,000+ residents.

The project will also feature a star-studded Club, 'Stella', for its residents. The club spreads across 40,000+ sq ft with all modern facilities and amenities.

Located on the Rajarhat Main Road near City Centre II, Siddha Galaxia will offer spa, steam and massage room, yoga and meditation zone, health zone, gymnasium, swimming pool, aqua aerobics, badminton court, tennis court on the MLCP, squash court, multi-activity room, library-cum-lounge, indoor games room, coffee shop with WiFi, crèche, toddlers' zone, an AC banquet hall, plus, a 24-hour surveillance and security system, ensuring the experience of an ultra comfortable lifestyle at convenient prices starting from Rs 40 lakh.

DHFL Launches National Influencer Outreach Program

Dewan Housing Finance Corporation Limited (DHFL), India's second largest housing finance company in the private sector, has recently launched a national influencer outreach program in a bid to reach out to the tech-savvy younger generation in the age group of 18-25 years. 

This segment turns out to be the main influencer group for the prospective home loan customers in the lower and middle income (LMI) segment. The Company has launched two infomercials as part of the initiative to educate customers on the intricacies of home loans and would be launching a new video every month to update the customer on various home loan queries. This video will not only educate the customer on easy accessibility to home loans but also will imbibe confidence within them for buying their dream home.

The infomercials launched by the Company plan to convey the message to the younger generation that it is very simple to avail a home loan besides also educating them on the processes involved for applying for a home loan. The duration of each infomercial is close to three minutes and will be showcased across all digital mediums. The Company will also conduct workshops through its large network in the tier II and tier III locations. The video plans to reach out to over 5 lakh viewers through various social networking platforms.

The need for an educational approach arose because of the myths surrounding home loans and the indecisiveness on part of customers when it comes to applying for a home loan. The insights for the infomercials have been drawn from the expertise that DHFL enjoys for over three decades of servicing the low and middle income customer in the tier II and III towns and also through surveys conducted by the Company.

The video will further help increase awareness amongst the online searches on home loans, which stands at four and half lakh people seeking home loan information every month.

Speaking on the initiative, Harshil Mehta, CEO, DHFL, said, "The launch of our national influencer outreach initiative is a strategic move towards imparting knowledge to prospective home buyers, and complements the larger objective of the Indian government of achieving housing for all by 2022."

"The educative series is a step towards educating the target segment about the various benefits of a home loan and how the entire process can be made simple and convenient, thereby enabling them to take a well informed decision for buying their dream home," he added.

This influencer outreach program will further complement the recently launched "Bahanas" ad campaign by the Company to address the myths surrounding home loans. The infomercial will be showcased across branch networks and various digital platforms that are specifically targeted towards the LMI customers or the younger generation of LMI customers. It will be promoted on YouTube, Google+, news websites, Flickr, Pinterest, SlideShare, entertainment websites and high traffic online portals for maximum impact and reach.

Radius Launches Ultra-luxury Residential Project in Bandra

Radius Developers has launched ultra-luxury residential project titled 'Project Bandra', a joint venture between Radius Developers, DB Realty and ABIL, located off BKC Road near MIG Cricket Club.

Spreading across five acres, Project Banda offers 2, 3 & 4 BHK and will have 22-29 storey towers, the company said in a release.

Radius has ropped in well-known architect Hafeez Contractor for this project. While AEDAS will take take care of interior designs, POD Tierra from Singapore will do the landscaping for the project.


Project Bandra's innovative z-shaped layout offers views of the stunning Arabian Sea on one side and lush greens on the other. The unique master plan optimizes the natural essentials like ventilation and sunlight, ensuring that every single residence is airy and bright.

With pricing of the flat starts from Rs. 3.6 cr, the project will be completed by 2018.

Besides three majestic grand double height entrance lobbies spread over 37000 sq. ft. and multi-activity landscaped area, there are a host of amenities that will pamper and invigorate the residents. The project boasts of over 50% open and green spaces.

POD Tierra will develop over 3 acres of elevated lush landscape which will provide the rare sea of green in the heart of the city. Also included in the project are more than one kilometre long jogging track dotted with trees, gardens and orchard walks, 42,000 sq. ft. of amenities including luxurious clubhouse, equipped with world class amenities, state-of-the-art sky gym, swimming pool, toddler's pool, squash court and indoor games zone and a yoga and meditation center with spa, steam and sauna to help relax your body and mind.

Other amenities include, a barbeque deck, mini theatre, bowling alley, poolside cabanas, gourmet restaurant and café.

The project is located closer to Mumbai's largest and first international level CBD  - the Bandra-Kurla Complex (BKC), international schools, hospitals, malls, 5-star hotels, recreation and entertainment centers.

The project brings alive the walk-to-work concept and fosters a work life balance. It is also well connected to important destinations - everything from South Mumbai to the Airport, the city suburbs and the station lie within a 10-minute radius. Linked by the Bandra-Worli Sea Link, Western Express Highway and Eastern Express Highway.

Tuesday, November 24, 2015

Piramal Realty launches luxury tower in Thane for Dubai NRIs

Piramal Realty, a Part of the USD 4 bn Piramal Group, has recently launched Vivaan, one of the Most Premium Towers of Piramal Vaikunth located in the heart of Thane, exclusively for the NRI residents from Dubai.

Offering 2 BHK residences starting from 949 Square Feet carpet area, the limited pre-launch offer is available for select residences for NRIs in Dubai, a release stated.


Piramal Realty is a a diversified conglomerate with interests in Healthcare, Real Estate, Glass Packaging and Financial services, has recently received the largest private equity investment in Indian real estate from Goldman Sachs and Warburg Pincus.

Piramal Vaikunth is Located in the heart of Thane within 25 kms of the Mumbai International Airport.

The booking for Piramal Vaikunth has commenced from November 20. 

Vivaan is situated within the residential complex of Piramal Vaikunth at Balkum, Thane, which is 25 km from Mumbai International Airport.

Monday, November 23, 2015

Vaishnavi Launches mega residential project at Jalahalli off Tumkur Road

Vaishnavi Group, a well-established name in the Bangalore real estate circuit, has launched new residential project - 'Vaishnavi Gardenia' at Jalahalli, on Subroto Mukherjee Road, just off Tumkur Road.

This condominium of 628 apartments is being developed amids an oasis of greenery on the outskirts. Vaishnavi Gardenia has been envisioned to live up to Bangalore's sobriquet of Garden City. Each of the apartments has been configured to have a "garden view", which is the premise for the design of the building, as well as its name. Landscaping of the project began with transplanting of trees from parts of the project to designated areas. The architect retained several trees and planted many new ones in the project.


The development comprises 5 blocks - A, B, C, D and E with a mix of 1, 2 and 3 bedroom apartments, the company said in a release.

Speaking about the project, Harish S.N, Director, Operations of Vaishnavi Group, says, "The idea of the project was to create a residential space that was in complete harmony with its natural surroundings. Rather than place pressure on our environment, we are trying to give back as much as possible."

Gardenia has been designed as a "thinking" landscape. The idea was to create an interwoven, environmentally responsive design. A simple example for such a design; in the play courts area, each play feature is interspersed with tree-lined grids. This provides shade and works on delineating the spaces. The natural sloped terrain of this area has been retained as such, by adding terraced levels with seaters, thereby bringing together a functional requirement with the terrain of the site.

Suresh Marthand, the Principal Architect of Vaishnavi Gardenia, says, "The approach road from Subroto Mukherjee Road slopes downwards from east to west for 12 meters. We have integrated this into the design in terms of creating levels or terraces over which each of the blocks are built. We have also used these contours to provide a natural seating structure for the amphitheater. It has also helped us bring in a beach volleyball court and set up an open air gym, in as natural an  environment as possible."

Besides extensive efforts at green landscaping and tree conservation, the project also incorporates numerous other efforts at reducing carbon footprints and demands on natural resources. Vaishnavi Gardenia offers home dwellers on higher floors the advantage of solar heating.

Rain water harvesting systems have also been put in place to ensure that no natural water is lost from the project. This water is channeled from specific collection pits and used across the project for various needs.

Notable on the project premises is the presence of a sewage treatment plant. Sewage collected here is treated and then used across the project in the garden and for other non-potable needs. Interestingly the water treated here will be circulated in the flushing lines of the WCs ensuring that the demand for fresh water is reduced.

The presence of an organic waste recycling unit ensures that all kitchen waste collected during segregated garbage collection will go towards composting needs of the gardens. 

Thursday, November 19, 2015

Imperia Launches Lake View Apartments at Jaypee Sports City

Delhi–based Imperia Structures Limited, a leading real estate group, has announced a Unique offering – Rent-o-tsav – for the buyers of the newly-launched Lake View Apartments at Jaypee Sports City, located on the Yamuna Expressway.

Jaypee Sports City is part of one of the finest integrated townships in India developed in 4500 acres. Lake View Apartments at Mirage will consist of well-ventilated 3-BHK apartments in sizes of 1350 sq. ft. and 1450 sq. ft.

Residents will also enjoy amenities such as gymnasium with steam, sauna, and Jacuzzi, jogging track, kids’ play area, badminton and tennis courts, swimming pool, ATM facility, and ample parking space. Picturesque lake views and multi-tier security facilities are the some of the other benefits residents can look forward to. The strategically located project enjoys connectivity with two Highways i.e. the Yamuna Expressway as well as the Eastern Expressway. 

Other salient features indicating its prime location are:

  • Vicinity to F1 Race Track, International Cricket Stadium
  • Vicinity to Malls, Hotels, Multi-specialty Hospital, MNCs
  • Proximity to schools, colleges
  • Situated 20 mins away from Sec-18, Noida, and from the proposed KP-4 Metro Station
  • Situated only two hours away from Taj Mahal


Furthermore, prospective buyers can also look forward to ‘Rent-o-tsav’, an excellent festive offer for them to invest Rs. 2.93 Lakhs in a fine 3-BHK flat at Lake View Apartments, and get Rs. 7500 every month as rent till possession. They will also not have to pay EMI till the possession i.e. for 36 months. Housing loans will be furnished by Tata Capital Housing Finance Limited. The attractive offer can only be availed on bookings made from 13 October to 30 November 2015.

 Speaking to media, sales director of Imperia,. Prabhakar said, “Notwithstanding its contemporary ambience and ultra-modern amenities, the idea of the traditional Indian neighbourhood has been retained at Lake View Apartments.  Moreover, the residential complex’ natural surroundings and prime location lend it an edge clubbed with a great festive offer @ Rent-o-tsav making it attractive to investors and future residents alike.”


Headquartered in Delhi, Imperia Structures Limited is one of the top real estate players in North India, particularly the Delhi NCR area. With over 30 years of presence in Delhi/NCR, the Group has developed and leased out 2 million square feet of commercial space to fortune 500 and multinational companies which include Siemens, Samsung, Legrand, Videocon, Larsen and Toubro, GE Money, Airtel, Kotak, Max Bupa, Snap Deal, Flipkart, Reliance, Maharaja Whiteline, Aptra, Voltas, TCS and many more.

Wednesday, November 11, 2015

Ireo Launches Maiden Project - Ireo NuSpark- in Sohna, South Gurgaon

GURGAON:  Ireo, India's first and the largest FDI investor in Indian real estate sector, has announced the launch of 'Ireo NuSpark', its first residential project in Sohna, South Gurgaon.

Located in Sector 4, Sohna, South Gurgaon, this group housing development is the first of many planned launches in Sohna by Ireo, and will introduce Ireo's signature-quality living spaces to this upcoming commercial and residential hub. 

Well connected to Gurgaon, the project is nestled amidst natural greens and spectacular landscape views and comprises of 2/3 BHK residential towers with abundant leisure and sports facilities, community retail and a large clubhouse.The project is just 15-minute drive from Golf Course Extension along Gurgaon-Sohna Road.

Surrounded by Aravallis on two sides and bordering abundant open greens, the spacious 2-3 BHK air-conditioned apartment towers will have central greens,approximately 22,000 sq. ft. clubhouse, multiple sports and fitness facilities and
convenient community retail.

Special focus is being given on key infrastructural innovations like drinkable Tap Water Supply, Project-level AVR for fluctuation-stabilized power supply, Smart-TV enabled homes and many more.

First time in India, each unit will have advanced 'Made in Japan' pre-fabricated seepage resistant Panasonic Unit Bath Systems (UBS), the company said in a release.

'Bhoomipujan' ceremony at project site was held on October 29.

Townsend Group Invests in KKR's Real Estate Lending Platform in India

The Townsend Group, a leading provider of global investment management solutions focused on real estate and real assets, has announced an investment in a KKR-sponsored and managed, Non-Bank Finance Company (NBFC) in India.  

This real estate sector focused NBFC, which includes Singapore's sovereign wealth fund GIC as a lead investor, provides credit solutions for property developers, filling the capital gap and contributing to the continued development of India's residential and commercial real estate sectors.

Townsend believes this to be a unique investment opportunity, within select emerging markets, that seeks to benefit from the lack of long-term capital and strong urbanization trends.  The NBFC will engage in senior-secured lending to the fast growing Indian real estate market.

Prashant Tewari, Principal of The Townsend Group, said, "Townsend is excited to invest alongside GIC in the KKR managed real estate lending platform.  The strong secular demand for middle market housing requires innovative credit solutions and long-term capital.  The KKR NBFC platform provides our clients a thoughtful framework to execute in India and a strong investment partner with specialized, local market and property expertise."

Sanjay Nayar, CEO of KKR India  said, "In addition to GIC, we are pleased to have Townsend investors joining the shareholder group of our real estate NBFC in India.  This additional long term capital allows the real estate NBFC to better fulfill a critical market need by assisting developers with solutions best suited to their needs.   KKR continues the strategic build out of its real estate financing platform, leveraging its local and global real estate expertise in structuring and underwriting real estate solutions."

Townsend Group

The Townsend Group is a leading provider of global investment management solutions focused on real estate, infrastructure, timber and agriculture. With a culture based upon service and success measured by investment performance, Townsend's clients include many of the world's leading institutional investors. As of December 31, 2014, Townsend had assets under management of approximately $12.5 billion and provided advisory services to clients who had real estate/real asset allocations exceeding $170.0 billion.

Friday, November 6, 2015

Maha's New Retail Trade Policy: A Boon To Retailers

Ashutosh Limaye
Considering retail to be an essential amenity, the Maharashtra state government recently shared the draft of a new retail trade policy. To help retailers achieve optimal potential, the state government has suggested making some exceptions and relaxations in the current regulatory framework. Among the key suggestions is the introduction of retail entertainment zones (REZs).

Why REZs Are Needed

The development control regulations (DCR) shall reserve spaces for retail and entertainment on the same lines as reservations for essential services and restaurants, in order to make retail more affordable. Currently, the urban policy does not clearly reserve spaces for shopping and recreational needs of citizens, so shops tend to be set up in a haphazard manner. More importantly, shops compete for spaces in commercial locations, which are extremely expensive and untenable for the retail industry.
Creating a zone for retail and recreation will help increase consumption and simultaneously raise the standard of well-being of citizens. With this new policy, the state government will aim to recognise the need for shopping and recreational areas to create a much-needed balance between residential, commercial, industrial, shopping and recreational areas in urban places.

Accordingly, efforts will be made to:

  • Provide retail areas with direct access to mass public transport systems,
  • Secure a traffic plan designed for the long term,
  • Ensure year-round electricity, water, gas, sewage and IT connections.


REZs will be large retail developments where many big-box and other retailers will come together and give families an opportunity to spend an entire day out. The state government will consider such a ‘retail park’ concept under its master plans to give the advantage of choice to consumers, increase competition (which will help reduce prices for consumers) and also reduce vehicular usage by eliminating the need to travel to different parts of the city merely to compare retailers.

These retail parks would preferably be adjacent to highways and have an integrated public transport system. This will support connectivity, ease traffic in and around the city, provide customer convenience and result in cleaner cities.

Retail Zones To Figure In Regional / Town Planning

City master plans shall reserve land for retail development on the lines of Delhi, where they have been able to create specific centres in South and West Delhi for retail.

Benefits
  1. Large malls of international standards require larger land parcels. Earmarked spaces in master plans will help them maintain high standards of development
  2. The earmarked spaces for retail / entertainment development would also rationalise land prices
  3. Infrastructure like roads, public transportation and power will be planned in advance.
Development Control Regulations
Requirements for retail and other businesses are different, and there is a need to incorporate such specific business needs. The following modifications will be done to enhance viability and quality of development for retail centres:
  • Higher ground coverage: Malls house various retail components across floors but customer movement reduces on the higher levels, making them less productive. Retail development shall be allowed higher ground coverage up to 70% (subject to setback and fire safety regulations as also FSI norms being followed).
  • Recreation ground: In a retail environment, organised players offer various types of recreational facilities and activities on a commercial basis. Such activities, within the applicable norms, should be allowed to set up in a ‘recreation ground’.
  • Floor to floor heights: Retail developments, being public spaces, get crowded. The availability of higher floor-to-floor height allows the common areas and shops to look spacious and provide a relaxed and comfortable shopping environment to customers. The floor-to-floor height limit shall be raised to 5.5 meters, as is allowed in several other states.
  • Parking norms: Malls, depending on their sizes and locations, receive a large number of vehicles. Limited parking space not only reduces the number of people visiting malls but also creates traffic hassles in and around them, leading to public inconvenience. The parking rules, which currently consider parking in excess of regulation as FSI, will be changed to allow larger numbers of car parks – without FSI implications.
  • Services: Unlike office spaces, retail spaces need more services due to movement of goods and customers throughout the day. Retailers need to replenish their stocks in the store to service customers’ needs, and thus require higher storage space in a mall. Moreover, to cater to large numbers of customers and to provide ease and comfort of movement, high capacity air-conditioning, escalators and lifts are required. 15% of development will be allowed as services including storage areas in the basements, etc.
  • Changes: Space requirements of retailers and demographic profiles of customers both keep changing. Changes in use of spaces – for example, from fashion retailing to restaurants to entertainment or vice versa, are frequently seen. To address these needs, spaces for retail and other uses will be allowed to amalgamate, divide or interchange with simplified approval processes.
  • Building height: Currently, there is a height restriction of 30 meters for buildings that house a multiplex or auditorium. Retail developments generally do not work at higher levels. Therefore, to use the entire eligible FSI of the land, alternate commercial use like hotels, service apartments, offices, etc. are required to be developed on upper floors. Restrictions on building heights will be relaxed as done in neighbouring states.
  • Additional FSI for retail zones: To enhance the viability and quality of development for retail centres, up to 50% additional floor space index (FSI) will be admissible over and above the base FSI subject to payment of full applicable premium, as per the prevailing ready reckoner rates.
By Ashutosh Limaye, National Director – Research, JLL India

Thursday, November 5, 2015

SolarTown Installs Solar PV Rooftop Systems at RBL Bank Branches in Chennai

CHENNAI: SolarTown Energy Solutions, a pioneer in installation of solar rooftop systems for residential, commercial and industrial customers in India, has installed solar rooftop systems at an initial ten branches of RBL Bank. 

RBL Bank, formerly The Ratnakar Bank Limited, is estimated to save Rs 146,000 annually by opting for solar PV rooftop systems at ten of its sites in Chennai. Each branch will feature a minimum 3 kW system which will offset a major part of the business’ energy consumption and more than 70 tonnes of carbon dioxide over the lifetime of the solar installation.


“It’s a privilege to provide our solar PV systems to one of the fastest growing commercial banks in India,” said Vikram Dileepan, founder and CEO of SolarTown, who further added, “It gives us immense satisfaction to know RBL Bank will generate clean power and also save on electricity costs.”

RBL Bank entered into a no upfront costs, 10-year lease agreement with SolarTown. The installations will enable an uninterrupted supply of clean power at a fixed cost over the length of the lease, which also includes maintenance services. SolarTown installed the rooftop solar power systems including inverters and batteries, as a backup for brownouts.

SolarTown is one of the first to offer a zero-down lease and unique purchase options for residential and commercial customers in the 1 kW to 300 kW size in India, ideal for homes and small commercial buildings with monthly usage between 400 kWh and 40,000 kWh. 

SolarTown’s solar PV rooftop systems completely eliminate the dependence on diesel-based generators, the hassle of maintaining the systems, and pollution derived from burning diesel fuels. The fixed monthly lease option, lower than DISCOM rates, shields the customer against increasing electricity and diesel prices. SolarTown’s lease option makes solar PV systems highly accessible and empowers customers to take control of their power generation without straining their bottom line.

Wednesday, November 4, 2015

E-commerce Boom May Spell a Doom for Malls in India

In the wake of unprecedented surge in e-commerce, shopping malls already under huge pressure due to large vacant spaces are expected to see a sharp decline in the footfalls, could be to the extent of 55.58 per cent, during the ongoing festive season this year, reveals an ASSOCHAM recent survey.

According to the survey, Delhi-NCR has recorded the highest decline in footfalls at city malls. As per the study, about 120-150 malls were launched in the past two years but close to 65-70% of the spaces in many of the malls still remain empty. Several malls, unable to attract the shops are even shutting down.

The major factors attributed to this situation are economic slowdown, online shopping, high interest rate and inflation of consumer good items, the steep drop in shoppers have hit the malls which are already suffering from large vacant spaces, said ASSOCHAM paper.

ASSOCHAM Research team interacted with about 720 leasing managers, representatives of malls’ management, strategist, marketers and supervisors in Delhi-NCR, Mumbai, Ahemdabad, Chennai, Kolkata, Hyderabad, Bangalore, Chandigarh and Dehradun. 

In the nine major cities, more than 59 percent of the total mall space remains vacant, with Delhi-NCR top the list with 68.5 percent, followed by Mumbai at 65 percent, Ahmedabad at 61 percent and Chennai at 60 percent. According to the survey, several developers have already started giving rent-free period of up to six months for big brands to lure retailers.

While some malls are operating at 40 percent occupancy, others struggle with less than 20 percent, mainly due to poor location, poor design and poor parking facilities, the survey found.

Both retailers and consultants seem convinced that the mall magic seems to have disappeared in a puff of smoke on the back of the economic slowdown, poor revenue model, low footfalls-to-sales conversion and lack of special purpose malls, adds the survey.

For some malls, even the design and construction quality is poor. The remaining malls lie somewhere in between good performing and bad performing malls– average performers, adds the survey.

A meager 8-10% of these shopping malls are running successfully in India and facing tough competition from online retailers such as Flipkart, Amazon, Jabong, Snapdeal, which hand-delivers goods to the front door for minimal cost.

The festival season this year has triggered a huge rise in online shopping and may cross the Rs. 55,000-crore mark, resulting in the halving of footfalls in malls in places like Delhi, Mumbai, Chennai, Ahmedabad etc. apex industry body ASSOCHAM.

The study reveals that there may be a five-fold increase in the revenue clocked in by the eCommerce websites in categories such as include mobile phones, electronics, designer furniture, home decorations, apparel, accessories, jewellery, footwear etc.

The most popular among the e-commerce websites - Snapdeal, Myntra, Flipkart, Amazon, Jabong etc have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the upcoming festive month.

The growing trend is being attributed to the fact that all reputed Indian and international brands have tied-up with these websites and are being offered to the consumers at a much lower price than their retail prices.