Dynamics of luxury housing in India

In India's largest cities - namely Mumbai, Delhi NCR and Bangalore - luxury and ultra-luxury residential projects have witnessed ten-fold appreciation over their launch prices over the last decade, implying more than 100% annual returns on investment, says Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India.

Most of these projects saw encouraging pre-sale activity and were sold out completely very quickly. In fact, demand for luxury and ultra-luxury housing in cities like Gurgaon has always outpaced supply, which has encouraged developers to increasingly shift their focus on this segment, he says.

Why Luxury Works For Developers

Because of the tendency of ultra-luxury projects to garner extremely good pre-sale volumes, their developers are generally able to secure significant fund flows to capitalize the completion of their projects. Luxury and ultra-luxury projects yield much higher returns to developers than projects geared towards the affordable and mid-income segments.

While it is equally true that the input costs for luxury housing are also much higher, the developer stands to benefit from the increased visibility of his brand among highly affluent, top-end clients. This means that the developer can uniquely position himself on the basis of quality luxury projects. This increased visibility and the credibility attached to a reputation for superior construction is automatically attributed to all projects by such a developer. In other words, even mid-income housing projects that he launches benefit, and will invariably see higher sales than comparable projects by developers who have not ventured into luxury housing.


That said, there is considerable responsibility on a developer of luxury housing. He must mandatorily be able to introduce features which compare with or surpass those in other luxury projects on the market. Buyers for such projects have very high expectations and want their homes to offer as well as reflect a high lifestyle quotient. There is very little tolerance for flaws in design, construction and amenities. Thus, a botched luxury project can have significant negative repercussions on the developer's credibility and future success.

Luxury Housing As Investment

The ultra-luxury housing segment is comparatively recession proof. As most of the buyers in this category are the C Suite of the corporate world, successful entrepreneurs and business tycoons, their financial appetite is not limited to or governed by the economic considerations that give the middle-class sleepless nights. A significant percentage of buyers for such projects is able to self-finance their investments through their saved earnings. Recession might take a toll on the response generated and time taken in project selling out completely at the targeted price points; however, the quantum of impact that luxury projects face in times of economic uncertainty is significantly lower when compared to residential projects aimed at other categories.

India's Hottest Cities For Luxury Housing Investment

Mumbai

As the country's financial capital, Mumbai still stands alone as the costliest Indian city in terms of real estate pricing. This phenomenon applies equally to all categories of housing, but is especially true for luxury homes. The city has limited land parcels left within the prime centre locations; this has direct implications on the cost of land acquisition, and therefore on the pricing of the end product. Also, most luxury housing in these areas cannot offer the kind of ambient surroundings usually associated with such projects. It is not uncommon to find a project with units priced at several crore rupees overlooking a slum.

Nevertheless, this unique variable has not subdued the appetite for luxury housing. Mumbai is home to the headquarters of the largest financial institutions as well as of multinational corporates, and the incomes earned at the highest levels are staggering. This naturally gives rise to very high aspirations when it comes to housing the city's super-rich, who are willing to pay for the privilege of a penthouse or designer luxury apartment in areas like Prabhadevi, Lower Parel and Bandra Kurla Complex. 

Price points for luxury housing in the prime locations of Mumbai range from INR 25,000/sq.ft. to INR 110,000/sq.ft.

Delhi NCR

Apart from South Delhi, Gurgaon remains a hot market for the super-luxury housing segment as it has a generous complement of buyers with high financial clout and therefore aspirations to own such homes. Gurgaon is home to a considerable number of HNIs who account for a lot of demand for any project launched in this category. With Gurgaon having successfully positioned itself among leading MNCs as the most prime and desirable business destination in North India, the saturation of affluent CXO-level individuals in this city is high. In addition, Gurgaon is the destination of choice for investors with large investment appetite because of the handsome returns they can expect for luxury housing. For these reasons, all luxury projects in Gurgaon so far have done extremely well.


Price points for luxury housing in the prime areas of South and Central Delhi range from INR 15,000/sq.ft. to INR 65,000/sq.ft. In the prime areas of Gurgaon, they range from INR 7500/sq.ft. to INR 30,000/sq.ft.

Bangalore

As the undisputed Silicon Valley of India, Bangalore has reaped the highest benefits of the country's IT/ITeS boom. The housing market in Bangalore has not seen major setbacks even during the worst of the real estate market slowdown. With a stupendously high saturation of highly educated and qualified IT professionals, it has for the longest time been the city of choice for most outsourcing of software development and IT-enabled business processes. Moreover, unlike Mumbai, Bangalore is a growing market in terms of geography, meaning that it still has considerable land parcels which can be added to the real estate map.

With many software parks having come up in its peripheral rather than central locations, new catchments for all types of luxury housing have been and are still being created. Meanwhile, the incomes of the highest-paid IT professionals as well as corporate head honchos in Bangalore are more than eminently suited for luxury housing. This is a city where the growth of the luxury and super luxury residential segment is likely to continue unabated for many years to come.

Price points for luxury housing in the prime areas of Bangalore range from INR 20,000/sq.ft. to 30,000/sq.ft.

SRR Homes makes premium Villas at Bangalore

Located near Devanahalli on Highway NH-7 Bangalore, The Preserve is a premium villa project from S R R Homes at Bangalore. Spread across sprawling 23 acres of landscaped greens, these villas are just 15 minutes drive from Bangalore International Airport.

The area being target for fast paced development due to IT-BT and Industrial boom, it is wise to invest in plots or house here for quick short-term gain. The Preserve villas offer a luxurious stay in Bangalore city with a real value for invested money. The carpet area of the premium villas here have choices from 1624 to 3200 sq ft and there are three types of plot dimensions to choose from - 30x40, 30x50 and 40x60.

The project is approved by BIAAPA and the residential layout houses world class facilities. Villas here are classified into three categories based on the carpet area. Type-1, named Beech ranges between 1624 – 1760 sq ft area while Type-2 named Cypress ranges between 1943 – 2105 sq ft area. Type -3 is named Durian, which is very spacious ranging between 2800 – 3200 sq ft area.

Common amenities provided for added comfort includes club house with swimming pool, party area, children’s play area, jogging tracks, basket ball court, volley ball court, tennis court, parks, indoor game areas and more. The security of the residents is ensured through 24 hrs security with compound wall and power back up. Initiatives like a sound sewage treatment plant and centralized underground water supply ensures convenience and healthy living of the residents.

The buildings are structured with RCC frames and solid cement blocks for all walls. Floors in villas are crafted with vitrified tiles. Anti-skid ceramic tiles with skirting in toilets, balconies/ sit out areas and staircases are made from sadarahalli granite. The main door is crafted with Burma Teak Wood frame and shutter. Care has been taken to ensure convenience of the residents in every aspects including floor planning, plug points, provisioning etc.

S.R.R. Homes is a leading real estate group head quartered in Bangalore and with more than a decade’s industry experience. Several remarkable real estate projects in Bangalore carry the inimitable signature of the group. Being passionate about quality, S.R.R. Homes believe in giving their customers the kind of living spaces that they would like to live in themselves. This is very evident in the careful planning, strategic positioning world-class amenities offered in their projects.

Pankaj Bajaj Launches Eldeco Hillside Residential Project in Neemrana

Noida:  After celebrating the huge success of the Eldeco Eden Park, Eldeco Group feels privileged to announce its second ambitious project in Neemrana, ‘Eldeco Hillside’.

Eldeco Hillside is developed for the end users who aim to live with fanaticism and enthusiasm. It is crafted with master plan modernization and surplus of benefits. In an effort to spread out happiness amidst the consumers and clients the Eldeco Group is articulating reliability and friendliness towards its customers in the form of new launches of the housing project.

It is loaded with exclusive interiors that never allow you to compromise on privacy. It offers a wide array of value added housing options- high-rise and low-rise apartments that are designed out pleasingly and leave no space for conservative apartments.

Pankaj Bajaj, managing director of the Eldeco group says, "Eldeco Hillside Neemrana is aimed at giving majestic way of life with all world class state-of-the-art features to keep the end user happy from all around".

Strategically located in Japanese Zone, Neemrana is well connected to the major locations of the metropolitan cities. It offers a choice of 1BR, 2BR and studio apartments in these apartments ranges from 550 sq.ft, 940 sq.ft, 1075 sq.ft, and 1080 Sq.Ft to 1230 sq.ft.

The residential project is sprawling over prime 22-acre plot allotted by RIICO and is located right in the center of Neemrana.  Pankaj Bajaj Eldeco brings to you a golden chance of buying a dream home at affordable prices at one of the swiftly developing destinations within the NCR-Neemrana. This high rise and low rise affordable apartment provides 3-tier security systems, 24X7 power backup, 24 hours water supply, round the clock security, quick access to schools, colleges, and hospitals.

The Eldeco Real Estate Group is continuously acting as giant developer of real estate sector in North India Since 1975. This group is commonly known for timely and quality delivery of projects. It had delivered a number of successful infrastructures in towns like Greater Noida, Lucknow, Noida, Kanpur, Agra and Delhi NCR.

Metropolis’ Electra offers comfort living in Bangalore

“Metropolis Electra” near Electronics City is located off Hosur Road , 6 kms from Silk board. The proposed Namma Metro Station is just 200 m away from the project.

The advantage of choosing Metropolis Electra is that one can enjoy a decent living close to office with all modern comforts at an affordable cost. For those who are looking for investment options, this is an ideal choice, because of its strategic location, which can fetch in good rental income.

 

Metropolis Electra offers 2 and 3 BHK apartments. The total built up area of 2 BHK is between 1200-1400 sq. ft. and 3 BHK is between 1430 sq. ft. to 1650 sq. ft. The project ensures infrastructure for improved living with facilities like multipurpose halls for conducting parties and events, visitors lounge, indoor entertainment options and separate play area for children. Adults have fully equipped gym and walkways around the building. 100% backup power, intercom, 24 hours security system and the project has rainwater-harvesting system installed. 

 The project has an impeccable construction with RCC framed structures and high quality cement bricks. Rooms have good cross ventilation and natural lighting. The main doors are crafted from teak wood frame with OST shutters. Vitrified tiles are used in interiors while balconies and bathrooms have good quality anti-skid tiles.

Car parking is offered in the basement of this G+4 structure. There are 49 units available with 10 units per floor. BBMP and several leading banks approve the project. 

Metropolis Properties is a leading builder in South India with several residential and commercial projects to their credit. Headquartered in Bangalore and with branch offices in Hyderabad and USA, Electra is one of the most prestigious ongoing projects of the builder.

Prestige group launches Sun Rise Park in Bangalore

Bangalore: Prestige Sun Rise Park in Bangalore offers beautifully landscaped space amidst classy specifications. Spread over 25 acres of of land, the well-designed apartments’ host of convenient amenities include recreational offerings, landscaped spaces, security systems etc. 

Offering 1- 3 BHK apartments with a panoramic view from the cozy interiors, the apartments are being built on serene environment with breathtaking sunrise view and fresh breeze in the middle of city life, according to a release.

Strategically located in the heart of Electronic City Phase –1, people can enjoy easy accessibility to the prime locations of Bangalore from here. MG road is just 17 kms and Koramangala is only 8 kms away. It offers excellent connectivity and is linked with Neo Town Road, Express highway, NICE Road and Hosur main Road. Professionals who are looking for a comfortable stay near to office can end their search with this project.

With 1BHK units available in 631sqft, it is an ideal option for single dwellers and small families who look out for affordable luxury. 2 BHK apartments come within 1123 – 1154 sq ft and 2.5 BHKs are with 1363 sq ft. 3BHKs are available from 1603 to 1647sqft floor area offering a spacious retreat. The variety of options available makes it viable for those who look out as an investment option, to choose the one falling within their budgets. And needless to say, investing in Electronic City is a fantastic idea considering the fast paced developments taking place here.

The project offers 1900 units with luxury ambiance, comfortable designs and lively amenities to garnish life in every sense. Features like exclusive clubhouse, community hall, gaming arena with playing ground and courts and green gardens all are perfectly assembled for catering love for luxury and class. 

Entertainment options ranges from Tennis courts, Badminton Court, Squash Court, Movie Theatre, Amphi Theatre, Children's Play area, Senior Citizens park and more. A well equipped Gymnasium with Steam & Sauna and a well maintained Swimming Pool helps to ensure that maintain health even in a hectic days.

Prestige is a leading and trusted group in South India with over 163 projects spanning over 46.97 million sq ft to their credit. This includes Residential, Commercial, Retail, Leisure & Hospitality sectors. At present the group has 33 ongoing projects with over 36.7 million sqft.  About 31 upcoming projects, totaling 16.18 million sq.ft, including apartment enclaves, shopping malls and corporate structures are awaiting from the group. Prestige is also the winner of more than 15 Awards including the International Property Awards, Asia Pacific 2012-13 which is a testimony to their quality

Low cost housing: RBI eases ECB norms

Apex bankers Reserve Bank has relaxed ECB norms for affordable housing projects by withdrawing minimum capital requirement and lowering total experience of developers to three years, while extending the scheme till next financial year.

"Developers or builders should have a minimum of three years' experience in undertaking residential projects as against five years prescribed earlier," an RBI notification said.

RBI also withdrew the condition of minimum paid-up capital requirement of not less than Rs 50 crore for the housing finance companies (HFCs) to avail external commercial borrowings (ECBs).

However, RBI said that the condition of the minimum net owned funds of Rs 300 crore (for the HFCs) for the past three financial years was unchanged. "The aggregate limit for ECB under the low cost affordable housing scheme is extended for financial years 2013-14 and 2014-15 with a ceiling of USD 1 billion in each of the two years, subject to review thereafter," it said.

It added that the ECB availed of by developers and builders shall be swapped into rupee for the entire maturity on fully hedged basis.

 RBI said that the interest rate spread charged by the National Housing Bank (NHB) may be decided by NHB taking into account cost and other relevant factors.

 "NHB shall ensure that interest rate spread for HFCs for on-lending to prospective owners’ of individual units under the low cost affordable housing scheme is reasonable," RBI said.

The central bank further said that the HFCs while making applications for ECB should submit a certificate from NHB stating that availment of ECB for financing prospective owners of individual unit is for low cost affordable housing.

HFCs should ensure that cost of such individual units should not exceed Rs 30 lakh and loan should not exceed Rs 25 lakh; and units financed should have maximum carpet area of 60 square metres, RBI added further.

Pune realty looks up to City Development Plan

Pune does not need segmented, fractional development. Piecemeal development is exactly what has been happening all these years anyway. The haphazard development of Pune has followed the usual course of opportunistic urbanization. Certain areas receive maximum attention while others are completely neglected, says, Anil Pharande, Chairman - Pharande Spaces & Vice President - CREDAI (Pune Metro).

If properly formulated and implemented, the Pune City Development Plan (DP) has the potential to give the benefits of proper urban development to Pune’s real estate sector, its economy and to its citizens. The city as a whole needs better, wider roads and traffic management, improved water supply and more hospitals, gardens and playgrounds and open areas.

It is not just some areas being administered to by individual corporators that need to see change – the whole city needs the changes that will make life easier for its citizens and contribute towards more rational growth. The patchwork improvements that are being promised will not help Pune to develop scientifically, rationally and beneficially. A closer look at neighbouring Pimpri-Chinchwad would reveal just how much can be done for a city if its policy makers adopt a unified and holistic approach to development.

While Pune continues to stagger under the pressures of infrastructure deadlock, the Pimpri Chinchwad Municipal Corporation (PCMC) is already passing on the benefits of visionary urban planning to its residents. The planned development model adopted by the PCNTDA has consistently ensured that real estate growth in the entire Pimpri Chinchwad belt has taken place in a logical manner. As a result, infrastructure in the PCMC has become one of the brightest gems in Maharashtra’s urban development showcase.

All stakeholders in Pune's real estate sector must insist on the proper and timely implementation of the Pune Development Plan. In the villages which have now come under the DP, there has been little or no progress on infrastructure for more than two decades. There is an urgent need for proper roads and other physical infrastructure in these areas, many of which which have already seen a lot of irrational construction and illegal projects.

If Pune’s development Plan is properly streamlined and implemented, all old and new areas will benefit from improved road networks which will help in the decongestion of the inner city. It would be a mature approach to ensure the proper formulation and implementation of the DP in a timely and progress-oriented manner, rather than looking at the improvement of only certain sections of the city.

JLL delves investable real estate options with optimum ROI

Information asymmetries and laxity in disclosure norms need to be addressed for real estate sector in India to achieve its optimum potential in terms of development and investments, says Jones Lang LaSalle India, a leading international property consultancy firm.

In its report 'Emerging Investment Hotspots - Mining Opportunities From the Complex Real Estate Terrain of India' at the CII Real Estate Conclave 2013 recently, JLL India representatives also said, ‘While the real estate sector is moving ahead slowly and steadily, inaction and policy paralysis has so hampered full-fledged growth.’

Jones Lang LaSalle India, as Knowledge Partner for the Conclave, designed the report to dovetail with the event's theme - Embracing the Complexity of Indian Real Estate: Adopting a Pragmatic Approach for 2013 and Beyond.

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India said, "India has its own unique and integral complexities, and doing business here is no exception to this fact. Corporations strive for increased efficiency and productivity amidst these complexities - and real estate is an integral ingredient in the formation and growth of all businesses. On the flip-side of the real estate sector’s inherent uncertainties are the opportunities created by them in the real estate sector. Investors stand to capitalize significantly from these opportunities. However, in such an environment of uncertainty, returns through capital appreciation and security of the invested capital are obviously prime concerns. The pertinent question of where to invest needs to be answered."

Lauding the recent passing of Real Estate Regulatory Bill as an important move by the Government to address the concerns of real estate sector, the JLL report said, ‘The Land Acquisition and Rehabilitation and Resettlement Bill, which are yet to be approved, will be another step aimed at regulating the real estate sector. However, information asymmetries and laxity in disclosure norms need to be addressed for this sector to achieve its optimum potential in terms of development and investments. While the real estate sector is moving ahead slowly and steadily, inaction and policy paralysis has so hampered full-fledged growth.’

 “At a juncture like this, there is need for a focused push in the right direction for the real estate industry to remain buoyant going forward,” said Anuj Puri, adding, “It is essential for all stakeholders to equip themselves with a deeper understanding - not only of the real estate sector, but also of the businesses they serve. The key for businesses to thrive in the future will be their ability to decipher this complexity and adopt a pragmatic approach. This especially applies to the real estate sector.”

 Addressing the inherent need of the current state of affairs, this report is an initiative to provide well-rounded perspectives of the Indian real estate industry, focusing on factors that can potentially turn India into a global real estate powerhouse faster than expected.

RIL buys plots for realty development in Nairobi

Mumbai:  Reliance Industries Limited (RIL) has expanded its wings by investing in real estate sector. Mukesh Ambani recently acquired 10 prime plots for their commercial and residential development for an amount of Sh2.9 billion in Nairobi. This deal was jointly inked by RIL and Delta Corp East Africa Limited (DCEAL).
In the deal, RIL owns major stake of 60 percent while 40% is owned by DCEAL. This is second tryst of Ambani in real estate. He has previously also acquired and developed prime plots within Nairobi which were either sold or rented to international organization, private firms and governmental agencies.

DCEAL recently published its annual report. In the report, it has mentioned that DCEAL has acquired 10 prime plots of land in Nairobi with a planned developable area of approximately 1.2 million square feet of commercial and residential assets.

There are four under developing projects with DCEAL currently. The company owns a total land of 27.5 acre. One reason for the Kenyan firm and Indian energy tycoon to deviate its investments to Nairobi is that with rising demands for both commercial and residential spaces, areas like Upper Hill, Westlands, Kilimani and Mombasa road are fast emerging as new commercial centres.

Recently Economist Intelligence Unit (EIU), the research arm of the Economist publication did a survey in which Nairobi ranked among 120 most promising global cities of the next decade. Nairobi made to the list along with seven other African cities. These cities were judged based on the parameters like city's economic strength, physical capital, financial maturity, institutional character, social and cultural character, human capital, environmental and natural hazards risk and global appeal. The city made it to the 112th position in the list of 120 cities. This shows that a horrendous task awaits the city developers.

"Specific areas to improve include improving city disaster management plans, improving city disaster management plans, improving environmental governance policies (water quality, waste strategy and air quality)," said Eva Blaszczynski, senior analyst at EIU.

She added," that said, Nairobi did make progress in this category, mostly its city real GDP growth rate which we forecast will be about 5.3 percent by 2025. Areas where Nairobi could improve is raising its GDP per capita rate as well as real GDP."

Nairobi was ranked as the city with fastest growth rate in rent for high-end commercial property in 2012 by Knight Frank.

India's Emerging Retail Destinations

For retail players, stagnation and obsolescence are two sides of the same coin. Though expansion is often a challenge in a curtailed economic environment, it is nevertheless a necessary function for success. Retailers who wait too long to expand into new territories, or are content to stay where they are, are missing the growth wave and will eventually lose their market relevance, says Pankaj Renjhen, Managing Director - Retail Services, Jones Lang LaSalle India.

As such, all Indian and global retail brands operating in India have plans to expand into cities where economic momentum is picking up. In these cities, most local retailers already have a footprint, but branded national and international brands also have their sights trained on these emerging cities.

The upcoming cities that retailers are considering with increasing seriousness today are:

·         Jaipur
·         Kochi
·         Ludhiana
·         Indore
·         Nagpur
·         Udaipur

These emerging cities are emerging as lucrative as retailers/brands are attracted by the increasing incomes and rising brand awareness among consumers there. Also, a substantial number of shopping malls are being planned or are already under development in these cities. Sales in the modern retail stores in these cities are quite encouraging, and this is paving the way for the establishment of even more organised retail.

·         Indore: Traditional high streets still dominate Indore's retail landscape. However, high street retail is gradually yielding market share to organised retail with the arrival of new malls and shopping centres in the city. M.G Road along with Jawaharlal Nehru Road was traditionally Indore's retail hub before the emergence of markets adjacent to Palasia Chauraha and Bombay Hospital.

·         Kochi: Retail activity in Kochi has traditionally been concentrated on a central high street, with M.G Road being the dominant retail corridor. The other emerging retail destinations in Kochi include Marine Drive, Vytilla Junction, Palarivattam and Edapally. Shopping malls are also emerging in areas such as Maradu and Edapally. The Upcoming mall developments include Lullu Mall, among others.

·         Ludhiana: Ferozpur Road is the main growth corridor for retail in Ludhiana; consequently, it has seen the highest incidence of major organized retail developments with Ansal Plaza, Flamez Mall and Westend Mall. Over time, various national and local developers have entered the market - these include Ansal API, DLF, MBD Group, Omaxe and Chadha Group.

·         Jaipur: Jaipur has progressed tremendously on the retail front, and is considered one of the most important emerging retail destinations of North India. It has shopping malls with multiplexes operational at various locations in the city. Organised retail has come up and is proliferating in areas such as Tonk Road, Malviya Nagar and Ajmer Road, among others.

·         Udaipur: The traditional retail destinations of Udaipur include Bapu Bazaar, Chetak Circle, Suraj Pole, Nehru Bazaar, Bada Bazaar and Chand Pole. Organised retail is also widespread throughout Udaipur, with Durga Nursery Road, Shakti Nagar and Sudkhadia Circle having the largest concentration of new entrants. Shopping mall developments are beginning to make their presence felt in Udaipur, in light of the growing demand among local consumers for a modern shopping experience.

·         Nagpur: In Nagpur, unorganised retail has more or less always existed in areas such as Itwari and Sitabuldi, and in western part of the city. The city’s established prime retail areas include Dharampeth, Ramdaspeth, Gokulpeth, Central Avenue, Gandhibagh and Sadar. Shopping malls are also operational in Nagpur, and a lot of retail brands are entering there. Presently, Central Nagpur is a noteworthy retail destination in terms of shopping mall developments - however, both West and South Nagpur are rapidly emerging as the next generation retail hubs.

City		High Street (GF Rentals on Carpet Area)		Mall (GF Rentals on Carpet Area)
Indore		70-90		90-110
Kochi		110-180		150-200
Ludhiana		120-160		100-160
Jaipur		150-260		180-200
Udaipur		40-70		130-140
Nagpur		90-150		120-150

Advance India Builders launches mixed-use development in Bhiwadi

Gurgaon:  Advance India Builders & Promoters Pvt. Ltd. (AIBPL), one of the emerging real estate companies of India, has launched their ambitious project “Advance Saaga Castle” a unique mixed-use commercial development being constructed for the first time in Bhiwadi on Bhiwadi-Alwar Express Highway (SH-25). It will be the tallest commercial tower in Bhiwadi and surrounded by many residential projects that already taken possession.

Saaga means Legend and Castle denote Tower, so the name Advance Saaga Castle represents an adventurous legend tower with a bunch of different concept and will be one of the prominent iconic tower.

According to Ajay Yadav, Chairman, Advance India Builders & Promoters, “We are happy to launch the tallest commercial tower of Bhiwadi, The project will be similar to international towers and it accommodates all the facilities under a single roof, fun, entertainment, shopping, food court, offices, and the luxury maharaja suite.

About the Project:

Advance Saaga Castle is a unique concept where classic luxury blends with contemporary lifestyle,

-- Retails shops/showrooms

-- Fully furnished / Raw Office spaces

-- Entertainment and fun zone

-- Corporate Business Centre(CBC)

-- Theme based restaurant/food court

-- Maharaja Luxury Suites with swimming pool & garden on 9th & 10th floor

-- 3 Basements with multilevel Car Parking

The floor wise distributions have done on the basis of commercial importance and detailed study on present emporium statuses. The lower floors (Ground, first and second floors) will be accommodated by multinational companies for their show room outlets. Third floor is dedicated to Food Court &Restaurants. Fourth Floor credits Entertainment & fun zone such as, health club, beauty salon, spa, yoga center, kids zone and games etc. On Fifth floor AIBPL introduced CBC, the Corporate Business Centre first time in Bhiwadi. The USP of this CBC is that one can hire an office on hourly basis also, Sixth and Seventh floors have kept aside for fully furnished and raw office spaces eighth floor is reserved for services and again a very unique concept Maharaja Luxury suites with swimming pool & garden on ninth and tenth floor for the first time in Bhiwadi.

It also offers benefits to the investors as an 12% Assured return i.e. for the investment of 7 lacs they will get Rs. 7000/month and for a showroom an investment of 1Cr they will get a return of 1Lac/month.

Advance Saaga Castle is surrounded by the many premium residential projects like Aashiyana Aangan, Kajaria Greens, BDI Sunshine City, Kanark Oasis and Nimai Greens. Advance Saaga Castle, keep its head up with the specialty of its sublime height and features. This tallest castle situates only ½ Km – 1 Km away from all its neighbors. This making will be so remunerative and rewarding for the people not only from the blessed land of Bhiwadi but also in the entire Delhi-NCR this concept is being exquisite.

JLL closes first round of real estate fund

Leading property consultant Jones Lang LaSalle's Segregated Funds Group has achieved the first close of its maiden real estate fund in India.  The Residential Opportunities Fund-I, had raised Rs101 cr commitments in its first closing, in line with the R300 Cr total fund raising target.The fund will invest in the residential sector in prominent location across seven cities in India, namely Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Kolkata, Hyderabad and Pune.

Segregated Funds Group had also confirmed on investing R30 Cr from the R300 Cr fund in city-centric luxury residential project in Bangalore.

Jones Lang LaSalle is a financial and professional services firm specializing in real estate services. With annual revenue of $3.9 Bn, and operates in 70 countries from more than 1,000 locations worldwide.

LaSalle Investment Management, an independent subsidiary of Jones Lang LaSalle, manages $46.7 bn of private and public property equity investments, which invest only in real estate.

The segregated funds group is Jones Lang LaSalle's investment management business in India. It is a new entity setup by the global consultancy firm to raise a series of funds with dedicated investment themes for the Indian Real Estate Market.

Last month, The Capital Markets division of leading international property consultants JLL India had successfully concluded its largest M&A real estate deal in Pune for 2013.

LaSalle Investment Management also raised £238 Mn 'LaSalle Residential Finance I'.

In April, Jones Lang LaSalle (JLL) planned to raise a second fund which would focus on commercial real estate with corpus of R1,200 Cr. The fund was expected to be launched by the end of the year.

Last year, JLL had got the green signal from SEBI to launch its first residential focused fund in India. It planned to raise $57 Mn.

According to management consulting firm, Bain & Company's latest report on private equity in India, real estate investments have halved, from $3.4 Bn in 2011 to $1.8 Bn in 2012.

Tata Housing luxury project wins NDTV Property Awards

Mumbai: Tata Housing Development Company has won the renowned NDTV Property Awards in the category of ‘Super luxury apartment project of the year' for its premium property Raisina Residency.

Ajay Maken, minister, housing and urban poverty alleviation, honoured Tata Housing as the winner of the Super luxury apartment project of the year, in the first edition of the NDTV Property Awards held on June 3, 2013.

Speaking on the achievement, Brotin Banerjee, managing director and chief executive officer, Tata Housing, said, “At Tata Housing, it is our constant endeavour to create benchmarks and constantly reinvent. With Raisina Residency, we were attempting to cater to a niche segment within the luxury space. Raisina Residency is based on art and culture and is for the consumers who want to live life king-size, those who have known affluence and indulgence.”

“Theme-based housing projects are a major attraction in today’s cluttered markets. The simplicities of condominium living need to go beyond luxury homes. Buyers are no longer impressed by facilities such as club-houses, swimming pools or health clubs. Their lifestyle aspirations now go far beyond,” he added.

Raisina Residency is a premium and exclusive residential complex, located at the Golf Course Road extension and is inspired by the theme of ‘art and culture’. Spread across a sprawling 11.73 acre campus, Raisina Residency has nine aesthetically-designed towers that compliment modern lifestyle and are packed to the hilt with unmatched luxuries. The product mix consists of 3BHK (2,319 sq ft and 2,910 sq ft) and 4BHK (3,375 sq ft and 3,829 sq ft) apartments, duplex and penthouses. The master plan, landscaping and buildings, designed by 'AEDAS' — one of the top five architects globally. It ensures that maximum flats get unhindered views of both the Aravallis and the city landscape.

The project has pre-certified Green Homes under the guidance of Indian Green Building Council (IGBC) and is designed to provide excellent natural ventilation. Also, Raisina Residency comes with 86 percent open area surrounding the towers.

After in-depth evaluation of each entry, the esteemed jury has finally announced the winners of the first NDTV Property Awards that recognises and applauds excellence in Indian real estate. Participation was invited from architects, developers and service providers.

Mumbai to host Big 5 Construct India 2013

Indian construction industry is a major contributor to the country's GDP (8% in FY12) and one of the largest employers currently employing around 33 million people. While the Indian economy grew by 5% in FY13 as compared to 6.2% in FY12, the construction industry grew by 5.9% in FY13 as against 5.6% in FY12.

"India is expected to emerge as the world’s 3rd largest construction market by 2020," according to a PwC report prepared for the organizers of The Big 5 Construct India.

In the last decade, "The country has witnessed a tremendous housing boom and over the span of five years, from 2012 to 2016, the real estate sector is expected to account for 43% of the construction spend in India.  This segment is forecast to achieve a CAGR of 13.6% during this period.  The PwC report estimates that the market for real estate construction segment in India is likely to aggregate to approximately USD 380 billion over the five year period, 2012 to 2016," stated Dushyant Singh, associate director - strategy from PwC.

Leveraging this unprecedented growth and opportunities for suppliers of construction products offered by the Indian market, Federation of Indian Chambers of Commerce and Industry (FICCI), Ministry of Urban Development, Government of India and DMG events are jointly organizing The Big 5 Construct India 2013, an international building and construction show to be held at the Bombay Exhibition Centre in Mumbai from 2nd to 4th September 2013.

Andy White, Group Event Director, dmg events said, "Thanks to the wonderful support from FICCI and the Ministry of Urban Development, Government of India, the first Big 5 Construct India show in Mumbai promises to be a huge success."

According to Srikanth Srinivasan, associate president - procurement, Puravankara Projects, "The Big 5 is a “must visit” event for any professional from the Construction industry and gives valuable insight into the new developments and trends in the Construction industry. It is also a great platform for Sellers and Buyers to meet and explore opportunities for doing Business. I have attended the Big 5 in Dubai last year and would definitely attend the Big 5 in Mumbai in September this year and would strongly recommend my colleagues and peers from the industry to do the same."

Smart Homes Revolution in Pune Real Estate

Over the past two decades, Pune has seen rapid growth of the IT culture. In the beginning, this culture was limited to employees of the city’s many IT/ITES parks – today, it has touched almost everyone who lives in Pune, says Kishor Pate, CMD – Amit Enterprises Housing Ltd.

The cyber revolution in this city is inescapable – those who do not own computers populate internet cafes. The current generation of young people below age 30 is defined by computer savviness, and these are the people who will usher the city into the future. Naturally, this revolution has had a very distinct impact on the kinds of homes that younger people choose to buy today. Whether they are working in Pune’s innumerable software companies and IT-enables services firms or in some other sector, the young home buyers today have developed their own criteria for what constitutes an ideal home. ‘Smart’ homes are now in vogue not only with IT/ITES employees – every home buyer from the middle and upper-middle class is looking for residences that support a cyber-driven lifestyle.

That said, the highest demand for smart homes in Pune still stems from people working in software parks and IT companies. This can be largely attributed to a combination of their exposure to IT-driven concepts and the sizable pay packets they tend to draw. After all, there is a premium attached to homes with ‘smart’ features. The extent to which the cost rises above that of baseline residential property prices in a certain location depends on how many of these features have been included in the project. For Pune’s gadget-conscious IT professionals, automated homes are definitely de rigueur and something to aspire for. In the past, smart homes were considered something of a niche concept, owing to the larger ticket sizes.

At their best, Pune’s smart homes offer technological features wherein home owners can operate almost anything in their homes (including lights, air conditioners, security systems, curtains and blinds) from within and even outside at the touch or click of a button. Today, smart home technology uses user-friendly software that allows simplified control of climate, lighting, entertainment and communication. The technology involved impacts three key areas – energy efficiency, security systems and telecom systems.

In Pune, the buyers for smart homes fall in the age group of 29-40. They are either established in senior roles within the IT/ITES, manufacturing or services sectors, or are upwardly mobile, highly aspirational and eminently qualified for home loans. They also tend to be quite stressed-out by their professions, and therefore seek the comforts, enablement and security that smart homes offer as a means to relax and generate more time to spend with their families.

Moreover, smart homes have a definite status value attached to them and tend to have higher resale value because of their locations, which are either close to the city’s IT hubs or in upscale areas which are defined by higher purchasing power and therefore higher lifestyle aspirations. The biggest success stories in Pune’s smart homes revolution so far have been Baner, Aundh, Kalyaninagar and Magarpatta. Other locations where smart homes are in high demand are Sakal Nagar near Aundh and Ambegaon. Appreciation of such properties is also influenced by the very nature of the features that make life simpler, safer, more comfortable and more exciting.

India second-most risk prone country for datacentre operations

India, considered a world leader in providing outsourcing solutions, is the second-most risk prone location globally for hosting datacentre operations, a survey by global consultancy firm Cushman & Wakefield said.
According to Datacenter Risk Index 2013 survey, released by Cushman & Wakefield in association with hurleypalmerflatt and Source8, India fared poorly in crucial indicators like energy costs, ease of doing business, etc.

The survey put Brazil as the riskiest nation for hosting datacentre operations.

"India, which has been the world leader in mass IT processes with presence of most major IT and ITeS companies, has for the second year, remained at the bottom of the list of preferred Data Centre Location, beating only Brazil which ranked the lowest," the survey said.

The 'Data Centre Risk Index 2013' identifies risks likely to affect the successful operation of data centre facilities in the 30 most important global markets. While India ranked high on parameters like cost of labour (rank 4) and sustainability (rank 6), it ranked moderately on the parameters of political stability (rank 13) and global bandwidth (rank 16), it added.

India, which has a over USD 100 billion IT and IteS industry, failed to score high on crucial parameters with higher weightage in the survey. “India scored low on key factors like energy cost (rank 25) and ease of doing business (rank 30). Other factors where India lags behind are natural disasters (rank 28), energy security (rank 28), corporation tax (rank 28) and education level (rank 28)," the survey added.

The US maintains its place at the top of the survey and is considered the lowest-risk location for building and operating a data centre globally. "India presents some marked advantages, such as labour cost and high degree of operational sustainability; while it also offers moderately attractive proposition from political stability perspective," Cushman & Wakefield Executive Director Consultancy Services (MRICS) Arvind Nandan said.

However, the key to improving its rank will lie in addressing concerns on energy cost and energy security, in the short term. In the medium to long term, India needs to aim at providing an improved environment for business and strengthening its macroeconomic aspects, he added. India second-most risk prone country for datacentre operations.
 

RICS welcomes Real Estate Regulation Bill

Royal Institution of Chartered Surveyors (RICS) says that the Cabinet’s decision to clear the long-pending real estate regulation bill is aimed at regulating the housing market and protecting home buyers’ interest. 

Whilst the bill is not flawless, it is certainly a step in the right direction and we hope that this legislation will be supplemented with necessary rules and regulations, which will clarify any ambiguities or gaps that exist in the bill. The bill could have been more balanced and clearer on issues relating to dispute resolution and project clearances.

In some ways, the bill should be termed as ‘housing regulation bill’ rather than ‘real estate regulation bill’ because it does apply only to primary residential market, leaving out the secondary market and also leaving out the commercial property market.

Taking a risk based approach; the bill has been modelled taking into account appropriate checkpoints in key stages of a property transaction where regulation is most required, given the history of fraudulent practices and unfulfilled promises. A common complain is that developers and builders do not deliver what is promised when selling apartments.

While their advertisements show buildings and landscaping to match international quality, in a majority of cases, the ground reality is far different leaving buyers feeling cheated. And the regulatory body envisaged under the draft bill would ensure that the developers are held accountable for what they promise and provide recourse to the customers incase these promises are not fulfilled.

Provisions such as restricting launch of projects or advertisements unless all approvals are received, maintaining separate account for customer monies, sale of projects based on carpet area will indeed help bring in transparency. Other provisions such as mandatory registration of projects (within 15 days) and registration of brokers are well intentioned but unless objective guidelines and rules are stipulated regarding the registration criteria, there is a danger of subjectivity creeping into the registration process. Rules should be made which can be enforced for certain. We do believe that the deterrent to unprofessional behaviour should not be judged by the severity of the punishment but by the certainty of it.

Stipulation of ‘carpet area’ as the only measurement unit will limit fraudulent practices arising from use of measurement units such as saleable area, super built up area etc. The provision will no doubt protect customer interest and create more transparency in transactions. However, a bigger concern that still remains unaddressed is the definition and measurement standards for carpet area. Since the definition mentioned in policies and laws tend to be subjective, the carpet area is interpreted differently and calculated such that it amounts to a higher area than actual. And this problem is not unique to India – it exists in many parts of the world.

The Bill has a national advisory council, which we believe can be responsible for prescribing national standards and best practices in different areas eg property measurement, builder buyer agreements, brokerage standards etc. The same can also be implemented by state regulators. This will go a long way in ensuring standardisation in line with international best practices.
 

The Bill proposes to set a real estate appellate tribunal, headed by a sitting or a retired      judge, for adjudicating disputes. However, the complaint handling mechanism outlined in the Bill is not as robust as it ought to be considering it does not clarify how the processes will work, what would happen at the state and the city level. Therefore these details need to be ironed out further, where the regulator could look at identifying an ombudsman who would be responsible for adjudicating all dispute cases, much on the lines of the SEBI Ombudsman regulations and Banking Ombudsman Scheme set up under the aegis of RBI.

Real Estate Regulatory Bill will boost morale of the sector

The Real Estate Regulatory Bill is a welcomed move by the Government to boost the morale of the sector and bring in the right kind of momentum in the future as provisions such as the setting up of project specific escrow accounts, establishment of a Regulatory Authority, mandatory registration of projects, developers and brokers, and public disclosure of project details, etc will put our housing sector on par with many other developed and developing countries, says Sanjay Dutt – Executive, Managing Director, South Asia, Cushman & Wakefield.

 The approval from the Cabinet on the Real Estate Regulatory Bill is a watershed development for the real estate sector and a welcomed move from the government. This Bill to bring forth higher level of transparency and accountability from the developer community, which for long has been either self-regulated or working on best practices principles.

 This Bill will help institutionalize the sector, giving it the necessary fillip to move to a new phase of growth and development. Hopefully, this would also be a positive step in the direction of providing ‘Industry status’ to the sector – another long awaited demand of stakeholders involved in real estate.

Apart from protecting end-user / home buyers’ interest and bringing in credibility to the developer community, we also see this working positively in terms of attracting investments from domestic and international funds that have harboured skepticism towards investing in Indian Real estate largely on account of lack of regulation. With the safety features now proposed in the Bill, the RBI’s negative perception of lending to the housing projects as being risky will also be dispelled and developers will find it easier to access formal funding thereby not have to rely on sales to fund the construction of the projects.

The Bill will essentially change the way in which funding of housing development has been approached for a very long time, as it will require the developers to invest their own capital and launch only those projects that are well funded and have a time bound construction plans in place. This is a quantum shift, which may take time to settle in as a process.

In the short to medium term, after the Bill is enforced, we may see a noticeable slowdown in launches of new projects, as getting all the necessary permissions in place is a long and tedious process, which may delay the entire process of launching a project, unless the Government follows up with much-needed administrative reforms that speed up the entire process. Hence, the Bill may create an upward pressure on prices as there will also be some cost implications as developers wait to launch their projects with due approvals in place.

In all, the Real Estate Regulatory Bill is a welcomed move taken by the Indian Government to boost the morale of the sector and bring in the right kind of momentum in the future as provisions such as the setting up of project specific escrow accounts, establishment of a Regulatory Authority, mandatory registration of projects, developers and brokers, and public disclosure of  project details, etc put our housing sector on par with many other developed and developing countries.

Realty Bill will ensure transparent transactions

By imposing strict regulations on the Promoter, the Bill looks to ensure that construction is not only completed in a timely manner but that on completion the buyer gets the property as per the specifications that he had been promised, says Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India.

 The Cabinet has finally approved the long-pending RE Bill paving the way for providing the much-needed transparency by seeking to regulate the hitherto largely unregulated housing sector in India. By applying this bill on all projects over 4000 sq mtrs in size, the ambit if quite large and seeks to cover all major private residential developments across the country.

As and when the Bill gets enacted, it will look to provide considerable relief to the ordinary buyer and investor who goes through innumerable obstacles when buying a property and at times is duped by even small developers, builders and brokers.

By imposing strict regulations on the Promoter, the Bill looks to ensure that construction is not only completed in a timely manner but that on completion the buyer gets the property as per the specifications that he had been promised.

Further, by seeking to establish the Regulatory Authority and the Appellate Tribunal, the Bill aims to create a dispute resolution mechanism and provide a specialized forum for hearing disputes related to property matters and address the grievances of the consumer who otherwise has had recourse to either a prolonged litigation process in a court of law or consumer courts.

The Bill also seeks to prevent developers from putting out misleading advertisements, which make promises which are not backed by the real development on ground. They also need to clearly mention the sanctions and approvals they have obtained and cannot market the project unless the necessary approvals are in place. By making registration of the project compulsory with the Regulatory Authority, the Bill aims to provide greater transparency in project marketing and execution.

All plans, approvals need to be put up by the developer on the Regulator’s website. The developer needs to set aside 70% or less percentage in a separate account which shall consist of the monies collected from the allottees and this amount shall be utilized only towards he particular project and cannot be diverted. The developer is required to declare the time frame for developing the project and has to adhere to such timelines.

The Bill in its latest form has agreed to certain suggestions made by the states, such as the percentage amount of 70% or less being maintained in a separate account. The Bill also seeks to impose monetary penalties on the promoter with repeat offences also liable for a jail term.

The Bill works both ways. While it aims to hold the developers accountable, it also looks to ensure that the allottees do not default in making payments. Thus, by providing penalties for both the promoters and the allottees, the Bill seeks to ensure that non-compliance is minimal. On enactment, the Bill seeks to ensure that real estate transactions are carried out in a just and equitable manner.

The category of real estate brokers has also been brought under the ambit of this Bill by making their registration mandatory when the promoter provides the project details to the Authority.

The Bill also seeks to define the carpet area which shall be a standard definition across the country.

The Bill also seeks to provide model Agreement to Sell under which the promoter is liable to furnish the necessary project details to the allottee while also becoming responsible for providing project level details as demanded by the buyer.

The Bill will establish a central Appellate Tribunal with the individual states responsible for setting up the Regulatory Authority at the state level.

Though the Bill will turn out to be a boon for the property purchasers and the consumers, it has received a lot of criticism from developers for not being inclusive in its approach towards them. The Bill in its current form does not provide for any relief to them in terms of getting through the cumbersome approvals and permissions process in any expeditious manner.

It has been a constant complaint by developers in India that they experience long and inordinate delays besides the difficulty in obtaining approvals for construction from the multi-headed Government agencies, and they have stressed on the need for a single-window clearance to cut through the red tape. This issue does not find any mention in the Bill.

Also, though the list of disclosures to be furnished by the Promoter is fairly exhaustive, it could still be benchmarked against the best practices of the developed markets so as to bring the real estate markets in India in more conformity with such markets where regulations have been existing for some time with relevant lessons to be learnt from their experiences.

The Bill has received the Cabinet Approval and could either be brought in by passing an Ordinance, while the Parliament and other parties could insist on a discussion in the legislature and then putting the Bill to vote. It then requires the signature of the President. The road to becoming an Act is still being paved.

New Real Estate Mantra - Integrated Residential Projects

Land constraints, zoning laws and the budgetary considerations that govern property buyers in many areas often do not make the integrated township model feasible, opines Anil Pharande is Vice President - CREDAI (Pune Metro) and Chairman of Pharande Spaces.

When you are setting out to purchase the home you always dreamed of and saved for, you obviously wanted something more than just an orphaned, anonymous set of walls in some congested city center. The problem is that’s all that most residential projects in India offer these days.

There is a lot more to the perfect home than good construction, layout and fittings – a residential property needs supporting social and physical infrastructure to become a suitable home. Moreover, the beleaguered city dweller’s heart yearns for the sight of greenery, open spaces and fresh air.

After all, we want our children to grow up in better conditions than we possibly experienced at their age…

In Pune, integrated townships have been seen as the answer to these requirements. However, land constraints, zoning laws and the budgetary considerations that govern property buyers in many areas often do not make the integrated township model feasible. A more practical and feasible alternative is Integrated Residential Projects. 

What Are Integrated Residential Projects?

Like integrated townships, this more compact and serviceable model offers home buyers everything they need for a comfortable and healthy lifestyle. Children have enough room to play in, and both they and their parents are free from the stress, noise and pollution of central urban life. Such projects have schools, shopping and entertainment facilities, healthcare and easy access to public transport.

Also (very importantly) they are a boon to people who wish to live in a non-urban environment while attending to their jobs in the workplace catchments of the city. They get a dream location, excellent infrastructure and a lot more.

Residential real estate investors, on their part, can capitalize on the higher demand – and therefore the higher ROI (returns on investment) that such properties offer. The higher investment potential of homes in integrated residential projects stems from the fact that they are self-sufficient and self-sustaining. A direct outcome of this is that the resale value of such properties is as good as immune to market volatility. Because of the diversified nature of such projects, they represent a very low risk to property investors, even while they benefit from the larger upside potential despite low entry costs.

Unique Challenges For Developers

Builders who cater to the demand for integrated residential projects face quite few challenges. After all, they have to provide the advantages of integrated townships while having to forgo the considerable incentives that the Indian Government offers for the development of larger townships. Therefore, the initial capital required is extremely steep – right from land acquisition to the providing of physical and social infrastructure.

The integrated residential project concept is just beginning to emerge on the Indian real estate landscape. One of the areas where it has been successfully implemented is Pune’s sister city – the Pimpri Chinchwad Municipal Corporation. One of the primary reasons for the success of the integrated residential projects in the PCMC areas of Pradhikaran and Ravet is the fact that these are located very close to vital workplace hubs such as the MIDC and Hinjewadi, Pune’s software hub. This, coupled with the advantages of having ‘everything inside’, has contributed to the demand for homes in such projects.

Cushman & Wakefield Opens An Office In Taiwan

Bangalore: Cushman & Wakefield, the world’s largest privately owned real estate services firm, announced on Wednesday that it has expanded its Greater China operations into Taiwan by opening its first office in Taipei.

Sanjay Verma, CEO for Asia Pacific commented: “Cushman & Wakefield has been aggressively expanding its business in Asia Pacific, and our Taipei office is our 6th new Asia Pacific office in the past 18 months. I strongly believe this new office will help us further increase the depth and breadth of our service offerings to our global clients and provides us with the opportunity to leverage Taiwan’s expanding economy which is one of the important economies in Asia Pacific.”

Randall Hall, Executive Managing Director for Greater China said: “We are delighted to extend our Greater China platform to Taiwan. Together with our teams in mainland China and Hong Kong, I believe we can offer outstanding services to our clients through our collaboration across Greater China. We have opened an office in Taiwan because our clients are there and they require integrated service offerings. This trend is set to continue. With a population of nearly 23 million and projected GDP growth rates of 3 – 5% over the next few years, the Taiwan economy will have a growing prominence in the region. The Cushman & Wakefield platform will give us the ability to reach out to investors and occupiers globally and introduce best in class services in Taiwan.”

Cushman & Wakefield has appointed Jack Lin as the Managing Director of Taipei office. Prior to joining Cushman & Wakefield, Jack was the Managing Director of Taiwan Sotheby’s International Realty where he set up the luxury residential brokerage business. Together with Jack, Steven Chen was also appointed as the Director of Agency. Steven has more than 16 years experience in the real estate industry and was previously at Savills.

Cushman & Wakefield is ready to become a driving force in the Taiwan property market, where property risk premiums are one of the lowest in Asia Pacific and is still experiencing a significant transformation, which gives the company room to develop a competitive advantage in another major city within the Greater China region. Taiwan has a stable political climate and welcomes the positive impacts of the Economic Cooperation Framework Agreement (ECFA).

Investors have also been increasing their investments on major infrastructure projects (such as Taoyuan Aerotropolis) in recent years and anticipate the promotion of the free trade area establishment, while the administration has proposed policies to encourage Taiwanese businessmen in China to bring more investment back to their home country.

According to Cushman & Wakefield’s latest research report, Office MarketBeat, the Taipei office leasing market has picked up and been quite stable through the first quarter of 2013, after a year of economic challenges and soft growth last year.

The demand for office space has been improving in the beginning of 2013.  New lease activity and absorption have been modest due to many occupiers opting to renew their space. But small to medium-sized multinational occupiers are keen to reduce costs and this has spurred some relocations, notably to some non-CBD locations. As a result, there has been moderate growth in Grade A rents in non-core areas.

                                                                                            

Jack Lin, Managing Director of Cushman & Wakefield Taiwan said, “As several new projects will be completed in the second half of 2013, and some multinational occupiers are relocating to non-CBD locations, it could put some small pressure on vacancy in CBD, causing rents to drop slightly. However, the overall office leasing market in Taipei is stable.”

Looking forward, the global economy will brighten with improved growth, therefore enhancing global trading in Taiwan, especially with China.