A few tips to manage your EMI efficiently

First thing to come in one’s mind when he or she aspires to buy a home through loan is how much the EMI would be? EMI aka Equated Monthly Installment, is an oft-repeated word by banks or lending institutions, whether it is for home loan or vehicle loan.

Simply put, EMI is an amount to be paid back to the lender on every month against the loan taken for purchasing a property or any other movable or fixed assets. This amount basically contains two parts – principal and interest, which is charged as per the agreed interest rate against the loan amount. This varies every month as the loan amount keeps decreasing months after months.

One should understand one’s pay back ability, age, cash in hand to decide the loan amount. There are other factors one should bear in mind. If a person is purchasing a home away from the city limits due to financial or other constraints, he wouldn’t get any concession as for an interest rate is concerned. He will have to pay back with the same interest, whether he buys a property within the city limit or outskirts.

So, since his chance of living in his new house is not so bright due to various factors like proximity to office, schools and market places, etc., he may think of giving the house on rent. He should calculate the possible rentals prevalent in the area and can adjust his loan amount according to that calculation.

Now, coming back to the EMI part, it is always not possible to buy a home when the interest rate is at its nadir. If a person wants to buy a home, he can see only location and budget, which are under his control. 

Interest rate fluctuates according to economic development and individuals have no say in it. So, once the project is fixed and all other elementary calculations done, one should approach bank with necessary documents.

Now-a-days, all banks advertise the prevalent interest rate in their website and provide EMI calculator to find the exact amount he has to pay for an amount one takes as loan.

One has to simply fill vital details such as amount to be financed, tenure, interest rate and floating or fixed rate of interest to get the approximate amount of EMI one has to pay to the lender month after month.

One should not assume that Equated Monthly Installment means both principal and interest amount will be in equal proportion. Though it becomes equal after certain number of years (only for a month or so, that too approximately equal), initially the principal part will be very less and interest part will be more. 

Since interest is calculated on the basis of diminishing loan amount, its part gets reduced and to balance the EMI, the principal part would go up automatically. So, at the end of the term, the principal part will be very high and interest part will be too low.

During the tenure, it can be 10, 15, 20 or 25 years, if the rate of interest goes down, borrowers have the option to readjust their EMI and tenure to reduce their burden.

High rentals force mall tenants to move to tier-II & III cities

More and more tenants in big city malls are moving to smaller cities, which promise better returns! Under pressure of high rentals and low footfalls, one-third of retail tenants at the shopping malls in the large cities like Mumbai, Delhi, Chennai, Bangalore, Kolkata are shifting in tier-II & III cities like Nagpur, Jaipur, Pune, Indore, Lucknow, Ludhiana and Chandigarh among other such cities, reveals an ASSOCHAM trend survey.

As per the ASSOCHAM estimates, roughly 300-350 malls came up in the country over the last two years but 75-80% of the spaces in these malls lie vacant. Around the same time, as many as 95 malls have shut shop, according to the ASSOCHAM latest paper on “Shopping malls increasingly loosing shine in big cities” reveals today.

Other such cities where the mall-based retailers are moving include are Goa, Kochi, Vijayawada, Visakha¬patnam, Mysore, Coimbatore, Trivandrum, Guwahati, Ahmedabad and Surat and they still hold more potential for growth, adds the ASSOCHAM paper.

In tier II and tier III cities, there is greater scope for growth.  Also, larger chunks of land are available in these cities compared to metros, and at lower cost, said Kapoor.

The shopping trends in metro cities have influenced the consumer behaviour in tier- II and tier-III cities that are now witnessing a major shift from conventional trader-run standalone shops to larger format retail malls.

The trend can be attributed to factors like the dynamic change in the shopping trend, average spending power of the socio-economic classes in the tier-II to tier-VI cities, demand of various products under one roof, increase in brand consciousness are a few factors that multi-brand discount franchising stores drives on, adds the ASSOCHAM paper.

The overall business is seeing a growth and Tier- II and Tier-III markets have a good scope of growth. The retail growth of about 15 per cent per year is expected through 2015 thanks to the increasing prosperity in the neighbouring rural areas, said Kapoor.

Seeing the current scenario in the metros, competition has intensified, rentals have soared and operational costs have touched the roof, which has affected the overall profitability of retailers in these cities.

“High cost of operation, economic slowdown and wearing down of the novelty values have all combined to reduce the number of foot falls in the malls in big cities. One of the main reasons for the high rentals in the big city malls is the exorbitant land prices and high development costs… Thus, in the foreseeable future, making such malls profitable ventures will remain a challenge…” said Kapoor.

The major three core benefits for the retailer-tenants to move to smaller cities are lower operational costs and comparatively lesser competition and the novelty values still left in these areas where even the nearby rural population is thronging the air-conditioned halls and getting the taste of comfortable shopping, adds Rana Kapoor, President ASSOCHAM. 

Mantri launches ‘Mantri Alphune’ at Bangalore’s posh Banashankari

Bangalore: Mantri Developers has introduced a new residential project ‘Mantri

Alpyne’ at the posh locality of Banashankari in Bangalore.

Close proximity to the planned development of BMICAPA hub, the project is scenic yet well connected to the city’s business districts, educational institutions and shopping areas.

A cross pattern plan having eight units per floor is proposed with a central circulation corridor and core. This arrangement ensures good light and ventilation to all apartments in a block.

The 2.5 and 3 bedroom apartments have been positioned for the best views into the neighbourhood. The core has visual and spatial connectivity to the exterior allowing for natural ventilation and a dynamic play of natural light during the day. Mantri Alpyne is a blend of luxury and comfort.

Mantri has always been at the top of the table in providing its customers with luxury and comfort. Mantri Alpyne includes amenities like swimming pool, toddler’s pool, a widespread outdoor play field, open amphitheatre, outdoor party area, children’s play area, basketball post , a pick up and drop off point and much more.

The landscape includes an arrival plaza, beautifully landscaped gardens, with water bodies, beach edge wading pool with sand bed, mini forest.

Mantri Developers

Established in 1999 by Sushil Mantri, Mantri Developers has been the pioneering force behind the rapidly changing skyline of south India, with developments that span the residential, retail, commercial, education and hospitality sectors.

As part of its diversified portfolio that is cumulatively spread over 20 million sq. ft. including 11 million sq.ft under various stages of construction in residential, retail,

office, hospitality, and townships in the high-growth urban centres. Under residential segment, Mantri Developers offers villas, row houses, super luxury apartments, luxury apartments and semi-luxury Apartments.

In the realm of retail, Mantri Developers has created one of south India’s most prominent and one of the largest malls in the country,Besides, being a customer-centric company, with its phenomenal performance, it is no surprise that Mantri Developers has garnered many prestigious accolades, including the Top Ten Builders of India Award and the CII-ITC Sustainability Award 2012.

Make it simple: Choose your property online

These days anything and everything can be bought by a click of a button. To buy eatables, gift items, electrical and electronic items, furniture, home décor items, garments and the list goes endless, it is just simple, search for a store nearby and order it and the item will be on your doorstep soon.

Though the joy of personal selection will be missing in such purchases, people are increasingly opting for online mode to buy items of their choice due to lack of time and other factors.

All through the years, purchasing of properties has been done through traditional ways - through agents, word of mouth or advertisements and with mushrooming of property websites offering host of services, the process of buying a home or renting a house has become pretty simple.

There are however, risks involved in buying a property through online websites such as lack of personal inspection and buying at rates more than the actual value, etc. But still people use websites overwhelmingly to short-list property, either for buying/selling or rental.

“Today people begin their preliminary property search through online. Since cities like Chennai, Mumbai, Bangalore, Pune and Delhi are having very high penetration of internet, this is working well for prospective home buyers to select their dream home at any point in time. Many property portals operating today are providing information about newly constructed, under construction projects and resale properties,” says Kishor Pate, CMD of Amit Enterprises Housing.

With hundreds of property portals offering hosts of services, one would wonder how to select the right website which provides authentic information about the required details?

Almost all websites provide user-generated information about properties across India and paid details of properties on sale or rent posted by consultants. So, authentication becomes difficult. No website would guarantee on the information provided on their websites. Buyers have to spend time to visit the property personally and verify the vital information.

‘Relying solely on property portals is not advisable. The information they provide can be incomplete and sometimes even misleading,” says Kishor.

For instance, home seekers scanning the Internet are generally look for the cost advantage of investing in an under-construction project. Naturally, the primary search would be based on the price. However, Internet searches based solely on city, location and price can generate skewed or insufficient results.

“Aspiring property buyers should understand that while buying a flat in an under-construction project by a well-funded and reputed developer is safe, an incomplete project by fairly new or unknown builder would not give such assurance. Also, it is generally believed that well-known developer’s reputation gives a sort of assurance as for as quality of fittings and construction as a whole. But this is not always true. There may be instances that even reputed builders’ projects had met with rough weathers affecting the aspirations of scores of homebuyers,” says Vinoth Mishra, Managing Director of Big City developers, a Chennai-based construction company.

Choosing homes through online websites has become an order of the day. But, one has to check the details provided before signing on the dotted lines. Checking the area, builder’s reputation and facilities and amenities mentioned should become the priority during the initial states of home buying. As the next step, the buyers should get the copies of vital papers such as parent documents, sale deed, patta, chitta, adangal, encumbrance certificate etc., which should be thoroughly checked through a competent and dependable legal authority. 

Once all the documents are cleared by the lawyer concerned, the buyer should make arrangement to buy the property by asking the seller to prepare the documents for registration of the property.

If the buyer wants to go for a bank loan, he should enter into an agreement of purchase with seller and provide the same as a proof along with other necessary documents.

So, property websites can be at most taken for reference, pinpoint the area of interest, check the area and facilities available, builders’ reputation, getting feedback from buyers about the builders etc.

South Indian real estate firms make profit despite downturn

Despite continued worsening scenario of the real estate market across India, affordable prices and end-user driven market made the real estate market in South India the most sought after for the middle-income group for the last two years, according to a report.

Referring to the Southern India real estate market as the most stable when compared to other regions, a Knight Frank report suggested that the sales volume of several southern Indian builders remained buoyant for all the quarters since 2012.

For the current quarter it booked sales to the tune of 3.92 mn.sq.ft as against 3.76 mn.sq.ft in Q3FY13, thereby registering a growth of 4%, it said.

The South India-based real estate companies, which primarily cater to Bengaluru, Chennai, Hyderabad and Kochi real estate markets, offer the only respite in the current tepid environment. Aggregate revenues for the south India, firms exhibited positive growth on a Y-o-Y basis in each of the past eight quarters. Affordable prices consistently lured end-users to this region, sales booked brought in the much-needed funds to fuel the construction activity. An increase in sales volume along with increase in revenue implies growth in construction activity.

This can be concluded by change in prices in this region, which grew by 10% in Chennai and 17% in Bengaluru during the past eight quarters.

However, unlike sales volume the region could not decouple itself from the rise in input cost. In the last eight quarters, operating profit for the first time has reported a decline in Q3FY14. It has fallen marginally by 5% to Rs 4.75 bn. as against Rs 4.98 bn. in Q3FY13. Moreover, stable prices and increase in input cost adversely impacted operating profit margins. OPM has declined in each of the last six quarters and now stabilised between 30-33%.

Although South India based realty companies reported a bit dismal performance on the operating levels, it has been successful in sustaining its net profit as well as net profit margins. Net profits have never reported a decline in each of the previous eight quarters. In the current quarter net profits grew by 25% on a Y-o-Y basis to `1.76 bn. A relatively less leveraged balance sheet worked in favour of this region's real estate companies. This consequently had a positive impact on the net profit margins too, which has now

stablised at 12-14% level.

Compared to North and West India, real estate companies in south, particularly in Chennai and Bengaluru, have been successful in sustaining their net profit as well as net pro it margins. A relatively less leveraged balance sheet worked in favour southern region's realty companies. This consequently had a positive impact on the net profit margins too.

Mantri bags three Vishwakarma Awards

Bangalore: Mantri Developers, a leading real estate developer, has bagged three awards at the 6th CIDC Vishwakarma Awards 2014 including the prestigious Achievement Award for Industry Doyen for the company’s chairman and Managing Director Sushil Mantri.

The award was given to him in recognition of his exemplary contribution to the real estate industry.

Adding to the list of coveted was the 'CIDC Vishwakarma Achievement Award for Best Professionally Managed Company' for the induction of professionalism in all manifestations in the operation of the company. 

Yet another significant award was ‘Achievement Award for Construction Health, Safety & Environment for Mantri DSK Pinnacle project’ in recognition to company's respect for human life and well-being as reflected in its Health, Safety & Environment practices.

The CIDC Vishwakarma awards are inspired by the spirit of construction and creation patronized by Lord Vishwakarma the ruling deity of the Construction practices in India. Each year, this event is hosted by CIDC, the apex body that’s dedicated to work relentlessly towards promoting best practices within the Indian Construction Industry.

Speaking on the occasion Sushil Mantri, Chairman and Managing Director of Mantri Developers Pvt. Ltd. said, “It is a great honour to receive this recognition at such an eminent platform known for its credibility. We, as an organization, have always endeavoured to introduce pioneering and innovative concepts in our projects, bring in best practices at work and create benchmarks.”

At the Annual CIDC Vishwakarma Awards, the work and achievements of individuals and organizations are recognized and applauded. The awards are an embodiment of encouraging truly successful efforts from individuals and organizations that have made a mark on the present Indian Construction Industry in terms of delivering better outputs, processes and creating higher benchmarks for construction industry to help in nation building.

Recognition from CIDC provides the impetus to raise quality levels across the industry. This helps to secure wider appreciation of the interests of construction business by the government, industry and peer groups in society.

L and T bags $600 million road project in Qatar

The transportation infrastructure business of India's Larsen & Toubro Construction (L&T) has secured a major order worth $600 million to build a major highway in Qatar.

The contract, which has been awarded by the Gulf state's Public Works Authority, also know as Ashghal,  covers for design and construction of the Al Wakrah Bypass Road.

The scope of work involves construction of an 11km road consisting of 10 lanes and four future lane sections with additional collectors/distributor roads, frontage roads and ramps.

L&T said in a statement that the freeway will provide access to existing and planned developments via five interchanges comprising of 20 bridges, 13 bicycle overpasses, 8 vehicular underpasses, 3 pedestrian bridges and tunnels.

The company added that the project is scheduled to be completed in 32 months.

Al Wakrah Bypass is a major South-North freeway connecting the existing Al Wakrah-Mesaieed Road. This new freeway will be a continuation of an existing major urban North-South high speed corridor of Doha Expressway.

Commenting on the order, SN Subrahmanyan, senior executive vice president (Infrastructure & Construction) said: “We are delighted to have bagged this prestigious order. This is the company’s single largest road order in the international market and is an important turning point in our plans of growing the company’s business in the Middle East region."

NRIs Guide to sell Property in India

The return on real estate investment (ROI) has not been yielding desired results in many frontline cities in India for the last few years, and investors, particularly living out of India, who have bought or inherited properties in their home towns or other prospective cities, are losing sleep and are treading ways to find alternate investment options.

The first one, which comes to their mind, is how to sell their property in the sluggish Indian real estate market? With reliability factor at its lowest ebb in the realty domain and in the absence of dependable persons in India, these people have no option but to come down to India or relay on prominent real estate consultancy firms to sell their properties in India by paying hefty premiums as service charges or brokerage.

There have been reports that NRIs from North America and Europe are increasingly selling their properties in India for fear of depreciation in their ROI.

It makes perfect sense to dispose of one’s property if he or she is not able to manage the same. In India, there is also one fear that haunts many – that is the chance of forceful occupancy by local goons once they come to know that the owner is staying elsewhere and there is no local guardian to look after the property.

This is especially true if the NRIs in question do not visit India frequently and are not interested to rent out their properties either. They don’t prefer to burden their near and dear ones with the task of paying maintenance, property tax or society dues but find it fit to get back the capital value of their properties, according to Om Ahuja, CEO of Residential Services, Jones Lang LaSalle India.

There are a lot of procedures and rules involved in selling NRI properties in India. If one follows these rules strictly, one can make the deal as smooth as possible and can also remit back the funds to their country of citizenship.

Capital gain tax

There are long and short-term capital gains that they should take care of. Like resident Indians, NRIs who sell their purchased property after three years from the date of purchase, too will have to pay long-term capital gains tax of 20 per cent. The exact amount can be found out easily as many sites provide such information or any reputed tax consultant will give them the exact amount.

For inherited property, the cost and date of purchase as well as period of holding are taken into consideration. NRI can avoid paying this tax if he invests the taxable amount back on some other property in India.

If an NRI sells the property before three years since the date of purchase, he has to pay short-term capital gains tax, which is the difference between the sale value and the cost of purchase that comes to 30 per cent.

Repatriation

NRIs and PIOs are generally permitted to take back their sale proceeds of property from an Indian resident to their country of residence, subject to certain conditions. If these conditions are met, NRIs need not have to seek the permission of RBI. However, if the NRI buys a property from a seller who resides outside India, then it is mandatory for him to seek specific permission from the RBI.

However, the repatriation funds per financial year should not exceed $75,000 under the Liberalised Remittance Scheme (LRS scheme) which should be carried out through authorised dealers. Another important point to consider is the income tax liability on the amount of gain for NRIs in the country of their residence, and if both outward and inward taxes eat up their capital gain, they should better invest the amount back in their country of origin and keep quite for sometime till the market condition becomes favourable for such sale procedure.

Mantri enters senior living segment, launches Primus Eden in Bgr

Bangalore: Mantri Developers, one of the leading real estate developers in India, has recently launched its first residential project for senior citizens ‘Primus Eden’ at Kanakapura Road, Bangalore.

A state-of-the-art luxurious residential community for seniors of 55 years and above, Primus Eden would mark the entry of Mantri into senior living segment, according to a press statement.

A combination of startling luxury, best of amenities and caring services to lead enriched, enhanced and independent active senior lifestyle, Primus Eden, will have 75 fully furnished residential units spread over a vast 4.5-acre campus.

The project is designed exclusively for seniors and are available on long term lease basis.  Primus Eden offers the perfect setting for a relaxed life with all the specialised facilities in an eco-friendly environment.  The project is not just built to offer facilities but it is to offer seamless support and services for the senior residents. It captures 360-degree view of senior living needs and is aimed at development and nourishment of their mind, body and soul, the company said.

The project creates a resort-style living to ensure a revitalizing and stimulating environment.  For a hassle-free and relaxed living, the project offers a host of thoughtful conveniences like – Life Enrichment Centre, Empyrean Concierge, Home Finesse, Health First and Nutrition Nation. As part of these conveniences the residents can spend their life in peace without the hassles of daily chores such as household work, cooking, home maintenance and security.  It also features a pyramid-shaped Meditation Hall - a place of sheer serenity. Surrounded by trees, landscaped garden and water bodies, it is an ideal place for deep meditation.

Commenting on the first senior living project, Sushil Mantri, Chairman and Managing Director, Mantri Developers Private Ltd said, “We are elated to launch Primus Eden, which is the first project in the state designed exclusively to cater to the needs of senior living community. We have travelled the world extensively to understand what makes a successful retirement community and applied it to our senior living project.  Our philosophy behind this project is to provide best of amenities and services for the well-being of seniors. It is just beginning of a series of landmark projects planned this year.”

The quintessence of the project is to offer a healthy, active and enjoyable life with contemporary facilities by providing comprehensive and user-friendly homes for senior citizens. The residential units in Primus Eden are fully furnished homes with intelligent designs, built on the Push Button living concept. From fixing a faucet to getting a medical advice, everything at Primus Eden is available at a push of a button.

The Life enrichment cell will organise fun and entertainment programs, the 24X7 on- campus Medicare centre will offer facilities like tele medicine, Health record management. The Nutrition team will provide the perfect diet and the home finesse team will make sure the home is always neat and tidy. Also, the residents would benefit from five star amenities like a fully fledged restaurant, A pool side café, Specialized Gym, Spa and Massage centre, Golf putting area, Shuffleboard court, Library Pool/Billiards, Swimming Pool, Open badminton court, Mini theatre, Multipurpose Hall, Guest Rooms and also a Temple in the campus.

Security being the prime concern, the project will include highly trained professional security services with multiple level security arrangements. Other than this Primus Eden will also have state of the art amenities like Wi-Fi enabled campus, library, lounge, recreation areas, message centers and outdoor and indoor sports facilities.

Kolkata airport bags Vishwakarma Award 2014

KOLKATA: The Construction Industry Development Council (CIDC), established by the Planning Commission, has awarded the Airports Authority of India for the new integrated passenger terminal building at Kolkata airport under Category 'Best Construction Project-2014'.

The award was presented to Kolkata airport director BP Sharma in Delhi by the CIDC chairman in the presence of members of board of governors of CIDC and other guests from constructions industries and PSUs.

The Planning Commission jointly with the Indian construction industry set up CIDC to take up and promote activities for the development of the Indian Construction Industry.

""It is a matter of great satisfaction for Airports Authority of India and people of Kolkata that the new terminal at the airport has received yet anotehr award,"" said Sharma. Before this, the airport had received an International prestigious Award from Airports Council International (ACI) for "Best Improvement Airport Award in Asia Pacific Region" during, 2013.

Ajmera Mayfair Realty to spend $300 million for Bahrain project

Dubai: Indian real estate firm Ajmera Mayfair Realty will increase its current investment in Bahrain Bay Development from USD 30 million to USD 300 million, according to a report.

Real estate developers Ajmera Group and Mayfair Housing have formed the Ajmera Mayfair Realty Group and jointly invested in the purchase of a waterfront land parcel at Bahrain Bay, a Gulf Daily News report said.

The company will begin construction of a 50-storey high-rise commercial tower on the land by the end of the year. Ajmera Mayfair Realty Group representatives met Bahrain’s King Hamad during his visit to India accompanied by a business delegation that included Bahrain Bay Development deputy chief executive
Abdulla Al Doseri.

Rajnikant Ajmera and Nayan Shah, representing the new entity, said: "We have reaffirmed our interest in the Bahrain Bay project, a unique waterfront development that encouraged us to choose it as our first overseas investment destination."

Ajmera and Shah said the development's pace of progress had given them the confidence to increase their investment, said the report. Al Doseri welcomed the confidence shown by Ajmera Mayfair.

"Bahrain Bay has remained stable through the economic challenges of the last decade, inspiring public confidence and bringing in a network of strong and trusted partners and investors," he said.

Located in the North East and heart of Manama city, Bahrain Bay is currently valued at USD 2.5 billion.

How to check documents before property purchase

In all property transactions, it is essential to subject all related documents to rigorous scrutiny and verification by a qualified expert in order to ensure that the property has a clear and marketable title, says Kishor Pate, CMD, Amit Enterprises Housing Ltd.

For the purchase or lease of real estate for self-occupation as a home or commercial premises, or as an investment, various factors need to be considered beyond the price and location. 

In the case of properties in new projects by reputed developers, there is no reason to be too stressed about this. However, it can and often does become necessary while purchasing a resale property. One of the most important aspects to verify is the title of such property.

The title verification process should actually begin even before an actual check of documents. For instance, if a person or entity offers a property at a rate which is below the going market value, it is definitely a signal for caution. Owners of property with complicated or defective titles will attempt to pressurize interested parties to buy the asset at short notice by offering a very low price as enticement.

In all property transactions, it is essential to subject all related documents to rigorous scrutiny and verification by a qualified expert in order to ensure that the property has a clear and marketable title. To begin with, a prospective investor needs to establish whether the property on offer is leasehold or freehold, and whether it is fully or jointly owned. Next, the documents creating interest in the property – namely the title papers – must be reviewed.

Depending on the nature of the property or proposed transaction, these include the sale deed, lease deed, conveyance, development agreement and the documents establishing the chronological chain or ownership. The primary intention behind this search is to establish how the owner acquired the property and what kind of rights he or she has over it.

Other documents to be checked are the property card (if available), the 7/12 extract and the Index II. Further, a prospective investor needs to establish whether all the above documents are properly registered in government records, along with any encumbrances such as mortgage or pending litigation.

How A Title Search Is Conducted

An advocate issues a Title Certificate after conducting a search on the title of the property that is intended for purchase. This search will encompass the chain of sale/conveyance agreement, property card, 7/12 extract, Index II and records in the sub registrar’s office. The title certificate states that the property is unencumbered and has a clear, marketable title.

Also to be included in a thorough title search are aspects indicating ‘right of adverse possession’, which means that any person physically holding the property without dispute from the true owner can claim the right of ownership. All this considered, it is advisable to conduct a 30-year title search, or at least a 12-year search.

Public Notice

Though it is not mandatory, there are sometimes reasons for doubt about a resale property or a piece of land with a long history of ownership. In such cases, the intending purchaser or his advocate often issues public notices in newspaper. The practice is to issue two public notices – one in English and the other in the local language of the state – stating that the purchaser or his client has agreed to purchase or negotiate for the purchase of a property from a named vendor. This invites counter-claims in the form of mortgage, charge, lease, lien, easement, gift, trust, etc. against the property to be notified to the buyer or his advocate within a specified time (normally 14 days) with supporting documents.

However, it must be noted that merely giving public notice and not receiving claims from any persons will not bind those who may be real claimant if they were not aware of the public notice. In case of dispute, such public notice will support the buyer’s contention that he is a bona fide purchaser for value without notice of such claim.

JLL strengthens leadership in Delhi NCR and Chennai

MUMBAI: Leading property consultancy firm Jones Lang LaSalle (JLL ) India has announced a major realignment in the leadership team for its Delhi NCR and Chennai businesses. 

The move will further strengthen the company's position with regards to its established businesses in Delhi NCR and South India, the company said in a release.

While Badal Yagnik, who was earlier heading Chennai and Coimbatore, has assumed the role of Managing Director - Delhi NCR, Sarita Hunt, who was looking after Chennai's commercial office real estate domain, has taken up the baton from Badal Yagnik to spearhead the operations in Chennai and Coimbatore.

Based out of Gurgaon, Badal will be responsible for driving the firm's transaction businesses in this region and ensuring further growth in terms of revenue, product offerings and business scale.

During his successful tenure in Chennai and Coimbatore, Badal significantly scaled up the firm's business in this key market across multiple service lines, bringing into play his highly evolved cross-selling skills.

This background, as well as his familiarity with and excellent connections in the Delhi NCR market, equip him to significantly amplify his success record in his new assignment.

Commenting on the prevailing commercial real estate scenario in Delhi NCR, Badal says, "The demand for office real estate in NCR will pick up after the general elections, and this will drive up rental levels. 

Anticipating this, corporates are showing a lot of interest in acquiring space and renegotiating their real estate portfolios ahead of the lease tenure while the rentals are still stable."

The NCR commercial office space saw net absorption at a nine-year low in 2013. However, overall transaction volumes were higher than in 2012, indicating an increase in leasing activity in the office market. Consolidations and relocations were the major demand drivers over the past year, and
improving global business sentiments are likely to increase office space requirements for both expansion and consolidation needs going forward.

Continuing to be based out of Chennai, Sarita Hunt will be responsible for further growing JLL's business footprint as well as advancing the firm's leadership position in the city.

Sarita Hunt has already distinguished herself by substantially increasing JLL's share of business in Chennai's commercial office real estate domain. Her demonstrated abilities in client relationship management and operational expertise within the Chennai market give her a strong footing to take on this next level of leadership.

Sarita says, "I am indeed excited to take up this responsibility at an important juncture for Chennai's real estate market. With heightened competition for Grade A office space in the city's preferred micro-markets and the decrease in vacancy across the secondary business districts, Chennai will now witness a moderate increase in rentals, especially in these occupier-favoured locations. This represents a major opportunity for developers looking at new commercial real estate projects there to take advantage of the inherent demand and capitalise on the lack of supply. The average demand for office spaces in Chennai in 2014 stands at approximately 3.5 million square feet."

Subdued supply reduces mall vacancy, rentals to remain steady

While there has been a noted improvement in rental appreciation in the range of 7-9% in some of the main street locations such as Nungambakkam High Road (Chennai), Lokhandwala Andheri and Fort/Fountain (Mumbai) in the fourth quarter of this fiscal, Commercial Street (Bengaluru), Thane (Mumbai) and MG Road (Pune), Koregaon Park (Pune) have seen a q-o-q drop of rentals in the range of 3-4% due to limited demand, according to a report by Cushman & Wakefield on real estate markets in major cities covering office and retail sectors.

Due to unsteady economic situation and ensuing elections in India, the supply of new commercial space has been poor in major cities. According to the report, the Q4 2013 has recorded the mall vacancies of 14.5 per cent, compared to 15.5% in the corresponding previous quarter recording one per cent drop across top eight cities.

Chennai, Hyderabad and Kolkata were the largest contributors of commercial floor space clocking a total supply of 1.18 msf, the report said.

While Chennai witnessed a mall admeasuring 0.31 msf with Velachery becoming operational,  Hyderabad saw a mall admeasuring 0.43 msf becoming operational in Kukatpally and 0.44 msf mall opened in South Central Kolkata with dedicated zones for luxury and premium brands, the first of its kind in the city, the report said.

As for as rentals in the main street locations are concerned, moderate rental increase was recorded in the range of 2-4% in FC Road (Pune) and Kemps Corner/Breach Candy (Mumbai) micro markets.

The report also noted that while most established main streets across all cities have witnessed high demand from national and international retailers, Hyderabad showed negative trend due to uncertain political situation.

Certain emerging main streets in Bengaluru, Hyderabad and Kolkata have witnessed some traction. Apparels and food and beverages (F&B) retailers were witnessed expanding extensively in all cities. However, select main streets like Commercial Street (Bengaluru), Thane (Mumbai) and MG Road (Pune), Koregaon Park (Pune) saw a q-o-q drop of rentals in the range of 3-4% due to limited demand.

Lack of optimum sized ground floor plates in certain established main streets of Bengaluru and NCR proved to be a hindrance for many interested occupiers.

Limited supply reduces mall vacancy

Though mall rentals for most of the locations across major cities remained stable, in wake of limited availability and high enquiry levels, malls at Malleshwaram (Bengaluru) saw a quarterly uptrend of 12% while malls in Lower Parel, Ghatkopar and Thane in Mumbai had witnessed quarterly appreciation of 2-5%.

On the other hand, Mulund (Mumbai) recorded an over 15% drop in rentals due to tenants and shoppers preferring newer malls in Ghatkopar. Select locations in Pune and Chennai saw a quarterly rental correction of 4-9% due to slow transaction activity. In the wake of ongoing metro construction work and resultant traffic congestion problems, mall rentals in Western Chennai saw a dip of 4.5% q-o-q, said the report.

Commercial realty outlook for 2014

In the first quarter of 2014, nearly 1.61 msf of mall supply is expected across four cities – Pune, Bengaluru, Hyderabad and Kolkata. While two malls are expected in Bengaluru and Pune each, one mall is anticipated to become operational in Hyderabad. In Kolkata, new sections of an operational mall are expected to be open during Q1 2014

However, Chennai, Mumbai and NCR drew a flack with no mall is expected to be operational in 2014 from these cities.

Malls in most micro markets are anticipated to register a stable rental trend over the next quarter, apart from and Lower Parel in Mumbai, South Delhi in NCR and Vastrapur in Ahmedabad where rentals are expected to increase owing to churn, higher occupancies and sustained demand. Existing high vacancies in malls of Mulund (Mumbai) may lead to a rental decline in the coming quarter.

Rentals in some of the main streets in cities like Ahmedabad, Bengaluru, Chennai and NCR may witness an upward revision in the next quarter owing to healthy demand levels and limited supply, whilst they will remain stable in most of the other main streets.
 

Overall demand is expected to remain stable until the general elections expected mid-year, post which retailers will act on their expansion plans based on the new government’s policies, the report further said.

Rays Power Infra launches solar park in MP

In a bid to revolutionise the solar power sector, Rays Power Infra, the largest private solar park owner in the country, has announced the launch of solar park in Madhya Pradesh. The announcement was made at the recently held Solar Development Summit in Bhopal in which Ketan Mehta from Rays Power Infra was a key speaker.

The development of solar energy, which is a renewable and sustainable source of energy, will have long-term impact on the state's economy. Madhya Pradesh is blessed with plenty of sunshine and vast barren lands, and the establishment of a solar park will hugely benefit the State as businesses will be able to leverage world-class facilities with ready-to-move infrastructure, according to a news release.

The launch of the 50 MW Solar Park is significant, as it will contribute towards the state's power generation capacity. More importantly, the initiative will set new benchmarks in generating power in a sustainable manner.

Rays Power Infra has already popularized the concept of solar parks in Rajasthan and Andhra Pradesh by offering the lowest cost of electricity. Solar parks have become tremendously successful benefitting large industrial houses and contributing substantially to the local economy.

Commenting on the launch, Ketan Mehta, Director, Rays Power Infra Pvt Ltd said, "Rays Power Infra has harnessed solar power and made it available to large number of industrial houses in Rajasthan and Andhra Pradesh by setting up solar parks. We want to replicate the model and bring our expertise in harnessing renewable energy for commercial purposes in a sustainable manner to the state of Madhya Pradesh.”

“Madhya Pradesh government is bullish on renewable energy projects and we are excited to take up this opportunity. We are committed to the development of solar energy in the state," Mehta said

Rays Power Infra (P) Ltd is a pioneer in the development of green technology solutions that are environmental friendly, energy efficient and cost effective and are capable of delivering a quick return on investment. Started as a brainchild of IIT Roorkee professors and students, Rays Power Infra is one of the biggest and the first solar power service provider in India (on the basis of number of projects completed)

India to have more billionaires than UK, Germany by 2023

Chennai: In its recent wealth report Knight Frank has provided a unique insight into the attitude of ultra-high-net-worth individuals (UHNWIs) towards property investments and spending patterns across the globe and also given an annual analysis of wealth flow and property investment around the world.The report also said that India to experience 99% growth in the number of UHNWIs  over the next decade.
GLOBAL KEY FINDINGS

• Number of ultra-wealthy individuals across the world rose by 3% last year; and number of Ultra High Net Worth Individuals (UHNWIs) in 2023, is set to grow by nearly 30% over the next decade

• New York will overtake London as the most important city for the ultra-wealthy by 2024; three of the top five most important cities by 2024 will be in Asia
• The Wealth Report’s Prime International Residential Index (PIRI) confirms that Asian markets, led by Jakarta, experienced the biggest price growth in 2013, followed by Auckland, Bali, Christchurch and Dublin

• Asian Cities to see the fastest growth in the number of UHNWIs individuals in the next decade surpassing the total number in North America; USA will remain dominant in terms of number of billionaires over the next 10 years, despite growth in the east.  North America will still have approximately 30% of the world’s HNWIs in 2022, which is down from the current 34%.

• Top 5 future hotspots for investment are - Sao Paulo- Latin America; Istanbul- Middle East; Abu Dhabi- Middle East; Mumbai- Asia Pacific; Sydney- Asia Pacific Liam Bailey, Global Head Research said: “History, location and their long-established wealth mean that London and New York’s positions look unassailable, at least for now. It is further down our leader board that the real city wars are being waged. The main battleground is Asia, where a handful of locations are slugging it out in the hope of establishing a clear lead as the region’s alpha urban hub.”

INDIA KEY FINDINGS

India- a booming land for the ultra-wealthy

• India on the sixth spot in the top 10 countries for billionaires as of 2013 with 60 billionaires; expected to increase to 119 with a 98% growth by 2023

• India to experience 99% growth in the number of UHNWIs  over the next decade

• The number of centa-millionaires  in India expected to double over the next decade, witnessing a 99% growth from 383 to 761

Most Wealthy Indian Cities

• The number of UHNWIs in India is expected to double over the next 10 years, rising by 126% in Mumbai alone and around 118% in Delhi, despite recent economic concerns

• Mumbai on the 4th spot with a 10 year UHNWIs growth of 126% among all global cities which is expected to increase from 577 to 1,302 by 2023

• Delhi on the 5th spot with a 10 year UHNWIs growth of 118% among all global cities; which is expected to increase from 147% to 321% by 2023

• Mumbai retains its position as the 16th most expensive city in the luxury home sector with an average price of 95.7 per sq. m.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said: “Wealth creation in India particularly is expected to accelerate with the number of UHNWIs expected to double over the next decade. This reflects a more positive outlook for India’s economy after 2013 was marked by capital outflows and a sharp devaluation of the rupee.”

Liam Bailey, Global Head of Residential Research at Knight Frank, added: “Continued global wealth creation particularly in emerging economies, has been a key driver for prime property markets. This trend looks to continue with a forecast increase of 28% in the total number of UHNWIs around the world by 2023. The growth of UHNWIs in China and India, coupled with an eye catching 144% increase in Indonesia and a stellar 166% hike in Vietnam, will help push the total number of UHNWIs in Asia up by 43%.”

Dr. Samantak Das, Chief Economist & Director Research, Knight Frank India: “By 2023, only three countries in the world namely USA, China and Russia will have more billionaires than India. During the next decade, at 98%, growth in billionaire count in India will be much faster than either of the global (38%) or Asian (66%) benchmarks. The out-performance in growth of UHNWI count in India (99%) is even larger when compared to the global or Asian benchmark.”

How to buy a foreclosure property

K Ramanathan

 

Foreclosure, the word we heard frequently in the media a few years back in the midst of economic crisis that struck the world. Many home loan borrowers in the US in particular had declared bankruptcy for they were unable to pay EMIs due to loss of employment or reduction in salaries.

Many lenders (banks, financial institutions), who had given home loans indiscriminately on high interest rates in the upswing real estate market, had to suffer due to sudden crash in real estate prices and loss of payment means for the borrowers, who had no option but to surrender their property to the banks for foreclosure.

There became the word a most talked-about in the US and other European countries. Foreclosure is an option given by a borrower to the banks, who could take back the property using court system if the borrower failed to honour the agreement of paying back the loan as per the agreement. The bank, once get the possession of the property can sell it at the market price and pay back the difference, if any, to the defaulter. 

The greatest disadvantage for the defaulter is that his credit rating will get a beating and he will not be given loans by any financial institutions for his future needs.  However, if the amount collected through ‘auction’ of the property by the bank is much lower than the balance loan amount, then the bank has the right to ask sureties, who stood by the borrowers at the time of signing the loan agreement, to settle the balance loan amount. In case, the bank was not able to realise the loan amount fully through auction or surities, it can take possession of other immovable properties of the defaulter like jewellery or valuable items equal to the standing loan amount.

Now, if one wants to purchase a foreclosed home there are certain advantages and disadvantages. One has to take several things into consideration before deciding to buy a home on auction by banks.

The greatest advantage is low price. The banks, which are selling a property, will have their own interest to realize the outstanding due amount with interest only. The lender thus, would be ready for negotiating on the basic prices of the home under auction.  So, those who wish to buy the bank property can bargain and even seal the deal for a lesser amount than the market price.

If one chooses to sell the home later, he or she will most likely to make a good profit as the buyer would have paid less amount at the time of auction. Many in India do buy such houses at a foreclosure auction, make necessary changes or repairs and then sell it and book profit.

Secondly, since the bank is selling the property, there will not be any encumbrances against the property and the sale deeds will be clear. So, the buyers need not have to unnecessarily spend money on legal charges.  Thirdly, the buyer gets the ready-to-move in house with, may be, with little bit of repair or alternation works.

On disadvantage part, the buyer has to pay money in cash and will not have time to go for bank loan as banks selling such properties would want to realize the money at the earliest. Secondly, the previous owners, sensing that their property will go under the hammer, may do damage to their building, which can cost dearly for the buyers at a later stage. Thirdly, the buyers seldom get a chance to inspect the property with experts to understand the structural stability and other quality details.  

So, it is a big risk he takes when he buys a property from banks, whose quality he is not aware of.  On physiological part, the buyer should be aware of the fact that he gains the house at someone’s expense. Those who believe in vaastu and other structural measures prescribed by Hindu scriptures may find most of the houses do not comply with those standards

Ashiana Housing launches super luxury homes in Bhiwadi

Though, Bhiwadi is known for low and middle income housing, the next real estate boom town after Gurgaon, however, with the launch of Tree House Residences - an all luxury apartments by Ashiana it has slowly entered the map of luxury housing destination. The sample flat of first such luxury project is ready and shown to selected audience recently during Ashiana Housing’s ‘know your neighbour’ initiative.

 “Tree House Residencies” in Bhiwadi are for those who desire to live a statement-making lifestyle but cannot afford one in Delhi and Gurgaon.  The apartments are for those who believe in living with the state-of-art facilities. It is an exclusive, niche, stylish project with top-notch amenities for the modern buyer who aspires for a quality life.

The project consists of 36 extravagant apartments. To have nine levels in four towers spread in the area of one-acre land, each apartment is designed to provide a grand life style, maximum comfort and convenience.

Tree House Residencies are high-end apartments with a choice of thirty-four 4BHK apartments in the area of 3255 sq. ft. and two 5BHK apartments in the area of 3755 sq. ft. It guarantees excellence in the living archetype with a wide range of facilities like, in-house gymnasium, children’s play area, community hall and much more. They have ensured that everyday living is a pleasure at Tree House Residences with the membership of well-equipped facilities at Treehouse hotel, spa and club.

Among others, Tree House Residency customers will have an access to the club with facilities such as swimming pool, spa, food courts, gym, sports bar, restaurants, tennis court and business centre. For safety, it will have high-level security with fire sprinklers and fire hydrants.

Commenting on the launch, Vishal Gupta, managing director of Ashiana Housing Ltd, says, ‘We share a very special bond with Bhiwadi. Our every project in Bhiwadi seeks to bring about a constructive transformation in the lives of millions and build a world into the land of serene coexistence for every resident. The Tree House Residences will fill in the gap prevailing in luxury segment between Gurgaon and Bhiwadi.

Jumabhoy group launches luxury villas in Bangalore

SINGAPORE: The Jumabhoy family, once the richest Indian family doing real estate business in Singapore, is developing 61 luxury villas in Bangalore, and according to company sources more than 20 per cent of the villas have been sold even before a formal launch.

Being the first property development under the Jumabhoy family, Raffles Park, will have 61 villas spread over 15 acres in Bangalore, according to a media report.

The first phase, comprising 10 villas, was marketed in India and has been fully sold out while phase two with 15 villas, are being open to non-resident Indians and India-incorporated companies in Singapore.

 The Jumabhoy family, which was migrated from western India to Singapore in 1916, made a name for themselves in real estate, developing Scotts Shopping Centre and the Ascott.

At its peak, their listed Scotts Holdings had assets worth almost S$750 million and a presence in Southeast Asia, the UK and Australia.

But a split among family members led to a sale of its main property assets in the late nineties.

Now, members of the family's third generation - Iqbal, Asad and Mimi Somjee - are engineering a comeback through a real estate vehicle, Raffles Residency.

Raffles Park will be made available on a plot area of 4,500 square feet, with each unit is being sold for around S$1.32 million, reports channelnewsasia.com.

Iqbal Jumabhoy is upbeat about the project he has undertaken with his siblings Asad and Mimi Somjee.

He said: "Interestingly, we have not even launched it. We have had a preview in Bangalore, and on the back of that preview, we actually sold 20 per cent of the houses pretty much without a launch. And in Singapore too, we are doing very targeted meetings with people. And we are showing it for the first time here."

Commenting on what gave him and his siblings the idea to enter the Indian property market, Mr Iqbal Jumabhoy said: "To start with, we had the land. The second part of it, was therefore, what to do with it.

“The easiest thing would be to sell it or team up with another developer. But the fact that we had an existing team of people within The WIRE Group - which is another company that I formed some years ago - gave us the courage to work on this together.

“The second is that Bangalore is the IT hub of India, and the consequence of that is that you have got a large number of senior professionals who have lived or worked abroad, and they come back with expectations and needs, which perhaps (are) not easily served by the existing products."

When asked what is next after Raffles Park, Iqbal Jumabhoy said: “We are currently in discussion on a couple of other projects. One of them is an extension to the existing Raffles Park, and we are in discussions with surrounding landowners.

 

“The second is a much larger project. That project, if it comes through, is with a landowner who owns between 150 to 200 acres of land. So that would be a slightly different kind of project," he further revealed.

How Does Inflation Impact Property Market

Contrary to the general belief, real estate prices do not necessarily react to inflationary conditions,   feels Arvind Jain, Managing Director of Pride Group.

It is interesting to note that how most people think of inflation. Apparently, the most prevalent concept of inflation is something like what happens to spectators at a cricket match. At some point during the match, the people in the front rows of the stadium rise to their feet to get a better glimpse of what is happening on the field. As a result, the spectators in the back rows cannot see the action clearly so they rise up too. Very soon, everyone is on their feet!

Another perception among most people is that inflation drives up the prices of everything uniformly. That is why it is commonly believed that real estate prices rise simply because the cost rise of everything. This is incorrect. The fact is that real estate prices will either fall or remain static in an inflationary environment.

Inflation is a dynamic that is largely dictated by the cost of credit. This is how it works - the cost of essentialities such as food grains and petrol rises, while the common man's income remains the same. In other words, his spending power reduces. Banks make a note of the fact that the baseline cost of living has increased and recalibrate their loan interest rates upward.

Because the cost of borrowing has increased while incomes have remained static, people become wary of taking loans for anything - including home purchase. The natural reaction from real estate developers would be to bring property prices down so that sales pick up again. This does happen in some cities and locations, but not everywhere. Here are the reasons.

Many developers are as dependent on the cost of borrowing as their buyers are. This is especially the case with smaller developers in Tier 2 or Tier 3 cities who have not launched many projects and have therefore not been able to create a self-sustaining churn of capital. Such developers are able to react to the reduced sales brought on by inflation by lowering their rates.

Such developers are able to do this because though the overall cost of development remains more or less constant, land acquisition costs are lower in smaller cities. Price reductions are the last recourse for ailing developers, but smaller developers with lower investments into their projects and greater dependence on the cost of lending can and will offer them if they perceive this to be the only option.

If even this last course of action fails, the developer goes bankrupt and is forced to surrender all business interests to the bank, or sell them to a more established player. This is, in fact, one of the integral factors of the process of consolidation, wherein more and more smaller operators give way to larger players. 

The scenario is different for larger developers who are active in the primary cities. Having been in the real estate business longer, they have been able to achieve a degree of capitalization that reduces their dependence of debt funding. However, their investments in the land required to build projects in the larger cities are naturally higher.

Such developers are not able to bring down the pricing of their properties despite a slowing down in sales. However, they are able to weather the inflationary storm longer because of their healthier capitalization. For this reason, established developers in larger cities will not use price reductions to boost inflation-impacted sales. At the same time, they cannot raise their prices in tandem with the natural laws of property appreciation, since this would impact their competitiveness on the market.

This means that in the case of well-located quality projects by established developers, inflation will have the effect of keeping prices static until reduced inflation brings down the cost of credit. Once this happens, prices will rise again without having gone down at any point.

It goes without saying that understanding how inflation impacts short and long-term property pricing in different cities, locations and projects can make a big financial difference to prospective home buyers.