Mahindra World City near Chennai gets IGBC certification

Mahindra Lifespace Developers, the real estate and infrastructure development business of the $16.5 billion Mahindra Group, has said that its integrated city near Chennai, Mahindra World City, has become the country’s first township to be awarded with stage-I certification under IGBC Green Townships.

According to a report, the Indian Green Building Council (IGBC) is a part of the CII-Godrej Green Business Centre, which is actively involved in promoting the green building concept in India.

“This certification is a validation of our vision to promote sustainable urbanization by decongesting existing cities and offering the right balance between life, living and livelihood. It is particularly meaningful for a large integrated city covering more than 1,500 acres of land since we had to ensure that green principles were followed across, including the industrial, residential, social and infrastructure aspects at Mahindra World City, Chennai,” Sangeeta Prasad, CEO, Integrated Cities and Industrial Clusters at Mahindra Lifespace Developers, said in a statement.

“It is a proud moment for Mahindra World City, Chennai to become India’s first township with IGBC gold stage 1 certification. With key sustainability practices like water conservation, rainwater harvesting, xeriscaping, use of solar energy and waste water for landscaping, we at Mahindra World City are committed to sustainable urbanisation,” said Chandru S, COO of Mahindra World City Developers.

The township was evaluated on four environmental categories as defined by IGBC and included site selection and planning, land use planning, transportation planning and infrastructure resource management and innovation in design & technology.

The township has also been a pioneer in commissioning an off-grid solar power plant in Tamil Nadu. The 75 kw off grid solar power plant has the capacity to generate 1.16 lakh units of clean electrical energy annually, offsetting almost 60 tonnes of CO2, the statement added.

Mumbai's office space leasing to pick up in 2015: CBRE

Mumbai: Office space leasing activity in the city is not expected to move significantly before next year although the sentiment in the real estate sector is witnessing some improvement, says property consultant CBRE.

"Market sentiment in Mumbai's office space has seen a slight spurt in the April-June period compared to the last couple of quarters and is expected to fare better in Q3 of 2014," CBRE's South Asia Chairman and Managing Director, Anshuman Magazine, said in a statement.

"However, ground realities in this segment are hardly likely to change this year as far as actual investments and project funding are concerned," he said.

Although a gradual recovery is on the cards, office space leasing activity is not expected to move significantly before 2015, he said.

The micro-markets of Bandra–Kurla, Lower Parel and Andheri are likely to witness a reasonable level of corporate interest mainly due to a surplus supply situation, Magazine said.

The rentals are, however, likely to remain stable in the micro-markets and would continue to remain so over the forthcoming quarters too, he added.

According to CBRE, central business district of Nariman Point, Fort and Cuffe Parade saw sluggish transactions during the second quarter of the year.

Magazine said: "Enquires remained limited to small and medium sized office spaces in some of the prominent commercial developments. Vacancy levels increased marginally owing to shift in occupier interest towards other cost effective micro-markets, while rental values declined owing to subdued demand levels."

Office leasing activity, however, picked up in Lower Parel, mainly driven by financial services and FMCG sectors which took-up mostly small to medium format office spaces.
 

Worli and Prabhadevi also witnessed an increase in leased space during the review period, driven by pre-commitment in IT development in the previous quarters.

"Despite this increase in office space absorption, overall occupier demand remained largely subdued, leading to a rental correction of about 2–3 per cent on a quarterly basis in these markets," the property consultant said.

Though Bandra-Kurla Complex, Kurla (W) and Kalina witnessed few large sized transactions from the banking financial services and pharmaceutical industries, existing vacancy pressures in the area resulted in a rental decline of 2–3 per cent over January-March 2014.

Rentals remained stable on a quarterly basis at  Andheri, Ville Parle and Jogeshwari, however, the completionof various infrastructure projects propelled demand for office space, CBRE said.

"Going forward, demand for corporate office space is likely to be concentrated in the city's secondary and peripheral markets, owing to the abundant availability of cost-effective Grade A options. Additionally, the completion of key infrastructure projects may help improve demand in certain micro-markets in the medium term," Magazine said.

Along with financial institutions and pharmaceutical firms, engineering companies are also likely to lead office space demand in the forthcoming quarters, he said.

More traction is expected from corporate occupiers in the back-office market of Powai and Goregaon to the peripheral locations of Navi Mumbai and Thane in the coming quarters, the release said.

How To Choose The Best Integrated Township

Indian real estate is now at a stage of evolution wherein integrated townships are no longer just an option - they are a dire necessity. With a number of India's large developers now developing these futuristic mini-cities, townships are rapidly becoming the most significant model of property development in the foreseeable future, says Arvind Jain, Managing Director - Pride Group.

With urban living rapidly giving way to extreme turmoil and lack of civic amenities, it is definitely high time for the proliferation stage of townships in India. Indian metros invariably 'explode' from the centre outwards, with the inner locations becoming the focal points of heat and pressure. Therefore, urbanization also happens with the city centre consistently receiving - and maintaining - the highest saturation of population.

Developable land in these places becomes increasingly expensive and soon unavailable. This leads to developers active in these areas to build up every square inch of their plots and selling their units there at exorbitant prices. In this kind of environment, opens spaces, infrastructure and overall accessibility are rapidly eroded by buildings. Also, these areas are increasingly plagued by extreme traffic congestion, shortage of parking and very high pollution.

Conversely, integrated townships offer their residents complete supporting infrastructure. They are no developed with the objective of maximum development potential but maximum liveability potential, and this means that they also provide green and open spaces.

In fact, the difference between the liveability quotients of integrated townships versus traditionally developed residential areas in a city are considerable - while the former enjoy clean air, green open spaces, regulated traffic, constant water and power supply and quick access to shopping, healthcare and entertainment, the latter tend to be defined by high pollution levels, a 'concrete jungle' ethos, bumper-to-bumper traffic, crippling commuting times and frequent power and water cuts.

There is no doubt that integrated townships are fast becoming the only viable long-term residential choice for metropolitan living. With this emerging as a clear fact, city dwellers that are looking to upgrade to the township life are on the rapid increase.

The following are some basic tips for choosing the right kind of township:

Check whether the developer has obtained all the requisite municipal and environmental clearances. There are a number of approvals and clearances that the developer must obtain before his township project is legally sacrosanct and future-viable. Ensuring that all of these are indeed in place is very important to safeguard your investment as well as the future comfort of your family.
 

Check the developer's track record for completing his larger projects on time. Most developers of townships also have smaller projects to their credit, but smaller residential projects also take less time and capitalization to develop. Large integrated townships are developed in phases and take much longer to reach final completion, so the developer should show sufficient evidence of healthy capitalization and a flawless record for handing over possession to customers.
 

Check whether the developer has included a sufficient saturation of commercial buildings in the plan. The generous availability of office spaces within the township has a two-fold benefit - firstly, it will mean a potential walk-to-work option in the future. Secondly, the investment value of residential properties increases with proximity to job-generating commercial establishments.
 

Check on what kind of developments will come in to take care of your shopping, entertainment and healthcare needs. Likewise, there should be good schools planned within the township. Do not be satisfied with the mere proximity of such establishments outside the township - they should be included within the township itself.

By Arvind Jain, Managing Director - Pride Group

Tata Housing Expands its Presence in NCR Luxury Space

Tata Housing Development Company, India's fastest growing real estate developer in the luxury space strengthened its presence in the high-end luxury segment in NCR by launching its 4th project Arabella. Strategically located immediately off the Sohna Haryana Highway, Arabella is inspired by the Aravallis and has been aesthetically designed as an extension to the lush green surroundings.

Designed by renowned architects Perkins Eastman, USA., Arabella is built across approximately 35 Acres and offers 3, 4 and 5 BHK villas right in the heart of Gurgaon - Sohna Road. Designed with the theme of Aravalli ridge and view of the ridges, Arabella is a Villa development with around 150 villas of typologies. The location and orientation of villas on the site integrates with the central open green spaces via the backyard or is inward looking; adapted to the traditional design of courtyards. The private lifts, outdoor pools, roof top landscaped entertainment areas, solar hot water heating, VRV air-conditioning, form a part of the everyday lifestyle of India's aspirational Urban Elites.

Commenting on the launch of this project, Tata Housing spokesperson said: "The last decade has witnessed a substantial increase in demand for super-luxury residences which have expansive living spaces and extremely sophisticated design and specifications by the new class of wealthy consumers, popularly known as Urban Elites, who have formed an egalitarian social change. With Arabella, Tata Housing is giving a golden opportunity to their consumers to own their dream villas and experience the mesmerizing views of Aravalli Hills.

Tata Housing Spokesperson further adde:  "This will be a one of a kind development at Sohna road offering a different proposition for the new age luxury seekers."

As the project is inspired by Aravallis, every little detail has been given utmost importance. The project also accommodates a natural lake, a rock garden and a neighbourhood farm, which helps the residents make a direct connection with the natural surroundings.

The development is located immediately off the Sohna Haryana Highway and is well nestled between lush greens farmlands on 3 sides and a dense green buffer planned along the entire highway. The site has beautiful distant panoramic views of the Aravallis and the masterplan has been sensitively designed as an extension to the lush green surroundings of this unique geographical setting.

Post Budget: Affordable housing gets fillip in Chennai

The recent announcements in the budget by the Finance Minister have been very positive for the housing sector. The residential real estate segment has been passing through challenging times over the last year, with sales velocity slowing down and unsold inventory rising every quarter. Buyer sentiment had been largely negative, with untold numbers prospective buyers abstaining from investment into ownership homes because of the slow economy, job insecurity and rising inflation, Sanjay Chugh, Head - Residential Services (Chennai) JLL India.

Post Budget 2014, there has been a perceptible improvement in positive sentiment in price-sensitive Chennai and most other Southern cities. Increasing the taxable limit from Rs. 2 lakh to Rs.2.5 lakhs, enhancing the benefits in Section 80C from Rs. 1 lakh to Rs. 1.5 lakhs and raising the exemption limit on interest payments on housing loans from Rs. 1.5 to Rs. 2 lakhs per annum will eventually leave more money in the hands of the tax payers.

While the resultant savings may not be very significant for extremely costly cities like Mumbai and Delhi, they do make a difference in Chennai. This city’s residential market is and will continue to be an end-user driven one, which means that speculator activity is very low.

As a result, residential property prices in Chennai do not fluctuate and the market is not volatile, unlike in cities where investors and speculators influence the pricing mechanism. This fact has consistently worked in favour of the pricing for homes in most of Chennai’s micro-markets, keeping rates within affordable limits. In such a city, even marginal increases in surplus income can and does tip the scales in favour of purchase decisions. 

In 2012-’13 and into 2014, residential property prices in Chennai have certainly shown a year-on-year increase. However the rate of appreciation differs according to location and market segments. This is an important factor for property pricing, because Chennai offers options across the luxury, premium and affordable categories in and around the growing suburban corridors of OMR, ECR, GST and Poonamallee.

To address the demand from majority of the first-time home buyers looking to buy homes out of their saving, limited exposure to debt and EMIs, developers have ventured out of the city and created new residential areas in the periphery and suburban areas of Chennai. These areas include Perumbakkam, Medavakkam, Kovillambakkam, Vannagaram, Mangadu, Kundratur, Ambattur, Avadi, Chembrambakkam and Oragadam, etc.

It is especially in these locations that we will now see significantly enhanced demand after the favourable Budget 2014 announcements. Residential supply will also improve noticeably to cater to this demand. By relaxing the minimum area prescribed for getting FDI from 50,000 sq. metres to 20,000 sq. metres and the minimum capitalisation from $10 million to $5 million, the budget has ensured that mid-sized developers have access to funding and FDI participation.

Also, projects committing at least 30% of their total project costs for affordable housing will now be exempted from minimum built-up area and capitalisation requirements. These provisions will further accelerate the supply of affordable housing segment in Chennai.

Chakan, the affordable housing hub in Pune

There are good reasons why Chakan in Pune’s PCMC region has evolved into the thriving hub it is today. To begin with, this area enjoys superlative locational advantages, being in the middle of Maharashtra’s Golden Triangle and well-connected to Pune, Nasik and Mumbai. The growth of the IT, manufacturing, automobile and services industries in this region have all made Chakan one of the most vibrant locations on Pune’s real estate map over the last decade, says Sachin Agarwal, CMD – Maple Shelters.

Chakan is situated about 32 kilometers from Pune along the Pune-Nasik Highway. It is also in close proximity to the Pune-Ahmednagar-Aurangabad Highway and Pune-Mumbai Highway. The rapid industrialization here has led to vastly increased commercial activity, which has in turn resulted in massive demand for residential properties – particularly affordable homes – to house the proliferating workforce from its several existing and new industries across the length and breadth of Chakan.

With the highest demand is for affordable homes priced between Rs. 10-20 lakh, 1 BHK units are the fastest movers in this market. Despite their low budgets, home buyers in this market require and expect the benefits of modern amenities, provisions for recreation as well as medical facilities. Projects like Aapla Ghar are now addressing this specific demand for modern, well-appointed affordable homes in Chakan, just half a kilometer away from Chakan Chowk and with banks, markets, schools, colleges and hospitals within a 1-kilometer radius.

In the future, Chakan is going to assume increasing importance both as a real estate destination and an economic powerhouse. This area has been promoted to the status of Special Economic Zone by the Maharashtra Industrial Development Corporation (MIDC) and is one of India’s major automobile hubs. In fact, Chakan has production plants and manufacturing units for several national and international automobile brands, including Bajaj Auto, Mahindra & Mahindra, Daimler-Benz, Volkswagen Group and Mercedes-Benz.

Royal Philips Industry, one of the premier facilities for the manufacture of diagnostic X-Ray systems and other interventional imaging solutions, has been operational in Chakan since 2012 and creates several thousands of jobs each year. This area also houses a big production plant for Leoni, a German manufacturer of cables and cable system.

Forbes Marshall, a global boiler manufacturing company too had started out in India with its facility in Chakan. The total investment in this project so far has been Rs. 250 crore, and it generates a huge number of jobs each year. Similar investments have been made by Atlas Copco, Tetra Pak, IndoSpace, Mahindra Intertrade ARaymond Network, LMT Indi, L'Oreal, Bosch, MINDA, Pasco Ltd., Marriot International, Steelcase Furniture, Hyundai Construction Equipment India, Sany Group, Everstone Capital, Matheson K-Air India and many other leading industrial groups.

Because of the key role it plays in Pune’s economic growth, the city’s new airport is also being established near Chakan. This is going to intensify the investment and growth of the city, and the demand for homes there will eventually spread across all budget segments. However, affordable housing is and will remain the key requirement in this region, which depends heavily on lower-income workforces. Chakan will continue to generate jobs for such employees for several decades to come, and this will translate into sustained demand for affordable homes in this region.

Suchirindia Infratech forays into hospitality sector abroad

Hyderabad: Suchirindia Infratech (P) Limited, the Hyderabad-based real estate giant, has taken a great leap in the hospitality sector for offering their guests homely comfort away from home.

Suchirindia Infratech is a growing group which has been serving the domestic hospitality sector with large reputation for the last few years has now taken a giant leap towards making hotels abroad as a part of their global expansion plan. This is besides their colorful presence in the real estate sector, construction and infrastructure building for Indian Railways and luxurious resorts inland.

Under the leadership of their CEO and Managing Director Lion Dr. Y. Kiron the group has been able to build a coveted business empire with their one after another success stories. Dr. Kiron who has obtained Ph.D in urban planning and tourism development from US and MBA from Russia also has PG diplomas in Public Relations and computer science and has been appointed as the Honorary Consulate of the Republic of Bulgaria in Hyderabad is a philanthropic personality with many national awards to his laurel.

A spokesman of the company said, “We have started the Papyrus Port resort, conceived on Egyptian theme, Close to International Airport on Bangalore highway for the corporate and other business travelers to enjoy luxury and elegance. Our Honey Berg resort in the Genome valley near Shameerpet overlooking the Deccan Plateau provides the guests luxury and tranquility.”

The group is innovative in thought and professional in deeds and has developed a corporate culture with social commitment. They have developed several Real Estates, built a township for the aluminium giant Hindalco in Singrauli, Madhya Pradesh and also engaged in many Indian Railways projects like constructing railway bridges. They have a team of vast experienced professionals who are always ready to deliver new concepts in business.

“We are launching the 4 star Business Hotel near Katunayake International Airport Colombo as the first step to expand our International Hospitality services to serve the international guests with customized care in a luxurious environment of elegance” added another spokesman of the company. One must immediately plan to spend the weekend at their resort to have a new experience of leisure with fun and frolic.

Realty players coming up with key suggestions for smart cities

Singapore: The Indian real estate players are helping with their suggestions in framing policies for 100
smart cities in the country proposed by the new government.

"Smart cities are on table...it will take up some more time to formation. But still it poured a lot of positive
sentiments in the real estate sector. At this time, we are trying to contribute in framing the policy by sending
suggestions to the Prime Minister's Office," Abhay Kele, chairman & managing director, Prithvi Edifice, Pune, told PTI.

Architects and designers have stressed on the importance of innovation in building world-class cities and facilities in the country.

"The real estate market has traditionally been an un-organised and fragmented one. But, we have witnessed the influx of international technologies and materials in the building industries in cities like Bangalore, Delhi and Mumbai," said Srinivas Ammanabrolu, vice president, Living Walls, Bangalore.

Ammanabrolu cited the use of modular form work, Austrian technology for bricks, gypsum plaster that are being used commonly these days than five years ago.

Building designs and architectural finishes in the Indian real estate projects have been improving in recent years, said the executives.

They noted a significant change in the usually lacklustre but profit-oriented real estate sector, pointing out that
developers are hiring international designer architects and planning new things.

While the industry is waiting for more details on the plan for smart cities, the executives have stressed on the
importance of technology in the development of facilities.

"It is important to use technology and adapt to difficult situations," said Vvikas Aroraa, director of marketing and sales, Runwal Group.

He cited the challenges in redevelopment in crowded south Mumbai and called for innovative ways for project implementations.

However, most of the developers are still set on older practices while architects continue to press for a big change in project implementations, given the massive housing development and urban re-development required in the country.

FENDI villas go on sale at AKOYA by DAMAC

FENDI villa

 

New Delhi: DAMAC Properties has launched sales of the world's first FENDI-styled villas. The 34 properties are located in a private-gated community in the 42 million sq ft AKOYA by DAMAC master development off Umm Suqeim Road in Dubai.

Each unit comes with interior designs and decor from the FENDI Casa range and offers a unique and stylish interpretation of the iconic Italian fashion brand, all of which is uniquely designed by FENDI’s specialist interior designers, to offer a contemporary home for the most prestigious living experience.

The villas, which come with a starting price of AED 36,000,000 and will be ready in Q1 2017, have a prime location overlooking the Trump International Golf Club, Dubai. The villas vary in size from 7,900 sq ft to 16,767 sq ft.
“These exclusive, limited edition, FENDI villas are being designed with only the most stylish and demanding clientele in mind. The creativity and elegance brought to life in the world’s first FENDI villas take pride of place in one of the most desirable locations in AKOYA by DAMAC.

Given the limited number of villas available, combined with the response we have already seen since announcing this project, we expect these one-off, select designs to be very well received,”
said Ziad El Chaar, Managing Director, DAMAC Properties.

FENDI Casa translates the FENDI savoir faire and creativity, as well as its distinctive materials, into elegant objects and cinematic ambiances that are timeless and exceptionally made. Fur is used for the sofas, cushions, carpets; leather on a couch is treated with the same flair as Selleria handmade and numbered bag; marbles, stones, woods are mixed in inventively precious ways. In pure FENDI style, pieces and details are so carefully streamlined. They become instantly iconic, from the Crystal chair to the spectacular Urano bed.

DAMAC Properties has a long-established collaboration with FENDI. The two companies are also collaborating on projects in the Kingdom of Saudi Arabia and Dubai Marina in the UAE.

DAMAC Esclusiva Luxury Serviced Apartments, housed within a 150 metre high tower overlooking the Kingdom Tower in Riyadh, will provide refined luxurious interiors by the Italian fashion house for more than 100 luxury serviced hotel apartments.

The two companies are also partnering on the interiors for private apartments, on the top 40-storeys of DAMAC Heights, which looks out over the Palm Jumeirah.

Established in 2002, DAMAC has delivered almost 10,000 units to date and currently has a development portfolio of over 25,000 units at various stages of progress and planning as of March 31st 2014.

About DAMAC Properties

For over a decade, the real estate portfolio of DAMAC Properties has been at the forefront of the Middle East’s luxury real estate market. With an enduring passion for design and quality, the company has built a reputation for creating some of the most iconic and desirable properties in the UAE, Qatar, Saudi Arabia, Iraq, Jordan and Lebanon.

Established in 2002, DAMAC has delivered almost 10,000 units to date and currently has a development portfolio of over 25,000 units at various stages of progress and planning as of March 31st 2014.

Pink city all set to become an abode for senior citizens

Ashiana Housing launches second retirement home project in Rajasthan

Jaipur has emerged as one of the best post-retirement locations to live. The increasing facilities, well connectivity, healthy environmental conditions and affordable living cost index are making this city the best suitable place to spend retired life.

Sensing the huge opportunity in this sector many real estate developers are foraying into this city offering retirement homes with state of the art facilities. Ashiana Housing Limited, the leader in this space, has recently announced the launch of Care Homes in Jaipur.

Care Homes or assisted living at Ashiana Utsav is another pioneering concept of Ashiana Housing. Care Homes is a pragmatic concept that provides housing, support services and personalized care for elderly individuals who may need help with daily activities, hygiene maintenance and health & medication management. It is a combination of home living with professional & customized care. Ashiana launched its 

first Care home in Bhiwadi and this is the second in row.

Cdr. Sanjeev Rawat, Vice President, Ashiana Housing Limited said, “The concept of care homes is new but people have appreciated our efforts and accepted it. We are happy to launch our Utsav Care Homes in Jaipur with a mission to reconnect NRI senior citizens to their roots in Rajasthan by providing them an abode with assisted living facilities.”

“Jaipur has of late become one of the most preferred destinations of urban living in India, emerging as the second-fastest group town in the country. Jaipur is showing immense development in terms of infrastructure and is ready to innovate,” he further added.

Dr. Mulridhara, Manager, Utsav Care homes, said “There is a certain age when one can look back at a life lived with dignity, a life of responsibilities fulfilled, a life made rich by experience, knowledge and understanding. That 'certain age' also brings with it some realities: one may not have the vigour and energy one had; one may require some assistance, medical support and secure surroundings, Utsav Care Homes is one such destination.”

Seniors who are single or living away from close family members often face the challenge of care deprivation. Not only to maintain, but also to improve the quality of life of the seniors, while getting the nursing care they need at an affordable price. 

In India only one senior in every 10000 is engaged in some form of senior living, compared to 12 senior in every 100 in US and four seniors in every 100 in Australia. India is relatively a young country demographically in relation to US and Australia, though by 2025 it is estimated that India will have 173 million seniors above the age of 60 compared to 76 million today. So Care Homes or retirement homes will be in huge demand over the years.

Located on Kalwar Road, Jaipur, Utsav Care Homes offer a triple benefit package: Elders retain the sense of independence and familiarity of living in their own homes. They enjoy the benefits of being part of a community of like-minded individuals. Round-the-clock, professional medical and support team translates into peace of mind for the entire family.

“Utsav Care Homes will provide a range of facilities and services that will simplify and improve life and do away with the uncertainties of managing on their own in advancing years. 

Accommodation, food, doctor, attendants, ambulance, pharmacy, pathology  tests, personal grooming, laundry and  housekeeping will be taken care off.” Said Dr Muralidhara.

Southern states lead urbanisation in the country

Rapid increase in urban population across India has indeed increased the housing demand and if one goes by the recent details furnished by the Minister of Urban Development, Housing & Urban Poverty Alleviation and Parliamentary Affairs M Venkaiah Naidu in the Parliament, Southern states and union territories lead the urbanisation in the country surpasing the national average.

Four southern states, six Union Territories besides Gujarat, Goa, Haryana, Nagaland, Sikkim and Tripura have led the growth in urbanization. across India, Naidu said in reply to a question.

He informed that as against the national trend, urban population in the southern states increased by 21.70% in Kerala, 6.10% in undivided Andhra Pradesh, 4.70% in Karnataka and 4.40% in Tamil Nadu. The increase in respect of UTs has been-Daman & Diu (39.00%), Lakshadweep (33.60%), Dadra and Nagar-Haveli (23.80%), Chandigarh (7.50), Delhi (4.30%), Andaman & Nicobar Islands (5.10%). Puducherry reported an increase of only 1.70%.

Other states to have exceeded national average in urbanization included: Goa (22.40%), Sikkim (14.10%), Nagaland (10.70%), Haryana (6.0%), Gujarat (5.20%), Uttarakhand (4.50%), West Bengal (3.90%) and Punjab (3.60%).

Major states to have fallen below the national average in urban growth included: HP (only 0.20% increase in urban population),UP(0.50%), Bihar (0.80%), Assam (1.20%), Rajasthan (1.50%), Odisha (1.70%), Jharkhand (1.80%) and Maharashtra (2.80%).

In reply to another question, Venkaiah Naidu informed the Lok Sabha that Delhi was sanctioned 23 infrastructure projects under the Jawaharlal Nehru Urban Renewal Mission (JnNURM) at a total cost of Rs. 6,649.55 cr out of which central assistance has been Rs.2,327.34 cr.

Rajesh Dave elected President of CREAA

The Chennai Real Estate Agents Association (CREAA) elected Rajesh Dave, Governing Body Member of National Association of Realtors (NAR) India, as their new President for the year 2014 - 2015 at the AGM held recently.

CREAA is a professional body set up in 1999 to provide professional advice and service to users of commercial and residential space.

According to Rajesh Dave, “Today all members of CREAA, are professionally trained through RE-MET examination conducted by NAR, India. This helps to give correct and valuable advice to clients and almost all companies nowadays insist on this membership before dealing with any agent”.

“The last two years have not been very good for the real estate industry which impacts us directly. However, we are now confident that with the government giving impetus to the industry we are certain of doing well in the future”, he added.

DAMAC sells 300 luxury homes in Dubai in few hours

AKOYA

Who said that there is a global recession in real estate markets? Come to Dubai, where homes are selling like hot cakes. The latest report that luxury home developer DAMAC Properties' project to be launched was sold out in just few hours is testimony to this trend.

Nearly 300 luxury apartments in Loretto, which is located in Downtown AKOYA and overlooks a private park similar to Hyde Park or Central Park, were snapped up during a suhoor (a morning meal during Ramadan) taking place in six venues across the UAE recently.

More than 300 investors, from as far afield as the Kingdom of Saudi Arabia, Qatar, Kuwait, India, Pakistan, Russia and the CIS countries, flocked to venues throughout the country to capitalize on the strength and future growth of the Dubai real estate market, says a Albawaba report.

“Top end luxury living, in the right location, with the right developer, is proving to be as in demand as ever before,” said Ziad El Chaar, Managing Director, DAMAC Properties, adding, “The market remains bullish, with savvy investors from all over the world recognizing the intrinsic investment opportunities that are abound.”

“Despite the scaremongering to the contrary, the Dubai property market remains at the top of its game and is driving great value to smart buyers,” he added.

AKOYA by DAMAC, which was named as the best golf development in the world at the International Property Awards, remains one of the most sought-after developments in the region. Set around the Trump International Golf Club, Dubai, the luxury living experiences include branded villas and mansions by FENDI, Paramount Hotels & Resorts and The Trump Organisation.

The project, which will begin handing over units next year will be fully complete in 2018 and include hotels, hotel apartments, a 1.3km outdoor retail strip, private park, schools and hospitals.

Established in 2002, DAMAC Properties has delivered almost 10,000 units to date and currently has a development portfolio of over 25,000 units at various stages of progress and planning as of March 31st 2014.

Ahmedabad fast becoming a manufacturing hub

Ever since Tata Motors moved its manufacturing plant into Sanand near Ahmedabad in early 2010, the city gone into top gear in terms of growth in the manufacturing sector. The State industrial body (GIDC) proactively acquired more than 1,500 hectares of land adjoining the ‘Nano Plant’ in Phase 1, foreseeing the investments that would follow, feels Nirav Kothary, Head – Industrial Services, JLL India.

Nirav Kothary

The focus was to develop Ahmedabad as a major automobile and ancillary cluster in India. Ford India’s entry in Sanand in 2011 with a proposed investment of Rs 4,000 crore and a direct employment proposal of 5,000 persons was another major milestone. A host of other industries followed, not only in the automobile sector but across all sectors. Notable examples are Hitachi Hi-Rail, Hyundai Engineering, Bosch, Inductotherm, Nestle, Colgate Palmolive and Beiersdorf AG, to name a few.

Additionally, a Special Investment Region (SIR) is being developed in Mandal–Bechraji (laid out over 8 villages), about 90 kms from Ahmedabad. For this initiative, the Government of Gujarat and JETRO (the Japanese Government’s business promotion arm) have joined hands to develop a Japanese Industrial Cluster.

Maruti Suzuki, the country’s largest car manufacturer, has committed a greenfield manufacturing plant there with an investment to the tune of Rs 4,000 crore. Honda Motorcycle and Scooter India Private Ltd (HMSI) has also announced an investment of Rs 1,100 crore for a two-wheeler manufacturing plant. Other major industrial occupiers who have already been allotted land in this park include Mitsubishi Aluminium, ROKI Minda and TS Tech Co. Ltd.

The modus operandi of the Gujarat Government has to provide enabling infrastructure like good connectivity, uninterrupted power, quality water and industrial gas to the industries, rather than just offering incentives to lure industries. Even with minuscule incentives, the state has successfully managed to attract significant investments into the manufacturing sector. 

According to DIPP data, Gujarat saw industrial investments of Rs 70,172 crore from 2010 up to October 2013 in the form of IEM (Industrial Entrepreneur Memorandum) or actual projects delivered on the ground, which is more than 1/3rd of the country’s share in this period.”

Article by Nirav Kothary, Head – Industrial Services, JLL India

Govt is working on 100 smart cities: Naidu

M.Venkaiah Naidu

New Delhi: Urban Development Minister M.Venkaiah Naidu today said that the government is working on the concept of ‘Smart City’ and the contours of implementing the project for developing/building 100 such cities. 

He said so while replying to a question raised by P.Kumar in the Lok Sabha during question hour. 

Naidu further said that all stakeholders will be consulted in the matter and this scheme was discussed at a recent meeting of Urban Development Ministers of States and Union Territories. He said that Parliament would be duly informed of the details of Smart Cities project after their finalization. 

Less patronage to JNNURM
 

Expressing concern over the lack of support from States and Union Territories on using the committed central assistance of Rs.12,397 crore under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the minister said in a written reply to Rattan Lal Kataria, K.C Venugopal and P. Srinivasa Reddy, that the central assistance under JNNURM which was launched in December 2005 and closed by the previous government on March 31, 2014.

Under JNNURM, central government committed itself to provide a total assistance of Rs.46,787 Cr to states/UTs for taking up urban infrastructure/development projects. Release of central assistance was linked to implementation of reforms. States/UTs could avail only 73.50% of central assistance forfeiting Rs.12,397 Cr.

Delhi topped the list of under users having failed to avail central assistance of Rs.1,130 crore as against the committed assistance of Rs.2,327 crore under the component for improvement of infrastructure and other projects in 65 identified big cities. This amounted to only 49 per cent utilization of the committed central assistance. Other under performers included – Goa with only 25% utilization of central assistance, Bihar (39%), Kerala (39%), Mizoram (44%), Punjab (45%), Jharkhand (48%) and Meghalaya(50%).

He said, 668 small and medium towns have reported better utilization of JNNURM funds with an overall utilization of 76% of central assistance. 

FDI flow

Venkaiah Naidu informed Poonamben Maadam that Foreign Direct Investment of US $ 1295.05 million (Rs.7,924.85 cr) as equity had flown into various urban projects in the country during April-2013 – April, 2014. The beneficiary projects included construction of townships, housing, infrastructure development etc., spread across 22 states/Union Territories. Delhi topped the list of recipients of such FDI with an investment of US $ 565.97 million and followed by Chennai (US $ 220.84 million ), Mumbai (US $ 177.04 million) and Ahmedabad (US $ 131.77 million).

New Fuel For The Property Boom At Ambegaon

No discussion on Pune's real estate boom areas is complete without an extensive examination of Ambegaon, says Kishor Pate, CMD – Amit Enterprises Housing Ltd.
 

This fertile and rapidly developing area is fast turning out to be among the most energetic property boom regions in Pune. More and more of the city's home buyers are now opting for properties in areas that offer uncluttered and bracing environment. Ambegaon is one of the most favoured locations in this respect, as offers generous greenery and hilly surroundings as well as excellent connectivity.

Ambegaon has also come into the limelight by emerging as a magnet for home seekers with religious inclinations. The Veeraliyam Temple located in Ambegaon, has by now been drawing worshipers from Pune, Mumbai, Chennai and beyond for over three years. Fully equipped with a 'Goshala', 'Dharmashala' and 'Bhojanshala', this very important Jain temple has a capacity to accommodate 500 visitors at a time and distributes 'prasadam' thrice a day. The temple was launched by its trustee Mr. Chhaganlal Gundesha, who donated his personal property for this unique place of worship which, though primarily for Mahaveer Jains, is open for all communities.

Likewise, Ambegaon will soon boast of its very own Swaminarayan temple - again primarily a major worship destination for Jains but an attraction for all religions. This temple will be spread over a massive 27 acres at Narhe, Ambegaon and be a focal point for followers from Gujarat, Mumbai and Pune.

Its development as a religious destination has added a completely new facet to real estate at Ambegaon and is now creating demand for homes across all typologies and budget segments. Yearly appreciation has so far been clocking in at between 20-25%, but with the arrival of these major temples, Ambegaon has now become an investment hotspot that will have few precedents in Pune over the next five years.

Historically, the real estate market in Pune is eminently suited for diversified offerings in a single location, and the areas that work best are those that offer buyers multiple options in terms of configurations, sizes, budgets and positioning.

Today, Ambegaon has already evolved into a market that provides them with the largest range of choices in this respect, be it in terms of flats, villas or bungalows. Amit Enterprises Housing Ltd. has recently launched new phases for both its budget homes project Astonia Royale and Bloomfield, the premium Singapore-themed township.

Investors are increasingly attracted to the rapid growth of property rates in Ambegaon, which are fuelled both by its own inherent market drivers and the rapid development of areas like Sinhagad Road, Bavdhan, Wagholi, Bhugaon and Undri. These locations have been catering to the next wave of information technology-driven demand for homes and have appreciated considerably. Ambegaon already benefits from closeness to the Mumbai-Bangalore Bypass and NBN Sinhagad Technical Institute.

Also, Ambegaon is still the area of choice when it comes to natural ambiance, freedom from traffic congestion and pollution. This is an important factor for a real estate location, since green scenery and unspoiled surroundings attract demand for homes from all income segments. For all these reasons, Ambegaon has pulled ahead of most neighbouring locations and is attracting demand for ownership homes and investment properties from both within and outside the city.

Article by Kishor Pate, CMD – Amit Enterprises Housing Ltd.

The dark sides of high-rise buildings

Internationally, a building that reaches or exceeds the height of 150 metres is considered a skyscraper. Until recently, Mumbai was the only Indian city with high-rise buildings. The financial capital continues to see the highest demand for skyscrapers, as the only option to grow there is vertically. It now seems that in the coming decade, Maximum City will receive an even more cohesive skyline, with a host of projects in the race to touch the sky being constructed. The demand for high-rise buildings is certainly growing, and other cities are catching up, says Subhankar Mitra, Head – Strategic Consulting (West), JLL India.

Mumbai continues to have the maximum number of tall buildings approved or under construction. Development of India One - the tallest in the country - has already begun in Maximum City. It spans 126 floors and stretches up to a height of 720 metres. Apart from this, Mumbai has more than 30 such super-tall buildings ranging between the heights of 150 metres to 450 metres either at the approval stage or already under construction.

New Delhi, the capital of India, has around a dozen of such buildings coming up. They range between heights of 150-300 metres. Kolkata too is catching up with 9 such residential buildings extending to the height of 245 metres either approved or under construction.

Ahmedabad too has about 13 tall buildings which are under construction and are ranging between 200 metres to 410 metres. Hyderabad and Bangalore too are witnessing some development in construction of tall buildings for residential-commercial purpose with 2 or 3 approved projects.

  

All in all, this amounts to around 60 skyscrapers. Developers see such edifices as a good way to attract potential buyers - high-rise buildings are a good gambit to differentiate their offerings from the rest of the pack. However,  

Effect On Urban Wind

Rise in the elevation of a building increases the distance of the wind shadow and minimizes the air flow at the street level behind the building. Near high-rise buildings, the local wind speed is high even in summer. In addition, high-rise buildings tend to create a turbulent flow of the gradient wind as a result of increasing the roughness of the boundary layer surface.

Increased Air Pollution

In summers, local wind speeds near skyscrapers are very high and troublesome. The ventilation conditions in the urban spaces and major streets with high vehicular traffic have significant impact on the concentration of air pollutants at the street level. The high velocity and turbulent wind at the street level results in the mixing of the highly polluted low-level air with cleaner air flowing above the urban canopy.

Effect On Urban Radiation

High-rise buildings absorb direct and reflected solar radiation of surrounding low-rise buildings and convert it into heat via convection of long wave radiation. However, when buildings are of different heights, the walls of the higher buildings absorb part of the reflected and emitted radiation and block a portion of the sky, resulting in reduced solar exposure and long-wave emission from the roofs of the lower buildings.

Increased Urban Temperature

Size and density of the built-up areas affect urban areas temperatures. In the congested centres of large cities, temperature levels are generally higher than in the suburbs. The largest elevations of urban temperature occur during clear and still-air nights, also called ‘Urban Heat Island'. Excessive opacity of high-rise buildings in city centres results in concentrated heat generation by high-density land use (traffic, lighting, heat exhaust) and contributes to the creation of urban heat islands.

Effect On Night-Time Cooling

Nocturnal radiation is a major climatic factor that reduces atmospheric heat in urban areas located in hot, dry regions. Nocturnal radiation decreases when the density and the height of built-up urban masses increase. High-rise buildings store solar energy during the day time and release it slowly into low-speed local wind, especially at night. The vertical distance between cool winds above buildings roofs and the ground surface is long, and this results in decreased radiant cooling during the nights. Low-rise buildings that match trees heights of 12-15 meters, on the other hand, penetrate night-time ventilated cooling at the ground level and also store cool radiation through built-up urban areas.

Other Factors

• Tall buildings are colder in winter and hotter in summer than regular buildings, and therefore require more heating and more cooling. This is particularly true of modern glass towers. Thus, a lot of energy is required to keep these high rises functioning.

 

• Exterior cleaning and maintenance of a high-rise building can be very costly and dangerous. With global warming (which causes higher wind speeds) on the rise, insurance companies often refuse coverage to maintenance companies in charge of high-rise buildings at certain times of the year.

 

• High-rise buildings take longer to build, and due to rapid and heavy construction activity within the city, there is a heavy load on civic infrastructure.

 

• In-high rise buildings, the average construction cost per square foot is 20-25% higher if the building has more than 12 floors.

 

• Major modifications and/or renovations in a skyscraper are significantly more cost-intensive.

 

• If a new building has to be built on the same piece of land, the number of claimants is vastly higher.

When it comes to our largest cities, there is not much one can do about these factors – and indeed, they are accepted as a fact of life in a city like Mumbai, which must grow vertically if it is to grow at all. Unfortunately, the areas of our cities which are in the biggest need of high rise buildings are also the ones which offer the lowest scope for remedial infrastructure measures that could reduce the impact of skyscraper development.

 

Article by Subhankar Mitra, Head – Strategic Consulting (West), JLL India.

Ashiana Housing launches Ashiana Surbhi in Bhiwadi

Ashiana Surbhi

New Delhi: Targetting middle–income families who want to have their address in NCR, Ashiana Housing Ltd, the leading developer in the region, has launched its value-for-money residential project “Ashiana Surbhi”.

Offering 2 BHK and 3 BHK homes with prices starting from Rs 22.44lakh, Ashiana Surbhi is located in Rampura just off Bhiwadi-Sohna Road.

Speaking over the launch, Vishal Gupta, managing director of Ashiana Housing Ltd, said, “The things that a person looks while searching for a house is livelihood, financial security, convenience and comfort of the family and of course the budget.  Bhiwadi is a destination with lot of development taking place. Infrastructure like rapid rails and boom of industries is creating a lot of job opportunities for people. We are happy to announce yet another project here which will provide people quality of lifestyle with affordable prices.”

The entire project is spread across five acres. Being made in stilt+12 floors, other key highlights of the project are single gated complex with intercom facility, clubhouse with a refreshing swimming pool and sports facilities, designated kids' play area and jogging and walking track.

In addition, the project will also have the convenience of shopping within the complex. The newly designed and constructed houses are meticulously planned so as to make it more spacious, properly ventilated, technically sound and well engineered, the company said in a release.

The buildings are planned and positioned, keeping in mind the privacy of each home. It is not just the aesthetics that are kept in mind but also the durability and easy maintenance. Ashiana Surbhi is a balanced amalgamation of safety, aesthetics, utility and design, as special care is taken to focus on every small detail in order to turn into a great place to live in.

The established and upcoming industries will offer great employment opportunities and Ashiana Surbhi will be offering housing alternatives to its employees. The phenomenal industrial growth of Bhiwadi creates an opportunity for making high rental returns. At The project is close to reputed educational institutes, hospitals, banks, supermarkets, malls and multiplexes.

Ashiana Housing has built over 10.29 million sq. ft. of residential and commercial space at Neemrana, Bhiwadi, Jaipur, Jodhpur, Jamshedpur, Lavasa (Pune) and Patna. They are also pioneers in bringing the concept of senior living in India and spreading it to Bhiwadi, Jaipur and Lavasa. They are the first in retirement resort and one of the few to undertake the maintenance of residential properties developed by it, the release said.

Dubai realty market maintains growth in Q2

Dubai: The real estate market in Dubai has maintained its positive performance in the second quarter (Q2) of 2014, says real estate investment and advisory firm JLL in its Q2 Dubai Real Estate Overview report.

Although the residential sector saw prices and rents increasing across most areas, there are signs that the rate of
growth is slowing down as Q2 experienced a marked slowdown in the volume of residential sales, particularly in respect of existing villas," said Craig Plumb, Head of Research at JLL MENA.

According to Plumb, while the retail and hotel sectors continue to experience growth, recovery in the office sector remains patchy with the large level of supply and high vacancy rates placing pressure on overall rental values.

"The major news about the proposed Mall of the World reflects confidence for both the retail and hotel sectors," said Plumb.

Although the residential sector saw prices and rents increasing across most areas, the rate of growth has started to slow from that seen earlier in the year.

Average sale prices grew six per cent in Q2, down from 10 per cent in the previous quarter.

With signs of reduced sales activity (particularly in the secondary villa market), it is likely that asking prices in this sector will decline further in coming months, the report said.

Sales volumes have declined in all sectors recently, with data from the Dubai Land Department showing villa sales in May 2014 declining almost 50 per cent against same month in 2013. In the office segment, while continued economic growth has improved sentiment and generated demand for commercial space, the high level of both current vacancy and future supply continue to constrain the market.

"The Dubai office market operates as a number of quite different sub-markets, based upon location, tenure (strata or single ownership), licence structure (free zone/onshore) and quality.

While overall market vacancies remain high (25 per cent), there are pockets of shortage that have resulted in major occupiers seeking to have new space built for their  requirements rather than occupy sub optimal space in existing buildings, the report added.

Budget 2014: Realty experts speak

Dr R Kumar

Dr R Kumar, Chairman, CREDAI-Chennai and Managing Director of Navin Housing and Properties.

The NDA Government , under the give circumstances, has done a good job in the budget. Though it lacks the punch and big ticket reforms as expected by all of us, it has never the less attempts to address issues of concern. The budget covers a wide range of issues, including infrastructure, creation of smart cities, relaxation of FDI norms for housing projects facilitating increased flow of such funds. It also allows Banks to more freely raise and issue funds for infrastructure projects with out being crippled with ratios.  

Another thrust area is to recognise small and medium enterprises as important part of the national economy and setting up of a committee to make recommendations in this regard.

It gives fillip to REITS and creation of Infrastructure investment Trusts by allowing pass through.

The proposals for dis-investment in government. sector undertakings is also expected to yield substantial money supply into the system.

Bank accounts for all, Kisan Vikas Patra and SME related initiatives can also be expected to improve money supply. 

The budget has increase the IT exemption limit by Rs. 50,000, the 80c benefits by Rs 50,000, and the interest waiver on Housing loans by Rs. 50,000. The combined effect can be used by homebuyers effectively. They can double the benefit by buying the property in the joint name of husband and wife.

There are many areas the FM has tried to address. However, its success will depend upon how effectively these measures are implemented in the spirit of the budget!

N Nandakumar, President, CREDAI-Tamil Nadu and managing director Devinarayan Housing:  

N Nandakumar

FDI

Reduction on the threshold for FDI in real estate from 50000 sq.m to 20000 sq.m will encourage medium sized projects and developers to raise money through the FDI route.

Reduction on minimum capitalization from USD 10 mn to USD 5 mn is also an added encouragement.

Post completion lock in period of 3 years could be a dampner as the investors have to wait for three years post completion for repatriation of their investments.

Affordable Housing:

Projects having atleast 30% of their scheme as affordable housing are exempt from norms 1 & 2 above ,will help small and medium size developers to access funds through the FDI route.The only rider being the 3 years post completion lock in period.

Industry status expected has not been announced – this is a disappointment.

Single window clearance expected has not been announced- lead time for project approval in this category will continue to be on par with regular projects- Stock creation will get delayed proportionately.

REIT:

This is a welcome move as liquidity in real estate will improve while ensuring lower cost of funds.

Funding:

Industry was expecting access to ECB for all types of projects as against present permissibility only for 

Affordable housing projects-Not come in- Disappointment.

Service tax:

Removal of service tax for housing under construction to benefit individuals not considered.

Environmental Impact assessment:

Industry had represented for EIA clearance at a Master Plan level-No response on this.

Anuj Puri

Anuj Puri, Chairman & Country Head, JLL India

The Union Budget 2014-15 was presented in the parliament under economic circumstances that required tax revenues to keep pace with targets. Considering the state of government finances and the current situation – below-normal monsoons, Middle East tension leading oil price volatility, the weakness of the India rupee etc., there was not much room for populism.

However, considering the high inflation and curtailed savings that they have had to contend with for some years now, taxpayers still expected a fair shake from the new government, such as enhanced deductions, reduction in tax rates, interest subvention on home loans and tax incentives to affordable housing.

The Finance Minister took a cautious, yet courageous path with his budget announcement:

•  Housing

In terms of relief to the housing sector, the budget has allocated Rs. 4000 crore for low-cost housing schemes. Apart from this, he has also indicated that there will soon be a relaxation of FDI norms for the affordable housing sector. Though the government has announced such incentives for low-cost housing in the past, the real task lies in the fast execution of the fast execution of these initiatives. It is very positive that the government has taken due note of the demand-supply mismatch in the LIG and EWS housing segments, and it remains to be seen how fast these initiatives hit the ground in real time.

Significantly, the budget has increased the income tax deduction limits under 80C, of which the repayment of principal on housing loans is a component. This limit has been raised from Rs. 1 lakh to Rs. 1.5 lakh. Additionally, the budget has also increased the deduction limit on interest payment for housing loans from Rs. 1.5 lakh to Rs. 2 lakh. These two factors alone will lead to a vastly improved sentiment on the housing markets.

The budget gave further indirect benefits for the residential sector by increasing the individual income tax exemption limit from Rs. 2 lakh to Rs. 2.5 lakh. This will increase disposable income of individuals and would have further implications on their ability to service home loans.

•  Construction Sector

Construction costs have been rising at the rate of 17% over the last three to four years, and this budget has not provided enough measures to bring down these costs. Contrary to expectations, material costs involved in real estate construction will remain high over the near-to-medium term, which is bound to put pressure on developers’ margins.

•  Infrastructure

The infrastructure and manufacturing sectors have been given paramount importance in this budget, since these are job creating verticals. Banks will now be encouraged to extend long-term loans for infrastructure projects without any regulatory pre-emptions such as CRR, SLR and priority sector lending norms. This additional enforcement of banks to support the creation of infrastructure will result in faster infrastructure creation and the consequent benefits to the real estate sector.

The budget has allocated a total of Rs. 37880 crore towards the NHAI for the construction of highways, and additional Rs. 3000 crore to boost road connectivity in the North-East regions. For the current year, it has targeted the completion of 8500 kilometres of national highways, which are a known real estate catalyst and will have long-reaching implications on the markets of the cities they connect.

Ahmedabad and Lucknow have been singled out as special beneficiaries of this budget with the allocation of Rs. 100 crore towards the deployment of Metro rail systems in these cities. The increased connectivity will raise the scope of real estate development there and also have an impact of property valuations over the mid to long term.

The development of 16 new ports has been proposed at an outlay of Rs. 11,000 crore. Additionally, an allocation of Rs. 11,600 crore has been made for the development of outer harbour port projects. The combined effect of these provisions will be that there will be an increase in demand for commercial office space from the manufacturing sector in India’s major port cities.

•  Smart Cities

As promised in the new government’s manifesto, it has proposed the creation of 100 smart cities across India. The budget has allocated Rs. 7060 crore towards this end, thereby giving a financial sign-off for this concept. This will have very positive implications for real estate across all segments, namely residential commercial, retail and hospitality. Smart cities, by definition, imply considerable demand for technology-enabled services, and this is a big positive for IT/ITeS companies in India. Significantly, as much as one-third of the country’s demand for office space emanates from this sector.

•  Retail

The country’s warehousing sector has received a boost with an allocation of Rs. 5000 crores. In this, we see positive implications for the retail real estate sector on account of a strengthened supply chain, which has been a serious requirement of this sector for a very long time. Apart from this, the budget has not provided any further benefits to the retail sector, which is a disappointment.

•  Hospitality

The budget also brought cheer to the hospitality sector in two major ways. One, it has stipulated that electronic visa services will be introduced in nine international airports in India over the next six months. This will increase the magnitude of tourist arrivals in the country. Secondly, it has indicated that major provisions will be made for the creation of world-class convention centres to be developed through the PPP model. Once these centres are created, they will bring about an increase in corporate tourism into the country. Ailing hotel chains are looking at a significant revival in their fortunes, and we expect that the absorption of hotel-related real estate will rise in the bargain.

All In All…

The real estate sector’s expectations have definitely not been met completely in this budget. However, given the economic situation prevailing in the country, this is not really surprising as the government needs to balance myriad issues while addressing growth. We are satisfied at the real estate sector is once again headed in the right direction.

​Kishor Pate, CMD - Amit Enterprises Housing Ltd.: 

The reduction of personal income tax ceiling and the raising of home loan interest deduction will definitely increase demand for homes in cities like Pune. True to his promises, the Finance Minister has made singificant allocations towards infrastructure projects in the country. The allocation of Rs. 37,850 crore into the National Highway Authority of India will result in vastly improved road networks, which will in turn result in new vibrancy in the real estate sector. The National Housing Bank has received an allocation of Rs. 8000 crore for this program, which will have. I am especially enthusiastic about the Rs. 7060 crore allocation towards the government's program for creating 100 smart city projects.

Arvind Jain, Managing Director - Pride Group:

It is a satisfactory budget with good implications for real estate. Significantly, the budget has included slum rehabilitation under the ambit of corporate social responsibility. We will now see greater involvement by India Inc in this very important sector and give a boost to supply in the inner parts of our major cities. The FM has given much-needed relief to individual tax payers by raising the income tax exemption limit by 50,000 and has also raised the limit of the interest part of home loans from Rs. 1.5 lakh to Rs. 2 lakh. The combined effect will definitely be renewed interest in home purchase by Indians.

 

Sachin Agarwal, CMD - Maple Shelters:

The budget has reduced  the FDI norms for minimum built-up area for affordable housing. Additionally, Rs. 4000 crore have been allocated towards the creation of low-cost housing. This is extremely promising for the affordable housing sector and we will see an increase in housing development for the under-privileged in the peripheral areas of cities like Pune. The relief provided on individual income tax and interest on housing loans is very significant for the bduegt homes sector, since these measures have greatest pertinence to the more financially sensitive home buyers. I am happy with this budget, in which the Financial Minister has shown great foresight and set the path for economic revival.