Will RBI’s Generous Rate Cut Revive Real Estate Sector?

Anuj Puri, Chairman & Country Head, JLL India opines about the recent rate cut by RBI and its impact on Indian real estate sector.

Anuj Puri

As opposed to the market’s expectation of a 25 basis points cut, the RBI has delivered an astounding 50 basis points reduction. With this, it has clearly abandoned its cautious baby-steps approach and assumed a bolder stance, obviously because the current economic fundamentals provide it with the room to do so. Given the magnitude of this step, I do not think any further rate cuts are likely in this financial year, especially since the RBI foresees a moderate growth in inflation rate in the interim months.

For the affordable housing sector, the outlook is nevertheless bright, since the RBI governor has made provisions for lending to this sector to become less stringent and broader in scope.

Of course, real estate industry stakeholders – particularly end-users and investors in residential property – is still left with questions about how well RBI’s latest move will work in reviving the industry. It has been noted that selling prices must come down before any significant revival can take place, and that reduced interest rates alone are not sufficient.

In the first, place it is incorrect to say that prices have not corrected. A majority of new housing project launches have been at lower rates than those of earlier projects launched in the same category projects and in the same locations. Also, while developers in the residential sector are definitely feeling the pinch owing to high inventory levels and restricted upward momentum in prices, they are careful not to continue with a slew of new project launches in the premium and luxury segment.

Rather, over the last few quarters, the focus has been on launching projects that fall in the mid-segment category. In the case of tier-I cities, this would include apartments priced under Rs. 1 crore.

Firstly, there is ample demand for mid-segment homes within the city limits of major metros in India. Secondly, executing projects in the affordable category requires good technical expertise and a high level of professionalism, and therefore may not be a forte for a large set of developers.

As a consequence, over the next few years, average prices across major cities would witness a fall to levels that are more sustainable. It is important that both the RBI and government take necessary prerogatives to boost developments in the affordable category. Policies such as Housing for All and the recent RBI directives will go a long way in helping the cause.

Lodha launches finest luxury homes for HNIs

Lodha Group, India's largest real estate developer and one of the world's select multinational real estate brands, has announced launching of The Luxury Collection, a new umbrella brand that aims to be the world's finest, first-of-its-kind, international end-to-end luxury portfolio. The Luxury Collection will be present at the globe's most-coveted locations, offering the highest standards of service and crafted to the highest level of detail and refinement.

Speaking on the occasion, Abhishek Lodha, Managing Director of Lodha Developers, said, “It's a moment of great personal satisfaction to have realised our family's dream and vision of creating the finest in luxury living in the form of 'The Luxury Collection'. Since last 35 long years, we at Lodha have been continuously developing and delivering world-class homes and offices, however two years back we realized that now it was time to raise the bar even higher and bring together the finest from across the world. There is a growing desire for luxury brands across consumer categories but for the most important and involved purchase, for our own home, there is no singular choice which one can trust or associate with. To realize this vision, we spent endless hours traversing the globe to understand trends and evolutions in living, imbibed the best of Asian hospitality and Western aesthetics, and pursued perfection and detail with an almost monastic devotion.”

Lodha Altamount, the latest from The Luxury Collection, is situated at Billionaire Mile - Altamount Road in South Mumbai. Formerly the Washington House, the US Consulate in Mumbai, Lodha Altamount’s location is not just the highest point of the island city but also considered the most powerful location.

Lodha Altamount boasts of contemporary architecture in the form of all glass façade, conceived and designed by German-Iranian architect Hadi Teherani, which will soon dominate Mumbai's skyline. The common areas are designed by Rajiv Saini - rated as the 7th most influential designer by Forbes. The development will also be home to India's first Picasso painting.

Together with unique and rare lifestyle amenities unseen in the neighborhood like a rooftop lounge and pool, a clubhouse with temperature controlled swimming pool and a private cinema to name a few, the signature development is being exclusively designed for a select number of families and will feature a limited number of 3 and 4-bed residences and 5-bed villas. These will be fully managed by the bespoke hospitality service provider - St. Amand.

Super-luxury hospitality service  

Adding to exclusivity is the elite hospitality service, offered by St. Amand. A bespoke service that's a first for India, St. Amand brings the finest standards of luxury service and living to The Luxury Collection.

"Putting this collection together has been the most satisfying and pleasurable journey, personally. During this long but rewarding journey , we learnt that bringing together the finest location, design and craftsmanship is important indeed, but providing exclusive and personalised service to residents is equally critical. In line with our promise of complete luxury, we have brought together the collective expertise of hospitality experts from across the world to create St. Amand, a bespoke hospitality company, providing the same measure of care and attention that one would associate with the world's finest palaces and hotels," said Abhishek Lodha.

At Lodha Altamount, residents can avail a host of services - from acquiring tickets to concerts by the world's biggest acts, to booking passes for premier global sporting events, to flying in orchids from Thailand. In addition, every aspect from housekeeping to banqueting and fitness to business and entertainment will be taken care of by luxury hospitality experts.

"The vision for St. Amand comes from the desire to provide a five-star experience within a residence, one usually experienced at the world's finest hotels. Luxury home owners across the world value the highest standard of hospitality; residences managed by St. Amand will be privy to highly-personalised services and luxury living at its finest, in a distinctive atmosphere," said Shyam Kaikini, Executive VicePresident - St. Amand Hospitality Services.

All in-residence services at Lodha Altamount will be handled by St. Amand, including away-from-home services, clubhouse management, personal fitness training and nutrition advice. Additional services include babysitting, pet care and personal shopping.

Roping in the world's finest

With one residence per floor and a floor-to-floor height of more than 13 feet, Lodha Altamount caters to those who are accustomed to a life of unrestricted luxury. It is being designed by some of the finest international names including world-renowned Hadi Therani Architects, Germany and MKA Structural Design, USA. Residence interiors are being designed by HBA Studio, Singapore, and landscaping by Francis Landscapes, Lebanon.

Pune is shaping up as best Post retirement Destination

Pune: Ashiana Housing, pioneers of an active Senior living in India, is handing over possession of Ashiana Utsav Lavasa Phase 2, its senior citizen housing facility, located in Lavasa, India’s first fully planned hill city being set up in Pune.

Set in the picturesque Sahayadri Hills (Western Ghats), amidst greenery and soothing landscapes, Ashiana Utsav Lavasa Phase 2 comprises both villas and apartments. The housing units have been built with exceptional care and a lot of thought has been put into every facet of construction so as to make senior living dignified and comfortable. Each unit comes with several features such as:

·        Anti-skid tiles to avoid slipping and falling

·        Grab rails in the master toilet

·        Single-lever fitting in bathrooms

·        Age-friendly door and window handles

·        Night lamps in the master bedroom

·        Bigger electrical switches mounted at a comfortable height

·        Emergency response system

Besides, other services such as moving in, utility bill payment, maintenance services (electrician, plumber on call), and garbage collection from identified spots are also provided, enabling residents to enjoy a secure, comfortable and relaxed lifestyle in a community environment where they do not have to put up with the hassles of maintaining a typical home.

Keeping in mind the health concerns of residents, Ashiana Utsav Lavasa Phase 2 also comes with a first-aid centre and a resident nurse. A 24-hour ambulance service, with a doctor and a nurse, is also available to provide peace of mind to the residents. In fact, the housing project adjoins the Apollo Hospital, which also runs a pharmacy providing free delivery services to residents.

But it is not all health and medical care at Ashiana Utsav. There are a number of recreational facilities available for senior citizens. With hobby clubs, activity rooms, computer room, art and craft studio, library and reading lounge, and indoor and outdoor game facilities, there is always plenty to do at Ashiana Utsav Lavasa Phase 2.

Situated just an hour’s drive away from Pune and four hours from Mumbai, Ashiana Utsav Lavasa has everything going for it.

Present at the occasion Mr. Manoj Tyagi, VP, Ashiana Housing Ltd. said, “We understand that senior citizens have a unique lifestyle, with special needs. They want comfort and security, but, most of all, they want dignity and independence. Today’s senior citizens are mostly retired professionals – they cherish an active post-retirement life in a secure environment. Ashiana Utsav Lavasa Phase 2 is our humble gift to these valued citizens of our country.”

With the first set of residents having moved into their homes in 2013, new residents have company of like-minded people to enjoy. “It is so refreshing to find people our own age, with similar interests and hobbies here at Ashiana Lavasa,” says Mr & Mrs Dilip Barve who are from Mumbai “Not only is the location so sublime and peaceful, we have a great time mingling with other residents and planning all sorts of fun activities. Moving in here has been one of the wisest decisions we have ever made,” they add.

The comfortable environs have had a soothing effect on several elderly residents.

Taking the possession of Utsav Lavasa Phase 2 Mr. Shree Chandan, who is originally from Orrisa working with (NTPC) says, “At Ashiana Utsav Lavasa, I have, in a manner of speaking, re-discovered myself. I have always been sports-minded but found it difficult to play with others in my earlier residence. Here, I can connect with like-minded people and keep myself fit by playing outdoor games. Plus, my wife is happy she has good company for her evening walks,”

Another customer, Ms.Renu Marwa, 63, lived in a rented flat in Juhu – located in the same housing apartment as her son. Despite frequent visits by her family, Marwa decided to move to a serene, quiet place outside the city where she could live amid nature while continuing to enjoy visits by the family.

“All my life I had lived in Chennai, and moved to Mumbai because of my son’s new job posting. But rents in Mumbai are exorbitant. It wasn't even worth it, as my children were frequently travelling abroad for work. Finally, I decided to sell off my Chennai property and buy Ashiana Utsav villa in Lavasa,” said Marwa.

Clearly, at Ashiana Utsav Lavasa, retired life is meant to be enjoyed, not endured.