ANB Capital Merges with Anuj Puri’s ANAROCK Property Consultants

ANAROCK Property Consultants and ANB Capital Advisers today announced the formal merger to create ANAROCK Capital, which will be headed by Shobhit Agarwal as MD & CEO.

Anarock Property Consultants was launched by prominent real estate consultant Anuj Puri while ANB Capital was headed by Shobhit Agarwal as MD & CEO.

The ANAROCK Group’s residential services division has already defined itself as India's leading, fastest-growing and most disruptive consultancy in the industry. With the addition of the Capital Markets vertical, ANAROCK takes a major step forward towards its ambitious expansion plans.

"The Indian real estate market is in its next evolutionary stage, and perfectly primed for ANAROCK Capital. The firm will fill the massive real estate investment banking advisory gap that exists in a market completely redefined by RERA in terms of how the market operates and who will operate it going forward. Among several other functions, ANAROCK Capital will advise on big-ticket funding, acquisition and consolidation mandates. Shobhit's vast experience and deep-rooted industry relationships will come into play with immediate effect. I take particular pride in announcing the second merger of equals in my professional life - and more are to follow," says Anuj Puri, who will be the chairman for the new entity.

Shobhit Agarwal has been a prominent deal-maker in Indian real estate capital markets for over two decades and looks forward to taking the massive stakes involved to the next level.

"Our capital markets team consists of well-honed industry experts who are adept at handling multi-million-dollar capital mandates" says Agarwal, who has already traded capital in excess of US$ 10 billion in his previous assignments.

"Leveraging the ANAROCK Group's tremendous market penetration and superb operational infrastructure with 10 operational offices in India and 1 in Dubai, ANAROCK Capital will lead the real estate investment banking business from the front. There is over US$ 150 billion of capital to be traded in Indian real estate over the next 5 years - and with our collective expertise, existing exposure and resources, we are perfectly poised to capture a major share of it," he adds.

Building on ANB Capital's existing strengths and expertise, ANAROCK Capital will provide services in real estate investment banking, financial management of big-ticket mergers, acquisitions and restructurings. The firm already provides capital advisory services to some of the country's leading corporations, institutions and state governments, based on a unique business model that eliminates the conflicts of interest inherent to large, multi-product financial institutions and multi-vertical international property consultants.

What Indian Real Estate Needs from Union Budget 2018-19

Every year, the Union Budget presents the Government with an opportunity to tweak the direction that the Indian economy is taking. Sometimes, hard decisions are taken which, while necessary, do not necessarily go down well with Mr Everyman. At other times, the Union Budget is clearly meant to be a crowd-pleaser. This invariably happens when an incumbent Government is finishing its term and general elections loom, for obvious reasons.

Anuj Puri

The current Government has done a lot for the Indian real estate industry, even when it was in the form of hard decisions like demonetization and the disruptive but very necessary RERA. 

With the hard decisions now taken, the Indian real estate sector fervently hopes that it is at the receiving end of the benevolence implied in a populist budget. This benevolence needs to go beyond improving personal finances and the implied boost to real estate investment appetite.

Despite the Government's very proactive stance towards cleaning up and regulating the sector, there are still several policy-related pain points where the coming Union Budget can make a decisive difference:

• Single-window clearance

Why this has not happened despite it being a very clear and dire need - even more so given the Government's dream of Housing for All by 2022 - is a bit of a mystery. The clearance and approval process for residential real estate projects has been an impediment for a long time. Although many initiatives have been taken to create a conducive business environment in the sector, the demand for single window clearance mechanism in totality is yet to be fulfilled.

If implemented, single-window clearance can significantly reduce the overall projects cycle time and developers will be able to focus on their core business of project execution. Post-RERA, it has become all the more important to facilitate smooth clearances and approvals so that there are no execution delays due to procedural hindrances.

• Industry status to real estate sector

Again, a long-standing demand which has so far gone unmet. Real estate is one of the key GDP contributors and the fourth-largest employment generator in India. Extending industry status to the entire real estate sector will help developers to raise funds at lower rates and, in turn, reduce their project costs - which will help in pushing demand. Additionally, the inclusive growth of the real estate sector will help in generating employment across various sectors which are directly or indirectly related to it.

• Tax rationalization on REITs

As of today, the first REIT is yet to be listed in India. Simplifying the taxation norms for REITs is a critical requirement for listings to start flowing in, which will benefit the entire real estate sector by the enhanced participation of a much broader bandwidth of investors.

• Higher income tax benefits for the first time home buyers

Yes, this always matters for the residential real estate sector. Currently, a first-time homebuyer can claim an additional tax deduction of up to INR 50,000 per financial year under section 80EE of the Income Tax Act, provided certain conditions are fulfilled. Tax exemption should be increased so as to incentivize first-time home buyers.

• Reduction in GST rates

As of now, under-construction properties are levied a GST of 12%, which is significantly higher than the previous taxes. The Government should strive to make GST a tax-neutral proposition so as to help in reviving demand in the real estate sector. Clarity and transparency on input tax credit will also help in rationalizing the taxes.

• Higher incentives for green buildings

They are the indisputable need of the hour in India's deteriorating urban environment, but the marginally higher cost of construction of green buildings has kept a majority of developers away from such projects. Keeping the current and certain future challenges to the environment, the Government should encourage developers with higher incentives in terms of FSI and/or some degree of tax exemption to encourage them to adopt green building technologies.

Article by Anuj Puri, 

Chairman - ANAROCK Property Consultants

Anuj Puri Leaves JLL, Ramesh Nair to Lead India Business

Anuj Puri

Mumbai  / Singapore – Anuj Puri, Chairman & Country Head of JLL India, today announced his decision to leave the Firm, simultaneously confirming that Ramesh Nair will take over as CEO and Country Head. 

Ramesh Nair will assume his new role on 1st March 2017. He will report to JLL’s Asia Pacific CEO Anthony Couse.

Anuj Puri joined JLL in 2007 when his company Trammell Crow Meghraj (TCM) merged with the Indian arm of global real estate firm JLL. This formidable partnership gave rise to the largest real estate services company on the Indian subcontinent.

“It’s been an incredible 10 years at JLL, but now is the time to step back and reflect before moving in a new direction,” says Anuj Puri. “The company has great leaders who are now at their prime, and it is to such a leader that I pass on the baton. Ramesh Nair has, over the years, taken everything he undertook from strength to strength and has earned his laurels many times over. I’ve worked closely with him for many years, and am confident that he is perfectly placed to spearhead JLL and take it to several new levels.”

Ramesh Nair

Ramesh Nair’s leadership potential and track-record for business success is well-documented at JLL India. He has a strong reputation for leading teams across the Firm’s various business lines, and for his focus on business growth and the advancement the team members that drive it. A long-term thinker, he has amply demonstrated his capabilities for talent development, strategy and amplification of the Firm’s core values. He has managed some of the largest P/Ls within JLL India, and has extensive experience in leading teams, change management and servicing domestic and multinational owners, occupiers and investors across multiple asset classes and geographies.  

“It’s an absolute honour to be taking over as head of JLL’s India business,” says Ramesh Nair. “I’ve had a fascinating journey with the Firm over the past 17 years, and would like to thank Anuj as well as the regional and India leadership teams for their support and confidence in me to lead JLL, in this exciting phase in India’s economic growth and development. Anuj is a legendary figure within Indian and global real estate, and filling his shoes will certainly be a big task. However, I look forward to working more closely with our clients and teams to produce outstanding outcomes and drive growth to the next level.”

As CEO and Country Head, Ramesh will be responsible for overall direction, strategy and growth of JLL’s India business. He joined JLL in 1999, has risen swiftly through the leadership ranks and has been a member of the India Leadership Council since its inception in 2008. In 2013, he was promoted to the role of Chief Operating Officer, India and became an International Director in 2014.

“Anuj Puri has been a great asset to JLL over the past 10 years, and has imparted a distinct identity to the Firm due to his large industry stature and contributions. On behalf of the regional and India team, I thank him sincerely for his immense contribution,” says Anthony Couse. 

“We are fortunate to have a great depth of talent among our India leadership – and an eminently qualified successor in Ramesh Nair, who has been hand-picked and endorsed by Anuj and the regional leadership. Ramesh is known for his persistence, drive, resilience, and energy which he brings to the Firm. I look forward to working with Ramesh closely – and to seeing him put into action exciting new growth plans for our India business, which is almost INR 3000 crore in size," he further adds.

Mumbai to Witness Spurt in Office Rental Growth

As per JLL’s recent Global Real Estate Outlook, Mumbai’s office space occupiers will have to face upward revisions in rents in the coming years. Compared to Q2 2015 when Mumbai’s rental values had bottomed out, the city will now start to see acceleration in its rental value growth from Q2 2016.

The research tracks rents (in local currency) for prime Grade-A office spaces in several cities’ CBDs (or their equivalent) across the globe. It then puts these cities on a ‘rental clock’ representing the cyclical nature of office rents.

In Mumbai, Bandra Kurla Complex is the de-facto CBD. The original CBD of Nariman Point long lost out to newer micro-markets due to the evolving needs of occupiers, which it has not been able to provide.

In terms of future upward pressure on office rentals, Mumbai is in the company of cities like Sydney, Brussels, Paris, Milan, Amsterdam, Madrid, Chicago and Boston. In 2Q15, Mumbai’s place on the rental clock was shared by Paris, Brussels, Istanbul and Washington DC. Out of these five, Paris saw a drastic acceleration in rental value growth while both Brussels and Mumbai marched ahead at a slower pace. Washington DC, however, still remains at the same place as last year. Interestingly, Istanbul is now seeing rental values of its prime office spaces falling.

Market dynamics

Mumbai, being the financial capital of India, has traditionally seen a lot of office space take-up by BFSI players and IT/ ITeS (mostly back-office operations of BFSI firms) in different micro-markets. Moreover, showing faith in India’s economic growth, many occupiers have been in expansionary mode, says Anuj Puri, Chairman & Country Head, JLL India.

In a report last year, JLL had forecast that average city-level rents will continue to rise and that the city and suburbs will move from being tenant-oriented to being landlord-oriented after 4-5 quarters. A tenant-driven market indicates oversupply of office space, falling rents, weak demand and big incentives available to tenants, whereas a landlord-orientated market indicates limited supply of office space, rising rents, strong demand and no incentives for tenants.

As JLL had also pointed out, occupiers will take up spaces in less ideal locations as good buildings at ideal locations will fill up quickly on the back of continued demand. Grade-B buildings in good areas will also see renewed interest from occupiers. If the state government improves connectivity and takes up more reforms, additional land parcels in the peripheral areas would open up for residential development and existing office districts could then see further expansion.

JLL bags Golden Peacock Global award for sustainability

The leading global real estate services firm JLL has bagged Golden Peacock Global Award for Sustainability from India’s Corporate Institute of Directors.

The award will be presented at a special Golden Peacock Awards Nite at the Millennium Hotel London Mayfair in London.

The Golden Peacock Global Award for Sustainability recognizes companies’ commitment to a more sustainable world across a number of criteria, including corporate governance, economic, environmental and social performance. The award winners adhere to the Corporate Institute of Directors’ mission to lead sustainable business transformation through visionary and holistic awareness of boardroom strategies and practices, good governance, transparency and accountability.

The Golden Peacock award reflects JLL’s ongoing commitment to sustainability globally and to minimize the environmental impact of real estate, as well as enhancing the economic and social benefits of real estate development, according to Anuj Puri, Chairman and Country Head for JLL India.

“By providing sustainability services to our clients here in India and around the world through our network of sustainability professionals, we strive to embed sustainability principles across our advice and services, enabling our clients to achieve more holistic value over the long-term” said Puri, adding, “We believe this award reinforces JLL’s brand and reputation as a global leader in sustainability and our ongoing commitment to being a good corporate citizen in and beyond our business.”

Asia Pacific Is Most Improved Region For Real Estate Transparency: JLL

 Asia Pacific made the greatest progress globally in terms of real estate transparency over the past two years, according to JLL’s Global Real Estate Transparency Index (GRETI) 2016. 

The index measures transparency by looking at factors including data availability, governance, transaction processes, and the regulatory and legal environment.

Asia Pacific is a diverse region in terms of real estate transparency. Australia continues to hold the top spot as the region’s most transparent real estate market, and together with New Zealand, is classified as ‘Highly Transparent’.

Overall, improvements in most countries across the region have been small. The biggest improver in the latest survey is Taiwan, which has moved into the ‘Transparent’ category for the first time. More moderate improvements were achieved by Japan, South Korea, India and China, with China’s Alpha cities now on the cusp of the ‘Transparent’ category. At the other end of the spectrum, Myanmar retains the title as the least transparent market in Asia Pacific, although it was amongst the ten biggest improvers globally.

“India has made improvements in overall transparency scores across all markets, and has achieved higher ranks for tier-I, II markets. Improved market fundamentals, policy reforms, and liberalisation of FDI into realty sector and strengthening of information in public domain were main influencers, along with digitization of land records and opening up of REITs,” says Anuj Puri, Chairman & Country Head, JLL India.

India’s low score in transaction process (e.g. high costs of investment transactions, and weak professional standards for local agents) will improve during the 2016-18 assessment period of JLL’s next Transparency Index, on account of enactment of the Real Estate (Regulation and Development) Act and establishing of the real estate regulator.

The major factor driving improvements in Asia Pacific has been the increased availability and quality of market data. For example, Sri Lanka makes a debut in the rankings for the first time and is on the cusp of entering the 3rd tier of markets from its current 4th tier. In some countries improvements have also been seen in regard to performance benchmarking, the enactment of new legislation, the introduction of higher ethical standards, and the wider adoption of ‘green building’ regulations and tools.

“These results are encouraging as they highlight the steady advance of the region’s real estate industry,” says Jeremy Kelly, director, Global Research Programmes at JLL and main author of the report “Taking Real Estate Transparency to the Next Level”.

The launch of GRETI 2016 comes at a time when international institutions, national governments and businesses are demanding greater integrity and clarity in investments and transactions. It reflects a growing recognition of the crucial role that a transparent real estate sector plays, not only as a facilitator of new investment and business activity but also, significantly, in community well-being and inclusiveness, according to the report.

Additionally, capital allocations to real estate are growing. JLL forecasts that within the next decade in excess of US$1 trillion will be targeting the sector globally, compared to US$700 billion now. This growth means investors are demanding further improvements in real estate transparency, expecting standards in real estate to be at least on a par with other asset classes.

“While the region as a whole has shown improvement, most countries in Asia Pacific are still not transparent. There are ongoing examples of poor corporate governance, opaque and corrupt practices and failures in regulatory enforcement that are resulting in serious consequences for society, for business activity and for investment,” says Dr Jane Murray, Head of Research, Asia Pacific.

“Looking ahead, the continued development of the region’s economies and real estate industry will fuel the need for future enhancements in transparency as investor interest rises and the demand for quality buildings and management grows. Regulatory reforms will be essential for further progress in transparency and although public sector initiatives are essential, private sector involvement will also be crucial.”

JLL’s Transparency Index is updated biennially and has been charting the evolution of real estate transparency across the globe for 17 years. The latest survey covers 109 markets worldwide.

Railway Budget Should Encourage More Transit-oriented Development

Anuj Puri

With the rail budget coming up, the sheer number of land parcels held by Indian Railways across the country makes this entity an important stakeholder in Transit-Oriented Development (TOD). 

Given that Indian cities will see more migration from the rural areas, urban infrastructure will become a key focus area for the government. In last year’s railway budget, it was announced that monetisation of assets instead of selling them will be the new approach.

Mumbai has always been challenged by its need to transport millions from the suburbs to South Mumbai’s business districts, thanks to its geography and linear, northward expansion. Three suburban railway lines and two express highways operate in full capacity during peak hour. Traffic congestion highlights the need for augmentation and modernisation of existing transit routes.

The case is similar in other metros. Bangalore sees a lot of traffic congestion during the peak hours. Delhi-NCR stands out for its pollution levels constantly hovering around dangerous levels, even though it has better metro connectivity than most other large Indian cities. There is definitely a lot of scope for TOD in all these cities. Tier II cities are not far behind, and could end up congested like the Tier I cities in a few years, given the rapid pace of their expansion.

What is TOD?

TOD is a mixed-use residential and commercial area designed to maximize access to public transport, and often incorporates features to encourage transit-ridership. A TOD neighbourhood typically has a centre with a transit (train/ metro) station or stop and residential as well as commercial development around it. TOD interventions aim to significantly shift the mode share away from private motorized vehicles to public transport.

Many cities around the world, such as San Francisco, Vancouver, Hong Kong, Melbourne, Paris, etc., have developed and continue to write policies and strategic plans aimed at reducing automobile dependency and increasing the use of public transit. TOD as a planning tool is new to Indian cities, and quality mass rapid transit systems are also relatively recent here.

Transit-oriented Development In India

Delhi was the first Indian city to move towards a TOD concept. TOD is also a priority area for Mumbai, and was mentioned in its new development plan (DP) 2034 (currently in a draft format and undergoing several revisions). Vashi, CBD Belapur were the first TOD projects in Navi Mumbai, with Seawoods following suit in recent years. Haryana has recently introduced TOD, which will benefit cities like Gurgaon. While some progress has been made, it is still too little and comes almost too late.

Source: JLL Research

The chart above talks about dependency of a city’s population on its public transport. It clearly shows that Mumbai and Delhi are high on public transport dependency when compared to a few other cities. This presents a strong case to further improve the existing infrastructure in order to sustain this public attitude. That will not happen if the road network continues to be built and improved without the rail network keeping pace.

Worth Noting: China has outstripped India (the world’s fourth largest rail network), following an intensive expansion and modernisation of its network over the past two decades. It now has more than six times as much track as India. This budget, we expect the railway minister to look at monetising railways’ land parcels in urban areas through TOD – in order to boost cities’ liveability quotient and modernisation of their skylines. Given the progress of work on infrastructure projects in India, TOD plans should be rolled out across cities soon so that the infrastructure is in place by 2020-25.

Contributed by: Anuj Puri, Chairman & Country Head, JLL India

Union Budget 2016: Developers look up to FM for revival

It’s Budget time again, and Indian real estate sector is yet again pinning on the hope of a slew of measures from the government which will see the revival of the struggling sector. 

While most of builders and realty experts believe that measures to improve consumer sentiments through income tax rebates and reduction in borrowing rates can put the life back into the system, others want the government to take long term measures by implementing the much-talked about REITs, Special Residential Zones and Real Estate Mutual Funds (REMFs) to make the real estate more vibrant. Here are the excerpts.

N. Nandakumar, Former President, CREDAI Tamil Nadu & MD,Devinarayan Housing and Property Developments Pvt Ltd.

As the Real Estate Sector has undergone considerable stress over the past couple of years, it is inevitable to announce substantial credible measures in the Union Budget 2016 with a long term view of reviving the Industry.  If the Central Government’s vision “Housing for All” is to be accomplished, the primary factors those influence the affordability needs to be definitely considered.

Few of the key areas that the FM should look into are:

·         - Raising the limit on interest payment towards exemption from tax purview.

·         - Announcing current threshold for principal repayment as part of Income tax deduction.

·         - Debt restructuring for all project loans given to developers without levy of penal interest and additional charges.

·        -  Initiatives that would lead RBI to consider special rate of interest for the category of affordable loans for different cities and metros as against the present uniform home loan policy.

·        -  Review the service tax component and other taxes for affordable home projects together with permitting creation of special residential zones which would cater exclusively to the lower middle income group and middle income group and EWS sectors.

·         - Abolishing import duties on construction equipment which would lead to more automation thereby reducing the project times and cost.

·         - Provide tax incentives for import of technology for rapid construction / cost optimisation.

·         - Reduce the implications of environmental clearances by increasing the threshold from 20,000 sq.m to 150,000 sq.m which would save considerable time and also provide the mandate to the local approving authorities by suitably incorporating norms to be adopted and development regulations of each state’s urban bodies.

Anuj Puri, Chairman & Country Head, JLL India

The real estate sector, which is emerging from a painful and prolonged slowdown, is expecting favourable and growth-stimulating announcements from the government in its forthcoming Union Budget. One of the major issues, property investors and home buyers face, is delay in completion of projects by builders across the country.

The government should offer buyers financial protection from construction delays. The existing provision allows buyers to claim tax benefit upto Rs 2 lakh for under construction property which should be completed within three years. If the completion date extends, the benefits reduce to Rs 30000 and the burden of buyers multiplies as they have to pay EMIs along with the rent for their current accommodation.

Instead of offering them full tax benefits only from post-possession, home buyers should also enjoy the benefits right from the time they start paying interest on their home loan. This will ease their monetary burden considerably and help more home loan disbursements. Similarly, as per the present provision, if a buyer purchases an under-construction property from capital gains, he can avail exemption only if the construction is completed within three years. Since there can be delays due to various reasons, the construction timeline should be extended to five years.

Provide more tax saving on home loan and house insurance premiums. The current limit of Rs 2 lakh should be enhanced to Rs 3 lakh to benefit more. Also, tax concessions on house insurance premiums should be introduced to encourage users to insure their homes from various natural calamities.

Rise house rent deduction limit for self employed, who draw pays without an HRA component, from the current maximum deduction limit of Rs 2,000 a month under 80GG.

As construction industry takes lion’s share in environment pollution, the Budget should provide more incentives to boost green buildings for sustainable development. Since the cost-factor plays a major role, the government should absorb the extra cost and introduce incentives to encourage buyers/builders to go green.

Make additional allocation to develop infrastructure in fringe areas of cities and metros to promote affordable housing. Also, developers of affordable housing projects should be provided with cheaper finance options to complete the projects in time.

Remove the Dividend Distribution Tax (DDT) to encourage REITs.  There has not been a single REIT listing ever since the announcement last year. The presence of DDT deters people to venture into it. The government should do away with it in the Budget.

Provide clarity on GST implementation. For the revival of commercial real estate, implementation of GST is vital. The government should indicate specific date for its implementation. The retail and ecommerce sectors also seek earlier implementation of GST.

Arvind Jain, Managing Director - Pride Group

Every Indian plans to buy a home as and when it becomes financially viable for him or her to do so, and every year brings a new section of young Indians who enter the stream of employed and harbor this aspiration. For potential home buyers, favourable budget is one of the major decision-makers.

Positive changes in indirect and direct taxation policy for salaried class, as well as incentives on property purchase, can boost their financial confidence. Raising the income tax exemption limit will have positive impact on long-term saving and spending patterns. As property is the most favoured investment option for every Indian, the available of more disposable income can satisfy their aspiration. Similarly, tax sops on home loans will trigger more demand for homes and hence help revive the industry.

Parveen Jain, national president, NAREDCO

The top real estate body National Real Estate Development Council (NAREDCO) too has lined-up a set of proposals to be included in the budget for the revival of sagging realty sector.

NAREDCO President Parveen Jain emphasized the need of industry status to the real estate sector and infrastructure status to the housing sector to enable them to attract more investments from large companies and inculcate a sense of “corporate culture and discipline” which will benefit the economy in general and customers in particular.

There should be Special Residential Zones (SRZs) for low cost or affordable housing similar to Special Economic Zones (SEZs) in PPP model where incentives and concessions should be provided through a single window. This will increase the supply of affordable homes in the country.

Land parcel should be adequately increased to meet the demand of 18.78 million housing units for EWS and LIG categories. To achieve the target of 20 million dwellings by 2022, the land and bank financing should be made easy.

Similar to other developing countries, the Housing Finance Companies (HFCs) should get an access to long-term funds like Provident Fund, Pension funds and Insurance for infrastructure and housing development.

Also banks should hike their allocation for housing from the current 3 per cent to 5 per cent of their incremental deposits. This additional fund should be channelized through HFCs registered under National Housing Bank.

To lessen the burden on home buyers, the government should increase the tax limit to Rs 3 lakh from the present Rs 2 lakh of the interest paid on home loans on a self-occupied house.

The three years period for completion from the year of borrowing should be abolished as this will provide the much-needed impetus to housing sector.

The priority sector lending should be extended for home loans – up to Rs 25 lakh for rural, small and medium cities, Rs 35 lakh for metros and Rs 50 lakh for mega cities.

Rental income should be taxed at a flat 10% rate. This will bring down the rentals.

The government should give top priority to Real Estate Mutual Funds (REMFs) and Real Estate Investment Trusts (REITs) and make them free from income tax for at least for 10 years, both for non-residents and residents.

External commercial borrowing should be allowed in all spheres of housing and realty development, including SEZ projects, and FDI is allowed in all housing projects including the under construction ones.

The real estate experts believe that given the required impetus, the real estate sector has the ability to turn around the Indian economy because of its forward and backward linkages with other key sectors and huge employment potential. Will the Union Budget 2016 meet their expectations and revive the sector or disappoint them again with a lacklustre show? We have to wait and watch!

This article also published in Merinews.com

Parliament Lockjam: Will Real Estate Regulatory Bill Ever See the Light?

K Ramanathan

The tall climes of steady upward growth are notwithstanding, the real estate sector in India, which is the second largest employment generator after agriculture, has been in doldrums for the last few years owing to economic downturn with developers looking for a ‘miracle’ which can turn the tide for the sector in 2016.

There have been a few positive developments in the recent past such as opening up of Foreign Direct Investment (FDI), introduction of REITs and recently, the cabinet passing the much-awaited Real Estate Regulatory Bill which have created positive vibes among the real estate community.

Though the success of the first two initiatives can be gauged on the basis of investment scenario, which again depends on the economic growth, the enactment of real estate regulatory Bill as law is expected to add the much required impetus to the sector’s growth vehicle in the year 2016, feel real estate experts. 

N. Nandakumar, President, CREDAI Tamil Nadu & Managing Director, Devinarayan Housing & Property Developments Pvt Ltd.

The Bill will become a reality as the Government has given great impetus to Real Estate (Regulation and Development) Bill (RERA).  It is only a matter of time before the Rajya Sabha clears the Bill and consequent adaptation by the State Governments in setting up the Regulatory authorities.  The transition time for this would take about 9 to 12 months and thereafter which, implementation is expected to commence.

The year 2015 has been a turbulent year for the Real Estate industry in India.  The market conditions being extremely volatile would have cascading impact for the immediate future. The Bill will bring the much needed push to the real estate sector’s growth.

Anil Pharande, Vice President, CREDAI Pune Metro and Chairman - Pharande Spaces
The Indian real estate sector has historically been unregulated and unorganized with the later having the largest share of the market. It is in this segment consumers face a lot of problems due to unscrupulous practices followed by ruthless developers. 

The Real Estate Regulatory Bill was conceived to give assurance and clarity to home buyers through various means. After several changes, it has now overcome the important hurdle. As an enforceable law post clearance, it will have a far reaching positive impact on both domestic and global investors. Most importantly, the independent regulators will give homebuyers a strong sense of assurance.

Anuj Puri, Chairman and Country Head at JLL India

The Real Estate Regulatory Bill has seen several changes in the recent past. The latest one, which has made amendments as per a Rajya Sabha committee, is expected to pass in the Upper House in the current session. 

The Bill, if becomes a Law after President’s assent, will provide the much needed boost to the sagging real estate sector and have far-reaching consequences in terms of operating procedures and creating transparency in consumer redressal system. If it happens, it will be a year-end bonus for the struggling realty sector. 

The Bill will bring in much-required accountability and transparency in the real estate sector. It will also guarantee consumer right protection, thereby increasing customers’ confidence and also aid improved quality and timely delivery of projects.

Surendra Hiranandani, Founder and Managing, Director of House of Hiranandani

The Real Estate Regulatory Bill should act as a level playing field between home buyers, builders and authorities. Though we believe that the proposed Bill will bring in transparency and protect consumers’ interests, the lack of clarity on certain proposed measures is likely to add the construction costs through delay. 

This will make the housing projects more expensive thus buying homes will become a distant dream for middle-class and poor.

Setting up of state-wise regulators, compulsory registration of all residential and commercial projects, enhancement of power to grievances cells will help regulate the sector further by bringing in a systematic approach and transparency.

With opposition parties headed by Congress making tough for the ruling NDA to pass Bills in the Rajya Sabha by bringing in various issues to adjourn the Houses repeatedly, several important bills such as GST, Real Estate Regulatory Bill, Prevention of Corruption Bill, Whistle-blowers Protection Bill, and many more are waiting endlessly to see the light. 

Will these parties rise above the petty politics and help nation building by doing some serious works at the Parliament? Only time will tell!

The article also published in Merinews.com.

JLL Forms India Desk in Dubai to Boost Cross-border Realty Investments

Jones Lang LaSalle (JLL), the leading real estate investment and advisory firm, has announced the launch of its ‘India Desk’ in Dubai, a new medium aimed at facilitating cross-border investment between India and the GCC.

This new initiative will support GCC investors in managing their real estate investments and holdings in India while also advising investors and developers from India on entering the UAE and wider GCC markets. The desk is currently advising investors in Dubai to fund a development project in Mumbai, and is also shortlisting land acquisition opportunities in India for an Abu Dhabi-based group.

Anuj Puri, Chairman and Country Head, JLL India said: “We continue to see a significant interest from investors and developers from the GCC for India, and vice versa. By establishing this channel, we will ensure that our clients receive the same high quality of services that they are accustomed to across the globe.”

Commenting on this new initiative, Gaurav Shivpuri, Head of Capital Markets JLL MENA said: “India has had a long-standing partnership with the UAE, and it continues to play a huge role in the region’s economic success. As business interests resonate across borders, it is an opportune time to set up a platform to facilitate cross-border investments.”

The desk will be led by Swati Shanker, Lead – India Desk, who is based in Dubai and Amit Pande, Head of Private Wealth, India & Middle East,  based in Mumbai.