Tata Housing launches concierge service in Thane

New Delhi: Tata Housing Development Company Limited has launched lifestyle concierge services at Amantra in Mumbai as part of the newly launched "AUM Tower" comprising an exclusive 3 BHK residences starting from 1491 sq.ft. to 1530 sq.ft.

Tata Housing is the first company to launch this service in a residential project in thane whereas such services are provided in high-end luxury projects only.

Amantra's AUM Tower is designed for higher living, which is personified in the state of the art residences that celebrate life. The tower is 34 levels high and provides unrestricted views from all residences. The company has tied up with Les Concierges, who are pioneers in managing concierge programs with superior service delivery culture and ethics.

On this occasion, Brotin Banerjee, MD & CEO of Tata Housing said, "Our aim is to provide bespoke services and quality life spaces through continuous innovation to our most valued customers. Tata Housing is continuously reinventing itself so as to deliver 'a lifestyle and an environment' through all its projects. Hence, Tata Housing is giving a golden opportunity to their customers in Thane to experience such services which ease the lifestyle pressures, redefines the concept of luxury and also becomes the status symbol for many."

With this announcement, Tata Housing will offer their customers a bespoke lifestyle experience by ensuring 'your wish is their command'. Ranging from domestic to official work - all related jobs will be handled by the concierge service providers. From electricity bill payments to payment of taxes, booking train tickets, everything is taken care of by them.

Amantra is the tallest residential structure in Thane-Kalyan road and is also a green heaven with 80% open area. Designed by world-renowned architectural firm HOK of USA, Amantra's master plan incorporates an interesting interplay of high and mid-rise towers that weave in the elements of nature. The project offers an elevated jogging tower on the 14th floor.

Zingy Awards recognises best architects and interior designers

Zingy Homes, an unbiased platform that provides recognition and visibility to Indian Architects and Interior Designers, has announced the winners of its online awards contest ‘Zingy Awards’.

Under jury awards category, Pune-based DSP Design and Architect Pvt.Ltd got the Best Commercial Architect award while Bangalore-based Deep and Hana Architects received Best Residential Architect award. Aamir Sharma and Hameeda Sharma were adjudged as Best Commercial Interior Designer and Best Residential Interior Designer, respectively.

Under popular awards segment, Delhi-based N Goyal Associate has bagged Best Commercial Architect, while, Sonali Shah was chosen as Best Residential Architect.

Studio Interiors Infra Height Pvt Ltd was adjudged as the Best Commercial Interior Designer, while Shahen Mistry was selected for Best Residential Interior Designer.

The winners were selected by the talented and well recognized Jury panel comprising Karsten Gori and Uffe Leth from Denmark, David Hotson from US and Royston Wilson from Australia who are award winning professionals with years of experience in design and architecture, a release said.

They judged the entries on specific parameters viz.; design excellence and suitability to challenge, creativity and originality, functionality, problem solving ability, sustainability, aesthetic appeal and last but not the least-execution and finish quality.

The popular awards were based on the votes polled by each architect and interior designer. The projects were open for public voting till midnight of November 21, 2013.

According to Preeti Markan, Founder and CEO of Zingy Marketing Ventures Pvt Ltd, “Interior designers and architects have always influenced the way a community lives. They work hard all their lives to materialize the dreams of tough to please clients, striving hard to bring in a lot of creativity and innovation while walking the tight rope of shoestring budgets. Yet, there is not much public recognition or adulation for their contributions. We often instantly recognize the painter behind the awe inspiring painting or the designer who created the fab looking wedding trousseau, then why do we not recognize and honour the people who design beautiful spaces for us to live & work in?”

PE investments in Indian realty sector go up to 26 per cent

Chennai:  Despite unfavaourable investment scenes, private equity (PE) investments in India’s real estate sector has gone up to 26 per cent recording Rs 4,716 crores during the first three quarters of this fiscal compared to Rs 3750 crore received in the corresponding period last year. 

According to global real estate consultancy firm Cushman & Wakefield’s latest report on private equity (PE) investments in real estate, the healthy increase was primarily due to a rise in investments in ‘leased income generating’ office properties by institutional investors. 

The report also noted that slow pace of growth in the real estate sector with net absorption in offices down by 15% and vacancies increasing, subdued residential sales, slower GDP growth, inflationary pressure and volatility in Forex and stock markets did not alter the faith reposed by the investors on real estate market.

Apart from offshore funds, domestic capital allocated for income generating office properties is also being raised and deployed, the report said.  Terming the announcement of draft REIT regulations proposed by SEBI, as positive development, the report said, this would create a secondary market for office properties and ensure greater retail participation in an organised institutional format. It will also positively impact institutional investments in development of non-residential projects – which has been minimal for the last few years – primarily due to exit concerns. Even listed companies and most professionally managed real estate companies are currently plagued by high levels of debt and liquidity issues; the BSE’s Realty Index is low. 

Commenting on the report, Sanjay Dutt, Executive Managing Director South Asia, Cushman & Wakefield said, “Despite a slowdown in the local real estate market, funds remain committed to India as a top investment destination with overall private equity investment only expected to increase especially in income yielding assets. Both domestic and foreign funds with a proven track record have become increasingly successful in raising capital. With improving sentiments, deal momentum in the real estate sector is expected to increase in the coming year. Further, the move by SEBI to begin its consultation process for bringing in REITs has brought in a slight sense of optimism in the industry as developers and even funds will be able to offload some of their assets and raise much needed funds/ get much awaited exits and the sector develops funding practices currently being followed in more mature economies.”

Approximately 65% of the overall investment during the year was witnessed during third quarter at Rs 3,078 crores. The total value of investments in the office segment for the first three quarters of 2013 was recorded at INR 2,476 crores, which is more than double that of the same period in 2011 and 2012. 

Investor interest in the leased office buildings has been increasing over the past few years with the sector contribution 53% of the overall investments in 2013 compared to 36% and 30% in 2012 and 2011 respectively. There is a clear preference for investments in leased office spaces with over Rs 7,667 crores invested in the segment since 2011. 

The total value of investments in the residential segment for the first three quarters of 2013 was recorded at Rs 2,240 crores, a drop of 11% compared to the same period last year. The residential sector due to its sheer size has been a major contributor to overall investment activity but has not witnessed any substantial growth over the last three years. 

However, in the residential segment though launches for the first three quarters of 2013 are 5% higher than the same period last year, residential unit sales have been somewhat subdued. Given the large demand-supply gap that exists in India’s housing sector funds are still keen on exploring any attractive investment opportunities.  

Residential asset class is a preferred investment, though more advanced projects with approvals and initial sales are preferred over land acquisition deals. Most of the deals are structured equity or structured debt deals, with a preference or guarantee of minimum return and capital.

Other asset classes such as retail and hospitality are witnessing weak investor interests as both are currently plagued by high inventories and sluggish demand. 

The total number of deals in the first three quarters of 2013 declined to 21 down from 27 during the same period in 2012 indicating an increase in average deal size by nearly 62% to INR 225 crores (USD 36 million).  

 Bengaluru witnessed the highest level of announced investment value in 2013 at RS 1,979 crores (USD 317 million), an increase of 79% compared to the same period last year. This was due to a commitment by a sovereign fund into a platform focused on leased office assets. Pune also witnessed an increase in transaction volume in 2013 by over three times compared to 2012 with investments of Rs 780 crores (USD 124.9 million). Transaction volume in NCR increased 20% in 2013 to INR 612 crores (USD 98 million), all of which was in the residential asset class. 

Mumbai, which traditionally attracted the maximum investments in the country, was the only city to witness a decline of 43% in the total volume of deals to Rs 720 crores (USD 115.3 million) for the first three quarters of 2013. However, investment activity in the city is expected to increase with a few large deals entailing an investment of Rs 2,000 crore in office assets currently in the pipeline.

Commercial realty segment to remain subdued: CBRE

New Delhi: Demand for commercial real estate is likely to remain subdued in the medium term as corporates continue to be in a consolidation mode while excess supply may put pressure on capital and rental values, property consultant CBRE said today.

The economic downturn has subdued office and retail markets that has affected sales and put pressure on capital values as well across major cities, a PTI report quoting CBRE South Asia Chairman and Managing Director Anshuman Magazine having said in a statement.

In residential segment, he said the buyer sentiments have remained largely cautious due to relatively high price points and sticky borrowing costs, amid an uncertain economic climate.
He said that investment has slowed considerably across segments resulting in weaker construction activity in most cities.

Giving the outlook, Magazine said: "Against the current economic and political backdrop, demand for commercial real estate is likely to remain subdued in the medium term".

"Corporates are expected to continue their focus on optimal space utilisation and cost cutting measures, and transaction activity is expected to be mainly restricted to take up of small and medium sized space," he said.
Magazine was also of the view that supply backlogs could exert pressure on rental and capital values as well. 

He, however, said that recent indications of revival in the global and domestic economy should contribute to better performance and improved economic prospects towards H2 2014.

In the office space segment, CBRE said the demand declined during the third quarter of 2013, because corporates focused on consolidating and downsizing their space portfolios, and/or relocating to peripheral markets.
Office space absorption in the top seven cities fell by about 14 per cent in July-September of 2013 at over 6 million sq ft compared to over 7 million sq ft in previous quarter.

Absorption of prime office space in full 2012 calendar year of top seven cities stood at over 25 million sq ft, while total absorption is over 19 million sq ft in the first three quarters of 2013, according to CBRE.    While subdued demand and high vacancy levels have led to rental stability in most markets in recent months, CBRE said weak absorption numbers has resulted in a decline in office space supply over previous quarters, weighing in on future investment plan.

To boost commercial real estate segment, Magazine pitched for reforms in areas like slow project approval processes, supply bottlenecks, opening up key sectors like retail to FDI, and infrastructure creation through PPP projects.

"Looking beyond the results of the upcoming General Elections in April 2014, the economy will not only need a clearly defined vision and competent economic management, but will also require proactive, industry-centric decision making along with sweeping reforms in a number of areas to drive faster growth," he said.

Robust growth for hospitality sector: NCR, Mumbai to give 27000 keys by 2008

 Chennai: Braving the economic slowdown, the hospitality sector in Mumbai and Delhi-NCR together will produce 26,970 keys in the next three to five years.

According to ‘Asia Hotels View 2014’ by Cushman & Wakefield, the world's largest privately owned real estate firm, over the next three to five years Mumbai will have 5,919 additional hotel rooms, while NCR will give 18,064 keys.

Expansion in NCR will see the presence of brands such as JW Marriott, MGM Aloft, St. Regis, Conrad Hilton, Radisson Blu, Ibis and Lemon Tree, while for Mumbai, JW Marriott Sahar Airport, Conrad Hilton in Juhu, Radisson Blu in Powai, IBIS in CST Mumbai and Lemon Tree are some of the possible addition in the coming months.

Akshay Kulkarni, Regional Director of Cushman & Wakefield's Hospitality sector group across South Asia and Southeast Asia said, “He further adds, “There seems taken comparatively higher growth in demand in the NCR region against Mumbai and while the inventory in NCR is higher than in Mumbai, occupancy shows growth because there is pent up demand being captured by the unorganized sector, which will move to the branded section in NCR. The delay in the inventory coming in NCR is also going to support growth of ADR. In 2014, the second half should see improved business activity as well as inbound travel due to elections and stabilization of global financial health. Improved perception of safety and security and stabilize political climate should also benefit in enhanc­ing the business volumes.”

Mumbai

As of 2012, the total organised inventory accounted for over 14,000 keys. The inventory is primarily dominated by the luxury segment with 33%, followed by 26% in the mid scale segment, 21% in the budget segment, 12% in the upper upscale segment and 8% in the upscale segment. Five new hotels opened for business in 2012, adding a total of 1,193 keys to the existing room supply, namely Sofitel Mumbai in BKC with 300 keys, Shangri-La (to be rebranded) in Lower Parel with 390 keys, Ginger in Andheri with 116 keys, Country Inns and Suites with 94 keys, and Ibis and Royal Tulip in Navi Mumbai with 196 and 97 keys, respectively. 2013 has seen the introduction of only Residency Sarovar Portico in Malad with a total of 71 keys. The majority of the demand is driven by the business and transient segment, with an almost 70% share of total demand. In 1H 2013, Mumbai’s occupancy is estimated to have increased by 2 percentage points to 65% over.

The year 2013 is set to see some major infrastructure facilities transform Mumbai. In particular, the new airport terminal is expected to start operations soon and should be able to handle up to 40 mn passengers annually. Further improvements include the proposed Mumbai Metro, which is expected to be operational beginning with Line 1 (Versova-Andheri-Ghatkopar Corridor) by October 2013.

Hotel supply increased in 2013 and is set to continue to grow in 2014. Next year, we would expect to see major additions to the city’s hotel inventory, such as JW Marriott Sahar Airport with 525 keys, Conrad Hilton in Juhu with 275 keys, Radisson Blu in Powai with 335 keys, IBIS in CST Mumbai with 196 keys, and Lemon Tree with 298 keys. With further increases in supply, ADR and AOR are likely see a drop in the short-term. In fact over the next three to five years Mumbai will have 5,919 additional hotel rooms. The average occupancy rate will be 61% while the average daily rate will be Rs 8,906 approximately

NCR

NCR currently has over 23,500 units in the organized and unorganized segments, combined. Seventy-five percent of total units are in the organized sector. Micro-market wise, NCR has 65% of its total organized inventory in Delhi, 21% in Gurgaon, 5% in Noida and Greater Noida, 3% each in Manesar and Ghaziabad, and 2% in Faridabad. In 2012, the total inventory went up by 9%, that is, approximately 1,500 units entered the market last year. 

Prominent new entrants were Park Plaza by Sarovar Hotels and Kempinski Hotel in Delhi, Pullman Hotel and Double Tree by Hilton in Gurgaon, Radisson Hotel in Ghaziabad and Savoy Suites in Manesar.

Of the total NCR hotel inventory, the luxury segment contributes the highest share of about 34% of the total inventory, followed by midscale with 30%, upscale with 16% and upper upscale with 12%. The budget segment has the least contribution, amounting to only 8% of the total inventory. 

NCR has a robust pipeline of upcoming hotels with approximately 18,000 keys expected to enter the market over the next five years. The majority of this new supply is expected to be in Delhi (34%), given the development of the Hospitality District near the international airport. 

The opening of a number of new hotels in this area has been delayed by a few months because of safety and security concerns raised by the Airport Authority of India (AAI). Noida has a share of about 25%, Gurgaon with 21%, Greater Noida 13%, Manesar 4%, and Faridabad 3% of the total upcoming supply in the NCR.

Historically, NCR has been a lucrative market for most hospitality players, which can be ascertained by the quantum of inventory – existing and upcoming. The Hospitality District at DIAL 12 will have an influx of fresh inventory in NCR in the second half of 2013, after obtaining clearance from the AAI. A total of over 4,200 keys are expected to open in the next five years in the Hospitality District alone.

Delhi, the capital city of India, has outgrown its boundary as an agglomeration to its suburbs to accommodate its increasing population and livelihood. However, the demand of hospitality accommodation remains strong in the prime areas in the city. As the availability of land continues to be a constraint in these areas, this has triggered hotel development in micro-markets like Noida, Gurgaon and Faridabad.

ADR and AOR might experience further decreases in 2013, given the economic instability in the light of the impending General Elections due in 2014, coupled with the strong pipeline of new hotel inventory entering the market. The stiff competition, together with lower AOR, is likely to put downward pressure on ADR this year. 

With such a scenario, budget and midscale segment hotels are likely to perform better than the upper upscale and luxury hotels, given their flexibility to play in a lower price segment. In fact over the next three to five years NCR will have 18,064 additional hotel rooms. The average occupancy rate will be 61% while the average daily rate will be Rs 8,906 approximately.

Despite the recent rout in Asian financial markets and cuts in GDP forecasts, long-term growth prospects for Asian economies remain structurally healthy and a repeat of the 1997 financial crisis is unlikely. Market-wide Asian hotels have had positive RevPAR growth in 2012, although at a slower pace compared to 2011. So far in 2013, hotel performance remains a mixed picture of growth, consolidation and decline in different markets.

Real Estate Investment Advice: Bungalows Versus Flats

Arvind Jain

Assuming that one has the financial wherewithal for this to be an option at all, the question of whether to invest in a bungalow or a flat is indeed pertinent. As always, location plays an important role. In an established area of a large city like Pune, a bungalow costs a lot more than a flat. This means that the rental market for such a property shrinks proportionately, according to Arvind Jain, Managing Director – Pride Group.

However, the income segment that remains can definitely afford to rent such a unit, so demand would remain more or less consistent. Moreover, bungalows in established locations have a high chance of attracting long-term corporate leases.

• Bungalows – Established Vs. Upcoming Locations

Investing in a bungalow in an upcoming location usually involves a lower (though still sizeable) capital investment. The rental yield is lower, but the size of the rental market for such a property increases proportionately. Investment in a bungalow in such a location can make a lot of sense if the area, despite being non-prime, is still well-connected to some of the city’s major economic drivers, such the airport or employment hubs such as IT parks and manufacturing zones.

One major advantage of investing in a bungalow in an upcoming location is that it will gain steadily in value as the area’s profiling in terms of social and civic infrastructure improves. However, regardless of location, the maintenance costs and property taxes involved in a bungalow are a lot higher than those of flats. This long-term financial implication must necessarily be factored while investment in a bungalow is considered.

• Share Of Land

If we set the considerations of location, ticket size and potential rental yield aside, the primary advantage of investing in a bungalow rather than a flat is that one secures more land. In any location, it is the value of land which determines the value of built-up property. Unlike a flat, a bungalow and its compound lock in a significant piece of tangible land. This fact gives a bungalow a higher value in real estate terms. Also, the investor must have a suitably long investment horizon and not be looking for short-term returns.

• Investing In Flats

Flats offer a slightly different value proposition than stand-alone units such as bungalows. In the first place, the share of land that is legally allotted to each flat in a project is much lower than that of a bungalow. The primary value of a flat lies in the space that it occupies, which is why larger configurations such as 3 and 4 BHK attract higher rents.

As before, location will dictate the ticket size as well as rental income. The rental market for flats is much larger than that of bungalows, so finding tenants is easier even if one factors in a certain degree of tenant churn. However, one must ensure that one is investing in a flat whose size dovetails with the median income profile of the location. The highest demand will always be from the locality itself, and from people working in offices and industries close to the area.

Buying a flat whose size puts it out of the largest local demand profile can be a self-defeating and costly mistake. Generally, the 1, 2 and 2.5 BHK configurations are the safest investment bet in any area, since the rental demand for them is always the highest. With ultra-premium flats as a logical exception, maintenance and property tax for apartments is significantly lower than for bungalows.

• Flats – Established Vs. Upcoming Locations

In terms of location, investors into flats must consider all the pertinent factors carefully. Flats in established locations are costlier and involve a higher capital expense. They will attract rental interest from a segment of higher economic profile. However, it must be borne in mind that capital appreciation of flats in centrally located projects is slower than in many upcoming areas. This is because high-end locations tend to hit an appreciation plateau, which can persist for long periods.

Upcoming locations appreciate faster because their market viability is being enhanced with increasing accessibility as well as social and civic infrastructure. They attract more people, since any city’s growing population tends to move into areas which are affordable. For that reason, emerging locations also tend to attract a lot of commercial establishments – which further boosts the residential segment.

To ensure that growth factors such as assured infrastructure and social amenities are indeed locked into place, investors into apartments should ensure that they choose projects that fall within the local municipal limits. If a project falls outside the city's corporation limits, there is no guarantee that the location will receive proper infrastructure such as roads and regular water and electricity supply. Without such infrastructure, a location does not appreciate – thereby rendering it unsuitable for smart property investment.

Finding perfect location for property investment

When it comes to profitable investment, property is still one of the most lucrative avenues. Profitability is not a given, however – investment property must make sense from a returns-on-investment point of view. In that respect, one must pick from available options carefully, says Kishor Pate, CMD – Amit Enterprises Housing Ltd.

To judge whether investment property will deliver the goods in the long run, one must consider many variables. Paying attention to these will maximize resale value in the future. However, the first aspect to factor in while buying an investment property is location. Location, as professionals know, is the most decisive factor in property investment.

What makes the perfect location? One should not judge only by the actual site of the investment property, or even its cost. Land and property rates differ from area to area, and this is an important consideration as far as the resale value of an investment property is concerned.

The general state of the locality is important in terms of overall investment value. Next, proximity to major highways and roads is desirable for investment property, because ease of travel and supply of essentialities adds to a property’s value. The ideal location for a residential investment property would be somewhere towards the centre of the residential neighbourhood, where large vehicles do not have access.

While judging the locality of a residential investment property, the existence of proper communal infrastructure should be ascertained. Facilities such as shopping and grocery outlets, schools, public transport, medical facilities and means of entertainment should be close at hand.

The worth of a constructed residential property is not decided merely on the basis of land value, but also on the surrounding infrastructure that adds to the value of a location. The value of an investment property will appreciate over the years only because of the overall conveniences the property and its location will provide to future buyers.

For a commercial investment property, proximity or ready access to local business hubs works best. The existing mix of business occupiers plays a vital role, as does the presence of business-centric facilities such as telecommunication services, a post office, public transport, etc. A commercial investment property that is also close to a residential hub is ideal, since this means that there is balanced real estate market growth in the locality.

While buying an investment property, one should remember that property investment should be based on long-term profitability objectives. Speculative property investment harms the sector and can often lead to personal financial loss, especially if one has not judged the market properly.