Prince Foundations’ project bags twin awards

Chennai: Prince Foundations, a leading real estate developer in Chennai , has recently bagged the 'Best integrated residential & commercial developer of the year 2013' award for its project ‘Prince Village – 2’ at the Brand Academy Real Estate Awards 2013.

Besides bagging the top honour, Prince Village - 2 was also chosen as the 'Most affordable housing project of the year 2013' under the Chennai North category at the Chennai Real Estate Awards 2013 by Silicon India.

Brands Academy Awards identifies the best of Real Estate Industry in India across several categories that have risen to unprecedented heights in their respective geographies and felicitate them for their vision, achievements and the contribution to the growth of the real estate and infrastructure in the country, a release said.

Speaking on the achievement Ashwin Kamdar, Managing Director said, "It is the combined and consistent hard work and commitment by all concerned staff including the labourers, which has made it possible for Prince to scale this height in such short time. Over the years, we have grown to understand and fulfill the needs of customers belonging to every segment. We are committed and we promise to continually better in every aspect to achieve the highest performance standards in the areas of complete transparency, superior service levels and the best prices. These recognitions have and will energize us further in our continuous journey of promise delivered."

Prince Foundation Ltd was incorporated as a private company in February 2004. Over the years, under the guidance of Ashwin Kamdar, Chairman and Managing Director, Prince Foundations has grown into a real estate developer of repute with 6.5 million square feet of completed, on-going and forthcoming projects in both commercial and residential markets.

The other members of the board of Directors include Sharad Vasanji, Raj Kumar Kamdar and Asit Mehta. Entering into the 10th year of business, Prince Foundations has changed the skyline of Chennai cityscape. Prince Foundations has developed over seven residential projects and four commercial projects in the city.

A few notable among them being - Prince Courtyard - Egmore , Prince Highlands (Porur), Prince Village (Tondiarpet), Prince Info City (Kandanchavadi - OMR), Prince Info Park (Ambattur), Prince Techno Park (Thoraipakkam - OMR), etc.

Hot Real Estate Investment Destinations of Kolkata

Mid-to-long-term residential investment potential in some of the areas in Kolkata is good in terms of appreciation of capital values and resale purposes, says Surekha Bihani, Head – Transactions (Kolkata), Jones Lang LaSalle India.

Rajarhat- New Town

Rajarhat has several factors going for it in terms of real estate market drivers. It enjoys good road connectivity with Eastern Metropolitan Bypass and Belgharia Expressway connecting it to southern and northern parts of the city. 

Netaji Subhash Chandra Bose International Airport is close to Rajarhat and is well-connected to the submarket.
Currently, work on metro railway is in progress which can connect Rajarhat to the airport as well as to the southern part of Kolkata city. Work on another metro route is also in progress connecting Salt Lake with central Kolkata and Howrah.

This submarket has witnessed interest from various national and international developers such as DLF, Unitech, Tata Housing, Shapoorji Pallonji Group, Keppel Magus, etc. for residential projects development. In addition, regional developers like Shrachi Group, Belani Group, Shrishti Group and Bengal DCL are also present with projects.

Present Scenario

• Commercial: The average capital values for commercial spaces are in the range of INR 3,300-3,600 per sq ft and rents are within the range of INR 30-35 per sq ft per month. We expect the rents to increase by about 15% in the next 5 years.
  
• Residential: The average capital values and rental values are on the higher side in the planned part of New Town when compared to the surrounding areas of Rajarhat. The capital values in New Town are INR 3,300- 5,700 per sq ft and the rental values would be INR 9,000-15,000 per month for a 2BHK apartment (1,000 sq ft). The capital values in the surrounding areas are in the range of INR 2,500-4,700 per sq ft and the rents are within the range of INR 7,500-12,500 per month for a 2BHK apartment (1,000 sq ft).

Maheshbathan

Mahesbathan is at a location between Salt Lake Sector V and New Town. It enjoys the same connectivity features as Rajarhat. This location is coming up in a good way in recent past due its locational advantage.

Present Scenario

• Residential: The average capital values and rental values Maheshbathan are INR 4,100- 5,000 per sq ft.

EM Bypass- Park Circus Connector

EM Bypass and Park Circus Connector have good connectivity to not only the CBD but also the PBDs (Peripheral Business Districts) of the city. Currently, work on metro railway is in progress which can provide better connectivity to the airport. In addition, work on flyovers and widening of EM Bypass are under progress, with the BRTS system ready to be implemented in the near future. A lot of good commercial and residential projects are coming up in this area.

Present Scenario

• Commercial: The average capital values for commercial spaces are in the range of INR 9,000-11,000 per sq ft and rents are within the range of INR 70-80 per sq ft per month. We expect the rents to increase by about 25% by the next 5 years.
• Residential: The average capital values and rental values in this area. The capital values are INR 6,500- 11,000 per sq ft and the rental values would be INR 20,000-30,000 per month for a 2BHK apartment (1,000 sq ft).

Overall Outlook

The mid-to-long-term residential investment potential in these areas of Kolkata is good in terms of appreciation of capital values and resale purposes. Within a period of 3-5 years, social and civic infrastructure would also develop sufficiently to boost prices. Commercial properties, which are big ticket investments, would also be good over the long term of 5 years or more, with satisfactory appreciation of rents very possible.

The Legacy Of Bungalows In Pune Real Estate

Kishor Pate

Despite their unique characteristics, bungalows are becoming scarce in Pune, writes Kishor Pate, CMD - Amit Enterprises Housing Ltd.
 
Pune's residential real estate market has come a long way - especially in formats. From huts to 'wadas', and from there on from individual, owner-built units to modern apartments, the landscape has been changing constantly. Today, tall, modern apartment buildings reach for the skies all over Pune, jostling for space with commercial developments and older, smaller buildings.

However, none of the residential formats available now and in the past have had such enduring appeal as bungalows. There are good reasons for this. To begin with, Pune is a city with a unique blend of individualism and solidarity. The bungalow is the only format of housing that captures and caters to this spirit in every respect. This sociological ethos is evident everywhere in Pune's society, but is most is made concrete in the properties being maintained by the city's more prominent families - private and beautiful, they provide a safe haven for the inhabiting families while sending out a clear message of their social status.

Secondly, a bungalow is the only residential format which offers complete and unequivocal ownership - no part of it is part of anyone else's property. As such, a bungalow owner is a true 'lord of the manor'. There are no society rules to crimp one's lifestyle, and every part of a bungalow is a firm possession. This factor was aptly brought out by a renowned spiritual master from Coimbatore who held a discourse in Pune several years ago.

A man who had grown up in and among the highly individualistic homes that defined many South Indian cities back then, he had been invited to dwell in the home of one of his disciples in the city. This, he recalled, was his first encounter with the modern 'flat system'. He quizzed his disciple about the flat format, and was perplexed to discover that no part of the flat was really wholly owned. The walls were common to other flats, the ceiling was somebody else's floor and the floor was somebody else's ceiling.

Simplistic though it may seem, this evaluation is actually quite accurate. A bungalow is the only format of built residential real estate that is an owned asset in the truest sense.

Thirdly, a bungalow offers the ultimate work-life balance option for those who have made it in life. The bungalows of most of Pune's elite function as homes as well as workplaces for their owners. With enough space to separate work from family life without overlap, bungalows offer the highest form of luxury and convenience to business owners.

Fourthly, the security of a bungalow is matchless if it is part of a modern township in Pune. While isolated bungalows on the outskirts definitely face security threats, bungalows in avant-garde townships such as Bloomfield - a luxury residential project based on the Singapore theme - have the advantage of the highly efficient, yet non-intrusive security of the project. This unique blend of security, privacy and autonomy in bungalows is the result of Pune's rapid progress towards Western living concepts.

Finally, a bungalow offers the ultimate bridge between generations, allowing large families with members of all ages to cohabit is a perfect harmony of space, privacy and safety.

Despite their unique characteristics, bungalows are becoming very scarce in a city that treasures individuality as a tradition and a life value.  Because of the economy of scale that residential developers in Pune must pursue as a business model, most available plots are now being used for the development of apartment buildings. 

However, Pune still offers a limited number of exclusive bungalows to those who will not compromise on the right to privacy, total ownership and a lifestyle above and beyond the common denominators.

PuneVille: A Lifestyle Project In PCMC

Pharande Spaces, the leading deveoper in Pune, has recently launched an ultra-exclusive luxury residential township by PuneVille at Punavale. Being the latest real estate investment hotspot in Pune’s burgeoning Pimpri-Chinchwad Municipal Corporation, the project will be made on a 40-acre plot and will offer every luxury and convenience of modern life to its residents.

'This is not just a promise - it is a blueprinted guarantee.  PuneVille has been conceived to stand head and shoulders above the rest - not just first among equals, but quite literally without peers,' says Anil Pharande, Chairman - Pharande Spaces.

Not Just Designed – Perfected By Aedas

This unique luxury project has been conceived by Aedas, the global award-winning architects who have master-minded Venetian style-hotels in Las Vegas and Macau, as well as the Financial Centre in Shanghai and Marina Bay Sands at Singapore.

Aedas ranks second among the world's top architectural firms and will bring its full expertise to bear on PuneVille. Aedas is the leading international design firm which specializes in blending architecture, interior design, landscaping and overall project concepts into cohesive and stunningly compelling masterpieces.

Thanks to Aedas, PuneVille is not only a marvel of modern architectural and lifestyle - it is actually based on this firm's deep study of the location's geographic, climatic and environmental profile. This has given rise to a luxury living community which is not only the ultimate statement in modern living, but also completely in harmony with its surroundings - and with the needs of its elite inhabitants. In every respect, and without compromise.

Not Just A Project - A Lifestyle Masterpiece

PuneVille is a top-of-line luxury residential project. The first phase consists of 16 towers, each with 23 storeys of exclusive and uniquely crafted living spaces. The entire project has been designed with a luxury resort theme. Every unit is uniquely crafted, provided with the highest-quality imported fittings, fixtures and marble flooring as well the top Indian brands.

PuneVille will incorporate an international school, a state-of-the-art hospital and well as high-end commercial office spaces. This township is going to be among of the best in the country and incorporate every conceivable luxury feature, including a Olympic-size lagoon shape swimming pool, Club House, restaurant, landscape garden, tennis / multi-use court, lush lawns, a Joggers Track, a children’s' play area, a serene and spacious water bodies, and a walkway at a height of 22 feet, connecting all the residential towers to the central common amenities.

 Not Just A Location - An Answered Prayer

Punavale is the perfect location for such a unique luxury offering. It is in the very heart of the Pimpri-Chinchwad Municipal Corporation, and just one kilometer from Wakad. Punavale provides easy accesss to Aundh, Baner the University Circle and Hinjewadi, home to Pune's largest and most vibrant IT Park, as well as to Lonavala and Mumbai via the Expressway.

In fact, PuneVille is a mere five minutes' drive to the Pune-Mumbai Expressway via a specially constructed 700 meters access road. Likewise, Hinjewadi will be brought even closer via the proposed road which adjoins the project. Immediate access to the proposed 6-lane road to Baner will bring the Queen of The Suburbs, along with all its shopping complexes, hospitals and leisure outlets, within easy reach.

On a macro level, the PCMC region is poised for a quantum upgrade in its economic profile, with in excess of 6000 new white collar jobs to be created over the next few years, 36 new educational institutes coming up and major hospitality giants such as Taj Gateway, JW Marriot, Smart Inn, Le Royale, Lemon Tree, St. Laurn and Sayaji delivering the final vitalizing boost.

Not Just ‘Green’ – Completely Sustainable

PuneVille will be PCMC's most resounding statement from the perspective of environmental sustainability. The project has already been given a 4-Star pre-certification from GRIHA - one of the leading sustainability rating agencies in the country. With the rapidly increasing interest for 'green living' among Pune's most discerning home buyers, Pharande Spaces can do no less than ensure that PuneVille takes a leadership position in terms of 'green homes in Pune.  

In short, PuneVille will outshine anything so far seen in residential real estate in Pune - and indeed, the rest of the country. It is a tantalizing vision of a modern lifestyle transformed into magnificent reality, translated into ground realty. PuneVille is the very highest standard of urban living - now, or in the future, anywhere in India....

Centre launches initiatives to monitor housing schemes

To monitor the number of houses being constructed every year through various government sponsored housing schemes such as JnNURM and Rajiv Awas Yojana (RAY), the centre has launched Housing Start Up Index (HSUI) and a monitoring tool “Integrated Urban Poverty Monitoring System” (IPoMs).

While launching the initiatives, Dr Girija Vyas, Union Minister for Housing and Urban Poverty Alleviation, said, “HSUI is an index that will track the number of houses being constructed every year across the country. The Housing and Construction related activities in our country with its backward and forward linkages and with nearly 254 ancillary industries have huge multiplier effects on the economy. Hence HSUI would indirectly indicate the growth of National Economy itself.”

Housing Start Up Index is a joint initiative of the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) through its integral arm – the National Building Organization and the Reserve Bank of India.

The minister also disclosed that the results of the pilot index initiated in 25 cities would be released in the last week of this month or first week of February 2014.

In her address, she spoke about the various pro-poor housing schemes such as JnNURM, Rajiv Awas Yojana, Rajiv Rinn Yojana (RRY) and National Urban Livelihoods Mission (NULM). Dr Vyas also highlighted the Socio Economic Caste Census (SECC), developed by the MoHUPA, which is a first time initiative in the country. The minister also highlighted other achievements of her department such as Real Estate regulation Bill and the Street Vendors Bill.

The event culminated with the launch of the web-based MIS system Integrated Urban Poverty Monitoring System (IPoMS) for JnNURM & RAY. In order to closely monitor the submission of the Detailed Project Reports under RAY by the States, a web-based tool called the Integrated Urban Poverty Monitoring System or IPoMs has been designed by the Ministry. Through this tool, the implementation of the scheme can be expedited and tracked effectively. This will also ensure transparency and accountability in the implementation of the scheme.

In his welcome address, VP Baligar, Chairman and Managing Director, Housing and Urban Development Corporation Limited (HUDCO) briefly listed out various achievements made by HUDCO in the last one year. The function was attended by A.K. Mishra, Secretary,MoHUPA and several senior officers of the Ministry and HUDCO.

Korean investors shying away from India due to unfriendly policies

Excessive red tapism, land acquisition problems, poor infrastructure, complex tax policies, high licensing and inspection costs, protectionist labour laws and congested judicial system are the major bottlenecks forcing Korean investors to opt for other emerging markets in Asia over India, according to a study.

“With just 1.25 per cent share i.e. about $2.6 billion of Korea’s $215 billion worth total overseas investments till the end of 2012, India figures quite low on the list of favoured investment destinations for Korean firms evidently as investors from Korea have pumped in $39.67 billion in China, $14.18 billion in Hong Kong, $8.38 billion in Vietnam, $6.73 billion in Indonesia, $4.65 billion in Singapore, $3.95 billion in Malaysia and $3.81 billion in Japan,” noted a report titled ‘India-Korea: Eliminating Barriers and Increasing Investments,’ by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Though the bilateral trade between India and Korea reached $19 billion clocking nearly 20 per cent growth during 2012, it is relatively low compared to the size and structural complementarities of the two economies,” said the report.

“Korean FDI inflows have been growing at a very tardy pace as their companies seem to be keener to explore other emerging markets as many of them feel that if big company like POSCO can face difficulties, despite government assurances, it would be even tougher for smaller companies to survive in India,” highlighted the report.

ASSOCHAM has also suggested the government for speedy administrative processes for approval and clearance of big-ticket investment projects through fast track process, development of dedicated world-class industrial parks and supporting infrastructure like logistics, power and water supply, carrying out tax reforms like early introduction of goods and services tax (GST) and developing social infrastructure like Korean restaurants, recreational facilities and others.

“South Korean companies can forge business alliance with their Indian counterparts to become partner in infrastructure development as India plans to tap $1 trillion in infrastructure sector by 2017,” suggested the ASSOCHAM report. Moreover, there is vast scope to boost trade in services like information technology (IT), information technology enabled services (ITeS), communications, banking, insurance, education, broadcasting, tourism and healthcare.

The chamber study further states that automobile, infrastructure, nuclear and renewable energy, defence, small and medium enterprises (SMEs) and shipbuilding are some of the key areas with significant potential for investments and co-operation between India-Korea.

Besides, there is tremendous potential for India and South Korea to work together and explore possibilities of promoting third country exports by taking advantage of the various rationalised procedures and investment norms applicable to the Special Economic Zones (SEZs), added the report.

India may act as an ideal destination for Korean companies to relocate to counter growing labour scarcity and rising wages back home thereby taking advantage of India’s cost-effective human resources, it added.

Further, there is also scope for the two Asian giants to take leverage from complementarities in case of India’s growing knowledge-based service industry and Korea’s hardware and manufacturing-based economic structure. Besides, India’s capabilities in pharmaceutical industry, IT software and auto components indeed complement Korean competence in heavy engineering, automobiles, machinery and electronic hardware.

Also significant opportunities for bilateral co-operation also exist in the area of internet and e-governance.

Pre-launch Schemes by Developers May Vanish Soon

Pre-sales of residential units is a widely followed practice universally. However, in India, developers go a step further, offering units for sale at a prelaunch stage. During pre-launch, developers offer investors an opportunity to purchase residential units ahead of even procuring all necessary approvals, says Suvishesh Valsan, Senior Manager - Research, Jones Lang LaSalle India.

At times, land title due diligence or product-mix (retail, residential, commercial) considerations may still be underway. During pre-launch, developers apprise an inner circle of brokers/investors that a property not officially launched in the market is available for sale. While one imagines the news spreads through word-of-mouth or email, recently we have seen prelaunch announcements made on public hoardings and in newspapers.

For developers, prelaunch provides funds, which could be used for part-payment of land (or to acquire another piece of land) or meeting approvals related costs (which in India are usually higher). Also, developers benefit through test-marketing a project before spending time, effort and resources on approvals, due diligence and construction. Developers expect to sell 15-20% of units during prelaunch. 

For investors, prelaunch provides an upper hand in terms of apartment choice as well as price discount. Market observation suggests prelaunch investors could earn a discount of about 15% over the base price at the start of construction. In recent years, investors enjoyed healthy returns by holding from pre-launch until completion (usually 3-4 years) considering that over the past four years, the price of residential units pan-India increased by over 50% on average. The risk involved is related to approval delays, product-mix changes or project cancellation at worst.

In June 2013, India’s Group of Ministers (the Union Cabinet) approved the Real Estate Regulatory Bill, which prohibits residential unit sales by developers before obtaining all approvals. Though still not approved by the parliament, the Bill has aroused debate about the viability of developers’ current business practices and the Bill’s likely impact on land cost and housing affordability. 

It is pertinent to mention that the Indian central bank prohibits funding for land purchases to avoid land hoarding, and prelaunch was an alternative funding mechanism for developers. Thus, in its current form, would the Bill create funding constraints for Indian developers?

Let’s look at China as a comparison. The practice of prelaunch does not exist in China and banks are prohibited from making loans for the purchase of land use rights. However, capital markets in China are highly liquid and developers have many sources of funding including the corporate bond market onshore and in Hong Kong, project-level equity joint ventures with domestic or foreign funds and institutions, as well as lending from trusts and other non-bank financial intermediaries. 

In China, the Government is typically responsible for land acquisition, rehabilitation and resettlement, while developers purchase land from government with clear title. Since the land title is clear, developers can mortgage their land to acquire additional funds for construction work. In India, however, developers are responsible for land acquisition and rehabilitation, causing delays, manipulations and litigations.

Prelaunch leads to information asymmetry and, thus, should be abolished. Simultaneously, there is a need to provide practical solutions to the genuine funding needs of developers. Either the bank funding channel needs to open-up, or a better market environment must prevail to attract more private investors.