Tag Archives: Ashish Puravankara

A business leader with vision beyond market curve

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Gen Next Business Leader

As Puravankara emerges one of the brand performers of Indian real estate, Ravi Sinha meets Ashish Puravankara, Managing Director, Puravankara Ltd who has evolved as one of the best business leaders in the Indian real estate sector.

Ashish R Puravankara, Puravankara Ltd, Puravankara Projects, Bangalore real estate market, Provident Housing, India real estate news, Indian realty news, Indian property market news, Real estate news India, Track2Realty“When I first saw Ashish Puravankara on the eve of company’s IPO in 2007, I was not impressed, to be honest. Having known to Ravi Puravankara, I felt Ashish is another scion who is more of a brat than business leader to take over the reins from his father. But over the next four to five years, I was proved wrong. Ashish has in his DNA the same kind of business acumen as his father. What probably makes me feel that brand Puravankara is in the safe hands is the fact that Ashish has the uncanny vision that could foresee the future beyond the existing market curve,” says a financial analyst who does not want to be quoted.

This financial analyst is not alone who has changed his mind. After all, Ashish Puravankara is among the rare breed of second generation real estate entrepreneurs in India who could take forward the brand legacy. In a business where most of the business collapse has been due to the reckless or over-ambitious second generation, Ashish stands out shining.

Those who know Puravankara family are not surprised. After all, he grew up in a home where every dinner discussion was about business and opportunities, which would invariably veer towards brick, mortar and realty. He was mentored by a passionate and focused visionary father whose passion and perseverance made Ashish understand what it takes to build vibrant communities and enriching lives by offering families their dream of buying a home.

Top 5 business mantra  

Invest in understanding the customers

Deliver the right product within the promised time

Keep commitment of the brand to ensures success

Always carry integrity & trust with vision and determination

Focus should be on corporate governance, transparency, superior quality of projects and timely delivery 

Stepping stones 

“My entrepreneurial skills are a part of my heritage and I went through intensive specialized training. I used to always discuss real estate with my father when I was growing up. He has worked tirelessly to reach the heights that we see today. When it comes to carrying forward the legacy of Puravankara, it is indeed a decision that I took willingly and I am extremely happy that I did so,” admits Ashish.

Ashish is passionate with work and yet he believes in prioritizing his day to ensure he can give his best at work, and also spend quality time with family. He enjoys travelling with family and connecting with friends over the weekend.  Keeping fit is a top priority and always on his to do list as he is a sports and fitness enthusiast – a game of tennis or a good run is his passion. Did he ever feel like work culture & demands of this business would compromise his personal life/freedom?

“I do love my work, however at the same time I love my personal space as well. I believe that every individual should have a life outside work and this plays an integral part in living a wholesome life. Mixing work and my personal life is a big no-no for me. So, there is no question of my personal space being compromised by work or business,” he shares.

Thankfully, he never had to struggle with the first generation to change the brand ethos of the company. He always had an absolutely wonderful perception of brand Puravankara, and for him the name resonates ‘Aspirational Luxury’ and the subsidiary Provident Brand is about the ‘Premium Affordable’ space.

It’s my choice 

Key contribution: Commitment towards corporate governance, implementation of best business practices and pursuing the highest level of transparency

Brand philosophy: Emphasis is on putting people at the heart of everything we do and I call it “You Philosophy” 

Key contribution: Recognising the need for affordable housing way back in 2006

Market differentiator: Theme-based projects with aesthetic landscaping 

Turning point

Having done his bachelors and masters in business, stepping into the real estate space was a brand new experience. The journey has nevertheless been challenging for him and it did take a while to get comfortable with the nuances of the business. But it was the Purva Heights project which taught him about real estate. Working onsite gave him a grass root understanding of everything from launch to hand over. It was the listing of Puravankara as a successful brand in the midst of a troubled market which he considers as a turning point.

“After my initial stint with Purva Heights project I moved to Chennai where I was given the responsibility of setting up operations; having the sole responsibility gave me a well-rounded, grass root understanding of everything from launch to hand over. This followed with the successful positioning of Puravankara as a potential developer in the midst of a troubled market. I think this has been a turning point in my professional life,” he feels.

Ashish strongly believes in strong corporate governance, highest levels of integrity and transparency. He could visualize the need for affordable housing in the country way back in 2006. With this foresight, Puravankara set up ‘Provident Housing’ to cater to the aspiring mid income segment, having successfully delivered several projects across cities over the years. Puravankara’s innovatively conceptualized luxury theme-based projects have set a benchmark of creating homes around lifestyles, with world class landscaping and amenities.

“The launch of Provident Housing has been a pioneering step in the affordable space segment, as Puravankara was the first listed player to make the move in that direction. The success of Provident has inspired us to continue to be Thought Leaders in the industry, and revolutionize similar initiatives. We were instrumental in identifying the opportunities for Puravankara Limited and have also, implemented the best construction practices by the acquisition of new technology materials – focusing on technology as means to achieve quality in construction,” says Ashish.

Open letter to stakeholders  

Having achieved an impressive scale of growth, Puravankara is now well positioned to seize the vast opportunity and challenges in the real estate sector. Going forward, the only way a company can grow as a brand is by delivering good quality products on time. Our flagship brand Puravankara symbolizes ‘Luxury I can afford’ and the Provident Brand is seen as a leader in the Premium Affordable space. We have steadfastly developed these brands over the last 42 years

Innovation quotient

Ashish can be credited to make Puravankara the first developers to bring in FDI and capital investments through international sources to India via Keppel Land. Transparent prices and discounts at various levels through book building is his USP. Puravankara has been the first to use aluminium wall formwork, known as MIVAN technology. Puravankara has adopted MIVAN technology for super structure works and engineered doors for some of the projects resulting in seamless development and delivery of a quality product. Among the first movers to use the Precast Technology he also conceptualized working on a project to sell provident online completely in the next few years.

“Puravankara is a brand which stands for quality homes with the highest levels of integrity and transparency. Our strong USP’s are our theme-based projects which are characterized by the landscape and amenities which are of international standards. This has created a niche for the brand. In addition, our rich legacy, experience in execution for over 40 years and innovative approach in crafting living, have earned us the title of The Pioneers of Community Living”, he says.

A restless professional in him is constantly innovating and exceeding the milestones. He feels proud that company’s flagship project Purva Palm Beach has outmatched company’s previous signature project Purva Venezia. Purva Palm Beach project features a tropical beach resort which hosts a lagoon on approximately four acres, replicating the sights and sounds of the sea in Bangalore. These homes bring in the landscape of a beach and tropical backwaters to the doorstep. Similarly, another flagship Provident Sunworth has outmatched previous signature Purva Wellworth development which is a host to an integrated lifestyle district with 50+ amenities.

He has been instrumental in setting-up a “Centre of Excellence – Technical” which is focused towards helping the company to achieve product and delivery excellence. This team is constantly working on innovation, R&D, new construction technology, value engineering and global best practices in construction to ensure that we constantly deliver a high quality product to our customers.

“Apart from the above, we have brought in fresh thought and perspective to the business by driving a high performance culture, incorporating new age digital marketing initiatives and partnering with e-commerce platforms to bring in innovation. These strategic partnerships have enhanced customer experience, increased the sales performance of the Group and also set a precedent in the sector,” he adds.

Under his leadership, Puravankara has grown from strength to strength – having successfully completed many residential and two commercial projects. Currently, Puravankara has 24 million square feet of projects under development. The company has now laid out a detailed five-year plan to achieve annual sales of over 13.3 million square feet by 2020.

With the ever growing Internet penetration and accessibility of Internet through smartphones, Puravankara has been one of the early adopters of the online strategy in the sector to reach out to the prospective customers, through a robust website and a significant presence on relative sites. While the focus is on growing the e-commerce vertical substantially, the approach is not to ignore investing in the on ground in person experience for the customers.

Comparing brand reputation of the sector and own company  

We have emerged amongst the Top 5 developers in the country. Puravankara has pioneered several efforts and set benchmarks in the real estate sector. The Group is perceived as a Thought Leader with its expertise in the field, as a trusted source which inspires people with innovative ideas, turns ideas into reality and demonstrates ways to replicate success 

Business lessons learnt

Ashish believes evolving oneself and encouraging the team to evolve with new technologies over time has been crucial. Now the aspiration is to transform Puravankara into a performance-driven organization focused on delivery, quality and transparency. He has a vision to evolve into a lean and strong organization, by leveraging on expertise in the areas of land acquisition, design and innovation, sanctions and marketing. The plan is to outsource construction and focus on bringing in more efficiency, thereby ensuring timely deliveries. 

“From the very beginning I have put my heart and soul for the development and growth of Puravankara. There has been instances when with the changing times, it was important to evolve and embrace myself with new technologies to stay ahead of the curve. This includes initiatives in both construction methodology and consumers marketing that are making waves in this digital age.

After all, this young leader has been given mantle of a corporate real estate entity with sound fundamentals. The challenge for him is to take it to fast forward mode. In the year 1989, before he came on the board Puravankara was one of the first Indian real estate developers to set up an office in Dubai. Today, it has a presence in Saudi Arabia and Sri Lanka as well.

The company also has the distinction of being the first developer to get FDI in the Indian real estate sector through a joint venture with Singapore-based Keppel Land Ltd, the property arm of the 54 per cent government-owned conglomerate, Keppel Corporation.

Today a lot of developers are focusing on affordable housing with many projects being launched across cities. Puravankara pioneered affordable housing way back in 2006. Ashish has been able to implement these large projects in different micro markets in the South India. The Provident Projects have been planned to deliver more than 5000 – 6000 homes in each project. Under the able leadership of Ashish, there are specialized and dedicated teams that are working relentlessly towards the success of these projects.

Young outlook in sync with old brand philosophy? 

There was absolutely no need to change the brand philosophy; I have only built on the vision and the principles of the company and my father, Ravi Puravankara.We always look at the larger picture; our common vision and goals help us to stay focused on delivery and building an institution 

Future calling

Puravankara has now scaled up to India’s 4th most admired real estate brand, as per Track2Realty Brand X Report 2016-17. But the young blood is still not satisfied. In order to achieve aggressive growth targets over the next five years, the company under his leadership is in the process of reorienting resources with concrete measures focused around human capital management, project management and advances in construction technology. The vision is to usher better workflow systems, profitability and management of customer expectations.

“The strategy will be anchored around the 5 cities of presence (namely Bangalore, Chennai, Hyderabad, Pune & Mumbai) through two compelling brand propositions (Puravankara for Luxury & Provident for Premium Affordable). While the Group shall continue to retain the independent identity of these two brands, we will re-structure the internal employee teams to create a unified “Shared Services” employee architecture,” says Ashish.

To charter the next phase of growth, the business leader is getting the organization ready by implementing an “Organization Transformation exercise, “Vision 2020”. This growth strategy has been devised to bring in a sustained value creation for all the stakeholders. In order to increase company’s efficiencies and provide world-class customer services, he is evaluating the internal process flow and developing a robust system which will ensure faster delivery mechanisms.

The merging of key functions like sales, marketing, customer relationship management and technical would reduce costs, increase productivity and drive synergies across both brands. Well, in a market reeling under the slowdown and the developers wondering more with ‘till when’ there is a business leader whose vision is ahead of the market curve to focus on ‘how to’. That definitely indicates Ashish Puravankara is determined to fight out the odds and take the brand to the next level.

Puravankara enters Goa with ‘Adora de Goa’

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News Point: Adora de is Puravankara’ s first venture into hospitality assets; it is a mixed-use development under Provident Housing which includes Residences, a full-fledged Resort and Retail spaces.

Puravankara Limited, Puravankara in Goa, Puravankara Goa project, Ashish Puravankara, Adora de Goa, Goa real estate, Goa property launches, Goa affordable housing, India real estate news, Indian realty news, Real estate news India, Indian property market news, Track2RealtyProvident Housing, a 100% subsidiary of Puravankara Limited, India’s leading residential property developer today announced its grand entry into Goa with the launch of its maiden property ‘Adora de Goa’.

Located near Dabolim, the near 32-acre land with panoramic ocean view is located strategically in Central Goa, equidistant to both the lively beach destinations of North Goa and tranquil beaches of South Goa.

Provident Housing, a Puravankara company will invest about over INR 500 crores (land plus construction) to develop this affordable luxury housing project. The construction contract has been awarded to L&T.

The project is expected to deliver a Sales Volume of close to INR 1000 crores over the next 5 years or so. As part of its marketing strategy, the company has a dual strategy of attracting the local home buyers in Goa, as well as position it as a Vacation Home to those who live in other parts of India yet love Goa for what it is.

Unlike other developers, Provident Housing believes that its homes are specifically designed to attract local home buyers of Goa, with homes that have expensive features yet are inexpensively priced.

Adora De Goa is a unique residential project integrated with features of a resort that resonates with the nature and culture of the state. The property offers residential homes with world-class amenities, retail spaces with high street coffee shops, restaurants, spa and boutiques with unmatched hospitality & leisure retail experience. 

The group is entering into a management contract with one of India’s best-known Hospitality Business Group, The Park Hotels. A full-fledged hotel / service apartment is proposed to be built & operated by The Park Hotels, under its Zone by the Park brand. 

Ashish R. Puravankara, Managing Director, Puravankara Limited says, ‘We are very excited to re-enter the western market with Goa. Adora De Goa is a unique project as it offers an array of amenities catering to the entire spectrum of customers from local population to NRIs and investors alike.  Over the years there seems to be a trend amongst buyers to invest in Goa as the residential properties here come with competitive prices, offers scenic locations and spacious homes and buyers intend to invest given the tourism relevance of the state. But we also believe, our product will have a significant demand from the local home buyers in Goa and has hence been designed keeping in mind the local sensibilities.”

“Adora de Goa is a part of our commitment of developing over 10 million sq.ft of affordable housing projects across our important markets. Goa is the second launch in this pipeline first and first of our launches in Western India following our Bengaluru launch In January. The near future will see further launch announcements in the western region which will further strengthen our position in the region. Through all our projects, our endeavour is to offer quality luxury housing at an affordable pricing, and with Adora De Goa we want to make home buying an easy and affordable option for everybody who wants a slice of the happy state of Goa,” he adds.

Puravankara Limited has sketched an ambitious growth plan in November 2017 for the next 12-15months. With an investment of over INR 3200 croresthe company will develop over 15million sq.ft of land across Mumbai, Goa, Pune, Bangalore and Chennai. Of the 15million sq. ft, over 10 million sq. ft will be Premium affordable housing under their brand Provident.

The developer recently launched a premium affordable housing project Provident Park Square in Bangalore. Like Park Square, the Goa project will introduce buyers to the unique Quasi Book Building method, where the price discovery process is driven by data from fundamental ‘Demand-Supply’ metrics.

North Bangalore heading northwards in property launches

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Bottom Line: No other region in any other city would have attracted the developers with as many new launches and future planning as North Bangalore.

Century Artizan North Bangalore, Century India real estate, Puravankara Limited, Sobha Limited, North Bangalore property market, New project launches in North  Bangalore, New housing projects in North Bangalore, North Bengaluru property market, Infrastructure of North Bengaluru, North Bengaluru connectivity with airport, India real estate news, Indian realty news, Real estate news India, Indian property market news, Track2Realty The attraction for North Bangalore has been so profound for this location that most of the properties launched in recent times have been in North Bangalore only. It has definitely started overshadowing other hot property destinations like Outer Ring Road, Sarjapur and Whitefield.

Today, it can be vouchsafed that no other property region across the top 10 cities has made the developers as confident and bullish as North Bangalore. For example, other mass housing destinations like Rajarhat Newtown in Kolkata or Greater Noida West in Delhi-NCR have come up only because of the low price point.  But in case of North Bangalore the market is today dotted with all kinds of offerings, ranging from affordable housing to upscale luxury and villa projects.

What makes North Bangalore so attractive as a future property destination? Is it price point, future growth, land availability or there are more inherent strengths?

Ashish R Puravankara, Managing Director of Puravankara Limited believes it is a combination of all these reasons that any prudent developer would attest. According to him, in Bangalore there has been evidence that future growth is a bigger magnet as highlighted by the growth stories of Whitefield, Doddaballapur, Hosur Road and Devanahalli.

“The availability of large-scale land tracts complimented by superior connectivity to CBD and other business districts, and more than adequate social infrastructure are the reasons why developers are flocking to North Bangalore. Airports globally are epicenters of development coupled with good network of roads and the same is true for North Bangalore. The best schools and hospitals are located there with upcoming office supply, and malls make it an attractive proposition. Just to put things in perspective, 3000 acres of space has been trifurcated into three business parks – IT, hardware and aerospace park and this is ten times the size of Electronic City,” says Puravankara.

North Bangalore attractions

Kempegowda International Airport

Elevated Expressway connecting Hebbal Junction to Kempegowda International Airport

Rapid infrastructure development over the past years

Several malls, multiplexes, retail outlets, hospitals, schools and banks

Close proximity to Manyata Tech Park, Aerospace SEZ and other IT parks

P. Ravindra Pai, Managing Director, Century Real Estate points out that in the past, North Bangalore had very few attractions. Nandi Hills and the aero show mostly attracted people. Though there were large parcels of land available, most of the developers stayed away from them. The Bengaluru International airport started its operations in the year May 2008. Ever since then, North Bangalore has seen an upscale in its development.

“The landscape of North Bangalore has changed significantly in the past few years. The areas starting Hebbal to Devanahalli haves recently witnessed a splurge of residential and commercial development. There are also many planned projects – both residential and commercial which are at various stages of execution. Developers are also expecting progress in the infrastructure development, including hardware and tech parks which are coming up near the airport. Investors who are looking at residential properties can avail property at an affordable cost,” says Pai.

JC Sharma, VC & MD of Sobha Limited maintains that the prime locations of Bangalore have almost saturated and new residential micro markets are emerging and growing at a fast pace. One such micro market is North Bengaluru. This pocket of the city has gained tremendous boost with the Kempegowda International airport. Several malls, multiplexes, retail outlets, hospitals, schools and banks have made it a hotspot for real estate investment, especially for luxury housing.

“Close proximity to Manyata Tech Park, Aerospace SEZ and other IT parks gives the market the right momentum for further social and commercial growth. Additionally, the completion of the elevated expressway connecting Hebbal junction to the International Airport has made seamless connectivity to North Bengaluru. Some of the housing hotspots in North Bengaluru include Jakkur, Hebbal, Bellary Road and Thanisandra,” says Sharma.

Upcoming infrastructure

Expansion of Yelahanka Railway Station

Peripheral Ring Road

High speed Rail Link

Connecting Central Bangalore to BIA

Bangalore Metro Rail Phase 2 – BIA to Nagawara to Gottigere and Bellary Road

Hebbal – Devanahalli – Elevated Expressway

It is not just the residential projects that make North Bangalore a promising destination for future investment. Rather, the commercial developments and travelling distance to major job catchment areas is what is driving the buyers in this part of the city today.

With Manyata Embassy business Park, Karle Town Centre, Kirloskar Tech Park and Brigade Magnum already being job magnets in the vicinity, the region promises to emerge as a job magnet in future since many Multi-National Corporations (MNCs) have invested along this stretch due to availability of large land parcels and improved connectivity to the city centre and major tech clusters.

Companies like Shell, Airbus, Bombardier, Boeing, Tyco Electricals, Thyssen Krupp, AMADA, Starrag are expanding their presence in this micro market.

Ravi Sinha

What makes Bangalore attractive business destination?

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Bottom Line: Bangalore has the highest office space consumption per household that indicates its high demand as attractive business destination. 

Bangalore City, Bangalore real estate market, India real estate news, Indian property market, NRI investment in Bangalore, Housing demand in silicon valley, Track2RealtyOne of the fundamental reasons why Bangalore has been the prime demand driver of residential real estate is that the city has a thriving economic activity. It is, as a matter of fact, the leading city in terms of the absorption of office space and that is fuelling the demand for the housing. However, it would be necessary to understand the dynamics of business & economy of the city to understand what makes Bangalore such an attractive business destination.

An analysis by Track2Realty vis-à-vis the volume of office space consumption per household – not only in India but also internationally in London, Singapore, New York, Tokyo etc concludes that there is equilibrium when the office space consumption is around 60-65 sq feet per household. In India it is rather surprising that the ratio per household even in a city like Mumbai is 25 sq feet. Kolkata has a dismal only 14-15 sq feet office space per household. In Delhi-NCR it is again 20-25 sq feet per household.

Bangalore is the only face-saver in India where the absorption is 50 sq feet office space per household which means the volume of office space and houses being supplied have been in equilibrium. That is the reason why Bangalore is a realistic market.

In London despite of so much population pressure it still has 50-55 sq feet per household. Singapore has 60-65 sq feet per household; New York has 160 sq feet per household. Now since Bangalore maintains that equilibrium it is so attractive to the end users. Investors won’t be attracted unless they are very long-term player. 

A JLLI report also points to the fact that Bangalore has helped India debut on the ‘City Momentum Index’ (CMI) Top 20 list this year– an annual survey carried out by Jones Lang LaSalle globally. Reinforcing the city’s status of being one of India’s premier technology centres, Bangalore figures at No. 12 in the Top 20 technology-rich cities globally. The economic as well as real estate momentum has gained pace as tech-industry majors line up to enter the market, or expand, here.

This also raises a question as to whether Bangalore is slowly shaping up as the next financial nerve centre. Ashish Puravankara, Managing Director, Puravankara Projects believes the companies are also realising the cost of doing business in Bangalore. The average rental cost of office space per sq feet in Bangalore is about 45 rupees and that works well for the companies. Then from the customers’ point of view, the average cost of housing in Bangalore is 5,500 rupees and that works well for their workforce. So, it is all supporting each other and it is not that one factor alone is driving the market.

“If the prices have become unaffordable due to high demand in the city, people would have started looking at Chennai. I am not sure about the question of whether Bangalore will be the next financial capital but this city has tremendous economic activity. The reason why companies are setting up offices here is cosmopolitan culture, great weather and access to educated workforce. So, all this is adding on to the employment and that employment is creating the housing demand. I know very many people who have moved from Delhi or Mumbai for work; they have no connection or roots here,” says Purvankara. 

With the share of per household office space consumption being highest in Bangalore, the question is whether the developers in the city have been beneficiary of this by default or they have been part of making the eco system conducive. 

Joe Verghese, Managing Director, Colliers International thinks it all came together and the developers have been lucky also and have also played very valuable role.

“I don’t want to undermine the value of their trust quotient. It is a fact that investor today trusts these guys more than any other developer in any other part of the country. The reason why they trust is that these guys have been more professional to keep their word. I don’t see too many disputes between the developer and investor or between the fellow developers in Bangalore market,” says Verghese.

It can be conveniently vouchsafed that even beyond the issue of cost of doing business and the ease of doing business, Bangalore has the potential to attract the business houses better than many other cities. One reason is weather and the other is safety.

For example, four large companies in Gurgaon are today planning to shift to Bangalore post the earthquake tremors in Delhi-NCR. They are large MNCs with 3-4 million sq foot facility in Gurgaon. The kind of list of compliances that they have, including safety, they have started working on moving to Bangalore.

Thus, while office market is a true indicator of the resilience of Bangalore real estate, there are several underlying factors supporting that. Collectively, they make Bangalore shape up as arguably the best business destination in the country.

Populist budget & challenges of affordable homes

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Bottom Line: Contrary to the hype of affordable housing around the Union Budget 2017-18, many Indians across the cities are questioning how the budget has addressed the core issue of affordability.

Union Budget, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2Realty“Siddharth Chopra, a Mumbai resident has been glued to the television news channels during the live telecast of the Union Budget 2017-18. Like the rest of the Indians expecting the budget bonanza for the middle class affordable homebuyers, he is now rather confused as most of the analysts are debating how the Union Budget has addressed the pertinent issue of affordable housing.

“It is no doubt a populist budget that may earn goodwill to the government in terms of getting media headlines and garnering votes in the rural areas. But for people like us living in the metro cities, I wonder how the budget has addressed the concerns of affordable housing. The government might have redefined the affordable housing by increasing the size of the carpet area and giving it the infrastructure status, but that will address the concerns of the developers. What about the homebuyers?” questions Siddharth.

Like this confused homebuyers, many Indians across the cities are today asking this questions as to how the budget has addressed the core issue of affordability. Affordability for a common affordable homebuyer is more about the pricing than the size of the apartment. As per the standard definition of affordable housing, any house that costs more than 5 years of gross income of the buyer with the second simultaneous condition that the EMI should not cost more than 50% of the take home salary is not affordable.

Another definition often floated in the Indian context is that any house that costs approximately 20 years of rental value is affordable. The budget, if seen with the right context of affordable housing in the major cities of India, fails to answer these much-needed affordable requirements of the Indians.

Beyond symbolic relief for affordable housing

  • Increasing the size of affordable housing without reducing the price does not address the concerns of affordable housing
  • No relief in Service Tax, VAT is a dampener for affordable housing
  • No incentive for developers to reduce the pricing and make houses affordable
  • Budget fails to redefine affordable housing and low cost housing in terms of price point

The developers are nevertheless happy as the budget has addressed their concerns to a large extent. JC Sharma, MD & VC of Sobha Limited points out that the focus on affordable housing is laudable, as it has been accorded the infrastructure status which will have many ripple effects.

“Government’s proposal to take into consideration the carpet area of 30 and 60 sq. metres instead of built-up area of 30 and 60 sq. metres (as was the case earlier) of the houses is a welcome step, whereby 30 sq. metres limit will apply only in case of municipal limits of 4 metropolitan cities, while for the rest of country, including the peripheral areas of metros, limit of 60 sq. metres will apply. This will allow developers to plan their future projects within the 60 sq. metre carpet area, which will boost the housing sector immensely,” says Sharma.

Ashish Puravankara, Managing Director, Puravankara Limited believes the budget has spelt out roadmaps and allocations across various initiatives of the Central Government and the Finance Minister has done an excellent job of managing the expectations. According to him, revision of Built-up area to Carpet area is a great move to push for apartments in affordable housing category.

“The according of Infrastructure Status to the Affordable Housing will boost investment in this category. Extension of period for carrying forward the MAT Tax from the existing 10 years to now 15 years is a welcome move,” says Puravankara.

Kishore Bhatija, MD – Real Estate Development, K Raheja Corp says the government has been working towards boosting the affordable housing segment and the announcements made today are in line with their objectives. The infrastructure status to affordable housing sector is a quantum step for the development of housing.

“In addition to this, the tax relief for developers on unsold inventory is a positive step resulting in lowering the burden on their shoulders. The changes in income tax slabs are a welcome move which will leave more liquidity in the hands of consumers boosting consumption,” says Bhatija.

However, beyond the euphoria of the budget sentiment within the built environment of the Indian real estate, the fact lies that the budget has not addressed the key concern of affordability of the average homebuyers in the major cities of India. Moreover, there is hardly any substantial focus on job creation which has a direct linkage with the housing consumption in the cities, especially the affordable housing.   

By: Ravi Sinha

Puravankara, Snapdeal & JLL alliance offer residential rental returns scheme

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News Point: Three-way alliance between , Snapdeal and JLL to provide unique leased asset management programme.

Puravankara Projects, Purava Amaiti, Ashish Puravankara, Ravi Puravankara, South Indian real estate market, Bangalore property market, India real estate news, NRI investment, Indian property market, Track2RealtyAt a time when the built environment of Indian real estate is debating how to promote the rental housing, an alliance by  Snapdeal, Puravankara and JLL India have initiated an innovative scheme of Managed Residences Plan for their customers.

The Managed Residences Plan functions as a dedicated long term asset management programme for leased residential real estate, supporting customers with different risk capacities to drive better value from their investment.

The three-way partnership between Snapdeal,  Ltd and JLL India, will enable customers to purchase a ready-to-occupy apartment from Puravankara across Bangalore, Chennai, Coimbatore & Kochi and lease it back to Puravankara for a contracted term of 7 years.

As a part of the contract, Puravankara will secure pre-agreed monthly rentals to the customer and pay the common area maintenance amount to the building association. This ensures that the purchaser enjoys a hassle free, uninterrupted rental returns for 7 years, along with an additional rental appreciation benefit of 8.0% every year.

The buyers, however, have an exclusive option for premature withdrawal from the lease agreement, in case they choose to occupy the apartment or manage the rental process themselves.

Puravankara has appointed JLL as the Lease Manager, to assist it in further sub-leasing the residential apartments to tenants and provide leasing related services.  JLL also offers to provide lease management services to the purchasers beyond the 7 year period, in return for a service fee. 

How managed residences plan works?

  • Customers can  purchase  an apartment from Puravankara & lease it back to them for a contracted term of 7 years
  • Puravankara will secure pre-agreed monthly rentals & common area maintenance ensuring uninterrupted returns for 7 years
  • Additional rental appreciation benefit of 8% every year
  • JLL appointed as Lease Manager, to sublease the apartments
  • Purchasers have an exclusive option of early withdrawal from the rental programme

Speaking about the launch, Snapdeal spokesperson said, “Snapdeal’s real estate category has   received a phenomenal response from customers since its launch witnessing 300% year on year growth. We have forged alliances with some of the most trusted names in the real estate industry to offer a range of housing options for our ever-expanding customer base in a hassle-free and transparent manner. We are confident that the unique Managed Residences Plan will be an exciting proposition for our customers and help them maximise benefits from their home investment.”

, Managing Director, Puravankara Projects said “At Puravankara, we are always striving to meet the evolving needs of home buyers, and the benefits offered under the Managed Residences Plan are in tandem with our Group’s vision. While developers in the past have offered rent assurances for one or two years, it is for the first time a developer has taken a 7 year long term view on rentals. This indicates our bullish view on the long term real estate story in the country”.

Ashwinder Raj Singh, CEO – Residential Services, JLL India said “We at JLL India believe that the Managed Residences Plan is a convincing answer to the challenges investors face with regards to managing their real estate investments efficiently. Buying ready-to-move-in homes rules out uncertainties around quality and possession timelines, as purchasers buy what they see. Simultaneously under this Plan, rental income is guaranteed. We are excited to associate with Puravankara on this one-of-a-kind initiative, and are sure that this offering will appeal to both local and NRI investors.”

Offering 200 ready-to-occupy residential assets in the inaugural phase of its launch across Bangalore, Chennai, Coimbatore and Kochi with investment sizes ranging from Rs 35 lakhs to Rs 3.5 Crores, the bookings for Managed Residences Plan will be open exclusively on Snapdeal for 10 days, starting May 27th and allotment of units will be on a first come first serve basis.

The exclusive launch of the Managed Residences Plan on Snapdeal allows prospective purchasers to place an Expression of Interest online, along with a nominal reservation amount, post which the developer’s representative shall assist them in choosing a unit. Those who book online during this inaugural period shall also be eligible to receive an Rs. 25,000 Snapdeal Purchase Voucher.

View: If the projected plan of Managed Residences work the way it is conceptualised, it will invite more and more developers to adopt this model. The plan has the potential to not only solve the rental housing problems but also encourage the investors of commercial properties to shift into residential segment, as they have already burnt their fingers with assured return schemes in that segment.