Tag Archives: Policy Advocacy

Policy advocacy contradictory in Indian real estate

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Bottom Line: Track2Realty observes that unlike many other matured & emerging sectors, Indian real estate has completely failed on policy advocacy. The local nature of the business, added to the fact that vested interests dominated the industry bodies, defeated the very purpose of the policy advocacy. The casualty has a direct impact on the professional practices in the sector. 

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, land acquisition bill, parliament of india, Government of IndiaDuring the CREDAI national convention few years back, a miffed real estate seemed to settle scores with the then Union Urban Development Minister Kamal Nath. Displaying stiff opposition to the proposed real estate regulator, the builders’ body went critique to say it is not actually a regulator bill, but builders’ harassment and public amusement bill.

The minister sitting on the dais kept smiling over the CREDAI allegation that after the implementation of the bill, the face of the sector is known only either to the God or to the minister. Kamal Nath, however, took no time to hit back on the same platform when he said that the realtors have got into the habit of living in an era of boom and anything less than boom is cried hoarse as doom and gloom.

Much water has flown since then but it seems when it comes to policy advocacy real estate and the policy makers are still at loggerheads. Realty body proposes and the government disposes on occasions more than once and policy advocacy is something which, if happens at all, is always on a one-on-one basis depending on the developers’ individual clout and personal rapport with the minister or official concerned. Sadly, most of such policy advocacy is actually back channel lobbying for the company concerned, with hardly any short term or long term impact over the fortunes of the sector.

Challenges of policy advocacy

Policy advocacy challenging due to localized nature of business

Lack of consensus among the developer biggest roadblock

Larger developers get what they want through back channel negotiations

Blame game of developers, instead of engaging with policy makers, also responsible for policy advocacy failures

In an eco system where most of the contentious issues have not been settled over the years, one naturally wonders whether there is any communication by the stakeholders concerned beyond the media eyeballs. Yes! There are two notable builders’ bodies called Confederation of Real Estate Developers’ Association of India (CREDAI) and National Real Estate Development Council (NAREDCO) that lobbies with the government for their interests but there seem to be a clear realization by the government side as well that these industry bodies are lobbying for their vested interests than policy advocacy in the right context.

The problem is that asking for industry status, the sector does not want elements of accountability that comes with the package. Quite opposed to the very idea of regulation, even after self-regulatory attempts didn’t work out, realty does not evoke confidence at the policy level and often ends up being at loggerheads with the government. Though policy advocacy is very much desirable in the sector, it is yet so debatable that the stakeholders have failed to evolve a consensus over its issues and agenda.

There are many within the sector who are forthright in accepting that unlike policy advocacy adopted collectively in other industries to create a level playing field, in real estate the business methodology does not support any such move since the larger players in the fray are too big for the boots of industry bodies concerned.

For example, when the CREDAI wanted to throw its weight to sign the code of conduct a few years back, it ended up with leading players’ indifference and eventually expulsion of three giants, DLF, Hirco and Hiranadani from its Karnataka chapter. No one is sure till date how many of its 11,500 odd members spread across 105 cities in 22 states have actually signed it. More importantly, whether they follow any uniform code of conduct in dealing with the homebuyers even after signing the CREDAI document?

The micro market focussed business with myopic vision makes the policy advocacy a distant dream for the Indian real estate. Even prior to the Union Budget when the business bodies of other industries lobby it hard to get the best deal for them, realty ends up with endless debate only to be left sulking in the end. In the past, industry bodies have made some blatant demands of the government to bring about certain reforms in the sector. However, most of these demands were put forth without having in place the adequate enablers of change, which could address the level of confidence needed in the sector by the government, financers and consumers alike.

Sachin Sandhir, Global Managing Director-Emerging Business of RICS believes it is absolutely imperative that stakeholders engaged across the sector take adequate steps in order to reduce its risk weightage in eyes of the lenders, improve credit worthiness to mitigate the lack of liquidity, and in the process instill consumer and investor confidence and arrive at a common consensus to drive the industry in a better and profitable manner – in the process being viewed favourably by policy makers.

“A common view from all quarters within the real estate and construction sector is acquiring the long demanded ‘industry status’ for the sector, along with an ease in accessing capital. While there has been consensus on these issues for long, the views and opinions in enabling these factors of change to find a place within the industry are varied across stakeholders. In my personal opinion, in order for the sector to acquire industry status and for capital to be more accessible, there is a prevalent need for the realty sector to undergo a much needed ‘image makeover’. It is imperative that the sector improves on its global transparency ratings and creates avenues for skilled manpower to be employed and retained in the sector. Should we choose to go down this route, we will attain a favourable response from policymakers, investors and stakeholders alike,” says Sandhir.

Arvind Nandan, an independent property consultant, is candid enough when he says any talk of policy advocacy is meaningless unless the government is a willing party to come on board for dialogue and discussion. Developers alone can not take policy advocacy forward because they have been a partner in crime with project delays and illegitimate source of funding in the sector.

“The idea behind policy advocacy must be to bring government and private players together for meaningful dialogue and discussion for the benefit of all stake holders, including the consumers. What is happening actually is that sector lacks vision on reforms and hence policy means different things to different stakeholders. There are developers, financers, facilitators, occupier. Even when you say land owners, it can be either a developer or agriculture land owner, and to bring everyone on board for consensus you need credible industry forums. I am not sure unlike other industries a standalone face can represent the sector, since there is no superstar or charismatic leader in the sector today,” says Nandan.

Nikhil Hawelia, Managing Director of Hawelia Group admits that the non-seriousness of the policy advocacy on part of real estate industry bodies is now seen as deliberate in collective consciousness. According to him, no one within the sector want a level playing field due to non-cohesive nature of the business and hence policy advocacy is more about media noise due to which it often fails to address the core issues.

“I do admit that the developers need to engage with the government to make the officials accountable. But the problem is that there is no consensus on what are the issues to deal with as every micro market has its own set of critical issues. Moreover, there is no transparency among ourselves as to which issues are equally desirable to create a level playing field in the business,” says Hawelia.

Some analysts are of the view that in some other sectors people are vocal because they come from very powerful political background and are second generation entrepreneurs. Then, they are active at the federal level without any structural defect where policy at centre might help at some level and hamper at some other state level. Automobile policies, for instance, are framed for across the country.

Realty is predominantly a regional business, primarily on account of land being a state subject. Therefore, it is a tough task for one single body or association to represent the views and opinions of all stakeholders in the sector. Some sector analysts assert that few realty associations and public interest bodies are all working at some level in the same direction to improve dealings within the sector, albeit the medium used to communicate these views vary.

This school of thought hence insists that at the end of the day it is not necessary to be one voice in the industry, as far as the message is the same and consistent across any one whom delivers it. The question remains—has the voice been one?

L&T Construction wins orders valued Rs. 2416 Crores

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News Point: The construction arm of has won orders worth Rs. 2416 crores across various business segments in the month of June 2016.

L&T, Track2Realty, India real estate news, Indian realty news, Property news, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Larsen & Turbo, Investment in Indian real estateBuilding & factories business:

The Business has won orders worth Rs. 1165 crores.

A prestigious high rise has been secured from a leading developer in Mumbai. The scope of work involves civil and structural works for the construction of two residential towers, each having 3 basements, 7 podiums, 66 floors and other ancillary buildings.

Another order has been bagged for the construction of a mixed use development (MUD) from a renowned customer in Kolkata. The scope involves civil and structural works for the construction of two towers of G+15 and G+7 floors respectively with 2 levels of common basement.

The business also secured add-on orders from various ongoing jobs.

Power transmission & distribution business:

The Business has bagged orders worth Rs. 1120 crores in the domestic and international markets.

In the international market, a major engineering, procurement and construction order has been bagged from a reputed customer in the Middle East. The scope includes construction of a medium voltage overhead line which will enhance the reliability of the existing network.

On the domestic front, orders have been received from Paschimanchal Vidyut Vitaran Nigam Limited (PVVNL) in Uttar Pradesh.

The first order involves the construction of 33kV substations and associated lines in Ghaziabad, which falls under the Integrated Power Development Scheme (IPDS) while the second order involves rural electrification including feeder separation works in Meerut under the Deen Dayal Upadhyaya Gram Jyoti Yojana scheme (DDUGJY).

Additional orders have been also received as part of the contract variances. 

Smart world & communication business:

The Business has won orders worth Rs. 131 crores which includes a new order from RajCOMP Info Services Limited, a government of Rajasthan undertaking, for establishing and commissioning command & control centres at Bikaner, Bharatpur and Jodhpur cities under the Surveillance and Incident Response Project. 

Price correction on Gudi Padwa?

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Bottom Line: Reports of price correction on eve of festivals like Gudi Padwa are often misleading.

Gudi Padwa, 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, Track2RealtyBacked by the media reports on inevitable price correction in the Mumbai market, Meenaxi Rohtagi, a textile engineer waited for long to buy an apartment in and around Andheri East. Though the prices have moderated in the last three quarters, the media reports, backed by the property consultants’ analysis, suggest some more significant price correction is on the cards. She now has made up her mind that she will book the flat on the day of auspicious Gudi Padwa.

“I have waited for long anticipating the substantial price cut in the housing market. Of course, there have been marginal price cut in the housing market but that is nowhere close to my expectations. It would not make any difference to my EMIs burden. I am actually expecting a good correction but going by the brokers’ feedback I am rather disappointed and even more confused,” confesses Meenaxi.

She is not the only one in the Mumbai housing market to feel confused about the housing trend and disappointed with the kind of price cut that the market has to offer. Everyone in the housing market across the city, whether the novices or the seasoned investors, have the same dilemma today. Whether there will be more price cut? Will the price cut be symbolic or substantive? Should I buy on the day of Gudi Padwa when more price correction is expected ahead?

Will I get the discounted price, as being reported? Will the festival be the beginning of the price correction this time around? Will the housing market of Mumbai ever be buyers’ market? There are many questions and hardly any answer that could convince, and not confuse, the prospective homebuyers across the length and breadth of Mumbai.

The fact of the matter is that the answer to these questions is not straight and simple and it can be answered as both yes and no. Analysts point out that it all depends upon which market one is talking about as within Mumbai market there rests many sub markets, each having its own distinct character. Then comes the question of segmentation, as all the housing segments in the city are not showing the same trend, whether in pricing or demand & supply cycle.

Quick bytes

  • Price trend has many variable across the MMR; no consistent price trend across the city
  • Price correction more in the luxury segment, less in mid segment and no correction in the affordable segment
  • South Mumbai prices correcting, Western Suburbs softening, and locations of Eastern Suburbs firm
  • Attractive deals available this Gudi Padwa with new launches

Prashant Nambiar, a broker operating out of Mahalaxmi area says there are various pockets of property in Mumbai and price correction depends upon the kind of inventory that is available in the market. According to him, it is much easier to say that Mumbai is sitting over a record number of inventory and with nearly four years of inventory the only way to move forward is to cut the prices. But the reality is that there is real scarcity of properties in certain price brackets.

“If you are talking about affordable housing, then I feel Gudi Padwa onwards the prices will rather firm up as there is hardly any inventory and the demand is huge. Added to this, the market sentiments are improving and the economy shows the signs of revival. In mid segment, some sort of correction in the form of discounts and freebies will be available during the festivals and even beyond. But in luxury not just correction but some sort of crash can also not be ruled out,” says the broker.

Geeta Shukla, another homebuyer is on the property hunt, having been shifted to Mumbai recently from Bangalore. Being new to Mumbai tradition, but a spiritual person at heart, she decided to book the apartment on the festival spirit of Gudi Padwa as well. Her property search led her to an altogether new finding; something that in a way confirms the assessment of the property broker Rajesh.

“Across South Mumbai I am finding that substantial price correction has happened and some attractive properties are available at very attractive price points. What is a reality in Colaba, Cuffe Parade or Fort is not a Mumbai reality though. In Western Suburbs locations like Bandra, Khar or Santacruz the prices might have corrected in the last one year but not as much as in South Mumbai. However, as I move to Eastern Suburbs locations like Kurla, Chmbur or Ghatkopar, I did not find any signs of price correction. It is like travelling rom one different city to an altogether different city in Mumbai,” says Geeta.

In a nutshell, the Mumbai Metropolitan Region (MMR) is not a linear property market where the price trends would be consistent. Each pockets of growth have their own price trend and demand & supply dynamics. It also depends upon the segment of housing and the price correction has mostly happened in the upper segment of housing. On Gudi Padwa too the expected price correction would be more in the upper end of property pyramid.

Does it mean that the affordable homebuyers have no hope of getting reasonable property on this Gudi Padwa? Not really! Analysts suggest that the affordable homebuyers too have their options and they need to keep a close reality check on the market. With a number of new launches expected on the festive occasion there are chances of some attractive deals being offered. It is just a question of finding the right property at the right time and at the right price point.

Many developers are strategizing their marketing channels to make the best of festive spirit. This sounds good for the prospective homebuyers who wish to book their dream home on the day of festivals. Call it due to price correction or strategy or the emerging market reality, but this Gudi Padwa promises to offer everyone a decent deal in the housing market.



Gudi Padwa spirit may not land you in fancy trap

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Bottom Line: Discounts & freebies on Gudi Padwa are often fancy trap by the developers.

Gudi Padwa-1, 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, Track2RealtyWhen Navneet Khandelwal bought her first apartment five years back on the day of Gudi Padwa, she thought she had made a killing deal. After all, the kind of freebies that she got with the apartment was something that tempted her to book it on the day of the festival known for the acquisition of new properties. She got an air conditioner and a discount coupon that rewarded her further with some furniture. Isn’t it a grand prize when buying an apartment on the auspicious festive day? It sounds so!

Why then is Navneet apprehensive today when she wants to buy her next house in Vashi? It is true that she religiously believes in the Gudi Padwa and is sure to book the apartment on the day of the festivals only. But then this second time is more matured to understand the value of house hunt and at the same time not get tempted by the freebies. More importantly, she understands the difference between wants and needs; something that can save her from fancy trap in the housing market.

“Though I was happy with the kind of freebies that I got. But it was a few months later that I came to know that some other properties in the same market were offering a better deal with the cash discount as well. My temptation to grab the freebies immediately on offer was something that completely misled me. The value of the stuff that I got in freebies was much lesser than the high price that I paid for the apartment,” says Navneet.

Prabhu Parekh is another homebuyer who was tempted with the marketing offer has a very basic question to ask today. The builder has offered him freebies over and above subvention offer. He nevertheless questions that if the developer can offer him so much of discount and freebies, why can’t the same developer straightaway reduce the Basic Sale Price (BSP) of the project. “These dicey discounts and unwanted freebies clearly suggest there is scope for price deduction,” he points out.

In Parekh’s question is hidden the stark reality of the marketing gimmick of real estate. The developer will continue to bombard with the offers of discounts; giving amenities that a new homebuyer might already be in possession of and even holiday tours but will never reduce his BSP.

Reasons: it hurts his brand reputation (read ego) to have scaled down on pricing due to failure to sell and, equally importantly if not more, is his sales channel of brokers and under-writers who force the developers to do so as they do not want to lose on their commission that is calculated on the BSP.

Added to this market reality lies the fact that the real estate is today groping in dark as far as the new ideas and marketing strategies are concerned. They are hence often going off track to lure the homebuyers with discounts and freebies.

Quick bytes

  • There is nothing free in discounts & freebies and the homebuyer has to pay the hidden charges
  • Always ask for direct price cut than discount on car parking or club etc
  • Evaluate whether the freebies on offer is what you actually need
  • Discounts should be cash discounts in flat cost and not add on amenities being discounted

Developers on their part maintain that discounts & freebies are offered to add to the festive spirit. It has been a tried & tested marketing methodology since ages. However, the fact remains that the homebuyers today are more informed and aware about the cost & benefit of the discounts & freebies.

Home ownership has long been a valued tradition across most societies and cultures. Indians traditionally aspire to possess their own homes. The festive occasion like the Gudi Padwa adds zing to the aspiration since it is considered to be auspicious and lucky. And it is here that the gullible homebuyers are prone to make emotional mistakes.

Considering the overall health of an economy is largely influenced by the functioning of its housing market, there is definitely a need to reform the property buying and selling process which allows consumers to be more involved. This is all the more relevant in the present market conditions where, the cost of capital and loans are high and not expected to decrease in the near future – affecting the affordability and availability of homes. Resultantly, the decision to purchase a house is taking place in a highly constrained environment.

Therefore, analysts suggest that as prospective consumers knowing the right questions to ask and engaging expert advice can definitely help one make a sound investment for your future. Whether you are buying a home to live in with family or for investment purposes, understanding your wants and needs is the way to avoid emotional mistakes.

There is no point in getting lured by the discounted freebies like refrigerator or air conditioner. These consumer durables should not be a criterion when you already have it. A gold coin or home furnishing may not be a sound advice when the price of the apartment is too high against the competing projects in the neighbourhood.

Sachin Sandhir, Global Managing Director of RICS says ‘buyer beware’ may sound like a cliché, but it is absolutely essential that homebuyers protect their interests. Therefore, knowing the right questions to ask can definitely help you make a sound investment for your future. It is critical to understand that the decision to buy any property requires a long term financial commitment.

“For all properties, regardless of age and design, basic checks should include the structural condition of the property; electrical wiring; plumbing; insulation; alterations which have been made to the original floor plan and if the same have been approved and assessed by the local development authority. It is also advisable to consider what the immediate and future maintenance requirements of a house might be,” says Sandhir.

The ‘urgency’ factor of moving into one’s home will largely depend on one’s disposable income and the decision to invest either in an under construction or resale property. However, prior to making any such decision, it is always wise for the buyer to consider the associated risks that are involved in buying property and evaluate the same, before making a financial commitment.

Today, when the inventory level is high in Mumbai market, it is advisable to go for a ready to move property than book an under-construction or new launch project in exchange of discount. In the final cost & benefit such discounts & freebies are often more costly.

Growth slow but steady revival of Mumbai realty in 2016

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Brotin Banerjee, MD & CEO at Tata Housing, 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, Track2RealtyBrotin Banerjee, MD & CEO of Tata Housing believes more optimistic environment for homebuyers is likely in Mumbai. According to him, there is inherent demand for housing in city and the market is also getting realistic. In an exclusive interview with Ravi Sinha he accepts that the growth may be slow but the mid segment and affordable housing in the fast developing locations will be the major demand drivers.    

RS: Do you think Mumbai real estate has become more realistic for homebuyers due to slow down? 

BB: Pricing of housing will continue to increase over a long period of time because there is an inherent scarcity of housing in the city coupled with high demand. The challenge over the longer term will continue to be creation of capacity. In spite of slow absorption rates in the market, new project launches across segments coupled with innovative marketing initiatives has helped spur demand in Mumbai.

This, along with focused efforts by both, the government and developers alike, for steady growth is likely to create a more optimistic environment for end users in Mumbai, especially first-time buyers. The proposed decongestion will also aid in better rearrangement helping Mumbaikars to meet their housing needs.

RS: How would you define affordability in context to Mumbai housing market?

BB: With rapid urbanization and rising incomes, Mumbai has witnessed a thrust in the demand for middle income housing over the last few years. While affordability is categorized by income groups and ticket prices, livability in terms of amenities, comfort and functionality is also a crucial parameter while defining affordability in the Mumbai housing market.

I believe that suburban Mumbai like Thane, Kalyan, etc. and its regions supported by rapidly developing civil and social infrastructure will emerge as the new hubs for affordable housing.

RS: To what extent less launches and focus on inventory sale has brought fence-sitting buyers into the market?

BB: With the Indian economy getting back on track, real estate sector is expected to stabilize in the next two to three quarters. We would anticipate this sector to grow, albeit at a slightly lower pace, as the demand for housing still appears to exceed supply, and the weakening rupee makes India an attractive real estate investment destination for non-resident Indians.

Today, the emerging affluent classes are aware of the different cultures and lifestyles being adopted abroad and are ready to spend on homes that reflect their lifestyle and status.

RS: When do you see the revival of city real estate market?

BB: The real estate market is headed for a steady revival in 2016. Stability in property prices across major locations including Mumbai, along with reduced interest rates has led to an increase in consumer confidence and I strongly believe markets will only improve henceforth. 

RS: Historically Mumbai property market has been known to recover ahead of other cities. Do you see this trend to continue? 

BB: The city of Mumbai is growing at an exponential pace due to the constant influx of working population. Currently, major developing suburbs in Mumbai are witnessing projects that not only fit the budget of end consumers but are well connect in terms of both social and physical infrastructure. These locations basically offer better infrastructure, good connectivity, and accessibility to healthcare facilities, educational institutes and entertainment facilities which makes these locations apt for residential housing.

As these locations are developing at a rapid pace owning to which there is a possibility of higher return on investment. Simply put, the outskirt you choose to invest today is likely to become a prime location within a few years. In addition to this, the price range of properties in the outskirts of Mumbai would be lesser as compared to the main city and the consumer also gets ample green spaces. 

RS: Which are the pockets of growth for Mumbai in the year 2016?

BB: Thane has emerged as an attractive location for residential purchase/investment owing to rapid infrastructural and residential development on par with global standards. The region shows potential for tremendous growth, with several projects in the pipeline like the metro, monorail project and underpass that connects Thane to Borivali. Thane enjoys a central location along good railway connectivity and is steadily moving towards a self-sufficiency model which makes it a place of choice for all buyer segments. Moreover, the region offers quality housing options across the spectrum for an increasing urban population.

Similarly, Kalyan-Dombivli’s has recently witnessed growth, primarily due to increasing connectivity to Mumbai and also the growing demand for affordable housing in Mumbai. A proposal for extending the Navi Mumbai metro rail to Kalyan too has fueled growth for housing in Kalyan-Dombivli. The improving road connectivity and upcoming infrastructure in and around Kalyan, is making the region a preferred location for people looking at affordable housing options. As the region grows and commercial activity increases owing to the nearby Badlapur industrial region, property prices are sure to appreciate. 

RS: Do you expect Mumbai real estate to attract more investment this year? 

BB: Mumbai has seen immense growth in the real estate segment in the past few decades. However, in recent years the island city is witnessing land crunch, which has caused the city to grow far into the mainland in the north and east.

Besides inward migration there is a refurbishment of old housing and infrastructure which is resulting in huge demand for residential properties, which has given birth to areas like Thane, Kalyan-Dombivali belt making them the new real estate destinations of the city.  Additionally, with rapid urbanization, a large section of population being in the working age group, high savings rate and increasing purchasing power at the hands of the consumer, this segment is bound to get a major fillip and see strong growth in the coming years.

With improving connectivity, expanding cities and rising property prices, more and more homebuyers are looking at places close to metro cities, but Mumbai will always remain to be the most favorable real estate destinations. In fact, the outskirts of the city are the best locales with abundance of open and green spaces. The area boasts of good connectivity and transportation facilities as well as amenities like malls, schools, hospitals, and residential houses.

RS: How do you see the future of Mumbai once the other Smart Cities surface and economic activity shifting to many of these places?  

BB: Mumbai is the largest metropolis as well as the financial hub of the country. Currently, the city has reached its expansion limit and hence, it is important that new areas are developed that can act as satellite to the financial hub. The upcoming Smart Cities will help take off the load from Mumbai bringing in better infrastructure and facilities. However, Mumbai is expected to continue to rule as the major financial hub.

Supertech to invest Rs. 5,706 crore in Haryana

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Signed a MOU with Government of Haryana at ‘Happening Haryana Global Summit 2016.

Supertech-Disney, 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, Track2RealtySupertech signed a Memorandum of Understanding (MoU) with Government of Haryana that promises to generate 5,000 employment opportunities in the state. Under the Government’s initiative of Housing For All by 2022’, Supertech is developing affordable housing and township projects in Gurgaon and will be investing Rs. 5706 crores in the State.

Under the terms of the agreement, Supertech will develop affordable housing and township projects, encouraged by the Government of India’s objective of ‘Housing for All by 2022’ which will further help improving the infrastructure of the State.

The Scheme while ensuring fast development will benefit land owners, developers and buyers as well and would provide over 5000 employment opportunities in addition to huge revenue generation to the Government to execute welfare programmes in the State.

R.K. Arora, Chairman of Supertech Limited said, “We are extremely happy to be a part of this development programme of the state of Haryana. The state has a lot of potential in terms of infrastructure and industrial development and has become a hub for affordable housing and infrastructural facility after the launch of Affordable Housing Scheme by the Govt. of Haryana. Following the vision of Government Of India of Housing For All by 2022, we are developing projects worth Rs. 5706 crores which will further boost the economy of the state resulting in overall development.”

Budget impact on real estate sector

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The Union Budget for 2016-17 has overall been a good one for the real estate and construction sector.

Anshuman magazine, CB Richard Ellis, 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, Track2Media, Track2RealtyThe Union Budget has attempted to encourage private sector investments into the Indian realty sector, while aiming to introduce banking reforms. The most encouraging announcement, however, has been the exemption of Real Estate Investment Trusts (REITs) from Direct Distribution Tax (DDT).

It is hoped that having cleared this hurdle, companies will now come forward to set up REITs, which is expected to be a game changer for the industry in India.

The corporate real estate space will also benefit from the announcement made by the Finance Minister on the sunset clause for Special Economic Zones (SEZs). According to the Budget 2016-17, the sunset date for exemption of fiscal incentives to SEZs has now been pushed forward to March 2020.

Although more could have been done to revive housing demand in the country, the Government has extended incentives on various fronts, especially for the Affordable Housing segment.

It has announced 100% tax exemptions for private players constructing affordable housing of 30 sq.m in the four metros and 60 sq.m in other cities, approved during the June 2016 to March 2019 period, and completed within three years of construction approval.

The Finance Minister has also announced 100% excise duty exemption for Ready Mix Concrete, which is expected to bring down environmental pollution at construction sites.

An additional rebate of INR 50,000 per annum on housing loan interest for first time home buyers in the affordable segment for loans not exceeding INR 35 lakh, and for properties not exceeding INR 50 lakh, was also announced. This move is likely to fuel affordable housing demand, especially in the tier II and III cities of the country.

The Finance Minister also provided a boost to the rental housing market with an increase in House Rent Allowance (HRA) deductions. Those not owning a house and not receiving any HRA from their employers can now avail a standard deduction of INR 24,000; while for those availing HRA, the limit has been raised to INR 60,000 per annum towards rent paid for their accommodation.

The infrastructure sector was particularly in focus in the recent Budget announcements, with a record allocation of
Rs. 2,21,246 crore for overall infrastructure development, including railways. There was also increased focus on Greenfield ports as well as on the upgradation of underutilized / unused airports and airstrips.

In addition, various schemes were announced by the Finance Minister to rejuvenate private sector interest in infrastructure investments, through Public–Private Partnership (PPP) models.

The ease of doing business was in focus too. Changes in the Companies Act, and early registration of new companies and start-ups are expected to facilitate the business environment in the country.

By: Anshuman Magazine, CMD, CBRE South Asia

Realty budget wish list cuts no ice with homebuyers

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Homebuyers are not impressed with developers’ budget wish list that ignores the buyers’ concerns.

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“I am reading these newspaper reports about the real estate sector demanding so many things with the Union Budget. Most of these demands are for their financial health than understanding the market from common homebuyers’ perspective like us. Do we matter at all in this eco system where neither the government nor the developers understand what keeps us away from the property market,” says Shweta Sanyal, an advertising professional in Mumbai.

It seems most of the demands of the Indian real estate on the eve of Union Budget every year are so self-centered that it fails to impress either the Finance Minister or the homebuyers. Even though there are customary voices to cut down the interest rates and increase the income tax rebate slab, yet the major focus has always been on the financial package for the sector, infrastructure status and industry status for them.

Rikki Sahni, a tax consultant points out, “There is no denying that the infrastructure status and priority lending for housing projects will do a world of good for the financial health of the sector. Similarly, the industry status might prove to be handy as far as ease of doing business is concerned. But will these benefits pass on to the end users? I have my doubts.”

In the absence of earning the trust of the end users as far as the demands are concerned, the sector has failed to get the homebuyers on board. The focus is so much on demanding the financial package for the sector that even if there are a few rational suggestions, it is seen as another means to extract for the sector.

For example, the industry body NAREDCO has suggested that the government land, wherever available, should be used as equity and government agencies encouraged to assemble additional land as much as possible.

India is short of 18.78 million housing units and 96 per cent of it is in EWS and LIG categories. Government is targeting to build 2 crore housing units by 2022. All this will be possible if land and bank financing is made easy.

However, along with this suggestion what is more important for the industry body is its demand for the industry status. Anuj Puri, Chairman & Country Head of JLL India seems to understand this when he says the Union Budget should pay specific heed to this pressing need to offer financial protection from project delays to home buyers. According to him, on purchase into an under-construction property, buyers can only claim tax benefits of Rs. 2 lakh after possession if construction is completed within three years. The benefits reduce to Rs. 30,000 if the builder delays construction beyond this – and they pay higher interest. First-time homebuyers purchasing properties for self-use additionally pay rent.

“Instead of allowing homebuyers tax benefits post-possession, the Union Budget should make a provision that allows these from the time they start paying interest on housing loans. This will ease their monetary burden considerably and make increase the velocity of home loan disbursements,” says Puri.

There are some other suggestions which could have gone down well in the collective consciousness of homebuyers. For example, if an under-construction property is purchased from capital gains, its construction must be completed within three years of its sale to avail exemption. There can be delays by developer in such cases too. These deductions should be brought at par and the construction timeline should be extended from the current three years to five years. 

Pro-consumer suggestions that could have helped to revive the sector would have also found a chord with the homebuyers. More importantly, when the builder and buyer is on the same page with the budget wish list then it could not have ben be ignored by the Finance Minister as well. However, there has been so much focus on the repeated demands for the sector that the larger picture was missed in the process.

By: Ravi Sinha

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Expectations on way forward for GST Bill from Budget Session

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Passage of Bill likely to fuel consumption in economy and facilitate growth of industrial/warehousing space.

Anshuman magazine, CB Richard Ellis, 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, Track2Media, Track2RealtyFor achieving 10% growth, India’s domestic economy needs to attract added investor interest, including that of overseas funds. Increased levels of foreign investments would be welcome for the Government’s recently launched “Make in India” initiative as well.

To this end, the passage of the pending Goods and Service Tax (GST) Bill is of critical importance. More direction is sought from the Government on the GST Bill in the upcoming Budget session. In this connection, the Hon’ble Finance Minister has been optimistic of the Bill being passed in the next session of Parliament.

The Bill aims to create a single tax regime by doing away with multiple central and state level taxes such as the Central Excise Duty, Value Added Tax (VAT), Octroi, luxury tax, etc. Once implemented with a single taxation structure, GST will have positive effects on individual as well as industry taxation levels.

On the individual front, it will make products and services cheaper, because the cascading effect of multiple taxes from the levels of manufacturers and wholesalers that is ultimately borne by end-consumers will be avoided. This move may incentivize more consumption in the market from consumers, injecting overall economic growth including in the retail and logistics sectors.

From the point of view of the industrial and logistics real estate segment, a unified GST would allow industry players to surmount regulatory restrictions and focus on consolidation of industrial/warehousing space for maximum operational efficiencies.

Under the current regime wherein indirect taxes are levied by the Central as well as State Governments for the storage and transportation of goods, logistics and warehousing firms are forced to locate their facilities in regions to best accommodate multiple tax structures.

Players often end up paying higher rentals because industrial/warehousing locations with lower rental rates also pose various regulatory hindrances.

Once the Bill is implemented on ground, such industry players are likely to move towards consolidating their facilities according to their specific business needs, instead of being driven by regulatory concerns.

Along with the recently relaxed guidelines on Foreign Direct Investments (FDI), the likely passage of the GST Bill may prompt large scale foreign investments and sustainable growth of the country’s built environment, including warehousing and industrial space. The Government’s “Make in India” initiative also would receive a significant boost from this move.

By: Anshuman Magazine, CMD, CBRE South Asia

Despite slowdown, Mumbai remains the most lucrative investment destination in India: Knight Frank Report

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Trans Harbour Link Mumbai, 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, Track2RealtyDespite slowdown, Mumbai remains the most lucrative investment destination in India, says the second edition of Knight Frank India Residential Investment Advisory Report 2016.

In the report the top residential destinations across five major cities are evaluated and a comprehensive recommendation addressed towards the needs of the discerning homebuyer from an investment point of view over the next five years (2015–2020). The report also reviews the previously recommended destinations three years ago (in 2012).

Key takeaways:

  • In Mumbai, Madh–Marve is identified as the top destination, with an expected price appreciation of 94 per cent, thereby emerging as a promising asset class for the next five years.
  • Ulwe, the top destination of the MMR in the first edition of the report in 2012, scores second this time, with a 70 per cent price appreciation by 2020, while Majiwada–Kasarvadavali will experience a price appreciation of 59 per cent by then.
  • New Airport Road, in Viman Nagar, is identified as a potential location, with an expected price appreciation of 63 per cent, thus moving Pune’s ranking up by securing third place, while Vishrantwadi is to witness a 55 per cent growth appreciation.
  • Thanisandra and Panathur–Varthur emerge as potential residential investment destinations in Bengaluru, with estimated price growths of 61 per cent and 55 per cent, respectively, thereby securing positions in the top five ranking.
  • Golf Course Extension Road and New Gurgaon emerge as potential destinations for residential investment in NCR, although NCR’s ranking has come down drastically compared to 2012 due to the overall real estate scenario bottoming out.
  • Hyderabad makes its entry in the second edition of the report, with the Puppalaguda– Narsingi cluster emerging as one of the potential destinations for residential investment.

 Mumbai (MMR):

  • Madh–Marve emerges as the most lucrative potential destination, with an estimated price appreciation of 94 per cent in the next five years.
  • Ulwe, still in the list of potential destinations as featured in the first edition of the report, continues to be the other top destination, with a 70 per cent price appreciation in 2020.
  • Majiwada–Kasarvadavali, the next investment destination, is expected to see an appreciation of 59 per cent by 2020.
  • The key drivers for the MMR will be employment; physical and social infrastructure; an arterial road network and the proposed suburban railway networks (metro and monorail), the Costal Freeway and the trans-harbour link.

Delhi (NCR):

  • New Gurgaon has emerged as another potential destination, with the expectation of a price appreciation of 47 per cent.
  • Golf Course Extension Road is expected to witness a price appreciation of 42 per cent by 2020.
  • Delhi will continue to be a favourite among office occupiers; however, with limited scope for new supply, prices in the area will remain unaffordable.
  • Gurgaon, which accounts for 53 per cent of the total office stock in NCR, will witness approximately 13 million sq ft of incremental office space by 2018, which will translate into more than 100,000 jobs, giving it an edge over Noida.


  • New Airport Road, in Viman Nagar, is to witness a price appreciation of 63 per cent by 2020.
  • Visharantwadi, in the east, is expected to see a price appreciation of 56 per cent by 2020.
  • Locations such as Hinjewadi, Wakad, Tathawade and Ravet failed to perform as per the estimated price appreciation three years ago, mainly due to the ample availability of vacant land in the vicinity. Nevertheless, it has performed better than the other established locations of Pune.


  • East Bengaluru emerges as the top residential market, with Panathur–Varthur expecting a price appreciation of 61 per cent by 2020.
  • Thanisandra, in the north, emerges as the top destination, with an expected price appreciation of 55 per cent in the next five years.
  • Despite the presence of IT/ITeS companies, South Bengaluru witnessed a slackened price growth due to severe traffic congestion, a lack of substantial incremental employment opportunities and lack of infrastructure development.
  • The industrial tag in the past and the launch of relatively higher-priced residential projects in select micro-markets presently are impacting the price momentum in West Bengaluru.
  • The previously recommended locations of Hebbal and K.R. Puram witnessed mixed outcomes, with Hebbal showing a positive growth trajectory and K.R. Puram demonstrating slow growth.


  • The Puppalaguda–Narsingi cluster is to witness a 41 per cent growth appreciation by 2020 owing to strong demand and restricted supply. Besides the existing 50 million sq ft of commercial office space in the adjoining areas, the additional 10 million sq ft that is expected to be added in next five years would potentially add another 125,000 employees to the demand base, further supporting price growth in this location.
  • Uppal and L.B. Nagar in the east and Falaknuma in the south are also expected to see significant improvements in terms of connectivity through the metro; however, locations with comparable prices in the west will prove to be strong competition, as they are in closer proximity to the western employment hubs.
  • The premium Banjara Hills and Jubilee Hills markets will see price appreciation as well; however, investment returns will lag as compared to their more affordable counterparts.

Dr Samantak Das, Chief Economist & National Director, Research says,  “The residential sector in India is reeling under tremendous pressure since the last couple of years, with price appreciation in most cities not even able to exceed the inflation rate in the economy. In the next five years, we anticipate the residential price growth to remain muted on the back of delayed economic reforms, subdued demand and a lack of consumer confidence in the completion and delivery of projects. However, at Knight Frank, we strongly believe that any investment in real estate based on sound research can seldom go wrong, and there are ample opportunities to earn healthy returns even today.”

“We have identified 11 locations spread across Mumbai, NCR, Bengaluru, Pune, Chennai and Hyderabad that will provide the maximum price appreciation in the range of 41% to 94% in the coming five years. While Madh–Marve in Mumbai has been identified as the top investment destination, Ulwe in Mumbai and New A’irport Road in Pune have emerged as the second and third potential destinations respectively,” adds Das.

Mudassir Zaidi, National Director, Residential Agency says, “Real estate industry is cyclical in nature and we anticipate that we are at the end of the cycle of slow down. The wave of positive sentiments is quite evident and the recovery is getting stronger. With the real estate regulatory amendments, credibility and positivity is building up confidence in the minds of the investors who will sooner or later get drawn back into the market. The locations we have identified will benefit from the overall positive sentiments provided the recovery sustains and gets stronger in the near term.”

“The residential market demand in each of the selected destinations will be driven primarily by two factors – employment generation and infrastructure development. Madh-Marve (Mumbai), Ulwe (Mumbai) and New Airport Road in Viman Nagar (Pune) have emerged as the top, second and third amongst the 11 destinations identified, due to the factors cited above,” adds Zaidi.

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