Tag Archives: RICS

43-54 billion REIT eligible commercial property in India

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News Point: With 315 MSF office and 39 MSF mall stocks, value of REIT-eligible stock seen to be highest in Bengaluru, followed by Mumbai. Bengaluru, Mumbai and Delhi-NCR cumulatively account for over 67% of total REIT-eligible stock

Office space in India, Office space absorption, Commercial real estate in India, Commercial property trends, Indian real estate market, Indian property market, India office market report, Real estate news magazine, Real estate news portal, Real estate website, Track2Media Research Pvt Ltd, Track2Realty, NRI investment in IndiaIndian commercial real estate offers investment opportunity worth USD 43 – 54 billion (Rs. 2,88,758 crore-Rs. 3,60,948 crore) across the top 8 cities via REIT-eligible ready stocks as per and report entitled “Commercial Real Estate: Steering Growth in Indian Cities”.

The report was released at RICS Real Estate Conference 2016 – “Commercial Real Estate: Corporate Catalyst” with Cushman & Wakefield as research partners for the conference. A key focus of the conference discussions was evolving occupier demand, REITs and international standards.

The report estimates that the value of REIT-eligible stock is seen to be the highest in Bengaluru (USD 15.8 billion)/Rs. 1,05,213 crore) primarily due to the high volume of investible Grade developments. Mumbai (USD 14.5 billion/Rs. 96,461 crore) comes a close second due to higher capital values of commercial properties, despite having roughly half of Bengaluru’s REIT-able stock.

The estimated value of REIT –eligible stock in NCR is USD 11.04 billion / Rs. 73,423 crores which is the third highest. Further, it is estimated that approximately 315 million square feet (msf) of office inventory is eligible for REIT across the cities. The REIT-eligible inventory includes existing non-strata sold Grade A inventory, wherein Bengaluru, Mumbai and Delhi-NCR cumulatively account for over 67%. 

Delivering the keynote address, Barnali Mukherjee, Chief General Manager, Securities and Exchange Board of India (SEBI), said, “We have come out with the IPO guidelines for the issuance of units of INVits. On same lines, we are working on the IPO guidelines for units of REITs. Since there are no accounting standards for REITs and INVits, we have set up sub-committees looking at the financials to be brought out with the offer documents as also the continuous disclosure to be made; also set up a sub-committee for issuance of valuations, who will come out with their report. On the valuations side, a separate chapter has been included in REIT regulations where lots of rights and responsibilities have been given to the valuer who has to comply with International Valuation Standards.”

“We have already received 4 applications for infrastructure investment trusts (INVits), where two applications have been processed and two are registered. We have come out with amendments on REIT regulations to bring more clarity and make it more acceptable but as of now, we haven’t received any applications for REITs. Whatever SEBI could do has already been done, in terms of removing key roadblocks such as capital gains tax and DDT and now we are looking forward to applications for REITs so that the REIT market can take off,” she added.

Sachin Sandhir, Global Managing Director – Emerging Business, RICS said “Commercial real estate is expected to see continued demand, fueled by positive business sentiment (especially in IT/ITES and new age digital businesses) based on major policy reforms undertaken by the Government. There is also likely to be considerable international investor interest in income yielding assets and the first REITs and INVits are not far away. REITs will drive the need for Indian commercial real estate to speak the language of international investors which, in turn will create demand international standards and corporate governance; professionalism and skills – which are all the things that the RICS Stands for.”

Sanjay Dutt, Managing Director, India, Cushman & Wakefield said, “REITs can provide a huge opportunity for developers and investors in India given the potential in the . REITs would help developers resolve their fund-raising issues and allow them to focus on completing their projects in a timely manner. Apart from the top 3 cities, Chennai and Pune have immense scope for REITs with approximately 34 MSF each of REITS-eligible stock. Going forward, by the end of 2017, Hyderabad’s REIT-able stock is expected to reach approximately 41 MSF. This would place Hyderabad’s REIT-able stock at 4th place, surpassing that of Chennai and Pune. With investor and occupier interests rising in Hyderabad, a high number of Grade A projects are likely to be completed enabling high REIT-able stock.”

Apart from the office sector, the retail sector too has high potential to generate rental income for investors. Since last year, private-equity firms have shown interest in investing in malls in India, indicating that there is acertain attractiveness in the retail shopping centre space owing to future prospects.

Sachin Sandhir further added, “RICS will continue to work to promote International Property Measurement Standards (IPMS) a global collaborative initiative with 70 global professional bodies, which will bring in a common basis of measuring assets. RICS is also advocating International valuation standards (IVS) and the RICS red book as a basis for valuations of these REIT-able assets. With a common basis of measurement and a common basis of valuations and skilled professionals to undertake delivery of grade A office space coupled with ease of doing business initiatives of the Government, Indian commercial real estate will surely realize its true potential.”

Devina Ghildial, Managing Director – South Asia, RICS said – “2016 looks to be a bright spark for commercial real estate. The asset class looks to be on solid footing with all the policy reforms and initiatives from the Government. The industry will see the emergence of not only REIT’s and INVits but new asset classes including new suburban business districts which will propel commercial real estate to produce a lot more grade A office space in the times to come. In fact, in Q1 2016 alone, the market has seen absorption to the tune of approximately 5 MSF.

“Going forward, we will also see corporate occupiers and investors starting to demand international standards and focus on creating sustainable assets, which will create long term value for international investors in the form of higher yields. This would be a key expectation from the development community. Now more than ever, the potential of commercial real estate is apparent, and this makes it an opportune time for REITs to find their way into the market,” she added.

Of the REIT-eligible stock across the 8 cities, Bengaluru has over 100 MSF of REIT-eligible stock (33% of total REIT-able stock), more than double of that of Mumbai. Approximately 75% of the total (all grades) office stock in Bengaluru is eligible for REIT investments. Delhi-NCR (56 MSF) and Mumbai (51 MSF) are expected to follow Bengaluru in terms of REIT-able stock as of Q1 2016.

REITs once implemented in India would enable investors to generate a stable source of income and also earn profits by trading the units of REITs, thereby increasing the attractiveness of REITs as investing medium. With the government exempting Dividend Distribution Tax (DDT) for Special Purpose Vehicle (SPV) of REITS in the Union Budget, the investment vehicle is likely to be more attractive for investors.

Mall stock of 39 MSF eligible for REIT investment in India

The top 8 cities have REIT-eligible mall supply of approximately 39 MSF, with Bengaluru, Delhi-NCR and Mumbai together accounting for about 64% of the retail inventory. Owing to the presence of large mall developers in Delhi-NCR, Mumbai and Bengaluru that operate some of the best malls in India, investors are likely to concentrate their investments in these cities. Mumbai (11 MSF) has the highest stock of REIT-able malls i.e. non-strata sold grade A malls followed by Delhi NCR (7.4 MSF) and Bengaluru (6.5 MSF).

RICS and CREDAI collaborate to train middle managers in real estate

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News Point: Joint skills development initiative aimed at improving knowledge and skills of industry professionals.

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, Royal Institute of Chartered Surveyors, RICSRICS and CREDAI have announced the second phase of the ‘RICS-CREDAI Skills Development Initiative’ aimed at jointly working towards capacity building and skills development in the Indian real estate sector.

Amongst many challenges in Indian real estate sector, the immense shortage of skilled professionals leads to delay in project deliveries, cost overruns and compromised quality.

RICS has been offering specialized education and training programs – ranging across full time degree programs (through RICS School of Built Environment, Amity University), Executive education, Management development programs, Distance learning certificate courses etc.

CREDAI has taken the lead to ensure that development and construction firms upgrade the knowledge and skills of their staff and has thus partnered with RICS to offer Management Development Programs (MDPs) – i.e. short residential programs in metro cities.

Commenting on the importance of this initiative, A Balakrishna Hegde, Chairman, Training Committee, CREDAI said, “CREDAI and its members are at the forefront of building real estate in India. With this collaboration, we hope to enhance the professional expertise in order to execute complex real estate projects. We are happy to partner with RICS, the leading global professional and standard setting body in built environment. Being the global accrediting body for over 600 built environment university courses; we strongly believe their programs are unmatched in terms of curriculum and learning outcomes. We are sure that the courses offered under this Skills Development Initiative will enhance skills in order for our members and their teams to better deliver projects that are completed on time and at reduced costs.”

Commenting on the partnership, Sachin Sandhir – Global Managing Director, Emerging Business RICS said – “Although the real estate and construction sectors are key contributors to economy, there is a complete vacuum of education and training options available for professionals to up-skill. RICS launched distance learning programs a few years ago and there has been overwhelming participation of professionals from small and big towns. This partnership is a huge stepping stone to ensure that a majority of industry now has easy and economical access to education and training options of the highest standards, which in turn will help the sector become more professional and efficient. In this regard, CREDAI’s forward thinking and focussed effort in making sure all their members give due importance to up skilling their professional teams, is to be applauded.”

To begin with, MDPs will be offered in three priority areas namely – Construction project management, Quantity surveying, Real estate sales & marketing.

The programs are targeted specifically for middle management professionals and will be implemented by delivery partner – RICS School of Built Environment, Amity University.

RICS appoints Devina Ghildial as Managing Director for South Asia region

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Devina Ghildiyal, RICS, Royal Institution of Chartered Surveyors, Indian real estate, India real estate news, Indian property market, Track2Media Research, Track2RealtyThe Royal Institution of Chartered Surveyors (RICS) has appointed Devina Ghildial as Managing Director – South Asia with effect from March 9th, 2015. In this role, Devina has been entrusted with leading the RICS in the South Asia region with a focus on growing the professional qualification, driving commercial growth, influencing policy, growing the training business and promoting professionalism and standards in the sector.

Announcing Devina’s appointment, Sachin Sandhir, Global MD – Emerging Business, RICS said I have known Devina for a long time and have always been impressed with her acumen for developing and managing key accounts and relationships with key stakeholders in the real estate and construction sector. She has been instrumental in helping RICS achieve significant growth both from a commercial standpoint, as well as RICS’s larger objective of promoting professionalism and standards in the real estate and construction industry in the region. Now with the additional responsibility, I am sure, she will seek to grow RICS even further and take RICS to greater heights.

Commenting on Devina’s appointment, Anshuman Magazine – Chairman RICS South Asia Board said “Devina’s appointment is a testimony to her commitment and contribution to the growth of the RICS in the region. Her skills and hard work have propelled her to the next level and I’m sure that she will continue to work towards increasing and growing the RICS footprint.”

Devina joined RICS in 2008 and was promoted to the role of Deputy MD South Asia in August 2013.  In her role as Deputy MD, she was primarily responsible for managing the regions’ operations and has been instrumental in operations, key account acquisition and growth of the RICS’ in the region. Given the strength of her industry relationships, her understanding of the sector and the RICS, she looks forward to the role advancement.

On her appointment as MD, Devina said, “It is a privilege and honor to be appointed to lead the RICS in the South Asia region. I believe RICS has a critical role to play in creating professionalism and standards in the Indian real estate and construction industry and I will continue to look at ways of expanding RICS’ presence and contribution to the sector, by working closely with both the Government and the industry”

Devina has 18 years of cross-functional experience across real estate and private banking. Prior to joining RICS, Devina has worked in senior positions in the wealth/private banking domain with leading organisations such as Barclays Bank Plc, Dawnayday AV Advisors and Kotak Mahindra Bank. She has also been a part of the real estate industry in India and worked with Jones Lang LaSalle (erstwhile Chesterton Meghraj) and Ansal Properties & Industries Ltd. Her experience gives her a holistic perspective of the real estate and financial arena.

Source: Track2Realty

One global standard for measurement of carpet area for housing by end of year – RICS

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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, Royal Institute of Chartered Surveyors, RICSTrack2Realty: RICS, along with 61 professional bodies from around the world, has called for setting uniform measurement standards for residential sector globally (including India) to bring clarity on measuring various aspects of property measurement such as super built up area, built up area and carpet area.

International Property Measurement Standards (IPMS) are being developed and implemented by a growing international coalition of 62 leading standards organizations, representing professionals across the multi-trillion dollar property sector.

RICS has been in discussion with key government stakeholders to seek support of these international standards who remain supportive of the initiative. Once the draft residential standards are formulated, and it will seek formal endorsement from market regulator SEBI and Ministry of Housing.

The Indian real estate stakeholders have highlighted a number of important global residential measurement issues to address the enormous growth required to address the needs of their country.

Their concerns include lack of consistent residential measurement standards, phantom measurements, conflicts in off-plan measurement and consumer protection issues emanating from such inconsistent measurement standards. Currently in India, over 7 different measurement systems exist. However similar problems exist in even developed parts of the world such as United States and Middle East. 

As a founding member of this coalition, RICS facilitated a two-day meeting of Standards Setting Committee comprising 18 global technical experts (including two from India) from different parts of the world, which was hosted at the RICS School of Built Environment, Amity University, India.

The committee discussed global measurement issues and agreed on common standards to bring greater consistency and transparency. These international standards include

  • IPMS1 – similar to super built area in India (external space)
  • IPMS2 – similar to built area in India (internal space)
  • IPMS 3 – similar to carper area (occupied area)

These globally agreed terms i.e. IPMS 1, 2 and 3 are aimed at defining one common language for international real estate measurement, which would allow global investors and occupiers to compare and invest in assets in a consistent transparent manner.

“Government and industry at large is supportive of these global measurement standards, just like they have been for global valuation and global financial reporting standards. By adoption of IPMS, Indian market has nothing to lose with a dual reporting system of nationally prevailing terms (such as carpet area) and IPMS. Instead, adoption of this international language of real estate measurement will give confidence to global investors and boost foreign investment in Indian property which in turn benefits Indian developers”. Mr. Sachin Sandhir, Global Managing Director – Emerging Business, RICS said.

IPMS will be implemented by all Coalition organisations including International Monetary Fund (IMF), through their members, and property owners, investors and users will be encouraged to use and request IPMS measurements of their properties.

“This issue has challenged the entire property industry for a long time, with implications of trust, transparency and consistency for tenants, landlords and owners alike.  Through the vision and collective efforts of the coalition and others, we now have IPMS, which will help bring transparency and consistency for all.  As an owner, landlord and tenant; we will fully embrace  IPMS across our global portfolio” Scott McMillan Division Chief: Facilities, Real Estate and Capital Projects at International Monetary Fund (IMF).

“IPMS looks to address current inconsistencies in the way property is measured (that is, what is included in the measurement, not the units of measurement) from one market to the next by introducing internationally recognised ‘standards’ for measuring different types of property, including offices, residential, retail and industrial proper,” Mr. Alexander Aronsohn FRICS, Director Technical International Standards, RICS said.

The new standard will define which areas of a property are included in a measurement and which areas are not. For example: stairwells and washrooms; internal/external walls; common areas such as lobbies. IPMS will not standardise ‘units’ of measurement (e.g. feet and metres).

IPMS for Office Buildings was launched last year and is already endorsed by Governments in some parts of the world including Dubai. The IMF has also announced its intention to re-measure its entire global portfolio using IPMS.

RICS advocates Building Information Modelling (BIM) to reduce construction delays and cost overruns

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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, Royal Institute of Chartered Surveyors, RICSTrack2Realty: Globally, as project delays, cost overruns and liquidity constraints continue to trouble the real estate and construction sectors, Building Information Modelling (BIM) has emerged as one of the most reliable tools to eliminate challenges and reduce the capital cost and carbon footprint by over 20 per cent.

While a number of developed countries across the world have already adopted BIM to reduce project delays and cost overruns, Indian firms are fast adopting BIM, according to the findings of a recently conducted research by the RICS School of Built Environment, Amity University. Firms involved in built environment sector in India are facing significant schedule and cost overrun on account of poor coordination, wastage of material, significant rework, and lack of information sharing etc.

Keeping aside other complexities facing the sector, project delivery can be made more efficient by using technological tools. Various IT-enabled project management techniques have been introduced in the market so far.

One such tool, BIM that offers digital representation of the project during the project lifecycle, right from planning to execution of the project, is gradually picking up among Indian firms. This can significantly improve operational efficiencies leading to reduction in project time and cost overruns that the sector currently faces.

As the awareness for BIM is increasing within the architecture, engineering and construction (AEC) sectors, around 22 per cent of the firms have already started using BIM; and over 78 per cent firms would adopt the technology in coming years, according to the findings.

According to findings of the research, BIM is used most extensively in real estate sector and mostly in design development and construction stage. Most users who are using BIM, fall in the residential segment, building housing projects followed by those doing mixed land use projects under the commercial category. The lowest usage was found to be in the non-housing sectors such as industrial and infrastructural developments.

While the popularity of BIM is increasing gradually, there are challenges in its usage. Commenting on the trend, Prof Anil Sawhney FRICS – Associate Dean and Director School of Construction, RICS School of Built Environment, Amity University said, “BIM holds tremendous potential for the Indian construction sector. It allows us to drive out the inefficiencies that are currently bogging the industry”. He further added that “Few issues remain before we see widespread use of BIM in the country. Compatibility between software platforms, availability of skilled resources, and lack of standard processes are among the major challenges deterring usage of BIM technology.”

“Work practices currently followed by the industry are out of sync with the processes required to make BIM implementation successful,” he added. High cost of hardware and software, unavailability of process implementation guidelines and lack of support from the government are some of the other challenges that the industry is facing.

Commenting on the trend, Neeraj Bansal, Partner and Head of Real Estate and Construction Practice, KPMG India said, “BIM has the potential to provide significant benefits to the Indian built environment sector. But implementation of BIM requires a change in the mindset of all stakeholders, as managements of most organizations are reluctant to adopt.” KPMG India was the research partner for the study and helped analyse the results of the survey.

“To promote BIM, it is highly essential that government agencies and clients lay stress on the usage of BIM in their procurement processes and contracts. As more benefits surface, and as more owners see and share higher profits, BIM will find full traction and will reshape the Indian built environment sector,” he added.

The report added, organizations who are taking up to BIM now or at the least are aware of the technology would be in a better position to serve the industry and would soon be in high demand. A majority of the construction industry stakeholders are intuitively convinced that there is savings in time and significant improvement in final quality. “Moving forward these very stakeholders need to come together and create an ecosystem for the widespread adoption of BIM in India so that the whole-of sector operational efficiencies can be improved” stated Sawhney.

 

UN Global Compact and RICS join hands to develop responsible business best practice toolkit

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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, Royal Institute of Chartered Surveyors, RICSTrack2Realty: To improve responsible business practices in the land, real estate and construction industry, the United Nations Global Compact and RICS (Royal Institution of Chartered Surveyors) will jointly develop a best practice toolkit for the sector. The collaboration marks the UN Global Compact’s first initiative to address corporate sustainability in a specific sector following the recent launch of its Post-2015 Business Engagement Architecture.

The land, real estate and construction sector represents approximately 70 per cent of global wealth. It contributes around one-tenth of total global GDP and represents seven per cent of overall employment.

The sector has substantial sustainability impacts on land development, resource use and waste generation during both the construction and occupational phases. There also exist issues related to human and labour rights during land development and construction, coupled with corruption.

In order to advance responsible and sustainable business practices, and to bring greater coherence and integration to the sector, the two-year project will deliver on three key objectives:

1. Identify key challenges and opportunities for the land, real estate and construction sector relating to the UN Global Compact’s issue areas of human rights, labour, environment and anti-corruption, as well as broader UN goals;

2. Engage UN Global Compact participants from the land, real estate and construction sector, as well as real estate users and stakeholders, to capture existing best practices and scale up sustainability initiatives; and

3. Develop a best practice toolkit built on the Global Compact’s ten principles to help companies in the land, real estate and construction sector and its downstream users tackle these issues and harness significant sustainability opportunities.

The process will be supported by a high-level global steering group of UN Global Compact participants from the areas of real estate, development, finance, investment, construction, research and training, global law firm Latham & Watkins and Karlsruhe Institute of Technology, RICS’ industry-academia partnership university.

At the kick-off meeting of the 15-member steering group, UN Global Compact Executive Director Georg Kell said, “We are pleased to partner with RICS to break ground on the UN Global Compact’s first sectoral initiative. There is tremendous opportunity for the land, real estate sector and construction sector to become a driving force for a more sustainable financial, economic, social and environmental system through collaboration and collective action.”

RICS CEO Sean Tompkins said, “The land, real estate and construction sector has an enormous impact on global economies, the environment and people’s lives. As a UN Global Compact signatory, RICS is fully committed to the advancement of the profession for the public good. Professional and ethical standards are at the very core of our existence.”

“Over the last two years, we have embarked on an ambitious programme to develop standards in partnership with other professional institutions, better reflecting the international and interconnected world that we and our members operate in. We are proud to be working with the UN Global Compact, our project partners and our fellow sectoral signatories and hope that this joint project and the best practice toolkit we will jointly develop will set an example for other industry sectors on how to engage businesses and other stakeholders to achieve greater impact of the Ten Principles in daily business practice.”

RICS South Asia Managing Director Sachin Sandhir said the partnership with the UN Global Compact is an evidence of RICS’ commitment towards embedding professional and ethical best practices within the built environment sectors (real estate, construction and infrastructure).”

“The efforts by RICS to bring about a positive change in the land, property and construction sectors are significant. The partnership means we identify prevent and mitigate any negative impacts on the society and the environment from the business, by incorporating good principles into the appropriate corporate strategies, policies and procedures,” he said.

Investments in office and retail space expected to increase: RICS India Commercial Survey Q2 2013

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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, Royal Institute of Chartered Surveyors, RICSTrack2Realty: Sentiments towards commercial real estate investment remains favourable, as India’s economy shows itself to be less vulnerable to the overall slowdown as compared to other Asia economies.

In coming quarters, despite a slight drop in occupier demand during the April-June period, office and retail sector will continue to drive investments, according to the RICS India Commercial Property Survey Q2 2013. The industrial segment is expected to lag as compared to office and retail.

While investment enquiries remained stable since the previous (Jan-March) quarter it is expected that capital values and transactions will continue to edge upwards as the year progresses. And investments and prices are both likely to remain in the positive territory in coming quarters across retail, office and industrial segments.

Along with signs of sluggishness in the economy, the commercial sector is facing challenges such as lack of funding for building more projects, inflated prices, excess inventory across large cities and delays in obtaining building approvals.

However, despite these hurdles and the slowdown in the economy, the mood of investors is little more positive as there is a sense of stability due to the recent measures such as the opening of foreign direct investments in retail. The retail sector is forecast to grow because of this announcement.

On the rental side, values appear to be moving higher despite some oversupply resulting from the completion of a series of projects sanctioned before the downturn in the economy.

The marked pick up in the activity of distressed properties in the first two quarters could be a concern. The expected supply is projected to continue rising in Q3 (July-September). However, the increase will be more modest than previously.

Commenting on the trend, Sachin Sandhir, Managing Director, RICS South Asia said, “Amidst economic uncertainty and liquidity crisis, the situation may continue until the economy gains renewed traction. Growth prospects for the next couple of quarters remain broadly flat reflecting a degree of caution in the sector as the Reserve Bank of India grapples with the challenge presented by a subdued economy and volatility in the currency.”

On the occupier side, it appears that the slowdown in economic growth over the past year is still taking its toll on occupier demand, although the economy is expected to tick up over the remaining part of the year 2013. On the supply side, inventory continued to rise in the second quarter. As a result the gap between the change in demand-supply recorded during the second quarter has remained in the negative territory.

Commenting on the findings of the report, Simon Rubinsohn, Chief Economist of RICS said, “Despite the disappointing economic picture, investor appetite for good quality real estate remains firm and this is likely to continue to underpin capital values in prime locations. The sector should also benefit from the recently announced government measures to open up the country to more foreign direct investment.”

“The occupier side of the market is a little more challenging with the flatter trend in occupier demand reflective of the more mixed macro picture. However, for the time being rent expectations remains positive which may be partly linked to the subdued trend in development starts over the past few years,” he added. The survey also notes that development starts were picking up despite the slow growth in economy.

Beyond land use & resource efficiency lies Smart City-I

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RICS, Smart City, Kamal Nath, Urban Development Minister, Ravi Sinha, Track2Media, Track2Realty, Track2Infra 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 ManagementTrack2Realty Exclusive: If Planning, Finance, Technology and Skills are the four key components of smart urban living, India lacks substantially on all the given parameters. While the world is increasingly moving ahead with real estate products adding smart quotient, in India the debate still hovers around unlocking land value & monetizing it after master plan of respective cities failed to adopt the successful global urban experiences. Track2Realty debates whether smart city ingredients should be optional reforms of real estate or made a mandatory provision.

When the European leaders met in September 2012 at Smart Cities Conference in Amsterdam to discuss how to create intelligent cities in an increasingly urbanized world, the focus was on developing low-carbon transport solutions, cutting-edge water/waste networks and renewable energy sources a priority as the continent looks to make its cities more pleasant places to live and more competitive destinations to invest.

Back in India, however, the urban planners seem to be groping at the entry level bottlenecks in that direction. The measures to unlock land value and monetizing it has just started, and that too as an option to meet fiscal challenges.

For long urbanization in this part of the world has been seen as a problem than a viable solution and hence improving land-use, easing congestion, maximising resource efficiency and reducing the environmental impact of our urban spaces been neglected till late.

Moreover, India’s Shanghai dreams revolved around Mumbai and other metropolitan cities, where lack of urban planning and infrastructural bottlenecks left the dream of intelligent cities just that—a dream.

The private developers no doubt have raised the bar in terms of India’s urban living, their world view nevertheless have been confined to mere green buildings and energy efficient buildings while rapid developments in countries like China and South Korea have revolutionized the urban landscape with the introduction of what modern town planners call ‘Smart City’ concepts. And they are not to be blamed for what is predominantly the prerogative of the government in terms of preparing the master plans.

Now that the master plans are ready for seven brand new cities spanning six states through Delhi-Mumbai Industrial Corridor (DMIC), the moot point is whether all the stake holders of India’s urbanisation, realty developers in particular, are ready to take the smart city concept to its next level.

…..to be continued

RICS and Amity University establish India’s first ‘School of Built Environment’

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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, Royal Institute of Chartered Surveyors, RICSTrack2Realty: The Royal Institution of Chartered Surveyors (RICS), the world’s leading professional qualification and standard setting body in land, property and construction sector and Amity University have established the RICS School of Built Environment, Amity University at Noida campus, to address the shortage of skilled professionals in the sector.

Envisioned as a modern world class institution, the School of Built Environment will offer a range of academic degree programs, including 3 year full time BBA in Real Estate and Urban Infrastructure. 2 year full time MBA in Real Estate and Urban Infrastructure (with specialization in Investment Finance or Marketing) and 2 year full time MBA in Construction Project Management.

The School will also offer Management Development Programs to meet the training and development requirements of existing professionals in sector.

This industry led academic initiative is supported by the Ministry of Urban Development, where the School aims to bridge the professional skills gap in real estate, construction, infrastructure and associated services – collectively termed as ‘built environment’, by delivering ‘industry ready’ professionals from the day students complete their education and step into the industry.

RICS also announced the appointment of Prof. K.T. Ravindran as Dean of the RICS School of Built Environment, Amity University. An internationally acclaimed academician, he has over 30 years experience in academia, and was the former Dean of the School of Planning and Architecture and the Chairman of the Delhi Urban Arts Commission. He is also the founder and President of the Institute of Urban Designers – India, which is a professional association of qualified urban designers.

 Globally, the built environment sector accounts for 10% of the work force, 70% of wealth, 60% of all utilized materials, 40% of carbon emissions and 60% of energy utilization. In India, the sector accounts for nearly 17.5% of the GDP, second only to agriculture and is the second largest employer with over 50 million people working in built environment.

Inaugurating the RICS School of Built Environment, Amity University, Kamal Nath, Union Minister of Urban Development, Government of India said, “I see this endeavour between RICS and Amity University in setting up the School of Built Environment as a first-of-its-kind initiative that will lay the foundation to setting new benchmarks that other institutions will subsequently try and emulate. The challenges of urbanization in India are already immense. India has a very young demographic profile that’s extremely mobile and we’re already seeing small towns becoming the hub of economic activity.”

“This is probably the largest aspirational society on the planet with growing disposable incomes – moving from the economics of sustenance to the economics of gratification and we see this reflected in the built environment domain as well. One of the biggest challenges facing the real-estate, construction and infrastructure sectors is that of good human resources. The RICS School of Built Environment, Amity University will therefore enable quality and relevant education for young professionals entering this sector. I also look forward to the School of Built Environment creating ‘next practices’ which in turn will lead to ‘best practices’ for the industry. The government will be happy to assist this partnership in any way possible,” Kamal Nath added.

Commenting on the importance of this initiative, Sachin Sandhir, MD-RICS South Asia said, “Built environment is severely being impacted by a demand-supply mismatch of professionals. The projected shortage of various core and specialized professionals to the tune of 44 million is a cause for significant concern, as it threatens the sustainability of high growth sectors of real-estate, construction and infrastructure, which contribute significantly to the nation’s economic development.”

“Considering the dearth of quality talent within built environment stems from the absence of specialized education in the sector, we are extremely glad to have set up the RICS School of Built Environment, Amity University as a world-class, industry led academic institution that will help bridge the skills gap in India by equipping 15,000-20,000 professionals over the next three to five years, thereby ensuring that the growing demand for quality real estate, construction and infrastructure in the country are adequately met, said Sachin.”

According to Atul Chauhan, Chancellor, Amity University, “With the establishment of the RICS School of Built Environment, Amity University has enhanced its commitment to provide world class education across disciplines within the real estate, construction and infrastructure sectors. India is one of the fastest growing economies of the world, where new townships and infrastructure development are rapidly changing the face of the country. We see this initiative as an opportunity to deliver quality education and serve as a hub for research and develop technical standards and best practices in the sector and ensuring that in the times to come ‘built environment’ will be viewed as a ‘career of choice’ by all aspiring professionals.”

Echoing the sentiments of the others, Prof. K.T. Ravindran, Dean, RICS School of Built Environment, Amity University said, “Although the real estate and construction sectors are key contributors to the economy, there is a complete vacuum of education and training options available for professionals to enhance and hone their skills. The School of Built Environment has been launched to provide students with a strong foundation for a specialized career in this fast growing sector. Top-of-the-line faculty sourced from around the world in a campus comparable to the best anywhere, along with an innovatively designed curriculum will ensure that the graduates passing out from the School are wholesome, employment-ready professionals that meet the changing needs of the industry.”

Kamal Nath promises collaboration with UK to improve urban infrastructure

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RICS, Smart City, Kamal Nath, Urban Development Minister, Ravi Sinha, Track2Media, Track2Realty, Track2Infra 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 ManagementTrack2Realty: Union Minister for Urban Development Kamal Nath has promised to enhance collaboration with UK to improve overall urban infrastructure. He was speaking on Monday, Oct 8, at RICS international conference-Cities 2030: Are we on track?

Alderman David Wootton, The Righteous Lord Mayor of City of London affirmed UK’s support in providing access to finance and liquidity and also the requisite skills and specialism along the supply chain. RICS white paper titled SMART CITIES was also released at the event.

RICS, with support from the Ministry of Urban Development, and The Euro India Centre, organized this international conference on ‘Cities 2030: Are we on track?’. Vision for cities is a global policy and a research programme that aims at examining key thinking on the delivery of the sustainable cities of 2030 and beyond.

Additionally, the conference also delved deeper into 4 key pillars of infrastructure development– Planning, Finance, Technology and Skills. The focus of the one-day conference was on whether India is on track to meet all the necessary and desired outcomes to shape India’s urban future.

Kamal Nath and Alderman David Wootton were the Chief Guest and Guest of Honour respectively. The conference brought together recognized thought leaders and key decision makers from India and internationally, to help identify and take stock of tools and measures that will help integrate planning organisations and processes, build capacity in infrastructure, financially empower the public sector and promote innovation in urban management.

The RICS white paper was released by Paul Doherty, President and CEO, the digit group Inc. The paper outlines the challenges, solutions, results and next steps for any city to become a smart city by leveraging the digital DNA of the built environment.

The paper draws some interesting analogies of a city with a human body with its cardiovascular system (infrastructure), respiratory and digestive systems (energy, waste) and even a primitive nervous system (telecommunications). It urges city makers to think of their cities as a network, with each building acting as a server.

A major issue for a city’s IT department is how to manage large quantities of data generated by the city departments and wider ecosystem.  Cities that solve this issue will be on the correct path to evolving into Smart Cities.  No matter which of the 10 Smart City elements a city decides to focus on, data generation, compilation and interpretation will be key drivers to all policies, programs, projects and measures.

Built Environment data is already captured by city’s in various formats and processes; Building Departments, Engineering Departments, Land Departments, Planning Departments, Tax Departments, Postal Services, they all collect and manage vast amounts of data that when viewed as a whole, create the virtual representation of your physical city.   The accuracy, authentication and integration of this city data is the key to a proactive approach to entering a path to becoming a Smart City.

Taking note of the report and acknowledging the need to create a smart city roadmap for India, Alderman David Wootton said, “The UK and the City of London can do much to support India’s infrastructure development needs – both in providing access to finance and liquidity and also the requisite skills and specialism along the supply chain – in particular the vital legal resources to tailor contracts and agreements to ensure the right project with the right outcomes. It is essential that the legal and financial framework is attractive to investors who will need to invest in the long term, and we are the collectors and disseminators of best practice, ensuring projects are delivered on time, to cost and to world class standards.”

Acknowledging Alderman David Wootton’s message, Kamal Nath said, “We in India have the most restrictive FAR. Even by Asian standards, it’s exceptionally low. This needs to be revised looking at the infrastructure and the location where it can be increased. One of the possibilities being discussed is transit oriented development where we can have mixed use and higher and more intensive development.”

In this context Kamal Nath further highlighted, “In India we have a need to learn from everywhere particularly from the UK. India can benefit from the British experience. We have recently signed an MoU with the UK on urban regeneration and development and its my firm belief that such a partnership would provide an enabling platform and deepen the engagement in the areas of sustainable master-planning, transport planning, land economics, heritage management, regeneration capacity building, governance, PPP arrangements. This is very important because some of the huge investment of US$ 1 trillion that we require has to come from the private sector. One of the big things in managing urbanization is going to be capacity building. Besides capacity building, the three other important areas will be planning, funding and urban governance. RICS has a unique contribution to make to the sustainable evolution of cities in India as it can draw upon the substantial shared knowledge and expertise that exists all across the world. My ministry would be happy to encourage and support such endeavors of RICS.”

Speaking at the Cities 2030 conference, Sachin Sandhir, Managing Director, RICS South Asia said, “I thank Hon’ble Minister for Urban Development Kamal Nath, Alderman David Wootton, The Rt. Lord Mayor of City of London and Dr. (Mrs) Isher Judge Ahluwalia for highlighting the challenges of explosive urban growth that has created the reality that Indian cities must change their consumption and development patterns in favor of smarter and more sustainable habits.”

He further added, “In the context of our current levels of urbanization, which are likely to increase manifold in the years to come, it is inevitable that India creates infrastructure and urban development of global standards. One key challenge that India is likely to face, while moving forward in the direction of unprecedented growth, is the absence of skilled and trained professionals that will be needed to deliver the required real estate and construction. RICS intends to bridge this gap by making available to the industry qualified professionals and experts who provide professional advice on matters as wide-ranging as sustainable urban development; affordable housing; capital markets; urban and rural infrastructure; project management and business valuation.”

The conference was attended by eminent government officials, industry experts, and policymakers

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