Land Bill: With allies' and Opposition's united criticism, is PM Modi on backfoot for first time?

Prime minister Narendra Modi is not one to admit mistakes easily, especially in Parliament. Modi often brazens out opposition barbs with resolute silence or scathing counter-attacks. But on April 23 he came close to conceding that his government may not have always been right. 

"We all have to think where we went wrong, which wrong turn did we take, what did we do wrong before, what did we do wrong in the past 10 months," the prime minister told fellow parliamentarians; his voice sombre, the tone conciliatory as he spoke on farmers' distress.

It was the day after a farmer allegedly hung himself to death from a tree amidst hundreds of people gathered for an Aam Aadmi Party rally. Ever since the government promulgated the land acquisition ordinance on December 31, 2014, the massive tide of popularity that Modi had whipped up for himself, has ebbed somewhat. 

The aura of invincibility was dented by the BJP's massive loss in the Delhi state elections. Still, the prime minister's personal charisma remained largely undiminished. That too reduced somewhat when unseasonal rains and hailstorms devastated standing crops in many states, wreaking havoc with the finances of lakhs of farmers. 

It didn't help the government that calamity struck when it was trying to push through legislation that would make acquiring agricultural land for large projects easier. The government was exposed to widespread criticism over disaster management though much of it lies in the states' domain. It was also cornered for not raising minimum support prices for crops enough.

It filled the opposition Congress' sails with wind, allowing its on-off leader Rahul Gandhi to stage a somewhat stormy return. The dramatic incident of the alleged suicide at the AAP rally was caught on camera and loop-played on national television till Gajendra Singh, the dead Rajasthan farmer, somehow became the symbol of frustration and anger spawned by freak weather, falling commodity prices and a legislation that is gaining notoriety as anti-farmer. 

The multiple issues, though substantively separate, are coagulated in a growing perception that the Modi government is insensitive to farmers' concerns. Ramlakhan Yadav, the pradhan of Zafarpur village in Barabanki district of Uttar Pradesh, says Modi was voted to power on the promise of better crop prices and farmer-friendly policies.

"We had looked forward to better days, but are yet to see them." He is most cut up with the land acquisition bill that is currently on the table in Parliament. "There is no clarity in it of how our compensation will be calculated," says Yadav. He also fears that farmers will be stripped of legal recourse. "We have learnt that the right of farmers to challenge the acquisition in court would also be snatched away. The way things look right now the new law seems scary."

Even as the land acquisition bill was generating heat, unseasonal rains and hailstorms destroyed standing crops in several states. According to the agriculture ministry's latest estimates, the weather affected 18.98 million hectares. The government did respond fairly quickly, deploying its best assets to the states. Senior Cabinet members such as agriculture minister Radha Mohan Singh, home minister Rajnath Singh and finance minister Arun Jaitley toured states instead of the usual practice of sending bureaucrats. The government even increased compensation. 

Earlier, it used to pay compensation if the damage was assessed to be of at least half the crop. It has now decided to compensate even if only a third of the crop is damaged. Radha Mohan Singh told ET the government was doing its best to provide relief to the affected farmers.

In addition to compensation for damaged crops, Singh said the government was trying to ensure the minimum support price system benefi ts the maximum number of farmers. Yet the clouds that crept up on unsuspecting farmers also cast its shadow on the Modi government, which was trying hard to push the land bill. Even many Sangh Parivar entities turned critics. "The basic problem is that the government lacks a long-term plan. 

The government is not even thinking about it," says Arun Ojha, national convenor of the Swadeshi Jagran Manch, a Rashtriya Swayamsevak Sangh (RSS) offshoot that advocates promoting local industry over foreign investment. "The government cannot see beyond a pro-industries development model. This will only attract nature's curse in the long run."

"Things are ominous," a senior functionary of the RSS, the mothership of the Sangh Parivar, including the BJP, told ET. He says the government has failed to grasp the gravity of the situation. "Though the land bill is not related to farmers' distress, it appears insensitive on the part of the government to keep pushing for it at this juncture.

They have to slow down," he says. At least one BJP member of Parliament appears to be ring-fencing himself from the fl ak. Sultanpur MP Varun Gandhi, disturbed by the state of farmers in his constituency, has decided to adopt some of them. Not commenting on whether the government effort was enough, Gandhi said he had decided to take civil action. 

"To begin with, I am adopting fi ve families and paying them Rs 1 lakh each. I have approached the BJP organisation and other well-off people to come forward and adopt distressed farmer families." 

While the government and farmers appear equally distressed, the Congress has got new wind in its sails. Till a few weeks ago, the party was ducking jokes about its "missing leader" Rahul Gandhi who had gone on a two-month vacation to undisclosed destinations. Now Gandhi has returned and quickly positioned himself as a friend of farmers unlike, in his words, "the government for the suits".

"The problem with Prime Minister Modi and his government is the manner in which they are obsessed with humouring a select group of industrialists and corporates," says AICC general secretary Shakeel Ahmad who is in charge of agrarian states such as Punjab and Haryana for the Congress. 

"Understandably, the government has no time to focus on dealing with the serial issues that have plunged our farmers' lives into crises." Up until December last year, the Modi government appeared to be sure-footed. It introduced the land acquisition bill immediately after the Parliament's winter session, giving the impression it was too eager to oblige industrialists who have been complaining of legal hurdles in buying land for factories and infrastructure projects. 

Yet, the fi nance ministry replied to a recent RTI query that only 8% of projects were stalled due to problems related to land acquisition. Talking to ET from Jaipur, Rajasthan PCC chief Sachin Pilot said the Congress will fi ght the land bill inside Parliament and on the streets. 

Pilot said as a party that heralded economic reforms, the Congress is neither opposed to industry or investment but it is also committed to the cause of farmers. "When we see the Modi government changing the Land Acquisition Act by incorporating provisions that will help the takeover of farmers' land easily — without the consent clause, without provisions for fair compensation, without safeguard for fertile lands — the Congress party will not take it lying down," he said.

BJP's fellow travellers too are not happy with diluting the consent clause. The Bharatiya Kisan Sangh, the farmers' organisation of the RSS, is opposed to acquiring land without a majority agreeing. BKS general secretary Prabhakar Kelkar told ET the government should have been more patient with the ordinance and the bill. 

He said the organisation is not opposed to projects that will bring development and prosperity to rural areas but it will oppose land acquisitions for projects such as high-speed trains. 

The senior RSS functionary told ET that when the Modi government was sworn in, a much-regarded astrologer in South India had issued an ominous warning: "The time and day of the swearing in is not auspicious and the government will never be comfortable on the fi nancial and economic front." 

He said he wouldn't blame the stars. It was the government that had failed to grasp the gravity of the situation. 

Co-opting farmers into development

Unnao district, some 80 km from Lucknow, bears testimony that farmers could be willing partners in development if the incentive is right. The UP government is currently acquiring land for a six-lane expressway connecting Agra to the state capital.

It has almost completed buying land for the 302-km road in just seven months without a single protest. "We had initially opposed giving up the land. But later officials came to our doorstep and we gained confidence," says Devesh Kumar of Tala Sarai village in Unnao who got Rs 45.60 lakh for less than two bighas of their family land. 

"We offered four times the circle rate to ensure farmers get a good price and have distributed more than Rs2,500 crore as compensation till now," he says. 

SOURCE: Economic Times

Is Sector 62 in Noida the best place to invest?

What really makes Sector 62 in Noida a preferred place to invest is the fact that no matter whether you live there or not, your apartment is sure to give a healthy monthly rental income. As per the findings of Magicbricks, Sector 62 in Noida has witnessed a rise in rental values by 2 per cent. The gross yield (it is calculated as the annual return on an investment prior to taxes and expenses divided by the current price of the investment) of the area is 3.01 per cent. The locality has become the most preferred part of Noida in terms of both buying and renting.

Here’s a quick snapshot of the positives which make Sector 62 the best buy in Noida:

• It is one of the well developed and established sectors of Noida with the presence of schools, hospitals, malls, commercial complexes, retail outlets, banks and every other day to day convenience
• Sector 62, Noida offers a mix of residential and commercial property. The sector also has presence of MNC’s and SEZ’s
• Commercial areas of Sector 63 and other important parts of Noida such as Sectors 18, 16, 15, amongst others are located in close vicinity
• Anshul, a resident of the locality says, “Sector-62 is an ideally situated locality of Noida and is close to Expressway and National Highway 24. There are a number of colleges and institute nearby such as JSS, Hierank Business School, Jaipuria Institute of Management, IMS Noida, etc.
• It enjoys proximity with Ghaziabad at 16.2 km, Delhi at 24.6 km via NH24 and Greater Noida at 26 km via Noida Greater Noida Link Road.  
• Some of the renowned organizations situated in proximity are TechMahindra, TCS, Alcatel Lucent, CMC, NSN, CSC, Sapient, Global Logic, among others
• Property owners who have leased their units in the locality are earning healthy rental income every month enjoying healthy capital appreciation

Capital value:  Average capital values in the locality ranges from Rs 3,000-8,000 per sq ft. The average value of a 2BHK in Sector 62 is Rs 20 lakh-Rs 1 crore for a property sized 800-1400 sq ft. For a 3BHK property, the average values range between Rs 25 lakh-Rs 1.5 crore for about 800 sq ft – 2500 sq ft of space.

Rental value: For a 2BHK apartment, you would have to pay a monthly rental between Rs 13,000 to 25,000 with sizes varying from 900 to 1200 sq ft. Similarly, a larger unit i.e. 3BHK is available for Rs 18,000 to 25,000 per month with sizes varying from 1200 to 1900 sq ft.

SOURCE: Magicbricks

Cabinet nod To Rs 1 lakh cr for urban renewal, 100 smart cities to take off

The Union Cabinet on Wednesday cleared a project to develop 100 smart cities and rejuvenate another 500 in the country, allocating close to Rs 1 lakh crore for a period of five years.

While Rs 48,000 crore has been allowed for 100 smart cities, now renamed Smart Cities Mission, another Rs 50,000 crore has been sanctioned for Atal Mission for Rejuvenation and Urban Transformation (Amrut) of 500 cities.  States along with local bodies and corporate entities have to spend the most in the projects, experts said. The Amrut project could lead to cities becoming smart subsequently.

Each city would get Rs 100 crore every year from the Centre for five years. The remaining money has to come from the states, urban bodies and the consortium that they form with corporate entities. Also, 10 per cent of budget allocation will be given to states/Union Territories as incentive based on achievement of reforms during the previous year. A reform matrix with timelines would be circulated to states later. The project will be implemented by special purpose vehicles (SPV) to be created for each city. State governments will need to ensure steady stream of resources for the SPVs.

SMART INDIA

Rs 48,000 cr for 100 cities under Smart Cities Mission   Rs 50,000 cr for 500 cities under Atal Mission for Rejuvenation and Urban Transformation   Rs 100 cr for each city every year from the Centre for five years   10% of Budget allocation will be given to states/Union Territories as incentive based on achievement of reforms during the previous year   20 cities likely to be shortlisted in the first phase

Names of the smart cities will be finalised through a competition, called Smart City Challenge. Although this has not been specified by the government, only about 20 cities are likely to be shortlisted in the first phase.   At the time of formally announcing the smart cities project, the Union Budget had allocated Rs 7,016 crore for it. However, in the February 2015 Budget, the project was allotted only Rs 143 crore. The Budget documents showed only Rs 924 crore of the Rs 7,016 crore had been spent.     

After the Cabinet approval, a government statement said it was a determined bid to recast the urban landscape of the country and drive economic growth. The Smart City Challenge is intended to link financing with the ability of the cities to perform to achieve the mission objectives, according to the statement. Each state will shortlist a certain number of smart city aspirants and prepare proposals for further evaluation to get central support.  Pratap Padode, founder and director of the Smart Cities Council, said the Cabinet’s green signal to the project was one big move that could catapult India into a smart nation by invigorating urban renewal for its 30 per cent population and create engines of growth that would fuel the survival of the remaining 70 per cent spread across over 500,000 hamlets and villages.

Arindam Guha, senior director, Deloitte India, said while the outlay of Rs 100 crore a city for the smart city programme might appear to be on the lower side, this would hopefully be supplemented by state governments, urban local bodies and private sector.

“However, for private sector players to invest in this space, most cities would have to take a relook at their tariff structure for urban services so that they not only recover the cost of service delivery (which only a few cities in the country currently do) but are also able to service these investments.’’

Most of the smart cities will be brownfield (old) ventures and will be implemented through an ‘area-based’ approach including retrofitting and redevelopment. There will be greenfield (new) projects, too, that will mean development of new cities. Focus will be on core infrastructure services like adequate and clean water supply, sanitation and solid waste management, efficient urban mobility and public transport, affordable housing for the poor, power supply, robust information technology connectivity, governance, safety and security of citizens, health and education, and sustainable urban environment.

As for the rejuvenation mission, it will be implemented in 500 cities and towns each with a population of 100,000 and above, some cities situated on stems of main rivers, a few capital cities and important cities located in hilly areas, islands and tourist areas. For this, states will get the flexibility of designing schemes based on the needs of identified cities.

Central assistance to Amrut will be 50 per cent of project cost for cities and towns with a population of up to a million and one-third of the project cost for those with a population of above a million. Central assistance will be released in three instalments in the ratio of 20:40:40 based on achievements. Amrut seeks to lay a foundation to enable cities and towns to eventually grow into smart cities.

SOURCE: Business Standard

Real estate sees 85% higher inflows from PE funds in Q1

Global real estate consultancy, Cushman & Wakefield’s latest report on Private Equity investments in Real Estate (PERE) revealed that total inflows in the sector for Q1 2015 were INR 5,168 crores / INR 51.7 billion (bn) (USD 0.8 bn), higher by 85% from the same quarter a year ago (INR 2,800 crores / INR 28.0 bn / USD 0.4 bn). However, it was marginally lower by 5.6% compared to the previous quarter. The residential sector attracted the highest transaction volumes during the quarter with a 53% share in total investment activity, followed by the commercial office sector, which had a 47% share.

The increase in PERE investments during Q1 2015 was due to improved market sentiments and higher investments in residential and commercial office assets, which increased by 158% and 68% respectively compared to Q1 2014.  

Although Chennai was the only city, which witnessed investment in commercial office in Q1 2015, leased office assets such as IT Parks and IT-SEZs are likely to gain significant interest from foreign investors, due to low risk owing to high occupancy levels along with stable rental yields and significant potential for capital value appreciation. In addition, the introduction of REITs in India is likely to boost investments as investors now have an exit route.

In Q1 2015, residential assets recorded the second highest PE investment since 2008. The total value of investments in the residential sector was 2.5 times more than Q1 2014 and was recorded at INR 2,752 crores / INR 27.5 bn (USD 0.4 bn). Relatively attractive return on investments and easy exits, increased focus on housing from the Narendra Modi-led BJP government and high funding needs are likely to sustain the high investments in residential assets. Amidst liquidity issues faced by residential developers due to subdued demand and restricted access to debt funding, PE funds have emerged as an important alternate source to meet the funding requirements. PE funds continue to make investments in the residential sector at the project level rather than at the entity level to protect their investments.

The total investment in commercial office assets was recorded at INR 2,416 crores / INR 24.2 bn (USD 0.4 bn), which increased by 68% y-o-y. Q1 2015 witnessed the third highest investment in the commercial office sector since 2008. Attractive valuations, stable yields, significant potential for capital value appreciation due to improving macro-economic conditions, healthy demand for office space and clarity on REITs has led to increased interest from foreign investors for prime office assets across the top cities. Around USD 3.4 bn has been invested in the commercial office sector since 2011, compared to only USD 1.1 bn between 2008 and 2010.

Commenting on the report, Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said, “With improving macro-economic conditions, enabling policy environment, recovering demand, attractive valuations and increasing capital requirements of the Indian real estate sector, PE funds are likely to increase their investments in the next few years. Residential and leased office assets will remain as favorites with PE funds as demand for funding remains strong in the residential projects and given the 35% y-o-y increase in office net absorption, there is ample scope for the funds to generate high yet stable rental incomes. However, the private equity funds are likely to take only calculated risks and collaborate strictly with renowned developers to protect their investments.”

SOURCE: Moneycontrol.com

Spain proposes to develop Delhi as smart city

The Spanish Government submitted a Draft Memorandum of Understanding for cooperation in developing smart and sustainable cities in India. The Draft MoU relating to urban development was presented during the meeting of a high level Spanish delegation led by its Minister of Foreign Affairs and Cooperation  Jose Garcia – Margallo y Marfil with the Minister of Urban Development  M.Venkaiah Naidu in Parliament House. Spain has proposed to assist in developing Delhi as the first global and smart city in India under the framework of this Draft MoU. 

Spain has come up with the Draft MoU further to the visit of  Venkaiah Naidu to Barcelona to attend the Smart City Expo World Congress in November last year and the meeting of Spain’s Secretary of State for Trade Jamie Garcia Legaz in February this year with  Naidu. 

Welcoming Spain’s interest in the Indian Government’s initiative of building smart cities,  Naidu told the delegation that the Draft MoU would be examined by the Government for further action in consultation with all concerned agencies. 

The Spanish Minister said that his country is among the world leaders in building Railway and Metro networks, Roads and Ports besides in Shipping, Recycling of Waste, Water Management and promoting Renewable Energy Sources and was keen to associate with India in its efforts for infrastructure promotion. The visiting Minister referred to the extensive work done by Spanish companies in Latin American countries in this regard. 

 Venkaiah Naidu gave a detailed account of the measures being taken by the central government to promote investments into the country by enhancing the ease of doing business, developing infrastructure, liberalizing FDI norms etc. 

During the discussions it transpired that Spanish Foreign Minister is visiting India after 42 years on a substantial visit and five high level visits of Spanish leaders to India have taken place during 2015 so far including those of Ministers of Defence, Trade and Prime Minister’s Special Envoy highlighting Spain’s interest in the development initiatives of the Indian Government. 

SOURCE: Magicbricks

Earthquake: NCR realtors say they adhere to all safety norms

Amid concerns over high-rise buildings' ability to withstand earthquakes, realtors' body CREDAI today said developers in the national capital region are adhering to all safety norms to ensure structural strength of the buildings to face such natural disasters. 
A strong earthquake recently hit Nepal and some parts of India, following which concerns have been raised about the safety standards of high-rise buildings. 

The industry body said that that Delhi-NCR region did not witness any damage to buildings despite heavy tremors. 
"Since Delhi/NCR comes under seismic zone IV, no effort is spared so that all structures built by the developers' community are as per norms that ensure requisite structural strength to withstand an earthquake," CREDAI-NCR President Manoj Gaur said in a statement. 
He highlighted that stringent approval mechanisms are in place to meet the highest safety standards comprising three layers of approval. 
Gaur said that the project designs have to be approved by qualified architects. To bolster safety norms, every project structure, layout and design is vetted by engineering experts from institutions such as IIT and NIT, and is put through various tests. 
"Strict compliance is done at site by developers which involve regular site visits by structure consultants and monitoring of overall execution work by qualified engineers. At CREDAI, we have made it mandatory for all developers to adhere to these rules diligently," Gaur said. 

Stating that the safety and wellbeing of citizens and customers is prime moral responsibility, he said the industry is willing to put-in best expertise in building structure, design and layout. 
"Despite heavy Tremor, there is not even a minor loss in whole region which proves that quality development is taking place in NCR region. Only well designed multi-storied buildings can stay erected in earthquake because they are designed accordingly," Gaur said. 


SOURCE:Economic Times

IMPORTANCE OF CUSTOMER CONNECT WITH EVOLVING REALTY SECTOR

Today real estate sector is growing and developing at a rapid pace. Realty segment is one of the biggest contributors to India’s GDP and generating employment opportunities as well. In every sector and industry, customers are remarkably important because they are the driving force behind their operations and real estate sector is no exception. Bearing in mind all these important aspects it’s very important that customer’s needs, requirements and rights are given due respect and consideration. Today, real estate sector is flourishing and is undergoing evolving phase. Earlier, customers used to consider real estate to be confined to just residential space. But now with time, real estate has grown and it now covers commercial as well as mix land projects. People now look real estate as an investment opportunity too, as the returns are higher and safer than any other investment option. At this point of time when realty sector is on its way to grow and develop significantly, connecting with customers is very essential.

With advancement in technology, access to information is much easier. Everyone nowadays is tech-savvy and opts to find information of any kind online. Here, comes the need to connect directly with customers. It is also applicable to real estate sector and due importance should be given to customers not just at the time of sale and purchase of property but also after sale services should be taken care of. These are the factors which help realty firms to get recognition and help them in creating a solid base in market as well. Good customer care makes the patrons happy and they also recommend the realty firm to others and word of mouth publicity is done. They may also come back as second home buyers or future investors. They will not stop themselves to recognize and praise the good work and will also turn to online platforms to recognize the eminent players. Online platforms are therefore becoming more important as technological advancements have brought realty sector online too. Updates about property, news, reviews and all the related information is available online and in fact many property developers also give option to book properties online.

India International Property Awards (IIPA), support the fact that buyers being the back bone of realty sector, should have full right to information about each and every aspect of properties they are investing in. Not just this, they should also be able to put forward their own views, good or bad, about the realty firms and their works. By doing so, everyone interested in realty sector would get authentic information, the source being reliable and trustworthy. Being the actual users of the property, customers and general public would always present correct information about the quality of work of any particular developer.

IIPA Awards intends to recognize and appreciate all those real estate firms and fraternities who have done excellent works in their fields and have supported the growth of this sector. By understanding the importance of correct, true and reliable information for selecting the most deserving nominee, IIPA has brought online polling as a robust tool in the hand of customers. For the first time in the history of Indian Real Estate, Online polling would be done to get authentic and reliable information. Such information would be true and correct in every way as the basis of such data are the views and assessments of actual users.  IIPA has made the online polling option available for all and anyone ranging from developers to customers and general public can cast their votes in the favor of their best nominee under different categories. The results would be accurate, honest and reliable. Online polling would bring all the Realty developers, networkers and realty segment specialists on a common platform and their work would be reviewed by the actual users. Getting results out of such systematized and candid system would help the entire realty sector and everyone associated with it to distinguish the excellent and finest of works.  Online polling would allow participants to choose the most eligible contender and the results would be reliable and genuine. IIPA Awards by initiating online polling intends to recognize and acknowledge the works of those realty fraternities who take that extra effort for the happiness and satisfaction of their consumers. They understand their duties toward the buyers and realize the value of their hard earned money. Online polling is to select best of realty players, extracts results from actual users and that feeling of getting recognized through true and honest views would be fulfilling and very pleasing. This would not only help realty fraternities to showcase and display their good work but also help in building strong goodwill and brand name in the market.

SOURCE: http://iipa2015.blogspot.in/

Your RWA is for your own good

Mr Sharma was looking for a home for his two daughters who are in Delhi for their higher education. Since security was a major challenge in metro cities, they were looking for abode which has a family neighbourhood and arrangements for safety along with amenities for after-work relaxation.  For them- a colony with efficient Resident Welfare Association (RWA) was a relevant choice!

As very recently Delhi government was batting for Mohalla Sabha, to bring local governance into play, RWAs have a different take on the move. They want the present government to empower their committees rather than create one more level. At the same time, RWAs also want the associations to remain apolitical so that development remains away from policy paralysis.

So what do these RWAs do?

This is a growing trend not just in big cities but also in Tier II towns where gated communities and colonies have taken over the realty landscape. Usually such associations are responsible for maintaining common infrastructure by giving out responsibilities to all its members.

Moreover, these associations hold legal identity if registered with the government. In fact, they have a significant role as these are bound to represent the concerns of residents. The latest one is Supertech case in Noida where RWAs went up to court against illegal construction of the tower.

Impact of RWAs on realty values

An efficient RWA gives way to well-maintained infrastructure including maintenance of parks, security guards, day-to-day affairs and public events. Hence, property experts have different view on it.

“RWAs impact property values but in a very indirect way. Who doesn’t want efficient security assistance or a green well maintained park. These things always play a key role while making purchasing decision, especially amongst young buyers as most of them are working and look for a place to relax and consider safe,” says Himanshu Gehlot, one of the local property consultant and ex-employee of a leading builders’ firm in North India.

Buying in a colony with RWAs is always a better option. It offers a better lifestyle and a better neighborhood for your children to live in!

SOURCE: Magicbricks

PE investments in real estate up 85% in January-March period

Private equity (PE) investments in India’s real estate companies rose 85% in the January-March period from a year ago, a report said.

PE firms invested Rs.5,168 crore in real estate firms during the period, up from Rs.2,800 crore a year ago, the report from global property consultancy Cushman and Wakefield said. However, compared to the October-December quarter, the investment was 5.6% lower.

Improving macro-economic conditions and increasing capital requirements of the Indian real estate sector have sparked PE firms’ growing interest in real estate firms.

“Amidst liquidity issues faced by residential developers due to subdued demand and restricted access to debt funding, PE funds have emerged as an important alternate source to meet the funding requirements,” the report said.

The residential sector attracted 53% of these funds, while the rest went to the office sector.

Total PE investments in residential assets, which stood at Rs.2,752 crore, is the second highest since 2008. In the commercial space, total investment at Rs.2,416 crore is the third highest since 2008.

“The increase in PERE (PE in real estate) investments during Q1 2015 was due to improved market sentiments and higher investments in residential and commercial office assets, which increased by 158% and 68% respectively compared to Q1 2014,” the report said.

While the total number of deals fell to 16 in the first quarter of 2015 from 18 in the same period last year, the average deal size more than doubled atRs.320 crore from Rs.150 crore in the first quarter of 2014, the report said.

Relatively attractive return on investments and easy exits, increased focus on housing from the government and high funding needs are likely to sustain the high investments in residential assets, it added.

The report said that leased office assets such as information technology (IT) parks and IT-SEZs (special economic zones) are likely to gain “significant interest from foreign investors, due to low risk owing to high occupancy levels along with stable rental yields and significant potential for capital value appreciation”.

Around $3.4 billion has been invested in the commercial office sector since 2011, compared to only $1.1 billion between 2008 and 2010.

“With improving macro-economic conditions, enabling policy environment, recovering demand, attractive valuations and increasing capital requirements of the Indian real estate sector, PE funds are likely to increase their investments in the next few years,” said Sanjay Dutt, executive managing director, South Asia, Cushman and Wakefield.

He said residential and leased office assets will remain favourites with PE funds as capital demand remains strong in residential projects. With a 35% increase in office net absorption, there is ample scope for the funds to generate high yet stable rental incomes.

Sanjay Mehrotra, national head (sales and marketing) at L&T Realty, the real estate arm of Larsen and Toubro Ltd, said the improved return on the equity on real estate investments could be one of the factors that are drawing PE companies into India. However, he cautioned that it is very difficult to match up with the expectations of PE firms.

SOURCE: Livemint

Maharashtra collaborates with Israel on Smart Cities

Smart Cities in Maharashtra could very well end up looking as "smart" as Tel-Aviv, the capital of Israel. 

In a key stride in collaboration between the State and Israel, Maharashtra Chief Minister Devendra Fadnavis and Tel Aviv Mayor Ron Huldai on Monday agreed to cooperate in building smart cities.

After the discussions held on Smart City partnership, the two parties-Maharashtra government and Municipality of Tel Aviv-agreed to discuss common challenges faced by modern cities and possible solutions. They would also explore the possibility of using Indian IT capabilities to increase efficiency of smart urban solutions.

On a four-day visit to the country, Mr. Fadnavis was briefed on the concept and implementation of the Smart City project in Tel Aviv, which was adjudged as the ‘World’s Smartest City’ at the Smart City Expo World Congress held in 2014.  Mr. Fadnavis held discussions with Mr. Huldai, besides meeting other experts and officials.

Maharashtra “aspires to create sustainable and friendly urban spaces that integrate the use of technology, social media, community participation and e-governance to build smart cities of Maharashtra like Nagpur, Mumbai, Amravati, Aurangabad and Nashik to a global standard,” the joint statement said.

In a wide-ranging discussion, the two sides agreed to cooperate and facilitate each other in “exchange of information and best practices,” particularly in Tel Aviv, in areas relating to “community outreach and participation through use of social media, open data; online municipal services; traffic and parking management through IT; security and emergencies.” Green construction and rational land use to create an appealing urban environment was also discussed. Stress was also given on promoting a Start-up City and youth entrepreneurship.

Mr. Huldai invited Maharashtra to send a delegation to the Tel Aviv Innovation Festival on September 7-8to understand the use of innovation in building Tel Aviv as a Smart City. Mr. Fadnavis, who later said the discussions were “fruitful,” agreed and in turn invited Mr. Huldai to Maharashtra to continue the discussions.

During his tour of Israel, Mr. Fadnavis, who has stressed on attracting investment to the State, will attend an exhibition on agricultural technology, Agritech Israel 2015,  and explore areas of co-operation including in emergency preparations and crises management technologies.  Agritech Israel 2015 is one of the world's most important exhibitions in the field of agricultural technologies.

Mr. Fadnavis is also scheduled to be a keynote speaker at a symposium on Indo-Israel collaboration on Make in India to attract investment to India’s most industrialized state.  He would also meet Israeli Agriculture Minister Yair Shamir, senior officials of various ministers, heads of leading IT companies and firms specializing in research.

SOURCE: The Hindu

Hope for houses in heritage zones

For years, 78-year-old S L Mittal has been waiting to add a floor to his one-storey residence in Kotla Mubarakpur. But because Mittal's property is 92m from the ASI-protected Kale Khan Ka Gumbad, he has been unable to get the nod. But, a new move by the culture ministry to bring amendments in the ASI Act of 2010 could grant him his wish. 

The culture ministry has proposed to categorize all centrally-protected monuments as A, B and C based on significance, location and size. Protection accorded to each building will be based on the category it is placed in. 

If Kale Khan Ka Gumbad is categorized B or C, Mittal might just receive permission to build the first floor—with the prohibited zone radius getting reduced from 100m to 50 or less. Mittal is not alone; there are thousands others waiting for the amendment to undertake essential repairs and constructions in their homes. 

Curbs on construction within 100 metres of monuments were first imposed when the ASI Act was framed in 1992, but permissions continued to be granted on case-to-case basis. 

However, the 2010 amendment and formation of National Monuments Authority led to a blanket ban on such constructions. Strict regulations were imposed on development within 100-300m of monuments. 

Delhi has hundreds of monuments located in midst of residential colonies, mostly in south and central Delhi. In areas like Gulmohar Park, Safdarjung Enclave, Hauz Khas, South Extension, Mehrauli, Saket, Malviya Nagar, Rana Pratap Bagh and Nizamuddin, the new law has hit hard. 

People who built homes or bought plots much before the ASI Act came into force in 1992 say the curbs are a travesty of justice. "I can't move a brick in my single-storey house that was built in 1969. Some of my family members have medical problems and I need a second floor. Since my house lies 97m from the boundary of Biran Ka Gumbad, I cannot construct anything," said a Green Park resident. 

Almost 80% of South Extension falls within prohibited and regulated zones. 

"The colony was built in 1959. At that time, most people could only afford a ground floor. As time passed and people came into money, they built additional floors to accommodate their growing families. Then the Act came into force. Many houses are now falling to pieces because just getting permission for repairs is a long process. The property value here is less than that in even Okhla," said Manjeet Singh, general secretary, Association Of Citizens. 

In Shivalik Colony, empty plots can be seen on the main road and these serve as parking lots. "The owners cannot build their homes here because the plots fall in the prohibited zone of Sarai Shahji. They are just waiting for some relief in ASI Act so they can build their dream homes," Ajit Banerjee, a resident, said.

SOURCE: The Times Of India

SAYA HOMES LAUNCHES SAYA GOLD AVENUE

Ghaziabad: Having been already known for quality products and on time delivery of projects, NCR realty major Saya Homes today in an exclusive press conference, unveiled its newest offering to the public ‘Saya Gold Avenue’. On the successful completion of an incredible journey of 16 years, Saya homes has launched a new residential project “Saya Gold Avenue” which is strategically positioned in Indirapuram, Ghaziabad.

The project comprises of 2/3/4 BHK units with varied sizes ranging from 1,060 per sq. ft.(98.476 sq. mtr.) – 2,485 per sq. ft.(230.862 sq. mtr.) to be built across 5.25 acres with 8 towers comprising a total of 1,620 units. The homes at Saya Gold Avenue will be embellished with the best in class features and offer exceptional appreciation value that add to the pleasures of living at this residential marvel. Modular switches and Socket/Telephone points are provided in all rooms. Water softening plant for general supply of water and FTTH-Optical Fiber for state of the art services in the whole society are some of the key specifications of the project. Saya Gold Avenue is designed and conceived by world’s best in class associates. All apartments have 8’-0” door height and spacious balconies for royal impression. Three tier 24*7 Security with CCTV camera and video phone is installed in each apartment. Each tower has high speed branded elevators and the entire structure is earthquake resistant. Saya Gold Avenue exudes perfection in every respect.

Being a welcome addition to the Saya Homes, Saya Gold Avenue is located at a prime location of Ghaziabad with zero kms from NH 24. The proposed Metro Station will be at a 5 min walk and is just infront of Shipra Mall, one of the most popular malls in the NCR. Being at a close proximity of just 2 kms from Pushpanjali Hospital and short distance to Delhi makes it a most desirable locality to reside in. Saya Gold Avenue is nestled just 10 kms away from Anand Vihar Railway Station and 30 kms from IGI Airport. The project is based at a fast developing place and it is a favorable spot for investment too. Situated in the heart of fully developed Indirapuram, Saya Gold Avenue is a perfect blend of modernity, luxury, comfort and affordability. The project offers a current BSP of Rs. 4,295/ sq. ft.(46,231/sq. mtr.) and the company plans to deliver it by December, 2018.

Mr. Vikas Bhasin, MD, Saya Homes said, “With our objective to provide various facilities and amenities under one roof for the sheer comfort of our customers, we are now ready to launch our new project. “Saya Gold Avenue” is nestled in prime vicinity having a well-connected network of roads and has close proximity to metro. It has all the important civic amenities like hospitals, schools and malls in its nearby areas. The project is filled with all the features for the perfect stay of residents. The lush green landscape makes the whole project balanced, ecological and harmonious. Today we also happen to complete 16 years of hard work and dedication and would like to take this opportunity to thank everyone associated with us”.

SOURCE: https://iccplpropertynews.wordpress.com/2015/04/27/iccpl-property-news-95/

A mission for clean, green, smart city unites agencies in Gurgaon

Gurgaon's evolution into a smart city will have two phases, says the district administration, the brains behind this ambitious project. It has also decided to rope in civic bodies HUDA and MCG, power discoms DHBVN and HPVN, and the Power Grid Corporation for this purpose. While the first phase will see development of sectors 25A to 80 in New Gurgaon besides Civil Lines, the rest of the city will be taken up in the second phase of the project.

As a smart city, Gurgaon will eventually have systems to harness renewable energy and create virtual infrastructure for seamless flow of information between departments, while improving on all other regular fronts - beautification, consumer indexing, GIS mapping and essential public services.

Gurgaon's deputy commissioner T L Satyaprakash said the first step in working towards this, to formulate a course of action and have full information about the status of each service being provided to residents by departments. "We have appointed nodal officers to study and provide information on services managed by the

departments. A follow-up meeting will be held after these officers are ready with their proposals and related data," he said.

Satyaprakash said traffic DCP Vinod Kaushik been made the nodal officer for preparing a draft plan and providing details for a smooth traffic plan in the city. He said additional deputy commissioner Vinay Pratap Singh has been made the nodal officer for renewable energy, while HUDA superintendent engineer A K Gupta and MCG chief engineer R K Singhla have been appointed nodal officers for water supply and waste water management, respectively. DHBVN's general manager Sanjeev Chopra will provide data on power supply infrastructure, while MCG's chief town planner Anirudh Sharma will work on GIS mapping of the city's infrastructure and services.

"Details of the master plan of each sector will be studied, besides electricity demand, power supply arrangement and future development plans. Measures to harness renewable energy, beautification, consumer indexing and GIS mapping, as well as essential public services such as treated water supply and waste management, will also be incorporated in this project report, which will be discussed with the Power Grid," he added.

Satyaprakash added that the Power Grid Corporation has offered to support the local administration to provide all necessary techno-economic advisory to help Gurgaon achieve the status of a Smart City.

Source: The Times Of India