Real estate developers turning to housing for senior citizens

Real estate developers in the country are increasingly turning to a mostly untapped segment where demand is on the rise - senior homes - even as there's a slowdown in the overall housing market.

Builders such as Tata Housing, Paranjape Schemes, Adani Realty, Silverglades and Brigade have started setting up specially designed homes targeted at well-to-do seniors who have enough money and might want to live independently after retirement. And, unlike old-age homes of the past, most these senior home projects are part of larger projects and townships.

"Today, builders realise that this could be a differentiating factor in their projects and could attract an entirely new market, which has been untapped so far," said Arun Gupta, chief executive officer at Age Ventures India, a private, non-profit trust that works with builders to design and manage senior homes. The growth opportunity is big - in 2012, India had 100 million senior citizens and the number is expected to double by 2030.

 

"India currently contributes less than 1 per cent of the global senior living industry," said Manish Kumar, managing director for strategic consulting at property consultancy JLL India, highlighting the huge demand and supply gap of the sector - and its growth potential. According to JLL India, there are around 30-35 senior living projects in the country. So, what are the facilities senior home projects offer?

Usually, one or two bedroom units; most of these homes have wider doors and bigger bathrooms for wheelchair access. Other finer details builders keep in mind include positioning grab rails at strategic places and ensuring that switch points are at wheelchair height rather than at the bottom. The apartment complexes come with facilities such as physio rooms, doctor-oncall, nurses and a common dining room if someone doesn't want to cook.

Gupta of Age Ventures said a lot of people in the 54-72 age bracket have been buying these senior homes because they want to live independently.He said Age Ventures has tie-ups with hospitals to provide medical care to seniors living in the homes it manages.

The firm has, for example, tied up with Columbia Asia Hospital in Ahmedabad where it is working with Adani Realty for a senior home project. Similarly , it has tie-ups with Artemis in Gurgaon for a Silverglades project and NH Hospitals in Bengaluru for a Brigade project. Adani Realty is building a senior home project within its township project Shantigram in Ahmedabad.

"Till now there were no service providers catering to this segment. Most facilities for seniors were run by charitable trusts and were mostly for the lower income category ," says Dipesh Roy, vice president, marketing, at Adani Realty .

Paranjape Schemes has so far developed six such projects - five in Pune and one in Bengaluru - under its brand specifically for senior living, Athashri. Company chairman Shrikant Paranjape said it will start three more projects in the country this financial year and is also reviewing three projects in San Jose, USA, to finalise one to target senior Indians living there.

Om Ahuja, CEO, residential, at Bengaluru-based Brigade Group, said many friends are coming in groups to buy assisted living homes primarily keeping in mind their retirement. "People who are in their early and mid-40s are planning for future and are investing in retirement or assisted living homes as the children will eventually settle down abroad post study," he said.

Tara Singh Vachani, CEO at Antara Senior Living, which has a project coming up in Dehradun, said, "Priority for Antara is to create vibrant residential communities." 

SOURCE: THE ECONOMIC TIMES

SMART INDIA MISSION GETS A GREEN SIGNAL BY MODI

The words Smart Cities, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All were surrounding our eyes and ears for over a year now with lots of questions arising with it whether this will go down in the history books as just a dream or reality. Marking a major initiative for the urban development and revolution in the country, Prime Minister Narendra Modi has finally launched the Smart Cities mission, AMRUT and Housing for All; keeping on track with his promise to the nation to bring a transformation in life of every citizen of the country and to put India on the global map as the most rapidly developing country.

 The core objective behind these three schemes launched by Modi is to develop Indian cities and towns as new engines of growth. “The promise of Acche Din by the government was not just a mere statement as now we see the momentum gaining pace. Smart cities, AMRUT and Housing for all schemes will not only ensure a shelter to every household but will guarantee transformation of their lifestyles which is crucial to overall development of the country. With these schemes now launched, there will be an upsurge of job opportunities, sound infrastructure and basic civic setup for each city which is most significant for urbanisation to take place”, says Mr. Deepak Kapoor, President CREDAI Western U.P. & Director, Gulshan Homz. The three big ticket projects – Smart Cities mission, AMRUT and Housing for all are now named as Pradhan Mantri Awas Yojna (PMAY) and is worth Rs. 4 lakh crore approx..

The Smart City and AMRUT projects will draw Rs. 48,000 crores and Rs. 50,000 crores respectively, in central grants over the next five years. Housing for all by 2022 plan will see a government expenditure of about Rs. 3 lakh crores during the next 7 seven years which is aimed at constructing 2 crore affordable houses in urban areas for slum dwellers and people falling under Economically Weaker Sections (EWS) and Lower income Groups (LIG). Under the housing scheme, interest subsidy of 6.5 percent on housing loans with tenure upto 15 years will be provided to EWS and LIGs, offering them a benefit of about Rs. 2.3 lakhs. For AMRUT, 500 cities having a population of 1 lakh or more will be chosen for this project. Speaking about the major affect that these plans will have, Mr. Praveen Tyagi, CMD, VVIP states “The AMRUT plan aims at urbanisation of 500 cities whereas the Smart Cities plan is targeted to enhance the quality of life of 100 identified cities and towns which will be confirmed by superior infrastructure, smart living through smart features, better services at disposal and a clean, green and much sustainable environment for the population. Housing for all scheme will act as a perfect catalyst here by enhancing the purchasing power of EWS and LIGs by reducing their burden through decreasing home loan amounts”.

  Along with the launch of three schemes, PM also unveiled the criteria and guidelines for the smart cities and other schemes apart from releasing operational guidelines for the three urban missions, unveiling logos and tag lines. Modi also stated that neither the centre nor the states will have any discretion in choosing 100 cities through a competition for smart cities scheme. The launch event is to be followed by a 2 day workshop where over 1000 mayors, municipal heads, ministers concerned from states and their chief secretaries will take part. Uttar Pradesh is ready to lead the pack here with the opportunity to nominate 13 cities to be developed as smart cities and 54 cities identified under the AMRUT scheme. “Uttar Pradesh is one of the largest states of India with a major scope of development available here thus, 13 cities identified as smart cities and 54 cities for AMRUT scheme will mean that UP will get the most out this Smart India mission. Overall, the plan looks very well laid down with proper distribution of funds planned for Smart cities mission, AMRUT and Housing for all as well. With the three most important schemes now underway, India is now on a path of smart development”, says Mr. Ashok Gupta, CMD, Ajnara India Ltd.

After UP, Tamil Nadu is placed at second position with 12 smart cities and 33 AMRUT cities being allotted. Maharashtra has been selected for 10 smart cities and 37 AMRUT cities with Gujarat and Karnataka are eligible for 6 smart cities each and 31 & 21 AMRUT cities respectively. Delhi has been allotted one smart and AMRUT city. As per the criteria finalised by the government for the smart cities project, West Bengal and Rajasthan get to nominate 4 cities a piece with Bihar, Andhra Pradesh and Punjab for 3 cities; Odisha, Haryana, Telangana and Chhatisgarh two cities; and J & K, Kerela, Jharkhand, Assam, Himachal, Goa, Arunachal and Chandigarh, one city each. Likewise, for the AMRUT scheme, 31 cities have been identified in Andhra Pradesh, 30 for Rajasthan, 28 in West Bengal, 27 in Bihar, 19 in Odisha and Haryana, 18 in Kerala, 17 in Punjab, 15 in Telangana and 10 in Chhatisgarh. Mr. Kushagr Ansal, Director, Ansal Housing says “The much awaited dream of transforming India is finally turning into a reality. It is imperative to understand that these 3 projects are forming a hierarchy of necessity for our country. Housing for all is the base, as it crucial to first make sure that everyone gets a roof over their head. In the middle will be the AMRUT plan as, rejuvenation and urban transformation is a need to move further towards smart living and get over from basic living. Finally, the cities that already meet the basic requirement are now looked upon to be made ready for the next level infrastructure”.

 Moving ahead, now since the plan is underway the government will be doing its bit to develop the next level infrastructure for the country, but it will require most assistance from the private players of the country along with FDI. “The plan to develop 100 smart and 500 AMRUT cities will not succeed until the entire nation stands as one unit. The public private partnership model will best fit here as now there will be an immense requirement of quality infrastructure and smart facilities. The Indian real estate market which was experiencing a sluggish growth for many years now is greatly welcoming this move as the government’s budget outlay for PMAY of Rs. 4 lakh crores is expected to be invested into the Indian real estate sector directly or indirectly and that also at a national level”, states Mr. Rupesh Gupta, Director, JM Housing. 


Adding to the view, Mr. Rajesh Goyal, Vice President CREDAI Western UP & MD, RG Group says “The idea of spruce urban spaces through 100 Smart Cities and AMRUT to adjust the burgeoning number of people have been pivotal to Modi’s visionary election manifesto from the beginning. Finally, Union Cabinet cleared the projects and has allocated gargantuan amount for the twin projects. FDI allured by these projects and efficient allocation and execution of the same can change the face of urban lifestyle in India as well as will propel much needed liquidity in the economy”.


The three projects launched today are interdependent and has a common vision of developing the nation and its people. “Job opportunities for all, homes to everyone, smart features, better lifestyle, superior infrastructure, higher GDP, more FDI and increasing HDI will be a few common phenomenon that we will all witness in the upcoming 5 to 7 years in India. We are on a road to develop better and develop smart thereby ensuring an overall development of the economy and its people. Now since these 3 projects have got a green signal, the markets and industries will see a major boost as now there is a lot of work in hand for everyone”, concludes Mr. Prithvi Raj Kasana, MD, Morpheus Group.

Pakistan stumps India; rolls out South Asia’s 1st REIT while we still try to axe the tax

India 0 Vs Pakistan 1. It's not the outcome of a ODI series between the traditional rivals but a progress card on reforms in the world of real estate. At a time Indian realtors and investors are struggling to roll out real estate investment trusts (REIT) amid regulatory complications and tax uncertainties, Pakistan has gone ahead to launch South Asia's first REIT at a premium of 10% to the offer price, earlier this month. 

A REIT is a financial instrument where the underlying asset is real estate. The rental income from the property assets are distributed by the Trust as dividends to the investors or unit holders of the trust. Typically therefore, a REIT invests in completed, revenue generating commercial realestate assets. 

Mid-June, Pakistan-based Dolmen City launched its REIT offering that got subscribed 1.7 times. It owns a commercial property which has a mix of mall and office space and an occupancy of 96%. The company expects a net income of $21.9 million in first year while dividends are expected at $20.7 million. This was also the first REIT listing in Pakistan after the country came out with the regulations. 

Interestingly, yields for the Dolmen City REIT's investors in the first year are a percentage point lower than the current yields on Pakistan's government securities (GSec) that are now trading at 9.75%. Typically,world over REITs notes trade at positive spread. This was based on estimation of rental income from the asset, 90% of which are to distributed back to investors. But even then, there were few global investors who bit the story -- only 0.6% of HNIs/Institution allocation. 

For starters, Pakistan has streamlined the process significantly to make it attractive for investors. For example, their REITs attract a withholding tax of 10% (in-line with Mutual fund taxation) with no further tax liability for individual investors. Moreover, the regulators there have agreed to concessional tax regime for transfer of an asset into a REIT with significant reduction in stamp duty across the region. 

In comparison in India -- despite the recent relaxations on taxability like MAT exemption, tax pass through to REIT - and simplification of structuring, the REIT controlled special purpose vehicles are still subject to corporate and dividend distribution tax ( DDT) which limits the pass through nature of REITs. This makes it imperative on the SPV to restructure to reduce the tax blow. Analysts feel while debt infusion at SPVs could improve the yields of the instrument, a simplified structure allowing tax pass throughs would improve transparency and improve visibility of returns to investors.

"Indian REITs in the current form have a significant tax disadvantage with double taxation in SPV-REIT structure and high transaction cost in direct holding structure," said Abhishek Anand of JM Finance in his report on India REITs on June 12. "We believe tax regime needs to work towards simplifying the domestic REIT structure, and needs to reduce double taxation in order to make returns more attractive for investors." 

"Typically REIT is successful in the mature economies where it gives returns of 7 to 9% and government securities gives returns in the range of 1.5 to 2.5%," says Hemal Mehta, senior director of Deloitte. "While, in India, government securities gives risk free returns in the range of 8 to 9% and hence, to make this instrument very attractive fiscal benefits like dividend distribution tax, minimum alternate tax and capital gain should be waived off to make the REIT attractive for Indian investor .’’

Echoing this, a senior official of a leading real estate focussed PE fund says if the government considers such waivers, REITs alone have the potential to attract investment in the range of $15 to $20 billion from FII and NRIs. 

According to Chandubhai Mehta, Managing Partner of Mumbai-based law firm Dhruve Liladhar & Co, which advises many developers, complexities in taxation to unit holders in REIT as well as to owners of the assets are the hindrance in the way of making this a popular instrument.

"REIT is beneficial to both the investors and the industry because it provides the investors with an investment avenue, which is comparatively less risky than investing in under construction properties and provides regular income," says Mehta.

In India, many marque PE investors including Blackstone together with real estate JV partner Embassy or developers DLF were reportedly planning to go ahead with mega REIT listings, but till date have stayed away due largely on account of the tax complications. But realtors are hopeful of an early resolution. "There are issues related to taxation but as the market evolves, am sure the government will also change the rules according to market needs," said Rajeev Talwar, Group Executive Director, DLF.

SOURCE: THE ECONOMIC TIMES

Square Yards acquires Singapore-based realty advisory LUXE Real Estate

Real estate advisory firm Square Yards has acquired a Singapore-based property advisory firm LUXE Real Estate in an undisclosed all-cash transaction, the company said in a release.

This acquisition will enable Square Yards to have direct access into the prime district areas of Singapore real estate market and catapult it into the top 30 agencies by number of agents, the release added.

Earlier this month, Square Yards has announced acquisition of online discovery portal realizing.in.

LUXE Real Estate with strong domestic and international track record in luxury real estate sales and existing relationships with Singapore based developers like CDL (City Development Limited) will now be able to leverage on Square Yards' project portfolio of global projects from Mongolia, Bulgaria, Australia, Malaysia, UK, USA etc, the company said.

"This deal completely complements our strategy to have a dominant position in International markets. The International Project Marketing (IPM) division in Dubai has tremendous demand from countries like UK and Malaysia and improved product sourcing capabilities from global markets will only help us do more business in Gulf countries," said Kanika Gupta, Head of Asia IPM and COO at Square Yards.

The entire team of LUXE will join Square Yards as agents with its Key Executive Officer,Calvin Chao, as Director - International Projects Marketing in Singapore.

Square Yards has already announced its plan to expand global reach to 20 destinations in the next two quarters and is also looking for global alliances in other global markets.

SOURCE: THE ECONOMIC TIMES

Mahindra Lifespaces Developers makes foray into Bengaluru market

Realty developer Mahindra Lifespace Developers and an investment arm of Standard Chartered Bank have jointly invested in a residential project in Bengaluru.

"Bengaluru is one of the largest realty markets driven by end users. The JV will by adsupply"> invest 50% each in the projects that will come up," said Anita Arjundas, managing director and chief executive officer at Mahindra Lifespaces. The project cost will be Rs 400 crore-450 crore.

According to Knight Frank, the real estate sector in Bengaluru is continuing to outperform other sectors. The city saw maximum project launches and also registered the highest yearon-year increase in absorption of residential units in the quarter to September 2014. 

"The proposed developments will be undertaken through Mahindra Homes. The first project under this joint venture platform came up in Gurgaon," she said.

In 2013, Mahindra Lifespace Developers. a wholly-owned subsidiary of Mahindra & Mahindra, and an by adsupply"> investment arm of Standard Chartered Bank entered into an equal joint venture for development of residential projects in India. The combined by adsupply"> investment commitment by both the entities is around Rs 1,000 crore over multiple projects.

The proposed project, Wind Chimes, will come up in Bannerghatta Road in Bengaluru over a 5.8 acre land parcel that Mahindra purchased two years ago.

The project will include 3BHK, 3.5BHK and 4BHK apartments priced between Rs 1.3 crore and Rs 2.2 crore. The apartments will be spread over 1,800-3,000 sq ft.

With its footprint in nine cities, Mahindra Lifespace has 10.38 million sq ft of ongoing and forthcoming projects. The company had a total debt of around Rs 1,200 crore with a debt-equity ratio of 0.8 as on March 2015.

Fund houses such as Xander, Ascendas, StanChart RE, Canada Pension Plan Investment Board and Blackstone have committed big bucks to the Indian real estate sector. While Canada Pension Plan Investment Board invested $200 million in Shapoorji Pallonji Group, StanChart RE invested $100 million in Mahindra Lifespaces.

Ascendas acquired 2 million sq ft of office space from Phoenix Group for $110 million in 2013. 

SOURCE: THE ECONOMIC TIMES

NOIDA CELEBRATES ITS MAIDEN RAAHGIRI

Noida: In its entire history, Noida could not have asked for a better Sunday than today. On the occasion of International Yoga Day, World Music Day and Father’s Day, Noida Authority with its promise of clean, green and healthy Noida campaign came out with its first ever Raahgiri on Sector 18 main road, opposite to The Great India Place (TGIP) Mall, Noida, Uttar Pradesh.

 The sunrise began with a light cloudy breezy weather promising to be a perfect day for workout and recreation. By 5.30 am, the anchors at Raahgiri Noida had commenced with the show and started to gear up the crowd for what turned out to be a 3 hour epic extravaganza. At 6 am, the Raahgiri road was ready with the crowd roaring to launch its fun assault on the road. Today being the International Yoga Day which got celebrated in nearly 200 countries worldwide, the Raahgiri Noida event also kick started with a Yoga session for the NoidaRaahgirs present there. After an hour long mental and physical relaxation session of Yoga by trainers from Fitness World, the crowd was then presented with dance and music performances where they celebrated the World Music Day by performing Zumba and sang along with Roots, the music band. During the dance and music performances, the road was also filled with children playing football, badminton, cycling, skipping, painting, running and enjoying on every inch of space made available to them.

The picture got even better when the man behind the show Rama Raman, CEO, Noida and Greater Noida authority came at the Raahgiri venue in proper workout outfit. He even kicked and bounced a few footballs along with encouraging plantation of trees, and lastly gave a welcome & thanksgiving speech to the public. “We are extremely pleased and happy to see such a gathering here today. The message through this initiative is very clear; to make sure that Noida gets clean, green and healthy. We welcome everyone to Raahgiri Noida and hope that these 3 hours help you get the best of health and peace. Also, thank you to everyone who came here today and to all those associated with Raahgiri Noida”, said Raman.

At the venue, social messages were delivered very uniquely. Father’s Day was celebrated as a group of people held placards and spoke out to public about the importance and role of a Father and why should we respect him. The significance of Women empowerment was highlighted through a well-rehearsed skit. The importance of Girl child and planting of saplings was pushed into the minds of the public through highly descriptive graphics designed and spread across the entire Raahgiri road along with plantation of over 200 saplings across Noida region. Special lessons and sessions on archery, martial arts and photography were provided as well which attracted a huge bunch of children and youngsters. At 8.15 am, the famous ‘Google Girl’, Jiya Phutela displayed her master skills and stunned the crowd with her brilliant aptitude. The other stage was rocked by the renowned Dahek Rock Band who had the public dance on their tunes and concluded the maiden Raahgiri Noida.

 The 3 hour extraordinary event had witnessed a massive gathering of around 2,500 people from across Noida and other neighbouring regions that were wishing for the clock to stop for more time for them to enjoy the fun and frolic morning. The event had every element of fun associated with it and made sure that the turnout today had an amazing time.

  Feeling jubilant, Dushyant Sinha, Director of Das events expressed his gratitude saying, “I take this opportunity to thank the entire Raahgiri Noida Team who had worked day in and day out to make sure that Noida gets the best 3 hours each Sunday of the week starting from today. My special thanks to Uttar Pradesh Government, Noida Authority, Noida Traffic Police, Noida Police and all the sponsors and partners to the event. Each Sunday in Noida will now be full of entertainment which will help us all to lead a mentally and physically healthy life. We look forward to meet Noida again next Sunday”.

Sameer Gehlaut to hike stake in Indiabulls Real Estate by 10% for Rs 538cr

In one of the largest promoter-led fund infusion in the real estate sector in recent times, Sameer Gehlaut, the founder and promoter of Indiabulls Real Estate (IBREL) is investing Rs 538 crore to increase his stake in the company from 27% to 37% through preferential allotment. Gehlaut is picking up the stake through a combination of equity shares and convertible warrants at Rs 67 per share, compared to IBREL's Friday closing price of Rs 42 on BSE, a premium of 59.5%. There are indications that in future Gehlaut will hike his stake in the company further.

Nearly a year ago, the three founders of Indiabulls group - Gehlaut, Rajiv Rattan and Saurabh Mittal - had spilt their businesses. Following the split, the aggregate promoter's stake in IBREL, a company that remained with Gehlaut, had dipped to 37.7% from nearly 49% earlier, BSE disclosures showed. Of the 37.7% promoter holding, Gehlaut had 27% while 10% was held by IBREL trust. Post this capital infusion, Gehlaut's holding in the company will rise by 10 percentage points.

"I would like to consolidate my holding in Indiabulls Real Estate over a period of time while Indiabulls Group consolidates its presence in housing finance and real estate," Sameer Gehlaut, chairman , Indiabulls Group told TOI. "This capital will strengthen the company's balance sheet, provide it with growth capital to start delivery of 6 million square feet of real estate space in the current fiscal and also help reduce its debt by about 20%," Gehlaut said.

IBREL, one the leading real estate developers in the country, is primarily focused on the National Capital Region, Mumbai Metropolitan Region and Chennai. In the last one year, as part of its geographical diversification strategy, it also spent nearly Rs 1,600 crore to acquire a property in central London. Unlike its peers, the company has been conservative in taking debt with a current net debt-to-equity ratio at 0.76, a company official said. "Low debt-to-equity is also a key reason why IBREL enjoys a AA- long-term rating, which is the best amongst its peer set," the official said.

The promoter fund infusion comes at a time when most of industry leaders are struggling with stagnant to dipping prices, huge pile up of debt as well as inventory of real estate space. These factors are also restricting real estate companies from raising equity. IBREL plans to use the funds from its promoter to its advantage by negotiating better terms on its existing debt, the official said.

Currently IBREL has 29 million square feet under development. "Historically, we have maintained strict financial discipline, focusing on cash flow generation. This growth capital will further enhance our ability to generate cash flow while significantly enhancing balance sheet strength," Gehlaut said.

n Dalal Street too, most of the real estate stocks have been struggling for the last couple of years although the benchmark indices have given strong returns. Compared to a 47% return in the sensex in the last two years, the real estate index has lost about 6%, BSE data showed.

SOURCE: THE TIMES OF INDIA

Indiabulls Real Estate Fund likely to raise USD 250

Indiabulls Real Estate is betting big on the real estate space. Some time back, its asset management company had floated a real estate fund and now according to sources that fund is looking to raise USD 250 million in the next six months.

The fund's domestic arm is looking to raise Rs 500 crore out of which Rs 400 has already been raised. The fund recently made high-end INVESTMENT into a project in Gurgaon worth Rs 100 crore.

Moreover, all the INVESTMENTS in this fund will be in structured debt space and expect returns in range of 15-20 percent, say sources.

Fundraising is part of companies plan to create a billion dollar platform to basically INVEST in high-end residential projects as well as some infrastructure projects. However, the mix will be decided on a case-to-case basis.

SOURCE: MONEYCONTROL.COM

Supply of retail space for luxury brands to double in 4 years: CBRE

Supply of retail space for luxury brands is expected to double in the next three to four years, according to property consultant CBRE.

Companies including DLF, Reliance Industries, Phoenix MillsBSE -0.28 %, Mumbaibased Maker Group and Shobha Developers have a lined up a host of projects — both malls and other commercial buildings — in cities like Delhi, Mumbai, Chennai and Bengaluru. These are expected to take off soon, creating additional supply for retailers. 

"The existing stock of luxury retail space in the country is approximately a million square feet; while around two million square feet is expected to be built up in the next three-four years," said Vivek Kaul, head — retail services India, CBRE South Asia.

CBRE pegged the existing stock of organised shopping centre space in the country at approximately 57 million square feet; while there are expectations of an additional supply of more than 16 million sq ft, luxury is expected to get a fair share of it.Companies selling luxury products in India often complain that lack of chic shopping centres dents their visibility and affects sales take-off. 

With additional space, the shortage of adequate retail area and high rentals (that falls in the range .`500-1,200 per square feet per month on carpet area) is expected to ease to certain extent.

While DLF, which operates Emporio — the only fullscale luxury destination in India — in Delhi, is building two new projects in Gurgaon and Delhi, Reliance IndustriesBSE 1.26 % and Maker Group have initiated projects in Mumbai's Bandra Kurla. 

"Many international brands are very keen to come to India and are waiting for completion of these projects. We are in talks with several retailers for the new properties," said Dinaz Madhukar, president of Emporio.

While Prada's global team has been scouting for right locations in India, Hermes, Chanel and Mont Blanc are understood to have shown interest in DLF's Chanakyapuri mall. 

Retailers are hopeful that rentals will dip. "Hope there will be some downward revision in rentals. The rent being charged today in India for luxury is comparable to global markets, but sales are not commensurate," said the head of a luxury brand. 

Darshan Mehta, president of Reliance Brands, said that for retailers to get excited about these projects, a key criteria is timely completion. 

"India is not like Japan, China or Singapore. Mall developments take much more time here," he said. In the meantime, existing malls and high streets are the by Provider"> only option. "Even brands do not want to commit to India, until they see real progress. Brands do not want childless marriages." 

And the rentals continue to irk most retail players. "Rentals are high, but realisations are low. Per square revenue realisation of a luxury store in India is one tenth of what a store in the similar location generates in Shanghai," said Mehta.

In Bengaluru, Shoba Developers in setting up a 2-lakh square feet luxury cum commercial mall, which is expected to be operational by 2018. "The retail space will cover one lakh square feet of space and will house some super luxury brands," said JC Sharma, vice chairman and managing director of Shobha Developers.

Similarly, the Phoenix Group is building a mall in Chennai that is expected to be ready by the second quarter of 2016. On completion, it will offers 2-lakh sq ft of retail space to luxury, bridge-to-luxury brands, designer labels and jewellery. "We are in discussions with a few international brands, such as Burberry, Canali, Bottega Veneta, Jimmy Choo, Tod's, Versace, Michael Kors, Paul & Shark and Hugo Boss," said Gayatri Ruia, director of the company.Currently, the supply of retail is limited in India and existing malls like Emporio in Delhi and Palladium in Mumbai (a mixed development) are running on full capacity.

SOURCE: THE ECONOMIC TIMES

HOUSING FOR ALL BY 2022 GETS NOD FROM CABINET

 In what could be a path breaking news for the Indian housing sector; the cabinet has approved launch of ‘Housing for all by 2022’ programme, which is primarily aimed at rehabilitation of slum dwellers and promotion of affordable housing for the Economically Weaker Sections (EWS) and Lower Income Groups (LIG), through credit linked subsidy. As per an official statement issued, a central grant of Rs. 1 lakh per house, on an average, would be made available under the slum rehabilitation programme.

“The much awaited mission of Housing for all by 2022 is finally underway. The government has begun from the correct direction. Enhancing the standards of living by giving proper homes and subsidised interest rates to EWS and LIG groups will not only aid in fulfilment of their social needs but also help everybody associated with the real estate sector. We are thrilled with this decision and welcome it wholeheartedly”, expresses Mr. Deepak Kapoor, President CREDAI Western U.P. and Director, Gulshan Homz.

This move has to be regarded as a milestone for the housing sector as every stakeholder of the industry is sure to get benefited. Currently, taking 10.50 percent as an average interest rate on housing loan, EMI on admissible loan value of Rs. 6 lakh for a15 year loan duration comes out to be Rs. 6,632 for each month. Now with the cabinet approving on the credit linked subsidy to 6.50 percent, the monthly EMIs come down to Rs. 4,050 thereby, offering a saving of Rs. 2,582 per month. Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “A saving of Rs. 2,500 per month means Rs. 30,000 saved in one annual year. This will greatly increase the purchasing power of people falling under EWS and LIG categories. With this money saved, they will be able to spend it on their children’s education, personal vehicle, better fooding or clothing thus helping them in a big manner”.

Overall, an assistance of Rs. 1 lakh to Rs. 2.30 lakh per beneficiary would be provided under different components of the National Urban Housing Mission (NUHM) in urban areas to build 2 crore houses to meet the housing shortage, over the next 7 years. As per the earlier approval of the Union Cabinet, there are four components to the NUHM:

• In the first category under the redevelopment plan for slums with the participation of private developers using land as a resource component, a central grant of Rs. 1 lakh on an average per beneficiary would be provided.
• In the second category, affordable housing through credit linked subsidy scheme, an interest subsidy of 6.50 percent on each housing loan to EWS and LIG by central government.
• For third component of affordable housing through private and public sectors, central assistance of Rs. 1.50 lakh to each beneficiary would be provided to promote housing stock for urban poor.
• For the fourth category of subsidy for individual beneficiary led construction or enhancement of houses, a central assistance of Rs. 1.50 lakh would be provided to each eligible urban poor to build an own house or renovate the existing ones.

“It is imperative to understand that Housing for all by 2022 is a bigger term than what is being understood by the common public. There is lot more to it than just providing houses to everyone. With various schemes planned under NUHM, an overall benefit of Rs. 1 lakh to Rs. 2.30 lakh per beneficiary is assured along with a plan to build 2 crore houses to meet the housing shortage. Thus, the government has planned to not only build more houses, but redevelop slums, decrease interest for poor section, involving private sector and also aid urban poor for renovating the existing homes”, states Mr. Rupesh Gupta, Director, JM Housing.

The real estate sector in particular is gearing up to deliver its goods to fulfil the government’s dream of providing a shelter to every citizen of the country. For affordable housing plan to succeed, it is most crucial that affordable houses are developed and offered to the correct target audience. With almost 30 percent of our country’s population falling under LIG and EWS groups, the current price trend in Indian real estate cannot be afforded by them. Thus, schemes like these are major incentives for this section of the society along with development of affordable homes. “Releasing of inexpensive land parcels, land acquisition to become easy, interest rates to be dropped, raw materials to cost less and other such steps will make sure that developers are provoked to construct houses coming under affordable segment and target audience to be EWS and LIG groups primarily. Once these plans start running parallel to each other, Housing for all by 2022 will see visible activity”, enumerates Mr. Kushagr Ansal, Director, Ansal Housing.

Welcoming the move and hailing Union Cabinet’s decision, Mr. Vikas Bhasin, MD, Saya Homes concludes “This is a welcome move for not only the urban poor of the society but also for realty sector. Real estate as a sector is associated with various other key industries and thus, everybody associated to it will get the benefit. LIG and EWS groups have got news of a lifetime and now we will not only see homes for them, but a boost to their living styles as well, which is one of the key drivers of human and economic development”.

SOURCE: ICCPL PROPERTY NEWS

HSBC in talks to sell Worli land to K Raheja Corp for over Rs 220 crore

Multinational bank HSBC is in advanced talks with realty developer K Raheja Corp to sell its 1.4-acre prime land parcel in Worli for over Rs 220 crore, two persons familiar with the development said.

The plot located next to Doordarshan Tower in the plush locality is expected to provide development potential of around 2 lakh square feet through a residential project, they said. 

Spokespersons of both HSBC and K Raheja Corp declined to comment. 

Transaction advisor CBRE also refused to comment. 

Currently, prices of residential proper residential properties in the vicinity range between Rs 45,000 and Rs 50,000 per square feet, according to real estate industry sources.

The last major land transaction in Worli locality was concluded in 2012, when realty developer Lodha Group bought a 17-acre land parcel from DLF for Rs 2,750 crore.

In 2010, Indiabulls Real Estate had paid nearly Rs 2,000 crore for two land parcels of Bharat Mills and Podar Mills, spread over nearly 12 acres in Worli.

HSBC's Worli property earlier housed its call centre and business process outsourcing arm that had a staff strength of over 1,000 employees. The unit was shifted to a larger office in 2007.

Interestingly, HSBC bought a luxury by Provider"> duplex apartment overlooking the Arabian Sea in south Mumbai's Mahalaxmi locality for around Rs 60 crore at K Raheja Corp's Vivarea project late last year in one of the most expensive such purchases in the country. 

SOURCE: THE ECONOMIC TIMES

After Dwarka, DDA bats for cycling all over

Recognizing cycling as an important mode of public transport, Delhi Development Authority on Tuesday approved a policy to promote it. Officials said a network of bicycle stations will be developed with a minimum distance of 300 metres between two of them. While DDA has made such plans in Dwarka and areas which it will develop under the land pooling policy, civic agencies will be asked to work out a plan to implement it in their jurisdiction. 

In the pilot project in Dwarka, around 170 cycle stations will be set up. The authority also plans to develop infrastructure, including a dedicated cycling lane, docking stations and other facilities to promote the use of cycles, especially for short distances. For this project, Rs 120 crore has been allocated in DDA's annual budget. 

As per the cycling policy, the implementing agency will have to set up a dense network of fully automated stations in its jurisdiction so no staff will be required. Radio Frequency Identification Devices (RFID) will be installed to track the cycle where it was taken and deposited by the user. It will also have information about the user. "A common smart card or mobility card, which can also be used in buses, Metro and other public transport, will be given to operate it," said a DDA official.

The project will be implemented on Public Private Partnership basis. Officials said real-time monitoring of station occupancy rates will be done through GPRS to help in redistribution of cycles. There is also a plan to provide real-time information on availability of cycles on web and mobile-based applications. 

Meanwhile, DDA has also approved the land pooling policy, the guidelines for which were notified by the Union urban development ministry last month, along with five modifications. "Farmers or land owners having less than 2 hectares and causing hindrance to the infrastructure facility will be given an option to avail transferable development rights in the form of 150 FAR for their land. This can be sold to developers with plots of 2 hectares, who will get 450 FAR instead of 400 as permissible in residential areas," said an official.

SOURCE: THE TIMES OF INDIA