Elections 2014: Indian real estate awaits proactive govt

Tuesday, May 20, 2014

Even if the next government proves to be 'real estate friendly', it has its work cut out for it. There are vital regulations and initiatives related to real estate that have been gathering dust on bureaucratic tables which need to be fast-tracked and implemented.

Like most other business sectors, the Indian real estate market holds its breath for a stronger and more determined government. The perception which is currently driving market sentiments is that market momentum can either accelerate, remain unchanged or decelerate depending on which party is voted into power. Speaking purely from the viewpoint of market sentiment, there is some validity to this perception. However, the fact is that the true benefits of political stability and proactive reforms - if these indeed ensue - will not be visible or tangible for quite a while after the new government takes over.

Even if the next government proves to be 'real estate friendly', it has its work cut out for it. There are vital regulations and initiatives related to real estate that have been gathering dust on bureaucratic tables which need to be fast-tracked and implemented. Though these regulations and initiatives are crucial for the real estate sector's growth, there are various complexities that must first be sorted out. One of the challenges is impartially attending to the interests of all industry stakeholders. The other challenge is to shore up all loopholes that could remain and be exploited if not identified prior to a regulation's implementation.

This is especially true of the pending Real Estate Regulatory Bill, which has been hotly contested at every stage. There is no doubt that it must be enacted sooner rather than later so as to make Indian real estate more attractive for foreign investors. However, it does appear that no version of this Bill that emerges after the various objections and arguments from the industries stakeholders have been considered will be accepted across the board. If this is the case, it will require a strong and determined government to push it through. This also applies to the regulations pertaining to FDI in multi-brand retail - a subject that has drawn an incredible amount of political flak - which would have a major impact on India's attractiveness as a destination for foreign retail heavyweights.

Developers have been campaigning for a faster project approval process, and this is justified but by no means easy to do. Again, the government faces the challenge of ensuring that any fast-tracked approval process does not result in misuse and exploitation. While faster approvals would boost the supply pipeline and help bring prices down, the government must also ensure that construction quality norms are not compromised in the process. Also, faster approvals could result in the provision of support infrastructure falling several more laps behind while newer precincts are being developed.

That said, swifter and more determined decision-making than what we have seen so far is definitely of the essence. Many overseas investment funds have so far abstained from the Indian real estate market because of the lack of regulation, political instability and bureaucratic quagmire. The new government will have the opportunity of making Indian real estate more investment-friendly and attractive, and this would go a long way in meeting its considerable capital requirements. Investor-friendly, streamlined policies from the new government can be a game-changer for Indian real estate. Expectations: The industry expects the new ruling government to be less dependent on smaller coalition parties for support A clear electoral mandate will help real estate investors to obtain clarity on future policies, which is critical while making future business plans The industry expects REITs to become operational in India so as to increase liquidity The industry expects the approval and implementation of the pending Real Estate Regulatory Bill

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Five ways to check a builder’s reputation

Monday, May 19, 2014

If you are planning to buy a property under construction, don't just go by the brochure claims. A lot depends on the builder's competence and resources. ET lists some checks before you finalize a project

1. Groundreport

You can conduct a quick Internet search by keying in the company name since customer forums, blogs, news reports, property sites, etc, typically have a lot of information. However, it is still a good idea to go in for field research. Talk to customers who bought units in old projects as well as local brokers. The current market price of the past projects in comparison to peers in the same locality is also an indicator of the builder's standing. You should check the credentials of the contractors associated with the project as well.

2. Trackrecord

It is safer to buy from an experienced builder with a good delivery record since he is likely to have a more professional approach, with systems and processes up and running. Besides, you can check his track record and find out how well the past projects have been executed. Remember, lack of transparency is a good enough reason to not buy. A reputed builder will also typically be a member of an industry association, such as the Confederation of Real Estate Developers Association of India (CREDA),or the Builder's Association of India (BAI). These are self-regulatory bodies that have strict norms for builders and any deviation may lead to the company being blacklisted by the association

3. Qualitycertificate

The International Organization for Standardization's 9001:2008 certification criteria for a quality management system is based on eight principles, including customer focus and satisfaction. Therefore, an ISO 9001:2008

audited and certified builder is expected to be more professional in his approach, and it is a good idea to check this before zeroing in on a housing project.

4. Realty ratings

Started in 2010, the CrisilBSE 1.29 % Real Estate Star Ratings (Crest) provide cityspecific assessment of real estate projects, and can help you compare and identify quality projects in a particular city. They also have a National Developer Ratings list, which rates a developer on parameters such as good track record of transfer of clean title, maintaining legal and construction standards, and timely project completion. However, the developer has to register with Crisil to be rated and not many projects are on its radar yet.

5. Financial stability

Is the company overleveraged? Get hold of the company's balance sheet, and if the business has too much debt or is unable to repay its loans, strike off the project. Some listed builders put up their financial details on

their websites. For others, you can contact the concerned Registrars of Companies (ROC) office. The Ministry of Corporate Affairs' website (Mca.gov.in/MCA21/) also has the details. Log on and register yourself to view all company documents under the 'view public documents' section. The site will ask for information like company CIN/FCRN, registration number,ROC details, which should be easily available with the company, or you can run a Google search. Also, check the cash flow statement (not income statement). Companies with strong cash flows are likely to complete the projects on time.

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New government: Home prices may not rise immediately

While the the stock markets, the corporate world and a large section of the country's citizens are celebrating the election verdict, 45-year-old Shailesh Singh, a Delhi-based executive, is a worried man. Singh has been hunting for an apartment in the National Capital Region (NCR) for the past six months but has not been able to zero in on one. Now he is afraid that in the euphoria generated by the Bharatiya Janata Party's (BJP) decisive victory, real estate prices may start rising again, making his purchase more expensive.

Why prices won't move up Singh's worries might be premature. Realty experts are of the view that  while there might be some euphoria-driven rise in transactions and a  marginal rise in prices, this will dissipate soon. "It will take another 12-odd months before prices begin to rise within the sector. And that will  happen only if the new government has a successful first six months and its  initiatives put the economy on a higher growth path," says Anshul Jain, chief executive, DTZ India.

One reason why prices may not rise immediately is that they are already very high in most major metros. The economic slowdown has had an impact on salary revisions, and hence on urban buyers' purchasing power. "Economic activity has to pick up and purchasing power has to rise before we see more demand in the housing sector," says Anshuman Magazine, chairman and managing director, South Asia, CB Richard Ellis. High interest rates are another deterrent. "In
the near term, the new government can't down interest rates, especially with inflation reining high," adds Magazine.

Urgently needed reforms While the new government can't engineer a quick revival of the real estate  sector, it can take several steps that would have a salutary impact in the  medium to long term. One, it could expedite the process of granting approvals to real estate projects. "We expect the new government to be more efficient in granting approvals to real estate projects," says Lalit Kumar Jain, chairman, Confederation of Real Estate Developers' Association of  India (CREDAI). Developers complain that the authorities too should be made accountable for not granting timely approvals. But remember that since real estate is a state subject, the central government can at best create a model of best practices for offering quicker clearances and persuade state governments to adopt it.

The new government also needs to get the Real Estate Regulation and Development Bill passed. "By making developers more accountable, the Bill will revive trust in the sector. Low trust in developers' ability and intent to deliver a quality product on time is one reason why buyers are staying away," says Sanjay Sharma, managing director, Qubrex, a Gurgaon-based real estate consultancy. However, some of the harsher provisions of the draft  Bill need to be modified. Currently it says that if a developer doesn't comply with certain rules, he could be jailed. Experts feel that it would be more prudent to punish an economic offence with a penalty rather than treat it as a criminal offence.

 

The slowdown in sales has caused a severe cash crunch among developers, forcing them to borrow from non-banking financial companies (NBFCs), private equity players and private lenders at high rates, thereby making housing more expensive. "Fund flow to real estate from banks and housing finance institutions needs to improve," says Kumar. This will happen only if RBI relaxes the provisioning norms and caps applied to realty lending.

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Emaar MGF's The Palm Drive 'luxury group-housing community'

Wednesday, May 14, 2014

The Palm Drive is a luxury group-housing community, providing contemporary living within tranquil green spaces. The project is dispersed across more than 37 acres, comprising of Sky Terraces, Premier Terraces, Palm Studio, Villas, Garden Terraces, Palm Terraces and The Enclave.

Architect	DP Architects, Singapore
Location	Golf course Extension Road, Sector 66, Gurgaon
Delivery Schedule	Completion will happen in phases, starting in 2014 and finishing in 2015.
Status as on Date	Work is on in full swing at Palm Drive with efforts being made to deliver the entire project with high quality standards. We have recently appointed CBRE to do an internal quality check at Palm Drive. The structure work for the entire complex is complete. Construction has begun on all projects at Palm Drive and is in various stages of completion.

Amenities

•          Fully equipped Health Club facility, unisex gymnasium and Dance and Aerobics Studio •          Sports Facilities including Tennis Courts, 2 Swimming Pools, Baby Splash, complete with changing areas •          Club with Lounge, Billiards Room, Multi- Purpose Hall, Multi –Cuisine Restaurant •          Kids Créche with tot-lots, seesaws, baby slides, sand pit and party area, mini club cineplex •          Adequate  Power back up per apartment •          Dual Plumbing to recycle water for landscape and for toilets

Mr. Surender Kumar, AVP Projects, Palm Drive

 “I started working on Palm Drive from Nov 2010 onwards. Work is on in full swing at the site. We are working very closely with our expert finishing site engineers who are keenly supervising finish and quality. We also have a technical audit on site being conducted by CBRE. Our best efforts to complete the project while delivering quality work is at the center of our focus”

 

Related Search: EVC and MD Shravan Gupta Emaar MGF, Shravan Gupta, Emaar MGF, Shravan Gupta Emaar MGF, Real Estate

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Shravan Gupta's Thought Leadership @ Emaar MGF

Tuesday, May 13, 2014

Emaar MGF presents the Porter Prize India – 2013.

The Porter Prize a one-of-its-kind recognition has been initiated by Harvard University and christened after Professor Michael E Porter. The Porter Prize 2013 one of the most prestigious and coveted awards in the areas of strategy, recognize the strategic acumen of corporate India. Emaar MGF partnered with the Institute for Competitiveness, India to present this prestigious award to the best companies in their respective industries.  The central idea of the Porter Prize is to propel companies to compete on the basis of value creation, innovation and strategy.

It was an august gathering with the who’s who of Corporate India in attendance. Ravi Varanasi (Chief-Business Development, NSE), Moses Manoharan (Editor-in-Chief, Global Dialogue Review), Gerd Hoefner (MD and CEO, Siemens Technology and Services Pvt. Ltd.), B K Sethuram (VP, Dow Coatings and Construction, Dow India), Pankaj Phatarphod (MD, RBS), CVL Srinivas (CEO, Group M, South Asia), Ravi Begur (Head IT & Sustainability), V Shankar (MD, Rallis) etc. Subsequently Nadir Godrej (MD of Godrej Industries and Chairman, Godrej Agrovert) and Dr. Devi Shetty (MD, Narayana Health) addressed the audience threw up some very interesting perspectives and points for all to ponder upon.

Dr K Ramamurthy, CEO, Projects, Emaar MGF, who was a panelist at the event touched upon the relevance and importance of the right talent for companies to gain competitive advantage. He spoke about the relevance of fostering a personal growth plan for talent and a talent retention strategy which provides an edge over competition.

He also emphasized the need for good corporate governance, especially given increasing competition; how a company conducts its business will be the key differentiator.  It is for this reason that governance framework and risk management in real estate is now much more than just a means to regulatory compliance.

Mr Ajay Nambiar, Chief Service Officer, Emaar MGF  and Adrian Hardwick, Chief of Design at Emaar MGF who gave the opening and closing address at the event addressed an august gathering of Industry leaders, social influencers, CXO’s, media, the jury. The anticipation and the eagerness in the room was exciting as the audience waited  to hear  Strategy Guru Michael E. Porter’s address, the very invigorating panel discussions and the much awaited awards ceremony.

Emaar MGF as Guest Faculty at ISB, Mohali

Mr. Vikas Gupta, COO, Emaar MGF Land Ltd. addressed management students at ISB Mohali on the invitation of Prof. Tony Ciochetti, earlier with University of Texas at Austin, USA and now associated with Real Estate Chair, Massachusetts Institute of Technology (MIT).

Mr. Gupta gave an insightful perspective which served as an overview on the Real Estate Industry, and the various products which are normally developed by the industry. Additionally he discussed alternate possibilities wherein regular products could not be developed due to market or approval constraints.

Mr. Rajiv Gupta, Head Sales (North), Emaar MGF Land Ltd, also gave a brief on various schemes under which products can be sold when regular schemes like construction-linked plans fail to deliver.

Progressive Punjab Summit (9^th-10^th Dec’13)                                                             

The Government of Punjab held the Progressive Punjab Summit on 9^th and 10^th December 2013 to promote investment in Punjab. Among the invitees were Mr. Mukesh Ambani, Chairman, Reliance Industries Limited, Mr. L.N.Mittal, NRI business tycoon and Mr. Sunil Mittal, CEO, Bharti Enterprises.

Emaar MGF being one the largest investors in Punjab also participated in the Summit and utilized this unique opportunity to communicate their corporate brand with more than 1000 dignitaries who participated in the function.

Emaar MGF inaugurates The Economic Times ACETECH 2013

Emaar MGF Land Ltd, inaugurated The Economic Times ACETECH 2013 with Dr. K Ramamurthy, CEO-Projects, Emaar MGF giving the inaugural address. Dr Ramamurthy touched upon the need of the industry and criticality of product and service innovation and how that has a direct bearing on cost, quality and timely delivery.

 He also elaborated on contributions made by the real estate industry to India’s overall GDP and how the real estate industry is enabling its related industries to flourish. ACETECH is Asia’s largest exhibition of designers, architects and construction material manufacturers organized by ABEC Ltd which happens every year in Delhi, Mumbai, Bangalore, Ahmedabad and Chennai. 

 

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New Perspectives: EVC and MD Shravan Gupta Emaar MGF

Monday, May 12, 2014

The New Year brings with it a new energy and promise of many possibilities. It brings with it a new dawn – filled with new beginnings, new opportunities, and new adventures.  If last year wasn’t what you’d hoped it would be, the New Year gives you the opportunity to wipe the slate clean – a time to say goodbye to the disappointments, frustrations, and fears of the year that has passed. It’s a line in the sand, allowing us to let go of what isn’t serving us, and embrace all that lies ahead. On the first day of the year, it seems like the possibilities for our future are endless.

 

We at Emaar MGF begin this New Year with a new Resolve. A resolve which brings with it the determination to move towards a better and brighter future, one that will guide us towards our end goal of being the ‘Most admired and respectedcompany in real estate’, despite the challenges we may encounter along the way. 

 

Here is to new energies, new dimensions, new horizons, and a whole new perspective.

In this New Year we bring to you Horizons in a striking new format of a news-magazine. It is visually strong and brings to you all the new developments at Emaar MGF. We hope you will enjoy reading it. 

Happy 2014.

 

 

 

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Shravan Gupta's Emaar MGF Palm Garden is a phenomenal living life style: Dr. Amit Sharma

Monday, May 5, 2014

Shravan Gupta's Emaar MGF Palm Gardens is a residential integrated community built across 21.90 Acres of land. A well constucted society with 12 Apartment towers have been planned around open landscaped spaces, with large open spaces, excellent clean design, palm trees lining the wide roads with excellent recreational facilities. Built with a high emphasis on premium quality and design the complex is well occupied and has appreciated well in terms of market price and value. with a total of 1026 apartments including 3 bedroom, 5 bedroom and duplex plans. The development also includes a Golf putting range, 2 schools and EWS.

Contractor/Architect  :  IL&FS Construction Company/DFI
Location                      : Sector 83, Gurgaon
Delivery Schedule   : Construction commenced in June 2012 and is progressing as per schedule. The expected delivery is Sept 2015

Status as on date       : Construction Work in Progress
Amenities                   : 5/10 KVA Power Back-up
Perimeter Security   :Multiple Parks for recreation Modern Community Centre with Sports, Gym and Health facilities
Primary/Nursery School : Convenient Shopping
Interestingly, Emaar MGF Palm Garden with the high quality design and optimum pricing has attracted foreign investors as well. Shravan Gupta further adds, “it is a reflection of Emaar MGF’s international standard when it comes to design and development.

Dr. Amit Sharma, Resident, Palm Gardens
Hi, I'm Dr. Amit Sharma, resident in Palm Garden.
“It's phenomenal living here, contrasted with other private residential alternatives. The design and development is great and the open common zone gives a feeling of vast openness. “I’ve been here in 2012 but, I felt that is being so long Im living here. The whole society is now being like a family and became an important part of my life. We have a wonderful society here in Emaar MGF's Palm Garden with all the necessary facilities in abundance. For the wellfare and refreshment of the society members of Emaar MGF Palm Garden, We have a Palm Garden Club which is a club house, Where we have discussion on various matters and issues for society to resolve them in a civilised way. along with that, club house organising various event for refreshment of peoples to give them better life style. we also celebrate each and every festivals of every religion together without any boundation across the religions. As Palm Garden has many beautiful parks where Society club members gether at every morning yoga session and laughter session were held in park. Walking and jogging and doing excersies and kids also have wonderful place to play. Being a Doctor, it makes me feel lite that peoples here are good concern about their health. Like every beautiful morning of Emaar MGF's Palm Garden society, when the day leads towards colourful evening. Every fortnight we use to have a tea party for general discussion. With well laid out Palm trees lining the complex makes it appear as though we are in Dubai, particularly during the evening."
 

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