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

comments | | Read More...

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.

comments | | Read More...

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.

comments | | Read More...

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. 

 

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

comments | | Read More...

Emaar MGF accommodating with locational preferences

Monday, May 12, 2014

Property buying decision influenced by various factors, location being top priority for most buyers

: "EVC and MD Shravan Gupta's Emaar MGF"

 

 

 

 

Emaar MGF, a joint venture between Emaar Properties PJSC ("Emaar") of Dubai and MGF Development Limited ("MGF") of India encompasses various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution. At present, its focus is on the development of residential projects in Delhi and elsewhere in the NCR, Mohali, Hyderabad, Chennai and other key Indian cities.

The location of a property is a primary consideration, and one of the broad choices that help buyers define goals and Emaar MGF has perceived this desire of prospective buyers. The areas covered by Emaar MGF are some of the finest locations surrounded by welcoming green spaces, invigorating fresh air and sunlight; be it in Delhi NCR or other states. This has been the conception of Shravan Gupta (EVC and MD Shravan Gupta's Emaar MGF), Executive Vice Chairman and Managing Director of Emaar MGF whose visionary approach and observance of the changing Real Estate trends led to the astute selection of locations for residential construction under Emaar MGF.

Further, Research has revealed that “Location” has presently become the top most purchase consideration for home buyers. The preference for “Location” is even higher than “Price” which was the biggest influencer for property purchase over the last few years. Emaar MGF’s upcoming projects like Emerald Hills, Palm Hills, Palm Terraces Select as well as Digital Greens are being planned in the Gurgaon region which is highly in demand for residential as well as corporate properties in Delhi NCR. This would especially accommodate with the important shift in behavior of the home buyers who take into consideration the “Location” of the residence, they would settle in. Though, there are several other factors that will influence purchase decision like Price and Connectivity. In fact, around 13% of home buyers give higher preference to the “neighborhood” and proximity of the property to hospitals, schools and offices as well but location of property still remains the top priority.

“Factors such as location of one's friends, family, job and other interests will help buyers choose a general location to begin the search for the right home. Our vision is to become the most admired Real Estate Company in India through meeting the changing requirements while adapting with the latest market trends” says Shravan Gupta (EVC and MD Shravan Gupta's Emaar MGF).

The real estate companies are putting tremendous efforts to match up with the market transitions as well as the ever increasing requirements of the home buyers. While on the part of home buyers, the search for the perfect home requires to make decisions regarding how they would like to approach the process, the markets they wish to explore, and which features they need and want. The property purchase decision is crucial for the fact that large amount is involved in it and thus the buyer being selective over various factors is very obvious.

Related Search : EVC and MD Shravan Gupta's Emaar MGF, Shravan Gupta, Emaar MGF, Shravan Gupta Emaar MGF

 

comments | | Read More...

Emaar MGF (EVC and MD Shravan Gupta) and DLF like Real Estate Industries: Propeller of growth for Indian economy

Thursday, May 1, 2014

The out of box thinking approach followed by real estate developers (Like Shravan Gupta's Emaar MGF, DLF, IREO, BPTP, Amrapali Group, Parsvnath Devekopers and PACL etc..) have been instrumental in changing the face of India from being an under-developed country towards accelerating its way to a developed country by developing the state of art infrastructure developments.

  

The real estate sector has been the backbone of the Indian economy and Real estate Industries like Emaar MGF and DLF has been a major contributor in the economic growth. It is evident from the very fact that the Real Estate Sector contributes 8.53% of the total GDP and also witnessed growth rate to the tune of 30%. In the era of this modernization, Improving in the Architecture and Infrastructure by the Giants like Shravan Gupta's Emaar MGF have the power to make the world beautify. It is also pertinent to note that this sector has emerged as the fifth largest destination of foreign investment. 

 

The out of box thinking approach followed by real estate developers have been instrumental in changing the face of India from being an under-developed country towards accelerating its way to a developed country by developing the state of art infrastructure developments, buildings, townships, shopping malls not only in the urban towns of the country but in the Tier II & Tier III towns as well. This effort of developers has not only been useful in changing the face of India but infact has been providing sustenance to 250 ancillary industries. The road doesn’t end here as this sector has also been a good employer, by being the second largest employment generator in the economy where the top five real estate players (Like Emaar MGF, DLF and IREO etc..)employ more than 2.00.000 employees at different locations and being the highest employer to the BPL families. 

 

Nowadays with the changing attitude of people from living on rent towards owning their property the real estate sector has witnessed huge demand for the residential segment. The demand for commercial development is also growing at a fast pace due to a paradigm shift from unorganized retail towards organized retail coupled with MNC’s interest in establishing offices here in India. Going forward, the scenario would be no different as at present there is a shortage of almost 27 million dwelling units and the Indian real estate business which is estimated at USD 15 billion is likely to be USD 90 billion by 2015, predicts ASSOCHAM. The housing start-up index, which is now at a pilot stage, shows that new housing units in cities such as Kolkata, Chennai and Bangalore are showing lesser growth than the tier II and III cities like Lucknow (Emaar MGF Gomti Green; EVC and MD Shravan Gupta Emaar MGF), Indore (Emaar MGF Indore Green; EVC and MD Shravan Gupta Emaar MGF), and Patna and Gurgaon (Emaar MGF Marbella) etc. Reason being the growth these cities are posing in terms of their absolute business. 

 

As per latest Knight Frank report, since last 2-3 months the Indian economy has witnessed improvement in all the economic parameters be it inflation, IIP, imports, CAD, etc. However, for the second largest populous country, job creation is of utmost importance for it to return to its high GDP growth levels. Job creation primarily depends on the labour intensive manufacturing sector which in turn depends on the investment in this sector. Fresh investments in the economy have been overshadowed by the upcoming general elections despite improved economic conditions. Economic and political stability are the vital catalysts for revival of the real estate sector in India. In addition, revival of this sector also depends on the regional policies like VAT, land acquisition and other regulatory policies. 

 

In this current scenario where the Rupee is still on the higher side, inflation is yet to reach comfort level and the Indian financial system is caught amidst liquidity trap, we developers can not meet the burgeoning demand from customers without the government’s support. Thus, in order to meet the growing demand, we require the support of government by relaxation of norms to facilitate the growth of the Indian real estate sector. The RBI should also intervene by reducing Bank repo rates to another 100-200 basis points and to further reduce CRR in order to infuse additional liquidity in the cash starved market. Also for the prosperity of the sector at general and customers at large the government should facilitate the efforts of real estate developers by providing minimum infrastructure guarantee under habitation policy, relaxing guidelines on foreign investing in Indian Realty, reducing risk weightage and by giving the sector industry status coupled with reduction and uniformity in stamp duty. Immediate need is also to do away with the restrictions on real estate loans. 

 

Thus it is my firm belief that with our continued growth driven strategies and activities coupled with due attention and support from all-government, banks, bureaucrats and media we will be able to withstand any type of market conditions and would be playing key role in taking Indian economy to next level.

Read More: "click here"

Related Search: Real Estate, EVC and MD Shravan Gupta Emaar MGF, DLF, IREO, BPTP, Emaar MGF, Shravan Gupta, Shravan Gupta Emaar MGF.

comments | | Read More...