#2realestateedmonton

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How AI and blockchain are transforming cityscapes and real-estate practices - real estate

The tech industry’s great new hopes – artificial intelligence (AI), big data and blockchain – are making their presence felt in an unexpected new field: Indian real estate. As the world starts to rely more on these innovations, India is catching up, and making room.There are AI labs coming up in established tech hubs like Bengaluru and surprise destinations like Kolkata. Now, Hyderabad is set to house India’s first blockchain district. Experts point out that this signals an impending boost for the housing market there.Samantak Das, chief economist and head of research at real-esate consultancy JLL India says that any big tech disruption is bound to have a long-term positive impact on the economy and real estate, particularly the residential market. “We have seen that right from the 1980s with the computerisation of the banking system,” he says. Cities which adopted digital systems early, like Bengaluru and Chennai, gained significantly. Late-movers like Kolkata were left behind in the tech-enabled service industry and still lag behind in the real estate market, he points out.Blockchain districtTelangana state’s draft blockchain policy released last year supports Hyderabad-based start-ups in the sector. It also envisages a blockchain district in partnership with Tech Mahindra that will house all major technology companies in the field, along with an incubator for promoting research, innovation and industry collaboration.“The aim is to create new employment, support startups, and make Telangana and India the blockchain capital of the world,” says Rajesh Dhuddu, global practice leader, blockchain at Tech Mahindra.Government rolePrivate-public partnerships like this are crucial for the growth of fields like AI in India, believes Khurshed Gandhi, managing director, consulting services at realty services firm Cushman & Wakefield. “After 2016, big players like United States, United Kingdom and China have come out with a policy on artificial intelligence (which has positioned them as the global leaders in both research and industry according to the Stanford Institute for Human-Centered Artificial Intelligence),” he says. “We still don’t have a comprehensive policy. These areas will require a lot of investment in research but private companies are too focused on profit, that is where the government needs to come in,” he says.This kind of clustering helps industries big and small leverage their strengths and collaborate. Government subsidies and infrastructure plans become easier to implement, small firms can pool in and share overheads. It also helps in creating ecosystem with allied industries in an area. Das however points that infrastructure like traffic management needs to be worked out in advance or else the crippling traffic woes of Whitefield in Bengaluru or Bandra Kurla Complex in Mumbai will be repeated.The higher intensity of work also requires a different approach to planning space and this means that a blockchain, AI centre or even a data lab might require a far bigger space, says Najeeb Khan, head of design and business strategy, India and Middle East, tech-forward construction company, Katerra. “A blockhain or AI office has to be different from a BPO office. In a BPO design there is around 60 square feet allocated per person, for blockchain it will be much higher because it is a large-scale innovation lab which involves multiple machines. It is something like a sophisticated factory. Moreover, the kind of workforce we are looking at in an AI office is also different. It is highly skilled and will devote a huge number of hours. So the design needs to make them feel at home and at ease,” he says.The city stands to gainDas admits that there are apprehensions of job losses with artificial intelligence in the short term. but he explains that this will only be to replace them with newer jobs like machine trainers who will write algorithm for the machines or explainers who will be the bridge between machines and humans. “There is also a possibility that these jobs will be of a higher level, contributing to the entire economic chain in a better way,” he says.As far as an immediate impact of the blockchain district on the realty landscape of Hyderabad is concerned, it depends on where the land is allocated, says Gandhi.“Hyderabad now has one major market which is the west of the city in Gadchibowli and HITEC City. Land is very expensive here, so my guess is that the government might push this initiative towards east or south. In that case, they will not make much of a difference to the west market but it will surely increase the east and south by 15-20% gradually,” he says. Read the full article

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Budgeting for the long run - real estate

The union Budget announced on February 1 dampened the high expectations of the real-estate sector, which has been reeling under liquidity challenges caused by the NBFC crisis. However, while developers and realty consultants feel there were no quick fixes offered to help the industry recover at the moment, there were positive takeaways for the long term.Aside from the affordable housing push and income-tax relief, there is a focus on alternative segments such as warehousing, establishment of data centres and smart cities that is expected to indirectly benefit the realty industry. Also the additional push on developing national highways and construction of airports will eventually become an ally for real-estate sector to grow further.A mixed bagThough the income tax relief provided is being lauded as a positive point, industry players aren’t happy about it. Viewing the tax cut as a standalone factor without any added benefits is a meaningless exercise. “The only way in which this Budget can boost the real-estate sector is by accelerating growth, thereby inducing demand for new homes,” says Satish Magar, national president of the Confederation of Real Estate Developers Association of India (CREDAI). “No sector-specific measures such as providing more liquidity for the sector, one-time restructuring of loans and tax deductions on home loans to give impetus to buyer sentiment were announced to revive the ailing sector, except for extending the tax exemption for one more year till March 2021, to affordable housing developers.”Lowering of income tax rates with removal of exemptions may not lead to any meaningful boost in consumption, adds Shishir Baijal, chairperson at realty consultancy CREDA. “And as far as the funding constraints for the sector are concerned, the government spoke about enhancing the partial credit guarantee scheme for NBFCs, which again may not suffice for the ailing realty sector.”What could have helped here is additional rebates, waiving off several charges on the way to secure a housing loan and further of tax benefits for home buyers. For instance, a hike in the Rs 2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act, says Anuj Puri, chairperson of Anarock Property Consultants. And this could have kick-started healthier demand for housing.While nothing in specific was laid out for the real-estate sector to benefit directly, experts are joining the dots to see how the cost allocation in alternative segments could boost the industry.For the retail space, one of the largest and most diverse segments, there was nothing in the Budget to boost consumption. And analysts are concerned about the segment’s impact on the sector. “There are neither any benefits that could have indirectly benefitted developers of retail assets, says Shubhranshu Pani, managing director for retail services and stressed assets, management group, at realty research company JLL India.“We have to wait and see the impact of the personal tax initiatives on consumption and how much of the savings by taxpayers will translate into demand and consumption in the retail sector, but it is unlikely to be much,” he adds.Points overlookedThe Budget subsequently lacked proper allocation of costs for real-estate and instead, much emphasis was laid on targets for the annual rate of inflation and other fiscal policies, says Niranjan Hiranandani, president of the National Real Estate Development Council (NAREDCO). “The labour intensive sector which had pegged its hopes on additional liquidity infusion, tax reforms and rental housing was overlooked in the Budget.”On the other hand, Puri points out that the abolition of dividend distribution tax (DDT) for corporates is a bold move by the government and will help businesses diversify or expand and make India an attractive destination for investors, thereby boosting foreign investment. This will eventually pave way for many firms to grow and, in turn, generate demand for office spaces benefiting the commercial real estate.But he also feels that the Budget could have addressed critical issues. “There were no announcements on implementation of land reforms. The 15% tax rate for companies looking to set up new factories can be applied only if they can acquire land easily. Further, bringing greater transparency to India’s outdated land records system would help attract more foreign investors and speed up the approval procedures for real-estate projects,” says Puri.Rays of hopeRather than giving direct benefits to residential real-estate as a whole, the finance minister laid more focus on alternative segments within real estate such as warehousing, data centres, schools and hospitality market with 100% tax exemptions on sovereign wealth funds towards infrastructure investments. “This will help infuse much-needed funding into the sector,” says Chintan Patel, partner, deal advisory and national head, building construction and real estate, at KPMG India.Also, the co-living space, even though it is in its nascent stage, was ignored. However, several educational initiatives are being viewed closely toPatel also states that the Study in India programme, through which students from Asian and African countries would receive scholarships to study in the Indian higher education institutes, is likely to boost the co-living segment by generating demand for student housing.Additionally, the focus on urban development by proposal of five additional smart cities will automatically provide a thrust to the sector, adds Anurag Mathur, CEO, Savills India, a realty research consultancy. Along with this, plans for developing strategic national highways have also been announced, which can help bring about developmental changes in the realty space as well.The Budget’s focus on infrastructure upgrade of Chennai-Bengaluru and Delhi-Mumbai Expressway, estimated to be completed by 2023, seems to be a step in the right direction. “This will open up new markets for builders. Proposal of the development of 100 new airports to be built by 2024 under the Udan scheme help too,” says Ashok Mohanani, developer and vice-president, NAREDCO Maharashtra. Read the full article

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DLF’s sales bookings up 21 pc at Rs 2,156 cr in Apr-Dec 2019 - real estate

Realty major DLF’s net sales bookings rose 21 per cent to Rs 2,156 crore during April-December, 2019-20 on better demand for its completed inventory.  Its sales bookings stood at Rs 1,788 crore in the year-ago period.According to its investor presentation, DLF’s sales bookings stood at Rs 731 crore in the third quarter of this fiscal as against Rs 563 crore in the corresponding period of the previous year.  The company said it is confident of achieving the sales target of Rs 2,700 crore for the entire 2019-20 financial year.  During 2018-19, DLF clocked sales bookings of Rs 2,435 crore.It said the company would continue to focus on faster monetisation of unsold completed housing stocks worth Rs 9,415 crore. The demand for luxury segment remained subdued.  “Entering into the new cycle of development for replenishment of completed inventory at select marquee locations. Planned new projects of around 21 million sq ft,” the presentation said.On debt, DLF said its net debt stood at Rs 4,866 crore at the end of the third quarter.“The company expects to exit the current year (fiscal) with around similar level of debt,” it added.Earlier this week, DLF reported 24 per cent increase in consolidated net profit at Rs 414.01 crore for the quarter ended December despite fall in income.Its net profit stood at Rs 335.15 crore in the year-ago period.Total income fell 36 per cent to Rs 1,533.34 crore in the third quarter of 2019-20 from Rs 2,405.89 crore in the corresponding period previous year. Read the full article

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Centrum Housing to get Rs 190 crore from Morgan Stanley Private Equity - real estate

Centrum Housing Finance Limited (CHFL) has entered into an agreement to raise Rs 190 crore of equity from a fund managed by Morgan Stanley Private Equity Asia.In a filing in the financial markets, CHFL said, “The investor (Morgan Stanley) will subscribe to 6,66,90,413 equity shares of the face value of Rs 10 each, for an aggregate consideration of about Rs 190 crore.”CHFL said the funds will enable the company to expand its operations in the country as well as enter into new areas.The agreement means that Morgan Stanley will now get a minority stake in CHFL.Centrum Housing, which is a subsidiary of Centrum Group, focuses on providing affordable housing to the middle class.“The company primarily offers financing to individuals for buying and building houses in the affordable housing segment,” the filing added.Centrum Housing added that till date it has disbursed loans over Rs 500 crore and has 36 branches across 6 states - Delhi, Maharashtra, Gujarat, Madhya Pradesh, Rajasthan and Chhattisgarh.CHFL said that the fund managed by Morgan Stanley Private Equity Asia will be the “first external institutional investor” in the company.CHFL Executive Chairman Jaspal Bindra said together CHFL and Morgan Stanley will work to grow the business nationally. He added that there is a big opportunity in the low to middle-income segment in tier 2 and tier 3 cities.Arjun Saigal, co-Head of Morgan Stanley Private Equity Asia in India, said that there is tremendous opportunity in the affordable housing space in the country. He further said the latest infusion of funds is the company’s fourth investment in India’s retail lending space.Morgan Stanley Private Equity Asia manages third party money funds in Asia-Pacific and so far has invested in the region for over two decades. It has offices in Hong Kong, Beijing, Shanghai, Seoul, Bangkok and New York. In India, it has an office in the commercial capital, Mumbai. Read the full article

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Developers unhappy with Union Budget 2020, say no major steps for real estate sector - india news

Real estate developers were a disappointed lot with the Budget not presenting any major step to bail out the sector that is facing the brunt of the liquidity crisis plaguing the financial sector for the past 18 months.The government retained its focus on affordable housing but did not make any specific announcement to revive housing.The finance minister proposed to extend a tax holiday offered to builders developing affordable housing projects.“To boost the supply of affordable houses, the tax holiday is provided on profits earned by developers on affordable projects approved by 31 March 2020. I propose to extend the date of approvals on affordable projects for availing this benefit by one more year again,” she said.The government has also proposed to extend by one more year the additional deduction of Rs 1,50,000 for interest paid on home loans taken for buying affordable homes.In her last budget, the minister had increased the interest deduction to Rs 3,50,000 for houses priced below Rs 45,00,000 as against Rs 2,00,000 earlier for loans until 31 March 2020.These announcements are however unlikely to be enough to revitalize the real estate market where several projects have been stalled for want of funding, according to several developers and property consultants.“As far as real estate is concerned, its only affordable housing. I think the misses are more than what has been given. We have been suggesting that the government provide a one-time rollover of loans like it did in 2008, and also come up with a better rental housing policy given the success of the commercial leasing segment because that’s where all the foreign direct investment money has come in. So, a large amount of work needs to be done,” said Rajeev Talwar, chief executive officer, DLF Ltd.Unsold luxury housing stock (homes costing more than Rs 1.5 crore per unit) grew 10% in the top seven cities by 2019-end, according to data from real estate advisory firm Anarock Property Consultants.These cities had a total of 89,200 unsold luxury homes at the end of 2019.Last year saw several realty-focused steps from the government, the key being the Rs 25,000 crore alternate investment fund for last-mile funding of stalled housing projects. Read the full article

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Wired for change: Developers go digital to cater to a tech-reliant generation - real estate

When it comes to offering amenities as part of residential projects, swimming pools and lake-side views are no longer the benchmarks of luxury living. When a tenant hears the word ‘amenity’ today, they’re more likely to envision digital add-ons – free WiFi zones, keyless entry, e-gaming centers, electric vehicles and digital entertainment hubs. “For the urban buyer, these are fast becoming must-haves,” says Santosh Kumar, vice-chairman at Anarock Property Consultants. “Today this is what consumers really want and are willing to pay a premium for.” And so technology is being widely harnessed to cater to changing demands. “No one is skeptical about it any more. We know the potential of tech add-ons to change the business,” says Shailesh Puranik, managing director at Puranik Builders. “Pretty much everyone accepts that it is no longer a question of if but rather, what and when.”In their upcoming township in Neral, Puranik Builders are offering amenities such as digital entertainment centres where residents can stream shows and watch films together, e-learning centers for webinars, skills development classes, a digital library, a silent disco and a digital gaming room with video games and virtual board games to choose from.“Where earlier the idea of a recreational zone meant sprawling gardens and parks, today with unfettered internet access and the ubiquitous screen, the amenities have to live up to the needs of today’s youngsters,” Puranik says. Another trigger, he says, is that as townships began to be built on the outskirts of metropolitan regions, these facilities became a way to entice the urban buyer and ensure that they did not miss out on any of the key amenities available in the heart the city.Tech supportThe Embassy Group launched Alexa-enabled homes last year, Hiranandani developers have tied up with Amazon and Google for voice-controlled home automation systems for their upcoming project in Thane. “Smalls tasks like maintaining your daily calendar and operating household appliances, paying utility bills or engaging with fellow residents at a simple voice command, is not futuristic anymore, it is the new world order in real-estate,” says Reeza Sebastian, president for residential business at Embassy Group. “So we are shifting our focus to create and design homes meant for today’s young, tech-dependent home-buyer. This particular user segment is also aspirational and these are elements they consider important to a certain quality of life.” Physical assets will slowly be accompanied by digital assets across developments of the Lodha Group. At some of their properties, residents are given radio frequency identification tags for their vehicles so there is no manual intervention required for security checks. All new properties have charging points for electric vehicles, to draw in the environmentally conscious customer. “It’s just one way to prepare for the times ahead,” says Prashant Bindal, chief sales officer at the Lodha Group. Some of the other features at their properties include smart street lights that switch on and off based on smart estimates of local sunrise and sunset times; robotic cleaning systems for pools; smart cards for residents that also act as proof of ID and allows for secure access to private areas such as visitors’ lounges and clubhouses. “We also have a smart visitor management system that enables secure and quick access for visitors within the property,” Bindal says. There are two risks to this kind of dependence on technology — one, tech is constantly becoming outdated, so updating can be a challenge; and two, the ever-present security and privacy issues. “Security and privacy issues are certainly something to be wary of,” says Kumar of Ananrock. “These can be a major concern particularly in automated homes and the linking of private data to shared public spaces.” Read the full article

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This could be America’s most expensive home ever, if it can find a buyer - real estate

America’s priciest home is finally getting its finishing touches.Seven years after he started working on “The One”, a 100,000-square-foot mansion in Bel-Air, movie producer turned developer Nile Niami says he’s just about ready to test the market with his ballyhooed $500 million asking price.Replete with a nightclub, four swimming pools, bowling alley and 360-degree vistas of sun-dappled Southern California,  the symbol of America’s latest gilded age has generated a flood of media coverage since the proposed price was announced in 2015.And while permitting problems, construction delays and financing issues have exposed the struggles of building luxury homes on speculation, and raised questions about whether the project high above Los Angeles would ever be finished, Niami says he’s almost done.  And he’s not backing off the lofty price tag, which would make the house the most expensive in America.“When you have something that’s as rare as the Mona Lisa, you can command whatever you want for it,” Niami said in an interview, arguing that recent nine-figure property property deals in Los Angeles and elsewhere are proof that his pricing strategy was not just about generating press. “When the house was started, I had no basis to ask $500 million— now there are so many triple-digit sales in L.A. and the world that the asking price is not unreasonable anymore.”Niami admits the pressure of his development odyssey has aged him prematurely.  Building mega-mansions without a buyer lined up can be precarious. Cost overruns and delays are common, carrying costs are high, and shifting appetites for luxury are hard to predict. And while a project as eye-popping as The One grabs headlines, the amenities and specific design can ultimately narrow the pool of potential buyers, said appraiser Jonathan Miller, president of the real estate appraisal and consulting firm Miller Samuel Inc.“The problem is, the more amenities you add, the more you personalize the property,’’ Miller said. “Even though the intention is to draw eyeballs to the property, you are also personalizing it, which may reduce the size of the market pie. It’s a very small, very tight market.”Niami says that’s not a problem. Los Angeles has tried to limit  the construction of new mega-mansions, meaning nothing like The One can be built again, the developer said. And while one amenity that got a lot of attention — a room with tanks of live jellyfish lining the walls — has been dropped because it was too much work, Niami said he’s got something planned that’s  “even better.’’He hasn’t yet let anyone inside the property, but says the special features have helped draw interest from potential buyers. He’s talking to them now, but declined to provide details, citing privacy issues. The One’s unveiling will happen once the final interior decorating is done, Niami said.“I’ve had potential buyers a long time on this,’’ Niami said. “We have a list of very real, verifiable buyers that we will bring in soon.”Pricing homes above their market value, a strategy known as “aspirational pricing,” is a way for a developer to get attention for ultra-luxury listings.  A sale at the half-billion-dollar asking price would be more than double the biggest residential real estate deal in the U.S. to date -- a $238  million penthouse purchased by Citadel founder Ken Griffin in Manhattan. Niami points out that Griffin’s place is an apartment, with no land, while The One sits on 3 acres.“The Billionaire,” another Bel-Air spec house that briefly was the most-expensive home for sale in America, was originally listed by developer Bruce Makowsky for $250 million. The 38,000-square-foot mansion, with wine cellars, pools, a bowling alley, helipad and “candy room,” sold for $94 million in October, a 62% price cut.A Los Angeles native raised by a single mother who was  a special education teacher, Niami started out as a makeup artist in the move industry.  He eventually became a producer and his credits include “The Patriot,” starring Steven Seagal, and “Point Blank,” with Mickey Rourke. His turn to real estate came when he began remodeling condos. Niami has two additional multimillion-dollar projects in Bel-Air. On a neighboring hillside, another of his properties, 10701 Bellagio Road, took three price cuts after being listed in 2018 for $65 million. A notice of intent to revoke permits on that property, and on another $65 million Niami-owned mansion directly behind it, were issued by the Los Angeles Department of Building and Safety.“When you have something as rare as the Mona Lisa, you can command whatever you want”Without those permits, the properties can’t be legally occupied.  After several meetings, the issues are close to being resolved, according to a spokesman for the Los Angeles Department of Building and Safety. Still, the properties have been taken off the market, he said.That leaves The One. Niami took out a two-year $82.5 million loan from Hankey Capital, which specializes in high-interest bridge financing, to help finish the construction. He’s current on the debt payments and faces an October deadline to repay the money, according to Hankey. Niami declined to comment on the rate of his loan.While very few super-luxury homes sell each year, there was an uptick in 2019. Last year, 23 homes went for $50 million or more in the U.S., the most since 2014, according to Miller. Six of those sold for at least $100 million.“The One is absolutely no issue,” Niami said.  “The value is definitely there.” Read the full article

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Tulip Infratech to invest Rs 275 crore for luxury housing project in Gurugram - real estate

Realty firm Tulip Infratech will develop a luxury housing project in Gurugram by investing Rs 275 crore.The project will come up at 8 acres of land and the company plans to construct 780 apartments.Tulip Infratech is expected to soon start the construction of luxury housing and the project is likely to be completed in next four years, news agency PTI reported.The real estate firm said that have150 apartments for people belonging to economically weaker section (EWS) will also be a part of the project. Tulip Infratech said it has joined hands with a local landowner for the Gurugram offering.The price of the project has been pegged at Rs 5,100 per sq ft. The initial price of an apartment has been fixed at Rs 96 lakh.Parveen Jain, chairman and managing director of Tulip Infratech, said funding of the project would be carried out through “internal accruals” and the company’s debt stands at zero, the report added. Tulip Infratech was founded in 2015 since then it has executed several projects in Haryana and other places. Till now, it has successfully completed around 12 projects comprising over 5,000 apartments.In 2019, the real estate company launched two ambitious projects Tulip Yellow and Tulip Leaf in Gurugram. Read the full article

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Bharti Realty partners with Asthetic Developers for Gurugram project - real estate

Bharti Realty, the real estate wing of Bharti Enterprises, has partnered with Asthetic Township Developers to build a commercial project in Gurugram, Haryana.The new commercial project will comprise 6 lakh sq feet of office and retail spaces and construction is expected to commence within the next couple of months.The cost of the project has not been divulged by Bharti Realty, but news agency PTI said it could cost around Rs 350 crore, excluding land cost.Around 3 acres of land in Sector 27 of Gurugram is owned by Asthetic Township Developers Pvt Ltd. This will be developed as a commercial project under the real estate asset management model by Bharti Realty.The project is situated between IFFCO Chowk Metro Station and Huda City Centre Metro Station with residential hub and business districts of Gurugram in the vicinity.Bharti Realty MD and CEO S K Sayal said the project will set a new benchmark in the commercial development segment in Gurugram.Bharti Realty was founded in 2003. The company has developed almost 5 million sq feet of Grade-A commercial spaces across Delhi, Gurugram, Bengaluru, Chennai, Kolkata and Ludhiana.Some noteworthy projects of Bharti Realty include Bharti Crescent in New Delhi, Worldmark in New Delhi and Airtel Centre in GurugramIt is currently developing another 9 million sq feet of commercial real estate space in Delhi-NCR. Read the full article

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Bhutani Infra ropes in BL Kashyap Ltd for Rs 500 crore project in Noida - real estate

Realty firm Bhutani Infra has extended a Rs 500 crore contract to BL Kashyap and Sons Ltd to develop a project in Noida, Uttar PradeshThe commercial project will be part of Bhutani Infra’s Cyberthum, which will be spread over 27 acres of land. BL Kashyap Ltd has been entrusted with building 22 lakh sq feet area.Ashish Bhutani, CEO Bhutani Infra, confirmed the development, news agency PTI reported.Cyberthum is located near the Noida Expressway on Sector 140A, Noida. It includes business spaces, retail shops and office spaces with lease guarantee.The other noteworthy projects of Bhutani Infra in Noida include Alphathum, Ithum and World Square Mall.Cyberthum is being hailed as north India’s tallest commercial tower. It comes with a facility of a helipad and ample parking facilities. The nearest Metro station is Sector 137.Cyberthum will have two towers, consisting of 50 storeys of buildings each. It is located around 30 minutes away from the upcoming Jewar International Airport and is around 55 km from the IGI (Indira Gandhi International) Airport.The real estate company has launched Cyberthum My Pod project, which is a part of Cyberthum project. Cyberthum My Pod is a co-working office space spread over 67 sq feet.Ashish Bhutani added that Noida has seen spurt in demand for office space and commercial development of late because the rent of the flats is less in comparison to Gurugram.Bhutani Infra player has recently finished the construction of its commercial project Alphathum at a cost of Rs 1, 200 crore. Over 32 lakh sq feet area of the project has been in the “fit-out” stage.BL Kashyap and Sons Ltd is one of the leading construction, infrastructure and civil engineering companies with a presence across the country.The company has several clients which comprise the Escorts Group, Goetz India Ltd, Birla Group, Carraro India, Oberoi Hotels, Taj hotels and Shangri-La hotels. Read the full article

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Startups are helping city buyers invest in farm plots, agro-forests - real estate

As realty prices rise in the cities, there is growing interest in farmland on the edges of metropolitan areas. Some want it so they can do their own organic farming, others use it as a second home and rent it out to holidays as a means of income, still others just want an affordable investment, and some are using the land to plan their retirement homes.Farmland is typically more affordable. And with the promise that metropolitan regions will grow, and make your investment worth exponentially more, there are start-ups now offering to help you make the switch to farmland, from the paperwork to the managing of the plot and eventual sale.New directionIt is not an easy switch to make, going from urban to rurban or rural. Acquiring farmland alone can take years, and in some states is not really an option unless you can show that you have an agricultural background.“The rules relating to the owning of agricultural land differ from state to state,” says Manish Ramjiyani, managing committee member of the Confederation of Real Estate Developers Association of India - Maharashtra Chamber of Housing Industry (CREDAI-MCHI).For instance, it is very difficult to buy a farmland in Maharashtra if you are not from an agricultural background. Whereas that is not the case with states such as Telangana, Andhra Pradesh and Tamil Nadu. “Over time, as a city expands and the urban limits end up absorbing the villages on the outskirts, people tend to invest in plots on the periphery. But this too should be a considered decision, because if the metro does not come close enough, land prices may not appreciate, and could even be seen to depreciate over time.”That’s what has happened with Venkatakrishnan, 56, from Mumbai. He invested in 3 acres on Old Mahabalipuram Road (OMR) in Chennai, a city that is fast expanding and including peripheral areas in the greater city limits. “The idea was that the value of this plot would appreciate greatly when the locality turns into a buzzing place with people renting and building homes here,” he says. “That hasn’t happened, and now I want to sell it but I cannot find a buyer. Rates too haven’t appreciated as I had expected.”OutsourcedTo help navigate the paperwork and minimise the risks and hassles of maintenance, startups such as Beforest and Hosachiguru have begun setting up and running agro-forest and agricultural communities, most of them on the outskirts of metro cities.Bengaluru-based Hosachiguru describes itself as an agricultural asset management company. “We choose our areas based on several parameters,” says co-founder Srinath Setty. “Water availability, land fertility, soil quality and investor budget.”Apart from fruits, vegetables, they also grow timber and guests can earn from the produce; all they do is invest the initial capital, and pay annual maintenance fees.Set up in 2018, Beforest entered real estate with the idea of selling land, managing the farms of buyers and creating a community that lives amid agro-forests and farmlands. “I was planning to invest in a farm. But the return on investment was not much and managing it seemed very hard,” says Sunith Reddy. “I met many friends who had similar views in investing and that’s when we started the firm.”The objective, Reddy adds, was to make owning farmland viable. “We create collectives of 30 to 40 buyers per plot. We have such collectives in Bengaluru, Coorg and Hyderabad. This makes the entire concept cost-effective when compared to one individual dealing with the hassles and spending huge amounts on maintenance.”Kranti Vanga, 35, a business consultant, owns 2 acres of farmland in Anthappaguda village, 50 km from Hyderabad. He lived for three years, indulging his passion for organic farming. “Buying the plot was not difficult, but issues can follow later,” he says. Documentation, registration, and if you are living somewhere else, lack of security, are key potential issues. If there is any encroachment, it becomes very difficult to reclaim the plot entirely.So when he bought his second such plot last year, it was a patch of agro-forest in Coorg — a house with a farm forest around it that he plans to use as a holiday home — run by Beforest.“This place is so different from what I have back in Hyderabad. I am in middle of dense greenery, we take part in coffee harvesting, go on trails through the coffee estates, and there’s none of the hassle and stress of managing a farm yourself,” he says. “This trend is still in its nascent stage,” says Samson Arthur, Hyderabad branch director at Knight Frank India, a realty research firm. “With affordable housing, there is demand for farmland. With the slump in urban realty and the costs still remaining inflated, people are turning towards this sector due to its long-term benefits. However, it is just the beginning now and land policies of the state has a bigger role to play in the growth of this sector,” he says. Read the full article

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Government push needed for affordable housing: Expert - real estate

Despite the Ullawas building collapse leaving seven people dead, illegal colonies have continued to crop up around the city in 2019. According to an estimate by the department of town and country planning (DTCP), over 100 illegal colonies, over 450 acres, have mushroomed and thrived in the city in the last year. Over the last 12 months, such colonies have cropped up extensively in Bhondsi, Farrukhnagar, Manesar, Pataudi, Sultanpur and in parts of Sohna.Real estate experts say that the reason for the increase in illegal colonies is that the majority of buyers are totally priced out of the formal housing market controlled by private developers and people are forced to buy houses in illegal colonies.The prospect of the comparatively low cost of plots, payment in instalments and the fact that construction can be done without following norms is an additional advantage, say experts. Also, these colonies offer buyers a chance to run shops, dairies and other businesses, which is not possible in planned developments.The failure of the state government to intervene in the housing sector and its withdrawal from developing real estate, in favour of private players, is another reason that people are pushed to invest in illegal colonies, say town planners.Officials also said that illegal colonies are coming up on agricultural land, against the rules, as a change in land use (CLU) permission is required from the departments concerned and it is easier to take action. In comparison, the settlements in Ullawas are more difficult to check as these come either under the ‘lal dora’ or an extension of ‘lal dora’, wherein the town planning department has minimal authority, due to which almost all 40 villages under the MCG have turned into urbanised ghettos, said officials.The phenomenon of illegal colonies is not new and goes back to 1980s. Rishiraj Rana, a former councillor and city-based politician, who has taken up the cause of illegal colonies, says that growth of these colonies was fuelled by migrants who came in search of jobs in 1980s and 90s. “The plots were sold for as little as Rs 100 per square yard in the 1980s whereas the current rates have risen to around Rs 35,000 sq yd. A majority of the people who bought the properties were lower middle-class residents,” said Rana.Despite the low plot costs, residents said that living in these colonies remains a major challenge as the state does not provide basic utilities or other important facilities.However, there is still a rush to buy houses in illegal colonies, as the state has stepped back from providing housing to different sections, a deviation from its own policy, says Rajvir Singh, former chief town planner, Haryana.“In Haryana, the real estate space has been ceded to private builders as the Huda/HSVP and state housing board have failed to do their jobs. Even houses built by these agencies don’t get sold due to poor planning,” he said, citing the ‘Ashiyana’ scheme, in which houses could not be allotted even after two decades.“Apart from the few affordable housing projects, an apartment in the city is priced over 70 lakh and a plot in an authorised colony is close to 1 crore. How many people can afford such houses?” says Sanjay Sharma, a real estate consultant.In comparison, plots in illegal colonies are cheaper as they are available for Rs 5,000-30,000 per sq yard, depending on the location. In colonies, such as Dharm Colony, Sheetla Colony and Om Vihar, developed around 900 metres of the IAF ammunition depot, plots were sold for Rs 15,000-30,000 per sq yard despite minimal basic amenities.“Residents compromise on parks, dispensaries, play areas, clubs and government schools so that they have the assurance of shelter. Living without a house in an expensive city such as Gurugram is difficult,” said Mushtaq Ahmed, a resident of Dharm Colony, who rues that access to an HSVP park, just across his shop, is denied to them because they don’t reside in Sector 23.The rate of plots in nearby, regularised colonies, is close to Rs 1 lakh per square yard, placing them out of the reach of the common man, says Ahmed.Sanjeev Mann, senior town planner, MCG, Gurugram, said that there is no provision for providing basic infrastructure to unauthorised colonies. “There is a criterion for notifying the colonies. Only those, where 50% of the total area has been developed, can be legalised. The plan of the colony is juxtaposed onto the existing master plan and a board headed by the DC gives the approval, after which the services can be given,” said Mann.In 2016, the MCG had asked Haryana Space Applications Center (Harsac) to survey illegal colonies and proposed that 64 such settlements should be considered for regularisation. A proposal to regularise 48 such colonies was sent to state government, after which 35 colonies were notified and the rest awaiting a study. “The regularisation of colonies is a long process and takes time,” said Mann.Experts said that affordable housing should be given a push on a large scale and the growth of illegal colonies should be checked through strict enforcement. “Floor area ratio and density are the two major determinants for achieving optimisation of land resources and rationalising housing costs. FAR and density should be redefined to make housing cost-effective. The government fees, charges and taxes should be brought to minimum for affordable housing,” a report by Institute of Town Planners, Haryana chapter, states.It was in this context that Haryana chief minister Manohar Lal Khattar had also asked the builders during a recent meeting in the city to plan for constructing 1 lakh low-cost houses, costing Rs 15-20 lakh, across the state.On the enforcement front, the DTCP and district administration say that the action against illegal colonies has been continuous, but will make it more effective by working in tandem. “We have decided to install boards in all illegal colonies to make buyers aware that buying plots is a violation of the law. It has also been decided to register police complaints even against buyers in such colonies,” said RS Bhath, district town planner, who holds the additional charge of enforcement.In the last four years, the department has got 50 cases registered against violators and these cases are currently being pursued more vigorously, he said.Revenue officials have also been asked to not register a sale/purchase deed of small plots, for which a no-objection certificate from the DTCP is not available, said Bhath. The department, in collaboration with the district administration and police, will also launch large-scale demolition drives to prevent new houses from coming up.However, Singh said that demolition drives are no solution to the housing problem and the state should, instead, focus on creating more housing. “The average decadal growth of population in a city is around 25%, but no provision has been made for even this minimum number in the city,” he said. Read the full article

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Tenders floated to select contractor for Amrapali flats - real estate

The state-owned NBCC Thursday said it has issued tenders to select a construction agency that will be engaged to complete the construction of three Amrapali housing projects. The move comes after the Supreme Court-appointed court receiver, R Venkatramani, on January 10 asked the NBCC to hire construction agency so that apartment owners can get flats.“We have issued tenders to select a contractor that can carry out construction work and finish housing projects of Amrapali. Some agencies were already hired and these started finishing work in other projects,” NBCC chairman and managing director PK Gupta said. The NBCC has issued tender for Amrapali Heartbeat City-1 and 2, located in Sector 107, and Amrapali Platinum and Titanium, located in Sector 119. In Amrapali Heartbeat City-1 and 2 some flats are ready but work on civic amenities is yet to be finished. “Similarly, in Platinum and Titanium projects, only some of the flats are complete. We do not have the exact number of flats that need to be finished,” said a Noida authority official not authorised to speak to the media.The NBCC said it has a budget of Rs170.30 crore to finish the remaining work in Heartbeat City-1, Rs 405.24 crore for Heartbeat City-2 in which only civil structure of flats are complete, officials said. For Amrapali Platinum and Titanium, the NBCC has a budget of Rs 20.83 crore as there isn’t much work that needs to be completed, officials said.In March last year, Amrapali Group’s promoters were arrested and jailed in connection with an economic offences complaint registered against them. On July 23, the SC appointed a court receiver to take control of all housing projects by the Amrapali Group. “We have asked the NBCC to select a construction contractor, finish the remaining works and deliver the flats to apartment owners,” court receiver R Venkatramani said. In some partially completed housing projects, a handful of apartment owners have been living without access to common facilities such as lifts, fire safety systems and approach roads, since 2014-15 when the developer made them shift.“We hope that the NBCC will finish remaining work and we will get the required services. We are happy that the government will finally complete the flats. We have been suffering for a long time,” Dinesh Kumar, an investor in Amrapali Heartbeat City-1, said. Read the full article

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DLF to invest Rs 5,000 crore in new commercial project in Chennai - real estate

One of India’s major real estate players DLF has announced that it will be investing Rs 5,000 crore to build a commercial project in Chennai.DLF is well-known for its projects in Delhi-NCR, particularly Gurugram.The amount will be invested in Chennai by DLF in a phased manner, to develop a 6.8 sq feet commercial project to be known as DLF Downtown, news agency PTI reported.The foundation stone of DLF Downtown was laid by Tamil Nadu Chief Minister Edappadi K Palaniswami.DLF Downtown, which will be coming up Taramani in Chennai, is the company’s fourth project in the capital of Tamil Nadu.The real estate firm will begin construction of DLF Downtown by delivering around 2.5 million sq feet of area in the first phase, DLF CEO Mohit Gujral told at the foundation stone laying function. Gujral added that Tamil Nadu has immense talent as well as favorable business environment and therefore, it has been a destination of choice for many corporates and multi-national companies (MNCs).DLF Downtown project will be spread across 27 acres and is expected to be completed in 5-6 years. The project will be developed by DLF’s joint venture firm with GIC named DLF Cyber City Developers Limited (DCCDL).The new project will also have commercial area, mostly office spaces, that would be constructed over 6.8 million sq feet in different phases.Once the project becomes operational, DLF Downtown will help provide additional 70,000 direct and 6,000 ancillary employment to people.After Gurugram, Chennai will be DLF’s second largest market. DLF is the country’s largest realty firm. Read the full article

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Residential housing sector likely to pick up in 2020: Report - real estate

After the office space rental market touched a new high in 2019, leasing in this sector is likely to witness a relative decline in 2020, while the residential sector that has seen a prolonged slowdown might see an uptick in sales in the second half of the year, stated the findings of a real estate report released recently by Colliers International India. It further stated that housing sales are likely to pick up in the second half of the year due to a low-interest regime, which has been enabled by the policy decisions of the government in December 2019. The report released by Colliers, a real estate consultancy, said that government’s decision to set up the Alternate Investment Fund to provide debt financing would help the housing sector to recover despite the presence of unsold inventory. The report also states that the Draft Model Tenancy Act could be a game-changer for the housing sector in the country as it would lay down the framework for a well-regulated rental housing market. “The draft Model Tenancy Act, 2019, which proposes to create a legal framework to bring harmony to the landlord-tenant relationship has the potential to unleash build, lease and operate properties in India, wherein properties are built for rent, not for sale,” said Sankey Prasad, CMD, Colliers India. City-based analysts also said that they expected the housing sales to pick up this year particularly due to end-user demand. They, however, said that banks will have to become more liberal in disbursing loans to both consumers as well as to developers for finishing projects. “The office space market and residential market operate in tandem. If the former is doing good, there is every possibility that it will boost the latter,” said Vinod Behl, a city-based analyst. The report also states that within the housing sector, greater investor interest would be witnessed in distressed assets, especially at the last-mile funding stage (i.e. projects that have been stalled nearing completion stage), as some developers struggle with cash flow. Developers in the city also said that a number of distressed project proposals are coming their way but there is a need on the part of the government to clarify the modalities to execute such projects. “A number of these projects are viable and can be delivered. However, authorities will have to make it clear about the retrospective impact of the penalties and obligations, such as fees of the project,” said Praveen Jain, vice chairman, National Real Estate Development Council (NAREDCO). Apart from predicting a bounceback from housing, the report also states that occupiers will focus on optimising the space and mix flexible and core model to use it in line for their business needs. The year would also see the consolidation of the flexible workspace segment as larger operators with financial heft will acquire smaller companies, the report added. Read the full article

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Public notice sets January 30 deadline for DSK property claims - real estate

Three days after a Pune court directed that a response be sought from those with claims or interests in various properties of jailed Pune developer DS Kulkarni, a public notification was published in the local newspapers on Thursday.In the public notice, those with claims and interests have been asked to be present in person or through an advocate by January 30. “Failure to which, next action will be initiated by court,” said the notification issued on the instruction of special Judge Jayant Raje.On January 20, special judge Jayant Raje, directed that a public notice be issued inviting objections and claims over the impending confirmation of attachment of 463 movable and immovable properties belonging to jailed developer DS Kulkarni, who is in the jail since more than a year along with his wife and son in an alleged multi-crore economic fraud by the DSK group. Read the full article