360 degrees Real Estate Services: June 2017

REITs in India – Opportunity Awaits

4:54 PM

REITs in India – Opportunity Awaits

Considering the capital-intensive nature of the commercial real estate sector as an investment avenue and also the limited investment opportunities with regards to high-grade office assets, REITs (Real estate investments funds) will be a big boon for the Indian real estate industry.

In simple terms, a REIT is an investment tool that owns and operates real estate assets and even allows individual investors to invest in and earn income through partial/equity level ownership of commercial real estate without actually having to buy those assets.It is modelled after mutual funds and provides its investors with all types of income streams, as well as the benefits of long-term capital appreciation. It also trades on major stock exchanges and provides investors with a highly liquid stake in real assets typically offering high yields.

Over the last decade, globally, REITs have developed into a mature market force, providing easy access to high-quality assets along with stable return on investments.

To illustrate – as of 2016, there were over 500 REITs operating across various countries, with total market capitalization of more than USD 900 billion.

Taking a closer look at REITs globally:

USA: The US Congress created the Real Estate Investment Trust (US-REIT) in 1960 to make large-scale, income-producing real estate investments accessible to smaller investors. Since then, US-REIT has dominated the market, and has a market capitalization which grew from USD 1.4943 billion in 1971 to USD 1 trillion by 2016.

Singapore: Since the launch of the first Singapore REIT in 2002, the REIT sector has become one of the biggest success stories of the Singapore Stock Exchange (SGX). Singapore REITs have since grown into a USD 53 billion market. Currently, the total ‘REITable’ stock available in Singapore’s CBD is 2.687million sq m.

Australia: The first REIT in Australia was the General Property Trust – a listed property trust started in 1971. A-REITs are the largest REIT market in Asia with a total market capitalization of almost €72 billion, accounting for 9.36% of the global REIT market capitalization. The Sydney CBD market has 3.060 million sq. m. of REITable stock.

Given the currently sluggish demand for residential real estate in India, the office sector provides some relief for real estate developers, given the declining vacancy levels and improving rents.

With declining vacancies, superior quality buildings in CBDs, SBDs and PBDs are likely to see maximum REITable assets.

Close to 283 million sq ft of office space in India is REITable. Currently, there are 901 REIT-worthy properties in India:

There is no doubt that REITs will provide access to highly lucrative assets, such as large-scale commercial properties and high-quality retail assets, that may be otherwise out of reach for individual investors.

Once the first REIT listings go live in India, we will definitely see significantly increased institutional and retail investor participation in this market.

- by Ramesh Nair – CEO & Country Head, JLL India

Source : JLL India

Property Developers

Small developers seek to partner with large firms to revive stalled projects: RERA Impact

1:59 PM

Bandra Kurla Complex

Bandra Kurla Complex Is The World's 20th Costliest Office Market; Delhi's Connaught Place Stands 9th

2:10 PM

Bandra Kurla Complex is the World's 20th Costliest Office Market; Delhi's Connaught Place stands 9th

The nation's financial capital continues to slip on office rentals as Connaught Place in the heart of the national capital continues to remain the most expensive markets in the country and the 9th costliest in the world, says a report.

According to the bi-annual global prime office occupancy costs survey by realty consultant CBRE Group, New Delhi's central business district of Connaught Place is the 9th most expensive office market in the world with an occupancy cost of USD 153.89 per sq ft per annum.

This makes Connaught Place costlier than Dubai,downtown Boston and Shanghai.

As against this Mumbai's Bandra Kurla Complex (BKC) is ranked 20th while the CBD of Nariman Point is ranked 33 on the list of the top 50 most expensive office markets around the world, says the CBRE report.

CBRE India & Southeast Asia chairman Anshuman Magazine said "despite Connaught Place having limited supply of prime office space, its location in the heart of the national Capital, coupled with great infrastructure and connectivity to other parts of the city, makes it to be an ideal location for any business to be in."

With the commercial real estate segment continuing todo well in the country, prime locations across the country including Connaught Place and BKC and Nariman Point in Mumbai continue to witness demand for prime office space from occupiers, he noted.

According to the report, Central in Hong Kong and West End in London remain the two most expensive markets in the world, while the top 10 list remains largely consistent.

Central in Hong Kong is the world's highest-priced office market with an overall occupancy cost of USD 302.51 per sq ft per annum and with seven of the most expensive cities,Asia continues to dominate the list of the world's most expensive office locations, according to the survey.

Hong Kong (West Kowloon) (USD 190.02 per sq ft) and Beijing (CBD) (USD 183.10 per sq ft) also feature among the top five most expensive markets this year.

Global prime office occupancy costs, which reflect rentals plus local taxes and service charges for the highest quality, prime office properties, rose 1.9 percent year-on-year which is lower than the growth rate in Q1 of 2016 (2.2 percent). On the other hand, occupancy costs in the Americas rose by 3.6 percent.

Of the top 50 most expensive markets, 18 were in Asia Pacific, 20 in Europe and the Middle East and Africa (EMEA),and 12 in the Americas.

- PTI

Source : Mumbai Mirror

MahaRERA

Balcony, veranda, terrace NOT part of carpet area : MahaRERA

12:00 AM

Lodha Developers

Lodha Developers eyes Rs 12000 crores from London housing projects

2:26 PM

Lodha Developers eyes 1.5 billion pounds from London housing projects

India's leading realty firm, Lodha Developers is expecting sales revenue of 1.5 billion pounds (over Rs 12,000 crore) in the next three years from two ongoing housing projects in the central parts of this city.

It had forayed into the realty market here in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London from the Canadian government for over GBP 300 million (Rs 3,100 crore)

India’s leading realty firm, Lodha Developers is expecting sales revenue of 1.5 billion pounds (over Rs 12,000 crore) in the next three years from two ongoing housing projects in the central parts of this city. The Mumbai-based firm is also looking to acquire more projects here to grow the business. It had forayed into the realty market here in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London from the Canadian government for over GBP 300 million (Rs 3,100 crore). The group acquired another site in prime Central London, New Court at 48 Carey Street for 90 million pounds in 2014. The company’s arm, Lodha UK launched its first project Lincoln Square last year and has so far achieved a sales booking of 170 million pounds.

The second project ‘No.1 Grosvenor Square’, located in the heart of Mayfair, has been launched this week. “Our first two developments in London have started off on a strong footing. Over last 9-10 months, we have had sales of over £170 million and our Lincoln Square development, next to Covent Garden and LSE, is the most successful project in Central London over this period,” Lodha group MD Abhishek Lodha said here. At the current prices, these two projects together will generate revenue of £1.5 billion (over Rs 12,000 crore), he said, adding that these would provide the group a potential to further grow business here.

Lodha exuded confidence that the company would deliver “high quality product” in the Central London, which he said is the most competitive and demanding market in the world. In the Grosvenor Square project, he said the company has done pre-sales at over £6,000 per sq ft (Rs 5 lakh per sq ft). The company also intends to take forward its learnings about quality and design from the London market to India business, he added. Last month, Lodha group’s UK arm raised 290 million pounds (Rs 2,400 crore) from investment company Cain Hoy to fund construction activities for its Lincoln Square development. Asked about further expansion in the London market, Lodha UK Director Gabriel York said the company is looking for new sites in the city for development and expects to acquire some properties in the next one next year.

While the Lincoln Square project has 221 housing units, including few penthouses being sold at a price range of 1 million pound to 13 million pounds, the housing project at Grosvenor Square will have 39 apartments and 5 duplexes with starting price of 7.5 million pound. Lodha UK is targeting to complete the two projects by 2019. The Lodha group is currently developing around 41 million sq ft area and it has 31 ongoing projects across London, Mumbai Metropolitan Region, Pune, Bengaluru and Hyderabad. It has a land bank of 350 million sq ft for future development. In the last fiscal, Lodha group’s sales bookings rose by 30 per cent to about Rs 8,500 crore driven by growth in the domestic market as well as London.

- PTI

Source : The Financial Express

Home Buying

Buying a Home that Works for Your Children

12:21 PM

Buying a Home that Works for Your Children

If we take a close look at how the average Indian family perceives home purchase, children and their needs are a massively important factor. It therefore makes sense to factor in the specific requirements of children while short-listing flats. But what exactly does this entail?

When it comes to children’s needs in a home, there are basically three levels to be looked at:

Safety
Convenience
Recreation

If any one of these is ignored – perhaps in favour of other attractive features that an apartment may have for the adults – the interests of the children in the family are compromised. Let us study these three levels in some detail, so that the features that families should look for in a home become clearer:

Safety

There is a lot more to children’s safety and security in a residential setting than burglar alarms – though those should definitely be considered. Even if a home is not a ‘smart home’ at the DNA level, incorporating security-focused electronic features such as burglar alarms and CCTV camera monitoring makes a lot of sense. Such features are pretty cost-effective these days.

However, children’s safety must essentially also involve mitigating or eliminating potentially hazardous situations within the home. For instance, child-proofing electrical outlets is important. To begin with, one should not consider buying a flat where the electrical wiring and fittings are old or inferior.

Here, buying a flat from a branded developer rather than an unknown but player can make a big difference, since branded developers ensure quality of their offerings at all levels, including ensuring that bathroom tiles, as well as tiles around the project’s swimming pool, are of the non-skid variety. They will also provide sufficient security at a project level.

Another reason to opt for a home by a branded developer is that one is assured of power back-up in the project. Getting trapped in an elevator is not the only risk to children that is mitigated with this all-important feature. Many accidents in a home happen during power-cuts as the inhabitants stumble around in the dark looking for alternative light sources.

Apart from the fact that power-cuts are also very scary for very young children, the thought of their kids suddenly engulfed in darkness while playing outside is a nightmare for parents.

Convenience

The first factor one must consider here is flat size – children require enough space within a home. While a 1 BHK flat is definitely cheaper, it cannot cater to the spatial requirements of growing children, and too small a flat also compromises everyone’s privacy. Privacy is one of the major requirements of a family that is buying a home for the long haul. Therefore, families with children should opt for a least two bedrooms in a flat.

The second factor is location. One should definitely look for the availability of good schools and hospitals with full-fledged emergency rooms in the vicinity. Likewise, the location needs to be properly enabled with public transport. One should also invest some time and effort to inquire about the crime rate in the area. A mere 15 minutes spent on Internet searches for news about the area in question can go a long way in establishing whether it is relative safe or potentially a source of concern about the safety of one’s children.

Recreation

The third factor is the children-friendly features that the developer has provided within the project. Sufficiently spacious common areas for children to run and play around in are a must-have, as are a well-equipped playground, swimming pool and clubhouse. Children – as well as their parents – need sufficient options for recreation beyond the four walls of their home, but within the safe confines of the project’s compound. The clubhouse should have enough means for children to recreate outside the home, and must be adequately attended by dedicated staff.

The above check-list is definitely not exhaustive, but these are the basic features a family should look for while selecting a home to buy. Purchasing a home which works well for children is one of the most important long-term decisions a family can take. If a home proves to be inadequate for the needs of children at some point, there will be no option but to start looking for one that is more suited. This can be a costly and time-consuming undertaking, which can be avoided with proper foresight while planning one’s first home purchase.

- by Kishor Pate
(CMD – Amit Enterprises Housing Ltd.)

Source : Accomodation Times

Luxe Homes

Is architecture becoming the new USP for luxe homes?

8:30 AM

Frills attached: Is architecture becoming the new USP for luxe homes?

Sky villas or terraces, ocean and podium view flats offer exclusivity and brand value, but don’t get carried away, warn experts

Luxury projects are increasingly using outdoor and rooftop spaces. Seen here is Runwal Elegante in Lokhandwala, with a sky bridge on the 37th level.

They say space is the final frontier, and in a sense that is true for the real-estate market. In a crowded segment where USPs are hard to fashion, architecture — the planning and designing of space is becoming an important differentiator.

This is true even in Mumbai, where the lack of space has traditionally left little room for architectural flourishes.

Given the city’s space constraints, a lot of the frills have to do with going vertical. So we have sky bridges and sky villas; buildings curved so that each individual balcony serves as an entirely private ocean-view deck; there are also sky gardens and spas; and elevators that open directly into your flat.

“Forts and palaces may be a thing of the past, but recreating the same ambience in a modern city apartment with modern amenities and ensuring that functionality and design blend seamlessly is how developers are seeking to set themselves apart,” says Ashwinder Raj Singh, CEO of residential services at JLL India. “Italian marble alone will not pass for luxury any longer; the way it is used makes all the difference. That is why architecture is becoming so important. There are even projects that will customise your shell home around a theme of your choice — Mughal or Roman, baroque or post-modern.”

DESIGN MATTERS

In Mumbai, if you have a sea view, you flaunt it. Omkar 1973 Worli offers bespoke sky villas spread over three towers, starting on the 16th floor. Each functions like an independent seafacing home, with its own elevator accessible without going through a common lobby.

Omkar 1973 offers plush terrace lounges and bespoke sky villas spread over three towers, each functioning as an independent sea-facing home with private elevators.

“The stress on privacy and space gives it a very exclusive feel, unlike any housing society,” says Amar Tendulkar, president of design at Omkar Realtors.

Each sky bungalow also comes with a ‘European-themed cigar room’ done in wood and leather tones. Other amenities available within the residential project include a spa.

Ajmera I-land, meanwhile, has been designed by Singapore-based architects Space Matrix, with a curved 40-storey structure that makes the most of its views. “The design is such that no flats or terrace decks face each other,” says Dhaval Ajmera, director of Ajmera Realty.

Runwal Elegante at Lokhandwala has a sky bridge, the first in Mumbai, 400 feet above sea level. There is also a sky bridge / sky garden, which connects the three towers at the 37th-storey level.

“It will remind you vividly of the landmark Marina Bay Sands in Singapore,” says Sandeep Runwal, director of Runwal Group. “Another unique element of these bespoke homes is that customers have the option of having their home interiors designed by European designers.”

At the Wadhwa Group’s W54 residential project in Matunga, designed by architect Hafeez Contractor, there are only two apartments per floor, angled so that the home owner can enjoy the sunrise and sunset.

“The 6th storey is the first habitable floor of W54, allowing maximum views to all residents,” says group director Girish Shah.

Businessman Prasoon Bhatt bought a flat in Omkar 1973 and admits that one of the reasons he picked the project is the sense of space created by its architecture. “I have a podium-view apartment that faces landscaped gardens by LDA Design, who did the Olympic Park for the 2012 London Olympics,” he says. “The design of the building is such that all flats also have a sea view.”

THE FLIP SIDE

Don’t get carried away. That’s the experts’ advice when it comes to architectural features. Two things to keep in mind — maintenance cost, and value for money.

“Luxury buyers attach great importance to factors such as exclusivity and brand value, but these also come at a premium — not just in terms of selling price but maintenance costs too,” says Gautam Saraf, managing director of Cushman & Wakefield India. So it is important that you take the overall premium into account while making a buying decision.

- by Bindu Gopal Rao

Source :- Hindustan Times

Goods & Services Tax

Government introducing GST awareness drive for public

2:27 PM

Government introducing GST awareness drive for public

The Central government has initiated its media ‘Blitzkrieg’ to make the common man aware of how the upcoming Goods and Services Tax (GST) will reduce prices of most goods.

In the advertisements, appearing in the leading daily newspapers, pictorial representations of items which are exempt from GST is springing out . The Central Board of Excise and Customs (CBEC) is representing the advertise to make people aware of how the GST is going to effect the rates of daily goods.

The GST Council, chaired by Finance Minister Arun Jaitley has already made decision on tax rates of significant commodities. The commodities have been devided in slabs of 5, 12, 18 and 28 percent, with the exception of gold which will attract 3 percent GST.

GST, which will colligate 16 different levies, is coming in effect from July 1.

The CBEC has given information that salt, milk, gur, egg, curd, unpacked food grain and paneer, fresh vegetables, unbranded atta, maida, besan, honey, besides education and health services have all been relieved from GST. These commodities will be nontaxable through GST.

Earlier, Revenue Secretary Hasmukh Adhia had admitted that the government is going to launch a massive awareness campaign to educate the public about GST ,so that they will not be fleeced by traders in name of the new tax.“Because we have taken care to ensure that the average tax incidence on commodities does not go up…there may be some traders who will try to tell the consumers that under the changed GST rates they will have to pay more. We have to educate them.” Hasmukh Adhia had said nearly one month back.

Items like tea, sugar, coffee beans, edible oil, packed paneer, milk powder, brooms, domestic LPG and kerosene have been put in the 5 percent bracket.“81 percent of the items to fall in/below 18 percent slab. Only 19 percent of the goods will attract GST above 18 percent,” the CBEC said.

The items listed in 12 % slab are butter, ghee, mobiles, cashew, agarbatti, umbrella, fruit juice and sausages. Hair oil, soaps, jams, soups, ice cream, capital goods and computers will attract a 18 percent levy. Those placed in the 28 percent slab are custard powder, shampoo, perfume, make up items, chewing gum, motorcycle, cement and consumer durables.

The government has already planned and declared that the gains of a reduced tax rate after GST should be benefited the consumers in the form of price reduction.

The GST Council has also planned to set up a committee collaborating central and state tax officers to react on the complaints of profiteering by industry post GST.

Source :- Accommodation Times

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REITs in India – Opportunity Awaits

Small developers seek to partner with large firms to revive stalled projects: RERA Impact

Bandra Kurla Complex Is The World's 20th Costliest Office Market; Delhi's Connaught Place Stands 9th

Balcony, veranda, terrace NOT part of carpet area : MahaRERA

Lodha Developers eyes Rs 12000 crores from London housing projects

Buying a Home that Works for Your Children

Is architecture becoming the new USP for luxe homes?

Government introducing GST awareness drive for public

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