Tuesday, 1 May 2018

Mumbai Development Plan 2034: All set to make Mumbai a world-class city

The much-awaited Development Plan (DP) 2034 by the Maharashtra government is finally here, paving the way for the space-starved city to have more land available to build homes and commercial spaces. The Mumbai DP 2034 has increased the FSI (Floor Space Index) which means developers can now build more on the given plot. More supply of homes coupled with Govt focus on infrastructure is going to be instrumental in changing the city’s skyline for a better tomorrow.

All you need to know about the DP Plan Mumbai 2034:

  • The new Mumbai DP 2034 offers promising FSIs for commercial and residential properties. For commercial, it is raised up to 5 & for residential properties, the revised FSI is 3. Earlier it was 1.33 for both residential and commercial developments. For suburbs, new FSI will be up to 2.5 and 5 for residential and commercial properties, respectively. The existing FSI for the two categories is 2 and 2.5, respectively. 
  • The Mumbai Development Plan for 2034 intends to utilise salt pan lands for affordable housing. According to the plan, out of the 3,355 hectares in no-development zone, BMC has earmarked 2,100 hectares as well as 330 hectares of salt pan land for affordable housing.  
  • A provision has been made to add 42 hectares of open space. The DP plan Mumbai has also designated 12,859 hectares to natural spaces, a new category where no new construction will be allowed.  
  • The Mumbai Development Plan is all set to create approx. 1 million affordable houses and 8 million jobs in the city. 
  • The new plan encourages the growth to create parks, theatres, playgrounds, theme gardens and museums- something that the city desperately needs. 
  • For the first time, Mumbai’s Development Plan has placed the focus equally on commercial real estate with double benefits– firstly decongesting existing CBD areas and secondly, extending the ‘walk to work’ aspect in newer locations.

Post independence, this is the first time wherein a serious effort has been put up for the holistic development of the city.

Thursday, 26 October 2017

Real Estate Industry Redefined

Real Estate Industry Redefined

The last two years have proven to be immensely eventful for the real estate industry of the country. So far the Government of India has enforced significant implementations like Demonetization, Benami Transaction Act, the Real Estate Regulations and Development Act (RERA), and Goods and Services Tax (GST).  These initiatives, when combined together, will magnify the growth of real estate sector in the long run.

Here are a few factors that consolidate towards redefining the real estate industry:

1. Investments of the future:
This ongoing transformation has given rise to investment inflow from both foreign and domestic institutional investors. As per syndicated reports, the Indian property market has received $3.15 billion from various investors in the first half of the current year. The expected launch of Real Estate Investment Trust (REIT) is supposed to act as a transparent process designed to generate funds from a lot of investors. REITs are predicted to act as a catalyst for increase in future real estate investments.

2. Infrastructure development :
India’s booming economy has attracted not only domestic but a manifold of foreign investors too. Since the Government of India liberalized the norms on Foreign Direct Investment (FDI), the construction sector has seen a massive growth in investments from around the world. This has doubled the funding in infrastructure development from ₹9,850 crore per annum. Also, the World Investment Report of 2016 claims an FDI investment of $ 5.7 billion in real estate.

3. Housing sector boom:
The Pradhan Mantri Awaas Yojana initiative by the Prime Minister raised its rural fund allocation from ₹15,000 crore to ₹23,000 crore, to ensure the completion of 10 million home projects by 2017-18. We are now looking at $1.3 trillion housing boom and with the timely implementation of the Goods and Services Tax (GST), there is uniformity in taxation on housing. Implementation if carried out well will ensure that various federal tax barriers are removed and a common market is created helping improve supply chain. To summarize, 60 million new houses and 2 million job opportunities are predicted by only 2018, thus boosting the nation’s overall GDP.

Given the future road map it is pertinent to say that the Indian real estate sector will only emerge stronger, healthier and is poised for sustained growth. These initiatives are stepping stones for the overall development which will redefine the real estate sector.

Sunday, 8 October 2017

The Blueprint to Success

“Success is about liking yourself, liking what you do and liking how you do it.” – Maya Angelou.

Here are a few habits which I have followed throughout my professional career and I believe they might help you too:

1. Organize Yourself -

Getting organized is one of the most underrated skills in any form of work. Due to my architectural background, I deem it necessary for things to have a particular structure. An organised structure in life lets you focus on the most important plans. You could start with something as basic as organising your weekly calendar, and see how it helps you organise your career.

2. Stay Connected -

Stay connected to your employees and always be approachable for a healthy functioning of the organisation. It is essential to delegate the day to day running of your organisation to your trusted employees. Focusing on the bigger things is necessary, but at the same time, while focusing on the bigger picture it is a prerequisite that you stay updated on the day to day functioning of your company. 

3. Gain Knowledge by Reading -

Reading is vital, but not just to keep you on track with regards to constant innovations, the new laws, and other recent developments in the field. Reading goes a long way in cultivating a commendable intellect. Advancement through learning is the most important habit required to achieve growth.

4. Do Not Limit Yourself  -

Most people are shackled by restrictive beliefs and self-imposed limitations. Growth can be limitless. But belief in your own ability and cultivating discipline in your work is what gets the job done. It is what helps to reach new milestones.

5.   Make Wise Decisions -

Success is all about making the right choices. You have to be confident in the decisions you take and ask all the right questions to avoid roadblocks to your success. With experience, it will become all about making the choice that will yield the best result.

In conclusion I would like to say that there is no substitute to hard work & perseverance. It’s important to work hard daily if you want to see these habits make a positive impact. Do not let the vast landscape of the future scare you. Only habitual and tireless efforts will propel you to the summit of success.

Thursday, 28 September 2017

Cities of Focus: Bengaluru

An interesting fact about Bengaluru: It is currently ranked among the 25 most high-tech cities in the entire world.

There are many other such records which the city boasts, credited to its unique approach towards development. It’s interesting to note how the city once specializing in the production of silk & cotton, machine tools and telephone accessories has now transformed into a booming IT hub. The glorious history of the city coupled with its futuristic approach has been the key drivers for us to undertake real estate developments here. The best reason for us to establish our developments in the city was its glorious past and its futuristic approach.

Let’s see why this city is our top pick for real estate developments:

●        Hub for IT companies 
Bengaluru is dubbed as the ‘Silicon Valley of India.’ The city has a GDP of $110 billion and contributes to more than 35% of India’s IT exports. Big multi-national corporations have their headquarters situated in Bengaluru. All these factors have transformed Bengaluru into a hub for IT companies across the world. This growth in the IT sector has given rise to a strong demand in the real estate.

●        World's Most Dynamic City –
Bengaluru has emerged as the most dynamic city in JLL’s fourth annual City Momentum Index (CMI) of cities around the world. The groundbreaking achievement was determined based on the city’s economy and commercial real estate market. The abilities to embrace technological change, absorb rapid population growth and strengthen global connectivity lays down the foundation of this dynamic city.

●        Bengaluru Metro –
Bengaluru is a densely populated city. The newly launched Phase-1 of Namma has given an indication of what to anticipate from the metro network. With Phase - 2 in construction, a total length of 72 kilometers will be added to the current metro lines. It will create a more interconnected mode of transport to reach every corner of the city making commuting within the city a completely hassle free experience.

●        Features of a Smart City –
The Smart Cities Mission by the government of India is an initiative aimed towards urban development. According to the plan, Rs. 1,700 crores will be spent to improve infrastructure in the city. The establishment of Bengaluru as a smart city will create a modern commercial network.

These are some of the reasons as to why Bengaluru is one of the best cities in India. We at House of Hiranandani are developing three projects in Bengaluru.

Thursday, 17 August 2017

Cities of Focus: Hyderabad

India is a country that is booming with development from every corner. The country has a total of 4000 cities & towns. However for us, choosing the next city for our real estate project wasn’t very difficult. Rooted in a deep ethnic heritage and captivating historical significance, we zeroed down on ‘Hyderabad’.

Hyderabad during its initial stages had been sparking signs of a global city. Nobody would have imagined the unprecedented growth & development this city was capable of achieving.

     An influx in the IT sector –Since 1990, Hyderabad had seen a number of foreign IT companies entering the city. At that point, there were over 1000 IT and ITeS companies that included major firms such as Google, Dell, Facebook and more. The city boasts of an employment growth rate of 10%. The IT industry has inculcated a high standard of living for the city which has resulted in an increase in world class real estate projects in the city.

     Hyderabad’s Infrastructure– One of the high points of Hyderabad’s infrastructure is its metro. The metro, which is already under construction, will have three phases to create unparalleled connectivity across the city. The metro is scheduled to begin operations by November 2018.Plans to decongest the city’s roadways by projects such as the Outer Ring Road are already underway. It’s a city that foresees the future and is already planning to upgrade the existing roads, adding skywalks and more.

     High Standard of Living– As per the Mercer Survey, Hyderabad is known to have the highest standards of living in India. The survey is based on factors such as crime rate, air pollution and improved options for international and English-speaking educational institutes.

     Emerging Startup Hub– Asa city that encourages enthusiastic entrepreneurs, Hyderabad is witnessing a support system to encourage startups. India’s biggest incubator for startups is in Hyderabad. On the overall the city is promising because of its stable environment and cooperation between the investors, startups and the government.

These are some of the reasons as to why Hyderabad is one of the fastest growing cities in India. It offers the perfect combination of a city immersed in history, and one that embraces development and modernization.

Friday, 28 July 2017

A Move Towards Sustainability

As per rankings of MoneySuperMarket, India ranks 75th globally in terms of human impact on environment per person. This ranking looks at the impact of human activities on the environment, biodiversity and other resources. More importantly, it also looks at the human use of sustainable and renewable sources of energy. This raises a strong concern as for a country of 1.34 billion people; the renewable energy that India is currently producing is only 15.2 %. Needless to say, producing renewable energy is a major need of the day. Relying on non-renewable sources of energy is not sustainable because these sources will not be replenished in our lifetime. Also, population growth and infrastructure development are only pushing for the increase-in-need of sustainable energy for the near future.

With vast lands and access to natural resources India has a huge potential to switch to sustainable energy. But what is sustainable energy? It is a form of energy that meets the demands of today without creating a danger of its depletion for the future generations.  This form of energy is found to be free of cost and does not harm the environment. Various renewable forms of energy are known to be sustainable forms of energy. Solar, wind, geothermal, hydropower and ocean energy come under this category. In 2016, India signed the Paris Climate Agreement and this move has brought a huge shift in India's attitude towards climate change. Our country has been developing sustainable forms of energy in order to control climate-change and remain self-sufficient.

Here are a few developments that highlight India's initiative to embrace sustainable forms of energy:
  • Cochin Airport became the first fully solar powered airport in the world.
  • The newly-built Kochi Metro will get 25% of its electricity from solar energy very soon.
  • Pune airport will run on fully powered solar energy by next year.
  • India made its 1st solar boat named 'Aditya' and this boat completed 150 days of voyage.
  • Indian railway is installing rooftop solar panels on 250 trains.
  • Indian railways also launched the first solar powered train from Safdarjung railway station in Delhi very recently.

We hope to see many more such developments in the future to ensure sustainability in India's energy generation. 

Monday, 17 July 2017

GST & Real Estate

In the recent past, India has seen extensive developments with respect to the laws and policies that are being implemented. The first was Demonetization, followed by the RERA Act and the most recent being the implementation of Good & Services Tax Act (GST Act). GST Act has been implemented with the intent to remove cascading effect of taxes & to bring in more people under the tax net, however, many have been struggling to understand what it exactly does and how it would affect people.

With respect to real estate, it is unlikely that GST will have any impact on property prices.The current rate of 12 per cent on under-construction projects might marginally bring down prices in the affordable segment owing to input tax credits, but it is unlikely that similar impact will be felt in mid-priced or premium developments. Developers may get some benefits fo projects that are in the nascent stages, but will have to bear the tax burden of ready-to-move in projects, since they are kept out of GST ambit. 

One aspect that needs government’s immediate attention is the stamp duty charges. Since, they continue to remain along with GST and vary from state-to-state. The stamp duty rate averages between 5% - 7%. Abolishment of this would bring down the final costs of apartments.          

Broadly speaking, the act will be a game changer for the industry. Its comprehensive approach and uniform tax structure will not only ensure more transparency in the economy but also would be helpful in boosting the investor confidence.