Top Real Estate developments in 2018

This year has been a trail-blazing year for Indian real estate after a landmark 2017 which saw major legislation like RERA implemented. In post-RERA 2018, the realty sector has moved forward with more reforms and complementary market changes which have boosted performance for the better. Let’s take a look at some of these developments during 2018:

Unchanged Repo Rate

By leaving the repo rate unchanged just before the festive season in October this year, the RBI provided a much needed boost to the real estate sector. An unchanged repo rate means banks’ lending rates continue to remain attractive and thus boost buyer sentiments. The festive season is a time when many Indians plan to invest in homes by also taking advantage of numerous festive home buying offers.

Depreciating Rupee

The continued rise of the American dollar this year has meant that most other currencies have depreciated in value against it. For an emerging country like India this has meant a steep depreciation of the Rupee to it’s all time low of 74 against the dollar. However, this also makes investment in the country’s real estate sector more attractive to NRIs, thus boosting buying sentiments among this section of investors.

Title Insurance

RERA has made it mandatory for developers to take title insurance which protects investment in real estate and provides coverage against financial loss arising in case of title disputes. This is a common form of indemnity available in Britain, Canada, Australia and Europe which promotes transparency.

Increased Carpet area of PMAY- U Homes

This year the government increased the carpet area of residential units eligible for interest subsidy under the government’s Credit Linked Subsidy Scheme (CLSS) for the middle-income group (MIG) under PMAY (Urban). This brings more homes under the scheme and increases the choice available to homebuyers who would previously decide against buying a home under the scheme due to the limitation in sizes. This is a boost to residential sales and investment in affordable housing.

Mumbai DP 2034

The Mumbai Development Plan 2034 envisages a revamped Mumbai with a big boost to real estate. It proposes increased FSI which will provide more commercial and residential units in the city. The plan also proposes to unlock 3,734 hectares of no development zones (NDZ) which will be used for development of affordable housing and increased social amenities such as parks, playgrounds and gardens. The city is expected to benefit from more green zones, homes and jobs.

Plotted Developments

2018 emerged as the year where more buyers preferred to purchase plots due to their lower prices and relative affordability. It offers them the freedom to buy a plot and build a home as per their needs. This trend has prompted a number of organized developers to also launch various plotted developments across Bangalore and Chennai realty markets. A number of plotted developments come with numerous amenities such as clubhouses, paved roads, water and electricity connections, and drainage systems making them more attractive.

Ready-to-move-in homes

Another trend this year has been the sale of ready-to-move-in homes. Ready or completed projects come with the benefits of having all the amenities and supporting infrastructure in place as opposed to investing in an under-construction property and waiting for completion. As a result more homebuyers preferred to purchase ready-to-move-in homes across cities and markets.

Lower Circle rates

Budget 2018 offered relief to buyers and sellers of property by proposing a tax relief up to 5% of the Circle rate. By allowing the 5% variation between transaction value and circle rates for computation of capital gains the secondary real estate market has received a boost.

Why Real Estate is a Highly Flexible and Profitable Investment?

When it comes to investing with an eye on earning a sizeable return in the future - Gold, Equities and Real Estate are generally considered more profitable than others. However, each comes with their own unique set of characteristics, risk factors and advantages. Gold is a stable investment but yields lower returns compared to equities and real estate. Equities, on the other hand, provide higher returns in intermittent periods but are sometimes highly volatile and involve a high amount of risk.

As the old adage goes, “The best investment on earth is earth”. Real estate investment is comparatively safe, and comes with assured returns as long as investors plan their investment astutely. This means carefully considering locational trends, upcoming developments, and establishment of hubs that generate employment and then make an appropriate investment. Real estate as an investment takes time to mature. Real estate can generate a regular rental income and can also generate long term returns, as their value matures with time.

In the year 2011, when the stock market tanked by almost 25%, real estate grew at a steady rate, and prices rose in 9 out of 15 metropolitan cities in India showing how it’s a better investment than equities and even gold. As long as the Indian economy continues to grow, real estate would continue to be valued; therefore property prices are likely to rise. We look at the various ways investors can benefit from investing in the real estate market -

• Attractive Tax Benefits

Tax benefits are available for investments made in real estate. Section 80EE covers tax rebate on the interest of home loan for ‘first time buyers’. It also provides an additional deduction of Rs. 50,000 over and above the tax deduction of Rs. 2 lakh under Section 24 and Rs. 1.5 lakh under Section 80C

• Better Sense of Control

Owning real estate property equips one with a greater sense of control over the performance of the real estate asset, to an extent. Investors can decide on furnishing or renovating the property in order to make it an attractive offering if the investor wishes to sell, lease or rent out the property.

• Convenience of Rental Income

This is one of the safest investments which can generate regular income that gives lifelong returns while simultaneously enhancing the value of the property over time. However, it is important to have a property with the right attributes to be able to avail the desired benefits.

• Diversified Portfolio

An astute investor is aware of the need for maintaining a diverse portfolio in order to minimise the risks. Real estate, being a palpable asset, works as a trust-establishing factor in the portfolio thus allowing an investor to attract risk-averse investors

• Economic Growth Enhances Value

Development of any kind of infrastructure, setting up of office or commercial hubs, upgrades in social infrastructure like hospitals, malls, colleges, or public infrastructures like highway, airport, railway or bus stations pushes the value of properties. If an investment is located in a suburb, better connectivity and accessibility will result in profitable returns.

• Flexibility

Investments in real estate can be made according to one’s need or budget. Options like building a retirement home for long-term capital growth, buying a home in a sought-after location for continuous flow of income are solutions investors could look at. Also, one can always invest in buying an old home and refurbishing the property as per one's requirements which would greatly boost the value of the property.

• Get Attractive Finance Options

Investment in real estate is often acquired through attractive financial schemes. As interest charged on housing loans in India is much lesser than other loans, developers offer investors a host of interesting and feasible financial schemes such as 80:20, 25:75, 10:90, etc. which reduce the financial burden.

• Highly Valued Real Estate Fund

There are some managed funds which invest in multiple real estate projects across geographies. Therefore, risk can be diversified, instead of investing in a single project. However, an investor will have to evaluate and select funds as the ticket size is large and includes a larger holding period.

In Conclusion

India's real estate market has been on the rise since the last couple of years. The real estate reforms have greatly increased customer’s trust in developers and have driven sales. There has been a significant rise in the sale of inventories across major metropolises in the country. This is going to increase considerably with time, as more people are in need of housing in the country. We, at House of Hiranandani have built a robust and a diverse portfolio spread across residential, commercial, retail, townships, SEZs and offer a wide variety of options for investors looking to invest in high growth corridors of Bangalore and Chennai. 

For a quick comparison between Real Estate, Gold & Equity as an investment options, head on to our latest newsletter – Long-Standing Realty. 

A Checklist for Investing in the Real Estate Sector

The real estate sector has recently seen better performances in recent times, not only in terms of sales but also in terms of regaining customers’ trust. Just as with any other investment, investing in real estate also requires the investor to do their homework, exhaustive research and background check. This pertains to the location of the property, its surrounding, the general history of the location and its future prospects as well as the background of the company developing the property and documentation relating to the project.

Here’s a ready reckoner or checklist to follow while considering your next investment in property:

Background of Developer

It is imperative to check the track record of the developer - the number of properties developed, locations, execution, and timeliness of delivery of the project. One can also talk to other customers who have invested in the respective developer’s projects and get to know their experience.

Project Location

Location is everything in real estate. A good, thriving location ensures a steady growth in value of the property as well as rental and resale values. A number of sources provide ready data and trends about various locations vis-a-vis their price graphs, rental and resale values, and demand. Studying such data is useful in making a real estate investment decision.

Location’s Growth Prospects

Some areas are in the early stages of their growth with increasing infrastructure and commercial development, while others have seen better days. Where are you investing? Is your location of choice witnessing a phase of growth or decline? Are there plans for upcoming infrastructure or new business districts? For example, the Bangalore International Airport in Devanahalli has boosted the growth prospects of this suburb; more commercial and residential projects have been planned here making it a prospective location.

Location’s Social and Civic Amenities

Proximity of schools, hospitals, markets, business centres and multi-modal transport determine a location’s attractiveness. Check your prospective location for all these basic and necessary amenities which will ascertain how comfortable your life in this place will be. It will also determine the overall value of your investment.

Cost Benefit of Financial Schemes

Many developers enhance the attractiveness of a property by offering potential customers numerous financial schemes which aim to reduce the financial burden of purchase. Evaluate each one to understand its suitability to your individual financial needs. Some may seem more attractive but may be less suitable for you. Understand these differences so you can choose the best scheme suited to you and ensure the most value-based investment.

Read the Fine Print

All project offerings have many details encapsulated in legal language which many of us are not familiar or comfortable with. Some of these include the declaration by the promoters of the project, the stated completion time of the project and the legality of the land holding. Check the documents for these factors and ensure correctness and validity of all declarations.

RERA Registration

RERA has been a game changer in real estate ever since its implementation was enforced on developers. It has empowered customers and ensured their rights. Check the RERA registration of any project you are considering investing in and note the registration number. Projects with RERA certification are considered more attractive to customers as the developer is required to file numerous documents with the respective state RERA authority before receiving the RERA number.

Confirm Little Details

Recently there has been a spate of cases where homebuyers and investors were still waiting to receive possession from the developer. In light of such cases, an investor must be prudent about checking that the affidavit they receive from the developer carries a possession date and the rate of interest you will receive in case of a default by the developer.

The more prudent and astute one is while investing in real estate the better the results. Make the right choices, be patient, invest for long term, and watch as your real estate investment creates value and wealth for you. Read more about long-term investment avenues, their past trends, potential gains and the promising future of realty investment in our latest newsletter - Long-Standing Realty.

Chatbots, AI and Real Estate

Chatbot: “Good Morning! How may I help you?”

Buyer: “Hi! What apartments are available in your new project in Hebbal?”

Chatbot: “We have 2 BHK and 3 BHK apartments.”

Buyer: “What is the price for both?”

Chatbot: “2 BHK starts at Rs. 75 lakhs and 3 BHK at Rs. 90 lakhs. Would you like to see a sample apartment?”

Buyer: “Yes. Can that be arranged?”

Chatbot: “Sure. When would you like to visit?”

Buyer: “Next saturday would be good.”

Chatbot: “Sure. Please type your mobile number and email address and we will follow up with details for the site visit.”

This hypothetical conversation between a prospective homebuyer and a chatbot provides insight into the ease with which customers can explore home buying options without human intervention. Chatbots or intelligent virtual assistants present an opportunity for customers to gather important information and even set up initial project site visits. All this can be done without calling a contact centre, standing in long queues, being put on hold while retrieving important information or call drops. In essence chatbots offer a seamless interaction to the customer at any and all hours of the day, week or year.

Technology’s unbridled advances continue to offer previously unexplored avenues for better customer interactions, data gathering and analysis, improved customer services and much more. Most of us are already familiar with intelligent virtual assistants such as Siri and Alexa on our mobile devices. Chatbots powered by artificial intelligence and machine learning algorithms have the capacity to engage with customers and learn with every interaction, thus enhancing the customer experience.

For customers, chatting with an AI-powered entity may initially seem underwhelming as opposed to speaking with a live customer service executive. However, some of the advantages include:

1)    24x7 access to information via chatbots

2)    Quick and polite responses to questions

3)    Responses to routine queries can be efficiently received

4)    Relevant responses can be expected since the chatbots are powered by algorithms which are based on specific built-in keywords

5)    Chatbots are unaffected by fatigue or irritation from having to provide responses to repeated queries. As a result one receives unwavering quality of responses.

As we make advances in machine learning and artificial intelligence the experience of interacting with chatbots or virtual assistants will improve further.

There are advantages for real estate companies too in adopting such technologies. Data collected from the interactions of customer with chatbots can be processed, analysed and summarised for future use in understanding customer needs better.

Many companies and large businesses are already leaps ahead in implementing this technology in some form or the other. With Indian real estate sector in the post-RERA era it is perhaps the best time for realty companies to also adopt technologies such as chatbots, artificial intelligence and machine learning algorithms. At the end of the home buying spectrum we already have smart homes with IoT powered household devices which residents can manage from their smartphones. Thus, it makes sense to power the first step of home buying - information gathering - through intelligent virtual assistants or chatbots.

At House of Hiranandani, we are already in the process of using technology in a big way so as to improve customer’s experience. Technology is an empowering force and we are empowering our customers.

6 Neo-Classical Influences in Modern Indian Architecture

Architecture and culture have been intertwined since the beginning of human existence. In fact, architecture can be considered as the cultural expression of the people of its time. It is the reflection of the challenges faced by our forefathers and their pioneering and thoughtful ways of getting around them with intelligent design. Those solutions are the backbone of modern day architecture. They speak of who existed, their influences and act as anchors of our past.

Indian architecture is rooted in its varied cultures, history, traditions and religions. It is as old as the history of civilization. The earliest remains of recognizable building dates back to the Indus Valley civilisation. Moreover, India’s architecture is an amalgamation of the various influences that stemmed from its global discourse with other countries of the world throughout its millennia-old past - the French, Portuguese, Mughals and Britishers among many others.

Here we take a look at the various neo-classical architectural styles that were inducted into Indian architecture over the centuries. These forms have evolved with time in terms of its aesthetics and functionality but still bear the signature of its influencers.

Balcony

Balcony is derived from an old Italian word ‘balcone’ meaning scaffold. It is a platform or external extension of a floor enclosed up to a certain height by a wall, balustrade or railings. They are generally supported by columns or console brackets. The balcony serves to increase the living space of a house and also ensures adequate amount of sunshine and greater ventilation in the house.

Baluster or Balustrade

A baluster also known as spindle or stair stick is a moulded shaft square or lathe turned form, cut from a square or rectangular plank. It is made of wood, stone or sometimes metal. Multiple balusters are known as balustrades. Balustrades stand on a unified footing and its function is to support the coping of a parapet of a staircase, handrail, balcony or terrace. Throughout history, balustrades can be seen in the architectural creations of a wide variety of cultures like the French - ‘balustre’, Italian - ‘balaustro’, Latin - ‘balaustium’ and Greek - ‘balaustion’.

Canopy

A canopy is an overhead roof or structure over which a fabric or metal covering is attached. Its main function is to provide shade or shelter from external weather conditions, but they can also be constructed for decorative purposes. Modern day canopies may be independent of other structures or may project out from a building, typically providing shelter at an entrance.

Pier

A pier in architecture is a support for a structure or superstructure such as an arch. It acts as a vertical load bearer thereby minimising load on the structure. They are mainly made of concrete. Example of piers can be seen in multiple monuments across India like the India Gate, Gateway of India.

Grillwork

Grillwork or simply grill comes from the Old French word greille. It is a decorative grating of metal, wood or stone or other materials used as screen, divider, barrier, or as a purely decorative element. In Indian homes, grillwork is predominantly featured in windows, verandahs, balconies and main gates.

Pediment

A pediment is an architectural element consisting of a gable of triangular shape, placed above the horizontal structure, typically supported by columns. The pediment is a widely present feature in the architecture of classical Greek temples as well as Renaissance, and Neoclassical architecture.

Architecture is an expression of style and culture. At House of Hiranandani, we have cultivated a unique style of architecture which is expressed in all of our real estate developments. Architectural features such as balustrades, canopies and grillwork sit elegantly alongside contemporary Indian elements such as Mangalore tiles, as seen at our Devanahalli residential project. Piers are a notable feature of the stately towers of our project ‘City by the Sea’ in Egattur. House of Hiranandani celebrates architecture in every project we design and develop, ensuring stylish yet comfortable homes with a signature design.

OMR - Why It's One of Chennai's Preferred Residential Destination

There are few stretches of roadways as iconic, scenic and steeped in culture as Old Mahabalipuram Road in Chennai popularly referred to as OMR. This 20 km long highway stretches from Madhya Kailash Temple on Sardar Patel Road in South-East Chennai right up to Mahabalipuram in the south where it connects with the equally famous East Coast Road (ECR). OMR, also known as the Rajiv Gandhi IT Expressway, has witnessed huge growth and development in the last decade as it gained a reputation for becoming the IT Corridor of Chennai. Life in OMR has upgraded in a big way and it has become the residential destination of choice for both - families, and developers looking to meet this rising demand. Here’s why:

Connectivity

Ease of travel is a major USP of any good residential area and OMR boasts of excellent infrastructure which boosts connectivity. This includes the entire stretch of OMR with its flyovers and dedicated MRTS routes and direct connectivity to the Chennai airport as well. East Coast Road and the GST Road further enhance connectivity to other suburbs of Chennai such as Thiruvanmiyur, Palavakkam, and Neelankarai. Other arterial routes such as Velachery-Tambaram Main Road and Kelambakkam-Vandalur Road provide a good road network. Proposed infrastructure such as a 17.7 km elevated road from Siruseri to Taramani, alongside the upcoming Metro line on OMR will be a game changer for residents and businesses along the OMR.

Employment Hub

The IT and ITeS industry is one of the highest employers in India. OMR is home to one of the biggest agglomerations of IT and ITeS businesses such as TCS, Cognizant, Syntel, Mahindra, Wipro, Infosys, Hexaware and more. Most of these companies are set up in large IT Parks such as SP Infocity, RMZ Millenia, Ascendas, SIPCOT, ELCOT SEZ and TIDEL among others. The presence of major companies such as these means numerous employment opportunities and further growth of the city’s ecosystem.

Well-Developed Social Infrastructure

The commercial and residential growth of OMR in the last few years has meant an upgrade in the civic amenities and infrastructure as well. A number of good education institutions and hospitals serve residents here. IIT-Madras, Hindustan University, Sathyabama University, St. Joseph’s Institute of Technology are some well-known higher education institutions, and among schools there’s Gateway International School, Hiranandani Upscale School and Ramana Vidyalaya among others. Apollo Hospital, Global Hospital and Chettinad Hospital are among those that provide excellent medical care and services.

Gateway to Adventure

Located close to the coastline means residents of OMR have an easy access to the many popular beaches. Besides the many coastal picnic spots and resorts there are water sports such as scuba diving and surfing to indulge in. Other easily accessible attractions in OMR are MGM Dizee World, VGP Theme Park, artisans’ villages like Dakshinchitra and the Cholamandalam Artists’ Village. The drive along OMR is also scenic and pleasant as one passes long stretches of water bodies such as the Great Salt Lake, Sholinganallur Lake as well as Guindy National Park, and Pallikaranai Marshland which is well-known among bird watchers. For those who prefer indoor entertainment, there are several malls and multiplexes as well.

At House of Hiranandani, we understand the value of living close to work and amidst nature. Our City by the Sea project in Egattur is a sprawling 120 acre residential project with amenities such as a school, spa, salon and crèche. Choose from among 2, 3, 4 and 5 BHK spacious and luxuriously designed apartments across some of the tallest towers in OMR. While the project is located right opposite SIPCOT Park, it also has easy access to many other IT Parks and most social infrastructure. The project is surrounded by lush greenery so residents can enjoy clean air, and picturesque views of the nearby lake.

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.

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.

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.

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.

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.

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. 

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.

Infrastructure Highlights: India’s March Towards The Future

  

Infrastructure is a key indicator of a nation's development. In the current scenario, India has been seeing a sustained infrastructure development. The expenditure on infrastructure rose by 10%, its total worth being Rs. 3,96,135crore. The sector has seen the launch of initiatives such as 'Housing For All' & 'Smart Cities' with a view to fast-track India’s progress. Indian urban centres are also seeing tremendous infrastructural investment and here are 5 significant initiatives that are likely to have a major impact in the not so distant future:

Bangalore just launched its 1st Metro phase

Bangalore's metro has expanded commute options to ease pressure on its roadways. The city very recently launched metro services; it connects JP Nagar, all the way till Nagasandra. The initiative is under the Smart Cities mission with a budget of ₹ 107 crore. The length of this phase is 42 kilometres.

Chennai's Satellite Bus Terminal

Chennai is developing better ways of commuting for its citizens, one of the projects being its satellite bus terminal located in Madhavaram. This project will cover 8 acres of land and will have capacity of handling 200 buses per day, thus improving connectivity and easing traffic.

Hyderabad to get its metro

The city of Hyderabad already ranks among the top Indian cities with a high standard of living (Mercer’s Quality of Living Rankings for 2017). Currently, this city is working towards building its own metro system. The projected length of this project is 72 kms, passing across 3 corridors. This project will set up 64 metro stations out of which 32 stations will have buildings or parking spaces.

Trans Harbour link in Mumbai by 2019

Known to be India's longest sea bridge, this link will cover a length of 22.5 kilometres. It would bind Mumbai and Navi Mumbai through roadways. The areas it would connect are Sewri, South Mumbai and Thane Creek, north of Elephanta Island. Also, it will provide access to the proposed Navi Mumbai International airport in the future.

Mumbai's Costal Road

Mumbai city is looking forward to decongest its traffic by building a 30km long costal road. This project will connect Mumbai's iconic Marine Drive, all the way till Kandivali. The total investmentfor this project is worth Rs. 12,000 crores. The project aims to bind South Mumbai to the Western suburbs and ease the road & rail commuting pressure in the Western line.

The infrastructure developments that are taking place, spell good news for India’s future. All corridors of transport that we construct will eventually raise values of real estate properties. We at House Of Hiranandani have great offering of apartments in Bangalore, Chennai & Hyderabad that ensure great connectivity and hassle-free commute.

Contemporary Living – Keeping It Minimal

Today’s modern living combines practical design and living philosophies. Minimalism – which embraces the idea that ‘Less is More.’ It is an art of spacing along with a design of sophistication.

Let’s look at these interesting lifestyle and design choices in modern living:

Embracing Minimalism

Minimalism is a design philosophy built around the principle of clutter-free living. Countries like Japan are at the forefront of the minimalist movement when it comes to home design. Ridding oneself of the excess elements in your home helps create a Zen like atmosphere in your living space.

A home that is clutter-free gives rise to a free and unencumbered mind. In the world of design, there is a school of thought known as ‘Reductivism.’ It encourages empty spaces while designing homes. Also, minimalism follows the concept of ‘Less is More.’ This doesn’t necessarily mean that such homes would look ordinary. In fact, on the contrary, there are many unique ways of embracing the core values of minimalism while expressing your own personality in your home.

Here are some of the primary tenets of Minimalism:

1)      It is recommended to use fewer color combinations as it balances out a room’s décor scheme. Too many colorful elements could create confusion in a person’s mind.  Monochromatic hues set a great example for designing homes as they help patterns to ‘pop’ or stand out.

2)      Apart from the color aspect, adding a mixture of textures could give your living space that stylish look. A stone washed wall, a table with a teakwood finish or a woven table cloth, all (or one) can form a focal point in a room. If you are looking for specific materials, wood, glass, ceramic and fabric should be given focus to while designing your home.

3)      The shapes of your furniture also have a major impact on the overall look of a room. Furniture like a sofa or table could set the personality for a room. A sofa/table could have round or sharper ends, be circular or square and more. Classic, traditional or urban are few of the different décor styles you could choose from for your home.

4)      When choosing fabric and linen to soften a space, the first rule is – keep it simple. It’s better to avoid a carpet with too much design on it and instead opt for something basic. This way, fabrics serve as design accents rather than the focal points in your décor scheme. For example, in a bedroom, a solid colored bed sheet and contrasting pillows could make for a classy combination.

5)      We recommend making the most of available natural light. Remember, natural light is something the human eye is used to, it would brighten up your space in the most natural way possible. Lighting enhances your design but the real skill lies in knowing which parts of a room to focus light on and which parts should be left in shadow. Find lights of the appropriate shape and size to achieve the look you want. They would highlight particular aspects of the home and give it a specific look.

We hope you’ve been inspired by the minimalist philosophy to experiment with it in your own home (and life). As contradictory as it may seem, there are many different ways of applying the minimalist aesthetic to your home and they are definitely worth exploring. We at House of Hiranandani wish you a well organised and clutter-free life.  

Chennai: The Next Real Estate Investment Hub

Chennai’s advancement over the past decade as an industrial hub with the rise of various manufacturing industries has led to the development of a lively real estate market in the city. As per the Mercer Survey 2017 Quality of Living Index, which compares all major cities of India, the one city that has made improvement is Chennai. Once considered a less significant investment opportunity in India, Chennai has steadily emerged as a real estate hub to be reckoned with.

If you’ve been sceptical about investing in Chennai, here are some reasons which could make you reconsider:

Safest City in India:

Chennai has been assessed as one of the safest cities in India, jumping ahead of metros like Bangalore, Hyderabad and Pune. The Mercer Survey finds Chennai to be the safest Indian city with a global rank of 113. Chennai achieved this, based on points for internal stability, lower crime levels and efficient and capable local law enforcement. These factors would go a long way in influencing a potential real estate investor looking to enter a new territory.

Booming Business and Industry Sectors:

Sectors such as IT, the automotive industry and electronic manufacturing industry in Chennai have been constantly growing. Many companies have been investing in the city, which has given rise to employment opportunities, good connectivity and an abundance of housing options. Back in 2013, commercial offices had occupied spaces around 4 million square feet. Most of these occupants were IT/ITES companies that employed around 4.5 lakh people. Four years later, the growth has only been exponential.

Public Transport:

Chennai offers a variety of public transport systems for commuters, making it easy and fast to reach destinations. These diverse transportation systems include the Chennai Metro Rail, Chennai Mass Rapid Transit System, buses, taxis, rickshaws, etc. The government has been making efforts to improve its bus services and routes to ensure hassle free commutes. Also, in a country like India where women’s safety is a huge concern, Chennai is a city which offers safe commute to all.

An efficient and modern transport infrastructure makes any city a preferred choice for investors. With its long-term investment in developing urban transport, Chennai is now a much sought-after investment with long-term potential.

Education and Health Care:

Chennai is known to be one of the best destinations in terms of education in India. There are well reputed educational institutions such as NIFT, IIT and Loyola College. Known to be the ‘Health Capital of India’, Chennai has access to the best health care and medical facilities. Examples of such health care centres are Apollo Hospital, Fortis Malar Hospital, etc., marking Chennai for its quality of life.

As you can see from the above points, with abundant opportunities and thriving development, Chennai has a very bright future as an investment hub.

At House of Hiranandani, Chennai has been an area of focus for a while now. With a number of important developments, like our world class projects on the Old Mahabalipuram Road in Egattur, we have ticked all the boxes for location, luxury offerings and connectivity. In fact, one of our projects at the OMR - the Anchorage - is designed to be the tallest building in Chennai. As a company, we are committed in our focus to develop world-class housing projects in the city of Chennai.