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VISAKHA VISION

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PROPERTY: THE 1ST CHOICE AMONG 7TH PAY COMMISSION BENEFICIARIES

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Dear Readers,

Greetings and Good Wishes ! The proposed GST and enactment of RERA Bill seem to be steps in the right direction for industries, especially REAL ESTATE INDUSTRY . Fine tuning of the above is required for the expected results to emerge. The responsibility of real estate sector does not end with construction of apartments or commercial complexes. This should expand into specialized zones and take into account the requirements of disabled and senior citizen. Construction is only one aspect of our activity, the other aspect is creating agencies to take care of the maintenance part. Other activity Associated with

this are the issues of education, catering etc sufficient infrastructure development has to be constructed.. In this background, opportunities for fellow-builders are unlimited, it is up to us to tap the right spot. CREDAI has created an institutional platform for REAL ESTATE DEVELOPERS and developers can make use of this forum for ensuring organized growth, taking advantage of technology development.

K. S. CHANDRANBULLETIN EDITOR

EDITORIAL

EDITORIAL BOARD K.S. Chandran, LAYOUT & DESIGN ideafirst, #9-18-1, 1st Floor, Vinayagar Enclave, CBM Compound, Siripuram, Visakhapatnam, Ph: +91 891 2508150., PRINTED AT Sathyam Offset Imprints, Brindavan, #49-28-5, Madhuranagar, Visakhapatnam., PUBLISHED BY CREDAI VISAKHAPATNAM, #9-6-43, Flat No-2, Ground Floor, MVV Bhavan, Sivaji Park Road, Sivaji Palem, Visakhapatnam-530017, Ph: 0891-2739612, Mob: 98488 54448, 99120 54448 Email : [email protected], [email protected]. Website: www.credaivisakhapatnam.org

All the Members are requested to get their address updated with the association in order to ensure timely delivery of magazine also your email ID for speedy communication. If you are not receiving a copy of magazine of CREDAI, VISAKHAPATNAM chapter. please contact @ 9848854448

CREDAI VISAKHAPATNAM (Regd. No : 231of 2010)

K. S. ChandranBulletin Editor

CREDAI VISAKHA VISION JUNE - JULY, 2016 05

NOBODY IS SUPERIORNOBODY IS INFERIOR,NOBODY IS EQUAL EITHEREVERYBODY IS UNIQUE AND INCOMPARABLE.

Chairman’s Message

06 CREDAI VISAKHA VISION JUNE - JULY, 2016

I am glad to begin my message by sharing with you the widely accepted feeling that things are looking up for the real estate sector, specially in

cities like Visakhapatnam, which is being developed as a ‘Smart City’ and which has some unique features that would make it a favourite place for growth of real estate sector. My feelings of optimism were based on recent developments that would have a profound impact on real estate business. The first and foremost is, as all of you are aware, the enactment of Real Estate Regulation Authority Act that would make the consumer feel that he is now the ‘king’ and his investment in the real estate is safe. This mind set a prerequisite for purchase of houses. Another recent development that would have an impact was the Government’s acceptance of 7th Pay Commission recommendations that would put considerable purchasing

power in the hands of potential consumer. With a view to ensure better standards of living to employees, the Central Government had accepted a salary hike of nearly 24 percent. Nearly an estimated 94 lakh employees and pensioners ( 42 lakh Government employees and 52 lakh pensioners) will get the benefit. The arrears will also be released this year.

Also, a study by a media group, made the following observations about the impact of increase in the ceiling of house building advance.

“The decision (of the Government) to more than triple the ceiling for house building advance to Rs.25 lakhs from Rs.7.5 lakhs, is likely to provide a much needed personal incentive for employees to invest in housing sector”.

Dear Members, please accept my hearty greetings,

CHAIRMAN

Chairman Sri K. Rama Krishna Rao 9848037477 [email protected] G.V.V.S. Narayana 9848130272 [email protected] P. Koteswara Rao 9908600005 [email protected] P Rama krishna 9848414051 [email protected]. SecretarySri B. Srinivasa [email protected] SecretariesSri Ch. Govinda Raju 9848521789 [email protected] K.V.R. Raju (Ramesh)[email protected] N. Sivaji 9052544555 [email protected] K.S.R.K. Raju (Sai)[email protected] MembersSri A Shivanand 9963322000 [email protected] E. Ashok Kumar 9133188807 [email protected] N Srinivas Rao 9246635839 [email protected] D. Siva Govindam 9866228662 [email protected] J. Bhoja Raju 9849841875 [email protected] Sri N. Trinadha Rao9848292848 [email protected] C. Srinivas 9394218373 [email protected] K.Venu Gopal 9848125925 [email protected] V. Dharmender 9000387878 [email protected] M. Vijay Kumar 9966877999 [email protected] K. Nagendra 9666161616 [email protected]. Murali Krishna 9393101811 [email protected] Past ChairmanSri B. Raja [email protected]

OFFICE BEARERS

Let me also mention here that Vizag, which enjoys the sobriquet “City of Destiny ” is listed among the 10 richest Indian cities with a GDP of 26 billion dollars, and according reports in the media, it also features among the 11 Indian cities among the 100 fastest growing cities in the world. Vizag is the largest city in the State in terms of population and area. It has one of the largest harbours in the country and is rapidly developing into a commercial hub. The city is growing fast when it comes to luxury market, and in fact Viskahapatnam is known to be among the largest consumers of automobile manufacturer ‘Mercedes’ a symbol of luxry. Now let us make it the largest consumer of luxury houses. Now it is for us to take advantage of situation.

Quality and timely delivery were two basic principles on which consumers’ trust, which is very essential to all builders, is built. Let us make the consumer feel that purchasing a house from a CREDAI-VSP member, was, is and will be, a good investment proposition.

Now I would like to share the efforts made by CREDAI-VSP to solve certain issues that have been engaging the attention of builders. I am glad to inform you that because of the reputation of CREDAI-VSP, built over years by our predecessors with great effort and hard work, top officials of the Government of the level of Chief Secretary and Principal Secretaries, have directly been dealing with the representatives of CREDAI and were positively responding to many of our demands. Recently there was meeting with the Chief Secretary and Principal Secretaries and CREDAI had put forward as many as 14 issues, which, among others, include NALA Tax, Mining Cess, permission to have silt floor for multi storey buildings. We are expecting positive results very soon. I should also mention here that

interaction with the Government is a continuous process and CREDAI-VSP, in coordination with the CEDAI-AP, would continue the same.

Permit me to mention that work for the ensuing Property Show had already been started and I am confident that Sri E Ashok Kumar, who was unanimously made the Coordinator for the Property Show 2016-17, will come out with flying colours in his mission. Keeping in mind the experiences of last Property Show, new initiatives are being taken up. Let us extend full cooperation to Sri Ashok Kumar and see that the Property Show 2016-17 is memorable and profitable.

Last but not least, I would like to mention briefly about our CSR activities. CSR is an article of faith for the CREDAI-VSP and it is always in the forefront in taking up CSR activities. Besides regular programmes like distribution of books and stationery to students in Government schools and organising blood donations camps, this year we had taken up the prestigious project of constructing four model class rooms at the ZP High School, Chandrampalem, at a cost of about Rs. 40 lakh for which CREDAI members had liberally contributed. It is an excellent project and is nearing completion under the watchful monitoring of Hon Secretary Sri B. Srinivasa Rao. CREDAI-VSP had decided to organise a grand inaugural function for this unique project. Please wait for the date.

I wish to close this message by wishing you a very bright future in business front and splendid time at the domestic front.

K. Rama Krishna rao Chairman

SRI GANESH PLYWOOD & GLASS CENTRE

#50-92-35/5, Sankhala Castle, Shantipuram, Sankaramatham Main Road, Visakhapatnam - 16.

Ph: 0891-6050876, E-Mail: [email protected]

HARDWARE SYSYTEMS

R. R. AGENCIES #28-15-21, Opp. police Club, Surya bagh, Visakhapatnam, Ph No. 6673322/44, Email. [email protected],

Rakesh Jain 9848140876,Rosan Jain9948335151

Authorised Distributors for

Switch Gear, MCB, DB + Wires.

I would like to start my message by pointing out that we are all in a business that provides most important requirement of people. HOUSE. You all know that

‘Roti kapda and makaan’ or ‘koodu gudda and goodu’ are the basic needs of all people. While the first one was a daily requirement and second a recurring need, the third and final one was once in a life time requirement for people. It is here that we as builders of houses play a crucial role. For most people, specially middle class people, having a house of their dreams is a well cherished one and we have to stand up to his expectations by providing him a house of impeccable quality and delivering the same in the stipulated time. Providing after sales service would be a bonus to the customer. Publicity by mouth is the best form of publicity and a builder could get this publicity by building quality houses, leading to establishment of brand name. This means, ensuring quality of product and delivery in stipulated time to the customers, will be in our own interest.

As you must have realised, things are very bright for the real estate sector and it is more so in a city like Visakhapatnam which is being developed as a smart city. After bifurcation, it has become the largest city in the State and with the fast growing IT sector and location of important installations like Port, Steel Plant, Pharmaceutical Industries, Petroleum University, Navy Shipyard etc and the coming up of international air port near Bhogapuram, the city is on the fast track of development. With the blue waters of Bay of Bengal forming the backdrop and umpteen scenic spots dotting the district and the city, it is fast developing into a much sought-after tourism destination.

Now I would like mention two important developments that would profoundly impact real estate sector. First, the Real Estate Regulation Authority Act and second increased purchasing power in the hands of salaried people and pensioners because of acceptance of seventh pay commission recommendations. Provisions in RERA Act instilled a sense confidence in the minds of customers that their investment in real estate sector is safe. A national survey revealed that 74 percent of those planning to invest in property do not have a house of their own and 22 percent would be investing in a second property in real estate. This mind set is congenial for development of real estate sector.

These findings apply to a city like Visakhapatnam, which is destined to grow by leaps and bounds. So there would be no dearth of demand and it is for us to take advantage of the favourable conditions. Now, it is for us to make the prospective customer feel that purchasing a house from a CREDAI-VSP member is a good idea. I am aware that as builders we have been facing many problems and CREDAI-VSP, in coordination with the CREDAI-AP, has taken up as many as 14 issues with the Government and its response was positive on many issues. Under the dynamic and efficient leadership of our Chairman, Sri K. Ramakrishna Rao and with cooperation of all members of CREDAI-VSP, I am sure we will march forward with glory and achieve new laurels.

Please feel free to bring to the notice of CREDAI-VSP any problem that you face in connection with the your building activity. It is there to help you.

Wishing you good luck in all your business activities, peace and happiness at the home front.

GVVS Narayana President

PRESIDENT

At the outset please accept my warm greetings,


PRESIDENT’S MESSAGE.

32

RELIEF TO REALTORSNEW DELHI: After making a bold provision in the Real Estate Regulation Act to jail errant builders and real estate agents, the draft rules for implementation of this law made public on Friday seemed to provide an escape clause to the jittery sector.

It proposes a "compounding fine" to escape imprisonment. By paying 10 per cent of the estimated cost of the project, builders can avoid going to jail. Similarly, property dealers can also escape imprisonment by paying 10 per cent of the plot's or apartment's cost. According to the draft rules, a builder can pay 10 per cent of the estimated cost of the plot, apartment or building to avoid going to the jail.

"On payment of the sum of money, any person in custody in connection with the offence shall be set at liberty and no proceedings shall be instituted or continued against such person in any court," the proposed

rules said. Though the draft rules signal a big relief to builders and property dealers,they have to comply with the orders of the regulator or appellate tribunal within 30 days.

To bring parity in case of delay in payment by the promoter and buyer, it is proposed that the interest rate will be the State Bank of India's prime lending rate plus 2 per cent. The act provides for imprisonment of up to three years for builders who do not follow the rules, and up to one year for real estate agents and buyers and/ or monetary penalties if they violate orders of appellate tribunals.

The draft rules specify promoters can't discriminate against anyone in the allotment of apartment, plot or building on any ground. A real estate regulatory authority will also have to be set up in states and UTs so that buyers can have access to information relating to promoters and projects.

RERA ACT

ALL KINDS OF TILES, SANITARY WARE AND ELECTRICALS

VISAKHAPATNAM

MADHURAWADA

VIZIANAGARAM

RAJAHMUNDRY

NOW @ MADHURAWADA

Near Cricket Stadium PM Palem, Madhurawada, Visakhapatnam. 9440878262 [email protected]


Should You Buy a House Now or Wait for a Price Correction?

BUYING HOUSE

It’s unlikely that the real estate market will receive a huge price correction despite certain media reports. Home buyers should continue to exercise due caution and purchase the right property, in the right location, at a price point

that works for them

Most home buyers are concerned about the right time to make

an investment and whether the realty market is set for a correction in rates. The global economic market has witnessed lots of ups and downs with China devaluing the currency. Additionally, our domestic market had been choked by the policy paralysis which plagued many legislations in the parliament, in the past. Home buyers and investors are hopeful that the interest rate cut of 50 bps by the RBI would revive the market sentiment in the coming days.

“Although the Central Bank did implement monetary easing during the first half of the year, the actual impact on mortgage rates has been far less. However, going forward, further measures of monetary easing and reduction in mortgage rates can have a positive impact on housing sales across the country,” said AS Sivaramakrishnan, head – Residential Services India, CBRE South Asia Pvt. Ltd.

Are property prices heading for a crash?There are concerns about the realty market heading for a crash. However, can the realty market crash in a single day, like the stock market?

Price corrections do not happen the way most people imagine, if they happen at all. “Many people think that property price correct uniformly and simultaneously across locations; which is not the case. Property price correction may take place city-wise or in a particular city,” points out Arvind Jain, managing director, Pride Group. “More importantly, in locations where there is too much stock and no sales; if sales are taking place, even at a slower

rate, prices will not drop. This is, in fact, one of the main reasons why investment in the right property at the right location, is such a safe bet.” Property price trendAccording to a CBRE report ‘India Residential MarketView – H1 2015’, pricing trends in the residential real estate market remained diverse, varying across segments and neighbourhoods of leading cities. Home prices remained largely stable in the premium, and high and mid-end segments of Mumbai, Chennai and Kolkata; while Bengaluru saw a price rise due to a marginal increase in housing demand.

Should you wait to buy a home?Experts suggest that end-users should strike a right deal on the basis of location and amenities. Home buyers must exercise price negotiation when investing, but waiting for a big correction may not be fruitful. The current real estate sales trend, opens up a larger window of opportunity for buyers. The demand for properties has been low in the past three quarters. Especially during the lull period of the monsoons, sellers are eager to accommodate serious customers. In fact, property sales in 2015 are likely to continue their journey along the lower end of the graph, till the end of the holiday season.

“The rate of discount varies, depending upon the location and how badly it has been affected by the rains,” explains Kishor Pate, CMD – Amit Enterprises Housing Ltd. “Discounts on regular prices in cities like Kolkata (among the worst-affected) are likely to be more than in Chennai or Delhi. Even in top cities like Mumbai, home buyers can expect a discount between 10 to 20%.”



WHY THE MONSOONS ARE THE BEST TIME TO INVEST IN PROPERTY

SELECTION TIME

Rather than avoiding site visits or the purchase of resale homes during monsoons, buyers can use this season to evaluate the pros and cons of a home’s

location and construction quality and strike a good deal

WHY THE MONSOONS ARE THE BEST TIME TO INVEST IN PROPERTY

13CREDAI VISAKHA VISION JUNE - JULY, 2016

During the monsoon season, a real estate property and its surrounding areas, may be

quite different from how it is during the rest of the year. Consequently, this season offers prospective home buyers, with the opportunity to glean valuable insights on their intended purchase.

Infrastructure and amenities in the area Real estate experts advise that home seekers should visit the construction site more than once, before making a final decision. “Visiting a site in the monsoons when the traffic is at its worst, in most places, will provide insights on the waterlogging situation, as well as travel and access to the area,” explains Shveta Jain, managing director – residential services, Cushman & Wakefield. Monsoons are an apt time for buyers to go house hunting in a country like India and assess the condition of the building and the area around it, says Manju Yagnik, vice-chairperson, Nahar Group. “During monsoons, getting transportation from your home to the nearest railway station or bus depot, is a nightmare in cities like Mumbai and this aspect cannot be overlooked during such site visits,” Yagnik points out.

Construction quality Monsoon is the best period to check the overall quality of construction of a house. Issues like seepage in the ceiling and near the washrooms, are quite common during rains. “Heavy rain will reveal the construction flaws, like seepages/leakages, quality of plumbing and

drainage, waterlogging, traffic in the neighbourhood, etc. It is thus, the best period to visit the site and should not be avoided,” insists Dr Anil Jindal, chairman, SRS Group.

While ascertaining construction quality may not always be possible in an under-construction property, the rainy season is the perfect time to check the quality of a resale house. Ramkumar Mahadevan, a resident of Navi Mumbai, bought his property which was a resale house, during monsoons. “One of the factors that I considered, while finalising a top-floor flat, was the possibility of leakage issues. This is particularly important in a resale property. I went ahead with the deal, only when I felt assured that the flat could withstand the elements of nature. The monsoon actually puts any building, even if it is from a reputed builder with high quality of construction, to the test,” he shared.

Best time to negotiate Issues like leakages during the monsoons, can also be used by buyers to make the deal work in their favour. “If a buyer likes a particular property that has an issue of water logging in and around the building or a leakage problem, then, the prospective buyer has a chance to bargain further and get a fairly good deal and get it solved. This may not be possible in dry weather conditions,” says Yagnik.

Raining discounts As the demand for properties tends to dip in the monsoon season, it is an ideal time for discounts. “The monsoon is generally regarded as

a lean period for the realty sector. However, it is a good time for home buyers, especially for those looking at resale properties. This is the time when demand is less and sellers are willing to negotiate on lowering the price for serious buyers,” explains Yagnik. Moreover, with people preferring to invest in real estate during the festival season which begins in September-October, builders offer attractive discounts around monsoon to boost their sales for that quarter.

Advantages of selecting a property in the monsoons:

Buyers can gauge whether the property has problems pertaining to seepage, leakage from the terrace, drainage issues leading to stagnation of dirty water, etc.

For a resale home, a final inspection in this season, can reveal construction quality and how the house has been maintained.

Low lying areas are prone to flooding, leading to traffic jams and transportation woes. The extent of this problem, can be best judged in the monsoon season.

In cases, where flaws in the project become evident during the rainy season, buyers can bargain and also ask the developer to mend the same.

As it is a lean period, vis-à-vis sales, sellers may be willing to negotiate on the price.


WHAT TO CHOOSE: STANDALONE OR GATED HOMES?

Mumbai: A standalone building or gated community? Experts help you decide..

Developers offer a plethora of projects in gated communities as well as standalone towers. Both kinds have their pros and cons that would differ from varied points of view of developers, investors and buyers.

"A standalone property has lesser outflow in terms of maintenance than a gated community, but a gated community has better amenities and safety measures and hence, gets more rentals. The same has to be weighed against the capital investment, since the investment will also be higher for a gated community," says Vipul Shah, managing director, Parinee Group.

A gated community is expansive, equipped with numerous units and the character of such townships is cosmopolitan in nature. They generally have stricter building codes that promote uniformity in design too. Prabha Joshi, a resident of a well-known gated community in Nerul (west) points out that gated communities are self-sustained and

BETWEEN THE TWO

have their own infrastructure and services, thus giving the buyers a sense of luxury.

The presence of community halls, restaurants and amenities such as swimming pool, gym, tennis court, parking spaces and playground, is believed to be a differentiating factor. However, these value-adds come at a premium cost.

"I have two apartments within a gated complex. I pay a maintenance fee of Rs 17,000 and Rs 11,000 every quarter for both my apartments (unit sizes: 1500 sq ft and 1000 sq ft respectively).The extra money spent in terms of maintenance to avail all the facilities that the complex provides doesn't seem to be a concern, for the benefits

truly outdo the high cost," says Joshi.

However, there are disadvantages associated too. "Its scale of management, cost of maintenance, community disputes and a lack of personal choice and say in the management decisions of the community, can be detriments. There is a higher scope of group and community frauds," says Haresh Chheda, managing director, Shah and Chheda Group.

Geetha R, a resident of a standalone building in Nerul (east) pays a maintenance of Rs 6,000 for a 1,000 sq ft area quarterly and one can see a marked difference when compared to the fee Prabha doles out as maintenance fee for a flat in the same area but in a gated community.

"We have 84 flats in our building and with a few members, things are easier to manage and function in a systematic way," says V Umashankar, chairman of the housing society.

Experts explain that standalone buildings offer a better quality of life at an affordable price. However, it is important to ensure that effective social infrastructure is in place such as schools, hospitals, shopping centres, etc. Then, there are some standalone buildings that offer only basic requirements (read: building maintenance and security minus the frills).

Townships require larger tracts of land while standalones don't. The variation in the prices between a standalone building and a gated community depends on a number of factors such as location, amenities on offer, number of units in the property, etc.

Chheda estimates the price of a gated property to be higher by 10 to 50 percent than a standalone building and points out that apart from the

price difference, the project risk to the buyer is a tad bit more, in terms of delivery and promised amenities. Also, while standalone buildings near railway stations or in the heart of the city always command a higher rent, gated communities have their own set of advantages.

"A gated community is preferred due to the provision of various amenities and the sense of security one enjoys. One can get good rentals and better appreciation as well. One unique advantage in township projects is that there is always a good demand for homes by the residents within the complex. Hence, selling is relatively easy," says Gopal Sharma, general manager, Gundecha Builders.

Therefore, it's a known fact that standalone buildings and gated communities offer living experiences that cater to different buyer segments. They come with their share of advantages and disadvantages and each outdoes the other in various parameters. The choice, therefore, is yours.

Anuradha Ramamirtham, Times Property, The Times of India, Mumbai


According to a study conducted by international real estate consultancy JLL,

India's financial capital Mumbai has been ranked 22nd while the national capital Delhi is placed at the 24th spot. The list is topped by Tokyo, which along with New York, London and Paris make the top four 'super cities'.

These four were the destinations of over 50 per cent of all foreign capital invested in the "Global Top 30" cities. JLL said the top 30 global cities account for 64 per cent of the total cross-border investment into the 'Global300' - an expanded index of the cities in terms of their "commercial attraction" or economic and real estate power and status.

Mumbai is also on the top 10 list of "improvers", which are cities whose scores in the index of "commercial attraction" have improved the most over the past year.

Other cities where commercial attraction has improved significantly include Milan (Italy), Istanbul (Turkey), Tehran (Iran), Madrid (Spain), Cairo (Egypt), Riyadh (Saudi Arabia), Lagos (Nigeria), Jakarta (Indonesia) and Jeddah (Saudi Arabia).

"With growth exceeding 7 per cent in the city over each of the last three years, it is no wonder that Mumbai made a strong presence in the top list," JLL said, adding that reforms being undertaken by the government are boosting confidence in the

national and metro area economy.

JLL further said Mumbai is enhancing its position as a hub for global corporations, with firms among the world's 2,000 largest companies headquartered in the city rising by 50 per cent over the last 10 years. The index of commercial attraction is JLL's primary benchmark of the size and strength of a city's economy and real estate market. JLL India chairman and country head Anuj Puri said construction levels are high, with Mumbai increasing its Grade-A stock by 26 per cent over the past three years and it is expected to add an additional 22 per cent over the next three years.

"Moreover, Mumbai is enhancing its position as a hub for global corporations, with firms among the world's 2,000 largest companies headquartered in the city rising by 50 per cent over the last 10 years," he added.

Regarding the Global300' cities, Mr Puri said: "The cities that make up the 'Global300' are the world's most powerful, productive and connected. Their 1.3 billion citizens account for nearly 40 per cent of global economic activity, more than Europe and North America combined."

These cities host 88 per cent of the headquarters of the world's 2,000 largest listed companies, generate 40 per cent of the world's finance and business employment, and more than 80 per cent of the world's air passengers pass through their airports. "They represent the bulk of commercial real estate market activity, amounting to nearly three quarters of global direct commercial real estate investment and over 90 per cent of the world's prime office stock."

"They are the overwhelming focus of international corporations, retailers, hotel brands and real estate investors," he added.

MUMBAI, DELHI MAKE IT TO WORLD'S TOP 30 'SUPER CITIES

AMONG THE TOP

New Delhi: Two Indian cities - Delhi and Mumbai - have made it to a top 30 list of the world's most powerful, productive and connected cities.

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Union minister Venkaiah Naidu, on May 6, 2016, revealed that 12 major cities across the country, will switch over to a single-window online system, to issue building permissions from October 2, this year.

“12 major cities to switch over to single-window integrated online building permission system: Hyderabad, Kolkata, Ahmedabad, Lucknow, Guwahati, Bangalore & HAL Bangalore, Amritsar, Chennai, Nagpur, Jaipur, Aurangabad and Patna. This will be achieved by 2nd October, 2016,” the union urban development minister tweeted.

These cities join Delhi and Mumbai, where all construction permits would be granted only through the online mechanism, from October 2.However, the present system of both online and manual procedure, would continue till then, Naidu said.

ON THE FAST TRACK: 12 CITIES TO START SINGLE-WINDOW CLEARANCE SYSTEM

The government has shown its intent to expedite the process of creating a single-window online system for building permissions, with 12 major cities to now follow

this procedure

TECHNOLOGY


KOLKATA: Give us your rooftop and we will give you cheap solar power. This

is the model being used by many solar power companies to rake up their rooftop solar installation capacities. Industrial establishments, commercial buildings, malls and large gated communities are the target for these operators who would set up solar rooftops for free and sell you power at rates that are cheaper than the local utilities.

"Around 240 sq mt of rooftop space is good enough for setting up a rooftop solar power plant that can viably sell power to the building and earn some decent profits," said Sunil Jain, chief executive of Hero Future Energies.

"In fact, some five six companies including Hero Future Energy have already entered the fray and are on the lookout for large rooftop space in industrial complexes, commercial buildings, malls and gated communities," he said.

According to officials, about 8 sq mt of rooftop is required to set up panels to generate 1 kilo watt and a minimum capacity of 30 kW makes an installation viable. The power generated can help building owners cut down on power costs and gainfully use the roof which would otherwise remain unused. However, there are no model lease agreements and there is no way of making these agreements between the solar company and the roof owner a binding agreement. This has been one of the factors

holding back the success of the large scale rooftop solar installations.

"Nevertheless, with the cost of solar photo voltaic cells on the decline at a rapid rate, the cost of power generated from solar installations has been on the decline," an official said. Cost of generating power differs in different places due to difference in the intensity of sun's rays. For example, the sun is the strongest Rajasthan and the intensity reduces as it moves towards east.

"In Delhi, solar power can be made available between Rs 6.25 and Rs 7 per unit from rooftop installations. This is cheaper for the companies that consume large volumes of power," said Jain. Additionally, it offers a shield against frequent power cuts and hedge against rising power costs as rooftop owners enter into long terms, mostly 25year, agreements for buying the power at a fixed cost. In contrast, power tariffs of utilities are expected to rise at regular intervals. The model, popularly referred to as the OPEX operational expense model however, has its limitations when it comes to gated communities.

"There is a feeling that the rooftop belongs to the families staying on the top floor, hence they feel that they are

entitled to the power being generated from rooftop. But legally, the roof belongs to all flat owners and the power generated should be used for common purposes," senior executive from a solar power company said.

"A standard format for legal documents and agreements for rooftop solar plants will go a long way is increasing rooftop installations even on residential apartments," he said.

RENT YOUR ROOFTOP AND GET SOLAR POWER AT A CHEAPER RATE

TECHNOLOGY


PROPERTY: THE 1ST CHOICE AMONG 7TH PAY COMMISSION BENEFICIARIES

Real estate may be the first choice of investment for government employees, after the hike announced in the 7th Pay Commission. However, it is not the only choice and may not attract as much share as expected.

Property has emerged as the first choice for investment, among serving government

employees, as well as those who have already retired, with close to half of the employees in 20 cities of India, preferring to invest in real estate, following the 7th Pay Commission’s salary hike. As many as 44% of government employees across the country, wish to invest the entire salary gains into the property market. These are the findings of an exhaustive survey on consumer behaviour patterns of government employees,by Track2Realty, a real estatethink-tank group.

The major findings of the survey are:

44% of the government employees would invest the benefits of the 7th Pay Commission into the real estate.

34% of the respondents would invest in financial schemes for retirement gains; 12% to save money foreducation and marriage of children; and 10% would opt to upgrade their lifestyle.

Contrary to the general perception that youngsters drive the property market, officials who are close to retirement, are more inclined to invest in property (as many as 78%).

Metro cities with expats to attract

more government officials (68%) into the property market.

Peripheral locations and emerging markets are likely to attract more home buyers (as many as 74% of the respondents).Lack of affordable housing and the possibility of inflation, are the major deterrents for investing in real estate.

Preferred locations The study found that the main city areas are likely benefit less, as compared to the outskirts, owing to affordability, the urge for a relaxed lifestyle amidst open spaces and appreciation potential. With retirement in mind, as many as 74% of those who are investing in the property market, prefer emerging locations rather than established markets. Even those who have retired, prefer these locations, with a majority of them are already living in such regions.

The quest of property is more among the older generation, compared to young buyers. While one-fourths of the young generation (as many as 22%), wish to upgrade their lifestyle first and then diversify their portfolios, 78% of those above the age of 45 years wish to invest in the property market. A majority of the employees in the survey were closer to retirement and only a small set were below 30 years of age.

Investment options and concerns While real estate emerged as the first choice of investment, 34% of the respondents said they would invest in financial schemes with fixed returns, post retirement. Education and marriage of children came next, with 12% saving the 7th Pay Commission’s benefits for it and the remaining 10% said they would like to upgrade their lifestyle. The survey noted that nearly all of the respondents wish to avoid speculation, even with their investment in the property market.As many as 74% of those planning to invest in property, did not have a house of their own, while 22% said they would be investing in a second property for rental income. Only 4% said they would invest in a weekend home.

Less than one-third of the respondents (30%), felt that the 7th Pay Commission’s benefits would improve consumer sentiment. The biggest deterrent to investing in the property market was the absence of affordable housing options (55%), while 45% were apprehensive that inflation would eat up the benefits.The survey demography was a carefully chosen mix of government employees across hierarchy. The survey was carried out in Delhi, Noida, Gurgaon, Ghaziabad, Mumbai, Pune, Nagpur, Nasik, Ahmedabad, Bangalore, Chennai, Hyderabad, Coimbatore, Kochi, Kolkata, Bhubaneswar, Jaipur, Bhopal, Lucknow and Patna.

FIRST CHOICE


HOUSE

5 TOP LUXURY PROPERTY DESTINATIONS IN INDIA

Where cost of a luxury flat ranges between Rs.20--Rs.30 crore.

New Delhi


Mumbai The city of dreams! Spread over 13,000 sq ft, this Navi Mumbai residence in Palm Beach is listed on Magicbricks with a price tag of Rs 30 crore! Yet another one in Worli costs Rs 25 crore for a home spread over 6500 sq ft! Mumbai, home to some of the ultra high net worth individuals has some of the highly priced properties anywhere in the range of Rs 2-40 crore or even more. Despite the high values, there is no dearth of investors. In Bandra market, a 1BHK can cost you Rs 2 crore for a living space of just 450 sq ft. Rental values are high as well and can go up to Rs 5 lakh. Today, space crunch has pushed Mumbai to expand beyond its boundaries and in areas like Navi Mumbai, Thane and beyond.

Ayussh Kalia, Colliers International-Mumbai says, “Luxury in Mumbai is all about location followed by apartment space. South Mumbai’s benchmark for resale properties would be valued at Rs 7-8 crore minimum. These might not have high-end amenities but buyers are willing to pay for the location.”

Bengaluru Fat pay packages and a very cosmopolitan culture makes the city likeable. Rational property prices coupled by smart innovative homes for the tech-savvy generation make the city popular among the young wealthy class. The traditional rich may have their base in Jayanagar, Indiranagar or JP Nagar but there is no dearth of properties priced up to Rs 20 crore in areas such as Sadashivnagar, Lavelle Road, MG Road, Benson Town, Cunningham Road, Kormangala, Jakkur Road, etc. The city succeeds in attracting not only local crowd but also those from other areas. “A number of non-locals from Gurgaon, Delhi and elsewhere invest in luxury homes as a holiday option. They are not worried about returns on their investment and

stay for only 2-3 days in a year,” says Jitendra M, who is a marketing manager with a leading developer.

Delhi The price of convenience is a bigger price. This stands true for the most markets in the capital. You wish to live near the metro, you are charged a premium. You wish to buy a small house but within an established market, be ready to pay the sum. Although this may be true for most Indian cities, take the case of Lutyen’s Delhi or a Greater Kailash or even Defence Colony and a Green Park. Magicbricks listings show property values shooting up to Rs 25 crore!

It is also interesting to note that the neo-rich, lifestyle conscious native crowd and even the migrated population in the city are opting for Delhi’s luxe’ extension which is Gurgaon. In fact, Noida and Gurgaon have been faring well amongst young investors willing to put in anywhere between Rs 1.5-5 crore. Still developing in phases, these locations interest those looking for some space that is slowly diminishing within the city and yet the familiarity with the capital.

Pune Pune is garnering interest not only among the Puneiites and the Mumbaikars but the NRI crowd as well. Ashutosh Singh, a Canadian citizen today with an ancestral house in Patna says, “Pune is very popular among my Indian colleagues in Canada as well. International brand names have launched their projects in the market and although I may not be buying into this project, I would like to believe that I have invested in a city that is popular among big brands.” Rahul Kapur of Jewel Properties says, “Just like how the ambience and brand of a restaurant impacts the prices of what is in the menu, many such luxury properties

command a higher value because it has become a landmark in the area. Buyers pay for the brand of the developer and it does create pricing variation, but buyers ultimately choose the developer over price.”

Chennai Up for a beach house? Or, a house that is tastefully designed to suit your style sensibilities? Although the market may be sluggish, trend watchers tell us that the well-heeled are looking for properties customized to suit their lifestyle. K Aravamudhan of Neelankarai Properties says, “Such homes are popular among expats and the rental values can go up to Rs 2 lakh. These are spacious homes and although there is nothing grand about these homes apart from space and the view, some amount of renovation and design make it popular among tourists and for corporate leases.” Boat Club Road, Poes Garden, Adyar, Anna Nagar, Neelankarai and some corridors along ECR and GST boast exquisite homes.

Bangalore


PHOTO GALLERY

Chairman Sri K. Ramakrishna Rao, addressing 2nd general body meeting at KSR Function Hall on 06.06.2016. He was flanked by President Sri G.V.V.S. Narayana and, Hon Secretary Sri B. Srinivasa Rao.

General Body Meeting

GVMC, Commissioner, Sri Praveen Kumar, IAS, addressing students of GVMC school, JR Nagar, Old Venkojipalem, on 22.06.2016. (From left) Vice President Sri P. Koteswara Rao, Chairman Sri K. Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao are seen in the picture.

Advice Of Commissioner GVMC, Commissioner, Sri Praveen Kumar, IAS, releasing Visakha Vision (April-May Issue) Magazine of CREDAI-VSP at a function at JR Nagar School on 22.06.2016. Chairman Sri K. Ramakrishna Rao, Vice President, Sri P. Koteswara Rao, Hon Secretary, Sri B. Srinivasa Rao and Joint Secretaries, Sri Ch. Govinda Raju, Sri K.V.R.Raju (Ramesh), and N. Sivaji and Sri A. Sivanand, Sri E.Ashok Kumar, Sri N. Srinivasa Rao, Sri N.Trinadha Rao and Sri V. Murali Krishna, all EC members are present at the function.

Releasing Visakha Vision

A Section Of Regular MeetingCSR Activity

Vice Chairman of VUDA Sri T. Baburao Naidu, IAS, addressing students of GVMC School, Madhuranagar, after distribution of note books and stationery on 27.062016.(Sitting on the dais from left) Head Master of the School, CREDAI-VSP President Sri G.V.V.S. Narayana, Chairman Sri K. Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao.

CSR Activity

GVMC, Commissioner, Sri Praveen Kumar, IAS, distributing note books and stationery to students of GVMC School, JR Nagar, Old Venkojipalem, on 22.06.2016. (From left) Sri A. Sivanandam, Sri N. Trinadhar Rao, Sri E. Ashok Kumar, all EC members and Sri B. Srinivasa Rao, Hon Secretary, Sri P. Koteswara Rao, Vice President and Sri K. Ramakrishna Rao, Chairman, are seen.

CSR Activity

PHOTO GALLERY


Students of GVMC School, Madhuranagar, attentively hearing the speech delivered by the Vice Chairman, VUDA, Sri T.Baburao Naidu, IAS, after distributing note books and stationery to the students as part of CREDAI-VSP's CSR activity on 27.06.2016.

Focussed Attentton

For CREDAI-VSP, President (sitting extreme left) Sri G.V.V.S. Narayana and Treasurer Sri K.S.R.K. Raju (Sai) , mingling with the school children of an interior school in Chalisingam in Ravikamatam mandal, was a pleasant and thrilling experience. To reach this school, Sri Narayana and Sri Raju had to trek more than 10 km by foot on 25.07.2016.

CSR Activity: Reaching Interier Places

A section of school children at the interior village Z.Kottapatnam, in Ravikamatam mandal, where CREDAI-VSP distributed note books and stationery to students as part of their CSR activity on 25.07. 2016.

CSR Activity

CREDAI President Sri G.V.V.S. Narayana and VUDA Vice Chairman Sri T. Baburao Naidu, handing over packets of note books and stationery to the students of GVMC School, Madhuranagar on 27.06.2016, as Chairman Sri K. Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao look on happily

CSR Activity: The Giver And Receiver

Sri Nagarjuna Rao, Assistant Commissioner Commercial Taxes, addressing members of CREDAI-VSP, at the regular general body meeting held on 04.07.2016. He had enlightened members on various issues concerning payment of tax. Sitting on the dais are (from left) President, Sri G.V.V.S. Narayana, Chairman Sri K. Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao.

Delevering a lecture

MLA Sri Vasupalli Ganesh Kumar (in yellow shirt), handing over a packet of note books and stationery to the children of journalists at a function held at Visakha Jala Udyanavanam on 06.07 2016. CREDAI-VSP Vice President, Sri P. Koteswara Rao, Chairman Sri K. Ramakrishna Rao, President of VJF Sri G. Srinibabu, Registrar of AU, V.Uma Maheswara Rao, President Sri G.V.V.S. Narayana, senior journalists, Narayana and CREDAI EC member Sri N. Trinadha Rao.

All Smiles !


CREDAI VSP ACTIVITIES THROUGH MEDIA


NATIONWIDE SURVEY REVEALS INVESTORS STILL BET ON REAL ESTATE

The Supreme Court of India might feel developers’ pre-launches should be banned, yet, several

Indians find it a viable option to earn a quick buck. With a mindset of high risk and high gains, close to one-fourth of the home buyers today, are investors and feel pre-launches are the best time to make sizeable returns.

In a pan-India survey, as many as 72% feel this is the best bet; something that suggests why pre-launches are so

successful despite the many incidents where the investors have lost their money. 18% investors want ready-to-move-in houses despite their high cost, to be safe than sorry; while 10% buyers prefer under-construction properties as surity of delivery.

“Which asset class is completely risk-proof anyway,” questions Komal Varma, a home buyer in Gurgaon. “I think, by and large, real estate is less risky. Even in pre-launches, the kind of returns that

the property promises, is something that nullifies the risk factor. It makes for great business sense.”

Upcoming locations rule the roost Nearly eight out of ten, a whopping 78% home buyers feel the upcoming locations are the best places to invest in, since the prime locations are at a saturation point and cannot give the kind of returns an upcoming location can. 18% Indians would bet on established locations for the fear of

TECHNOLOGY

Despite slow sales and a slump in the real estate market, a Track2Realty pan-India survey reveals that majority of Indians still believe in the

business potential of investing in the sector.

getting trapped, if the infrastructure projects in these upcoming locations, only remain on paper. 4% investors are not sure about it.

“It is all a question of a few years before or after,” points out Praveen Tyagi, a home buyer from Noida Extension. “The proposed infrastructure projects have to come up in the upcoming locations once the area gets populated and habitation demands it.”

Despite a stagnant real estate market in the last few years, more than six out of ten respondents, as many as 62%, feel it has been under-bought in India due to affordability. Only 28% think it has been over-bought and the remaining 10% maintain that it depends on the family structure.

The choice of investors is nevertheless taking a shift. Though an apartment is still one of the best bets for the investors, with 48% aggressively

confiident, office space as a serious choice of investment, is emerging to the extent that 34% Indians would like to invest in office spaces. The remaining 18% maintain that it depends on a number of factors and is a market-to-market reality.

Top 10 cities Top 10 cities where the Indians would like to invest in office space today is – Ahmedabad, Chennai, Hyderabad, Mumbai, Bengaluru, Gurgaon, Pune, Coimbatore, Kolkata and Noida. In terms of housing investment, top ten cities are Bengaluru, Chennai, Hyderabad, Pune, Coimbatore, Mumbai, Gurgaon, Kolkata, Nagpur and Ahmedabad.

Which are the cities that are home towns of investors across the geographical boundaries to fuel the real estate business? The study noted that despite the slow sales in India’s financial capital,

Mumbai still tops the list of having investors pumping money into every city. This is surpringly followed by Patna and then, Ahmedabad, Gurgaon and Bengaluru.

Do the investors fear any price correction or a crash? Nearly all, a whopping 94%, feel that home prices will never come down. The remaining 6% maintain that even though there is a correction in the short term, it will gain in the medium to long-term.

Why won’t real estate prices reduce despite slow sales? 54% feel the forces of politicians, bureaucrats and black money operators, is so strong that they will not let the prices fall. 30% feel most of the developers have strong holding capacity in the event of slow sales. The rest 16% believe it is due to the supply and demand gap.

In a reverse case, a lady has approached the court of law for divorce, complaining about the inexplicably strange behaviour of her young and handsome hubby.

Questioning revealed that it was not a case of domestic violence nor a dowry harassment. Hence before taking a decision the judge asked the lady

“ Your answers reveal that there was no harassment for dowry either by your husband or in-laws. Also there was no domestic violence. Besides your husband is a reputed sports man and in fact he is kabadi champion. “That is exactly the reasons why I seek divorce’’ ...intervened the lady.

“ But how?” wondered the judge.

“Because, like a flash, he just touches me and runs away from the bed room !!!.

ADULT HUMOURHUMOUR


A seemingly innocent man, whose age could not be assessed by his appearance, approached a court, complaining harrowing harassment by the cantankerous lady at home, resulting in unbearable mental agony and seeking court’s help. After lot of questioning, the compassionate judge, who was apparently convinced of his argument and bad plight, suggested that divorce was the only option for him.

“ But, My Lord, I can not divorce that lady at home” said the man pretending child-like innocence.

“ But Why ? You have a strong case for granting divorce”

“ I can not My Lord, because I had not married the lady at home !!

visakha vision june-july,...

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