Credai's new demand to RBI

A delegation of Confederation of Real Estate Developer's Associations of India (Credai) has put forward a demand of increasing the priority sector home loan cap of Rs 20 lakh to Rs 35-40 lakh in metros to the governor of Reserve Bank of India (RBI).

In a closed door meeting with the governor in Mumbai on Tuesday afternoon, the developers, ‘appraised’ RBI governor D Subbarao on the present situation and put forward several demands, which they think could give the growth momentum to the economy.

Subbarao, deputy governor Usha Thorat, Rajani Ajmera, Credai national president and managing director of Ajmera Group, a Mumbai-based real estate company, Ramani Shastri, past Credai president and managing director of Bangalore-based Sterling Developers, president of Maharashtra Chamber of Housing Industry (MCHI) Pravin H Doshi, who is the chairman of Mumbai-based Acme Group, Lalit Jain of Pune-based Kumar Builders, Dharmesh Jain, chairman of Nirmal Lifestyle and vice-president of MCHI, Sunil Mantri of Sunil Mantri Realty, and president-elect of MCHI, attended the meeting.

"We appraised the governor of the present situation and also tried to draw attention to certain needs. We requested the governor to increase the priority sector lending cap and also to treat the real estate industry on par with the other industry. Real estate industry is the second largest contributor to our GDP (gross domestic product), next to agriculture sector," said Ajmera.

Under the priority sector lending, banks and housing finance companies are allowed to disperse home loans up to Rs 20 lakh at an interest rate of 9.5 per cent. Government-owned State Bank of India lends at 9.5 per cent interest for home loans up to Rs 30 lakh.

"The governor was very sympathetic towards the industry. His response was very positive and encouraging," said Jain, adding that the meeting was more to give a directions for additional policy decisions.

This is definitely the need of the moment, as it would be a great relief for builders, and at the same time would prove to be a golden time for buyers. Hope the govt did listen to it!

Kollam IT Park: Support from Govt

As part of its efforts to create information technology parks in different districts of Kerala, the state government is gearing up to launch an IT park in Kollam.

State education minister MA Baby on Tuesday handed over the land documents for setting up the park to Ajaykumar, secretary, IT. This is the first district level IT park that is being launched by the Kerala government as part of the new IT policy.

Chief minister VS Achuthanandan will officially launch the development activities of Kollam Technopark on February 10. The park, which will boast of a 40-acre campus, will see an investment of over Rs 800 crore.

Speaking at a function after receiving the land documents, Ajaykumar said, “The Thiruvananthapuram Technopark is our inspiration to set up similar parks in every district. Kollam in its own right is a developed district with the growing cashew industry, excellent educational institutions and with the setting up of a Technopark at Kollam, we hope to see Kollam flourish and develop as a IT hub providing better employment and a quality life.”

Hope atleast this initiative does not be in a stand still as what happened with Smart City in Kochi.

(News Source: Realty Pulse Magazine)

Location Focus: Edappally

To start off with let me share a news article from Hindu, by Shyama Rajagopal:

Red-hot growth in Edappally

With two shopping malls and several other commercial and residential projects in the offing, Edappally is witnessing a huge development boom.

New areas of growth are emerging in Kochi as the spotlight turns to less-congested, but accessible places away from the heart of the city. As such, importance of Edappally seems to be growing because of its strategic location — bang on the intersection from where National Highway 47 leaves the city and National Highway 17 can be reached.

The quiet residential place till recently is now a beehive of activity. With at least two malls coming up at the Edappally junction and another one near the junction on the National Highway bypass, developers make it a hub of commercial spaces. Edappally may turn into a city area weaning away a big chunk of shoppers now going to Kochi proper.

Mall culture

The Lulu International Shopping Mall will be spread over 16 acres (one acre = 0.4 hectare). The complex is not going to be all concrete, and hence an unlikely eyesore. It will have a beautifully landscaped area, says Babu Varghese, project director.

The mall will house not just a shopping arena, food courts and a multiplex but also a 20-storey five-star business hotel. The hospitality section is mainly aimed at accommodating travelling businessmen, so that they need not go to tourist hotels for a day’s stay.

The shopping hypermarket on three floors will be of 10 lakh sq.ft. The ground floor will span 3 lakh sq.ft.

“People do not like to go high up while shopping. It is a different matter going to offices in high-rise buildings,” Mr. Varghese says. The multiplex will have seven theatres.

The food courts on the top floor will seat 3,000 to 4,000 people.

Lulu plans to bring in 18 food courts to the city. The palate of the people will decide which food will stay and which not, Mr. Varghese says. Thai, Arabic, Continental, Chinese, North Indian, South Indian and several other cuisines will be on the menu.

The plans for amenities are in the making, and a children’s play area and more entertainment options are expected.

To carry people smoothly, escalators, travellators, lifts and staircases will be provided.

One of the most important aspects that will be looked into is the movement of traffic into the mall and out so that the adjacent main roads do not get crowded, Mr. Varghese says. To achieve this, the mall will open to National Highway 47 and the road leading to the other highway.

A good amount of thought has gone into providing parking areas. The basement area alone can accommodate 1,500 cars.

The other mall coming up at the Edappally junction is the Grand Cochin Mall, promoted by Hilite Builders and APK Builders in a joint venture. The mall is being built on 1.32 acres of land and will have a built-up area of 2,43,000 sq.ft and a saleable area of 1,28,708 sq.ft on four floors.

The centrally air-conditioned building will have 94 shopping spaces and a spacious car parking area. There will be an entertainment zone and fine dining spaces. It will be an attractive shopping destination where mega brands and mega shoppers will meet, says P.V. Arshad, chief executive officer of APK Builders.

“Edappally is already marked for major development and the Edappally-Vyttila road is going to be the major commercial hub of the city,” he says.

As growth on Mahatma Gandhi Road and Banerji Road has slowed because of lack of space, the city is finding new commercial areas for development, Mr. Arshad says.

Edappally is a place that provides easy access to the city as well as that takes you away from it with little trouble of getting caught in the traffic jam.

The Grand Cochin Mall will provide two basements for parking.

The food courts will house eight counters with a seating capacity of 150 people. The anchor stores in the mall will have area of 10,000 sq.ft.

Residential buildings

Edappally has good road infrastructure, says Abdul Azeez, managing director of Skyline Builders. When the National Highway 17 connectivity comes through, Edappally will truly become the gateway to the city. Skyline has been promoting it as a residential area for some time.

It provides easy access to all places, whether it be the core city area, the Kaloor bus stand, the airport, the Seaport-Airport Road, SmartCity or the NH bypass.

As the city areas expand, Edappally, with the four-lane main road, has become the nerve centre of activity even as Kakkanad continues to draw builders.

With commercial activity moving away from the core city areas, the place will soon become a city, Mr. Azeez says.

Already enjoying success here is National Builders. The major projects National Pearlstar and National Gemstone have been launched with about 35 per cent of the space sold out. Yet another one, National Metropolis, is in the pipeline.

One project is coming up on 1.5 acres of land and will have a built-up space spread over seven floors. A three-level parking area has been planned, comprising basement and roof parking and ground-level parking for a hundred cars.

Builders have earlier constructed shopping complexes and residential projects in Edappally.

The 10- to 12-floor complexes have 60 to 70 flats. There are three ongoing residential projects.

Development on such a scale will add pressure on existing infrastructure. If the local authorities maintain a regular check, and if residents associations keep a vigil, the residents can ensure that the character of the place is not lost.

SHYAMA RAJAGOPAL

More Facts About Edappally

Edappally is a fast growing suburb of Kochi/Cochin City in Kerala state, southern India. Edappally was the seating place of the Edapally Rajas, the ruler of this place. Edapally Palace also has the famous Edapally Ganapathy Temple. The town is famous for St. George's Church which is quiet old and is a pilgrimage centre. Perandoor Temple, Thrickovil Sree Krishna Temple, Puthukkalavattam Mahadeva Temple, Punnakkal Bhagavathy Temple, Ponekkara Bhagavathy Temple are important places of worship. Elamakkara Lourdh Matha church is the other noticed worship place, which has a history over a 100 years. Edappally mosque (more than 1000 years old) and many other old buildings are preserved in Edappally.

It is the home town of the famous Malayalam poets Changampuzha Krishna Pillai and Edappally Raghavan Pillai. One of the most famous Malayalam poet Mr. Balachandran Chullikkad and his wife Vijayalakshmi, herself a great poetess, are staying here. The first meeting of Samastha Kerala Sahithya Parishath (the organisation of Malayalam writers) was organised here by the then Edappally Raja (Krishna Raja), with the support of different Malayalam writers such as K.P. Karunakara Menon, Changampuzha Krishna Pillai, etc.

Two national highways NH 47 and NH 17 join the bypass jn at Edappally. At Edappally, The National Highway NH-17 begins and continues up to Panvel, Maharashtra, in India. Edapally is also connected by rail, and there is a railway station at Edappally.

One of the best hospitals in Kerala named Amrita Institute of Medical Sciences is situated in Edappally. Edappally was a Panchayath before getting included in Cochin Corporation. This is a place which comes partly under Thripunithura legislative constituency and partly under Ernakulam constituency. The Cochin bypass connects Edappaly with Aroor which is an industrial town near the city of Cochin. Bypass Junction in Edappally is the north end of the Cochin bypass which extends up to Aroor. This entire root is evolving into a major business hub with bigtime stores and five star hotels. Outlets of Mercedes, Hyundai, Maruty, etc. are situated on the road. The world famous museum of Kerala History and sculpture is also located in Edappally (outside the city limits). Thrikkakkara temple is only 2 kilometers away from Edappally Toll junction.

Major residential areas in and around edappally:

• Elamakkara
• Ponekkara
• Edapally Toll
• Mamangalam
• Changampuzha Nagar
• Subhash Nagar
• Keerthi Nagar
• Netaji Nagar
• KP Nagar
• AKG Road
• Mythri nagar
• Prashanthi Nagar

Major Schools Near Edappally:

• Campion school
• Bhavans Elamakkara
• Al Ameen School
• Edappally High School
  

Builder Spotlight: Clearway Builders, Cochin

Clearway Builders have two ongoing luxury apartment projects-Grandiose and Colossal in Cochin.

Grandiose is a completed project off M.G.Road and is being delivered to our valuable clients now. Colossal is ideally located off National Highway in Palarivattom in close proximity to the vital landmarks of Cochin including the Gold Souk and the Indroyal – 5 star Luxury hotel. Here, the work is in full swing and presently we have reached the fifth floor stage in structure. It is scheduled to be completed in July 2009.Colossal offers three bedroom apartments of 1700 sq.ft. each with a wide range of facilities including Swimming pool, Health Club, Roof top party area, Kids Pool, Children’s play area, Centralized cooking gas supply, Rain water harvesting plant, Driver’s room, Common visitors’ lounge, 24 hours water supply, Intercom, Back-up Generators, 24 hours Security and many more…..

The promoters of Clearway Builders have a record of stellar performance in the land development scenario in Calicut and is committed to bring that new benchmark of quality to Cochin. We are renowned for Quality construction, Timely delivery and adherence to promised amenities. We have constructed luxury homes for private customers, distinct residential villa projects and commercial complexes in prominent places in Kerala and they all stand tall by giving testimony of comfort and style of Clearway’s new standards.

Especially built for those who wish to welcome unsurpassed quality into their daily lifestyle, Clearway's Colossal Luxury Apartments spells quality down to the smallest grain and beyond the tiniest screw.
With looks that brighten your mood and comforts that delight your senses, this colossal, *multi-storeyed, spacious wonder is sure to add the touch of enviable quality to your lifestyle!
Colossal is ideally located in close proximity to the vital landmarks of Cochin city yet veiled from the hustle of modern living. Aesthetic design. Ample living space. Serene ambience. Unsurpassed quality in fittings and highest standards of engineering. All this and more makes Colossal the last name in quality living style !

For More Information on Clearway Builders, Click on to the link below:
www.clearwaybuilder.com

Kerala Builders’ Forum buoyant

KOCHI: Despite the global financial meltdown affecting the real estate sector in the State, Kerala Builders’ Forum, representing the interests of the real estate business in the State, has exuded confidence as it plans to conduct the Kerala Property Expo 2008 at the Jawaharlal Nehru International Stadium between December 19 and 21.

“Property investments in Kerala are safe and sound,” said George E. George, chairman of the forum here on Wednesday. He said that despite the global crisis in the financial market and the general squeeze in the money market, investments in property were safe.

There are several factors that make investments in property safe in Kerala. The shake-up witnessed in various parts of the country as fallouts of the U.S. crisis will have limited impact on Kerala, say KBF leaders.

The Kerala realty market is dominated by the real buyer or the end-user. This means, in general, there is little of speculation involved in property transactions. This has resulted in consistent demand for property in Kerala unlike the recession seen in other major development centres in the country, said Mr. George.

The value of realty has risen consistently in Kerala around 35 per cent a year. This has been happening over the last decade. The building industry sees no fluctuations in the coming years too.

KBF leaders point to the crisis-like situation in 1996 when property price remained stable in Kerala when it crashed in other cities in India.

Source: The Hindu Online

‘Variety Is The Spice Of Nitesh Estate’s Contributions’ Managing Director, Nitesh Estates

‘Variety Is The Spice Of Nitesh Estate’s Contributions’ Nitesh Shetty, Managing Director, Nitesh Estates

Nitesh Shetty, Managing Director, Nitesh Estates talks about the growth of his company and its contribution to the real estate sector. Nitesh Estates, the real estate arm of the Nitesh Group, is an integrated property development company headquartered in Bangalore with offices in six other cities. Within five years of its existence, Nitesh Estates has developed state-of-the-art office spaces, residential condominiums, retail, hospitality projects, SEZs and integrated townships in various regions of the country. Today it has created a benchmark in the real estate industry and acquired more than four million sq ft of space, now being developed as premium living and working spaces.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. Q We wish to have your views on the real estate market in India and its evolvement over a period of time? Also, how do you see the present scenario in Bangalore?

A. There has been a remarkable change in the real estate market in the country in the last five or six years. Government regulations are being changed and foreign investment is now allowed. A lot of activity is being seen. There is much interest among the realty developers. Even non-real estate companies owning large tracts of land are getting into this sector. At the same time, the NRIs, private key players and banks with real estate arms are simply pouring money. The residential sector is flush with cash because more and more middle class people are buying homes with easy availability of loan. Initially this sector was rather unorganized. Now it is getting more organized with quality benchmark in standards. The entire process is marked by transparency. Unfortunately, an overdose of money speculation is likely to have a negative impact in the long run. So if there is a way of identifying genuine homeowners, the industry has a huge potential with very high returns. As for Bangalore, it is I think No. 1 in the country in terms of activities that can boast of actual quality. Mumbai and Delhi are still a notch higher as far as price per square foot is concerned. But in respect of office space requirement, Bangalore is clearly the frontrunner, primarily driven as it is by the IT and ITeS sector. This in turn has led to an increasing demand for housing. Further, many people are moving into the city for its metropolitan nature, generally good weather, job opportunities and reasonable cost of living.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: How do you describe the contribution of your group towards real estate development?

MS: In residential development we are not a very old player in the industry; we diversified into real estate in 1996. But we have done major work in mid-range housing. We have focused more on the volume and affordable housing. Shipra is also active in retail development. We have already completed Centrestage Mall in Noida and are about to complete another large mall in Indirapuram spread over 5 lakh sq. ft. I can assure you that it is going to be the best mall in the country. We have lot many projects that are being zoned in the right manner. Apart from that, Suncity itself is a fully integrated project, complete with residential, retail and entertainment activities like water park, 5-star hotels, mall and multiplex.

Q. VB: Shipra has been a forerunner in developing Indirapuram. Tell us something about your pioneering effort.

MS: In 1990s there was a time when nobody wanted to come to Indirapuram or Ghaziabad. But my father had the vision to see the future potential of this area. That was also the time when there was a slump in the real estate industry. People were closing their shops but we were the ones who had set up our operations. It was totally an investor- driven market. We came into the market which was an actual market and we had to do something to provide value to our product. As a strategy, we focused on the necessity segment of affordable housing. Our first project of 1500 houses was a success. Thereafter, we never looked back and came up with a number of other projects.

Q. VB: Shipra has been a forerunner in developing Indirapuram. Tell us something about your pioneering effort.

MS: In 1990s there was a time when nobody wanted to come to Indirapuram or Ghaziabad. But my father had the vision to see the future potential of this area. That was also the time when there was a slump in the real estate industry. People were closing their shops but we were the ones who had set up our operations. It was totally an investor- driven market. We came into the market which was an actual market and we had to do something to provide value to our product. As a strategy, we focused on the necessity segment of affordable housing. Our first project of 1500 houses was a success. Thereafter, we never looked back and came up with a number of other projects.

Q. VB: Shipra has been a forerunner in developing Indirapuram. Tell us something about your pioneering effort.

MS: In 1990s there was a time when nobody wanted to come to Indirapuram or Ghaziabad. But my father had the vision to see the future potential of this area. That was also the time when there was a slump in the real estate industry. People were closing their shops but we were the ones who had set up our operations. It was totally an investor- driven market. We came into the market which was an actual market and we had to do something to provide value to our product. As a strategy, we focused on the necessity segment of affordable housing. Our first project of 1500 houses was a success. Thereafter, we never looked back and came up with a number of other projects.

Q. VB: Shipra has been a forerunner in developing Indirapuram. Tell us something about your pioneering effort.

MS: In 1990s there was a time when nobody wanted to come to Indirapuram or Ghaziabad. But my father had the vision to see the future potential of this area. That was also the time when there was a slump in the real estate industry. People were closing their shops but we were the ones who had set up our operations. It was totally an investor- driven market. We came into the market which was an actual market and we had to do something to provide value to our product. As a strategy, we focused on the necessity segment of affordable housing. Our first project of 1500 houses was a success. Thereafter, we never looked back and came up with a number of other projects.

‘“We Are Bullish Of The Future”’ Trammel Crow Company

‘“We Are Bullish Of The Future”’ Alexander J Darragh, Senior Managing Director International, Trammel Crow Company

Alexander J Darragh, Senior Managing Director International of Trammel Crow Company, spoke to Realty Plus Editor Vinod Behl about his assessment of Trammel Crow Meghraj’s one year operations in India, their strategy to develop business in fast emerging but competitive Indian real estate market and their future business plans.

Q. It is one year of Trammel Crow Corporation-Chesterton Meghraj alliance. How has been the going so far?

Last year when Trammel Crow Meghraj (TCM) was set up, we set out to try and extend our technology and best practices from the US to Trammel Crow Meghraj in India so that they can provide better services to our clients who we refer to India and also to their own clients they already have. About ten US staffers of the Trammel Crow Company (TCC) have been here to in India to work with our partners. There were trips ranging anywhere between 2 weeks to 6 months, involving training and it has members of Trammel Crow Meghraj in India come over to the US again for probably two weeks for revaluating operations with our clients so that they can take those learning and apply back to the clients in India. We are very pleased with the performance of Trammel Crow Meghraj during the last one year.

Q. How has been the integration of TCM into TCC’s global operating platforms in terms of knowledge, technology, expertise and skills?

Talking of technology, we brought over here technology programme called Service Express which is facility and property management programme which we integrated in one of the buildings which we manage for Unitech. And we have training done by the technology staff back in the US as well as our facility and property management staff from the US and Canada as well as our team here in India. We had training sessions where we had people come here and talk to TCM personnel about transaction and project management and about the expectations of the international clients, what they are looking for in terms of market information, service level, reporting, documentation in order to ensure that we can provide and meet the expectations of our international clients. We have referred several big clients here and they have been looked after very well by TCM because they have an immense amount of local knowledge of the real estate market conditions, great connections with the developers and the contractors and the people who have worked locally in India. And we have combined their knowledge with our knowledge and training about some of the global players in real estate and their practices and procedures and we used that to raise the service level for our clients as well as the clients of TCM. We have also been recruiting lots of new people in the company, those with a varied background, dealing with not only Indian clients but also multinational corporations, so that we are able to broaden the skill base inside the organization.

Q. What has been your experience in terms of business operations in the past one year?

The business has grown tremendously. The Real Estate market in India is booming and as a result, the deliverance is well above what it was last year and we will have to maintain the profitability as we make more investments in the business. So we are very bullish of the future.

Q. You have been into different segments of operations. So which particular real estate segment has been the most growth oriented in the last one year?

We have seen growth across all three segments- Brokerage, Retail, Investment, Project Management which is primarily construction services as well as facility and property management. A lot of opportunity in the future will be in project management because it’s very difficult to deliver projects here. We also look at the mall activity in India as a huge growth area for us. Beyond that we see a huge growth in Facility Management and we are making inroads into that area as well.

Q. What has been the experience working in a developed market viz-a-viz emerging market like India which is dogged by outdated property laws and lack of regulation transparency?

We are mostly working with corporate clients who are able to deal with top developers in India. Their practices are very transparent, very professional, and even they are at scale with the global developers. So we are not actually facing those issues because we aren’t directly buying and selling properties of our corporate clients. TCM is involved in all aspects of the real estate market. Their expertise in understanding the challenges of the Indian market is one of the reasons why they are successful. So far none of our clients have had any issues with the Indian Real estate market.

Q. There are obvious advantages of working in the Indian property market as well. The macro economics are very strong, the entry barriers are low and moreover the returns are high. So do you think these factors overweigh the inherent challenges in an emerging market like India?

Most of my experience is on the corporate side. But clearly India is an attractive place to be in because of growing demand and the infrastructure does pose challenges but its also means that there are opportunities. So people who have good local market knowledge should get the kind of returns they are expecting. So the key is that you should know the local market well, the trends, traditions, culture, government regulations and where the investment is to be made. Those handling our operations in India have all this knowledge and that’s how we are able to help our clients.

Q. What has been your strategy to develop your business and skills as well as raising the quality of service offering?

Our foremost strategy has been to integrate TCM with TCC. We treat them as another part of our company, just that we are in different countries. So they have complete access to the best practices and procedures that we have to offer. They are linked to every aspect of our operations and talk to our experts. We have been recruiting new people in our organisation and have been constantly raising the level of service offerings.

Q. How has been your experience with regards to your competitors in the Indian Real Estate Market. How is your business model different from your competitors?

We have great competitors in this market like CBRE, Cushman & Wakefield, Knight Frank etc. Our difference from the Trammel Crow standpoint is in three ways. One is we are truely committed to customer service and we measure that frequently through independent surveys. And if some customer is not happy, we take corrective measure at the top most level. Also we work on a global basis and work out total client relationship across the world. That helps us to do large transactions, large projects in some parts of the world and small ones in the other parts of the world. As such we are in a position to give higher level of customer satisfaction.

Q. About 80 percent of your corporate customers use TCC for their real estate requirements outside the US, How have you been able to leverage this for building strong base in India?

We made several reports here of different clients we have been looking after, for individual transactions, for outsourcing. We are also involving TCM staff for research not just in the Indian market but also for some of the global research. We are very confident that over a period of time as we use TCM into our system in the US, our customers there will use more and more of TCM in India.

Q. Overall how attractive do you think is the real estate market for the foreign investors?

India is a varied and complex country. The real estate market and the infrastructure is booming and the prices are increasing. The infrastructure ability to support growth varies from city to city. So we certainly see our clients looking at second tier cities now and moving out of main cities of Delhi and Bangalore into Chandigarh, Pune and some of the other second tier cities. I think TCM’s real estate knowledge in the second tier cities is much greater than our competition because they are the first to research the market conditions there. This well researched information in turn is helping our clients make the most of the opportunities in tier two cities. We really look forward to providing our clients information about these cities so that they continue to look at these cities as destinations of opportunities. In addition we are finding that clients are increasing the level of complexity of business activity that they have here in India and therefore taking advantages of some of the skilled labour force in comparison to markets in Philippines or down in South America where labour can be as cheap if not cheaper.