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VISAKHA VISION 2016 June-July, Issue- 2 6 Vol- Vol-

pg 28 PROPERTY: THE 1ST pg 20 CHOICE AMONG 7TH RENT YOUR ROOFTOP AND GET PAY COMMISSION SOLAR POWER AT A CHEAPER RATE BENEFICIARIES

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EDITORIAL

NOBODY IS SUPERIOR NOBODY IS INFERIOR, NOBODY IS EQUAL EITHER EVERYBODY IS UNIQUE AND INCOMPARABLE. K. S. CHANDRAN BULLETIN EDITOR

Dear Readers, this are the issues of education, catering etc sufficient infrastructure development has to be constructed.. In Greetings and Good Wishes ! this background, opportunities for fellow-builders are The proposed GST and enactment of RERA Bill seem to unlimited, it is up to us to tap the right spot. CREDAI be steps in the right direction for industries, especially has created an institutional platform for REAL ESTATE REAL ESTATE INDUSTRY . Fine tuning of the above DEVELOPERS and developers can make use of this forum is required for the expected results to emerge. The for ensuring organized growth, taking advantage of responsibility of real estate sector does not end with technology development. 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, K. S. Chandran the other aspect is creating agencies to take care of Bulletin Editor the maintenance part. Other activity Associated with

CREDAI VISAKHAPATNAM (Regd. No : 231of 2010) 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

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CREDAI VISAKHA VISION JUNE - JULY, 2016 05 CHAIRMAN Chairman’s Message

Dear Members, please accept my hearty greetings,

am glad to begin my message by sharing with power in the hands of potential consumer. With a view you the widely accepted feeling that things are to ensure better standards of living to employees, the I looking up for the real estate sector, specially in Central Government had accepted a salary hike of nearly cities like Visakhapatnam, which is being developed as 24 percent. Nearly an estimated 94 lakh employees and a ‘Smart City’ and which has some unique features that pensioners ( 42 lakh Government employees and 52 lakh would make it a favourite place for growth of real estate pensioners) will get the benefit. The arrears will also be sector. My feelings of optimism were based on recent released this year. developments that would have a profound impact on real estate business. The first and foremost is, as all of Also, a study by a media group, made the following you are aware, the enactment of Real Estate Regulation observations about the impact of increase in the ceiling of Authority Act that would make the consumer feel that he house building advance. is now the ‘king’ and his investment in the real estate is safe. This mind set a prerequisite for purchase of houses. “The decision (of the Government) to more than triple the Another recent development that would have an impact ceiling for house building advance to Rs.25 lakhs from was the Government’s acceptance of 7th Pay Commission Rs.7.5 lakhs, is likely to provide a much needed personal recommendations that would put considerable purchasing incentive for employees to invest in housing sector”.

06 CREDAI VISAKHA VISION JUNE - JULY, 2016 OFFICE BEARERS

Chairman Let me also mention here that Vizag, interaction with the Government is a Sri K. Rama Krishna Rao 9848037477 which enjoys the sobriquet “City continuous process and CREDAI-VSP, [email protected] of Destiny ” is listed among the 10 in coordination with the CEDAI-AP, President richest Indian cities with a GDP of 26 would continue the same. Sri G.V.V.S. Narayana 9848130272 billion dollars, and according reports [email protected] in the media, it also features among Permit me to mention that work Vice-Presidents the 11 Indian cities among the 100 for the ensuing Property Show Sri P. Koteswara Rao 9908600005 fastest growing cities in the world. had already been started and I am [email protected] Vizag is the largest city in the State confident that Sri E Ashok Kumar, Sri P Rama krishna in terms of population and area. who was unanimously made the 9848414051 [email protected] It has one of the largest harbours Coordinator for the Property Show Hon. Secretary in the country and is rapidly 2016-17, will come out with flying Sri B. Srinivasa Rao developing into a commercial hub. colours in his mission. Keeping 9553356666 The city is growing fast when it in mind the experiences of last [email protected] Joint Secretaries comes to luxury market, and in Property Show, new initiatives are Sri Ch. Govinda Raju fact Viskahapatnam is known to being taken up. Let us extend full 9848521789 be among the largest consumers of cooperation to Sri Ashok Kumar and [email protected] automobile manufacturer ‘Mercedes’ see that the Property Show 2016-17 is Sri K.V.R. Raju (Ramesh) 9550633399 a symbol of luxry. Now let us make memorable and profitable. [email protected] it the largest consumer of luxury Sri N. Sivaji houses. Now it is for us to take Last but not least, I would like to 9052544555 advantage of situation. mention briefly about our CSR [email protected] Treasurer activities. CSR is an article of Sri K.S.R.K. Raju (Sai) Quality and timely delivery were faith for the CREDAI-VSP and it is 9848185679 two basic principles on which always in the forefront in taking [email protected] consumers’ trust, which is very up CSR activities. Besides regular Committee Members Sri A Shivanand essential to all builders, is built. Let programmes like distribution of 9963322000 us make the consumer feel that books and stationery to students in [email protected] purchasing a house from a CREDAI- Government schools and organising Sri E. Ashok Kumar 9133188807 VSP member, was, is and will be, a blood donations camps, this year [email protected] good investment proposition. we had taken up the prestigious Sri N Srinivas Rao project of constructing four model 9246635839 [email protected] Now I would like to share the class rooms at the ZP High School, Sri D. Siva Govindam efforts made by CREDAI-VSP to Chandrampalem, at a cost of about 9866228662 solve certain issues that have been Rs. 40 lakh for which CREDAI [email protected] engaging the attention of builders. I members had liberally contributed. It Sri J. Bhoja Raju 9849841875 am glad to inform you that because is an excellent project and is nearing [email protected] of the reputation of CREDAI-VSP, completion under the watchful Sri N. Trinadha Rao built over years by our predecessors monitoring of Hon Secretary Sri 9848292848 with great effort and hard work, top B. Srinivasa Rao. CREDAI-VSP [email protected] Sri C. Srinivas officials of the Government of the had decided to organise a grand 9394218373 level of Chief Secretary and Principal inaugural function for this unique [email protected] Secretaries, have directly been project. Please wait for the date. Sri K.Venu Gopal 9848125925 dealing with the representatives [email protected] of CREDAI and were positively I wish to close this message by Sri V. Dharmender responding to many of our demands. wishing you a very bright future in 9000387878 Recently there was meeting with business front and splendid time at [email protected] Sri M. Vijay Kumar the Chief Secretary and Principal the domestic front. 9966877999 Secretaries and CREDAI had put [email protected] forward as many as 14 issues, which, Sri K. Nagendra among others, include NALA Tax, 9666161616 [email protected] Mining Cess, permission to have silt V. Murali Krishna floor for multi storey buildings. We 9393101811 are expecting positive results very K. Rama Krishna rao [email protected] soon. I should also mention here that Chairman Immediate Past Chairman Sri B. Raja Srinivas 9849709999 [email protected] Authorised Distributors for

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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 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.

PRESIDENT 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 At the outset please accept my warm greetings, a CREDAI-VSP member is a good idea. I am aware that as would like to start my message by pointing out that builders we have been facing many problems and CREDAI- we are all in a business that provides most important VSP, in coordination with the CREDAI-AP, has taken up as I requirement of people. HOUSE. You all know that many as 14 issues with the Government and its response was positive on many issues. Under the dynamic and efficient ‘Roti kapda and makaan’ or ‘koodu gudda and goodu’ are leadership of our Chairman, Sri K. Ramakrishna Rao and with the basic needs of all people. While the first one was a daily cooperation of all members of CREDAI-VSP, I am sure we will requirement and second a recurring need, the third and march forward with glory and achieve new laurels. final one was once in a life time requirement for people. It is here that we as builders of houses play a crucial role. Please feel free to bring to the notice of CREDAI-VSP any For most people, specially middle class people, having a problem that you face in connection with the your building house of their dreams is a well cherished one and we have activity. It is there to help you. to stand up to his expectations by providing him a house of impeccable quality and delivering the same in the stipulated Wishing you good luck in all your business activities, time. Providing after sales service would be a bonus to the peace and happiness at the home front. 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 GVVS Narayana the customers, will be in our own interest. President

CREDAI VISAKHA VISION JUNE - JULY, 2016 09 RERA ACT RELIEF TO REALTORS

NEW DELHI: After making a bold provision in the Real rules said. Though the draft rules signal a big relief Estate Regulation Act to jail errant builders and real to builders and property dealers,they have to comply estate agents, the draft rules for implementation of with the orders of the regulator or appellate tribunal this law made public on Friday seemed to provide an within 30 days. escape clause to the jittery sector. To bring parity in case of delay in payment by It proposes a "compounding fine" to escape the promoter and buyer, it is proposed that the imprisonment. By paying 10 per cent of the interest rate will be the State Bank of 's prime estimated cost of the project, builders can avoid lending rate plus 2 per cent. The act provides for going to jail. Similarly, property dealers can also imprisonment of up to three years for builders who do escape imprisonment by paying 10 per cent of the not follow the rules, and up to one year for real estate plot's or apartment's cost. According to the draft agents and buyers and/ or monetary penalties if they rules, a builder can pay 10 per cent of the estimated violate orders of appellate tribunals. cost of the plot, apartment or building to avoid going to the jail. The draft rules specify promoters can't discriminate against anyone in the allotment of apartment, plot "On payment of the sum of money, or building on any ground. A real estate any person in custody in connection regulatory authority will also have with the offence shall be set at to be set up in states and UTs so liberty and no proceedings shall be that buyers can have access to instituted or continued against information relating to such person in any promoters and projects. court," the proposed

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VISAKHAPATNAM MADHURAWADA VIZIANAGARAM RAJAHMUNDRY Near Cricket Stadium PM Palem, Madhurawada, Visakhapatnam. 9440878262 [email protected] BUYING HOUSE Should You Buy a House Now or Wait for a Price Correction?

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

12 CREDAI VISAKHA VISION JUNE - JULY, 2016 ost home buyers are rate, prices will not drop. This is, concerned about the in fact, one of the main reasons Mright time to make why investment in the right an investment and whether property at the right location, is the realty market is set for a such a safe bet.” correction in rates. The global economic market has witnessed Property price trend lots of ups and downs with China devaluing the currency. According to a CBRE report Additionally, our domestic market ‘India Residential MarketView had been choked by the policy – H1 2015’, pricing trends in the paralysis which plagued many residential real estate market legislations in the parliament, remained diverse, varying across in the past. Home buyers and segments and neighbourhoods investors are hopeful that the of leading cities. Home prices interest rate cut of 50 bps by the remained largely stable in the RBI would revive the market premium, and high and mid-end sentiment in the coming days. segments of Mumbai, Chennai and Kolkata; while Bengaluru saw a price rise due to a marginal “Although the Central Bank did increase in housing demand. implement monetary easing during the first half of the year, the actual impact on mortgage Should you wait to buy a home? rates has been far less. However, Experts suggest that end-users going forward, further measures should strike a right deal on the of monetary easing and reduction basis of location and amenities. in mortgage rates can have Home buyers must exercise price a positive impact on housing negotiation when investing, but sales across the country,” said waiting for a big correction may AS Sivaramakrishnan, head – not be fruitful. The current real Residential Services India, CBRE estate sales trend, opens up a South Asia Pvt. Ltd. larger window of opportunity for buyers. The demand for properties has been low in the Are property prices heading past three quarters. Especially for a crash? during the lull period of the There are concerns about the monsoons, sellers are eager to realty market heading for a crash. accommodate serious customers. However, can the realty market In fact, property sales in 2015 are crash in a single day, like the likely to continue their journey stock market? along the lower end of the graph, till the end of the holiday season. Price corrections do not happen the way most people imagine, if “The rate of discount varies, they happen at all. “Many people depending upon the location and think that property price correct how badly it has been affected by uniformly and simultaneously the rains,” explains Kishor Pate, across locations; which is not the CMD – Amit Enterprises Housing case. Property price correction Ltd. “Discounts on regular prices may take place city-wise or in cities like Kolkata (among the in a particular city,” points out worst-affected) are likely to be Arvind Jain, managing director, more than in Chennai or Delhi. Pride Group. “More importantly, Even in top cities like Mumbai, in locations where there is too home buyers can expect a much stock and no sales; if sales discount between 10 to 20%.” are taking place, even at a slower

CREDAI VISAKHA VISION JUNE - JULY, 2016 11 SELECTION TIME

WHYWHY THETHE MONSOONSMONSOONS AREARE THETHE BESTBEST TIMETIME TOTO INVESTINVEST ININ PROPERTYPROPERTY

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

12 CREDAI VISAKHA VISION JUNE - JULY, 2016 uring the monsoon season, drainage, waterlogging, traffic in the a lean period for the realty sector. a real estate property and its neighbourhood, etc. It is thus, the best However, it is a good time for home Dsurrounding areas, may be period to visit the site and should not buyers, especially for those looking quite different from how it is during be avoided,” insists Dr Anil Jindal, at resale properties. This is the time the rest of the year. Consequently, chairman, SRS Group. when demand is less and sellers are this season offers prospective home willing to negotiate on lowering the buyers, with the opportunity to glean While ascertaining construction price for serious buyers,” explains valuable insights on their intended quality may not always be possible Yagnik. Moreover, with people purchase. in an under-construction property, preferring to invest in real estate the rainy season is the perfect time during the festival season which Infrastructure and amenities to check the quality of a resale begins in September-October, builders in the area house. Ramkumar Mahadevan, a offer attractive discounts around Real estate experts advise that home resident of Navi Mumbai, bought his monsoon to boost their sales for that seekers should visit the construction property which was a resale house, quarter. site more than once, before making during monsoons. “One of the factors a final decision. “Visiting a site in that I considered, while finalising a Advantages of selecting a the monsoons when the traffic is top-floor flat, was the possibility of property in the monsoons: at its worst, in most places, will leakage issues. This is particularly provide insights on the waterlogging important in a resale property. I went Buyers can gauge whether the situation, as well as travel and access ahead with the deal, only when I felt property has problems pertaining to the area,” explains Shveta Jain, assured that the flat could withstand to seepage, leakage from the managing director – residential the elements of nature. The monsoon terrace, drainage issues leading to services, Cushman & Wakefield. actually puts any building, even if it stagnation of dirty water, etc. Monsoons are an apt time for buyers is from a reputed builder with high to go house hunting in a country like quality of construction, to the test,” he For a resale home, a final India and assess the condition of shared. inspection in this season, can the building and the area around it, reveal construction quality says Manju Yagnik, vice-chairperson, Best time to negotiate and how the house has been Nahar Group. “During monsoons, Issues like leakages during the maintained. getting transportation from your monsoons, can also be used by buyers home to the nearest railway station to make the deal work in their favour. Low lying areas are prone to or bus depot, is a nightmare in cities “If a buyer likes a particular property flooding, leading to traffic jams and like Mumbai and this aspect cannot that has an issue of water logging in transportation woes. The extent of be overlooked during such site visits,” and around the building or a leakage this problem, can be best judged in Yagnik points out. problem, then, the prospective buyer the monsoon season. has a chance to bargain further Construction quality and get a fairly good deal and get it In cases, where flaws in the project Monsoon is the best period to check solved. This may not be possible in become evident during the rainy the overall quality of construction dry weather conditions,” says Yagnik. season, buyers can bargain and of a house. Issues like seepage in also ask the developer to mend the the ceiling and near the washrooms, Raining discounts same. are quite common during rains. As the demand for properties tends “Heavy rain will reveal the to dip in the monsoon season, it is As it is a lean period, vis-à-vis construction flaws, like seepages/ an ideal time for discounts. “The sales, sellers may be willing to leakages, quality of plumbing and monsoon is generally regarded as negotiate on the price.

CREDAI VISAKHA VISION JUNE - JULY, 2016 13 BETWEEN THE TWO WHAT TO CHOOSE: STANDALONE OR GATED HOMES?

Mumbai: A standalone building or gated "A standalone property has lesser A gated community is expansive, community? Experts help you decide.. outflow in terms of maintenance equipped with numerous units and than a gated community, but a gated the character of such townships Developers offer a plethora of projects community has better amenities and is cosmopolitan in nature. They in gated communities as well as safety measures and hence, gets more generally have stricter building standalone towers. Both kinds have rentals. The same has to be weighed codes that promote uniformity in their pros and cons that would against the capital investment, since design too. Prabha Joshi, a resident differ from varied points of view of the investment will also be higher for of a well-known gated community developers, investors and buyers. a gated community," says Vipul Shah, in Nerul (west) points out that gated managing director, Parinee Group. communities are self-sustained and

16 CREDAI VISAKHA VISION JUNE - JULY, 2016 have their own infrastructure and truly outdo the high cost," says Joshi. price difference, the project risk to services, thus giving the buyers a the buyer is a tad bit more, in terms sense of luxury. However, there are disadvantages of delivery and promised amenities. associated too. "Its scale of Also, while standalone buildings near The presence of community halls, management, cost of maintenance, railway stations or in the heart of the restaurants and amenities such as community disputes and a lack city always command a higher rent, swimming pool, gym, tennis court, of personal choice and say in the gated communities have their own parking spaces and playground, is management decisions of the set of advantages. believed to be a differentiating factor. community, can be detriments. However, these value-adds come at a There is a higher scope of group and "A gated community is preferred due premium cost. community frauds," says Haresh to the provision of various amenities Chheda, managing director, Shah and and the sense of security one enjoys. "I have two apartments within a gated Chheda Group. One can get good rentals and better complex. I pay a maintenance fee of appreciation as well. One unique Rs 17,000 and Rs 11,000 every quarter Geetha R, a resident of a standalone advantage in township projects is for both my apartments (unit sizes: building in Nerul (east) pays a that there is always a good demand 1500 sq ft and 1000 sq ft respectively). maintenance of Rs 6,000 for a 1,000 for homes by the residents within the The extra money spent in terms of sq ft area quarterly and one can see complex. Hence, selling is relatively maintenance to avail all the facilities a marked difference when compared easy," says Gopal Sharma, general that the complex provides doesn't to the fee Prabha doles out as manager, Gundecha Builders. seem to be a concern, for the benefits maintenance fee for a flat in the same area but in a gated community. Therefore, it's a known fact that standalone buildings and "We have 84 flats in our building gated communities offer living and with a few members, things are experiences that cater to different easier to manage and function in a buyer segments. They come with systematic way," says V Umashankar, their share of advantages and chairman of the housing society. disadvantages and each outdoes the other in various parameters. The Experts explain that standalone choice, therefore, is yours. buildings offer a better quality of life at an affordable price. However, it is Anuradha Ramamirtham, Times important to ensure that effective Property, , Mumbai 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 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 AMONG THE TOP world's 2,000 largest companies headquartered in the city rising by 50 per cent over the last 10 years," MUMBAI, DELHI MAKE IT TO he added. Regarding the Global300' cities, Mr WORLD'S TOP 30 'SUPER CITIES Puri said: "The cities that make up the 'Global300' are the world's most powerful, productive and connected. New Delhi: Two Indian cities - Delhi and Mumbai - have made it to a top 30 Their 1.3 billion citizens account for list of the world's most powerful, productive and connected cities. nearly 40 per cent of global economic activity, more than Europe and North America combined."

ccording to a study Mumbai is also on the top 10 list These cities host 88 per cent of the conducted by international of "improvers", which are cities whose headquarters of the world's 2,000 Areal estate consultancy JLL, scores in the index of "commercial largest listed companies, generate India's financial capital Mumbai has attraction" have improved the most 40 per cent of the world's finance been ranked 22nd while the national over the past year. and business employment, and more capital Delhi is placed at the 24th than 80 per cent of the world's air spot. The list is topped by Tokyo, Other cities where commercial passengers pass through their airports. which along with New York, London attraction has improved significantly "They represent the bulk of commercial and Paris make the top four 'super include Milan (Italy), Istanbul (Turkey), real estate market activity, amounting cities'. Tehran (Iran), Madrid (Spain), Cairo to nearly three quarters of global direct (Egypt), Riyadh (Saudi Arabia), Lagos commercial real estate investment and These four were the destinations of (Nigeria), Jakarta (Indonesia) and over 90 per cent of the world's prime over 50 per cent of all foreign capital Jeddah (Saudi Arabia). office stock." invested in the "Global Top 30" cities. JLL said the top 30 global cities "With growth exceeding 7 per cent "They are the overwhelming focus account for 64 per cent of the total in the city over each of the last three of international corporations, cross-border investment into the years, it is no wonder that Mumbai retailers, hotel brands and real estate 'Global300' - an expanded index of the made a strong presence in the top investors," he added. cities in terms of their "commercial list," JLL said, adding that reforms attraction" or economic and real being undertaken by the government estate power and status. are boosting confidence in the

20 CREDAI VISAKHA VISION JUNE - JULY, 2016 Authorised Distributor: Visakhapatnam - 0891-2505601 | Madhurawada - 0891-2528790 Naidu PVC Center - 0891-2752122 | Vizianagaram - 08922-231919

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Sanitaryware | Faucets SSG TILE HOUSE #50-94-30, Gurudwara Junction, Seethammapeta Main Raod, Visakhapatnam-530016 Eamil: [email protected] Ph. 0891-6469299, Mobile. 98492 41683 TECHNOLOGY ON THE FAST TRACK: 12 CITIES TO START SINGLE-WINDOW CLEARANCE SYSTEM

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. The government has shown its intent to expedite the process of “12 major cities to switch over to single-window integrated online building permission system: Hyderabad, Kolkata, creating a single-window online Ahmedabad, Lucknow, Guwahati, Bangalore & HAL Bangalore, system for building permissions, Amritsar, Chennai, Nagpur, Jaipur, Aurangabad and Patna. with 12 major cities to now follow This will be achieved by 2nd October, 2016,” the union urban this procedure 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.

22 CREDAI VISAKHA VISION JUNE - JULY, 2016 CREDAI VISAKHA VISION JUNE - JULY, 2016 23 TECHNOLOGY RENT YOUR ROOFTOP AND GET SOLAR POWER AT A CHEAPER RATE

KOLKATA: Give us your rooftop and we will give you cheap holding back the success of the large scale rooftop solar solar power. This installations.

is the model being used by many solar power companies "Nevertheless, with the cost of solar photo voltaic cells to rake up their rooftop solar installation capacities. on the decline at a rapid rate, the cost of power generated Industrial establishments, commercial buildings, malls from solar installations has been on the decline," an and large gated communities are the target for these official said. Cost of generating power differs in different operators who would set up solar rooftops for free and sell places due to difference in the intensity of sun's rays. you power at rates that are cheaper than the local utilities. For example, the sun is the strongest Rajasthan and the intensity reduces as it moves towards east. "Around 240 sq mt of rooftop space is good enough for setting up a rooftop solar power plant that can viably sell "In Delhi, solar power can be made available between Rs power to the building and earn some decent profits," said 6.25 and Rs 7 per unit from rooftop installations. This is Sunil Jain, chief executive of Hero Future Energies. cheaper for the companies that consume large volumes of power," said Jain. Additionally, it offers a shield against "In fact, some five six companies including Hero Future frequent power cuts and hedge against rising power Energy have already entered the fray and are on the lookout costs as rooftop owners enter into long terms, mostly for large rooftop space in industrial complexes, commercial 25year, agreements for buying the power at a fixed cost. buildings, malls and gated communities," he said. In contrast, power tariffs of utilities are expected to rise at regular intervals. The model, popularly referred to as According to officials, about 8 sq mt of rooftop is required the OPEX operational expense model however, has its to set up panels to generate 1 kilo watt and a minimum limitations when it comes to gated communities. capacity of 30 kW makes an installation viable. The power generated can help building owners cut down on "There is a feeling that the rooftop belongs to the families power costs and gainfully use the roof which staying on the top floor, hence they feel that they are would otherwise remain unused. However, entitled to the power being generated from rooftop. But there are no model lease agreements legally, the roof belongs to all flat owners and the power and there is no way generated should be used for common purposes," of making these senior executive from a solar power company said. agreements between the solar "A standard format for legal documents company and the and agreements for rooftop roof owner a binding solar plants will go a long way is agreement. This increasing rooftop installations even has been one on residential apartments," he said. of the factors

24 CREDAI VISAKHA VISION JUNE - JULY, 2016 FIRST CHOICE 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.

roperty has emerged as the more government officials (68%) into Investment options and concerns first choice for investment, the property market. While real estate emerged as the Pamong serving government first choice of investment, 34% of the employees, as well as those who Peripheral locations and emerging respondents said they would invest in have already retired, with close to markets are likely to attract more financial schemes with fixed returns, half of the employees in 20 cities home buyers (as many as 74% of post retirement. Education and of India, preferring to invest in the respondents).Lack of affordable marriage of children came next, with real estate, following the 7th Pay housing and the possibility of inflation, 12% saving the 7th Pay Commission’s Commission’s salary hike. As many are the major deterrents for investing benefits for it and the remaining as 44% of government employees in real estate. 10% said they would like to upgrade across the country, wish to invest the their lifestyle. The survey noted that entire salary gains into the property Preferred locations nearly all of the respondents wish market. These are the findings of The study found that the main to avoid speculation, even with their an exhaustive survey on consumer city areas are likely benefit less, as investment in the property market. behaviour patterns of government compared to the outskirts, owing to As many as 74% of those planning to employees,by Track2Realty, a real affordability, the urge for a relaxed invest in property, did not have a house estatethink-tank group. lifestyle amidst open spaces and of their own, while 22% said they would appreciation potential. With retirement be investing in a second property The major findings of the in mind, as many as 74% of those who for rental income. Only 4% said they survey are: are investing in the property market, would invest in a weekend home. prefer emerging locations rather than 44% of the government employees established markets. Even those who Less than one-third of the respondents would invest the benefits of the 7th have retired, prefer these locations, (30%), felt that the 7th Pay Commission’s Pay Commission into the real estate. with a majority of them are already benefits would improve consumer living in such regions. sentiment. The biggest deterrent to 34% of the respondents would invest investing in the property market was the in financial schemes for retirement The quest of property is more among absence of affordable housing options gains; 12% to save money foreducation the older generation, compared to (55%), while 45% were apprehensive and marriage of children; and 10% young buyers. While one-fourths of the that inflation would eat up the benefits. would opt to upgrade their lifestyle. young generation (as many as 22%), The survey demography was a carefully wish to upgrade their lifestyle first and chosen mix of government employees Contrary to the general perception then diversify their portfolios, 78% of across hierarchy. The survey was that youngsters drive the property those above the age of 45 years wish carried out in Delhi, Noida, Gurgaon, market, officials who are close to to invest in the property market. A Ghaziabad, Mumbai, Pune, Nagpur, retirement, are more inclined to invest majority of the employees in the survey Nasik, Ahmedabad, Bangalore, Chennai, in property (as many as 78%). were closer to retirement and only a Hyderabad, Coimbatore, Kochi, Kolkata, small set were below 30 years of age. Bhubaneswar, Jaipur, Bhopal, Lucknow Metro cities with expats to attract and Patna. CREDAI VISAKHA VISION JUNE - JULY, 2016 25 HOUSE 5 TOP LUXURY PROPERTY DESTINATIONS IN INDIA Where cost of a luxury flat ranges between Rs.20--Rs.30 crore.

New Delhi

26 CREDAI VISAKHA VISION JUNE - JULY, 2016 Mumbai stay for only 2-3 days in a year,” command a higher value because The city of dreams! Spread over says Jitendra M, who is a marketing it has become a landmark in the 13,000 sq ft, this Navi Mumbai manager with a leading developer. area. Buyers pay for the brand of the residence in Palm Beach is listed on developer and it does create pricing Magicbricks with a price tag of Rs 30 Delhi variation, but buyers ultimately crore! Yet another one in Worli costs The price of convenience is a bigger choose the developer over price.” Rs 25 crore for a home spread over price. This stands true for the most 6500 sq ft! Mumbai, home to some of markets in the capital. You wish to Chennai the ultra high net worth individuals live near the metro, you are charged Up for a beach house? Or, a house has some of the highly priced a premium. You wish to buy a small that is tastefully designed to suit properties anywhere in the range of house but within an established your style sensibilities? Although Rs 2-40 crore or even more. Despite market, be ready to pay the sum. the market may be sluggish, trend the high values, there is no dearth of Although this may be true for watchers tell us that the well-heeled investors. In Bandra market, a 1BHK most Indian cities, take the case of are looking for properties customized can cost you Rs 2 crore for a living Lutyen’s Delhi or a Greater Kailash to suit their lifestyle. K Aravamudhan space of just 450 sq ft. Rental values or even Defence Colony and a Green of Neelankarai Properties says, “Such are high as well and can go up to Park. Magicbricks listings show homes are popular among expats and Rs 5 lakh. Today, space crunch has property values shooting up to Rs the rental values can go up to Rs 2 pushed Mumbai to expand beyond 25 crore! lakh. These are spacious homes and its boundaries and in areas like Navi although there is nothing grand about Mumbai, Thane and beyond. It is also interesting to note that these homes apart from space and the the neo-rich, lifestyle conscious view, some amount of renovation and Ayussh Kalia, Colliers International- native crowd and even the migrated design make it popular among tourists Mumbai says, “Luxury in Mumbai population in the city are opting and for corporate leases.” Boat Club is all about location followed by for Delhi’s luxe’ extension which is Road, Poes Garden, Adyar, Anna Nagar, apartment space. South Mumbai’s Gurgaon. In fact, Noida and Gurgaon Neelankarai and some corridors along benchmark for resale properties have been faring well amongst ECR and GST boast exquisite homes. would be valued at Rs 7-8 crore young investors willing to put in minimum. These might not have anywhere between Rs 1.5-5 crore. high-end amenities but buyers are Still developing in phases, these willing to pay for the location.” locations interest those looking for some space that is slowly Bengaluru diminishing within the city and yet Fat pay packages and a very the familiarity with the capital. cosmopolitan culture makes the city likeable. Rational property prices Pune coupled by smart innovative homes Pune is garnering interest not for the tech-savvy generation make only among the Puneiites and the the city popular among the young Mumbaikars but the NRI crowd as wealthy class. The traditional rich well. Ashutosh Singh, a Canadian may have their base in Jayanagar, citizen today with an ancestral house Indiranagar or JP Nagar but there in Patna says, “Pune is very popular is no dearth of properties priced among my Indian colleagues in up to Rs 20 crore in areas such as Canada as well. International brand Sadashivnagar, Lavelle Road, MG names have launched their projects Road, Benson Town, Cunningham in the market and although I may not Road, Kormangala, Jakkur Road, etc. be buying into this project, I would The city succeeds in attracting not like to believe that I have invested only local crowd but also those from in a city that is popular among other areas. “A number of non-locals big brands.” Rahul Kapur of Jewel from Gurgaon, Delhi and elsewhere Properties says, “Just like how the invest in luxury homes as a holiday ambience and brand of a restaurant option. They are not worried about impacts the prices of what is in the returns on their investment and menu, many such luxury properties Bangalore

CREDAI VISAKHA VISION JUNE - JULY, 2016 27 PHOTO GALLERY

General Body Meeting Chairman Sri K. Ramakrishna Rao, addressing 2nd general CSR Activity body meeting at KSR Function Hall on 06.06.2016. He was A Section Of Regular Meeting flanked by President Sri G.V.V.S. Narayana and, Hon Secretary Sri B. Srinivasa Rao.

Releasing Visakha Vision Advice Of Commissioner GVMC, Commissioner, Sri Praveen Kumar, IAS, releasing Visakha Vision (April-May Issue) Magazine of CREDAI-VSP GVMC, Commissioner, Sri Praveen Kumar, IAS, addressing at a function at JR Nagar School on 22.06.2016. Chairman students of GVMC school, JR Nagar, Old Venkojipalem, on Sri K. Ramakrishna Rao, Vice President, Sri P. Koteswara 22.06.2016. (From left) Vice President Sri P. Koteswara Rao, Rao, Hon Secretary, Sri B. Srinivasa Rao and Joint Chairman Sri K. Ramakrishna Rao and Hon Secretary Sri B. Secretaries, Sri Ch. Govinda Raju, Sri K.V.R.Raju (Ramesh), Srinivasa Rao are seen in the picture. 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.

CSR Activity CSR Activity GVMC, Commissioner, Sri Praveen Kumar, IAS, distributing Vice Chairman of VUDA Sri T. Baburao Naidu, IAS, note books and stationery to students of GVMC School, JR addressing students of GVMC School, Madhuranagar, after Nagar, Old Venkojipalem, on 22.06.2016. (From left) Sri A. distribution of note books and stationery on 27.062016. Sivanandam, Sri N. Trinadhar Rao, Sri E. Ashok Kumar, all (Sitting on the dais from left) Head Master of the School, EC members and Sri B. Srinivasa Rao, Hon Secretary, Sri P. CREDAI-VSP President Sri G.V.V.S. Narayana, Chairman Sri Koteswara Rao, Vice President and Sri K. Ramakrishna Rao, K. Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao. Chairman, are seen.

30 CREDAI VISAKHA VISION JUNE - JULY, 2016 PHOTO GALLERY

CSR Activity: The Giver And Receiver Focussed Attentton

CREDAI President Sri G.V.V.S. Narayana and VUDA Vice Students of GVMC School, Madhuranagar, attentively Chairman Sri T. Baburao Naidu, handing over packets hearing the speech delivered by the Vice Chairman, VUDA, of note books and stationery to the students of GVMC Sri T.Baburao Naidu, IAS, after distributing note books and School, Madhuranagar on 27.06.2016, as Chairman Sri K. stationery to the students as part of CREDAI-VSP's CSR Ramakrishna Rao and Hon Secretary Sri B. Srinivasa Rao activity on 27.06.2016. look on happily

Delevering a lecture

Sri Nagarjuna Rao, Assistant Commissioner Commercial All Smiles ! Taxes, addressing members of CREDAI-VSP, at the regular general body meeting held on 04.07.2016. He had enlightened MLA Sri Vasupalli Ganesh Kumar (in yellow shirt), handing members on various issues concerning payment of tax. over a packet of note books and stationery to the children of Sitting on the dais are (from left) President, Sri G.V.V.S. journalists at a function held at Visakha Jala Udyanavanam Narayana, Chairman Sri K. Ramakrishna Rao and Hon on 06.07 2016. CREDAI-VSP Vice President, Sri P. Koteswara Secretary Sri B. Srinivasa Rao. 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.

CSR Activity: Reaching Interier Places For CREDAI-VSP, President (sitting extreme left) Sri G.V.V.S. Narayana and Treasurer Sri K.S.R.K. Raju (Sai) , mingling CSR Activity with the school children of an interior school in Chalisingam A section of school children at the interior village in Ravikamatam mandal, was a pleasant and thrilling Z.Kottapatnam, in Ravikamatam mandal, where CREDAI-VSP experience. To reach this school, Sri Narayana and Sri Raju distributed note books and stationery to students as part of had to trek more than 10 km by foot on 25.07.2016. their CSR activity on 25.07. 2016.

CREDAI VISAKHA VISION JUNE - JULY, 2016 31 CREDAI VSP ACTIVITIES THROUGH MEDIA

28 CREDAI VISAKHA VISION JUNE - JULY, 2016 CREDAI VISAKHA VISION JUNE - JULY, 2016 29 TECHNOLOGY NATIONWIDE SURVEY REVEALS INVESTORS STILL BET ON REAL ESTATE 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.

he Supreme Court of India might successful despite the many incidents the property promises, is something feel developers’ pre-launches where the investors have lost their that nullifies the risk factor. It makes for Tshould be banned, yet, several money. 18% investors want ready-to- great business sense.” Indians find it a viable option to earn a move-in houses despite their high cost, quick buck. With a mindset of high risk to be safe than sorry; while 10% buyers Upcoming locations rule the roost and high gains, close to one-fourth of prefer under-construction properties as Nearly eight out of ten, a whopping the home buyers today, are investors surity of delivery. 78% home buyers feel the upcoming and feel pre-launches are the best time locations are the best places to invest to make sizeable returns. “Which asset class is completely risk- in, since the prime locations are at proof anyway,” questions Komal Varma, a saturation point and cannot give In a pan-India survey, as many as 72% a home buyer in Gurgaon. “I think, by the kind of returns an upcoming feel this is the best bet; something and large, real estate is less risky. Even location can. 18% Indians would bet that suggests why pre-launches are so in pre-launches, the kind of returns that on established locations for the fear of

34 CREDAI VISAKHA VISION JUNE - JULY, 2016 getting trapped, if the infrastructure confiident, office space as a serious Mumbai still tops the list of having projects in these upcoming locations, choice of investment, is emerging to investors pumping money into every only remain on paper. 4% investors are the extent that 34% Indians would city. This is surpringly followed by not sure about it. like to invest in office spaces. The Patna and then, Ahmedabad, Gurgaon remaining 18% maintain that it depends and Bengaluru. “It is all a question of a few years before on a number of factors and is a market- or after,” points out Praveen Tyagi, a to-market reality. Do the investors fear any price home buyer from Noida Extension. “The correction or a crash? Nearly all, a proposed infrastructure projects have Top 10 cities whopping 94%, feel that home prices to come up in the upcoming locations Top 10 cities where the Indians would will never come down. The remaining once the area gets populated and like to invest in office space today is 6% maintain that even though there is a habitation demands it.” – Ahmedabad, Chennai, Hyderabad, correction in the short term, it will gain Mumbai, Bengaluru, Gurgaon, Pune, in the medium to long-term. Despite a stagnant real estate market in Coimbatore, Kolkata and Noida. In the last few years, more than six out of terms of housing investment, top Why won’t real estate prices reduce ten respondents, as many as 62%, feel it ten cities are Bengaluru, Chennai, despite slow sales? has been under-bought in India due to Hyderabad, Pune, Coimbatore, 54% feel the forces of politicians, affordability. Only 28% think it has been Mumbai, Gurgaon, Kolkata, Nagpur and bureaucrats and black money over-bought and the remaining 10% Ahmedabad. operators, is so strong that they will maintain that it depends on the family not let the prices fall. 30% feel most of structure. Which are the cities that are home the developers have strong holding towns of investors across the capacity in the event of slow sales. The The choice of investors is nevertheless geographical boundaries to fuel the rest 16% believe it is due to the supply taking a shift. Though an apartment real estate business? and demand gap. is still one of the best bets for the The study noted that despite the investors, with 48% aggressively slow sales in India’s financial capital,

HUMOUR ADULT HUMOUR A seemingly innocent man, whose In a reverse case, a lady has age could not be assessed by his approached the court of law for divorce, appearance, approached a court, complaining about the inexplicably complaining harrowing harassment strange behaviour of her young and by the cantankerous lady at home, handsome hubby. resulting in unbearable mental agony and seeking court’s help. After lot of Questioning revealed that it was not a questioning, the compassionate judge, case of domestic violence nor a dowry who was apparently convinced of his harassment. Hence before taking a argument and bad plight, suggested that decision the judge asked the lady divorce was the only option for him. “ Your answers reveal that there was no “ But, My Lord, I can not divorce that harassment for dowry either by your lady at home” said the man pretending husband or in-laws. Also there was child-like innocence. no domestic violence. Besides your husband is a reputed sports man and in “ But Why ? You have a strong case for fact he is kabadi champion. granting divorce” “That is exactly the reasons why I seek “ I can not My Lord, because I had not divorce’’ ...intervened the lady. married the lady at home !! “ But how?” wondered the judge.

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

CREDAI VISAKHA VISION JUNE - JULY, 2016 35