Vikas Rikhye, Real Estate Blogger and Promoter

In absence of regulatory authority or a governing body, the real estate activities in India had been in highly un-organized manner but with socioecnomic awareness the real estate sector is also moving toward a positive direction.

Professional attitude of real estate companies and the presence of MNCs like CB Richard Ellis,Knight frank, Chesteron Meghraj & fast growing trend of property portals like 99Acres, Magicbriks,Indiaproperties etc are the indicaters of a “Professional Real estate” of tomorrow.

Still there is a large section which remains unorganised and non-professional. Add on of property dealers and so called Property conultant, who neither have proper knowledge nor experience in this field are making this profession as “Third Rate”. They seem to be a preffered choice of that sectionof society that believes in parellal Economy, as both can understand each other’s language very well.

Real Estate is a backbone of every economy be it a developing economy or a developed economy. In most of the developed countries real estate is a organized sector with licensed real estate agents who act as a very important intermediary between buyer and seller. The real estate agents is a specialized and organized work in developed countries where proper licenses are issued to real estate agents after going through a training procedure.An un-organized sector with no regulating authority /governing body reduce the transparency in transactions make them shady, speculative with uncertain market conditions thus making it a distant dream, for a common man, to own a property

Remedies suggested:

• Form a governing body: It is very important to form a governing body whoch has direct influence on the real estate players and which can give direction to the real estate market for its growth. 
• Fix the brokerage: there should be fixed brokerage for sale, purchase and rent deals etc in the market and no broker should charge a price above or below the market rate at any time. The prevailing rate of sale and purchase is anywhere between .5% to 2% of sale/purchase price.
• Education: learning is a very important tool for innovation and growth of an industry. If an Insurance agent is needed to clear an IRDA paper, an mutual fund seller needs to pass an AMFI exam and even a stock broker needs to clear a minimum no. of papers in order to exercise hid ticket in the stock market. So it is very important to device a paper which has a mix of mathematics and legal issues so that a real estate agent has proper knowledge on various obstacles or legal issues which can surface in a deal.
• Give License and code: After an agent is able to clear his exam then he should be issued a real estate agent license along with a code eg. xxx1986xx. Each and every agent should be provided with a unique code which will ascertain his identity and thus lead to reduction of frauds by brokers to buyer/seller.
• Get them in the Tax net: As the real estate sector was unorganized thus there is high level of tax evasion by the real estate agents. There is a remedy to prevent this. The unique code given to the real estate brokers will be given registered on legal papers of the deal and the records of same can be given to IT department. As each and every deal will be registered the brokers will be bound to disclose their brokerage.

Some of the thoughts & remedies as stated above have come from Mr. Saurabh Dhawan. Saurabh is 22 years of age and is pursuing MBA from IIPM. Saurabh is a Blogger, is promoting Medical Tourism in India

This a Guest Blog Post by Mr . Saurabh Dhawan. Saurabh is 22 years of age and is pursuing MBA from IIPM. He can be contacted at saurabh [dot] 3767 [at] gmail [dot] com.

With the passage of time the definition of luxury has changed in the last decade. Every product has its own market from guest houses to hotels to luxury hotels everyone has its own niche market to offer. Service apartment is one such type of market which is a growing market with a good demand in Metros and is being catered by Hotels and Guest houses. A service apartment is a furnished residential space which gives a homely look and has all the facilities from a fully furnished modular kitchen with all the cooking utensils, refrigeration, cooking gas, home appliances to other useful utensils in the kitchen. In the room it has Home Theater along with heating or cooling systems and other utilities which are generally found in a home and also telephone and internet connectivity. In certain cases security and power back are also prevalent. In short it is a home away from home.

The concept of service apartment is quite prevalent in western countries but it now coming up in India. Service Apartments are generally taken by corporates who have to stay for longer duration in India. When these corporates come to India they face some problem with culture, environment and food. The foreigners who come to India are not able to adjust themselves to the local food and environment and they are not able to enjoy the lifestyle they are used to.

This is where a service apartment comes to there rescue. These foreigners can cook their own food, maintain their own apartment and can also be provided with domestic help in India which is relatively cheap as compared to western countries. This helps them to feel like home and enjoy their stay in India with the best of health and spirits.

Service Apartments have a great future in Delhi NCR because it is a BPO and MNC hub, NRI tourism destination and an important diplomatic destination in South Asia.There is a constant increase in inflow of business travelers and tourists which are increasing year on year and the Medical tourism boom in coming years will supplement these demands as a service apartment can give feel of a home to a patient who can enjoy home cooked food after and before treatment.

The tariff of a service apartment can vary with the duration of stay by a traveler. Tariff for a service apartment can start from Rs. 7000/- Per month to Rs. 300000/- Per month depending on size of apartment and the level of luxury offered in the Apartment. The tariff generally includes the maintenance and water bills but may or may not include the electricity bills for the apartment. In all a service apartment have a great demand ahead in India

Vikas Rikhye, Real Estate Promoter and Blogger

In the recent past the Fast Growing Township of New Gurgaon has witnessed a
Massive growth in housing sector.

The well established real estate companies like DLF & Unitech have launched and delivered prestigious residential project. Comparatively new entrants like Bestech,Omaxe, Parsavnath Raheja & others got an opportunity to prove their competence.

All this as stated above “Township of New Gurgaon” came in to a light as a very
strong investment destination.

As it would have resulted, the investment wave in Gurgaon ,became stronger and stronger and the Secondary market shot up sky high. With all this , the basic participants in real estate game like Builders, Brokers & Investors found themselves in a Win - Win situation.

Yet there was another Important Segment of Actual-User, who had missed the boat due to unexpected increase in Real estate prices, was still awaiting an affordable housing solution.

The announcement of Master Plan 2021, gave a sigh of relief to this Important Segment of Actual-Users .But at same time it gave opportunity to many New Player to enter the real estate Game.

And now an interesting/ uninteresting era starts:

As many of The new Players started advertising launch of their new projects with luring advertisements & Broker incentives.

It has been observed by many real - estate experts that some of the projects falling in Master Plan 2021 are being launched ,where at present the basic infrastructure like roads, water, sever, provision for required Power etc. is missing.

While some of the Promoters are asking for 25% of the amount within in 45 days of booking & balance is construction linked . Even we feel every thing in fairness, yet, it raises following queries in mind:
• What is the reliability level of “Unheard of as Builders”
• Transparency level of commitments.
• Experience for delivering committed project .( for those who have not delivered any Project in the past )
• Inventor’s Risk coverage.

For a while let us be Optimist that in all the fairness the project is delivered , Yet another question mark nags the mind that will there be basic infrastructure like roads, water, sever, provision for required Power etc. where presently nothing is visible on the ground except open fields & in some cases abandoned uneven patches of land.

Will somebody guide me to clear my doubt as well of others who agree with as stated above.

Vikas Rikhye,Real Estate Blogger

This time we are not taking about Sky high real estate prices or inflation in Gurgaon ,but sky high forthcoming buildings in Gurgaon.It is understood from authentic sources that Haryana Urban Development Authority (HUDA) has removed height restriction for all future group housing & Commercial projects in the new sectors that are a part of Gurgaon Master Plan 2021.

According to the sources, the height limit till now was 90 meters. However, the Builders/ Developer aspiring for skyscrapers will have to take permission from other competent authorities like Airport Authority of India, Fire Authorities and other government bodies, governing Safety Rules.

It is further understood from the sources that this policy has been framed , keeping in mind the National Building Code (Part-4) that allows the removal of height restrictions on the buildings if the modern / latest technologies are used for structural design & fire fighting.

The news seems to be very encouraging & interesting, but, it raises in mind, a big Question Mark, that:
Will the present infrastructure in Gurgaon , be able to take the load of this Unexpected growth ?

Vikas Rikhye,India Real Estate Blogger

Gurgaon is a city that is rapidly moving towards Globalized economy, but it the city requires, an effective planning for improvement in basic infrastructure to truly transform into be “world-class city” in coming years.An effective Transport system is the base for any infrastructure development.

Although eight lane toll expressway between Gurgaon and New Delhi, that provides non-stop connectivity to the I.G.I and the Domestic Airport and to Dhaulakuan in Delhi over a distance of 28 kilometers (18 miles), and includes 7 flyovers and 5 underpasses along the stretch, has made a remarkable comfort level to the commuters, still for main city of Gurgaon , a well planned efficient surface transport planning seems to be the basic need of the day.

While the road layout in the city is quite well-planned, but a drives to improve the condition of roads is very badly required.

Besides roads, the main problem of the city is its virtually non-existent city public transport. A handful of local buses plying on a few routes & besides cycle rickshaw the only other form of public transport is shared auto- rickshaw which are generally overcrowded.

Mainly Taxi service in Gurgaon is limited to Airport/Railway Station dropping/ picking. Besides taxis for the use of the ever growing call center and information technology industry. Gurgaon currently has 5 types of taxis. Normal Black top yellows taxis, auto rickshaw(the cheapest form of taxis in Gurgaon), tourist taxis, radio taxis and white taxis.

Generally, people in Gurgaon prefer cars to two-wheelers because of the dusty nature of the region, extreme weather condition, and frequent two-wheeler accidents. Most of the people in new township, own cars as the cream of the delhites have moved to Gurgaon. But an average white collar job person is desperately looking forward to improved means of transport system.

There seems to be only ray of hope when “Delhi Metro Rail Corporation” starts its operation to Gurgaon as expected by January 2010.

To be continued…

Vikas Rikhye,India Real Estate Blogger

Gurgaon ! privileged status of “Cyber City” battling a power crisis that has seen power cuts over 12 hours , there is no immediate relief in sight.

Most of the people who moved to Gurgaon for a better quality of life, they , now feel cheated & cursing the day they moved to Gurgaon.

The life becomes miserable, when the whole town plunges into darkness in peak of summer, as one has to surrender to the invertors and then to generators, an expensive proposition besides being unfriendly to the environment.

Students in the city are invariably the biggest sufferers. Long hours of power cut and exhausted inverters have made their lives harder.

A common man is in total confused state of mind as the electricity “Complaint telephones “are usually un-attended or give a busy tone. Personal complaints lead to no results, With repeated assurances of officials, consumers have learnt the hard way not to trust officials.

Tired of long & frequent power cuts and false promises of improvement, created almost a situation of riots in the city as News Headlines of Hindustan Times dated May 7th 2008 read as “Power riots erupt in city, Gurgaon” it further added “People stone power offices”

Is that the “Millennium City” we dreamt of ?

Mr. Vikas Rikhye,Realtor,Real Estate Blogger and Real Estate Promoter

Despite the fact that countries like U.A.E (Dubai) Australia, New Zealand & others are making best of their efforts to attract foreign investors to invest in real estate sector but the fact remains that US. China & India are the preferred ones’

According to a survey conducted by Association of Foreign Investors in Real Estate (AFIRE), amongst the global investors, US has retained its top position, while China ranked 2nd followed by India ranking 3rd.

It is understood that in the current survey China moved to second place with 21.4%votes & India was preferred by only 16.7%, whereas in 2006, China got 14.6% votes while India had 18% and was ranked in the second position.

The investors confidence seems stronger in China, apparently because of better appreciation chances offered as compared to opportunities in India.

On the other hand, the US, whose economy continues facing the threat of a recession, still managed to retain the ‘most preferred destination´ tag for real estate investment.

Since now India is growing ahead with overall progress in real estate & infrastructure ,we, therefore look forward to its ranking as No-1

Vikas Rikhye,Real Estate Blogger,Real Estate Promoter and Realtor

On 15th Feburary the Government of West Bengal has given possession of 12500 Acres of land (at Nayachar Island) to developer PCR chemical for developing Chemical SEZ

According to sources,PCR Chemicals Pvt Ltd is a joint venture between New Kolkata International Development (NKID) Pvt Ltd and West Bengal Industrial Development Corporation in which the former holds 51% and the latter 49%.

The New Kolkata International Development (NKID) is a consortium between Unitech (40%), Salim Group of Indonesia (40%) and Universal Success of Indonesia (20%). It entered into a development agreement with West Bengal Government for development of mega infrastructure in the State of West Bengal.

Thus it gives a dominating edge to Unitech and the news resulted a positive boost to Unitech in BSE

Vikas Rikhye,Real Estate Blogger

It is observed that Singapore based companies & investors from Singapore are taking a great interest in investing in Real estate in India, as recently a Singapore based developer Ascendas, raised a REIT( Real Estate investment Trust) of about $500 million to invest in India in real-estate market.

It is understood from sources that while DLF, the country’s largest real-estate company is awaiting regulatory approvals to raise over $2-25 billion from Singapore market, for listing its subsidiary DLF office trust , Unitech has already got regulatory approval to raise $700 million (approximately Rupees 2800 crore) through a public offer in Singapore Stock Exchange,The company shall list its subsidiary in Singapore as Unitech Office Trust (UOT) A Real Estate investment Trust (REIT).The sources add that Unitech Limited has appointed Deutsche Bank, JP Morgan & UBS as bankers.

Unitech Limited is already being one of ‘Leaders’ in Indian real estate market has invested in Real estate development project like, Housing, Hospitality, Commercial properties, Education, , IT Parks ,Infrastructure related projects etc.

It seems that now, Unitech Singapore REIT shall acquire initially, SEZ & IT Projects of the company in India which are under construction & shall also review the new commercial projects before construction.. with a strategy of monetizing its stake in most professional method.

One also understands that “REIT in Real estate seems quite similar to “REMF” Real-estate mutual funds which are keenly awaited by Indian Investors.

Unitech Limited aiming to be Number-1 real estate developer is spreading its wings now to South India. I understand from some sources that very soon M/s Untitech Limited would be announcing its two Joint-venture deals in Chennai and Hyderabad .

The sources add that these JVs would have the main focus on Binny land near Perambur in north Chennai & Shamshadabad around Hyderabad. involving over 1,400 acres of prime land.

The sources also highlight the following:

• Unitech would shortly announce its 50:50 joint venture deal with serial entrepreneur Prasad V Potluri’s PVP Enterprises that owns around 1,300 acres of land bank in Hyderabad’s Shamshadabad region.

• In the next few weeks, Unitech may also unveil, a 55:45 joint venture deal for developing 8.8 million sq ft of residential property on the 70-acre Binny land near Perambur in north Chennai, owned by SSI

• It is believed that development on the Binny land alone involves construction of over 5,000 residential flats, besides retail and commercial space. Even at a reasonably price level of Rs 5,000 per sq ft, the sale proceeds of developing 8.8 million sq ft comes to around Rs 4,400 crore.

• It is understood that the environment clearance has been obtained for the project.

With the information perceived as stated above, “Adds a feather in the cap” of Unitech’s progressive approach towards becoming India’s Number One Real estate developer.