A QUARTERLY REAL ESTATE

NEWS BULLETIN

skylar
Welcome to Skylar - Tata Housing's quarterly
realty bulletin, through which we endeavor to
bring you the must know on housing & Indian
realty market, buyers guides & reviews, interior
& exterior design concepts & home
improvement tips, updates on our various
projects and activities and discussions on a
range of other interesting topics related to the
real estate sector.

July 2014

ISSUE 10 VOL III

CONTENTS

cover feature

04

Realty Brokers

06

Green Buildings

08

area watch

10

Call 1800 3004 8282. tatahousing.in/myst

new project launch

awards galore

14

16

news and information

20

cover feature

BUDGET USHERS

'ACHCHE DIN'

FOR REAL ESTATE

The Indian real estate sector has come

a long way and is one of the fastest
growing markets in the world today. A
large population base, rising income
levels and rapid urbanisation has
continued to fuel demand for housing
and support services across the
country. However, for a long time, the
supply side has not been able to keep
pace with the constantly increasing
demand for houses leading to a steep
rise in rental values and a huge
shortage of urban housing in the
country. As per housing ministry
statistics, there is a shortage of around
18.8 million houses in the country,
majority being in the economically
weaker and low income segments.
In such a situation, Prime Minister
Narendra Modi's pledge to ensure
'Housing for All' by 2022 promised to
be a game changer for the housing
sector in the country. The Finance
Minister in the Union Budget 2014-15
announced a series of measures to
bring investment into the sector while
giving special emphasis to affordable
housing. The announcements like
development of 100 new 'smart' cities
and planning for low-cost housing
were areas of repeated thrust by the
government in the budget. All
infrastructure related announcements
focus evenly on housing and
development auguring well for the
future of the realty sector in the
country. In addition, the central bank's
recent announcements easing norms
for banks to raise long-term funds for
financing low-cost housing projects
will provide additional stimulus to the

04

segment, taking a step closer towards

Modi government's vision of housingfor-all.
A slew of recent announcements will
play a transformative role for Indian
housing sector.
Development of 100 Smart Cities:
Taking forward the promise under the
BJP's election manifesto, the Finance
Minister, in his budget speech,
mentioned the development of 100
smart cities for the emerging neomiddle class, which aspires for a better
standard of living. This is an important
step to accommodate the burgeoning
population migrating towards urban
settlements. The estimates suggest
that nearly 600 million Indians will be
living in cities by 2030, up from 290
million as reported in the 2001 census.
Moreover, Indian cities are in need of
investment and innovation, and the
government's attention to these
issues is a welcome move.
The term 'smart city' encompasses a
vision of an urban space that is
ecologically friendly, technologically
integrated and meticulously planned,
with a particular reliance on the use of
information technology to improve
efficiency. The initiative has received
an initial financial allocation of Rs.
7,600 crore to get the projects going
and it is assured that more will be
allocated once things have moved
forward. Given the fact that the
existing cities, which accommodate a
bulk of the population, waste a lot of
resources and are inefficient in terms

of energy consumption, they urgently

require improved solutions. It would
be better to treat the smart city
proposal by the government as a kind
of an experiment, whose lessons and
experience could be used to develop
cities in general. Moreover, foreign
direct investment (FDI) norms have
been relaxed to attract investors to
build them. In addition, India has
spoken to France, Japan and
Singapore about collaborating on the
projects.
Affordable Housing: In continuation
of the proposals announced in the
Union Budget for the introduction of
schemes to incentivise the
development of low cost housing and
allocation of a sum of Rs. 40 billion for
National Housing Bank, the Reserve
Bank of India (RBI) has introduced
guidelines to provide an impetus to
the 'housing for all' vision. Banks can
now raise long-term funds for
financing affordable housing, leading
to cheaper credit for such projects.
Besides, banks will not be required to
set aside additional funds for meeting
priority sector requirements thus
addressing their asset-liability
mismatches.
The RBI has also tweaked the
definition of affordable houses and
has said that home loans up to Rs. 50
lakh in metros and Rs. 40 lakh in nonmetros given by banks from the
proceeds of long-term bonds will
qualify as affordable housing loans.
RBI will also periodically review the
definition of affordable housing on

account of inflation. This move by the

RBI will help meet the demand for
housing and make houses affordable
to some extent, helping the developer
as well as the consumer.
It is a great opportunity for the
developers to tap the market
potential of providing affordable
homes to the aspirational middleincome group buyers. Tata Housing, as
a responsible developer, has already
pioneered the concept of green affordable housing and is developing
four townships across India under the
brand Tata Value Homes (a 100
percent subsidiary of Tata Housing)
which offers value and affordable
housing in Boisar, Vasind,
Ahmedabad, and Bengaluru.
Affordable housing is a huge market
for the company.
Real Estate Investment Trusts
(REITs): The introduction of tax
incentives for REITs in the Union
Budget is another positive move for
the industry. It provides the sponsor a
favourable investment opportunity by
giving liquidity thus enabling them to
invest in other projects. At the same
time, it provides the investors with an
avenue to invest in rental income
generating properties which are less
risky compared to under-construction
properties. This is bound to give the
much needed fillip to the sector.

would address the issue and possibly

simplify the REIT taxation regime.
REITs will provide a major impetus to
the affordable housing sector.
Foreign Direct Investment: FDI
norms have also been relaxed to
attract investors. The relaxation is
likely to bring in opportunities for
cheaper capital for smaller projects.
Foreign investors should capitalise on
the sops announced in the budget for
India's real estate sector.
The Government of India is playing an
instrumental role in accelerating the
growth of this sector. With the
government trying to introduce
developer and buyer friendly policies,
the outlook for the real estate sector
in 2014 looks promising. However, to
achieve the goal of 'housing for all,' it
is essential to operate in a partnership
mode and Tata Housing, as a
developer is definitely open to
working with the government to
provide housing to every citizen of
the country. The realty sector seems
well-poised to now meet the
aspirations of the common populace
lying at the core of nation-building.

However, complete tax pass through

is essential for a REIT regime to be
effectively implemented. And thus it is
hoped that the Finance Minister

05

Realty Brokers

PROPERTY BUYERS TO

GAIN AS GOVT MOVES TO

REGULATE BROKERS

With incidents galore of property

buyers getting duped by agents
and brokers, the Centre is planning
to make it mandatory for real estate
agents to get themselves registered
with the proposed real estate
regulatory authority (RERA).

setting up of a RERA in every state.

A senior government functionary
told HT that the ministry was
expected to formally approve the
changes to the bill soon, adding
that a cabinet note would be moved
after that.

The housing ministry also intends to

expand the purview of RERA to
cover commercial as well as
residential real estate.

The original bill was referred to the

parliamentary standing committee,
which made several
recommendations in its report
submitted to the housing and urban
poverty alleviation ministry in
February 2014.

The Real Estate (Regulation and

Development) Bill introduced in the
Rajya Sabha by the UPA
government last August covered
only residential real estate. Also, it
required just real estate developers
not property dealers/agents
to register with RERA.
The two changes, an official said,
would help protect buyer's interest
from unscrupulous agents and
property brokers. The bill proposes

06

A third recommendation to bring

smaller real estate projects
coming up in plot sizes less than
1,000 sq. mt. under the purview
of RERA was rejected by the
ministry.
This would have made it mandatory
for small builders to provide a host
of details to the regulator

including approved layout plan,

timeline, cost and the sale
agreement that prospective buyers
will have to sign before it would
be allowed to advertise or launch
the project. Failure to do so would
invite upto a maximum three years
imprisonment or fine of upto 10%
of the total project cost.
The exclusion of projects smaller
than 1,000 sq. mt. from the purview
of RERA could lead to the exclusion
of a large number of small housing
projects, the panel had said.
Violation from the contractual
agreement will invite upto a year
behind bars or fine of upto 5% of
project cost.
The bill also has safeguards for
developers. Buyers who default on
payment would also have to cough
up fines.

1800 3004 8282

Green Buildings

INDIAN GREEN BUILDING COUNT

RISES OVER 2 BILLION SQ. FT.
Rising Environment
Consciousness
Amongst The New Age
Consumer

08

The green building movement in India

has gathered pace and has achieved a
major landmark of crossing two billion
sq. ft. of registered buildings spanning
over 2,400 projects. India is next only to
the US.

percent higher for commercial buildings

about 10 years ago, with the payback
period being 8-10 years, has now come
down to barely 3-5 percent higher with
payback in less than three years, he
explained.

This is a significant development for the

green building movement in the
country and has caught the imagination
of commercial buildings, private and
public institutions, Government offices,
heritage buildings and homes as the
cost to go green has come down over
the years,
S Raghupathy, Executive Director of CIIGodrej Green Business Council, said.

Heritage Buildings
Old and heritage buildings too have
begun to attract people to opt for the
rating system.

The cost of setting up a green building

varies depending upon its utility
whether it is a commercial office, a
housing township or an individual
house. What used to be about 10-15

He said that it took nearly nine years for

the country to have a registered base of
one billion sq. ft. of green buildings
after the first green building was
constructed around 2003-04.

airports in Bangalore and Mumbai

managed by GVK, and in Hyderabad
and New Delhi managed by GMR have
been rated for their environmentfriendly construction.

And in two years, this number has

doubled, showing growing interest to
take the movement forward across
various segments.

Today Tata Housing is one of the largest

contributors to pre-certified green
buildings with more than 55 million sq.
ft. under various stages of development
being built under the guidelines drawn
by IGBC. All projects by Tata Housing
are pre-certified sustainable
developments by IGBC.

All these registered buildings are

expected to be completed within the
next two years, he told Business Line.

In one such innovative approach, the

Tata Group headquarters Bombay
House, which is a heritage building, has
become the first to be certified with the
Green Existing Building Rating under
the Indian Green Building Council.

Given the current pace, CII-GBC

expects to have a green building cover
of 10 billion sq. ft. by 2022, he said.

This shows that there are corporate

entities and people who are committed
to achieving this and lead by example,
explained Mr. S Raghupathy.

Leading the Change

The adoption of green building ratings
started with large corporate houses
such as the Tatas. Recently, modern

09

area watch

Area watch Banshankri - Bengaluru

TRANQUIL LIVING GETS A NEW MEANING
With a sustainable design approach
in residential housing, The Promont
is a true luxury living experience
atop a hill amidst the beauty of
nature.
Banashankari is one of Bengaluru's
prominent residential areas, which
has seen steady appreciation in
property price rates in recent times.
This hub of major IT/ ITES
companies has witnessed
astounding influx of social
infrastructure flanking renowned
educational institutions, world class
hospitals and entertainment
centres, which makes it a viable
proposition, both as an investment
and a residential preference.

10

According to Girish K S, MRICS,

Local Director, Strategic Consulting,
Jones Lang LaSalle Property
Consultants (India), Banashankari is
the most preferred residential spot
for quite some time now. With the
completion of Ring Road and the
operation of Phase-1 of Metro, the
area has become accessible from
different parts of Bengaluru,
besides improving the overall
micro-market.
In a similar vein, Ram Chandnani,
Deputy Managing Director South
India, CBRE South Asia Pvt. Ltd,
says, It is a good residential
catchment due to its proximity to
the IT corridor and some other
prominent residential locations in

the south. It is currently a

comparatively affordable location.
The population explosion in India
has spilled into all corners of the
country, but especially into cities
such as Bengaluru. Compared to
the population of the year 2000,
there has been a growth of more
than 40 percent. By 2030, India's
population growth is likely to cross
the 60 percent mark, with more
than 60 crore people living in the
main cities.
Interestingly, more than 60 percent
of Bengaluru's cityscape is now
occupied by professionals from the
IT and ITES sector an industry
that will continue to generate a

massive number of jobs over the

next few years. In such a scenario,
integrated townships are the only
viable residential option for
professionals looking for the
security and comfort of a modern
lifestyle far enough from the
concrete jungle, but yet accessible
from the workplace.
For instance, in its quest to respond
to rapidly changing market trends
and client preferences in the city,
Tata Housing is developing a crest
of majestic tower on top of
Bengaluru's exclusive hill, The
Promont, which is based on the
concept of responsible luxur and is
designed by architect Moshe
Safdie. The premium project offers

11

area watch

excellent connectivity to Electronics

City via NICE corridor.
The niche project offers 320 doubleheight terraced garden residences; the
key concept advocates sustainable
architecture and design as well as
respect for the environment in the use
of building materials, space, energy and
water. The project is being designed in
a way to prevent energy from escaping
while allowing sun-rays to penetrate in
the expansive residences, which
include 3 and 4 bedroom apartments
and penthouses, with spaces ranging
from 2,376 sq. ft. and 6,410 sq. ft.
The location is exceptional providing
each residence spectacular views of the
open space within which there are
parkland and water bodies. The space
and lifestyle that the luxury projects in
areas such as Banashankari offer
against a backdrop of unsullied charm

12

and grandeur is clearly lacking in

most other cities. A luxury
apartment in Banashankari is still an
attainable reality. No premium
location of any other major Indian
city offers such prices in the luxury
segment.
Reasonable prices for luxury homes
of excellent construction quality in
posh localities reflect a long
standing market reality in Bengaluru.
It has always been driven largely by
genuine end-users. Real estate prices
in this city have never surpassed
logic. In its endeavour to build a
premium green township project,
the construction of The Promont is
backed by a world-class team
comprising master-planners,
architects, landscape architects,
infrastructure consultants to name a
few.

The result is extraordinary residential

spaces with breathtaking views,
bold, inspiring design, exquisitely
nuanced finishes, materials and
fixtures, and a level of construction
never seen before in residential
development in a city like
Bengaluru.
Ongoing and planned infrastructure
projects, including Metro are likely
to propel the housing investment
market in these areas. Considering
the predominantly healthy market
characteristics and the superior
offerings involved, Banashankari,
which is located in South Bengaluru,
and its adjacent locations are still
reasonably priced, offering a
generous lifestyle and a very high
ranking in capital value appreciation.

new project launch

TATA HOUSING EXPANDS ITS PRESENCE IN NCR LUXURY SPACE

Announces first of its kind gated community villa development at Sohna Road
Tata Housing Development Company,
India's fastest growing real estate
developer in the luxury space,
strengthened its presence in the high-end
luxury segment in NCR by launching its
4th project Arabella. Strategically located
immediately off the Sohna Haryana
Highway, Arabella is inspired by the
Aravallis and has been aesthetically
designed as an extension to the lush green
surroundings.
Designed by renowned architects Perkins
Eastman, USA., Arabella is built across
approximately 35 acres and offers 4 and 5
BHK king sized villas right in the heart of
Gurgaon Sohna Road. Designed with the
theme of Aravalli ridge and view of the
ridges, Arabella is a villa development with
around 150 villas of typologies. The
location and orientation of villas on the
site integrates with the central open green
spaces via the backyard or is inward
looking; adapted to the traditional design
of courtyards. The private lifts, outdoor
pools, rooftop landscaped entertainment
areas, solar hot water heating, VRV airconditioning, form a part of the everyday
lifestyle of India's aspirational Urban Elites.

development at Sohna road offering a different

preposition for the new age luxury seekers.
As the project is inspired by the Aravallis, every
little detail has been given utmost importance.
The project also accommodates a natural lake,
a rock garden and a neighborhood farming
patch which helps the residents make a direct
connection with the natural surroundings.
The development is located immediately off
the Sohna Haryana Highway and is well
nestled between lush greens farmlands on 3
sides and a dense green buffer planned along
the entire highway. The site has beautiful
distant panoramic views of the Aravallis and
the masterplan has been sensitively designed
as an extension of the lush green surroundings
of this unique geographical setting.

Commenting on the launch of this

project, Tata Housings spokesperson
said, The last decade has witnessed a
substantial increase in demand for superluxury residences which have expansive
living spaces and extremely sophisticated
design and specifications by the new class of
wealthy consumers, popularly known as
Urban Elites, who have formed an
egalitarian social change. With Arabella,
Tata Housing is giving a golden opportunity
to its consumers to own their dream villas
and experience the mesmerizing views of
Aravalli Hills.
Tata Housings spokesperson further
added This will be a one of its kind

14

15

awards galore

TATA HOUSING BAGS TWO AWARDS

AT THE PRESTIGIOUS INTERNATIONAL
PROPERTY AWARDS
Myst and Riva Residences win laurels at
Asia Pacific 2014
Mumbai, June 5, 2014: Tata Housing

levels of achievement by companies

team at TATA Housing, I would like to

Development Co. Ltd., India's fastest

operating in all sectors of the

thank the jury for this honor."

growing real estate development

property and real estate industry.

company with over 70 million sq. ft.

These awards are judged by a highly

The Asia Pacific Property Awards are

under various stages of development

experienced team of professionals

part of the long-established

has once again triumphed the most

who cover the whole range of

International Property Awards and its

prestigious Asia Pacific Property

property disciplines.

International Property Awards), 5th

On being successful at the awards,

global industry. Founded 20 years

year in a row bagging two coveted

Mr. Brotin Banerjee, Chief

ago, these accolades distinguish

awards. Tata Housing has received

Executive Officer and Managing

excellence in the property industry

the prestigious Highly Commended

Director, TATA Housing said, "It gives

worldwide and promote

Leisure Development India category

me immense pleasure to receive these

international standards. For the last

for The Myst and Highly Commended

awards. The awards are a testimony to

five years consecutively, Tata Housing

Retirement Development India

the high standards and expertise of

has been acknowledged with

TATA Housing to develop landmark

multiple accolades at this prestigious

projects in the country. This recognition

annual symposium demonstrating it

The International Property Awards is

will only make us endeavor to raise the

is again at the forefront of the real

a world-renowned mark of

bar and do better projects with every

estate industry in Asia.

excellence and celebrates the highest

passing year. On behalf of the entire

category for Riva Residences.

16

winners' logo is recognized as a

symbol of excellence throughout the

Awards 2014 (part of the

17

awards galore

A home on Bengalurus only hill.

Like the nest things in the world,
its a limited edition.

Held at the Shangri-la Hotel in

The Asia Pacific Property Awards

Kuala Lumpur on Friday (May 9th),

recognizes 40 categories of distinction

the Asia Pacific Property Awards

within the fields of development,

received entries from companies in

interior design, architecture, and real

26 countries across the Asia Pacific

estate. Each project was judged by a

region. Hundreds of Asia Pacific's

team of 65 professionals from the

premier developers, architects,

property discipline. They are

interior designers and real estate

ascertained based on quality of design,

agents attended the event. Lord

construction and presentation of

Courtown from the House of Lords

individual properties as well as interior,

in the British Parliament was

architecture, and marketing.

present on stage in his capacity as

chairman of the architecture and

Tata Housing has been receiving

interior design categories

various industry recognitions and

committee while each winning

accolades, both on domestic and

company was presented with either

international platforms.

BANASHANKARI

a 'Highly Commended' or '5-Star'

award.
1800 3004 8282

18

news and information

BUILDERS GO E-WAY; LAUNCH PORTALS TO LET

CUSTOMERS BUY HOME ONLINE
but also extended to buyers in tier-2
cities.

Until recently, real estate portals were

used by home buyers to research on
floor plans and price of apartments, but
builders are taking this process to the
next level: you can now buy a home
online.
With growing internet penetration,
builders have realised the potential of
the online space in selling homes and
some have even tasted success.
Mumbai-based Lodha group has
generated over 100 bookings through
its online portal for its new township
project Palava in Navi Mumbai.
"We see the online space offering the
potential for us to connect with
consumers in new ways across the
engagement cycle, from first contact to
providing basic information all the way
to bookings and sales," says a
spokesman of the Lodha Group.
Earlier this year, Tata Value Homes, a
100% subsidiary of Tata Housing, sold
over 200 apartments across five of its
projects in a fourday online campaign.
It had earlier sold 50 homes online
during the Google Online Shopping
Festival.
"About 70-80% of the home search
happens online which prompted us to
take the next step and offer the option
of buying a home online," says Rajeeb
Dash, head marketing services at Tata
Housing.

20

house is allotted to him. The buyer can

then complete further payments and
formalities online or offline.
However, there's a catch: buyers need
to think twice before they make such a
purchase as the online booking
amount is not refundable.
"Buying a home is a high involvement
decision so it will have to be a mix of an
online and offline model. That said,
there is a small segment of buyers such
as investors and NRI buyers who could
complete the transaction online" says
Sudhir Pai, business head at
MagicBricks.com.
While online property buying is still at
its nascent stage when compared to
buying clothes, electronics or books,
real estate companies have seen an
uptick in web transactions of late.
Buying a home online has several
advantages, say builders.

"The exercise was targeted at not only

the primary local market but also the
NRI base which is more open to such
transactions," he adds.

Buyer cannot only see a large number

of properties in the market, obtain
details such as home values and asking
price, but also search for a home in a
specific neighborhood or area of
choice.

Tata Housing has tied up with banks

like IDBI to facilitate sales of homes
online. A buyer can narrow down the
apartment he wants to buy, pay an
online booking amount of Rs. 50,000
through a credit or debit card and the

A recent study by Google India showed

that over 50% of real estate buying
decisions are influenced by internet
research and the phenomenon of
researching online for real estate
information was not limited to metros

Nowadays, builders are more

transparent and offer all the project
details online, which eases the due
diligence process for buyers, says Surjit
Singh, president-marketing, RNA Corp.
In its residential project, RNA Viva, the
company has installed cameras at the
project site which allows the buyer to
check real time progress and updates of
the project online.
As the amount of quality information
listed on these property websites is
increasing, the online business is
expected to grow at a CAGR of 40-60%
in the next five years, says Sandeep
Singh, chief executive officer at Century
21 India, a real estate franchiser.
Builders anticipate the online space will
play a major role in home sales. For
them, it is one of the cheapest options
to sell homes. "Typically, the online
marketing spend for every 1,000 homes
sold is around Rs. 2-3 crore," says Arjun
Aggarwal, chief executive officer,
Bhartiya City, on the investment in
online space. Online housing portals
are betting big on this trend.
"As the buying decision is moving
online, we will soon see the 'Add to
Cart' option even on realty portals," says
Advitiya Sharma, co-founder of
Housing.com, a realty portal.
But buying a home online also takes
the security risks to another level.
"People need to take basic safeguards
and verify the genuineness of the
information as the transaction involves
big money," says Mudassir Zaidi,
national director, residential agency,
Knight Frank India.

CORPORATE OFFICE:

TATA Housing Development Co. Ltd.

12th Floor, Times Tower, Kamala Mills, Compound
Senapati Bapat Marg, Lower Parel
Mumbai - 400013
Tel: +91 22 6661 4444
Fax: +91 22 6661 4452

www.tatahousing.in

For any comments, suggestions or queries on this newsletter,

please contact Amit Nanda, Manager - Marketing Communications at
amitnanda@tatahousing.com

Copyrights 2014. TATA Housing. All rights reserved.

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