Property & Wealth_Apr 2013

98726-35220, 98156-01347

newsdesk 15

hotspots 19 The Senior/Assisted Living Sector In India 28

Out-Of-Town Retail - The Viability Of Value 30

Compact Comfort - The Enduring Studio Apartment 32

With Gold Prices Sinking, What Is The Future Of Residential Real Estate? 34

DLF Skill Centre Inaugurated in Mullanpur 36

Parsvnath’s Red Fort Tower 38

What could a young IT professional from Bangalore, a middle-aged entrepreneur from Ludhiana with children going to college in London, a diamond trader from Mumbai or a young, successful doctor from New Delhi have in common? Investment in property abroad is catching on. What once used to be the stuff what “dreams are made of” has now become an attainable wish, for many.

15

08contents April 2013

04

propertywise

COVER STORY

PROPERTY & WEALTH VOL 2, ISSUE 08, APRIL 2013

home abroadIndians Buying Property Overseas

be a prosperity seeker 44

quotemagic 46

eyecatchers 47

Money Digital 48

44prosperityseekplanetsavers 50

bookshelf 51

Towards Better Life

Insurance 52

Vaastu Entrance 54

softcorner 56

Publisher & Editor-in-ChiefJasmeet [email protected]

Editor Pankaj Sharma [email protected]

Feature Writers Satpal Kataria, K.Singh, Rupinder PD, Sheetal Singh

Art Director Rajesh Kumar

Graphics TeamGagan, Sanju

Advertisement & SalesDirector Marketing: Sandeep Kapoor (M) 9818510511, [email protected] Sales & Advt: Ajay Gupta(M) 9216841278

Sales & SubscriptionMr. Ajay Gupta(M) 9216841278

Photography Rohit Bhatia

Pre Press Team: NBC, GopalProduction Team: Upinder, Vikas, Vijay

Advisory BoardHarpreet Pooja & Associates Architects Rajiv Gupta & Associates Chartered Accountant Vikas Chatrath, Advocate

Printed & Published by Sh. Jasmeet Singh at Plot No. 437-A, Industrial Area Phase-2, Chandigarh.Owned by Sh. Jasmeet Singh,220, Sector 19-A, Chandigarh & Printed at Savitar Press, Plot No. 820, Ind. Area Ph-2, Chandigarh.

CONTRIBUTORS AND ASSOCIATES

contentsApril 2013

05PROPERTY & WEALTH VOL 2, ISSUE 08, APRIL 2013

editorial

about this issue

“Bas chauke se khush? Pyaas badhao, chhakka wakka

lagao!!” (Are you satisfied just hitting fours? How about

hitting some sixes!!”) One of the most delightful television

advertisements in recent times, the new Limca campaign

features pretty Kareena Kapoor saying so little and yet

so much. With a stylish wave of her hand signalling a

boundary, the diva spells out this ‘extra’ motivational

mantra, prodding viewers on to savour the lemony cold

drink.

Apart from being entertaining, the advertisement does

seem to have a slightly philosophical message. Most of us

would agree that going for that something extra, something

elusive and big in life can always be considered a special

thing to do, an almost life-defining activity. And when it

comes to investment in real estate on foreign shores, the

sky is indeed the limit. Obtaining an address of your own in

a foreign land is definitely a “pyaas badhao” achievement!

The number of buyers who actually end up investing

abroad is still small, but if large property consultants such

as Jones Lang LaSalle, CB Richard Ellis, Knight Frank are

to be believed; they receive at least a dozen enquiries a

week, asking for information on investment in property

overseas. The enquirers aren’t generally rookies, or first

timers feeling their way around the property market.

They’re usually smart, well-travelled people who’ve already

done a great deal of research on the internet. But beware,

every asset class comes with its own pros and cons. In the

case of investment in real estate abroad, lack of awareness

about local market conditions can prove destructive. So,

play safe. Spend time in research and engage the best in

the business. Best of luck!

A Foreign Thirst

Jasmeet Dhamija Editor-in-Chief

With the introduction of the liberalized remittance scheme

under the Foreign Exchange Management Act, a growing

number of Indian investors are looking to bite into the slice

of the global real estate pie. Our Cover Story this month

takes a peek at various prominent real estate markets

across the world.

Senior housing is a $25 billion industry worldwide. India

has a lot of catching up to do in this sector to be able to

meet up with a growing requirement of old age homes,

as they are generally referred to. In a another interesting

write-up received from a Jones Lang LaSalle expert, we

take a look at a relatively new, but fast-developing concept

called Studio Apartments.

The much-awaited product guidelines on life insurance

policies has recently been notified in the official Gazette

of India. Traditional life insurance products will now come

with enhanced benefits for policyholders. In “Towards

Better Life Insurance” on pg 52 we take a look at what all

to expect shortly in the insurance market.

A digital currency first described in a 2008 paper by

pseudonymous developer Satoshi Nakamato, Bitcoin is an

experimental, decentralized currency that enables instant

payments to anyone, anywhere in the world. Bitcoin

is everywhere right now. It’s in the news when value is

dropping, spiking and dropping again. Check out “Money

Digital” in this copy to know more.

The entrance to your home or office is very important. In

our Vaastu feature this month, renowned Vaastu expert

Mr. Naresh Singhal gives us some tips that can prove

beneficial for us.

Pankaj SharmaEditor

06 PROPERTY & WEALTH VOL 2, ISSUE 08, APRIL 2013

Cover Story

The globalisation tide has broken down many of the barriers that previously inhibited investment in foreign countries. Who could have imagined, not very long ago, that common people like you and me would be able to invest in another country around the world. Whether directly or through a financial intermediary. While investment in a foreign land isn’t everybody’s cup of tea, you’ll find more and more examples of people now taking the plunge. And now, with the global economic scenario in its favour, things have never been better for investment in real estate abroad.

home abroadIndians Buying Property Overseas

Ironical though it may sound, in a country where

demand for affordable housing phenomenally

exceeds supply and mid-segment project sales too

have dipped considerably, there has been a sharp

increase in investments made by Indians in property

abroad. There was a time when this market segment was

restricted to the ultra-rich, but now, with the number of

cash-rich Indians on the rise, things are changing.

The worldwide economic slowdown has made investment

in overseas properties a lot cheaper. A sharp fall in

property prices in US and European nations has thrown

up several lucrative opportunities of investment for

non-resident Indians as well as resident Indians. Thus

we have a situation where buying a cottage or old style

villa in some tranquil village in France, Spain or Italy

would be a better option than buying a heritage home in

Goa. What benefits foreign investors in these countries

is the declining number of local buyers. This compels

developers in these countries to woo overseas customers.

In addition to that, even their governments are now more

open to foreigners owning property, an aspect that augurs

well for Indian investors to be able to drive good bargains.

Most of the targeted buyers of such property are HNIs

from Karnataka, Andhra Pradesh, Punjab, Gujarat and

Mumbai.

A Shrinking World

Investment in foreign lands can by no means be considered

an easy game, and, especially so, for first timers. Let us,

however, consider a few interesting facts about prevailing

property trends across some of the real estate hot spots of

the world. While owning property in leading destinations

of the world like London, New York, Dubai and Singapore

has always seemed enticing; the current global economic

scenario has now also drawn investors’ attention towards

exotic holiday destinations such as Malaysia, Southern

France, Florida and Mauritius. And for that matter,

there’s no stopping adventurous preferences like space

in beachfront developments in Oman or Muscat (now

where is that); and ranch-style houses outside Nairobi,

the capital and largest city of Kenya!


Dubai has every reason to be an all-time favourite with

Indians. Owing to its proximity to India and its inflation-

resistant status, the futuristic dream city accords investors

an ease of buying property across all income levels.

According to the Real Estate Investment Promotion and

Management Centre at the Dubai Land Department,

Indian investors have bought a total of 2,153 properties

valued at Rs 5,670 crore (3.751 billion dirhams).

Statistics published by the Land Department also indicate

that Indian investors snapped up 153 buildings in the

first half of 2012 in deals that ran into billions of AED.

No other country in the world could match this buying

activity, which highlights the important role that India

continues to play in Dubai’s real estate industry. Areas like

Jumeirah, Downtown Dubai and Marina are among the

country’s most popular and upscale locations. A 1,500-sq

ft apartment in Downtown Dubai, for example, costs Rs

3-4 cr.

Ever wondered how Dubai compares to our metros? For

someone who wants to buy a 1,000 sq ft super built up,

3-bedroom apartment in the Mumbai suburb of Bandra,

the asking price is about Rs 4 crores. But if you’re willing

to shell out just half that amount to invest in Dubai, you

could end up owning a flat of the same size in the “Land

of Gold” for Rs 2 crores. As already mentioned, since

the FEMA guidelines allow an Indian resident to spend

about half this amount on investment in property abroad,

anyone who’s made up his mind about investing in Dubai

would have to seek out at least one more interested party.

Now, this team can make Dubai dreams a reality!

Situated bang between the USA and Asia, London is a

great choice for Indian companies that have businesses

in Europe and hence require an office in London. One of

the world’s major financial centres, there is no language


London

Dubai

According to a new research, foreign investor purchases in freehold projects in Dubai are dominated by Indians who have retained the number one spot, ever since foreign ownership regulations were applied

barrier in London. Indians can identify with the culture and

last but not the least, Indian food is readily available. In

2010, rich Indians bought residential property worth 290

million pounds in the city’s prestigious areas of Mayfair,

Belgravia, South Kensington, Chelsea and Holland Park.

Indians show a preference for properties in areas such as

Mayfair, Belgravia, Regent’s Park, St John’s Wood. The

properties are reported to be second or third homes for

a rising number of wealthy Indians. The average property

in this segment is a four-bedroom house, with a room for

domestic help, used as a second home by rich Indians or

their children studying in the city.

While prime central residential property prices in London

average around £1.2 million (about Rs 9.9 cr), the

average price of a property in London, according to the

UK Office for National Statistics, is now £392,000 (about

Rs 3.2 cr). Though demand is on all time high and houses

are scarce, the good news is that there is a pipeline of

upmarket housing projects with 15,500 units slated for

delivery by 2021. An interesting development for Indian

investors is that the State Bank of India is now set to enter

Britain’s residential mortgage market.

According to the 2012 annual survey of the members

of the Association of Foreign Investors in Real Estate

(AFIRE), the United States remains the country offering

the best option for real estate investment. Among the

top countries for stability and security in 2012, the US

retains its perennial top position, receiving four times as

many votes as second-place Brazil. And as per statistics

revealed by the US National Association of Realtors,

Indians contributed 7% of total international home sales

of $82 billion in the US during the year ended March

2011, only behind the Canadians (23%) and the Chinese

(9%). The year saw the highest home sales in America

after the meltdown, and the largest purchase in value

terms by the Indian community in 3 years. Today, prices

of homes in US cities, especially New York, are among

the cheapest in the world, even comparble with Delhi

and Mumbai. The average price of homes in New York is

about $1,300 (or Rs 70,928) per sqft while apartments in

Mumbai’s Cuff Parade could come for a steep Rs 80,000

a sqft. Indian buyers are mostly exploring cities such

as Los Angeles, Las Vegas and other parts of southern

California and Phoenix, and Miami, where prices are still

60% lower than the peak.

As far as investment in USA is concerned, foreign

residents can directly buy and own property in the USA

but many investors prefer to own property through a

holding company, an LLC (Limited Liability Company)

usually set up in a tax friendly state like Texas, Delaware

or Nevada. In order to own property and collect rents or

proceeds from sales, foreigners need to obtain a US Tax

ID number and set up a bank account - both of which

as very easy once you have your LLC. Further, an LLC

provides liability cover and generally is considered the

best for tax efficiency.


The Burj Outside My Window

One of the most recent examples of Dubai real estate’s

phenomenal attraction over Indian investors has been the

overwhelming response they have accorded to ‘DAMAC

Towers by Paramount’, a $1 billion, four-tower development

overlooking the Burj Area of Dubai. “The response we

have seen from Indian investors is unprecedented,” said

the Managing Director of Damac Properties, Ziad El Chaar.

Following the sell-out launch event in Dubai, DAMAC

Properties has launched the second phase of the project.

Encouraged by the Indian response to their project,

DAMAC executives also came visiting to India to conduct

two exciting road-shows, one each in Delhi and Mumbai.

United States of America

Australia’s relatively strong economic performance

compared with Western peers, its abundance of natural

resources, white sand beaches and kind climate make

investment in its real estate very tempting. Having

announced a new visa pathway for migrant investors

coming to Australia, namely Significant Investor Visa,

the Australian government is looking to provide a boost

to the Australian economy and to compete effectively for

high net worth individuals seeking investment migration.

Significant Investor Visa will target individuals who invest

at least $5 million in certain assets, such as infrastructure

government bonds, in return for concessions on the

usual migration requirements including qualifications

and English skills. Such immigration schemes tend

not only to bring much-coveted long-term investment,

but also contribute to economic growth and job

creation. As India is the fourth highest contributor to

Australian immigration after China, New Zealand and

the United Kingdom as well as the highest contributor to

Australia’s temporary arrivals, Indian nationals seem well-

placed to benefit from the programme. At the same time,

private wealth bankers in Australia have noticed a growing

demand for Australian real estate, particularly hotels and

serviced apartments. Meanwhile, analysts speculate that

within five years, India could have pumped as much as

$US30 billion into Australia.

Though there can be no comparison between Australia

and Spain, while the $200,000 limit wouldn’t even buy

a studio apartment in most Australian capital cities, it’s

more than ample for a luxury home in upmarket parts of

Spain, including beachfront suburbs. Despite a difficult

economic scenario, Spain’s mild weather, a laid-back

style and respect for elders make people want to turn

the world’s fourth most-visited country into their home or

second home. According to a new residency scheme,

the Spanish government is offering residency permits

to foreign investors to buy property worth approximately

£131,147 (approx 1cr 9 lacs). The residency scheme

is hoped to give the property market a boost, putting an

end to falling prices and helping to shift Spain’s excess

real estate. Portugal and Ireland are also offering similar

schemes, but have set higher property price thresholds

for the permits than Spain. Thus Spain may have the

competitive edge to attract Indian investors, acting as an

attractive “launch pad” for them into Europe.

A popular destination for professionals, Singapore is

recognised as the best city for living in Asia. The ‘small

country with big surprises’, Singapore is also among the

most expensive cities in the world due to its high real

estate prices. However, due to government measures to

cool down the market, property prices in Singapore have

now slowed for eight consecutive quarters.

Since 1973, the Singapore government had imposed

restrictions on foreign ownership of all private residential

property, governed by the Residential Property Act. In

2005, this Act was amended and foreigners are now

allowed to purchase apartments in non-condominium

developments of less than six levels without the need


Snapping Up Real Estate Down Under!

• The Jindal family, ranked among the world’s

top 80 richest by Forbes, in May 2012 bought

two minor stakes, worth a total of $26 million, in

Australian iron ore and coal mines through Jindal

Steel & Power.

• That followed a US$2 billion purchase by

Indian self-made billionaire and college-dropout

Gautam Adani of a coal mine in the state of

Queensland last year.

• Silverneedle Hospitality, a company backed by

Nadathur S. Raghavan, an Indian philanthropist

and co-founder of software company Infosys

Technologies bought a hotel in Brisbane for $57

million. In 2011, it bought a chain of about

60 hotels in Australia and New Zealand for an

undisclosed sum.

Australia

Spain

Singapore

12

to obtain prior approval. A foreign national needs prior

approval of the Minister of Law before purchasing restricted

residential property. Properties in Singapore are either

freehold or leasehold tenure. One can either buy from

the Housing Development Board (HDB), condominiums

or landed property. A foreigner or Singapore Permanent

Resident buying the first residential property including

HDB flat would have to pay additional buyer’s stamp duty

(ABSD) at 5%. In case he owns an HDB flat and wants

to upgrade to a private condominium unit, he will have

to pay ABSD of 10% as it will be his second property.

Financing options too are available for foreigners.

Property Overseas And The Indian Buyer

The purpose of investment in property abroad can be

much more than establishing a holiday home or just to

create an asset in a foreign country. It could also be a way

of saving on the cost of renting or hotel stay when one is

required to be in that foreign country for a long duration.

As in the case of Amardeep Singh, a Ludhiana-based

exporter who recently bought a two-bedroom apartment

in Brisbane, Australia, after his two sons went there to

study. “The property gives me an assured stay in the

country and I can visit any time without having to worry

about hotel reservation,” says Mr Singh and goes on to

add, “I also save on cost as my children can stay there

instead of renting a place.”

A growing awareness that buying property abroad could

actually turn out to be a more economical choice as

compared to investment in India also makes such a choice

more favourable. The deal appears even better if you

take into account the fact that in most foreign countries,

properties are sold on the basis of carpet area and not

super area, as in India. Realising the potential in selling

real estate to Indians, governments of some countries

have also launched attractive schemes to woo buyers. For

instance, Malaysia has a scheme called Malaysia—My

Second Home (MM2H), which promotes the country as

a retirement destination. Similarly, Dubai allows freehold

property purchase by foreigners, while Mauritius gives

work permits to property owners. Applying through these

government-sponsored programmes ensures quicker

processing of papers and getting visa permits. The sea

side resort of Pattaya in Thailand is offering 3 bedroom

houses at prices as less as Rs 60 to 70 lakhs, pretty


Conceived as a luxury residence for ultra-wealthy international buyers, London’s One Hyde Park is the most expensive apartment building in the world

13

competitive compared to similar houses in Tier 1 cities

in India.

The Taxation Part

According to the Foreign Exchange Management Act

(FEMA), a person resident in India can acquire property

abroad by way of gift or inheritance from a person

residing outside India. The Indian resident can also buy

immovable property outside India during the duration

of his employment in that country. Bear in mind that

you cannot take a loan in foreign currency for these

transactions, but FEMA also allows the Indian resident the

liberty to remit up to $200,000 per financial year (about

Rs 1cr 9 lacs), which helps the person with required

cash to buy property outside India. It also important to

note that such individuals are not entitled to any tax-free

luxuries on such investments. Overseas income results in

a tax implication and an outflow and income from house

property and other sources is taxable at the applicable

slab rates prescribed for individuals, ranging from 10.3%

to 30.9%.

If the investor is earning rental income, then whatever

income is earned abroad will be subjected to tax in the

country from where the income is generated. There is also

a possibility that such income will be taxed again in the

country where the investor is residing, say for example,

in India. However, India has tax treaties with a number

of countries, hence taxes paid abroad will be available

for setoff against their tax liability in India and one would

pay the differential tax in India. If the investor sells off his

overseas property, he will be subjected to capital gains tax

in the country where the property is situated. There are,

however, some countries which do not levy capital gains,

like Dubai, Singapore, Cyprus and Mauritius.

Some Practical Guidelines

The most sought after properties are those owned by

banks as a result of foreclosure or as non-performing

assets. Alternately, realtors advertise their properties as

a means of secure investment for foreigners. Investment

in property can be very lucrative but since the stakes are

actually high, it makes sense to devote sufficient time,

care and research to the process. As times change,

owning property in foreign countries has ceased to be the

domain of the extremely rich. However, a well-informed


Currently Spain has between 7,00,000 and 10,00,000 unsold houses on the market. Most of those houses are designed as holiday residences and are located in coastal areas. The domestic market experiences a deep stagnation period because of the global economic crisis, which has led to 26% unemployment rates.

buyer with a planned approach is always more likely to

make a good deal. Here are a few practical guidelines

that will come handy, should you be setting out to buy

yourself a house in a foreign country:

• If possible, make sufficient number of visits to that

place during different parts of the year to get a broad

overview of the locale.

• Always negotiate through a reputed property

brokerage firm.

• Also hire an independent legal advisor to avoid legal

complications at a later stage.

• Make sure you have a consolidated list of all

transaction charges, stamp duties and associated

fees for buying the property.

• It is ideal to time your purchase when the exchange

rates of that country’s currency are in your favour.

• Last but not the least, bear in mind that there is

adequate scope of bargaining at all places around

the world and do not swayed by the quoted price.

Bollywood Stars Properties Abroad

Shahrukh Khan is the proud

owner of a Signature Villa

on ‘The Palm Jumeirah’, an

artificial archipelago created

using land reclamation by

Nakheel, a company owned

by the Dubai government.

Said to be worth Rs 17.84 cr,

Shahrukh claims it is a gift

for his endorsement of the

ambitious project. Shahrukh also owns an apartment in

central London’s posh Park Lane worth about £20 million.

On Shilpa Shetty’s first

wedding anniversary, she had

been gifted an apartment by

her husband Raj Kundra in

Dubai’s Burj Khalifa, world’s

tallest building. Moreover, the

couple has a seven-bedroom

‘Raj Mahal’ property in

Weybridge, Surrey. The

property sits on exclusive

St. George’s Hill estate, the

address for rich and famous

people. The couple’s other properties include property in

Mayfair and property opposite Selfridges in Oxford Street

of London.

Bollywood’s daredevil, Akshay

Kumar is believed to have

bought a hill in Toronto and a

couple of properties that

includes posh apartments

and a bungalow. Additionally,

Kumar has also invested in

a beautiful bungalow on a

famous Mauritian beach.

Famous Bollywood duo

Abhishek Bachchan and

Aishwarya Rai Bachchan

are the proud owners of a luxury

property in Dubai’s Jumeirah

Golf Estates that is worth

millions of dollars. They have

also acquired a plush resort

style villa in Sanctuary Falls

in Dubai, a gated community

houses 96 villas.

After getting married to Dr.

Shriram Madhav Nene,

Bollywood beauty and dancing

queen Madhuri Dixit is said

to have invested in a mall in

Florida.


newsdeskREAL ESTATE & INFRASTRUCTURE NEWS

regional national international

16

regional

The grant for construction of houses

in Haryana under Indira Awaas Yojana

has been increased from Rs 45,000

to Rs 70,000 in plain areas and

from Rs 48,500 to Rs 75,000 in hilly

areas. During the year 2012-13, the

state government has spent Rs 46.61

cr under IAY and as many as 7,349

houses have been constructed.

NCR Property Expo Venue: Expo CentreDate: 04 May to 05 May 2013

Real Estate & Home Decor Luxury Show Venue: The Grand HotelDate: 18 May to 19 May 2013

Indira Awaas Yojana

forthcoming events

Chandigarh

More than 200 Indian property

developers have associated with Royal

Institution of Chartered Surveyors

Real Estate Institute Noida

The Haryana Urban Development

Authority has extended the time

limit for construction on residential

and commercial plots beyond the

stipulated period of 2 yrs. The

extension fee beyond the initial

period of 2 yrs had been fixed. After

its expiry, further extension would be

allowed on payment of extension fee

at double the rates of the previous

year. This rule is not applicable to

plot sizes upto 100 sq m.

India’s biggest builder DLF

has decided to outsource the

management of all its properties to

third-party property management

firms. While Cushman & Wakefield

will manage DLF’s assets in

Hyderabad and Chennai, Jones Lang

LaSalle will manage those in Kolkata

and Chandigarh.

Punjab Governor Shivraj Patil has

directed the senior functionaries of

the Chandigarh Administration to

study the feasibility of constructing

EWS houses in the UT. Having

visited Instacon, the 10-storeyed

building in Mohali which constructed

in 48 hours by Synergy Thrislington,

he was apprised of the relatively

low cost of construction accorded

by prefabrication technology by the

owner Mr. Harpal Singh.

HUDA

DLF

EWS Housing

Chandigarh

Gurgaon

Chandigarh

New DelhiNoida

newsdesk

Vikas Garg Patiala

The bail application of former Patiala

Deputy Commissioner Vikas Garg

has been rejected by a local court.

He is in jail following his arrest in

March this year in connection with

the high-profile Patiala land scam.

(RICS) which has tied up with

Amity University to open India’s first

institute that will provide education

in real estate, construction and

infrastructure-related disciplines.

The institute will start operating from

August in Amity’s Noida campus and

will initially provide three specialized

courses and the first batch will have

135 students.


Godrej Properties Ltd., the real estate

development arm of the Godrej Group

has announced the launch of its

ultra-luxury residential project, Godrej

Platinum, in Alipore, Kolkata. Spread

over approx. 1.4 acres, this project

will have only 35 luxurious homes.

Apartment sizes range between

3,762 sqft per apartment and 5,075

sqft per apartment with an average

ticket size of Rs 10 cr per home.

Godrej Platinum is designed by world

renowned architecture firm, Perkins

Eastman, who are the Masterplanners

and Design Architects for the Indian

School of Business at Mohali and

have to their credit many international

landmarks.

The Andhra Pradesh Industrial

Infrastructure Corporation has slapped

national

17

Film actress Shilpa Shetty, in

partnership with her friend and first

generation entrepreneur Hem Tejuja,

has launched Groupco Developers,

a company that will develop housing

projects in collaboration with land

owners across the country. Tejuja is

also a partner in her online property

brokerage business.

Glamour Homes Venue: Chennai Trade CentreDate: 24 May to 26 May 2013

Times Property Expo Venue: Koramangala Indoor StadiumDate: 25 May to 26 May 2013

Groupco Developers

forthcoming events

Mumbai

Presenting the civic body’s budget for

2013-14, Mayor Saidai Duraisamy

announced that the City Corporation

will study the possibility of building

four new flyovers and five pedestrian

subways and feasibility studies would

be done to check the viability of the

projects.

New Flyovers

Godrej Platinum

Chennai

APIIC Hyderabad

Kolkata

BengaluruChennai

newsdesk

The District Collector has issued 34

notices to several citizens for selling

off trust land illegally. Land in different

pats of the city, belonging to state

government-run Devasthan Trust was

found to be sold off illegally to realtors

and builders.

Notices to Citizens Vadodara

notices on as many as 1,773 firms

which backed out of their commitment

to set up units within the stipulated

time-frame. The infrastructure

corporation came in for criticism

following the Emaar scam and failure

of highly publicised ventures such as

Science City, Economic City and Motor

Vehicle Units.


Disgraced cyclist Lance Armstrong

has reportedly sold his Austin, Texas,

home to local oil and gas executive Al

Koehler for an undisclosed amount

of money. Mr. Armstrong had

purchased the 1.7-acre mini-estate

in 2004.

18

international

Despite the economic conditions

around the world, Hong Kong prices

have been rising steadily. According

to a Knight Frank report, Government

restrictions on lending and new taxes

have apparently done little to prevent

International Property Show Venue: Dubai Int. Convention & Exh. CentreDate: 30 Apr to 02 May 2013

Madrid International Real Estate Exhibition Venue: Comunidad De MadridDate: 23 May to 26 May 2013

World’s Hottest Market

forthcoming events

Almost 50% of the buyers in the

German castle market are from outside

Germany. According to The Times, a

27-acre medieval castle, known as

Burg Kipfenberg, is on the market

for $7.4 million. Prices for privately-

owned castles range between $12.9

million and $25 million. Germany is

home to about 5,000 castles.

Shanghai-based Greenland Group,

one of the largest developers in China,

is turning its attention to the USA and

Castles for Sale Germany

Greenland Group Shanghai

Hong Kong

Lance Armstrong Texas

Dubai Spain

The Federal National Mortgage

Association, commonly known as

Fannie Mae, has proclaimed a

turnaround in the mortgage business

by reporting net income of $17.2

billion, its largest annual profit in

Fannie Mae Washington, D.C.

newsdesk

Australia as it moves to increase its

overseas investments. The company

is looking to invest in a project on

the West Coast of the USA and is

also exploring a residential project

in Melbourne, the Wall Street

Journal reports. The company has

already announced the purchase

of a residential and hotel project

in Sydney from Brookfield Asset

Management for $497 million.

price escalations and home values

rose 23.6% for the year, the largest

increase in the world.


CHANDIGARH CAPITAL REGION PROPERTY HOT SPOTS

FOCUS THIS MONT

ZIRAKPUR R ZONE 1

ZIRAKPUR R ZONE 2

MULLANPUR - NEW CHANDIGARH

KANSAL

AEROCITY

MIXED LAND USE & INDUSTRIAL SECTORS 82, 66, 66A, 66B

LANDRAN - BANUR ROAD (RIGHT SIDE)

LANDRAN - BANUR ROAD (LEFT SIDE)

KHARAR LANDRAN - ROAD

BALONGI - KHARAR ROAD

H


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22 PROPERTY & WEALTH VOL 2, ISSUE 06, FEBRUARY 2013

HOT SPOT IN FOCUS Disclaimer: Map is not to scale and purely for illustrative purpose. Accuracy of the map is not guaranteed.

23PROPERTY & WEALTH VOL 2, ISSUE 06, FEBRUARY 2013

DISCLAIMER: Features, information & Budget Planner given above are indicative only. Please contact respective builder for more specific & accurate information. Property & Wealth is not responsible for any decisions taken through use of above information.

HOT SPOT IN FOCUS - ZIRAKPUR R ZONE 2

Location: VIP Road (near Penta Homes), Ambala-Chandigarh Highway, ZirakpurHighlights: - Modular Kitchen with

Chimney - Free Car Parking

- 2 AC’s - Texture Paint on 3 Walls

- Water Purifier

Options: 2BHK (1150sqft)

IndependentYds.

Kiran Apartment

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Possession in November 2012

Location: VIP Road, ZirakpurHighlights: Choice of 2/3 premium apartments and penthouses characterised by Singapore architectural collabration. Recreational Club with Swimming PoolOptions: 2/3 BHK, Penthouses

Jaipuria’s Sunrise Greens

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Sales Organisers/Dealers: Call 9216841278 to Adveriste in this space

Location: VIP Road ZirakpurHighlights: Surrounded by lush green gardens. Club house having facilities as swimming pool, table tennis, library, yoga centreOptions: 3BHK, Penthouse

Maya Garden Phase-3

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Zigma Wealth: 8146992437


Location: VIP Road ZirakpurHighlights: •Club house complete with all recreational and leisure facilities•Covered car parking•Provision for piped LPG supplyOptions: 2BHK, 3BHK, 4BHK, 5BHK Penthouse

Pearls Nirmal Chhaya

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Ready to move in

Location: VIP Road, ZirakpurHighlights: Sky banglows with drawing cum Dining Room,Family Lounge, Home Theatre room, Mandir ,Store and Servant QuarterOptions: 88 flats of 4000 sq ft each and 8 penthouses of 7000 sq ft each

Ojas Grand, Zirakpur

BudgetPlanner

Location: VIP Road, ZirakpurHighlights: AmphitheatreCommon Library, Club, Gym, Jogging Track. Ultra Modern UPVC Windows to keep your house insulated.Options: 2, 3, 4BHK Apartments

Savitry Greens

BudgetPlanner


0 10 20 30 40 50 60 70 80 90 100 150 >200

0 10 20 30 40 50 60 70 80 90 100 150 >200` inLakh

` inLakh

` inLakh

` inLakh

` inLakh

` inLakh

24 PROPERTY & WEALTH VOL 2, ISSUE 06, FEBRUARY 2013

HOT SPOT IN FOCUS

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GURUDWARA SINGH

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Disclaimer: Map is not to scale and purely for illustrative purpose. Accuracy of the map is not guaranteed.

25PROPERTY & WEALTH VOL 2, ISSUE 06, FEBRUARY 2013


HOT SPOT IN FOCUS - MIXED LAND USE & INDUSTRIAL SECTORS 82, 66, 66A, 66B


Location: Sector 66A MohaliHighlights: Read to possess plots

with all infrastructure in place. Also

offering builtup industrial Plots.

Options: 500 sq yards or more for

Industrial Plots, 250 sq yds built

up industrial plot with or without

basement.

Janta Industrial

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200


Location: JLPL Eco City, Sector 66B, MohaliHighlights: Gated complex secured with a multi-tiered security system, Jogging track & landscaped lawns, Club house,Swimming Pool.Options: 4 BHK 3500 Sq. Ft.

Signature Towers

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200


Location: Sector 66-A, SAS Nagar(Mohali),Highlights: The ultimate office spaces with futuristic designs, state-of-the-art facilities and relaxing environment strike the right balance between modernity and functionalityOptions: Office Spaces

Janta Twin Towers

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200



Location: Sector 66A MohaliHighlights:City-within-a-city concept, which shall comprise of built up IT offices, BPO/ Institutional space, residential units, hotels, premium clubhouse etcOptions: Industrial Plots, Office Spaces, Residential Apartments

Yellowstone Landmark Info City

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200


Location: Sector 66, Mohali (adjoining Chandigarh)Highlights: Most Prime Location in Mohali adjoining Chandigarh Options: Office Spaces2BHK & 3BHK Flats @ INR 5,645/- per sqft & Office Spaces @ INR 5,000/- per sqft.

Bestech Square Sector 66 Mohali

BudgetPlanner

Location: Sector 66-A, Near International Airport, MohaliHighlights: Excellent Location on 200’ Airport Express Highway with 17 ACRES of Lush Green ParkOptions: 3BHK (2480 SqFt), 4BHK (3007 SqFt) Flats.@ INR 3,790/- per sqft.

JLPL Falcon View

BudgetPlanner

MaKaan Search 8437002002, 9872588555

0 10 20 30 40 50 60 70 80 90 100 150 >200

0 10 20 30 40 50 60 70 80 90 100 150 >200` inLakh

` inLakh

` inLakh

` inLakh

` inLakh

` inLakh

WEEKEND/HOLIDAY HOMES

Location: 3km from Solan on Solan Sabathu Road.Highlights: Registry for built up area for built area Even for non Himachlis. Enjoyable weather round the yearOptions: 1 BHK 671 sq feet, 2 BHK 111 sq feet and 4BHK duplex cottages 2475 sq feet.

Amravati Hills

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Location: Kasauli Hills at 5000 feet, nearly 15kms from Kasauli amidst pristine environment.Highlights:Each Villa & Apartment providing a panoramic view of Mountains. Landscaped Gardens, Swimming Pool & Gym. International 5 star Hotel Options: Villas and Apartments

DLF Samavana

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Location: Dagshai HillsHighlights: Situated at height of 5500 sq feet. its un spoilt nature at its best with Villas, plots, 5 star resorts.Options: Luxurious independent villas, residential plots

Pine Wood Resorts

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Location: Dharampur Sapatu Road 2 kms from Hotel Victoria IntercontinentalHighlights: Panoramic View of the valley. Non Himachalis can buy in their own name. Specially imported pre fabricated apartments.Options: 1BHK/2BHK on 400 sq yard Plot

Hill Farms

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Location: Kais Village, KulluHighlights: First of its kind group housing in HP, Unique terraced landscaping all around.Options: Exclusive low rise designer apartments and Luxurious villas

Kaisville

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

Location: Solan Simla Old Road, Kumar hattiHighlights: Beautiful fully furnished apartment With un spoilt view of the mountains.An ideal hill farm house.Options: 2BHK and 3 BHK

Pine Wood Cottages

BudgetPlanner

0 10 20 30 40 50 60 70 80 90 100 150 >200

26


Sales Organisers/Dealers: Call 9216841278 to Advertise in this space Zigma Wealth: 8146992437

Sales Organisers/Dealers: Call 9872635220 to Advertise in this space Mega Marketing: 9815740230

SS Associates: 9876500036 Call 9815601347

` inLakh

` inLakh

` inLakh

` inLakh

` inLakh

` inLakh


Zigma Wealth Corporate Office:-

28

The Senior/Assisted Living Sector In India

The concept of homes for aged has undergone

a sea-change, with the name itself now

being senior living or assisted living. The

services offered include fulfilling the social,

security, healthcare, administrative, food and

other requirements - including understanding what the

requirements of a 60-year-old person are as against those

of a 70-year-old.

In fact, the entire structure of senior living today is

designed keeping in mind the requirement of seniors. The

layouts of units, architectural aspects such as grab-bars

in bathrooms, anti-skid tiles, low-height shelves, bigger

balconies for sunlight, nurse/servant rooms in bigger units,

event calendars of the years offering programs suitable

to seniors, primary healthcare facility on campus, and

flexible disposal models like sale/deposit/lease indicate a

conscious shift in the development community towards

the needs of seniors and growing size of this industry.

There are currently about 30 senior living projects in

India. The city-wise break-up would be: 2 in Kochi, 3 in

Chennai, 3 in Coimbatore, 7 in Bangalore, 3 in Pune,

2 in Goa, 2 in Kolkata, 1 each in Hyderabad, Mumbai ,

Bhopal, Jaipur, Delhi, Nagpur and Punjab

Most of these senior living projects are single

developments. Ashiana has multiple developments in

Delhi, Jaipur and Pune, Covai in Bangalore, Chennai and

Coimbatore, and Athashree is most visible with projects

in Bangalore and Pune. Bangalore, Pune, Chennai and

Coimbatore are the most active cities in this segment

TOTAL NUMBER OF PROPOSED SENIOR LIVING PROJECTS

There are about 30 more senior living projects in the

pipeline in India. Our existing data indicates that most of

them are at the proposal stage, while and construction

is underway for two new projects in Bangalore. Of the

proposed projects, 5-6 are in Bangalore, 3 in Chennai, 3

in Goa and various single projects in other cities.

SIZE OF THE SENIOR LIVING INDUSTRY

Senior housing is a $25 billion industry worldwide. In the

US alone, there are over 2,000 senior housing projects

with over 500,000 residents. India is a relatively younger

country in this sector when compared demographically

to the US and Japan - though by 2025, it is estimated

that there will be 173 million seniors above the age of 60

compared to the 76 million today. The current estimated

demand for senior housing in India is approximately

300,000 units.

TYPES OF UNITS OFFERED IN SENIOR LIVING PROJECTS

Unit sizes in senior living projects are carefully planned,

keeping in view the needs (single or double occupancy),

utility (layout of a unit), gross value of a unit (limited

payment capacity of retired seniors) and overall positioning

(medium to luxury) that such projects call for. All sizes

and configurations are available, including 1BHK, 2BHK

and 3BHK as well as studio apartments and villas.

Size

Sizes vary from 500 sqft studio apartments to 2500 sqft 3

BHKs and villas

Prices

Prices vary from Rs. 25 lakh to Rs. 1 crore. Most of the

senior living projects are positioned at the affordable

segment, bearing in mind the fact that the end consumers

are senior citizens with limited resources and no sources

of regular source of income. However, there has been a

gradual shift visible in Indian society, with the emergence

By 2025, it is estimated that there will be 173 million seniors above the age of 60 compared to the 76 million today. The current estimated demand for senior housing in India is approximately 300,000 units


29

financial independent and lifestyle-oriented seniors. This

has triggered the growth of high end to luxury senior living

products in range of 60 lakh to 1 crore and upwards.

TYPES OF AGREEMENTS

As senior living residential projects are designed and

tailored specific to the needs and resource capacities of

aged people, there are multiple financial models offered

on the market:

Outright Sale

Units in retirement projects are sold to the customers

above the age of 50 to 55 on a rate per sq.ft basis. The

entire housing complex is professionally maintained, with

services offered on a monthly payment basis. A son/

daughter of age less than 50 years can also buy such

a unit, but only a senior citizen would be allowed for

permanent stay in the society.

Deposit Model/Pay-Back Schemes

An up-front deposit amount which is a percentage (60-70

%) of the sale value of the unit is charged according to the

size of the unit, which includes residence charges only.

Charges would be levied at actuals on food, electricity,

water, etc. The deposit charges are paid back to the

successor with some deductions on administration /

cancellation charges on account of death or cancellation,

etc.

Lifetime Lease

A small deposit amount is charged on handing over the

unit to customer. A recurring monthly rent is charged for

the duration of stay (this would include rent, electricity

and water charges). The rest of the facilities (viz. food,

healthcare, security and social engagements) are paid on

actuals. The benefit of such an arrangement is that no

property tax has to be paid by the unit holder.

MONTHLY FINANCIAL OUTGOINGS FOR SERVICES OFFERED

IN ASSISTED LIVING PROJECTS

This again depends upon the type of services offered by

the service provider, is calculated on per sft basis and can

vary from Rs. 3000-20000 per person per month. Services

offered in a senior living facility would range from food,

healthcare and wellness, security, social engagement

and host of

other services

like audio visual

library, financial/

wealth planning

and concierge,

among others.

Food captures

the larger share

of monthly

payments at 25-

30%, followed by

housekeeping at

20%, healthcare/

w e l l n e s s

amounting to

20-25%, social

e n g a g e m e n t

10% and rest for

other miscellaneous services.

PROFILE OF OCCUPANTS IN SENIOR/ASSISTED LIVING

PROJECTS

All kinds of families are on the market for such units -

in most cases, the children are in other cities or outside

India. Others include senior NRIs accustomed to such

facilities in developed countries and now returning to

their home country, and retiring people who are used to

a certain level of services and lifestyle to which they may

not be entitled post their retirement. In all cases, seniors

are looking for assured security and healthcare along with

a community atmosphere.

COST TO DEVELOPER TO BUILD A SENIOR / ASSISTED LIVING

PROJECT

The cost-structure of developing a senior living project

is quite similar to that involved in any typical residential

project. The difference is in the layouts of units and

architecture design, which are tailored to the needs of

senior people above age of 60-70. Also, there are higher

level of common and support facilities (healthcare, mess,

club, wellness and gym) offered in such projects when

compared to normal residential projects (usually club and

gym).

B.SridharNational Director - Social Infrastructure Practice(Education, Healthcare & Senior Living) Jones Lang LaSalle India


30

Out-Of-Town Retail The Viability Of Value

Selling off the damaged or out-dated products

has always been a nerve-wrecking task for

retailers. However, they can liquefy their

obsolete products on discounts to consumers

who want to get branded stuff at reasonable

rates. Retail companies can offload factory surplus stock

at discreet stores located on highways and city outskirts.

Big hypermarkets, cash-and-carry outlets, furniture

dealers and designer wear stores often cannot find

sufficiently large retail spaces within the city. Such stores

tend to look for out-of-town properties in locations which

are in line for anticipated growth as indicated by the

directions in which the city is expanding.

This trend has given rise to some popular out-of-town

weekend shopping destinations. Some of these are:

• Mehrauli-Gurgaon Road and Mahipalpur in Delhi

• Kharkhana and Trimulgiri in Hyderabad

• Marathahalli in Bangalore

• Parel in Mumbai

• Kundli in NCR

• Manesar in Gurgaon

• SG Highway in Ahmedabad

Out-of-town retail outlets tend to be located in areas

close to operational factory outlets and are targeted by

customers who are looking for a bigger bang for their

buck.

Retailers That Seek Out-Of-Town Properties

The size of India’s retail industry is estimated at Rs 20

trillion in sales. Of this, 40-48% comes from sales of

branded products, which are part of the organised retail

segment. 45% of such products are sold during discount

sales or through factory outlets which offer a 15-40%

discount throughout the year - and almost 70% discount

twice a year -

to unburden

‘out of season’

stocks from their

shelves. As old

m e r c h a n d i s e

in retail stores

c o n t i n u o u s l y

gives way to new

stock at the end

of every season,

off-loading out-

dated goods

from retail

stores is an

on-going issue

with retailers. In

such a scenario, the need for ‘factory outlets’ is practically

a given.

In fact, almost all of the leading domestic (and even

some global) brands are active at out-of-town properties.

Brands such as Mega store, Promart, Brand Factory, Loot

Mart, Loot, Brands R Us and all branded factory outlet

stores look for such kind of properties where they can sell

at a discounted price throughout the year. Cash-and-carry

outlets such as Best Price, Metro and Bookers are some

of the international brands that specifically look for such

spaces.

They typically look for properties with low rents, large floor

spaces and ceiling height, power back-up and sufficient

parking. Easy approachability is important - such locations

need to be connected to a national highway and immune

to traffic snarls.

Bappaditya BasuSenior Vice President - Retail and Leisure Advisory, Jones Lang LaSalle India


While the Indian upper-middle-class shopper is definitely the profile of a typical department store customer, he or she is now seeking more value through cross-shopping at factory outlets

31

Once they locate such a property, retailers require their

spaces to be built to suit their requirements. The entire

premise of this business model is that if all these factors

are met, customer will be willing to ‘go the extra mile’ to

shop at discounted or wholesale prices.

Challenges

Opening a factory outlet is not that easy as opening an

exclusive brand Outlet or a multi-brand store. This is

because EBOs and MBOs represent the regular and fresh

stocks of the brand, whereas the product line which is

sold in factory outlets is either damaged or out-of-date.

For instance, the footwear industry business is all about

sizes and colours. As not all fresh arrivals are necessarily

sold in a single season, the company has a constant need

to off-load surplus stock. Similarly, the Indian apparel

industry is witnessing rapid changes in seasonal styles

and colours that need to be sold off one way or the other

once they are ‘obsolete’.

Changing Landscape

As in all other segments of retail, customer preferences

for out-of-town retail complexes are changing too. Despite

their focus on savings, these are nonetheless aspirational

people - college students, freshly-recruited executives,

executives with family liabilities - and, of course, value

shoppers who want branded, trendy products but cannot

afford them at the regular prices.

While the Indian upper-middle-class shopper is definitely

the profile of a typical department store customer, he or

she is now seeking more value through cross-shopping at

factory outlets. Given that the India growth story remains

strong with the international business community, the

attractive footfall rates and sales statistics of factory outlets

ensure that even top-notch brands cannot afford to ignore

them. This has fuelled the emergence of malls dedicated

to such stores.

Today, discount malls have cropping up rapidly on outskirts of

Faridabad, Mathura, Kundli, Pinjor, Manesar, Bhandup,

Bangalore,Vishakapatnam and Ludhiana. And it isn’t

just discounts that attract customers to factory outlets,

although these are a big draw. The fact is that one is

assured of discounted rates at such malls at any time of

the year.

Thanks to these discount malls, retailers were able to

continue with their expansion plans despite the significant

dip in prime retail space supply across key cities last year.

This positive sentiment is indicative of retailers taking a

long-term view of the Indian economy despite the short-

term challenges. The Government’s bold and welcome

move of allowing FDI in retail has further contributed to

this positive sentiment.

Most Popular Store Sizes For Out-Of-Town Retail

• Cash-and-carry outlets - 52500-60000 square feet.

• Factory outlets - 1500-2500 square feet per store

Rentals

Factory outlets are situated in out-of-the-way locations,

along the highways, and in areas with low penetration of

branded outlets. Sales depend on location and also vary

from city to city. A factory outlet usually earns anywhere

between Rs 35-40/sq.ft. per day. The maximum that they

tend to be willing to pay is Rs 70-90.sq.ft. per month.

Cash-and-carry outlets can afford to pay between Rs36-

48/sq.ft., depending on the city and location. The

approximate rental difference between in-city and out-of-

town retail spaces would be nearly 40%.

Lease Arrangements

The lease agreement for out-of-town retail stores is similar

to those for inner-city agreement and are governed by

applicable bye laws, municipality rules and the specifics

introduced by the retail property’s legal consultant. It

can take the form of a basic agreement for conducting

business, a leave and licence agreement, franchisee

agreement, lease agreement or a simple rent agreement.


32

Compact Comfort - The Enduring Studio ApartmentThere is a steady and inflexible demand for studio apartments, both in the metros and tier 2 cities. These apartments are usually the first to be sold out in a residen-tial project that features them


33

Technically, studio apartments comprise

of single large rooms that encompass the

bedroom, living and dining areas, with

compact kitchens and bathrooms attached.

When they first made their appearance on

the Indian residential landscape, studio apartments found

favour largely with bachelors and small families who

spend most of their time at work.

Even today, the demand for studio apartments comes

primarily from software professionals and executives

from the manufacturing sector. Such professionals

have generally spent over a year stationed in a metro

and find that they prefer to pay EMIs on an affordable,

maintenance-friendly living unit rather than pay high

rents for flats and serviced apartments.

There is a steady and inflexible demand for studio

apartments, both in the metros and tier 2 cities. These

apartments are usually the first to be sold out in a

residential project that features them. Without doubt,

they are the most cost-effective residential options for

people who prefer to own rather than rent, especially

in projects close to workplace hubs. Another factor that

drives demand for such units is the ease with which they

can be rented out or sold at a profit on the secondary

market. This also makes studio apartments a prime

target for investors. Moreover, studio apartments do not

attract much maintenance costs and make for hassle-free

purchases as well as resale.

The typical Indian home buyer prefers larger homes, and

will go in for more generous formats whenever possible.

However, the rate of property price escalations in our

primary cities has narrowed things down considerably.

Simultaneously, proximity to the workplace remains a

priority in an evolving economy, and the studio is the

logical choice for those who cannot or do not choose to

buy larger units.

Studio apartments are also popular with mid-management

level buyers who tend to reside in certain cities for extended

periods. Rather than pay for a serviced apartment or

hotel room, they prefer to acquire studio apartments and

sell them off when they no longer need them. There is

also a lot of

demand from

single working

individuals and

newly-married

couples who

need to set

up a home

i m m e d i a t e l y

and eventually

upgrade to

larger sized

homes later

on. As already

stated, the

demand for

such units

on both the

primary and resale market is consistently high.

When the downturn hit the Indian real estate market,

practically the only residential configurations which

continued to see demand were studio apartments and

cost-effective 1BHK flats. The demand for larger units has

meanwhile revived considerably, but studio apartments

are still the fastest-moving products on the market. The

margins are low, but it is definitely a high volume vertical

and many developers bank on such configurations as a

sure-fire sales proposition, with almost instant absorption

if the location is right. This provides them with instant

working capital. The demand is even greater for furnished

studio apartments, and many developers offer these as

well.

The current demand for studio apartments is percolating

down from the equally high demand for serviced

apartments, and is still picking up from there. 80% of

the overall demand for studio apartments in cities like

Mumbai, Delhi NCR, Bangalore, Pune and Chennai is

driven by software professionals and recently relocated

manufacturing sector executives. Price points vary

according to city, location and amenities offered, but

generally range between Rs. 12-35 lakh.

Om Ahuja, CEO - Residential Services, Jones Lang LaSalle India


34

With Gold Prices Sinking, What Is The Future Of Residential Real Estate?

With gold prices currently on the descent,

many investors are asking themselves

if residential real estate prices will

follow. Gold and real estate are the two

primary investment routes for retail

investors in India, so this is definitely a valid question to

ask. The performance of residential real estate as an asset

class is doubtlessly dependent on the macro-economic

factors that also dictate the performance of other asset

classes, including gold. Nevertheless, the correlation

between gold and real estate prices is not as distinct as

one may at first assume.

Price movements in the real estate sector are the result

of supply and demand. This is true for gold as well, but

the demand drivers for real estate are not the same as

for precious metals. Though, in investment terms, they

technically fall under the category of asset classes, the

demand for residential property stems from the desire for

home ownership that is hard-wired into the Indian psyche.

It is demand from end-users that dictates investors’

appetite for residential property.

In India, precious metals are an investment class that

most people will consider after this basic desire is satisfied.

Moreover, the prices of precious metals are not location-

specific – they rise and fall uniformly. This is hardly

the case with real estate, which performs differently at

different times in different cities and micro-locations. In

a vast country like India, it stands to reason that various

markets will display varying pricing dynamics. Real estate

valuations also range from rational to irrational in different

areas within the same cities, depending on the levels of

supply, demand and investor activity. At the same time,

other cities continue to remain uniformly rational because

they are largely

e n d - u s e r

driven.

How Good Is

R e s i d e n t i a l

Real Estate

For Investment

Today?

There is no

one-size-f i ts-

all formula

for the viability

of residential

real estate

as an asset

class for investment. Different investors have different

levels of expertise, experience, market knowledge and

risk appetites when it comes to different asset classes.

Those with insufficient expertise in stock trading are not

likely to see satisfactory ROI from their activities on the

stock market. Likewise, investors who lack the requisite

knowledge and research to make winning real estate

investment decisions will not meet with much success

in this vertical. Real Estate investors who have sufficient

market knowledge or work with experienced real estate

consultants will not fail to see lucrative returns on their

investments.

Three parameters for successful investment in any asset

class are when to invest, how much to invest and when

to exit. In real estate, three additional variables are where

to invest, into which size and configuration, and in which

location.

Anuj PuriChairman & Country Head, Jones Lang LaSalle India

The prices of precious metals are not location-specific – they rise and fall uniformly. This is hardly the case with real estate, which performs differently at different times in different cities and micro-locations


35

Residential Real Estate Investment - Short-Term & Long-

Term Outlook

In the short term, residential real estate prices in different

cities will either remain steady see minor upward or

downward fluctuations. In the long term, they will rise

again. The fundamentals of the India real estate story

are extremely strong. Even in this turbulent economic

environment, India remains the cynosure of interest by

global MNCs and investors who see the limitless potential

of a young, growing economy, a wealth of highly trained

workforces across the manufacturing, IT/ITeS and

services industries. All this translates into assured job

creation, and therefore demand on the residential real

estate market.

However, Indian residential real estate is definitely not

the best route for short-term investors. When it comes

to opportunistic trading, gold is doubtlessly a far more

suitable asset class – not least of all because one can

purchase it in small or large amounts and liquefy it

quickly. Turning a profit with gold is really only a matter of

timing the market.

Of course, this applies for residential real estate, as well.

However, thanks to a conservative banking system that

makes ‘flipping’ extremely unattractive, residential real

estate as an investment class is a very different ballgame

in India. More and more regulations are being brought in

to subdue the appetite for speculation in this sector. Also,

the lowest entry point is definitely much higher than for

gold. Finally, it requires a minimum ‘incubation’ period in

order to bring ‘appreciable’ returns.

Even after one has satisfied all the basic investment criteria

- good location, right size and configuration, right entry

point and right entry price - one needs to stay invested for

the mid-to-long term in order to garner the best possible

returns. As a general yardstick, an investment horizon of

3-5 years is ideal.


36

DLF Skill Centre Inaugurated in MullanpurAbout 250 Youth to be trained each year in Sales and Marketing, Retail, ITES and Security Duties

As per FICCI’s estimates,

the overall skill gap in the

country is estimated at

over 10 million per year

and growing. In the wake of Union

Budget 2013-14 and the Economic

Survey, the Government of India has

allocated Rs 1,000 crores for the

skill development of the youth. As a

part of the agenda, the National Skill

Development Corporation (NSDC)

has decided to train five crore people

in the current plan. Assisting the

government and NSDC in their

noble initiative, DLF Foundation in

collaboration with several partners

such as Laurus Edutech, Labournet,

Empower Pragati and Don Bosco has set up DLF LIFE

Skill India Centres across the country.

As part of its mandate to open 250 employability linked skill

training centres across the country, the DLF Foundation

has recently set up a centre in Dhanauran, Mullanpur.

On Apr 05, 2013, the DLF DB Tech Skill Centre was

inaugurated by Mr. Manvesh Singh Sidhu, IAS, Chief

Administrator, Punjab Urban Planning & Development

Authority, in the presence of Ms. Gayatri Paul, Associate

Director, DLF Foundation, and Mr. Rakesh Kerwell,

Director (North), DLF Limited. This centre has been

set up in partnership with DB Tech which is a network

of Don Bosco skill training centers that attempt to bridge

this widening divide between those who have access

to opportunities and those who are increasingly being

marginalized from the ‘new economy’ jobs. Located at

Village Dhanauran in Mullanpur, the DLF Tech Skill Centre

Training Centre offers short-term courses in IT Enabled-

DLF FoundationDLF Foundation was established in 2008 as the

philanthropic arm of DLF Limited, to provide

structure and focus to the ongoing social

responsibility initiatives of the company. Registered

under the laws of India as a charitable organization,

under the direct patronage of Mr. K.P. Singh, the

Chairman of the DLF Group, the Foundation has

been formed with an express mission of empowering

communities and creating opportunities for the

underprivileged in areas of education, training and

health. To ensure sustainable and inclusive growth,

which is both environment-friendly and socially

uplifting. A number of rural Education, Training,

Health and Environment initiatives have been taken

by the Foundation since its incorporation and it

looks forward to creating new innovative precedents

in areas of rural education, health and labor care.

DLF’s Director (North) Rakesh Kerwell lights the ceremonial lamp as Chief Guest, PUDA Chief

Administrator Manvesh Singh Sidhu, looks on at the inauguration of DLF Tech Skill Centre


services, sales & retail.

More than 25 of the 250 planned DLF Skills Centres are

already operational across the country. Nearly 20

of these centres will be opened in Punjab, Haryana and

Himachal Pradesh. The DLF Skill Centre at Mullanpur will

train about 250 youth each year in sales and marketing,

retail, ITES and security duties through this centre and all

will be provided employment. The duration of the course

will be short term and will range from 2 months to 6

months depending on the course.

Lauding the initiative undertaken by DLF Foundation, Mr.

Manvesh Singh Sidhu, IAS, Chief Administrator, Punjab

Urban Planning & Development Authority said- “As we

are aware of the lacunae in the skilling industry which has

also been rightly addressed by this year’s Union Budget,

it is imperative for players like DLF Foundation to come

forth & take a step forward to address the problem. The

key objective of these initiatives should be to create jobs

for the underprivileged. There is a need by skill training

providers in the country to take a step forth in setting

up quality training institutes with well-trained faculty

imparting the much needed training in the trades required

by the industry.”

Ms. Gayatri Paul, Associate Director- Programmes, Head

of the Skill Development Department of DLF Foundation

stated- “I am happy to be inaugurating this centre at

Mulanpur and I am sure that this employment linked

training will enable the unskilled youth to attain the

industry required skill sets and pave the way for India’s

economic growth. These centre launches are a part of our

flagship ‘Skill a Million’ programme which we had started

in 2011 for the disadvantaged youth. We have received

a tremendous response up till now nd the successfully

trained students have been already placed & earning a

livelihood for themselves.”

Expressing his delight on the launch, Mr. Rakesh Kerwell,

Director (North), DLF Limited, said- “In today’s knowledge

economy, talent & skills of the youth form the base of a

strong nation. This is a vital component to address the

challenges and opportunities for growth in this extremely

competitive and globalised world. Hence, I am sure that

these small steps undertaken by organizations like DLF

Foundation will contribute to build a better nation.”

Speaking on the occasion, Mr. Biseswar Talukdar, Sr.

Manager – Projects, DB Tech, said- “We are delighted to

be associated with a partner like DLF Foundation which

is committed to addressing the issue of skill gap in the

country and we sincerely hope that this centre would

immensely benefit the local youth & help increasing their

standard of living.”

37

# 61, Sector 18, Panchkula. Mob.: 92168 41278, 96534 90791 Email: [email protected]

Mr. Manvesh Singh Sidhu takes a closer look at the facilities of the

Centre. Standing in the background are Mr. Rakesh Kerwal and Ms.

Gayatri Paul


Parsvnath’s Red Fort Tower

38

projectwatcher

Project Photographs

Front view of Site (Entrance)

Building Front Elevation Works in progress

Existing DMRC building where rehabilitated shopkeepers are currently located

Road Works in progress along building periphery

Atrium area flooring works completed including shops


Project Star Rating Rationale

· Project developer quality

The developer, Parsvnath group, has 21 years of experience

in developing real estate projects and has a pan-India

presence. Till March 31, 2012, the Parsvnath group has

developed 12 commercial buildings (aggregating 7.62

lsf) and 9 Metro Malls (aggregating 6.59 lakh square feet

[lsf]). Red Fort Parsvnath Tower is the one of the largest

commercial projects for the developer with total leasable

area of 2.84 lsf.

· Project construction quality and amenities

The Project is situated on Bhai Veer Singh Marg, near Gole

Market, merely at a distance of just 2 km from Connaught

Place and 4 km from New Delhi Railway Station. Rajiv

Chowk and R K Ashram Marg Metro Stations are at a

distance of less than 3 km from the site. The project is

backed by quality track record of project contractors,

adequate project amenities and recreational facilities

including restaurants and terrace garden. The project

consists of two building towers – one under-construction

building (66% construction completed in terms of project

cost) with 3 basements and 8 floors, and one existing

DMRC building.

· Project legal quality

The land has been provided by Delhi Metro Rail

Corporation (DMRC) for a lease period of 30 years (period

of concession) and as such the title is clear. Besides, the

project has received majority of clearances. However,

approval for electricity and water supply from NDMC, fire

safety approval and revalidation of No-objection Certificate

(NoC) from Pollution Control Board is pending.

· Project financial quality

The project is being funded through a mix of debt and

equity. The funding risk is very low, as the required equity

is fully deployed and the debt is already sanctioned. The

balance construction cost of Rs.56 crore is to be entirely

funded by debt drawdown.

Project Developer

The project is being developed under PEDPL, which is a

Joint Venture between Parsvnath Developers Ltd. (PDL)

and Redfort Capital (RFC). The Parsvnath group has been

in the real estate industry for more than 20 years. The

developer largely focuses on North India. Till March 31,

2012, the Parsvnath group has developed 12 commercial

buildings (aggregating 7.62 lsf) and 9 Metro Malls (6.59

lsf; on lease). The developer uses excel-based MIS

system, wherein the progress of the project is tracked on

a continuous basis by both the developer and the project

management consultants.

Project Details

The Project is situated on Bhai Veer Singh Marg, near Gole

Market, merely at a distance of just 2 km from Connaught

Place, a major Commercial business district in New Delhi,

and 4 km from New Delhi Railway Station. Rajiv Chowk

and R K Ashram Marg Metro Stations are at a distance

of less than 3 km from the site. Hotel Metropolitan is just

behind the project site. Apart from basic facilities like

water provision, power backup, car parking, the project

will have various amenities, including attractive landscape

with terrace garden, modern security and access control

for offices.

CARE Assigns “NCR 6-Star” Rating to Red Fort Parsvnath Tower by Parsvnath Estate Developers Pvt. Ltd.


40

Project Developer Profile

Name of the company developing the project Parsvnath Estate Developers Pvt. Ltd.

Project developer group Parsvnath Group

Development experience of the developer group 21 years

No. of years in the industry 21 years

No. of commercial projects developed till date 12 commercial buildings and 9 Metro Malls

Total commercial area developed till date 14.21 lsf

No. of ongoing projects 50 (77 million sq feet)

Project Profile

Project Name Redfort Capital Parsvnath Tower

Project Type Commercial

Project Location Near Gole Market, Connaught Place

Development Type Lease hold land from DMRC for 30 years

Project Start Date September 27, 2010 (Date of signing of Concession Agreement)

Scheduled Project Completion Date December 31, 2012

Total leasable Area 2.84 lsf

Construction Status The construction work is in advanced stage 66% of the project cost incurred. Civil structure of parking at basements and ground floor and all eight floors has been fully constructed.

PDL had obtained the project from DMRC based on the

competitive bidding process. DMRC has permitted PDL

to assign the development right to PEDPL provided PDL

holds at least 51% share capital in the entity (PDL held

75.5% equity as on March 31, 2012; rest by JV-partner).

The project consists of developing a commercial complex

based on the Concession Agreement (CA) between PDL

and DMRC signed in September 2010. As per the CA,

the developer shall construct and manage: [Basement (3

level) + Ground Floor + 8 floors] on concession for 30

years. The developer shall receive additional space in

an existing DMRC building for providing the ground floor

and 1 level parking in the newly constructed complex

to the shopkeepers affected by DMRC Metro project

at Panchkuia Road, Delhi. Under the CA, DMRC has

stipulated a fixed number and timeline for completing the

Ground Floor area where the rehabilitated shopkeepers

will be accommodated. It shall consist of 143 shops as

per the final building plan approved by the New Delhi

Municipal Corporation (NDMC).

The shops had to be completed within 18 months of the

approval of building plans. PEDPL vide its letter dated

March 30, 2012, informed DMRC that all the shops

at ground floor level had been completed internally for

handover to DMRC.

Construction status of the project

The development of commercial tower is \in advanced

stages of construction with the civil structure of parking at


41

basements and ground floor being fully constructed. The

civil structure of all eight floors is also complete. Overhead

water tanks, lift machine rooms are also complete. As

on March 31, 2012, the developer has incurred 66%

of total construction cost. DMRC building is already

constructed and currently provided to shopkeepers till

their rehabilitation in new office tower.

Brief particulars about various contractors is as follows –

1. Architects

The principal architect of the project is the well-renowned

firm, Sandeep and Suresh Goel and Associates (SGA),

which is based out of Mumbai. The firm was established

in 1967 and has worked on large and reputed projects

like Common Wealth Games Village (Delhi), Integrated

Freight Complex (Dwarka, Delhi), several airports, etc.

2. Structural consultants and civil engineers

Pioneer Consulting Engineers Pvt. Ltd. (PCEPL) was

established in the year 1995 and is engaged in providing

architectural, civil, structural and sanitary and plumbing

consultancy in the field power plant, transmission project,

other industrial projects, commercial complex, bridge,

hotel, hospital, etc. PCEPL team consists of highly qualified

structural engineers from institutions like IITs, quantity

surveyors and CADD draftsmen. The major projects

include Software Park for GE Capital (Hyderabad), World

Trade Centre (Gurgaon), DLF Cyber Green Complex at

Cyber City (Gurgaon), Jindal Hospital Hissar, Ansal Plaza

(Greater Noida). The civil construction work is overseen

by PDL and Larsen and Toubro Limited (L&T). L&T,

established in 1938, is one of the leading Infrastructure

Development, Construction and Project Management

companies in India with pan-India operations.

3. Project management consultants

Masters Management Consultants India Private Ltd. is

the project management consultant for the project. It is

associated with the developer since August 2011 and is

also involved in other projects of the developer as well. Over

the years, Masters has developed experience in the field

of project management and has executed commercial,

residential and industrial projects in Bangalore, Goa,

Jaipur, Jamshedpur, and is executing various projects in

Delhi, Mumbai, Pune, Hyderabad and Kolkata.

Project legal status

· The title of the land is clear, as the same has been

acquired by DMRC from Ministry of Urban Development,

Government of India on leasehold basis (99 years). Ministry

of Urban Developments (MoUD) has authorized DMRC

to use the land for lease/sublease/license/concession for

raising revenue from property development. The land has

been provided by DMRC to PDL for sub-leasing under

concession agreement.

· The developer has received environmental clearance

from Ministry of Environment & Forests and the layout

plan is approved by NDMC for an FSI of 1.25x. However,

approvals for fire safety, electricity supply and water

supply are yet to be obtained. Also, revalidation of No-

objection Certificate (NoC) from Pollution Control Board is

being taken-up by the developer.

Project Financial Status

· The total project cost of Rs.265 crore is being funded

by way of promoter funds (PDL and RFC) of Rs.175 crore

and term loan of Rs.90 crore. With debt fully tied- up and

equity fully deployed, there is negligible funding risk.

· As on March 31, 2012, the project has already

incurred Rs.209 crore towards the upfront fees to DMRC

(Rs.100 crore), construction cost (Rs.82 crore) and other

administrative, marketing and financial costs (Rs.27

crore) which were funded through a mix of promoter

funds and debt. The remaining cost of about Rs.56 crore

will be funded by balance term loan disbursement.


42

Disclaimer

CARE’s rating of real estate projects is an opinion on the developer’s ability to execute the real estate project in timely

manner and with the agreed upon quality standards. Besides, it is an opinion of the legal quality of the project.

The analysis draws heavily from the information provided by the developer, information obtained from sources

believed by CARE to be accurate. However, CARE does not guarantee the accuracy, adequacy or completeness of

any information and is not responsible for any errors or omissions or for the results obtained from the use of such

information. Also, CARE does not guarantee the adequacy of title search done to arrive at the legal

quality of the project. It is also not a recommendation to buy, sell or hold the rated real estate property. CARE shall

also not be liable for any losses incurred by users from any use of such rating. Most of the developers whose real

estate projects are

rated by CARE have paid a rating fee. “Credit Analysis and Research Limited proposes, subject to receipt of requisite

approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has

filed a draft red herring prospectus (“DRHP”) with the Securities and Exchange Board of India (the “SEBI”). The

DRHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead

Managers at www.investmentbank.kotak.com, www.dspml.com, www.edelcap.com, www.icicisecurities.com, www.

idbicapital.com, and www.sbicaps.com. Investors should note that investment in equity shares involves a high

degree of risk and for details relating to the same, see the section titled “Risk Factors” of the DRHP.”

This press release is not for publication or distribution to persons in the United States, and is not an offer for

sale within the United States of any equity shares or any other security of Credit Analysis and Research Limited.

Securities of Credit Analysis and Research Limited, including its equity shares, may not be offered or sold in the

United States absent registration under U.S. securities laws or unless exempt from registration under such laws.

About CARE

Credit Analysis & Research Ltd. (CARE) was promoted in 1993 by some of the leading Indian banks and financial

institutions. Major shareholders of CARE include IDBI Bank, Canara Bank and State Bank of India. CARE is amongst the

premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well

equipped to rate all types of debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid

Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed

Securities etc. CARE’s rating methodologies are in line with the best international practices.


44

Having retired from acting after an illustrious six-decade

long career that saw him performing in over 400 films,

veteran Bollywood actor Pran Krishan Sikand (better

known as Pran) has recently been chosen for the Dada

Saheb Phalke award. The 93-year- old actor will be

conferred the country’s highest cinema award on May

3 this year. Beginning his career as a hero in 1940 with

‘Yamala Jat’, Pran went on to achieve fame as a villian

in numerous films including classics like ‘Milan’ and

‘Kashmir Ki Kali’. He later favoured character roles in

films like ‘Zanjeer’, ‘Upkar’ and ‘Don’.

In a star studded grand finale of the 50th edition of

Femina Miss India, it was 20 year old Navneet Kaur

Dhillon from Chandigarh who took the crown home.

She also won the Femina Miss Glowing Skin award.

Daughter of an Army officer, Navneet is pursuing her

studies in media and is also interested in photography

and swimming. She had to compete with 22 other

girls from different parts of India for the coveted award

and will now represent the country at the international

beauty pageant. Priyanka Chopra was the last Indian to

have won the Miss World title.

Navneet Kaur DhillonPran

be a prosperity seeker


45

Tyler and Cameron Winklevoss, the American twins

who have argued for years that Mark Zuckerberg

stole the idea for Facebook from them have publicly

proclaiimed their massive holdings of virtual currency

BItcoin, amounting to one percent of the total bitcoin

market. Created in 2009 by an anonymous person

(or people) under the pseudonym Satoshi Nakamoto,

bitcoins work on a peer-to-peer computer network.

They are not backed by any government and are worth

only what people are willing to pay for them.

The Winklevoss Twins

name, fame, money, social work… know what gives you a kick!

Global superstar Psy recently debuted his new song

“Gentleman” live at Seoul’s World Cup stadium .

The song clearly echoes a similar dance-vibe of the

Korean rapper’s global smash hit “Gangnam Style”

that received over a billion views on YouTube. While

the horse-style dance style used in “Gangnam Style”

catapulted the song to phenomenal popularity heights,

“Gentleman” too has a signature dance move and the

entire video is filled with a whole lot of sexy hip-swaying

and shaking.

Psy


46

quotemagic

“The first lesson of economics is scarcity: There is never

enough of anything to satisfy all those who want it. The first

lesson of politics is to disregard the first lesson of economics.”

Thomas SowellAmerican economist, social commentator and author of dozens of books, Dr. Thomas Sowell is currently a senior fellow of the Hoover Institution at Stanford University. In 1990, he won the Francis Boyer Award, presented by the American Enterprise Institute. In 2002 he was awarded the National Humanities Medal for prolific scholarship melding history, economics, and political science.


eyecatchers

Mr. Adi GodrejChairman, Godrej Group

An MIT Cambridge graduate, Mr. Adi Godrej heads the 116-year old Godrej Group, an international conglomerate in diverse sectors such as FMCG, consumer durables, real estate, industrial engineering etc.

Mr. Adi Godrej has been named the Ernst & Young Entrepreneur Of The Year 2012. A high-powered, 9-member jury, led by Mr R C Bhargava, Chairman of Maruti Suzuki India, selected the winners from several outstanding self-nominations. Mr. Godrej will be representing India at the Ernst & Young World Entrepreneur of the Year Award in Monte Carlo, Monaco in June 2013.

47

Mr. Adi GodrejChairman, Godrej Group

An MIT Cambridge graduate, Mr. Adi Godrej heads the 116-year old Godrej Group, an international conglomerate in diverse sectors such as FMCG, consumer durables, real estate, industrial engineering etc.

Mr. Adi Godrej has been named the Ernst & Young Entrepreneur Of The Year 2012. A high-powered, 9-member jury, led by Mr R C Bhargava, Chairman of Maruti Suzuki India, selected the winners from several outstanding self-nominations. Mr. Godrej will be representing India at the Ernst & Young World Entrepreneur of the Year Award in Monte Carlo, Monaco in June 2013.


money digitalAN INTRODUCTION TO BITCOINS

48

What if someone tells you that your

wallet will soon be a redundant

accessory. That you can choose to be

your own bank and you may not need

government regulated money anymore

to buy you things you need. AND working on some free

software from the internet, you could sit down and make

money at home!

Bitcoin is a complex subject, but a most important one.

Skeptics would call it an ‘experiment’ in using technology

to turn our financial system upside-down. But the world’s

“first decentralised digital currency” launched in 2009

by a mysterious person (or persons) known only by the

pseudonym Satoshi Nakamato is today one of the hottest

topics trending the globe.



To start with, unlike traditional currencies, which are

issued by central banks, Bitcoin doesn’t have any central

monetary authority. The bitcoin system is more like an

agreement amongst a community of people to use 21

million secure mathematical tokens as money. This is

accomplished by the use of powerful cryptography many

times stronger than that used by banks. Instead of simply

being “sent” coins have to be cryptographically signed

over from one entity to another, essentially putting a lock

and key on each token so that bitcoins can be securely

backed up in multiple places, and so that copying doesn’t

increase the amount you own. And since bitcoins are

given their value by the community, they don’t need to be

accepted by anyone else or backed by any authority to

succeed. They are like a local currency, but at the same

time, much more effective and local to the whole world.

So, what are Bitcoins?

A virtual currency invented in 2009 by an undisclosed

genius somewhere in the world who wanted to create

a currency that would be independent of government.

Probably someone who was angered by the 2008 financial

crash and wanted to put in place a system so that a

person’s money could be secure from the machinations of

politicians and bankers. The Bitcoins are essentially just

a series of letters and numbers that you keep in a virtual

“wallet”. You can send Bitcoins to a person, buy goods or

even donate to non-profit foundations like Wikileaks, P2P

Foundation and others.

What’s So Special About Bitcoins?

Two great things. One, the Bitcoin system allows you to do

anonymous currency transactions and no one will come

to know about the payment or about all other info related

to the payment. Satoshi Nakamato created a peer-to-

peer network - controlled by no central authority but run

by a network of contributors and freedom enthusiasts.

People who donated their time and energy to this novel

innovation.

And two, this genius was also able to solve the problem of

double spending of digital currency in his system. Now,

one would think, if we can make copies of digital data

like MP3s or presentations, wouldn’t that be easy to do

in the case of digital currency? Satoshi Nakamato solved

this problem by showing all transactions in a public list.

Whenever a new transaction takes place, its validity is

checked by confirming from the list. The system makes

sure that the digital currency was not used before. Thus,

no one can copy the currency and re-use.

A Public Listing, Yet Anonymous?

The Bitcoin public listing only shows the transaction ID

and the amount of currency transferred. The individual

using the currency is anonymous because he doesn’t

need to provide any of his or her personal details like

name, address, phone number, email, etc.

How to Use Bitcoins?

Bitcoins are kept in a digital wallet which you can keep in

your computer, or on a website online. The wesite also

manages and secures your wallet for you. You can have

as many wallets and bitcoin addresses (where you receive

money from others) as you would like. Moreover, you can

use Bitcoin software to prevent anyone from tracking your

IP address – thus totally guaranteeing your anonymity.

As per present estimates, there are about 10.71 million

Bitcoins in existence. In one day, more than 45,000

transactions of a total of 2.5 million bitcoins is handled by

the Bitcoin network.

How Do You Get Them?

You can choose to be a Bitcoin miner, someone who is in

the business of ‘mining’ Bitcoins to gain profit. Mining is

a process of extracting Bitcoins currency and Bitcoins are

minted using a special software known as Bitcoin Miner

which tries to find a new block in the chain of Bitcoin

network. Whenever a new block is found, its owner is

gifted with 50 Bitcoins.

planetsavers

Spare the Air-ConAir conditioners can use about 10% more fuel when operating. However, if you are driving at more than 80 km/h, using the air conditioner is better for fuel economy than an open window.


The first thing you’ll notice about Debt is Slavery

is its thin volume. A ‘literally’ lean, mean

personal finance book that doesn’t mince

many words. The author does a great job of

really nailing home a handful of key points:

stop spending money needlessly, avoid debt, be frugal,

move towards extreme savings, ignore the marketing.

The brevity of the book lends it a blunt, direct tone, giving

out clear and useful advice. Packed with knowledge and

perspective, the book gets straight “to-the-point” and

turns out to be an enjoyable read with direct examples

of what to do. Take Chapter 3 for example which says

“Posessions Are a Prison”. Mihalik brings home a rather

stern point - that the most valuable parts of your life aren’t

things, but experiences.

bookshelf

This book is currently available with www.homeshop18.com for ` 738* (Shipping Free).

Debt is Slaveryand 9 Other Things I Wish

My Dad Had Taught Me

About Money

Michael Mihalik


TOWARDS BETTER LIFE INSURANCE


irda’s new guidelines for traditional policies

Termed as the ‘most ambitious project’, the

Insurance Regulatory and Development

Authority (IRDA) has published the traditional

product guidelines in the Gazette of India.

The improved versions of these products are

likely to surface in the market by October this year. The

new guidelines for all life products, among other things,

will offer higher life insurance cover plus other benefits.

At the same time, experts don’t advise deferment of any

plans you may have to buy life insurance till October since

cost of certain insurance products is also likely to rise.

The guidelines have called for traditional insurance

policies that include endowment, money-back and whole

life plans to be client-focused, more clear and transparent.

The insurance regulator’s focus on enhancement of

benefits for policyholders is most evident in the capping

of commissions, provision for minimum sum assured and

guaranteed surrender value. Once implemented, the

guidelines are expected to improve transparency and curb

mis-selling of the traditional products. In 2010, IRDA had

revamped unit-linked insurance plans (ULIPs) norms by

increasing the lock-in period and lowering commissions

on their sale. As a result of this shake-up, ULIP sales all

over the country took a nose-dive. According to IRDA

data, in fiscal 2012, life insurance companies had to pay

Rs 71,208 cr on account of surrender of policies. Also,

ULIP policies for the same period accounted for 68% fo

the total surrender for LIC and upto 98% of the total for

private insurers.

Despite the growing presence of an array of life insurers in

the country, life insurance services do have a long way to

go. With the spotlight now falling on traditional insurance

policies and other important pointers by IRDA, customers

can look forward to an improvement in the overall life

insurance experience. In a few months from now, you

could expect the following changes in the traditional

insurance policies market:

• The ceiling for first year commissions has been put at

15% for the first year for a 5 year term, 30% for 10 years

and 35% for 12 years or more (40% for insurers aged

less than 10 years). If the polices are procured by direct

marketing, IRDA said that no commission will be allowed

for direct marketing.

• The maximum commissions payable has been

defined clearly - single pay commissions is at 2% of

premium paid; for pension products it’s capped at 7.5%;

for regular premiums it varies between 15% and 35% of

first year premium and it is lower for shorter terms.

• The minimum guaranteed surrender value would

be 30% of the total premiums paid less any survival

benefits paid, if policy is surrendered in the second and

third year. If surrendered in the fourth year, it would be

70% of the total premiums paid less any survival benefits

already paid. If surrendered during the fifth to the seventh

policy year, it would be 90% of total premiums paid, less

any survival benefits already paid. The surrender value

beyond the seventh year would need to be filed by the

insurer under the File & Use for clearance.

• IRDA fixed the minimum death benefit at highest of

125% of the single premium or minimum guaranteed

sum assured on maturity or any absolute amount to be

paid on death, for single premium products. For other

products, it will be highest of 10 times the annualised

premium or 105% of all premiums paid on date on death,

or minimum guaranteed sum assured on maturity or any

absolute amount to be paid on death.

• IRDA has directed all insurers to clearly indicate

whether the product is protection-oriented , savings-

focussed or a combination of the two. The minimum

cover, too, has been specified , depending on the age of

the customer. If the customer is under 45 years of age,

the cover will be 10 times the annual premium or 105%

of all premiums paid as on the date of death, whichever is

higher.

• To ensure that life insurance products are of longer

duration, the new guidelines have increased the minimum

premium paying term of the policy to five years.


Vaastu Entrance

54

Vaastu Shree, Vaastu Visharad

Shri Naresh Singal,

Vaastu & Feng-Shui Consultant.

For any further queries on the

subject, readers can contact him

on mail@vaastunareshcom


I always say, Vaastu is a science not superstition.

People have followed Vaastu rules since ancient

times. They were very careful in planning of their

houses. Especially, they used to give topmost

priority to the entrance of their premises. Still you

can see auspicious signs and symbols at the entrance of

old buildings. These symbols and signs were not meant

for decoration purpose, rather they signify the application

of Vaastu for the benefit of the inhabitants.

Entrance does matter for any kind of construction,

whether it is residential or commercial. It is the face of a

building. As our face gives idea about our inner qualities,

in the same manner, the entrance of the building shows

the lifestyle of the members living therein. We should be

very careful about the entrance of the house. Given below

are some Vaastu guidelines regarding entrance/gates that

should be borne in mind while constructing a house:

SPECIFICATIONS FOR MAIN GATE AS PER VAASTU

• Every plot should have two gates for entry, a big gate

for vehicles and a smaller gate for people.

• The gates should not be at the extreme corners.

• The entrance to the house should be in direct

approach to the main gate.

• Gates should be avoided in South-West.

• Avoid big tree in front of the gate. Big trees produce

chayavedh, which is not good for the residents.

• Avoid any ditch in front of the gate and even in the

pathway leading to front gate.

• No open well should be in front of the gate.

• There should be no decaying or rundown or a house

in bad condition in front of the gate.

• There should be no pole of any sort in front of the

gate.

• There should not be any underground water tank,

septic tank etc. under the main entrance.

• Inauspicious pictures shouldn’t be on the main door.

• Shoes shouldn’t be kept in front of the main door.

• The door should have threshold.

• The door shouldn’t be slanted, sliding or circular.

EFFECTS OF GATE AS PER VAASTU

• If the main gate is on the east and the north sides it

leads to prosperity and fame.

• If there are gates on the east and the west sides

leads to happiness and riches.

• If the gates are on the north and the west sides

it bring only wealth. It has also been seen that they

increase an individual`s interest in the spiritual aspects.

• If there is a gate only in the east direction it leads to

overall prosperity.

• A northern gate symbolizes material comforts.

• As per vaastu if the gate is in the west side then

there will be a considerable profit in business. But

this profit is short-term. After some years a slump

will be experienced.

• Remember to avoid the south-west gate completely.

Under no conditions should the gate be built on this

side. It leads to hazards and difficulties.


56

Indu Jain is the current Chairperson of India’s biggest media group, Bennett, Coleman & Co Ltd, which also owns the Times Group. A spiritualist at heart, Indu is known for different identities, that is from being entrepreneur to humanist to educationalist and is also a committed patron of art and culture. She is the founder and President of the Times Foundation, which gives primarily to educational causes. Under her guidance, the Times Foundation runs community services, research groups and relief funds for various disaster reliefs such as floods, cyclones, earthquakes and epidemics. She is an active supporter of women’s rights, and her passionate fight for various causes is well-known.

Indu JainAge 76 yrs


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Property & Wealth_Apr 2013