ICCPL PROPERTY NEWS

EXCLUSIVE SHOWCASE BY GULSHAN HOMZ OF ITS CLUB S.O.F.T. AT GULSHAN IKEBANA

Delhi/NCR: In an exclusive meet and greet event organized by Gulshan Homz; the company recently showcased its extraordinary club “S.O.F.T.” located at its project ‘Gulshan Ikebana’. The event was attended by many prominent developers of NCR like Ajnara India Ltd. and Prateek Group as well as leading property consultants and investors from Delhi/NCR.

The club boasts of world class architecture with hi-tech amenities like AC gymnasium, yoga centre, open to sky swimming pool, huge welcome lounge, business conference arena, internet connectivity and many more amenities which makes S.O.F.T the best place for residents to relax and enjoy the finest of living. The look of the club would make the residents feel proud and confident about the sound investment they made with Ikebana.

Gulshan Ikebana is strategically located in sector 143 Noida Expressway and features several world class amenities and facilities. The property offers three bedroom choices mainly in four sizes. The location of sector 143 offers pristine locales and easy accessibility. To get a sense about the quality of the project and its features one can have a visit at S.O.F.T, Club at Ikebana which is now ready to showcase. The extraordinary club is meant exclusively for the residents of Gulshan Ikebana.  The experience of WOW factor of Ikebana club rejuvenates the soul and body.

Filled with joy and excitement, Mr. Deepak Kapoor, Director Gulshan Homz & President CREDAI, Western U.P. said, “We are proud to present the Ikebana Club “S.OF.T.” for the exclusive showcase where we would like to display the features of our club. The club is the main highlight of our project which is infused with all the modern facilities to make the experience of residents more tranquil and relaxing. AC gymnasium, welcome lounge, business conference arena, restaurant are some among many latest and hi-tech amenities in the club. We have kept no stones unturned when it comes to providing luxury in this project.”

About Gulshan Homz

Gulshan Homz has been greatly recognized in the sector for being one of the most promising and fast growing companies. And this foundation is laid by the Founder & Managing Director, Mr. Gulshan Nagpal, that Gulshan Homz has stood rock solid for more than 25 years. The foresightedness of Mr. Nagpal has helped the company envision and improvise its skills. No wonder then, today the structures speak for themselves and future looks bright with a number of premium projects already in the market. Gulshan Homz is a stamp of excellence, an organisation of invaluable experience and a company that boasts of honesty morals, integrity, transparency and ethics.

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ICCPL PROPERTY NEWS

INCREASED SERVICE TAX TO DENT REAL ESTATE SECTOR

Finance Minister, Arun Jaitley had announced changes in the service tax structure in the Budget 2015 – 16. The new service tax would now be applicable commencing 1st June, 2015. Recently, the finance minister declared that the new Service Tax Rate would be increased to 14% from the existing 12.36% with effect from 1st June onwards. In his budget speech, Jaitley had said that to facilitate a smooth transition to levy tax on services by both the centre and the states, “it is proposed to increase the present rate” of service tax plus education cess from 12.36% to a consolidated rate of 14%.

Service tax is imposed on all the services except a few. Insurance, phone bills, restaurant bills, advertising, tour operators, air travel, credit cards, several construction elements, event management, architecture services are few among many to attract tax. This escalation in service tax rates would also have direct impact on realty sector and buyers would now have to shell out extra money to buy their dream homes; though marginally. The construction cost will go up as there would be increase in the prices of raw materials and other service related activities; as a result, prices will shoot up for under construction properties. Service tax is imposed on all the services as in the case of under construction property the developer is deemed to provide construction services to the home buyer. The cost of land is not included while calculating service tax, instead it is charged on the cost of construction. For the purpose of calculating service tax on property less than 1 crore of value, 25% of the service tax of the base price of the said under construction property is taken and service tax is applied on this. In case of property of more than 1 crore of value, service tax is applied on 30% of the service tax of the base price of that under construction property.

At present, the effective rate on the entire value of a property below Rs.1 crore is 3.09% (25% of 12.36% of property value) and for a property above Rs.1 crore, the effective rate on the entire value of the property is 3.71% (30% of 12.36% of property value). It will become 3.50% (25% of 14% of property value) for properties valued below Rs.1 crore and 4.2% (30% of 14% of property value) for properties above Rs.1 crore.  Increase in service tax will also have effect on other costs such as legal fee, property valuers, property agents, home insurance, bank loan rates etc.

Below is a table as an example to show the effect of increase in service tax from 12.36% to 14% on different basic selling prices (BSP). The table shows the amount of present as well as increased service tax and the difference in amount of both the figures. Below figures are different basic prices which do not include other variable costs such as car parking, preferential location charge (PLC), club membership, legal fees, home insurance, shifting charges etc. These costs are also paid by the home buyers as additional facilities. There are certain charges such as maintenance and internal development charges which are exempt from service tax.

Effect Of Increased Service Tax:

Basic Selling Price Existing Service Tax Rate Existing Amount New Service Tax Rate New Amount Difference
25 lakhs 3.09 % 77,250 3.50 % 87,500 10,250
50 lakhs 3.09 % 1,54.500 3.50 % 1,75,000 20,500
75 lakhs 3.09 % 2,31,750 3.50 % 2,62,500 30,750
1 crore 3.09 % 3,09,000 3.50 % 3,50,000 41,000
1.5 crores 3.71 5,56,500 4.20 % 6,30,000 73,500
2 crores 3.71 7,42,000 4.20 % 8,40,000 98,000

The increase in service tax will however not affect those who have already got the possession or it’s a ready-to-move-in property or if the project has been given a completion certificate. On the other hand, home buyers who are planning to buy or invest in under construction property will have to bear the additional service tax along with those who have booked an under construction unit. Although, the increase in service tax rate is effecting within a range of 10 thousand to 1 lakh for properties ranging from 25 lakhs to 2 crores; it will make the buyers pull out additional amount. The macro problem can cause the equation to get much worse here, as almost everything gets affected by increase in service tax. Therefore, after spending extra in bits on everything; the overall purchasing power of a customer gets affected which might pull them back to buy a property.

Mr. Deepak Kapoor, President CREDAI Western U.P & Director, Gulshan Homz, says “The government’s decision to hike service tax rate is definitely going to put some extra monetary burden on the buyers. Real estate in our country is witnessing a lot of construction which will now see a dent in the buyer’s demand, but marginally. Customers will now have to spend extra to buy their homes as they’ll be also paying extra in every service that they receive”.

Mr. Mahipal Singh Raghav, CMD, MMR Group, says “The increase in service tax will definitely increase the overall cost of buying a property. This will create extra pressure on the pockets of buyers who otherwise are already being affected by rising property prices. We are expecting the demand to move down a little post June this year”.

Mr. Vikas Bhasin, MD, Saya Homes, says, “A hike in service tax from 12.36 percent to 14 percent will lead to increase in the prices of under construction properties. The decision was out during the budget itself and it was just a matter of time when it is made applicable. From June onwards, the demand will surely get negatively affected as it will be hard for customers to bear the extra burden of incremental value”.

Mr. Prithvi Raj Kasana, MD, Morpheus Group, said, “Property prices will rise to some extent and this would make properties costlier to buyers. Construction services and other costs are also included in the tax as a result of which there would be a hike in property prices. The bigger problem is that this is not pertaining only to this sector as the overall purchasing power of a customer gets affected”.

Mr. Rupesh Gupta, Director, JM Housing, said, “The effect of increase in service tax will not just be on the basic selling price but other charges as well such as PLC, club membership, legal fees, insurance etc. which is variable in nature; will also have increased service tax rates now. This incremental value will increase the overall price of the unit which will be borne by the customer only”.

ICCPL PROPERTY NEWS

MODI LED BJP GOVERNMENT’S ONE YEAR REPORT CARD

 

A year ago, Prime Minister Narendra Modi’s BJP party came into power with big majority following lots of positive sentiments and was voted to take authority on May 26, 2014. Over the period of one year, the Modi governance has brought with it many victories and several key factors are still left in pipeline. Positively all this has helped in progression of economic growth. However, still there are areas where focus and attention need to be paid to bring in sustained growth. “The first year of the Modi government is one of the best years for India in terms of liberalization and economic reforms”, a top US expert has said. Based on the data and facts from previous year, the overall growth is picking up pace, though maybe not to the desired extent. Modi government’s promise of “Ache Din” raised the expectations of the general public and everybody looked onto the government with new hopes and aspirations. Although the economy is much better now than what Modi government inherited, there are loopholes left due to which the government is not able to move as fast as expected.

Indian real estate market is largely driven by sentiments and the stakeholder’s sentiments witnessed remarkable improvements during the Modi led BJP government. Under the leadership of Narendra Modi, real estate sector got many optimistic surprises. The first budget under the headship of Modi government laid special emphasis on the need of housing which in turn benefitted the Indian realty market but also missed out on various important elements such as infra status for the sector, single window clearance system, declaring newer land parcels, reducing cost of allocation of land and much more. The major promises by Modi government were the development of 100 smart cities, planning for low cost housing, housing for all by 2022, anti-corruption, amendments to land bill, real estate regulatory bill, FDI and bringing the new land use policy. Overall, the Modi governance has brought plans and strategies which are meant for better economic development and growth.  The years prior to Modi governance, were not that good for real estate sector as the sales dropped and inventories rose. On the contrary, real estate sector got positive results and experienced better outcomes during the second half of 2014 when the new government came into power.  Mr. Prithvi Raj Kasana, MD, Morpheus Group, says; “The first two quarters of 2014 had a sluggish market due to political instability across the country but the last two quarters showed lot of improvements, once a new stable government got settled. New projects were announced and developers started to clear their inventories due to rise in positive sentiments. There is a lot of hope from the upcoming years and first quarter of this year has certainly not disappointed us. It is expected that realty sector will boost under the new government and will benefit all; the developers, buyers and economy as well”.

First two quarters of 2014 had seen property prices freeze, as a result of weakening rupee and high inflation had a negative impact on spending as well. During second half of 2014 inflation was kept on a check and fiscal deficit saw improvements thus, property prices showed up an upward trend. The residential and commercial spaces contributed maximum to the real estate sector with respect to capital appreciation and demand. Not just this, the owners of commercial properties were slightly better off as there was increase in rental yields due to rise in capital values in 2014. The residential property in our country is divided majorly into affordable housing, mid-level priced houses and the luxury housing. In terms of growth and development, the NCR regions did not show much improvement in the first half of year 2014 and overall the year 2014 saw delays in approvals, clearances and finishing projects and meeting targets; and as a result there was a backlog of unsold property. 2015 will focus more on recovery and inventory clearance. Mr. Deepak Kapoor, President CREDAI Western U.P. & Director, Gulshan Homz said, “As far as returns are concerned, 2014 was not the best of years. In the initial months, sales were below expected and investors had dried the market thereby freezing the prices in key regions. High inventories and low absorption rate indicate it will take time for things to pick up. However, the final few months of 2014 and the first quarter of 2015 has shown positive result for the realty sector. The government has played a vital role in creating a pool of sentiments for the public which has started to show results. The only thing now remains to see are, how it delivers the bigger promises made for this sector”.

The work for better and efficient infrastructure came out with the government announcing the initiative of developing 100 smart cities across the country thereby promoting urbanization and smart & enhanced living for the public. Although, the plan is still in its early days with no blueprints and layouts finalized apart from few names of the cities mentioned. The idea of developing 100 integrated cities with the best technological advancements will change the face of the country in the upcoming decades. The cabinet has given it a nod which sets the pace up for this project. With an outlay plan of Rs. 48,000 crores, there will be a lot of FDI required in each industry. Mr. Rajesh Goyal, MD, RG Group says “The development of smart cities is a crucial step for urbanization and development of the nation. With this move, a lot of FDI will be attracted in the country which will help boost the investors market and the real estate sector will have a huge scope for development in the upcoming few years. Smart cities will provide customers with a lot of innovative offerings and a hi-tech city to cater to all the requirements of the residents and users. Earlier this year, India and US had singed a MoU for the development of 3 smart cities namely; Allahabad, Ajmer and Vizag. With this decision, a major push for the plan of 100 smart cities will finally get a start”. Also, China and Japan has shown a keen interest in developing more sister cities in India to push the plan of smart cities further. The two countries have always invested in India in a big manner; and there recent decisions suggest greater help in the development of smart cities.

The budget presented by Modi government had eased the rules regarding REITs. It seeks to rationalize the capital gain regime for sponsors exiting at the time of listing subject to payment of Securities Transaction Tax. The budget also proposed to convert gold into financial savings, simplifying Real Estate Investment Trusts (REITs) and discouraged cash transitions. In addition to this, rental incomes from assets directly held by the REITs is suggested to be taxed in the hands of unit holders. REITs work like mutual funds and invest in property. The income from these investments is distributed among unit holders. Mr. Rupesh Gupta, Director, JM Housing, said; “Indian realty market is a highly sentiment driven sector. The change in the government last year had also changed the mind-set of the people with big promises made by the government for the betterment of the country as a whole. However, the new policy has eased rules regarding REITs; so we are expecting a huge impact in the coming few years once the technical glitches are removed. It is believed that Real estate construction market is poised to grow by 20 per cent between now and 2017, which will largely be due to growth of infrastructure, increase in FDI in real estate, faster clearances of projects and other such hurdles which block the growth”.

The Modi government has made necessary changes in FDI to bring in more investments. The apex body had reduced minimum floor area required for foreign direct investment (FDI) in projects from 50,000 square metres (sq. m) to 20,000 sq. m. It has also reduced the minimum capital required from $10 million to $5 million, making more and more projects eligible for FDI. All in all, to relax FDI rule it has also done away with the three-year lock-in period. Mr. Mahipal Singh Raghav, CMD, MMR Group, said; “Reduction in the minimum floor area required for foreign direct investment in projects and also the condensed minimum capital required to $5 million will act as a catalyst for real estate growth over the next decade. Three-year lock-in period for FDI has been removed in the fresh bill. This was one of the most positive steps taken by the government for the development of infrastructure and further growth of the country during its one year tenure. Apart from attracting FDI, there have been a series of crucial announcements done to promote growth and development across the nation”.

In order to boost affordable housing and make realty the dream of housing for all by 2022, Modi government had kick started several measures and allocated Rs. 4,000 crore to the National Housing Bank for increasing the flow of credit for affordable housing. Changes were also notified in rules for this scheme to help buyers in purchasing homes. In the final quarter last year, HUDA and DDA came out with its affordable housing schemes which created a ripple effect of demand and provoked several private players across the country to come out with more affordable projects, thereby helping the cause of low cost housing and meeting government’s target of housing for all. Mr. Ashok Gupta, CMD, Ajnara India Ltd. says, “Shortage of affordable housing was a huge catch by the Modi government and it had already included it in its manifesto during elections. A lot of work has been planned and carried out for this aspect which can be a major breakthrough in the coming years. To take support from private players, it will be imperative that land prices are dropped, new parcels are released and basic infrastructure is provided in all regions with growth plan. One year is still a pretty less time to judge a new government’s performance; but the ideas are ambitious and laid down very well for a good development in coming times”.

Modi government introduced the revised Real Estate Regulatory Bill which aimed at systematic development and growth of real estate sector. It is meant to benefit everyone linked up with real estate sector. Clearance of real estate bill will make ways for uniform governing mechanism across the realty sector and will add to the credibility and reliability of country’s unregulated real estate sector. Mr. Kushagr Ansal, Director, Ansal Housing, says; “The election of a stable government boosted investor’s sentiment. Also, the government announced steps to bring relief to the sector. REITs became real, there was relaxation made in FDI and Real Estate Regulation Bill has changed the entire geography of realty sector in the last one year. The new government has brought a ray of hope for more growth and transparency for this sector”.

Another important announcement made by Modi government within its maiden year of service to the nation; where it recently came out with an aspiring plan for enhancing the infrastructure of our country and to improve the connectivity of west to east land borders. A grand road is being planned to be constructed by the name of “Bharat Mala”. The road network will stretch from Gujarat in the west to Mizoram in the east and cover 10 major states. Mr. Vikas Bhasin, MD, Saya Homes says “Good connectivity and infrastructure is the backbone of real estate sector. It has always been observed that regions with better connectivity and major roadways has transformed into a much sorted destination where investors are later followed by residents. The country in general will receive benefit from such plan and economic boost is assured. Speaking about the government’s record for the last one year; various plans had been made which are in pipeline but much is till left. With time, we feel there is still a lot to come from this government”.

Looking at a macro perspective, the initiative of Goods and Services tax (GST) by this government will bring a much transparent picture to every transaction in the country and help in avoiding the confusion of multiple taxes. The recently passed black money bill is again a great achievement for this government which is determined to curb corruption and promote transparency. Real estate sector is not an independent sector and thus, it relies heavily on its allied industries to perform which includes; steel, cement, banking, manufacturing and other such key industries. The “Make In India” plan is ready to boost the manufacturing and infrastructure of the country which will directly benefit this sector. One of the very visible sights that the country has been witnessing is the small trips that Narendra Modi has been making to various countries, spreading the message of developing a new and better India has somewhere persuaded global giants to invest in India. On the flipside, there has not been much progress on the land bill since the time it was first approved by the previous government, and even after the recent amendments made in the bill by the Modi government. Modi’s grand visions are directly related to the success of this bill, which could be cleared by the joint committee in the upcoming monsoon session. Also, there is still a lot of clarity needed for smart cities project, housing for all by 2022 plan, real estate bill and other major projects.

Needless to mention that BJP led Modi government is trying to change the face of our country by good ideation and strategies, one year of Modi governance has witnessed notable changes in all the sectors, real estate being no exception, with few areas still left out. From following new and innovative approaches for fast and better development of the nation to bringing  fundamental changes in paradigms of working, Modi government is leaving no stones unturned to get our country enthroned as one of the best and the most developed nation across the globe.

ICCPL PROPERTY NEWS

BUYERS AND DEVELOPERS OF NOIDA EXTENSION GET A MUCH NEEDED RELIEF

After years of high pressure and tension amongst the buyers and developers of Noida extension, the Supreme Court has upheld an earlier order by the Allahabad high Court on land acquisition in Greater Noida West region, wherein 10 percent of the developed was to be given to the farmers of the region along with additional compensation. As much as 64 percent of additional compensation will be given to farmers, i.e. from Rs. 850 per sq. yard to Rs. 1,400 per sq. yard along with 10 percent developed land.

With this move, there is no further obstruction left for construction purpose. The region of Greater Noida west was heavily under pressure which shifted its burden greatly on the real estate market. The demand over the years saw a dip in the region due to construction process being halted several occasions along with public unrests. With this decision, there is clarity and now this will help the buyers and builders immensely. Over 1.5 lakh buyers were affected for several years due to this issue being stretched and this resulted in delay in construction which gave way to possession delays. On the other hand, the developers will now have to stick to their timelines as clear directions are being laid. The step taken by the apex Court is pro-public and development centric which will allow a better growth in the region. Realty sector is overjoyed with this move and has welcomed this decision which was not only affecting the present customer base but future demand for the rapid emerging destination like Greater Noida West.

Welcoming the move, Mr. Prithvi Raj Kasana, MD, Morpheus Group said “Somewhere it is important that the apex body takes a firm step to make sure that all barriers and hindrances are removed from the path of development. This decision might sound against the farmers, but somewhere it is a pro development step which had to be taken sooner or later. The compensation amount is good, but now it will be interesting to see whether this hike is passed on or not”.

Mr. Mahipal Singh Raghav, CMD, MMR Group said “For a governing body, it is hard to satisfy everyone’s needs. Farmers are feeling left out and cheated, but this step is a crucial  move to make sure development takes place without further halts and the compensation amount is now better than before. Because of this issue, already a lot of infrastructural decisions have delayed and thus, this decision was pretty much anticipated”.

Mr. Rupesh Gupta, Director, JM Housing said “This is great news for the buyers and developers of the region as already a lot of hurdles were faced by both due to delays caused over the years. A new problem might arise after few years as now the land will cost more; the burden of which might be passed on to the customers. But looking at the decreasing demand graph, developers will have to play a wait and watch game before taking any move”.

Mr. Deepak Kapoor, President CREDAI Western U.P. & Director, Gulshan Homz said “Looking behind at the delays caused on land issue over the years, this is great news for the buyers as well as for the developers of the region. It’s very crucial to remove all the obstructions to boost the development of the region. Farmers may feel neglected but this step had to be taken either now or later for the economic development”.

Mr. Ashok Gupta, CMD, Ajnara India Ltd. said “Satisfying needs of buyers, developers and farmers is hard on a single go. Still, farmers are offered a good amount of compensation. As this move is for the betterment of our nation, it should be accepted by everyone and all the hurdles should be removed and this can only be done by the mutual understanding between all the parties”.

Mr. Naveen Goel, MD, Radhey Krishna Group said “Supreme Court’s decision on compensation clause is a well thought move which will benefit the development and growth.  It might not be acceptable for farmers but logically in future the cost of land will definitely go up for which the burden might be passed on the customers. So, it’s better that land is acquired at present without delaying the process further”.

Mr. Vikas Bhasin, MD, Saya Homes said “This move is a win-win situation for all; buyers, developers and farmers also. Farmers are getting around 64 percent of compensation along with 10 percent developed land, which is a good move. Now the only question will remain whether the burden in future will be passed on to the customers and this region will become costlier or not”.

ICCPL PROPERTY NEWS

ICCPL AND DAMS MEDIA LAUNCHES CHROMOHOMES

 

Delhi/NCR: ICCPL along with DAMS media today announced their strategic alliance by launching its monthly magazine “Chromohomes”. For the very first time, “Chromohomes” marks the association between the two groups for bringing the first real estate magazine of its kind covering the entire nation. Chromohomes is the first PAN India real estate magazine with multiple editions coming in near future. The magazine was unveiled in the presence of stalwarts of real estate sector.

The event was graced by real estate fraternity where, Mr. Deepak Kapoor, President CREDAI western U.P., Mr. Vineet Gupta, Director, Ajnara India Ltd., Mr. Rajesh Goyal, MD, RG Group, Mr. Rakesh Yadav, MD, Antriksh Group and Mr. Sushant Muttreja, CMD, Cosmic Group expressed their views and thoughts about chromohomes. The first edition of Chromohomes has a distinct theme featuring the success stories of prominent and apex real estate fraternities of Delhi/NCR, which greatly impressed the event attendees.

Speaking about the magazine, Ms. Ambika Saxena, CEO & Publisher, Chromohomes, said, “After hours and days of hard work, we have finally launched the first edition of Chromohomes. Working on the first edition was very enriching experience and we are excited to bring monthly publications which appeals to everyone in real estate. Each edition will provide exclusive insights about the Indian real estate market and connected sectors as well”.

ICCPL is the PR &Marketing partner for Chromohomes and is the parent company launching the new magazine. Mr. Dushyant Sinha, Director, ICCPL says, “We are happy to launch Chromohomes in collaboration with DAMS Media. It’s a big achievement for ICCPL to get Chromohomes with us. The magazine is a fresh innovation bringing PAN India real estate on one platform. With this inaugural edition, we welcome Chromohomes to India.”

Chromohomes would be a monthly real estate magazine. Thorough research of each and every realty chunk would be printed every month. Chromohomes has a strong vision to be a PAN India magazine, in the upcoming years. Chromohomes will feature all the key real estate information like realty updates and news, real estate trends, projects, companies’ listings, property listings, residential and commercial projects, mix­land projects, pricing, realty brokers, agents, market analysis, in­depth interviews of industry professionals and all the relevant information associated with real estate market.

ICCPL PROPERTY NEWS

REALTY SECTOR’S OUTLOOK ON “BHARAT MALA”

Infrastructure is the key driver of any economy and is responsible for the growth and development of the country. Indian economy is on its way to advancement and development and therefore is a hot destination for investments. This sector has been enjoying great attention from foreign investors too. Our government is also not leaving any stone unturned to boost the infrastructural development of our country. Policies have been designed to encourage public private partnerships and PPPs are being considered to meet the infrastructure growth. From roadways to railways and smart cities initiatives, this sector has witnessed remarkable growth in past few decades. The possibilities and prospects of infrastructural growth in our country are enormous.

The quality of infrastructure is very important for real estate sector as infrastructure and realty sector is directly related to each other. The systems and structures in infrastructure are important factors which influence the real estate investment decisions of buyers at any particular place. Investment priorities are always given to places or cities with good infrastructural set-up. Good road networks, bridges and other infra facilities are considered when investing in real estate. Be it developers or buyers, infrastructure of any place is always the top concern while making an investment decision. Infrastructure boosts the growth of the area as it is an important factor to retain and attract investments. Public’s willingness to reside in a particular area is profoundly dependent on the infrastructure of that place. Realty firms would also like to put up their projects at a place with good infra facilities.

In order to enhance the infrastructure of our country and to improve the connectivity of west to east land borders, a grand road is being planned to be constructed. Modi government has an ambitious plan for it and the project is named “Bharat Mala”. The scheme, called Bharat Mala, envisages approximately 5,300 km of roads which would require investments of around Rs 12,000 – 14,000 crores. The road network will stretch from Gujarat in the west to Mizoram in the east and cover 15 other states namely; Gujarat, Rajasthan, Punjab, J&K, Himachal, Uttrakhand, Uttar Pradesh, Bihar, West Bengal, Sikkim, Assam, Arunachal Pradesh, Nagaland, Manipur and Mizoram. The road network will pass through all the bordering states Nepal, Bangladesh, China, Pakistan and Bhutan. The ministry targets to complete this project in a span of 5 years, which is expected to take off within two years. This grand road would definitely be a garland for the territory of Bharat. Our former Prime Minister, Mr. Atal Bihari Vajpayee dreamt of Golden Quadrilateral a sort of road network to connect Delhi, Mumbai, Kolkata and Chennai, and hence its name. The scheme gave a boost to highway constructions in our country. The new project “Bharat Mala” has great economic and strategic significance. If the plan works for construction of such magnificent road network, the armed forces will be benefitted a lot and it would deliver better and easier access to border areas. Supplies to Indian troops as well as military transportation at present take place through poor quality roads. Bharat Mala is designed to address this too.  Not only this, with such a road system our country can expect better trade opportunities with the adjoining countries as well.

However, there are few challenges involved too. The two major challenges being land acquisition and environmental clearances. The previous data shows that there are number of projects remaining incomplete till date. Until January 2014, as many as 161 projects out of 220 projects under the public private partnerships mode, costing around Rs. 83,000 crores were unfinished. Between April 2014 and January 2015, the road ministry completed construction of only about 3,038 kilometers of road against the target of 6300 kilometers of road. All these facts show that Indian Road sector has been little messy in the past years. This upcoming project, “Bharat Mala”, might remain to be merely aspiring and fancying if no proper and determined plans and tactics are designed. Therefore, it’s essential to carry out this project in a planned and organized manner so that it is completed on time, becoming an outstanding project which will be an asset for the country and appreciated all over the world.

Real estate sector is expected to get the better off from this project as a lot of land parcels will be made available for residential, commercial and industrial construction. Already, the Northern real estate of India is on a rapid development spree. A development of this scale will bring with it huge scope of further growth of realty sector of West, North and Eastern zones of the country. Mr. Ashok Gupta, CMD, Ajnara India Ltd., says “Such road plans and networks which connect states have always been targeted by real estate developers. Like various National Highways such as NH 8, 24, 58 and others, this west to east corridor will greatly help in shaping up the sector. This step is highly welcomed by the sector and goes to show that this government wishes overall growth and development of the country”.

Mr. Prithvi Raj Kasana, MD, Morpheus Group says “By constructing a grand road from east to west borders of the country, the connectivity will drastically improve which will be of great economic significance. The biggest benefit of such huge scale development is that by covering 15 states, a lot of urbanisation will be possible. Apart from connectivity and infrastructure, developers will have access to a larger land bank thereby enhancing possibilities to development”.

Mr. Kushagr Ansal, Director, Ansal Housing says “Once this project gets planned and operational, the even better news will follow. Mammoth foreign direct investments will be attracted as so much of land bank will be available. Imagine the kind of job opportunities that will be created once the roadway commences. There will be a huge benefit to the economy from all possible sides; a win-win situation for all”.

Mr. Mahipal Singh Raghav, CMD, MMR Group says “Good connectivity and infrastructure is the backbone of real estate sector. It has always been observed that regions with better connectivity and major roadways has transformed into a much sorted destination where investors are later followed by residents. The country in general will receive benefit from such plan and economic boost is assured”.

Mr. Naveen Goel, MD, Radhey Krishna Group says “India needs more and better road for freight and travel. This project will provide superior road-connectivity to different border regions in a structural way. Our trade relations with the neighbouring states and countries will also improve with such a road network. Real estate sector will benefit the most out of this project as there will be a lot of residential, commercial and industrial construction work required”.

ICCPL PROPERTY NEWS

SECTOR CHEERS FOR ITS PILLARS ON LABOUR DAY

 

Real estate sector is one of the biggest employment generating sectors in our country. It generates high level of direct employment opportunities at different levels in addition to stimulating the employment prospects in associated industries as well. Due to the fact that real estate sector has tremendous potential and has extensive employment generating capacity; it is one of the biggest contributor to India’s GDP. Real estate sector heavily relies on the work force. Manpower is one of the biggest contributor and sturdiest pillar of realty sector. The outstanding role which the workforce has played in the success of para mounting real estate segment is commendable. For the same, realty sector has always given a supporting hand to its workforce. Facilities and services are given to its employees of all classes to make the working conditions better and enjoyable for them.

To improve the quality of life and working conditions and to mark homage to the workers for their efforts made to strengthen the well-being of the country, Labour Day is celebrated annually on 1st May every year across the globe. Labour Day, celebrates the achievements of workforces around the world. The day was first celebrated in 1882 and since then it is officially celebrated as World Labour Day. Real estate has great contribution of manpower in its success and growth and the place this sector has attained today is a lot due to the hard work of workforce associated with it.

Workforce or human capital is the main engine of any industry or sector. Real estate sector is no exception and this is the reason that realty sector has always given extra care and attention towards its employees. This not only helps in improving the quality of lives of its employees but it is also a great help to society too. Realty firms make constant efforts and provide facilities to its employees of all levels ranging from top and middle level to labour class to improve their working conditions and to uplift their status too.  Various realty firms organize free health check-up camps on sites for its laborers and their families. They are sometimes also allowed to build temporary homes on sites for their stay. Schools are built to provide education to children of laboures as these lower segment people might not afford to send their children to schools. Free education and books are provided to their children. Not just this, these laboures are donated clothes and food at times. During summers they are provided free water/fluids and seasonal fruits/vegetables to keep cool. Sheds are also built to allow them some rest during working hours. During winters blankets and woolens are distributed among workers. Raincoats and umbrellas are provided during monsoon. Apart from this, many other facilities are given like masks to prevent inhaling dust, helmets for safety, aprons and gloves to wear while working on construction sites, organizing workshops and training sessions etc.

The manpower in offices too are given due attention. They are given facilities like bonus and incentives on festivals or on performance basis. Ladies are provided cab facilities keeping in mind their safety. Working conditions are made better by providing neat and clean environment. Many developers also give special discounts to their employees on purchase of property in own projects. All these small steps and measures not only make the employees happy but also develop trust and loyalty towards their organizations. These measures help in retaining employees and building long term relationships with them. The sector would also like to express its gratitude towards its workforce for their continuous support:

Mr. Rajesh Goyal, MD, RG Group, says; “Manpower is very important in real estate sector as this sector heavily relies on it. Labour that works 24×7 outside in extreme conditions like rain, heat, etc. is appreciable. Raw materials are only a basic element of real estate but the work done by labours and the way they do it is remarkable. We would like to convey our heart full thanks to the labours of RG Group whose work is praiseworthy”.

Mr. Arvinder Singh, MD, Agrante Realty Ltd. says “For us, labours are the first price. We would like to take this opportunity to thank all the employees working with us and across the globe as well. Without their insight, energy and continuous support, the work of construction in real estate sector would not have kick-started and neither would have reached fruitfulness.”

Mr. Deepak Kapoor, President CREDAI – Western U.P. & Director, Gulshan Homz says “We understand the importance of our employees and for this we always try to do extra bit from our end so as to keep them satisfied. We acknowledge their hard work and their efforts which make us stronger together as a family. Today, tomorrow and each day is their day and on this special occasion we thank them for their constant support”.

Mr. Rupesh Gupta, Director, JM Housing, says; “Each and every structure that stands tall today is because of our highly dedicated labour and its expertise. We would like to thank them for their sincere efforts and thorough hard work that has allowed us and our work to be known to public. We believe in building long lasting relations with them as we all work as a team and one family”.

Mr. Vikas Bhasin, MD, Saya Homes, says “A company or a business is successful only when its manpower delivers. It is a team that performs and never an individual. All the employees are precious to us and we are grateful for their efforts they put in to help us grow. Today we celebrate their success and efforts; and hope for their best in future as well”.