2. Gulf Property 71
110 million
homes in 7
years!
110 million
homes in 7
years!
India PropertyIndia PropertyExtensive coverage of India’s real estate, construction and economic landscape
SEPTEMBER2015
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3. INDIACORNER
72 Gulf Property
UAE’s $75bn to power
India’s urban growth
UAE’s $75bn to power
India’s urban growth
T
he UAE’s $75 billion
investment into
India’s infrastructure
will help the Indian
Government to speed
up its infrastructure, inter-
state connectivity and urban
development including a
massive housing scheme of
110 million homes and help
fast-track the development of
100 smart cities planned as
part of Vision 2022 – a year
when India celebrates 75th
year of independence from
the British rule.
Under Prime Minister
Modi’s Vision 2022, India
also plans to ensure a finan-
cial inclusion programme for
all while drive the country’s
manufacturing sector under
the ‘Make in India’ – which
will create demand for 50
million affordable homes to
house the workers and low-
income households.
During Modi’s state visit to
the UAE last month, both the
countries announced the cre-
ation of an infrastructure fund
to the tune of $75 billion to
power India’s growth.
An Indian citizen moves to
the country’s urban areas in
every 2 seconds or 30 per
minute for a better life. This
translates to a migration rate
of 1,800 per hour, or 43,200
per day from rural areas to
urban. On an average 15.76
million people migrate from
rural to urban areas every
year – putting a huge pres-
sure on infrastructure, hous-
ing and civic services. The
population of India stood at
1.2 billion in 2011, growing
by 180 million over a decade
since 2001, according to the
government census.
“The urban population
grew more than the rural, for
the first time in Indian history
in 2011. The rate of rural
population growth has even
plummeted in many Indian
states. The transitioning of
rural areas to urban centres
is evident from the fact that
more than 2,500 settlements
that were previously defined
as villages have been reclas-
sified as towns as per the lat-
est 2011 census,” it said.
India’s current urban popu-
lation of 377 million is much
bigger than the combined
population of United States
and Canada. The country
currently hosts the world’s
second biggest urban popu-
lation which will cross 810
million by 2050.
The rapid migration of peo-
ple from the rural areas to
cities is going to multiply
problems in the coming
years as the government has
Gulf Property Report
Exclusive
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4. INDIACORNER
Gulf Property 73
well as associated industrial
developments that India
needed.
“This is a marked turn-
around by the UAE that his-
torically shied away from
making large-scale invest-
ments into India due to slow
pace of growth,” Dr Kushal
Jain, an Indian economist,
said. “However, Modi gov-
ernment’s decisiveness,
business-friendly approach
and firm commitment to de-
velopment activities have en-
couraged UAE to commit
such a large investment.”
According to a report by
global accounting firm
KPMG, housing shortage in
India is about 60 million
units. Current annual invest-
ments in the housing sector
is about $110 to 120 billion
while the sector is growing at
an average rate of 5 to 6 per
cent. The good thing is that
the Indian government is
mindful of the situation and
has already started taking
actions. That’s why it has an-
nounced a vision to provide
housing for all by 2022. As a
result, it is planning to de-
velop 500 cities including up-
grading 100 to smart cities.
By 2022, India needs to
develop about 110 million
housing units to come closer
to realise this dream and this
requires investments of more
than $2 trillion or about $250
to 260 billion annual invest-
ment until 2022.
“Investments will need to
grow at a CAGR of 12 to 13
per cent till 2022 while 70 per
cent of the housing needs till
2022 should be concentrated
in nine states,” KPMG says.
Urban housing is to ac-
count for about 85 to 90 per
cent of the total investments;
the focus should be on af-
fordable urban houses,
which is 70 per cent of the
total urban housing require-
ment. The Indian real estate
market size is expected to
touch $180 billion by 2020.
The housing sector alone
contributes 5-6 per cent to
the country's gross domestic
product (GDP). Also, in the
period FY08-20, the market
size of this sector is ex-
pected to increase at a com-
pound annual growth rate
(CAGR) of 11.2 per cent.
“India needs to create sev-
eral new-generation, green
field cities that are planned,
financed, developed, oper-
ated and managed more ef-
ficiently,” Amitabh Kant,
India’s Secretary of Industrial
Policy and Promotion, told at
a business event last year.
“We’ve just liberalised the
barrier to foreign investment
in construction, recently.
What we have allowed is
completely easy entry into
the construction sector. We
want foreign direct invest-
ments (FDI) in construction.
We used to get about $6 bil-
lion foreign investment in the
construction sector.”
Analysts feel, the onus is
now on the Indian govern-
ment to deliver on the prom-
ises and UAE government
will see the pace of India’s
economic development as
well as the return on their in-
vestment.
For the UAE, which is sit-
ting on more than $1 trillion
in several Sovereign Wealth
Funds (SWFs), Europe is no
longer a viable market for in-
vestment, while the United
States is also not offering the
kind of return they would
want to get from their invest-
ment. That way, India offers
the best investment option.
If India can deliver results,
the country could bank on
even greater investment flow
into the country. Other cash-
rich governments in the GCC
will be closely watching Modi
Government and make their
moves after evaluating per-
formance. However, if things
go as planned by Prime Min-
ister Modi, India will see the
beginning of a new chapter
in its history that will help it
become a major economic
superpower.
to first fix the infrastructure
bottlenecks in the existing fa-
cilities while making sure
they can take the additional
pressure.
The $75 billion investment
by the UAE makes the Arab
country India’s biggest devel-
opment partner which also
hosts 2.6 million non-resi-
dent Indians (NRIs) who col-
lectively remit more than
$12.63 billion personal remit-
tance a year to India.
The investment pledge by
the UAE also demonstrates
Modi’s ability to convince in-
vestors and command trust
and respect, based on his
strong credentials. The in-
vestment will help Modi to
accelerate his infrastructure
development programmes
that will help Indian economy
to deliver 8-10 per cent
growth, double than the 4.5
per cent his government in-
herited while coming to
power in May 2014.
The new push for infra-
structure will help accelerate
urban development, housing
and real estate sectors as
Smart Cities
T
he concept of smart
cities emanates from
the need to create ef-
ficient urban facilities
that can house new
urban upwardly mobile pro-
fessional middle class and
provide employment oppor-
tunities for a large number of
residents.
Cities can develop based
on core competence in spe-
cific economic areas and
promote that aggressively.
Also, develop adequate in-
stitutional, physical, social
and economic infrastructure
to attract professionals and
investors. Indian govern-
ment in its budget 2014-15,
had announced a project to
develop 100 Smart Cities as
satellite towns of larger cities
by modernising the existing
mid-sized cities in the coun-
try. Initially, Rs70.6 billion
has been allocated for the
project.
To implement the project,
the government has devised
a clear strategy in which
each state to identify qualify-
ing cities for central funds
based on a proposal. Once
shortlisted, cities would re-
ceive a grant of Rs100 crore
per year for five years. The
state government’s contribu-
tion and resources from the
private sector will be gar-
nered for additional funding.
The government has a tar-
get to identify 20 cities by
end-2015, 40 by 2016 and
the remaining 40 by 2017.
Bloomberg Philanthropes,
a smart city agency, is help-
ing the Indian government
conduct the Smart City Chal-
lenge. The Bureau of Indian
Standards is already work-
ing on setting standards for
smart cities. Smart Cities
Council India has been
formed to promote the de-
velopment of smart cities in
the country.
The government has in-
creased budget allocation
from Rs70 billion ($1.14 bil-
lion) to Rs480 billion ($7.86
billion). So far, expression of
interest for participating in
investments received from
the European Union, Japan,
Germany, France, Qatar,
Singapore, Australia and
Sweden. Once these smart
cities projects get off the
ground, both real estate and
construction sectors will wit-
ness heightened activities –
that will drive the growth of
the Indian economy to be-
yond the government’s tar-
get of 8 per cent.
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5. INDIACORNER
74 Gulf Property
Tata Housing camps
in Dubai with projects
Tata Housing camps
in Dubai with projects
T
ata Housing, owned
by Tata Sons –
India’s largest private
business conglomer-
ate, is currently de-
veloping more than 15
million square feet of projects
across multiple Indian cities.
The developer recently
opened a representative of-
fice in Dubai, its third over-
seas office after Sri Lanka
and the Maldives, to reach
out to GCC-based NRIs with
its portfolio.
In an exclusive interview to
Gulf Property, Brotin Baner-
jee, CEO and Managing Di-
rector of Tata Housing, talks
about how the developer
makes it a point to cater to
both the high-end and afford-
able housing segments, its
focus on sustainability and
how important GCC NRIs
are to its international sales
campaign. Excerpts:
Gulf Property: How big is
Tata Housing’s project
pipeline?
Brotin Banerjee: Estab-
lished in 1984, Tata Housing
is a closely held public lim-
ited company and a sub-
sidiary of Tata Sons Limited.
Tata Sons Limited holds
99.90 per cent of equity
share capital of the company.
Since its revival in 2006, the
company has grown expo-
nentially to establish itself as
one of the fastest growing
real estate developers in
India. Tata Housing has
stood out in the industry with
quality construction, ethical
and transparent business
practices, rapidly acquiring
an image as a Quality Con-
scious and Reliable Devel-
oper.
Today, Tata Housing is de-
veloping large townships and
differentiated theme based
projects in major and mini
metros. As a comprehensive
real estate developer of
choice, Tata Housing strad-
dles all consumer segments
from value to luxury housing,
by offering products ranging
from ₹12 lakhs (₹1.2 million;
Dh66,745; $18,170) to ₹14
crores (₹140 million; Dh7.78
million; $2.10 million). All
projects developed by Tata
Housing are certified sustain-
able green developments,
designed by top internation-
ally renowned architects.
With strength of over 700
employees, and presence in
Mumbai, Lonavala, Tale-
gaon, Pune, Ahmedabad
Goa, Gurgaon, Chandigarh,
Bengaluru, Chennai, Kolkata
and Bhubaneswar; the com-
pany is now in the process of
expanding its footprints to
other parts of India, across
the Tier I and II cities.
The company has also
ventured into foreign markets
such as Maldives and is ac-
tively exploring other mar-
kets including Sri Lanka and
other South Asian countries.
Tata Housing has been re-
ceiving various industry
recognitions and accolades,
both on domestic and inter-
national platforms.
How many projects have
By Indrajit Sen
Senior Reporter
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6. INDIACORNER
Gulf Property 75
and above.
Over the past few years,
Tata Value Homes (a 100 per
cent subsidiary of Tata Hous-
ing) has delivered over 5,000
apartments in the price
range of ₹5 lakhs (₹500,000;
Dh27,784; $7,564) to ₹30
lakhs (₹3 million; Dh166,665;
$45,382) across various
townships.
Your company has deliv-
ered multiple residential
projects across multiple
Indian cities including
Mumbai, Gurgaon and
Kolkata. Could you talk
about some of these proj-
ects?
Tata Housing enjoys a pres-
ence in the aforementioned
markets of Mumbai, Gur-
gaon and Kolkata. Amongst
our flagship properties deliv-
ered to customers are
‘Raisina Residency’ in Gur-
gaon, ‘Shubh Griha Boisar’
in Mumbai, Prive in Lon-
avala, Aquila Heights in Ban-
galore and Eden Court in
Kolkata.
Set along Gurgaon’s most
sought after address – Golf
Course Road Extension,
Sector 59, Raisina offers
views of the Aravalli Hills on
one end and the city’s skyline
on the other. The project
boasts 2 apartments on each
floor across all floors while
also offering 5BHK duplex
apartments and top floor
penthouses
Eden Court is in close
proximity to the airport and
Salt Lake, and situated clos-
est to the Central Business
District in Kolkata's new IT
hub: Rajarhat. The complex
is spread over a land of
nearly 8 acres with five ma-
jestic towers. Phase I of
Eden Court consists of three
towers of G+19 floors, hav-
ing affordable 2BHK and
3BHK apartments. The new
two are of G+23 floors hav-
ing 3BHK premium apart-
ments. The other options
available in these two towers
are 3BHK with Study and
3BHK with study and ser-
vant's room. The high rise
towers provide the beautiful
views of surroundings and
internal gardens
Shubh Griha Boisar is part
of Tata Value Homes iconic
township in Boisar which is
home to 3000 families.
Apartments are sold out at
the project and the company
has launched its second
project in Boisar under the
.New Haven. brand.
What are the USPs of Tata
Housing’s projects?
Tata Housing has pioneered
the concept of property de-
velopment and has stood out
in the industry for its ethical
business practices, rapidly
acquiring a public image as a
quality conscious and reli-
able developer.
The company straddles all
consumer segments from
value to luxury housing and
has been developing large
townships and differentiated
theme based projects in
major and mini metros. The
company has pioneered the
concept of energy efficient
and environmentally sustain-
able buildings and townships
at a time when the aware-
ness for such projects was
very low.
As a frontrunner, Tata
Housing has always offered
unique projects to its cus-
tomers, which are not only
luxurious but exclusive and
are customised to the needs
and requirements of the con-
sumers.
you delivered till date?
What is the total combined
value of development and
space currently under con-
struction now?
Tata Housing now maintains
a balanced portfolio of value
and premium homes. The
company has a steady
pipeline of over 15 million
square feet for new projects.
It will devote at least 8-9
million square feet of the new
projects under Tata Value
Homes, priced around ₹12
lakhs (₹1.2 million;
Dh66,745; $18,170) to ₹50
lakhs (₹5 million; Dh277,960;
$75,668). The rest will go
into projects under the Tata
Housing brand, to build
homes for ₹75 lakh (₹7.5 mil-
lion; Dh416,900; $113,500)
to ₹10 crore (₹100 million;
Dh5.55 million; $1.15 million)
Brotin Banerjee, Managing Director and Chief Executive
Officer of Tata Housing, talking to Gulf Property
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7. INDIACORNER
76 Gulf Property
Could you give us some
idea about the current res-
idential projects across the
various cities that Tata
Housing is developing?
Today, Tata Housing is
India’s fastest growing real
estate development com-
pany across the consumer
segment, with its presence
varying from value to luxury
housing. The company is de-
veloping large townships and
differentiated theme based
projects in major and mini
metros.
Tata Housing’s Prive proj-
ect in Lonavala is architec-
turally distinct from its
surroundings, built on a
slope, Privé takes advantage
of its amphitheatric position
to enhance a strong indoor/
outdoor relationship and
frame beautifully the wide
views of North Point and the
Khandala Valley.
Avezza in Mulund, Mumbai
includes 950 unit options
ranging from 2 to 4 bedroom
to 4 & 5 BHK duplexes,
triplex and penthouses.
Amantra is an affordable
luxury residential township
with 14, 24, 29 and 34 sto-
ried towers. The project is
spread over 22 acres of
sprawling land. Amantra is
one of the tallest residential
structure in Kalyan offering
amenities like an elevated
jogging track on the 14th
floor, Infinity pool and club-
house with over 25,000
square feet.
Arabella by Tata Housing is
inspired by the Aravallis and
has been aesthetically de-
signed as an extension to the
lush green surroundings. It is
built across approximately 35
acres and offers 3, 4 and 5
BHK villas right in the heart
of Gurgaon – Sohna Road.
Designed with the theme of
Aravalli ridge and view of the
ridges, Arabella is a Villa de-
velopment with around 150
villas of typologies.
Gurgaon Gateway is situ-
ated at the doorstep of Delhi
and marks the entry of Gur-
gaon. The project has trans-
formed the skyline of
Gurgaon by giving each
tower at Gurgaon Gateway a
unique gradient.
When do you expect to fin-
ish construction of these
current projects and de-
liver it to customers?
Possession of majority Tata
Housing projects under con-
struction will begin in late
2016 and will continue in
phases. However we intend
to deliver these projects in
the coming two – three
years.
Do you have any tie-ups
with banks to offer mort-
gage to customers? Any
attractive/ special payment
structure for buyers, espe-
cially NRIs?
Our projects are pre-ap-
proved by all the major finan-
cial institutions in India
making it easy for our
prospective customers to
buy their dream houses.
Can you shed some lights
about the proposed Indian
real estate law?
The Real Estate (Regulation
and Development) bill, was
introduced with the sole of in-
Tata Housing has a
different way of doing
things. It delivers lifestyle
in a style...
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8. INDIACORNER
Gulf Property 77
interests.
So what prompted you to
enter the GCC market?
Has the Dubai representa-
tive office started function-
ing?
The GCC region has experi-
enced historic growth that
has contributed to the overall
prosperity of the region and
Non-resident Indians (NRIs)
constitute 30 per cent of the
population. Its importance is
gauged by the fact that the
GCC region now contributes
more than 50 per cent to our
international sales.
The share of overseas in
our total sales pie is also in-
creasing. Currently, NRIs
contribute between 15 to 20
per cent of our total sales
and this has been increasing
since the last few years. We
expect this to increase to 25
to 30 per cent in the next 3 to
4 years. Therefore it is impor-
tant for us to stay connected
to the GCC market.
Which category of NRIs is
buying more: The investor
or the end-user?
We have received an over-
whelming response from
both investors and end users
How much does interna-
tional sales contribute to
Tata Housing’s annual rev-
enues? How much of inter-
national sales does
Dubai/UAE account for?
With the opening of our
Dubai office, the company
will reach out to NRIs who
constitute more than 30 per
cent of the population in
UAE.
The GCC market has wit-
nessed rapid strides in the
past decade with the Gulf
residents contributing more
than 50 per cent of our inter-
national sales. Opening of
our office in Dubai is in line
with our efforts to provide the
best in class service to our
prospective consumers.
Do you have special mar-
keting strategies to cater
to this NRIs?
The company had recently
announced a limited period
offer ‘Happy Returns’ to cel-
ebrate the opening of its in-
ternational office for NRIs.
Under the scheme, the
customer was entitled to get
72,000 – 1000,000 Jet Privi-
lege Miles on the purchase
of a home across the Tata
Housing projects in India.
This offer was applicable to
any customer living outside
of India with a valid non-res-
ident Indian status including
Indian passport holders,
those having valid work per-
mits outside India and green
card holders.
The free miles will be cred-
ited to the customer’s Jet
Privilege account post real-
ization of 20 per cent pay-
ment by the customer. In
case, the customer does not
have a JP Account, then a
new account will be created
using the customer’s name
and email id and these miles
will be credited to him.
How has been the re-
sponse so far for your
projects, both back home
in India and here in Dubai?
We have received an over-
whelming response for all
our projects from both Indi-
ans and NRIs based across
the globe.
tention of bringing about a
uniform regulatory environ-
ment in order to protect con-
sumer interests, help speedy
adjudication of disputes and
ensure orderly growth of the
real estate sector.
The bill in its current form
has addressed these issues
through clearly outlining pro-
cedures such as the prior
registration of the projects
with the Real Estate Regula-
tory Authority, which will be
the nodal agency for con-
ducting the necessary back
ground checks and verifying
the credibility of the devel-
oper and the project. Manda-
tory registration for projects,
only after having received all
approvals from develop-
ment/municipal authorities
will boost investor confi-
dence and also protect buyer
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