REAL ESTATE |
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Changing focus
Rising inventories and low sales volumes leave one with an impression that there are virtually no buyers in the market. This, however, is only partially true as the real estate market in most of the metros and smaller cities is being driven by end users at the moment, and very few investors are there. This has affected the dynamics of the market as an end user looks for a residential unit where he can move in within a specified time period.
Level playing ground
necessary for a glorious REIT innings
tax tips
real take: guidelines for retail investors
loan zone
Commercial segment demand to stay low
PE investment in realty rises to 4,716 cr
Green house
real talk
launch pad
pick of the week
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Changing focus
Rising inventories and low sales volumes leave one with an impression that there are virtually no buyers in the market. This, however, is only partially true as the real estate market in most of the metros and smaller cities is being driven by end users at the moment, and very few investors are there. This has affected the dynamics of the market as an end user looks for a residential unit where he can move in within a specified time period.
“End users generally don’t want to block their money for long periods. As a result it is the new launches that are feeling a buyer crunch as a majority of end users are prefering to invest in ready-to-move-in units or in the projects that are nearing completion”, says Delhi-based journalist Saba Khalid. With a large number of projects getting delayed, the end users are hesitant to invest in these and are finding resale market a better and safer option even though it may not be that economical at times. Khalid, too, recently changed her plan to book a flat in a newly launched project in either Noida or Gurgaon in order to avoid getting trapped in the web of “delays”. Now, she is looking for a 2BHK flat in any project which is almost ready or one from the re-sale market. According to a recent study by PropEquity, a real estate research firm, the performance of the NCR-based developers is hardly impressive in terms of the delivery of flats. PropEquity study claims that in NCR only 21,371 residential units had been delivered until July, out of a promised 91,558 units. This translates into a mere 23 per cent delivery rate which is a dismal show by any standards. This shoddy show by developers in terms of delivery of flats is a huge damper for the prospective buyers. “It is high time that realty players pulled up their socks and started giving possessions within the stipulated time frame,” says Sameer Jasuja, head of PropEquity. Devinder Gupta, CMD of realty advisory Century 21 DGS, said the worst part of the whole story was that during the last couple of years even prestigious groups had failed to deliver projects in time. “Naturally, all those who have invested have greatly suffered both mentally and financially”. Breaks on new launches As one looks at the huge number of projects that are either in limbo or have been delayed by over one year, it becomes clear that realty players are not addressing the concerns of their customers, and thus potential customers are deserting the market. This is very much evident as the Delhi-NCR property market witnessed 8 per cent fall in the number of residential units launched during the first six months of 2013 due to low demand and poor economy, according to consultant Cushman & Wakefield. The decline in new launches was more steep in the high-end and luxury segment. In the last nine months (January-September), new launches have declined by almost 40 per cent, says CREDAI Chairman Lalit Kumar Jain. Figures reveal that the NCR residential market registered decline in the total number of units launched in the first half of the year as compared to the same period last year. The total number of units launched in the first half of 2013 is estimated to be 20,700 which is lower by 8 per cent over the first half of 2012. The total number of units launched in the high-end segment decreased by about 70 per cent during H1 2013 as compared to the same period last year. There were no new launches in the luxury segment during the first half of 2013 due to increased availability of units in the market that are nearing completion in this segment. Not many new projects have come up during the past couple of months and the ones that have been launched saw celebrity endorsements to lure the buyers. For instance, the Avalon Group launched its residential project in Bhiwadi with Karisma Kapoor as the celebrity associated with it. ECNON group launched ECNON Sportsland in Greater Noida with Anil Kapoor as their brand ambassador. Apart from these projects, things are moving rather slowly in the NCR as far new launches are
concerned. S.K. Gambhir, noted advocate and expert on realty matters, said, “In case of delay, the builder is liable to refund the amount paid with interest (for the period of delay) as there has been a breach of contract.” It may be recalled that Gujarat Ownership Flats’ Act, 1973, for instance, mandates builders to mention the possession date in the agreement. “Default would attract penalty under both Consumer Protection Act and the Flat Act. Some states have such acts in place to protect the common man, as housing is a state subject. The prudent deal Returning to the issue of resale property market, experts say that delay in delivery make resale market an attractive option for end users. More so as there is a correction in property prices all over the country. The investors looking for an exit are ready to lower their profit margins in a tepid market. Thus, end users can get good deals in the resale market at this time. The resale market offers two types of flats. Firstly these are the ready- to- move-in flats and second option is of flats in projects where more than 70 per cent of the construction work has been completed. “One reason why a number of buyers are going in for a resale property is the non-availability of new projects in the area of their choice. New residential properties tend to be scarce or non-existent in many central locations,” says Om Ahuja, chief executive officer, residential service, Jones Lang LaSalle India (JLL), a real estate advisory firm. It important to note that a property in resale is not cheaper than a new one-unless, of course, the structure is old. If the under-construction project is close to completion, the price difference will be minimal. The difference will be more in the initial stage, but in such a case the risk will also be higher. “I do not think it is a bad idea to buy a resale flat. But, it is important to check all these factors beforehand and then initiate the procedure of home loan with the lender. One is unlikely to find the facilities and amenities that are available in the newer projects on the market in an older building,” says Nuzhat Alim, director of ILD Developers. The major advantage of going in for a resale flat lies in buying a home in a location of your choice. More often than not, buyers hardly get the location of their houses of their liking. This is a huge advantage in resale market. The resale market has a large number of recently-built houses that are owned by investors who want to cash out. An East Delhi-based businessman Sanjeev Garg says that he settled for a resale flat as he found that many of his friends and family members were regreting having invested in new projects that were nowhere near completion. “Developers hardly address the concerns of buyers once the flat is booked”, he said. The secondary market thus, is likely to get a boost and provide an answer to the delay woes of homebuyers.
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Level playing ground
necessary for a glorious REIT innings
With the floating of draft norms for listing real estate investment trusts (REITs), markets regulator Securities and Exchange Board of India (SEBI) has revived the five-year-old proposal, paving the way for opening new avenues for retail investors for safe and transparent investment in real estate while providing a life-line to fund-starved developers.
Currently,
because of the prohibitive property prices, a large number of retail investors
can’t afford to invest in real estate. Even the close-ended real estate
funds presently in operation with an investment cap of Rs one crore are beyond
the reach of majority of ordinary investors. Moreover, they are apprehensive of investing in real estate due to low transparency and fears about the safety of investment in view of increasingly large number of delivery defaults. Retail investors are highly conscious about the safety of their capital over capital appreciation and attractive returns. Safe
turf However, with REITs, the safety of investment could be ensured as unlike physical real estate transactions, those under this new scheme will be regulated. Also, the REIT rules that prescribe 90 per cent investment in completed projects and 75 per cent in leased income-generating properties provide a safety net to investors who will be insulated from the malpractices associated with real estate transactions. And REITs are investor-friendly as unlike physical real estate which lacks liquidity, investment in REITs is liquid
and exit is as easy as in the stock market. The realty trusts, which are an extension of mutual funds, will facilitate retail investors to buy listed units like stock market shares. They will be investing directly in income-generating assets or through special purpose vehicles and investors can reap the benefit of regular return on investment. Besides investors, REITs are equally beneficial for real estate developers as they provide an excellent platform to cash-strapped developers to generate funds without development risks, especially those developers who are sitting over good income-generating assets. The extent of business opportunity can be gauged from the fact that 400 msf of commercial office and mall properties are currently available in the market. And to make most of this opportunity, developers like Parsvnath have already announced their plans to list their income-generating assets as REITs to raise money. Due to their high liquidity and easy exit options, REITs come as a good business opportunity for PE funds who are sitting over huge funds but are reluctant to deploy them as exits are difficult. Already leading PE funds like Blackstone, Xander, Tata Realty and Infrastructure and Kotak Realty have made public their plans to launch REITs. It is an equally big opportunity for funds-turned-developers. Need
for regulation But then the high tax structure in the form of capital gains tax, tax on rental income and price appreciation, division and distribution tax and securities transaction tax, casts its shadow over REITs, which in their present form lose much of their sheen as an attractive investment option. SEBI has, however, proposed to amend norms to make REITs more tax-friendly. Industry bodies are also demanding a single-point tax structure. But in view of the upcoming parliamentary elections, the final guidelines of REITs may not come before the second quarter of 2014 and it may take more than a year before REITs become operational. Along with tax-related issues, the regulatory concerns also need to be addressed before REITs are launched. In the past, several companies that raised funds through REITs on the London Stock Exchange, saw their stock prices crashing due to defaults in the delivery of real estate projects and investment mismatches. So,
considering the risks involved in real estate investment due to lack of
transparency and regulatory mechanism, the government needs to come up with
all necessary safeguards to ensure safety of investment. And it will be a wise
move if Real Estate Regulatory Bill is implemented before the launch of REITs
to realise their full potential in spurring capital inflows and investor
confidence for the speedier and sustained growth of real estate. Derailed by delays
— Figures as per JLL report
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Should I deduct TDS for payment made to the builder?
S. C. Vasudeva Q. Kindly advise me on the following points:
I am confused as I have paid Rs 50 lakh while cost of the flat is Rs 40 lakh and the TDS payment comes into operation on transaction valued at Rs 50 lakh or above. My queries are:
— Krishan Dev Uppal A. Your queries are replied hereunder:
Can I claim deduction on rent received? Q. I have a commercial flat which I have let out. I have borrowed funds for the acquisition of said flat. I am liable to pay interest of approximately Rs 50,000 per year. Can I claim the deduction of the above amount against the income from the rent received from the letting out of the flat? Am I entitled to any other deduction under the Income Tax Act? — Anand A. Replies to your queries are as under:
Q. Recently my wife and I purchased a flat in Chandigarh for which the complete amount was contributed by me. Does Section 3 of the Benami Transactions (Prohibition), Act 1988 give me relief regarding the payment of long-term capital gains tax qua my wife as under the above provision wife and unmarried daughter are excluded from the applicability of this Section? Is the above proviso to Section 3 of the Act relevant for calculating the LTCG tax? — P.K. Bhargva A. Section 54 of the Act provides that in case the capital gain arises on the transfer of a long- term capital asset, being a residential house, and the assessee has within a period of one year before or two years after the date on which the transfer took place, purchased a residential house, then the capital gain arising on such transfer, instead of being charged to Income Tax as income of the previous year, shall not be so charged, if the cost of the residential house so acquired is equal to or more than the capital gain so earned. The important words used in the Section are "the assessee has purchased", and therefore, in my opinion the purchase of the residential house should be by utilising the funds of the assessee so as to claim the exemption of the capital gains from taxability. In my view, the provisions of Benami Transactions (Prohibition) Act 1988 deal with the acquisition of properties in the name of a Benami and the Act prohibits such transactions. However, Section 3(2) of the said Act carves out an exception for wife or the unmarried daughter. The aforesaid sub-section provides that in case the property has been purchased in the name of the wife or unmarried daughter and unless the contrary is proved, it is presumed to be for the benefit of wife or the unmarried daughter. The reliance on this Section may not enable you to get the desired benefit in view of the provisions of Section 64 of the Act. Since the property, on the basis of facts given in the query has been purchased in your as well in your wife's name by utilising your own funds, you should be entitled to claim the exemption in respect of the capital gain. A recent decision of Delhi High Court in the case of CIT vs. Ravinder Kumar Arora (342 ITR 38) would be of help to you. Are there special rates of paying Income Tax on selling agricultural land? Q. One of my friends is a senior citizen and a retired government pensioner. He owns some agricultural land. As he has become very sick and old now, he has sold some portion of his agricultural land to meet his medical expenses. Please let me know:
Moreover, please let me know the rates of paying the Income Tax in a such case? — Nihal Singh A. The replies to your queries are as under:
In any area within the distance, measured aerially, - Within two km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than ten thousand but not exceeding one lakh; or Within six km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than one lakh but not exceeding 10 lakh; or Within eight km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than 10 lakh.
The above provisions are applicable for assessment year 2014-15 and onwards. You have not specified the situation of the agricultural land, and therefore, it is not possible to indicate whether the agricultural land sold by your friend would be covered within the aforesaid limits. Can I be taxed without receiving rent from a house property?
Q. I own a house in Chandigarh, where I stay with my family. I have certain business interests in Gurgaon, and I visit this city frequently. As property prices are rising there, I am planning to buy a flat there. This would also be for my personal use as I don't intend to rent it out. I have been advised by a friend that tax would be payable in respect of the Gurgaon house on a notional rent basis. Is this possible? Can I be taxed without receiving rent from a house property? — R.P. Malhotra A. You have been advised correctly. The income from self-occupied house is considered nil and therefore no tax is chargeable in respect of Chandigarh house. However, the second house property even if it remains locked, the amount of notional rent (based on the market rent) will be taken as your income from the second property. In other words, even if you earn no income whatsoever from the second property, it will be taxable as if you have given it on rent. It may be added that in case you are buying the second property using bank finance, the amount of interest paid would be deductible against notional income. The limit of Rs 1,50,000 would not be applicable in such a case. |
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real take: guidelines for retail investors
Buying an office or retail space is a huge investment, which is why commercial real estate has been traditionally seen as an asset class that only institutional investors or heavyweight HNIs could invest in. That, however, is changing. Many retail investors are now getting into the office real estate game.
For a perspective of the opportunities in Indian commercial real estate, consider this — Manhattan in New York City has 450 million square feet of Grade A stock, while London has 200 million square feet. In comparison, India’s collective office space stock accounts for only 375 million square feet. This showcases the long-term potential for office space at all levels in India. Very few of the world’s commercial real estate markets have undergone such a dramatic and rapid change in such a short span of time as India’s has. The next few years will see a quantum spurt in the services and knowledge sector, opening up tremendous opportunities for the retail investor.
Investment routes There are three ways to invest in commercial real estate — directly buy office space from a developer, buy shares of a commercial developer from the stock market, or invest in a real estate fund focused on commercial real estate. As the quantum of investment is usually huge, the prospective buyer needs to take more informed decisions. Another option, which is investing in Real Estate Investment Trusts, is expected to be opened up shortly by the government. REITs are pooled investment entities where the corpus is invested primarily in completed, income yielding real estate assets and distribute a major part of the revenue/income generated among their investors. Many developers, especially in cities such as Mumbai, are today offering smaller units of space (as small as 500-1000 square feet) in Grade A buildings given the higher vacancy and pressure on pricing. This is in sharp contrast to the scenario a few years back, where only much larger units were available — making it tough for a small investor to invest in office real estate. Investors considering retail space can now consider a multitude of affordable options in free-standing high street outlets or shops in malls. The advantages of smaller units are two-fold:
Today, even professionals like doctors, auditors, stock brokers and lawyers are buying commercial properties for investment and self-use. Of course, HNIs also continue to plug huge amounts of money into high-ticket commercial properties in the quest for yield. Private bankers and wealth management firms confirm that their clients have actively started investing in commercial properties after staying away in 2009 and 2010. These investors have bought into commercial properties because they seek assets that can protect their portfolios from inflation and stock market volatility. On their side, banks are willing to lend up to 50-60 per cent of the LTV to buy commercial properties, subject to the borrower’s adequate net worth and established ability to repay. The investor should focus on a few carefully selected markets with a diverse economic base, deep pool of tenants and tenants who like quality buildings. While looking at under construction projects, the investor should look at developers who have a track record of delivering high quality projects on schedule.
Why invest? The rental yield for commercial property is usually 9-11 per cent. In contrast, the yield for residential property is much lower at 2-3.5 per cent. The demand for office space in India is likely to stand at around 200 million square feet over the next five years. Post the
GFC, the prices in markets like Mumbai have dropped around 35-40 per cent and have bottomed out in most micro-markets, offering investors a good opportunity to buy into commercial real estate. India’s macroeconomic growth story makes for a rather compelling reason to get one’s own paragraph into it somewhere. Chosen prudently, and office real estate can let you do that in indelible ink. Last year, the demand for office space across India was 26 million square feet and this year is expected to see demand of 28 million square feet. The possibility of diversifying one’s portfolio, the sheer pride of ownership and the benefits of the longer leases that typify commercial tenants are other reasons to look at commercial real estate investing. Remember, you do not only make a profit on the sale of appreciated commercial property — the rental cash flows of a well-located office or shop space are considerable. Unlike in residential property, the income that can be generated from commercial property is what determines its value. In other words, the capitalisation rate is actually the measure of the demand for the property. For those who do their homework well, investing in commercial property is a high-adrenaline and high-returns game that residential real estate investment cannot hold a candle to… —
The writer is COO, Business, Jones Lang LaSalle India
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How much will the loan switch cost me?
S.C. Dhall ... Q. I took a housing loan from HDFC bank. I am currently paying an interest rate of 12 per cent after recent changes. I came to know that the same bank itself is offering new housing loans at a lower rate than this. Also, there are other banks like the State Bank of India that are offering new housing loans at rates lower than this. Is it possible for me to take a new home loan at a lower interest rate and prepay the old loan? If yes, what is the procedure? How much will it cost me in terms of processing, penalty etc? — Nitin A. It is advisable to transfer your existing loan to any other bank in case they offer you a better deal in terms of the rate of interest. You will need to have a good track record of paying your EMIs so as to be able to get an offer from another bank to take over your existing loan. No pre-payment charges are payable on transfer of a floating rate home loan. You will need to consider the processing fees, which you may have to pay to the new lender, which will be in the range of 0-0.50 per cent of the loan amount. Changing interest rates Q. Currently SBI is offering a floating interest rate of 9.95 per cent per annum for a loan amount below Rs 30 lakh with a processing fee between Rs 1,000 and Rs 3,500 (excluding service tax) plus other charges like advocate’s fee for property search and the title investigation report, valuer’s fee for valuation report, stamp duty payable for loan agreement and mortgage, property insurance premium, etc. This also involves the modalities of handing over the property documents from your existing bank to the new lender. Is there any means to verify that banks are really decreasing the loan interest from that stipulated by RBI? — Pawan Kumar A. It is a huge misconception that changes in RBI policy rates automatically mean changes in home loan interest rates. Of course, the banks have contributed to this perception by telling consumers while increasing rates that they have to do this because RBI has increased rates. RBI policy rates are only one determinant (an extremely important determinant but not the only one) in the interest rates fixed by the bank on its loans and fixed deposits. So the short answer to your question is that there is no “stipulation” by the RBI to banks to reduce interest rates. Reducing EMI after pre-payment is not a smart move Q. My husband and I recently took a home loan of Rs 30 lakh from LIC. I am planning to make a part-payment of Rs 10 lakh by year-end. After paying partially, is there any way I can reduce my EMI? People say that only tenure can be reduced after pre-payment. — Annu Sharma A. When you make a part-payment, the amount will be deducted directly from your principal amount, which means you will pay up your loan faster than the term it requires. If you reduce your EMI, the opposite happens, your loan tenure increases. It sort of defeats the purpose if you choose to prepay partially, and then also opt for a reduction in EMI. Even if your principal is reduced, you might still be shelling out more interest with an increased tenure; the only relief will be less stress on the monthly budget. However, if for some reason you wish to pre-pay and then request for a reduction in EMI, you can always approach your bank and take this up for discussion. Banks always consider such requests, depending on the individual’s situation. In an ideal scenario, closing off the debt should be a priority, even if for a temporary period like a few years, you wish to reduce the stress on your monthly finances. Remember, the longer the tenure, the more the interest you will be shelling out. You can utilise online calculators to calculate the amount of interest you will actually shell out with an increase in tenure, i.e. when you reduce your EMI.
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Commercial segment demand to stay low
Demand for commercial real estate is likely to remain subdued in the medium term as corporates continue to be in a consolidation mode while excess supply may put pressure on capital and rental values, property consultant CBRE said recently.
The economic downturn has subdued office and retail markets that has affected sales and put pressure on capital values as well across major cities, CBRE South Asia Chairman and Managing Director Anshuman Magazine said in a statement according to a PTI report. In the residential segment, he said the buyer sentiments have remained largely cautious due to relatively high price points and sticky borrowing costs, amid an uncertain economic climate. He said that investment has slowed considerably across segments resulting in weaker construction activity in most cities. Giving the outlook, Magazine said: “Against the current economic and political backdrop, demand for commercial real estate is likely to remain subdued in the medium term”. “Corporates are expected to continue their focus on optimal space utilisation and cost cutting measures, and transaction activity is expected to be mainly restricted to take up of small and medium-sized space,” he said. Magazine was also of the view that supply backlogs could exert pressure on rental and capital values as well. He, however, said that recent indications of revival in the global and domestic economy should contribute to better performance and improved economic prospects towards H2 2014. In the office space segment, CBRE said the demand declined during the third quarter of 2013, because corporates focused on consolidating and downsizing their space portfolios, and/or relocating to peripheral markets. Office space absorption in the top seven cities fell by about 14 per cent in July-September of 2013 at over 6 million sq ft compared to over 7 million sq ft in previous quarter. Absorption of prime office space in full 2012 calendar year of top seven cities stood at over 25 million sq ft, while total absorption is over 19 million sq ft in the first three quarters of 2013, according to CBRE. While subdued demand and high vacancy levels have led to rental stability in most markets in recent months, CBRE said weak absorption numbers has resulted in a decline in office space supply over previous quarters, weighing in on future investment plan.
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PE investment in realty rises to 4,716 cr Private equity investment in the real estate sector grew by 26 per cent to
Rs 4,716 crore in the first nine months this year despite slowdown in the property market, Cushman & Wakefield said recently. The global realty consultant attributed the rise in PE investments to increased attraction of institutional investors towards leased income generating office buildings. “Total value of announced private equity transactions in the real estate sector for the first three quarters of 2013 were recorded at
Rs 4,716 crore ($755 million), witnessing an increase of 26 per cent compared to the first three quarter of 2012
(Rs 3,750 crore/$704 million),” C&W said.
Rise in PE investment was despite the slow pace of growth in Indian real estate sector with net absorption in offices down by 15 per cent and subdued housing sales, it observed.
Growth drivers C&W listed various factors that have affected the growth in real estate sector such as slower GDP growth, inflationary pressure, volatility in forex and stock markets, upcoming elections and policy impact. Apart from offshore funds, domestic capital allocated for income generating office properties is also being raised and deployed, it said in a statement. About 65 per cent of the overall PE investment this year was seen in 3rd quarter at
Rs 3,078 crore ($493 million). While PE investment in office segment saw more than two-fold jump at
Rs 2,476 crore ($397 million) in first three quarters of 2013 against year-ago period, the housing segment faced drop of 11 per cent at
Rs 2,240 crore ($359 million). “Investor interest in the leased office buildings has been increasing over the past few years with sector contributing 53 per cent of the overall investments in 2013 compared to 36 per cent and 30 per cent in 2012 and 2011, respectively,” it said. According to a PTI report C&W Executive Managing Director South Asia Sanjay Dutt said, “Despite a slowdown in the local real estate market, funds remain committed to India as a top investment destination with overall PE investment only expected to increase especially in income yielding assets.”
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Save indoor plants from winter chill
Amarjeet Singh Baath ...
Indoor potted plants are an important part of garden lovers' collection. These add a dash of "green" to the interiors with their rich looks and stylish foliage in low or indirect sunlight all through the year. As most of the indoor plants are of exotic varieties, their upkeep is a major concern during the winter months as a little neglect can not only damage the plant but also cause monetary loss as these plants are generally expensive. So while you adore the winter flowers in your garden and enjoy their colourful bounty don't neglect the "evergreen beauties".
Plants like aglaonema, dieffenbachia, pothos (money plant), schefflera, dracaena, syngonium, and philodendron are popular choices for indoor plants. All of these are originally from tropical humid region where they grow and flourish under the canopy of tall trees and get filtered light. These plants when maintained under the verandah get warmth and indirect sunlight from the sides. In the sub topical climate of the plains of north India, these plants tolerate very high temperature during summer months but they can't withstand extreme low temperatures between December and February.
Adequate cover However, it is observed that plants under the cover of big trees survive even in the extreme winters provided the humidity level is maintained by spraying water around the plants. The potted plants may be shifted during winter months along the wall on southern western side preferably under a canopy. Areca Palm, Chlamandorea Palm Raphis palm and many other palms species have been observe to tolerate extreme environments of northern India.
Keep them clean In tropical region, there is almost daily rain that washes plants leaves and dust is removed. It does not happen in plains of northern India and the dust accumulates on the leaves and reduces the levels of photosynthesis. Thus it is necessity to remove dust with a soft brush or spray of water especially for indoor plants because they are already growing in low or indirect sunlight.
A dose of sunlight Indoors plants' reserve food capacity also gets reduced in low or indirect sunlight and this has to be replenished regularly by exposing them to sunlight. Therefore, Indoor plants need to be regularly reshuffled and exposed to sunlight. Also their capacity to tolerate heat is reduced when they are exposed to sunlight after a long time. Accordingly, plants kept in the dark corners should be moved to bright windows spots.
Water prudently Overwatering can also damage indoor plants. Therefore don't flood them. Wait until the top soil shows dryness. Aeration is also very important and due consideration should be given to this fact. Sometimes, extreme
low temperature may damage the foliage, but the plants regenerates from the hardened stems or from the underground rhizome when the weather warms up.
Right maintenance During high humidly environment in winters the foliage may get damaged by a fungus ' Botrytis'. Prophylactic spray with 0.2% Bavistan should be done covering the foliage.
Some popular indoor plants
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real talk For a multitude of reasons developers across the country are exploring alternatives to red brick for wall construction and Autoclave Aerated Concrete (AAC) Blocks have emerged as one such viable alternative both for residential and commercial building. “AAC blocks on one hand have price parity with red bricks and also allow faster execution and are environment friendly”, says Sourabh Bansal, founder of Magicrete Building Solutions Pvt Ltd that is one of the largest manufacturers of Autoclave Aerated Concrete Blocks in India. This industry is at a nascent stage in India and has significant growth potential. In an interaction Bansal talks about this new bulding solution.
There is a lot of buzz about alternate building materials in the construction sector. What has been the response to AAC blocks so far? AAC blocks are a revolutionary technological shift from conventional red bricks which are a 2000 year old walling method. So there are inherent challenges in this to educate the whole real estate sector about both advantages and favourable economics in using these blocks. However, there is a significant shift in major real estate markets like NCR, Mumbai and Chennai. For e.g. in Mumbai around 35 per cent of walling currently happens with AAC blocks and this change has happened in the past five years only. How are these better than the conventional red bricks? Size and weight (density) are the two major differences in between conventional red bricks and AAC Blocks. These blocks have 80 per cent air by volume in them unlike red bricks. All the advantages of AAC blocks are because of them being light weight and porous in nature. In India cost is a major consideration for any new technology. What is the cost factor involved in the use of these AAC blocks. Are these expensive than the regular bricks? Though the cost of AAC blocks today is at par with bricks in cost, but using AAC becomes economical than bricks because of several factors like mortar cost savings due to larger size, 15-20 per cent structural steel saving due to reduced dead load. Eventually, if we take into account all savings due to AAC blocks walling would become free of cost. How fast is the market for this growing and what future growth you see here? Red bricks in India is a Rs 50,000 crore industry and is totally unorganised. However, AAC blocks has grown from a Rs 50 crore to a Rs 500 crore industry in the last five years. Because of this sudden grown in the industry there has been a lot of capacity addition, but currently due to the downturn in real estate segment competition in AAC is immense and we do expect some major consolidations to happen in the coming years. What is the growth trajectory you have set for your company for the next five years? In the next five years we see ourselves emerging as India's leading prefabricated structures manufacturer, in which AAC currently is our flagship product and we aim to have pan India presence in the same.
Advantages Faster construction: These blocks are nine times larger than a regular red brick. This results in six times lesser joints, which means three times faster construction. This also results in saving of mortar joints there by reducing the cost. Light weight:
Magicrete AAC blocks have three times lesser density than red bricks. Thus, the overall dead weight of the building is reduced and it translates into structural steel and concrete saving of up to 20 per cent Thermal resistance: A concrete blocks are eight times more thermally insulating as compared to red bricks. Their cellular structure provides well insulated interiors keeping out warm air in summers and cold air in winters. This results in HVAC cost savings of up to 30 per cent. Water barrier: Discontinuous porous microscopic structure does not allow capillary action in Magicrete AAC blocks. Its water barrier properties are further enhanced by adding silicone-based additives. Sound absorption: Magicrete AAC blocks have a sound transmission rating of 44 DB. This results in practically sound proof interiors. Carpet area increase: Owing to very water barrier, high thermal and sound insulation a 9" external brick wall can be replaced by a 6" AAC block. These have excellent dimensional accuracy (tolerance of 1%) and thereby reduce plaster thickness. Coupling all these factors usage of AAC blocks results in carpet area increase of up to 2 per cent. Earthquake resistant: Earthquake forces are directly proportional to the dead weight of a building. Reduced dead weight of a building by using AAC blocks there by increases earthquake resistance of a building. High strength: Autoclaving (high pressure steam curing) process and hexagonal porous structure adds strength to weight ratio, higher than that of M150 Concrete Green building material: Concrete blocks have 70 per cent of fly ash, which is a national waste, as their raw material. Red bricks use agricultural top soil. Also AAC blocks consume 4 times lesser energy in production per CBM of material. As a result these are completely green in nature and when used give maximum points in LEED certification. Ease of working: These blocks are as workable as wood. They can be machined, chiseled, nailed and sawed making these very MEP friendly. Pest resistant: As these are made from inorganic material, these don't promote the growth of molds. Also with solid wall construction there are almost no cavities for rodents or insects to dwell in.
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launch pad
Real estate developer Casa Grande has lined up projects worth
Rs 1,250 crore and plans to launch more than 1,000 villas during the current financial year, the company said recently. “Casa Grande plans to launch 1,000 villas this fiscal and has projects worth
Rs 1,250 crore in the pipeline...." the Chennai-based company said in a statement according to PTI.
The company has developed and sold 2.5 million sq ft properties so far, it said. Meanwhile, the company announced its latest project — Aldea — a garden themed project in Thoraipakkam on the famous Old Mahabalipuram Road. Casa Grande Aldea will encompass 184 units on 3 acres at Thoraipakkam. The project comprises one, three and four BHK apartments ranging from 600 sq.ft to 1,960 sq ft. Casa Grande is offering the apartments at
Rs 5,150 per sq ft, the statement added.
Luxury villas in Dubai Luxury real estate developer in Middle East, DAMAC Properties, has launched sales of luxury villas at AKOYA Park, the latest phase of its AKOYA by DAMAC master development in Dubai. A 14 million sq ft extension of the original 28 million sq ft at AKOYA, includes a dedicated 4.3 million sq ft of open parkland. A limited number of 200 villas have been made available, with a starting price point of AED 2.1 million. Set within three clusters named after some the largest open parks in the world: ‘Rockwood’, ‘Richmond’, and ‘Topanga’, the villas will offer the unique experience of living in the heart of a Park. DAMAC Properties has completed 8,887 units to date and has a further 23,688 units at various stages of progress and planning across the Middle East region. — Based on information provided
by the developers
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pick of the week
Building solutions company Everest Industries Limited has recently launched Everest Rooflight — a high-quality polycarbonate roofing sheet manufactured using virgin polycarbonate resins through the co-extrusion process. This process and choice of quality raw materials ensures uniform thickness, excellent UV resistance, optimum strength and long life of the product. Everest Rooflight’s high impact strength and physical properties, make it an ideal choice to provide natural light for industrial, commercial and agricultural purposes.
It gives the clarity of glass and transmits up to 85 per cent natural light thereby reducing energy consumption of electric lighting in any given structure. It is also weather resistant and resists wind, hail and extreme temperatures ranging from -50 C to + 120 C.
The price range is
Rs 450-650 per sq meter for 1 mm thick sheets.
Stylish storage
Well-stocked kitchens require adequate and modern storage system. Check out Marsun’s new specialised storage options for pots, pans and
bakeware, from convenient deep drawers with integrated lid storage partitions, to specialised pull-outs. Made from mild steel with powder coating and stainless steel, these storage drawers are availble for
Rs 2300 onwards.
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