3. Sumant Kachru,
Director, ACT Company Pvt. Ltd., Surat
• B.E. (Construction), CEPT Ahmedabad
• MBA (Real Estate), University of Cincinnati, USA
• Development Manager, Creative Choice Homes, Florida, USA
• Vice President Real Estate, JHM Hotels, Surat
• Selected Landmark Projects:
• Crossroads Mall, Tardeo, Mumbai
• Manatee Springs Apartments, Chiefland, Florida, USA
• Buena Vista Villas, Las Vegas, USA
• Hickory Hills Apartments, Tallahassee, Florida, USA
• Ambassador North Apartments, Houston, Texas, USA
• Silas Oaks, Suwannee County, Florida, USA
• Luxury Resort & Residences, Singer Island, USA
• Anderson Terrace, Spring Hills, USA
• The Gateway Taj Hotel - Expansion & Renovation, Surat
• AURO University, Surat
• Real Estate Expertise:
• Turnkey Real Estate Development
• Deal Structuring & Negotiation
• Land Development Strategy (Colonizing)
• Socio-Economic Development (Revitalization)
• Innovation - New Product/Market Creation
4. FAST FORWARD FUTURE
1. Visualize the Future
2. Understand the Present
3. Draw a roadmap for reaching the Future
4. Build the road – Fast
5. Start the journey – Forward
5. 1. NICHE HOUSING PRODUCTS
– Active Adult (Empty Nesters)
– DINKS (Double Income No Kids)
– Affordable Housing (combined with TOD)
– Service Apartments
– Condo-Hotel
– Working women housing
6. Active Adult Community
Target: 60+ Empty Nesters
Model:
• Smaller Units
• Maintenance Free
• Several Hobby/Activity Centers
• Age appropriate amenities
• Guest house for visiting family
• Common Services:
– Laundry
– Housekeeping
– Doctor on call
– Security
– Car Hire
– Shuttle Bus to nearby shopping, city center
– 24/7 Paramedics for medical emergency
– Food & beverage (dining, eat-in)
7. HOUSING FOR ELDERS . . . A niche product with growing demand
The sharp rise in human life expectancy over the years has resulted in a very substantial
increase in the number of older persons. The demographic profile depicts that in the
years 2000-2050, the overall population in India will grow by 55 per cent whereas
population of people in the age bracket 60 years and above will increase by 326 per cent
and those in the age group of 80 plus by 700 per cent — the fastest growing group.
Love at 50: Never too old for a live-in!
Ankur Jain & Parth Shastri, TNN | Nov 21, 2011, 08.37AM IST
AHMEDABAD: The Mehndi Nawaz Jung Hall, one of the oldest
auditoriums in Ahmedabad, could well become the ground zero of a
social revolution in India.
Such was the success of the country's first live-in mela for 50-plus
people here on Sunday that the organizers have now decided to hold
it in Bhopal, Pune, Delhi, Kolkata and Mumbai in the next six months.
At least seven couples from as far away as Assam, Karnataka and
Gujarat found prospective live-in partners during the event. Many of
them are planning to go on dates for a few days before they finally
start living in.
"Some call our event radical, but we see it as the new thought," said
Natubhai Patel, founder of Vina Mulya Amulya Seva, the NGO which
organized the mela. Patel will take the live-in couples to Rajpipla on a
picnic next month, where they can spend some private time.
8. DINKS (Double Income No Kids)
Target: 25-35 young married professionals
Model:
• Smaller Units
• Maintenance Free
• Several Hobby/Activity Centers
• Club style amenities
• Guest house for visiting family
• Common Services:
– Laundry
– Housekeeping
– Security
– Food & beverage (dining, eat-in)
9. Affordable Housing (Transit Oriented)
• Target: Workforce (LIG & MIG)
• Affordable:
– To buy: upto Rs.10 Lacs per unit
– To rent: upto Rs.3,000 per month
• Location:
– Close to BRTS, Metro, or Railway station that connects to City
Center, Industrial or commercial hub
• Why is it needed?
– Industry & commerce needs manpower and if they have decent
accommodation with less commute time then productivity increases &
attrition decreases. Success of industry & commerce directly enhances
real estate demand.
10. Service Apartments
Target: Corporates/Professionals looking for monthly rentals
Model: Same as DINKS + Furniture
Financial Options:
• Developer can keep ownership for long term rental income & appreciation
• Developer can sell the units to corporates/investors while retaining the
ownership of common elements
11. Condo-Hotel
Target: HNI, Executives, NRI
Model: Ultra Luxury Service Apartment with all amenities of Luxury Hotel
Financial Options:
• Developer sells ownership of individual Units
• Buyers use the unit whenever they feel like and rest of the time give it
back to the Hotel to rent out
• Buyer get a Luxury Property with hassle free rental income
• Developer gets upfront unit-sale proceeds, revenue share from rental
income of these units and revenue from all the Hotel Amenities like
SPA, Gym, Restaurants, etc..
12. Working Women Housing
• Target: Single Working Woman
• Model:
– Studio or 1BHK apartments
– Security with Access Management system
– Women centric Amenities & Activity center
– Centralized common services like Laundry, etc..
Why is it needed:
• Educated women as part of overall qualified workforce is increasing
rapidly and hence becoming an important part of corporate HR policy
• Lack of proper housing discourages their in-migration and in turn reduces
companies likeness to expand in such city
13. 12 NOV, 2011, 12.29PM IST, ANSHUL DHAMIJA & SHRABONTI BAGCHI,TNN
Single women in India are investing in real estate for stability
BANGALORE: Single young women in India have earthier tastes and believe in serious asset-creation, which perhaps explains why an increasing
number of those below 35 are investing in their own homes before marriage in a trend that many believe is a reflection of our changing socio-
economic landscape.
For 33-year-old Shalini Natraj, "investment and stability" were the prime reasons for buying a 1,300-sqft 2BHK apartment in Jakkur, a suburb of
Bangalore, for Rs 50 lakh. "I'd been living on rent for some time and I wanted to own a space. I didn't enjoy the idea of someone coming up to me
and asking me to vacate or being told not to make any changes to the house," Shalini, a senior HR manager at American retailer Target's
Bangalore office, says. "Owning a flat gives me an immense sense of pride and achievement. It feels great to have used my money in a good
way. I feel in control of things."
14. 2. Much Needed Concepts
• Title Insurance
• Association Rules & Regulations
• Multiple Listing System (MLS)
• Fair Housing
• Collective Purchasing Power
15. • Title Insurance:
Insurance that covers the loss of an interest in a
property due to legal defects
• Types:
– Lender Policy
– Owner Policy
• Why is it needed?
To decrease the financial risk of a legal challenge to
the property’s title.
16. Association Rules & Regulations (Standardized)
Association Rules and Regulations are adopted for the benefit of the Unit Owners and
Tenants of Apartments. They are intended to contribute to preserving a
clean, attractive and peaceful environment. They are not intended to unduly restrict
or burden the use of property.
The essence of these regulations, rules and recommendations is for each Unit Owner
and Tenant to treat each other with respect and courtesy and exercise common
sense, so Apartment community can be an outstanding place to live.
Why is it needed?
With increase in buildings per apartment community there needs to a standardized
set of rules that the Association adopts while taking over from the developer. The
Owner’s Association can make changes that suits them in due course but the
Developer’s standardized set of rules will provide an excellent reference point. The
long term success of Developer lies in how successful his previous built communities
are and such a set of Association Rules will help in that.
17. Multiple Listing System (MLS):
• Owner intending to sell gives exclusive “Listing” to broker
• Listing Broker enters the property data in MLS
• Other Brokers seeking property for their clients search the MLS
• Buyer Broker contacts seller Broker if the property data matches their Client’s
requirement
Why is it needed?
• There is no formal system to exchange property “for-sale” information
• Without exclusive listing Brokers hesitate to share specific/detailed
information on for-sale properties
• Without specific/detailed information, Buyer’s brokers have hard time
shortlisting for their Clients
• MLS provides organized, validated and faster exchange of information
regarding sale/rent properties
18. Fair Housing
• Equal opportunity to rent & buy real estate
• No discrimination based on:
– Race/Religion/Faith
– Eating Habits
– Marital Status
– Native Region/State
Why is it needed?
– Cohesive Social Set up increases real estate demand
19. Collective Purchasing Power
• Consolidated demand for basic materials: Cement, Steel,
Bricks, Aggregates, etc..
• Much higher negotiation power with manufacturers &
suppliers to derive:
– Lower Cost
– Timely Delivery
– Higher Quality
– Trend awareness
• Why is it Needed:
– Cost (Saving=Earning)
– Quality Control
– Time (avoiding delay
due to shortage)
Example
21. 5 Forces Model (Porter)
Entrants
New
Bargaining Bargaining
Power of Internal Power of
Competition
Suppliers Customers
Substitute
Products
22. STRATEGIC POSITION
With more power, better
Entrants
technology, organized &
New
efficient
Bargaining Bargaining
Power of Internal Power of
Competition
Suppliers Customers
Substitute
Products
24. STRATEGIC POSITION
With more power, better
Entrants
technology, organized &
New
efficient
IT enabled collective
power to buyer groups.
More aware &
demanding clientele.
Bargaining Bargaining
Power of Internal Power of
Competition
Suppliers Customers
Substitute
Products
26. Buyers can find and interact with each other ONLINE
- Collective Power
27. STRATEGIC POSITION
With more power, better
Entrants
technology, organized &
New
efficient
IT enabled collective
power to buyer groups.
More aware &
demanding clientele.
Bargaining Bargaining
Power of Internal Power of
Competition
Suppliers Customers
Substitute
Products
Changes is business models need
new-products. Changes in life-style
will require new housing products.
29. STRATEGIC POSITION
With more power, better
Entrants
technology, organized &
New
efficient
IT enabled collective
power to buyer groups.
More aware &
demanding clientele.
Bargaining Bargaining
Power of Internal Power of
Competition
Suppliers Customers
Directly impacts
input cost and
hence profitability.
Artificial Shortages
can delay projects
Substitute
Products
and create Client
attrition risk Changes is business models for retail
or office will need new-products.
Changes in life-style will require new
housing products.
30. Price rise, labour scarcity hit Gujarat realty sector
PRESS TRUST OF INDIASHARE · PRINT · T+
NEW DELHI, NOV. 22:
A steady rise in the price of construction material such as cement, steel and
bricks, coupled with a shortage of skilled labourers, has hurt the realty
sector in Gujarat, a senior officer-bearer of the State's real estate
developers' association has said.
Soaring raw material prices, shortage of labour and other factors are leading
to delays or cancellation of projects across Gujarat, Mr Vipul Thakkar, the
Vice-President of the Gujarat wing of the Confederation of Real Estate
Developers Associations of India (CREDAI), said.
Mr Thakkar said the realty business in big cities, such as
Ahmedabad, Vadodara, Rajkot, Surat, Jamnagar and Bhavnagar, has been hit
as a result.
He said cement prices had been hiked four times during the past year. “This
has made construction of a housing project a very costly affair. The cost of
cement per bag has gone up to Rs 270 from Rs 170 over the past one year,”
he said.
32. POWER OF ASSOCIATION
• United Influence:
• Regulations
• Suppliers
• Buyers
• Utility/Infrastructure providers
• Awareness:
• Research
• Seminars
• Trade-shows
• Image building
• Ombudsman:
• Dispute resolution within members
• Upholding Codes of Conduct
• Representation:
• National & International Groups
• Government
