Mr. Mohit Goel, CEO OMAXE talks about the upcoming hospitality sector in India on NDTV Prime.

New Chandigarh coming up as the state’s first self-sustained Smart City

New Chandigarh is coming up as the state’s first self-sustained intelligent Smart City equipped with hi-tech facilities and having low carbon emission. Wiser after the experience of Mohali and Panchkula, the Punjab Government is aiming to develop New Chandigarh as a self-contained city, well planned with better amenities in education, healthcare, residential housing and commercial development and not just a satellite town of Chandigarh. The city is being developed on an area of 15,000 acres on the lines of a smart city.

The plotted residential development under GMADA, Ecocity is the upcoming ultra-modern Township in New Chandigarh. Huge residential and infrastructure projects by leading real estate developers like Omaxe and DLF are also coming up with various options of residential living like plots, floors, bungalows, villas etc. as well as office and retail spaces. A world-class cricket stadium by the Punjab Cricket Association (PCA) is also in the pipeline. Metro rail connectivity along with a 300 acre Medi city and 1700 acre Education City have also been proposed. Sites for these projects have been identified in the Master Plan for New Chandigarh prepared recently.
 

In fact, the foundation for a Cancer Hospital has already been laid.
The Government plans to develop the areas as a knowledge village with service oriented businessesin the IT/ITES sector, training centres, science park and higher education institutions in order to attract knowledge workers and provide more job opportunities in the area and make it more eco-friendly. The city’s beautification needs are being especially looked into with golf courses, lakes, waterfronts being developed and brick kilns and waste lands being removed.

- Mr Mohit Goel, CEO Omaxe

Proposed 20 lakh homes by DDA will ease demand in Delhi

The Delhi Development Authority (DDA) has un-leased a housing bonanza in the capital giving a ray of hope to the LIG/MIG segments by contemplating the development of 20 lakh residential units equipped with the latest infrastructural facilities on the outskirts of the Capital on about 24,000 hectares of land. According to the Master Plan of Delhi (MPD) 2021, the Capital has about 27,000 hectares which can be developed as sub-cities. The master plan estimates a requirement of nearly 24 lakh residential units for an estimated 23 million people by 2021.

 

DDA’s step to develop residential units on the outskirts of the Capital will give a much needed boost to the realty sector in Delhi, which has been devoid of supply especially in the affordable to middle income segment. With ever increasing population in Delhi due to job opportunities available here, the demand for world-class infrastructure and housing has been on the rise and a sharper rise in prices, too, have been witnessed. This step by DDA will help in easing out the ever increasing demand of homes and provide enough opportunity for developers to operate in the Capital.

A lot of the success of DDA’s initiative will be dependent on how effectively the housing authority and the Ministry of Urban Development plan and manage the ambitious land pooling policy by creating housing pockets in the city. It will also enable private players to assist in creating housing pockets in the capital.The DDA must have learnt its lessons from the acquisition policy adopted in the Delhi Master Plan 1961 which has failed to keep pace with the rapid pace of urbanization witnessed in Delhi. The land pooling policy proposed in the new master plan, if implemented effectively with the help of professional consultants will play a key role in filling the huge gap of residential requirements. Reports suggest that for each 1,000 Ha of the pooled land, the government will be able to provide around 50,000 dwelling units for the EWS sections which will go a long way towards fulfilling the housing needs in our country. It will also give an impetus to realty development in the Capital like Noida, Gurgaon etc in the NCR.

- Mr Mohit Goel, CEO Omaxe

Omaxe @28: Striving To Work Towards Housing For All

At the outset, I would like to congratulate all stakeholders of Omaxe for having stood through thick and thin and taken Omaxe to the height of glory where it is today. The vision of our CMD Mr. Rohtas Goel coupled with hard work and perseverance of one and all led to the emergence of Omaxe as a reliable and trusted name in the real estate sector.

The company has taken huge strides in the last 27 years. Filled with challenges and opportunities, we have faced every wrath with a confident stride; celebrated every victory and enjoyed the success of each one of us as if it were our own. 

Omaxe has all the earmarks of a trendsetter in the real estate industry. Every innovation, venture and strategy has been well thought out. Be it the strategic move to venture into tier II and III cities in latter half of last decade and creating and delivering lifestyle akin to metro cities. Omaxe has earned every bit of trust and respect that is witnessed today. We have delivered area more than the size of a few countries in the world; we cater to roughly 35% of India’s population in the 9 States that we operate in.

However, these are milestones that we feel proud of. But we have never allowed complacency to set in, striving each day to work towards the larger goal of providing housing to all.

Today, we are at an extremely exciting time. The Narendra Modi led Government has begun to show how good intentions and focused approach can result in fruitful action. His vision for India that we all have dreamt of seems very close to reality now. Focus on cleanliness, sanitation and hygiene; besides creation of smart cities and thrust on manufacturing and infrastructure has opened up lot of avenues for us to partner the Government. Blending social cause with business excellence in the regions of our strength is the way forward. 

- Mr Mohit Goel, CEO Omaxe

REIT in India: Is it the right time?

Good news for the cash-strapped real estate and infrastructure industry. The capital market regulator Securities and Exchange Board of India (Sebi) has just approved the final guideline for real estate investment trusts (REIT) and infrastructure investment trusts (InvIT).

The twin move will give the real estate and the infrastructure sector easier access to funds and create new options for investors to invest. SEBI’s approval for setting up of REITs is a timely move for the real estate sector as REITs have globally proved to be an efficient way of raising capital for the sector and providing an easy exit route to investors, also they can be well accepted by investors and provide better returns than other asset class.

In simple terms, REITs will channelize investments from wealthy individuals and institutions to the real estate sector through units sold by REITs. Like mutual funds collecting money from investors and investing in company shares and other financial instruments, REITs will invest money in the real estate industry. Experts believe that $10-$15 billion worth of investment will be infused into the real estate industry through REITs in a couple of years.

Political stability and the recent policy related initiatives have encouraged global investors who refrained before from entering the Indian market due to political, policy, governance and infrastructure-related issues to look towards India again for business activities. Therefore, it is indeed the right time to introduce REIT in Indian market as it will shore up liquidity in the sector and emerge as an alternate to bank finance. 

- Mr Mohit Goel, CEO Omaxe

100 Days of Government: Systemic Changes Visible

The election of a new Government under Shri Narendra Modi was met with renewed interest by the investor and business community. The people of India had elected this Government with a sense of hope and 100 days result is encouraging. Cynics might say 100 day is too short a timeframe but the systemic changes that the new Government is trying to bring about are clearly visible in the way decisions are being taken and the shape the country will assume in the near future.

Until recently, growth decelerated, buyers stayed away from the market and investment slowed. The policy reforms spelled out in the Budget like relaxation in FDI norms for real estate, huge investment in infrastructure, smart cities, bullet trains etc and moves outside the Budget like Jan dhan yojna etc. are correct moves. Good trade relations with neighbours is what the Government intends to maintain and the successful visit of Shri Modi to Japan seeking close to $35 billion investment goes to show the swiftness and positivity with which other countries have reacted to Modi’s vision and decisive approach to governance. Some bold decisions to allow 100 per cent FDI in railways and raising the cap of FDI from 26 per cent 49 per cent in defence and insurance are surely praiseworthy and will show results soon. REITs is yet another good move. Promotion of industrial development and growth of manufacturing sector by government will give a boost to Tier II and III cities, which in turn will lead to improvement in urban infrastructure and create more avenues for employment, income and lifestyle improvement.

- Mr Mohit Goel, CEO Omaxe

Omaxe Committed to Partnering Government in Development of Smart Cities

 

The improvement in the quality of life of our cities is need of the hour. The Government’s emphasis on creation of 100 Smart Cities will go a long way in ensuring better facilities and amenities. The Government had allocated Rs 7,060 crores towards developing smart cities and it will generate huge scope for private sector participation along with avenues for job creation. Prime Minister Narendra Modi’s signing of an MoU with Japan to develop Varanasi by using the experience of Kyoto, is just the beginning of a dream of 100 smart cities looking more achievable. Countries like Singapore have expressed keenness in this grand plan.

A smart city is one that completely runs on technology—be it for electricity, water, sanitation and recycling, ensuring 24/7 water supply, traffic and transport systems that use data analytics to provide efficient solutions to ease commuting, automated building security and surveillance systems, requiring minimal human intervention, and Wi-Fi-powered open spaces and houses that ensure always-on, high-speed connectivity. The Government has just released a draft note on Smart Cities and laid out a broad vision on what it entails. And the concept looks promising.

With majority of India’s population under 35 years, the scope, viability and need is immense. The growing migration will also be curbed with the development of Smart Cities. Complimenting this with the government’s stress on Sanitation and cleanliness of our cities and villages is a good move to change the outlook of the country

All modern amenities, education and employment opportunities are the building blocks of a smart city. For established cities to change the existing scenario will require greater efforts whereas developing tier II and III cities which are already undergoing transformation will be easier. Therefore government should concentrate more on these cities. Omaxe has been one of the first players to invest in development of tier II and III cities and our presence in 30 cities, out of which we have offered possession in 23 such cities encompassing delivery of 58.3 million sq. ft. only reinforces our commitment and strength. 

- Mr Mohit Goel, CEO Omaxe

REIT: A Good Move For Real Estate

Good news for the cash-strapped real estate and infrastructure industry. The capital market regulator Securities and Exchange Board of India (Sebi) has just approved the final guideline for real estate investment trusts (REIT) and infrastructure investment trusts (InvIT). The twin move will give the real estate and the infrastructure sector easier access to funds and create new options for investors to invest. For the sake of this article, however, we shall restrict the discussions on how REITs will have positive impact on the real estate industry.

Though the initiative for REIT started six years ago, the BJP government fast-tracked the move after the Finance Minister announced in the Budget that the government will have friendlier tax norms for REIT. In simple terms, REITs will channelize investments from wealthy individuals and institutions to the real estate sector through units sold by REITs. Like mutual funds collecting money from investors and investing in company shares and other financial instruments, REITs will invest money in real estate industry. The realty industry is thrilled as experts believe that $10-$15 billionworth of investment will be infused through REIT in a couple of years.

The nature and the size: The Sebi guideline says all REIT schemes will be close-ended and the minimum asset size of a REIT is Rs 500 crore while making an initial offer.REITs are permitted to raise funds only through an initial offering of units to individuals and institutional investors (Indian or foreign).The minimum issue size has to be Rs250 crore, the minimum subscription size for units on offer will be Rs2 lakh and at least 25 per cent of the units have to be offered to the public.It is a good idea to keep the minimum subscription at Rs 2 lakh because high net worth investors are expected to take informed decisions and have better risk-taking abilities than small investors.

 As the schemes will close after raising funds in a specified time period, the promoters of REITs will focus more on long term sustainable return rather than being in a perpetual mode of raising more and more money in an open-ended scheme. Once invested, REITs will be allowed raise money through follow-on offers, rights issues or qualified institutional placements and the trading lot for such units will be Rs1 lakh, Sebi said. To facilitate liquidity, units will be listed for trading; REITswill undergo yearly valuation and declare its net asset values (NAVs). Surely, Sebi has paved the way for new investment avenue in India, on the lines of developed markets like the US, the UK, Japan, Hong Kong and Singapore.

 By lowering the minimum asset size to Rs 500 crore from Rs 1000 crore suggested in draft, Sebi has rightly opened up the possibility of creating more number of REITs. This, in turn, will enhance competition among the entities, make more funds available to the realty sector and attract more foreign investors.

 Investment restrictions: The investments norms are aimed at making REITs robust and attractive. To ensure that REITs generate continuous returns through rental income and capital gains, Sebi said at least 80% of the REIT’s assets is to be invested in completed and revenue generating properties. This means bulk of the money will be used to buy completed properties enhancing the liquidity of the developers and lower their dependency on banks. A realty consulting firm estimated that 80-100 million sq ft of office space worth around Rs 60,000 crore may qualify to be acquired by REITs. 

Twenty percent of assets can be invested in properties under development, mortgage-backed securities, in shares and bonds of realty companies and in government securities. REITs, however, are not allowed to invest more than 10% in properties that are under construction.

The ownership structure: To make ownership of REITs broad-base Sebi has stipulated that REITs have up to three sponsors, with each holding at least 5% and collectively holding at least 25% for a period of at least three years from the date of listing. Subsequently, the sponsors’ combined holding has to be at least 15% throughout the life of the REIT. This will ensure only serious players promote REITs and they remain committed to the business.

Tax irritants: The real estate industry would like to see some changes in the tax norms for investing in REITs. Tax experts are of the view that developers and institutional investors will have to pay long term capital gain tax at 20% if they invest and sell units of REITs 12 months after purchase, unlike retail investors who are exempt from this tax. Another irritant is the levy of stamp duty when a property is sold to a REIT. Stamp duty being a state subject and very high in some states, they will lead to lower realisation in a property transactions. To make the REITs more effective and attractive the government should remove these impediments.

Omaxe CEO Mr. Mohit Goel congratulates and felicitates Bajrang Punia for silver medal at Glasgow CWG 2014

Omaxe CEO, MR. Mohit Goel congratulates Bajrang Punia as the company felicitates him for his silver medal at Glasgow CWG 2014 in Men's freestyle 61kg wrestling.

"I take this opportunity to congratulate Bajrang Punia and all the winners from India at the CWG 2014. It gives me enormous pleasure to see the outstanding performance of sportsperson from Haryana. And in an endeavour to promote home grown sports, we have taken this initiative to honour one of the winners and in future we want to encourage the youth who wish to take any sport as a career and bring more laurels for India. Our commitment towards Haryana, in particular, has been immense in bringing about both developmental and lifestyle change through our projects in cities like Bahadurgarh, Rohtak, Faridabad, Sonepat, Palwal and Yamuna Nagar."

- Mr Mohit Goel, CEO Omaxe

Omaxe And The Art Of Delivering Affordable Homes

Omaxe has today created a niche market for itself. Its presence in Tier II & Tier III cities; markets where leading/national developers were skeptical about venturing into because of a host of factors, has seen Omaxe grow into a big name in these cities – having built a reputation, provided quality construction and services and delivered modern homes and lifestyle in these cities.

The recent RBI’s move to make city-wise classification of affordable housing and periodically review its definition is a significant step forward in boosting the real estate sector. The increase in cap of affordable housing eligible for loan under priority sector was imperative considering the rising prices of homes in the last few years. Homebuyers can now avail loans easily and at a lower interest rate. As a result of this, a rise in demand of affordable housing is imminent thereby leading to more developers focusing on affordable housing segment and creating varied choice and ample supply in this segment. In the next 9-12 months, inflation is expected to be reigned in and interest rates are also expected southbound should benefit a lot of homebuyers and reduce their EMI burden.

The RBI’s move coupled with the Government's various tax benefits in Budget will spur demand in real estate and as a result help realize Government’s vision of housing for all by 2022.

Omaxe has been operating at these price points in 30 cities and with RBI's impetus, we plan for an aggressive expansion of existing projects. Our offerings in these cities vary from townships, residential complexes and commercial. With plots, floors, villas, group housing etc to choose from in residential segment, Omaxe's first mover advantage into tier II and III cities almost a decade ago will further get a stamp of enhanced desirability in these cities.

In the last few years, post making a strategic move to diversify into Tier II and III cities, the company has not looked at entering new markets but instead focused on expansion at its existing project locations. Nurturing, growing and adding newer facilities each day remains its endeavour. And as a result of this strategy, the company, in its city of presence, is today known for its modern homes at a affordable cost and providing facilities that metro cities have – from sufficient open and green spaces to clubhouses, parks, designated play area, sports facilities to name a few.

Taking a cue from Omaxe, national developers took baby steps and ventured into cities like Lucknow, Indore and Chandigarh. However, areas that still have a lot of potential are alternative cities like Bahadurgarh, Rohtak, Sonepat, Palwal, Vrindavan etc which are still untapped and Omaxe’s first mover advantage has given it an edge over other developers. There is something very unique about these markets – tough to decipher for companies that doesn’t have a connect with the ground reality and pulse of the consumer. Omaxe’s unique marketing strategies, varied options of residential offerings coupled with affordability and strategic locations have enabled the company gain ground in these cities.

2007-08 was a crucial year for Indian economy and real estate companies in particular. While Metro cities were beginning to show signs of pricing bubble-burst coupled with oversupply, Omaxe’s foresightedness led it to venture aggressively into Tier II and III cities, the results are visible for all to see – leader in its class, low debt levels, excellent project delivery record, inhabited residential complexes and townships, world-class homes, modern lifestyle with matching facilities etc.

Today, in cities like Bahadurgarh, Rohtak, Sonepat, Vrindavan, Lucknow, Allahabad, Faridabad, Palwal, Ludhiana, New Chandigarh, Patiala, Bathinda etc. Omaxe has created a name and has aggressive plans going forward. Expansion of existing projects, adding new lifestyle facilities is an endeavour the company is working towards tirelessly.

Lucknow Real Estate Market

Lucknow’s revised city development plan aimed at beautifying the city and making it traffic free is being finalized as a part of the 2^nd phase of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).   With numerous flyovers, wide smooth roads, stylish malls and multiplexes, modern apartments, projected metro and influx of MNCs, Corporates and renowned  brands and outlets alongwith emergence of  educational, professional & medical institutions, Lucknow is witnessing a makeover and meeting the expectations of those who have a penchant for modern and international living. Approx. 500 km from the national capital Delhi, Lucknow is well-connected to the rest of India by air, rail and road. The city has also emerged as a major hub for business centres with immense market potential. Hence, there is an ever-growing demand for residential & commercial properties. 

To cater to this requirement real estate developers like the Omaxe Group have developed several landmark projects in Lucknow. We at Omaxe have successfully handed over two projects – Omaxe City on Amar Shaheed Path and Omaxe Heights in Gomti Nagar. The company has also begun possesson of Omaxe Residency, Gomti Nagar Extension.The response to its newly launched Omaxe Residency II in Gomti Nagar extension, the construction for which is in full swing, has been overwhelming. 

The Company’s first project in Lucknow- Omaxe City, an integrated township on Amar Shaheed Path, is spread over approx 140 acre. The city is a modern suburbia containing everything from residential plots, luxury & non-luxury villas, hospital, shopping centre, theme parks  and schools making it a fine fusion of world class infrastructure and rich tastes making the project highly acclaimed. The contemporary township has been developed keeping in mind twenty- first century lifestyle and facilities such as swimming pool, sauna, steam, jacuzzi,   multi purpose  food court and banquet hall. Around 650 plots and 250 villas have been delivered and many families have moved in.

The stamp of quality and reliability of Omaxe Group assured the success of Omaxe Heights - a state-of-the-art group housing project with 3 bedroom apartments complimented with modern facilities like gym, swimming pool, kids’ play area, ample parking space, landscaped greenery etc. constructed in the idyllic settings of Gomti Nagar. The facilities have further emboldened Omaxe’s reputation of delivery and quality. The company has started possession for the same and many families have already started soaking in the marvel called Omaxe Heights.

Lucknow real estate market has gained momentum over the last couple of years. The city offers substantial potential for future growth and this is being supplemented by proactive policies of the state government. Development is now not only limited to the main city and the suburbs but is also active along the highways connecting Lucknow to other destinations. The Authority has taken active initiative in all round development of Lucknow. Proper planning of the city's infrastructure and of amenities and utilities is being done to support future growth and development in the city. As a part of the final discussions of the revised city development plan held recently, the Metro Rail Project is being promoted alongwith special focus on public amenities like drinking water, sewage, environment, transport, traffic, internal and VIP roads and parking facilities, city beautification, riverfront and lakes development, street lighting, heritage and community centre development.

Encouraged by the city’s infrastructure growth, we are investing in large scale projects in emerging real estate hot-spots like Raebareli Road. Forthcoming projects like Omaxe Heights-II, Omaxe Anandam and Omaxe MangoWorld will further develop the landscape of the city. Omaxe Anandam is a novel and highly stylized project. It has 3&4 bedroom high-end luxury apartments and duplexes in varied options, designed keeping in mind the aesthetics of the living area and the surrounding landscapes as well. Omaxe MangoWorld is a hi-tech city spread over 2700 acres with commercial, recreational, educational, industrial and institutional development zones. With such projects on display, Omaxe has surely taken the mantle of providing superior living at affordable cost to the Lucknowites.