Archive for the ‘India’ Category

« Older Entries

Is The Indian SEZ Story Faltering?

Monday, May 6th, 2013

The government has recently done away with the minimum land requirement for IT/ITeS SEZs while also reducing specified minimum built-up areas. Land area requirements for other sector-specific SEZs have been reduced as well. Although SEZs in India have shown good revenue growth (USD 66 billion in 2012 –2013; 23.0% of India’s total exports), and are still in a nascent stage compared with China, this is a good time to take stock of the current ground situation.

There were certain decisions taken that, in hindsight, can be seen to have impacted the SEZ story. The imposition of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on SEZ entities has been much debated as worldwide SEZs are generally tax-free enclaves. Their imposition was contrary to the initial idea of promoting SEZs and a positive industrial policy change might have been more helpful. Financial incentives with proactive policy reforms go a long way in promoting new industry initiatives and one without the other causes below-par results. Benefits under reward schemes plus duty drawbacks on the FOB (Freight on Board) value of DTA (Domestic Tariff Area) exports far outweigh the attraction of Income Tax benefits under the SEZ scheme.

In 2005, when the SEZ Act was introduced, it was hailed as a progressive step towards creating infrastructure and employment enclaves which would put the economy on the fast-track to growth. The “China SEZ Model” and its success was considered the benchmark for improving export competitiveness, creating new jobs, increasing GDP and attracting more foreign investment. The idea was also to jump-start the development of secondary cities as engines of growth and employment. This would not only provide for a more inclusive development but also act as a buffer against the increasing pressure of population migration in the larger cities. In the past seven years the SEZ performance in India has produced a mixed bag of results.

The most visible fact is that of the 140-odd SEZs which became operational after promulgation of the SEZ Act of 2005 nearly 90 were for the IT/ITeS business and this shows that such SEZs were another step in providing incentives to an already growing industry. The number of manufacturing SEZs was much lower and represented a lost opportunity. Also, as many as 33 approved SEZs applied for denotification between 2008 and 2011 as they faced low demand amid the economic slowdown of this period.

The growing services sector contribution to GDP (over 62% in 2012) does argue in favour of promoting IT SEZs, but the idea behind tax-free enclaves is also to provide a push to domestic industry to improve its export competitiveness. The promotion of smaller SEZs compared to China was skewed in favour of plain real estate development rather than creating mega-industrial cities with excellent infrastructure. Recent policy developments, such as the Maharashtra Industrial Policy which allows cancelled SEZs to utilise 40.0% of their areas for residential and commercial purposes and the remainder for industrial use, look to create integrated industrial estates, which may yet offer some hope for the future.

About the author
Rohan Sharma is the Senior Manager for Jones Lang LaSalle in India, based in Gurgaon.

Posted in India, Policy Impact | No Comments »

Will Indian Real Estate Become More Transparent By 2014?

Tuesday, April 23rd, 2013

Jones Lang LaSalle’s 2012 Global Real Estate Transparency Index (Jones Lang LaSalle’s Global Real Estate Transparency Index is a unique survey that quantifies real estate transparency across 97 markets worldwide. The Index is updated every two years) revealed that there has been some improvement in transparency across the world’s real estate markets. Although India improved its overall transparency rating, its Tier I cities (Delhi NCR, Mumbai and Bangalore) were ranked lower at 48 in 2012 compared to 41 in 2010. Tier II cities (Chennai, Hyderabad, Kolkata and Pune) were stable in 49th place globally, and Tier III cities (Ahmedabad, Coimbatore, Kochi, Bhubaneswar and Visakhapatnam) improved their ranking to 50 in 2012 compared to 55 in 2010. This shows that other countries are moving up the transparency ladder faster than India, with the Tier I and II cities of China and the Philippines moving ahead of India in 2012. Under such circumstances, what is India planning to do to improve its real estate transparency in the coming years?

Real estate transparency is one of the key criteria for investment decisions, which is why India’s government and regulatory authorities are working to improve the investment climate through market transparency, albeit at a slow pace. The relaxation of FDI laws, an improvement in the availability of data and the strengthening of regulations in the real estate sector are a few of their initiatives. The Real Estate Regulation Bill is a key policy that is expected to improve India’s transparency score; it is likely to be tabled in the upcoming winter session of the parliament in 2013. Some more aspects that are expected to make India more transparent by 2014 are noted below:

  • Performance Measurement – The availability of time series data and indices on real estate returns will improve with the increase in the number of listed real estate companies and institutional investors in India.
  • Market Fundamentals – The availability of accurate time series data on market fundamentals (demand, supply and real estate prices) for the office, retail and residential sectors is expected to improve. Data availability on the industrial and hotel sectors is still opaque but is expected to improve marginally over the next few years.
  • Regulatory and Legal – The introduction of the GAAR (General Anti-Avoidance Rule) and the CLR (Computerisation of Land Records), and the further strengthening of real estate regulations is expected to improve transparency in the application of tax and building codes, and the availability of title records.
  • Transaction Process – With the increase in multinational occupiers in India, the clarity of contracts in occupier services is expected to improve further. The presence of international property consultants and their better client services are improving the professional and ethical standards of property agents in India. Therefore, transparency scores in this sub-index are also expected to increase.

    • As both international and national developers in India are penetrating deep into the cities, transparency scores are expected to improve further. By 2014, India’s Tier I cities are likely to be close to transparent (The cities are scored at a scale of 5 where 1.00-2.59 is transparent, 2.60-3.76 is semi-transparent and 3.77-5 is opaque), with the availability of more accurate data on returns and market fundamentals. Tier II and III cities will continue to be lower down the semi-transparent tier, albeit with higher transparency scores.

    About the author
    Trivita Roy is the Senior Manager of Research and Real Estate Intelligence Service, for Jones Lang LaSalle in India, based in Hyderabad.

    Posted in India, Transparency Research | No Comments »

    The Historic Office Buildings Of India Need A Chance To Stay Alive!

    Tuesday, April 9th, 2013

    We all become nostalgic once in a while; in fact nostalgia is one of our emotional needs. Mature societies are nostalgic about and sensitive to their heritage and one example is that they make efforts to keep historic architecture alive. Reviving and regenerating old buildings and city districts are indeed the much needed and accepted instruments of architectural conservation.

    In India, many buildings such as community halls, town halls and libraries, and of a religious nature, are fairly well conserved but it is the office buildings that seem to attract apathy not interest. In cities such as Mumbai many buildings are listed as “heritage buildings”, meaning that any structural modification and internal refurbishment need to be approved by the heritage committee of the city corporation.

    Nowadays, growing vacancies in old office buildings, particularly in the historic central business districts of Indian cities, are a concern not only to their owners but also to conservationists who fear that the structures will deteriorate due to poor maintenance or from unsuitable use. These heritage buildings are already struggling to retain their occupiers for they have smaller floor plates, inadequate parking space, too many columns obstructing the “open work space” lay-out, extensive use of outdated building materials such as wood, and are located in densely packed neighbourhoods.

    While these historic buildings are often structurally sound and might well last another century, their services and area infrastructure are crumbling and the making of changes might mean the damage and loss of heritage elements. This is where the problem lies. Heritage Committees need to be pragmatic and accommodating to ensure that these assets are given up-to-date infrastructure and services, and are safe and secure for the people working there.

    The government could also introduce incentives for owners and occupiers to help them make their buildings competitive in the office market. Lower property taxes and stamp duty, company tax deductions, preferential allocation of public parking etc, are some of the motivators that will help these heritage assets remain in good condition.

    About the author
    Ashutosh Limaye is the head of Research and Real Estate Intelligence Service, for Jones Lang LaSalle in India, based in Mumbai.

    Posted in India, Regeneration | No Comments »

    India Office Real Estate: A Tale Of The Suburbs

    Monday, March 25th, 2013

    India is rapidly urbanising and the skylines of the country’s metropolises are changing quickly with the building of skyscrapers and modern architecture. The smaller towns too are being transformed in unprecedented ways through the expansion of transportation networks, the creation of central districts and parks and by numerous residential projects. Many cities have been transformed and Ahmedabad is most illustrative of them. Even before the metro rail link between Ahmedabad and Gandhinagar has sprouted tracks, Gujarat International Finance Tec-City (Gift City) phase I (10 million sq ft) has already rolled out its construction plans. However, all these big changes have not been caused by irrational enthusiasm – they are indeed necessary, given the influx of people to the towns and the needful creation of employment. As existing CBDs have become saturated, India’s commercial markets have grown in terms of both the density of existing business districts and the emergence of new ones.

    During the past decade, India’s commercial property segment has been witnessing a steady rise in demand for office space and the impact of the GFC is now waning. All this activity is credited to the significant shift within the country from developing average-quality commercial space to building superior-quality projects with advanced amenities that support the business environment. Also, the on-going infrastructure initiatives are aimed at transforming the suburban areas into successful commercial centres.

    The recently conducted Jones Lang LaSalle India CFO survey revealed that approximately 68% of the companies surveyed are planning to expand their operations in the next five years. These companies may prefer to shift to suburban locations because by doing so they will be able to reduce their real estate costs and move into superior quality projects, which are available at lower rents and offer modern amenities, car parking and safety. The banking, financial services and insurance (BFSI) sector dominates the CBD market due to its willingness to pay higher rents, whereas IT/ITES occupiers dominate the suburban market in terms of occupancy due to the availability of larger office space areas and because the nature of their business makes them vulnerable to higher real estate overhead costs.

    Suburban locations are home to the majority of office occupiers and will have a growing role in determining the performance of the country’s office market. The absorption of office space in the country totalled 26.7 million sq ft in 2012 with suburban locations accounting for more than 60% of the total, or 16.6 million sq ft. This is forecast to increase further to 68%, or 19.2 million sq ft in 2013. These growing real estate activities in suburban locations of India provide evidence of a shift in gravity towards this market.

    About the author
    Karan Khetan is the Senior Analyst for Jones Lang LaSalle in India, based in Mumbai.

    Posted in Commercial Property, India, Uncategorized | No Comments »

    Indian Office Real Estate – Buy

    Monday, March 18th, 2013

    Institutional investors and private equity funds targeting India are gradually reducing their exposure to risky assets and are on a look-out for more stable income generating investment options. Meeting this requirement, stabilised office blocks with their low-risk income yielding qualities, have become one of the most sought-after portfolio components of institutional investors and funds.

    The Indian office market is significantly driven by the IT/ITeS sector. According to the industry body NASCCOM, exports from the IT/ITeS industry are expected to grow by 12-14%, and domestic revenues of the IT/ITeS sector by around 13-15% in the fiscal year ending March 2014. According to the Manpower Employment Global Survey, hiring expectations were strongest in India during 2012 when compared to other countries globally and, interestingly, Indian employers have consistently expressed strong hiring expectations for 1Q13 and 2Q13. Similarly, according to the Grant Thornton International Business Report 2013, 62% of the Indian employers surveyed have hired during 2012, more than any other country globally. Indian employers continued to remain the most optimistic globally as 63% of the businesses surveyed were planning to expand their workforces in 2013. Furthermore, our in-house CFO survey revealed that 68% of the companies surveyed were planning to expand their operations in the next five years, inferring strong future demand for office space in India.

    While India boasts of its talent pool and demographic dividends, the country has been a laggard when it comes to physical infrastructure. Realising this bottleneck, the Planning Commission has proposed a one trillion USD investment in infrastructure development in its 12th five-year plan, and this in turn is expected to boost the overall real estate market in the country. Moreover, with the Finance Minister presenting a better-than-expected fiscal deficit target of 4.8% for FY14, coupled with a reduced fiscal deficit of 5.2% in FY13 against 5.9% in FY12, the government of India has created a conducive environment to facilitate further monetary easing. This should enhance business opportunities and is expected to create a beneficial effect for the Indian office sector.

    Although Indian office assets are expected to deliver good returns, being able to evaluate the risk on the ground and picking the winning asset will truly differentiate the results. With most developers looking for liquidity, investors could earn a better yield if they invested now. Furthermore, most of the funds that invested during the pre-GFC era with a fund life of five-to-seven years are on the lookout for an exit opportunity, and hence this would be an ideal time for new investors to enter the Indian office market. Learning from lessons of the past, Indian real estate assets, and, in particular, office assets should be held much longer than seven years in order to beat economic cycles and to reap the real benefits from India’s economic progress.

    About the author
    Vasanth Raghunathan is the Assistant Manager for Jones Lang LaSalle in India, based in Chennai.

    Posted in India, Office Research | No Comments »

    India Real Estate, Cost Saving and CRE Managers

    Tuesday, March 5th, 2013

    Real Estate (RE) costs form a significant portion of the overall expenditures of any office occupier and are only lower than the costs of human resources. In recent quarters, the top seven office markets in India have entered initial growth phases, and office occupancy costs have started to rise after remaining occupier friendly for about eight quarters. However, the financial indicators continue to remain far below the peak values recorded during 1Q08, prior to the onset of the GFC. Going forward, pan-India rents will likely grow by an average of 24% by end-2014, while capital values are expected to increase by 29% from their corresponding trough levels during the same period (Figure 1).

    Figure 1: India Office Financial Indicators (RV | CV) Index

    Source: Real Estate Intelligence Service, Jones Lang LaSalle (4Q12)
    Note: RVI – Rental Value Index; CVI – Capital Value Index

    Moreover, increasing domestic costs and uncertainty concerning outsourcing businesses from the US and Europe have pressured major office occupiers’ top and bottom lines. Thus, Corporate Real Estate (CRE) managers are being exposed to greater scrutiny from external and internal stakeholders, leading to augmented compliance and reporting requirements and more stringent targets for cost reduction.

    Finding a solution for each of the following 10 questions would ensure optimal RE costs and result in improved profitability and value creation for an occupier’s business:

    1. Is a robust information infrastructure in place to proactively analyse and strategise? Does an effective process to ensure speedy RE decisions exist?
    2. Are RE costs compared to the industry’s benchmark?
    3. Are business units/verticals financially accountable for RE costs?
    4. Is revenue growth balanced with the right sizing of RE space?
    5. Are alternative workplace strategies being used as a cost saving technique?
    6. Are on-going lease agreements re-negotiated or restructured to align with the RE costs under the prevailing market’s conditions?
    7. Is sale and leaseback considered for enhanced liquidity?
    8. Is a meticulous plan in place to uncover under-utilised space in the RE portfolio?
    9. Is a sustainable lease practice endorsed and followed? Are environmental, social and economic factors balanced to ensure sustainable outcomes?
    10. Is there an integrated approach towards facility management to ensure cost benefits?

    Though some cost-saving techniques, such as implementing an alternative workplace strategy or relocating operations, would have to be implemented over the long term, some of the following techniques could easily be employed almost immediately:

    - Conducting dark space audits to eliminate under-utilised space
    - Conducting portfolio assessments to identify the values of lease-held and free-held properties
    - Making business units financially accountable for their RE costs
    - Evaluating sale and lease back options to improve liquidity
    - Early renewal of on-going leases
    - Conducting sustainability and energy audits

    With occupancy costs expected to increase in the mid-term, we foresee the above techniques gaining more importance among CRE professionals in India in the near term. For more insights on the topic, read our forthcoming research paper titled – “Real Estate Cost Optimisation – The Road Less Travelled”.

    About the author
    Hariharan Ganesan is the Senior Manager, Research for Jones Lang LaSalle in India, based in Mumbai.

    Posted in Corporate Real Estate, India | No Comments »

    The Indian Residential Price Conundrum

    Friday, February 15th, 2013

    The Reserve Bank of India (India’s central bank) recently reduced the repo rate (rate at which RBI lends to the various banks) by a quarter-percentage point, to 7.75%. This was the first reduction seen in nine months as the Indian economy grappled with high consumer inflation (recently moderated from over 10% in the last few months). As key policy rates remained unchanged, the economy struggled with a tepid investment environment. The RBI however remained steadfast and did not give in to the government pressure to bolster the flagging GDP growth by reducing key rates as controlling inflation remained the prime concern.

    During pre-GFC days, the real estate sector had been one of the major beneficiaries of the affordable borrowing rates, with development firms enjoying project loans while benefitting from the demand for residential housing remaining robust due to affordable home loan rates. A revision in lending rates to infuse liquidity in to the market had been a major demand emanating from the real estate sector as increasing supply and a range-bound absorption rate had increased the overall inventory levels in the residential market. The impact of the lowered rates was immediately apparent as most banks announced reduction of 25-50 bps in home loans.

    It is evident that the expected price-correction will not materialise any time soon with the developers getting some breathing space. Cheaper home loans have given developers the opportunity to maintain price levels while less expensive advances will positively impact their current cash positions. Buyers will also be encouraged to enter the residential market as their home-loan EMIs (Equated Monthly Installments) will reduce. This will also help the developers offload their housing units’ inventory.

    Developers cannot be faulted entirely for their prices as increasing construction costs and rising land valuations have added incremental factors to project costs. Thus, price reductions have not been made easy in this scenario. It also did not make business sense for them to sell at cost and hence the predictions of price correction have not materialised, though the developers have had to invent innovative selling schemes to boost sales volumes.

    A macro-level approach is needed to control rising residential prices. While the Tier II and III cities remain attractive in terms of prices, the larger cities need more proactive government action to benefit buyers. Actual benefits to buyers will not accrue by merely lowering home loan interest rates but by providing inflation protection for the whole sector. A more robust land policy and unlocking land holdings will definitely reduce the land value component cost in a residential project. Higher financial allocations and access to cheaper monies will also allow for improving the operating margins.

    In the absence of policy reforms, the long term solution to the problem of meeting India’s housing demand at affordable price-levels is not in sight. An impetus from cheap home loans is unlikely to convert to demand every time, and while it is important in context with situational necessity, we should not make it a pre-requisite for the residential sector to perform well while ignoring structural reforms.

    About the author
    Rohan Sharma is the Senior Manager for Jones Lang LaSalle in India, based in Gurgaon.

    Posted in India, Residential Research | No Comments »

    Office Real Estate Strategy In India – An Occupier Perspective In 2013

    Thursday, February 7th, 2013

    Following a vibrant year in 2011, overall demand for space in the domestic office sector contracted throughout 2012. However, as the year closed, numerous positives revealed a more certain path for 2013. Large multinational firms are likely to drive corporate demand in India during 2013. With almost every fortune 500 company having taken a position in the country, most of the demand for office space will come from the cautious expansion and consolidation of their operations.

    Occupiers have realised that the current favourable market conditions may not last forever. Therefore, occupiers are focusing on continuing to be cost-effective along with addressing longer-term issues, such as the expansion and consolidation of their real estate portfolios in accordance with their business strategies. Newer occupiers are moving from larger to smaller spaces that allow them to optimally utilise their space and implement smart work concepts, shifting from pre-let projects to completed, ready-to-move-in buildings and choosing high-quality spaces that are available at the current competitive market terms. As such, a transition by occupiers from average to high-quality buildings to reduce maintenance and operational costs over the long run has been observed. These occupiers are opting for buildings with sufficient car parking and other amenities and attempting to force longer-term leases in an effort to ensure that the capital they commit to corporate real estate generates a positive arbitrage.

    Controlling real estate costs will remain a key element of occupiers’ strategies in 2013. The real estate costs for space ranges between 10-15% of total operating cost depending on the business sector and the capital committed to corporate real estate generally generates a lower return than the same capital committed to alternative business uses.

    Early (pre-mature) renewal of leases can be done if passing rents are higher than market rents. Lease incentives can be negotiated in high-vacancy markets and if passing rents are on par with market rents, a long-term lock-in can be negotiated. The other strategy of occupiers is to set up an operating real estate subsidiary inside the company to create an identifiable metric for calibrating the success of corporate real estate operations, a major shortcoming of most corporate real estate departments.

    Many occupiers are adopting the above-mentioned strategies to their keep real estate expenses cost-effective. These occupiers include Cap Gemini, Goldman Sachs, NDS, Mercedes and Cisco to name a few and many occupiers will focus on cost-effective strategies during 2013 and 2014.

    Occupier Strategies

    About the author
    Srinivasa Reddy is the Senior Manager of, Research for Jones Lang LaSalle in India, based in Bangalore.

    Posted in India, Occupier Strategies | No Comments »

    13 Insights For India Real Estate In 2013

    Friday, January 25th, 2013

    The year 2012 closed with a few positive notes as inflation was below projected levels and growth in industrial production gave new hope for 2013. Overall, 2012 remained inactive, affecting major sectors in real estate. With the expected moderation in inflation and strengthening policies, here are a few interesting insights for 2013.

    1. Economy – As per the Reserve Bank of India (RBI), 2013 will focus towards growth, although risks of inflation will continue to remain. Interest rates are expected to soften in 2013.
    2. Policies – The few policies likely to benefit the real estate sector in 2013 are: the Real Estate Regulation Bill, real estate investment trusts (REITs) and the Land Acquisition and Rehabilitation and Resettlement Bill.
    3. Infrastructure – In 2013, the relaxation of foreign direct investment (FDI) policies in multi-brand retail and a 100% FDI permitted under the automatic route in built-up infrastructure, is likely to boost development in this sector.
    4. Office Real Estate – Absorption in 2013 is likely to remain stable. Rents are expected to increase from 2H13 onwards. Decisions on occupying special economic zone (SEZ) spaces will be taken by occupiers as they have to go live by March 2014 to avail the benefits.
    5. Retail Real Estate – The relaxation in FDI policies in multi-brand retail, has interestingly, boosted aggressive growth amongst Indian retailers. In 2013, retailers are likely to opt for built–to–suit (BTS) options or high-street properties amid constrained supply of good quality malls.
    6. Residential Real Estate – The framework of REITs once formulated, is likely to drive investor demand in rental housing. In 2013, residential units in the range of INR 3,000–5,000 per sq ft in prime cities are likely to see fast sales.
    7. Industrial Real Estate – Sale-cum-leaseback of existing industrial assets is likely to increase in 2013. Growth in e-retailing and FDI in multi-brand retail is expected to increase the demand for warehouse space in 2013.
    8. Education and Healthcare – There are aggressive growth plans in education and healthcare infrastructure in 2013 and are expected to attract private equity investments.
    9. Investment Sentiment – Debt capital is expected to increase. Assets will witness a compression of yield rates amidst increased liquidity.
    10. Delhi – Office absorption is likely to focus around Gurgaon and Noida. Rents are expected to increase in certain sub-markets due to supply constraints by 2H13. Developers will focus on delivery of the residential products.
    11. Mumbai – Office absorption and residential demand will increase. Residential launches will increase but a price fall is unlikely to happen. There will be constrained supply of quality retail malls and they will earn premium rates in 2013.
    12. Bangalore – The most preferred destination for office space will be Outer Ring Road and for residential real estate will be North Bangalore in 2013.
    13. Other Cities – Residential launches are likely to increase in Kolkata and Hyderabad in 2013. Prices of residential units are likely to increase. Ahmedabad, Bhubaneswar, Kochi and Coimbatore are likely to witness enormous development in 2013.

    About the author
    Trivita Roy is the Senior Manager of Research and Real Estate Intelligence Service, for Jones Lang LaSalle in India, based in Hyderabad.

    Posted in Forecasting, India | No Comments »

    Vastu Shastra – As You Behold It!

    Monday, January 14th, 2013

    I saw an advertisement for a residential project in a modern district of one of India’s cities that read – “100% VASTU- COMPLIANT HOMES”. It took me back to my college days when I was studying architecture. The debate then was whether “Vastu Shastra- Ancient Indian science of shelter” (similar to China’s Feng Shui) was a science or a part of India’s legacy of ancient wisdom that defines what to do and what to avoid through the use of metaphors. My professor helped me extract the science from the metaphors and realise that the ancient tradition was simply basic building climatology explained through metaphoric religious scripts.

    Since that time, 21 years have passed, but the climatology of Vastu Shastra has remained poorly understood and largely ignored. At the cost of impractical design, additional expenditures and aesthetic compromise, developers constructing buildings and buyers purchasing homes care very little about trying to achieve maximum “Vastu- compliancy”. I appreciate and respect that the nature of supply is a function of the nature of demand. Given this, I am a bit unhappy that we are not gaining much in building better homes despite the relevant practice mentioned therein. As we should be able to work flexibly with it to make it relevant today, there is no need to be intimidated by Vastu Shastra’s warnings of what not to do.

    Vastu Shastra is about maximising the benefits that can be derived from nature by planning sensibly in India’s geo-climatic context. For a predominantly warm country with a well-defined rainy season, the practice is related to the natural energy-producing elements, such as the “morning sun” of the East, which brings good radiations, and the cooling winds from the south-west seas, which bring rain and thus good fortune and “shield” the South against excessive heat, etc.

    Rather than respecting this ancient wisdom and using it judiciously, today’s developers are building homes that are largely a pale, monotonous outcome of the so-called “% compliant” syndrome. Various regions in India have distinct regional architectural identity but it is being lost for the want of replicating so called “% compliant” features. Fortunately this activity is presently restricted to only certain cities and states. However, this trend seems to be growing and could lead to an unwarranted dependency on artificial building environments, which would increase capital investment and cause operating costs to rise. To be Vastu qualified, buildings often end up wasting space and materials. As India’s cities are facing severe shortages of land and sustainable energy, it is painful to see residential buildings making a mockery of the concept of “group housing”, which strives to optimise the sharing of infrastructure and services.

    Instead of creating optimally functional, visually pleasing properties, architectural creativity may be subjected to concealing the inefficient hazards of Vastu-compliant buildings. Today, it is impossible to implement the practice of Vastu Shastra in its original form, and there is no need for it frankly. Given that today’s much increased population is jostling for space, understanding the concept of climatology and implementing it in the present context would be beneficial and give India efficiently designed homes that use less energy and restoring regional architectural identity.

    About the author
    Ashutosh Limaye is the head of Research and Real Estate Intelligence Service for Jones Lang LaSalle in Mumbai, India.

    Posted in India | No Comments »

    « Older Entries