Volume 1 Issue 1 January 2010

APREDA : BUILDING NEW HORIZONSAPREDA : BUILDING NEW HORIZONSFrom the President’s Desk

Andhra Pradesh Real Estate DevelopersAssociation, popularly known as“APREDA’, founded in 1996, is a vibrantorganization with 400 members andfunctions out of its head office inHyderabad and branch offices in Vizag,Tirupati and Vijayawada.

The new Governing Council of‘APREDA’ that assumed office in April 2009 took the challengesin its stride and chartered a course of action to “Spiff up itscontribution through collective action.” This essentiallyinvolved a decisive shift from its traditional role of interactingwith the Government in evolving development orientedpolicies to that of a vibrant organization that caters to theoverall needs of its members as well as other stakeholders.

Innovate and strengthen the brand “APREDA”

Create and unleash synergies in Marketing, CostManagement and Financing etc.

Increase the portfolio and quality of services tomembers and other stakeholders viz., ProductKnowledge, Construction Techniques, ProcessInnovation, Product/Service/Price Intelligence.

Networking with National and Regional Organizations.

Some achievements in this regard include the new logo &presentation materials, Guest Speaker Sessions, ProductPresentation, SMS & e-mail Service, Networking with‘NAREDCO’ and others. The Diary and Website are in theoffing. This Newsletter is another step in this direction.

My predecessors Col. (Retd.) Narne RangaRao, Sri . M Murali Mohan andSri. PS Reddy have set such high standards

of service and systems it’s a privilege for the new GoverningCouncil to inherit and enhance.

The strategies we have chosen to follow:-

“Wishing you all a healthy and successful 2010”

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APREDA IN THE YEAR 2009APREDA IN THE YEAR 2009

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APREDA’s new Governing Council headed by Sri P. Prem Kumar,President, assumed office in April ’09.

Sri Shilpa Mohan Reddy and Sri Jupally Krishna Rao, from theRealty Industry, took over the important portfolios of Housingand Civil Supplies respectively, in the Government of A.P.

Sri Batti Vikramarka, erstwhile member of APREDA, isappointed as Chief Whip of Congress Party in A.P. Assembly.

Dr. Y. S. Rajasekara Reddy expired in a helicopter crash: APREDApaid homage to the departed leader under whose tenureAPREDA had several interactive meetings with the Govt. thatresulted in shaping Building Bylaws, incentives for affordablehousing, establishment of a green channel for issuing oflayout/building permits and several other initiatives for realestate growth. Dr. Y. S. Rajasekara Reddy had also unveiled the“Tsunami Housing Colony” constructed by APREDA memberswith their own contributions and handed over free of cost to thevictims at Bingenpally, Prakasam Dist.

Several districts of Andhra Pradesh were affected by floods.While individual APREDA members contributed in cash andkind, APREDA as an association proposed to construct a housingcolony for the flood victims on the lines of ‘Tsunami Colony’constructed by APREDA and requested Sri. Konijeti Rosaiahgaru, Hon’ble Chief Minister of Andhra Pradesh, for allotment ofland.

Sri Murali Mohan, Past President & Chief Mentor-APREDA, iselected as President, Movie Artistes Association (MAA).

APREDA Delegations participated in

(i) AP Government ‘Group of Ministers’ Interactive Meet onIntegrated Township Development with Private Initiatives.

(ii) Ninth National Convention of NAREDCO and NationalConference on Public Private Partnership in Housing.

(iii) Coordination Meeting of State Chapters of NAREDCO.

P Prem KumarPresident

CongratulationsCongratulations

Shri P Prem Kumar, President - APREDA, is elected as VicePresident (South), NAREDCO. APREDA Horizonscongratulates and wishes him a successful innings in theNational Realty Arena.

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Kirloskar GensetsFinolex Cables

www.apreda.org

National Realty TrendsNational Realty Trends

Regulatory Bill

Realty Revival

The Central Govt. proposed to enact a Model Bill for Regulating Real Estate. The Proposal to establish a Regulatory Authority andan Appellate Tribunal in each state to regulate, control and promote planned and healthy development and construction, sale,transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain awebsite containing all project details, with a view to protecting, on the one hand the public interest in relation to the conduct andintegrity of promoters and other persons engaged in the development of such colonies and, on the other hand, thesmooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties and formatters connected therewith or incidental thereto.[ details on website]

In a report on residential markets in India, global realty research firm Knight Frank said thatfrom now until the end of 2011, approximately 3,67,000 units, roughly 533 sq ft of Grade Aresidential supply, are expected to come up in seven major cities in India. Of this unit supply,the report says Hyderabad accounts for approximately 14% of the units and 6.1% of the built-up area. {see Table for other details}

facilitating

Rating of Developers & Projects by NAREDCO

THE TREND OF

ACROSS METROSGROWTH

METROHOUSING

UNITS(in 1000s)

HOUSINGDEVELOPMENT(in millions sft)

Chennai

Bangalore

NCR

Hyderabad

Kolkata

Mumbai

Pune

33

38

92

53

25

73

53

45.4

72.1

160.1

87.2

31.9

80.6

54.2In a bid to help purchasers, NAREDCO has introduceda service for rating of Developers and Projects. The ratingis done by NAREDCO certified rating agencies likeCRISIL etc. The rating system is a comprehensivemechanism covering

a) Developers b) Projects

This is based on a criteria of trackrecord, capital employed, manpower, equipment, type ofareas, number and value of projects, built-up area,amount of foreign exchange earned etc., as outlinedbelow.

1. Track record of Developers/Builders based on generalreputation in the market, including performance relatingto items such as Quality of construction in conformitywith nationally approved standards relating to all fieldsof construction.

Conformity with building by-laws and regulations.

Record of serviced land delivery

a) On owned land b) On others land

Provision of on-site infrastructure

a) On owned land b) On others land

Conformity with financial regulations and fair tradepractices.

Nature & extent of litigation against the developer bygovernment/semi-govt/public sector agencies/general

public.

Conformity with ethics concerning sales andsubsequent services.

Provision of Community Services: Education,medical, recreation etc.

2. Capital employed by the company and annual turnoverfor the past five years.

3. Manpower employed.

Rating of Developers:

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4. Equipment used either on own or through suppliers/sub-contractors.

5. Type of areas covered during the past 10 years relating tocommercial, residential areas, integrated townships,group housing etc.

a) On owned land b) On others land

6. Number and value of projects in hand (both physical aswell as financial) relating to properties

a) On owned land b) On others land

7. Total built-up area in current project, number of dwellingunits, contribution to economically weaker section of thesociety.

a) On owned land b) On others land

8. Amount of foreign exchange earned through sale of realestate to NRIs during the last five years.

The rating reflects the status on a gradedscale indicating developer related risk factorsleading to development and transfer the title of theproperty to the customer / investor. Such a rating shallprovide incentives to developers to maintain standardsand conform to legal and building norms with consumer /investor getting a fair deal. This shall facilitate the orderlygrowth of the sector presently characterised byinconsistencies and irregularities.

NAREDCO rating of developer shall lead to a national poolof certified developers operating both at the national &state levels.

Rating of Projects:

For more information, log on to:

www.naredco.org/home_rating.html

Govt. Initiatives for Real Estate Development in Andhra PradeshPolicy on Promoting Development of Integrated Townships with Private InitiativesThe Government of Andhra Pradesh, with a view to giving impetus to planned urban development of urban areas andsurroundings of cities and towns of the state and to encourage private sector investment / Foreign Direct Investment (FDI) in realestate sector, and to encourage development of integrated townships with private initiative, is coming up with a comprehensivePolicy and Rules & Regulations. The Major Objectives of this exercise are:

a) To encourage and promote large scale integrated development of self-contained townships with private initiatives that wouldresult in optimization of land use, ensure economies of scale, increase housing facilities, and better provision of infrastructurefacilities and amenities;

b) To have in-built incentives and safeguards that would ensure planned development not only in large urban areas but also insmaller urban centres so as to ultimately contribute planned decentralisation and dispersal of urbanisation in the state andgive impetus to development of small and medium towns;

c) To have a viable institutional mechanism for promoting such integrated townships development;

d) To cater to all sections of society as well as create more work spaces through such integrated townships development;

e) The whole process would result in a win-win situation for all stakeholders (viz. land owners, developers, Government andpublic at large)

f) To reduce dependency on Government lands for such type of development.

APREDA is actively associated with the “Group of Ministers” in shaping this policy.

Brief Overview

Project Description

As part of efforts directed at reforming landadministration, the Government of Andhra Pradesh isconsidering the introduction of “Bhu Bharati,” anintegrated land information system, which has beenpiloted in Nizamabad district.

The Government of Andhra Pradesh approved theconcept of the project and issued an order for piloting it inNizamabad district. Accordingly, the current department-centric approach will make way for a service-centric

architecture. The system will deliver the entire gamut ofland-related services to the end users through a unifiedinterface.

The present system of maintaining land records inmultiple government departments will be discontinued.A single dedicated agency will create, maintain anddeliver all land-related services like survey, subdivision,maintaining title records, registering property transfers,and maintaining property tax records in rural and urbanareas.

For more information, log on to:www.nisg.org/previewproject

Bhu Bharti - Integrated Land Information System

a) Issued G.O.Ms. No.01 dated 01-01-2009 for total remission of the Stamp Duty of 5% payable as per Article 47-A(d) of Schedule-I-A to the Indian Stamp Act, 1899 on the sale deeds in respect of residential flats/apartments including semi finishedstructures. The remission is applicable to flats/apartments measuring upto 1200 Sft. or below, including common areaexcluding parking area.

b) Issued G.O.Ms. No. 3 dated 02.01.2009 exempting the prescribed payment of Building Approval Fee / Building PermitFee for a period of one year to all apartment complexes /group housing projects on the built up area covered by a housing unitsof plinth area up to 1200 Sft (including common areas). In case only a part of the complex is proposed with Housing units of1200 Sft, (including common areas), the said fee exemption shall be extended to that proportionate area only.

APREDA has already represented to the Govt. for the extension of the exemption period for one more year.

Govt. of A.P. Incentives for Affordable Housing

Late Dr. YS Rajasekhara Reddy Garu, Past Chief Minister of AP,seen at the unveiling ceremony of Tsunami Colony constructedby APREDA Members and given free of cost to Tsunami victims

Tsunami Colony at Binginipally,Singarai Konda Mandal, Prakasam Dist.

The Tsunami Colony was inaugurated bythe then Finance Minister, Govt of Andhra Pradesh Shri K Rosaiah Garu

APREDA Members

Sri Jawahar Reddy, Commisioner, HMDA, gave a presentation on the Infrastructure Development Projects in the Hyderabad MetropolitanArea. He felt that it is not long before Hyderabad develops into a world class city.

Sri Sista Vishwanatha Rao, OSD in the Dept. of Municipal Administration and Urban Development, Government of A.P, delivered aGuest Lecture on “Affordable Housing” and the proposed comprehensive Urban Land Development Rules for Andhra Pradesh. Hehighlighted the need to take up affordable housing projects as there is enormous unfulfilled demand for this category. He also felt thatsuch projects will give continuous workflow and stable income for the developers even though the profit margins may be low. He alsogave the outline of proposed comprehensive Urban Land Development Rules.

PRODUCT PRESENTATIONS�

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Schneider Lifts made a product presentation at APREDA Monthly Meeting in November 2009.

A presentation on Gypsum Plastering as a substitute for Cement Plastering was made in the Monthly Meeting.

Ragi & Ragi made a presentation in APREDA Monthly Meeting on Kirloskar Gensets and Electrical Items.

Sri M Murali Mohan, Past President and Chief Mentor, presenting a memento toSri Jupalli Krishna Rao, Hon’ble Minister for Civil Supplies

Sri P.S. Reddy, Immediate Past President and Chief Advisor, presenting a memento toSri S C Mohan Reddy, Hon’ble Minister for Gruha Nirman

Guest Speaker Session

APREDA GUEST SPEAKERS

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Spacious clubhouse with steam, Jacuzzi and indoor gamesWell-equipped air conditioned gymnasiumScreening of visitors at security through a dedicated TV Channel24×7 security with intercomExtensive greenery to explore and indulgeOutdoor children play area with play equipmentWater softenersA

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F o r t u n et o w e r s

M a d h a p u r, H y d e r a b a d

Sri SreenivasaC O N S T R U C T I O N S

Plot No.35, Sagar Co-operative Housing Society Road No. 2, Banjara Hills,Hyderabad - 34, Ph: 040-2355 1891/92 www.srisreenivasa.com

Then, it wasabout shelter.Now it’s aboutlifestyle!

Edited and compiled by: Published by APREDA.

For Private Circulation only.

R. Chalapathi Rao. Vice - President, APREDA

# 102, Tirumala Shah Apartments, Yellareddyguda Road, Ameerpet 'X' Road, Hyderabad -500 073.E-mail : apredahyd@yahoo.com