FDI – Indian real estate

The central government’s decision to ease the Foreign Direct Investment (FDI) norms will certainly bring in much-needed capital in the cash-crunched domestic real estate sector, but according to experts, it will further fuel the soaring prices.

Property experts say the capital raised from FDI is not cheap. It comes with an interest rate of 20-25 per cent. “If developers take a loan to buy land at this rate, it is natural for them to increase the rate of the property to recover the cost. Earlier, the property market was driven by the end user. Now it is driven by investors,” opines property researcher Pankaj Kapoor, MD of Liases Foras. “FDI has been creating a vicious circle by spiking the property rates resulting in imbalance to the urban economy. While easing of FDI norms is good for investors, it does not solve the affordable housing problem. Rather, the government should ask banks to lend to developers at a cheaper interest rate and set stringent timelines for completion of projects,”  he added.

Gulam Zia, Executive Director of Knight Frank India Pvt Ltd, said the real estate sector is going through a bad phase from the last three consecutive festive seasons. As a result, fund raising has become the highest priority for developers. Although FDI will be a major source of capital infusion for them, this policy shift will not have a significant impact in the short run. “Without the consumers’ interest, no amount of changes in policy decision will have an impact on attracting the foreign investment into Indian real estate market,” he further added.

Conversely, Developers have a different point of view. Anand Gupta of the Builders Association of India feels that the easing of FDI will be very encouraging for the property sector. “There will be an easy cash inflow at a cheaper interest rate. Almost 70 per cent of the project cost goes in purchasing land in Mumbai. Once we are able to buy land at affordable rates, it will also cut down the property prices in the long run. It will, however, take at least a year to see the impact on ground,” said Gupta.

real estate developers in mumbai

We all know that Mumbai is the financial capital of the country and it is the city where most of the leading real estate developers have their head offices. According to recent survey Bengaluru based real estate firms are well impressed with the skills of those who are working in the Mumbai based real estate firms and due to that most of the Bengaluru based leading real estate developers are approaching to Sr. executives and consultants for the top position who are working for Mumbai based developers.

In last, one year more than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru. In the latest moves, Om Ahuja, CEO of residential services at Jones Lang LaSalle in Mumbai head office, joined Brigade group as the CEO of residential services in Bengaluru. However; 8 months before Ozone group hired the Srinivasan Gopalan on the position of CEO whereas; earlier he was the COO and CFO of Wadhwa group, a Mumbai based real estate firm. Bhavesh Kamdar was earlier with L&T Realty, but recently he joined Embassy group as the head of leasing department.

Om Ahuja, who recently joined Brigade group as the CEO of residential services stated that “In Bengaluru the prospect of joining new company and getting more exposure in real estate sector is much more and due to that I joined Brigade group, which has very good track record in building the best quality integrated townships. Apart from that Brigade group has been recently rated as the great place to work and due to these mentioned reasons I decided to move to Bengaluru and it was easy for me even after spending 20 years in Mumbai.”

Why real estate market of Bengaluru is attracting real estate professional?

In present, Bengaluru is witnessing huge growth in terms of property development as well as price of real estate market and due to that in past eight months of duration the city has witness the sales of more than nine million square feet in commercial space. These days Mumbai based real estate developers are focusing on the luxury residential and commercial development, whereas; in Bengaluru there is demand for office space and city has fuelled the demand for homes buyers as well. However; the city has accounted more than 49 per cent office space absorption in 2014.

According to the reports of Colliers International, Bengaluru has absorbed 13.77 million sq ft of office space in 2014. The Gopalan added that Bengaluru based real estate developers are transparent, professionals and they willing to share project ownership with other private equity firms. In Mumbai, CFO’s of the organizations run the whole show, but in Bengaluru it is the CEO who is responsible to call the shots with the focused operation.

Professionals are running Bengaluru based real estate developers and due to that they are interested in hiring the professionals on frontline. As per the real estate experts, the houses in Bengaluru are listed with the respected names such as; Prestige, Brigade, Puravankara and Sobha as well as some of the unlisted real estate developers such as; Embassy group, RMZ and more. Apart from all these as per the real estate experts companies in Bengaluru are offering better career and growth.

gold vs property vs shares

Recently, in an interview with CNBC-TV18, Manishi Raychaudhuri of BNP Paribas stated that recent weakness in the prices of property and gold can be the main reason why domestic investors are flocking towards the stock market and it could be bounty for equity investors in the long term.

In present, it’s difficult to make any prediction because market is still uncertain. These days Indian public sector banks like Bank of Baroda and other banks are recording little small increase in non-performing loans (NPLs). Now in India market seems to be volatile as China and government is expecting to act as the backstop for their equities. According to experts, for short term India will continue to outperform because these days investors are appreciating as still it is one of the best markets with a good options and choice of stocks. As an investor we all like to invest in private sector banks because they are able to raise their capital and asset quality, which is very much alive. However; retail clients love to deal exclusively with institutional clients, but if you will analyze the performance of gold and property, so you will understand that they are used to occupy the lion’s share in the asset allocation when it comes to middle class. It means in the developing country like India most of the people are investing their more than half of the saving in real estate and gold. Apart from that now people also prefer to invest in the alternative asset classes and it seems to be pretty relative attractiveness of equities and unattractiveness of the alternative asset classes.

The saving rate of India is 30 to 40 per cent and it is a USD 2 trillion economies out of half comes from financial assets which is about USD 350 billion and if 10 per cent will go to the equities, so it will become the 30 to 40 billion per year. And it will be larger than the FII inflow in country, which India has received ever. These days financial experts are targeting a Sensex on 30,300 by the end of this calendar year and it will approximately 8 to 10 per cent from the present level. However; the appreciation of US dollar would obviously be another tailwind for this sector. There are few commodities such as; oil and gas or energy, and they all are refining the margins. With the performance of NIFTY at last Friday its clear that it was surprising as the entire rise are for short volume as well as momentum support. Nifty is closing in decisive manner and for August month we can expect certainly positive response.

Real estate developers continue to restrict the launch of latest residential project.

Real estate developers in all over the country including top six cities such as; Chennai, Hyderabad, Mumbai, NCR,, Pune and Bengaluru are continue to restrict the launch of latest residential project because of oversupply and much more inventory from last 8 quarters, as per the statement of Samantak Das, who is the Chief Economist as well as Director research of Knight Frank India, which is property advisory firm. Most of the launches are from the January to March 2015 quarter however; in the same period last year the sales volume was remain same. According to the Index of Real Estate Sentiment for the duration of January to March in 2015, the new launches record the marginal improves in last six months.

The same report suggested that the majority of the real estate developers and financial institutions foresee the prices remain in the coming six months. Real estate stakeholders were bullish for the residential sales before the general election in the year 2014. The real estate sentiments have dropped in last one year and so the sales volume as well. Only about 15 per cent of the respondents are expecting the residential sales will get the better move in upcoming months. It is expected that the increase in prices will reduced to less than half in the third quarter of 214.  In present only 33 per cent respondents believe that the property prices will increase the coming months.

It is expected that soon real estate market will witness the fresh supply as we have seen in 2014 and the same trend will continue in 2015.Whereas; there will be drop in the transaction volumes in the first quarter of 2105 and it was approx. 15 per cent drop in the absorption of office and commercial spaces, in short we can say that it was due to the lack of quality supply of office space supply however; some big ticket transactions are still pending. With the reports its clear that real estate market will see the fresh supply in coming years and the majority of the supply will be by stakeholders who had inventories. They have also expressed their positive look towards the rental appreciation for the duration of next six months.

The real fact is that its looks like that economy is revving up with REITs as it has led 68 per cent of the respondents to believe that the latest supply in the office and commercial supply will witness the uptake in the upcoming months. The real estate sentiments in reference to the office space and rental appreciation are the highest price from last six quarters. With significant it’s clear that 85 per cent of the respondents want the rentals to see them as increase going forward.

The stakeholders from all over the country are continue to be optimistic about the future of real estate market in the country as west and north zones are experiencing the dip in the real estate sentiment levels during the first quarter of 2015 compared to the last quarter, whereas; the east and south zones are expecting the revival in real estate sentiment.

Home sales are down by 8 per cent

As per the latest reports of firm Liases Foras, the sales of Home are down by 8 per cent in top six cities of the country over the year-ago quarter, but India rose 2 per cent sequentially in the last quarter.

After the recent reports it’s clear that year-on year basis the sales of home are fell by 37 per cent in the NCR region while the sales of home was up by 8 per cent in the Mumbai. Whereas; Hyderabad was emerged as the best performing real estate market with more than 46 per cent year-on–year jump in the sales of home and it was followed by the Pune where sales was up by 22 per cent, in Bengaluru the home sales was increased by more than 5 per cent and in Chennai the home sales was up by 40 per cent.

In the report of quarter-on-quarter basis it is recorded that the sales in Chennai and Mumbai were up by 24 per cent and 25 per cent respectively and the sales was up by 31 per cent in Bengaluru whereas; the sales were down by 27 per cent in NCR region. The price of properties in Hyderabad, the Mumbai Metropolitan Area, NCR, Pune, Bengaluru and Chennai remained stable in the last two years on the year-on-year and quarter-on-quarter basis.

After analyzing the latest property trends it’s clear that unsold housing inventory level is so much up in the top six cities and it’s of about 853.09 million sq ft or about 650,000 apartments between the period of January to March quarter however; in the previous quarter it was about 832.09 million sq ft. Among all the real estate market, NCR had the highest unsold inventory with the 321.68 million sq ft area and it is expected it will take more than 71 months to sell these unsold inventories. However; Mumbai Metropolitan Region has the 192.27 million sq. ft as the inventory which will take about 46 months to be sold these spaces. And Bengaluru is among the best performing real estate market among the larger ones which have more than 152.43 million sq ft area and it is expected that it will take more than 27 months to sell them.

As per the reports of Liases Foras, the new supply in the current quarter rose about 21 per cent over the previous quarter which was about 36 per cent because the new supply came in the range of Rs 50 lakh to Rs 1 crore followed by 29 per cent in the range Rs 25 lakh to Rs 50 lakh. Reports stated that the units of two bedrooms constituted 36 per cent in the new supply which was followed by three bedroom units at 35 per cent. MMR and Bengaluru have 28 per cent and 31 per cent of the new supply respectively.

New Real Estate Regulatory Bill have reasons to enjoy end users and investors

Now with new Real Estate Regulatory Bill, which is supposed to approve in current meetings by the Union Cabinet, end users and investors have several reasons to enjoy and feel confident about property investment matters, when it comes to concern on change in project layout and delay in delivery layout among others. Real estate developers are also expected to cash the benefit with this well improved accountability and transparency as it will help them to flow the institutional funds into real estate sector.

It is expected that the number of issues between real estate developers and home buyers because of delay in project will come down as this Real Estate Regulatory Bill making it mandatory for all the real estate builders to maintain more than 50 per cent of customer advances in an account which will be known as escrow account within the 15 days of time, once they will receive the money from home buyers. However some of the real estate experts are viewing the minimum balance to maintain the proper balance in an escrow account to reduce by 50 per cent.

As per the statement Chairman & Country Head of JLL India ; Anuj Puri, “The 50 per cent mandate will be able to put the enough restriction on real estate developers to divert different funds to ensure the better completion records, whereas; the funds diversion is not only reason for delay in any real estate project completion and apart from that Real Estate Regulatory Bill need to cover the civic authorities and government bodies too. Puri more added that, this new amended Bill will have very positive affect for introducing the better governance, timely management and transparency, but non-inclusion of government authorities are the major contributors to slow down the approval processes, however they remain issue need to be addressed.
All consumers need to remember that the entire regulator will take at-least one year to turn it into reality. On Wednesday, the Union Cabinet had clear the bill, and it will become an Act once it will get tabled and approved in the current season of Parliament. For more transparency and better governance, state need to set-up the regulatory bodies with new bill while setting up a web-based online registration facility for the period of one year to set-up the governing bodies. Real estate developers are agree with current bill as it is introduced to help the transparency and better governance in real estate sector.

After that regulator will provide a log-in ID for every project, without which builder will not be able to sale the flats of apartments in the project. However the regulator should have to scrutinize all the legal documents for project, so that it can cancel the registration if they will find that project documents are not in the proper order.

Better transparency, government policy and accountability will provide the fair opportunity to home buyers and developers both and it will also help the real estate developers to gain the access to collect the funds however it will also help to lower down the property prices till certain extent. As per the statement of Shishir Baijal who is CMD of Knight Frank India, it is expected that it will enhance the credibility in real estate sector and developers as most of the developers will be in situation to borrow funds at better interest rate, which will help them to rationalize property prices in coming months.

The penal of provisions has proposed law, which will add the payment of 10 per cent of project cost for non-registration as well as payment of additional 10 per cent of project cost which will be complied for the duration of three to four years. If the disclosure of information will be wrong or it will not in the complying with the disclosures and other essential requirements and payment of 5 per cent of project cost will be imposed. The Real Estate Regulatory Bill provides the regulatory authorities to come in power so that they can cancel the project registration in certain cases of persistent violations and they will also have a power to decide on further course of action in reference to the completion of all real estate projects.

Property prices are about to increase

According to recent reports and analysis of real estate experts, it’s clear that property prices in Kharar is about to increase because recently district administration has decided to hike collector rates.

It is clear that all the societies, colonies and villages which will come under the authority of municipal council of Kharar will witness the price rise soon. According to new collector rates, which are increased by district administration, if you were paying Rs 7, 000 for one square yard, so after new collector rate you need to pay the amount of Rs. 7, 500 for one square yard which is Rs. 500 more. However the empty land has noticed almost double hike as previous rate per acre in the village name Aojla was Rs 44 lakh but now you have to pay Rs 80 lakh for the same area on same location. However the land in the same location or same village which is besides the river will not priced on Rs. 30 laks instead of the earlier price of Rs. 15 lakh. All the residential plots are now at Rs 1.48 lakh per marla instead of Rs 1.32 lakh per marla.

What is Collector rate?

When it comes to what is Collector rate? So in simple words we can say that it is basically floor price which is based on certain factors such as; registration of the property and more. As per the anonymous sources which was from Kharar MC, informed that last week collector rates for Mohali town has also increased however; the decision to increase the floor price or collector rate had been sent to state government for approval. It is well known thing that increased collector rates in urban areas will directly affect the real estate market in few areas; such as; Derabassi, Zirakpur, Kurali, Kharar, Lalru and Mohali as in these area a lot of construction work is underway.

As per the official statement, it is normal procedure as amount of the collector rate increased every year as per circumstances and it also depends on the mean average value of property registration of last year. As per the JP Singh, who is one of the property expert and president of Market Association of Mohali, stated that Now it will be difficult situation for buyers to find property in affordable price and it will be also difficult to find buyers for property due to high rise in property prices in past couple of years.

So there are chances that residents or property wishers will postpone their decision to invest in property market, as it clear that official decisions are again going to affect real estate market in Kharar and Mohali region.

Realty market Mumbai

Now Mumbai is seeking to amend its more than 24 year old building rules which will allow slums to mushroom and it will keep housing beyond the reach of most of more than 19 million residents. As we all know the fact that world’s second-most densely populated mega city is the part of the prime minister’s “Housing for All” programme in which more than 20 million new homes will be available in all over India by the end of 2022 to help eliminate urban slums and squalor.

According to theory of experts, in real estate market the supply of apartments should increase with cut or discount in property prices to help India’s financial capital emulate wealthy peers including New York and Shanghai. This island-city has little available land for development and it is promising challenge to its floor space index (FSI) regulations that may permit developers to tear down old structures and build skyscrapers. It could be good news for some real estate developers such as; Sunteck Realty, Godrej Properties, Peninsula Land and Oberoi Realty as per the reports of Edelweiss Financial Services.

As per the statement of Vyomesh M. Shah, Managing Director of Hubtown, which is Mumbai based developer house, it is the only way to solve the perennial housing shortage in this city, where most of the people are living in pigeonhole-size apartments. Recently, the Municipal Corporation of Greater Mumbai has proposed to increase the FSI, to range between 2 and 8, compared with an earlier cap of 1.33. FSI determines the maximum floor area allowed in a building relative to the land on which it is erected. In 1964, when first time it was introduced than it was set on the cap of 4.5, which means on a one acre (0.4 hectare) plot of land, which is little smaller than a football field, living space totaling only 196,000 square feet could be built. However in 1991, policy makers make it low as 1.33 times, which was a move contrary to what most cities with limited land have tended to do for raising the permitted FSI to accommodate demand of real estate, as in Singapore, HongKong, Manhattan and some Chinese cities.

The proposed change will allow for variable building heights depending on consumption patterns, location and logistics. In past FSI was acting as the tool to limit the congestion in Mumbai, but under the new plan it is designed primarily to be a tool to manage physical development of Mumbai by laying out uniform rules, so that each and every location in Mumbai can provide good connectivity with other parts, said Aashiesh Agarwaal, an analyst at Edelweiss Securities. The more he added that now we are seek to address key lacunae impacting Mumbai’s real estate sector.

Real estate developers are stepping in right direction and its positive sign with strong governance, brand and execution capabilities. Most of the proposals are available for public comments after which final regulations will be released, which could be as late as end-2015. The S&P BSE India Realty Index has noticed the growth of 15 per cent in 2015 whereas; compared with the benchmark S&P BSE Sensex its 7.6 per cent gain. However; the Oberoi Reality which is country’s second-largest real estate developer by value climbed 13 per cent in the period while Godrej Properties added 16 per cent.

Property prices in Mumbai

According to few reports, property prices will remain high in certain market conditions, but they will not increase any more. The value of under construction property which is unsold in real estate inventory in Mumbai can be anything as its R 53,400 crore for a clutch of listed firms and it presents that consumer confidence isn’t exactly soaring. What can be worse with an additional R36,800 crore of launches in the area of 20.4 million sq ft, which is more than half of south central part of the city and it can put the prices of real estate industry under pressure.

According to Niranjan Hiranandani, co-founder of Hiranandani Developers, in real estate market pricing strategy is now crucial since only relatively affordable projects are able to find takers whereas; high end properties in the central and southern parts of the city aren’t seeing any specific interest. Ghulam Zia Executive Director of  Knight Frank India, stated that first-time home buyers continued to sit on the fence however in recent budget there are no incentives for home buyers the market will get revitalized only once the RBI (Reserve Bank of India) begins to cut interest rates.

Analysis of Kotak Institutional Equities (KIE):

According to analysis of Kotak Institutional Equities (KIE) the numbers are clearly indicating that says land buying has dropped and prices are not going so up as only there are four or five developers have the capacity to buy land worth more than $200 million. The analysis showed that Oberoi Realty, Peninsula Land, Sunteck Realty, Godrej Properties, HDIL, DB Realty and Indiabulls real estate are among those property developers who are sitting on high inventories and major part of those inventories belongs from Lower Parel, Worli, south and central pockets of Mumbai and Prabhadevi.

Ambar Maheshwari, CEO of Indiabulls Group also believes that there is a glut at the premium and high ends of the real estate market. The more he added that a recovery is unlikely in areas like Lower Parel and Prabhadevi unless developers build smaller apartments that result in some kind of rationalization in prices. In present Oberoi Realty is targeting on the sales of unsold inventory and they are expecting to sale it in next 12 months, but KIE expects the company will only be able to sell R8,500 crore worth of residences in the next 30 months. As per the data issued by the Director General of Mumbai, in the first 11 months of 2014, property registrations fell 2.4 per cent.

As per few reports developers are planning to offer discount after definitive interest from buyers and channel checks suggest that large number of units are being sold in the 20:80 schemes which will be without a bank debt burden to and trip abroad for designing apartments however discounts are becoming more evident as real estate developers are also offering absolute discounts to investors and as well as end buyers now. These measures are clearly failing to impress and attract new buyers. In certain real estate market, in certain markets developers are selling 20-30 units in a month while in others they could be selling in 2 to 6 a month. Amit Bhagat, who is CEO & MD, ASK Property, stated that the demand was tepid in the luxury space so any developer who was leveraged might be under pressure.

Real estate investment

In present location issue is keeping the buyers away; but better ROI, an incentive, benefits of tax breaks are still attracting the investors as well as end users towards the real estate market. In India, affordable segment are finding buyers but most are investors not those who are planning to stay in those homes because of the location issue as the home is located too far away from offices and have little support infrastructure, analysts and trade experts said. Peoples are making the attempt to invest in real estate sector because government have increase the accessibility of housing through tax breaks and other incentives or benefits, which are therefore going towards those more interested in turning a profit.

Almost 50 per cent of the total housing stock of 293 million sq. ft sold in the last fiscal year, which was ended on March 2014 and the prices of those property was less than Rs.50 lakh, as per the data of real estate research firm Liases Foras. Flats which cost Rs.25-50 lakh accounted for 37 per cent of the total housing stock sold in the same period, while those below Rs.25 lakh had a 13 per cent share. Mumbai is the city which known for its high property prices as well as ROI, accounted for 13 per cent of the sale of houses priced below Rs.25 lakh and 28 per cent of houses in the Rs.25-50 lakh range. According to Pankaj Kapoor, The Managing Director of Liases Foras, “Most new launches in the last three quarters are in the affordable category”. The more he added that the rise in sales in part to state government regulations which have been favorable for both real estate developers and buyers in the relatively more affordable segment.

In December 2014, the Apex Bank (Reserve Bank of India) allowed real estate developers and housing finance companies to raise up-to $1 billion through external commercial borrowings to promote housing projects, which also referred to as low-cost because they are cheaper than more upscale properties. The budget of 2013, proposed a Rs.2.5 lakh deduction on the total taxable income on home loans of less than Rs.25 lakh, applicable to loans from banks and non-banking financial companies (NBFCs). Such housing projects are profitable business for real estate developers as in Mumbai, they provides an internal rate of return (IRR) of 45 per cent with gross margin of 24 per cent. According to report of Monitor Deloitte in 2010, a consulting firm, “Most of the flats are being bought by investors rather than genuine low-income end-users despite the low prices and interest rates, since these flats are being built in far-flung places with poor connectivity and social infrastructure, real estate and analysts”.

For example, If person buys such a home in Karjat, which is one of the last stops on Mumbai’s suburban Central line,  will have to travel about 85 km if his/her office is in the central business district of Nariman Point. That’s about two hours by train each way. According to Kapoor, “Trans Harbour Link have easy connectivity between the the mainland and the island city and provided a much-needed boost for affordable housing”. The Trans Harbour Link have 22 km road across the sea which will connect the island city and Navi Mumbai. It is expected that, Trans Harbour Link will be operational by 2018-19. Now investors are looking to it as excellent opportunity as it has connectivity and support of infrastructure. According to Om Ahuja, the chief executive, “Most projects are not affordable in terms of living and these projects are bought by investors who park their money. If it is a wrong product, their investment gets stuck”.

According to Brotin Banerjee, MD and CEO of  Tata Housing, “Tata Housing sells these homes under two different national banners; Shubh Griha (Rs.4-13 lakh) and New Haven (Rs.25-40 lakh). It plans to launch more affordable projects across different consumer segments in Mumbai, Bangalore, Gurgaon, Bhubaneswar and Kolkata.” VBHC (Value and Budget Housing Corp.), has many affordable housing projects, which are in Delhi, Chennai, Mumbai and two in Bangalore. It’s planning to launch one more in Delhi and Mumbai in the next few months, according to Vivin Mathew, chief executive, western region. On March 2014, GPL (Mumbai-based Godrej Properties Ltd), the realty arm of the Godrej group, launched an affordable housing scheme at its Godrej Garden City township project in Ahmedabad. In real estate market some of the real estate developers are using finance and marketing techniques to attract genuine home buyers or investors in the Rs.6-25 lakh range.

Poddar Developers Ltd, a Mumbai based real estate developer has 25 per cent of the apartments in one of its project to families availing loans from NBFCs such as Gruh Finance Ltd, Mahindra and Mahindra Financial Services Ltd and Muthoot Fincorp Ltd. NBFCs offer rates that are slightly higher than that of commercial banks, but have an easier documentation process, making it a better option for low-income borrowers. According to Rohit Poddar, MD of Poddar Developers Ltd., “We don’t sell more than one flat to a single buyer. We have a 75:25 mix of actual home buyers and investors”. In last two years, Poddar Developers has sold more than 2,500 apartments in Badlapur in Thane district and Karjat in Raigad district, in the range of Rs.3.5-12 lakh each. Recently they have launched the similar project at Atgaon in Thane and is planning 40,000 sq. ft of land by the end of this financial year.

According to Rashmi Housing Pvt. Ltd, “It’s also giving a loan to home buyers without interest to drum up interest in homes that cost below Rs.25 lakh. According to Yogesh Bosmiya, Director of Rashmi Housing, “Around 30 per cent of our home buyers or invetors they are availing this loan facility and we are mostly getting the end users”. Rashmi Housing Pvt. Ltd, said that they has sold more than 3,000 units in the Mira-Bhayander area of  Thane district since 1999 and is developing another 4,000 units in the same area. Bosmiya said the profit margin is 20-25 per cent. Whereas; some of the real estate developers are constructing the hospitals and schools to improve the existing public schools, to create social infrastructure in a bid to attract families.