FRIDAY, MAY 23, 200802 F Estate

SUPRIYA UNNI

HIS FIRST remuneration was Rs 3,750way back in 1975 when he was a supervi-sor, but P Shyama Raju has come a long

way since then. As chairman and managingdirector of the Rs 4,000-crore group, DivyaSreeDevelopers Pvt Ltd, in Bangalore, he says hismotto for work hasn't changed since then."Always ensure quality, that is the key, " he says.

He began his career as a contractor withShyama Raju and Company. A chance meetingwith some high officials in the local corporationgave Shyama Raju the chance to convince themof a strategy to speed up pending projects.DivyaSree Chambers, his first project and nowhis headquarters, was his first joint venture proj-ect with the Bangalore City Corporation (BCC)in 1994.

Because his first "clients" demanded com-mercial spaces, Shyama Raju was drawn towardscommercial development. "Commercial devel-opment was also easier," says Shyama Raju. "Wehad to set up quality office spaces. Residentialspaces require a lot more planning."

Over the last 9 years, they have developedover 3.5mi sq ft of office buildings in Bangaloreand Hyderabad. The company had earlierundertaken civic infrastructure and communityprojects, IT Parks, BPO facilities and facilitymanagement services.

The company has forayed recently into resi-dential spaces. Elan was one of their first proj-ects in this segment, set up four years ago. Rs1,000 crore has been invested in a proposed

150- acre township in Chennai in a joint venturewith private equity investors, which should be inplace by Q1 09.

Also, a Rs 500-crore 16-acre housing projecthas been earmarked for Sarjapur in Bangalore.As part of the company's commercial focus,DivyaSree has four SEZ projects on the anvil.

Talks are also on to set up retail malls andventure into the hospitality sector.

"Now, we have a mixed bag," says ShyamaRaju.

The group is also focussing on achieving apan-India presence. Apart from Delhi andKolkata, the company is looking at having a pres-ence in TierI cities as well.

"Our vision is to go as far as possible, focusingon offering comfort, whether it’s office space orresidential, without compromising on quality, "says Shyama Raju.

Shyama Raju has roped in his family mem-bers to take his vision forward. His son, daugh-ter and son-in-law are actively engaged in thebusiness, while Shyama Raju is focusing moreon the educational ventures they have set up forthe needy.

Shyama Raju says he is not worried about fearsof a market correction. "Rates are getting correct-ed and that is only expected as a part of thedemand supply chain. A well established develop-er will not sell at reduced rates," he says. ❚❚

supriyaunni@mydigitalfc.com

ENSURE QUALITY,that is the key

VIVEK SINHA

EVEN AS the realty sector wit-nesses price corrections, therental figures for residential

apartments in the national capitalregion (NCR) are steadily rising.In fact, rental rates have shot upnot only in the upmarket localeslike Aurangzeb Road or GreaterKailash but also in the relativelycheaper areas like RajenderNagar, Hudson lines andMunirka.

The average rise in rental ratesfor the NCR region has been inthe range of 15-20 per cent fromthe last year. Consider this. If youwere to rent an apartment of 2000to 3000 sq ft in the upmarketlocales of Central Delhi like thePrithviraj Road or the AurangzebRoad, you would have to pay amonthly rental of Rs 3,25,000 permonth. This is a good 37 per centincrease from the rentals paid ayear ago. Rental rates for suchduplex apartments in south Delhiareas like Anand Niketan andVasant Vihar command a rental of3,75,000 per month, an increaseof 11 per cent from the figuresquoted last year.

Even satellite towns of Delhilike the Noida and Gurgaon havebeen feeling an upward pressureon the rental rates. While rentalfor apartments have shot by 10per cent and 22 per cent forNoida and Gurgaon respectivelyin the last six months, the rentalsfor an independent house inGurgaon command a monthlyrate of Rs 2,25,000, a rise of 32

per cent. A three bedroom apart-ment in Hudson Lines near theDelhi University's north campuswould come at a monthly rentalof Rs 35,000 a hike of around 30 per cent over a period of one year.

But why are the rentals shoot-

ing through the roof in NCR?Interestingly, rental rates have, inthe recent past, become closelyassociated with the capital rates.Real estate, of late, had becomethe hot bed of investor interestleading to intense speculation,resulting in exorbitant price rise.

The situation had reached to lev-els where properties were witness-ing price hike within a time spanof 3-4 months. However, the neg-ative fallout of this speculativeactivity was that end users keptaway from the market as proper-ties became increasingly out of

their budget. These end-usershave preferred to rent out housesinstead of buying them out.

"As the capital values of ahouse have risen beyond the pay-ing capacity of an end user, he haspostponed the decision to buy andis instead renting a house," saysAjay Rathore, country head of realestate brokerage firm Century 21.Jayant Varma, former executivedirector at the Knight Frank(India) agrees. "The capital rateshad reached such proportionsthat even with the present slowdown and price corrections, itis still considered to be costly," he says.

Moreover, the plethora ofemployment and educationalopportunities available in theNCR ensures a steady influx ofpeople from all parts of the coun-try to Delhi. "The relatively betterquality of lifestyle offered by theNCR makes a majority of individ-uals from the hinterlands to stayback," says Navin Raheja manag-ing director of the RahejaDevelopers. For instance a majorchunk of renters are the studentswho come to Delhi to pursue theiracademic dreams. These includestudents of the Delhi University,JNU or the numerous education-al institutions and the coachingcentres.

"People need a place to live andwith the capital rates beyond thereach of a majority, they are post-poning their plans of buying ahouse and are instead living onrent," explains Varma. ❚❚

viveksinha@mydigitalfc.com

PPrroojjeecctt ssttaarrtt ddaattee:: MMaarrcchh 22000077PPrroojjeecctt eenndd ddaattee:: MMaayy 22000099CCoosstt :: RRss 33 ccrroorree –– RRss 44 ccrroorree

Features ■ Swimming pool in each apartment/

can be altered with fountain (choiceprovided), Jacuzzi, steam and spa ineach apartment, 100 per cent genera-tor back-up.

■ Italian marble throughout the apart-ment, master bedroom toilet withJacuzzi and spa, vanity type washbasin, concealed wiring, finolex orequivalent make, fully automatedapartments, high security systems and alarms

■ All apartments at Marvel Merlot comepre-fitted with home automation. AJacuzzi and a steam room are stan-dard accessories in every apartment as are security systems that keepstrangers and prying eyes where theyshould be - out.

■ POP finish to walls■ Landscaping on terraces■ Generator bac-kup for all rooms■ Teak wood doors

■ Wooden flooring for bedrooms■ Jacuzzi and steam room in each flat■ Solar heaters■ 4 bedrooms and servant quarter■ State-of-the-art apartment, management

systems and latest VRV air-conditioningsystems

■ Keyless entry■ Uniquely designed elevations provid-

ing an aura of luxury and exclusivity■ Smart card access systems

— Compiled by Shilpa Shreeshilpashree@mydigitalfc.com

This week we take a look atpenthouses and 4-bedroom apartments byMarvel Merlot,Pune, by the Mula-Mutha river

"OUR vision is to go as faras possible focusing onoffering comfort, whetherit’s office space or residen-tial, without compromisingon quality"

P Shyama RajuChairman & managing director

DivyaSree Developers (P) Ltd

SHOWCASE

PRIME PENTHOUSES

Average % change District rental values from 1 year

(INR/month) ago (in INR)

Prithviraj Road, Aurangzeb Road 600000 9%Chanakyapuri 600000 15%Golf Links, Jor Bagh & Sunder Nagar 662500 -2%Shanti Niketan, Westend 512500 5%Vasant Vihar, Anand Niketan 500000 17%Panchsheel, Anand Lok, Niti Bagh, SDA 325000 10%Friends Colony, Maharani Bagh 275000 22%Greater Kailash I & II, South Extension, 212500 6%Hauz Khas, New Friends ColonyFarm Houses** 500000 8%Gurgaon 225000 70%

Independentresidentialhouse rentals

*4 Bedroom house of high quality construction plot size ranging from 500-1200 sq. yards.**4 Bedroom farmhouse of high quality construction on a 2.5 acre Farm

Average % change District rental values from 1 year

(INR/month) ago (in INR)

Prithviraj Road, Aurangzeb Road 325000 37%Chanakyapuri 387500 15%Golf Links, Jor Bagh & Sunder Nagar 387500 6%Shanti Niketan, Westend 412500 12%Vasant Vihar, Anand Niketan 375000 11%Panchsheel, Anand Lok, Niti Bagh, SDA 237500 12%Friends Colony, Maharani Bagh 200000 31%Greater Kailash I&II, South Extension, 145000 21%Hauz Khas, New Friends ColonyGurgaon 167500 34%Noida 52500 NA

Apartmentresidentialrentals

**2,000-3000 sq. ft. apartments of high quality constructionSource: Cushman & Wakefield Research

NCR home rentals climb

The negative falloutof this speculative activity was that endusers kept away from the market asproperties became increasingly out oftheir budget. These end-users have preferred to renthouses instead ofbuying them

REALTOR'S SPACE