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area watch: pinjore kalka urban complex Back in the reckoning The much-hyped but long-delayed strategically located Pinjore-Kalka Urban Complex in sylvan environs along the Zirakpur-Shimla highway, is back in the reckoning after many twists and turns over the past few years.
tax tips
Policy thrust for affordable housing
Ground Realty
guest column
Ready-to-move-in homes in demand
Indian billionaires among top buyers of London homes
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area watch: pinjore kalka urban complex
With the Haryana Urban Development Authority(HUDA), the real estate development arm of “builder-friendly” Hooda Government, recently coming out with a housing scheme offering about 900 residential plots of different dimensions in Sector 30 in the urban complex, the area is again abuzz with activity with developers and prospective buyers evincing keen interest despite recession in the realty marketin the area. Though a number or major and minor real estate players are also active in the urban complex, HUDA’s entry seems to have set the cat among the pigeons. Since HUDA’s credentials in developing basic infrastructure and amenities such as shopping centres, community centres, fire stations, mini markets, electricity, sewerage and water supply systems and religious structures, is impeccable, the end users and the investors prefer to the invest in the area now. “All decks have been cleared for the development of the basic infrastructure in the area after the launch of HUDA housing scheme,” says Hitesh Sharma, Panchkula’s District Town Planner. Till now, the private players, who had come out with the state-of-the-art amenities in their own residential complexes, had not been able to develop much of the basic infrastructure which is basically considered to be the responsibility of the state government. The entry of HUDA will fill that gap. Though an ambitious and much-hyped project Pinjore-Kalka Urban Complex project that attracted big players like DLF and Ireo has also had its share of scare for investors and uncertainities ever since its launch a few years ago. HUDA was the first to announce its intention to develop the area as an urban complex about six years ago. However, the project ran into rough weather with the Union Ministry of Environment and Forests raising objections. The project has remained largely unexploited due to legal and demographic reasons, in spite of vast options for the investors and end users to own a dream house in picturesque surroundings. In 2012 the clouds of uncertainty hovered over this urban complex after a stay was granted on the construction activity following the issues over the legality of land acquisition for the project. Many feared at that time that the area would go the Noida Extension way. As the investors and the builders became jittery following the stay. However, the stay was later vacated paving the way for the resumption of construction activity. The construction and development work in the projects of DLF and Ireo is progressing fast. A purview of the upcoming and ongoing projects reveals that there is something to suit every pocket here with options including freehold residential plots, group housing flats, low rise apartments, villas, commercial space etc. While prices are on a higher side in DLF and Ireo’s integrated township projects, the emphasis in both the projects is on offering a complete package comprising residential, commercial and recreational facilities, including clubhouses, schools and hospitals etc to buyers from different parts of the region. Mumbai-based realty major Rahejas Group, too, is in the process of launching a project here. Another realty group — Evershine — has been given a licence to develop a commercial complex. The entry of big realtors in the complex, basically developed to decongest Panchkula, which is bursting at seams, promises to make the housing affordable for the middle class. In fact, the skyrocketing realty prices in the tricity comprising Chandigarh, Panchkula and Mohali promises to make the area the next destination for the employees of the public and private sectors besides the businessmen. Startegic location seems to be the major USP of the area for the investors and the end users. It proximity to Panchkula and good road connectivity make it an ideal choice for the end user and investors wanting a residential or commercial property in tricity’s periphery. “Besides, proximity to Baddi — a hub of over 3,000 industries — makes the area a sought-after option for the industrial workforce,” says Tara Singh, a real estate consultant. This coupled with the completion of the four-laning project of Zirakpur-Parawanoo highway and Pinjore bypass would ease traffic flow on the NH-22. As currently the area is not densely-populated, the low-rise group housing accommodation will attract the middle and lower middle class hoping to have a home in the region.
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tax tips My queries are as under: A.The legal ownership of the property can be transferred in favour of your mother by obtaining a succession certificate in her name. This would imply approaching a court of competent jurisdiction for the purpose. This would be a time consuming affair and visit of your sister from USA at this moment may not enable you to obtain a succession certificate during her stay in India. In the given circumstances it would be appropriate to approach the Municipal Corporation for mutation of the property in the name of your mother. The Corporation would require Affidavits/Relinquishment Deed from other legal heirs for the purpose of mutating the property in the name of your mother. This should suffice for the time being as on the basis of such mutation the house tax and other levies (for example, electricity and water charges) can be levied in the name of your mother. The Relinquishment Deed by both of you may have to be registered with Sub-Registrar’s office subject, however, to the requirement of the Corporation. You may look up the relevant site of the Corporation in which Naraina Vihar is covered and I am sure you will be able to get the necessary details with regard to documents to be filed for the mutation of the property in favour of the legal heirs. The passport of your sister should be sufficient to prove her identity in case of registration of the Relinquishment Deed.
What is my cost of acquisition? Now, I have sold this residential plot for Rs 44, 00,000 on June 15, 2014. Kindly guide how to calculate my 'Cost of Acquisition' by using 'Cost Inflation Index'? I paid Rs 44,000 as brokerage to the property dealer (for which I have got no receipt), Should I include the brokerage expenses in my cost of acquisition? Kindly also help in calculating long-term capital gain and tax payable thereon? I have already got a house in my name. Am I still eligible for exemption under Section 54 if I construct a house within 3 years? If yes, up to which date I may utilise the proceeds for FD in a bank and then deposit the proceeds in a LTCG account in a bank? How much amount needs to be invested in Tax Saving Bonds (within six months from the date of sale) for availing full exemption from LTCG Tax? — vinod kapoor A.Your queries are replied hereunder:
Rs
5 lakh on 16.11.2007 Rs 4.45 lakh on 8.3.2008 Total Rs 9.45 lakh In order to save LTCG tax, I decided to buy a residential apartment from a reputed builder. The total cost of the new apartment was about ~60 lakh. It was to be paid in 16 installments. Though the first installment to the builder was paid on 26.11.2007, subsequent installments were paid at different intervals. The sale proceeds of my property are deemed to have been paid as under:- Rs
7 lakh on 26.11.2007 (first installment) Rs 5,25,579 on 20,3,2008 (third installment) Because of the recession, the project got delayed. This year, I will be paying the last installment and will also be taking possession. Let us presume that I get the possession on September 30, 2014. My queries are: A.Your queries are replied hereunder:
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Policy thrust for affordable housing
While maintaning that it intends to “ease the way for banks to raise long-term resources to finance their long-term loans to infrastructure as well as affordable housing”, RBI exempted long-term bonds from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of such projects. This norm also makes the affordable housing eligible for getting the loans under priority sector, through which the home buyers in the six metropolitan cities — Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad — will be eligible for loans up to
Rs 50 lakh for the house costing up to Rs 65 lakh, and for other cities individuals will be eligible for the loans up to
Rs 40 lakh for houses costing up to Rs 50 lakh. Currently, housing loans below
Rs 20 lakh have lower interest rates as they fall in priority sector lending. With this step, loans up to
Rs 50 lakh in 6 metropolitan cities (houses costing up to Rs 65 lakh) and Rs
40 lakh in other cities (housing costing up to Rs 50 lakh) are set to get cheaper. This will help the end user in availing the loans easily, and with the new norms in place more people will be able to get loans for housing. According to industry mavens this step will improve liquidity and reduce the cost of funds for the infrastructure segment. The cost of funds to infrastructure sector is expected to come down by 100-200 basis points as banks would no longer need to meet regulatory requirements of maintaining required cash reserve ratio (CRR), statutory reserve ratio (SLR) and priority sector lending (PSL) on funds raised for infrastructure and housing sector. Terming it to be positive move that would help stimulate demand for housing and make houses affordable to some extent Neeraj Bansal, KPMG’s Partner and Head of Real Estate and Construction said, “The inclusion of housing sector in this provision is a positive initiative by RBI and would help stimulate demand for housing in the country”. Realtors’ body CREDAI hailed the move saying this will lead to cheaper credit for such projects. “It is a welcome step. This will lead to lower interest rates for affordable housing projects,” CREDAI Chairman Lalit Jain said. Another realtors’ body NAREDCO Chairman Navin Rajeja said this would help developers to mobilise cheaper finance for the development of affordable housing and will result into cutting in prices of housing in long term. “As the banks need not set aside funds for CRR anymore with exemption in the SLR; the direct benefit will be reaped by the end-users”, said Dhirender Gaba, CMD, Fairwealth Housing Pvt Ltd . EMIs on home loans are also expected to come down by 8-10 per cent following this move. This along with the recent income tax incentives will be able to increase the annual savings of an individual up to approximately ~1 lakh. Terming the huge affordable housing segment as the growth driver of the real estate sector Anil Mithas, CMD, Unnati Fortune Group said, “ Easy financing norms will help many aspirants to realise their dream of owning a house. Moreover, allocation of
Rs 4000 cr to NHB to provide cheaper credit facilities for LIG and EWS will incentivise development of Affordable Housing Segment”. The move has been widely hailed by developers all over the country. “We are happy with the fact that RBI has redefined the definition of affordable housing projects and widened its ambit. RBI’s redefinition of affordable housing in metro to
Rs 65 lakh and non metro to Rs 50 lakh is good news. It should translate into higher affordability for the home buyer. This will further help buyers to invest in their lifetime dream of owning their own house”, said Vishal Gupta, Managing Director Ashiana Housing Ltd Getamber Anand, CMD, ATS Group, said, “This is indeed a very welcome measure as it will enable the home buyer to access cheaper home loan which in turn is a step in the right direction to provide housing for all by 2022. It would be even better if taking a lead from the RBI affordable housing per se will be given ‘infrastructure’ status.” Though the demand for grant of industry status to the sector is still pending but with the government’s focus on affordable housing to achieve its ‘housing for all by 2020’ goal and such policy thrusts, the realty sector will be able to shake off the effects of slowdown over the next few months.
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Ground Realty Wooden flooring specifications: The present trend is to choose wooden flooring in one or two rooms of the house. In most cases, the bedrooms and the drawing room are provided with wooden flooring. The wooden flooring is available either as engineered wood flooring or laminated wooden flooring. The engineered wooden flooring is very costly in comparison to the laminated wooden flooring. In residential units, laminated wooden flooring is provided. Therefore, specify wooden laminates for the flooring in such rooms where you want to provide wooden flooring. Laminate specifications: All wooden laminate floorings available in the market look similar. However, quality wise there is lot of difference. There are three grades of wooden laminate flooring. These are AC3, AC4 and AC5. Among these, AC5 grade laminates are the best and the strongest. However, these are costlier and suitable for commercial use where inflow of people is high. Though AC3 is termed as residential grade, prefer to specify AC4 grade laminates for your house. Some manufacturers have developed their own grades like AC3+, AC4+ and AC5+. Treat these as equivalent to AC3, AC4 and AC5 grades only and don’t pay more for these. Further, choose laminates that can be easily fitted, cleaned and replaced. Choose ones that are durable and moisture resistant too. Specify laminates that are scratch and stain resistant. Cupboard trends change: Don’t specify provision of any cupboards in the bedrooms. This trend has now changed. Specify provision of walk-in closets (WICs) adjacent to the bedrooms. The walk-in closets should have sufficient storage space to accommodate all your belongings. The moment you step into a walk-in closet, you should feel as if you are standing inside your wardrobe. And all your belongings should be neatly and systematically available to you to choose and wear. Further, there should be space available for you to squat to look into the lower shelves, to pick up things, to get dressed, to turn around and view yourself in the mirrors. Specify size of walk-in closets as not less than 6 feet by 6 feet. WIC provision: Specify the WICs to have a combination of shelves, cabinets and drawers. All these should be so planned to keep everything in view and within reach. Further, plan the provisions with respect to the user — whether a female or male or both as their personal belongings differ a lot. In addition to the normal clothes and footwear, space provision for handbags, bangle stands, internal pits for undergarments, tie racks, belt racks, makeup kits, winter suits and long coats should be made. The normal clothes’ storage should further be planned for hanging clothes and folded clothes. Specify hard wood or ply boards covered with laminates or mica or decorative teak ply as the material for shelves, cabinets and drawers. Make provision for waterproof polysheets at the back of shelves and cabinets as essential. Mirror magic: Provision of more mirrors in the house is preferred by the house builders these days. These have a dramatic effect on space enhancement in the house. While providing more mirrors in the house ensure that these are not located at odd places and help in enhancing the aesthetic look of the house. Provide these at some locations to act as compulsive stoppers for you, to help the family members in getting ready and to create light and shade effects where necessary. Quality quotient: Mirrors should be of good quality and corrosion free, distortion free, eco friendly and have an excellent clarity. The presence of copper in the silver coating on the glass sheet causes corrosion in a mirror. This corrosion occurs quickly in moist and humid conditions and causes black spots in the mirrors. The clarity of a mirror depends on the quality of the base glass sheet. Glass sheets having least concentration of iron in them are of best quality and produce extra clear mirrors. Distortion of image in a mirror is again linked to the quality of glass sheet used in producing it. The glass sheet should be free of impurities and inconsistencies to avoid distortion. Eco friendly mirrors are the ones using lead-free paint coatings on the back. Look for a reputed make that specifies that it has used lead-free paint in producing the mirrors. Stair styles: For the staircase, the latest trend is to use a combination of wood and stainless steel or a combination of stainless steel railing and glass. Black wrought iron railing with wooden handrail is another choice. Give first preference to the combination of wood and stainless steel pipes as such railing looks beautiful and most elegant if the wooden posts and handrails are designed aesthetically. Second choice may be to go in for vertical posts in stainless steel with toughened glass panels fixed to them. In this case, specify glass pieces that are easily removable and replaceable and having a thickness of 8 mm to 10mm. The railing posts can either be fixed on the treads or can be mounted on the side of the steps if full width of the steps is to be availed. Specify the railing posts to be chromium plated having full shine handrail of semi-circular or round shape. Spirals: House owners often find it necessary to provide a spiral-type staircase in case the plots are small sized and have common walls on both sides. Such spiral staircases are provided to have an independent approach to the first floor for the tenants or for the servant room. Ensure that provision of such a spiral staircase in the front of the house is not permitted as it will spoil the front elevation of the house. Specify provision of spiral staircase in the back courtyard only. If independent entry is to be given, tackle the problem at the initial planning stage itself and provide a side entry to the back. Specify the spiral staircase to be built in structural steel sections such as angles and steel pipes with a central round pillar to which the steps are securely welded. — This column is published fortnightly Railings that impress Perfect Profile
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guest column The importance of this in real estate cannot be overemphasised because project deadlines in India are often overshot due to multiple constraints. These include difficulties in securing a maze of approvals and procuring project funds. Funding problems abound in real estate since the sector lacks infrastructure status, making funding an onerous task that usually comes at high interest rates. In such situations, FDI is a more viable option as it ensures the benefit of professional supervision, which make certain project deliveries adhere to pre-set deadlines. Moreover, greater transparency in client dealings fosters a climate of trust, which is usually lacking in many cases. Hurdles in FDI inflow But considering the numerous riders that FDI entails, it is necessary that the government relaxes norms to facilitate faster FDI inflows. During the past few years, as India was beset with economic uncertainties and political instability, foreign investments were withheld, since investors awaited a more propitious investment climate before risking their funds. With political uncertainty no more an issue and economic issues being addressed on various fronts, the stock-markets have already begun booming with the inflow of FII (foreign institutional investors) funds. Policy and Tax Reforms Today, there are all-round hopes that the real estate sector too will witness better days. A measure of caution, though, should be sounded here. Unlike the stock-markets that can begin booming at short notice, the realty market is vastly different. Measures taken to address issues in realty today will only begin to bear fruit months or a year down the line. A series of steps first needs to be put in place before end-users and investors begin to loosen their purse strings. Hundred per cent FDI should be allowed in various realty segments without cumbersome conditions that deter such investments. It is time for the government to introduce reforms and other crucial policy decisions to galvanize the sector. Some of these measures include a serious relook and revamp of the Land Acquisition Act, a single-window clearance system that fast-tracks all approvals, transparency in norms, approval of the Real Estate Regulation Bill and establishment of a regulator and, finally, according infrastructure status to the industry, which will ensure a slew of benefits, including easier project funding and faster clearances. These steps apart, the government needs to work in tandem with the Reserve Bank of India to cap inflation, which has been persistent over the past few years despite all efforts to contain it. Interest rates also need to be reduced to make home loans attractive, thereby boosting home sales. A plethora of levies, including service tax, VAT and stamp duty, needs to be done away with. It is important that the government speedily push through GST (goods and services tax), which will replace multiple taxes that are an additional burden on already-overburdened flat buyers. While the National Capital Region, Mumbai and other areas already have some FDI-funded projects, the number of such projects will go up sizeably once the above investor and industry-friendly measures are undertaken. Hopefully, the Budget will unveil some of those answers.
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Ready-to-move-in homes in demand
As the things stand today, it will take the developers close to two and a half years to dispose of the housing stock at the current rate of absorption. Today, the buyer wants to play safe and secures his investment even at the cost of paying a hefty premium associated with ready-to-move properties. It is precisely because of this that there are few takers for newly-launched projects despite their high appreciation potential, while there is hardly any market for pre-launch offers. That ready-to-move-in properties are increasingly becoming the preferred choice of home buyers is clearly evident from the significant increase in the number of inquiries by potential home buyers and rise in listings on leading property websites. Several developers have reported about 30 percent more sale of their ready-to-occupy homes compared to sale of homes under construction. Also, there is no price escalation on account of the rising cost for the developer, as also due to an increase in the super area during construction. Buyers are saved from facing ambiguity about super area and carpet area and they know precisely what they get and what they pay. But in properties under construction, developers increase the number of floors, change the layout plan, raise super area or reduce the green area. The higher price paid for ready-to-move-in or close-to-possession projects can also well be offset by other benefits like various tax advantages. The bottom line is that for your immediate need, it makes sense to go for ready-to-move-in homes and these are best for end-users who are already burdened with home rent. But if one is looking for higher returns with an appetite for risk, properties under construction continue to be the best bet as it provides higher return on investment. — IANS
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Indian billionaires among top buyers of London homes Indian billionaires pumped in nearly 1 billion pounds into buying luxury homes in the heart of London over the past 18 months alone, becoming second only to Britain-based buyers, a new report has said.
These Indian mega-rich are expected to spend another £500 million on redevelopment in the next five years, said a report from UK luxury property agents Wetherell. According to the analysis, Indian ultra high net worth (UNHW) individuals are buying up superflats, estates and hotels in London against the backdrop of a faltering real estate market back home in India. This group of investors, second only to British-based buyers, spent almost £450 million purchasing 221 residences in prime central London in 2013, with the top three most popular locations being St Johns Wood, Belgravia and Mayfair. British buyers accounted for 30 per cent of property in Mayfair, while wealthy Indians have snapped up 25 per cent. Middle Eastern, continental European and Russian buyers all accounted for 13 per cent of purchases each in the exclusive London borough. According to Daily Telegraph estimates, around 3,000 ultra high net worth (UHNW) Indian families relocate to their homes in London in summers. Aside from private money, Indian developers are also entering the London market. The Lodha Group, one of India’s largest residential developer, had recently purchased the Canadian High Commission in Grosvenor Square for £ 306 million. — PTI
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Vaastu Wisdom
Q. We have some apprehensions about the positioning of septic tank and drains in our home. Kindly clarify about these according to Vaastu principles. — gurinder kaur A.Underground water storage and well : These should be located only in the north-east zone but off the diagonal connecting the north-east angle with the south-west angle. A fountain or a waterfall is also very beneficial to have in the north-east zone. Septic tank and soak pit: The best place for these is the western end to wards the northern side of the house. The second best location is the northern end on the western side of the house. There is absolutely no alternative slot for these items. Surface drains: The downward slope should be either to the north or to the east. Surface drains, which in these days are provided, at best, for storm or rain water only, have to follow the same direction. This is extremely important. Waste storage: Daily wastes from the kitchen should be kept covered in the south-west corner of the kitchen. Q.Where should pets be kept in house? A.A lot of pet lovers keep their pets inside their home with some even allowing these to sleep on their own beds. But according to Vaastu this should be avoided. A number of pet lovers will disagree with this advice but one should avoid keeping the pets in the living room or inside the house. A kennel outside the home and not touching any part of the building is suggested as a first option according to Vaastu. However, if the pets have to be kept within the home, then you can reserve space for them in the northwest and southeast rooms/kennels.
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Launch Pad
Mantri Developers Pvt. Ltd, recently launched Mantri Serene adjoining the Periya Eri, on the Pallavaram - Thoraipakkam Radial Road, Pallavaram, a small residential township located 4 kms from Chennai Airport. The project will consist of two phases. As of now phase I has been launched, which has a total of 143 apartments including 11 penthouses.
According to company spokesperson the apartments have been designed to ensure optimum natural ventilation and streaming of natural daylight. The design focuses on the lake with attention to street frontage - land thus presenting the lakefront development as a clear statement of contemporary design. The project will have facilities like rainwater harvesting, STP (sewage treatment plant), water softening /purification plant, solar energy to power the common lights besides a high end club house and sports faciluties. Earth Marvel in Lucknow Earth Group of Companies recently launched its latest residential project “Earth Marvel” at Raebareli road, Lucknow. This new project will offer 2 and 3 BHK residential apartments in a Vaastu compliant layout with lush green landscape, water bodies, jogging track, Gazebo and lily pond. The project will have 10 blocks of multi-storey apartments. Two BHK will have a super area of 1225 sq ft and 3 BHK will have 1545 sq ft. A flat in project will cost ~2650 per sq ft on construction linked plan and ~2350 per sq ft on down payment plan. AVJ Group launches
Rs 150 cr project in Delhi AVJ Group recently announced the launch of its flagship commercial project AVJ Business Suites in Preet Vihar, East Delhi. The new project will offer fully furnished office space, equipped with modern fixtures and hi-tech modern facilities, accompanied with an inspiring and efficient work environment at reasonable prices. The new project is strategically located in the vicinity of East Delhi making it easily accessible to Metro station, railway station and bus stop. It will offer around 1,50,000 sq ft area in 10 floors. These business suits range from 600 to 1200 sq ft. Speaking at the launch, Vinay Jain, CMD, AVJ Group said, “We are planning to invest
Rs 150 crore in this project.” Misty Heights in Noida Extension Mascot SOHO Group announced the launch of its luxurious residential project — Misty Heights in Noida Extension (Greater Noida West) earlier this week. The project is in the 130-acre Sports City in Noida Extension which is in the vicinity of a 70-acre golf course. Speaking on the occasion Mritunjay Kumar, MD Mascot SOHO Group said, “The newly launched residency Mascot Misty Heights has attracted foreign buyers too. The 2, 3 and 4BHK flats are fully loaded with all world class comforts and amenities and abundance of natural beauty.” — Based on information provided by the developers Imperium Grand in Panjim Realty player Gera Developments announced the launch of Gera’s Imperium Grand, in Panjim earlier this week. This is the fourth project in the gruop’s iconic Imperium series of commercial spaces in Panjim offering retail and office spaces. Located right in the heart of Patto, the CBD of Panjim, Gera’s Imperium Grand, is an IntelliplexTM with smart features like Building Management Systems, optimised lighting etc. Speaking on the occasion Rohit Gera, Managing Director, Gera Developments said, “Ground + 8 floors of commercial space laid out for 160 offices and 10 retail spaces overlooking a huge atrium will have ample parking space. Imperium Grand has received approvals from the NGPDA as well as the construction license from the CCP and is slated to for ground breaking post the monsoon that is September 2014. The building is expected to be ready by Diwali 2016”.
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Market Pulse
Office space leasing activity in Mumbai is not expected to move significantly before next year although the sentiment in the real estate sector is witnessing some improvement, says property consultant CBRE.
“Market sentiment in Mumbai’s office space has seen a slight spurt in the April-June period compared to the last couple of quarters and is expected to fare better in Q3 of 2014,” CBRE South Asia Chairman and Managing Director Anshuman Magazine said in a statement. “However, ground realities in this segment are hardly likely to change this year as far as actual investments and project funding are concerned,” he said. Although a gradual recovery is on the cards, office space leasing activity is not expected to move significantly before 2015, he said. The micro-markets of Bandra–Kurla, Lower Parel and Andheri are likely to witness a reasonable level of corporate interest mainly due to a surplus supply situation, Magazine said. The rentals are, however, likely to remain stable in the micro-markets and would continue to remain so over the forthcoming quarters too, he added. According to CBRE, central business district of Nariman Point, Fort and Cuffe Parade saw sluggish transactions during the second quarter of the year. Magazine said, “Enquires remained limited to small and medium sized office spaces in some of the prominent commercial developments. Vacancy levels increased marginally owing to shift in occupier interest towards other cost effective micro-markets, while rental values declined owing to subdued demand levels.” Residential segment to revive in Q4 of 2014 With the Narendra Modi-led government focusing on reviving growth and bringing down interest rates, sale of residential properties is likely to pick up in the last quarter of 2014, a recent survey said. Due to low consumer confidence during last year and even in the first half of 2014, residential property absorption levels reduced significantly resulting in an increase in inventory levels and “Stable government at the Centre has already brought optimism in the country. As the new government wants to focus on reviving growth, the interest rates are expected to decline in the near future. “The government has also announced reduction in the exemption limit on account of interest on loan in self-occupied property. Based on these factors sales of residential units are expected to pick up from the last quarter of this year,” the agency said in its report. Expressing optimism in the sector, the agency said deeper penetration of existing banks as well as upcoming banks will increase the exposure to home loans. Further, with rapid land and infrastructure development as well as improved standard of living in tier 2 and 3 cities, housing demand is likely to increase more in these cities.
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Realty Bites
NCR-Delhi based real estate developer Gaursons India Ltd. has started giving possession for more than 9,000 units in its flagship project Gaur City & Gaur City-2 in Greater Noida West in the coming 10-15 months. The group will give possession in four phases and will start by handing over 1,560 ready to move in units in July, 1880 units in October, 2360 units in May, 2015 and 3360 units in August, 2015.
Speaking on the occasion, Manoj Gaur, MD, Gaursons India Ltd, said, “All the approvals are in place and we have started giving possessions to buyers from June onwards. At par with other premium residential projects of Gaursons India, Gaur City and Gaur City-2 have all the necessary facilities and amenities of a ultra modern home such as Sports City Complex with Day/Night Cricket stadium, Day/Night Athlete ground, multiplex, swimming pool, hotel, hospital and schools and all this is available at an affordable price. Gaur City & Gaur City II is spread over 237 acres approximately. New magazine launched Real estate portal of Trigonometry Technobuild Pvt. Ltd., Realtypapa.com recently launched its exclusive magazine — Inquisitor — on real estate and lifestyle. The magazine powered by 'Vox Populi' (Voice of the People) has been conceptualised, planned and executed to address the issues and problems faced by common man in real estate sector. — TNS
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The Urban Development Ministry is preparing a list of features that need to be incorporated for development of 100 Smart Cities announced in the Budget with an outlay of ~7,060 crore in this fiscal.
Addressing a seminar on real estate, Anand Singh Bhal, Economic Adviser, the Ministry of Urban Development, said discussions are on to make the policy for 100 smart cities, which will include the existing cities and new ones. “Smart city is a new buzz word. It’s not possible to make 100 new smart cities as it will take 20-30 years to build. So, instead of building 100 new smart cities, a lot of emphasis will be on making a city smart. “Whatever the cities which are there, they will be impregnated with smart features and the new cities which will come up will be made smart,” he said. Stating that smart cities generally mean use of IT and digital data to improve efficiency for every services that cities provide, Bhal said the government will come up with a tangible and a broader definition, which will include not only IT solutions but other aspects that make cities livable. “There are four silos in our ministry — built-up area (CPWD), urban transport, water supply-sanitation and town country and planning. All the four have been asked to work out the smart features that needed to be incorporated in cities and come up with a list. As of now, the effort is going on,” he added. — PTI
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The much-hyped but long-delayed strategically located Pinjore-Kalka Urban Complex in sylvan environs along the Zirakpur-Shimla highway, is back in the reckoning after many twists and turns over the past few years.
Q.We have a freehold property in Naraina Vihar, New Delhi (South West district) measuring 200 square yards. It was constructed by my father (from loan/family savings) in 1968 and was renovated later on in 1989. My father expired in October 2012, without leaving a Will. Besides my mother, my sister and I are the legal heirs of this property. My sister, who is a citizen of USA, is visiting India in July, 2014 . We would like to change the ownership of the above property in the name of my mother at that time.
Q. I was allotted a plot measuring 162 sq.m by HUDA on 03.05.1995, whose tentative cost (as mentioned in the allotment letter) was
Rs 1,52,289. The tentative price of the said land as mentioned in the 'Conveyance Deed' registered on July 18.,2007 is
Rs 1,89,724.
Q.I sold a residential plot which attracted long-term capital gain tax (LTCG). I got the payment as under:
If last week’s Budget proposals appeared to have ignored or done too little for the affordable housing segment, the RBI’s move to ease norms for banks to raise long-term funds for financing affordable housing projects earlier this week has been widely hailed as a right step to give a boost to affordable housing in the country.
In the last four episodes of Ground Realty, vital specifications of some housing components have been provided to the readers. These can serve as a good guideline whenever you face multiple choices and need to take a decision. Similarly, while buying ready built apartments, the homebuyers can evaluate the provided specifications by comparing them with the suggested specifications. In the fifth part of this seven-part series a few more components are being taken up:
Front balconies and terrace railings should have a combination of mild steel, toughened glass, stainless steel and wood as these railings have their effect on the front elevation of the house. Specify the basic structure to be of stainless steel sections or silver painted mild steel. Add provision of wood and glass to it at the time of finishing of house project. Glass should be specified as toughened glass only. For its provision, specify welding of studs or D clamps to the basic section at the time of its fabrication of railing.
Wooden laminate floorings need to be provided with profiles at their junction with other kinds of floorings to avoid any damage to the edge of laminates. The profiles can be quarter round type or reducer type for transition from laminate flooring to tile or marble flooring. These can also be T-type to cover small gap between the laminates that may occur in the floor at the door connecting two rooms. Though profiles are costly items, don’t avoid provision of profiles as these serve as protectors of edges of wooden flooring.
As nations in emerging economies such as India seek to quickly address infrastructure deficits across the country, one of the imperatives is to permit FDI (foreign direct investment) in realty. Be it real estate or other verticals, FDI transforms the system by introducing global best practices, thereby making processes more efficient, transparent and time-bound.
In the past few years, however, as sales of units have dwindled and unsold inventories piled up, the resultant uncertainty has had a negative impact on FDI inflows into realty. As per DIPP (Department of Industrial Policy and Promotion) data, FDI in the construction sector (which includes townships, housing and built-up infrastructure) stood at $3.1 billion between April 2011 and March 2012. But FDI declined to around $1 billion between April 2013 and February 2014. Presently, 100 per cent FDI is allowed through the automatic route for housing, townships, commercial premises, resorts, hotels, hospitals, educational institutions, recreational facilities, city and other built-up infrastructure. 
Amid rising property prices, high loan rates and rising delivery defaults, home buyers are increasingly opting for ready-to-move properties to ensure safety of their investment. Though most of these delays are due to adverse market conditions resulting in slowdown in sales, in some cases these are deliberate by cash-strapped developers. The impact of these delays is clearly visible as there was a huge, 44-percent gap between committed and actual supplies in the past five months of this calendar year. Large-scale delivery defaults have shaken the faith of home buyers. Despite assurances, customers are not convinced, resulting in slow off-take of homes. This gets reflected in rising inventory of unsold homes that has gone up by almost 5 per cent in the top seven cities in the January-March quarter of 2014.