REAL ESTATE |
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Hubs of multiple choice
Green House
Office space pricey in Mumbai
Project Watch
TAX TIPS
REAL TALK
REALTY BYTES
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Hubs of multiple choice
Cities expanding beyond their limits have increased the commuting time and the density of vehicular traffic on the roads has made these distances even more cumbersome. One-stop solution for shopping, recreation and workplace has, thus, become the need of the hour not only in metros but in major cities all over the country. You would want to have a place where you can fetch articles of your daily needs plus do your lifestyle shopping as well. The icing on the cake would be if the said complex also has a recreation zone for kids with some swank movie screens as well. All this is very much in vogue these days, since a number of such 'wholesome one-stop solutions', which at times include the office space also, are coming up all over the country.
Projects
Developers are showing a keen interest in these kinds of commercial hubs in major cities in the region. Chandigarh has a couple of these office-cum-retail mix hubs on the anvil. Acropolis, that was launched earlier this week, will have a mix of 25 per cent retail and 75 per cent office space on offer in the Industrial Area. "The need for commercial space is growing in the city and we intend to cater to this need apart from offering a complete shopping experience to people. With high-end brand outlets, restaurants, entertainment and recreation zones, the Acropolis retail zone is going to be a one-stop destination for all shopping needs of residents of the tricity. Apart from this 850 sq ft to 38,000 sq ft expandable office spaces would be offered to corporate and business houses to set up shop here", says Chetan Singla, Director of Mirage Infra Ltd, the group that is behind this project. Apart from the office space, such mix-use hubs also provide options to top company executives and businessmen visiting the region for official work. "Ours is a mixed-use development where we have five floors for retailing purpose and the top five floors house a premium five-star hotel. We would even be having a shopping arcade in our hotel", says the spokesperson of MBD Neopolis Mall, in Ludhiana. The type of development for which a retail space is developed depends on a large extent on location. "Our mall in Chandigarh IT Park was basically meant to provide support to the already existing office and IT infrastructure. But the one we are developing in Jalandhar is in the heart of the city with high density of residential areas in its vicinity, and this property will have an 'Anchor Store' as well as a 'Hyper Store', to cater to the daily requirements of the local population", says Rahul Mehta, ED of DLF. The success of these hubs and the accruing rentals depend upon the first few inhabitants of the complex. For that McDonald’s seems to be a sure shot bet. "McDonald’s is one retail chain which would not pay rent, and would further the share the premises on revenue-sharing basis, that also on an average of 4 to 7 per cent of the daily revenue collection. Even before that one has to shell out a neat Rs 50 lakh for doing their interiors", explains Rohtas Goel, MD, Omaxe. Rental flexibility and revenue sharing are some of the strategies that are being used by developers to ward off vacancy pressures in these hubs. The supply is a reflection of the positive sentiment among retailers. As per CB Richard Ellis India's latest report titled "Indian retail view" about 5 million sq ft of retail mall space was added in the country in the top seven metros in 2010 and the scene seems to be much the same in major cities in Punjab. Development of these retail spaces is proving quite a handful for the developers going by the voluminous development taking place in this spectrum. "I have around 3.75 lakh sq. ft. of retail space in Patiala, 7 lakh sq. ft. retail space in Ludhiana and around 1.6 lakh sq. ft. in Ludhiana. On an average I have occupancy of around 70 per cent across board which is considered to be decent enough", informs Goel of Omaxe. Pre-commitments in under construction assets in prime locations is also an encouraging sign.
The end user
"The property that we develop is either sold out to the buyers or is leased out. Like our DT Mall in Chandigarh, the entire property is leased out. It is owned by us", adds Rahul Mehta of DLF. To attract the buyers or the lease holders, the location of the property is of prime importance. One can't develop a shopping hub and recreation zone on the outskirts of city and start demanding very high rentals. "The main reason for Omaxe Mall in Patiala doing very well is the location and the first-mover advantage", explains Arun Chaudhary of Five Star Realtors. Secondly, the first few inhabitants of the property play a cardinal role in shaping up the future of that retail space being developed. "Since ours is typical high-end retail mall, we were very particular and choosy in renting out our premises. And we are successful in doing so because we have all the top notch brands as our leaseholders', informs the spokesperson of MBD Neoplois. It makes sense for the retailer to take the premises on rent since the consumer market is so dynamic that if his brand fails to take off then it is easier for him to pack up and move. Giving the premises on rent is a win win proposition for the developer as well as the tenants. And rentals have shown some growth in the wake of revival of economy. "Our mall was launched in 2007 and the rentals have shown an appreciation of 50 per cent till now. A ground floor space in our Chandigarh mall is fetching around Rs 125 per sq. ft", says Mehta. Most of the builders offer bare shelves to the leaseholders since almost everyone wants to have the interiors of his choice. "But the maintenance of common area is the domain of the builder and we also ensure that the place on the whole is artistically designed and offers world class infrastructural facilities like central air conditioning, 100% power backup, 24x7 security, 3-level basement parking, open terrace restaurant and de-stress health zone", says Ashwani Sareen, AVP-Sales & Marketing, Orris Infrastructure.
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Green House
We keep getting a number of gardening queries. Today we will discuss some of these that almost always remain unaddressed. An amateur gardener is always in a fix when it comes to selecting plants for odd locations like semi or completely shaded corner. I call such locations odd because these are not very plant friendly. Another problem is to select species that give flowers all through the year.
Due to changes in the direction of sunlight during winter months some areas in the garden that received good sunlight during summer months get very feeble sunlight. This is a major setback for most of the vegetation, grass included, in the area. The usual practice of watering remains on and there is always moisture in soil. Lack of proper sunlight spells doom for the plants in winters in such areas. It is here that the gardener has to use his observation. If the sun is a short time visitor in a garden, then there is every chance that you can continue with your lawn etc. while regulating watering but if it becomes a dark and cold corner then you will have to consider something else. If the dense shade of the area is due to a single branch of a tree then you can prune and contain it to allow sufficient sunlight. But if the area is getting no sunlight because of the changed direction of sun then there are many other options. If you are looking for a shrub to plant in such an area then daedalecanthus gives an amazing effect. The sparkling blue of the mass flowering at the plant terminals lights up the otherwise dull corner. This hardy shrub can be multiplied easily by way of cuttings. The dark corners may be decorated by using stones, pebbles, marble chips, earthen pots, statutes etc. Such spots could also be provided with spot light for a marvelous effect at night. When it comes to choosing continuously flowering plants, Vinca rosea is a natural selection. Known by a common name as sadabahar, it is now available in different-from-the-routine pink and white colours. Now a wide range of hybrids in different hues are available. (See the accompanying pictures). There is a difference in pinks; too, one is complete pink and the other with white centre. Another similar looking flower is of impatience. Unlike vinca, which is exclusively for sunny locations, impatience can be grown in semi or completely shaded areas too. The beauty of these plants is that you have to buy them only once as these keep on multiplying and spreading on their own.
Fortnightly alert
As the weather starts warming up, the activity of all kinds of life starts. The garden grass starts growing once again and so do the weeds. However, the growth of weeds is faster and if not checked in time it may overpower and give another setback to the otherwise recovering lawn. Do not let the weeds kill your spring time lawn growth. Keep removing them physically and also by mowing as when the tops are removed the roots of the weeds become weak gradually give way to the lawn grass. The broad leaved weeds can be removed by using chemicals, too, but as this is not the time to do so, we will inform you about that later
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Office space pricey in Mumbai
Mumbai has become the fourth costliest city in Asia Pacific for renting a office in the last quarter of 2010 with cost higher than even places like Shanghai, Seoul and Sydney, according to Jones Lang LaSalle.
The global realty consultant Jones Lang LaSalle (JLL) said that India's Capital is also not far behind, occupying the 10th spot in the list of 26 cities across the region. The top three costliest cities are Hong Kong, Tokyo and Singapore, where average annual rents at the most expensive locations stood at $ 1,511, $ 752 and $ 747 per sq mt during the quarter. While the average annual rentals of Mumbai during the quarter has been estimated at $ 705 per sq mt, the same has been found to be $ 503 per sq mt for Delhi. Bangalore was ranked 24th and Chennai at 26th with average annual rentals of $ 136 per sq mt and $ 124 per sq mt, respectively. The report further said with fundamentals of economic growth being very strong in the region, rentals are likely to strengthen in the coming period. "Consistent with strong fundamentals, we expect leasing demand to remain solid and vacancies to generally trend down over the next few quarters," JLL said. Rental growth of up to 30 per cent is expected across the region this year, with the strongest growth likely to be seen in supply constrained markets, it added. During the October-December quarter of 2010, rentals in Mumbai, Delhi and Bangalore increased by 3.2 per cent, 3.6 per cent and 5.6 per cent, respectively over the previous three-month period. In another survey, the consultant said Mumbai saw highest space utilisation in the year in fourth quarter, indicating a robust demand. "Demand for Grade A office space was broad-based and not restricted to the banking, financial services and insurance (BFSI) sectors, which typically dominate Mumbai's tenant landscape," it said, adding other sectors such as aviation and IT/ITES were also active during the period. As on December 31, 2010, the total operational office spaces in Mumbai's prime locations stood at 39.1 million sq ft (3.63 million sq mt) with an overall vacancy level of 11.5 per cent.
— PTI
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Project Watch
Paramount Symphony located in India's first global city, Crossings Republik at NH-24 is in the final stage of possession. Spread over an area of 8.5 acres, this project is a part of the 360-acre township.
Symphony comprises of 2, 2+1, 3 and 3+1 BHK apartments ranging from 1295 sq. ft. to 1895 sq. ft. and the price starting from Rs 20,50,000. The USP of Symphony project is the quality standard facility being provided to the customers.
Bhoomi poojan
The bhoomi poojan ceremony was performed last week ‘Eros Sampoornam’ project in Noida Extension (GNIDA). It is a residential project offering premium lifestyles at affordable prices with the investment of around Rs 800 crore. As a part of its vision for inclusive growth in the NCR, the Eros Group has developed many premium housing and commercial projects. Sampoornam is spread over an area of 25 acres and will have around 3300 units. The project will be constructed in phases. The first phase will have 850 units and is expected to be completed in 36 months. This project will have 90 per cent landscape area and comprises 2 and 3 BHK apartments of 835 sq.ft. to 1,800 sq.ft approximately. The cost of apartments would start from Rs 16 lakh. As per information provided by developers
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TAX TIPS
Q. I own two residential houses in different cities in the country. I had acquired during my service tenure which made me stay at these places. The intention was to settle down at one of these places but I have now decided to sell these houses. These two houses are more than three years old. I have retired and am going to settle in Faridabad (Haryana) and have purchased a plot at that place. My queries are:
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Am I entitled to exemption from the leviability of capital gain tax if I invest in buying a plot?
n
If not, then what should be done to avail the exemption from the taxability of capital gain?
— Dev Pal A. The answers to your queries are as under: n
The acquisition of plot would not entitle you to an exemption from the leviability of the capital gains tax arising on the sale of two houses. n
To avail the exemption from the taxability of the capital gain arising on the sale of the residential houses, you should take the following steps: n
Start the construction of the house on the plot acquired at Faridabad and utilise the capital gain arising on the sale of such houses. n
In case the capital gain arising on the sale of the houses sold by you is not fully utilised for acquisition of plot and construction thereon up to the due date of filing the return of income under Section 139 of the Act, you should deposit the balance amount of capital gain in an account with a bank under capital gains scheme. A proof for the opening of such an account and deposit of amount therein should be enclosed with the return of income so as to claim the exemption in the return of income taxability of such a gain. Enclosures are allowed at the time of filing the return of income. You should, therefore, keep such proof in records so that the same can be produced as and when an enquiry is made in this regard. The amount deposited in such an account should be utilised for the construction of the house. n
The construction of the residential house should be completed within three years of the date of sale. plying with the above requirements may result in withdrawal of the exemption allowed to you.
Paying tax for a deceased
Q. My grandmother has sold a property on which a capital gain has arisen in 2010. However, she expired in the same year, neither any return has been filed nor any tax on capital gain arising on such property has been paid. Would there be any tax liability in respect of such capital gain and will I be liable to pay the same. In case the income-tax return is required to be filed in her case, who would be the signatory?
— Manohar Prakash
A. According to the provisions of Section 159 of the Act, if a person dies, his legal representative is required to pay tax which the deceased would have been liable to pay if he had not died. Representative would be limited to the extent of the assets of the estate of the deceased which are, or may come into, his possession but such liability shall be limited to value of such assets. In view of the said provisions, legal representative of your grandmother would be liable to pay tax on the capital gain arising on the sale of the property as well as on any other income of your grandmother. The return of income would also be signed by the legal representative. You have indicated in your query that return for the assessment year 2010-11 has not been filed. The legal representative can file the return within one year of the end of the assessment year, and therefore, the same can be filed by March 31, 2012.
Change in Will
Q. My father has made a Will in my favour of his self-acquired property. At the same time he had expressed the desire that it would be binding on me to convert the above mentioned property into the property that belong to that of the family (HUF). Now please let me know whether such a conversion will allow the provision of Section 64(2) of the IT Act or not.
— Ram Singh
A. The property inherited from your father would be treated as your individual property as the same was the self-acquired property of your father. The conversion of such a property into an HUF property would attract the provisions of Section 64(2) of the Income Tax Act, 1961 (The Act). It would be advisable for your father to make a Will of the said property in favour of your family if he wants this arrangement.
Legal matter
Q. My father entered into an agreement on (Rs 100 Non-Judicial Paper) in October, 2010 of selling his 2.75 acre of land (not ancestral) to a purchaser through a dealer. We have not seen the purchaser even once. I am the only son and have a sister who is married. In the agreement the dealer cleverly wrote 3.5 acre (28 kanal) instead of 2.75 acre with all the khasra numbers. We pointed this out but to him but he convinced us that we could sell up to 3.5 acre if we wanted. My father trusted him and signed the papers. Registry was made three months after the signing of the agreement on December 15, 2010. Now the dealer is demanding 3.5 acre. My query is:
n
Can he forcibly take 3.5 acre of land from us? n
We came to know from somebody that the dealer can complete the registry within three years. Is it correct, but the time mentioned on agreement paper is three months. n
What we can do at this stage? n
Can we break the agreement and sell it to another and return the amount or double amount? My father has 6.5 acre land out of which only 1.5 acre is ancestral. He has four brothers living separately but the land is not separate on paper. Some points from the agreement are given for your reference: n
Seller must assure the purchaser the partition of land of present/existing possession. n
If seller sold on or before the registry of land to any other, the seller must pay the double amount of the earnest money he received.
— Reader A. The issues raised in the query have legal implications and can be decided after going through the 'Agreement to Sell' very minutely. The opinion given hereunder on various queries raised by you is based on the presumption that the 'Agreement to Sell' is clear and unambiguous on the issue as to the sale of 3.5 acres: n
In case the 'Agreement to Sell' is for 3.5 acre, the purchaser can seek specific performance of the 'Agreement to Sell' and in the process your father may have to part possession with 3.5 acre. n
The period for the execution of the sale deed is limited to that mentioned in the agreement itself. n
It will be desirable to negotiate with the purchaser so as to complete the deal for 2.75 acre. n
In the view of the 'Agreement to Sell' entered into by your father, it would not be advisable to sell the land to someone else. It is presumed that the area of 6.5 acre mentioned in the query is inclusive of 2.75 acre sold by your father. Your father will have to ensure that the land which is sold by him is duly recorded in revenue records so that a clear title can be given to the purchaser. In case your father decides to rescind the agreement, he will be liable to pay double the amount of the earnest money received by him. As indicated herein, the issues raised by you have serious legal implications. It is, therefore, advisable to consult a civil lawyer dealing with real estate matters before taking a final decision on various issues raised by you.
The writer can be contacted at sc@scvasudeva.com
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REAL TALK
For over 50 years, Chandigarh-based realty firm Manohar Singh & Company has been a pioneer in the realty estate managment segment in Chandigarh and its periphery. Known for providing reliable and secure investment opportunities to a cross section of society, including the NRIs, the company places much emphasis on trained human resources, who combine the entrepreneurial spirit and deep understanding of property sector with a view to provide quality service to the client.
A second generation entrepreneur, Taran Inder Singh, is credited with diversifying the firm into a range of projects, including apartments, houses, villas, commercial spaces with aesthetics and luxurious living. In fact, two state-of-the-art projects of the group —Multitech Towers (Sector 91) and Venetian Villas (Sector 112) in Mohali — have redefined the luxury residential segment in Chandigarh’s vicinity. “Understanding the needs of the vibrant world, we are committed to develop world class infrastructure,” Taran Inder told Real Estate in an interview. Excerpts: How do you foresee the real estate scenario in Chandigarh and its periphery? Chandigarh and its periphery offer one of the best residential and investment opportunities because of the world-class living standards of the City Beautiful. With general prosperity levels of the residents being comparatively higher, and NRIs’ facination for the Chandigarh and its periphery, this is the region to watch out for in the coming years. Manohar Singh & Company’s name has been synonymous with property transactions in Chandigarh for the past five decades. What is the motto of your company? Our customers have been the inspiration behind our commitment to deliver quality and design excellence for generations. We have been fairly successful in helping them to translate their dreams into reality and providing them with opportunities to pave way for future generations to reap rich dividends from the property transactions. How have people’s real estate choices changed over the years? Commercial property continues to retain its charm for the investors. However, in the residential segment, apartment culture has made inroads into people’s choice in the last decade particularly in Chandigarh’s periphery. Besides being economical, apartments provide security, world-class amenities and are a secure investment. The buzzword today is self-sufficient residential communities having recreational and commercial activities inside or nearby the residential complexes. What sets your residential projects apart from other run-of-the-mill housing projects? We provide world-class living standards at “Indian” prices. The 14-storey Multitech Towers in Mohali is an expression of the bold and contemporary vision of the legendary architect Hafeez Contractor. Through the masterful combination of soaring space and subtle detail, the Multitech Towers create an unparalleled home for body, mind and soul. On the other hand, Venetian Villas introduces the sprawling concept community in Sector 112 of Mohali. Located in peaceful setting, it gives access to world-class facilities in Chandigarh and Mohali. Exclusive, prestigious and palatial defines the Venetian Villas where the residents live life king size. What is best property investment option in Chandigarh’s periphery? With other cities bursting at seams, the Mullanpur area offers the value for the money for both investors and end users. We also plan to develop an integrated mix land use commercial and residential project in the area in the near future.
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REALTY BYTES
Godrej Properties, the real estate development arm of the Godrej Group, has announced the launch of its mixed use project, The Trees, at Vikhroli, Mumbai. At 2.8-million square feet, this is one of the largest real estate development projects in the city. Once completed, The Trees will house premium office space, residential towers, high-street retail and five-star hospitality over a large four-acre landscaped park.
Situated in the heart of the city, this development is well-connected to several major transit points and business hubs. The Trees will be built in three phases starting immediately with the first commercial building. The first building, on which construction has now commenced, is called Godrej One and will be one of India’s leading commercial buildings. The building is being constructed by Larsen & Toubro. Of a total area of 7,50,000 square feet in Godrej One, 2,50,000 square feet will be used as the headquarters for several Godrej Group companies, while the remaining 5,00,000 square feet will be leased to external tenants.
Alpha project in Gurgaon
Realty firm Alpha G:Corp will develop a group housing project in Gurgaon at an investment of Rs 400 crore. The company would build 670 housing units on a 12.5 acre land, which is owned by Magnum International. “The project cost is Rs 400 crore, including land cost,” company’s Director and CEO S K Sayal told reporters. The investment would be largely met through bank debt and advances from customers, he added. Alpha G:Corp, which is 60 per cent owned by foreign investors including Morgan Stanley, will soon launch this project at an inaugural rate of Rs 3,400 per sq ft, but the company is looking at a realisation of over Rs 3,800 per sq ft from this project. Apart from the national capital region (NCR), Alpha G:Corp is developing projects in Punjab, Haryana and Gujarat.
Hindujas’ plans
Conglomerate Hinduja Group is in talks with Italian construction company Pessina Construzioni to develop four real estate projects, costing $ 2 billion (over Rs 9,000 crore), in India. The four projects, including both residential and commercial spaces, will be developed in Bangalore and Hyderabad in an area of 1,002 acres, he said. Hinduja Realty Venture is the three-year-old real estate arm of the Hinduja Group. It currently has 30 million square feet to undertake development, including integrated township, residential complexes, IT and Knowledge parks, hospitality and retail. In September last year, the company had announced that it will invest Rs 5,500 crore to develop four realty projects in Bangalore, Hyderabad and Chennai.
— Agencies
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