Caught in a bind
Recent steep hike in cement prices has brought to the fore the inflationary pressures being faced by the realty sector because of which it is...
Geetu Vaid

The realty sector in the country is jostling with inflationary pressures from all fronts to keep up its growth momentum. But it seems the joyride of the sector after the slowdown of 2008 is over as it now traverses a bumpy road at present. If the increasing home loan interest rates and recent land acquisition imbroglios are giving sleepless nights to the end users and investors then the steep increase in the construction material costs has rocked the builders' applecart.

As per Assocham, the prices of raw materials, including cement, steel rods, bricks and other input materials have risen by over 30 per cent since 2009. This coupled with a shortage of skilled labour has led to delays in many projects all over the country.

A recent study by Assocham had revealed that the rise in raw material prices would hit the construction sector and may even reduce its contribution to the country's GDP to below 8 per cent in the current financial year as against 8.1 per cent in 2010-11. Assocham had surveyed about 1,500 persons, including contractors, developers, building material manufacturers, traders and real estate consultants for the study.

As steel, cement and labour are the key components and make for almost 75 per cent of the overall construction cost, developers are finding it difficult to keep their margins intact due to the upward spiraling costs of these construction materials that have been putting a great pressure on the execution of projects.

Cement woes

The National Real Estate Development Council (NAREDCO), the apex body of real estate industry, has expressed concern over the steep 50 to 55 per cent hike in cement prices from Rs 180 per bag in August 2011 to around Rs 280 per bag in October 2011. "The high cement prices have adversely affected the social housing infrastructure industry in the country", said Navin M. Raheja, President, NAREDCO, while expressing concern at this sudden hike. He said as cement accounts for nearly 15 per cent of the cost of construction, the abnormal increase in its price will lead to increase in the price of housing units. As per NAREDCO the construction costs for developers have gone up by 15-20 per cent due to increase in cement prices only.

This sudden increase has happened only after the production capacity of cement industry saw an increase of over 32 per cent in 2010-2011 in comparison to 2009-2010 (from 222.60 million tonnes to 284.2 million tonnes). This accounts for 95 per cent of the organised cement industry in the country. The total installed capacity of cement industry in the country is nearly 300 million tonnes.

However, capacity utilisation in 2010-11 declined to 76 per cent from 83 per cent in 2009-10.

Being unable to analyse the reasons for the recent hike in cement prices, especially when there is no shortage of cement in the country, NAREDCO has urged the Minister of Commerce and Industry to convene a meeting with cement manufacturers while simultaneously urging the Competition Commission of India to intervene. The Commission may consider analysing the cost of cement production and pricing.

Apparently the cement industry has increased prices in anticipation of a higher off take in demand after the monsoon season, when construction activity picks up.

Developers in a fix

The increase in input material prices has put developers in a fix as for many there is no option but to transfer the hike to the end users. As Ravi Saund, COO, CHD Developers Ltd., says, "The steep rise in the cement prices in the last three months is bound to translate into rising cost for real estate developers. If the cement prices continue to rise, without any correction, the industry costs could go up by 2%. The price hike will also lead to rise in cost of housing, building, construction and all related infrastructure industries. This would eventually lead to rise in the property prices and the developer would have no choice but to pass this on to the consumer." Many developers like the Parsvnath group have increased prices of flats by 5-20 per cent during the past six months to offset the impact of rising input costs.

The speculated shortage of cement will also lead to project delays. More than the price it is the vicious cycle created by the shortage of cement which leads to construction woes. "An artificial scarcity is created for cement and then the price is raised. As a result the developers with construction at various stages are forced to buy cement at the cost that is demanded in the market since they cannot afford to bring the project to a standstill. The labour is mobile and it is not easy to get them back to work. All this leads to awry schedule", adds Saund. Many big builders are reportedly buying cement from countries like Pakistan as it turns out to be cheaper by about Rs 45-50 per bag.

Many others like major realty player Parsvnath Developer have shown decline in their net profits due to high input costs. Parsvnath recently posted 41.55 per cent decline in its consolidated net profit for the quarter ended September 30, 2011 at Rs 29.09 crore. "Though the demand is very strong, input cost is increasing and in the last few quarters we are concentrating more on execution of existing projects rather than launching new ones," said Pradeep Jain, Chairman of Parsvnath Developers, while expressing concern over the increase in cement and steel prices. In the second quarter, the company's cost of construction and development rose by over two-fold to Rs 151.77 crore from Rs 71.47 crore in the same period last fiscal.

Labour pain

Another thorn in the flesh is the severe shortage of skilled workers being faced by the realty sector. This has led not only to increase in property prices but also to delays or cancellation of projects, as per Assocham Secretary General D.S Rawat.

"Inflationary pressures leading to an abnormal price rise in food and basic costs of living have pushed the labour wage rates upwards. Besides, the labourers are migrating to their own towns or villages on account of better job availability and welfare schemes like National Rural Employment Guarantee Scheme (NREGS) which are encouraging migrant labourers from states like Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan to shift from private employment," added Rawat.

He also cited increasing transportation and energy costs as factors responsible for the hike in raw material prices.

With banks reducing lending to realty players, getting access to capital has also become difficult for real estate players. So with current projects getting delayed and slack sale volumes all is not hunky dory in the realty realm.

Tax tips
Attach receipts for payment from foreign bank
S. C. Vasudeva

Q. I am an NRI. I am obliged to submit a form to RBI stating the purchase price of the property. On that form it states that you have to attach evidence from the Indian bank of transferred funds from overseas to purchase the property. I have paid for the property in two installments. The first installment was paid directly from my bank in New York and second will be paid in December. I intend paying the same from my NRE A/c in India. Do I attach statements from both banks to show that the money was transferred to the seller even though one of the banks is based in USA?

If after two or three years I wish to sell the property can I remit the funds back to the USA?

— Inderjit Samra

A. Apart from the bank statement, it would be advisable to attach the forwarding letter along with which the draft/cheque from your foreign bank account was sent to the owner/builder of the property as well as a receipt issued by such owner/builder clearly indicating the details of the instrument through which the payment had been received by the owner/builder. It should be possible for you to repatriate the amount realised on the sale of property which has been purchased with funds brought from outside India. I may add that any gain realised on the sale of the property would be taxable in India as a capital gain. In case the property is held for a period of less than three years the gain so realised would be taxable as a short-term capital gain. Such short-term capital gain would be added to your other income, if any in India and taxed at a normal slab rate. In case the property is held for a period of three years or more the capital gain would be treated as a long-term capital gain. Such capital gain is presently taxable @ 20% plus education cess of 3% thereon. 

Heir to tax liability also

Q. My father owned a house in Meerut and all of us lived there for more than 20 years. He sold the house and shifted to Delhi. The capital gain on the sale of such house was utilised for the purchase of a plot for which an advance of Rs 20 lakh was paid. This transaction took place around October, 2010. Unfortunately, my father died in December, 2010. The sale deed in respect of the said plot was eventually executed in May, 2011 in my favour and I have taken up the construction of the house which I hope to complete by January, 2012. Will I be able to claim the exemption under Section 54 of the Act in respect of the capital gain arising on the sale of property held by my father in Meerut.

— Ravi Sharma

A. On the basis of facts given in the query it is evident that there was a transfer of the house property, the income of which was assessable under the head "income from house property" and that the advance was paid by your father for acquiring a plot for the construction of a house property so as to avail the exemption allowable under Section 54 of the Act. The capital gain earned on the sale of residential property in Meerut was chargeable in the hands of your father and on account of his death you will be assessed as his legal representative for the purposes of the tax liability arising on account of such sale. There is an old decision of Madras High court which is reported in 4 Taxman 432 (C.V. Ramanathan vs. CIT) which does permit availing of benefit under Section 54 of the Act in such cases. You may, therefore, claim the benefit on the basis of the said decision. 

NRI can inherit agri land

Q. As per law a US citizen cannot buy agriculture land in India. So I just have a small query on this point. I am an Indian citizen and my son is a US citizen. Can he inherit my agriculture land in Punjab ?

Can I transfer my agriculture land in his name during my lifetime?

— Sushma Chaturvedi

A. In accordance with the provisions of Foreign Exchange Management (Acquisition and transfer of Immovable Property in India) Regulations, 2000, a person of Indian origin living outside India may acquire any immovable property in India other than agricultural land/farm house/plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin residing outside India.

Further, a person of Indian origin residing outside India may acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of foreign exchange law in force at the time of acquisition by him or the provisions of these regulations or from a person resident in India. The above regulations, therefore, do not permit the acquisition of agricultural land by a person of Indian origin by way of gift.

However, it may be possible for your son to inherit the agricultural land as the above regulations do not prohibit inheritance. You may not be able to transfer such agricultural land to your son during your life time.

Make the right purchase decision

Q. I own a small residential house which is a self-occupied property. I would like to shift to another place after selling the first house for which I had borrowed money from the bank. In case I use the sale consideration for repayment of the bank loan and utilise the balance amount, if any, towards the acquisition of a plot, will the capital gain arising on the sale of the plot be exigible to income tax?

— Rajiv Goel

A. The capital gain arising on the sale of your house would be treated as long-term capital gain in case the residential house in which you are presently living has been held by you for a period of three years or more. The requirement of Section 54 of the Income-Tax Act, 1961 (The Act), is to invest such capital gain arising on the sale of a residential house in the purchase of new residential house within a period of two years after the date of sale or construction of a residential house within a period of three years after the date of the sale. If the amount of capital gain so arising is not utilised as above, it will be exigible to tax as long-term capital gain @ 20 per cent plus education cess of three per cent thereon.

Wrong assessment

Q. I sold my jewellery during the financial year ended March 31, 2011 and to claim the benefit under Section 54F I purchased an old residential house property within two years of the date of the sale of jewellery. The Assessing Officer has not allowed the benefit of exemption under Section 54F on the contention that the property purchased by me is an old residential house. Is the contention of AO correct?

— Radha Raman

A. The provisions of Section 54F require the investment of the net consideration in the acquisition/construction of a residential house within the specified period. The section nowhere requires that the acquisition should be of a new residential house. The requirement of this section is the investment in a residential house property. If the property as acquired by you is a residential property within the records of the municipal authorities, the Assessing Officer cannot disallow the claim under section 54F of the Act. 

Arrears of rental income are taxable

Q. I have received arrears of rent from a tenant who had stopped paying rent and did not vacate the premises for a few years. The apartment has now been vacated after a long litigation. I did not include the rental income in my tax Returns filed for the years for which the tenant had not paid the rentals. Please let me know as to the treatment of such areas of rent.

— Anand Pratap

A. Section 25B of the Act provides that in case the tax payer has let out a property to a tenant and has received any amount by way of arrears of rent from the said property which has not been charged to income tax in any of the previous year, the amount so received shall be deemed to be the income chargeable under the head "income from house property". The same would be taxable in the year in which it is received. I may further add that the amount of arrears received would become taxable in the hand of the recipient even if he is not the owner of the house in the year in which the same is received.

LOAN zone
Interest subvention scheme

In order to stimulate demand for credit for housing in the middle and lower income segment of population in the country, the government has proposed an interest subvention of one per cent on all individual housing loans of up to Rs10 lakh. The Scheme recognises that cut in interest rates has an important role to play in reducing EMIs of borrowers and creating additional demand for housing. All regions of the states & Union Territories in the country, including rural and urban areas will be covered under the scheme

Reserve Bank of India has extended time limit of the scheme up to March 31, 2012. The guidelines for the same have been issued in November, 2011. The scheme will be applicable on loans sanctioned between October 1, 2009 and March 31, 2011.

The scheme is expected to provide relief to prospective home owners and improve home ownership in the specified target segment.

Eligibility

Interest subvention of 1 per cent will be available on housing loans up to Rs 10 lakh to individuals for construction/purchase of a new house or extension of an existing house. All such loans sanctioned and disbursed, during the period of one year from the date of publication of the scheme shall be eligible for the said interest subsidy.

Interest subsidy

The subsidy of 1 per cent will be defined as reduction in interest rate by 100 basis points per annum from the existing rate of interest for a particular amount and tenor. It will be applicable to the first 12 installments of all such loans sanctioned and disbursed during the currency of the scheme and will be computed for 12 months on the disbursed amount. The subsidy amount will be adjusted upfront in the principal outstanding, irrespective of whether the loan is on fixed or floating rate basis.

Implementing Agencies (IAs)

The scheme will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with the National Housing Bank.

Nodal Agencies - The RBI and the NHB will be the Nodal Agencies for this Scheme for SCBs and HFCs, respectively.

Terms for loan and subsidy

The interest subsidy of 1 per cent per annum will be admissible for the first year on the amount sanctioned and disbursed against the eligible housing loans. In case the loan amount is disbursed in parts (installments), the interest subsidy will be calculated for one year and claimed separately for every installment of the loan disbursement falling within the operating period of the Scheme.

The interest subsidy will be calculated on the interest chargeable at the time of disbursement of the loan.

The agreed rate of interest would be arrived at by the IAs keeping in view the RBI/NHBs guidelines, if any, for loans up to Rs.10 lakh.

The borrowers may choose fixed or floating rate of interest.

The mode of disbursement of the loan will be decided by the lending IAs as per the requirement of the borrowers.

The IAs will deduct the subsidy amount upfront from the principal loan amount of the borrower and charge interest on the net amount of loan at the agreed rate of interest.

— S. C. Dhall

realty byte
LEED certification for 3C

The 3C Company which is a pioneer in conceiving and executing Green Developments in Delhi and NCR has been awarded LEEDS (Leadership in Energy & Environmental Design) Certification by Indian Green Building Council (IGBC) for one of its green buildings – Knowledge Boulevard. The 3C Company already has to its credit three platinum and four gold rated LEED certified green buildings rated by IGBC under the umbrella of USGBC (US Green Building Council).

LEED is the IGBC’s leading edge system for designing and constructing the world’s greenest, energy-efficient and high performing buildings. The certification takes into consideration a number of green design and construction features that positively impact the environment and the ecosystem. Vidur Bharadwaj, Director, The 3C Company said, “Studies prove that LEED certified buildings have lower operating costs, higher employee productivity, with happier and healthier occupants. We’re extremely proud to set an example in the national real estate space by being one of the trend setters in creation of next gen buildings. Knowledge Boulevard will not only put India on an international map of green buildings but also elevate Noida for having three Gold Rated LEED Certified green buildings now. The mission for developing green buildings has not only helped in saving huge operating energy costs for the benefit of end users but has inculcated a discipline within the organization to preserve the environment”. Knowledge Boulevard is a very modern looking commercial building that is surrounded by large open greener spaces making it one of the green islands of the National Capital Region. The establishment has state of the art mechanical and electrical systems and faces the National Highway 24 in sector 62, in Noida Region. Knowledge Boulevard stands unmatched in the architectural built and has some of the most distinguishing features that set it apart from other commercial buildings in the region. — TNS

Realcon-2011
CII’s platform for realty players

Need for affordable housing and for transparency and regulation in the real estate sector were the main issues highlighted at Realcon-2011, an exposition-cum-conference on real estate organised by CII in Chandigarh last week.

As many as 4,500 business enquiries generated worth more than Rs 62 crore at the exposition in which 57 major exhibitors like Jaypee Greens, Alpha G, IREO, Vatika, EMMAR MGF, Shipra, Parsvnath, Gillco, Bajwa Developers and CBRE, took part. More than 200 delegates representing government, real estate, suppliers, architects, engineers, bankers, media and academicians participated in the event.

Envisaging the need for affordable housing, Kumari Selja, Union Minister for Housing and Urban Poverty Alleviation, who inaugurated the exposition, said that with a shortage of 26 million houses by the end of this year, government was making serious efforts to provide affordable housing to a common man. She announced that Centre would soon launch a credit guarantee fund, under Rajiv Awas Yojana (RAY). "This would stand guarantee to the lending agencies for small housing loans to the EWS and LIG groups. The yojana would also promote private sector engagement in creation of affordable housing stock by incentivising private sector and granting additional density and FAR along with reduction of various charges on the construction of affordable housing". Streamlining of approval processes, encouragement of PPPs and use of new construction technology are other important issues, she informed while adding "We have constituted a task force with representatives of state governments and real estate industry to come out with concrete action points to benefit more people".

She appealed to industry players to come forward to build cost-effective technologies, and solutions for affordable housing as well as to help in skill development in the sector. "As 99% of the total shortage during XI Five Year Plan is from EWS and low income groups (LIG), Central Government, in partnerships with state governments is in the process of formulating comprehensive, inclusive and investor-friendly policy framework to achieve this objective", she informed.

Highlighting the need for affordable yet sustainable projects, Anshuman Magazine, Chairman, Realcon and Chairman and Managing Director, CB Richard Ellis South Asia Pvt Ltd, said with 93 million people living in slums there was a vast scope for low cost housing in India.

Talking about the current scenario in northern region Magazine said, "The real estate sector in North India, especially in growth hubs such as Chandigarh, Ludhiana and Jalandhar, is seeing a growing interest from corporates and other investors. With real estate requirements beginning to spill over from the metros, these adjoining towns, with developed infrastructure and good quality connectivity to the main cities, are the ideal choice for companies looking to expand their operations. With the influx of industries into these cities, residential real estate also is witnessing increased activity with affordable housing as the focus of developers along the outskirts of Gurgaon, Noida, and in other key cities like Ghaziabad, Ludhiana, Chandigarh etc. I believe that in the short to medium term, we can expect these cities within the Northern region to see rapid development".

Talking about industry concerns, Vijay K Thadani, Chairman, CII Northern Region, said that regulatory environment, governance, finance and capital management are the multi pronged challenges. "With rapid urbanisation providing further fillip to Real Estate and Housing Sector, there is immense need to look out for cost effective technologies, better skilled manpower, project management implementation and sustainable & eco friendly designs for affordable housing", said Thadani.

The day-long conference on November 4 saw eminent speakers deliberating on real estate and construction, building material and financing. Key discussions focused on real estate financing, innovative building designs, engineering and material, green buildings - water harvesting, recycling and energy conservation, solar panels, low cost building materials for mass housing, contemporary architecture building automation, landscaping, facades, emerging trends in building materials - bricks and tiles, stones and granites cements, steel, pre-fabricated structure, polymers, aluminum, elevators and escalators, etc, eco-friendly construction techniques.

While talking about the current slowdown due to increasing interest rates and construction costs, Pikender Pal Singh, Regional Director, CII, Northern Region, said, "We have noticed that as developers showcase flexibility in pricing and offer superior quality of construction along with adherence of timelines; sales, we believe; might register an upward movement in the next few months. The only need of the hour is aggressive planning and Realcon can be considered as a platform to provide options to the customer". — GV

Sure service
Geetu Vaid

As metros and big cities get saturated it is the Tier II and III cities that have started blinking brightly on the radar of realty players, be it developers or consultancy firms. So along with the spate of new residential and commercial projects in these cities come the latest lifestyle trends and concepts.

The concept of serviced apartments is one such trend that is making inroads into our Punjabi towns, and bringing it with the promise of the traditional Punjabi hospitality touch are second generation entrepreneurs Tarundeep Singh Takkar and Jaideep Takkar, Directors (Investments and Marketing) of KBK Environ Infrastructures Limited (KBK Infra). The company, which has so far been involved in steering investments and creating opportunities in the real estate sector of Punjab in general and Tricity in particular, announced the launch of Sherwood Serviced Apartments and Villas, Amritsar at CII Realcon-2011 at Chandigarh last week.

"A city like Amritsar with its NRI and tourist connection is a perfect ground to plant the seed of serviced apartment concept in Punjab", says Tarundeep while talking about the project. With lakhs of tourists visiting the city each year there is huge demand for accommodation that has a homely ambience and comforts, he adds.

The project spread over 22 acres (Wagah bypass road, opposite the cantonment) consists of 96 apartments and 23 villas, which are being offered to investors as fully furnished self-contained units, which besides offering advantage of capital appreciation, will also provide a source of regular income in the form of rent. The 1, 2 and 3 BHK apartments will be in the price range of Rs 24 to 57 lakh. The serviced apartments will be ready in two years time. "These will offer a return of about 12 to 18 per cent to investors", informed Jaideep while adding that the entire project would be managed by a professional on-site management team, and is targeted at NRIs, corporate and other large family tourists who want a big, comfortable space to live at a green and clean environment, just minutes away from the hustle and bustle of the vibrant city-centre of Amritsar.

KBK Infra is channel partner of renowned and leading companies such as DLF, Omaxe, Ireo, MGF, etc. The aim is to create transparency and ease in property transactions. Besides this, KBK Infra carries out the role of assisting in land consolidation, property due diligence, financing, legal documentation, etc thereby providing customised handholding to its clients in the field of real estate, he said.

KBK Infra is currently engaged with an exclusive mandate to recommend membership for all units in the Sherwood Residential Estate (an IAS/IPS officers society), located at Mohali (Sector 113) and Amritsar.

The entire Sherwood Mohali project is envisioned as 100 acres plus, fully integrated township. The company also plans to set up an Institute of Excellence in Cinema and Fashion Technology in Mohali area. This will be a first of its kind concept in India. Integrated with this institute will be specially designed student homes and education workplaces.

"We plan to launch innovatively conceptualised office-cum-home for self-employed professionals such as doctors, lawyers etc. KBK Infra has located and earmarked twohubs for the launch of this project in Sector 113 Mohali (Sherwood Estate) and Mullanpur, informed Jaideep.

• Ground Realty
  Systems that make a picture-perfect home
  Jagvir Goyal

A built up house is like a human body. The way a human body looks lifeless unless the network of veins and nerves established inside it works efficiently, a house too is rendered useless unless it has some efficient systems working inside it. It may have a strong structural frame like the human skeleton, it may have an attractive finish like our skin but it’ll spring to life only when the systems inside it work faultlessly and ably. Let’s have a look at the systems that work inside a building.

The systems in a building can be divided into two categories — essential systems and optional systems. As the name suggests, the essential systems are indispensable while the optional systems are requirement-specific and comfort based.

Essential Systems

Water supply: A house must have a faultless water supply system. For it, the source of water must have three features — it must be reliable, sufficient and qualitative. That means that it should provide potable water in sufficient quantity whenever required. If one source is not able to meet with these parameters (like the municipal supply), then an additional source (like the submersible pump) may have to be established. Further, the pipe network must be well planned, leak-proof and well laid to reach each and every outlet and storage point. Further, for longer and trouble-free service the water supply system must be pressure tested before it is put to use.

Sewerage: This system should be able to flush out all the waste matter and sewage of the house to an outside disposal system within no time. Sewerage should have trap points and closets to draw out the waste water from kitchen and other areas like courtyards; sewage and solids from the toilets, through a clog-free pipe network to the exit chambers like gully traps and manholes and further to the main disposal pipeline. At the same time, its traps and closets should have good water seals and vents to prevent the entry of foul gases into the house and their safe discharge into the atmosphere.

Drainage: The next important system that a house must have is an effective rainwater collection and drainage system. All such areas in the house that receive rainfall should have proper slopes for the flow of rainwater towards its collection points. The rain drain pipes should be leak-proof and open. For this, their receiving mouths should be well covered with gratings while the outlet points should discharge water gently, without damaging the surface on which the water is discharged. Further, the discharged rainwater should either go to the rainwater harvesting system established in the house (building bylaws are now asking for its mandatory provision) or the storm water drainage system, as the case may be.

Electricity circuit system: No house is livable unless it is almost wrapped in electric wires to create many such circuits that make electricity reach every nook and corner. For this, fault free, shock proof, well insulated, strong, well conducting and low resistance electric circuit system with wires of proper size and flexibility that run through the conduits to end up behind operational switches and sockets, needs to be established in the house. These circuits should be connected to the main source of electricity through main circuit breakers and earth leakage circuit breakers. Further, the electric circuit system should be well earthed for shock prevention.

Garbage disposal system: Human living methods generate garbage so every house must have an effective garbage disposal system. The provision of dustbins in all rooms, collection of garbage and its safe disposal through men or machines should be fully operational under this system. The sinks should be fitted with trash mashers to eliminate sink trash. Multi-storeyed apartments should be fitted with garbage disposal ducts to pass garbage from higher elevations to the ground safely and without causing any inconvenience to any intermediate floor apartments.

Fire fighting system: These days, fire fighting system, too, should be counted as an essential system and not an optional one. This is truer in case of multi-storeyed apartments. While such apartments should have all important fire detection, fire prevention, fire warning and fire fighting provisions, individual houses should have a handy and workable fire extinguisher in position. The fire detection system should have smoke and fire detectors and the fire prevention should be ensured through the use of short-circuit-free wiring, effective fuses, gas detectors and fire retardant materials. Fire warning system should sound alarms and trigger automatic calls to fire brigades. Fire fighting system should have fire hydrants, fire extinguishers, sand buckets and more such equipment. These days, handy fire extinguishers with lifetime warranty are available for individual housing units and should be provided compulsorily in the kitchen.

Communication system: Connectivity creates control and Communication confirms command over the life systems today. Thus a house must have an effective communication system. Under this system, phone connections and internet connections should be available in all rooms of the house. In big houses, internal intercom system can be established. As the availability of Internet has now become essential, it should preferably be supported by two separate service providers so that the second connection could be pressed into use in case the first one gets out of order.

Storage: Every house must have a well-planned storage system to avoid clutter and to have more of circulation area and free space in it. The kitchen should have a total, scientifically designed and practically usable storage system. The bedrooms should have wardrobes and cupboards for storage of personal dresses and essential belongings, respectively. The store should have good storage system to store multiple items.

Rainwater harvesting system: The building bylaws are now making the provision of this system mandatory for getting the completion certificate of your house from the local authorities. This system will, therefore, also join the essential system category in the coming years. Even if not so, one should opt for its provision to make one’s contribution to the cause of environment and for water conservation. Under this system, the rainfall received by a house gets collected and discharged to the underground water level.

Optional systems

Air conditioning: Life has undergone a change and air conditioning of the house has become ‘almost essential’ and affordable. An air conditioning system may cover either some rooms of the house or the whole of it. Air conditioning system may have window ACs or split ACs or a combination of both or central air conditioning of the whole of the house. In multi-storeyed apartments, central air conditioning can be provided. Most of the luxury segment apartments make this provision. Central air conditioning can further be done through conventional system, package AC system or VRF system. Under the VRF central air conditioning system, room to room variation of temperature and air conditioning can be controlled.

Power backup: Power failures and cuts are inevitable these days as the power demands and the load on the power distribution system continue to increase. In such cases, availability of a power back up system is becoming ‘almost essential’. While an individual house may have a small generator or inverter, a multi-storeyed apartment building may have a central silent zone power generator of large capacity, connected to each apartment for a fixed power backup.

Vertical transport system: This system is important in multi-storeyed apartments. It should have one or more fast moving, safe, easy to operate elevators centrally located in the building. A communication system should be available inside the car to call for help in case of emergency or power failure. In individual houses, the elevator should be essentially connected to power backup system.

— This column appears fortnightly 

Living with vaastu
Feast on positive energy
Madan Gupta Spatu

DINING ROOM

It is old maxim that money should not be counted before an unknown person and eating must not be visible to outsiders. So the main entrance door should not face the dining room in a home. Dining room is a very important part of the house. Another saying goes - 'Jaisa Khao Ann Vaisa Hove Mann'. So it is very important that the food that you have has a positive effect on you and your family. Even the place where a person takes food, could cast positive or negative vibrations on him. Your guests always remember your tasty food and carry an everlasting impression of your dining location.

Location: Dining room should be located in west whereas kitchen should be made in the south-east direction. Dining room should not be located in southern side. It should be ensured that while eating in the dining room, there is no beam or loft over your head.

Atmosphere: Landscape paintings in the dining room make the atmosphere happy and enhance general pleasure. Sceneries and paintings especially of fruits have a positive effect.

Colour scheme: Light pink, light green, cream etc are the ideal colours. Avoid black and white.

Shape of the dining table: It should be square or rectangular. Avoid round or oval shaped dining tables. The dining table should not be attached to any wall.

Location of TV and electronic appliances: Electrical appliances like refrigerator should be in the south-eastern direction. Although we have to be updated with news every minute but television should not be placed in the dining room

Face: The head of the family should be seated at the dining table facing the east. Other members of the family can face east, north, or west, but it is not advisable for anyone to face south while having meals.

Lighting: Lights create positive energy and a relaxed environment. Lighting should be according to the mood and taste of the family. Candles and lamps give special effects to any meal. Ceiling lights should fall vertically and mainly focus on the surface of the dining table.

Sink: This can be located in the northeast corner of the dining room, or on the north or east sides of the room. Water arrangement should be in north-east direction.

The door of Pooja room/ toilet should not open in front of the dining area.

Crockery: If console has to be placed near the dining area for storage of crockery and utensils, it should be on South/West wall of that area.

Very Important: We should serve food to cow, birds and other animals before eating ourselves.

The writer is a Chandigarh-based Vaastu consultant. Readers can send their suggestions/queries at realestate@tribunemail.com. 

NEWS IN CITY
Sushma Crescent launch

Sushma Buildtech launched its latest project Sushma Crescent in Zirakpur recently. The project is spread over 7 acres with premium 3 and 4 BHK duplex apartments and penthouses. The project also comes packed with an exclusive golf putting and chipping range.

"The apartments are designed keeping in mind the privacy of owners and care has been taken to ensure that each unit gets natural sunlight ensuring less power consumption and large windows and balconies for cross ventilation ", said Prateek Mittal, Executive Director of Sushma Group. The group already has projects like 3BHK Sushma Urban Views and Sushma Villas, 3BHK Sushma Elite Cross and 2BHK Sushma Green Vista apartments all in Sushma Square, the most well planned township in Zirakpur. — TNS

Developer speak
Woman power

Making the country’s first all-women housing society a reality for its 49 members is what makes the president of the society Archana Sanghi a pioneer of sorts in the realty scene in Panchkula. The draw of lots for Parvati Durga Housing Society was held at Mansa Devi Complex, Panchkula, earlier this week. In an interaction with Real Estate Archana Sanghi talks about her future plans and how this unique project took shape. Excerpts:

How did you come up with the idea of an all-women society?

The Year 2001 was observed as the International Women’s Year in Haryana when this scheme was launched. I had since long been thinking about the idea of women-centered housing as after all it is the lady of the house who manages the entre household and family. I built upon this dream project and after consulting my husband and a few of my progressive friends decided to take the plunge. Once I had registered the society several women came forth to jopin it. This encouraged me tremendously and I was convinced that I was on the right track.

What about constraints of finance considering that the members were women and many of whom were housewives?

These days housing loans are easy to get and we are very grateful to our local banks viz., the Allahabad Bank, the Kotak Mahindra Bank and the HDFC bank that facilitated our members, at each stage of the process from allotment letter to possession and finally completion of buildings.

What are your plans for the future now that the success of this project is behind you?

Now I am planning a more ambitious project. This is to come up with a state- of- the- art service apartment complex exclusively forwomen. The idea is to ensure a totally safe and secure environment in an aesthetic setting that would appeal to women, especially those who are high up on the ladder of their careers and would like to have a housing unit that would provide them with all comforts of life.

The idea is to come up with apartments that have all the basis amenities besides 24-hour power back up and other latest facilities. — TNS

Realty Bytes
Raheja Developers ink JV with Arabtec

Raheja Developers, Delhi, has inked a $ 204 million (about Rs 1,020 Cr) contract with Dubai- based Arabtec construction company that built the tallest tower in the world, Burj Khalifa, in Dubai and also the landmark buildings like Okhta tower in Russia, Emirates Palace Hotel in Abu Dhabi. Initially, Arabtec will start construction on three of the Raheja projects , Raheja Revanta, Raheja Phoenix and Raheja Srishti.

The Raheja Revanta Project, Gurgaon, will be the first project to be constructed by them which would be one of the tallest skyscrapers in India. It is learnt that these projects in Northern India require specialised technology and manpower quality which was not available with any of the contracting companies in India. Raheja Revanta in Gurgaon will be over 56 storeys with helipads and it will have first of its kind skybrigde with an infinity pool at the 46th floor overlooking the Aravallis. The Raheja Phoenix project will be tallest project in Delhi located at Patel Nagar, Delhi and will have a 54-storey tower with skyclub and helipad. The height clearance for both the building has been cleared by DGCA. Using the latest international state of the art technologies Arabtec will also construct 2800 EWS houses under slum redevelopment PPP project of Rahejas with DDA in a time bound manner of two years. — TNS

Parsvnath ties up with Choice Hotels

Realty firm Parsvnath Developers will foray into the budget hotel segment and has tied up with Choice Hotels International to offer 20-25 properties across the country.

The company’s wholly-owned subsidiary, Parsvnath Hotels, has joined hands with various existing small hotel owners and will refurbish their properties to offer them to Choice Hotels International which will manage them.

“We will launch the first hotel property in Delhi within this month. The property will be handed over to Choice Hotels for management and it will have 40 rooms,” Parsvnath Developers Chairman Pradeep Jain said ealrlier this week in New Delhi.

The company will offer 5-7 more hotels by the end of March 2012, he added.

“After that, we will be inaugurating 10 hotels in every quarter... All the hotels will be having 35-60 rooms each,” Jain said. When asked about the company’s association with the small hotel owners, he said: “We will be having a revenue sharing model with every hotel.”

Parsvnath Hotels is currently developing 12 hotels across the country. These properties will be managed by ITC's Fortune Park Hotels and Royal Orchid Hotels. — PTI