Ambala Realty
Cautious growth
Geetu Vaid

Located 45 km from Chandigarh and lodged on the junction of NH-I, NH-22, and NH-65, Ambala, the city of scientific instruments and a major cloth market of the North, has been on the realty horizon as a promising destination for quite some time now. But in spite of its locational advantage and industrial connect the city's real estate potential remains largely untapped, say industry watchers. With a population of approximately 11,36,784 (as per 2011 census figures), this important district of Haryana is yet to have a top notch infrastructure and this has been the Achilles heel for the real estate growth of the city.

“Ambala is cheap and best and distances are not much so it is an ideal investment destination for end users as well as investors”, says Puneet Kumar from Ambala-based Suryansh Group

Local property watchers maintain that the city's market has seen a lot of ups and downs over the past six-seven years. There was a massive surge in property prices in the city between 2003 and 2005 when investors reaped profits of up to 200 per cent within a short time span making speculators throng the city in huge numbers creating a price bubble. But this led to a massive crash by 2007 when there were virtually no buyers and sellers had to reduce prices considerably to remain afloat. "The price of one marla in some well-heeled HUDA sectors which had touched Rs 2.5 lakh in 2005 came down to approximately Rs 1.25 lakh by 2008-2009", says Brajesh Goel a city-based property consultant, while recalling the crash.

However, the market again warmed up by the end of 2010. But learning lessons from the realty bust of 2007, the investors have, by and large, been cautious and thus even though there has been price appreciation in the past year; it has been slow.

There are some more factors behind this subdued sentiment here as Chaudhary Ram Singh of Rama Estates, says, "As no registeries are being done and sale on power of attorney is also not taking place, there has been some effect of this on the market on the whole as not many deals are being struck now. If the prices have remained subdued over the past few months then this is the main reason."

Prices have shown an upward trend in Sectors 8, 9 and 10 where the current rate is in the range of Rs 21,000 to Rs 25,000 per sq yd. "There has been good appreciation here in the past few months", says Puneet. "Take for example Sector 10, here the price has increased from around Rs 16,000 per sq yd last year to approximately Rs 22,000 at present. So the market is not stagnant here and investors have no reason to worry", he adds.

The city is yet to wake up to the flat culture and this is evident from the fact that two major township projects coming up here by the Vatika and Unitech groups have more plots on offer than multi-storeyed flats. The Vatika group's Vatika City Central project is an 180-acre (approximately) township project in Sector 23 in Ambala City area. The project was launched in 2010 and around 700 plots of 240, 300, 500 and 1,000 sq yd size were on offer in the first phase. The company plans to hand over possession by the end of next year. The launch price was Rs 5,500 per sq yd and at present the price is Rs 15,000 per sq yd, informs the company spokesperson. "As this project is right opposite Sector 10, locational advantage is its key USP as Sectors 8, 9, 10 are the developed sectors where property prices are really high".

Unitech group's township project in Sector 16 near Manji Sahib gurdwara on NH-1 is the other major project in the city. Launched in April 2011, this township will have plotted development as well as independent floors. A two-bedroom independent floor has been priced at around 19.80 lakh here and the current price for plots is Rs 9,500 per sq yard. Connectivity to NH-I and a number of schools in the vicinity add to the appeal of this area for home buyers, says Puneet.

While caution remains the catch phrase for investors and end users, some speculative deals made furtively remind one of the bubble before the crash of 2007. Apart from the approved projects a number of unauthorised colonies are also coming up around the city where prices are considerably lower while the risk factor is high. In some of such unauthorised colonies the rates are as low as Rs 4,000 per sq yd . With promoters promising hefty returns within a short time a number of speculators are heavily into this market and this has lead to an increase in prices of land in areas along the Yamunanagar highway.

Lame policies plague affordable housing

Faulty land policies are preventing development of affordable houses in urban areas, which are likely to witness huge demand for residential premises in the times to come, HDFC Chairman Deepak Parekh said.

"In India land policies have created distortions that have led to inordinate high prices in many key metro cities, Parekh said while addressing a National Housing Bank (NHB) Conference. "In places like Mumbai and Delhi and some large metros, land constitutes 90 per cent of the cost of the house.

If 90 per cent is the value of land, obviously it signifies we have wrong faulty land policies and with those land policies you cannot have a solution for affordable housing," he said. According to reports, the demand for affordable houses has not been met due to various reasons, including inadequate supply of houses as well as absence of credible builders in this field. Parekh said there was no standard definition for affordable housing, but land prices need to be lowered to build low-cost houses. "This is the most challenging aspect. While there can never be a standard definition of what is affordable housing, the bottom line is land prices need to be reasonable for affordable housing to come into supply," he said.

As per estimates, only 30 per cent of Indian population lives in urban area and this is going to go up to 40 per cent in the next decade.

"With urbanisation increasing so rapidly, it is essential to bring more land under urban usage. High land prices result in housing being out of the reach of middle class families. — PTI

Launch PAD
It’s raining luxe projects
Acme Eden Court

Real estate company Acme Builders will develop a luxury apartment complex - Acme Eden Court - in Sector 91 Mohali overlooking the proposed Mohali golf course. Harsh Kohli, a promoter director of the group informed that 250 fully air-conditioned 3BHK apartments in Acme Eden Court have been designed by Dubai-based architectural firm, Archgroup International.

Acme Eden Court is an ultra-modern luxury apartment complex in an area of 6.5 acre in the JLPL township in Mohali. Each apartment which will cost around Rs 1 crore has an additional servant room, branded modular kitchen, split ACs in bedrooms, drawing and dining areas, wooden flooring besides world-class bath fittings and plush interiors. A fully equipped club house with gym, swimming pool, jogging track, badminton court, billiard room, etc., is also part of the project to add to the quality of life of the residents.

The company has tied up with the home loan company, DHFL for easy interest-free finance facility.

Wadias’ Island City Centre

The textiles-to-aviation conglomerate Wadia Group that made a foray into real estate by launching Bombay Realty recently has launched its fully integrated mixed use development project - Island City Centre - in south central Mumbai.

The project will be built over 45 acre of the group's mill land in Dadar East and will consist of luxury residences, service apartments, offices, a five-star hotel, a high street, a premium mall, and an international school.

Bombay Realty will be constructing two residential towers - One ICC and Two ICC.

"The group has accomplished landmark projects across residences, offices, hospitality, retail, industrial and even townships across the country. Bombay Realty, our newest venture will consolidate the group's land bank of over 10,000 acre and develop the same in a progressive manner," Bombay Realty managing director Jeh Wadia said.

The Group has close to 700 acres around Mumbai, out of which 70 acres in the Island city itself, he said.

"With the launch of mixed-use project, we are offering a lifestyle that provides the ability to live, work, play, all at one place. This city within a city, is a gated community and promises its own private roads, an unparallelled security with a world class infrastructure," he added.

The group, through its arm Gherzi Eastern, has been associated with various real estate projects including premium residential, offices, townships, multi-star hotels. It has also undertaken retail and industrial projects. — PTI

BPTP’s Chateau

BPTP Ltd, one of the fastest growing real estate companies in the NCR, announced the launch of its project Chateau. The project will have villas and is part of the company's 126.67 acre integrated township Amstoria in Sector 102, Gurgaon. With Chateau, the company is pioneering the concept of customisable homes, where residents will be given a semi-finished villa, and an opportunity to customise the interiors. As per company spokesperson by allowing customers the freedom to define the interiors of their home as per their own requirements, BPTP is opening up multiple avenues for customers, giving them the sort of freedom of expression that has been absent so far in real estate development. The company is also ensuring that there is no fixed time frame within which customers need to complete the construction work. With a ceiling to floor height of 12 ft. these voluminous homes promise to bridge the gap that has so far existed between fully-constructed homes built by developers and the real needs of their residents.

The company is also offering customers interior packages suited to different budgets and packages, each with a defined set of specifications. BPTP is offering 40 of these unique homes with units starting at Rs 5 crore.

Speaking on the occasion, Amit Raaj Jain, Senior Vice President, Marketing, BPTP said, "BPTP understands that today, a luxury home buyer does not want an assembly line product but something that is unique and individual. After all, for most of us, a home is an expression of our every achievement. Keeping this desire for self-expression in mind, BPTP has launched Chateau, homes where the owner has unlimited power over the internal layout of the house. Though they may be outwardly uniform, every single home will be different internally, making each an individual reflection of the owner's creativity." — TNS

Workplace with a difference

Luxury for a business office is not only its geographical position but also the day to day providing of that entire work ambience conducive to working productivity.

Cosmic Group has launched Cosmic Corporate Park, a high end integrated work and business centre near Yamuna Express way close to the F1 Car Racing track opposite Gautama Buddha University. As per the company spokesperson the theme of this entire project is 'Pamper Yourself while You Work'.

Tax tips
Increase the installment amount for more benefit
S. C. Vasudeva

Q. I have purchase a house and I am a railway employee. I have taken a house building allowance of Rs7.5 lakh @ 9.5 per cent from my organisation and am paying Rs10,600 per month. I have 13 years of service left. Please suggest whether I should increase the amount of installment being paid by me as I can pay more from my salary. Please tell me which is more beneficial for me for saving Income Tax and getting maximum rebate on interest as I am confused.

— A.K Royi

A. It is assumed that the amount of Rs 10,600 p.m. being paid by you represents the amount of interest payable on a loan of Rs 7.5 lakh raised by you for the purchase of the residential house. In case the residential house is self-occupied, you are entitled to claim a maximum deduction of Rs 1.50 lakh towards the interest payable on amount borrowed for acquiring a residential house against house property income. You may thus be able to claim a loss under the head "income from house property" on account of such interest payment and be able to adjust such loss against your salary income.

The aggregate amount of interest payable by you works out at Rs 1,27,200. You can thus increase the installment so that the balance amount of Rs 23,800 also becomes claimable by you. This would enable you to reduce your salary income by the aforesaid sum, which would result in reduction of your tax liability.

Tax liability on NRI son's property

Q. My son was allotted a plot measuring 200 sq. yd by HUDA in 1993 at a cost of Rs 3,60,000. He gave me GPA in 1997 which was duly registered with the sub-registrar with the right to sell the plot, transfer etc. After full payment a conveyance deed was executed in March 2006. My son went to USA in October, 1996 and became US national in July 2009 and has been living there since then. My queries about the aforementioned plot are hereunder:

a) The present cost of the said plot is Rs 60 lakh. What would be his income tax liability payable in India if he sells this plot?

b) After paying the income tax in India can he take the balance amount to USA? Is he liable to file IT Return about the plot in India?

Also clarify whether any tax will be payable on the said amount in USA?

c) The sale proceeds should be deposited in my son's account in India or it could be deposited for the present in my account?

d If my son wants to save income tax then can he buy a plot or flat or house or commercial property (any one) in Haryana or Punjab by investing the amount of Rs 60 lakh or more and by what time?

— N.D. Kapoor

A. Your queries are replied hereunder:

(a) The tax liability on the basis of figures given in the query works out at Rs 9,97,411. The same has been computed on long-term capital gain of Rs 48,41,803. The amount of long-term capital gain has been computed by indexing the cost of Rs 3,60,000 on the basis of the cost inflation index applicable for financial year 2011-12. In case the property is sold after March 31, 2012, the indexed cost may go up thereby reducing the amount of long-term capital gain and the tax liability thereon.

(b) It should be possible for him to remit the net amount of sale consideration (sale consideration less taxes) to USA. He will be liable to file tax return in India so as to reflect the amount of capital gain in the return. The issue with regard to the taxability in USA may please be checked up with a tax consultant in USA.

(c) It would be advisable to deposit the sale proceeds of the plot in your son's bank account.

(d) Your son can save the amount of tax likely to be payable on the gain arising on the sale of the plot provided he utilises the net consideration on the transfer of the plot towards the purchase or construction of a residential house. The purchase has to be effected within one year before or two years after the transfer of the plot. The construction has to be completed within a period of three years after the date of transfer. So much of the amount as is not utilised before the due date of filing the tax Return for the year in which the transfer of the plot takes place, is required to be deposited in a bank under the capital gain scheme account not later than the said date. The amount so deposited can be utiliSed for the purchase or construction of the residential house within the specified period. Net consideration for the above purpose means being full value of consideration received or accruing as a result of the transfer of the plot reduced by any expenditure incurred wholly and exclusively in connection with the transfer. It would not be possible for your son to save tax in case the entire amount of Rs 60 lakh is invested in buying a plot or a commercial property.

Capital gain fix

Q. I had a residential plot allotted from HUDA about three years ago. I sold the allotment letter (for which 25 per cent was already paid by me to the authority) for Rs 10 lakh. Due to ignorance, this amount was not deposited in the capital gains account. However, this amount was deposited by me in a fixed deposit to be used for purchasing a constructed flat. This fixed deposit was encashed within a few months and I paid whole amount for making payment of installment towards purchasing a flat (under construction). My query is that have I fulfilled the requirements for exemption from tax arising on the sale of letter of allotment.

— V.P. Goel

A. The right to allotment of a property would be construed as a capital asset and since it was held for more than three years, the same would be a long-term capital asset. The provisions of Section 54F of the Income-Tax Act 1961 (the Act) require that the amount of net consideration arising on the sale of a long-term capital asset, which is not appropriated by the assessee towards the purchase or construction of a residential house before the date of furnishing the return of income under Sub Section (1) of Section 139 of the Act, shall be deposited by the said date in an account in any bank or institution as may be specified and utilised in accordance with any scheme which the Central Government may frame by notification in the official gazette.

You have not indicated the due date for the filing of Return of income in your case. In case the due date had expired and the deposit was made thereafter, you have not fulfilled the condition required under Section 54F of the Act and, therefore, you may not be able to claim the exemption in respect of the capital gain arising on the sale of the allotment right. In case the due date of filing the Return in your case had not expired and the amount of consideration of Rs.10 lakh was paid before such date for the purchase of a residential flat, you would be entitled to claim the exemption from capital gains tax in respect of capital gain arising on the sale of the allotment right.

Ground Realty
Material matters
Jagvir Goyal

So many materials are required for the construction of a house that sometimes, sufficient time is not available to make the required survey and select the right material at the right cost. Even big projects may not be requiring as many different materials as a house requires. It is, therefore, always better to prepare a list of all the materials that will be required with the progress of construction. This list somehow keeps reminding the house owner to make the necessary exercise well in time to choose the material, its source or supplier and to assess its cost. Let us have a look at the materials required during construction of a house:

Basic materials: The basic materials required for the construction of a house are: bricks, cement, steel, coarse aggregate, fine aggregate or coarse sand, fine sand and brick bats. Binding wire can also be placed under this category as laying and binding of steel reinforcement is not possible without binding wire. One should make the necessary exercise to finalise the sources and rates of these materials as these shall be required throughout the construction of the house.

Sanitary items: Pipes are required to be erected in the walls for soil, waste water and rainwater drainage as the masonry work progresses. The sanitary items include pipes of 4 inch, 3 inch and 2 inch diameter, bends, P traps, floor traps, trap covers, collars, tees, tail pieces, solvent or rubber gaskets in case of using PVC pipes or caulking lead in case of using CI pipes. In addition, the gully traps with lids, stoneware pipes, inspection chamber covers are required.

Sanitary fittings: At a later stage, when the house is nearing completion, many types of sanitary fittings are required. These include water closets, their covers, flushing cisterns, wash basins, showers, shower cubicles, bottle traps, mixers, faucets, pillar cocks, stop cocks, taps, looking mirrors, soap dishes, towel rails, coat and hat hooks, bathroom cabinets, glass or acrylic shelves below mirrors, shower arms, diverters, cockroach traps, pull type cloth drying cords, CP wastes and plugs. As there is a huge variety of fittings available, making a final choice for each item takes a lot of time and the market survey should be done well in advance.

Water supply items: Water supply arrangement for the house requires water supply pipes which may be of GI or PVC or composite material or stainless steel. The pipes are of many diameters, main quantity belonging to ½" and 3/4" diameters. In addition, a number of fittings called 'specials' are required. These include elbows, tees, sockets, unions, reducers, reducer elbows, nipples, plugs, bushings, caps, couplings, ball valves, gate valves and reducer couplings. Each of these specials is of different diameters as per requirement. In addition, water repellant paint is used to paint GI pipes to avoid the effect of salts released by the bricks these days. Water storage tanks and non-return valves are the additional items for the rooftop. Electrical items: The electrical items include PVC heavy duty conduits of various diameters to be embedded in the walls, heavy duty small and large bends of corresponding diameters, switch boxes of various sizes, wires of various sizes such as 0.75 mm, 1.5 mm, 2.0 mm, 4 mm, 6 mm, 10 mm and 16 mm, junction boxes, steel wire, insulating tapes, ceiling roses, MCBs, ELCBs, modular switches, sockets of 5 amperes and 15 amperes, two-way sockets, TV sockets, Fan step regulators, bell switches, call bells, fans, lights, tube-lights, fan hook boxes, light boxes, sheets, exhaust fans, gate lights, lawn lights, earth fitting items, air conditioners, chandeliers, conduits for phone wires and pole switches. The quantity should be worked out carefully and negotiations with a fixed retailer should be held as heavy discounts in the range of 35 to 45% are often offered on the MRP of electrical items.

Woodwork items: Lots of woodwork is involved in the construction of a house and this is perhaps the most time consuming item. Main item for woodwork is of course, the wood which needs to be procured after careful calculation of the quantity required. In addition to the wood, plywood, particle boards, wire mesh for doors, sunmica, toughened glass, float glass, blind glass, ply board, fevicol, holdfasts, corner straps, hinges, screws, nails, putty, black paint for door frames and anti-termite treatment solution such as Biflex TC are required.

Joinery fittings: Joinery fittings include door and window handles, tower bolts of different sizes, mortise locks, sliding bolts if to be provided, door stops, gate hooks, drawer runners, magnetic catchers, drawer locks, cupboard hinges, door closers, door springs as the main items. In addition fittings for aluminum doors and sliding doors are required. There is a vast range of joinery fittings available and one has to decide their provision by keeping the cost factor in view.

Kitchen items: In addition to the sinks, hobs or burners and chimney, the kitchen requires many types of baskets, cabinets, trolleys, corner storage units, tall unit, trays, cane baskets and stands. Drip tray, a water filter, a microwave or OTG, fold-up pantry and trash masher are some other items normally provided in the kitchen.

Wall and flooring materials: The items required for final finish of lower portion of walls and the floors are marble, granite, ceramic tiles for walls, wooden flooring, if to be provided in the bedrooms, vitrified tiles, courtyard tiles or Kota stone and anti-skid tiles for bathroom floors.

Finishing materials: The finishing materials include plastic emulsion or oil-bound paints for interiors, water proof wall papers for some walls, putty for wall finishing, POP, black paint for sunken areas of toilets, exterior quality paints, stones or other finishes for external surfaces, sand papers, primer, paint, sealer and polish for woodwork, any tiles required for front elevation of the house, paint and primer for grills, main gate and any other steel work.

Miscellaneous items: The miscellaneous items include security items such as CCTV, Burglar alarm system, door phone etc; anti-termite treatment material for the foundations and floors, water proofing compounds for adding to concrete, cover blocks, water proof paint for the basement walls, terrace and plinth beams; window grills, main gates, balcony railings, staircase railings, spiral ladders, curtain rods, POP for ceilings and false ceiling materials.

It is not only interesting but useful to maintain a complete list of all the materials that you keep on buying as your house progresses. On completion, it may help you in developing a fair idea of the cost of material components along with their quantity estimates.

— This column is published fortnightly

Realty bites
Indian developers jazz up Oman expo

About 40 real estate developers from India are taking part in the seventh IPRO-India Property Show being in Muscat. The event is showcasing properties in Jaipur, Mumbai, New Delhi, Navi Mumbai, Kolkata, Kozhikode, Ambala, Lucknow, Bhopal, Mysore, Mangalore, Nasik, Pune, Mohali, Gurgaon, Kochi and Rewari, organisers said. Some developers taking part are Nirmal, Jaypee, Vartika, Brigade and Kumar.

This year's exhibition has more cities on the list compared to its earlier editions.

Sayyali Chawla, the managing director of Pan-Eastern T&E Worldwide, said the exhibition will cater to non-resident Indians (NRIs) residing in Oman.

Both residential and commercial properties like developed plots, land, apartments, penthouses, row houses, villas, shops, retail and office spaces are on offer.

Properties ranging from as low as Rs 400,000 to Rs 100 million are available. Another attraction of the show this year is HDFC's on-spot loan approval offer. J S Mukul, the Indian Ambassador to Oman inaugurated the event on Thursday. — PTI

Armani to design interiors of the world's tallest residential tower

Giorgio Armani and Lodha Group, one of India's largest real estate developers, have entered into an exclusive partnership to design the residences and common spaces of the World Towers in Upper Worli, Mumbai.

The World Towers comprise World One, the world's tallest residential tower at 117 storeys, and World Crest, one of India's tallest towers soaring over 700 ft. The World Towers will have exclusive three and four bedroom World Residences; lavish 'World Villas', with private pools; and the luxurious duplex 'World Mansions' with private pool, gym and personal elevator.

Commenting on his association with The World Towers, Giorgio Armani, President and CEO of the Giorgio Armani Group, says: "The World Towers is an all-encompassing undertaking that transforms our notions of architecture and technology, and is geared to create a new, highest-possible aesthetic experience. It is the result of research with which I have been deeply involved; every solution, from furniture to the finishes, has been designed to provide intimacy and create a sense of relaxation and wellbeing. These are qualities that the culture of the place has demonstrated to me - through a profound exchange of experiences - it prizes highly. So I wanted to give this incredible city the style of Armani/Casa with a special quality: a play of light. After my experience in this extraordinary country, I can say I am leaving changed, somehow."

The World Towers will offer an exclusive lifestyle experience thanks to the unique curved shape of the buildings, with residents able to enjoy marvellous 360° views of the entire city, including the Bandra Worli Sealink, the Mahalaxmi Race Course, and the Arabian Sea. — TNS

Heavy-duty flooring

Pergo (Sweden), has recently launch the world's toughest laminate flooring with Class34 certification. This new offering is being projected as the perfect choice for heavy traffic and commercial areas. As a part of technological advancement Pergo has new feature for reduction of sound with its professional soundbloc technology. "The Class 34 Decors of Pergo is cut out for heavy duty work and performance in the most demanding public areas and in keeping with that Pergo offers a life time residential triple guarantee towards surface wear off, color fading and there will be no stains on floor. No matter what your living space or work space represents, flooring plays an important role from both an aesthetical and functional point of view. We offer a solution that combines these two criteria without any compromises" said Naresh Maheshwari, CEO, Pergo India Pvt. Ltd.

One of the patented feature is the "Triple Protection" system or TitanX advanced technology with multiple armed overlays of aluminum oxide spray known to be the second hardest substance after diamond which provides the floor with incredible wear resistance. Another unique feature is the patented "Scratch Resistant Surface", which is developed for highest demands in commercial and residential areas. Further, due to its unique "Multi Layer Build-up System" it is a high-impact resistance floor that meets the needs for (various applications) the toughest requirements.