On a quest for quality lifestyle 
There is a increased demand for premium housing and good living conditions in these two business towns
Ashok Sethi

PRICE TREND: Negative at the moment, and prices are likely to dip in near future. The prices may dip by up to 8 to 10 per cent in the next few months. Note: Prices are indicative only and may vary according to the location and size of the residential areas. Source : Nirmal Infrastructures E.Mail:nirmalinfrastructures @yahoo.com

Traditionally it is the pulse of the metros and big cities that is considered to be an indicator of the health of the real estate sector of the country. But at the same time it is not prudent to completely overlook the vast number of tier II and III cities and small towns as these not only hold the key to future growth but also add depth to the hi-rise golden edifice of the realty market. As Punjab is among the top prosperous states in the country, the demand for a luxurious lifestyle has always been there in major cities resulting in several residential and commercial projects from major national developers being launched there. Exposure to a luxurious lifestyle and high disposable income has now ignited this thirst for premium residential products even in the hinterlands of the state. So if Ludhiana has its palatial bungalows and villas and mega townships, demand for these can be seen brewing in its neighbouring towns like Khanna and Mandi Gobindgarh also.

The steel city of Punjab , Mandi Gobindgarh, and India’s largest grain market, Khanna, are home to a substantial population in the high-income bracket and they are looking for a lifestyle to match that in the bigger towns in the state.

Though going by the sale figures and prices, the property market in these towns has nothing much to boast about at present as the prices have not seen a substantial movement in the past six months or so, most of the property players in the towns admit the fact that the demand for premium housing embellished with the latest amenities was surely on an upswing here. The congested areas in the cities that have a tattered civic infrastructure have made developers in organised as well as unorganised sectors offer dream houses that promise quality infrastructure green areas, power and water backups and other facilities.

Having a population of around six lakh and an estimated 200 plus HNIs, Khanna and Mandi Gobindgarh have caught the fancy of developers both big and small. Last year Delhi-based Ambuja AIPL group had launched an 88-acre fully approved township project, Dream City, in Gobindgarh. Some other townships in these cities include New Khanna City, Suncity, Friends Enclave, Sunny Enclave, Silver City, County Homes, Sunder City, Gill Colony, Green Park etc. “The demand for approved colonies is high here as most of the business families want to invest in authorised colonies”, says leading businessman Ashok Mittal. Mittal, who has been scouting for a suitable property, said he would invest only in approved areas that have proper roads, green areas and proper security rather plan a house in an unapproved colonies.

A large section of business families in these towns are looking to purchase big plots for constructing swish villas and the developers are offering plots in the range of 1700, 1000, 500, 300 and 200 sq yd.

With industry and business being the buzz here, these cities have a huge potential for a quality business centre. The gen-next feels that this major trading and business hub needs high quality office complexes to meet the international standard needs of their businesses. “This area requires business and recreational centers with parks as we are unable to get similar facilities in our present localities”, says Vishnu Goel, a local businessman.

Although the government is yet to give a major boost to the development of this area, it is the private builders who are pitching in to give a boost to the realty sector and meet the growing requirements of the business community living here. 

real issue
Will homes get cheaper?
The Finance Minister wants banks to force developers to reduce prices, but developers’ lobby is not ready to give in

The Finance Minister P. Chidambaram's recent advisory to banks to force builders to reduce the prices of residential units rather than sitting on an unsold inventory, has brought a lot of cheer to the prospective home buyers. The FM told bankers at a meeting recently that recovery process for the construction loans that had matured and needed immediate restructuring should be made stringent forcing the builders to reduce inventory at a lower cost. He also mentioned that home loan borrowers should demand timely possession as a large number of projects had been delayed.

As per official estimates around 5 lakh flats are lying vacant and these many are under construction. Banks have lent over Rs 1 lakh crore to the home loan segments. But despite the cheer among the buyers, most of the bankers are of the view that it would be difficult to compel the developers even though the prices must come down for the betterment of the economy.

The real estate sector all over the country has been plagued by low sale volumes over the past few months as buyers have not been forthcoming in finalising deals basically due to high prices and high home loan interest rates. The developers, too, have been in an unrelenting mood as far as the price factor goes in spite of the slackening demand. While the FM is right is pressuring banks, builders have historically been tough nuts to crack. Reacting strongly to the FM’s comments, realtors’ body CREDAI has maintained that it is unrealistic on the part of the government to expect developers to cut housing prices and has demanded that steps should be taken to boost the supply of affordable homes.

In a statement issued earlier this week, CREDAI termed the reported figure of unsold housing stock of 5 lakh across the country as unrealistic. “We ourselves have asked member developers to start selling even at rock bottom prices about three months ago since nobody would like to block his capital by sitting on unsold stock that too in a very high interest regime. On the one hand, banks are discouraged to lend to real estate developers while on the other cost of fund from non-banking sources is prohibitively high,” the statement added

Referring to concerns over the prevailing high prices of houses, CREDAI national president Lalit Kumar Jain said, “It is akin to the typical egg-and-chicken scenario. The general sentiments in the market and economy are preventing buyers to move and developers are unable to bring down the prices because of very high cost of construction. Hence the demand-supply mismatch continues with the housing shortage crossing the 26 million mark. The other key factors that add to the high cost of realty are the ever increasing local municipal taxes, ready-reckoner rates for deciding stamp duty, cess and even VAT.”

Talking about the financial difficulties plaguing the sector, Jain said, “The current size of the real estate industry is estimated to be about $180 billion with a CAGR of 18-20%. For the past two years, however, liquidity in general and access to bank credits in particular has been restricted due to variety of risks. Therefore, just as any other sector of economy, the real estate sector has also found it difficult to tap bank resources, bank credits. It estimated that out of the huge investment in the organised real estate industry funding by the commercial banks is negligible. Banks and finance companies are still wary of financing real estate sector as RBI always keeps it in the negative list.”

CREDAI has also requested the Indian Bankers Association (IBA) to involve the developer community in the banks’ advisory committee on housing, mooted by the FM. — TNS

tax tips
Can I claim deduction for paying loan in father’s name?
S. C. Vasudeva

Q. I am working and am currently living in a rented accommodation. My parents are living in a different city. My father owns a house which was constructed by him from his savings. He had also taken a home loan from PNB to construct this house. My income is pretty high and I am paying tax at the highest managerial rate of 30 per cent. My father's income is below the taxable limit. Can I get the deduction of EMI for the loan taken by my father for which payment is being made by me? — Kamlesh

A. Section 80C of the Income-Tax Act 1961 (the Act), deals with the deduction of the principle amount paid towards the repayment of loan borrowed for the purposes of acquisition or construction of a house. The said Section provides that in computing the total income of an assessee being an individual, there shall be deducted an amount paid in the previous year towards the repayment of loan borrowed from a bank for the purposes of purchase or construction of a residential house property, the income from which is chargeable to tax under the head 'income from house property' or which, if it had not been used for the assessee's own residence, would have been chargeable to tax under that head. The aforesaid Section, therefore, does not permit such deduction to be allowed to a person other than the assessee, which in this case would be your father. In case you want to avail the benefit allowable under Section 80C of the Act, you will have to be the owner of the house in respect of which the borrowing has been made for its acquisition or construction.

Deposit money in capital gains account

Q. I sold a 250 sq yd residential plot in an urban area in July 2012, for Rs 12 lakh. I had purchased this plot in 2001 for Rs 2 lakh. The sale consideration has been deposited in my savings account. Meanwhile, recently, I have promised to purchase another 250 sq. yd plot for Rs 7 lakh. I intend to use the entire sale consideration from the sale of the first plot in purchasing this plot and constructing a house on it. What will be my tax liability in this case? — Narinder Singh

A. You should deposit the entire amount of net consideration i.e. Rs 12 lakh realised on the sale of plot, less any expenditure incurred wholly and exclusively in connection with such transfer, in a bank account under capital gains scheme before July 31, 2013, (being the due date for filing IT Return for individuals who are not subjected to tax audit). The amount so deposited can be utilised for the construction of the house which you intend constructing on the newly acquired plot. In case you take the step outlined above, you would not be liable to pay tax on the capital gain arising on the sale of the plot.

The amount of capital gain and tax exigible thereon cannot be computed as the cost inflation index for the year 2012-13 has not been notified so far and, therefore, the taxable amount of capital gain can't be ascertained. It may be added that the issue as to the taxability of capital gain would arise if you do not either utilise the amount of net consideration towards the purchase or construction of a residential house before July 31, 2013 or deposit the un-utilised amount of net consideration under capital gains scheme before the aforesaid date. The amount so deposited should be utilised for the construction of the residential house within three years after the date of transfer so as to claim the exemption of the capital gain from taxability.

How should I invest the un-utilised sale proceeds?

REALTY GUIDE
How many time will I have to pay revised EDC charges?
B K Sanghi

Q. I had booked a residential plot in a private colony in Kurukshetra (Haryana) in 2008, at that time the builder had charged BSP + EDC @ RS 910 per sq. yd.(with a clause in plot buyer agreement to charge difference of EDC, if revised by the government at a later stage). After paying full installments, the builder, in February, 2011, informed me that HUDA had revised the rate of EDC, so I will have to pay EDC @ RS 1440 per sq. yd. I paid the difference of EDC to the builder and a Conveyance Deed was executed in my favour in June, 2011 and Stamp duty was also paid on full EDC amount paid to the builder. However, in this deed there was a clause that if at a later stage, EDC/IDC was revised again by the government, then it shall be payable by the allottee and the amount paid shall be treated as unpaid sale price. Now in July, 2012, I have received a letter from that builder mentioning that HUDA has revised EDC rate so, additional EDC @ Rs 1100 per sq yd is payable, which is in addition to the EDC paid already and that if I fail to pay the said amount then legal action will be taken against me. So please guide me on the following:

1. Whether HUDA has really revised EDC rates, as claimed by builder

2. Is the builder justified in claiming the enhanced EDC from me after a Conveyance Deed has been executed in June, 2011 after paying all dues at that time.

3. Why does HUDA revise EDC charges in respect of a plotted colony again and again, as it is the second revision by HUDA? How many times will we have to keep paying the revised charges?

4. Do I have to pay these charges again and again due to the builder's fault in not completing the project or not obtaining the completion certificate from government authorities? Can the builder pass on the burden to the buyers, who have got the plots transferred in their name after paying full amount as demanded by the builder at that time?

5. Please let me know the EDC charges of HUDA in respect of Kurukshetra in October, 2008, in February, 2011 and April, 2012 and the formula on the basis of which these are divided among plot allottees.

6. Can the builder claim EDC charges if HUDA again revises these in future? — R.K. Gupta

A. The external development charges (EDC) are levied by the Town and Country Planning Department and not HUDA. The department can enhance the EDC charges if more compensation is awarded to the farmers whose land was acquired for the housing project. It will also depend on the agreement between the department and builder regarding the terms and conditions on which the land was transferred to the builder.

All depends on the agreement that you have entered into with builder. If the terms of the agreement are loaded against you then you will have to pay the enhanced EDC. Moreover, the enhancement of the EDC will also depend on the agreement between the builder and the department.

It is very much possible that the enhancement is due to the late start of development work by the builder. A close study of the builder-department agreement will reveal the truth.

You can get an accurate detail of the EDC charges for Kurukshetra by filing an application under the RTI to the department concerned as the EDC charges are different for different locations.

Practical footprint
Small can be capacious
Sapna Aggarwal

Space constraints can pose a major hurdle in having impressive interiors, here’s how a West Delhi home was remodeled with the use of smart space-saving techniques and innovative touches to become a stylish and spacious abode.

The journey involved converting two simplexes into a duplex in West Delhi. The house, which was almost in ruins with small cubicles clustering the space, had serious space issues as the owners wanted a lot more from less.

The challenge
The owners, a working couple had an extensive wish list:

n The demand was for a separate drawing room, lobby, bar, kid’s room, mother’s room, guest bedroom, master bedroom and an open kitchen.

n  The owners required connectivity among the rooms so that no area was isolated or detached.

n  Best use of sunlight was required so that house was well ventilated and well lit.

n  A colourful house having an element of joy was required. As the couple used to travel a lot and had a lot of collectibles, so they needed ample place to showcase these them.

n  Kitchen should not to be a secluded area for the lady of the house.

The game plan
A small area had to be converted into a visually spacious and aesthetically soothing home using problem-solving techniques. Inputs from a structural engineer and 45 days of planning led to the blueprint of an amazingly beautiful duplex with all rooms having big windows, opening in common lobby.

Some of the key space-saving tricks that paid aesthetic dividends included:

n  All rooms had plasma units as a thumb rule as TV depths could not be accommodated.

n  Maximum use of glass was made to divide areas and this enlarged the space visually. Lighter tones on walls all over the home tied the house in harmony and laid symmetrical base for designs to be highlighted.

n  The colour palette was restricted to lighter hues on the main frames and highlighted with accessories with stark colours.

Drawing Room
Curved design given on the wall creates place for souvenirs and the same design is repeated on the ceiling to give symmetry. The shaft took the shape of niche for souvenirs. The sofas in neutral colour placed near the wall give the room a spacious look. The bay window was doubled up to make a sitting.

Kitchen
Since there was no place for a separate dining room, the kitchen accommodated a breakfast counter as the working couple had little time for formal breakfast or dinner. It was also kept open so that guests could freely move inside and even help in cooking. It was highlighted with a tint of texture paint to get the sunny side inside.

Master bedroom
As the room had no single wall to place the bed, bed has been placed in front of a bay window with the bay window serving as back highlighting. Small niches were created to take care of collectibles. The toilet attached with this room has dressing and bathing area separated by glass to make the space look bigger visually.

Mother’s room
The mother’s room according to her liking had storage till full height. After changes the small room accomodates a queen-sized bed, besides a small mandir as desired by her.

Kids room
Beds were designed to cater to two kids with storage in beds which can be lifted hydraulically to enable the kids to keep and take out things on their own. The front unit was a blend of storage-cum-study-cum-sitting-cum-display all in one, designed to cater all the needs of the children. Veneer used was a naughty blind to add colour to the room. Entry to bathroom was designed in stained glass to give depth to the room. Even the bathroom had clear glass door which was switch-able to opaque to enhance the depth.

Bar
The area below staircase was designed to make a bar with a bar counter, wall-mounted glass shelves to keep bottles and a small storage space behind it. 

Lobby
The small area next to the staircase on the first floor was remodeled as a lobby. Since any furniture piece would have made it look heavier, so low sitting with cushions were given to this area. Staircase had glass railings to visually enlarge space and make it look like one unit.

The writer is Director, Ansa Interior

Decor trends
Less is more, not a bore 
NUTAN SEHGAL

In this age of high property rates, small homes and immense congestion, making that confined space you call a home seem more spacious is a mammoth task. However a bit of creative energy and decorative talent can do wonders and make your house look neater and lighter.

TRENDY MINIMALISM: New minimalist techniques make your pad look classy and spacy

The latest trend is empty spaces and stripped-down furniture. This clutter-free and non-chaotic style is what separates a classy home from a messy one. Where less is more and not a bore!

To make small look beautiful you require a minimalist approach in decorating. So gather your creative energies and throw all preconceived decorating notions out of the window. Consider your pad as your canvas.

Interior designers say minimalism is more than just a theme for your home. It is an organised and uncluttered state of mind, a form of self-expression that goes beyond just furnishings. The idea is to create something simple, clean and stunning.

What you require is natural and artificial light, stark walls and some well chosen contemporary yet elegant pieces of furniture and voila, you have a room to die for.

In fact, one striking piece of furniture or a well-chosen lamp can have maximum impact whereas it would be lost in a more complicated setting.

Textureless walls
Designers suggest that white, textureless walls and ceilings that are deliberately spartan create a reflective expanse. Crisp, classy and contemporary furniture, innovative lamps, small side tables and paintings make a room look stunning and spacious.

The furniture should be in clean straight lines and preferably resting on legs of steel. Side tables, centre tables or consoles should preferably be glass-topped to give the room a lighter look.

Light plays a crucial role in a minimalist setting as it brings warmth and personality. Concealed in-floor and overhead lighting can illuminate your room in a captivating way. Soft shafts of light from the floor may be used to cast a glow on the walls and ceiling.

In the living room embedded lights in the ceilings give the impression of vastness, as do large openings in the walls (French windows) instead of smaller windows or doors. Remember to keep these open to let the natural light stream in and add life to your room.

Colours greatly add to the sense of space. Light coloured upholstery, preferably in shades of white and cream, may be just what you are looking for to create an illusion of space.

Burst of colours
If deep colours are your style then you may place some carefully chosen pieces of light furniture to provide bursts of colour and a visual focus against a stark background. Another great idea is to have stand-alone arrangements with a lot of empty space.

Interior decorators say that minimalism simply means subtraction. Edit your mess without losing your style. Over the past few years this style has caught on in the country though it is yet to transform into a raging trend. However, they add that people will soon feel the need to assess their space and how they want to use it.

By understanding the essence of modern design you can transform your home into a simple yet luxurious, minimalist retreat. 

MINIMALIST TIPS

n  Stick to the safe neutrals--white, cream or light gray on walls.

n  Have a tiled floor that stays clean and looks spacious.

n  Do not clutter any part of the room. Have plenty of place to move around.

n  Use light furniture that has steel legs.

n  Have glass-topped tables.

n  Try and have a stand-alone arrangement

n  A large French window in a small room will give it an illusion of space.

n  Good lighting plays a vital part in minimalist surroundings.

n  Have a couple of innovative lamps at strategic corners.

Realty Bites
Spira luxury condos in Noida

Supertech Limited recently launched Spira Residences at its Supernova project located in Sector 94 Noida. Spira is a part of Supernova and is India’s tallest mixed-use located project. The company is constructing this iconic tower with the use of ‘Jump Form’ technology which is being used in Delhi and NCR for the first time.

Spira stands at a height of 300 metres and comprises 80 floors, 13 out of which are dedicated for the residential apartments. Fully furnished, vaastu friendly units spanning over an area of 3,200 sq. ft. to 4,000 sq. ft. are priced between Rs 5 crore and Rs 7 crore.

Spira comprises ultra modern, high-end luxurious residences, suites, serviced apartments, a five-star hotel, premium and luxury malls, futuristic offices and ultra luxurious condos topped off by a world class restaurant and bar. According to Mr. R K Arora, Chairman & Managing Director, Supertech Limited, "we would take all the precautionary measures in construction of Spira to ensure the safety of its occupants as it falls in seismic zone IV and is one of the tallest buildings in India."

Tata realty’s Rs 1700 cr investment plan

Tata Realty and Infrastructure Ltd (TRIL) proposes to invest over Rs 1700 crore in two to three years for various projects in the country, including Rs 550 crore in Kochi for a premium waterfront residential property, ‘Tritvam’, at Marine Drive.

Apart from Rs 600 crore for developing roads, TRIL, a 100 per cent subsidiary of Tata Sons Ltd, would also invest Rs 180 crore in Logistics and Rs 160 crore in developing real estate part of hotels, Sanjay G Ubale, the company’s Managing Director and CEO, said recently.

On 'Tritvam', he said five towers with a total of 468 apartments would be built on about 8.44 acres.

The project with a total development area of 1.18 million sq ft, would have 3, 4 BHK spacious duplex flats with various amenities like a 13,000 sq ft club house, squash and tennis court, jogging track, yoga studio, swimming pools with pool decks and cafes.

Piling for the project is almost complete and is expected to be ready by December 2014.

Information provided by developers