REAL ESTATE

 


The state level Institute of Hotel Management on Delhi Road area watch: rohtak
Ready for the boom

There’s no denying the fact that Rohtak, also known as the CM city, has seen tremendous growth of infrastructure over the past few year. But the growth of the real estate sector so far has not been able to keep pace with that of the infrastructure here.

The state level Institute of Hotel Management on Delhi Road

Firm footing
The Rural Development Ministry’s proposal to amend the century old Registration Act was cleared by the Union Cabinet recently. This move will ensure transparency in deals especially with regard to title of property. The Bill to amend the Registration Act,1908 for calculating land values has given a firm footing to homebuyers. The amended Act will make it difficult for the developers and builders to fleece buyers with false promises.

NCR office space absorption dips
Office space leasing fell by 25 per cent during 2012-13 fiscal at 5.8 million sq ft due to uncertainties in the global economy and slowdown in IT/ITeS sector, global property consultant Knight Frank said recently. “The NCR office market showed steady absorption levels in H1 FY13 followed by a dip in H2 FY13. The city’s office market clocked absorption of approximately 5.8 million sq ft during FY13, falling short by 25 per cent compared to FY12,” Knight Frank said in a report.

project watch
Rate check

An important part of understanding the price ups and downs in the real estate market is the “ready reckoner rates”. Ready reckoner rates for each area in city are defined by the the state government.

Ground Realty
Plan an impressive front elevation

The front elevation is considered as the most striking feature of a house. So let’s have a look at some aspects that help in creating a beautiful front elevation of a house:
The features

Once the house plans are finalised, the doors and windows, their projections, the porch, the railings, the wall surface area available, the balconies, the terrace and the verandah become essential features of front elevation. Their sizes, materials, edges, angles and appearances are to be planned to lend best effects to the front elevation. Additional features such as huts, canopies, columns, chimneys, slopes, slots, slits and pergolas are now added to make the elevation look unique and attractive.

REALTY GUIDE

Realty bites

launch pad
Urban Young in NCR

The Cosmic Group has recently launched an innovative residential project — Urban Young — along the Yamuna Expressway. The new project will offer serviced residences to the young urban generation. The facilities and amenities in the project have been designed and shaped by keeping in mind their requirements, desires and wants. 

tax tips
S. C. Vasudeva email your queries to realestate@tribunemail.com ...


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area watch: rohtak
Ready for the boom
The real estate market in Rohtak is not in the boom mode at present but infrastructure development has prepared the pitch for a booming realty scene 
Bijendra Ahlawat

There’s no denying the fact that Rohtak, also known as the CM city, has seen tremendous growth of infrastructure over the past few year. But the growth of the real estate sector so far has not been able to keep pace with that of the infrastructure here.

The city has a population of six lakhs and according to real estate experts the recent spate in the number of educational institutes besides a better road network will soon give a boost to the property market here. The scenario here, appears to be similar to that in the neighbouring areas of the NCR. While the property rates in residential segment have remained stable, it is the commercial segment that has seen some appreciation and a consistent growth in the past couple of years. Some of the growth drivers in the city are:
The newly built byepass ring road near sector - 6 , Rohtak
The newly built byepass ring road near sector - 6 , Rohtak

Civic infrastructure

Connectivity and smooth flow of traffic have improved substantially with as many as 13 flyovers planned in the city. Most of these flyovers have either been completed or are likely to be completed within the next couple of months. “This appears to have created a kind of record as till a few years back Rohtak was like any other town in Haryana with its share of traffic woes on choked roads and congested level crossings. But now the traffic movement has become smooth due to these flyovers and ROB’s in the city and this has made Rohtak a favourite destination for those looking for employment opportunities from the nearby areas,” claimed Yoginder Singh Dahiya, a Rohtak-based advocate.

This fresh influx of people has surely increased the demand for quality housing and real estate, he adds. “The decision of removal of the railway track to Gohana and Panipat route will also improve the movement of traffic on the level-crossing on Delhi road at two places that are traffic bottlenecks at present”, said Manvender Singh, a Professor working in one of the city institutes. According to him these are perhaps the only two such spots where there was a level-crossing as the authorities have already solved this problem at almost seven other places in the past few years. This measure, he said, had resulted in boosting the real estate prices in the town which were very less till 2005.

Educational infrastructure

The construction of several educational and professional institutes over the past few years is the other factor that according to experts will drive the demand for housing and prices upwards.

The presence of a number of educational institutions here has already increased the demand for residential plots in posh sectors”, says Parminder Kadian, a local property consultant.

The institutes that have come up and have started functioning include the prestigious national-level IIM, which is presently functioning from a rented accommodation on the Maharshi Dayanand University campus. Its own campus is under construction at Sunarian village about 15 km from the city. The other institutes that have come up here are: a state-level Institute of Film and Television, state Institute of Architecture, Institute Art and Design and Institute of Urban and Rural Planning in Sector-6, besides the state-level Institute of Hotel Management located near the famous Tilyar lake complex. “Admissions and classes for various courses of these new institutes have already started”, claimed an official. The shifting of the ITI and the proposal to construct the divisional-level centre of the Haryana Institute of Public Adminstration (HIPA) has also brought the focus on the growth of educational infrastructure here.

Price rise

According to Kadian while several new sectors have come up in the past about eight years , the move of the authorities to construct a ring road around the outer limits of the city has propelled real estate growth substantially and it was the main reason behind a steep rise in the average rates in a majority of the developing sectors. The prices have climbed to between Rs 18000 and Rs 25000 per sq. yd.

Currently, the prices in a majority of the developed sectors are between Rs 30,000 and Rs 60,000 per sq. yd depending upon location of the property and the sector. He said the ring road, which was perhaps the first such concept in the state, would ensure the movement of heavy vehicles outside the city limits and help in maintain a smooth flow of traffic on the city roads.

Problem areas

Parallel growth of unauthorised colonies, however, continues to plague the realty market. Despite the fact that several sectors have been carved out by HUDA in the past decade, the growth of unapproved colonies has been a constant feature. “This is primarily due to some lacunae in the policy of the state and district administration”, claims Parveen Kumar, a local real estate expert. He said, “While the double standards in allowing the registration of land and plots had been the main reason, the ban on registry of plots in private colonies by the authorities concerned had also resulted in a huge gap in demand and supply due to high rates in the developed and authorised colonies. The fate of thousands of residents of as many as 37 colonies, who are awaiting regularisation, has been hanging in balance as there is no clear cut policy in place in this regard. The state government has not taken any action in this regard, he added.

“Delay in handing over the possession of plots in the sectors developed by private builders has also led to resentment among thousands of applicants who had deposited up to 95 per cent of the cost”, he added.

On the other hand, the prices of commercial property have risen sharply in comparison to those of the residential plots in the town, he said.

Property Peek

Prices in Rs/ sq yd

Sector 14, Rs 60000 to 70000

Sector 1, 2,3,4, Rs30000 to 45000

Sector 5, Rs 35000 to 45000

Model Town, Subhash Nagar, DLF, Civil Lines, Mansarover Park, Vikas Nagar, Rs 50000 to 80000

Commercial rates along the main Delhi Road, Sonepat Raod, Civil Raod, Rs 100000 to 200000

Other authorised colonies, Rs 20000 to 35000 

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Firm footing
The Bill to amend the Registration Act,1908 has given a firm footing to homebuyers
B.K. Sanghi

The Rural Development Ministry’s proposal to amend the century old Registration Act was cleared by the Union Cabinet recently. This move will ensure transparency in deals especially with regard to title of property. The Bill to amend the Registration Act,1908 for calculating land values has given a firm footing to homebuyers. The amended Act will make it difficult for the developers and builders to fleece buyers with false promises.

The Registration Act has dealt with issues that were long pending. One of the most significant one is the suggestion that Section 17 (3) be amended to ensure that adopted girls/daughters be also registered to ensure and safeguard her rights to property. Earlier this pertained only to sons.

Land owners, especially the farmers whose land is acquired often, will benefit greatly from this amendment. They will become entitled to obtain the “real market value” according to the provisions of the proposed Land Acquisition Bill as the amendments to the Registration Act will also be applicable to the land acquisition rules. The farmers will be entitled to receive greatly enhanced amounts of compensation especially in development projects where families are displaced.

Earlier, this compensation value and the method of arriving at it was a notoriously hazy aspect of land deeds. This was largely perpetuated because of the highly arbitrary and unprofessional manner of calculating land values on the basis of the registered value of land.

The new amendment will bring about more transparency to this aspect deriving the market value to the assessment of real time current pricing of the land. In this context all agreements are to be registered and there is compulsory registration of power of attorney.

The other beneficial aspect of the amended Act relates to the State eschequer. While earlier it was not mandatory as per the Registration Act 1908 to register a power of attorney. This aspect was violated by individuals who transferred property without getting it registered. This usually resulted in innumerable disputes and caused a great monetary loss to the State eschequer.

The amended Act will lead to honest land transactions that are traceable and close to the actual value of the land. All measures and avenues of fudging land transactions would virtually be blocked once the Act becomes operational. Accurate land values and correct identification of beneficiaries would be more a rule rather than an exception. 

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NCR office space absorption dips

Office space leasing fell by 25 per cent during 2012-13 fiscal at 5.8 million sq ft due to uncertainties in the global economy and slowdown in IT/ITeS sector, global property consultant Knight Frank said recently.

“The NCR office market showed steady absorption levels in H1 FY13 followed by a dip in H2 FY13. The city’s office market clocked absorption of approximately 5.8 million sq ft during FY13, falling short by 25 per cent compared to FY12,” Knight Frank said in a report.

The consultant noted that impending uncertainties over the global economic scenario have lent a cautious outlook to the market and office space demand has been restrained in FY13 compared to FY12 in most major cities of the country, NCR being no exception.

“While the NCR market has a well-diversified office occupier base, the IT/ITeS sector contributes to about 42 per cent of the total office demand. Hence, a slowdown in the IT/ITeS industry has adversely impacted demand,” the report said.

According to Knight Frank Research, 1.07 million sq ft of office space was transacted in Q4 FY13, thus showing a fall of 11 per cent compared to the same quarter last year.

American Express, Fiserv, Jacob’s, HCL, Micromax and Google were the top space occupiers in Q4 FY13 and accounted for approximately 75 per cent of office absorption.

In Q4 FY13, about 89 per cent of the total office space transacted in the NCR was taken up in Gurgaon and Noida, the report added.

On the outlook, Knight Frank said that corporate leasing activity is expected to remain muted in the coming quarters.

“Majority of the office space demand is expected to come from relocation and consolidation as companies are deferring there expansion plans. IT/ITeS giants are concentrating on their existing real estate portfolio and working towards improving the current space efficiencies,” the report said.

The office space supply is expected to be constrained as there are delays in the execution of commercial projects in the peripheral business districts of Noida and Gurgaon, leading to limited options for tenants.

Consequently, the consultant sees rental appreciation in the coming quarters in certain established micro-markets within Noida and Gurgaon. — PTI 

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project watch
Rate check
S.C. Dhall

An important part of understanding the price ups and downs in the real estate market is the “ready reckoner rates”. Ready reckoner rates for each area in city are defined by the the state government.

What it is

Ready reckoner rates are the prices of land, residential properties, and commercial properties for any given area defined and published by government each year. These are revised from time to time whenever the government feels that there is a need for price revision. Stamp duty and registration costs which are paid by a real estate buyer can’t be below the ready reckoner price or the actual price of the property.

Let’s say that ready reckoner rates for some location is set at Rs 4,000 per sq ft (as per the state government) and the cost of the property according to this comes at Rs 40 lakh. Now imagine that the builder is quoting the cost of the property to you at Rs  50 lakh. Now the stamp duty will be paid on Rs 50 lakh only, because its higher than Rs 40 lakh. However, suppose a buyer decides to pay Rs 25 lakh in black and only Rs 25 lakh in white money, still the registration and stamp duty will be paid on Rs 40 lakh only, because that the minimum pricing set by the government is Rs 40 lakh.

Linked to built-up area

It is also important to know that the ready reckoner rates are linked to the built-up area of the property, and not on the carpet or super-built up area. So if ready reckoner rate is Rs 4,000 sq/ft and builder tells you that he will also sell the property to you at Rs 4,000 sq/ft, don’t get fooled, because the builder tells you the pricing linked with the super built-up area and not the built -up area, which in most of the cases is higher, so eventually the rate charged by builder is always higher, if you convert it for the built-up area. For example if the super built-up area is 1,000 sq/ft and built-up area is 800 sq/ft, then Rs 4,000 per sq/ft area quoted for super built-up area (Rs 40 lakh cost), is the same as Rs 5,000 sq/ft quoted for built up area (same Rs 40 lakh).

How ready reckoner rates affect the prices

As ready reckoner price is the FAIR PRICE (which is fair value) set by government itself, builders can charge the premium on that fair price depending on market condition, demand, quality and their goodwill or exploitation power. So the market price (the actual prices prevailing in market), will definitely be always higher than than ready reckoner prices (benchmark). Now, if the benchmark itself is higher at any given point of time and also keeps increasing over years, the market price quoted by builders will also be high.

For example in one of the areas called “Kondhwa” in Pune, the ready reckoner price set by government is around Rs 3,700 per sq/ft. However, the builders are charging anywhere from Rs 4,500 to 6,500 per sq/ft at the moment. Imagine, if this year government increases it to Rs 4,000, then automatically the rates will go up by that much margin, because builders get a good reason to escalate the cost.

“One of the largest revenue sources of any state government is the stamp duty from property registrations and it’s always in state government’s interest (from revenue point of view) to keep the ready reckoner rates higher or increase these if there is any justification for it like development and road projects etc”, says Mangat Rai, a tricity-based real estate consultant.

Where to find the ready reckoner rates for your area

Now there are a few ways in which you can find out the ready reckoner rates of your area (or any area).

nOn the website of “Registration and Stamp Duty Department”

Each state government has its own department of Registration and Stamp Duty. You can reach the website by searching the sentence “Registration and Stamp duty department” and adding state name along with it on google. On the website, you need to search for a link – which says something like “market rates” or some equivalent in the local language of the state. If you are lucky, you might reach the final page which helps you find out the ready reckoner rates for all the cities in the state. It will help you find the rates as per city, taluka, location or survey number

* Using RTI application

The second way to find out the rates is to use the RTI application against the same Registration and Stamp Duty department (many times called “revenue department” like in Delhi). All you need to do is file a RTI to the respective officer and to your jurisdiction asking for the rates in particular city and area.

* Office of Sub-registrar

One of the best ways would be to go to the sub-registrar’s office (where the properties are registered) and find out the rates from there itself. 

Understanding the terminology

Carpet area

Net usable area of property (imagine you put carpet, what all part of flat, it will cover)

Built-up area

Carpet area + walls and doors area (imagine you remove the thick walls and all doors, then what you will be left with)

Super built-up area

Built-up area (which you get) + staircase, garden, gym, swimming pool and everything you use (your proportion)

IREO-Ascott tie up for serviced apartments

Ireo, India’s first and largest private equity fund dedicated to the Indian real estate sector, has entered into management agreements with the multi-award winning serviced residence provider, The Ascott Limited, for India’s first Ascott-branded serviced residence at the upcoming master planned Ireo City complex on Golf Course Extension Road in Gurgaon.

IREO City, is a world class mixed-use project spread over approximately 800-acres. Located adjacent to the planned two-storey Ireo City Central retail zone and entertainment hub, Ascott Ireo City Gurgaon will offer approximately220 units in the configurations of studio, 1 BHK and 2 BHK apartments. This will include 160 serviced residence units and an additional 60 units of private residential apartments.

Ascott Ireo City Gurgaon will primarily cater to the burgeoning demand for serviced residences from travelling business executives and corporate houses. It will be built around a distinctive concept of offering the owner the choice to either use the fully serviced apartment as residence for self or rent it out commercially through The Ascott Limited.

Omaxe allots EWS flats in Sonepat project

Real Estate company Omaxe Ltd. conducted a lucky draw for the allotment of EWS flats in Omaxe Heights, Sonepat last week. The company has offered 126 flats under this category. The one- room flats offer EWS families an opportunity to better their living standards and avail of the facilities in these residential complexes. Priced at Rs 1.5 lakh, the EWS flats are spacious.

Omaxe Heights is spread over an area of 357 acres on the GT Karnal Road — Omaxe City, Sonepat.

RMS Signature Residency

RMS Signature Residency, a project developed by RMS Builders in Ghaziabad, which will be ready for possession within a couple of months has been completely sold out. Making this claim, the company spokesperson said “the construction of the project is in the final stages and flats will be ready in two months”. It is located at GH, Sector-C-6, Tronica City, Ghaziabad and is spread over an area of 15,356 sq. mtr.

The project comprises 2, 3, & 4 BHK apartments, the size of which ranges from 1,042 sq. ft. to 1,928 sq. ft. The price of 2/3 BHK apartments is between Rs 40 to 50 lakh, while the 4BHK apartments cost around Rs 60 lakh.

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Ground Realty
Plan an impressive front elevation
Jagvir Goyal.

The front elevation is considered as the most striking feature of a house. So let’s have a look at some aspects that help in creating a beautiful front elevation of a house:

The features

Once the house plans are finalised, the doors and windows, their projections, the porch, the railings, the wall surface area available, the balconies, the terrace and the verandah become essential features of front elevation. Their sizes, materials, edges, angles and appearances are to be planned to lend best effects to the front elevation. Additional features such as huts, canopies, columns, chimneys, slopes, slots, slits and pergolas are now added to make the elevation look unique and attractive.

Colour scheme

Don’t choose too many colours for the front elevation. The colour scheme should be designed to accommodate just two or three colours. Let the major percentage of coverage be in a light shade. Off white or white are the most preferred ones for the plastered portions. Among the dark colours for the outlining and borders, chocolate and terracotta red look stunningly beautiful.

Tile provision

Tile cladding is considered an essential part of the front elevation. Certain portions of the elevation should be planned for tile cladding and left with a rough finish during the construction of the house. The house owner has ample time at his hands to choose suitable tiles for cladding purpose. However, the survey for tile selection should be completed by the time the flooring is laid. Many times, the suppliers or manufacturers take time in supplying the requisite quantity of selected tiles of the required size and colour.

Adding curves

Angular geometrical features have long been the preferred choice of house builders. Circular portions or curves have been absent. Adopting something which is not in trend or vogue needs lots of courage as the house owner is fearful that the elevation of his house would look odd. It is difficult to dismantle something built and rebuild it with a changed profile. However, the trend is changing now and curves are fast coming back into fashion.

Get 3D elevation

Often, the house owner is unable to visualise the front elevation of his house from the two dimensional figures shown by the architect in the drawings. He is unable to say yes for an elevation suggested by the architect. Everybody has his own choice. It is thus better to ask for a 3D elevation drawing to get a more realistic and accurate idea of the final look of the front elevation. These days, software is available to prepare 3D elevations. For best decision, an architect may get two or three elevation alternatives prepared. 3D elevation experts normally charge ~4000 to ~6000 for preparing a 3D elevation picture.

Bay windows

Having large-sized bay windows in the front rooms adds additional beauty to the front elevation. The elevation has an enhanced look if such windows are added on the first floor level. Provision of bay windows has to be planned at the initial stage itself as the lintel and slab over the window has to be planned along with the sun shade over them. Provision of concealed lights in the outer projection and inner slab of bay window lends dramatic effect to the front elevation at night.

Corner plot luxury

A corner plot opens up many avenues for the architect to make the front elevation attractive. Certain features can be added to the left and right front edges of the house, extending to the front and the sides. The front railing, when continued along the side too (if bylaws permit), adds a palatial look to the house. Corner plot houses when viewed obliquely present majestic structures with endless attractions added here and there along the length and height of walls.

Front railings

The railings provided to the front balconies and terrace add to the look of the front elevation. These days, these railings have a combination of mild steel, toughened glass, stainless steel and wood. While the basic structure is in mild steel and stainless steel sections, wood and glass are added to it later on at the time of finishing of house project. For provision of toughened glass, studs or D clamps are welded to the basic section at the time of its fabrication itself. MS or SS framework railings look very attractive when optimum glass and wood coverage is added to them. Provision of glass for the full height and length of railing is avoided as it doesn't give a secure feeling to the house owner and doesn't look attractive. If mild steel framework is provided and finished with deco silver paint, it looks more attractive than SS framework. It proves economical too.

Stone railing

Jodhpur stone jail railing of pink colour is preferred by certain house builders for front railing. It looks extremely beautiful. Exquisite designs too are available in it. However, if used, it begins to govern the colour scheme of the front elevation which has to be decided by matching it with the pinkish or peach colour of the stone railing. This railing is expensive too. Then there is the problem of dust accumulation in it. A house builder opting for stone jail railing should keep all these points in view. In case mild steel or stainless steel railing with glass is used, one may add ornamental plant pots along the glass to add more attractiveness to front elevation.

Finish for curves

Circular features or curves when provided in front elevation look beautiful only if right finish is selected for them. Provision of sleek tiles on the curved portion is the best option. However, it needs extraordinary workmanship and right size of the tiles to bring out the best effect. The length of the tile should be such that doesn't convert the curve into a polygonal feature. Certain manufacturers are producing header tiles these days. These tiles are only 4.5-inch-long. These suit a curved feature well if the radius of the curve has been decided by keeping the tile length in view.

— This column is published fortnightly

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REALTY GUIDE
B K Sanghi ...

Q. My father had inherited ancestral property by the way of my grandfather’s Will. We are three brothers and three sisters and my father and mother are alive. We all are married and I am the youngest in the family . I have two sons. My father has transferred the major and main portion of the property to one of my brothers through a relinquishment deed. I challenged that in court but my case was dismissed on the basis of the contention that the property acquired by the way of Will is considered as self-acquired property. My queries are:

* Can I further a claim for the property that my father transferred to one of my brother?

* Can I claim the other property which has not been transferred so far?

* Can my sons (aged 10 and 8) claim their share in the property?

* Can my father do this by neglecting me and my sons?

— Dinesh Aggarwal

A.Under the Hindu Succession (Amendment) Act, 2005, daughters are entitled to equal inheritance rights along with other male siblings, which was not available to them prior to the amendment. Under this Act female inheritors would not only have the succession rights but also the same liabilities fastened on the property along with the male inheritors. So according to this your sisters,too, are equally entitled to their shares in your father’s property. Do they also have an objection to your father transferring it to only one son?

You have not mentioned when this property was transferred to your father (Whether it was before the above said amendment or not?).

Drafting of Will is very important and I cannot pass any comment without knowing the facts of the case.

You have full rights to claim your share in the property, according to Indian law. You should take the advice of some senior advocate specially dealing in property matters.

Q. I had bought a plot for Rs 7,00,000 and want to get it registered in my and my wife’s name with equal shares. What is the stamp duty levied on this amount. Can I get the stamp duty rebate of 2 per cent on my wife’s share in a single sale deed. — Raj Kumar Gupta

A.You have 8 to 9 per cent stamp duty on the total value of the deal as per the latest rates. You are entitled for 2 per cent rebate on stamp duty for your wife’s share in a single sale deed i.e. Rs 7000 (2% of Rs 3,50,000) which is the share of your wife or you can say 1 per cent of total value of stamp duty which is Rs 7000.

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Realty bites

1,000 cr investment to boost Andhra tourism infra

Andhra Pradesh has embarked on ambitious public private partnership (PPP) projects to upgrade its tourism infrastructure. In the coming months, Andhra Pradesh is set to witness investments of over Rs 1,000 crore through PPP mode in the tourism sector.

The programme is supported by the Ministry of Tourism, Government of India, which has already sanctioned Rs 221 crore. This apart, the state is also expecting investment to the tune of Rs 58 crore for new projects.

This involves building coastal corridors along the Vizag-Bheemunipatnam sea front and Vizag-Vizianagaram-Srikakulam Regional circuit with Rs 175 crore investment, and eight new beach properties in Srikakulam, Vizianagaram, East Godavari, West Godavari, Prakasam and Nellore districts.

Ms Chandana Khan, Special Chief Secretary to the Andhra Pradesh Government (Tourism & Archaeology) and Chairman & Managing Director, APTDC, commented, “We want to showcase to our guests that everything is possible in Andhra Pradesh. Today, the state has much more to offer in terms of virgin locations. We are sure that the new tourism infrastructure will delight the new-generation visitors. We are keen to promote Andhra Pradesh as the most desirable round-the-year tourist destination in India.”

Developing coastal areas and beach properties is integral to this plan. Very soon, APTDC will be operating as many as nine new beach properties at Baruva and Kalingapatnam (Srikakulam district), Chintapally (Vizianagaram), Kakinada (East Godavari), Perupalem (West Godavari), Ramayapatnam (Prakasam), and Tummalapenta, Maypadu and Kotta Kudur (all in Nellore).

Budget home show

A budget home show — Indiabulls Home Loans Aawas 2013 — was organised by Indiabulls Housing Finance Limited, earlier this week in New Delhi.

The Exhibition showcased projects from 13 reputed builders of the Delhi- NCR region in affordable price segment ranging from Rs 25 lakh to Rs 45 lakh. Projects from emerging realty destinations like Raj Nagar Extn, Yojna Vihar Ghaziabad, Greater Noida, Yamuna Express Way, Bhiwadi were on display. Many attractive schemes and discounts were offered by the builders during the two-day event.

In addition, Indiabulls Home Loans also facilitated home buying by offering on-the-spot home loan sanction along with a concession on processing fee to the visitors at the show.

Paul Writer marketing award for Puravankara group

Puravankara Projects Limited has bagged 2013 Paul Writer Excellence in Realty Marketing Award in the ‘WOW 360! Best integrated marketing campaign’ category. A jury of renowned marketing professionals selected Puravankara Projects Limited’s (PPL) recent highly successful campaign ‘Zero Booking Amount Scheme’ for the award, which was handed over at the Great Indian Marketing Summit — Realty Edition award ceremony held at Bangalore last week. Paul Writer Excellence in Realty Marketing Awards recognizes excellence in real estate marketing in India and drew nominations from organisations across the country this year in a range of eight categories.

Best Township award for Silver Springs

Silver Springs, an integrated township in Indore developed by Silver Realties & Infrastructure Pvt. Ltd. has been conferred with the NDTV Property Awards — Best Township Project in less than 200 acres category. The township, a JV between FIRE Capital and M Jhaveri Group, is a self-contained, fully integrated township sprawled over an area of 139 acres on the AB Bypass Road. It is planned for 1600 residential units and over 1.7 million sq ft of commercial space.

On receiving the award from Ajay Maken, former Union Cabinet Minister for Housing & Urban Poverty Alleviation, Om Chaudhry, Founder & CEO of FIRE Capital said, “Silver Springs was our first project in India and this award is a certification that we are committed to providing a quality product and a differentiated lifestyle.”

World’s most sustainable building in Dubai

After constructing the world’s tallest tower, Dubai has now earned the distinction of having the “most sustainable” commercial building in the world — The Change Initiative (TCI).

TCI has secured the highest LEED (Leadership in Energy and Environmental Design) Platinum rating from the US Green Building Council (GBC), a non-profit organisation dedicated to promoting sustainable buildings worldwide, a news report said.

The 4,000-sq-m shop, that provides sustainable solutions in Dubai, achieved 107 points out of 110, making it the most sustainable commercial building in the world.

The record was previously held by Pixel, a four-level building in Australia, with 105 points.

According to the Gulf News, TCI provides environmentally-friendly solutions and incorporates all aspects of green building on its 4,000-sq-m structure from its roofing to energy-efficient lighting to its water system.

TCI has 26 technologies, including solar panels and heat-reflective paint, on its roof that provides 40 per cent of the building’s energy requirements, the report said.

Its outer structure has insulation three times more than that of a normal building; all its windows have heat- reflective films; water in the building is re-used and recycled; and most of the materials used for the building’s interiors are recycled.

This high LEED Platinum rating is not the first in Dubai, which is also home to the Dewa (Dubai Electricity and Water Authority) Sustainable Building, the largest government building in the world with 98 out of 110 points. — PTI

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launch pad
Urban Young in NCR

The Cosmic Group has recently launched an innovative residential project — Urban Young — along the Yamuna Expressway. The new project will offer serviced residences to the young urban generation. The facilities and amenities in the project have been designed and shaped by keeping in mind their requirements, desires and wants. The whole concept revolves around socializing with family and friends in the same premises where you stay.

Urban Young offers apartments in different sizes ranging from 4BHK + study to 2BHK units in the price range of Rs  27 lakh to Rs 50 lakh per unit. The project is strategically located at Yamuna expressway which has the best of the educational, commercial and retail spaces, besides adventure sports facilities in the vicinity and provides good connectivity with all important destinations of Delhi NCR.

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tax tips
S. C. Vasudeva email your queries to realestate@tribunemail.com ...
How can I get refund of the excess service tax?

Q. I have a query regarding the component of service tax in the total price of flat and rate of abatement. I think builders are not justified in are charging service tax on the total price of flats. I think that as per rules rebate for lower end constructions is 75 per cent, so taxable portion comes to 25 per cent and for the higher end constructions rebate is 70 per cent and taxable portion comes to 30 per cent. Please clarify if am I right. If so, then how can I get the refund of the excess amount charged by developer as service tax. — G.S. Virk

A.In case of construction of a complex intended to be sold to different buyers the rates of abatement are as under. This is in accordance with the notification No. 9/2013 (dated 08.05.2013).

* For a residential unit where the carpet area is less than 2000 sq.ft. and the amount charged for the flat is less than Rs 1 crore the rate of abatement is 25 per cent. In any other case the rate of abatement is 30 per cent. In other words a builder will be liable to pay service tax on 25 or 30 per cent, as the case may be, of the gross amount payable for cost of a residential unit.

* In case the builder has collected excess amount, the only way out is to take up the matter with him for a refund, and in case the builder does not agree, the matter will have to be settled in a court of law.

Is the coloniser justified in charging service tax?

Q.We are living in a GLADA-approved private colony outside the city limits. The water supply and sewerage services are provided by the coloniser for which he is taking monthly charges. The charges are much more than those notified by Punjab Government. Recently, he has started charging service tax also on these charges. Please clarify if service tax on water supply and sewerage services can be charged by the coloniser when this is not being charged by the municipal corporation within the city limits. — Vyas Bembi

A. A new Service Tax regime has been introduced by the Finance Act, 2012 thereby all services are taxable except those which are provided in the negative list. Services provided by the government or a local authority are not covered for the purpose of levy of Service Tax. Since water and sewerage services are being provided by the coloniser, Service Tax would be leviable on such services. In accordance with the Service Tax provisions, the coloniser can recover the Service Tax leviable on him from the users of such services. Therefore, there is nothing wrong with the charge of Service Tax by the coloniser in your case on the services provided by him.

No tax saving on constructing commercial property

Q. My father purchased a commercial property in Mohali for Rs 1.27 lakh in 1981 jointly with my mother. The first instalment (25 per cent of the cost) of Rs 31,750 was paid in 1981. The final payment of Rs 150842 (75 per of the cost + interest) was made in 1991. The same property was transferred in my name in accordance with the registered Will of my father in 2006. Subsequently, I sold the booth in 2012 for Rs 28 lakh. Kindly advise on the following points:

* What is my capital tax gain liability on the same transaction?

* I purchased a plot in Landran in 2011 for ~4 lakh from my own savings. I am interested in using the proceeds from the sale of the Mohali property for the construction of a commercial property (Rs 15 lakh) in Landran. What will be my capital gain on the same? — H.S. Saini

A. Your queries are replied hereunder:

* Indexed cost of the commercial property would be Rs 9,16,326. Accordingly, the amount of capital gain would be Rs  18,83,674. The benefit of indexation has been taken from the year 1981 in accordance with the decision of various courts in which it has been held that even if a capital asset has been inherited, the benefit of indexation should be available from the year in which the property was acquired by the original owner. The amount of tax on capital gain on the sale of a commercial property would be Rs 3,88,037. Presently tax on long-term capital gain is chargeable at 20.6 per cent (20% + education cess of 3% thereon).

* The amount of capital gain if utilised towards the construction of a commercial property would not enable you to save tax on the capital gain which has arisen on the sale of commercial property inherited from your father. Therefore, the amount of tax which is leviable on Rs 18,83,674 @ 20.6 per cent will have to be paid by you even if the said amount is utilised for the construction of a commercial property in Landran village.

Buying flat from funds sent by NRI son

Q. I am a pensioner and have some income tax queries relating to real estate. I recently bought a flat worth Rs 22 lakh by withdrawing money from my bank account which is a joint NRE account with my son. My son deposits around $2500 each month in this NRE account. I have used this amount to buy a flat in my name as I do not own any flat. Now, my query is that how should I show this in my income tax return and are there any tax implications? — Venky Kumar

A.The amount paid by you towards the cost of the flat by withdrawing money from the NRE account held by you jointly with your son will have to be reflected in your tax return as house property owned by you and purchased from the amount gifted by your son to you. There is no income-tax implication on the amount received by you as gift from your son. Your son has to give a simple letter about having gifted the amount remitted to you. The letter so sent by him should be acknowledged in acceptance of such a gift.

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