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watch: banur-rajpura highway Moving in a slow lane  Banur
and the stretch along Rajpura highway is yet to bloom like other locations on
Tricity periphery due to the lack of proper infrastructureChandigarh’s periphery is bustling with construction activity with a large number of residential and commercial projects coming up in different areas to cater to the increasing demand for housing.
real
view: land acquisition bill
expert
take
first
person
Delhi to get over 10 lakh houses by 2021
tax
tips
REALTY GUIDE
Housing prices dip in 22 major cities
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area
watch: banur-rajpura highway
Chandigarh’s periphery is bustling with construction activity with a large number of residential and commercial projects coming up in different areas to cater to the increasing demand for housing.
But real estate growth has not been even in the different periphery areas. While Mullanpur is making a steady progress towards planned development, Zirakpur with its haphazard growth has almost reached saturation levels with not much land left for more housing projects. Dera Bassi on the other hand is still grappling with connectivity woes and even though it has generated interest it will be some time before it becomes a feasible option for those looking for a house in Chandigarh’s vicinity. Another area that has the potential of fulfilling the demand for housing is Banur and the stretch along the NH-64 or Patiala highway. Banur, which is around 15 km from Chandigarh border on the Rajpura-Chandigarh road, is yet to cash in on its advantages of proximity to Chandigarh and Mohali, and the presence of a large number of educational institutions. On paper the area has a lot of factors in its favour but the ground reality is very different as just a handful of housing projects have come up here and the prices of land, too, have not appreciated like those in Zirakpur and Mullanpur. Currently land price is in the range of is
Rs 6000 to Rs 15,000 per sq yd depending on the location. However, due to the presence of a number of educational institutions the price of land meant for commercial use is in the range of
Rs 30,000 to Rs 80,000 per sq yd depending on the location. According to market watchers poor infrastructure and obstacles in getting approvals for housing projects in the area are some of the main reasons that have stunted the growth of the realty sector here. Property consultants in the area opine that lack of direct connectivity with Mohali and Panchkula are the major deterrents for end users and as at present the market is driven by the end users only, the Banur area has lost momentum. “There are hardly any investors in the market and moreover this area has seen very slow development over the past two years, so prices too have not appreciated. As a result the investors are not keen on this area and are concentrating on Mullanpur and Pinjore side. End users, on the other hand, are apprehensive about the poor civic facilities and road connectivity and are not ready to check out this area even though the prices are very affordable here”, says Sunil Joshi, a Banur-based consultant. A majority of the area here falls in the reserved forest category so getting approvals for residential and commercial projects is a Herculean task for the developers, so one doesn’t see the presence of major developers here like in Zirakpur and Dera Bassi, he adds. “The Punjab government has ignored Banur area in its bid to project Mullanpur as New Chandigarh, and this has led to slow growth here”, says Avtar Singh, a resident of Banur. Local property dealers too blamed the government for not focusing on the development of this town. Notably this area is under the control of GMADA and Banur town has its master plan for the development covering the 10,380 hectare area. It covers the area along Banur-Chandigarh road, Landran road and Ambala road. The land along these roads can be used for residential and commercial purposes. High demand The presence of several professional colleges and educational institutes, too, has failed to give a boost to property prices here. The demand for housing is there because as many as 15,000 students are currently studying in institutes like Chitkara University, Gian Sager Medical College and Hospital, Swami Vivekanand Institute of Engineering and Technology, Saheed Udham Singh Group of Colleges, Dr. IT Group of Educational Institutions, Gurukul Vidyapeeth etc. And most of the outstation students and faculty menbers are living either in Chandigarh or in rented accomodation in Banur or nearby villages. Low supply There are just a handful of residential projects here. One of these is by Housefed. This Punjab government organisation has developed a housing project on the Banur-Chandigarh road. Giving more informationabout this project Arun Vasudeva, SDO of Housefed, said the department had constructed 912 flats covering an area of over 15 acres. These flats include 576 three BHK flats, 240 two BHK and 96 one bedroom flats. This project is nearing completion and buyers would get possession soon. Other residential project Royal City that has come up in area is situated near Karala village on Banur-Chandigarh road. According to the Director of the project Neeraj Kansal the group plans to set up an 800-acre housing project here. As many as 400 plots of 200 sq yd have already been sold. “This area is going to be the next hot destination on the tricity periphery as Zirakpur is already saturated and people will prefer the area as it is close to the Delhi highway”, said Kansal adding that the 6 to 8-lane ring road being planned would directly connect the area with Mohali Airport and Panchkula. GMADA’s ambitious Aerocity project that was launched two years ago is also likely to give a forward thrust to the realty market here once the possessions of plots in here are handed over to people later this year. Chief engineer of GMADA, Tarlochan Singh said that nearly 65 per cent work of laying sewerage and water supply lines and roads had been completed already and plots will be handed over once the developement work was completed. Though this stretch of NH-64 has not seen fast rise of realty fortunes, it is likely to become popular like Zirakpur once the infrastructural hurdles are taken care of by the government.
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real
view: land acquisition bill
The government has termed it as a measure to ensure “just and fair” compensation to families whose land is acquired for different industrial or realty projects. “We believe that the Land Bill strikes a fair balance and renders a long-denied justice to those who are being deprived of it,” commented the Finance Minister. But the developers’ lobby and India Inc are taking it with a pinch of salt. Expressing apprehension that the new provisions will jack up the cost of acquiring land by 3.5 times Industry chamber CII said this would make industrial projects unviable. CII President S Gopalakrishnan commented that in view of India’s eroding global competitiveness, a more facilitative land acquisition process would have helped long-term growth and better investor sentiments. Calling it a beneficial step for the land owners Mayank Saksena, Managing Director-Land Services, Jones Lang LaSalle India, said, “For developers, the cost of land is going to increase significantly, impacting their project costs and therefore margins. Land valuations are already high and by further increasing them, land acquisition becomes even more difficult. Anyone without an existing land bank will now be looking at vastly increased entry costs”, says “It will bring more certainty on a critical issue impeding infrastructure development. The government may need to bear the cost of land acquisition since user charges may not be able to bear the cost in all cases. This balance between cost to tax-payers and users remains critical in design of PPPs,” says Manish Agarwal, Executive Director, Infrastructure, Pricewater Cooper, India CREDAI-NCR President Dr. Anil Kumar Sharma, too, expressed disappointment over the finer details of the Bill. “In current form, the Bill makes the process of land acquisition time consuming with an intentional or unintentional incentive for the farmers to delay the process as the longer the delay the higher the compensation (in the form of market rate prevalent at the time of final acquisition). All land acquisitions have to strike a balance between the interest of the farmers and the need of industry to get large parcels of contiguous land. The provisions in current form of Bill do not address the need of the Industry, especially large scale
projects.”
Conveying similar sentiments Ajay Aggarwal, MD, Microtek Infrastructure Pvt. Ltd., said, “The Bill does not do justice to the government’s responsibility to carry all the stakeholders together. It is conveying the impression of welfare of farmers or land-owners on the surface, but it is going to harm their prospects in future as industry and real estate sector will avoid investing in areas that have a history of land acquisition disputes. The state being sole arbiter of property in country, it can not avoid its responsibility.” However, the new provisions will put an end to the controversies over forcible land acquisitions like in Noida Extension a couple of years ago. As Sharma commented, “With this bill, at last housing, private industry and public projects will be able to move ahead with fresh supply of acquired land which is essential for large scale projects”. Sumit Bharana, Director, Era Landmarks, says. “The two major elements for any fair transaction i.e. right to fair compensation for land owners and transparency had become a matter of concern as these were missing in the previous law. At least, the process of acquiring land would be less cumbersome now”. Only time will tell how this new mathematics of land acquisition will change the equation for the country’s realty sector and the land ownners.
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home with fENG SHUi The best staircases are wide and curving. When gently curved, these encourage the flow of benevolent energy from one level of the house to the next. As straight staircases tend to take on the character of straight poison arrows, it is always better to curve the staircase and it is a good idea to keep them brightly lit and to hang happy pictures that have the effect of slowing down the energy thereby transforming any tense energy into benevolent energy. Simple solutions If yours is a narrow staircase, then you should keep it well lit. Make sure that the steps have backs, and are not open; also, avoid steps with decorative holes as these weaken the energy, allowing it to seep away instead of moving up to the next level where it should be strengthened. Tips and remedies Staircases should not start or end directly facing the following features or rooms. Of these taboos, the most harmful is when the staircase begins directly opposite the front door. Remedy this affliction by placing a bright light between the stairs and the door. Better still, block the door with a screen, forcing the Chi to meander before passing up the stairs. Cures It is best to stop using a toilet under the staircase, but as this may not be practical always, just keep the toilet door closed. Remove water features immediately and place a ceramic or gold pagoda in the vicinity of the staircase. The pagoda has a powerful, positive effect on growing children. In the old days, parents would even have their children wear a pagoda pendant to attract good study chi. You can also place an old jade or ceramic decorative bamboo plant in children's bedrooms to aid their concentration. — The writer is a Panchkula-based Feng Shui and Vaastu Art expert and founder of Aartizen
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In metro cities, shopping malls have received a good response comparatively. On the other hand, Tier II and Tier III cities are witnessing huge empty space in malls. As per reports, in smaller towns, over a third of the space is unoccupied, as against just 7 per cent in 2007. You can count the number of malls that have been a success in India. Select City Walk and Ambience in the NCR, Inorbit and High Street Phoenix in Mumbai, Forum in Kolkata, Garuda and Forum in Bangalore are some of the enviable success stories wiping out competition in the form of previously famous hubs such as South Extension and Greater Kailash-1 (M Block market) in Delhi, Commercial Street and Brigade Road in Bangalore. Analysts at agencies like Crisil, Jones Lang LaSalle (JLL) India and Ernst & Young say 80 per cent of India's 255 malls are failing. Reports suggest that about $4.2 billion has been spent to build these approximately 255 malls, of which about 65 per cent are in Delhi/NCR and Mumbai. Other challenges to tide over include high rentals, overall slowdown, issues with the mindset and execution at the management level. Developers do not put in the effort to maintain and select the brands or eateries that should be a part of the mall. Instead, they sell it off to investors or individuals who offer attractive rentals for the space. What ails malls What can be the solution? Some steps which can help make the malls a success: The future of malls can definitely improve if these solutions become effective. The business model of giving preference to high rentals will not work as malls are not just another piece of real estate but demand organised planning, brand selection and maintenance on the part of the owner/developers. — The writer is Business Head, 99acres.com
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As a fashion and an interior designer what would you say is your design philosophy? The design philosophy of our brand comprises three integral elements: An affinity to monarchy, impeccable attention to detail and a unique combination of craft-based sensibilities albeit with a modern edge. I believe that the old and new must co-exist to create design that is new, yet connected to our roots. It is, in fact, contradiction that works for me in design. Seemingly incompatible elements can indeed be combined in a beautiful manner to create dramatic visual harmony. What are some of the latest trends in luxury spaces? I've never been a very big follower of trends, instead I prefer to lead by creating looks that are individualistic and powerful. Trends are important but must be gently incorporated and must not, under any circumstances, overpower a space. As I said before,
the key look that we believe in is a happy fusion between the past and the present — detailed and awe inspiring. What according to you makes for an elegant and well done up interiors? Elegance comes through discipline and control and yet, it also comes by expecting the unexpected. When one wanders from room to room, there must be a common thread that binds but there must also be surprises and scale. Which colours, textures and designs are the most suited to the Indian home? The colours, textures and designs vary in different regions of India. Organically evolved houses in India have always experimented with vibrant colours and motifs and these can be evolved to suit present day homes as well. Elaborate detailing and rich accessories proudly display the story of our rich culture. Most importantly, one must remember that spaces are connected to people, and therefore, must reflect their individuality.
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Delhi to get over 10 lakh houses by 2021 The development of around 20,000-24,000-hectare land will give several housing options to an additional 48 lakh people in Delhi by 2021. The DDA will develop the areas with the help of private builders under the recently-approved Land Pooling Policy. “The housing options will come up on the lines of residential development in Dwarka and Rohini. The policy proposes to carry out development in urban extension areas by involving private parties. The new sub-cities will be developed with all facilities the housing development would be coupled with all infrastructural developments. As per the plan, proper cities will be developed having all the facilities such as schools, colleges and hospitals. This will be possible as the DDA has made a change in the land acquisition policy by approving land pooling policy in March. The policy was cleared by the Lieutenant Governor in the last week of July 2013 The policy has several elements of public-private partnerships. Landowners, including farmers, can form consortiums and tie up with private builders or banks to consolidate their land parcels and develop the plots according to the zonal plans approved as part of the Delhi Master Plan-2021. In future, urbanisation has to be in the areas that have development potential like the areas along the major transport corridors and fringes of already urbanised areas. Therefore, in the 2021 master plan, it has been envisaged that the area under existing designated rural belt would be absorbed as urban extension from time to time with due regard to a balanced city development. The projected demand for housing in Delhi, by 2020, stands at 15-20 lakhs units. MPD — 2021 envisages development/redevelopment of 60,000 hectares of land, creating a large, mixed supply of low-cost, affordable, mid-segment and high-end housing besides plotted developments. Just Zone L (in SW Delhi, close to Dwarka and New Gurgaon) and Zone N (adjoining Rohini) will throw up about 18,000 hectares of land, offering 10-12 lakhs residential units. This may well turn out to be the biggest real estate opportunity which even PE funds are eyeing. — S.C. Dhall
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tax
tips Q. I want to know how I can save Income Tax. Can one avail of the rebate of
Rs 1,50,000 on housing loan and also the rebate on additional housing loan on another house and show the rental income of the same as part of salary.
A. Your queries are replied hereunder: i. The actual amount of such allowance received by the assessee in respect of the relevant period; or ii.
The amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or iii. An amount equal to: a) Where such accommodation is situated at Mumbai, Kolkata, Delhi or Chennai, one-half of the amount of salary due to the assessee in respect of the relevant period; and b) Where such accommodation is situated at any other place, two-fifths of the amount of salary due to the assessee in respect of the relevant period, whichever is least of (i), (ii) and (iii). Such exempted amount would not be included as part of income from salary. Therefore, even if you own the house in the same city but are living in an accommodation which has been taken on rent and are also getting house rent allowance, you would be entitled to claim exemption in respect of HRA subject to the above conditions. n You can claim the deductions in respect of interest paid / payable, repayment of principle amount and exemption of HRA subject , however, to the conditions mentioned in the paragraphs above. What are the tax liabilities of rental income earned abroad? Q. One of my friends living in India is going to purchase a residential property in the UK. He plans to give this property on rent. What are the taxation laws in the UK concerning taxability of rental income, filling of IT return and exemption limit etc? Would the tenant deduct tax at source. The rental income is expected to be approximately £1000 per month. As my friend is living in India will this income earned abroad be added in his income here and whether he will be able to get a DTAA benefit? — vipan gupta
A. Rental income in the UK is taxable. An assessee in UK is also allowed certain exemptions in respect of savings. Tax rates given below are applicable after the exemptions in respect of savings. The starting rate of 10 per cent applies to income arising from savings such as interest etc. If, after deducting personal allowance from the assessee’s total income liable to Income Tax, the non-savings income is above the limit then the 10 per cent starting rate for savings will not apply. Non-savings income such as income from employment, profits from self-employment, pensions, income from property are taxable in the UK. There is no general withholding tax on rental income there, but if the owner of property is a non-UK resident, the tenant or letting agent is required to withhold tax @20 per cent from the rental income and pay the same to the tax department. As far as the taxability in India is concerned, a person living in India is liable to pay tax on income earned abroad, and therefore, the amount of rent earned in the UK would be included as part of his total income. However, your friend would be able to take the benefit of double taxation agreement with UK and taxes, if any, paid there would be allowable as deduction against the taxes payable in India. Tax rebate norms for owner of more than one houses Q. I sold a residential plot in July 2013. I had purchased it in 1981. As such I have earned LTCG. I want to utilise this money for purchasing a house within two years whereas I already own two houses and third has been financed through a bank loan for which instalments are being paid at present.
Kindly clarify the following points: A. Your queries are replied hereunder: i.
An assessee owns more than one residential house, other than the new house on the date of transfer of the plot; or ii.
An assessee purchases any residential house, other than the new house within a period of one year after the date of transfer of the plot; or iii.
An assessee constructs any residential house, other than the new house within a period of three years after the date of transfer of the plot; and iV.
Income from such residential house, other than the one residential house owned on the date of transfer of plot is chargeable under the head “income from house property”. As you do not fulfill
the above conditions, exemption under Section 54F of the Act would not be allowable.
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REALTY GUIDE Q. We are two brothers. I am living in USA for the past 30 years, while my brother lives in India with our mother. We had some ancestral property in our village and it was in the names of us two brothers and our mother. We sold that property four years ago and purchased some agricultural land somwhere else in our names. Now my mother is quite old and she has not written any Will, As I am an NRI, will there be any problem if I accept the land as a gift after her death. I heard somewhere that NRIs cannot buy agricultural land in India and neither can they accept it as a gift. Will the new land bought by us be considered as ancestral property as my mother is also one of the owners? Am I eligible to get a share in my mother’s share in this property ? —pavninder grewal A. An NRI may acquire any immovable property in India by way of gift from a person resident in India or an NRI. But he cannot buy or accept as gift agricultural land, plantation property or farm house as in your case. First of all, as you have been living in USA for the past 30 years and you bought agricultural land four years back along with your brother and mother, as an NRI you were not eligible to buy agricultural land in India. Secondly, after your mother’s death you can only inherit the land by means of a Will and not through gift or some other way. So you should have a word with your brother and mother in this regard and complete the legal formalities accordingly to get your fair share.
Joint ownership norms
Q.
I own a house jointly with my wife. I want to know about the legal implications regarding ownership in case of demise of any of the joint owners of this property?
— rajinder singh A.
If one of the co-owners dies, then his share in the property does not pass to the other co-owners, but to the person named in the Will of the deceased. The inheritor/natural legal heir becomes a co-owner-in-common with the other surviving co-owners.
Name missing in mutation records
Q.
My father had purchased 1 bigha land in Kullu in 1986 and had registered it in the names of his two brother, himself and me. But as I was not present at the time of the mutation of the land, I was ignored and the mutation was done in the names of my father and his brothers. Now when I approached the revenue officials to get this rectified I am being given different solutions by different officials. The plot is in my possession as per my share and a copy of registration is also with me. Since, the revenue officials are unable to issue me a parcha in my name, I can’t take loan from a bank for constructing a house. Since I am a government servant it is hard to manage these things. What course of action should I take in this regard? — rakesh chand A. Mutation does not confer any title. You have clear and transparent title/ occupation of your share in the property. You should make a representation to the revenue department such as SDM, Tehsildar, Kanungo or Patwari. You should specify the time period to represent the registration of mutation. If you don’t get any reply from the revenue department, then take a judicial step, and file a civil suit. You should take direction of registration in your favour, which is your legal right, since there is no dispute in property as regards to your share.
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Housing prices dip in 22 major cities Housing prices in 22 major cities, including Delhi and Mumbai, witnessed a downward trend in April-June period as compared to the previous quarter due to slowdown in demand, National Housing Bank Residex revealed earlier this week. Property prices in 22 out of 26 major cities have witnessed a marginal downward trend, quarterly update of NHB Residex said. The movement in prices of residential properties for the quarter has shown declining trend in majority of the cities, ranging from 0.45 per cent in Mumbai to 5.99 per cent in Ludhiana, it said. On the contrary, there was a price rise in four cities, 0.55 per cent in Dehradun and 3.07 per cent in Nagpur during the quarter April-June, 2013. In term of price decline, property prices in Indore declined by (-5.64 per cent), Vijaywada (-5.43 per cent), Hyderabad (-4.55 per cent), Kolkata (-4.06 per cent) and Guwahati (-3.92 per cent). Among others, residential property in Kochi declined by (-3.37 per cent), Patna (-3.29 per cent), Coimbatore (-3.26 per cent), Ahmedabad (-3.13 per cent), Faridabad (-2.42 per cent), Chennai (-2.26 per cent), Jaipur (-1.79 per cent), Delhi (-1.49 per cent), Bhopal (-1.30 per cent). NHB Residex tracks the movement in prices of residential properties on a quarterly basis since 2007. The index for Delhi includes property transactions in Gurgaon, Noida, Greater Noida and Ghaziabad. It has been expanded to include six new cities namely Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur from this quarter. — TNS
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Q. We are two brothers. I am living in USA for the past 30 years, while my brother lives in India with our mother. We had some ancestral property in our village and it was in the names of us two
brothers and our mother. We sold that property four years ago and purchased some agricultural land somwhere else in our names. Now my mother is quite old and she has not written any Will, As I am an NRI, will there be any problem if I accept the land as a gift after her death. I heard somewhere that NRIs cannot buy agricultural land in India and neither can they accept it as a gift. Will the new land bought by us be considered as ancestral property as my mother is also one of the owners? Am I eligible to get a share in my mother’s share in this property ? —pavninder grewal
The century-old land acquisition laws are well on their way out with the Lok Sabha okaying ‘The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012’ on Thursday. But the move has evoked mixed response from the stakeholders in the realty sector.
The location of a staircase can have a major impact on the energy of the home as it serves as a conduit of Chi, transferring the energy from one level to another. The conduit must be positive and auspicious for good energy to prevail through all the levels of the home.
Metal staircases are best in the west and northwest directions, although concrete staircases are also good. Wooden staircases are best when positioned in the east, south and southeast directions. The idea is to select according to the element of the corner where the staircase is located. Staircases should not be in the center of the house. These are better by the side of the building.
There are different types of staircases and each creates a unique flow of Chi as it moves upwards to the next level of the home. Take the following points into account at the time of construction:
At the outset, malls were thought to be the drivers of growth for the retail and entertainment sector. However, factors such as bad location, poor planning and lack of maintenance and absence of leased models in mall space have given a setback to this business.
JJ Valaya a brand and a name to reckon with in the fashion world is all set to open the doors of his flagship store christened "The Home of the Traveler" this year on MG Road, New Delhi. THT as it is called is a global, luxury retail brand in home décor, furniture and lifestyle accessories including gifts and collectibles. THT is poised to showcase a unique offering of rare and limited edition artefacts from all over the world, which have been curated by JJ Valaya. In an exclusive chat with The Real Estate the master designer talks of his design philosophy and his take on trend watch. Excerpts:
The national Capital will get more than 10 lakh houses by 2021 under Master Plan Delhi 2021 — the year when the population in the metropolis is likely to touch the 2.3 crore mark. The development body and the Ministry of Urban Development have come out with a magnificent solution — urban extension area on the outskirts of Delhi, which will see massive developmental projects.
