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| REAL ESTATE |
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area
watch: amritsar
In correction mode
The real estate market in and around this Holy City that was once compared with Gurgaon, has been stagnating for over 18 months as real estate developers, investors, dealers and buyers are in a wait-and-watch mode. The realty sector in the city, which is the main pilgrimage centre of Sikhs, has not shown much movement since the SAD-BJP government resumed its second stint in 2012. One main indicator of a slack market is the reluctance on the part of investors to enter it.
real
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tax
tips
Green
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Market
pulse
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area
watch: amritsar
The real estate market in and around this Holy City that was once compared with Gurgaon, has been stagnating for over 18 months as real estate developers, investors, dealers and buyers are in a wait-and-watch mode.
The realty sector in the city, which is the main pilgrimage centre of Sikhs, has not shown much movement since the SAD-BJP government resumed its second stint in 2012. One main indicator of a slack market is the reluctance on the part of investors to enter it. The ‘golden’ age This is in complete contrast to the scenario before 2008 when there was boom in the real estate sector here. Riding on the boom wave, Amritsar realty had scaled the graph swiftly following announcements to set up a special economic zone for export purposes, increasing global connectivity to the city with the rise in number of international flights at Rajasansi International Airport and indications of opening of the Wagah-Attari joint check post for trade with Pakistan, he quipped. There had been catalysts enough to drive the real estate czars of the sector to move to the border town with mega projects. Offering state-of-the-art civic amenities with residential plots and flats along with foolproof security, the real estate developers competed with one other to secure the largest piece of the realty pie. As many as 40 colonies, including 10 mega townships spread over 100 acres each, were set up primarily on the periphery of the city and beyond it by well-known national developers like Ansal Buildwell, AIPL Ambuja, Impact Gardens, Nirvana Metcalfe among others. These reputed national and regional real estate developers had targeted NRIs of Punjabi origin by specifically mentioning the distance of their projects from Golden Temple and Rajasansi International Airport. The developers tied up with the local real estate agents and utilising their links sold off a large number of plots in these projects to the business class, which constitutes a major proportion of the population in the city. Affluent traders, industrialists and shopkeepers parked their surplus money in these townships. Hence, the rate of properties shot up in these townships. But as most of the buyers were investors who wanted to make a good profit, three-four years down the line these are nothing but “ghost” townships with very few families moving in. As the global economic meltdown triggered by the US sub-prime mortgage crisis hit the realty sector,and many of these projects have either failed to take off or are in a limbo. Market drivers The developers, however, are in no mood to reduce their margins due to the increasing cost of construction material and labourcostly construction material and labour. Missing buyers and investors A senior executive of a township shared on the condition of anonymity that buyers had shown keen interest in the beginning but only for investment purposes and some had even made some profit by quitting early. “But there is hardly any construction in the new townships”, he said, adding that buyers were reluctant to settle so far off from the main city. The failure to receive good and steady response from the customers even made many developers to rope in financiers to raise multi-storeyed flats to attract buyers, but the response for this has also been lukewarm. The hurdles Experts say the real estate bubble of pre-2008 was set to burst sooner or later as the governments failed to announce any major industrial project or revive the sagging industry in this border area to provide much-needed thrust to the economy by generating more jobs leading to an increase in the demand for residential units here. Lack of a proper mass transportation system is another big hurdle that deters many from buying property in these townships on the city’s periphery. The proposed City Bus service is expected to be operational from December 15, and it is likely to improve the connectivity to these areas. “It is a universal phenomenon that only those cities turn into metropolis which have basic amenities like wide road network, mass transportation etc”, says Rajan Bedi, a local builder. Price correction The market here has seen correction as prices have come down in the secondary market. A number of investors exited the realty scene here in the first quarter of the year as the prices saw a correction. Going by the prices fetched auction of 10 residential plots of 250 sq yd in posh Ranjit Avenue area by the Amritsar Improvement Trust on June 29, 2013, the minimum and maximum bids for these plots was between
Rs 28,400 and Rs 29,300 per sq yd. The reserve price was Rs 21,000 per sq yd. The last auction held for plots in the same locality on November 23 had earned within a price range of
Rs 28,000 - Rs 33,300 per sq yd. Similarly, the Amritsar Municipal Corporation earned
Rs 36,100 per sq yd from a chunk of 4,067 sq yd land in posh Joshi Colony thorugh a public auction on July 26, 2013. However, a couple of years back the prices in upscale areas like Green Avenue, Basant Avenue and Joshi Colony used to be in the range of
Rs 45,000 to Rs 50,000 per sq yd. So there has been a substantial correction in the market here. Even the commercial market is not doing well and prices have fallen there too. Local builder Rajan Bedi, whose firm is currently developing about a dozen projects, said his firm had slowed down the pace of construction work at its Metropolis mall, which is being constructed over one lakh sq ft area on the Airport road. He added that about 45 per cent area in each shopping and multiplex mall in the city was lying unoccupied. He said that it would be another three to five years before the realty sector came out of the recessionary trend in and around the district.
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Lessons from Campa Cola compound
The plight of flat owners of Mumbai’s Campa Cola compound has clearly proved two things:
B. India needs a regulator for realty sector sooner rather than later. Even though they got some breather from the Supremem Court, the owners of illegal flats of Campa Cola compound will ultimately have to find alternate accommodation as the apex court made it clear that they won’t be able to avoid eviction and demolition. What is really shocking is that many of those who will lose their flats had, in fact, taken home loans from banks to buy the property. Banks approve loans only after due diligence and after being satisfied with the documents of the land and property. In this case several of the loans have been approved by nationalised banks like Punjab National Bank, Bank of Baroda, and private ones, including Citibank, ICICI, and HDFC etc. So, if you are among those who think that taking a bank loan will ensure that the property has a clear title deed as the bank will do the background check chore for you, then think again. Even after a bank sanctions a loan, your flat can turn out to be an illegal one. It also goes without saying that Campa Cola residents are not entirely above blame. The 140 affected families claim that they had no clue that their floors were illegal. They may be right. But, expressing ignorance has not helped them in any manner. Many of them knew fully well that they were taking a risk by investing in these flats. Perhaps tempted by a good deal, these buyers overlooked the irregularities. Given Mumbai’s skewed real estate market where a 476 sq ft MHADA flat costs ~55 lakh, one can just sympathise with desperate flat buyers, who naively or knowingly, invest in properties that aren’t entirely legal and then have faith that the same system that allowed the buildings to come up would also regularise them. The builders of Campa Cola compound had, in the past, obtained permissions for constructing only five floors. But later, they constructed two high-rises and five buildings with extra floors. A total of 35 floors have been constructed without approval. The buildings were constructed between 1980 and 1989. At the same time it is not easy to call residents really innocent or the ones who were taken for a ride as many of them knew that the flats were illegal. They knew the dubious legal status of the building but still bought them as prices were almost one-third of the prevailing market rate in the vicinity and they hoped to make a killing once the building was regularised. A resident of Campa Cola compound V. Srinivas told mediapersons that many buyers had got their documents checked by lawyers and had found title deeds, commencement certificate and the sanctioned plans in order. The big question is that who should one trust in such a scenario? “The Campa Cola compound matter should be an eye-opener for all those who are planning to buy a home of their own. They must check the title deed of a property. The property title deed is the legal document which proves the ownership of property. The title deed presents certain rights and freedom to the person who holds it and such deeds are required where person wants to transfer his ownership,” suggests Sunder Khatri, a noted advocate. There is also a feeling that given the inefficiency of municipal authorities in curbing such illegal practices, a real estate regulator is the need of the hour. In the absence of it, one would see more incidents like the Campa Cola compound one. “If a regulator was in place, then it would have stepped in before the situation got out of hand, analysed it and decided the course of action. What is really sad and shocking that even though every stakeholder of the realty sector is demanding for regulator, government is not taking any action,” said Sanjay Khanna, director, Kailash Nath Projects. Experts say that all would be buyers of flats or property must ask for the latest tax receipts from owner of the property. “ That way you can check whether any notices or requisitions have been issued on the property or any tax is due. While you are checking property tax receipt, there are two columns in it. One is for owner’s name so verify it and other is for tax payer. In some cases, the tax receipt is not with owner,” says Mahesh Pawar, managing director of Mahavir Hanuman Group. As the chances of fraud in property transactions are much more, you should do proper homework before sealing the deal. Let’s us talk about Deed/Sale Agreement. This is a very important instrument as far as property transaction is concerned. After agreement on payment of the property, it’s now the turn for advance payment and agreement between them. “You should know that the agreement is made on a stamp paper. It includes the final actual amount, advance payment, time limit to pay the due amount and how to pay it in instalments, time indication when the actual sale would take place. It also includes what would be done if the buyer or the seller defaults on any of the commitments. This ensures that the seller does not defer payments after finalising the deed and that he doesn’t sell to another party in the meanwhile. This agreement can be drafted by an expert lawyer and should be signed by both the parties with two witnesses,” informs Rajeev Chopra, CEO of ILD Developers.. It is important to remember that all property sales are illegal unless the transaction is by means of a duly stamped and registered sale deed. After collecting and checking all the documents, you have to register land/ property at the Sub-Registrar or the SDMs of your area. According to one estimate around 6,000 buildings in Mumbai fall in the category of Campa Cola Compound. And as for Building Completion Certificate (BCC), the figure is even scarier. It is also said that 90 per cent of structures in Mumbai don’t have this vital certification. Keeping these facts in mind, you never know how many buildings in our cities are similar to the Campa Cola compound. Who knows the building where you are living in at present is also illegal. “If a real estate regulator was in place, the builders of Worli apartments could not possibly have gone ahead with the illegal construction in the first place. It would have saved a lot of trauma and monetary loss to hundreds of people,” says Sameer Jasuja of PropEquity.
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real
take
However, successful negotiations need to have a firm foundation of information and strategy Knowledge of the current market situation Currently, the biggest indicator one should be informed of is the inventory levels, which play and important role in the dynamics of bargaining power across various cities. However, one must also understand how prices have moved in the recent past in order to keep flamboyant expectations in check. High inventory levels: As per our proprietary REIS database, developers in Mumbai are holding on to inventory levels of close to 48 months. That is quite significant, considering that a comfortable level of inventory is around 12-15 months. Other tier 1 cities such as Delhi (with 21 months), Bangalore (with 25 months), Chennai and Kolkata (both with 17 months) are in a relatively more comfortable state when compared to Mumbai, although there are signs of pressure to sell in these cities as well. Rates have not risen much versus inflation: Property prices have not risen much over the last 19 quarters (from 3Q 2008 until 2Q 2013) across major metros in India. In Mumbai, residential apartment prices have risen at a modest compounded annual growth rate of 4.3 per cent during this given period. If we compare this with the wholesale prices inflation rate, which averaged over 7.0 per cent during the same period, we realise that prices have actually fallen marginally. The situation in other metros such as NCR-Delhi (1.4 per cent), Chennai (3.8 per cent), and Bangalore (5.5 per cent) is not too different. Therefore, it is imperative to keep expectations from a negotiation at a rational level. Seek meaningful cash discounts In order to attract buyers in the currently difficult market, several builders are resorting to offers and freebies. Some of the recent examples of such offers include free 10-gram gold coin, waived floor-rise charges, free stamp duty registration, free memberships to club houses and amenities, free modular kitchens, international holidays, free cars, etc. Negotiators who do not see value in such offers can and should negotiate for better prices instead. Enlist the help of an expert Typically, buyers seek to avoid brokers because they wish to avoid brokerage fees. However, not all buyers are in a position to strike a good deal with builders or landlords directly. They could risk paying more than required, or winding up with an apartment in a bad locality and by a less-than-reputable builder. Buyers should explore all channels of transacting — brokers, online information sources as well as direct contact with owners, if possible. This will help evaluate one’s on-ground ability to strike a good deal. It may emerge that a good broker is actually a better bet. Express interest This is probably the most misunderstood aspect of a negotiation. It is a myth that expressing their interest in purchasing a flat puts one at a disadvantage at the negotiation table. In fact, buyers should clearly express their desire to purchase so that developer can seriously consider offering them a better deal. Builders treat genuine buyers very differently from idle information-seekers. Buyers should approach the negotiation table with their chequebooks, ready to pay a token amount and every assurance of serious interest if a good deal is offered. Don’t attempt to time
the market There have been far too many victims of this syndrome in the past, both in the financial markets and in real estate. Builders are currently willing to offer good deals to serious buyers. Armed with sufficient knowledge about the current market situation and honed negotiating skills, buyers can leverage the current opportunities to purchase a house at good prices. While prices will correct to some extent in certain cities, no one can precisely predict the bottom. — The writer is CEO – Operations, Jones Lang LaSalle India
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tax
tips Q. I own a property which was given on rent of
Rs 11,000 p.m. to a business house. The rent has been increased w.e.f. March 1, 2012 to
Rs 14,000 p.m. retrospectively and arrears of rent have been received along with the rent of April 2013. House tax paid for the year 2013-14 is
Rs 26,000. The same was paid in June 2013. Can you help me in computing the income from property as I don’t have any knowledge as to how arrears of rent have to be treated? — amolak singh
A.
Arrears of the rent received are taxable as income from house property. In other words, the owner of such let out property would be entitled to claim statutory deduction of 30 per cent from such arrears. On the basis of facts given in the query the rental income would be computed as under:
Am I liable to pay tax on transfer of land from firm?
Q. I was a partner in a firm and have retired from the said firm w.e.f. September 30, 2013. I had a balance in my capital account of Rs ~15,00,000. In full and final settlement of my account, I received a plot owned by the firm. I have been informed that the fair market value of the plot of land is about ~ 25,00,000. The land had been acquired for a sum of ~ 1,00,000 in 1999-2000. The firm is asking me to pay the amount of tax on capital gain payable by the firm on account of this settlement. Am I liable to pay such a tax? Is such a transaction covered by income tax for levy of tax on capital gain. If so, what would be the amount of tax payable thereon? A. Your queries are replied hereunder: The issue whether you are liable to pay such a tax would depend on the terms of the partnership deed. You may, therefore, look into such terms to take a decision on this issue. In accordance with the decision in the case of CIT vs. A.N. Naik Associates 136 Taxman 107 (Bombay), the transaction would be covered within the provisions of Section 45(4) of the Act. This Section provides that any profit or gain arising from the transfer of capital asset by way of distribution of capital asset on dissolution of firm or otherwise shall be chargeable to tax as income of the firm, of the previous year in which the said transfer takes place and for the purposes of Section 48, fair market value of the asset as the date of such transfer shall be deemed to be the full value of consideration received or accruing as a result of such transfer. The Bombay High Court in the above decision has held that the term ‘otherwise’ after the words ‘dissolution’ used in the Section would cover the retirement of a partner to whom any capital asset of the firm is distributed by virtue of his retirement from the firm The amount of long-term capital gain payable would be calculated as under: Indexed cost 1,00,000 x 939/389=
Rs 2,41,388 Consideration for transfer i.e. fair market value of land Rs
25,00,000 Long- term capital gain
25,00,000 - 2,41,388 = 22,58,612 The firm is thus liable to play tax @ 20% plus education cess of 3% thereon as tax on such long term capital gain. Can I claim exemption under Sec 54? Q. My father owned a residential house property in Delhi. The family has been living there for past 35 years. The same was sold by him in April 2013 for Rs 58 lakh. Earnest money of Rs 5 lakh was received towards such sale. However, my father expired in May, 2013 before the sale deed could be executed. He owned another plot which had been acquired before his death and he was planning to construct a new house on it by utilising the amount of capital gain on the sale of the old house occupied by the family. I am the sole legal heir to the assets of my father. The sale deed was eventually executed in September, 2013. The amount of capital gain arising on sale of the house has been deposited under capital gain scheme account. I would like to utilise the amount for the construction of house on the plot of land inherited by me from my father and claim the exemption under Section 54 of the Act. Is it possible to do so? — rajat kumar A. The following facts emerge from the query: There was a transfer of house property. The income for the property must have been dealt with under head ‘income from house property’. The house property was being used for self residence The amount of earnest money was received towards the sale of house property The sale deed could not be executed by you further because of your father’s death. You would be liable to discharge the tax liability in respect of the income of your father being the sole legal heir. Hon’ble Madras High Court has held in C.V. Ramchandran vs. CIT (1980) 4 Taxman 432 (Mad) that a legal heir who is liable to pay cannot be denied the benefit of Section 54 of the Income-Tax Act 1961 (The Act) which forms part of the scheme of taxation of capital gains which Section does not expressly stipulate that the vendor and the purchaser must be the same. Accordingly, you should be entitled to get the benefit of the provisions of Section 54 so as to claim the exemption for the taxability of the amount of capital gain. Q. I own a plot in Gurgaon. It was acquired in 1990 through a draw of lots. The amount was paid in instalments. The total amount paid over the years amounted to Rs 50,000. The plot was registered in the name of my wife (though payment was made from my account) in 1990. I have sold the plot for a sum of Rs 40 lakh. As against this the stamp duty value was Rs 60 lakh, I filed an appeal under the Stamp Act and the stamp duty valuation was reduced to Rs 45 lakh. Would I be required to pay tax on capital gain on the basis of the valuation made by the Registrar at Rs Rs 60 lakh or at Rs 45 lakh decided in appeal? Also please compute the amount of tax on capital gain and tax liability in case I decide to pay the tax and settle the matter. Will the tax be payable by me or my wife? She does not have any source of income as she is a housewife. — jaswinder A. The amount of capital gain arising on the sale of land would be computed on the basis of the stamp duty valuation settled in the appeal at ~45 lakh. The amount of capital gain would be computed as under on the basis of facts given in the query. The plot having been purchased from the funds contributed by you, the same shall be treated as the capital asset owned and held by you. You shall, therefore, be labile to pay tax on the amount of long-term capital gain of
Rs 42,42,033.
Which terms should be included in the family settlement deed? Q. My son has taken a loan of Rs
30 lakh from me through an account payee cheque two years ago. The money was credited to his account. Now he wants to enter into a family settlement with me by giving me some agricultural land in Punjab, which is almost of equal value. My queries are:
Kindly explain settlement agreement giving main terms and conditions. The land is already registered in his name. Do I have to get it registered again by making a conveyance deed on the stamp paper by spending huge money or not? Will the tehsildar-patvari concerned carry out the mutation without any objection or it is mandatory for me to purchase the stamp papers and get the conveyance deed made in my name? Having done the above exercise positively based upon your advice, can my son delete his liability of loan of
Rs 30 lakh from his balance sheet, for the purpose of filling an income tax return? A. Your queries are replied hereunder: A Family settlement deed is entered into between the members of a family who are having a dispute relating to various properties and/or business owned by the family. It is also possible to enter into a family settlement if there is a likelihood of dispute between members of a family regarding the properties or business so as to avoid the dispute. In the case cited by you, no family settlement would be possible. Instead a sale deed can be executed by your son in your favour for the sale of the property for a consideration of
Rs 30 lakh paid to him by you. The sale deed as and when registered will be on a stamp paper and the stamp duty will have to be paid on the market value of the property. The tehsildar/patwari would make the mutation in your favour on the basis of the sale deed so executed and duly registered with the Sub-Registrar. Your son can delete the liability of loan of
Rs 30 lakh from his balance sheet thereafter. In case the assessable value of the agricultural land under the Stamp Act is higher than
Rs 30 lakh, your son will be liable to pay tax on capital gain arising on the transfer of such land. The amount of capital gain would be computed by deducting the indexed cost of the agricultural land from such assessable value. Your son also has an option to gift the agricultural land for which a gift deed will have to be executed. Stamp duty in respect of such gift will have to be paid on the basis of market value of the property. In such a case no mention should be made in the gift deed in respect of the loan of
Rs 30 lakh. Such amount would be treated as a gift by your son which would enable him to delete the liability of
Rs 30 lakh from his books.
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loan
zone Q. I want to take a home loan for Rs 25 lakh, one year down the line. What is the maximum duration for a home loan, and should I opt for the maximum duration? Please explain the benefits and EMI comparisons. — pawan kumar A. Home loans are generally available for a maximum loan tenure up to 30 years while banks are generally giving maximum term of 20 years. However, availing the maximum loan tenure depends on the age at which you take the loan. In general, the shorter the tenure, the lesser the interest you pay to the bank. This means a 10-year tenure loan will have a lesser total loan cost when compared to a 30-year loan tenure for a particular loan amount and interest rate. However, remember to factor in processing fee and some other miscellaneous charges when comparing across different banks. On the down side, a shorter tenure would mean a higher EMI outgo every month. So, if you need a ~25-lakh loan, which is given to you at, say, a 10 per cent interest rate per annum, your EMI for a 10-year loan tenure would work out to approximately Rs
Rs 33,000, and Rs 23,000 for a 20-year tenure. Even if you choose a longer tenure, you always have the choice of pre-paying your loan before the tenure ends, thus saving your interest outgo significantly. You need to evaluate this after factoring in the pre-payment penalty charges of your bank. You can calculate your costs with accuracy factoring in pre-payment, as well by utilising an online EMI calculator. Q. I got a home loan five years ago from State Bank of . I had also taken a top-up loan on that. I also took a car loan from that bank. My query is:
Can I get one more home loan from this bank or I should approach some other bank? My salary has nearly tripled within these five years, so I want to buy a second home as an investment. — rajiv A. Of course you can take another loan, provided your income can support the EMIs. Your bank will exclude the total EMI outgo for all these loans, and base your loan eligibility on the remaining amount. Generally, banks fund around 40-50 per cent of your income. The rest is considered as your routine monthly expense. As your salary has tripled, you might just manage to balance all your debts! However, my suggestion would be that you use the extra money to make some lumpsum prepayments on your home loan, or close your car loan quickly. This way, you will reduce the loan dues, and also save on your total interest cost. Now that most banks have done away with pre-payment charges, you don’t stand to lose much. Doing this alone can increase your loan eligibility further, and help you get a higher loan amount. On another front, having too many loans at any given point in time can be a little risky during emergency situations like difficulties on the job front or recession. So be forewarned and prepared for such unexpected developments, which means you need to have an extra cash reserve for such eventualities, as well.
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Members of the RP City Welfare Association, who have bought flats in Ramprastha City in Sector 37D, Gurgaon, expressed their resentment against the builder for delay in the completion of the project recently. According to Vijay Pratap Singh, President of the association, “Construction of Ramprastha City has been plagued by delays. Flats booked in 2008 and 2009, and due for possession in August 2012 as per BBA agreement, are still not ready, despite many promises made by the builder”.
According to Singh last year the Ramaprastha management had promised the buyers to complete the project by July 2013. But this deadline has also been missed and now the management has promised to deliver the flats by March 2014. He said that going by the speed at which the work at the site was progressing, the buyers were not hopeful of getting possessions by March also. The harried buyers have sought written commitment and increased penalties if the deadline of March 2014 was also not met. But the company reportedly refused to do this. The buyers are paying a heavy price for the delay as many are paying rents of ~15,000 to ~27,000 per month besides paying EMI of ~30,000 to ~50,000 per month for the past five years, said Singh while adding that the buyers were also losing out on tax benefits as they had not got possession of the flats so far. When contacted, the CEO of Ramaprastha group, Nikhil Jain, said, “the construction period had got elongated due to certain unavoidable circumstances like curbs on usage of ground water in construction, control on sand mining, etc., which were beyond our control”. He said that the construction was on track and the possessions will be handed over as per the agreed timeline. — TNS
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Green
house Modern Garden Roses with perpetual flowering habit have been developed through hybridisation of wild species of roses growing in China and Europe. They are different from wild Roses which in nature flower once in a year mostly during spring or in summer in temperate region. The modern roses being perpetual in flowering will continue providing flowers all year round if grown when the night temperature is around 16ºC and day temperature range between 20- 25ºC. When grown under this
Under mild temperature conditions in Pune and Bangalore the perpetual flowering modern roses keep on producing flowers throughout the year. However, in the plains of north India roses produce quality flowers only in the winter months. Therefore, in order to have high-quality flowers in the winter especially around Christmas and New Year, the Rose bushes are pruned in October which provide high quality flowers during the yearend.
For the continuous production of high-quality blooms, the stems showing faded flowers should be cut down to the first five leaf level. However, by doing this the bush will continue to gain height. It has been observed that by end of April rose bushes exceed 3-5 ft in height. The best way to control the height of the bushes and also have quality blooms, the stems should be pruned to the five leaf level. By following pruning from both the levels, the height and the spread of the bush can be maintained at the desirable size without any drop in the continuity of flowering. Thrips and Aphids are serious threats and damaging the foliage as well as flowers . These can be controlled by spraying any insecticide viz. chlorpyrifos @ 2 ml per litre and Bavistin @ 2 ml per litre of water. The other prolific method to control various pests is to incorporate PHORATE granules of 4-5 gms per square meter of the beds along with manure.
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Market
pulse Housing prices increased in 12 cities by up to 5.30 per cent, while it declined in 10 cities, including the national capital, by up to
7 per cent during the second quarter ended September 30.
Housing prices in Delhi witnessed a decline of 4.53 per cent during July-September period compared with the previous quarter. However, it jumped by 6.7 per cent on annual basis, as per Residex released by National Housing Bank (NHB). On annual basis, the prices in Delhi rose by 6.7 per cent. Maximum price moderation was seen in Meerut by 6.88 per cent while, highest appreciation in rate was witnessed in Kolkata by 5.30 per cent. The movement in prices of residential properties for the July-September quarter has shown increasing trend in 12 cities ranging from 0.46 per cent in Mumbai to 5.30 per cent in Kolkata, and fall in 10 cities ranging from 0.93 per cent in Bengaluru to 6.88 per cent in Meerut, NHB said in a statement. Index for 4 cities namely Pune, Kochi, Coimbatore and Dehradun has remained stagnant, it said. Housing prices in Chennai rose by 4.95 per cent, Hyderabad 4.77 per cent, Ahmedabad 2.69 per cent, Lucknow 2.14 per cent, and Patna 2.04 per cent. However, prices in Ludhiana moderated by 4.46 per cent, Vijayawada 4.03 per cent, Nagpur 3.58 per cent, Bhopal 3.09 per cent, Indore 2.18 per cent, Jaipur 1.82 per cent, Bhubneshwar 1.03 per cent and Bengaluru 0.93 per cent. This latest NHB Residex for the quarter covers 26 cities, with base year as 2007. PTI
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Flooring solutions group Square Foot has launched ‘Rio’ laminate range of flooring. The new range comes with hand-scrapped finish that gives a timber texture look which makes it impact resistant. This flooring range doesn’t require any waxes, polishes, detergents or abrasive cleaners making it easy to maintain. Rio laminate range doesn’t retain allergens or dust mites. Easy to install, it comes in 8mm thick, 165 mm wide and 1210 mm in length. Price:
Rs 115 per sq ft. The Furniture Republic (TFR) has launched an exclusive collection of accent chairs for both indoors and outdoors. Available in vibrant colour options, luxurious upholstery with extra comfortable seating, the indoor chairs have a solid wood finish. Outdoor chairs are available in aluminium and polycarbonate materials in myriad colours which are sturdy, durable and high-strength with extra comfort. Price:
Rs 7,300 onwards
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Microtek Greenburg along Dwarka Expressway
Microtek Infrastructure Pvt. Ltd. announced its entry into the real estate sector by launching its maiden project ‘Microtek Greenburg’ recently. This will be a fully licensed and approved ultra-luxury residential project located in Sector 86 along Dwarka Expressway falling in New Gurgaon. Spread across an area of approximately 15 acres, the project is being constructed by Larsen & Toubro. The project offers three open 2BHK + Study, 3BHK + Sq, 3BHK + Study + Sq and 4BHK + Sq condominiums with ultra-luxury facilities. The construction has already commenced and is expected to be completed by December, 2016. WindPark in Greater Noida The real estate arm of KV Group, KV Developers, recently launched a residential project WindPark in Greater Noida. According to a statement issued by the company the group has received all the necessary approvals from Greater Noida Authority for this project. Spread over approximately five acres, the project will showcase around 7 towers with units varying from 2BHK, 3BHK and 3BHK + Servant room spanning an area of approximately 995 to 1,505 sq ft. The price will be ~30 lakh onwards. Barely 25 minutes from South Delhi, 20 minutes from the DND Flyway and 35 minutes from Connaught Place, it is well-connected to Delhi, Noida, Faridabad and Ghaziabad. Commenting on the development, Aman Agarwal, Director, K V Developers said, “We are extremely happy to receive these approvals which allow us to launch our flagship group housing project 'WindPark'. We are already receiving overwhelming response from the market.” The apartments, with one of the largest open areas, will include an L-shaped veranda opening towards the wind park or the road side. Adjoining a 130m-wide road, the plot is in close proximity to a proposed Metro line. Magia Arr in Goa Vianaar Constructions launched villas at its Magia Arr project at Salvador Do Mundo in Goa. The construction work at the project will commence from January 2014 and the villas would be ready for possession by July, 2015, according to a statement issued by the builder. Magia Arr will have 12 luxury fully serviced villas situated amidst the serene village of Salvador Do Mundo. Salvador Do Mundo is Portuguese for savior of the world. This majestic and ethereal village in Goa, was colonised by the Portuguese in 1565. Speaking about the project, Varun Nagpal (Managing Partner, Vianaar Constructions) said, “The breath- taking drive though the backwaters will make one fall in love with its natural ambience. Magia in Portuguese means magic that is how we describe the experience for this project. Each refined villa under Magia Arr is named after a famous magician. The villas have been designed to fit into the surroundings, making the best possible use of all the existing resources — light, terrain and the vistas”.
Sarvottam Shree in Indirapuram Sarvottam Group launched its new project Sarvottam Shree in Indirapuram, Ghaziabad. The project is approved by GDA and is spread over 6 acres. It will offer 750 apartments in 2, 3, and 4 BHK options starting from 1,150 sq ft to 2,195 sq ft. The price will be ~55 lakh onwards at ~4790 per sq. ft. — Based on information provided
by the developers
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Infra Trust Fund on the anvil
The Finance Ministry is firming up plans for a new Infrastructure Trust Fund aimed at accelerating the flow of long-term investments in various projects. “We are at the moment working on a new structure called Infrastructure Trust Fund. We will finalise its modalities soon,” Sharmila Chavaly, Joint Secretary (Infrastructure) in Ministry of Finance said at an organised by CII recently. According to a PTI report, she said the fund was expected “in the nature of REIT (Real Estate Investment Trust), which is prevalent in countries like Singapore, Hong Kong and USA”. “Under the structure, underlying revenue of projects will be transferred to a Trust and it will then issue units to investors, including foreign investors, who then want to buy the units,” Chavaly added. The government has been looking at various options to help fund the infrastructure sector which is estimated to require around $ 1 trillion investment by 2017. Recently, India Infrastructure Finance Company Ltd (IIFCL) launched its first Infrastructure Debt Fund (IDF) with targeted initial corpus of $1 billion. The IDF, which was proposed in the Union Budget for 2011-12 fiscal, is aimed at accelerating and enhancing the flow of long-term debt for funding infrastructure development. Finance Minister P. Chidambaram had recently said in Washington that the total investment requirements for sectors including power, roads, ports and civil aviation during the 12th Plan period (2012-17) is projected at $1 trillion. 138-cr order for Kaushalya Infra subsidiary Kaushalya Infrastructure has received orders worth ~138.39 crore along with its subsidiary for constructing two residential projects in Rajasthan. The Kolkata-based firm said in a BSE filing that said it has been awarded the contract by Rajasthan Government for constructing a housing project estimated to be ~51.65 crore. “The housing project issued by the Rajasthan Awas Vikas Nigam Ltd, a Government of Rajasthan Undertaking, will require construction of EWS, LIG and MIG units under public private partnership model,” Kaushalya Infrastructure said. Flare Realty Enterprises, a step-down subsidiary/ associate of the company, has also secured its first order worth Rs 86.74 crore for development of new township in Sadarsahar, Rajasthan on 110 hectares Nagar Palika Land under Rajasthan Township Policy, it said. REPL raises 100 cr infrastructure funds Consultancy firm REPL has raised ~100 cr infrastructure funds from AIF registered under SEBI. Rudrabhishek Infrastructure Trust one of the REPL wing is basically a Private Equity Fund Investor with~100 crore funds under AIF (SEBI). Pradeep Mishra Founder of REPL says, “Rudrabhishek Infrastructure Trust is created as a Category I Alternate Investment Fund(SEBI). The motive of REPL of raising these fund was primarily because with infrastructure creation slow down lenders have became increasingly wary of lending to the sector.”
Buy mansion get Rolls Royce for free! In a novel offering, a realtor in the US state of Florida is giving a Rolls Royce car for ‘free’ with a nearly $13 million mansion. The house in Boca Raton, Florida, is the largest in that area but realtors are having a tough time selling the home, so they are offering the unique “freebie” to help drive the sale home. The home is perched on the water. Has seven rooms, eight baths and nearly 16,000 sq ft of living space and the mansion could be sold if a person has a cool $12.75 million. “It’s very glam, very Hollywood glam. Very Great Gatsby, so it’s very unique,” Senada Adzem, the Boca Raton Realtor selling the home, was quoted as saying by NBC-affiliated WPTV. Adzem said it is also not that easy to sell the residence, especially when the housing market has taken a dive in Florida. Even though the house has a personal gym, two kitchens and a movie theater, Adzem said she needed a secret weapon to capture looks from the rich and the famous. “Not just a car, it is the car,” said Adzem. The owner of the home is throwing in a rare, $500,000 Rolls-Royce Phantom. “Everyone likes perks," said Adzem. The realtor expects the house to bring buyers in and the car to seal the deal.
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loan
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Many external and internal factors drive the price movement in Amritsar. Apart from the liquidity crunch plaguing the sector on the whole, the Centre’s policy of one per cent TDS deduction on transactions over ~50 lakh and the state’s ban on purchase of property on power of attorney, high registry charges, property tax have had an adverse effect on the realty scene here making the investors as well as end users reluctant to finalise any deals. 
A. We need to be very vigilant before taking a final call while buying a flat. 
The current slowdown in the Indian economy has impacted several sectors, including real estate. Apartment sales volumes have plummeted and inventories have piled up, creating an ideal environment for buyers to negotiate with developers.
temperature regime, any bud on the plant stems takes 45-50 days to produce flowers. The summer temperature being very high, the plants do not produce quality blooms. 
Elegant ‘Rio’
Comfy chairs