Taxing times
Haryana government’s property tax formula has left flat owners at a disadvantage
Pradeep Sharma

The rationalised property tax regime by the Haryana Government has sent lakhs of property owners, especially apartment owners, into a tizzy. In fact, the “irrational illogical” property tax formula has earned the ire of the apartment owners, including the cooperative housing society members. All of them have alleged that they have got a raw deal at the hands of Hooda government vis-à-vis the independent house owners.

Skewed rationalisation

A look at the property tax rates makes clear that the grouse of apartment owners is justified. “An independent house owner having a plot area of 300 square yards in A-2 cities will pay property tax at the rate of Re 0.75 per square yard, which comes out to Rs 225 per year. However, a person owning a flat having a carpet area of 1,400 square feet will be required to pay property tax at Re 0.75 per square foot, which works out to Rs 1,075 per year,” alleged S.K Aggarwal, general secretary of the Joint Action Committee of Cooperative Group Housing Societies, Panchkula.

And to rub salt into their wounds, Aggarwal alleged that they were not given a personal hearing by the Surjewala Committee formed by the Haryana Government to rationalise property tax, resulting in the current anomaly. In fact, the new property tax regime had sparked off widespread resentment among flat owners, he alleged.

Double whammy

“In fact, it is a double whammy for flat owners as they were also supposed to pay for maintenance of streetlights, power transformers, water supply and internal road network”, adds Aggarwal. The independent house owners are not supposed to pay for these civic amenities and the civic authorities are supposed to maintain these amenities in the case of areas having independent houses.

The formula

The Haryana Government recently came out with the new property tax formula on the recommendations of the high-powered committee headed by Parliamentary Affairs Minister Randeep Singh Surjewala.

The notification approved the slab system and divided municipal corporation towns into two categories, A-1 (Gurgaon and Faridabad) and A-2 (Ambala, Panchkula, Karnal, Panipat, Rohtak, Hisar and Yamunanagar). Towns having municipal councils and municipal committees were categorised as B and C, respectively.

The state government recently notified the property tax under which residential and commercial plots up to 100 square feet (500 square yards for industrial/institutional properties) were exempted from the tax. A tax of Rs 0.50 per square yard has been levied on property owners in A-1 cities (Gurgaon, Faridabad) and Rs 0.375 per square yard on vacant residential property owners in other municipal corporations in the state for plots measuring 101 to 500 square yards. The tax rate for residential plots measuring 501 square yards and above would be Re 1 and 0.75 per square yard for A-1 and A-2 cities, respectively.

For commercial plots, the rate would be Rs 5 and Rs 3.75 per square yard for A-1 and A-2 cities, respectively. An amount of Rs 2 and Rs 1.5 per square yard would be charged from the owners of industrial/institutional plots measuring 501 square yards in A-1 and A-2 cities, respectively.

For Class B cities (municipal councils) an amount of Rs 0.25 per square yard would be charged while Rs 0.20 per square yard would be charged in Class C cities (municipal committees) for plots from 101 square yards to 500 square yards. The property tax would be Rs 0.50 and Rs 0.40 per square yard for Class B and Class C cities, respectively, for plots measuring 501 yards and above.

For commercial property, the tax at Rs 2.5 per square yard (Class B cities) and at ~2 per square yard (Class C cities) would be charged for plots above 501 square yards. The owners of the institutional/industrial plots would have to shell out ~1 and ~0.80 per square yard from plots measuring beyond 501 square yards.

Meanwhile, for the residential plots up to 300 square yards, an amount of Rs 1 and Rs 0.75 per square yard would have to be paid in A-1 and A-2 cities, respectively. The rate for Class B and Class C cities would be Rs 0.50 and Rs 0.40 per square yard up to 300 square yards. For plots from 301 square yards to 500 square yards, the rate would Rs 4 (A-1 cities) and Rs 3 (A-2 cities). For 301 to 500 square yards, the rate would be Rs 2 (Class B cities) and Rs 1.6 per square yard (Class C cities).

Similarly, for apartments up to 2,000 square feet, the property tax rates would be Rs 1 per square feet (A-1 cities) and Rs 0.75 per square feet (A-2 cities). The rate would go up to Rs 1.2 per square feet (A-1 cities) and Rs 0.90 per square feet (A-2 cities) in case of flats from 2,001 to 5,000 feet. In case of flats up to 2,000 square feet, the rate would ~0.50 (Class B cities) and Rs 0.40 (Class C cities). For flats in the category of 2,001 to 5,000 feet, the rate would be Rs 0.60 (Class B cities) and Rs 0.48 per square feet (Class C cities).

As far as commercial property was concerned, a rate of Rs 24 per square yard (A-1 cities) and Rs 18 (A-2 cities) would be charged for shops up to 50 yards. For shops from 51 to 100 square feet, the rate would go up to Rs 36 (A-1 cities) to Rs 27 (Class-2 cities). In Class B cities, the rate would be Rs12 while it would be Rs 9.60 per square yard in Class C cities for up to 50 square yards. In case of property from 51 to 100 square yards, the rate would Rs 18 (Class B cities) and Rs 14.40 per square yard (Class C cities).

The property tax was scrapped in 2010 by the Congress government. As a consequence, the Central Government stopped the release of Central grants. The Hooda Government would now be eligible to get Central grants amounting to over Rs 750 crore.

Pay arrears

In a clear bid to mop up resources, the state government has brought the vacant plots within the tax ambit. Besides, the property owners will have to pay arrears of the property tax with effect from April 1, 2010. 

Exempted categories

• 100 per cent rebate to the religious properties, orphanages, almshouses, municipal buildings, cremation or burial grounds, dharamshalas, Central and state government educational institutions and government hospitals.
• 100 per cent rebate would be given to the self-occupied residential houses up to 300 square yard owned by serving and retired defence and paramilitary personnel or his/her spouse, families of deceased soldiers/ex-servicemen/ex-Central paramilitary forces personnel.
• 100 per cent rebate to the self-occupied residential houses owned by freedom fighter or his/her spouse and war widows.
• Similarly, 50 per cent rebate would be given to the state government buildings(other than buildings of boards/corporations/ undertakings/ autonomous bodies. 

Fact sheet

• Apartment owners up in arms against new irrational property tax formula
• Apartment owners to pay much more tax than freehold property owners
• Cooperative housing societies not given personal hearing by Surjewala Committee
• Apartment owners urge the CM to hold property tax notification in abeyance

Home prices may slip

Home buyers expect prices to fall in the next six months as indicated by housing sentiment index that fell by 20 per cent during July-September compared to the previous quarter, according to a survey by Indian Institute of Management Bangalore and property portal Magicbricks.

The Housing Sentiment Index (HSI) is based on an online survey of prospective home buyers in eight major cities of India — Delhi, Noida, Gurgaon, Mumbai, Chennai, Hyderabad, Pune and Bangalore.

“Home buyers across the nation expect real estate prices to fall over the next six months. The aggregate Housing Sentiment Index (HSI) dropped to 93 from 117 in the previous quarter, a decline of over 20 per cent,” IIMB and Magicbricks said in a statement.

An HSI of 100 suggests that buyers expect prices to remain at current levels, while values lower (greater) than 100 suggest that buyers expect prices to fall (rise). “An aggregate HSI score of 93 for the 8 cities surveyed indicates expectation of a price fall over the next 6 months. The index fell from 117 last quarter, which indicates a shift in sentiment among prospective home buyers,” it added.

Buyers in Bangalore still expect prices to increase marginally (HSI=106) while buyers in the other 7 major cities expect prices to fall, with Mumbai having the lowest HSI score of 81.

“The trend is strong in all the eight cities that were surveyed and reflects a shift from the previous quarter when buyers expected price rise to continue,” the statement said.

The percentage of buyers who expect prices to fall by more than 10 per cent has almost doubled from 14 per cent of sample last quarter to 25 per cent this quarter.

“Not surprisingly, more buyers are willing to wait, with almost a third of our sample willing to wait more than a year before buying a property,” the report said. 

tax tips
What is the current rate of interest for NHAI bonds?
S. C. Vasudeva
email your queries to realestate@tribunemail.com

Q. I am thinking of selling my flat for Rs1 crore. Its acquisition cost after applying CII works out as Rs 26 lakh. So there will be a capital gain of Rs 74 lakh. In order to save tax on this amount, I want to invest as under:

•  Rs 25 lakh will be paid to a builder as advance payment for booking a flat in Gurgaon. Balance amount is payable after three years only on getting possession of land.
• Balance Rs 49 lakh I plan to put in NHAI bonds. I’ll get the amount and interest after three years.

If my plan is correct? Please also tell me the present rate of interest on NHAI capital gain bonds if it is in your knowledge. I shall be obliged. — jaswinder garg

A.Reply to your queries is based on the presumption that you would be getting the possession of ‘flat’ instead of ‘land’ as mentioned in the mail, within three years after the sale of the flat.

• You should be able to save the tax payable on capital gain in case the exemption is claimed under Section 54 of the Act by taking the action as explained in the query except that possession of the flat should be taken within three years after the sale of flat. Further the amount of ~25 lakh to builder should be paid before the due date of filing your return of income so as to be out of the requirement of depositing amount of capital gain under capital gain scheme account.
• The bonds should be purchased within six months of the date of sale of flat. The bonds presently carry interest @6% per annum.

What will be the capital loss amount?

Q. I had purchased a flat at a total cost of Rs 10,85,640, which was financed by raising loan of ~9,23,000 from HDFC Ltd. and Rs 1,60,640 was contributed by me as margin from my own sources. The flat was allotted on November 8, 2005 and after completing the construction, possession was given on November 5, 2007. The conveyance deed was executed by the builder on June 11, 2012. The payment to the builder was paid as under according to progress of construction:

In financial year 2005-06 Rs 4,88,840 (exclusive of processing charges of Rs 5086 paid to HDFC Ltd. for processing the loan case.)

In financial year 2006-07 Rs 5,42,500

In financial year 2007-08 Rs 54,300

In financial year 2012-13 Rs 76,530

(Cost of Stamp paper, Registration fee and other misc. expenses to get the conveyance deed executed in my favour).

Total cost Rs 11,62,170

The said flat has been sold on April 4, 2013 for a total consideration of Rs 8,30,000, out of which a sum of Rs 16,600 was paid as commission to the property dealer leaving the net consideration of Rs 8,13,400 for me.

Kindly advise me on the following points:

• Whether the amount of expense for the financial year 2005-06 will be ~4,88,840 or Rs 4,93,926 inclusive of processing charges of Rs 5,086.
• What will be the index cost of the said flat keeping in view your clarification on point No. (a).
• How much will be the long-term capital loss on the transaction to be carried forward. The rent receives and interest paid on borrowing already stand reported in my Income-tax return for all the years. — santosh jindal

A.Your queries are replied hereunder:

• The payment made for processing charges of loan should not, in my opinion, form part of the cost of flat. Accordingly, the payment of Rs 4,88,840 made by you will be considered for computing indexed cost.
• The indexed cost of the flat would be Rs 20,81,982 as per details given below:
• The amount of long-term capital loss on the basis of above figures would be Rs 12,68,582 (20,81,982- 8,13,400).

Are agricultural land sale proceeds tax free?

Q. My father sold a part of the agricultural land. What are the tax formalities? I understand agricultural income is tax free. He does not want to buy another land and he intends to give this money to his sons. What would be the tax liability of sons in this regard? — vijay

A.The capital gain arising on the sale of an agricultural land is exempt from the leviability of capital gains tax if such agricultural land is not covered within the definition of the term ‘capital asset’. In accordance with the provisions of Section 2(14) of the Act agricultural land situated in the following areas is covered within the definition of the term ‘capital asset’:

In any area within the distance, measured aerially:

nNot being more than two km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than 10,000 but not exceeding one lakh; or

nNot being more than six km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than one lakh but not exceeding 10 lakh; or

nNot being more than eight km, from the local limits of any municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name and which has a population of more than 10 lakh.

In case the agricultural land sold in the financial year 2013-14 by your father is not within the area and the distance mentioned hereinabove, such agricultural land would not be covered within the definition of the term “capital asset”, and therefore, would be exempt from the leviability of the capital gain tax.

In case it falls within the area and the distance specified hereinabove, the amount of capital gain arising on sale of such agricultural land would be taxable. Any sum received on such sale can always be distributed by your father to his sons to any extent and in the manner in which he likes as there is no gift tax leviable in the country on such distribution. Such distribution should be made after the payment of capital gain tax if any, leviable on account of such sale. 

Can I issue rental receipt to wife?

Q. I am a retired defence officer getting pension along with disability pension. My wife is a teacher in a school and a tax payee. She gets HRA (Rs 4500 per month). We are staying in our own house that is registered in my name. Our house is a three bedroom with a servant quarter. Since I am a disabled soldier, my pension (the disability element and service element) is exempted from IT. My query is - Can I issue a receipt of rent to my wife so that she can avail tax rebate of HRA? If yes then to what limit? Of course I will show the amount as income from house property in my IT Return. — ram singh

A.Section 13A of the Income-Tax Act 1961 (the Act) provides for the exemption of the house rent allowance subject to conditions prescribed in the Income-tax Rules 1962. As per Rule 2A of the said Rules the amount of house rent allowance not includible in the salary is to be worked out as under:

• The actual amount of such allowance received by the assessee in respect of the relevant period; or
• The amount by which the expenditure actually incurred by the assessee towards the payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee for the relevant period; or
• An amount equal to -

It would be observed from the above, that one of the requirement is that the amount of deduction is limited to the excess of the amount actually incurred by the assessee towards the payment of rent over 1/10 of the salary of the relevant period. The issuance of mere receipt would not, therefore, be of any help and there has to be an actual payment of rent by your wife to you. It is not possible to compute the deduction allowable as the figure of total salary received by your wife is not indicated in the query. I would like to caution you that the department is not likely to agree for allowing a deduction as it does not seem to be natural for a wife to make payment to her husband towards house rent for the residential accommodation occupied by her as both of them are living together in the same house. 

Concern over coffered ceiling

Q.We have a coffered ceiling in our master bedroom. These are not beams, but symmetrical wood decoration in the original design of the old house where we live. The ceiling is flat. Is there an energy problem with this? — kehar singh

a.If beams are disproportionately large,they cause problem with air pressure and result in a hammer type effect. They can result in stress to the body. In a normal sized room the beams should not be more that 15-18 inches in depth, that’s measured from the ceiling. You can fix concealed silver lights in the cove to have best harmony.

Q.Entrance of my kitchen is in the southeast direction. Is it right? — shashi bala

a.Kitchen in Aagney Kon {southeast) is fine. Keep the gas stove along the eastern wall so that your face is towards Sun while cooking. Place fridge in the southwest.

Q.We had bought a plot in Delhi through a dealer and later we came to know that a cremation ground is adjacent to this block towards the southwest. What will be the effect of this? — amar singh

a.Preferably you should not build a house near such location. Enquire from the administration if the cremation ground site is going to be shifted somewhere else in near future. And also find if a kabristan is also located adjacent to this area. If it is so then don't build a house on this plot as a cemetery cannot be demolished or shifted. The ill effects of your plot cannot be rectified.

Q.My main door faces west. Can I hang a metal wind-chime there? My friends told me it is not advisable to hang metal chimes in any sectors of my house? — sudesh kumar

a.If your main door faces west, then it is okay to put a metal wind-chime at your door.

Realty Guide
B K Sanghi

Q. I need advice regarding a property that is in the name of my grandfather. He had died intestate in 1980. He was survived by his wife, two sons and one daughter. My grandmother expired in 1987 also without writing a Will. My father’s elder brother died in 2009 without writing a Will and he had no child and his wife had expired in 2008. My father passed away in 2003. I and my mother are his legal heirs. My sfather’s sister is married.

I also want to know if there are no legal heirs in Class I Relations and more than 1 heirs in Class II (as is the case with us), will the property be divided by their order of precedence or equally among all in one class? Brother/sister(#2) and brother’s widow(#8) both fall under Class II heirs, the order of brother/sister is higher than that of the brother’s widow. Will the property be divided equally here or higher precedence in order will get the share?

Kindly let me know how this property will be shared and who are the rightful legal heirs at this point of time? — manoj kumar

A.All the natural legal heirs of your grandfather (who died in 1980) whether they are male or female are co-sharers and have interest and right in the property till date.

A Supreme Court ruling of September, 2005 accords equal property rights to a Hindu woman along with other male relatives for any partition made in intestate succession.

A Bench of Justices R.M. Lodha and Jagdish Singh Kehehar in a judgment said that 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. The apex court said the female inheritors would not only have the succession rights but also the same liabilities fastened on the property along with the male inheritors.

The apex court passed the ruling while upholding an appeal filed in a case, challenging the Andhra Pradesh High Court’s decision not to recognise equal property rights of women along with those of their male siblings. So, in the light of these facts your father’s sister will have an equal share in her father’s property. And as your uncle had died intestate and without a legal heir then his share will also be distributed as per the legal provisions. This is a complicated issue and there can be different opinions. I would suggest you to consult a good advocate dealing in property matters in this case who will guide you about the distribution of share amongst legal heirs.

Mumbai realty prices may drop in 2014

Weak absorption and rising inventories in the residential market here may lead to price correction in Mumbai in the early part of 2014, real estate consultancy firm Knight Frank said in a recent report.

Nearly 2.9 lakh residential units are under construction in the city while unsold units stood at 1.3 lakh during the January-September period, Knight Frank said in a report.

“The weakening real estate prices suggest that long- standing stalemate between buyers and builders is finally turning in the buyers’ favour. The increase in inventories coupled with weakening absorption levels would put further pressure on prices,” its research director Samantak Das said.

Mumbai’s unsold inventory level is almost 44 per cent in comparison to NCR’s which stands at 26 per cent even with twice the number of units under construction, the report said.

Owing to weakening demand, new launches in the city plummeted over 40 per cent compared to peak levels in 2010 as developers shift focus on liquidating current inventories.

As many as 47,488 residential units were launched during January-September.

“The residential market has been witnessing a steep decline in new launches as well as demand. Unsold inventory pressure in Mumbai is the highest among all other cities and is depicting a growing trend. We expect a more pronounced price correction which may drive the market to a better equilibrium,” he said.

The current environment will put pressure on prices in the medium term and the scenario is expected to last till the forthcoming general elections.

Further, the rise in interest cost and decline in net profit in 2013 will compel developers to lighten load and de-leverage their balance sheets.

“Major listed companies have defaulted their loans this year, which depicts significant stress levels on their balance sheets. Developers are now trying to salvage the situation by limiting fresh launches and boost sales by promotional activities to avoid reducing the base price.

“Overall, the right time for buyers to expect good deals in the market,” company’s national director Mudassir Zaidi said. 

decor trends
Cozy and classy
Meghna Mirchandani 

Winter months are the time when we need to add essential elements that add warmth and cosy feeling to our homes. Here are some ways in which you can make your home cozy and inviting in winters:

Add carpets and rugs in personal spaces such as family lounges and bedrooms to add warmth and aesthetic appeal to the room. Carpets are available in various options such as woollen pile, low cut pile, woven, shaggy etc. So you have a lot of choice to check out.

Leather and suede upholstery in warm and dark colour tones is a good option in winter months.

To existing sofas, you can add your old pashmina stoles in various patterns and brighten up the décor, one can also add matching cushions.

It’s a good idea to invest in a mock fireplace /heater. It not only adds warmth to a room but also looks chic.

Colour plays an integral part in creating an ambience of the room. Dark colours such as red, maroon and shades of brown are considered warm colours and can add a feeling of warmth to any room. Opt for the ascent wall in dark tones of wallpaper /texture walls as these add to a warm look to the room.

Wooden flooring is also an excellent option to create the look of a log hut.

Wooden rafters on ceilings are a classic shift from usual lighting options.

In the evenings use votive and t lights in different areas of the rooms. Maybe over dining table or at entrance doors. These add to the ambience and make personal spaces cosy and soothing to the eye.

Artwork can be rich and in dominating colours and larger sizes to fill up the wall.

Winter months are ideal for enjotying the outdoor areas such as terraces, courtyards and gardens. Garden lights and candles can be added to light up the lawn area.

It is good time to invest in outdoor furniture made in wicker/plastic which is weather resistant and practical to allow one to enjoy the sunshine.

Also a good option is to get a stone oven made in the corner of your courtyard or invest in a barbeque set available at local markets to add spice to your winter parties.

And lastly a fantastic idea is to bring down the Christmas tree and set it up in the living room with lights and decoration adding to the winter feel of the house.

The writer is a New Delhi-based interior designer

Ground Realty
A tough and durable companion
Jagvir Goyal

Granite is now being used extensively in residential and commercial buildings. Basic reasons for its popularity are its availability in a variety of colours, its hardness and durability. That’s why its high cost is no longer a deterrent for the users. If you are also planning to use granite in your home, then keep the following points in mind:

Where to use: The most common use of granite in a house is for kitchen countertops. Though artificial marble is also becoming popular for kitchen countertops, granite still remains the first preference. A countertop material has to be strong, fully scratch, stain and heat resistant and impervious. It should also be able to retain its polish and finish for a longer period. Good quality polished granite has all these qualities. Moreover, granite is easily available in India and Indian cooking methods support its use. Spices, hot food, plenty of oil have no effect on granite counters. Hot pots, too, do not leave any marks on it.

Other uses: It is also good for staircases where a combination of granite and marble is often used. Next are the pillars for the main gate. These pillars are clad with granite to provide a majestic entrance. Granite also adorns the main steps at the entrance of the house. Being scratch-resistant, solid and strong, good to look at, granite is best material for pillars and steps. It can retain its shine for a very long period. It also tolerates hot temperatures well. Though not repairable but being very hard to get damaged ever, its use on pillars and steps makes them maintenance free.

Optional uses: Granite can be used in the front courtyard of the house to have a durable flooring. One shouldn't opt for polished granite for the courtyard. A combination of marble and granite or rough granite laced with thin polished strips of granite may offer attractive and non-slippery courtyard flooring. Some architects even the polish removed from granite before its provision in the courtyard. Like kitchen countertops, granite can also be provided as washbasin counters in the toilets.

Thickness: While selecting granite slabs, pay special attention to uniform thickness of slabs. Often, granite slabs, even in the same lot, may have varying thickness. Problems are faced in fixing granite slabs in position if the thickness is not uniform. It is difficult to even locate the joint in slabs when thickness of slabs is uniform and workmanship is good. Varying thickness is especially visible when granite is used for under counter washbasin slabs. In such cases, granite slab has to be cut along the periphery of washbasin and then grinded. Non uniform granite looks ugly along the periphery of wash basin. Granite slabs are available in thickness of 18 mm to even 30 mm.

Size selection: Clear-cut measurements of kitchen counter top, washbasin slabs, stair steps, gate pillars and other items where granite is to be used, should be taken and noted item wise. These will help in the judicious selection of sizes of granite slabs and wastage of this costly material is also minimised. Item-wise measurements also helps in selecting different colours and shades for areas. Suppose you are providing 4 ftx2 ft slabs for wash basins. Here, you can choose 8-ft-long slabs which can be cut into two and used on a pair of washbasins.

Cost: Granite can cost between Rs 70 per sq ft to ~ 400 per sq ft. Size of slabs, their colour, texture, thickness and polish matter a lot in deciding the cost factor. Unpolished granite may be available at just ~70 per sq ft and such granite can be chosen for courtyard flooring. For the kitchen countertop, wash basin slabs, staircase risers and gate pillars, well polished granite slabs should be chosen. Special attention should be given to the uniformity in colour of the slabs.

Colour & texture: While choosing granite, the first thing to decide is whether you want textured surface granite or a plain-looking one or one with lines or waves in it. Mostly, dark coloured granite is preferred over the textured one. For good quality, look for no patches or discolouration in the slabs.

Technical checks: In addition to hair cracks, there should be no pinholes in the slabs. A close examination of inner slabs of the lot should be made. Rub a cloth dipped in kerosene on the slabs to check for staining. Appearance of colour on the cloth proves that some oil has been rubbed on the granite slabs by the stone dealer to show them as polished and better coloured. Such slabs of granite will lose their finish in one or two months. Further look for flatness of slabs. Granite slabs are classified as Grade I, II and III depending upon the flatness of the surface. Ask the dealer about the grade of the slabs. Hardness value of granite can be checked to be more than 90 in case you have the means to check that. You may look for appearance of some circular marks on the back of granite slabs. If such marks are there, then it proves that these have not been cut by using proper cutting method. In such slabs the kerosene used in cutting travels to the upper surface of granite leaving ugly patches on it.

Granite tiles: Granite is also available in the shape of cut-to-size tiles. Popular sizes are 12 x 12 inch, 16 x 16 inch, 18 x 18 inch, 24 x 24 inch and 12 x 18 inch. Thickness of granite tiles is 8 mm to 10 mm. The advantage of using these tiles is that these are available at much cheaper rate than granite slabs. However, their use in kitchen countertops and vanities is not suitable. These can be better used in flooring and steps in combination with marble to produce attractive flooring designs.

Popular shades: More than 120 shades of granite are now available in India. Sellers classify these as South Indian and North Indian granites. The popular shades are: jet black or absolute black. Highly polished granite is the most common choice for kitchen counter tops. Black galaxy that has white dots sprinkled in black comes next. Tan brown, royal brown and cat’s eye are the other alternatives.

In stair steps also, black granite risers, when combined with white marble treads, look extremely attractive. For gate pillars and entrance steps, mostly, lakha red granite or cat eye granite are chosen. Other attractive shades are royal pink, royal brown, red galaxy and Himalayan red. 

Measurements

While taking measurements for payment purposes, all irregular edges should be excluded from the measurement and clear rectangle dimensions should be noted. This may cause significant reduction in the quantity measured by the supplier. A careful examination of slabs should be made to locate any cracks in the slabs. Your flooring man will promptly reject the slabs that have hair cracks because granite slabs having cracks will break during cutting. Cracked slabs should be out-rightly rejected. Wherever such a slab needs to be chosen due to any reason such as non- availability of another slab, measurement should exclude the cracked portion, howsoever large it may be.

Realty’s onion analogy
Rohan Sharma

The whole country was recently abuzz when the price of onions (one of the most essential staples of the Indian diet) rose above the price limit of ~100 per kg (that’s nearly $0.75 per pound) in the country’s capital and surrounding areas. The reasons for this were a crop affected by unseasonal rains and hoarding by suppliers and a few large farmers to create an artificial supply shortfall. This story finds a parallel in the country’s residential sector.

This sector is characterised by delays in project possession and healthy interest by investors who are not end-users but speculators looking for capital appreciation. There is a certain similarity between onions and the housing sector because both are commodities that fulfil an important need – providing food and shelter. In 2008-09, when housing demand was adversely impacted by the Global Financial Crisis and investors and end-users deserted the residential market, prices tumbled by over 30 per cent across different markets.

The subsequent revival in demand took place in 2010 and it was accompanied by a revival in price as well. Prices have risen by nearly 50 per cent from the market trough seen in 2009 and are trending at newer market peaks in most residential markets. The healthy buyer interest over the 2010-2012 period was the leading factor in driving prices upwards but this is not the case in 2013.

A major factor in the demand revival has been the active investor interest in the residential sector. In fact, in select cities and corridors such as Gurgaon in the National Capital Region, the investor momentum has managed to marginalise end-users, who are relatively risk-averse. By investing in projects that have partial approvals, the investors have taken away a large chunk of the upcoming residential supply and this has been motivation for developers to offer their thus limited stock to end-users at higher prices. This has started to happen more regularly and has made many residential corridors more speculation-driven.

Back to the onion analogy, over the years, onions have seen stable prices (prices have remained at Rs 22-32 per kg) as supply has been synchronised with demand. The wholesale market that hoards the commodity can be equated with the investors who keep end-users away from the market for short-term gains. Farmers – the onion producers who make a healthy profit in a short-supply scenario by selling at higher prices are analogous to developers who look to book returns from their projects by ensuring that buyer demand is always chasing lower availability.

The difference lies in the fact that the government intervened in the essential commodities market by importing onions to control price rises. No such method of control currently exists in the housing sector. Perhaps, beyond the normal income tax payable on house rent income (payable even for non-rented accommodation), some more punitive measures can be implemented to achieve better “price discovery” in the housing sector.

— The writer is Senior Manager, Research & REIS, Jones Lang LaSalle in India

Pick of the week
Click-fit floors

Dalhoff Larsen & Horneman A/S (DLH), a leading timber brand has launched latest range of engineered floors with the innovative click technology. The click technology is a DIY method that not only helps in minimising the expansion and contraction due to climatic changes, it also helps in maintaining the necessary gap and the aesthetic value of the engineered wood flooring. Engineered wood floor is real wood, where the top layer hardwood can range from 1mm to 6mm thickness. These floors can be used on wood sub floor or dry concrete slab.

Price: Rs 250 per sqft + Installation and taxes.

Realty bites
Property show in Chandigarh

Property portal IndiaProperty.com organised property show ‘Grahapravesh’ in Chandigarh last week. As many as 120 projects by 21 developers were on display at this property show organised in Chandigarh for the first time. Developers like Comic Group, Dream Value, GBP, ETH Group, SBP Group, Premium Acres, KST Group, Hexagon, Mona Townships and Investor Mart showcased their upcoming projects in and around the city, ranging from all the segments of the realty sector.

Speaking about the property show jatin Kumar, Zonal Head, IndiaProperty.com, said, “The tricity market has more end users and the mid-segment projects in the range of ~40 to ~50 lakh generated the maximum response from potential home buyers who visited the show. The luxury home projects at Zirakpur, Derrabassi and Mohali also got good response from the prospective home buyers indicating the diverse market preferences in the city”. A similar property show is also planned for Ludhiana in the next few months, he added.

Pune firm to invest 160 cr in resorts for seniors

Pune-based real estate firm Gagan Group will invest ~160 crore to set up resorts for senior citizens at Lonavala.

The project, NULIFE, will have apartments starting from ~35 lakh, and will be equipped with medical facilities and other requirements needed for seniors.

Lonavala is a popular hill station located about 65km from Pune city.

“We are investing around ~160 crore to set up India’s first world-class project of resort residences for seniors — NULIFE. We have already spent ~50 crore for the acquisition of 14 acres and will be investing another ~110 crore to construct a residential complex for senior citizens,” Gagan Group Director Alnesh Somji told PTI.

The project is a living retreat, where older individuals can age gracefully in unity with nature, blessed with soothing weather and pollution-free environment throughout the year, he said.

It has been designed by US-based architects, Perkins Eastman, Somji said. The first phase, comprising 6 buildings and 248 apartments, will be completed in 30 months. The pricing of these apartments starts at ~35 lakh which includes 15 years of maintenance, said Santosh Naik, MD and CEO of Disha Direct, which has conceptualised and marketed the project.

The complex will have medical facilities with ICU, 24-hour ambulance service, routine check-up facility, physiotherapist on call and trained staff in all health departments, he added. 

Launch pad
River Heights phase II

LandCraft Group launch three new towers at its River Heights project in Raj Nagar Extension, Ghaziabad. Around 650 families are already living in the first phase of The River Heights. The company has now announced the launch of the 600 new flats in phase II comprising 2,3 and 4 BHK apartments. The project is located at NH 58 which is well connected to Delhi, Merrut and Ghaziabad City. The three new towers will have 600 apartments between 718 and 1665 sq ft area. The price range is between ~23 lakh and ~45 lakh. Manu Garg, Director of LandCraft said the construction work of the second phase will be completed by 2016.

Medifloors

NCR-based Unnati Fortune Group recently introduced Medifloors, one-of-a-kind development exclusively designed for doctors, at the group’s latest project Unnati Fortune World, Sector 144, Noida Expressway. This premium space comes equipped with super specialty support services required by medical professionals. Designed by ARCOP, the project is spread over 25 acres of planned green expanse consisting of high-street retail, futuristic office spaces, premium residencies, a five-star hotel, an amphitheatre and world-class recreational facilities.

— Based on information provided by the developers

La-Gracia at Rishikesh

Cosmic Group recently launched a luxury residential La-Gracia City of Romance at Rishikesh. This 10-acre estate located 25 km from Rishikesh in the lap of the Himalyas, is inspired by Swiss architecture. Equipped with seven star facilities, it will have Signature Villas, Swizz Chalets, Presidential Suits and Luxury Studious. According to company release, the project will have open air hilltop theatre, Central Lake with a waterfall, European style shopping arcade, all-weather indoor swimming pool etc. The buyers will also have the option of leasing the units and earning rent. The price is in the range of ~1.5 crore to ~7 crore.