area watch: kundli
A lot on offer in affordable range
B.S.Malik

The Kundli region is the most preferential area for investment as well as residences and commercial activities because of its primary location.

The announcement of projects like the Delhi Metro service to Kundli from Narela and a rapid train corridor between Panipat and Delhi via Kundli, Murthal, Gannaur and Samalkha has given some momentum to real estate activities, particularly in Kundli area.

On the expectation of a boom in the residential market and increased scope for commercial activities in the area, companies have begun new bookings of residential flats. Number of real estate companies which were facing the slowdown of the market for the past two-three years have come up with some new projects.

While the TDI group remains the main developer in the Kundli region with a land area of around 1,250 acres, other developers like Parsvnath, Ansals, Omaxe, Parker, Tulip, etc., also have projects here. The Kundli belt has offered moderate to good returns to investors over the past two years, though not as good as in the belts of Noida and Gurgaon.

Tulip Infrastructure had started the third phase of its Tulip Grand project on its premises of around 12 acres of land. One phase of 475 flats in six-tower complex has already been completed. The second phase of three tower complexes of 190 apartments of 3 and 4 BHK units is under construction and is likely to be completed during 2014.

The company has started bookings for the third phase of two-tower projects which will have 180 flats of 3BHK with a study room. The booking price has been put at Rs 56 to 58 lakh, with the plan to complete it by 2016.

The marketing manager of the project said the company has made provisions of CCTV cameras, round-the-clock power supply, water treatment plant, gated security, etc.

The projects that are on offer in this region are in the affordable range and that is one of the reasons why the property market here has not lost its momentum in spite of a slowdown overall, says Ashok Antil, a local property consultant. The Tulip grand project is affordable for the middle-income group families as the price of 2 BHK is around Rs 35 lakh; 3 BHK is available for around 50 lakh and 4 BHK apartments can cost up to Rs 60 lakh.

The investment of Rs 110 crore by Kotak Realty Fund in the spacious TDI infrastructure at Kundli has also given a momentum to the group housing which is a part of 1,200-acre TDI township. Sky Villas, Kingsbury Apartments and Lake Grove City have also invited the attention of investors.

Similarly, Ansal’s phase-2 of the green Escape project in Sector 35, near Tulip Grand, has 36 high-rise apartments and the company’s Sunshine County also has a lot to offer to the mid-segement buyers because of affordable price range of apartments commencing from Rs 27 lakh of 3 BHK in an area of 1,420 square feet.

While there is a lot of choice available for mid-segment buyers, the problem of delay in delivery of projects is a cause for major concern. Commenting on the current situation, District Town Planner, Dilbag Singh, said the companies must gain the confidence of buyers in fulfilling the terms and conditions of agreements. There had been complaints from the buyers about not getting possessions within the promised time frame, he said.

No festival cheer for developers
S.C. Dhall

Mid-size developers, which were banking on festivals to help them clear existing inventory, may still need more time to show a black profit graph.

While the industry tried hard to get the attention of potential buyers by offering price discounts in some areas and also giving freebies to spur purchase decisions, buyers largely remained unimpressed and sales did not take off. Not only did the festive season fail to bring a turnaround, there are some who are saying that it may have been the worst festive season in almost a decade.

Though inquiries have gone up by 45 per cent, the transaction size is not growing proportionally as the market remain flat due to a combination of factors weighing down on it, according to Mangat Rai, a leading real estate consultant of the Tricity.

Typically, in North, the festival period starting from Navratri, Dusshera and Diwali account for a big ticket purchase like houses, with about 25-30 per cent additional sales happening during this period as people consider this an auspicious period.

Developers have tried to trigger consumer interests that have resulted in substantial inquiries over the past one month. The enquiries have increased by 45 per cent. However, this is not reflecting in the transactions as consumers are still fence-sitting and even hoping for rate corrections.

The real estate sector has high inventory levels with Mumbai having an inventory of close to 48 months, Delhi of 23 months and Bangalore of 25 months. This is above the comfortable level of 14-15 months,

External environment is volatile. Land acquisition funds are not available and consumers are taking longer to settle a deal even in the mid-market segment where developers operate.

Realty watchers note that business in festival season has been slower this year compared to last years. The percentage drop in sales this festival season, according to Mangat Rai, could be in double digits.

Consumers are looking for bargain from bankers and builders. Many consumers are postponing buys till general elections are over as they expect rates to soften. However, we expect the prices to move up said Mr. V.A.Ghai, retired deputy general manager from the State Bank of Patiala.

Top eight cities witnessed total estimated residential unit launches of 1.32 lakh units between January and September 2013 which represented a mere increase of five as compared to the same period for 2012.

Contrary to tradition, there has been a decline in new launch activities in the third quarter as economic conditions have not been encouraging for developers. This was because of slow demand with consumer confidence at the lowest on account of increased and consistently high pricing in key cities.

The demand from first time buyers and end users has been consistent as genuine buyers with adequate capital look at this phase as ideal to enter the property market on account of stable capital values

Experts feel that slowdown in economic growth and concerns around job security have had a major impact on the sector and potential buyers are taking time to decide. They are now waiting for the General Elections to conclude and stability to return on the economic front before taking major investment decisions such as buying a home.

While there is an opportunity for home buyers to look out for a good bargain, investors can also look at this market to make their move as they may get decent returns in the longer term.

Given the state of affairs within the industry, while one cannot rule out more price corrections, it may not be a good idea to wait forever. Do not expect a blanket correction in residential prices as it will only be in pockets of various geographies that are facing an oversupply situation.

tax tips
Is a let-out commercial complex subject to wealth tax?
S. C. Vasudeva
email your queries to realestate@tribunemail.com

Q. I recently constructed a commercial complex in Gurgaon, a part of which has been let out to various tenants. The other part has been sold. I have been advised that the let-out building is subject to wealth tax and I am supposed to file the wealth tax return. Is the information given to me correct? — s.k. mehta

A. The wealth tax is leviable in respect of net wealth on the valuation date of every individual, HUF and company at the rate of 1 per cent of the amount by which the net wealth exceeds Rs 30,00,000. However, such net wealth is to be computed after considering the value of those assets which are specified in the clause (ea) of Section 2 of the Wealth-Tax Act, 1957. One of the items covered in the said clause is any building or land appurtenant thereto whether used for residential or commercial purpose not including any property in the nature of commercial establishments or complexes. In my opinion, a commercial complex though covered within the term building for commercial purposes, yet will have to be excluded from the levy of wealth tax as being a property in the nature of “commercial establishments of complexes”. Therefore, if you do not have other assets which are includible for wealth-tax purposes as specified in clause (ea) of Section 2 of the Wealth-Tax Act, 1957, there should not be any necessity for you to file a wealth-tax return.

Issues of NRI disposing of house

Q. I was allotted a plot measuring 528.125 sq. yd. in 1967/68 in Defence Colony, Sector 35-A, Chandigarh, by the UT administration when I was serving in the Indian Army. I retired from the Army in 1974 and constructed the ground floor from 1974-76 and after taking loan from UT administration and other sources and selling gold, silver, gun, pistol, scooter, and retirement-cum-death gratuity amount etc.

I retired from Punjab government in 1996 and got constructed the half first floor in 1998 after getting various dues from the Punjab Government, loan from bank and some amount sent by my son from the US.

My whole family is NRI (OCI) Overseas Citizens of India. I visit India frequently to look after the property, other visit occasionally. I pay income tax from 1963 onward when I got regular commission in the Army and was paying as DDO while in Punjab Government service.

My queries are:

If I give the house to my son and daughter equally what is the payment amount involved and procedure to be followed.

If I sell and want to take the money to the US how much is the capital gain or amount to be paid and to whom?

If I or my children purchase house in the US out of this amount how much is to be paid in India and the US and to whom/ procedure to be followed? This amount is to be used to purchase house in the US by me or my children.

My wife has a 50% share in the house and I also fill her IT returns after my retirement since I gave some portion on rent. How much amount the US will deduct on this as money to be sent through bank?

I may be advised the best possible way to do so that I may not be on the road in old age, and the children get the property without getting involved in the lengthy and troublesome procedure we had in the country, more so when they do not live here and had no time to stay here for a long time. I am 75 now and have good health at this age.

I also think of making a Trust by putting my bank money in it and making a clause that trust to look after me, my wife and daughter till we are alive as my daughter is not doing good and is wholly dependent on me. Please advise whatever is best under the circumstances. Everything should be legal and as per rules. — k.s. shergill

A. Your queries are replied hereunder:

You can gift the house to your son and daughter jointly. It would involve payment of stamp duty on the market value of the property. Presently, stamp duty is chargeable in Chandigarh @6% of the value of the property.

The amount of capital gain can be computed on the basis of the figures of the cost of plot and cost of construction of the residential house which was built by you in 1974 and 1998. These figures have not been given in the query and therefore it is not possible to compute the amount of capital gain. Tax on capital gain is payable to the Central government. It may be possible to transfer the amount realized on the sale of the residential house after payment of due taxes to United States of America provided the amount for purchase of plot and incurred for construction has been spent from the remittance from abroad. Since the construction was made when you were living in India and with the funds earned/borrowed in India, it is now possible to remit a sum of $75,000 per year from your NRO account.

In case you intend purchasing house in the US, it would be advisable to purchase the same in the name of the person/persons who own the house in India. It may however, be difficult to remit the entire amount of sale consideration to the US in one go in view of the limit laid down by RBI as explained in (b) above.

The deduction of tax would be made in India by the person who will make the payment of the amount of consideration towards the sale of the house. The deduction will be at the prescribed rate. Presently a rate of deduction for financial year 2013-14 in respect of long-term capital gain is 20%. In case the amount of long-term capital gain exceeds Rs 1 crore, a surcharge @10% thereon is also payable. Education cess of 3% on the amount of tax is payable even if no surcharge is leviable.

The best alternative for you would be to make a gift of the house in favour of your son and daughter so that income there from is available to them and can be utilised in the manner in which they like.

It is possible to make a trust for the benefit of yourself, your wife and your children. It may not involve any stamp duty provided the net sale proceeds of the house are put into the trust. You can also have trustees who are dependable / close friends on whom you can have a blind faith. In case you do not have any such person in mind, it would be advisable to make a gift in favour of your son and daughter who can look after the property after your and your wife’s death.

Using capital gain for construction

Q. After the sale of my residential house, I have deposited the capital gain in my capital gain account and have taken FDR for the whole amount for three years. Now before two years, I want to purchase a residential house or to construct a residential house in the name of my two sons, myself and my wife with a vacant land of 100 sq. yd. I want to demolish half portion of this house measuring 8 marla of land and invest this capital gain on its new construction for residential purposes. Kindly advise if I can do so. — r.p. kapoor

A. You have not mentioned in the query whether the residential house presently owned in the name of yourself, your two sons and your wife is jointly owned and such joint ownership has been disclosed in your tax return. Presuming that you are 1/4th owner of the existing residential house, you can avail exemption under Section 54 of the Income-Tax Act, 1961 (The Act) in respect of the capital gain provided the amount of capital gain arising on the sale of a residential house is equivalent to 1/4th of the total investment made on the construction of the new house after demolition of the old house. In case your share of investment in the new house is less than the amount of capital gain, the balance would be taxable as a long-term capital gain in the year in which the period of three years after the sale of the old residential house expires. It may be added that this reply is based on the assumption that the amount of capital gain deposited under capital gain scheme is in the nature of a long-term capital gain

Calculating tax on property proceeds

Q. I had purchased a plot for Rs 57,000 in 1994 (jointly with my mother 50% + 50%). We had sold the plot in January 2013 for Rs 8,95,000. We have purchased a residential plot for Rs 4,85,000 in July 2013 and also spent Rs 35,000 towards registration and Rs 15,000 towards brokerage and other expenses.

Please guide what will be the capital gain and tax liability and how to use balance money to avoid capital gain tax. My and my mother’s annual income is below taxable. — s.k. goel

A. The indexed cost of the plot sold by you would be Rs 2,06,652 and the amount of capital gain on the basis of figures given in the query would work out at Rs 6,88,348. You can avail exemption from the taxability of the aforesaid capital gain provided the amount of net consideration (i.e., Rs 8,95,000 minus expenditure incurred wholly and exclusively in connection with the sale of plot) is utilised for purchase or construction of a residential house within the specified period. The specified period for purchase of a residential house in this case would be within two years after the date of sale of the plot and for construction of a residential house within three years after the date of sale of plot. The purchase of plot itself would not entitle you to claim the exemption. Therefore, in case you intend claiming exemption under section 54F of the Income-Tax Act, 1961 (The Act) you should deposit the balance amount of the net consideration (i.e., amount of net consideration minus cost of the plot including registration and other charges) in a bank under capital gain scheme account before the due date of filing tax return in respect of the year in which capital gain arose. The amount so deposited can be utilised for purchase or construction of a residential house within the period referred to hereinabove.

decor trends
Style under your feet
Carpets add a lot of warmth and character to the space that they are placed in. They are increasingly being used as wall art as well
Ayush chaudhary

When you think of carpets, you think of beautiful, intricate pieces of art that not only add luxury and sophistication to your floors, but also complete the living space that they are placed in.

Carpets add a lot of warmth and character to the space that they are placed in and are increasingly being used as wall art as well. Today, exclusive rug galleries have created a fantastic range of designs , including classical interpretations, transitional motifs and contemporary abstracts.

The use of a vast range of designs, eclectic mix of colours with the use of various different textures enhances the role of carpets from mere floor coverings to pieces of art.

The kind of carpet that you choose for your wall is a very personal decision and totally depends on the kind of décor that you have opted for in the room. For a more ornate room with carved furniture, you should use a more classical rug whereas in a more minimalist setting you can go for a vibrant, abstract rug that adds a touch of dynamism to the space.

Before you decide which carpet to buy please keep the following things in mind:

Size: Size is important. Any particular carpet, always looks better in a bigger size rather than a smaller one. It is okay if it goes under the front legs of the bed or of the living-room sofa.

Colour: The designer rugs/carpets available today have enough colours to complement any furniture or fabric. But, you may like to use a particular background or border colour to highlight or complement the colour scheme you may have in mind for the desired space.

Design: This is a very personal choice. You can easily mix and match various carpet designs available today. You can have a rich-looking classical carpet in your living room and a beautiful contemporary and abstract carpet in your bedroom.

Textures: When you think of carpets, you mostly think of woolen carpets or Kashmiri silk carpets. However, there are a lot of different textures that have emerged within these categories as well as some new ones. With silk as well, there is the kind of silk that we have seen in Kashmiri carpets over the years, which is machine spun and has a symmetrical kind of look. There is also a handspun silk texture, which gives the carpet a very antique and muted kind of look. Besides various textures of wool and silk available today, you will also find beautiful rugs in textures like jute and leather.

Maintenance

Maintenance of hand-knotted carpets versus hand-tufted or machine-made carpets is very trouble-free. Hand-knotted carpets are washable which gives you a big peace of mind. These rugs would generally last for several years.

To ensure longevity of the rug, be sure to use a walk-off mat at each entrance area. This is a simple preventative measure. Also, vacuum your carpets regularly to ensure no food crumbs settle in the roots of the carpet.

It is bound to happen sometime that one accidentally spills or drops something sticky on a carpet. The important thing to do then is to deal with the stain or the spillage immediately by dabbing with a clean white cloth and soapy water. If action is not taken, the stain will penetrate into the carpet and make it harder to remove it. For stubborn stains, consult a professional carpet cleaner.

— The writer is Founder and Creative Director, Cocoon Fine Rugs, Bengaluru

Ground Realty
Choosing a plot for your house
Jagvir Goyal

Thinkstockphotos/Getty images

Many requests have been received from the readers to outline the points that should be kept in mind while buying a plot for final settlement. Here is a list of all such points with brief explanation of each.

Investment in residential plots is made by people either to seek good returns or to construct a house thereon to settle. While the investment for returns may not require much of thought as property almost always fetches good returns, purchasing a plot for constructing a house and final settlement demands much deliberation and homework. Here are certain factors that must be given due weight while buying a plot for house construction:

Once the city for settlement is finalised, look for the best colony or sector in it. First of all, it must be an approved one. Look for a colony that has all the development works in place and not under promise only. Give preference to a plot located in an urban estate or a government sector or an improvement trust of the government. The colony should have fair amount of greenery in it. A simple house on a good plot is better than a palatial house on a poor plot. If the colony is a private one, it must be approved by the government, fairly occupied and having the roads, over head tank, water supply, sewerage, drainage and street lighting in place.

Make an early investment: It has often been observed that by the time one takes final decision over the city and the colony to settle, the cost of the plots there has gone beyond one’s reach. One should, therefore, try to take the decision as early as possible. Once the plot is purchased and secured, major appreciation in the cost of the plot is arrested by the buyer.

Check the construction period: While buying a plot, always check the construction period available to you. There is certain initial period granted for construction of house on a plot after giving its possession to the buyer. If you are buying the plot within this period, you have ample time in your hands to build your house. After the initial period, another fixed period is granted by the government body when the buyer can defer the construction of the house by paying non-construction fee every year. After the expiry of this period, the plot becomes liable to resumption by the government. Therefore, while selecting a plot, ensure that sufficient time period for construction of house on it is available to you.

Check the location: After finalising the residential colony in which you want to buy the plot, check the location of the plot. Look for a plot that has a wider road in front of it. Further, avoid the main entry road of the colony as often, traffic on this road causes lots of disturbance. This aspect was irrelevant a few years back but now, as every household has a number of different kinds of vehicles, traffic nuisance has become a major factor to consider. In case the colony is located near a railway line, prefer a plot in a row of plots located farthest from the railway line.

Check the encumbrances: See that a sewer manhole is not existing in the area that will accommodate the main passage to your house. See that a transformer is not located close the boundary wall line. See that a grown up tree with its roots spread all around is not located near the plot boundary. See that overhead high tension electricity wires are not passing over the plot or adjoining it. Often, care is taken while laying HT wires that these fall in open area only and minimum height norms are also met by the line laying authorities. Yet, as these wires transmit strong electromagnetic radiations, one must ensure that their presence will not cause any ill effects on the house and its occupants. Also see that good approach to the plot is available so that no problem is faced in arrival of truck loads of material during the construction of the house.

Look for park-facing plot: Often, park-facing plots are sold by the authorities by charging an extra cost ranging from 5% to 10% of the cost of the plot. Bear this cost and go for a park facing plot as such a plot has its own advantages. A park facing house adds years to your life and quality to your living. As the time passes, the park extends its facilities and environment to you. You tend to have brisk walk in it in the morning and a stroll after meals in the evening. Of course, all these benefits are available only if the park has been well maintained by the authorities and has not been left unattended to become a garbage dumping yard. In case park facing plot is not available, look for a plot in such a row of plots that faces rows planned in perpendicular direction to it. 

Look for a corner plot: A corner plot provides immense benefits. Such plots often cost more on two accounts. One, the area of such plots is more than the area of other plots in the row. Secondly, being at a preferred location, these are sold at a premium of 10% like park facing plots. Choose to pay the extra cost and reap immense benefits that corner plots bring. Wherever common wall concept still prevails, one common wall gets avoided in case of corner plots. Planning of a side entry to the back courtyard after seeking permission of authorities often becomes possible leading to multiple benefits during living in the house like independent entry for the maids, the servant, the tenants, the gas supplier and so on. Then there are natural lighting, ventilation, side balcony advantages also.

Avoid low-lying plot: Avoid choosing a low-lying plot. Extra cost needs to be incurred in construction of a house on it as the foundations cannot be rested over filled up land and need to be dug below the natural ground level. The foundation walls further need to be supported by erecting side supports. Then, there is extra cost of earth filling below the floors. Further, these floors always remain susceptible to settlement as proper compaction of earth filled under the floors is not ensured in houses. However, if the byelaws permit building of a basement and you too are interested in building it, then low lying plot may turn advantageous for you. Only precaution that needs to be taken in this case is that the area should not be water logged.

Check the direction: Of course, East or North or North East facing plot should be preferred but in the present times, when the row of houses are planned back to back, combining this aspect with all other aspects such as corner location, park facing, far from traffic nuisance etc becomes very difficult. For a given plinth area, cost of a house or building will be least when its perimeter is least. So a square building will cost lesser than a rectangular or an irregular building. Prefer a wider width for your plot.

Check legal aspects: Ensure to check that the title of the plot is clear before sealing the deal. Always look for a free hold plot. Prefer to get it transferred in your name instead of acquiring it on the basis of General Power of Attorney, Will and all that. Prefer to get it transferred in joint names of yourself and your spouse. Ensure that the plot is entered in your name in the registers of the government body with all the government’s dues cleared to date. If the colony is developed by a private builder after getting it approved from the government, be sure that the land under it is not disputed and the builder has paid all dues to the farmers whose land has been acquired.

(This column is published fortnightly)

Managing dead mall spaces
Shubhranshu Pani

As a consequence of India’s retail transformation, the country has seen a substantial increase in mall space over the years. However, out of the hundreds of shopping centres operational today, only a few can be counted as genuinely successful.

The success of a mall depends upon various factors such as location, accessibility, tenant mix and also the optimal space utilisation. One of the prime factors for the less-than-successful malls in the country is poor mall design, with suboptimal utilisation of spaces. This results in ‘dead spaces’.

Considering the present market dynamics, dead mall space management has become a critical consideration when it comes to the optimisation of a shopping centre’s per square foot productivity.

In a rapidly evolving retail market like India, adapting to the changing needs of consumers as well as retailers has become imperative.

If the dead spaces in malls can be converted into productive and useful areas for leisure, entertainment and dining, then the mall would attract greater footfalls. In order to achieve efficient space management, the designing of shopping centres requires a holistic approach so as to optimise the leasable area for the mall developers.

Apart from non-performing malls, successful malls in India are also continuously working towards eliminating dead spaces so as to achieve better rental realisation. This can be achieved by:

Making structural design-oriented changes

Implementing softer parameters such as changing the positioning of anchor stores, or

Introducing major attractions or newer retail categories in dead spaces.

Ongoing remedies

In India, some mall developers have eliminated the alleys or narrow passages that the mall’s inherently poor design produced, and have merged them with the existing stores.

Such narrow alleys create a secondary circulation pattern with no central concentration zone in the mall, thereby leading to decreased footfalls in such areas. This also creates a dead space with lack of visibility and access for the stores towards the rear, thereby affecting the rental realisation of these stores.

In order to improve leasing feasibility, developers are now opting for better design with a good circulation and visibility of such stores. There is now greater emphasis on directing footfall traffic along the mall’s entire floor scape, thereby providing parity and frontage to all stores.

Mall developers are also adapting their malls according to changing needs and trends, taking into account the competition. In order to facilitate footfalls in the entire mall, dead spaces are being eradiated by changing the position of the anchor stores along the corners or ends of the mall. Also, some mall developers are introducing the novel first-time brands or attractions in the extreme ends in order to encourage shoppers to stroll through these areas.

Imperative Focus Area

In the future, dead space management is going to play a crucial role in achieving mall developers’ economic goals, as well as in rejuvenating mall space for the introduction of newer categories and brands. Moreover, the upcoming malls are increasingly being designed with a sharp focus on the tenant mix and the size requirements of various brands from the planning stage itself.

With the liberalisation of FDI and entry of international brands in the country, the country’s retail real estate developments are going to be increasingly transformed to match international standards of overall design, ambience and store format requirements. Improving space utilisation in malls to adapt them to international standards and norms is going to become a crucial focus area.

Under ideal circumstances, the requisite features are not introduced retrospectively but are, in fact, factored into the mall’s original design.

However, there always needs to be a healthy margin of flexibility. In fact, even the best shopping centre design allows for constant adaptation to changing requirements. Indian shoppers are more discerning than ever, having been exposed to the retail trends of more developed countries.

This does not only mean that they know their brands — it also means that they are perfectly aware that dead spaces in a mall are indicative of something being out of whack. Since retail trends change and some solutions to eliminate dead spaces do not always pan out as expected, mall developers will have to examine and re-examine their options in this respect as a constant work-in-progress.

The writer is Managing Director, Retail Services, Jones Lang LaSalle India

real talk
‘Policy should be realigned’

Harindra Nagar is the founder Managing Director of Paras Buildtech India Pvt. Ltd. His passion for grand structures led him to establishing the company a decade ago. The company has come a long way from building the first mall of Zirakpur (Punjab) and has significant presence in two of the biggest real estate destinations in India — Gurgaon and Noida. Having delivered technically sound and architecturally beautiful projects in three segments of real estate sectors — residential, commercial and retail in Gurgaon, Mohali and Zirakpur, the company has six residential (Paras Panorama, Paras Tierea, Paras Seasons, Paras Quartier, Paras Irene and Paras Dew’s) one mixed-use (Paras Square) and four commercial projects (Paras Twin Towers, Paras Downtown Centre, Paras Trade Centre and Paras Trinity) in its kitty.

Some of the recent policy decisions taken by the government and increase in home loan rates have been termed as bad news for the realty sector. Are you expecting things to improve before the General Elections?

The policy makers seem unperturbed by growing unrest among youth due to lack of job opportunities and they are treating businesses as milch cow. Instead of feeding it properly to sustain long-term output, the authorities want to milk all the output at once while withdrawing life-support system simultaneously. And, when process of thinking has shifted to negative curve, we can not expect any helping hand, at least not till new government is in place.

How do you view recent SC judgment on imposing 5 per cent VAT on non-constructed flats?

Our argument is that the government should not treat businesses as a mere source of extracting funds. The real estate sector has never shied away from its responsibility towards the country by way of taxes. Our only contention is that taxes are being levied at each step and along with that new ‘seasonal’taxes are also being introduced. Though the case of imposing VAT was related to Maharashtra , we have reasons to be apprehensive that other state governments will be taking a cue from it.

How is your company faring in Punjab? Do you see a revival of buying sentiment in near future?

Though we don’t have plans to launch any new project in Punjab in the immediate future, the state is special to us as we launched our initial projects in Zirakpur and Mohali. We would not miss any opportunity to launch any new projects in the state. As for the market sentiment, the demand reflects the national sentiment.

CREDAI announced that it was planning to move court over NGT's ban on river-bed mining. How do you look at this issue?

The ban by the National Green Tribunal is part of a series of decisions that have affected the growth of the sector over a span of six months. As the representative body of developers/builders from private sector, CREDAI raises issues concerning us before the government. In this particular case too, the leadership at body will take appropriate step at the right time.

Considering onslaught of Green lobby and tightening of land acquisition laws, what impact do you foresee on low-cost housing?

The idea of low-cost housing is under tremendous stress. There is no way in which one can cut the cost of construction until the government decides to take a tough stance to ensure reduction in prices of construction material like cement. The cost of labour has also jumped substantially. The land cost has skyrocketed, especially in the light of Land Acquisition Act. The process of getting clearances extracts huge capital. If that was not enough, we have green lobby, obstructing the projects that have been cleared by the authorities. Under this scenario, do you think that idea of low-cost housing will have any takers? Look at the reality of market. The government will have to realign its policies if it wants each citizen to have their own roof.

Vaastu Wisdom
Madan Gupta Spatu

Q. I got married recently and we have moved into a new house. But there are lot of problems in my married life. Is there any defect in our dwellings? — sujata rao

A. Though proper advice can be provided after seeing the sketch plan of the house where you are currently living, there are some remedies that you can try out. The bedroom should not be in the south-east direction as it is the place for fire.

The shape of the bedroom should be square or rectangular. Irregularly shaped or uneven bedrooms are not conducive to marital bliss.

Further for financial stability, money should always be stored in the northern and eastern direction of the house.

Colours also work as strong enhancing tools. To enhance the vaastu power and build up positivity the walls may be painted in purple colour.

Sea salt has the capability to absorb all the negative vibrations, so keep some in your room.

Mirrors are useful in counter balancing the negative vibrations due to various defects but it should not face the bed.

Avoid keeping any water feature or plants in the bedroom. Do not use separate mattresses and bed-sheet.

Mail your queries to — vaastu@tribunemail.com

reality bites
Launches of new homes drop by 12 pc

Launch of new homes dropped by 12 per cent to over 1.72 lakh units so far during this calendar year in the eight major cities due to cautious approach by developers in view of slowdown in demand, according to global property consultant Cushman & Wakefield.

The National Capital Region (NCR) saw a decline of 33 per cent in new launches this year at 38,411 units compared with 57,098 flats in the year-ago period. “There has been a drop of 12 per cent in new residential project launches in 2013 as over last year. Total estimated unit launches were recorded at 1,72,500 units across major eight cities of India,” C&W said in a statement.

In 2012, these eight cities — Bengaluru, NCR, Chennai, Mumbai, Kolkata, Ahmedabad, Hyderabad and Pune — witnessed 1,96,846 units of new launches. Bengaluru recorded the largest number of units launched this year at 49,279 flats, up by 15 per cent from last year.

Mumbai (6 per cent) and Kolkata (3 per cent) saw a rise in the total units launched in 2013 over last year.

“Chennai, on the other hand, saw the sharpest decline in launches of new residential units, which represented a drop of 39 per cent over last year,” it added. NCR (-33 per cent), Pune (-20 per cent), Ahmedabad (-5 per cent) and Hyderabad (-3 per cent) recorded a decline.

Commenting on the report, C&W Executive Managing Director South Asia Sanjay Dutt said: “In the current economic scenario, both buyers and developers are taking a cautious approach not only towards residential real estate but across all-asset classes of real estate.” He noted that developers have not been able to lower cost due to upward movement in costs incurred on land, construction and debt.

Mumbai, Delhi slip in ranking; Chennai enters top 25 list

Domestic as well as international investors are looking at newer cities with stable assets for investments, a trend that will be prominent in 2014, and accordingly Chennai jumps to the hot list for the first time, says a PwC survey.

According to the survey, titled ‘Emerging trends in real estate in Asia Pacific 2014’, Chennai has for the first time emerged in the top 25 real estate destinations list in the Asia Pacific region.

“Cities like Bangalore, Delhi and Mumbai have been in the top 25 list as preferred destinations. However, for the first time, investors have chosen Chennai as one of the destinations for investment.

“This indicates that there has been a slight shift in investor interest from conventional assets in prime markets to newer and stable assets in niche markets,” PwC India Executive Director Gautam Mehra said.

While Bangalore ranked 20th in the list, Delhi stood at 21st, Chennai 22nd and Mumbai 23rd.

Bangalore and Mumbai have slipped from their positions compared to 2013 rankings where they stood at 19th and 20th position, while Delhi maintained its ranking at 21st position.

The report is based on the opinions of over 250 globally-renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants. — PTI

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