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delhi-ncr office market
Launch Pad
realty bites
Ground Realty loan zone tax tips
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area watch: rohtak
While the overall sentiment in real estate market in Haryana remains depressing, it is the state government’s arbitrary policies that have made the situation particularly grim in Rohtak. Despite a slew of infrastructure projects and the NCR city tag, the prices have seen a downward slide in this city over the past year. There are hardly any buyers or investors in the market and the number of sale-purchase deals has plummeted to an all-time low. Exorbitantly high circle rates in Rohtak, coupled with Haryana government’s policies visibly favouring prominent private builders and illegal colonisers, have resulted in a blanket slump in property market in the hometown of the state Chief Minister. Before Bhupinder Singh Hooda-led Congress government took over the reins of Haryana in 2005, the circle rates of land in HUDA sectors were around ~3,000 per sq yd. As of now, the circle rates in these sectors are between ~15,000 and ~18,000 per sq yd. This steep hike in the circle rates has played a major role in inducing a slump in the property market in the area, as the number of buyers, especially investors, has gone down substantially over the years. Though the government has tagged the hike as a step towards increasing transparency and decreasing the role of ‘black’ money in the real estate sector, the lack of rationalisation in increasing the circle rates has, in fact, had a completely adverse impact by bringing sale-purchase to a virtual halt by driving away the buyers and investors both. “If 10 deals were struck at our office in a month’s time, the number has gone down to one as of now,” laments a local property dealer. Real-estate agents explain that in order to get a property deed registered now one has to show the transaction amount in ‘white’, which is a tough deal for most buyers. Then, they have to pay a hefty amount as registration fee also, which also discourages investors. According to market watchers, the dip in sale-purchase of property is directly proportional to the increase in circle rates. “Normally, the circle rates are 20 to 30 per cent of the market rate, which is favorable for a robust property market. This means that if the market rate of land in a given area is about ~10,000 per sq yd, the circle rate would be around ~2,000 per sq yd. Hence, only a small portion of the amount paid for property is shown as ‘white’ money and the registration rates are also reasonable,” clarifies a realtor. However, the circle rates are as high as 60 to 65 per cent of the prevailing market rates in Rohtak as of now, which means that in order to purchase a property worth ~1 crore, one has to pay ~60 lakh in white and another ~ 5 lakh on registration. Moreover, there is an imbalance in the market rate and circle rate “equation” in certain areas. For example in HUDA sectors if the market rate is ~ 30,000 per sq yd, the circle rate is ~15,000, while in certain posh areas in the city where the market rate is close to ~80,000 per sq yd, the circle rate is the same ~15,000 per sq yd. This difference reflects significantly in the cost of property and has served as a deterrent for may buyers. Rohtak-based property adviser Harbans Punyani points out that due to the exorbitant circle rates, most of the buyers, particularly those who want to invest in property, are staying away from the real estate market. Moreover, it is also difficult to get home loans or finance for homes due to the high cost. It may be pertinent to mention here that the circle rates are around 20 per cent of the corresponding market rates even in big cities like Delhi and Mumbai. These rates are around 30 per cent in Bahadurgarh town in the vicinity of the national capital. In fact, local property dealers reveal that at one point of time, the state government was adamant on effecting an even steeper hike in circle rates in Rohtak, and they got the move scrapped after much convincing. The move to fix high circle rates in Rohtak town was ostensibly aimed at favouring private builders who have come up with residential colonies in the town. This is due to the fact that high circle rates in HUDA sectors make the buyers move to projects on the outskirts of the city where the circle rate is less and they have to shell out less money. Most of the private builders and unauthorised colonisers have their projects on the outskirts of the city. Thus, instead of floating HUDA sectors to provide well-defined, structured and systematic property chunks to the residents, the Hooda regime seems to have adopted policy measures that apparently promote the private builders as well as illegal colonisers. In the past eight to nine years just a handful of HUDA sectors have been launched here, thus the buyers’ have little choice but to go for private builders’ projects to get less expensive deals. Thanks to the favourable approach of the state government, a couple of big builders started spreading their ‘tentacles’ on the outskirts of Rohtak town. Then, some unscrupulous elements considered close to the powers that be started cutting unauthorised colonies, which, the potential buyers were assured, would soon be regularised. “Scaring farmers by issuing land-acquisition notices and then withdrawing the same to favour private colonisers and their near and dear ones has become a hallmark of the present state regime led by Hooda,” observes D.R.Chaudhary, a noted social activist based in Rohtak. Market observers maintain that with the prospective investors and financiers staying away from the Rohtak real-estate zone, the property transactions are now largely confined to those desirous of selling due to financial constraints and end-users who wish to buy dwelling units for their own use. “All in all, having a home of one’s own has become a distant dream for the common man, including those belonging to the salaried class, professionals and small traders,” opines S.S. Dhankar, a local resident. His views are endorsed by Kumud Juneja, a schoolteacher, and Manisha Khetarpal, a housewife. They also feel that HUDA, which was established with the aim of providing affordable housing facility to residents of the state, has also lost its relevance in the prevailing scenario. Conclusively, the welfare state having been reduced to the level of a ruling clique comprising power-hungry politicians and their land-grabbing stooges, the state agencies also seem to have become commercial enterprises.
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delhi-ncr office market
Prime office space absorption in the Delhi-NCR grew by approximately 14 per cent q-o-q—registering around 1.7 million sq. ft. in the fourth quarter of 2013, as compared to around 1.5 million sq. ft. in the previous quarter — according to the findings of CBRE’s latest report, India Office Market View Q4 2013. Commenting on the findings of the report, Anshuman Magazine, Chairman and Managing Director, CBRE South Asia Pvt. Ltd., said,“Transaction activity in the NCR was mostly led by the peripheral micro-market of Gurgaon, which saw about 1.3 million sq. ft. of office space getting leased during Q4 2013. Most of this space was leased by the IT/ITeS segment, while the rest was taken up by the commercial segment. Noida observed a decline in demand for Grade A office space, with absorption recorded at around 0.2 million sq. ft. during the fourth quarter. Leasing activity was mostly concentrated along the Noida Expressway area.” Increase in supply Office space supply addition in Q4 2013 stood at nearly 1 million sq. ft., taking the NCR’s total supply for the year ended December 2013 up to about 3.5 million sq. ft. This fresh office space addition in the fourth quarter grew by nearly 200 per cent over the last quarter’s supply addition of just about 300,000 sq. ft. Stable rentals Rental values remained largely stable across most micro-markets of Delhi in Q4 2013, over the previous quarter. Some rental appreciation was witnessed in Gurgaon’s DLF Cyber City. On account of subdued demand levels, rental values remained under pressure in Noida. — TNS
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Launch Pad
It will have 276 3,4 and 5 BHK apartments, including a limited number of penthouses. The customers will have the choice to opt for fully furnished or semi-furnished apartments in the new project. Giving more information about the project Director of the group Umang Jindal said, “Spaciousness is one of the defining factors of luxury that is why a three BHK apartment has an area of 1,982 sq ft, while a four BHK one has 2,400 sq ft area and the penthouses are of 3,630 sq ft area.” The price of semi-furnished apartments will be ~6,000 per sq ft anf that of furnished ones will be ~6,490 per sq ft. According to Sachdeva the project is likely to be completed by last quarter of 2015. It has been designed by internationally renowned architects Hafeez Contractor. It will have a club house, sports facilities, spa and swimming pools besides 24x7 three-tier security syatems. AVJ Plaza in Bhiwadi AVJ Group, a Delhi-NCR- based real estate developer, launched a commercial project AVJ Plaza at Bhiwadi, the gateway of Rajasthan. This complex will have 5 floors having luxury shopping complex, luxury office spaces, retail shop spaces and business suites. The basic sale price is between Rs 4500 per sq ft. and Rs 7500 per sq ft. Phase 3 of Godrej E-City in Bengaluru Mumbai-based real estate developer Godrej Properties Ltd. recently announced the launch of Phase 3 in its residential project, Godrej E-City, in Electronic City, Bengaluru. This phase will offer over 360 homes spread across approximately 38,000 sq. m (4.1 lakh sq. ft.). Customers can choose from 1, 2, 2.5 and 3 BHK apartments, ranging from 59 sq m to 153 sq m (638 sq. ft. to 1,652 sq. ft.) at prices starting at
Rs 31 lakh onwards. Spread over 15 acres, Godrej E-City is being developed in 3 phases. The entire project consists of 840 apartments spread across 94568 sq m (1 million sq. ft.). Godrej E-City will offer various amenities including a modern clubhouse, a well-equipped gymnasium, swimming pools, a health club, a conference hall, and a convenience store. Sports facilities such as an indoor squash court, a badminton court, children’s play area and a jogging track will be provided besides indoor game facilities like table tennis and snooker. — Based on information provided by the developers
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realty bites
Supertech Limited has entered into a tie up with global design, development and branding firm yoo Worldwide LLP, to develop two luxurious residential projects in Gurgaon’s premium Sector 68 and 79. yoo will work with Supertech to produce one residential project with the Jade Jagger for yoo property brand and a separate residential project with Steve Leung & yoo, another of yoo’s successful property brands. yoo will deliver unique design concepts to each project that will reflect the kind of innovative, international design style that is synonymous with the firm. Speaking on the occasion R.K. Arora, CMD, Supertech Limited said: “yoo is a luxury brand that provides exclusive interior design solutions for high-end properties. Our association with yoo will provide unrivalled luxury and an unforgettable living experience for our customers. The skill and expertise of Jade Jagger and Steve Leung will create a beyond luxury concept in India.” M3M to invest Rs 3,000 cr on projects in Gurgaon Realty firm M3M will invest ~3,000 crore over three years on the construction of its seven ongoing projects in Gurgaon. The Gurgaon-based company has outsourced the construction contracts to big companies like L&T, Shapoorji & Pallonji for timely execution of projects. “M3M has decided to ramp up the progress of its seven mega projects, and planning to infuse a mammoth ~3,000 crore in the construction process,” the company said in a statement. Upon completion, these projects will deliver more than 11 million sq ft of residential, commercial, shopping and hospitality spaces. “L&T, Shapoorji & Pallonji have been contracted to ensure quality and timely completion,” it added. The group has decided to firm up its business plans at a time when realty sector is facing a slowdown. It is pushing construction works to commission flagship projects like Golf Estate, Polo Suites and Merlin and Woodshire well before time. “Our financial position and capital strength have enabled us to push ourselves at a time when the overall sector is seeing a slowdown. The fact that our total inventory is worth ~30,000 crore shows how well we are poised and comfortably positioned,” M3M Chief Operating Officer Kunal Banerji said in the statement. With seven projects in hands and 32 more projects in pipeline, M3M is now looking to bring innovative formats in commercial, office and hospitality areas. Everest group to set up new plant in Gujarat Building solutions company Everest Industries Limited, will be setting up its second manufacturing plant in Dahej, Gujarat. The company is going to invest ~50 crore in this project. Elaborating on the plans for the new manufacturing plant Manish Garg, President, Steel Building Division, Everest Industries Ltd, said, “The production capacity for the new plant is 60000 MT per annum. The new factory will cater primarily to markets of Gujarat, Maharashtra, Goa, Madhya Pradesh, Chattisgarh, Parts of Rajasthan, Karnataka, Andhra, Kerala, and Tamil Nadu.” Everest Industries Ltd now has 8 manufacturing plants across India located in Kymore (Madhya Pradesh), Podanur (Tamil Nadu), Kolkata (West Bengal), Nashik (Maharashtra) Bhagwanpur (Uttarakand), Baleshwar ( Odisha ) Ranchi ( Jharkhand ) and Dahej in Gujarat. Elaborating about the market potential for Pre-Engineered Steel Buildsings in India stated Mr. Garg, “We foresee a tremendous growth in our Pre-Engineered Steel Buildings as speed and ease of construction are of essence today. The expected market size is ~10 lakh tonnes per annum and we envisage a 15 per cent growth in market.” Awards KUL Sophronia, a luxury project developed by Kumar Urban Development Ltd.(KUL), has been selected as the best luxury project at Silicon India’s Pune Real Estate Awards 2014. The award winning project at Kalyani Nagar comprises six buildings of 12 floors each with stylish studio apartments, 2BHK and 3BHK apartments. It includes ultra luxurious amenities such as solar water heater, a poolside deck, a waterfall with an infinity edge and a floating pavilion. Kruti Jain, Director of the group was also honoured with ‘Young Achiever’ award for her leadership qualities and valuable contribution to the real estate industry.
— TNS & Agencies
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Plan well for a dream home Jagvir Goyal Secure the services of an architect: Whenever a person is planning to build his house, he has a certain house plan in mind. There are certain requirements also that he wants to incorporate in his house plan. Any person can draw a sketch of the plan he has in mind. Yet, he must secure the services of an architect to prepare the initial plans and later, other intricate details. An architect has his own viewpoint. He will tell you the flaws as well as the good points of the plan you have in mind. Follow bylaws: Always follow the bylaws while getting the plans of your house prepared. Avoid the tendency to extend the building line beyond the permissible limit. Pay special attention to the minimum space to be left open in the front, at the back and in the porch area. Stick to the plinth level as prescribed under the bylaws. Also maintain the storey heights in accordance with the rules. In case the bylaws ask for a particular type of elevation, don't deviate from it. Also care for the projections and these must not be more than the maximum dimension in the bylaws. The percentage of the plot area that can be covered and the maximum area of the basement and its distance from the common wall should also be followed. Watch for headspace Often the staircase to the basement is located below the first floor flight in the lobby. In such a case you must watch that enough headspace is available while descending the steps to the basement. Similarly, if a flight of steps passes over a doorway, check that the soffit of the steps is clear of the top level of door. This clearance can’t be judged from the plan of the house. You’ll have to check it by drawing the elevation of the wall having the door and the steps passing over it.
Look for a bedroom in front: Gone are the times when the kitchen used to be essentially planned in the front, to keep an eye on gate while working in the kitchen. 'Kitchen time' has reduced dramatically these days, thanks to the availability of so many kitchen-friendly appliances like microwaves, dishwashers, cookers, hobs, food processors and so on. Concept of home delivery of readymade food has become popular and hiring the maids for kitchen jobs has become universal. Therefore, more time is now spent in the bedroom. Therefore, planning a bedroom in the front also serves the purpose of keeping an eye on the main gate. Psychologically also, you feel to be in control of the house while sitting in a front bedroom while in the back bedroom, you feel cut off from the rest of the house. So prefer to plan at least one bedroom in the front rather than a kitchen. Plan a basement on low-lying plot: Most urban estates offer low-lying plots these days. While planning a house on such a plot, building a basement is certainly a better option than filling huge volume of earth below the ground floor. Basements can serve as a good area for storage or for a home theatre or a gym. These also save the floors from settlement. Otherwise, large quantities of earth when filled below the floor may cause a settlement of floors with the passage of time even if the house builder has tried to compact the earth as much as possible. Increase window area: While planning windows in the exterior wall of the house see that the size of windows is sufficient to provide good light and ventilation. Though each room should have a minimum window area equal to 40 per cent of its floor area, the size of windows should be kept much larger. Otherwise also, according to the prevalent trend, large sized windows should be preferred with sill level just 6 inch to 9 inch above the floor level. Take care of cutout area: Often, a cutout is planned in the houses when some toilet is to be provided inside the house. Every toilet should have an external window. A cutout helps in providing ventilation for the toilet and exhaust fan of the toilet is fixed in the cut out wall. While planning a cutout, plan its roofing carefully. It has to be planned in a manner that the cutout area is saved from rains. The cutout area should also be made safe against burglary. Thieves always try to break in a house through cutouts as they find it easy to enter the house through cutout route. Put iron bar grids over the cutout along with a fiberglass sheet, at the same time, making room for ventilation. However, it is better to avoid the provision of a cutout in the house. It can be done if the bathrooms are planned in the front and the back with one wall as the outer wall. If a cutout is avoided, an equal space can be utilised for a powder room and a puja room, considered essential in Indian houses.
—This column is published fortnightly
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Perfect credit rating S. C. Dhall
A. Knowing how a bank calculates your loan eligibility will help you put things in place before you apply for a home loan. Principally every lender looks at a borrower in terms of two perspectives: Ability to repay: This is decided by looking at your current income, other income sources, monthly cash flow (to decide whether you can service your EMI and still maintain a good lifestyle), age to retirement, job profile, employer profile etc. Intention to repay: This is decided based on your history of loans/ credit cards with the same lender or other lenders. Your CIBIL score will be a big indicator of the same. Getting a good rank for the “Ability to repay” criteria *
Good income is the main criteria. This is checked based on your salary statements or income tax filings. In case you are expecting a hike or bigger profits, apply for the loan after you get a hike or after having shown higher profits on your returns. *
Try to reduce major regular cash out flows from your main account. Examples could be, the EMI on a car loan (close the loan), rent payments to your landlord (use another account/pay in cash). *
Another way to shore up the income criteria is to have a co-applicant. Father-son, unmarried daughter-father, brother-brother, husband-wife are possible combinations of co-applicants. *
Always ensure that you maintain a bank account, which has good cash flows into it, minimal out flows and is devoid of cheque bounces or bank charges. Use this account when applying for the loan. Getting a good rank for the
"Intention to repay" criteria * If you have had a good record of a past loan or good repayments on your credit card, it will give you a higher rating. Also, be sure to get a copy of your CIBIL rating to know what your credit rating is. In case it is on the lower spectrum, try to wait for a few months and rectify it by streamlining payments and clearing any outstanding payments with other lenders. *
At times, you might have closed a loan just a few months ago and the EMI might reflect on the bank account. This could reduce your funding eligibility. Attach a copy of the closure statement of that loan while applying for the new loan. It also works as an affirmation of your intention to repay. Another way to increase your loan eligibility on this front is to have a guarantor whose credit profile will provide you with a better loan option
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Is my profit a long-term capital gain? S. C. Vasudeva
A. You should be able to claim that the profit arising on the sale of the flat is in the nature of a long-term capital gain as the allotment of the flat was made to you on September 20, 2009. You had, thus, acquired a right in the said flat which has been transferred on April 30, 2013. The right in the flat having been transferred beyond a period of three years, you should be able to claim a deduction of indexed cost of various instalments paid from July 11, 2009 to March 2013 from the full value of consideration of ~85 lakh. The amount of long-term capital gain would thus be computed after deducting such indexed cost and the amount of transfer charges of Rs 3,50,000 from full value of consideration of Rs 85 lakh. Apart from the above no other deduction would be permissible from the full value of consideration of Rs 85 lakh. Exemption on HRA Q. I am receiving a house rent allowance of Rs 10,000 per month. Can I claim exemption of the said amount from income-tax? — Seshagiri Rao A. The exemption of HRA is regulated by Rule 2A of the Income Tax Rules 1962. The least of the following amounts is exempted. *
An amount equal to 50 per cent of salary, where residential house is situated at Mumbai, Calcutta, Delhi or Chennai and an amount equal to 40 per cent of salary where residential house is situated at any other city. *
House rent allowance received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year. *
The excess of rent paid over 10 per cent of salary. An essential condition to seek exemption of HRA in that an assessee should have actually paid the amount of house rent. The facts in the query do not indicate the amount of rent actually paid by you. However, you can compute the amount by applying the above tests. Salary for the above purpose includes basic salary plus dearness allowance if terms of employment so provide.
Can a couple claim rebate on loan repayment for joint property? Whether we both will get rebate on interest
Rs 1,50,000 each i.e. total Rs 3,00,000. — Jaspal Singh A. Your query does not indicate whether the house has been constructed by March 31, 2014 as the entitlement to get deduction for interest paid on amount borrowed for the purchase or construction of a residential house is permissible from income from house property. In case the house is still under construction as on March 31, 2014, each one of you would be able to claim the amount of ~,50,000 (being the amount of interest paid during construction period) in five equal installments beginning from the year in which the house is completed. Can my wife and I make a joint Will? Q. My queries are as follows: (b) Can my wife and I make a joint Will for our house or property? Does there exist any concept of a joint Will? Suppose a couple travels a lot, and therefore, is at risk of meeting an accident together. In such a case won’t a joint Will be necessary? (c) If I sell my flat in Mohali and use the long-term capital gain amount to buy a flat in my son’s name in Gurgaon, will I be able to avail tax concession on long-term capital gain earned by me? —
Jaswinder Garg
A. Your queries are replied hereunder: (a) The payment of loan taken by you for the purchase or construction of a residential house is not deductible from the amount of long-term capital gain. There is no provision under Income Tax Act, 1961 (The Act) that provides for such deduction. (b) The provisions in respect of execution of a Will by a Hindu are contained in the Indian Succession Act, 1925. This Act does not contain any provision relating to the execution of a joint Will by a husband and wife in respect of a house property. Thus, I would advise that a Will should be executed by each one of you separately. The situation for covering the risk of meeting an accident together can be covered in a separate Will executed by the husband and the wife. a(c) There are contradictory decisions of various courts with regard to the utilisation of long-term capital gain towards the purchase of a residential house in the name of a son. In one of the cases it has been held that Section 54 of the Act does not provide that a new residential house should be purchased in the name of the seller of the old house for seeking exemption from the taxability of long-term capital gain arising on the sale of the old house. In another case it has been held that the amount utilised for purchasing or constructing a residential house in the name of the son can be deemed to be a gift to the son, and therefore, the exemption under Section 54 of the Act would not be permissible. The purchase of residential flat in the name of your son can thus lead to litigation, which in my opinion, should be avoided. Instead the residential flat should be bought in your name so as to avoid litigation. You can thereafter execute a Will in favour of your son in respect of such a house/flat.
email your queries to realestate@tribunemail.com
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The Homeland Group launched a luxury project Homeland Heights in Sector 70, Mohali earlier this week. The 4.6-acre project being planned in collaboration with ASC Builders will have 15 storeys and will be among the tallest residential towers in the tricity area. Situated at the centre of Mohali’s main pulse point, just 20 minutes from the International Airport it is located on the 200 sq ft airport road.
The Home of the Traveler
(THT), a Home Décor and Lifestyle brand curated by JJ Valaya, recently announced a tie-up with Delhi Farms, a sister concern of the Land Advisory firm Certes Realty Ltd. This association will help the patrons of both THT as well as Delhi Farms to not only identify and acquire land for their dream home, but also to convert it into a luxury home with respect to both interiors & exterior by THT's incredible design delivery. In an interaction with mediapersons Joseph Sam the CEO of THT said, “Being a luxury product and service oriented brand, The Home of the Traveler in collaboration with Delhi Farms will synergise capabilities to assist HNI clients, Investors & Developers in the acquisition, curating & development of luxury farm houses, through the engagement of investors, space & landscape designers and concierge services. We intend to work with our clients in effectually ensuring that they get access to what we call as ‘tasteful luxury’, resplendent with culture, character and class, as a result of which they will be able to possess an asset which is unique, exquisite & treasured.”
Planning makes the house perfect. Never rush to finalize your house plan. Concentrate over it a dozen of times, every time visualizing each room and space and provision in it. Visit a few of your favorite houses, get ideas and again examine your house plan critically to check if it meets all your requirements. Remember that once you begin the ground work at site, it will be difficult and expensive to make changes. So plan the well. Here are some points that should keep in view while planning your house: 
Q. I am planning to buy a home in a couple of months. How can I be certain that my credit rating is according to the bank standards and that my home loan application will be approved? — nitin hissar 
Q.
Both my wife and I are government employees. We purchased a plot jointly on our name as 50:50 share. We took joint bank loan of
Rs 35,00,000 for the construction of a house. From April 2013 to March 2014 we have to pay more than
Rs 3,00,000 interest on loan. My query is:
(a) If I pay back the balance amount of home loan taken by me last year from the long-term capital gain received by me by selling a flat, then will that amount be considered for exemption from tax on capital gain as the home loan was taken for construction of a house only?