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emerging
destinations: delhi-jaipur highway belt Corridor with potential Highways connecting various towns and cities serve a dual purpose. Not only do they provide good connectivity and accessibility, they also serve as nodes which spur development. Typically, the portions of the highways that abut cities lying on these routes witness hectic development activity right from the time projects are first announced. This activity gather momentum as the highway nears completion. The NH-8 connecting Delhi to Jaipur has seen a similar growth trajectory. 
tax
tips
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zone
Green
house
launch
pad
project
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realty
bites
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emerging
destinations: delhi-jaipur highway belt
Highways connecting various towns and cities serve a dual purpose. Not only do they provide good connectivity and accessibility, they also serve as nodes which spur development. Typically, the portions of the highways that abut cities lying on these routes witness hectic development activity right from the time projects are first announced. This activity gather momentum as the highway nears completion. The NH-8 connecting Delhi to Jaipur has seen a similar growth trajectory.
Gurgaon, being closer to Delhi and part of NCR, has seen spiralling growth in real estate development. With existing road infrastructure in the form of NH-8 and the Gurgaon city exhausting its land resources nearer the main city, the city boundaries have been pushed further down NH-8. The residential real estate sector has seen exponential growth along this route, with residential projects underway even on the upcoming Dwarka-Gurgaon expressway which runs nearly parallel to the NH-8 and meets it near Sector 82. Big ticket projects Manesar, Dharuhera and Bhiwadi are satellite cities of Gurgaon and have a thriving industrial sector. Manesar is also witnessing commercial developments and residential projects by ABW, DLF, SARE and Sidharatha, which have seen good demand on account of their affordability quotient. Dharuhera has developers like Parsvnath, Vipul, Bestech, Vardhman, M2K, Ferrous Infrastructure and Dwarkadhis, among others. Bhiwadi is seeing residential developments by the likes of Omaxe, Ashiana Group, BDI, Star Raison Landmark, MVL, Cosmos Infra, Avalon, Krish infrastructure and Piyush Group among other small players that do not have significant development credentials. Neemrana has attracted heavy industrial investment from Japanese manufacturing firms. Currently, a 1,200-acre Japanese Zone is 70 per cent operational, with heavy investment in manufacturing facilities by firms such as Daikin, Mitsui Chemicals, Nissan, Nippon and NYK Logistics. The Japan External Trade Organisation and the Export Promotion Industrial Park, spread over 3,500 acres, developed by the Rajasthan State Industrial Development and Investment Corporation (RIICO) in several phases, are other industrial zones that have led to this sub-market’s emergence as a major industrial hub. Some residential projects by Ashiana, Eldeco and Anant Raj have already been launched. This sub-market has tremendous potential for integrated township projects and low-cost, affordable housing. Kotputli in Rajasthan has developments by Eklavya Housing and is largely defined by plotted development projects by a host of small, individual developers. There are a number of developments on the outskirts of Alwar, especially on the Bhiwadi-Alwar Bypass and outskirts of the city. Ansals group is undertaking a residential project, while other projects are by small, individual developers. Property prices Prices are a function of demand and supply, and currently are at an all-time high in Gurgaon. With infrastructure development lagging behind in the emerging residential corridors, prices are operating on speculation of future appreciation and investor sentiment. Manesar, by virtue of its locational advantages, has also seen healthy appreciation in residential projects located there. Manesar is also a well-established industrial town, a nascent office destination and is considered a part of Gurgaon. This has led to significant price increments in housing projects located here. Dharuhera and Bhiwadi largely catering to affordable housing in terms of amenities and pricing, and prices there have remained largely stable, showing only range-bound growth in projects that are nearing completion. Neemrana has shown appreciable increment in land values and apartment prices since the Master Plan-2031 was notified and its inherent location and thrust on manufacturing and industries is likely to make this a preferred investment destination going forward. Alwar and Kotputli have residential prices which are at nearly one-third of prevailing prices in the Gurgaon residential market in upcoming corridors adjacent to NH-8. The opportunity There is a definite opportunity in the affordable and mid-income housing segments for developers in these areas, as a majority of the demand is directed towards these segments. Healthy demand for the right kind of project with the correct price point can be expected. Towns like Dharuhera, Bhiwadi and Alwar can expect to see local demand as the first two are major industrial centres, and will see some part of the DMIC development adding to the infrastructure in these towns going forward. Neemrana is likely to emerge as a major corridor, driving both industrial and manufacturing growth with residential development an offshoot of the increasing housing requirements for the working population and the expatriates likely to be employed here. Its strategic location, strong industrial linkages and prospects of employment generation have led to it becoming a real estate investment hotspot. The government of Rajasthan has already notified the 2031 Master Plan for the Shahjahanpur-Neemrana-Behror Urban Complex. A Korean Dedicated Manufacturing Zone has already been proposed to be set up through an agreement between RIICO and the Korean firms’ nodal body, Kotra. With industrial growth acting as a pull factor, real estate development across the office, retail and residential asset classes is likely to find greater traction going forward. Manesar, too, is expected to be a major node on the DMIC project, with a host of multi-product hubs and industry incentives driving industrial development. This will catalyse good demand for residential projects. If land prices can be controlled by by the state authorities unlocking more land parcels, the business opportunity in residential development on the NH-8 corridor will see an impetus, with more projects being launched and generating good demand. The norms for ECB for affordable housing are likely to be helpful in lowering financing costs, bringing greater thrust to residential projects in these locations. The master plan for DMIC corridor’s first zone has been notified. Khushkhera-Bhiwadi-Neemrana is being developed as the first node for which land acquisition is almost complete. The Manesar-Bawal region is also one of the investment regions selected for development in the first phase of this industrial corridor. The creation of these investment regions are likely to spur residential investments in these corridors at a greater scale. Land
value Land values are currently at a premium in Gurgaon, and hence are adding to the project costs of developers; which in turn is leading to developers pricing their projects higher to service their debt as well as earn a certain profit margin. Similarly, with land prices rising across all the towns on the NH-8 corridor, project costs are rising. This impacts the profit margin of developers, or impacts sales if project pricing is higher than what could be considered competitive.
Infrastructure Gurgaon has shown the maximim progress in providing liveable amenities to its residents. Though the internal road infrastructure is developing fairly rapidly in Gurgaon and
Manesar, other towns are yet to catch up. Most locations closer to these cities’ centres will have provisions of basic amenities; however, since a large portion of development is still underway, amenities are yet to become fully functional. Towns like Bhiwadi and Neemrana are likely to see faster growth as in the former case residential projects are progressing at a rapid pace, while in the latter, a promise of all-round industrial and residential-led development and a notified Master Plan will enhance the infrastructure progress at a rapid pace. — The writer is Senior Manager – Research & Real Estate Intelligence Service, Jones Lang LaSalle India
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tax
tips
A. Your queries are replied hereunder: The tax payable on the amount of capital gain can be saved by utilising the amount of capital gain arising on the sale of house towards the purchase or construction of a residential house. The purchase can be effected within one year before or two years after the sale of house. The construction on the other hand has to be completed within three years after the sale of the house. You also have another option of saving tax. You can invest the amount of capital gain towards the acquisition of tax saving bonds within six months of the date of sale of the house. These bonds have a lock in period of three years and carry interest @6 per cent p.a. These bonds can be bought for a sum not exceeding ~50 lakh in a financial year. It may be added that the reply given above is based on the presumption that kutcha rooms were habitable and it is a residential house which you are likely to sell. In case such rooms were not habitable and it is a case of sale of plot, you will have to utilise the amount of net consideration instead of the amount of capital gain for purchasing or constructing a residential house to save the tax on the amount of capital gain. The period for utilisation would remain the same. In case of investment in tax-saving bonds, there is no such requirement of utilisation of the amount of net consideration. Which is the relevant section for my property? Q. I am an NRI. I hadbought a property in India by sending the money through State Bank of India to my mother, and she signed the purchase agreement with the seller. She had to put the property in her name, along with tohse of me and of my two children making us as co-owners. Later on she transferred her share in my wife’s name, thus making my family as co-owners. She passed away in 2007 and the property is with my family now. The property is on the main road and time and again I have let out the ground and the first floor, while using the top floor for my own use. I have no other property in India except some agricultural land. Now I want to sell it and I am confused under which Section will I have to pay LTCG tax?
A. Your queries are replied hereunder: You can also utilise the amount of long-term capital gain for acquiring tax-saving bonds within six months of the date of sale of a residential house and claim exemption from taxability of such long-term capital gain to the extent of bonds so acquired. Such bonds can be bought for a maximum sum of ~50 lakh in a financial year and carry interest @6 per cent p.a Tax liability on agricultural land Q. I have inherited 12 acres of agricultural land. It is located outside the specified MC limits. I want to sell it and invest the proceeds in bank FDs/ NSCs etc. Please give tax implications for this. The Circle rate in the area is ~10 lakh and market rate is ~40 lakh per acre. Should the proceeds be first kept in capital gain account? Please advise. — karanjeet singh A. You have stated in your query that the agricultural land inherited by you is outside the specified MC limits. I do hope that you have looked into the Notification No. SO 10(E) dated 6.1.1994 as amended by Notification No. SO 1302 (dated 28.12.1999) and on the basis of such notification arrived at the conclusion that the agricultural land inherited by you is outside the limits specified in the said notification. In case the agricultural land is situated oustside the municipal limits specified in the said notification, the amount of capital gain arising on the sale of the agricultural land would not be taxable as the agricultural land outside the specified limits is excluded from the definition of the term ‘capital asset’. It is the profit arising on the transfer of a capital asset which is chargeable to tax under the head ‘capital gain’. Therefore there would be no tax implication in case the agricultural land is situated outside the notified limits.
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vaastu
wisdom Q. I want to purchase a plot where an old well has been filled with sand by the former owner. Should I purchase this or not? In case there are certain ill effects of buying such a land, then are there some remedies to mitigate their effect? The filled up well is located in a corner at the back of the plot. — mahesh
A. Some important points about the location of the existing well or a new well to be dug are: In your case the well seems to be in the western side of the plot, therefore, as per Vaastu norms, this plot cannot be recommended for purchase.
Can we live in parents’ bedroom? Q. My wife and I are living in the same room which was used by our parents. A few years back a Vaastu expert from Bangalore advised me not to use this room as I am having severe headache and arthritis for the past several years. Kindly advise should I continue to use the same room or not ? — kaushal sapra
A.
The master bedroom should be in the south-west corner of the building. The main earning member or the eldest of all should stay in the master bedroom. This room can be used by father or the eldest son, or by a person who controls the family expenses. So from that aspect you can live in that room if you are the head of your family. As for the physical ailment that you have been suffering from is concerned it can also be due to the direction of your master bedroom or the sleeping rrangement. Keep the following in mind: Normally people use the master bedroom for keeping valuable and important things that they own. That is why Vaastu prescribes strict instructions for the position of master bedroom. Beds should be placed so as the head of the person should be in south or west direction. The bedroom should not be constructed above a porch, car parking area or a kitchen. In case all of these conditions are not applicable in your case, you can continue staying in the room.
Benefits of silver tape
Q.
I am constructing a house. Can everyone use silver tape with any direction of main gate. Please suggest only one solution. — vinita
A.
Silver tape buried under the entrance of the house protects it from negative vibrations and thus protects from evil eye as well as from thefts etc. This is also believed to remove all Vaastu doshas of the house or the plot. So you may fix it on the main entrance as well as in the backyard’s door if one is there. Silver tape can also be fixed on any entrance to your home irrespective of the direction.
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loan
zone Q. I had taken a home loan for an under construction property and possession is due in December 2014. The loan amount was
Rs 30 lakh out of which i have already paid around ~8 lakh. I now want to buy a new flat in a new project by the same builder in the same campus and my brother-in-law is willing to get my existing flat transferred in his name. He is willing to pay me a cheque for the amount that I have already paid towards my loan. This amount I will use as down payment for the new property. My question is:
Can the property papers be endorsed in my brother-in-law’s name while the property is still under construction? Can my existing home loan be transferred for the new property? A. You can sell the property to your brother-in-law. But, a home loan cannot be transferred. You will have to pay off the loan to sell the flat
Approval pangs
Q.
I have some land in a gram panchayat area and the documents are all approved by gram panchayat. I am planning to construct a house in that land but bank rejected it on the plea that it needed approval from a lawyer. The lawyer says he can not give an approval as the land is in gram panchyat whereas the land is in layout and converted land please help how do we get loan we are even eligible to get loan and the bank has no other issues other than this. — ram kumar
A.
You will find it difficult to get a loan unless the legal status of the land is clear. You can also try and approach another bank. Check with the home loan comparator.
Q. I wish to take a homeloan for ~10 lakh for a period of 20 years. Kindly clarify:
1) In the current market situation and interest rate ( risk of high rates in future) what is the best product to be accepted 2) Want to know which bank offers more of Principal and less of Interest Component from the begning. — karan singh A.
There is nothing like a best bank in this. Banks offer interest rates based on the customer profile and loan requirement. Check the home loan comparator for offers from various banks. Most banks have the EMI structure that in the initial years of loan repayment, the interest componet is greater than the principal.
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Green
house The shrinking space in city houses and even in housing societies has edged out big trees that were traditionally used to provide the green cover in a residential area. Smaller home gardens and limited spaces in group housing societies have thus gravitated towards small trees and shrubs trained to a certain height to add the ‘green feel’ as well as to utilise the space optimally. Proper choice and care can make these small ‘beauties’ a big attraction of your garden. Though not towering and huge, these provide the much-required shade, colour and offer fragrance in the garden and are sufficient to create a micro climate for the shade-loving plants. Large trees can also be trained to remain manageable provided its bole (trunk of tree) is trained up to 4-5 feet from the ground level. Tree’s height and spread can be controlled easily by pruning in winters especially in January-February.
Plumaria obtusa (Gul-e-cheen) is an evergreen ornamental plant which is easy growing and makes a garden full of fragrance during summer months. White flowers are borne terminally in clusters. Other common Plumarias like ‘rubra’ and ‘acutifolia’ are deciduous in this region. The plant without leaves presents a sculptured appearance, especially during winters. Plumaria can be planted at the periphery of the garden or along the entrance path. Hamelia paten also called ‘Fire Brush’ is a semi-woody evergreen shrub. Its vermillion-hued flowers can be seen almost all through the year except during the winter months. It can be planted along the paths and also as a standalone plant as it makes very attractive canopy. Pruning during winters keeps this shrub in good form. Humming birds and butterflies are attracted by its vibrant flowers. Ervatamia divaricata (Chandani Single) is a native of India. The white flowers with mild fragrance appear almost round the year except during winters. Leaves are glossy and shining. The terminally borne abundance of flowers glows during moonlit nights giving it the name Chandni. It also can be trained to form a canopy. Hibiscus rosa-sinensis also known as Rose of China. Large showy, trumpet-shaped flowers, with five or more petals, with colours ranging from white, pink, red, orange, purple or yellow attract butterflies, bees, and humming birds. Hibiscus planted at the entrance of the house singly or in small group gives a welcome feel. It can also be trained as hedge. Tecoma gaudichaudi is a semi-wood fast growing shrub and bears bright yellow flowers. It grows well in sunny and semi-shaded areas and needs very less water. This shrub bears flowers almost all year round and is a good screening shrub and can be planted along fence or boundary wall. Meticulous training is required for a good shape. Stand alone bushes trained on a strand also give a colourful appearance.
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launch
pad
Mahagun Group recently launched “Mahagun Meadows” — a Golf course living residential project at Sector 150 Expressway, Noida. The project that is spread over 7 acres will offers the Sky villas concept and 2+ study, 3 & 4 BHK apartments varying in sizes from 1425 sq. ft. to 3400 sq. ft. within the price range starting
Rs 54.86 lakh onwards. The project is based on India green building concept (IGBC) conforming to gold standard. The architecture of meadows is being done by renowned architect Hafeez Contractor and landscaping has been designed by Sanju Bose.
Noida Expressway is well connected to Delhi, through the Delhi-Noida-Delhi (DND) Highway and Kalindi Kunj Road, Greater Noida, Yamuna Expressway and Ghaziabad. While it is already well connected via roads, the metro would be an additional benefit after being extended from the existing Noida City Centre station and going up to Greater Noida.
M3M Cosmo Plus in Gurgaon M3M India Limited, has announced the launch of ‘M3M Cosmo+’— a unique proposition for medical practitioners. The new project will be an innovative healthcare facility to attract top medical specialists/ practitioners from around the globe by providing world class clinical examination rooms. All practitioners retain their independence while maximising earning potential in a collegiate working environment. It will be India’s first one-stop destination for healthcare, where doctors, pathological laboratories and pharmacies exist under one roof. This will be part of a mixed-use project that includes high street retail, office suites and medical suites. Located in the high-growth corridor of Gurgaon in Sector 66 and will have convenient and rapid access to NH-8, Mehrauli-Gurgaon road and Gurgaon-Faridabad highway. Units in sizes ranging between 750-1400 sq.ft. According to company spokesperson, the medical suites will be priced
Rs 50 lakh onwards and the first phase of the project is likely to be completed by December, 2015.
Newtech La Palacia in Greater Noida The Newtech group has launched “Newtech La Palacia” in Greater Noida West (Noida Extension). The new project will have 2 and 3 BHK terrace homes. The project has been launched at the BSP of
Rs 3,400 per sq ft. — Based on information provided by the developers
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project
watch
Bhoomi pujan ceremony was held at two projects of the Cosmic Structures Limited in Noida recently. The projects included a residential one — Urban Young along Yamuna Expressway and commercial development — Cosmic Masterpiece-154' in Sector-154, Noida. The group also appointed former Indian cricketer Mohammad Azharuddin as ‘Council Director’ in the group.
Club launched at Crossing Rebublik Panchsheel Buildtech Pvt. Ltd, has announced the launch of Paradiso, a multi-utility club at their prestigious project Wellington located in India's first global city, Crossings Republik, on NH24. Crossing Rebublik provides advanced living with all significant features such as hotels, hospitals, schools, recreational centres, beautifully landscaped parks, golf course. Paradiso is equipped with all modern facilities including gymnasium, steam & sauna bath, Jacuzzi, card & billiards room etc
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realty
bites
Realty firm Ansal Buildwell recently announced a tie up with Bahrain-based VKL Holdings under which the two firms would invest
Rs 100 million each to develop housing and infrastructure projects in India and Bahrain.
Ansal Buildwell signed a memorandum of understanding (MoU) with VKL Holdings and group firm Al Namal to explore opportunities of investment in India and Bahrain. The MoU would focus on joint development in realty and infrastructure sectors. “Developers from India have not gone to Bahrain. We are joining hands with VKL Holdings to invest there,” Ansal Buildwell Chairman Gopal Ansal told reporters in New Delhi according to a PTI report. Elaborating on MoU, company’s GM Ranjeev Kalia said Ansal Buildwell would invest
Rs 100 million in Bahrain while VK Holdings would invest Rs 100 million in India. The first project would be in Delhi-NCR. VKL Holdings Director (Business Development) Mohammad Mansoor said the company has invested about
Rs 1,000 crore in real estate and hospitality projects in South India. “With this MoU, we will enter North India.”
Ambience to invest
1,800 cr on three projects Realty firm Ambience Group will invest about
Rs 1,800 crore over the next four years to develop an integrated township and two housing projects. The national-capital based firm would soon launch two housing projects in Noida and Gurgaon, comprising 1,100 housing units and a 350-acre township at Panipat. Ambience Group is developing a 150-acre project ‘Ambience Island’ in Gurgaon that comprises premium homes, Leela Ambience hotel with over 400 keys and a huge shopping mall. In Delhi, it has a ‘Kempinski Ambience’ hotel comprising 480 keys and a shopping mall at Vasant Kunj. “The market is showing signs of revival. We will be launching two group housing projects and one township during the next three months. We have land to develop these projects,” Ambience Group Chairman Raj Singh Gehlot told PTI. When asked about the investment, he said, “The land is fully paid for. We will be investing about
Rs 1,800 crore on on construction of these three projects.” Ambience would invest
Rs 800 crore on construction of 850 housing units on a 16-acre land in Gurgaon, while another
Rs 300 crore would be pumped in 4-acre project in Noida having 270 dwelling units. On township, the construction cost would be about
Rs 700 crore.
Kolte-Patil Developers acquires 34 acre in
Pune for 350 cr Pune-based real estate developer Kolte-Patil Developers Limited has announced the closure of the acquisition of a 34-acre land parcel at Wakad, Pune for approximately
Rs 350 crore. This land parcel is the largest contiguous land parcel within the city municipal limits and has a prime location on the Mumbai-Pune highway. The Wakad land parcel lies in close proximity to the Rajiv Gandhi Hinjewadi IT Park that houses global IT companies like Infosys, Wipro, TCS, IBM, Tech Mahindra etc. making Wakad a preferred residential choice in Pune. The company will develop a mixed-use residential housing project with some commercial aspect. — TNS and Agencies
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vaastu
wisdom
Prominent township projects are coming up on NH-8 beyond the second toll plaza. The major developers active there include Vatika (Vatika City Next), DLF (GardenCity) and Orris Infrastructure. Other major developers on this stretch are Godrej, Emaar MGF, 3C, Ansal API and Spaze, among others. 
Q. A 100 sq. yd plot was purchased in 1968 for
Rs 1200 by my mother in Delhi. The plot that had two kutcha rooms was willed in my name in 1984 by her. She expired in 1990 and after that I got it mutated in my name in the municipal records. The Will has not been challenged till the date. However, I want to relinquish my right over the above said property just to keep good relations with my brothers.
Some shrubs can also be trained to look like small trees. Here are some of these small “beauties” that grow well add a dash of colour and grace to your garden: