area watch: ambala
No price breach in Ambala
Even though the city has been in the grip of a severe slowdown for the past couple of years, there has been no price correction here. The end users waiting for prices to drop are not likely to get a better deal few months down the line
Manish Sirhindi

One of the unapproved colonies in the Ambala cantonment area, the regularisation of which is likely to drive the property prices here

While low sale volumes and price stagnation have been plaguing the real estate market in Ambala for over two years now, there has not been any price correction over the past 12 months in areas in and around the city. According to local property consultants this is a positive sign as even vibrant and promising realty markets like Chandigarh and Panchkula have seen price correction of up to 35 per cent in the same period. However, for many fence sitters in the city who were waiting for the prices to fall to some extent to finalise their deals in the residentai las well as commercial segments the wait has not only been long but a frustrating one too. With the election process already on and the formation of a new government imminent, experts are terming the next couple of months to be the right time to finalise deals as property market is all set to see some momentum and revival by Diwali. Even though Ambala has not traditionally been a bustling realty market as it is basically an end-user driven market, the prices are likely to appreciate in the colonies that have been regularised recently.

The fact that the state government has cut down the regularisation fee for the unapproved colonies in the state, has also raised the expectations of the property dealers that the sale and purchase of the property would gain the required momentum after the elections.

The roadblocks

The Supreme Court ban on registry of properties on basis of general power of attorney (GPA) and high interest rates have been the major factors in stalling day-to-day deals that earlier kept the real estate business going in the city and its vicinity. The past couple of years have been really tough for those in this business with several city-based property consultants shutting shop due to lack of buyers. Even developers — big and small — having projects in and around the city preferred to lie low till favourable winds flowed in this sector.

While till last year there was a lot of buzz that companies such as Unitech, Reliance Industries and DLF were to acquire land for their SEZ on Ambala-Naraingarh road, but these projects also got shelved due to the slowdown. No new projects were announced in Ambala in 2013.

However, the changing trends are likely to give a boost to the property business and make it as lucrative as it used to be, says Omkar Nath Pruthi, former president of the Ambala Property Consultants Association. He said that the implementation of some decisions taken by the state government over the past few months would put the property dealers back in business and also increase the rates of properties across the state.

Mahinder Sethi, chairman of the Ambala Property Consultants Association, maintained that with the regularisation of the unapproved colonies, getting loans from banks for buying property here would become easier and is likely to bring end users back to the market. The uncertanity over the legal aspects of deals in inapproved colonies and the non-availability of loans had been the major concern for end users looking to buy property in residential colonies in the area.

Though there are HUDA developed approved projects also but the prices there have remained high over the past few years making them virtually out of the reach of a common buyer. Sethi said that an average employee found it hard to buy a plot in the approved colonies where the price ranges between Rs 20,000 and Rs 50,000 per square yard.

Meanwhile, despite the slowdown, the property prices have remained steady. While, there were no buyers in the market, the sellers showed no hurry to sell properties in anticipation of a boom soon.

As of today, plots in the sectors developed by the Haryana Urban Development Authority (HUDA) are fetching a price of Rs 15,000 to Rs 30,000 per square yard. While, plots in private colonies such as Agrasen Nagar, Dayal Bagh and Rani Bagh are available in the price range of Rs 20,000 to Rs 30,000 per sq yard.

HUDA has set up three sectors — 32, 33 and 34 near Gasitpur village in Ambala Cantt, and it plans to add three more sectors as part of its expansion. But these plans have not been finalised as yet.

Meanwhile, areas along the Jagadhri road have been developed as a major hub for the car dealers as almost all major car companies have set up their sales centers on this road. Unlike other areas, where the prices have remained steady, this area has seen a steep rise in land prices because of this development. While, till 2012 an acre of land cost Rs 60 lakh to Rs3.5 crore, the prices have now gone up to Rs 1.5 crore to Rs 5 crore.

Delay scare gives boost to resale market in NCR
Vivek Shukla

Manoj Sehgal, a Delhi-based businessman, is one among lakhs of buyers who have been suffering monetary losses and mental stress due to slow pace of construction of housing projects in NCR. Hoping to earn a good rental income, Sehgal had booked a flat in a housing project in Noida. He had paid ~25 lakh for this flat in March 2010. But now four years later and after a delay of one year, Sehgal is just getting promises from his developer that the flat will be delivered ‘soon.’ Sehgal is not the only unfortunate customer who is facing mental and financial agony for no fault of his, there are thousands others like him whose dream of owning a home has turned into a ‘delay nightmare’.

In such a scenario the genuine buyers have pinned their hopes on the new government to put a system in place to rein in the shady builders and make them more accountable.

In the absence of regulator for the realty sector at present, most of the buyers have no option but to wait patiently in case their builder misses the deadline for completing a project.

According to a survey report by PropEquity, a real estate research firm, the performance of the National Capital Region based developers is very poor in terms of the timely delivery of flats. The rather shoddy show by developers is a huge dampener for potential home buyers. According to Sameer Jasuja, head of PropEquity, “The situation is bad in NCR as several projects are getting delayed by 19 to 25 months. Average project delay in Faridabad is 25 months, in Ghaziabad it is 19 months, 24 months in Greater Noida, 22 months in Gurgaon and in Delhi it is 20 months. It is painful. Realty companies must improve their working for the sake of their customers.”

Rakesh Kapoor, a banker, was so scared after hearing such stories that he finally decided to book a flat in a project that is in the final stages of completion in Gurgaon. “ Rather than booking a flat in some new project, I settled for a project that was in the final stages of completion. I know that I will not have to suffer the agony of delay of projects,” says a relaxed Kapoor.

In fact, many others like Kapoor are shifting their focus to projects that are nearing completion or in which the construction is already underway than the newly launched projects. Commenting on this trend Nikhil Jain, CEO of Ramprastha Developers says, “It is not a bad idea to buy a flat in the projects where construction work is on rather than stopped. ”

Even though there is a lot of inventory overhang in the NCR region, most of these properties are available in the secondary or resale market. “As some builders are not giving possession of flats to their customers, the re-sale market is improving. Those looking for property are even considering old properties,” says Sanjay Khanna, director of Kailash Nath Developers.

Though the price can be more in such deals there are certain advantages that are making the buyers opt for ready-to-move-in or nearing completion properties. The main advantage of going in for a resale flat is that one can buy a home in a location of one’s choice. More often than not, buyers hardly get the location of their houses of their liking if they opt for a new project as the allotment of the flats is done at a later stage and the builder may charge preferential location charges in case a buyer specifies a particular location. This is a huge advantage in resale market. The resale market has a large number of recently-built houses that are owned by investors who want to cash out so a new buyer has a lot of choice. Then the buyers also have a clear picture about the required approvals and clearances for a project. It is also easier to get loan from bank for a project that is already under construction.

“Another reason for buying a house in the resale market can be non-availability of new projects in the area where you want to settle. New residential properties tend to be scarce or non-existent in many central locations,” says Om Ahuja, Chief Executive Officer, Residential Service, Jones Lang LaSalle India (JLL), a real estate advisory firm.

If the under-construction project is close to completion, the price difference will be minimal. The difference will be more in the initial stage, but in such a case the risk will also be higher. “When somebody asks me what he should look before taking final decision to buy a resale flat, I told such people that it’s always safe to get all the documents verified by a legal expert. Check if the seller is actually the owner of the property,” informs Mahesh Sharma, chairman and managing director of Mahavir Hanuman Group, adding , “ If the property is in a housing society, then buyer should check its rules. Housing societies control various aspects of services, charges and even sale of properties based on their bylaws.

“ I feel that the first step is finding the legal owner of the property when you are buying a re-sale property. In this connection, you can take the service of some lawyer to check the ownership papers,” suggests Sanjay Khanna, director of Kailash Nath projects. An expert also says that you must take enough time to check and re-check whether all the documents pertaining to the resale is clear and in order.

market pulse
Office space demand slows down

Office space absorption fell by 5 per cent, while supply declined by 34 per cent during January-March period as corporates continue to remain cautious about expansion, according to global property consultant CBRE.

“Office space demand slowed down in the first quarter of 2014, with around 6.3 million sq ft of office space getting absorbed across the leading cities of the country as against 6.6 million sq ft in Q1 2013 — a drop of approximately 5 per cent,” CBRE said in a report.

About 6.6 million sq ft of office space was completed in the first quarter of 2014 calendar year compared to about 10 million sq ft in Q1 2013.

“Overall, the commercial real estate market in India saw sluggish transaction activity and a low level of new completions during Q1 2014.

Cautious mood

“Leading cities continued to see heightened caution from corporate occupiers, resulting in subdued leasing activity during the first three months of the year. The majority of these deal closures took place for small to medium-sized office spaces,” CBRE said.

IT/ITeS, financial and services segments continued to drive demand for office space, according to CBRE’s latest report India Office MarketView Q1 2014.

The transaction activity was dominated by the national capital region, Bangalore and Chennai — representing about 70 per cent of the total space transacted during the quarter.

“New office space supply in the leading cities was also affected due to the existing vacancy levels and lower demand,” CBRE noted.

CBRE South Asia Chairman and Managing Director Anshuman Magazine said: “Occupiers continue to remain focused on optimal space utilisation and cost-saving strategies.” Going forward, he said, the demand is likely to be concentrated mostly in the peripheral micro-markets of leading cities, owing to abundant availability of cost effective quality space options.

“The upcoming general elections and the formation of a new government are expected to affect the corporate market as well. In the short to medium term, we can expect firms in the IT/ITeS, banking/financial services and pharmaceuticals to remain key contributors to overall office space absorption across major cities,” Magazine said.

Mixed trends in rentals

Rental trends exhibited mixed sentiments across micro-markets.

“Rental values in the Central Business Districts of Delhi, Bangalore, Chennai and Pune appreciated in the range of 2–5 per cent quarter-on-quarter (q-o-q) due to increasing occupier interest in leading Grade A properties,” CBRE said.

In Mumbai, feeble demand levels continued to have a negative impact on rentals across markets, with values dipping by 2–5 per cent q-o-q in Nariman Point, the Bandra–Kundra Complex, Worli and Prabhadevi, mainly due to weak occupier demand and existing vacancy pressures. — PTI

tax tips
Can I claim tax rebate on loan for renovation?
 S. C. Vasudeva email your queries to realestate@tribunemail.com

Q. I have a house which is self-occupied. The said house was built by my father and has been inherited by me from him. It is a very old house which was constructed about four decades ago and requires extensive repairs. I intend borrowing from a bank for reconstruction of the house. Will I be able to claim tax deduction on the interest paid on such a loan against the income from my self-occupied property as well as for instalments paid toward the repayment of the loan? 
— Umesh Khanna

A.According to the provisions of Section 24 of the Income Tax Act 1961 (the Act), the income chargeable under head ‘income from house property’ is required to be computed after allowing apart from the other deductions, a deduction towards interest payable in respect of the amount borrowed for the acquisition, construction, repair, renewal or reconstruction of the house. The permissible deduction for the interest on borrowed amount for repair, renewal or reconstruction is limited to ~30,000. You would thus be able to get a deduction to the extent of ~30,000 against the income from house property.

The deduction in respect of the payment made towards repayment of the loan is allowable under Section 80C of the Act in case the residential house property has been purchased or constructed with the borrowed funds against which the repayment is being made. No deduction is thus allowable in case the amount is paid towards the repayment of loan raised for the repair/renewal, or reconstruction of the house. 

Rent

Q.I have joined an organisation recently and am posted at Chennai. I am living in a rented accommodatio there. My family, children and parents are , however, living in Delhi in a rented accommodation. I am paying rent for the Delhi accommodation too. Both payments are paid by way of cheque. Can I club both the rentals and claim HRA or I can also claim HRA in respect of rent paid in Chennai. I have come to know that under 80GG, if spouse, children & parents are not living in the premises owned by them, then there is some possibility of claiming expenses on account of rental paid for Delhi premises too. — R.S. sharma

A.The provisions relating to relief to employees who receive house rent allowance from their employer are contained in Section 10(13A) of the Act as well as in Rule 2A to Income-Tax Rules 1962. The aforesaid Section provides for the exemption of any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations. Rule 2A of Income-Tax Rules 1962 provides the limits for the purposes of aforesaid Section. The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause (13A) of Section 10 shall be -

(a) The actual amount of such allowance received by the assessee in respect of the relevant period; or

(b) The amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or

(c) An amount equal to -

(i) where such accommodation is situated at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and

(ii) where such accommodation is situated at any other place, two-fifths of the amount of salary due to the assessee in respect of the relevant period.

Whichever is the least of (a), (b) and (c).

Salary for the above purpose includes dearness allowance, if the terms of the employment so provide, excluding all other allowances.

As would be evident from the above provisions, the intention of the law is to grant exemption in respect of house rent allowance subject to the aforesaid provisions where the assessee is occupying an accommodation for the purposes of his employment. In my opinion, therefore, you would be entitled to an exemption in respect of the rent paid in Chennai only. It may not be possible to combine the rent paid at Delhi and Chennai for claiming exemption under Section 10(13A) of the Act. Section 80GG of the Act is applicable in those cases where a person is not in receipt of house rent allowance but is occupying a rented accommodation. You would, therefore, not be entitled to claim a deduction under Section 80GG of the Act. 

Purchase of agri land by NRI

Q.What are the consequences in case a non resident Indian buys agricultural land in India? 
— Vimal Kumar

A.According to the provisions of Foreign Exchange Management Act 1999 a non-resident Indian is prohibited from buying agricultural land/plantation property/farm house in India. In case the land has been bought without specific approval of Reserve Bank of India the non-resident Indian may be liable to a penalty under Section 13 of the Foreign Exchange Management Act 1999.

Section 13 of the said Act provides that if any person contravenes any of provisions of the Foreign Exchange Management Act, 1999, or contravenes any rule or regulation, he shall upon adjudication, be liable to a penalty of thrice the sum involved where the sum is quantifiable or up to Rs 2 lakh where the amount is not quantifiable and where such contravention is continuing one, a further penalty which may extend to ~5,000 everyday after the day first day, during which the default continues.

HRA exemption

Q.I am working in Chandigarh at present and am entitled to HRA for which due exemption is being claimed as I am occupying a rented accommodation in Chandigarh. I am planning to buy a flat in Gurgaon by raising a loan from bank. Deductions for interest and amounts paid towards repayment are allowable as per advise given by my Chartered Accountant. However, in case I shift to Gurgaon and stay in a rented house will I be entitled to claim the exemption of HRA? — Vinod Kumar

A.The deduction for the amount received as house rent allowance by an employee from his employer is subject to the limit prescribed in Rule 2A of Income-Tax Rules 1962. One of the conditions is that the employee is occupying an accommodation for which he is making a payment. The deductions for interest and repayment of loan are separate and have no connection with the deduction claimed under the aforesaid Rule. As long as you are making a payment towards the rent for the accommodation occupied by you, you would be entitled to claim the deduction of HRA subject to the prescribed limits. Similarly, payment of loan installments and interest thereon in respect of amount borrowed for the purchase or construction of a residential house is allowable as deduction even if you are occupying a rented accommodation at a place where you are required to stay on account of your employment. 

vaastu wisdom
Business booms in south
Madan Gupta Spatu

Q.We are interested in opening an eating joint in an upcoming mall in Chandigarh. Which is the best location according to Vaastu for setting up this business so that it is successful? — C.M bajaj

A.According to vaastu, southern part of any city is more prosperous and sought after the world over be it Delhi, Mumbai, Tokyo, Gurgaon, Noida, London or New York. As per vaastu this is the basic reason why property prices in this (south) area are always leading the prevailing rates than in any other part of the city. Incidentally, if you notice carefully then you will find that most of the successful malls and business centres are towards the southwest of Delhi. Even in Chandigarh the business relating to luxury, vehicles, hotels, malls, cinema halls etc has flourished in the southern area as compared to other sectors in the northern parts. Therefore, investment in a eating joint or restaurant or hotel or in a mall situated in southern corner of the city will be profitable. Select the premises in south direction in the mall itself.

Shell shock

Q.I am very fond of shells and artefacts made from these. Someone has told told me that it is not auspicious to keep these items in one’s home. Is it correct? What can one do to mitigate the ill effects, if any, of these items as I have some expensive items that I can’t throw away or gift. — Rashmi Singhal

A.Vaastu has no strict rules regarding sea shell items in homes. However, some shells have recently been banned and there possession may attract penalty. It is not against Vaastu to keep shells in homes, but take care that these don’t give a cluttered appearance to a room. Actually, Dakshin Mukhi Shankh filled with rice and a silver coin, properly sanctified on an auspicious muhurat and placed in Pooja Sthan is supposed to bring prosperity.

— The writer is a Chandigarh-based Vaastu expert. Mail yout queries to vaastu@tribunemail.com

decor trends
Cool couture for homes
Monica Kamal

With summer season almost knocking at our doors with its bright sunshine and soaring temperatures, it is time to ready your interiors to welcome this “hot” guest with a new look. Here are a few ideas to prepare your space for the summer months at minimum cost by updating what you already have.

Lighten the decor in the bedroom by switching linens and decorative accessories. Seasonal switches give you an opportunity to rotate your collection of bed linen and other knick knacks. Tuck away all your duvet covers and heavy blankets and replace them with light weight cotton coverlets with good breathability.

Change your wool or animal skin carpets with throw in rugs or hand made cotton daris. Available in most flea markets, these daris offer the most amazing colour combinations. Use removable slipcovers, or decorative throws to bring bursts of colour and brightness. While white ones are the perfect choice, khaki slipcovers can also be dressed up with formal throw pillows in an instant.

Use summer colours. Take away all red and grey or other snuggly hues. Dark and muted tones are perfect for fall and winter, but spring and summer scream for light and airy colours.

Bring in brightness and fun elements. Summer for me means pink rose colours, green-blue-whites, mauves and purples. Nature teaches the most amazing ways to work with colours, so take a walk through your garden and get inspired.

Painting one wall with texture paint in cool colours is easy and inexpensive way to jazz up your rooms. Or else just paste wallpaper on one of the walls to do the trick. Choose a floral design or an abstract in fun filled colours.

The use of vibrant colours injects personality into your home. For some people using vibrant colours can be a bit daunting, if you feel like this then start by using them as an accent colour in your design scheme by introducing colourful accessories.

Design is moving towards environmentally conscious yet stylish solutions so go organic. It’s hip to be ‘green’. Use organic mattress, organic beddings, organic paints, organic cleaners, organic rugs or carpets. Try bringing in materials like bamboo, hemp, and jute area rugs which besides being eco friendly give a rustic feel to the environment.

Summer is a good time to indulge in flowers. Buying whole bunches — even roses — becomes less expensive at this time of the year. Place flowers in jugs and keep arrangements relaxed. Pick flowers yourself and mix them with green foliage for a pretty, fresh look. Flowers, plants and fresh fruit centerpieces make your home smell aromatic and look beautiful. This will incorporate the freshness that is so required in the hot weather.

As summer begins, it becomes more difficult to survive in higher temperatures. If you have not installed an air conditioner, this is the best time. Also explore alternatives to temperature regulations, think of insulation techniques to bring down the temperature in your home. Use cold floorings like marble or tiles, avoid carpeting or real wood floorings.

Get curtains to block unwanted light and heat. For drapery, I would suggest curtains paired with sheers as this can give you flexibility in summer months. When you want to bring in the cool evening night air, tuck your curtains and let the sheer fall to allow a view outside and also permit breeze inside. But when you want to keep out the hot summer sun, drape the heavy curtains to block the sunlight. Choose wisely from floral or simply bright coloured fabrics.

Writer is an interior designer and has her label Siddharth By MKC.

Garden files
The leafless wonder
C S Bewli

The fast-growing vines of this plant are completely leafless

Bowiea volubilis commonly known as the ‘climbing onion’ is an unusual bulbous house plant with a tight swollen spherical base made up of many overlapping scales.

At maturity of 5-6 years some bulbs tend to split and produce smaller bulbs to form clumps. During winters when in dormancy the outer scales shrivel and turn brown and assume paper-like epidermis like that of an onion.

It is a very slow-growing and low maintenance species that is adapted to survive in drought as well as in floods and can accept severe winters and summers of our region. A clump of this species is capable of giving a different dimension to the garden. The plant should be kept in every home garden as it can remain ‘happy’ in the same small pot for 5-6 years to grow up to 10 cm in diameter without requiring repotting.

This species is uniquely distinguished from other caudiciforms due to its almost total absence of foliage and this feature has made it a collectable plant among bulb enthusiasts world-wide.

The plants burst into growth in early February producing one or more very fast-growing entwining vines that grow about 4 metres in length. With no tendrils, these bright green vines either climb or scramble on the ground. For the plant to exude beauty, some sort of vertical frame should be provided for it to gracefully coil around it.

Bulbs of ‘climbing onion’

Being leaf-less, these vines are actually the plant’s flower stems that produce a profusion of star-shaped tiny flowers with greenish to greenish-white petals. The flower with six petals is about a centimetre in diameter. It is an ideal plant to be displayed vertically in a hanging basket during summers.

Propagation is through seeds and can also be done by separating and potting bulbs when in dormancy.

— Writer is the President of National Cactus and Succulent Society of India.

Caring tips

Though it is a hardy plant, but to grow it into a show plant, it should be:

Grown in well-drained compost.

Fertilised with half spoonful of NPK once during the month of February.

Placed on a sunny window sill or any other suitable location away from direct sunlight for the vines to look fresh.

Provided with some trellis or any structure for the vines to entwine around to exude its beauty.

Kept dry during winter and the compost should be allowed to dry between waterings.

real issue: sustainable real estate in india
Red signals for Green realty
Rajat Malhotra

The reasons for the relatively slow growth of India’s green real estate sector can be defined at different levels.

At the policy level

The scale of policy-level incentives continues to be a constraint for manufacturers of green technologies, products and equipment as also for developers and consumers of green buildings. To be more precise, the incentives being offered are not consistent across all states, and in states where they exist, the implementation mechanism is not aligned to the expected output

While environmental clearance norms have gained traction over the years, this has arguably had a negative impact on growth because states have not evolved the adoption of appropriate and adequate machinery to ensure that clearances are accorded objectively and most importantly in time. This has created a backlog that has further slowed the growth of green real estate.

As a result the process of providing environmental clearances, while being preferential for green buildings, is inherently slow, resulting in reduced effectiveness of this incentive. From the perspective of developers, there appear to be limited incentives for enabling green initiatives, and current technologies are either too expensive or do not address the requirements of such projects.

While proactive efforts, such as providing extra FSI for projects that incorporate green initiatives and property tax rebates for green developments, have been made by some local bodies, they are not prevalent on a large scale.

Lack of consumer awareness

From the consumers’ perspective, there is a need for creating higher awareness about the long-term benefits of patronising green developments. In terms of awareness, one of the most commonly lacking aspects is a grasp of the short-term cost versus long-term benefits of mainstreaming green initiatives. Awareness on green real estate needs to be boosted by some compelling case studies.

Most of the case studies that exist today are of developments outside India, so they do not tend to inspire developers. Such case studies need to be presented to tenants and landlords with metrics that makes them compelling for both developers and consumers to opt for the Green Alternative. Such adaptation is not too much in evidence today, with extremely limited and piecemeal efforts.

Measures that can boost growth

Among the interventions that would aid the growth of the green real estate sector in India, consistency and effectiveness of both legislation and incentives is probably paramount.

At the level of urban local bodies, efforts need to be made to perform cost-benefit analyses of mainstreaming green initiatives/technologies, and designing incentives that will spur demand for green developments. These need to be viewed from the perspective of city-level infrastructure (transport, roads and intelligent technologies) and individual developments (residential, commercial office, retail and industrial).

At the developer level, platforms need to be created that allow for a higher level of interaction between entrepreneurs who drive technological innovations and manufacture products that promote green developments, and developers who may consider adopting these technologies. These platforms could allow for customised solutions for varying scales of projects, with a view to according benefits to both stakeholders.

Additional awareness drives need to be undertaken to enhance consumers’ understanding of the Green Prerogative and its holistic benefits. These awareness drives could be promoted at the level of RWAs (Resident Welfare Associations) where interactive platforms can be created with entrepreneurs who are manufacturing green technologies and end users. Such drives could result in innovative solutions both at individual household and neighbourhood/community levels. A proactive outreach to end consumers with a view to making green real estate more attractive at a macro level is, in fact, a key factor.

A cue can be taken from the success of the energy star programme for consumer appliances. With more than 60 per cent of future development likely to be residential, it makes a lot of sense to ensure that green real estate rides on intensive awareness programmes and incentives, such as:

Tax rebates for buyers of green equipment

Property tax breaks/holidays for green property owners to offset initial capital expenditure

Lucrative financing options for the purchase of green equipment and green real estate.

Another concept that earlier saw a significant amount of global discussions is ensuring that some amount of direct, unobstructed sunlight is available to each unit for a minimum number of fixed hours in a day. Making this mandatory through mechanisms, such as bylaws for all new developments, would force building designs to be more responsive to climatic conditions via geometrical alignments. We need a widespread adoption and endorsement of the Energy Conservation Building Code (ECBC)

This ‘passive response’ measure would reduce energy consumption without any additional expenditure, merely by design interventions. In addition, the existing building stock needs to be addressed through performance reporting and rewards. Also, the cost of green power needs to be at par with or lower than traditional power.

The baseline objective behind such initiatives would be to boost consumer demand for green real estate, which, in turn, would result in the augmentation of its supply. To some extent, such incentives are already available in various parts of the country.

In Greater Noida for example, increased FSI has provided a fillip to the development of green real estate. However, it has not been extended to other states and municipalities. Such provisions must become consistent to yield benefit that have market-significance. More than 60 per cent of our infrastructure is yet to be built, and it is obvious that it will not be built only in the Northern states. The incentive of property tax rebates is entangled in debate — implementation is lacking, and this is leading to disillusionment amongst developers. Further, even this is not consistent across the country. The instances of this rebate having been actually extended to developments are few and far between.

Existing incentives

NOIDA Municipality allows 5 per cent more built-up space for Gold-rated buildings as compared with the normal floor area ratio (FAR) or floor space index (FSI) allowed for conventional buildings. This has worked, and IGBC also corroborates that this incentive has had a positive impact on Green Development in NOIDA.

The National Housing Bank (NHB) is considering interest subvention on home loans for green buildings.

More than 70 per cent of energy consumption attributable to buildings in the country is actually accounted for by residential. Therefore, the potential of green real estate in residential in terms of overall impact on the environment is huge. This has to be taken note of, and is reason enough for special incentives.

— The writer is COO (West Asia) Integrated Facilities Management, JLL India

real course
Training for plumbers

According to a National Skill Development Council survey, just 0.5% of plumbers in this country are trained. There is whopping requirement of 12 lakh trained plumbers by 2020 whilst currently available are only 2.5 lakh that too most of them are untrained/self trained. Keeping in mind the current state of the plumbing skill availability various bodies are taking steps towards the same. For instance the Indian Plumbing Skills Council under National Skill Development Council, Under the Ministry of Finance, takes up various initiatives to train plumbers. Similarly corporate brand such as M-Seal is tying up with IPSC to launch a training programme. M-Seal and Indian Plumbing Association, towards this direction also celebrated World Plumbing Day across India to recognize the important role plumbing plays in the health and safety of modern society. Mr. Vishal Malhan, VP- Sales and Marketing, CP-MNT Division, Pidilite Ltd, said, "As an industry, plumbing plays a paramount role in providing potable water, safe sanitation and water conservation apart from ensuring safety of buildings and their occupants. It is crucial to train plumbers." Highlighting the need for proper traininig Harpreet Singh, Vice President- Industry Engagement, Indian Plumbing Skill Council (IPSC) said "IPSC works as an accrediting and certifying body to fill gaps between skilled and unskilled labor in India. We aim to develop national occupation standards, execute, aid and assist all activities towards skill development in the plumbing sector. We are glad to announce our association with Pidilite Industries Ltd. who are helping us take this initiative of training plumbers on a sustained and evolving basis." — TNS

Certificate course in real estate laws

Realising the dearth of awareness among real estate stakeholders regarding real estate laws,Gujarat National Law University, Gandhinagar (GNLU) conducted a certificate course on real estate laws recently. This was GNLU’s second endeavour in promoting these laws. The university had also organised a national symposium of realty law recently.

The certificate course comprehensively dealt with three tiers of regulations governing real estate; namely the centre, state and local laws. Designed and coordinated by Anand Shrivas (CCEL Research Fellow on Real Estate Laws) the weekend certificate course was attended by builders, developers, real estate agents, housing finance institutions, architects, civil engineers and lawyers. GNLU now plans to conduct similar courses across India in various cities in order to train real estate professionals in the legal aspects on real estate.

realty bites
NHB to grade housing projects

The National Housing Bank is all set to come up with a rating for housing projects in association with banks, to help buyers make informed decisions. “We have sought RBI nod to launch the NHB-IBA rating for real estate projects. We expect to launching the rating soon,” NHB Chairman and Managing Director R V Verma said in Mumbai recently. However, the rating will not be mandatory for all, added Verma. “We have suggested that let us not make the rating mandatory for projects. Rather, we can incentivise its use through various means,” he said.

Using the rating ranging from 1-7 (seven being the best one) for a project, a potential buyer can make a more informed decision and go for the best project.

The rating will be given by one of the registered rating agencies and be made public. Aspects like financial details, legal issues like land titles, track-record of the builders, approvals received by the project and repayments made to financiers among others will be considered while arriving at the rating.

The incentives will include concessional interest rates to borrowers opting for projects with better rating and also concessional interest rates to the builders for their project loans from the lenders, he said.

Kolte Patil acquires land parcel in Pune

Pune-based real estate developer Kolte-Patil Developers Limited has acquired a 30-acre land parcel at Kondhwa in Pune along with ASK Real Estate Special Opportunities Fund for ~160 crore. The company will develop a residential housing project on the said land parcel. This land parcel is located within Pune city limits, in the prime Katraj-Kondhwa areaof South Pune. The project has good connectivity from the Mumbai-Bangalore Highway (NH4) and the Pune-Solapur Highway (NH9) while being in close proximity to key business areas and several prestigious educational institutions. — TNS

ACME bags 36.57-cr project

Green technology solutions company ACME has bagged ~36.57 crore order for constructing the ‘Games Village’ at XXXV National Games Kerala.

The group will undertake construction of housing units in the Games Village using PUF based Prefab Technology in EPC mode, covering design, supply, transportation, erection at the site, including internal services. The facility will be spread over 28 acres of land belonging to Kerala SIDCO in Menamkulam and the facility will house approximately 5,000 persons.

ACME will use the Pre-Fabricated Technology that will not only help Games Authority towards making the National Games 2014 as the ‘Greenest’ & the most energy efficient but also cost effective and time-saving. Further to lower costs involved, the advantage of having a pre-fabricated Village would also ensure negligible operation costs. It can also be relocated to any other site with only 10-15 per cent cost for dismantling an existing structure and re-assembling it.

launch pad
Solitairian City on Yamuna Expressway

Solitaire Realinfra Pvt Ltd (Le Solitairian) recently announced the launch of Solitairian City project along Yamuna Expressway.

Spread across 16.54 acres, with additional 8.1 acres of master green area the city is just 309 meters from Formula 1 racing track.

The project consists of 2/3/4 BHK Apartments, villas, cottages and iconic towers haing high end facilities like sky club, sky gym and private pools in 3/4BHKs (Iconic Tower). Properties in the project are available at Basic Sales Price (bsp) of ~3850 per sq ft for two iconic towers and ~ 3350 for rest of the 11 towers. According to the company spokesperson the possessions are likely to be handed over by the end of 2018.

Chintels Serenity

The Chintels Group which is in the process of developing over 600 acres of self-owned prime land in and around Dwarka Expressway bordering and including Delhi announced the launch of its residential project Chintels Serenity in Sector 109 on the edge of Dwarka Phase II, New Delhi. The new project will have 370 neo-luxury, lifestyle 3-4 bedroom apartments including penthouses spread across an area of 1 million square feet and will consist of 9 high-rise towers, two of which will be Iconic Towers. The size of the apartments will be in the range of 2100 sq ft- 6500 sq ft. It will be a part of Chintels Metropolis, a self-sustained area development by The Chintels Group, which will provide quality housing and living environment spread across 3 premium sectors of Gurgaon: Sector 109, 108 & 106. The project will be ready for possession by end 2017.

— Based on information provided by the developers

Shahi Vilaas in Neemrana

Innovative Group has announced the launch of "Shahi Vilaas" - a residential project south of Neemrana. The project which will be spread over 500 acres will be developed in three phases of 200 acres, 150 acres and 150 acres. Shahi Vilaas will offer a wide range of 1, 2 and 3 BHK upmarket lifestyle villas ranging from 900 sq. yd, 1200 sq. yd and 1500 sq. yd, respectively. Shahi Vilaas will have 500 villas centred around a golf course close to the Delhi-Jaipur NH8 south of Neemrana. The villas have been priced at ~ 5000 per sq ft and these will be completed within 30 months according to a company spokesperson.