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real policy
tax tips
decor
trends
Green
house
real talk
Launch Pad
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Green wave
Emerging trend As the realty business is getting more organised and professional, consumers too are now more aware of the new-age technological advancements. “Having understood the benefits of living in a green, eco-friendly and environmentally sustainable space, buyers and corporate occupiers are now seeking out green projects”, says Vikas Gupta, director, Earth Infrastructure Ltd. And developers are ready to fulfill the aspirations of the buyers, who are not just looking at price points, but are also looking at quality projects that are being built incorporating the elements of a greener project. A number of real estate developers are, in fact, now building two categories of projects — one with normal specifications and regular features and the other with slightly modified specifications having green technologies. While the first category has been the norm till date, second category of projects are now attracting a number of developers. The quick returns potential of these projects on account of the interest shown by all kinds of buyers is the factor that is attracting a number of developers. “In the recent past as consumers have started demanding more greener projects, the industry has now started planning and developing eco-friendly green buildings,” adds Gupta “While the commercial real estate has always been the front-runner in developing green buildings, residential real estate is also fast catching up with the increased demand,” he says. “Looking at the current scenario, we as developers are keen to opt for green initiatives. There is now a deep penetration of the knowledge regarding the benefits of such green initiatives among the real estate fraternity and also greater support in terms of the government policies”, says Anil Mithas, CMD, Unnati Fortune Group. So, developers are using practices like rainwater harvesting, water recycling plants, construction materials like fly ash bricks besides other elements like solar panels etc to make the buildings eco friendly. NCR is leading in terms of the number of such projects coming up. While other regions in the NCR offer a mix of IT and other corporate occupiers, Noida alone has seen demand being driven primarily by IT companies. Need of the hour The definition of a green building as provided by the Indian Green Building Council (IGBC) suggests that such buildings use less water, optimise energy efficiency, conserve natural resources, generate less waste during construction and occupation and provide healthier spaces for occupants, as compared to a conventional building. “Green buildings not only enhance quality of life but also reduce the cost of living, as these involve significantly lower consumption of energy, water and other resources”, says Juggy Marwaha, Managing Director - South, JLL India. According to a study conducted by international property consultant firm, Jones Lang LaSalle India, among the key metro cities, buildings in India consume about 20 per cent of the country’s total electricity and have a significant impact on the environment and resources. Incentives galore Noida is also one of the cities to have provided extra floor area ratio to development firms that are building green projects. Last year, Noida Authority awarded 5 per cent additional floor area ratio (FAR) to a number of developers who were coming up with green buildings. There are tax incentives too on the construction of green project. Various government agencies are also contemplating on bringing new tax sops. For example, the National Housing Bank (NHB) is considering interest subvention on home loans for green buildings. Many more such incentives are required to boost growth. Constraints and challenges The first and foremost constraint for the proliferation of green buildings in India is the lack of information and incorrect perceptions. It is generally believed that green buildings cost more and take a long time to pay back in tangible energy savings. Such a perception leads to lower demand levels from the larger buyer base. According to Marwaha the additional cost factor is rapidly reducing as more and more developers are getting into the ‘green homes’ arena because of increased competition. Also, many developers are deterred from adopting the ‘green mantra’ in their projects because green buildings may involve increased construction costs. “They may also find it challenging to obtain the necessary technologies, source green building materials and find appropriately qualified architects and contractors in India”, adds Marwaha. Nevertheless, developers are aware that the ‘green wave’ is catching the fancy of more and more home buyers in India and want to get on the bandwagon. What to look for The overall benefits of green buildings depend on the extent to which sustainable features are included during the initial planning and design. In some cases, such features can also be incorporated after the building is complete. But the point is that a few green features do not qualify a building as environmentally sustainable. To ensure that a genuinely 'green' residential project is not mistaken for one of the many wannabes, it is important for their developer to obtain accreditation from the green rating systems followed in India. GRIHA (Green Rating for Integrated Habitat Assessment) is one such system which verifies all that a building has adhered to all the prescribed parameters, and that the materials and processes have been used at every stage of construction. Once all the requirements are met, the project is credited as a ‘Green Building’. As the development of green buildings will pick up, there will be creation of employment indirectly. It is, therefore, needed that all policies, efforts and development should be aligned to create a synergy between the government’s plan and the development. An elaborate system can be developed and implemented. “The system will not only bring more supply in line with the government’s vision of creating housing for all but will have to adhere to special green initiatives planned by our urban planners”, says Gupta. With inputs from JLL and Earth Infrastrucure Ltd. Check list for green home buyers
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real policy Real estate developers and property consultants have welcomed the RBI decision to cut SLR, saying this would enable banks to lend more to industry, including cash-starved realty sector. Commenting on the positive impact of the move Anuj Puri, Chairman & Country Head, JLL India, said, “ The additional funds allocated in the hands of commercial banks through a SLR cut is positive for infrastructure as well as the real estate sectors.. The investment cycle is picking up, as is evidenced by the recent Index of Industrial Production (IIP) and Purchasing Managers’ Index (PMI) numbers. Therefore, banks’ willingness to lend the excess liquidity generated to these priority sectors is likely to be high.” “The RBI’s move to cut SLR by 50 basis points to 22 per cent will give banks more headroom to lend and thereby spur lending in future. However, the much anticipated cut in rates would have been more appropriate at this juncture,” Omaxe CEO Mohit Goel said in a statement. Rajesh Goyal, MD RG Group, said, “This will pave the way for commercial banks to pump in money in the private sector. However, the other key rates like repo rate and reverse repo rate have not been changed, which will also have a positive impact on the sector. As a result infrastructure and the real estate sector, especially the affordable housing shall get the easy funding from the commercial banks and the investors and end-users will also benefit from the easy flow of funds in the market”. Property consultant Cushman & Wakefield Executive Managing Director — South Asia Sanjay Dutt said the reduction in SLR clearly indicated that the central bank was keen on freeing up more money for lending, which is positive for realty firms. In the absence of a clear direction of interest rate tapering, Dutt said the developers would be cautious in the upcoming festive season. “In our assessment, once interest rates come off its current levels, fresh demand will be generated for housing sales, leading companies to step up launches,” he added. JLL India Chairman and Country Head Anuj Puri said the additional funds allocated in the hands of commercial banks through a SLR cut is positive for both infrastructure and realty sectors. RICS, a global body for setting standards for property sector, MD South Asia Pacific Sachin Sandhir said: “The announcement of keeping the key policy rates unchanged by RBI comes on expected lines. A low and stable inflation is a necessary pre-requisite for any rate revision.” Sare Homes Executive Director David Walker said, “As expected the RBI has decided to keep rates unchanged as inflation remains on the high side. This means no immediate relief for home buyers in form of cheaper loans.” However the stakeholders were expecting cut in the interest rates. Generalised inflation and interest rates are just one aspect of the costs incurred by developers in India. The other major aspect is construction cost, which has been rising at around 17 per cent year-on-year for the past 4-5 years. The reason for this imbalance is largely the supply-side constraints. “It is important for the RBI and the government to work cohesively towards clearing this demand-supply imbalance”, said Puri. “The sector desires that the government should not only reduce the interest rates, but also maintain the balance on the supply side of the material to cut the cost of construction,” added Goyal of RG Group. Lotus Green Developers’ Vice-Chairman P Sahel hoped that the interest rates would be reduced soon and suggested that the industry should build on the momentum provided by the positive announcements in the Budget last month. Key policy changes — TNS and agencies
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tax tips Q.A plot in Chandigarh built up to single storey was transferred after the death of the original owner in favour of her husband, son and daughter (all legal heirs) by the Estate Office of UT Chandigarh. Till date this property is neither fragmented nor distributed among the legal heirs. This fact was brought to the notice of the Estate Office with the request not to issue an NOC to any legal heir until and unless all the three heirs give their consent. In 2010, one of these heirs without the consent of other legal heirs got an NOC issued and sold his share to an outsider and got the same registered with the Sub Registrar by way of a sale deed. There were several other serious irregularities in the sale deed like non-description of the share, non-attachment of the site plan to identify the sold portion, in the sale deed. Besides, the sale deed was also not drafted by registered and licensed deed writer but was got attested/approved from an advocate. Thereafter, the same advocate became witness of the sale of property along with another second witness who was the real brother-in-law of the seller. Besides, no document to prove his identity was attached with the sale deed. The seller made over vacant possession of his share for unspecified area of the building. Rule 21 of the Indian Registration Act, 1908 and Paragraph 127 of the Punjab Manual of Registration were violated by the seller. In view of above irregularities in the sale deed, the purchaser was not allowed to enter the house by other legal heirs. The purchaser lodged a police complaint against the other legal heirs. The complaint of the purchaser was dismissed after thorough investigation by the Chandigarh Police. It was stated by the police that the case was a civil suit and the complainant may lodge a case in the court of law. The buyer was also directed by the police not to make any efforts to enter the house forcibly without the court orders.
A.Your queries are replied hereunder:
A.Your queries are replied hereunder:
Q. Due to the slow down in the property market in Punjab, I am finding it very difficult to sell my property in the state. This property is owned by four co-owners and I wish to sell it by auction with a reserve price in mind.
What is the procedure to sell property this way and what are the rules and regulations. Are there any real estate agents dealing in this line in Punjab? —
S. Singh A.The sale of a private property by auction will have to be through a recognised auctioneer. In this regard, it is advisable to check with the auctioneers who auction properties that are owned by the government authorities or government companies. The necessary information should be available on the internet in this regard. The procedures and the rules and regulations that are normally followed for such sale can be ascertained from such auctioneers/internet.
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decor
trends No matter how big or small a home is, everyone enters through the foyer. Hence, it is responsible for making visitors imagine the interiors of a house. To make the best first impression, it is important to set the pitch right. Depending on the size of the house, entryways can be big or small. Irrespective of the size, main focus should be on making the entryway stand out. Although entrances should be serene spaces, more than often these are cluttered with bags, shoes and mails. But with a little bit of creativity and effort, this aspect can be tackled. Let's consider some elements that can go into creating a stunning entryway. These include colour, scent, furniture, lighting, rugs and the most important of all — the surprise element. Splash of colour Another way to create a focal point is the colour palate. Wall colours give the foyer life and personality. Consider incorporating warm and welcoming colours. Keeping this aspect in mind, neutral colours such as ivory or aqua blue can be selected. Another option is a spot of warm amber on the niche that is visible from the door. This can act as an element of surprise that is delicate yet effective. Unexpected colours through painting and artwork can also be incorporated in the foyer. Additionally, a landscape painting or classic clock would be fabulous against the perfectly painted walls. Light up the mood An often overlooked but important aspect of entryway decor is the lighting. Lighting sets the tone and can make a small space look larger or a larger space cosier. Light in the foyer should be adequate thereby illuminating the space. Soft lighting is not only warm but also inviting. It is a beautiful way to welcome guests and making the room more intimate. Wall lighting fixtures and lamps are ideal selections for a foyer as chandeliers and pendant lights over decorate the area. Scent Another aspect of decorating the entryway is a soothing scent to make the visitors feel at home. Fragrance candles and aromatic reed diffusers or a eucalyptus arranged in a vase create a lovely scent. Also, decorating the foyer with fresh flowers is a good option. Alternatively place indoor plants to give the entryway an aesthetic look. To give the foyer an interesting look, a whimsical rug at the entrance could also do the job. Make a statement by having a unique door knocker and a pretty outdoor light fixture for the front door. Decorating the foyer with a collage of family photos highlighted with spot lights could also be attractive. One can also choose a digital frame allowing you to load several pictures and keep them rotating throughout the day. We get only one chance to make a long lasting impression, so create it by eliminating items that are non-functional and doing things the right way. — The writer is an architect working for Emaar MGF Feisty floors After getting the furniture right, comes the flooring. Whilst selecting the flooring for one's foyer always keep the fundamental purposes in mind - constant traffic bringing in mud, dirt, and rain. Accordingly something which is durable and easy to clean yet weather resistant should be selected. Also, wood floors or laminates work well as do the tile options like ceramic, terra-cotta or slate. However, steer clear of wall-to-wall carpet since it is difficult to maintain as far as the entryway is concerned. Object d'art First of all, one needs to select furniture for the entryway that is cosy yet eye-catching. Depending upon the space available, include a sleek accent table, artwork or a mirror. Carefully choose pieces of varying heights and textures to grace the table. Plants, lamps or a few of your favourite collections can be utilised beautifully in this area. To finish the look, one can put elements beside the table like a woven basket for storing odds and ends. Another innovative decor option is to place a full-length mirror in order to make the foyer look spacious. One can also add a wall mounted organiser with a mix of cubes and shelves, for mails and keys. If space permits, a bench or chair for seating can also be included. Benches with drawers are available in the market that provide additional storage space.
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Green
house Cacti are a part of a larger group of plants called succulents, therefore all cacti are succulents, but all succulents are not cacti. Cactus-like succulents are species from different families. They are season-free plants which look fresh and beautiful throughout the year. Selection of these plump and spiny plants can be made from numerous species as they come in different shapes, colours and sizes. Some of them bear the most beautiful flowers in the plant kingdom. Pachypodiums that, resemble cactus are, in fact, spiny succulents are among the plants that have gained popularity as landscaping plants in the recent years. There are 25 species of this ornamental plant that is much soughtafter and is highly valued for long lasting and beautiful flowers and some amazing caudices. Agaves are perhaps the most familiar of all succulents. Their long leathery and fleshy leaves with terminal spines have great longevity and give a cactus-like ornamental look. They make striking landscape plants. Some of the Euphorbia species in succulents having cactus-like spines are milii, horrida, ferox, mammillaris, and grandicornis. These species contain milky sap; many of these species because of their spines look like cactus plants. Here we take up Euphorbia milii hybrids and Euphorbia grandicornis which are spiny succulent plants resembling cactus. There are many sought after hybrids and cultivars of Euphorbia milii which are perennial ornamental flowering bushes that come in a large range of flower colours. The flowers are showy, long lasting and of different sizes. These plants are rugged, compact and almost disease-free. They hardly need any care and grow up to different sizes. In the tricity, there is a craze for such plants with different hues and many of the residents are growing these plants successfully. The beauty of these plants lies in their multi-utility and can be used as: Growing tips Euphorbia grandicornis It is a South African cactus-like multi-branching slow growing succulent plant. The greenish stems bear 3-4 angular and zigzag ridges decorated with unique spikes resembling the shape of cow’s horns. This distinguishing feature has made it ornamental and a collector’s choice. In habitat it grows up to 2 metres in height, but in cultivation it reaches upto a metre. It is a hardy plant, but for profuse flowering place the plant in full sun to partial shade and grow it in free draining compost. Tiny yellow to green flowers appear at the top fresh growth between the spines which are surrounded by small leaves during summers. Prune the plant to keep it in the desired shape and size. Propagation is easily done by the cuttings in late spring to summer.
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real talk
Several micromarkets in the NCR not only successfully bucked the slowdown trend in the dismal 2013 as far as the sales were concerned, but the prices have also shown appreciation. With revival just around the corner, experts have indicated that there will be a healthy price apreciation in these micromarkets over the next few months. Manish Agarwal, MD of Satya Group and Secretary of CREDAI NCR and acting Co-Chairman of the Housing & Urban Development Committee of PHD Chamber of Commerce, talks about the current trends in the NCR. The Satya Group has developed nearly 11.5 million sq ft in residential, commercial, hospitality and retail projects across four states — Delhi, Haryana (Gurgaon), Madhya Pradesh (Indore) and Punjab (Bhatinda). Excerpts:
Are micro markets in the NCR region fast losing their affordable tag? What are the options for those looking for affordable apartments in this region? How do you see the future prospects of Dwarka Expressway? The Dwarka Expressway certainly has bright prospects because of better infrastructure, proximity to IGI airport, forthcoming diplomatic enclave. It is the state’s widest ever (150 mtrs) project with high stakes for both government and investors. The residents of the surrounding area too have benefited out of this big-ticket infrastructure project. Recently, HUDA started the construction work on its part of 1.3km railway over bridge which will ease traffic flow from Palam Vihar side to Dwarka Expressway. Some developers have started giving possession too. We are going to witness a lot of activity here. What are the new buyers in NCR preferring now. Is the demand more for two or three BHK units or studio apartments? The demand is very varied and in many cases depends on the location or the micromarket. As a result most of the developers are providing a mixed choice in one project to cater to the needs of all sorts of customers. The studio apartments are generally in limited supply and it is the 2 and 3 BHK that is more in demand in almost all micromarkets in NCR. Like at present the Gurgaon market is experiencing mixed demand for 2/3/4 BHK apartments with bigger unit sizes. Prospective buyers in this area are preferbly looking for luxury units with international features and specifications. They have and are ready to shell out more money for the kind of luxury they are aspiring for. Given the fact that India is fast becoming country for executives, do you expect service apartment segment to turn the tide for developers? The booming service sector along with growth in tourism and corporate travel has created a vast market for serviced apartment segment in India. The other sectors such as IT, ITeS, BPO, consulting and financial services have also driven the demand for serviced apartments. Despite the past few years of a global slowdown, our country has witnessed many global Serviced Apartment operators entering the market, including Oakwood, Bridgestreet, House of Modern Living, Ascott, etc. But still, India has a long way to go to achieve the levels of the European market, which has been aggressively marketing the concept of serviced apartments. On a micro level, with business and medical tourism increasing in places like Gurgaon, people prefer service apartments over hotel rooms for longer stays because it gives the comfort of a home and certain services available at hotels and are cost effective. The government seems to betting big on the housing front to drive the growth. Do you expect the real estate sector to benefit out of it? About 18.78 million households grapple with housing shortage in urban India (2012) as per the estimate of the Technical Group on Urban Housing Shortage. In the light of this fact, it’s a sign of progressive politics that BJP-led NDA government has announced concrete plans for housing and smart cities in the Budget. — As told to Geetu Vaid
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Launch Pad
Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the $16.5 billion Mahindra Group, recently launched its first ‘Happinest’ project in Avadi, a suburb of Chennai. With this project Mahindra Lifespaces has forayed into the affordable housing space. Speaking on the occasio Anita Arjundas, Managing Director & CEO, Mahindra Lifespace Developers Ltd., said, “Built on the three pillars of trust, better living and affordability, Happinest endeavours to meet the housing needs of families with a current combined monthly income of
Rs 20,000 to Rs 40,000.” Homes in this project will be priced from Rs 9.9 lakh onwards. Happinest is located in one of the fastest growing suburbs of Chennai, with proximity to social infrastructure such as the railway station, bus stands, schools, colleges, markets and hospitals. Spread over 13 acres, it will be home to 1200+ families. The development consists of 1 and 2 BHK apartments with sizes ranging from 396 sq. ft. to 677 sq. ft. Alpha G:Corp to launch 2 projects in Gurgaon Alpha G: Corp has announced that it will undertake two new residential projects in NCR of an estimated outlay of approximately
Rs 525 crore. Speaking on the occasion Ashish Sarin, Director and CEO of the group disclosed that the company would come up with a premium housing project in Sector-15 and an affordable housing project in Sector-84 in Gurgaon. “The new projects are poised to capitalise on the imminent market recovery,” said Sarin, referring to the ongoing policy reforms by the government. The company is also looking to foray into the development of serviced-apartment market in Tier-II and III cities which are currently under-served. Alpha G: Corp is an FDI-funded developer backed by marquee foreign investors such as Morgan Stanley. The business model followed by the company entails undertaking projects through Acquisition, Joint Venture Development and Real Estate Asset Management (REAM). Embassy Group launches Hilton Bangalore Embassy GolfLinks Hilton Bangalore Embassy GolfLinks, developed by Kelachandra and Embassy Group, was launched by the Chief Minister of Karnataka, K Siddaramaiah earlier this week. The trendy upscale, full-service hotel is strategically located within the Embassy GolfLinks Business Park, the hub of several Fortune 500 companies. The hotel features 247 studios and suites that are among the largest in the city. “We are very excited to expand our portfolio in India, a very important hospitality market for us. Hilton Worldwide entered Bangalore this year and this is our second hotel in the city”, said Daniel Welk, Vice President, Operations India, Hilton Worldwide. Krishnabhumi in Vrindavan Krishnabhumi, a unique initiative in Vrindavan being undertaken by ISKCON Bangalore and Infinity Group headquartered in Kolkata, was unveiled earlier this week. This gated community of Krishna followers will have an iconic Krishna temple — The Vrindavan Chadrodaya Mandir. At a height of 210 metres or 700 ft, this temple will be the tallest Krishna temple in the world. Spread across 70 acres, the temple will also offer a huge temple hall, a Krishna Heritage Museum along with a study centre and a Krishna Lila Park. The project will have luxurious villas and apartments, spread over 40 acres close to the temple. The residential options have been designed to suit every lifestyle need and pocket. So, while on one hand Krishnabhumi offers luxurious villas in 'Shyam Kutir, Keshav Kutir & Gopal Kutir', on the other hand, it has a range of apartments starting from a studio to a 3 BHK option. Krishnabhumi will be built and served phase by phase, with the first phase, Govardhan Vas being currently opened for booking. Govardhan Vas is a cluster of 11 towers with a range of apartments. Speaking on the occasion, Ravindra Chamaria, Chairman & MD, Infinity Group said, “Even the smallest details such as making the complex old age friendly, providing diagnostic and day care centre, ensuring doctors on regular visit, availability of health check-up have been kept in mind to ensure a safe, comfortable and memorable experience for all residents of Krishnabhumi.”
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We have already talked about growing some of the “thorn” less cactus species and gave an option to those cautioned by Vaastu experts to shun cacti because of the negative energy created by the thorns. While the general opinion is that only cacti have thorns, the fact is that there are some succulents also that have spines and resemble cactus plants.
The new government’s intent to develop 100 “Smart Cities” has created quite a buzz in the realty sector ever since the allocation of
Rs 7,060 crore for these in the Budget last month. The focus on smart cities is also going to propel the construction of sustainable buildings as other than the use of information and communications technologies (ICTs) most smart cities will have to adhere to green building norms and reduce carbon emissions.
Reining in inflation seems to be on top of the agenda in view of the RBI’s monetary policy announcement earleir this week. RBI decided to keep the key policy rate unchanged but slashed statutory liquidity ratio (SLR) by 0.5 per cent to unlock about
Rs 40,000 crore into the system.
S. C. Vasudeva
Kindly advise on the following points:
Q.My wife and her sister are legal heirs of a 500 sq yd house in Sarabha Nagar, Ludhiana, after the death of their parents. The house had been acquired by their parents in 1985 and has been duly transferred in their joint names. Now both of them want to sell this property. Is it possible to avail of Section 54 to get exemption from tax on the capital gain by buying property elsewhere in India? Will that exemption stand in case they buy two separate houses in their individual names utilising the sale proceeds or will they have to buy a single house in the joint names within the stipulated period? 
Just as the first impression is important for a person, an impressive entryway is an important factor in leaving a long-lasting impression on the visitors.
We have already talked about growing some of the “thorn” less cactus species and gave an option to those cautioned by Vaastu experts to shun cacti because of the negative energy created by the thorns. While the general opinion is that only cacti have thorns, the fact is that there are some succulents also that have spines and resemble cactus plants.
It is not the spines of cactus that distinguish it from other succulents, it is the presence of areoles or cushion-like structures in cactus, that are the identification points for a cactus . 
Euphorbia milii hybrids
Affordable tag has a very fluid definition which depends on a number of factors like the income group of the buyers, the location, size of the units and the type of developer and projects. There is no doubt that if one is looking for a house in the
Rs 25-30 lakh range then most of the micromarkets in the NCR have limited choice at the moment in the secondary as well as primary market. But still belts such as Sohna, Bhiwadi and Manesar (New Gurgaon) are still comparatively affordable and there is plenty of inventory in this range available there. So all of NCR is not out of the reach of a mid-income group buyer, actually there is a lot of choice available. The Gurgaon realty market is unique in nature in many ways which impact the affordability debate. The aspirational couple working in fortune 500 companies, MNCs and big corporation are looking for not just houses but luxury in Gurgaon market so the affordability threshold in this area is much higher than that in other NCR locations.