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realty summit Right direction must on road to urbanisation Increasing urban population, growth of industry and clearance for major infrastructure projects like the Amritsar-Kolkata Industrial Corridor have upped the real estate potential of Punjab and the Chandigarh tri-city region significantly.  Punjab Governor Shivraj Patil releases FICCI-EY North India Real Estate report 2014 in Chandigarh. Tribune Photos: Pradeep Tewari
ncr real estate: ghaziabad
Housing prices fall during
April-June in Delhi-NCR
Connecting corridors
realty bites
home trends
Ground Realty
launch pad
tax tips
phdcci organises real Estate Summit
loan zone
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realty summit
This region has been pegged as a “golden” realty hub according to the “Transitioning
from Urban to Realty Lab” report presented by the Federation of Indian
Chambers of Commerce and Industry (FICCI) and EY at “Housing and Urban
Development in North India” conference and exhibition held in Chandigarh on
Friday. The Governor of Punjab, Mr Shiraj Patil, released the report and
inaugurated the conference. Stressing
on the need for a proper roadmap for the growth of urban centres in the
country Dr A Didar Singh, Secretary General, FICCI, said: “Punjab is a
frontrunner in urbanisation and is one of the most urbanised states in the
country with 37.5 per cent of its population living in the urban areas. But
all stakeholders have to ensure that this urbanisation is carried out in the
correct manner.” He said a new wave of urbanisation was expected in the
region due to the announcement of major infrastructure projects and industrial
corridors and it offered a major opportunity for business as well as for the
real estate sector. Growth in the real estate sector also means growth of over
250 ancilliary industries related to it. Taking part in the panel
discussion on Changing Shape of North India through Urban Development —
Focus Punjab, Tri-City and nearby cities. A Venu Prasad, Principal Secretary
Housing and Urban Development, Punjab , pointed out several initiatives taken
by the state government to boost investment in the state. He said the six
towns under GMADA were the focal points of real estate growth in the area
around Chandigarh. Jogy P Thomas, CEO, ATS Infrastructure, while
participating in discussion on “Simplifying approval process to achieve ‘Housing
for All’, sought clarity on policy as well as simplification of the approval
process to achieve the goal of affordable housing in the country. One of
the key sessions of the conference was on Planning Smart and Sustainable
Cities and Transit Oriented Development — Impact of AKIC (Amritsar Kolkata
Industrial Corridor) on Punjab and Tri-City in which the panelists gave
valuable inputs on feasibility and challenges of smart cities. The panel discussion on future of real estate industry in Punjab saw major real estate players from North India sharing their ideas and vision for a vibrant real estate market in Punjab. Strategies for brand building in real estate, enhancing professionalism and transparency in this business, opportunities available in the state and the region and the key concerns of the industry were taken up. Gaurav Karnak, Partner, Ernst & Young LLP, Pradeep Puri, Chairman,FICCI Urban Development Committee & METCO Project, Ms Vinita Juneja, Senior VP, Design Management, IREO, B.S. Bhalla, Chairman, Chandigarh Housing Board, and Rajesh Goel, CMD, Hindustan Prefab Limited were among the key speakers at the conference.
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ncr real estate: ghaziabad
Ghaziabad caters primarily to the mid-segment and affordable housing segments. It is home to established housing clusters such as Kaushambi, Vaishali and Indirapuram while upcoming residential corridors include Raj Nagar Extension and developments along the NH-24 beyond Indirapuram, including the Crossings Republic township.
While lack of land options has restricted new launches in the Kaushambi, Vaishali and Indirapuram clusters, these being already developed to a great extent and with a large existing residential population, these residential clusters have also recorded healthy capital appreciation. Recent project launches have been mostly in the upper-mid and premium segments offering luxury specifications and upgrades from the usual, mid-segment housing options. Prices in the Kaushambi and Vaishali areas are in the range of
Rs 5,500 - 6,500 per sq ft while in Indirapuram prices are in the Rs
4,800-5,500 per sq ft price range. The affordable residential clusters are in the average price range of
Rs 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are completed or close to completion in Crossings Republic, while the newer projects in NH-24 are in the lower price band of
Rs 2,200-2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is also priced in the
Rs 2,600-3,000 per sq ft range. All these clusters have contributed the maximum to new project launches that have been recorded in the Ghaziabad residential market over the past few quarters. While Raj Nagar Extension may be seeing project launches by first-time or lesser known developers, the likes of Assotech, Ansal API, SARE, Ashiana Group and Wave Group have come up with projects on NH-24, which includes Crossings Republic as well. With prices in the Noida Extension precinct in the Noida sub-market expected to be higher, Ghaziabad will continue to garner interest, particularly for affordable projects in Crossings Republic, Raj Nagar Extension and on the NH-24. The Ghaziabad sub-market also enjoys a large population base from the industrial sector and SMEs, and low-income workers looking to upgrade to better accommodation. In the near future, the better areas within Ghaziabad, such as Indirapuram and Vaishali, should continue to hold their ground while the lower-income profile areas of Sahibabad, Raj Nagar Extension and further developments coming up on NH-24 and GT Road will account for majority of sales volumes. Going forward, infrastructural developments such as the extension of the Metro route to Ghaziabad and widening of the NH-24 to six lanes is likely to aid in furthering residential developments in this area. The core demand is likely to emanate from the low and middle-income population for the residential offerings in this corridor.
— The writer is Associate Director - Research & REIS, JLL India
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Housing prices fall during April-June in Delhi-NCR The average housing price in
Delhi-NCR has declined marginally by 2 per cent during April-June compared
with the year-ago period due to slowdown in property market, according to a
report by realty portal 99acres.
In its latest residential report for the second quarter of 2014 calendar year, the company said the real estate market is reeling under a demand slowdown due to high borrowing cost and lower GDP growth. “The
real estate landscape in the NCR region in the past quarter has seen stability
with prices per sq ft going down by 1 per cent in Q2-2014 (April-June) as
compared over Q1 (Jan-March, 2014). The annual comparison shows a decline of 2
per cent in April-June 2014 over April-June 2013,” 99 acres said in a
statement. In Delhi, housing prices in areas like Defence Colony and Sheikh
Sarai fell by 20 per cent and 18 per cent, respectively during April-June
period compared with previous quarter. “Localities like Greater Kailash I
and Vasant Vihar have also seen a decline of 11 per cent and 10 per cent in
Q2-2014 over Q1-2014,” the report said. On the other hand, key localities
in Delhi like Shahadra, Mehrauli and Chattarpur saw an increase of 14 per
cent, 13 per cent and 8 per cent, respectively, in Q2-2014 over Q1-2014. Other
areas like Mayur Vihar-I and Mayur Vihar II have seen an increase of 6 per
cent and 5 per cent respectively, in the same period. The quarter-on-quarter
analysis shows that areas like East of Kailash, Lajpat Nagar, Saket have also
seen a rise of 4 per cent, 3 per cent and 2 per cent, respectively, in housing
prices. Similar trends were seen in the other parts of the NCR like Gurgaon,
Noida, Greater Noida, Faridabad and Ghaziabad with some localities witnessing
an increase in prices while some areas showing a decline in rates. — PTI
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Connecting corridors
If anyone would like to see how there is a strong co-relation between infrastructure development, real estate opportunities and revival of the economy, there can be no better example than the industrial corridors which in the global context have a proven track record of igniting the economic activity. In the Indian context, it has all the more relevance since these corridors promise to take development beyond the metro cities by connecting through tier-II and III cities. The shift of focus from in and around the CBDs (Central Business Districts) and providing a level playing field to the SMEs (Small & Medium Enterprises) through seamless connectivity and transportation is what makes the prospects of industrial corridors very attractive.
There are four prominent industrial corridors that promise to change India's urban landscape, bring economic opportunities and prosperity and take commercial developments to a new level. First, and the most talked about is the Delhi-Mumbai Industrial Corridor (DMIC), second is Chennai-Bengaluru Industrial Corridor (CBIC), third is Bengaluru-Mumbai Economic Corridor (BMEC) and the fourth important growth corridor is Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC). In addition to these four key corridors, the proposed East Coast Economic Corridor, linking Kolkata to Chennai, is also being eagerly awaited by the real estate developers to open more floodgates of economic opportunities. The industrial corridors promise to attract more FDI, bring world class technology, improve economies of scale, ensure better connectivity, lead to low logistics cost and low inventory, manage supply chain integration, give cost advantage, attract skilled manpower with optimum cost, enhance export competitiveness and are meant to provide two important inputs for competitiveness: lower distribution costs and high-quality real estate. From the standpoint of North India, facts speak for themselves. The competitive advantage of DMIC suggests 45 per cent of country's registered factories (129,704), catering to an employment of 3.36 million jobs, are located in DMIC states. About 1.234 million registered small scale industries, constituting 46 per cent of overall country, are located in DMIC states. In terms of Gross Industrial Output and export trends, DMIC states together constitute 56 per cent of country's industrial output (Rs 12,874 billion) and 62 per cent of country's total exports (Rs 4564 billion). Similarly, the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC) that connects Ludhiana (Punjab) to Dankuni (West Bengal) covering Punjab, Haryana, Delhi, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal promises to create world class infrastructure. In a band of 150-200 km on either side of EDFC, in the first phase every state to promote at least one cluster of about 10 km area to be called Integrated Manufacturing Cluster (IMC), in which 40 per cent area would be earmarked permanently for manufacturing and processing activities. It will also leverage the Inland Waterway System being developed along National Waterway 1. What about the real estate opportunities? Sanjey Roy, DLF Spokesperson addresses a wider concern to say the industrial corridors will not only lead to even growth along the connecting cities, these will also create new real estate opportunities and lead to economic turnaround of these cities. He believes the industrial corridors will help build the smart cities along the way at par with international cities. It will develop infrastructure in many connecting cities of the major city as the development of such a corridor will require townships and commercial establishments to be built along the corridor. Thus, there will be an increased trading activity between these cities, and this will help generate demand for commercial and residential real estate projects in the corridor. "Of course, the industrial corridors will ignite the already proposed smart cities as the extension of the main city that connects with these corridors. The way manufacturing hubs has been planned with these industrial corridors I have absolutely no doubt that there will be a new lease of life to the real estate segment across the connecting cities and the adjoining tier II and III cities as well. This will have the chain effect on the economy of the region as well. Already we have seen such a model working so very well in Gurgaon," says Roy. Rahul Gaur, CMD of Brys Group says he is more concerned about the DMIC as it will set the tone for other proposed corridors. According to him, the DMIC also assumes more significance because it is connecting to two major business centres of Delhi and Mumbai. Besides reviving the real estate sector in these cities, industrial corridors will also provide a boost to the overall economy of all the connecting cities. "Across the value chain opportunities lie for power, transportation, equipment, internal infrastructure and ICT. Of course, real estate opportunities are ingrained in the project itself. I have always believed that the idea should be to ignite the economic activity which will take care of the demand side of market restraint. And it is here that industrial corridors are promising to be the game changer," says Gaur. Rattan Hawelia, Chairman of Hawelia Group makes it a point that real estate opportunities should not be seen in isolation but the focus should be to make sure that investment flows to the market, which is on the cards along the stretch of industrial corridors. According to him, the development of these cities will tend to have a chain effect to the natural growth of the city and the real estate will be the beneficiary. "We are all aware of the lost ground in our urbanisation and the opportunities that lie with the proposed industrial corridors. I feel it will not only provide a boost to real estate but it will also take other areas of real estate like residential, retail and hospitality into a fast forward mode. Experience across the world suggests that such large scale developments always affect the demand for property. These corridors have the potential to transform the market dynamics," says Hawelia. Industrial corridors are hence anticipated to be a milestone in India's tryst with inevitable urbanisation. There is no denying that its success will address many of the real estate and infrastructure concerns that make India's urban management very complex. Development of many smart cities along the stretch of these industrial corridors is hence a foregone conclusion.
— The writer is Analyst at Track2Realty
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realty bites Private equity investment in real estate sector jumped over two-fold to Rs 4,100 crore in the first six months of 2014 and is likely to cross Rs 12,000 crore by end of the year. According to a report by property consultant Cushman & Wakefield, the PE investment in the sector was Rs 6,450 crore in 2013.
The consultant noted that there is an increase in interest globally in committing funds for Indian real estate through private equity. The funds are being raised mainly for housing projects and leased office purchases. "Private Equity (PE) investment in real estate in India is likely to exceed Rs 12,000 crore (about $2 billion) by the end of 2014," C&W said. The first six months witnessed PE investments in realty sector of about Rs 4,100 crore, and the consultant expects it to be about Rs 7,900 crore in the second half. "The total investment in first half of 2014 was more than double the investment in the first half of 2013 at Rs 1,650 crore. This is also the highest levels of investments in the first half of the year since H1 2009," C&W said. Of the total PE inflows in the first half, housing segment accounted for nearly 60 per cent at Rs 2,357 crore. Office assets contributed Rs 1,435 crore and retail Rs 300 crore. "In the residential asset class, private equity funds are now being viewed favourably by developers as PE money is being used for de-risking projects and as strategic long term partnerships for further expansion and development," C&W said. Total number of deals in the first half of 2014 increased to 28 compared to 13 in the year-ago period. Average deal size increased by 16 per cent to Rs 146 crore. Bengaluru witnessed the highest levels of transaction activity in the first half with investments of Rs 2,005 crore, a sharp increase from Rs 103 crore in the year-ago period. Mumbai received a PE investment of Rs 1,140 crore, while transaction volumes in NCR and Pune were recorded at Rs 580 crore and Rs 167 crore, respectively, during H1 2014. C&W Executive Managing Director South Asia Sanjay Dutt said: ""There is high liquidity being committed from both domestic and offshore investors,". — PTI Brigade-GIC form realty JV Realty firm Brigade Enterprises Ltd has entered into a joint venture with Singapore's sovereign wealth fund GIC to invest up to Rs 1,500 crore for developing housing and mixed-use projects in South India. "Brigade Group and GIC through its affiliate company have entered into a Memorandum of Understanding on September 1, 2014 to jointly invest up to Rs 1,500 crore in residential and mixed-use developments in select cities of South India," the Bangalore-based realty firm said in a filing to the BSE. The JV aims at acquiring land for projects in cities primarily where the demand for high-quality residential units is high, it added. Brigade Group CMD MR Jaishankar said the JV would provide a platform to acquire and execute a series of similar projects in South India and further strengthen the partnerships, he added. "As a long-term value investor, GIC is believer in India's growth potential. We seek partners who share our philosophy and values and have a reputable track record in the markets in which they operate. We are therefore pleased with the opportunity to partner Brigade in this joint venture," said Lee Kok Sun, MD and Co-head, Asia, GIC Real Estate. Brigade has completed over 100 buildings comprising development of over 20 million sq ft and it is targeting to complete 30 million sq ft in the next five years. GIC is among the world's largest fund management companies. It was established in 1981 to manage Singapore's foreign reserves. According to property consultant Cushman & Wakefiled, many sovereign and pension funds are committing funds to Indian real estate, like All Pensions Group, Abu Dhabi Investment Authority, Qatar Investment Authority, Canada Pension Plan Investment Board, State General Reserve Fund of Oman and GIC of Singapore, through fund managers. — PTI
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home trends U-value While determining the energy efficiency of a window a value that should be understood is the ability to resist the flow of heat measured in terms of “U-Value”. These values are the numerical inverse of R-Values (which are used as an industry standard for rating of insulation). Higher the R-Value, more the energy efficiency of the window. Plain ordinary glass has an R-Value of 1 while a window assembly with an exceptional energy efficiency has a U-Value of 0.07 (R=14) equivalent to that of a wall. Design makes a difference Designing and placement of windows can also influence the energy gain to a significant extent. Therefore, making the right decisions for them ultimately is vital to create a sustainable building. Energy efficiency of a window is the overall effect of radiant heat gain, heat transfer through conduction or convection and air leakage. Better frames Another thing to be considered while choosing windows for energy efficiency is the frame material. Frames constitute almost one-third of the overall bulk of a window. So you can very well understand their role in the insulation, longevity and strength of a window. The material that you’ll use for frames, determines the heat that would be transmitted by conduction through it. More heat a material absorbs, more it will radiate. If it is a bad conductor of heat, it is good for the window, because it would allow the least possible heat transmission. Wood is considered the worst conductor of heat, but has a drawback. Moist wood is prone to decay. However, by applying suitable coatings, this shortcoming can be overcome easily, thereby leading to a longer life of your window frame. Thermal
bridging Before studying frames is their U-value, and the phenomenon known as thermal bridging. It is a fundamental law of nature that heat always travels from high concentration to low concentration. And if there’s a good conductor of heat present between these two areas of varying concentration, it acts as a “bridge”. It allows for better transfer of heat. This phenomenon is known as thermal bridging. While achieving energy efficiency, we have to stop this bridging to the maximum possible extent, using materials in the form of insulators. Spacers Spacer is a hollow strip of material located between the two window panes of a doubly glazed window. They maintain a uniform barrier between the two panels of the glass in a window. Till now, aluminium was being used as a spacer material. As this material is a very good conductor of heat hence, it absorbs and transmits heat readily, making it a poor choice for an energy efficient window. For reduced heat gains and losses, hybrid materials incorporating both metal and non-metals are used for making spacers. In comparison to aluminium, very less heat is conducted through these materials. Insulation No matter how well you’ve got all the best and energy efficient materials in place for you window, it really can’t achieve the ultimate goal of energy efficiency without incorporating insulation and sealants. Tiny gaps in window frames and the overall assembly allows for heat to infiltrate in and out of it. So, when it’s hot outside your house and you’ve put your ACs on, the outside heat will seep through these gaps into your room, thereby reducing the efficiency of AC. Similarly, if it’s warm inside and the outdoor environment is cold during winters, heat energy will flow from inside to outside. Sealants are available in the form of foams which are sprayed along the gaps of window frames. However, due care should be taken during the installation of windows. If even a tiniest of gaps is left due to poor installation practices, all your efforts to achieve energy efficiency would come to a naught. This is precisely the role of sealants. They “seal” these gaps, putting a full stop to infiltration. The types of windows listed above hold crucial importance in terms of energy reduction in buildings. Aerogel though expensive today, holds the maximum potential in the fenestration industry to achieve energy efficiency. Who knows, maybe even better revolutionary technology than aerogels is in development that can change the face of energy efficiency in the field of fenestration forever. — The writer is Assistant Professor in Apeejay School of Architecture and Planning
New technologies
Some of the technologies for the construction of windows are:
Single clear glazing This conventional glazing has been in use for years. It permits the maximum transfer of heat. Wind may be stopped by it from entering the building but it is not energy efficient at all. If such windows are being used in your building and you want to have energy efficient rooms, then use the windows that you're going to read about next. Double clear glazing This glazing provides thermal insulation. It has two glass panes fixed at a little distance apart, creating an air cavity in between. This air cavity acts as a barrier between the panes, thus reducing heat transfer through conduction (see illustration). These windows have an insulation rating of R-2 (U=0.5) at the centre of the space between the two panes of glass. Low-E glazing Low-E glass incorporates a coating that minimises the heat that is re-radiated. This coating, known as “spectrally selective glazing”, was invented in the late 1970s. It is transparent, as the name suggests for “selective” wavelengths of light. Whereas it behaves like a mirror for solar radiation having near infrared wavelength, reflecting it back to the exterior region. This type of radiation otherwise increases unwanted heat gain while allowing daylight transmission. This glass has an advantage over other tinted and solar reflective glazing, as it provides a higher level of visible light for a specific amount of solar radiation. Having a clear appearance and decent thermal properties, this low-e coated glass is suitable for both single and double glazing. In the latter, glass on the outer side has a low-e coating. Gas-filled windows Double clear glazing that come with an air cavity are definitely a lot better than a window having just a single pane of glass, but there’s a catch. The air that is present in the former type creates a convective loop of hot and cool air revolving which lowers the efficiency of the window. Light air on the hot side of the window moves up, while on the cold side, air moves down because it’s heavier. This results in a thermal conveyor belt sort of thing which helps seep heat in or out of the room. However, there’s a solution for this. Inert gases like argon or krypton which are heavier than air have lower potential to create such convective loops. Hence, their insulating values are much higher. So, windows having these gases as a filling between the glass panes are much more energy efficient. Vacuum-glazed super glass High-insulation vacuum glass has been developed by researchers at Guardian Industries with a phenomenal R12-R13 insulation rating. Usually R12 rating is for a typical insulated brick and plaster walls. Glass typically has an R1 or R2 rating. This is a glass that provides as much insulation as a thick insulated wall. This glass has a 0.25mm space between two panes of glass that are vacuum sealed. This vacuum performs the magic of mitigating the heat transfer. There is no matter, no gas, no air which can move up or down in this vacuum, or transfer heat. Aerogels
Aerogel has an edge over all the other materials because of its phenomenally low density and thermal conductivity. It is translucent and looks like a “solid smoke” — a nickname which it has earned because of its properties. It is also sometimes called “frozen smoke”, “solid air” and “blue smoke”. This material was developed by NASA for aerospace purposes. |
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Stylish surfaces
Jagvir Goyal Wall tiles Wall tiles are increasingly being preferred by people due to the durability factor. These hardly undergo any wear and tear, don't accumulate dirt and can be cleaned easily. One of the most attractive traits of wall tiles is that these make a surface ready-to-use almost immediately. This has made these a favourite flooring and cladding building element. Areas where wall tiles can be used Ceramic tiles that are used most commonly on wall surfaces and these include varieties such as porcelain tiles, glazed tiles, unglazed tiles, matt finish tiles and anti-skid tiles. Basically, all these are ceramic tiles. These tiles are divided into four groups called, Group II, III, IV and V. There is no Group I. The simple point to be kept in mind is that the higher the group the stronger the tiles are. Tiles belonging to higher groups also cost more. For walls in the houses, Group III tiles are suitable and should, thus be preferred. Glazed tiles are coated with a liquid glass and this glazing of tiles helps in providing colour and design of the tiles. Tile glazing is done by two ways. In one method, first, the clay biscuit is burnt and then again, with the glaze applied on the biscuit. In second method, glaze is applied in first instance and tiles are burnt only once. One should prefer tiles produced under single burning method. Size & colour The size of wall tiles ranges from 3 ftx 1 ft to 8 inch x 12 inch. Prefer 24 inch x 12 inch or 18 inch x 12 inch sizes. These sizes are less costly than 36 inch x 12 inch size and look beautiful on walls. Masons prefer bigger sizes as job is easier for them. Imagine covering a wall with 36 inch x 12 inch tiles vs 4 inch x 4 inch tiles. Countless designs and colours are available in tiles these days. The buyer should look for pastel colours and the designs should prove soothing to the eyes. The sanitaryware available in the market is now of white or ivory colour only. Tiles colour should make a good combination with sanitary ware. Look for beveled edged tiles. For walls, these should be joint free type. Wall tiles with joints look odd. Face-work tiles House owners prefer to provide various types of tiles on the facade of their house. These tiles can either be burnt clay tiles or ceramic tiles. Stone tiles are the third choice. Though every house owner has his own taste and preferences, the burnt clay tiles look most beautiful and are mostly in use. Ceramic tiles come next. Burnt tiles give a natural look to the walls. Their thermal insulation property is an additional advantage. Burnt clay face work tiles should have zero efflorescence property and their water absorption should be very low. The tiles should be very well burnt. Good burning lends high compressive strength to them which results in producing a sharp and loud ringing sound on their striking together. Only a reputed manufacturer having more demand than production will ensure good burning of tiles. So look for a reputed manufacturer only. Burnt tiles often develop slight curvature due to shrinkage of clay during burning. Such tiles cause problems when used in face-work and should be rejected or discarded. Look for 20 mm thick tiles, having unbroken fine edges and corners. Ceramic tiles used in face-work should belong to Group IV category as these tiles need to be stronger than inner wall tiles as these are subject to weathering and rough use. Moreover, unlike inner wall tiles, these tiles should be in matt finish instead of the glossy one. Tiles should be perfectly straight along their length and breadth and no curvature should be there. Size & colour Burnt clay tiles for face-work are produced in different sizes and shapes. However, well recognised size of 230 mm length x 40 mm width x 20 mm thickness (9 inch x 1 ½ inch x ¾ inch) should be chosen. Smaller sizes look more beautiful but are costlier. If cost is no criteria, then 150 mm x 25 mm x 20 mm size (6 inch x 1 inch x ¾ inch) can be chosen. Among the colours, terracotta, brown antique, red colour, chocolate brown and antique red are mainly used. Terracotta red and chocolate brown are the most preferred colours. Don't argue with the manufacturer if there is a little color variation in burnt clay tiles. This variation rather provides a natural look to the tiles. Most of the ceramic tiles produced for face-work have their sizes varying from 3 feet x 1 feet to 1.5 feet X 1 feet. More sizes are available but are not commonly used. Finish wise, wood and stone finish tiles are most preferred. Wood finish tiles give an impression of use of wood in the front elevation. Tiles being cheaper than wood, are cost effective. Dark as well as light, matt finish tiles in oak finish are most preferred these days. Kota stone
This column is published fortnightly
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launch pad
Presidency Infraheights Pvt. Ltd. recently announced the launch of its first flagship 100 per cent FDI-funded project ‘Presidency Heights’, in Sector 25, Yamuna Expressway. The group is committed to make sectoral investment of Rs 2,000 crore in the region. The project will be spread over 5.5 acres (approx). It will have 629 units with per unit sizes ranging from 1270 sq ft for 2 BHK, 1405 sq ft for 2 BHK with study, 1615 sq ft for 3 BHK and 1850 sq ft for 3 BHK with servant room. The entire project shall be delivered in less than 48 months. THE project has been designed by India’s topmost architect, Hafeez Contractor and the landscaping has been done by Integral Designs. Gulshan Bellina in Greater Noida NCR-based realty player Gulshan Homz launched ‘GulshanBellina’ in Greater Noida West recently. The new project will have 2&3 BHK apartments in five different sizes viz. 1020, 1105, 1325, 1495 and 1745 sq ft. The launch price being offered by the company is Rs 3360 per sq. ft. onwards. The project will be spread across a total area of 7.5 acres and will include 13 towers with 19 floors in each. The company has planned to construct a total of 1108 units with 4 – 6 (on specific blocks) flats on each floor. Possessions will be offered after 36 months.
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Does an NRI need to pay capital gain tax?
S. C. Vasudeva email your queries to realestate@tribunemail.com
A. You would be liable to pay tax on capital gain arising on the sale of property in India in case full amount of consideration exceeds the indexed cost of the property. Indexation of the cost of the property is permissible if the same was held for a period of more than three years. The amount of capital gain arising on such transaction would be treated as a long-term capital gain and would be taxable at a lower rate of 20 per cent plus education cess of 3 per cent thereon. In case the property was held for less than three years the amount of capital gain arising on the sale thereof would be treated as a short-term capital gain and would be taxed on the slab rate applicable to the total income of an assessee. Carrying forward loss from house income
A. According to the provisions of Section 71B of the Income-Tax Act 1961 (the Act), if the assessee incurs any loss under the head "income from house property" and such loss is not fully adjusted under any other head of income in the same assessment year, then the balance loss is allowed to be carried forward and set off in subsequent years (subject to a limit of eight assessment years) against the income from house property. On the basis of the above provisions of the Act, you would be entitled to set off the above loss of Rs 20,000 against income from house property for the year ended March 31, 2015. Do I need to pay tax on insurance claim money?
A.
In Vania Silk Mills Private Limited vs. CIT, the Supreme Court had held that insurance claim received on account of destruction of asset is not chargeable to tax as the destruction does not amount to a transfer. The judgment has been nullified to some extent by introduction of a new sub section (1A) to section 45 of the Act w.e.f. assessment year 2000-01. According to the said sub section where a person receives during the previous year, any money or other assets under an insurance from an insurer and the compensation has been received because of damage or destruction of any capital asset and such damage and destruction is as a result of following categories of circumstances:
then, any profit or gain arising from the receipt of such money shall be chargeable to income tax under the head "capital gain". The amount received from the insurance company shall be the deemed be full value of consideration received or accruing as a result of the transfer of the such capital asset. Accordingly, in your case the amount received from the insurance company on account of destruction of factory building and the machinery will be treated as full value of consideration accruing as a result of the transfer of such capital assets. The amount received in excess of the written down value of such capital assets would be taxable as a short- term capital gain in view of the provisions of Section 50 of the Act. Stay away from underhand deals My query is how can the seller put to use legally or transfer abroad the balance
Rs60 lakh, after paying any applicable taxes, received by him in hard cash which is not shown in the registry or will this amount have to be used only in hard cash of the record transactions? —
C.L. Sehgal A.
Reply to V.K Sharma's query was based on the presumption that the consideration received by the seller was the same as specified in sale deed. In case the actual consideration is say
Rs 1 crore, sale deed reflects only Rs 40 lakh and the seller declares the consideration at
Rs 1 crore for the purposes of computation of capital gain and pays tax accordingly, the seller may have to prove that the actual consideration received by him is
Rs 1 crore as the buyer may not agree to the figure of Rs 1 crore on account of non-availability of disclosed funds with him to the extent of
Rs 60,00,000. The buyer can also be held responsible for not deducting tax at source as the consideration declared by seller would be more than
Rs50 lakh thus attracting the newly enacted provisions requiring deduction of tax at source on the sale consideration. The buyer would, therefore, never accept that the actual consideration was
Rs 1 crore. The situation envisaged in the query is bound to lead to a litigation. If the transaction takes place on the lines suggested in the query, it may not be possible to remit the on-money of
Rs60 lakh through official channels. My sincere advice to tax payers would be to declare the correct amount of consideration in the sale deed so as to be within the provisions of law.
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phdcci organises real Estate Summit The major component of Smart City, according to Shankar would be Smart Infrastructure - providing roads, pedestrian pathways, public toilets, water & sewer networks, street lightning networks, signal systems, gas supply systems, solid waste management systems, drainage network, safety and security devices. Chairman & Managing Director, HUDCO Dr. M Ravi Kanth in his presentation called for reduced rates of interest for housing activities and setting up of smart cities so that these came up within the stipulated time period. He, however, cautioned that credit exposure should be restricted to those entrepreneurs who wilfully turn defaulter and discourage the financial institutions to narrow their exposure for real estate activities for fear of increasing their non-performing assets. In his welcome remarks Senior Vice-President of PHD Chamber Alok B Shriram urged the government to reduce the cost of borrowing for the housing sector, explaining that this can be achieved by providing interest subvention for low income borrowers. "Housing faces a disproportionate incidence of taxes amounting to more than 35 per cent of the cost of a completed unit. This can be partially alleviated by giving tax treatment of SEZs to affordable housing projects and providing benefits under Section 35 AD to the real estate sector", he said. Among others who participated on the occasion included Chairman & Co-Chairman of the Housing & Urban Development Committee of PHD Chamber Rajeev Talwar & Manish
Agarwal.
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loan zone Irrespective of the loan amount, all three lenders are now offering interest rates at 10.15 per cent to home loan borrowers. Previously, SBI’s interest rates stood at 10.15 per cent on loans up to
Rs 75 lakh and 10.30 per cent on those above Rs 75 lakh. For women borrowers, home loans will be offered at 10.10 per cent across all loan amounts. SBI, PNB and ICICI Bank’s base rate or minimum lending rate is 10 per cent. As part of their festival offers, ICICI Bank and HDFC had an offer valid till August 31. For salaried individuals, ICICI Bank will charge 10.15 per cent up to
Rs 5 crore, while the rate would be slightly higher, at 10.35 per cent, for self-employed individuals, if the loan amount exceeds
Rs 75 lakh. More banks are likely to cut further home loan rate to attract new customers. The discount of five basis points that the bank offered to women has been retained. To avail of this scheme, a woman has to be the sole applicant or the first of the co-applicants; and the sole or the first of the co-owners of a property. India’s largest private-sector lender, ICICI Bank, too, has lifted the different interest rate slabs on its home loans. The bank recently started offering loans of up to
Rs 5 crore to salaried individuals on a flat interest rate of 10.15 per cent. Earlier, under a special scheme started in May this year, the lender had reduced the rates by up to 10 basis points (bps) on home loans of up to
Rs 75 lakh. Under this scheme, the interest rate charged was 10.15 per cent, or 15 bps over the base rate for salaried individual. For the same amount, self-employed individuals were being charged 10.25 per cent. For loans above
Rs 75 lakh, the bank was charging interest at the rate of 10.50-11.25 per cent. Punjab National Bank, the third top bank to have slashed its rate, is now offering home loans of up to
Rs 2 crore at 10.25 per cent. For those above Rs 2 crore, customers are to be charged 10.50 per cent. Earlier, the bank charged 10.25 per cent interest for loans of up to
Rs 75 lakh and 10.50 per cent for the loans above that amount. Competitors like home financing firm HDFC charges between 10.15 per cent and 10.65 per cent for salaried and self-employed professionals. These rates, charged irrespective of the loan amount, were offered under a monsoon bonanza scheme and were to end on August 31. But now, the same rates are likely to be converted into a festival-season offer. With a view to increase market share in loans of higher amounts SBI sees a huge market for such borrowings in large cities. At present, SBI leads the market in the
sub-Rs 30 lakh loan category,
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Increasing urban population, growth of industry and clearance for major infrastructure projects like the Amritsar-Kolkata Industrial Corridor have upped the real estate potential of Punjab and the Chandigarh tri-city region significantly.
In his inaugural address the Governor lauded the role played by industrial bodies like FICCI in creating a conducive environment for economic growth and for providing a direction to policy-makers in this regard. He said that the country was witnessing rapid urbanisation, but urbanisation without proper vision and futuristic approach would only create problems for individuals as well for society in the long run. Cooperative understanding at government, local bodies, developers as well as at individual level will be required to ensure urbanisation that would signify growth and development in the true sense. He also laid stress on the importance of research and innovation and use of new technologies in dealing with the challenge of housing shortage.
Windows are one of the most important components of a building. These allow light and air to move in and out of the building. They provide daylighting and ventilation. The last 50 years have seen radical changes in windows designs. There has been continuous betterment in thermal insulation performance integrated with innovative methods of regulating solar heat and light transmission. Today, high-performance windows incorporating features like improved frame materials, multiple panes, gas filling and insulation, have been developed which can drastically decrease energy consumption thereby cutting the heating and cooling costs of a building considerably. Such windows also provide acoustic insulation.
The number of items and materials used in construction of a house are much more than those used in the construction of bigger magnitude and making the right choice can be a Herculean task for a person building his home. Here is how you can select in an informed manner:
There are certain areas where wall tiles are now being used extensively. Washroom walls are today essentially provided with tiles only. In addition, the wall area above the counter top and below the cabinets in the kitchen is provided with tiles only. In chimney area, the tiles are provided up to the chimney level. The front and back courtyards normally have the provision of faucets. Wall tiles are provided on the wall portion around these faucets to save the walls from dampness.
Kota stone is a fine grained, cheap variety of stone available from Kota in Rajasthan that is used commonly in pathways, driveways, corridors of buildings and sometimes in the staircases of the buildings. Kota stone is bluish, grayish, brown, green and red in colour. Look for greenish or grayish colour Kota stone. It is available in sizes varying from 2 ft x 3 ft to 1 ft x 1 ft. Choose Kota stone tiles of 2 ft x 2 ft size. As for the thickness for floors and driveways, choose a thickness not less than 32 mm. For stairs and walls choose a thickness of 20 mm. In driveways and landscaped areas, choose rough finished Kota. Polished Kota stone tiles can be used in other areas as well. Always check that the Kota stone tiles are cut at right angle. Mostly, these tiles are not cut to true right angles. Set them right at site by making a tile size mould on the ground and cutting each tile to size.
NCR-based SS Group recently launched its open market retail and commercial project ‘SS Omnia’ in SS city, Sector 86, Gurgaon. It will be a multi-use commercial complex spread over 3 acres and will have 13-storeys. The ground, first, and second floors at this project are exclusively reserved for creating high street retail experience. The third and fourth floors will be reserved for corporate offices. From 5th to 13th floor, the project offers opulent studio apartments, which aims to promote the 'walk to work culture'. The project is designed by world renowned architects - ARCOP. The Studio apartments in the project are prices at
Rs
6400 per sq ft (basic), retail office at Rs. 7040 per sq ft (basic) onwards and office space at
Rs
5500 per sq ft (basic). The project is expected to be delivered in three years.
Q.
I am selling a property in India that I had bought when I was a resident Indian. Now I am an NRI. Please let me know if I am eligible for capital gain tax. —
Sumeet
Q.
I have constructed a house during the year and let out the same. The amount of rent received is less than the amount of interest payable to a bank in respect of the amount borrowed for construction of the house. The approximate amount of such excess of interest over the income from house property would be
Rs
1,00,000. My other income from interest etc. would be approximately
Rs
80,000 for the year ended March 31, 2014. If I am able to adjust such a loss against my other income, is it possible to carry forward the balance amount of
Rs 20,000 to the next year for adjustment against my income for the year ended March 2015. —
Sain Das
Q.
I am carrying on the business of manufacturing plastic goods of daily use like mugs, baby tubs and the like. The factory building and the machinery was completely destroyed by a fire which broke out on account of an electrical short circuit. Fortunately, I had taken a fire policy and the claim is being processed. I am likely to receive the claim amount which may not cover the entire loss but I would be able to start with the re-establishing of my business. Is the amount received from insurance company with regard to the destruction of these assets exigible to capital gain tax? I am advised that there has been some change in law, which brings such an amount to taxability. —
Ranjit
Q. In your reply to V.K Sharma's query, "How can I transfer sale proceeds to Australia?" (dated: August 23), you had rightly stated that the RBI allows sale proceeds of one's house less taxes to be transferred abroad. But there is a catch. Sale deeds are generally registered for a lesser amount than the actual sale amount. For example, if a house is sold for Rs 1 crore, the registry may be only for ~40 lakh or so and the seller receives the balance
Rs 60 lakh in hard cash. This is an illegal practice but widely in vogue. Thus only
Rs 40 lakh is the white money which one can utilise in India or send abroad after payment of capital gain tax.
Q.
I booked a flat with a builder on December 8, 2012 by paying an advance of
Rs 5 lakh. The allotment of flat was confirmed on January 30, 2013 on payment of another
Rs 6,18,760. The total sale value of flat was Rs 55, 93,800 and the balance was to be paid in 15 bimonthly installments. I transferred the right (following the builder's procedure) to another person in June 2014 at the original price. By this time I had paid the builder
Rs 34, 45,784, which I got back from the new buyer. Under the given situation I got no possession of the flat and no capital gain was involved. Kindly clarify:
A white paper on smart cities was released at the National Real Estate Summit 2014 organised by PHD Chamber of Commerce and Industry in New Delhi earlier this week. Speaking on the occasion Shankar Aggarwal, Secretary, Ministry of Urban Development, said the ministry had begun the exercise for formation of a new policy on Smart Cities and the proposed policy would soon be unveiled with due deliberations will all stakeholders. "The builders and developers for the smart cities would be adequately rewarded with incentives and tax sops since 90 per cent of investments in such cities would pour in from the private sector for which the real estate rules and regulations be drastically pruned to woo their investments in them", said. Shankar adding that the government is likely to repeal the existing red tapes to ensure optimum participation of the private sector.
"The Prime Minister has already asked the Urban Development Ministry to make all possible attempts to drastically remove old and prototype procedures, replacing them with new set of reform oriented approach to develop new real estate as per guidelines of new policy under which creation of 100 smart cities would become practically possible as demanded and required by inhabitants of modern world", said Shankar.
Stiff competition in the home loan segment, the onset of the festive season and lack of suitable lending opportunities has levelled the playing field — the rates charged by all the top lenders are now virtually identical. If you have a home loan which is more than two years old then you can have a re-look and evaluate shifting your home loan, especially if you had taken a home loan from any of the foreign banks.
India’s largest lender, State Bank of India (SBI) recently reduced its rates to offer a uniform interest rate on home loans across all loan amounts, following the lead ICICI Bank and HDFC have also lowered interest rates.