emerging destinations: new gurgaon
New growth frontier
Geetu Vaid

Construction in full swing at alpha g:corp’s project in sector 84

There are 21 districts in the NCR kitty ever since Karnal and Jind were added to it in January this year, but the real estate growth remains largely focused in the established Gurgaon, Noida markets and the micro markets of these two cities. Population migration, proximity to Delhi, better connectivity through road and metro links and the presence of MNCs in the IT, auto and manufacturing sectors have been the major growth drivers here.

As a result the demand for residential as well as commercial and retail space has remained high in spite of the economic slowdown.

Gurgaon now is home to the highest number of professionals per square kilometer in the country and also has the third highest per capita income. As a result the real estate growth in the bursting at the seams 'Millenium City' has now leapfrogged to destinations like New Gurgaon, Golf Course Road Extension, Sohna Road and some areas along Dwarka Expressway. These are also the destinations that one can consider for the "affordable" budget segment as the Golf Course Road and Sohna Road markets have more residential units in the mid to luxury segment.

Going by the number of new projects launched by established developers and the competitive price structure, New Gurgaon has been termed as the most active micromarket of Gurgaon by Industry mavens. According to ICRA the total area under development in the Gurgaon market stood at 66.11 million sq ft as on March 2014 end. Of the total area, about 40.7 per cent was in the New Gurgaon region followed by 31.6 per cent million sq ft in the Golf Course Road Extension region.

Fulcrum of development

The main clusters of development that comprise New Gurgaon are along Dwarka-Gurgaon Expressway including sectors 102-113 and along NH-8 including sectors 76-95. These are the areas where several big ticket developers like DLF, Unitech, Ansal API, Central Park, Tata Housing, Godrej, Raheja Developers, Ramprastha Group, Emaar MGF, BPTP, Antriksh, Chintels India Ltd, Bestech, Supertech, Assotech Ltd, Sobha Developers, ATS, Orris Infrastructure, Puri Constructions, etc have launched projects here. The product inventory includes apartments, condos, luxury villas, plots, office and mall spaces. The residential segment, however, is the most robust here as according to local property consultants New Gurgaon real estate market comprises around 48,000 homes out of which approximately 30,000 houses are under construction currently. Hectic construction activity in sectors 80, 81, 82,85, 90, 92 etc along NH-8 bears testimony to this fact.

Growth drivers

The Gurgaon micro market is witnessing major infrastructure developments like Rapid Metro phase II, KMP Expressway, Dwarka Eexpressway, extension of Metro from Dwarka Sector 21 to New Gurgaon region, etc. All of these are expected to create a positive impact on the overall market scenario. Connectivity will not be major issue as the 150m Northern Peripheral Road (NPR) and the 90m Southern Peripheral Road (SPR) will ensure proximity to the IGI airport and lesser commuting time. "Given the current pace of development, sectors on the Golf Course Extension Road will see habitation in 4-5 years whereas sectors on the Northern Periphery Road (NPR or Dwarka Expressway) would witness the same in the next 7-10 years. Sectors on the NPR, closer to the intersection with NH-8, are developing faster due to lesser delays in infrastructure development owing to fewer litigation- related issues", says Ashish Sarin, Director and CEO, Alpha G:Corp Development Private Limited.

With areas marked for hospital and educational institutes the liveability quotient of the area has got a further fillip. The proposal to develop a second diplomatic enclave in Dwarka will bring in a number of embassies in the vicinit.y. HUDA's permission to developers to construct sector roads has also fast- tracked the development work and the buyers will get a ready road network at the completion of their project.

Growth prospects

As the real estate market in general has shown signs of recovery owing to macro-factors such as the recent change in the government and promise of policy reform and other initiatives, this emerging destination will also benefit from a recovery in the overall market. Predicting a price appreciation in the the near future R. K Arora, CMD Supertech Limited, says, "New Gurgaon is emerging as a new hotspot and a luxury destination because of good infrastructure, attractive pricing and good-quality projects. It has huge potential as prices have appreciated nearly 66 per cent and it is considered to be a high investor market".

"In the past two years, market rates have grown at an average of 35-40 per cent per year. The recent increase in Floor Space Index (FSI) and Infrastructure Development Charges (IDC) by the authorities will unlock more capital for development of civic infrastructure and also highlight the shift toward Transit Oriented Development (TOD) which are positive measures and may help alleviate what is currently a sluggish market", says Sarin.

Projects and plans

The DLF group has its ambitious DLF Garden City project in New Gurgaon in sectors 86, 87, 90, 91 and 92. This gated township is located along a 1000-acre green expanse and has connectivity via the upcoming Dwarka Expressway and Kundli-Manesar-Palwal (KMP) Expressway. Over 3100 apartments are getting ready for possession here. The development will have commercial zones as well as educational institutions. "A host of new projects have been launched by DLF in new Gurgaon in Sectors 81 to 95 along the NH-8 connecting Gurgaon to Manesar. Favoured by both budget home seekers as well as premium home developers, these habitats have seen recent launches in the premium segment in and around DLF Garden City which include The Primus, Regal Gardens, Skycourt and The Ultima. This phenomenon has attracted high net-worth buyers and investors who are looking for capital appreciation opportunities", says Vikram O. Datta, VP- Marketing, DLF, DLF Home Developers Ltd, .

Alpha G:Corp is developing a sequel project in Sector 84 to the award winning GurgaonOne in Sector 22. The structure of project is in the final stages and the development is slated to finish by mid-2016.

The group is also looking to launch another project in the same sector under the affordable housing policy of the Haryana..

The Supertech group has Supertech Hues in Sector 68 located close to NH-8 & Southern Periphery Road (Golf Course Extension Road) and Aravillein Sector 79, just off NH-8, near the intersection of Northern Periphery Road, Southern Periphery Road and NH-8 and a close vicinity of proposed metro line. First phase of Hues, which is a part of 70 acres of integrated development, is being launched with 23 towers and 2092 units offering options of 2 BHK, 2BHK+1study and 3 BHK units ranging from 1180 sq. ft. to 1765 sq. ft. area.

Ansal Housing has Heights project near Dwarka Expressway, NH-8 and Assotech Ltd., ATS and Landcraft groups also have projects on the anvil. Orris Infrastructure has more than 1,200 acres of land in Sectors 82A, 83, 85, 88, 89, 90, and 93.

Vatika India Next is the ambitious 700-acre integrated township project being developed by the Vatika Group in sectors 82 ,83, 84, and 85. The group also has another similar project planned in sectors 88 and 89.

Challenges

The appeal of the area depends largely on the infrastructure projects. But the lack of infrastructure development of certain areas of New Gurgaon, especially on the NPR around the border with Delhi coupled with litigation issues on the Dwarka Expressway and macro-economic factors have dented the investor confidence. These factors are the major areas of concern for the prospective buyers and investors. “Provision of proper infrastructure including connectivity to mainland Gurgaon along with civic infrastructure are serious issues that need to be dealt with to further give confidence to the buyers in the region", says Sarin.

Poor sale volumes pose another major challenge. According to the recent ICRA research the unsold inventory in Gurgaon at 18.82 million sqft with 63 per cent unsold inventory being in the Golf Course Road Extension and New Gurgaon. “The investments in New Gurgaon have been primarily driven by speculation instead of actual user-driven demand. As a result, there is a mismatch between the actual demand and supply which over the time has led to piling up of inventory as highlighted by the recent ICRA report. Developers, reacting to the initial high-volume of sales were forced the launch properties even in the wake of an imminent downturn which further added to unsold inventory”, says Sarin. However, looking at the brighter side this also means that the buyers have that much more choice in this area. As Rohit Inamdar, Senior Vice President, ICRA, says, "Commensurate with the surge in supply in these two regions in the backdrop of slowdown in real estate demand we believe in the near term, improvement in sales velocity will take precedence over new launches”.

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

Q. I along with my husband secured a Rs 10 lakh house-building loan from a bank in the joint account. We are both government employees. My husband repaid Rs 2,00,000 and I repaid Rs  50,000 for the year 2013-14. My query is:

• Are we both eligible for rebate on repaid loan and in what proportion?
• Am I eligible for rebate for Rs  50,000 only or excess from my husband's installments?
• What documents should we submit to our DDOs? — Vandana Gupta

A. A deduction is allowable under Section 80C of the Act to an owner of a residential house in respect of whole of the amount paid in the previous year towards the repayment of amount borrowed for the purpose of purchase or construction of a residential house as does not exceed Rs 1 lakh. This deduction has been raised to Rs 1.50 lakh and is applicable for financial year 2014-15. On the basis of the above provisions of law your queries are replied hereunder:

• Both of you are entitled to claim the deduction allowable under section 80C of the Act as the facts indicate that the house is owned by both of you.
• In my opinion you would be entitled to a deduction of Rs 50,000 only being the amount paid by you towards the repayment of the loan raised for the purchase/construction of a residential house.
• The DDO should be provided with the supportive with regard to the raising of the loan as well as with regard to the payments made towards the repayment of the loan.

When rent is more than the HRA

Q. I am a lecturer in a government-aided college. My HRA is Rs 1600 a month. I live in my father-in-law's house. He has no source of any income and I pay him Rs 3,000 a month towards house rent. Can I get the benefit of Rs  3,000 house rent in income tax, if yes, what proof will be required to be submitted to my employer?

— Shailesh

A.The amount to be excluded from the salary income of an assessee in respect of the house rent allowance is the least of the amounts referred to hereinafter:

the actual amount of such allowance received by the assessee in respect of the relevant period; or

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

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.

As the relevant figures for the amount of salary not having been provided in the query, it is not possible to compute the amount which is to be excluded from your salary income. It may be noted that the salary for the above purposes would include dearness allowance if the terms of employment so provide but would exclude all other allowances and perquisites. It should be possible for you to compute the amount not includible in your salary on the basis of the provisions of the Act given herein above.

Cheating by developer

Q. I am an Overseas Citizen of India (OCI) and have been living in the UK for many years. In 2007 I made various payments totaling approximately Rs 40 lakh to a well known stock market listed developer for a flat in Chandigarh (off-plan purchase on the construction linked payment plan). Seven years on, there is no development or building work to be seen. Since 2010 I have made repeated requests for a refund and went to court as well. I won my case in the State Consumer Disputes Redressal Commission, Chandigarh and also in the National Consumer Disputes Redressal Commission (March 2013) and was awarded a full refund along with interest and compensation. Till date the developer has not paid a penny despite frequent requests to implement the court orders. The directors have also blocked my e-mails. What are the legal options left open to me? Do I file a civil or criminal case against the company/directors? Which court should I start the new case(s) from — the District Court, Punjab and Haryana High Court or should I approach the Supreme Court directly? Please guide me so I can pursue the most relevant course of action.

— Suman Kukreja

A. There is no option left for you except to file a civil case for the refund of the amount paid as well as a criminal case against the company and the Directors for cheating. It would be advisable to go to the Supreme Court directly because the chances of getting the relief are faster. I would, therefore, suggest you to consult an advocate in this regard who would be the competent person to advise you on various aspects of the issues involved in the case.

Time limit for ownership transfer

Q. My father built a house from his own resources in 1980. He expired in 2012 and by virtue of his registered Will, I was to become the sole owner of the said house. I am 60 and have two sons and one daughter. Till date, I have not taken any step to get the intqal, transfer or mutation of the house in question in my name. My queries are:

• Is there any time-limit to get the house transferred in my name?
• Can I write a Will without first securing 'Intqal', transfer or mutation of the house in my name as per registered Will of my father?
• Is income tax or any other fee payable by me if the house is worth about Rs  35 lakh?

— S.M. Arora

A. Reply to your queries is given hereunder:

• There seems to be no time limit for getting the mutation done in respect of an inherited property.
• It will be advisable to get the mutation done before making a Will.
• In case the house is being used by you for your own residence, neither income tax nor wealth tax is payable in respect of such a property. However, in case the same has been let out the rent received from such a property would be taxable under the provisions of the Income-Tax Act 1961.

Mentioning plot acquisition 

Q. I purchased a residential plot in 1989 from PUDA on which I constructed a small portion to avoid its resumption. I sold it in July 2014. My query is:

• At the time of purchase I did not inform the IT Authority. Was it required? If so, what will be the repercussions now?
• Long-term capital gain is kept in my saving account purely for the purchase of purchasing another property within three years from the date of sale. I understand that this LTCG amount is supposed to be deposited in a specific LTCG saving account in an authorised bank. If yes, please specify by what date should this account be opened and what are the conditions of its withdrawal? — Kartar Singh

A. Your queries are replied hereunder:

• The Income Tax return applicable for assessment year 1989-90 or 1990-91 did not contain any column for the purpose of informing the department the fact of the acquisition of a capital asset in the nature of a plot of land. This information was voluntarily given by some of the tax payers in order to avoid any difficulty at a later stage. You have, thus, not committed any default in not informing the department about the acquisition of land at that point of time.
• Yes, the amount of capital gain is required to be deposited in a bank under capital gain scheme account in case the amount of capital gain or part thereof which is not utilised for construction/purchase of a residential house up to the due date of filing the income tax return for the year in which the capital gain had arisen. You can, therefore, deposit the amount of unutilised long-term capital gain under capital gain scheme before July 31, 2015. The amount of capital gain or part thereof so deposited is required to be utilised for the purchase or construction of the residential house within the specified period. The specified period for purchase is within one year before or two years after the date of sale of the residential house and for construction it is within three years after the date of sale of the residential house.

Formalities for a gift deed

Q. I would like to enquire that if a mother wants to present a house or flat to her daughter as a gift, then what all formalities need to be completed? Of the two parties, who will have to pay tax and how much? — Kanta Sharma

A. The mother can gift the house/plot to her daughter. For such purpose, a gift deed will have to be executed and duly registered with the Sub-Registrar. Such a gift deed would attract stamp duty on the basis of market value of the house or flat as the case may be. After the registration of such gift deed, the daughter can take steps for getting the house mutated in her name in the municipal as well as revenue records. No gift tax or income tax is leviable on such a gift.

living with vaastu
De-clutter your home in Navratras
Khushdeep Bansal

If you have started preparing for Navratras and are already in the process of cleaning the house, then do not forget to identify the objects that are redundant and can be discarded. It is quite natural to have a lot of redundant stuff when you have lived in the same place for a long time. It is a basic human instinct to hold onto things and people. We generally have an attachment to most of the things and have memories and emotions attached to them. This very thing has also been discussed elaborately in the ancient science of Vaastu. According to the most logical and modern concept of Vaastu, which is today’s MahaVaastu, we should be careful not to accumulate excess of unwanted objects and should ‘let go’ of the old and useless objects because only the going of the old will make way for the new. It can be new opportunities, money, growth and overall prosperity. Every object in your house emanates vibrations that affect your conscious as well as the subconscious mind. If any object is kept as per Vaastu principles — (that is, it is in sync with the attributes of the 16 Vaastu zones in your home as well as the Panchtattva or the five basic elements, such as: water, air, fire, earth and space), then the vibrations emitted by the object on your life are positive. However, if the same object comes in conflict with the zonal energies and the Panchtattva, then it brings in negativity in your life. The same is the case with clutter.

A cluttered or unkempt north-east zone in your house can produce vibrations that directly influence the mind of all individuals living in that house in a negative manner. In Vaastu Shastra, the north-east is considered to be the zone of wisdom and clarity of mind. This is the zone where Vaastu recommends doing meditation and thinking because the energies present in this zone are responsible for your connection with your higher self, i.e., your Intuitive and Ananda bodies. When you worship or meditate in this zone of your house, you feel connected with the Supreme Power, and get all the necessary insights, which eventually, show you the right way to move ahead in life, solving your problems and removing all your worries.

Hence, if this zone is not clean and is full of clutter, waste, non-useful material, garbage, then you will not be able to clearly see your goals and targets.

If there is clutter and waste accumulation in the north, it will affect new opportunities in your career, and if there is clutter and waste accumulation in the south-west direction, it will create situations wherein you may end up feeling that you are not able to perform up to the standards.

South-west direction is responsible for sharpening of skills. When you store clutter and waste products in this zone of your home or work place, the positivity and harmony in the 'space' gets disturbed. By storing clutter in south-west, you are unknowingly attracting such situations, wherein you are not able to concentrate on your work and the result is poor performance. Due to this, your financial stability may also get affected.

Likewise, clutter in the west of south-west, which is the Vaastu zone of studies and savings, may make children in the house restless. Their attention keeps wandering here and there, which does not let them focus on their studies. Also you may find it hard to save more.

The best remedy for all these ills is to get rid of the clutte. Clutter can be in many forms, starting from the stack of old newspapers or magazines in the dark corner of the storeroom, to the packaging material that you thought you would use someday but never touched. It can be old trunks, an almirah, wooden boxes, old refrigerator, washing machine, furniture, wall hangings, broken artefacts, etc., that you thought you would discard someday. There are so many similar things that could be kept in cupboards that you hardly open, under the kitchen shelves, or in some corner of your balcony.

So, before Navratras, clean your home of all the clutter and keep things in an organised manner to welcome the goddess of strength and power. This will also help you to become more systematic and organised in your approach with which you will attract more money, happiness, love and prosperity in your life.

decor trends
Fluid curtains
Vivek Mishra

Homes are being designed in more than one innovative ways nowadays. People are looking to bring the five elements in balance and create a space that is not only beautiful to look at and wonderful to spend time in, but actually has a positive effect on the health and well-being of the inhabitants.

The presence of a water body near the house or business premises has always been considered good as it keeps the energy flowing and prevents it from being “locked”. Its real essence speaks of the movement and the flow of life. It invites everyone to move and bend and not to stay rigid. Moving and flowing water can encourage those who come into contact with it to accept continual change and not to struggle unnecessarily in life. Flowing water can also ease tensions and allow the vibrations of the life force to enter us and nourish our aura.

One can represent the water element in the northeast by adding a fountain or a pool so that this beneficial acqua energy is reflected throughout. This is an ideal stressbuster and enhances the aesthetics too.

If you have space and want to strike the right balance, then building a pool is a good option, from the point of Vaastu as well as Feng Shui. A pool with latest features is a great choice to bring in freshness to the outdoor living space. If done in a right manner , it can be the highlight of the entire home. The demand for feature-rich swimming pools has increased these days. But as we said people are now looking for innovative ways, so gone are the days, when people wanted for simple water bodies. Now even in pools people are looking for hydrotherapy systems along with spa lounges, other than the good-old Jacuzzis that have already been there for some ytime now.

However, if you don’t have enough space to build the pool, you can opt for water curtains. There has been an increase in demand for water curtains and these are used for aesthetic as well as energy balancing purposes. They feature as spectacular elements in a living space, not only serving as the focal point of the room but also as a demarcating element for two distinctive sections of the living space.

Water curtains essentially feature as thin strips of water in a designated space, lending the opaqueness of glass. They can be created by using strings that lend the visual effect of rain. Alternatively they can also flow on exquisitely crafted glass or non-corrosive link chains.

Water curtains need not feature only as partitions between twin sections of a space, but can also manifest as a decorative element in an interior as well as at the entrance to the lobby or in a courtyard. Such a feature offers immense options with creative representation alone being the limit.

For instance, an interior incorporating a courtyard or a sky-lit space can have a water curtain acting as the demarcating wall with attractive wooden seating around it.

The water curtain can also flow into a small water body in the courtyard. This combined with appropriate lighting, stone elements and greenery would not only serve to be rejuvenating but also appear spectacular at night.

These can also be featured on a wall in the living area and its beauty can be further enhanced by stone cladding this wall. If featured on pillars, glass windows or incorporated with different effects and patterns to lend novelty.

In the outdoor space, water curtains can feature in a large porch at the entrance, lending a dramatic effect. These can also be teamed up with a shallow pool and pergolas with creepers and stone art to lend a very Victorian feel to a grand entrance.

They also serve as spectacular decorative elements in a large patio or a terrace garden. Here again instead of incorporating a conventional water body involving a cascade or a fountain, a spectacular water curtain complete with exotic lighting can be installed to completely alter the ambience of the space.

Those looking to add the vaastu element in their homes without restructuring the whole thing and saving themselves the pain of major changes, can place a water curtain in the northeast.

One can consider a water curtain/sheet of about 1.2m X 1m height. The same would cost you around Rs 75,000. You have endless options here to get it fabricated through a professional pool agency, as per your overall living space theme.

No special maintenance is needed for this as the pool agency will make sure proper water circulation for this element at your home. Just in case you place it outdoors in an uncovered area and weather conditions make the water dirty, all you need to do is replace the water once. And here we are strictly talking about just a bucket full of water for the mentioned size of water sheet.

— The writer is MD, Premium Pools

Knowledge about the various fittings and finishing materials used in the construction of a house is very essential as it is these things that make day-to-day living comfortable and hassle free. This week we take up some such common materials that should be chosen with care to avoid unnecessary expenditure and problems at a later stage:

Modular switches

Modular switches have replaced the conventional electric switches in houses almost universally. These switches, though much costlier than ordinary switches, are trendy and have their advantages. The main advantage of modular switches is that these look beautiful, have better finish and keep the plate fixing screws hidden. Therefore, choosing these switches is a wise decision always.

Do ensure that all modular switches have IS 3854 mark

How to choose: Look for modular switches made of polycarbonates. Further check that polycarbonates used in switches are flame resistant and UV rays resistant. Such polycarbonates are called FR grade. These should have high melting point besides being dust resistant. Also always check the insulation property of modular switches at the time of purchase. The insulation resistance should be more than 2000 Mega Ohms. Such switches are completely shock proof. Check their operation before finalising a 'Make' or 'Model'. Good quality modular switches shouldn't produce too high sound on switching on. Such sounds are disturbing in the house. Moreover, the switches shouldn't demand application of force for switching them off or on. Effortless operation is an important property of switches and should be checked before buying. However, avoid touch button switches as these switches always leave you uncertain whether a switch has been pressed or not.

Check that the modular switches carry IS 3854 mark. The sockets should carry IS 1293 mark. Check that the ampere ratings of the switches are as per requirement. Ensure that the switches purchased carry life-time guarantee. Secure purchase bills for their trouble- free replacement in future.

Features to look for: Modular switch features should include the provision of a spark shield inside the switches. Such shields conceal high sparking and help in avoiding any damage or short circuiting due to leakage of current. In addition, provision of a dust shield prevents the entry of dust inside the switches and helps in retaining their new look for years together. If possible, the contact rivet inside the switches should also be checked. These contact rivets need to be in bi-metal silver cadmium oxide for high conductivity and not in copper and silver coated iron. When brought near a magnet, the contact rivets in iron and coated with silver like material stick to the magnet. Such switches should be rejected. For higher conductivity, the terminals inside the switch should also be silver-plated brass terminals.

Select one switch per switch plate with an LED indicator on it. Such switches help you in avoiding groping in the dark to search for the plate and the switch. This switch should be for the wall light or the tubelight. These days, LED color choice has become available. One can choose red, green or blue light on the switches. Blue light is soothing to the eyes. Another feature of modular switches is the provision of a set of two cover plates. The first plate has a honeycombed grid plate structure and is fixed to the box. The second plate is flush-type face plate that has an easy to clean, high precision surface.

Granite

Granite is used in the houses for kitchen countertops. It is also provided in staircases and gate pillars. Use good quality and well-polished granite for kitchen countertop. Granite should be strong, fully scratch resistant, stain resistant, heat resistant and impervious. It should be able to retain its polish and finish for a longer period. It should tolerate high temperature well. Pay special attention to uniform thickness of the granite slabs. Often, these are found to be having varying thickness which causes problems in fixing of granite slabs in position. Granite slab thickness should be 18 mm to 20 mm. Prefer dark coloured granite over the textured one. For good quality, look for no patches or discoloration in the slabs.

How to choose: Granite slabs should be free of hairline cracks. Check by throwing water on the slabs and see if it passes to the other side. There should be no pinholes either. No colour stains should appear when a cloth dipped in kerosene is rubbed on the slab. Appearance of colour stains on the cloth proves that some oil has been rubbed on the granite slabs by the stone dealer to show them as polished and better coloured. Such slabs of granite will lose their finish in one or two months. Also look for flatness of the slabs. Granite slabs are classified as Grade I, II and III depending upon the flatness of their surface. Hardness value of granite should be more than 90. You may ask the dealer about these two properties.

 

Glass Glass is an essential item used in the construction of the house. Its main use is in window panes, glass partitions, stair railing and front and back balcony railing. Many types of glass are available in the market. However, plain float glass or toughened glass is used in window panes. In stair and balcony railing, the use of clear and toughened glass is advisable. In partitions glass can be simple float glass if a wooden frame is provided. Otherwise, toughened glass should be used. Glass in partitions can be provided with a designer film or can be treated by adding design in it before it is fixed in position. However, for shower cubicles only toughened glass should be used. How to choose: Glass used in window panes should be float glass that is free of cracks, bubbles, air holes, veins or blisters. Further, it should be flat and clear. See that it has no distortions. It should be from a reputed manufacturer (there are very few reputed ones) and should be IS 2835 marked. IS 1761 mark earlier used on glass now stands withdrawn. Small window panes may have 4 mm thick glass with a weight not less than 10 kg per sq. m area. For large windows, as is the trend now, 5 mm to 8mm thick glass may be used. Plain float glass can be used only if grills are provided to the windows. Otherwise, toughened glass should be used in windows. For bathrooms and toilets, frosted glass should be used. Its weight should not be less than 10 kg per sq. m. In door panels, use 10 mm thick glass if the door panel area is above 15 sq. ft. Plain glass in doors is not a wise choice. It's better to choose etched frosted glass in doors. Painted or stained glass when used in doors looks boring after sometime. Flowery designs are out of fashion. Look for geometrical designs. Immense possibilities involving straight lines and curves are available in the market. Toughened glass specifications: There is no check on toughened glass except the stamp of toughening unit on each glass panel. Therefore, check each panel carefully for the stamp of toughening unit. Also see that toughening of glass is got done by your glass dealer from a reputed toughening unit. Whenever the windows are not provided with grills and you are going to provide toughened glass window panes, see that the glass panes are cut by the dealer exactly as per required sizes as no alteration or cutting of glass can be done after its toughening. If you'll try to do that, it will crumble into pieces. Dealer should be doubly sure about the exactness of sizes before sending the glass panes for toughening. On arrival of toughened glass, also check each pane for any damage. Even a slight damage to an edge or corner of a toughened glass pane may result in its shattering at a later stage. Toughened glass can withstand high temperature and impact. Always secure the certificate of its toughening from the glass supplier.

— This column is published fortnightly

Buy under-construction property cautiously
Prameet Narula

New launches are risky for an average homebuyer in an age of delays. The ready-to-move options have additional cost burden and often cash component is demanded. Hence, many of the end users look for under-construction properties in the resale market. This may sound to be a win-win situation for both the first buyers (as he books his profit) and the second buyer who has the assurance after looking at the progress of construction that he will get his apartment within an expected time. The data available with Track2Realty suggests that more than half of the property transactions in the last three years have involved under-construction properties.

However, purchasing an under-construction property is not as simple as it appears from the standpoint of construction timelines. The process needs extra caution from legal standpoint to make sure that the second buyer is not caught between the developers' vague commitments and the first buyers' exit without the mandatory processes.

Sachin Sandhir, MD, RICS South Asia, categorically says that in such a market, where project delays are now a common phenomenon, it is advisable to invest in a project, where one can see some construction on ground. While investing in an under-construction property, it advisable to conduct one's own research and background check. In an ideal situation, the catchment area for the project should be populated with a good infrastructure and amenities. It is equally important to check the developer’s credentials.

“If one is able to go through the financial statements and the documents of the development firm and the project, then looking at the break-up of cash flows, expenditure, the growth factor in the project, building insurance, long-term capital appreciation potential, lease term, the lock-in period and its expiry dates will give a fair understanding of the project and the strength of the developer” says Sandhir.

As Sivaramakrishnan, Head of Residential Services with CBRE South Asia, hence suggests that when an under-construction property is transacted between two home buyers, the most important aspect to check for is whether the property developer has a clear land title or not; and whether it has been granted permission for non-agricultural land use. Other important items on the buyer's checklist should be the building plan sanction by relevant municipal authorities (with details of total project area, total number of buildings and floors, etc.); the Project Licence from the relevant authority; an Environment Clearance certificate; and a Commencement Certificate issued by municipal authorities permitting the developer to begin construction.

“In case there are co-owners of the under-construction property in question, the home buyer should ensure that all co-owners have authorised the sale, along with an Allotment Letter, and a Builder-Buyer Agreement. For a clear hand over of the said property, the home buyer should also be in possession of an account statement from the developer, together with a copy of all payment receipts made to the developer for the property,” says Sivaramakrishnan.

Surabhi Arora Associate Director, Research, Colliers International suggests buying under-construction property in resale requires a lot of caution. Documentation is the key, ensure you have all communication and confirmations in writing and get all the original documents such as allotment letter, builder-buyer agreement, NOC from the bank if property is on mortgage, payment schedule, layout plan of the property, copy of the project's drawing etc. One has to understand that almost all agreements are pro-developer. However, there are various clauses that protect buyers' rights such as interest payable by developer in event of a delay and refund process.

“You should get a detailed payment statement from the developer for the apartment you are purchasing in resale. The sheet should mention the total cost of apartment and parking as well as all charges, including payment, to government authorities like stamp duty, registration, Mvat, Service tax etc. and details of payment made by the first allotee. Ensure and clarify there are no additional charges once the final cost has been given. In some cases, developers do not pay any interest on delay of project in case there is any late payment by the allotee, thus one should ensure if there is any penalty of late payment due for the first owner and implication of the same. You must also check the transfer charges levied by developers,” says Arora.

 

Project checklist for buyers Clear land title Permission for non-agricultural land use Building plan sanction by relevant municipal authorities (with details of total project area, total number of buildings and floors, etc.) Project License from the relevant authority Environment Clearance certificate Commencement Certificate issued by municipal authorities Layout plan of the property Copy of the project's drawing Digging certificate Pollution Control Board NOC Fire fighting drawings approval Airport authority NOC Labour cess registration Payment and dues of land Why under-construction is in demand New launches risky due to delays Ready-to-move in has additional cost burden and often cash component A win-win situation for both the first buyers (as he books his profit) and the second buyers who ensures with the construction progress More than half of the property transactions in the last three years with under-construction property. Things needs to be checked Construction on ground Infrastructure and amenities of the catchment area Developer’s credentials and time commitment Financial statements and documents of the development firm and project, break-up of cash flows, expenditure, growth factor in the project, building insurance, long-term capital appreciation potential.

— The writer is Analyst, Track2Realty

real guide: investing in commercial property
Business basics
It is important to ensure that one is not buying into a property or location which has, or will have, major drawbacks high vacancies and result in low returns on investment
Ramesh Nair

At the best of times investing in commercial real estate requires forethought, research and planning. When tracking down the ideal commercial property for business operations or for investment, various factors such as soundness of location, the health of the local job market, current and future infrastructure initiatives in an area and migration patterns into a city play important roles. While the broad guidelines above hold true for any commercial property investment, prime commercial properties require even greater insight and investigation. Obviously, investing in a commercial property in a prime location can have multiple benefits. A prime office space purchased for self-use is arguably the soundest business decision any firm can make. Apart from the fact that such a property is extremely convenient to commute to, a commercial office in a prime location increases a firm’s visibility and reputation.

Prime locations

Both in terms of business potential and returns on investment, the highest value lies in prime office spaces. Invariably, the ‘prime’ value in commercial real estate is vested in the location, which leads to the question — how does one define a ‘prime location’?

The factors that make a location prime are a function of its overall accessibility within the city, the quality of infrastructure that supports it, the saturation of high-profile companies represented there and the overall quality of buildings in the sub-market. To determine if a location is prime, investors need to examine the following parameters:

• Can the office property be reached easily via all modes of transport?
• Is the office property close to major commercial hubs?
• What is the demand-supply gap?
• What is the tenant profile of the location? Which industries prefer it and what are their growth potential?
• Does the location have good social infrastructure such as restaurants, malls, shopping centres etc.?
• Is the location well-planned (e.g. Bandra Kurla Complex in Mumbai or has it grown with increased requirements (e.g. Nariman Point, which was reclaimed from the sea?
• Are there a lot of commercial space transactions happening in this location?
• Do the buildings have a modern look and feel (e.g. glass façades)?

If the answers to most of these questions are positive, then the location is a prime one.

Prime properties

The next aspect to determine is whether the project and property meet ‘prime’ criteria, as well. There are over 30 important technical specifications that a commercial property must meet, and this needs to be verified by an expert. If the project is under construction, the buyer or investor must be fully updated on the construction risks, the developer’s track record, etc.

The project and property must also be assessed for:

• Repositioning potential
• Refinancing potential
• Refurbishment potential.

IFC to lend $50 m to PNB Housing

IFC, a member of the World Bank Group, will lend $50 million to PNB Housing Finance to support increased access for affordable housing finance, particularly among women and self-employed people, in India. IFC also helped mobilise a further $50 million to PNB Housing Finance from other investors.

Of the $100 million, nearly 35 per cent will be used to provide home loans to women, either as principal or co-borrowers. Another 35 per cent will help PNB Housing to enhance its presence and focus in emerging cities in the priority states of Uttar Pradesh, Madhya Pradesh, Odisha, Rajasthan, Jharkhand, and Chhattisgarh. IFC will also support the company in its proposed entry into green mortgages for energy-efficient housing.

“IFC’s financing and global expertise will help expand housing finance beyond metros,” said Sanjaya Gupta, Managing Director, PNB Housing. “It will also encourage other housing finance companies to enter the affordable housing segment.”

The housing finance market in India has a huge gap to fill. According to India’s Twelfth Five Year Plan (2012-2017), the housing shortage in the country is estimated at 58.8 million units. Over 90 per cent of this demand is from the low-income households. In India, IFC has a committed portfolio of about $200 million in housing finance. “Given the strong development impact of affordable housing in India, IFC’s investment will reinforce the viability of housing finance for low and middle-income households,” said Giriraj S. Jadeja, Regional Head for Asia, Financial Institutions Group, IFC. “Additionally, support to affordable housing will spur construction activity, create jobs, and contribute to economic growth.”

PNB Housing offers home loans, loan against property, lease rental discounting, and construction finance. — TNS 

project watch
Possession time at Godrej Anandam

Godrej Anandam receives Occupancy Certificate and commences handing over of apartments at its township project in Nagpur Godrej properties has started handing over possessions of the Phase I units of its residential project in Nagpur - Godrej Anandam. Phase I of the project, comprising approximately 200 apartments in three towers, recently received occupancy certificate from the Nagpur Municipal Corporation. Spread over 29 acres of refreshing greenery, Godrej Anandam is an integrated township project with 22 acres of residential development. The project offers world-class lifestyle and state-of-the-art luxury apartments.

Godrej Anandam achieved "6 STAR" CRISIL Real Estate Star Ratings (CREST) from CRISIL, which was the highest in the entire region of Vidarbha. The project won 'Best Upcoming Township Award' at the Realty Kings Awards by My FM, Dainik Bhaskar and CREDAI Nagpur.

Bharat City Phase II in Ghaziabad

BCC Infrastructure recently launched Phase II of Bharat City project at Indraprastha Yojana in Ghaziabad. This will be constructed using the world-class German pre-cast technology. The first phase of this project has already been completed. It had 1944 units and the possessions will be handed over by the end of this month. The Phase II will be completed in three parts and will have a total of over 5000 flats in 39 towers. The possessions will be handed over tower-wise.

Intellicity in Greater Noida

NCR-based developer Airwil Group recently launched its open market retail and commercial project 'Intellicity' at plot number 10, Techzone-IV, Greater Noida West (UP). The new project is spread over 25 acres and is a mixed-use project with commercial spaces for retailing, offices and residences. The individual office space here starts from 150 sq. ft of area and the group is offering 12 per cent assured returns on a minimum investment of Rs 5 lakh. The studio apartments in the project are priced at Rs 4,999 per sq ft (basic), office space at Rs 5,500 per sq ft (basic) onwards and villas at Rs 7,999 per sq ft (basic). The project is designed by world renowned architects -BDP.UK & Confluence. The project is expected to be delivered in three years.

— Based on information provided by the developers