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watch: neemranaShowcasing growth The drive from Delhi to Jaipur may not exactly be a smooth cruise, but the distinct footprint of growth coupled with hectic construction activity engrosses one in the increasing real estate potential of this belt. The hillfort-turned-heritage hotel has been drawing tourists to this quaint Rajasthan town
decor
trends
Ground
Realty
‘Green’ concrete from plastic waste
tax
tips
realty
bites
launch
pad
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area
watch: neemrana
The drive from Delhi to Jaipur may not exactly be a smooth cruise, but the distinct footprint of growth coupled with hectic construction activity engrosses one in the increasing real estate potential of this belt.
The metamorphosis of quaint little towns into industrial and educational hubs can be witnessed all along the route. Neemrana, which till a few years ago was known as a weekend getaway for the “Delhi crowd” due to its famous fort resort, is now not only a bustling industrial city but an attractive real estate investment option also. Situated about 150 km from Delhi via NH 8, Neemrana has over the past couple of years attracted not only entrepreneurs and MNCs due to the industrial thrust provided by the governent, but has also seen several major realtors enter the realty scene with their residential and commercial projects. Middle class end users as well as investors with an eye on profit have added momentum to the property market in this historical town in the Alwar district of Rajasthan. Neemrana has a number of options for affordable and high-end luxury houses equipped world-class amenities and facilities. GV Shashidhar, CEO, Casohome.com says, “Neemrana today is attracting people from all over India and even from all across the world due to its vast heritage and culture. This is helping the real estate sector big time as among these tourists are second home buyers and investors. Also, there has been an already existing demand pressure from the workforce existing in the region, which is going to be met as residential projects come up. With the residential projects up, the migrations levels will increase which will push the demand further for commercial and retail spaces. Therefore, the region is shaping up perfectly to become the best choice for customers”. Growth trajectory
Location on one of the fastest growing industrial corridors in the country is one of the strongest development factors of this area. It is in proximity to other industrial sub markets such as Bawal, Khushkhera, Bhiwadi and Tapukhera; situated in Rajasthan and parts of the NCR. The government of Rajasthan, through Rajasthan Industrial Cooperation (RIICO), has been in the process of developing numerous industrial zones in Neemrana for the past several years now. The city is an emerging ceramics and glass hub of the country as all the raw material required by this industry is found in abundance in Rajasthan. RIICO will set up Ceramic and Glass hub in 250 hectares at Gilot in the industrial area of Neemrana, bordering DMIC, with piped natural gas. RIICO is also putting up large industrial estates extending 2,000 acres called Neemrana Phase III. The Rajasthan Government has approved 1,100 acres of land to RIICO for a large industrial estate which would also have a residential colony with educational, medical and recreational centers. An MoU between RIICO and Japanese External Trade Organization (JETRO), has paved the way for a special zone for Japanese companies including names like Nippon, Daikin, Nissan, NYK Logistics and Mitsubishi Chemicals. With as many as 38 universities and institutions getting sanction to open institutes in the area, the region is also going to emerge as an educational hub. The setting up of educational institutes and world class hospitality units will also bring Neemrana’s real estate on the path of development. Talking about the real estate growth in the area Kushagr Ansal, Director, Ansal Housing says, “There is a lot of scope for real estate development in the region of Neemrana. The destination has been receiving a lot of attention from the manufacturing and industrial sectors. Due to increasing demand for homes, developers here are coming out with several residential projects to meet the existing demand. With so much planned for the region, the demand is guaranteed to increase”. These reasons have attracted a lot of developers to come out with residential and commercial projects to use the existing and planned infrastructure efficiently and effectively. The Rajasthan government has already notified the 2031 Master Plan for the Shahjahanpur-Neemrana-Behrod Urban Complex, which will provide a major boost to the demand. Developers such as Visava Group, Eldeco, Ashiana Housing, Annapoorna, APTP Group, Anant Raj, Bestech, Ashadeep and several more have launched projects catering to the existing and future demand. The Visava Group has planned to come out with a township ‘Visava City’ in the region. The group plans to invest over
Rs 600 crore to develop several projects in the region. ChamanPanwar, MD, of the group says, “There is massive footfall due to large number of job opportunities and tourist attractions in the region. The existing infrastructure here is very sound and the demand has been moving north continuously. This has made real estate developers from across the nation to set foot here and satisfy the rapidly rising demand. There is a lot of scope for residential and commercial development in this region with so much population in the working segment, and a lot has also been planned that will keep the migration levels high here”. M. K. Gupta, Chairman, KPDK Buildtech group that is coming up with its maiden commercial project on Pataudi road, says, “The belt along NH-8 is developing at a rapid pace with several small cities such as Bhiwadi, Neemrana and others coming up. Neemrana lies in the centre of two major cities Delhi and Jaipur, and thus the investor cloud is huge. The developers are leaving no stones unturned to meet the demand at the region. Even the infrastructural plans are been laid perfectly in the 2031 master plan. With so much in action, few years down the line; the region will be a name to reckon with”. The prices and infrastructure play a major role for a destination to gain acceptance in the sector. Neemrana at present is averaging around
Rs 2,000 - 2,700 per sq. ft., which is in the affordable range and with world class infrastructure development already going on and the added attraction of its tourism potential, this quaint Rajasthan town has all the factors for real estate growth in its favour. These reasons are going to make sure that this destination is well received by the present and future customers. With so much carried on for infrastructure, few years down the line the region will provide a lot of capital appreciation. — Geetu Vaid
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Decoding payment plans
Developers are offering a variety of payment schemes to attract buyers during the festive season. It is imperative that they understand what each payment plan entails. The attraction of delayed payments, no EMIs, etc. has to be viewed in conjunction with the restrictions such as inability to sell the property within a shorter investment period, or before construction is completed. Some of the current payment options being offered are:
20:80 plan Developers ask for 20 per cent upfront payment from the buyer/investor and arrange the remaining 80 per cent loan amount through their own banks. This provides them with Advance Disbursal Facility (ADF) (the subvention plan which the RBI came down heavily on and asked banks to desist from). As a variant, developers get the amount directly from the banks and pay the pre-EMIs on behalf of the buyers. The pre-EMI is only the interest component payable on the disbursed amount. The actual EMI starts on possession of the apartment. Usually, such arrangements tend to lock in the buyer till possession of the apartment — they cannot exit their investment in the interim. This is on account of the ongoing arrangement with the developer and the agreement, which usually bars transfer during the construction phase. 10:80:10 plan This is a deferred payment plan, where the buyer pays 10 per cent initially, 80 per cent within 30-45 days of loan amount approval and the remaining 10 per cent on possession. It is essentially same as the 20:80 plan, and allows ADF to the developer from the bank which is associated with the project. This is a direct arrangement between the developer and bank, and ties in the buyer to the project till possession. It is helpful for end-user buyers, as it saves them the pre-EMI pay-out. Problems can occur if the developer stops paying the pre-EMIs and the burden falls on the buyer. Possession-linked plan All possession-liked plans are essentially a variation of the payment plans described above, and tend to tie the investors to the project for a longer period. Also, the level of price discounts available in such schemes is lower when compared to regular construction-linked or down payment plans. In absolute terms, the buyer is still paying the entire amount of his EMI as per his loan amount, as the principal amount does not reduce till the actual EMIs begin. (It must be remembered that pre EMIs are just payments of interest on the disbursed amount which the developer pays on behalf of the buyer.) These plans can help buyers who save on rent. They will hence save themselves a double pay-out of both rent and interest. However, since these plans are linked directly to the developers’ arrangements with banks, it is makes exit for those who are considering investment and intend to sell off before the project is completed difficult. Deferred payment plan A simpler arrangement entails paying a slightly higher booking amount (around 30 per cent); the buyer/investor obtains the remaining loan amount from the bank himself at a later date. This allows an investor a better exit option, while buyers who can come up with the initial higher booking amount could get a bank loan at a convenient time of after 2-3 years, closer to the project’s completion, as the amount is to be paid on possession. This allows greater flexibility for exiting, though is more ‘upfront-payment’ prone and can cause short-term liquidity issues. — The writer is Associate Director – Research & REIS, JLL India
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decor
trends While all designs are geometrical in the broader sense, here we are talking about the unusual shapes that have majestically trudged into the living rooms and bedrooms. So it is the octagons, hexagons, spheres, triangles and several other combinations that are on the platter of a homemaker looking for furniture, accessories and other knick knacks for her house. Many companies have launched exclusive range of furniture and home accesories in this genre. Sameer Hora, Director of IDUS Store, New Delhi, says that geometrically designed furniture is a great way to infuse one’s décor with bold and dramatic elements. “With their symmetrical abstract shapes and forms, these pieces add an eclectic touch to interiors. For example take a sofa placed with a blank wall. If you add a geometric pattern of artwork or geometrically designed cocktail table, the resulting look will be altogether different — it will automatically become the focal point of the room”, he says. IDUS has an extensive range of furniture designs by famous designer Vito Selma from Philippines and design director Vito Selma that fuse geometric designs and shapes with functional aesthetics. According to Rubina Chadha, interior designer of Home Works Studio, Geometrical designs are being incorporated by designers and manufacturers into a majority of interior furniture themes and accessories as these highly augment the grace of a living space when used in a singular bold statement. “Geometric design furniture is multi-faceted. You can even complement it with geometric patterned pillows, rugs and floor tiles. You can blend designs to establish a style that can be contemporary, retro-inspired or even globally influenced”, says Rubina. “Natural shapes are asymmetrical, curvy with a lot of imperfections. Geometrical shapes add a bold and dramatic look with their perfect sharp lines and symmetrical contours. Whether a centre table, console, dining table, accessories or wall art, geometrically designed furniture has become a trend, especially for people who wish to experiment and layer their spaces with rich, refreshing and intriguing elements”, adds Hora. From cocktail tables, dining tables, consoles, center tables, and home décor accessories, a myriad of designer options are available in the market with some of the branded ones costing over
Rs 80, 000. You can also carry the trend outside by complimenting your geometrical design furniture with stripped mats or an elegantly patterned umbrella. With a huge array of colours and patterns available in the market, you can easily integrate the soothing looks of hexagons, diamonds, squares, spheres and many more into your home furniture theme.
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Ground
Realty
All of us are well aware that health and hygiene are the mantra for joyful living. A well laid out and maintained kitchen plays an important role in maintaining these two essential aspects in today's busy life. Let's have a look at three important items that can help in making the kitchen work comfortable, easy and enjoyable and lead to a systematic and clutter-free storage of items in it:
Sink Features:
Look for the thickness of the kitchen sink. Thicker sinks are more durable and generate less noise. See that the sink steel is not less than 1.2 mm in thickness. Also check the depth of the sink. There should be no splashing of water in it on opening the water tap. Most of the stainless steel sinks available in the market are only 8 to 9 inch deep and this depth is not sufficient for Indian kitchens keeping in view the type of cookware used in Indian kitchens. The next factor is the finish of the sink. Three finishes are available — Satin, Gloss and Matt. Sinks with glossy finish are cheapest and those with satin finish are costlier. See that sink cleaning doesn’t require hard detergents or scrubbers. Sink with satin finish can be cleaned of all the greasy stains with simple soap water and a soft cloth. Sound suppression: If you are buying a stainless sink, must check for sound suppression. Otherwise, its use will become a headache for you as steel sinks tend to make lots of noise. See that the sink chosen is provided with a sound suppression pad on its underside. Provision of such a pad helps in dampening the sound to a large extent. Make site arrangements to further dampen the noise. Accessories:
Many sink accessories are offered by the sink suppliers these days. Major accessories offered include faucets, chopping boards, soap dispensers fixed over the sinks along the sides of faucets, pop up wastes with waste plugs, drain pipes, hand showers, knife shelf and wire basket. Ask for these within the cost of sink. Choose the faucet at the center of the sink to turn it towards any bowl. Chimney Provide an electric chimney in your kitchen. Indian cooking involves lots of frying. Therefore, provision of an electric chimney saves the kitchen maker from smoke, grease, odor and fumes. Also, it saves the wall paint from any smoke or charcoal deposits. It is more effective than an exhaust fan and works silently and instantly. Features: Electric chimneys are of two types. One type has a duct or vent with it and the second type has no vent. In the first type of chimney, the duct is led to the outside of kitchen where the gases, smoke and odor are released. Second type is of re-circulating type. Choose a chimney with a duct as it is more effective than a ductless one. Choose a chimney having higher air suction capacity: Manufacturers produce electric chimneys of different suction capacities, varying from 400 to 1200 cum per hour. Choose a chimney having a suction capacity of more than 1000 cum per hour for it to be truly effective in Indian conditions. Look for the number of blowers. The more the number of blowers or their power in chimney, the more effective it is. These create a low pressure suction effect around cooking area. Look for PDCA fans. These are more durable. PDCA means pressure die cast aluminum. See that the chimney makes less than 60 decibel sound. Such a chimney will work almost silently. Additional features: Chimneys are produced in either 60 cm or 90 cm size. Choose 60 cm size if your gas stove or hob is small. Manufacturers are now contemplating more sizes. Look for a chimney in stainless steel or its combination with tempered glass. Other materials are also used in chimneys but glass and stainless steel chimneys look best and need minimum maintenance. For duct, choose aluminum or PVC. Choose the controls to be of push button type. Check for speed variation feature. A chimney should run at two speeds at least, leaving the choice to the user. Automatic timer is another important feature. Some chimneys have auto cleaning feature also. You may look for built in lights in the chimney. Trolleys Essential storage:
A kitchen should essentially have a set of tandems, two or three sets of pull out baskets of different sizes, some box cutlery accessories, a pull out bottle rack and a tall unit. Normally, 2 corners are available, one of which should be provided with a carrousel or rotation basket while the other may be kept reserved for big sized multiple items. The corner basket should be able to rotate through 270 degrees. It is essential to provide a Glass Tray and Plate Tray (GTPT) in Indian kitchens. However, the utensil stands that have always been a part of the Indian kitchens have more capacity and are convenient to use. Such an utensil stand should be accommodated in an overhead cabinet near the sink without disturbing the overall concept and symmetry of the kitchen. Grain trolley is another essential item to have in the kitchen to accommodate the drum containing the flour. Grain trolleys are costly items and one may simply choose a plain basket to use it as a grain trolley. Material:
Prefer to choose the kitchen trolleys or storage accessories like baskets, trolleys, pull-out racks, side mounted racks in tall units, GTPTs and other items in stainless steel. AISI 304 stainless steel is costly and the accessories made of this steel have almost double the cost of AISI 202 stainless steel items. Use a magnet to ensure that the SS used in the accessories is free of iron. This column is published fortnightly
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‘Green’ concrete from plastic waste
Plagued by chronic sand shortage following a ban on its indiscriminate mining, a scientific project undertaken by Goa’s structural experts and Britain’s University of Bath involving plastic may well bring cheer to the beleaguered real estate industry in the state.
Academics in government engineering and polytechnics in Goa, in collaboration with their British counterparts, are working on a project that aims to replace sand with used and treated plastic carry bags in concrete mix. The objective of the research according to Purnanand Savoikar, a professor at the Goa Engineering College, which has been funded under the United Kingdom India Education and Research Initiative, is to create “green and sustainable concrete”. “It is a two-year project. We anyway throw away plastic as garbage, so let’s harness this waste. Also, if this project is a success, factors like irregular supply of sand due to ban or other factors can be overcome,” Savoikar told IANS. Savoikar said, “At present, the construction industry in Goa is growing rapidly and requires continuous supply of cement, stone aggregates and sand. Hence, this project, which aims at the development of structural concrete from plastic waste as partial replacement for sand offers immediate environmental and economic benefits to society.” A pilot study undertaken by Savoikar and his team at the Government Polytechnic in Mayem, a village 30 km from Panaji, has already replaced sand with 10 per cent plastic in concrete, but it gave rise to issues like minor reduction in the compressive strength of the mix. It is chinks like these which the association with the University of Bath is expected to iron out. “What we are trying to establish is whether the plastic-mix in concrete will emerge stronger, say, 10 years later. Would it be more susceptible to fire? In case of a fire, will it emit fumes that could be more risky for the inhabitants?” Savoikar noted. The British varsity, he said, had all the facilities and equipment to conduct such durability and quality tests. John Orr, from its Department of Architecture and Civil Engineering, who is currently in Goa, said that the project itself was unique and had potential. “We welcome the collaboration. University of Bath is the top university in the UK as far architecture is concerned and we have the facility to carry out the tests required to check the quality of concrete samples sent to us,” Orr told IANS. According to Manguirish Pai Raikar, Assocham’s chair for small and medium enterprises, the project, if successful, would help Goa — which does not have a single efficient garbage management system — get rid of its plastic garbage.
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tax
tips Q. I had purchased a flat in Karnal in 2010. But the builder has not offered possession till now. They demanded
Rs 4,22,000 in July as allied charges (club membership fee, fire fighting charges, power backup charges). The company has sought PBC (power back up) and FFC (fire fighting) charges @
Rs 195 per sq/ft of super area (1670 sq ft) and Rs 50,000 for club membership + service tax on whole amt. My queries are:
A. You should go through the agreement entered into with the builder at the time of purchasing the flat carefully. You must ascertain whether you have agreed to pay these charges in the terms of the said agreement. If not, then you can seek a clarification from the builder as to how these charges have been demanded without any agreement and even before giving the possession. In my opinion, club membership fee is not compulsorily chargeable as a resident must have an option to become a member of a club. Fire fighting charges and power backup charges would have to be essentially paid — fire fighting charges because of the conditions attached for issuance of completion certificate of a multi-storeyed building and power backup charges on account of power shortage in Haryana. Power backup charges cannot be on KW basis as these will have to be equally distributed in respect of all the flats in view of the service being provided by the builder to all the flat owners on equitable basis. The term allied charges possibly means those charges which are connected to the main charges. Parking charges are normally charged separately unless the agreement provides for a free parking to a flat owner. A decision to go to the consumer court should be taken after going through the agreement minutely.
What is the status of transferred property?
Q.
My uncle built a house on a plot purchased from the government in 1975-76. He paid bank the loan with interest in monthly installments up to 1980. Two years back my uncle (now very old) transferred the house to his son under the family transfer scheme after paying a nominal fee. His son (my cousin) is a permanent resident of Canada. He wants to sell this house. Kindly guide if his gain will be treated as long-term capital gain or short-term gain. What documents will be required for determining his tax liability.
— kishan kumar A.
On the basis of the facts given in the query the transfer of the house by your uncle to his son will be treated as a gift made by him to his son. According to the provisions of Section 47 of the Income Tax Act 1961 (The Act), any gift of a capital asset is not treated as a transfer, and therefore, for the purposes of computing the amount of capital gain, the period of holding of the house by your uncle would be taken into account for ascertaining the holding period of the capital asset by your cousin. The house so transferred to your cousin will be treated as a long-term capital asset taking into account the period of holding the house by your uncle. Further, according to various decisions of the court, the period for which the house was held by your uncle would also be taken into account for computing the indexed cost or the indexed fair market value, as the case may be, of the house which is intended to be sold by your cousin. The indexed cost or indexed fair market value so ascertained is required to be deducted from the full value of consideration received or accruing as a result of the sale of the house for the purpose of computing the amount of capital gain. The following documents would be required for ascertaining the amount of long- term capital gain in this case:
Calculating tax liability
Q. I had booked a flat with a builder on September 24, 2010, and the builder confirmed the allotment on the same day. The Buyer’s Agreement was made by me on December 3, 2010. Till date I have made a total payment of
Rs 47,08,131 to the builder in instalments, based on a construction-linked plan. This amount is 90 per cent of the total cost of the flat. The payment of last instalment was made by me on May 15, 2013. The builder has not yet offered the possession of the flat. On September 7, 2014, I made a Sale Agreement with some party to sell the said flat for
Rs 55,51,133. My queries are:
A. On the basis of the facts given in the query you have acquired a right in the flat. Such a right was acquired on September 24, 2010, i.e. the date on which allotment of the flat was made. The aforesaid right was confirmed by the Buyer’s Agreement made on December 3, 2010. The right so acquired would be considered a long-term capital asset as the same has been held for a period of more than 36 months. The sale agreement has been entered on September 7, 2014, which is beyond a period of 36 months from the date of acquisition of the right in property, and therefore, the capital gain arising on the sale of such a right would be treated as a long-term capital gain. You would be liable to pay tax @20 per cent plus education cess of 3 per cent on the amount of long-term capital gain arising on the sale of such a right. The relevant cost inflation index for different financial years: Q. Kindly clarify ways to save tax on LTCG on sale of a residential house.
Please advise non-questionable ways for the source of funds, by the assessing authority on FDR whose annual interest is being shown regularly in ITR-1 for the past about 7/8 years because the relevant record to prove the same is not available with the assessee. — dharam vir A. Your queries are replied hereunder: Q. I had purchased a house two years back after taking a home loan from a bank. The amount of the loan is
Rs 16 lakh @10 per cent interest. I purchased another house in July, 2014 in the same city taking loan amounting to
Rs 17 lakh @10 per cent from a bank. The first house has been given on rent and I am living in the second house. The interest amount of both loans to be paid by me would be approximately
Rs 2.5 lakh (1.25 + 1.25 lakh) per year.
I am a salaried employee. Kindly guide how much amount of interest rebate of both loans can I claim under Section 24 for the FY 2014-15 while computing the income-tax. — satinder vir singh A.
You can claim deduction of the entire amount of interest paid on the loan raised for purchasing a house which has been let out. The amount of interest paid for such a loan can be claimed as deduction against the rental income. Deduction in respect of the interest paid on loan raised for a house which is self-occupied is limited to a sum of
Rs 2,00,000 for assessment year 2015-16. Such a deduction was available up to a sum of
Rs 1,50,000 for earlier assessment
years.
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loan
zone Q. I want to purchase a plot and I will need to take a loan for it. But not many banks are willing to give a loan for buying a plot. How can I get a loan for purchasing land and investing in it? — manish sharma
A.
For lenders land loans are riskier because the loan’s collateral, the property, isn’t being used for housing, at least in the near term. That makes it easier for an owner to walk away and leave the lender stuck with the land. Because of this risk down payments and interest rates are higher for land loans than for mortgage loans. The type of loan you obtain depends on the property as well as your plans for the land and the timing of construction. Even if you plan construction right away, make sure that the property is legally available for your planned use. Get the property professionally surveyed. The survey will identify the property lines, dimensions, any easements and access. Easements and access will influence the property’s value. Access will also influence your ability to get a loan. Check with local officials about zoning. If you want to build in an area not zoned for development, then you will need to seek to have the zoning changed to meet your needs. Once you are confident that the land can be used as you plan, that’s when you seek financing. Unimproved land, or raw land with no plans for improvement, is the toughest kind of property to borrow against. It is basically a speculative investment. Such raw land has no added improvements such as sewers, utilities, streets or other structures. Even if you don’t have any immediate plans for the property, you’ll still owe annual property taxes.
Do banks give loan for
B-khatha sites?
Q. I own a 600 sq ft plot, on which I want to construct a house. It is B-khatha site. Want to know which bank gives loan for B-khatha site?
— sharad kumar A.
Khatha is an account of the assessment of a property that records the details of a property such as size, location and its built-up area. These are assessed to quantify the property tax that is levied by the government. It is also a kind of identification of the property owner who is primarily liable for the payment of the tax. It is required while seeking a building or a trade licence or a loan from banks. These documents are essentially required as it is mandatory for all property owners to pay their property tax. A vast majority of banks and housing finance companies provide loans to properties listed under A-khatha i.e. under the city municipal jurisdiction. It will be advisable for you to convert your property into A-khatha property for easier loans access. Things to keep in mind while converting B-khatha to A- khatha: 1) DC converted property should be received 2) Tax must be paid till current date 3) Betterment charges for the conversion property need to paid to municipal corporation.
Selling under-construction flat
Q. How do I sell my flat for which I had taken a home loan for a tenure of 15 years? I have already paid EMIs for three years, but the flat is still under construction.
— sudarshan handa A.
You can sell your flat by normal sale procedure. But as it is under mortgage there are certain options for the buyer: Deo Shankar Tripathi is President and CEO, DHFL
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realty
bites Realtors’ apex body CREDAI has expressed disappointment over RBI’s policy to keep key policy rates unchanged and has sought a cut in interest rates to boost housing demand.
“The Confederation of Real Estate Developers’ Associations of India is disappointed with the status quo on the RBI policy rates and demands a reduction in interest rates to facilitate lowering of entry barrier and spur demand for the real estate sector,” the organisation said in a statement. CREDAI said there was a need to devise a formula to make home loan rates independent of inflation, keeping in view the mission to provide housing for all by 2022 and exponential impact of the realty sector on triggering the GDP growth. “The real estate sector has been grappling with high cost of land, labour, material, fund shortage and high rates of taxation along with the moderate demand over the past few months. The industry was looking forward to a reduction in interest rates and improved liquidity to usher growth and development,” CREDAI President C. Shekar Reddy said. For the fourth time in a row, RBI kept key interest rates unchanged today maintaining that it would not cut them unless inflation moderates to anticipated levels, disappointing borrowers and the industry in this festive season. Expressing the disappointment of developers over the RBI decision jay Kumar, CMD, Ace Group said, “The decision of the RBI to keep the interest rates on home loans unchanged has dampened our hopes as the interest rates in the last quarter were also not touched.” Rajesh Goyal, MD RG Group, said, “Lowering the interest rates would have acted as a catalyst to boost housing demand. As anticipated, with the change at the political front and onset of festive season, positive sentiments are seen in the market and lowering the rate of interest would have encouraged the home buyers even further. The decision to have stable policies will be beneficial in the long run but keeping in mind the current moderate demand in the real estate market, a small cut in the rate of interest would have made a big difference." CBRE South Asia Chairman & MD Anshuman Magazine said: “RBI’s move of keeping base rates unchanged was expected by the industry”. “Gradually weakening inflationary pressures, along with improving performances by the manufacturing, construction and services sectors have been encouraging signs for further economic improvement by the second half of the year. Any reduction in base rates in coming months will be a positive indicator for the real estate sector,” he added. The real estate sector is facing a huge slowdown in demand, particularly in the housing segment for the past few years due to high interest rate on home loans and rising property cost. — PTI
Naidu asks for out-of-box ideas Seeking “out-of-the-box” ideas from the real estate sector for affordable housing, the government has said that it will consider recommendations for investing insurance and pension funds in the sector. “Real estate sector also has to work with out of box ideas to make a mark in affordable housing segment. This sector also has huge demand and opportunities,” Urban Development and Housing and Poverty Alleviation Minister Venkaiah Naidu said earlier this week in New Delhi. He was speaking at a real estate conference organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). “Recommendation pertaining to allowing insurance and pension funds to invest in real estate sector will also be taken up in due course,” Naidu said.
The NDA government has promised to provide housing for all by 2022. Naidu said providing housing for all is a big challenge and the government needs public and private participation to meet the target. He also assured the industry that his ministry wants that affordable housing should be included in the priority sector lending by banks. “We are pursuing with Finance Ministry regarding providing a sub-window of at least three per cent for affordable housing sector within 40 per cent priority sector lending allocation,” the Minister said. He further said the need for ‘single window clearance’ was also being explored. “We are discussing how far it is possible with other ministries and state governments and also to give infrastructure status to housing sector,” Naidu said. On the proposed ‘Smart Cities’, Naidu said his ministry is in the advance stage of finalisation of the contours of the project and hopes to finalise it and take it to the cabinet by November. Acknowledging a great demand for smart city plan among various cities, Naidu said, “Cities cannot be constructed overnight. There is so much demand for smart cities. The process is on we are in advanced stage of finalisation of the various contours of the smart city concept.” — PTI
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Real
view
While buying a home in India, stamp duty and registration charges are the most significant additional costs above the base price of the property itself. Close on the heels of this expense come the costs involved in registering with the local electricity board and having a meter fitted.
Yet another burden which homebuyers do not always factor in is the cost of insurance to cover the home loan. Of course, all this is in addition to the brokerage payable to the property agent, for which the industry standard is 2 per cent of the base price (but can often be negotiated). If we take 5 per cent as payable towards stamp duty and another 5-7 per cent for the other initial charges, the added expenses incurred at the actual time of home purchase can come to as much as 10-12 per cent of the base price of the flat or the amount availed for via a home loan. However, these are one-time expenses and do not imply a recurring financial burden on the home buyer once they are cleared. Two recurring expenses that a property owner will face are the annual property tax and the maintenance charges. While the property tax is predictable, maintenance charges are a different matter altogether. Recurring charges This is an area where the quality of construction plays a big role. Many home buyers in cities like Mumbai and Pune are drawn to the lower property prices of projects by small-time developers, only to regret it later on. Such developers often use inferior construction materials which do not stand the test of time. The first step towards ensuring that one is not burdened by huge maintenance costs in the future is obviously to buy homes in projects from established developers with a reputation for quality construction. Many reputed developers are now providing reliable and accountable maintenance services via qualified external agencies. Preventing escalation Flat owners must ensure that the annual maintenance charges are used optimally by the housing society. A majority of housing society offices have a separate fund for maintenance towards which all property owners contribute. However, flat owners must ensure that proper preventive maintenance is actually undertaken and that maintenance funds are used for the specified purpose only. Especially in the case of older buildings, another important step towards preventing huge maintenance charges is to identify the most problem-prone areas within a particular apartment building. To do this, the flat owners should order an inspection of the premises by a qualified agency. The problem areas must be identified, and appropriate remedies must be established. In many cases, property maintenance undertaken by the housing society’s administrative body is symptomatic. In other words, problems are tackled only as and when they arise. If the flat owners in the building feel that the housing society is not sincere in its efforts and that property maintenance will become a major issue, they must take appropriate action. The best course of action is to pass a resolution that the maintenance of the premises be entrusted to a professional agency under an annual contract. This will ensure that money meant for the purpose of building upkeep is accounted for, and is being utilized for its intended purposes. It must be remembered that recurring property maintenance expenses can be quite heavy if the building or project is not well looked after. This also reflects in future resale value of a flat, which is why units in older projects which have not been maintained well do not fetch the expected prices. — The writer is CMD, Amit Enterprises Housing Ltd.
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Vardhman Developers announced the launch of its ambitious residential project Vardhman ETA Residency in the Greater Noida region earlier this week. Under the construction linked plan, the company is offering over 1,000 apartments at a basic selling rate of
Rs 3,500 per sq ft. in the new project that will be spread over 6 acres. The project offers a range of 2, 3 and 4 bedroom apartments.
Vatika opens 3 business centres built at
Rs 25 cr Realty firm Vatika has opened three new business centres covering 65,000 sq ft office space in the national capital, Noida and Hyderabad at an investment of about
Rs 25 crore. These three centres will have around 750 seats, taking the total number of business centres to 12 comprising over 2.5 lakh sq ft of modern office space with nearly 3,000 seats. “We have opened three new business centres today. The centres in Delhi and Hyderabad have been taken on lease while the Noida centre is in joint venture,” Vatika Group President Hospitality Vineet Taing told reporters. The company has invested about
Rs 25 crore on setting up these three business centres, he said, unveiling the Centre located at Konnectus Building, which houses the starting terminus of Airport Metro, near Ajmeri Gate. The office space in these centres are generally taken up by the start-ups. Taing said the company has plans to add six new business centres every year to reach the target of 42 centre in the next five years. Vatika group’s business centre segment posted a revenue of about
Rs 60 crore last year and this would Rs 80 crore with the opening of these three new centres. The Gurgaon-based group is into real estate and hospitality businesses.
Possession time at
Prime Towers DLF has started handing over possessions of shops and offices at ‘Prime Towers’ project in the heart of South Delhi. Prime Towers is located in Okhla -Phase 1, in proximity to business districts like Jasola, Mohan Cooperative Industrial Estate, Nehru Place, Bhikaji Cama Place, Saket and retail hubs like Central market- Lajpat Nagar and M-block market- GK II. It is spread over 1.92 hectares with 70 per cent open space. The approximate built up area in the project is 57,500 square meters. The project has ground+8 floors and units are available in flexible sizes ranging from 204 sq m to 687 sq m.
Casa Romana in Dharuhera Dwarkadhis Project Pvt. Ltd., under the brand name of DPL Homes, recently launched Casa Romana - a contemporary residential group housing project with a Roman theme. The new project is located in Sector 22, Dharuhera, about 25 minute-drive from Gurgaon. Speaking on the launch, Sulekh Jain, Chairman, DPL Homes, said, "The project will have all the high-end amenities like air-conditioned waiting lounge with bell desk, on-demand movie theatre, salon and spa, round-the-clock concierge service, dedicated zones for sports, recreational as well as social activities". The 17-acre project will have ground + 13 floor towers and will offer a blend of exclusive 2 BHK, 2BHK + Study, 3BHK & 3BHK + servant room apartments. The project will be constructed on green building concept combined with European Construction Engineering Technique; Reinforced Insulated Microconcrete (RIM) Panel Technology. The price will be from Rs 2700 per sq. ft. onwards.
— Based on information provided by the developers
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Geometry may not have been a fascinating and interesting subject for many in the classroom, but the lines, angles and sides are surely making many a heart skip a beat when it comes to decking up one’s home. Geometrical designs in furniture are emerging as a major trend in putting together modernistic look in home interiors. Introducing such visually compelling patterns, styles and shapes to the décor, can completely change the look of your home. From dining rooms, living spaces to even kids’ rooms, geometrically designed furniture can transform any space.
One must consider the colour and size of the room to decorate it further. For example if you have small room, use light colour and smaller geometrical shapes. In larger rooms, bigger geometrical designs with bold colours help to create the “oomph factor”. “I have purchased a coffee table with bold geometrical design for my drawing room as I have white rounded sofa. This has completely changed the look of my room”, says Sarika Verma, a Delhi-based homemaker.
While giving decor tips Rubina says, “One of the most revealing and attention-grabbing places to use geometric design furniture is your living room. You can add furniture pieces patterned with simple stripes dots or herringbones rendered in brilliant colours and interesting textures. There’s a whole new magical world that you can create by making use of throwbacks, window dressings, cushions that come in bright and pastel shades with scintillating geometrical designs”. 
Avoid direct exposure to sunlight, and protect your furniture from the damaging UV rays.
Choose a double-bowl sink for your kitchen. One having a drainage board attached to it should be preferred. The sink may have a single bowl, two bowls, three bowls and can be without a drainage board. During the planning of the kitchen, keep space to accommodate at least a double-bowl sink. Sinks are available in many materials. However, look for a stainless steel sink. See that the stainless steel is of at least AISI 304 standard. Sinks are produced in many shapes. It may be rectangular, square, L-shaped or curved. Prefer a rectangular sink if a double-bowl sink is chosen and a square or rectangular sink if single bowl is chosen. Don't choose a curved shape sink. Sinks are being produced in many sizes, varying from 12 inch to 61 inches. Choice of size depends on the space available for the sink in your kitchen. If you are using a double-bowl sink, a 42 inch long sink is sufficient. For single bowl sink users, choice should be for at least 19 to 22 inch long sink. 
Kitchen trolleys are the common name of kitchen storage accessories. These include baskets, pull outs, pantry units, tall units, corners, carrousels, grain trolleys, glass tray plate trays, commonly known as GTPTs, railing systems, wall mounted holders, pole systems, drawer systems and under the sink systems. Each accessory further has a large variety to choose from. The baskets may be pull out type plain or perforated baskets, plate baskets, vegetable baskets, cup and saucer baskets, plate baskets, cutlery baskets, bottle baskets, partitioned baskets or glass baskets. Similarly, other accessories too have many variants and the customer has a large choice at his disposal. Kitchen trolleys are provided in the space below the counter while the space above the counter is converted into cabinets with open-able shutters. Only the cabinet above the sink has the GTPT and utensil storage items.