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Location the biggest luxury
Festive season fails to light up realty market real talk
project watch
realty revenue
rainwater harvesting
Green house Reits, InvITs will need tax sop thrust DHFL announces 10.15 pc interest rate on strong growth front real issue
vaastu wisdom tax tips
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Location the biggest luxury
Luxury homes in India are often offered with a very confusing set of qualifying parameters. Developers heavily promote specifications and amenities in their marketing collaterals, but fail to mention a far more critical parameter. On analyzing the unfolding luxury homes story in India, it becomes evident that addresses and pin codes have played an important role in defining luxury in the traditional sense. This continues to be relevant even in the current times, with only a few exceptions to the rule in the country’s key cities. Despite the multiple innovations, design upgradation and enhanced specifications and amenities visible in the latest crop of luxury offerings, the premium placed on signature locations still stands high. One of the most important reasons for this is that the country’s most hard-boiled luxury home buyers are extremely focused on the occupant profile of the projects they consider. What is occupant profile? Over and above every other consideration, the occupant profile of a luxury project is the most definitive and decisive factor for property buyers in this category. Briefly, it is the profile or the people that reside in the project. One of the definitions of luxury is ‘a cut above the rest’, and this means that a luxury home buyer expects to live among people of a certain grade of professional accomplishment, prominence and social standing. It is, in fact, the desire to be part of a select peer group. This is the social environment in which luxury home buyer wish to inhabit — the kind of neighbours that they want to have and socialise with, and whose children they want their own children to befriend and grow up with. In short, the term ‘luxury’ denotes a very definite degree of social refinement and class to them. While it is not necessary for a luxury project to have the city’s most distinguished personalities residing there, buyers still aspire to live among like-minded people from within their own social bracket and intellectual bandwidth. The occupant profile value factor, though subjective by nature, can obviously not be replaced or compensated for by glitzy amenities and specifications. In fact, its presence is more the result of elimination than of creation, and can only result from either or a combination of two functions: A very selective tailoring of the occupant profile by the developer Location and pricing attributes that exclude all but the desired profile of occupants Discerning luxury home buyers will avoid purchasing units in a project which has attracted an excessively mixed profile of occupants. While lifestyle aspects such as superior amenities and specifications are definitely desirable and dovetail with the overall experience, they are not the most important criterion for the success of a luxury project. These are the dynamics that have crafted India’s traditional luxury locations – areas that are defined by their residents, rather than their buildings. Many projects on the market today have failed to excite the buyers towards whom they were originally targeted because they do not project the right kind of occupant profile. On the other hand, luxury homes projects that have, by intent or because of the right attributes, attracted the right profile of residents, tend to succeed even if they does not have the benefit of glamorous specifications and amenities, flashy brochures and staggering marketing budgets. The investment value of a luxury home is also primarily driven by this variable. While resident profile is a key factor defining luxury at our cities’ most recognizable addresses, this does not mean that luxury projects do not succeed at all. The presence of superior amenities and specification in new luxury locations beyond the traditional luxury precincts have been successfully marketed to buyers who are seeking to upgrade for their existing mid-range homes to ones that offer them a better lifestyle. Indian developers have not been fazed by the challenge that the deeper socio-economic connotations of what constitutes luxury poses to their new offerings, and have come out with concepts to seek to defy the ‘premium location’ logic. The success with which their efforts have been greeted varies, depending largely on how imaginatively they have been able to bring out the concept of modern luxury in new locations. It stands to reason that the country’s most prominent residential locations cannot yield many more options for those who look for the highest status value in their homes. However, these buyers will continue to seek specific social environments that developers will have to provide in every new location and project. — The writer is CEO – Residential Services, JLL India
South Delhi In South Delhi, builder floors are one of the most sought-after luxury home configurations, where each floor is owned by one family. Most bungalows in South Delhi are now being converted into either builder floors or apartment projects to enable the land owners to capitalize on the unlocked potential. Meanwhile, Lutyens Zone is the area that the most powerful and influential people in the country’s capital call home. Despite the dizzyingly high prices, demand heavily outstrips supply at any point of time in this location – a factor also driving the extremely high capital appreciation in this region. Independent houses in Aurangzeb Road, Prithvi Raj Road and Jorbagh, cost anywhere between
Rs 50-600 crore. Builder Floors on Malcha Marg and in Shantiniketan cost Rs 18 crore and upwards Gurgaon The fact that an increasing number of MNC, FMCG and IT companies have chosen to locate their headquarters in Gurgaon has led to the senior management of these companies seeking out the most exclusive residential options. The demand for gated community luxury homes in Gurgaon is also fueled by diplomats from Delhi’s many consulates. DLF Magnolia, Gurgaon: Beyond Golf Course Road, Catriona by Ambiance Developers has found favour from luxury home buyers with budgets within the range of
Rs 14 crore. Mumbai In the country glamorous and notoriously pricey financial capital, supply in the most preferred and sought-after luxury homes locations always exceeds supply. Currently, the list of options in Mumbai includes: Suneeta Building in Malabar Hill:
Rs 35 crore onwards Hill Park in Malabar Hill: Rs 21 crore onwards Maker Towers - A & B Wing in Cuffe Parade:
Rs 30 crore onwards NCPA Apartments in Nariman Point: Rs 27 crore onwards Sea Face Park in Breach Candy:
Rs 25 crore onwards Samudra Mahal in Worli: Rs 18 crore onwards Vivarea by Rahejas in
Mahalaxmi: Rs 18 crore onwards Signature Island in BKC - one of the most preferred new CBD destinations for the city’s C Suite:
Rs 35 crore onwards Praneta, the most preferred luxury project in Juhu: Rs
35 crore Parthenon, the most sought-after address in Andheri: 13 crore
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Festive season fails to light up realty market The Indian real estate market is definitely in recovery mode again. However, at this point in time, it is more than evident that the festive season was not able to fully harness the benefits of market recovery. This is because the events that have catalysed the recovery — namely the new government at the Centre, its pro-business policies, the encouraging Union Budget and the provisions it has announced favouring real estate – will need more time to bring their benefits to bear on the market. While demand exists, it is still held in abeyance by various economic factors, including the natural lag between the announcement and implementation of government policy catalysts. Reduced pricing could potentially induce some further sales momentum in certain pockets, but it is not likely to happen as developers are not keen on signalling a correction, especially when demand is waiting in the wings. New projects are in any case being announced at lower rates. Developers have been addressing the situation by offering selective discounts and incentives, the success of which has varied across cities and locations. Those with greater holding power continue to wait for the market to pick up so that sales velocity will accelerate. With reference to the high levels of unsold inventory, launches have decreased consistently since 1Q13, with exception of 1Q14, in which launches increased. This has resulted in unsold inventory further increasing by 6.7 per cent in the same period because of sluggish sales. It is only after four consecutive quarters of slow launches, activities such as reconfiguration of units, reduction of total ticket price, etc. induced some improvement in sales at the country level. Prior to the general elections, developers had launched many projects to gain a competitive advantage, and in anticipation of a recovery in market conditions after the polls. However, the launches did not really pick up post elections, as residential property buyers continued to remain cautious. This is actually positive, because in a healthy market environment, supply needs to take its cues from on-ground demand. In short, sales velocity during this festive season has remained uninspiring despite the various attractive pricing schemes and discounts that developers have been offering to attract buyers. However, the current scenario is no way indicative of what lies ahead for the real estate market, for which the outlook remains very much positive. To my reckoning, we are currently at the cusp of growth, and the tangible manifestations of the current market recovery will become visible over the next twelve months. The old dictum ‘what cooks slowly cooks well’ is very pertinent in the present scenario. — With inputs from Anuj Puri, Chairman & Country Head, JLL India
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real talk
Yamuna Expressway is amongst the most modern, state-of-the-art super highways in the country and it has triggered substantial economic and tourism development along the corridor besides causing a spurt in real estate activity in Vrindavan and Mathura. Several developers have launched residential projects in these holy cities as the demand for second homes here has increased over the past couple of years. Commenting on the impact of Yamuna Expresswy on the property market of these cities Ravindra Chamaria, CMD of Kolkata-based Infinity Group that has launched an ambitious project Mayavan & Krishnabhumi in Vrindavan recently says, “It is important to build and complete the rapid access connectors to growth centers along the expressway, and in Vrindavan and Mathura, which will undoubtedly provide a big boost to poperty prices in these places”. Excerpts from an interview: What makes these two religious centres (Mathura and Vrindavan) the new hotbeds of real estate projects?
Cultural and religious tourism to Vrindavan has increased manifold over the last decade, thanks to the global awareness and attraction to India’s spiritual traditions and Krishna consciousness. This has naturally created a demand for second homes here as well as primary homes as the residents of these old cities are seeking open and better quality living. Another reason, perhaps, is that getting to Vrindavan is a lot easier now. From Delhi NCR, it takes a little over an hour by Yamuna Expressway. People of Delhi NCR looking for a second home in a religious centre used to prefer Hardwar and Rishikesh. Do you think they are now turning to Mathura and Vrindavan? Hardwar and Rishikesh have their own appeal due to Ganga river and the hills. Vrindavan, the childhood place of Krishna, however, has a very special place in the hearts of his followers. They come here not only for temple darshan, but to spend time and be spiritually healed in the land blessed by Krishna. What kind of properties do the customers prefer in these cities? Since bulk of the home buyers in these cities require accommodation for short stay, the demand for smaller apartments like studio, 1BHK is more. Many buyers even prefer furnished apartments. Generally people prefer apartments and complex, which offer standard living amenities. Which are the upcoming and potential areas of growth in this region? Chhatikara Road, a prime area in Vrindavan, already has many developments. Sunrakh Road, Gopal Garh etc. are future potential areas. What makes your project a unique one in the region? The concept of Krishna bhumi itself makes the project very unique. It is a 110-acre iconic temple township development with villas and apartments coming up, adjacent to the planned World’s tallest Krishna temple. The temple, as conceptualised by the devotees of ISKCON, Bangalore, will be 700 ft tall and complemented by Krishna Lila theme parks, recreated forests on 70 acres. It is located close to NH2 and is well connected to Yamuna Expressway. It not only offers luxurious living in the holy city, but also provides lifestyle amenities to make one’s stay comfortable and enjoyable. Vast open and green areas, wellness centre, elder care center and a host of featured conveniences gives the project an unique identity. What sort of price appreciation has been witnessed in Vrindavan post the opening of Yamuna Expressway? Vrindavan’s real estate price has experienced fairly good appreciation which is higher compared to that in other similar cities in the past two years. This is despite the fact that there is a slowdown in the sector all over the country. If you see the number of projects here and the sale volume then it is very evident that investmentwise property has given good returns to buyers here. — GV
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project watch
Puravankara Projects Limited, has launched Purva Evoq, a first-of-its kind contemporary residential project at Chennai’s prime location Guindy. Overlooking the Chennai Race course, Purva Evoq will have 181 premium homes in 3, 4 and 5 BHK formats that will have contemporary design ideas to blend with the grandeur of the architecture in the project. The façade of this project has been designed by a renowned international architectural firm from Germany taking inspiration from the Chettinad architecture of south India, and cloaking it with modern day luxuries. When fully occupied, the collective financial wealth of the residents is estimated to be in upwards of US$ half a billion
(Rs 3000 crore), making it possibly one of the wealthiest residential enclaves in Chennai. The palatial looking building will have world class features, a landmark entry arch and gate, large chandeliers and marble clad lobby. Each apartment will have a royal white, large, hi-tech main door along with a panic button in the master bed room and dining area as well as marble clad living room, wooden floor in master bedroom, gas leak detectors in kitchen and luxury fixtures. The residents will have access to a 5-star concierge service as well as several amenities on rooftop that include a stately sky/ cigar lounge, sky gazing observatory, hard scape paved area with seating, well-lit terrace garden, evergreen gazebos, jogging track, infinity pool and private offices, among others. DLF commences possession of plots at New Chandigarh project DLF has started handing over possession of 664 residential plots in its integrated township ‘Hyde Park Estate’ in New Chandigarh after receiving the occupation certificate from the authorities. Hyde Park is a 225-acre township, and as many as 1400 families have chosen their residential or commercial property here. “The township’s development is complete with respect to all external services. The infrastructure work, including roads, smart street lighting, manicured parks, water supply, drainage and underground electrical cables along with special features such as water and sewage treatment plants and rainwater harvesting are complete”, said Mohit Gujral, Chairman & MD- DLF Universal Ltd. According to a statement issued by the group the 190 ft approach road connecting Hyde Park Estate New Chandigarh with Madhya Marg, Chandigarh is also operational. DLF has also signed up “Manav Mangal World School” to open its campus at Hyde Park Estate. “Chandigarh-tricity has always been a high priority region for DLF and the delivery of Hyde Park Estate is the evidence of our commitment to the region. We have tried to ensure that the quality standards live upto our customer expectations, ” added Gujral. Besides, conforming to the low density population norms, ample greenery and open spaces, the township also offers varied products for varied customer needs. In the residential segment, options include plots, Independent floors and expandable bungalows. The commercial segment has booths and SCOs. Some of the top corporate houses have also chosen Hyde Park for their staff housing needs. The construction of floors is being done by Shapoorji Pallonji Pvt Ltd. — Based on information provided
by the developers
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realty revenue
Mumbai-based real estate developer Oberoi Realty Limited has recorded consolidated revenue of
Rs 189.37 crore for Q2FY15 as against Rs 181.85 crore for Q1FY15 and Rs 371.22 crore for H1FY15 as against
Rs 441.08 crore for H1FY14. The group announced its financial records earlier this week. Commenting on the results, Mr. Vikas Oberoi, Chairman & Managing Director, Oberoi Realty Limited said,“A stable government at the Centre, and Prime Minister Modi’s recent visit to the US has put India on the global stage. Today the whole world is looking at India for growth opportunities. His vision of ‘Make in India’ and a slew of positive changes being announced and implemented in a very short span of time, have revived the consumer sentiment in the country. Within this financial year, Oberoi Realty is gearing up to launch 2 large scale projects in Mumbai — Mulund & Borivali. We believe that our focus on creating great quality products will be reflected by the continued customer confidence in our company.”
H&R Johnson targets 2,500 cr turnover this fiscal H&R Johnson, a division of Prism Cement, had posted a turnover of
Rs 2,031 crore in 2013-14 financial year. It has nine manufacturing plants with annual production capacity of tiles at over 54 million square meter. “Our main businesses are all growing by over 20 per cent so far this fiscal which are higher than the industry average. We expect this growth momentum to improve and continue further this fiscal”, H&R Johnson (India) Chief Operating Officer (COO) Sushil Matey said. The company is expecting growth on the back of its focused distribution expansion, brand building efforts and introduction of new products, he added. “Several innovative products are being introduced in tiles, bathrooms and kitchens to offer differentiated product offerings to our customers and drive growths for the company,” Matey said. The company would continue to make efforts to strengthen its brand. Last year, it had signed bollywood actor Katrina Kaif as its brand ambassador. “A focused drive is under way to expand our distribution footprint across all our key businesses. Besides increase in our dealer network, this includes opening more of company owned ‘House of Johnson’ stores,” Matey said. H&R Johnson would be investing around
Rs 25 crore this fiscal on expansion of distribution network and branding. Mumbai-based firm has 28 company-owned stores all over the country. It has over 2,000 direct dealers selling tiles, faucets & sanware, kitchens and Marble&Quartz. Prism Cement is leading integrated building materials company with a wide range of products from cement, ready-mixed concrete, tiles, and bath products to kitchens. Its consolidated sales turnover stood at
Rs 5,458 crore last fiscal. — PTI
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rainwater harvesting
The importance of water is immense for our cities. Even at a national and global level, climactic changes as well as other factors are causing water levels to decrease. Overpopulation has led to more and more acquisition of shallow lands for landfills, reducing the number of available water bodies. Deforestation has further compounded the scarcity of water, as this causes regional rainfall to become more unpredictable. Water as a resource is needed in every activity, be it farming or construction of buildings. Rainwater harvesting is the only real solution available to tide over the shortage of water that is being faced by sveral cities. This practice is catching on in urban as well as rural areas. Rainwater harvesting involves collecting, filtering and storing rain water to be used for various residential and industrial purposes. The primary apparatus includes a down pipe and a first flush arrangement, a filter unit and a storage tank. Rainwater provides a clean, free source of potable water. Rainwater harvesting employed in residential properties, which usually involves trapping rainwater from roofs and guiding it into storage tanks or cisterns in the ground, can meet 50 per cent of everyday household needs. In fact, rainwater harvesting is not just a way to make the maximum use of this natural resource, but is also a way to do so with minimum environmental impact. Naturally, it also results in significant cost savings on utilities bills. The various benefits of harvesting rainwater in urban residential areas include: Reduced pressure on ground water Most water supply in urban areas comes from reservoirs, rivers and lakes. Urban water supply also involves putting up treatment plants, supply pipes as well as pumping stations. In most Indian cities, city planning authorities cannot match utilities with the pace of growth. Water resources are impossibly stretched even in the most developed cities in the world, but the problem is worse in developing countries like India, which see a greater rate of population movement from rural areas to urban areas. Geologists and engineers are constantly struggling to find new sources of water. The demand for water for industrial use has led to further depletion of ground water levels. In several bustling cities like Gurgaon and Pune, there is relentless drilling for ground water, with shafts going deeper as the search for more water continues. In such a scenario, rainwater can significantly supplement a city’s water supply and reduce the pressure on conventional water supplies. Lower utility bills When rainwater is harvested in a housing complex, it can be used for various non-drinking purposes that require large volumes of water. For instance, rainwater can be used for functions such as household and vehicle cleaning, garden and green space maintenance and toilet flushing. This means greatly reduced utility bills, because rainwater can complement the conventional water supply system. This is equally applicable for industries that use up large quantities of water for various uses. Industries can make use of rainwater for the majority of their operations and therefore reducing pressure on ground water. Creates backup water supply Rainwater harvesting can be used as an insurance for times when water supplies are compromised for any reason. This is important, because climate change has caused major disruptions in the weather patterns in many Indian cities. Rainwater can be collected and stored, and used during drought seasons to complement the stretched normal water supply. In cities like Pune and Mumbai, the dreaded bane of water shortage and rationing is significantly mitigated with rainwater harvesting, which also reduces the dependency on water reservoirs and dams. Good for the environment When several residential buildings in a city use rain water harvesting systems, there is a significant decrease in surface run offs, floods, soil erosion and reduced pressure on the drainage system. Collecting rain water means less contamination of surface water from surface run off, when rainwater picks up pesticides and other harmful chemicals that ends up in rivers and lakes. Collecting rainwater, especially in low-lying areas, reduces the possibility of floods. It can also protect the soil from erosion caused by peak storm runoffs. Rain water collection, therefore, also serves an environment conservation purpose by preventing contamination of other water sources and ensuring that less water is drawn from lakes and rivers. Rainwater collection can be used to recharge ground water levels through various methods, and to improve the quality of ground water. This helps in improving urban greenery; in fact, this is the only reliable means of having green areas within urban areas without leeching off from existing water supplies. Within large residential projects, such water can be used for landscape irrigation. Easy implementation Rainwater harvesting systems are easy to install and maintain. Since rainwater is pure, there is no need for the complex purifying systems that have to be employed to clean ground water. Rainwater collection systems are based on basic technology, and maintenance only involves occasional cleaning of the storage tanks and collection pipes to ensure that the rainwater collected is not contaminated. In fact, rainwater harvesting can be achieved by anyone. Installation of gutters is the first step for any building without them, along with a filtration system to ensure that leaves or any other kind of debris do not find their way into the storage tank. Safety precautions include having locking lids or bars to prevent contamination of the stored water and the breeding of mosquitoes. Catchment areas in a city can include paved areas such as car parks, roads and paths, where water can be harvested for several non-drinking purposes. Increasing government support The Indian government has laid out a number of plans concerning harvesting of rainwater and putting it to maximum use. A good example is the ongoing work done by Greater Vishakhapatnam Municipal Corporation (GVMC). The municipality is going to fine households that do not have the mandatory rainwater pits. New apartment projects in several Indian states are now required to be engineered to have rainwater harvesting systems. In many areas, the government is also promoting rainwater harvesting as a means to address the scarcity of water for agriculture. As rainfall is getting visibly scantier, the government is planning to implement special measures and urge residential societies, educational institutions and similar buildings to optimise water
saving and usage. The increased areas of paving and roads is preventing the proper percolation of rainwater, ultimately affecting the water table and causing water bottlenecks in the outskirts. Installation of pits at regular intervals over urbanised localities is a good way to trap this water for better use. The Centre for Science and Environment (CSE) is now promoting the maximum use of rainwater and its harvesting all across the country. It has launched various campaigns to educate people on India’s traditional water harvesting processes. The organisation has gathered all NGOs working in this area under its wings, and is running consultancies to improve the conditions. Rainwater harvesting should be the default code for sustainable households. Builders and architects are getting aware of and implementing the same in their designs. In many areas, buildings into which rainwater harvesting systems have not been integrated are being partially reconstructed to add this vital measure. — The writer is CMD, Maple Shelters
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Perfect synchronisation in your flower beds Amarjeet Singh Baath ...
All gardening enthusiasts look for a colourful display of flowers in their gardens during the winter months. In order to have a winter floral bloom with impressive flower beds it is important to grow flowers having synchronised flowering patterns complimenting flower size and matching colour scheme. This way you will be able to enjoy the floral exuberance for a longer period, Hybrid varieties of Dianthus, Petunia, Phlox, Salvia and Verbena flower for long period than many other winter annuals. In a home garden there are two types of flower beds. First is in front of herbaceous border or along path and the second type is in a sunny location (south-west ) where you can make geometrical pattern of flower beds. Planting patterns Flowering plants should be planted in a descending order of their height in order to give depth to the flower beds. As a combination, Larkspur (blue/pink/white) or Antirrhinum are planted in the background. These are followed by medium sized plants like Phlox (white/ cream/ pink/red/blue) or hybrid variety of Petunia. Low-growing annuals like Alyssum (white / mauve) or Candytuff (white) can be planted near the base of the combination in a flower bed. Pansy with pure colour without blotch can also be planted at the edges of the flower beds. Shade-loving annuals like Salvia, Cineraria or Begoia can make a dull area look colourful. Hollyhock takes long period to bloom but it gives prolong flowering till late summers. It provides an attractive background with its broad green leaves in mix floral beds. In order to have synchronised blooming with other winter annuals it must be sown directly in the flower bed almost a month earlier. Calendula (yellow/ orange) and marigold are easy-growing flowers. Verbena and Dianthus give a mixed effect for a much longer period in the flower beds. Selecting seedlings Gardeners who are novice or don’t have ample time can go for started seedlings. Started seedlings are available in nurseries in trays or small pots which have just started blooming or already in bloom. These are planted directly into the flower beds. This method is preferred as flowers beds do not give an empty look and you know the exact colour of flowers that you are planting in order to have the desired colour scheme. If you have the time and patience to grow seedlings on your own then these should be transplanted at the right time and in the right manner. Too much watering can spoil the young plants and too little can make them wilt. The watering pattern should be maintained perfectly till the time the seedlings are transferred to flower beds and strike roots there. In normal course, seedlings, when grown in compact manner, grow faster upward. Once you realise that a plant has attained the desired height, thinning should be carried out so that the plant gets its natural spread. Shape sense While planting a number of varieties in a combination in your flower beds, you also have to keep an eye on the way each of the varieties spreads. Some plants grow vertically ,while several others grow horizontally. Regular pinching of shoots as well as pruning and giving support to slender stems are some of the methods that you will have to keep applying in order to avoid unruly growth in the flower beds. Pinching stops the growth on the main shoot and develops lateral shoots which form sub-lateral shoots. Pinching should be done with your thumbnail and index finger to develop the plant into a bushy shape. Top-heavy or weak stemmed flowers of i.e Dahlia, Chrysanthemum etc require staking.
Colourful combos Alyssium/Calendula/Salvia. Sweet William/Verbena ( Red and Blue) Brachycome (blue) and Matricaria (yellow) Brachycome (blue) and Dimorphotheca (orange). Sweet William (maroon ) with Matricaria (yellow), Petunia (white) in centre and red and purple on either side.
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Reits, InvITs will need tax sop thrust Tax incentives are key to the success of Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs), a senior Sebi official has said.
In September, market watchdog Sebi had notified the norms for listing of business trust structures, Reits and InvITs, that would help attract more funds in a transparent manner into realty and infrastructure sectors. Both the structures, norms of which were approved by the regulator in August, would get tax incentives. Realty players and investors have been seeking more clarity on the taxation structure for newly-created Reits and InvITs. Barua said there were four levels of taxation involved in both Reits and InvITs, which need to be addressed. “Taxation is involved at four stages — first while structuring and transferring assets to Reits or InvITs; second when they distribute income to its investors; third when they are traded; and fourth time when there is an exit. These are heavy stages so tax issues have to be addressed,” he stated. For both trusts, the minimum initial offer size should be
Rs 250 crore with a public float of at least 25 per cent. The minimum asset base for these trusts to get listed is
Rs 500 crore. To ensure transparency, these trusts would be subject to stringent norms on disclosure as well as related party transactions, Sebi has said. Reits and InvITs are required to make investments either directly or through special purpose vehicles (SPV). In case of publi-private-partnership projects, money can be put in only through SPV.
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DHFL announces 10.15 pc interest rate on strong growth front DHFL, India’s second largest private sector housing finance Company, recently announced a net profit growth of 20 per cent in the first half of the 2014-15 financial year ending September 30, 2014, in comparison to the corresponding period of the previous financial year. The second quarter of the current financial year also witnessed net profit growth of 18 per cent, when compared with the corresponding period of the 2013-14 financial year. The DHFL Board of Directors has declared an interim dividend for the financial year 2014-15 of
Rs 4 per share, which is 40 per cent of the equity share of Rs 10- each fully paid up. DHFL offers home loans to all customer segments across India, retaining its concerted focus on the low and middle income customer segment. Subsequently, DHFL’s average loan ticket size at the portfolio level stands at
Rs 11 lakh. The company’s total customer base is over 4 lakh. In the first half year ending September 30, 2014, DHFL expanded its network strength by 100, taking its points of presence to over 500 locations. DHFL has a large portfolio of products catering to the needs of its customers. The company offers home loan products such as home loan, home extension loan, home improvement loan, plot loans, mortgage loan, leased rental finance and non-residential property loan. DHFL also offers project loans essentially for development of low and middle income housing projects. “In our endeavor to provide enhanced customer benefit, especially in this festive season, we have launched unique and attractive interest rate offerings starting 10.15 per cent for home loans. This will encourage customers across the country to look at home loans favourably, in their pursuit of owning a home,” said Kapil Wadhawan, Chairman and Managing Director, DHFL. TNS
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real issue
Inadequacies in the planned development of Delhi over the past six decades came to the fore at a stakeholders’ conference organised by DDA and DUAC on the subject of simplification of Delhi building by-laws earlier this week. According to a senior Urban Development official, issues pertaining to building bylaws were raised at the meeting. Urban Development Secretary Shankar Aggarwal said that bylaws were being simplified keeping in view the problems being faced in realising the objectives of the Master Plan of Delhi and to meet, among others, the growing demand for housing in the city. Talking about growing chaos on various fronts despite the 1957 Act, Delhi Development Authority (DDA) Vice-Chairman Balwinder Kumar noted that the only two major achievements in the city were the increase in its green cover to over 87,000 acres and the protection of the Lutyens' Zone. The participants strongly urged that the bylaws should enable the construction of high-rises in the national capital in view of the scarcity of land. The Master Plan Delhi-2021 provides for re-development, but no such activity has been allowed in the past over seven years, they pointed out. Re-development can meet the needs of an expanding national capital by up to 40 per cent, they said. DUAC has formulated simplified draft bylaws with the intention of making them user friendly and enabling single window clearances. — PTI
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Room direction and age of inhabitants Madan Gupta Spatu vaastu@tribunemail.com...
A. A bedroom located in southern diraction is good for everybody. South-west direction is good for young couples. North-east is good for aged people and also for children and infants. Rooms in north-west direction are good for girls and guests. Moreover, Southwest is very good for elders and head of the family.
Why north-east is the preferred direction? Q. Why is there so much emphasis on the north-east direction of a house while there are other directions too. Are they useless? — Narider Kukreja A. NE corner is the head portion of a house. This is corner is the main area that leads to success. The energy from the sun enters this way is very important for a house. That is main reason NE corner is kept open and a preferred site.
More area on west side not a good sign Q. Our home has more area on west side. Is it ok according to Vaastu? — Shyam Gopal A. This does not conform to Vastu principles. East and north should have more open space as compared to that on the west and south sides. To combat this, you can opt to cut-off empty/extra area in western direction with a separated compound wall and disconnect it. The western empty backyard should have no connection with your building or be accessible from your original compound wall entry.
Remedy for an uneven plot
A. The plot and construction should necessarily be a perfect square or rectangle. Your plot is an example of adversaries. Change it if you are staying on rent, otherwise try to sell it. For the time being, however, fill up the well and have an overhead tank in the north-west or south-east direction. — The columnist is a Chandigarh-based Vaastu Consultant
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How can a Will be executed? S. C. Vasudeva email your queries to realestate@tribunemail.com Q. I am interested in executing my Will as I am getting old and would like to clearly specify who would be entitled to my self-acquired properties in the event of my death. Would you please give a brief idea as to how and in what manner the Will should be executed? — Satish Prakash A. According to the provisions of Indian Succession Act 1925, a Will is a legal declaration of the intention of the testator with regard to his properties which he desires to give effect to after his death. A Will becomes enforceable only after the death of the testator. A Will has to be executed by the testator by signing the same. It should be attested by two or more witnesses, each of whom should have witnessed the testator sign the Will. Though the registration of a Will is not compulsory, it should be registered so as to create an evidence for the execution of the Will. Will should be sealed and kept in a safe custody and after the death of the testator the executor of the Will can apply for probate. Probate is a copy of a Will certified by the Court and is a conclusive evidence of the genuineness of the Will. Right way to save tax on capital gain *
By investing the amount of capital gain in capital gain bonds; or * By purchasing a residential flat with the amount of capital gain. —
Vijay Kumar
A. Your queries are replied hereunder. The replies given hereunder are based on the assumption that the plot owned by you has been held for more than three years and the amount of capital gain arising on sale thereof is in the nature of long-term capital gain. *
You can save the amount of tax by investing the amount of capital gain towards the acquisition of capital gain tax-saving bonds. The investment has to be made within six months of the date of sale of the plot. I may add that the provisions of the Act require that the investment in such bonds can be made to the extent of
Rs 50 lakh only in a financial year. Thus in case the capital gain earned is up to the said amount, you would not be chargeable to tax on the amount of capital gain tax provided the investment in bonds is made within six months of the date of sale of the plot. *
The capital gain arising on the sale of plot would not be chargeable to tax in case the amount of net consideration (i.e. full value of consideration realised or accruing as a result of sale of plot reduced by any expenditure wholly and exclusively incurred in connection with such sale) is utilised for purchase or construction of a residential house. The purchase has to be effected one year before or within two years after the date of sale. The construction of the house has to be within three years after the date of sale. In case you invest the amount of capital gain arising on the sale of flat for purchase of a residential flat, you will be entitled to claim proportionate exemption for the taxability.
How can I surrender share in ancestral property? Partition in respect of ancestral property was done on October 1, 1980. Will the married daughters get the equal share in this case? —
Ram Pal Singh
A. Your queries are replied hereunder: *
The person surrendering his share in a property can do so by executing a Relinquishment Deed. It should be possible to withdraw the same before an effect is given to such a deed. *
The Hindu Succession Act 1956, was amended w.e.f. September 9, 2005 to provide for a daughter to be considered as a co-parcener and thus entitled to a share in the ancestral property equivalent to a son. As per the facts given in the query the partition of the ancestral property, having taken place much before the amendment, in my opinion the amended law would not be applicable retrospectively and the law prevailing as on the date of partition will have to be applied. On that basis, married daughters should not be entitled to a share in ancestral property as per the provisions of the unamended Act. It may be added that in some states, law on this particular issue had been amended earlier than September 9, 2005, to give a share to the women in such a property. You may, therefore, consult state law on the subject before taking any action in this regard.
Can accommodation charges be added to salary?
A. The perquisite value where accommodation is provided by way of room/rooms in a hotel is required to be computed at lower of following of the two amounts in accordance with provisions of the Rule 3(1) of the Income Tax Rules, 1962: *
As much as 24 per cent of salary paid or payable for the period during which the accommodation is provided in the previous year; or *
Amount of charges paid or payable by employer to the hotel. The figures with regard to your salary not being available in the query, you can work out the perquisite value on the basis of the provisions given hereinabove and ascertain whether the charge made by your employer is in accordance with the above provisions.
Do I fall in NRI category? Q. I have been working in the Merchant Navy for the past 10 years. I had read somewhere that NRIs can't buy agriculture land in India without RBI approval. In this matter can you please advise that whether Merchant Nnavy personnel fall under NRI category for buying agriculture land in India? Please advise me that whether I can buy agriculture land. — Captain Rajiv Singh A. The Foreign Exchange Management Act 1999 defines a person resident in India as under:- n a person residing in India for more than 182 days during the course of the preceding financial year but does not include - (A) a person who has gone out of India or who stays outside India, in either case: (a) for or on taking up employment outside India, or (b) for carrying on outside India a business or vocation outside India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than - (a) for or on taking up employment in India, or (b) for carrying on in India a business or vocation in India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period; *
any person or body corporate registered or incorporated in India, * an office, branch or agency in India owned or controlled by a person resident outside India, *
an office, branch or agency outside India owned or controlled by a person resident in India; It would thus be observed that primarily an Indian would become a non-resident Indian if he has gone out of India for (a) taking up employment outside India; (b) for carrying on a business or vocation outside India; or (c) any other purposes as would indicate his intention to stay outside India for an uncertain period. In case you come in any of the above mentioned categories, you will be treated as a non-resident Indian and will not be able to buy an agricultural land in India. The facts given in the query are silent with regard to the conditions mentioned hereinabove. It is, therefore, not possible to reply to your query as to whether you can buy an agricultural land in India.
Calculating income from house property Q. I have inherited a property from my late brother who had directed to pay Rs .3,000 per month to his widow. Is this amount deductible from the income from property? At present the property has been let out at Rs 10,000 per month. Also please calculate the income from property. The amount of house tax paid for the year 2013-14 was Rs 8,000. There is no other expenditure that has been incurred in this regard. — Krishan Kumar A. Your queries are replied hereunder: *
The deduction in respect of a payment of annual charge on property was allowable up to assessment year 2001-02. The same is not allowable as deduction for the year 2013-14 (assessment year 2014-15). *
On the basis of figures given in the query the income from house property would be computed in the following manner: Gross Annual Letting Value: 1,20,000 Less: House tax paid:8,000 1,12,000 Less: Statutory deduction @ 30% of
Rs 1,12,000: 33,600 Income from house property:78,400
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Golf Course Road is one of the most sought after destination by the super-rich in this city. Options are limited to few select premium buildings by DLF like Magnolia and Aralia, where the minimum budget for apartment starts with
Rs 14 crore. Other preferred options on Golf Course Road are Verandas, with units priced at
Rs 7 crore, and Palm Springs with units priced at Rs 5.5 crore. 
Likewise, the RBI has held on to the current interest rates in favour of safeguarding against further inflationary trends. It will take several more months for the market to get into convincing forward momentum again, so the festive season did not bring the kind of momentum that was hoped for.
Though India is advantageously placed geographically, several regions are seriously affected by lack of usable water. In the years to come, the majority of the world’s population will be living in urban areas. Because of rapid real estate development in our cities, the highest demand for resources such as water is centered there. Moreover, with limited developable land, multi-story residential complexes are being built at a very fast rate. 
“Countries like Singapore and Hong Kong had launched Reits but did not give any tax incentives because of which these did not kick off well. The whole Reits structure is motivated by tax benefit. If it is given, then it will work or else it will not,”" Sebi executive director Ananta Barua said according to a PTI report.
Participants at the meet, including architects, engineers, real estate representatives, urban planners, representatives of housing societies, development agencies and experts, highlighted the haphazard development of the national capital in the time since the enactment of the Delhi Development Act in 1957.
Q. Is there any age-wise specification according to which inhabitants should have a room in a house? —
S.I. Arora
Q. We are living in a colony where the plot is of a hand fan shape and uneven. The entry is also from south. And there is well behind the plot. Can these factors have an ill effect on the health of some inhabitants of the house as over the past few years the women of our family have had health problems. If it is so then kindly suggest some remedies. —
Santokh Singh
Q. I own a small flat which is self-occupied for the past 20 years. I also own a plot on which one can build, approximately 6,000 sq. ft which is too large for me. I intend selling this plot. Can I save the capital gain tax if I follow any of these two options:
Q. What are the legal formalities for surrendering one's share in ancestral, joint family and father's self-acquired properties? Can such surrendering be withdrawn? If so, when and how? 
Q. I had joined an organisation in Chandigarh in the last financial year. Due to the provision of furnished accommodation pending, I was made to stay in a hotel for a period of about three months. The amount of perquisite value of such accommodation has been added to my salary which is the total charge paid by the company to the hotel. Please advise me if the perquisite value as computed by the company is correct.