Gurgaon: The destination for luxury living

Living and Dining Room at Ireo Gurgaon Hills

Living and Dining Room at Ireo Gurgaon Hills

Gurgaon’s market has gradually moved towards the luxury segment. While it is now a destination for luxury living it has also transformed into an investors’ paradise. According to realtors and developers in the region, 70 per cent buyers in Gurgaon are investors as opposed to 30 per cent being the end users.

Sanjay Sharma, MD, Qubrex says, “Realty market in Gurgaon took off after DLF came up with high-end offices around 2001-2002. Since then, it has delivered high returns on investments. Proximity to the airport and national highway, along with excellent connectivity provided by the MG Road and the recently built Metro has been key drivers for the city.”

There are many locations, where one can find premium properties that have potential for further appreciation in capital values. “In Gurgaon, one should invest in Golf course Road, Golf Course Extension Road, Sohna Road, NH8 and Dwarka Expressway,” says Prashan Agarwal, Co-founder, PropTiger.com. Here is a snapshot of some of the famous upcoming areas:

Read more: Magic Bricks

Realty regulator will keep builders on a tight leash

A new law to give home buyers a better deal aims to ensure builders sell residential property on the basis of carpet area instead of ambiguous terms like “super area” while a regulator will ensure housing projects declare the status of important civic clearances.

The Real Estate (Regulation and Development) Bill, which the government plans to bring to Parliament in the budget session, has been framed under provisions dealing with property transactions in the concurrent list of the Constitution that applies to states, making the proposed legislation more than a model law.

In a bid to try and make sure developers stick to timelines, the proposed law states that realty players will have to park 70% of funds in a particular bank account so that resources are not diverted and buyers are not left in the lurch.

Read more: The Times of India

Outer Delhi may grow vertically

January 28, 2013

The skyline in outer Delhi may change in the years ahead if the government approves a plan to let private developers build high rise condomimums, spacious 15-17 story housing complexes with modern facilities. To ensure that development is uniform and planned, the government is set to finalise rules for “land pooling” which would ensure that there is no indiscriminate building spree.

The government has sought views from private developers to suggest what should be the minimum project size — 50 and 100 acres or less than that — to enable a builder to get approval to start a project. The developers say that they have been sitting on nearly 20,000 acres of land that they have bought from farmers over a decade ago in areas such as Dhichaon Kalan, Chhawla, Baprola, Kangan Hedi and others.

The Union urban development ministry recently held a meeting of real estate bodies and Delhi Development Authority officials to fast-track the process. “We will soon send our replies on what should be the land parcels. There are two views of our members. While the big players are in favour of 50 and 100 acre norms small players are pushing to reduce the size. At present, we are consulting everyone so that there is an unanimous view,” said a senior official of a body representing private builders.

Ministry officials said they expect the “land pooling” policy to be approved by April, around the same time that the DDA finalizes Delhi’s development plan for 2021. Restricting licences to 50 acres and 100 acre parcels would ensure that the residential complexes have necessary social infrastructure such as schools, community facilities, local shopping complexes, officials said.

Sources sad while many major developers have already bought large chunks of lands in Outer Delhi around the planned urban extension road connecting NH-8 with NH-10 and NH-1. Property consultants say that prices have already shown an uptrend in Outer Delhi in anticipation of the government allowing multi-story projects in the area.

The government says that allowing high rise complexes would help calm prices. In case the development fails to bring down property prices in Delhi and in its suburbs, DDA would largely be blamed since the authority has failed to finalize the land pooling policy for more than a decade. The authority did not allow such development since it was the main developer in the national capital. It started taking up the policy only after realizing that land acquisition was becoming difficult. The authority had acquired most of the land in South Delhi as late as 1983.

Haryana govt issue directions on sale and purchase of property

The Haryana Revenue and Disaster Management Department has issued directions regarding sale and purchase of property in authorised colonies.

An official spokesman today said orders of Punjab and Haryana High Court dated November 1, 2012, passed in a Civil Writ Petition of 2012 in this regard have been sent through a written communication to all Divisional Commissioners and Deputy Commissioners of the state.

He said they have been asked to prepare a list of unauthorised colonies and raise awareness among general public about it. Public notices would be published in two vernacular language newspapers in the concerned areas.

Pamphlets would be displayed at important places like Tehsil or Sub Division or district Offices, schools, community centres and bus stands to inform general public about unauthorised colonies, he said.

He said Sub Registrars and Joint Sub Registrars would be intimated in clear terms that in case the land of unauthorised colonies is registered, they would face strict departmental or criminal action.

Read more: Financial Express

Tax rebate for repair of property to come down from 15 pc to 10 pc

The civic administration has proposed to discontinue with the 42-year-old practice of giving 15 per cent rebate to residential and commercial property owners for repair of their properties and make it 10 per cent as per the state government rule.

In a proposal tabled before the Legal Committee, the civic administration said the PMC had taken a decision long back to increase the rebate on annual ratable value of property tax from 10 to 15 per cent for repair of property. “The decision was taken in the backdrop of floods in the city after the collapse of Panshet dam. The decision was implemented in 1971,” it said.

PMC officials said the PMC had sent the decision of the civic body to the state government for approval but it was not approved till date and still the civic administration was implementing it. “The state Assessor and Collector has objected to its implementation and sought certain clarification on it while demanding to follow the state government taxation rule that restricts the rebate to 10 per cent which is applicable across the state,” he said, adding that the PMC was the only civic body in the state that had increased the rebate for repair of property from 10 to 15 per cent.

Read more: Indian Express

Realtors see rise in demand for homes

Slump-hit realtors have something to cheer about with Reserve Bank of India injecting Rs 18,000 crore of liquidity. Developers say the move will cut home loan rates and boost demand significantly.

RBI has cut the short-term lending rate called repo by 0.25 per cent to 7.75 per cent. This means that it will reduce the borrowing cost for individuals and corporate. RBI also cut Cash Reserve Ratio by similar margin to four per cent. The reduction, which is the portion of deposits that banks have to park with RBI, would improve the availability of funds.

Analysts said real estate players have been seeing inventory pile up and unfinished projects owing to high borrowing costs. Individual buyers too have been fence sitting due to high rates and weak economic sentiments.

According to Knight and Frank estimate, residential sector launches have declined 30 per cent in 2012 compared to 7 per cent in 2011. Banks’ credit exposure to developers has fallen from its peak growth rate of 23.21 per cent in June 2011 to 3.88 per cent as per the latest reported data on Sep-2012.

Developers are cautious of launching projects as the gap between the launch and the absorption numbers reduced to 32,000 units in 2012 compared to 82,000 and 94,000 units in 2010 and 2011, respectively.

Read more: Business Line

Infrastructure

A Private Metro Ride for Gurgaon

Edited excerpts from an interview with Sanjiv Rai, managing director, Rapid MetroRail Gurgaon Limited (RMGL)

Tell us how much work has been accomplished in the case of Gurgaon’s first 5.1 km private Metro

Work on the track of Rapid MetroRail Gurgaon Limited (RMGL) between Sikandarpur and DLF Phase III is complete and operations will start in April. The work was delayed by about two months due to adverse weather conditions and land acquisition issues. We wish to make sure that the system is safe for public operation. The Rapid Metro is being constructed at a cost of Rs 1,088 crore. We will be spending Rs 2143 crore in the second phase. The connection will have six stations – Sikandarpur, DLF phase II, Belvedere Towers, Gateway Towers, Moulsari Avenue and DLF phase III. Two of the five trains have arrived and the remaining three are expected by March first week. The carrying capacity is pegged at two lakh passengers a day. We expect 90,000 passengers to take the train after a year of starting operations.

Hindustan Times (Delhi edition) (HT Estates, Page 14)

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