In order to equip you with the best of real estate information Property for Sale Magazine has invited Mr. Chetan Kapur, Founder and Director of Golden Bricks – Real Estate Services. With mammoth expertise and knowledge he will inform and guide you to make better investment decisions. Golden Bricks is one of the leading real estate consultant based in Gurgaon. With over 20 years of experience it operates in residential, retail and commercial sectors in the Guragon region and represents some of the most prominent projects and developers. The company has successfully handled over 1250 projects and effected possession of more than 450 of them. The company offers services like ‘my Home’, ‘Invest+’, ‘Wealth+’ uniquely designed to cater to the needs of consumers.
Property for Sale Magazine is privileged to have a regular column on different aspects of real estate industry, finance and investment from the desk of Mr. Chetan Kapur.
The impact of sealing drive in major retail markets of Delhi has created a great deal of insecurity and anxiety for small businesses & retail business owners. The sealing is being executed at most prime markets in Delhi due to non payments of conversion charges- which is under the provision of Master Plan 2021.
AAP (Aam Admi Party) led Delhi government is trying its level best to get the bill pass against sealing. Meanwhile, CAIT (Confederation of All India Traders) has called for a two day bandh in markets of Connaught Place, Chadni Chowk, Karol Bagh, Kamla Nagar, Sadat bazaar, Moti Nagar and many other prominent market places of Delhi. The bandh would massively affect shop owners, around 2 lakh small traders, around 2000 premises and local residents. It would lead businesses to crumble impacting traders for whom it is their primary source of income. This would also be a setback for the families of traders and people employed with them.
The root cause of sealing drive is non-payment of conversion charges for unorganized and unapproved retail premises and buildings offering shops in basements, mezzanine, second floor etc. Majority of these retail markets in Delhi exist for the past 40-50 years, and since then the markets have expanded around the buildings, though most of the buildings were unorganized and unauthorized.
Real Estate Expert & Columnist – “Chetan Kapur, MD; Golden Bricks“A Real Estate Advisory Firm, Gives Us His Inputs About The Impact Of The Sealing Drive In Delhi & It’s Solution For A Real Estate Investor – Property For Sale Magazine
The only way these shops can stay safe from the fate of sealing is by keeping authorities like DDA, Fire Department, Health and Safety etc. notified and informed on any development. Local markets association should take help from governments and redevelop the whole markets into organized markets as they did in DDA (Delhi Development Authority) markets and high street retail markets of Gurugram and NCR.
My advice for small business owners and shopkeepers is to carefully consider and read all legal documents and licenses for commercial activity before buying or leasing. They should also make investments in new opportunities like approved high street retail shop markets available in Gurugram. Gurugram is a city with the maximum HNI (High Net Worth) residents who have high purchasing power. Moreover, most of the renowned retail brands have already opened their second or third outlet here. The shops are available at competitive prices starting from only 25 lakhs and can go up to 2-3 crores respectively. The shops are ready to move in or are under construction available under easy payment plans. Look ahead, be organized and don’t let anything make you lose your income and business.
In order to equip you with the best of real estate information Property for Sale Magazine has invited Mr. Chetan Kapur, Founder and Director of Golden Bricks-Real Estate Services. With mammoth expertise and knowledge he will inform and guide you to make better investment decisions. Golden Bricks is one of the leading real estate consultant based in Gurgaon. With over 20 years of experience it operates in residential, retail and commercial sectors in the Guragon region and represents some of the most prominent projects and developers. The company has successfully handled over 1250 projects and effected possession of more than 450 of them. The company offers services like ‘my Home’, ‘Invest+’, ‘Wealth+’ uniquely designed to cater to the needs of consumers.
Property for Sale Magazine is privileged to have a regular column on different aspects of real estate industry, finance and investment from the desk of Mr. Chetan Kapur. For this issue he sheds light on the complete aspect of Rental Housing.
Indian cities are continuously growing in terms of population and an increasing population has led to more pressure on the housing markets. This population mostly includes migrant workers, students, and single working women among others. It is also a fact that developing cities have always attracted working populations from the surrounding areas. So, the rental property market is the biggest option for this growing population. A healthy rental housing scenario offers less financial strain on the people compared to other options.
This is a trend we see in cities the world over, where the rental market thrives even when end-user housing sales are constrained due to macroeconomic factors.
How rental housing helps in the growth of the economy?
Urban planners have always believed that in the absence of rental housing people would be forced to occupy slum belts and other kind of irregular housing structures which would pose a challenge for the urban development and law and order situation due to increased crime rates. Moreover, a city which is not able to meet up to the requirements of rental housing will never be able to maintain its skilled manpower. Migrating work force will opt for other cities in this case which offer a good stock of rental housing. A good rental housing policy tends to boost the influx of skilled manpower in the city.
Affordable rental housing must always be encouraged in a city which seeks to grow and prosper. A city’s town planning authorities and state governments alike must take heed of the fact that growth in the rental housing sector will push the economy ahead.
Taking a cue from the same in the year 2016, the government announced its National Urban Rental Housing Policy which intends to address the need of homes for people migrating from rural areas to urban areas. The policy will benefit property owners or landlords through fiscal incentives who have so far stayed away from renting out their properties.
If the policy becomes a reality then we will soon witness massive investment in localities which have the potential to provide the rental housing stock. It will give a boost to the construction and ancillary industries as well.
The bright prospect of growth in rental housing can be considered as a worthy investment portfolio. The benefits of owning rental properties are as vast as you desires and long term vision. Real Estate properties are available in different forms which include residential housing, shopping centers, warehouses, office building etc. which can be considered as prospective options to invest.
What are the benefits of owning a rental property for an investor?
Rental property investments are generally capital intensive and dependent on cash-flow. In contrast to the equity markets rental property investments are more stable, hedges against inflation and have tax benefits. Rental property gives investors with the benefit of steady stream of income. The return itself is quite attractive as you have a good chunk of money after a time period. Moreover the property owner also benefits from the capital appreciation of property value.
A rental property offers taxation benefits. You can deduct certain expenses from your income reducing the taxes you owe. Deductions can include interest, property taxes, insurance, utility bills, maintenance/upgrades and property management fees.
There is no denying from the fact that owning multiple rental properties does not hinders your regular job routine and helps you avail the benefits of passive rental income. Rental properties keep your pockets filled even during a time of economic emergency or failure. Finally, during the old age a rental property can give you a good amount of money which comes in the form of capital appreciation, when you sell a rental property.
Mr. Chetan Kapur | Golden Bricks-Real Estate Services
Things you should consider before investing in a rental property.
Yes, though the benefits of investing in rental property are worthwhile but, you must consider some important aspects before buying a property for giving it on rent. Any kind of property must be considered for investing by analyzing the location, investment amount, capital appreciation, resale value etc.
Location is one of the most important aspects to consider while investing. If you are investing in your city then it becomes quite easy for you to keep a check of your properties. On the contrary investing in other cities with high rental rates can give you better returns. The choice should be made according to one’s financial status and life situations. A good location also attracts tenants who pay their rent on time and are also willing to pay a premium for good location.
It has been witnessed that with high influx of global franchises many property owners are letting their properties to brands. These brands range from coffee shops, pizza outlets, etc. If you choose this route, apart from rent you may even ask for a profit share every month. Of course, different brands function differently, depending upon your negotiations with them, you can either decide on the monthly rent or earn by the profit-sharing basis.
One must always be prepared for urgent repairs and maintenances. A budget should be set aside to pay for the same. The reason behind this is that in your troubled times you can utilize this money for your property.
Besides the above mentioned points it must also be clear in your mind to have a proper exit plan. An exit plan helps you to gain maximum benefits out of your property. So what is your plan? Do you want to keep your rental property for another 20 years or are you prepared to sell it in the next appreciation phase. A diligent decision should be made keeping in mind your short term or long term financial goals.
Clearing the way for completion of the long-delayed Dwarka Expressway, the Punjab and Haryana High Court on Tuesday disposed off a petition against allotment of plots to the oustees who do not have proper property documents.
The Haryana Urban Development Authority (HUDA) now aims to give the possession of plots by April 10.
The case relates to a petition filed in September last year by Satyendra Singh, one of the land owner whose land was acquired for developing Sector 110A in Gurugram to rehabilitate the Dwarka Expressway oustees, demanding alternative plot.
Singh alleged that genuine oustees have been denied alternative plots, while the Haryana Urban Development Authority (HUDA) had made dubious allotment of alternative plots to general power of attorney (GPA) and special power of attorney (SPA) holders.
HUDA administrator Yashpal Yadav feels with this judgement, all the roadblocks for the construction of Dwarka Expressway have been removed. “We will now allocate the plots and give possession before April 10,” he said.
The oustees will have six months to vacate the structures coming in the way of the expressway, he informed.
“This is a positive development as allotment to the GPA and SPA holders was one of the major concerns hindering the completion of Dwarka Expressway,” said Pradip Rahi, general-secretary, DXP Welfare Association, a body which represents home buyers from over 20 housing projects on Dwarka Expressway.
The association has also submitted an application seeking appointment with minister of road transport, highways & shipping, Nitin Gadkari to discuss the Dwarka Expressway issue.
HUDA had allotted 269 plots to expressway oustees through draw of lots between July and August last year, which included around 60 general power of attorney (GPA) and special power of attorney (SPA) holders from a pool of 465 applicants.
However, the Punjab and Haryana high court in October stayed the issue of allotment letters to oustees, who did not have original title deeds, while hearing a petition filed by Singh.
The high court had directed the HUDA to hear his plea on March 16 and settle the case as per the suitability of the applicant.
Around 14.5 km of the 18-km Dwarka Expressway, also called the Northern Peripheral Road (NPR), being constructed by HUDA, has already been built. The remaining portions in New Palam Vihar and Kherki Daula were stuck due to delay in rehabilitation of the oustees.
Huda has already given physical possession of alternative plots to oustees of Dwarka Expressway from Khedki Daula in Sector 37-C. And with the latest development, the possession to the oustees in Sector 110A will also be given.
NPR will connect Dwarka in Delhi and NH-8 near Kherki Daula in Gurgaon and comprise of many residential and commercial projects which are stuck in limbo at present.
Banks, including the country’s largest lender State Bank of India, have signalled reduction of their retail lending rates over the weekend by slashing their Marginal Cost of Funds based lending rate (MCLR). The reduction in MCLR has pulled lending rates to multi-year lows.
After Prime Minister Narendra Modi’s directive to banks on New Year’s address to act in “public interest” by focusing more on aiding the poor, lower middle class, middle class and senior citizens, several banks announced steep cuts in borrowing rates.
A home loan of Rs 75 lakh which was earlier available at 9.1%, will now be available at 8.6%. Apart from SBI, several other banks including Union Bank of India and the Punjab National Bank have also decide to cut down rates.
Here is a list of banks and their new home loan interest rate:
SBI home loan interest rate: 8% from 8.9%
IDBI Bank reduced its MCLR by 15 basis points to 9.15 per cent.
Union Bank home loan interest rate: 8.65% from 9.3%
IDBI Bank home loan interest rate: 9.15% from 9.3%
SBT home loan interest rate: 9.2% from 9.45%
IOB home loan interest rate: 9.15% from 9.5%
PNB home loan interest rate: 8.45% from 9.15%
The steep cut has been facilitated by the surge in deposits during the demonetisation period, which led to a substantial fall in cost of funds for lenders. Banks have mobilised an estimated Rs 14.9 lakh crore of deposits following demonetisation during the last 50 days.
However, should the current round of reduction of lending rates, be the only criteria to prompt you for home buying ?
No, “Interest rates is one of the factors and probably the most important one to consider while taking a loan. However, there are other things that are important to consider such as spread and processing fees that you should look for while availing a loan. These factors can have a considerable effect on your outflows,” Adhil Shetty, CEO, Bankbazaar.com.
Spread is a percentage added to the loan on top of the minimum rate. This is usually in the range of 0.25-0.5 per cent However, there might be special schemes or offers where the spread of the loan is 0%. The spread is charged at the discretion of the bank and usually remains the same throughout the loan tenor unlike the interest, which is volatile and would change at frequent intervals to reflect the change in repo rates and market conditions. “The lower the spread, the better. Select the lender with the lowest spread as the market forces and regulatorypolicies would bring the rates at par eventually, however the spread would remain constant,” says Shetty.
The next important criteria are the processing fees and repayment terms. The terms and conditions pertaining to the repayment of loans depend on the type of loan and vary from lender to lender. “Potential borrowers must clarify the terms related to settlement/foreclosing the outstanding amount, transferring the balance to another lender’s account, prepaying a part or full amount of home loan, and other things, before finalizing a lender. There are also processing and legal fees associated with home loan approval and disbursal. Make sure you understand them well before applying,” Shetty advises.
But with the government’s announcement of rebate on lending rates along with the banks providing rate cut cushion to the public, affordable housing segment is the biggest gainer of all.
Property For Sale Magazine gets a personal Interaction with the Two Dynamic Entrepreneurs who are jointly running one of the fastest growing Real Estate Companies in North India in current times :- The Bhutani Group – Also known as the Promotors of Alphathum, a newly launched Commercial / IT Space Project on Noida Expressway which has received a phenomenal response and have turned heads of multiple industry experts who didn’t see / rather undervalued the potential of Growth & Demand for commercial projects in NCR region, specifically Noida Expressway. Words by – PFS Magazine Editorial Team
Residential real estate has seen the worst two years in the past 3 decades and has come down almost 40% of its market cap value. Hence free markets investments also known as second home investments have literally come to a steady halt. Real time consumers and buyers are looking at ready to move in options and with easy flowing inventory in the current market the newly launched projects are facing issue selling their inventory to new buyers / investors, therefore we see low growth in the residential sector for the next 3-4 years.
Fortunately, in the case of Commercial / IT Space the scenario is quite opposite. With investments coming in from all around the world and easy FDI norms, commercial real estate is seeing one of the best booms in the past 7 years. The demand for IT space / Office & commercial space is sky rocketing. According to the JLL report for the year 2015, India saw literally 87% absorption rate for all commercial / IT Real Estate & North India was a steady 41%. Hence creating a fact that the Demand is high and Supply for good properties are extremely low.
Using the current factors in their benefit, Bhutani group has recently launched one of the Biggest Commercial / IT Development project on Noida Expressway & plan to deliver one of the finest project in Delhi NCR. To know more about the same, we got in an interview with the two entrepreneurs behind the group, Aashish Bhutani & Sanchit Bhutani.
Q1. Tell us a little about the History of Bhutani Group?
Answer – Ashish Bhutani
Backed by a decade’s worth of experience and an abundance of expertise, Bhutani Group has pioneered the conceptualization and execution of upscale real estate projects in the retail, commercial and residential space. Adding to the array of services offered, it also sees the project through each stage right from site acquisition, designing and development to construction, marketing and sales.
In a very short span of time the Group has left strong footprints in all spectrum of real estate development, running several projects across Delhi NCR and has done so by assuring its clients and business partners a sense of utmost quality, timely deliveries and reliability.
We have some of the best premium office spaces in our portfolio like :-
1) WORLD SQUARE MALL: – Mall cum multiplex at Mohan Nagar ,Ghaziabad
2) I-THUM PROJECT :- IT/ITES SPACE , SECTOR-62,Noida
8) PARMESH BUSINESS CENTRE II: –Karkardooma, Delhi.
9) Alphathum: mixed land use project in Sector-90,Noida
Q2. Do you think Commercial / IT Spaces will still be in demand 3 years down the line?
Answer – Ashish Bhutani
As they say, “best investment on Earth is Earth”. The real estate sector may be sluggish for the past few years, however, I can assure you one thing never changes: The right product at the right size and premium quality always sells. And in todays market commercial property even more so.
The demand will increase multifold in the coming years; in fact supply won’t be able to keep up with demand, as we see whats happening currently in bangalore. With the GST bill getting the nod in the parliament, we will see a lot of companies coming into India, and with the prices of office spaces sky rocketing in Delhi, the entire focus will shift to Noida. Apart from these the way e commerce companies and mobile phone companies are expanding; the developers will have to propel the construction at an astounding rate to be able to accommodate them in time!
Q3. Are you focusing on Investors or End Users ?
Answer – Sanchit Bhuani
Both, If you are planning to invest in real estate then you should always prefer a company/builder with fair past execution track record, strong balance sheet, sufficient land bank and a company with ability to generate strong cash flows. Do your homework well
Q4. Alphathum has received a Phenomenal Response, tell us a little bit about this project & Its uniqueness?
Answer – Ashish Bhutani
Business leaders are now investing in world-class talent and the technology to empower them. We understand this need and have strived to create an environment that’s designed to stimulate collaboration, flexibility and innovative thinking. So we have taken a holistic approach. ALPHATHUM is a lifestyle oriented office complex, these three high-rise towers will be equipped with sky gardens, specially designed break out and break away areas, longest infinity pool, automated cark park system and climatically responsive architecture.
There is always demand for well-managed, efficient and premium office spaces. We are located at Sector 90, Noida, which has an established and well-planned residential areas, commercial development, universities and excellent connectivity to Delhi. The only strategy we follow is maintaining a great pace of construction which has helped us receive tremendous positive response from the market. Projecting the accomplished landmark of construction has also helped us in positioning our brand recall. Two floors have already been leased out by one of the biggest establishments in our country.
Come to Alphathum to be the best you can…
Q5. If we are correct, you both are brothers, we are sure many of our readers would like to know how do you both complement each other. Are you handling different scopes of works and departments?
Answer Sanchit Bhutani
Yes and that’s why we complement each other perfectly! Mr. Ashish handles Sales, Strategy and Marketing and I do what I am good at i.e Commercial, CRM & Finance.
Q6. Low Rental Values for IT Space plays a very important role for large corporates and SME’s, many major firms like Accenture, MetLife, HCL, Infosys, KPMG, TCS have already started operations on Noida Expressway and are reaping the benefits of low rental but don’t you think that the rentals values will shoot up drastically when the demands goes up and end up eating the gap between Noida & Gurgaon, hence lowering volume of business and demand?
The average rental in Gurgaon is 120/sqft whereas on Noida expressway its 45/sqft
To answer your question, it will undoubtedly go up, but the difference in the infrastructure between Noida and gurgaon is substantial. Large corporates are not just moving to noida because of low rentals, but also because of the overall package Noida has to offer! All the major companies who have a good vision are shifting their base to Noida.
From investment point of view, along with location, many points have to be kept in consideration such as infrastructure, connectivity, quality of living, demand & supply etc.
The close proximation to South Delhi via dnd which only takes 20 minutes in traffic and central delhi which takes a maximum of 25 minutes in peak hours! is also a major factor for corporates moving out here.
When i spoke to a CFO of a major corporate who shifted their base to Noida his exact words were “Most of our employees reside in Noida due to affordable housing rentals, just because we reside in gurgaon it was not fair on our part to be selfish and keep our base there, for an organisation to grow it needs to put its employees first, their travel time is reduced substantially and we have experienced an increase in their output. As far as airport proximity is concerned it takes us lesser time to reach the airport from Noida than Gurgaon due to the traffic conditions there.”
Corporate occupier demand for office space is expected to continue to grow in the forthcoming months. Expansion and consolidation strategies of corporate firms will continue to be in Greenfield projects and pre-committed space in under construction projects. Occupiers will evaluate their office space requirements on the basis of infrastructure development and cost effective investment-grade office space. Although its current supply of office space is less than half that of Gurgaon, a relatively strong development pipeline in Noida could propel the market size to over 60 per cent of Gurgaon in the next 3-4 years.
IT and ITES companies, which occupy more than three-fourths of the total office space in Noida, say factors such as lower rentals, planned infrastructure and availability of large parcels of land are driving the appeal of this suburban market. The potential to expand for them is unlimited which is also one of the key things that is driving large corporates in this market.
This month, BPO player e4e established a new facility at Noida — its first centre in Northern India — with an overall capacity of 700 seats. BPO major EXL has leased an additional 80,000 sq.ft of space in an SEZ in Noida. Last quarter, European IT-enabled business service provider Steria expanded its operations by setting up a new centre at Greater Noida to offer Remote Infrastructure Management services.
“We are now seeing quality supply flow into the Noida market. In certain cases, companies looking to set up campuses are also coming to Noida. The campus model does not utilise the entire FSI, and since the development tends to be more horizontally spread, the availability of cheaper land becomes critical.
Demand for prime office space in the NCR continues to be focused on the peripheral micro-markets owing to the abundant availability of cost-effective space. In the short to medium term, we can expect rentals in key markets to either remain stable or accelerate slightly. Overall, the prime office market across India’s key cities witnessed a recovery in Q2 2016, with over 14 million sq ft of investment-grade office space being absorbed within the first half of the year.
Q7. Is Bhutani Group planning any new Projects currently?
Answer – Sanchit Bhutani
No, as we firmly believe in focussing on one project at a time and then move on to next after that. That’s our philosophy!
Rajya Sabha passes the bill, which will bring in much needed transparency in the sector and empower home buyers.
Anuj Puri, Chairman & Country Head, JLL India
The passing of the long-pending Real Estate Regulatory Bill, which was being hotly debated and second-guessed for far too long, is an unequivocal victory for the Indian real estate sector. Its enactment as a law will almost single-handedly revamp the way this sector works across the board, from developers to end-users and investors, to lending institutions and government agencies involved in the buying and selling of property. It is by far the most decisive step the sector has taken towards transparency and reaching towards the kind of standardized processes, procedures and accountability guidelines that the industry requires to progress.
In December 2015, several amendments to the bill suggested by a select committee of Rajya Sabha had been accepted by the Union Cabinet. The amended bill has now become a full-fledged law and paved the way to setting up a real estate regulator.
The real estate industry welcomes the major reform that promises to bring in much-needed transparency and accountability to the rather opaque sector. It will create a much-needed consumer right protection umbrella for buyers of real estate, thereby increasing consumer confidence as well as creating lasting developer brands strong on quality and timely delivery of their projects.
As there will be strict punishment for errant developers as well as fines for project delays and faster redressal to consumer complaints, the problem of unscrupulous elements in the industry will be addressed. Norms on size of projects had been relaxed from 1,000 sqm to 500 sqm, and further reduction in size can be bought under the purview of the regulator by state governments.
A single-window clearance is needed now, without which there may be cases where bona-fide delays by developers may still result in an unfavourable penalty. The time taken to get many environmental, state-level and municipal-level clearances have afflicted developers for long. Without ensuring that the approval process is not delayed by civic agencies’ inaction or setting up a single-window system, the regulator may inadvertently add another layer to the longer processes already delaying projects.
The central government, on its part, has been working to streamline approvals as part of its focus on ‘ease of doing business’ and digitisation to achieve better transparency. This law will reduce volatility seen in this sector and build the trust deficit between both stakeholders – builders and buyers. RERA will provide a positive impetus towards achieving the housing dream while ensuring a level-playing field for developers and buyers.
With real estate having linkages to the largest number of industries, the incumbent government has succeeded against various odds and given Indian real estate its most valuable card. The bill is a verdict to end the age of information asymmetry, lack of accountability and unwarranted project delays, and marks the beginning of rising transparency, liquidation of assets – and, importantly, positive sentiment.
Mr. Manoj Gaur, President CREDAI NCR & MD, Gaursons India Ltd. said, “The need for real estate bill has been felt since long time in this unorganized sector. This is an important development towards the regulation of realty sector and to provide relief to the home-buyers. The amendments which were made to the bill last year aimed to promote transparency, greater accountability, protection of home-buyers & investors, and efficient working in the sector. The passage of bill will also result in authentic players remaining in the market and non-credible ones exiting due to stringent checks that would be brought by the bill. But it is also important that thebill needs to be a balanced one which is agreed upon by both buyers as well as builders. It is important to fix the accountability of approving authorities. This is important step towards avoiding delays. Bringing government agencies and authorities under its ambit would be beneficial to developers too. This would ensure that there will be a dedicated authority to deal with all the grievances. Overall, the bill once implemented will boost customer confidence and change the complete gamut of real estate workings”.
“We hail the budget speech presented by Hon Finance Minister, Mr. Arun Jaitly. The budget is pragmatic, wide-ranging and inclusive given the emphasis on infrastructure Development” Puraskar Thadani | Publisher & Editor | Property For Sale Magazine
The Budget clearly lays focus on key areas of core sector growth, inclusion, fiscal far-sightedness and tax streamlining. We sincerely applaud the decisions made to boost the sector specially for affordable category.
Major push for the first time home buyers in the form of deduction for additional interest of Rs. 50,000 per annum for loans up to Rs. 35 lakh. Raise of HRA upto 60000 is really commendable and would be directly favourable for middle income group.
With giving 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019. Also, Removal of Dividend Distribution Tax (DDT) would pave the path of reality of REITs. Another one the exemption of service tax on construction of affordable houses up to 60 sq. Metres. These reforms will surely help the investors and developers.
However, we were expecting to get an infrastructure status in the budget. This would have allowed the sector reap some more benefits in terms of funding.
Supertech Ltd. has come up with an affordable group housing project in South Of Gurgaon.
Working under the inspiration of Prime Minister’s vision ‘Housing For All 2022”, Supertech Limited, India’s leading real estate developer, has launched a Special Housing Scheme for Serving and Retired Government Employees called Officer’s Enclave in Sector-2, South Of Gurgaon (Sohna), Gurgaon. The scheme will to cater to the housing demands of the Government officials at below the market rates. The price of 2 & 3 BHK apartments and 3BHK independent floors is ranged between Rs. 33 lacs to Rs. 46.61 lacs.
Supertech is the first real estate developer in Gurgaon to come with up with a Special Housing Scheme for the Government officials who have been serving or served our Nation. The objective of the scheme is to provide affordable housing to the government sector at a price which they can afford. The allotment of the units at Officer’s Enclave will be done on first-cum-first basis; the offer of application will start from January 15, ’16 and end on February 7, ’16.
Officer’s Enclave, the affordable group housing project, is a part of 140 acre integrated township, Supertech Hill Town. The scheme will have around 1000 units of various categories – 2BHK (958 sq. ft.) and 3 BHK (1345 sq. ft.) apartments in the high rise buildings and 3 BHK independent floors (1375 sq. ft.). The price of the units is Rs. 33 lacs for 2BHK apartment and Rs. 45 lacs for 3BHK apartment in the high rise building and Rs. 46.61 lacs for an independent floor. The pricing of the group housing project is being specially designed after analyzing the purchasing power of the Government officials.
On the announcement of the project and its scheme, Mr. R. K Arora, Chairman, Supertech Limited said, “To bring in more smiles, Supertech has endorsed our honorable Prime Minister’s vision of ‘Housing For All by 2022’. We had earlier launched affordable home concept like ‘Roti, Kapda aur Eco Village’, which catered to the housing needs of masses in Noida Extension at very attractive prices. This new endeavor is a special one and very close to our heart – affordable homes to the people who have spent their lives serving the interests of the nation. I feel proud to launch this initiative aimed to provide an unbelievable residential solution to the government employees as an acknowledgement towards their contribution to the country”.
“Supertech has always launched its projects after analyzing the demand of a particular market. Noida, a few years back had a great demand for affordable housing. Seeing this demand, we had successfully launched a series of affordable housing projects in Noida Extension. South Of Gurgaon, too has a huge potential for affordable housing which is untapped so far. Studying this need for affordable prices, we have come up with a scheme priced below the market rates, which has not been offered so far. The price of the project is designed keeping in mind the purchasing power of the government officials”, said Mr. Mohit Arora, Managing Director, Supertech Limited.
Officer’s Enclave is enriched with all ultra modern facilities and possesses great connectivity with commercial hubs in Sector- 48 & 49, Gurgaon, 40mins drive from International airport and well connected with major expressways and Metro service. The project is close to reputed educational institutions like KR Mangalam University, GD Goenka World School, excellent healthcare facilities like Medanta Medicity, entertainment centre.
About South Of Gurgaon
South Of Gurgaon is the southern end of Gurgoan i.e. Sohna, which boasts of natural beauty being amidst the serene Aravali Hills with already developed basic infrastructure. South Of Gurgaon is the next hottest yet affordable real estate destinations of NCR as the property prices are as low as half of the prevailing prices in the Centre of Gurgaon. The region already functional educational institutions like Ryan International School, KR Mangalam University, GD Goenka World School, DPS, JK Business School, etc., luxury hotels like Fortune, Park Plaza, Westin Resort, etc., healthcare centres like Max Hospital, Medicity, Fortis Hospital, etc. and retail outlets like Big Bazaar, Shoppers’ Stop and many more, within short driveable distance.
The main advantage of ‘South of Gurgaon’ is its location as it is away from the hustle bustle of the main Gurgaon city while being just 20 minutes drive from main commercial hubs like Cyber City and Golf Course Road and shopping malls of Gurgaon. As the region is near to the Centre of Gurgaon, it is easily accessible from Sohna Road, IGI Airport, Golf Course Road, Delhi and other regions. With the introduction of new road planned in the master plan from Sector-63A, Sohna can be approached bypassing Gurgaon completely.
Highlights of South of Gurgaon
• On the foothills of serene Aravali Hills
• Already functional schools, colleges, shopping malls, hospitals and hotels
• Few kilometers drive from IGI Airport and Golf Course Road
• Easily accessible from Sohna Road, IGI Airport, Golf Course Road Delhi and other regions
• Located near 1,483 kms long Delhi Mumbai Industrial Corridor (DMIC) and Kundli-Palwal-Manesar Expressway
Several amendments to the Real Estate (Regulation and Development) Bill, 2015, suggested by the select committee of Rajya Sabha, have now been accepted by the Union Cabinet. This is a major step towards introducing the amended bill in the Rajya Sabha. The bill will bring in much-needed transparency and accountability in the real estate sector. It will create a much-needed consumer right protection umbrella for buyers of real estate, thereby increasing consumer confidence as well as creating lasting developer brands strong on quality and timely delivery of their projects.
Although there will be strict punishment for developers under this bill, the relevant government agencies and approval processes have not been brought under its ambit. Without achieving single-window clearance, there may be cases where bona-fide delays by developers may still result in an unfavourable penalty on the developer community. Without ensuring that the approval process is not delayed by civic agencies’ inaction or bringing in single-window clearance, the regulator may inadvertently add another layer to the longer processes already delaying projects.
The government has indicated that it will streamline the approvals’ process and finally move towards a ‘single-window clearance’ system. This, in conjunction with the regulator, will provide a positive impetus towards achieving the housing dream while ensuring a level-playing field for developers and buyers.
However, given the quantum of projects that the state regulator will have to cover now – due to norms on size of projects having been relaxed further from 1,000 sqm to 500 sqm – the onus on the state regulator will be huge, particularly for realty-heavy states like Maharashtra, Karnataka, etc. In such a scenario, the regulator could operate through a hub-and-spoke model, with separate districts having a dedicated branch.
The major amendments okayed by the Union Cabinet now include:
· The money collected from buyers is to be deposited within 15 days. It is to be maintained in an escrow amount, which will be 70% of the construction cost, and is meant to be used only for the specific project.
· The term of imprisonment of three years recommended by the government has been upheld for all contraventions and even in cases where the developer does not abide by the decision of the appellate tribunal imprisonment has been recommended.
· The bill will be applicable on commercial or residential properties which are more than 500 sqm in size or have eight flats or more.
· Carpet area has now been defined as the net usable area
· All financial statements have to be audited within six months of financial year closure by a practicing chartered accountant.
· The interest payable by defaulting parties (developer or buyer) has been brought at par for both in case of default by either.
The bill will have far-reaching positive consequences for the sector in terms of its operating procedures as also create a comprehensive consumer redressal mechanism. Overall though, the real estate industry is waiting with bated breath for the Rajya Sabha to finally pass this bill. It will prove to be a year-end bonus by the government to the struggling sector.
Reputed developers who have been following financial best practices and corporate governance have welcomed the move. At best, they may have differences of opinion as far as certain nuances are concerned.