Real Estate Blog

Gurgaon’s Property Bubble is about to Burst

Vikas Sharda — Tue, 15 Mar 2011 06:20:18 +0000

The property rates in Gurgaon are sky rocketing for sure. But does that means demand for property is really high in the city? If a recent survey carried out by a district administration of Gurgaon has to be believed, the truth is completely the other way around. This survey suggests that there are around 25-30 percent housing units currently lying vacant, with many more being constructed in Gurgaon. This fake property bubble seems to be the work builder lobby active in Gurgaon.

How The Bubble Got Created?
The real estate of Gurgaon is majorly an investor driven market. Statistically speaking, nearly 70 percent of revenue here comes from investors. This means that the private builders in Gurgaon will do everything to keep the investors interested for a longer period. If one tracks the recent infrastructural development in Gurgaon, he/she will get to know that numerous housing projects have come up in last few years with many more in waiting. These high-end housing projects offers lavish lifestyle to the end-users and attract investors in plenty. This portrays Gurgaon as a hot destination for investment which ultimately gives boost to the property rates in Gurgaon.

The Implication
If we see this scenario from the eyes of a property dealer everything seems to be positive. But the fakeness and hollowness of this whole process will soon be out in public with its own implications. Firstly, this false supply of housing units will not be able to hold in the investors for long. Secondly, the property rates in Gurgaon that are currently off the ceiling will come down tumbling faster than the rate at which they went up. The cost of property in posh localities of Gurgaon was already out of bound for a common man and with many expensive housing projects coming up on the outskirts the small time investors will again feel betrayed.

The Solution
As per the property experts, first thing needed to be done, is bring down the soaring property rates in Gurgaon. This will help in regaining the confidence of small time investors and honestly project the Real Estate of Gurgaon. To do that the Government housing project, HUDA (Haryana Urban Development Authority), needs to speed-up the development work in newer sectors of Gurgaon. This will pose a threat to the private builders and offer the home buyers with affordable accommodation. The Government should also setup a regulatory body to keep a check on the private builders. Once these steps are taken by the Government the property rates will automatically come down in Gurgaon.

Unitech’s Fresh Housing Project at Sohna Road, Gurgaon

Vikas Sharda — Fri, 11 Mar 2011 06:07:59 +0000

Unitech Group, the leading real estate company of India, is coming up yet another housing project called the “South Park” alongside Sohna Road in Gurgaon. Unitech South Park offers nice accommodation option with 2 to 3 BHK fully air conditioned apartments built within Groud+14 storey building overlooking sprawling green landscape and natural surroundings. Unitech South Park is exactly located at Sector 70 in Gurgaon and will soon be having no connectivity issues because of the upcoming metro train link, which will nicely connect it with the whole of Gurgaon and NCR region. The tentative rate for the soft launch of Unitech South Park is market at Rs 5500 to Rs 6000 square feet.

Unitech South Park is also nicely linked to eight lane NH-8 expressway and boasts of a posh neighborhood alongside famous Golf Course Extensions Road. Besides that the area also has commercial offices, business centers, premium medical centers, shopping complexes and world class educational institutions. Being a perfectionist as they are, Unitech Group will leave no stone unturned in loading this housing with every possible amenity to facilitate its occupants.

To list few amenities enhancing the services of this housing project there will be a swimming pool, gymnasium, Club house, indoor-outdoor games, Uni-Homes Shopping Arcade, Temple, Schools, Health Centre, Bank & ATM, Transport to City Centre, Landscaped Green Area, Children play area, Ample Parking Area, Community Party/Hall and internal security etc. Unitech South Park assures of a luxurious life amid plenty of open space that brings everyone close to the nature.

Investing In Commercial Plots Turns Trendy

Vikas Sharda — Mon, 07 Mar 2011 12:53:21 +0000

Gurgaon, to a large extent still remains a semi-developed city of the National Capital Region (NCR). If one closely surveys the millennium city, he/she will find a huge disparity in terms of facilities offered in various sectors of Gurgaon. While some sectors are richly embedded with nicely structured housing colonies and good market places, there are others that have vast acres of empty land with no basic facility in sight. It can be due to ill-management on behalf of state authorities or slow expansion of Gurgaon in process. Whatever the case is there are people who have still found out a huge positive out of this negative in Gurgaon. The HUDA (Haryana Urban Development Authority) administration in Gurgaon has segregated and approved big chunks of these empty land areas as commercial plots. These empty commercial plots can be a great investment opportunity for people who want to double up their life’s savings in the fastest way possible. But there are certain things that have to be kept in mind before buying a commercial plot in Gurgaon.

Buying Commercial Plot

There are property dealers and builders in Gurgaon who sell commercial plots at lucrative rates. But out of them very few are trustworthy. They can arrange fake documentation for a particular piece of land in no time and dupe you of your hard-earned money. Also, always do a pre-check that whether the commercial plot that you are buying lies in authorized colony/sector or not. The property dealers in Gurgaon generally try to convince people in buying an unauthorized plot saying that the area will get the Government’s approval within few months. Don’t fall prey to such fake promises and lose everything in the end. These unauthorized colonies can get razed by the government any day leaving you with nothing in hand. The best thing one should do before buying a commercial plot is look of an approved land lying within an undeveloped area in Gurgaon. Buy this land and wait for its value to be appreciated due to on-going infrastructural boost given to the city. As and when the state government will start enhancing the facilities of this area your land will start paying rich dividends.

Selling Commercial Plot

Once you own a commercial plot the second step will be selling it once the value has reasonably gone up. The key is to watch carefully the market trends. Keep yourself abreast with latest trends in Real Estate and when and how the value of your commercial plot is going to shoot. It is more or less like the stock market but the wait can be much longer. Look for industries as prospective buyers who plan to setup their units in Gurgaon. Once you get a nice buyer for your commercial plot the process of buying and selling begins. From preparing selling agreement to getting NOC (No Objection Certificate) from authorities in concern like HUDA, Ansals and DLF are all part of the process. Finally the Sub Registrar verifies all the details of the deal and everything is finalized. A commercial plot investor can be the king of Real Estate seeing the current market trends in Gurgaon.

Union Budget 2011-12: Has it really clicked for the Real Estate?

Vikas Sharda — Fri, 04 Mar 2011 06:01:13 +0000

Real Estate has always been a propelling factor in running the Indian Economy. Every Indian is directly or indirectly involved with this sector for reasons like investment opportunity, affordable housing, personal/corporate leasing or commercial/office spaces. This makes Real Estate a deciding factor for how the Indian Economy will or can shape up in the future. So, this time when Mr. Pranab Mukherjee, the Finance Minister of India, presented the Union Budget 2011-12, the Real Estate companies expected him to be little more concerned about their needs. Though, there were certain announcements made that brought cheers, but the government still missed out on some larger issues bugging the Real Estate, as a whole.

Taking its focus on the affordable housing section the government surely announced Standard Operating Procedures that were friendly. The home loan limit has been extended up to Rs 25 lakh and one percent interest subvention is given for home loan taken up to Rs 15 lakh to buy a house costing Rs 25 lakh. This surely brings joy to people from middle income group and builders involved in budget housing projects. Though, the only ironical situation is that these sops will only benefit people living in smaller cities, whereas it will not serve any purpose in big metropolitan cities, where no independent house is available below Rs 30 lakh range. The government has also extended the personal tax limit from Rs 160,000 to Rs 180,000. But the experts in Real Estate market feel that this is not enough to make a positive impact in the long run.

But the biggest disappointment for Real Estate sector was not getting a legitimate Industry status. This has been the story for last many years, and the Government too found it difficult to give an industry tag to this highly unorganized sector. It has been a dream of the Real Estate companies to be associated with an Industry status, and this could have helped settle a lot of irregularities in the whole Real Estate functioning as well.

Talking about the circulation of black money in the Real Estate Sector, the Government again failed to deliver. There has always been a need of a regulatory setup by the Government which can positively direct the capital inflow into this sector. Experts feel that if the Real Estate could become more honest in their dealings, the foreign investment can surely get a boost in the country. The budget has brought Special Economic Zones (SEZs) under the direct control of Minimum Alternative Tax (MAT). Now, this move will minimize the benefits the developers used to get by working for SEZs as commercial real estate asset classes.

Another disheartening move was Government being persistent with the Section 801A and 802A. As per these sections the builder can’t be engaged in housing projects with unit sizes below 1200 square feet. This will again diminish the availability of affordable housing projects and brings down the moral of builders as well. The budget was also mum over the extension of STPI scheme. This scheme allows top technology companies in India to export and operate services from designated Technology Parks in India, which no longer will be the case. There was also no mention of FDI in retail that could have easily given push to foreign investment in multi-brand retailing.

In all the Union Budget 2011-12 was a mix of good and bad, or may be more bad than good. Certain issues remain unsolved while the few sops offered here and there looked irrelevant. The government could have handled the larger issues with some authoritative moves and delivered well. But again the Union Budget has really not clicked for the Real Estate.

Home Buyers on prowl of affordable housing in Gurgaon

Kanika Bhardwaj — Fri, 25 Feb 2011 05:06:57 +0000

Gurgaon is as one of the most profitable, financial and commercial epicenters of India. At present, the megacity is inhabited by thousands of working professionals from different states as well as foreign nations for better growth opportunities. According to recent population surveys and observations, the population of the corporate migrants is rising by 15% every year. As the prices of properties in Gurgaon are sky rocketing with expensive apartments, luxury homes and bungalows, finding a livable, comfortable housing unit in Gurgaon is a difficult task for the middle class segment of working professionals. Almost, every individual employed and settled in the city wants to own his dream house.

The concept of “affordable housing in Gurgaon” originated during the economic downturn in the year 2008 as the real estate market crashed down. During the recession period, buyers preferred budget homes in Gurgaon rather than high priced ones.

The term “affordable housing” refers to provide satisfactory housing unit, such as an apartment or flat or an independent house with comparatively lesser space and limited amenities. Today, the dynamic real estate market has witnessed a paradigm shift as now the focus of developers has shifted from selling luxury homes to providing economically efficient quality homes to city slickers in Gurgaon. Many real estate players are launching projects offering low budget house options in the city. The aim is to maximize sales revenue by targeting the higher number of buyers. Customers are also showing interest in buying low cost budget houses available in a price range of 25-30 lakhs and if possible even lower. There are finance schemes available for people who want to book now and pay later. Some of the prominent and upcoming real estate projects or townships in this segment are-

• Vatika Lifestyle: 1-BHK apartments available at Rs 16 lakh
• Unitech, Uppals, and BPTP
• DLF: Investing approx. Rs 15,000 crore in affordable housing segment, where in low cost house will be available in the range of Rs 15 to Rs 40 lakhs.
• Bestech Group: Get 1BHK apartment in Park View Valley in Palam Vihar for Rs. 25 Lakhs.
• Edge Towers in Ramprastha city: Project includes 2/3/4 BHk apartments at affordable prices.

Thus, affordable low cost budget housing has evolved a fully fledged market segment. According to market research surveys, the property price values will appreciate further in 2011, investors in residential real estate can get huge returns on their investments. However, to provide, premium housing at low cost will be challenging task for real estate developers in Gurgaon.

Understanding Property Encroachment (Adverse Property Possession)

Kanika Bhardwaj — Wed, 23 Feb 2011 12:25:22 +0000

Food, clothing and shelter are the very basic human necessities. Almost everyone desires to live in his or her own home. Every individual wants an appealing, comfortable and cozy dwelling which is a mouthpiece of his personality. In fact, one’s house represents his imagination. Buying or building a new independent house can be a very exciting endeavor as you can design your own landscape, renovate, repaint or remodel your own home as per your own specifications. However, home ownerships brings more freedom and responsibilities. All such renovations, remodeling must be under the guidelines of property encroachment law, including the avoiding encroachment of public property and adverse possession of someone else’s private property.

Meaning of Property encroachment
People very often hear incidences in which an individual buys a specific piece of land or property and discovers while surveying the property that their neighbour’s fence is two feet over his property line or the neighbour has invaded their property. The term property encroachment can be defined as property trespass without the property owner’s permission. Constructing an independent house undoubtly brings with it a sense of freedom which one can not enjoy in apartments or condos but home ownership also represents limitations when it comes to one’s property lines.

Know your property limitations
Every property has its boundary. A person can find the boundary lines of his property on the specification sheet that lists the total area and room sizes and design of the property. Familiarizing yourself with the property boundaries mentioned on the specific sheet can save a person from running into trouble with their neighbours. If you are confident about the borders of your property, you can approach your neighbour to honour those property lines.

Dealing with Property Encroachment
If a neighbour’s building extension, fence, tree or any other structure appears over your property, first, you should follow a sophisticated approach and should not try to take law in your hands by simply removing the encroachment even though if it’s on your property.

• You should try to approach the neighbour to see if the encroachment can be removed with a simple request. Give him detailed reasons why you want the encroachment to be removed from your land. It is always wise to resolve the matter amicably and peacefully.

• Secondly, if your neighbour does not pay attention to your reasons. Follow up with a politely written letter reiterating your concern. Take photos of the subject of your concern and get legal aid from a professional attorney to get the encroachment removed to your property.

Frequent Premature Building Collapse – Who is responsible?

Dulare Yadav — Tue, 22 Feb 2011 05:25:39 +0000

Hundreds of years back, one can imagine – trees would have been the tallest things in the sky, then – it would have been the cathedrals or monuments and now it is beautiful office complexes or apartment buildings that dot the skyline of metropolitan cities. Today, with the increase in space crunch, we have our homes, offices, shopping centres, schools in tall buildings; we spend most of our times in these spaces. People save their hard earned money to buy or renovate their dream homes in the most preferred buildings. Every day, we enter so many tall structures without worrying that it may collapse or can pose any threat to our security.

To put in other words, it is very disturbing to imagine that someday due to earthquake or faulty construction or any possible reason; one may get buried under the concrete, beams or slabs and one’s own home or office may become their coffin.

Nowadays frequency of building collapse in National Capital Region(NCR) has become very alarming and worrisome for inhabitants, contractors as well as government. According to the Daily News, a six storey building collapsed in Udyog Vihar industrial area of Gurgaon on 17^th February. Two labourers were found trapped under the debris though fortunately no one suffered a major injury. To cite another tragic building collapse incidence, last year 44 people lost their lives and 65 others were injured in Laxmi Nagar in Delhi. Such frequent premature building collapse occurrences bring to light significant questions about the use of adulterated construction material, faulty construction practices and professional competence of building contractors or stakeholders. Most of these ugly occurrences can be prevented with little attention on the part of contractors and government authorities.

The menace makes one think – who are the people responsible for designing and monitoring construction work on the building sites. It is also worth mentioning that building contractors are not always responsible for such tragic events. Sometimes, the owners of the buildings also derail from the approved plans and add more fancy or imagination against the security codes of construction.

To conclude, detailed and more pragmatic strategies should be framed to achieve and promote enduring safety in tall buildings. Buildings should be designed and constructed to meet the owner’s requirements and also satisfy their basic living and safety needs.

Questions to ask while buying your first independent house

Kanika Bhardwaj — Sat, 19 Feb 2011 04:49:49 +0000

“It takes hands to build a house, but only hearts can build a home.” An independent house is more than a space where people live in. It is not just a material representation, rather a house symbolizes a sentiment. It can said to be an environment that offers affection, sense of belonging and security. Everyone cherishes the desire to own their dream home someday. The house which will be comfortable as well as equipped with all modern amenities for living. Owing a home brings a sense of pride and freedom as an owner is not bounded by the rules of a landlord or monthly payments. Moreover, now a days, an independent house is seen as a transitory asset which can provide profitable returns for a secure and prosperous future. Buying or building one’s own dream house can be an exciting endeavor for any aspirant but the process of sourcing, building and approving an independent house involves many challenges. It’s imperative to understand few rules before buying one’s first independent house. Let’s count on some of the opinions which are wise to consider before buying your first independent house.

Price of the House
First, one must inquire about the price which the seller paid for the house. This will help a person to find out if the prices of the house have gone up or down. To find out the market prices of houses of same size in the neighbourhood also helps in estimating the value of a particular house.

Location of the House
One must consider whether the house is located in a residential area or not. It is also good to be aware about the type of properties located in neighborhood; it will give one fair idea about value the property holds. To put in more clearly, a house located near a highway or significant facility like metro station will be more expensive than those that have industrial sites, or apartment buildings nearby.

If you are living with family, it is important to know whether there are schools nearby. Inquiring about basic amenities like power backup or water supply in that particular area and transportation services available is also advisable while buying an independent house.

Condition of the House
A buyer must be clear about the condition of the house. One must inquire about the materials used while building a house. In case, a person is venturing forward to buy a fully furnished house, one must make sure to check all the systems and appliances in the house.

Checklist to get a house on rent

Kanika Bhardwaj — Tue, 15 Feb 2011 10:20:07 +0000

Whenever we buy, sell or rent a property or move from one place to another, it always pays to be organized. A checklist refers to a simple list of items to be checked or consulted before you engage in any significant task. Sometimes, it becomes imperative for people (corporate, working professionals) to move from one place to another to various personal and professional reasons. During such circumstances, asking yourself few basic questions about the kind of property, you are on prowl of and keeping handy a checklist of needs and preferences; can help you find a suitable property.

Your checklist can vary depending on whether you are looking for an independent house, flat, apartment building or just a room. Here are few basic guidelines to rent a house which can keep you out of trouble.

Location: Carefully inspect, ask questions about the facilities located nearby. Be thorough about the distance of location for your work place, children’s school, hospital. Make sure the place has sufficient parking space, check for noise levels.

Rent: When viewing the house, ask the landlord the cost of the rent/month to be sure that it meets your financial needs. Landlords may require you to pay a month’s rent in advance as well as a security deposit and cleaning deposit. Ask the landlord the total cost to move into the house along with the amount that is returned to you when you leave the unit.

Utilities: Utilities such as electricity, heat and water may be included in the rent. You should find out the type of heating system used to help determine the cost of utility bills. The landlord may know the average cost to heat the apartment in the winter or cool it during the hotter months. Ask the landlord the average cost for utilities in the apartment to make sure that you can afford your monthly payments.

Damage: Each room should be on the checklist as you tour the apartment. Note any damage in the room on the list and ensure the landlord is aware of it and that she notes it in her records. Take pictures of the damage to include in the checklist and notes.

Lease Agreement: The terms of the lease agreement should be most important item on the checklist. Landlords may prefer a month to month tenancy, which does not require a lease, or a 11 months lease, which locks you in for an entire year. The lease should also state the amount of notice required to move and rules for the building. The type of lease is a matter of preference but it is important to consider when renting an apartment.

Invest in booming Real Estate in Gurgaon: Residential and Commercial

Kanika Bhardwaj — Fri, 04 Feb 2011 07:48:51 +0000

Gurgaon is one of the four major satellite cities of the Delhi. In the past few years, the city has witnessed a phenomenal growth in all spheres of development particularly in urbanization and creation of industrial climate. The real estate sector market in Gurgaon is touching new heights with socio-economic development of the city. New colonies, high rise apartments, penthouses, independent builder floors, condominiums with world class amenities are being constructed to cater the housing demand of thousands of working professionals. Investment in real estate is the latest buzzword as many domestic as well as international real estate players (developers or builders and investors) are eyeing viable residential and commercial properties in Gurgaon for financial gains.

www.youtube.com/watch?v=zB_ueVOAJac

In a dynamic economy, the world of investment is changing everyday and so is the investment strategy of investors. Real Estate market is unpredictable. A large number of real estate investors consider real estate patterns or changes before investing in a residential or commercial property.

If we look few years back, the economic slowdown of 2008- 2010 impacted both commercial and residential real estate sector in the almost all developing Indian megacities. During that time, Real Estate developer firms and investors adopted a wait and watch policy, as there was a substantial decrease in demand of properties for commercial and residential purpose.

After the financial slowdown, Indian software industry has resurrected itself and the large scale growth of industries has led to migration of professionals in the urban areas. That’s why again there is a strong surge in the demand of both commercial and residential property. The appreciation value of commercial as well as residential property has grown by leaps and bounds. This is the right time for investing in or buying either residential or commercial property in Gurgaon and selling the property for huge profits. Moreover, Real Estate industry experts have predicted that property price in Gurgaon will increase further for longer time in 2011.

Thus, real estate investments are profitable in Gurgaon both in residential and commercial segment. So, if investing on property is on your mind, doesn’t hesitate, cash in on the boom in real estate market and get substantial returns on your investments.

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