Ghaziabad is emerging as a new residential hub for IT and ITES professionals in Delhi NCR. Ghaziabad is mentioned among the list of world’s ’10 most dynamic cities’ and becoming a hottest city in India for the people bounded around Delhi NCR. People are attracting towards the city due to affordability for housing societies. New properties are developing along the NH 24, NH 58, Raj Nagar extension, Indirapuram and Mohan Nagar.
Real estate investors and buyers are attracting towards the housing societies of the city due to its proximity to Delhi and other region of NCR. Various residential, commercial and township projects are going on in the city with innovative infrastructure and quality construction. The city is growing as one of the important destinations of realty field.
The cost of residential project ranges from 3000 to 3500 per sq ft and varies slightly as per the location. The city is well-connected to capital by road and metro. Good transportation and proximity to capital are notable points for the city.
A good investment time for property is during the period of a slump. A real estate investment seems to be risky at some time hence, the proper study of property and market provides huge gains in terms of income.
The city is famous for its innovative construction, planned infrastructure, transportation facilities, wide roads, huge shopping malls and commercial complexes. Property prices are also affordable as compared with Delhi and other region of NCR. Hence, the demand of residential apartments is increasing day by day. Noida is emerging with a city of ready to move flats in affordable rates.
Noida offers a wide range of flats that fits almost for every budget. The city reflects an enjoyable living due to lush greenery, shopping complexes, restaurants and proximity to Delhi. Various residential projects are going on with the option of one bedroom to four bedrooms, and price varies as per the location. The city also enjoys a realty growth from Greater Noida where many companies are shaping their headquarters.
Many builders are offering ready to move flats that are close to corporate hubs and shopping malls. Many sectors are offering fully or semi furnished modern housing apartments in reasonable rates. Several societies are proffering high end securities and power backup with modern lifestyle. Most of the projects are surrounded with lavish greenery, lots of open space, magnificent sunlight and ample amount of breeze for healthy lifestyle and clean environment.
Ghaziabad is becoming a noticeable place for the growth of real estate. Realty field is shaping up with innovative and affordable construction near the Raj Nagar, NH4, Indirapuram and many more locations in Ghaziabad. Property prices of Delhi are rising day by day and becoming difficult to own a shelter for budget income group. However, people are moving to nearby location of Delhi. Ghaziabad is well-connected to Delhi and other region of NCR by metro and roads hence it is becoming a hot destination for property investors.
The city is prepared with innovative infrastructure to suit the idea of cozy lifestyle. Realty sector has also concentrated on the family entertainment places, shopping malls, theaters, hospitals and schools besides just constructing commercial and residential apartments.
Ghaziabad is growing with commercial construction, and residential apartments range from one to four bedrooms managed by well known builders. They offer fine and peaceful living in affordable rates. The city is flourished with two national highways that make it excellent for living. Many apartments are offering world-class amenities such as swimming pool, gym, spa, parking space, children’s park and many more.
The kitchen in the urban Indian home is no longer the domain of the cook or the servant alone. With evolving family norms like working couples who prefer to rustle up their own meals and men working from home, kitchen set-up and decor are increasingly occupying a significant place in the field of interior decoration as the kitchen is no longer regarded as a space used merely to cook food but an intimate family space that must necessarily appear inviting and yet be useful and functional.
Formerly a kitchen was supposed to look dull and somber with stainless steel cabinets and fittings. Nowadays however, these are increasingly giving way to warmer metal tones as brass and copper. Even Iron and similar tones are becoming popular.
For smaller kitchens in city apartments, small, compact corner sinks are fast gaining popularity. This is not just a wonderful way to utilize that unused corner in the sink, it is also considered cute and chic.
Wooden accessories including wooden cabinets and counters can transform an ordinary kitchen into one of the sleekest, most elegant spaces in the house. More and more people prefer to accessorize their kitchen with simple yet superb wooden items.
Colorful splash-backs are in this season! Many interior designers and home owners are now choosing to decorate the kitchen with bright, vibrant colors and unleash excitement in the kitchen. Pretty iridescent tiles, marble slabs with interesting patterns and colorful latticed cabinets have become quite a rage with people who regard the kitchen as something more than a place to cook and store.
Kitchen lighting is no longer confined to boring bulbs and overhead lights. With regard to exposed lighting, the artistically inclined are increasingly veering towards light fixtures that are showpieces and marvels in themselves. On the other hand, layered lighting and lighting in hidden spots under shelves and cupboards are also catching the fancy of those with more subtle and understated tastes.
Countertops using black granite or quartz breathe character into the kitchen. Whether left glossy and varnished or with a dull matte finish, such countertops do not fail to infuse the kitchen with immaculate elegance. Black countertops with a matte finish are considered all the more stylish this season.
Open shelves and cabinets, though not quite the norm in Indian kitchens yet, are gradually being given preference by those who own not just pretty kitchens but pretty kitchen paraphernalia as well. Open shelving allows people to display their exotic collections of crockery and other delightful kitchen accessories that, needless to say, have their own special appeal.
Last but not the least, Indian kitchens, like their Western counterparts, are also being transformed into kitchen- cum dining spaces with large kitchen islands and elegant chairs or stools. This concept is especially gaining ground in condominiums and furnished apartments with modular kitchens. Wooden, Metal, marble-top, mahogany-topped, vintage-style, glass-top, or with bar stools- the gamut of kitchen islands is huge. It is only a matter of time before they gain complete acceptance in the urban Indian kitchen.
Beyond the oft-repeated developers’ rhetoric ‘location, location and location’ as the USP of the project, lies the fact that today’s prime location was once a deserted area that most developers were not ready to bet on with the kind of huge investment that realty projects demand. It has not just been the huge investment involved but the infrastructure, or rather lack of it, which often made them play safe. Though, in some of the cases, the government authorities took the initiative to provide the necessary infrastructure and auctioned the land to the developers; in some of the other cases, it was the developer who spotted opportunity in a virgin territory and reaped the first mover advantage.
It would be easy to vouchsafe that while the state, in most of the cases, has been a reluctant urbaniser, destination development actually demands a daredevil’s vision and that is precisely the reason why only a handful of locations could see the first mover changing the dynamics of urbanisation in general and the realty market in particular.
The first such case study in India has been the emergence of Gurgaon, at a time, when urban land development was in the controlled regime of the state. Facing many challenges at the policy level, it was the vision of KP Singh, chairman, DLF, to replicate a global city in India that Gurgaon was conceptualised, ahead of its time. According to Sanjey Roy, spokesperson, DLF, “Gurgaon was initially conceptualised as DLF Qutab Enclave and the plan was visualised ahead of its time. It was not an easy job, particularly at a time when the urban land development was in the controlled state regime. The success story of Gurgaon eventually led to the development of many such destinations across the country.”
He also adds “One needs to have a vision to transform a nondescript location into a property hotspot. Once it is developed, it is much easier to do a cost-benefit analysis and say the location could have been developed this way or that way. When DLF first ventured into Gurgaon, Delhi needed to outgrow its boundaries with the growing urbanisation. Gurgaon, for one, was picked up as an extension of what, at that point of time, was the most sought-after tourist hotspot, Qutab Minar,” explains Roy.
Similarly, in Mumbai, it has been the developers’ vision that has created destinations in far off suburbs such as Powai. The fact remains that had the Hiranandanis also thought about playing with the land competence of ‘location, location and location’, Powai would not have emerged the way it has shaped up today. Some other locations, like Malad, Goregaon, Kalyan and Dombivli, are also shaping up as excellent destinations. Interestingly, these destinations were spotted by developers who recognised an opportunity in an area which had, for others, been the road less travelled.
Similarly, the Nahar Group’s initiative of developing a new township in Chandivali has resulted in making Chandivali a destination suburb. The Group had begun development in this lesser known area, at a time when not much development was happening in that suburb.
The idea was to, in the next few years, make this location one of the most-preferred destinations in Mumbai city. Today, Chandivali competes with other locations such as Powai, in residential real estate. Manju Yagnik, vice-chairperson, Nahar Group, agrees that to some extent, it is risky to venture into new destinations with no habitation and infrastructure. Hence, developers undertake some research or study before starting with a new project. Location has its own importance in real estate development but creation of residential projects can also be undertaken by the developer, from a futuristic point of view.
“A developer can also create new destinations, by providing amenities and facilities essential for smooth living. Earlier, this suburb was hardly known for residential or commercial development, as a major part of this area was deserted land. Today, the vast 125 acres of land, is full of greenery and plush residential towers and commercial complex. Besides proximity to the domestic and international airport, business districts in Mumbai and arterial roads of Mumbai, have made Chandivali a new destination of Mumbai city,” states Yagnik.
Similarly, when the Knight Frank report, last year, rated south Chennai’s Pallikaranai and Medavakkam, as two of the most promising destinations, many within the built environment of realty business, were taken aback. Even though, Pallikaranai and Medavakkam are about 12 kms from the Chennai International Airport, through the Pallavaram-Thuraipakkam Road, it was not seen as a ‘destination’ till some of the developers spotted an opportunity and shifted their focus to the region, for developing it as the destination next.
There are not many case studies in Indian real estate, where a developer has a vision and has shown the audacity to take the road less-travelled. Experience also suggests that some of them had to take a beating but for those who could spot the right location to be developed as a destination; it proved to be a goldmine. Those who want to capitalise on sheer land competence, established location is all that matters but for those who do not want to be ‘me too’ in the established locations, there are still virgin territories to be explored.
Navratra is considered very auspicious time for new deals; prospective homebuyers must bear in mind that realty investment always pays, and one should not wait for prices to fall as it rarely happens—in the Indian market.
As Pitrapaksh comes to an end, are you ready to buy your first-or second-house during this auspicious Navratra days?
This is a time when even the most cynical customers, the habitual nitpickers, start to plan to buy their long-cherished house-they either book a flat during this period, or start their search mission for one.
Realty analysts are of the view that rather than wait for a time when prices fall in the realty market, one must scour the market and book a flat according to one’s budget. For one, an endless wait will only get longer, as prices rarely come down in the Indian real estate market.
Given the trend of rising property prices over the last few years, the price of the property you have shortlisted will most likely keep going up, even as you wait. By all accounts, residential real estate is one asset class whose rates have been steadily rising in most markets.
While analysts have been saying that residential property markets in locations like the National Capital Region and Mumbai are ripe for a price correction, developers have been able to hold on to prices even as buyers wait for a fall. Given the demand-supply imbalance, the trend is likely to continue and your investment will, in all possibility, stand you in good stead even when other assets take a beating.
Nikhil Jain, CEO of Ramprastha Developers, says: “If you are thinking to have your own house or second property, you should not mind investing in the outskirts of your city. With the passage of time, even outskirts become part of the city.”
There are many people in the capital who would tell you that when they bought property in a particular area, it would be invariable without any worthwhile facility; but a couple of hard years later, development invariable happened. And with development, the value of their property climbs manyfold. That has changed the class character of a large number of people. As the rates have gone up in main parts of the city, one should not mind investing in the outer or little unknown areas of the city.
Investment advisers say that, if possible, one should buy another house before retirement. Those who have no pension to fall back upon after retirement must buy another property, as it would give them social security at the later stage of their life. The thinking behind this advice is that if you have more than one property, you can give the second house on rent and earn a good amount by way of rentals.
Those who invest in property cannot be losers; this is especially true for all those who do not get pension benefits in their current profession. It goes without saying that immovable property is a huge asset one can bank upon when the chips are down.
Property can be a great source of income for your retired life or in case you lose your job; lakhs of people have lost their jobs since the global economic crisis a few years ago. There is little doubt that property is a sound investment proposition, provided you make it at the right time.
Nevertheless, experts advise prospective buyers to invest in only those projects whose developers have a proven track record.
Gaurav Mittal, CEO of CHD Developers, says: “I have observed that the number of those buying second homes in the NCR is swelling fast. That is an indication that the present generation knows for sure that investment in property will help their cause if they were to fall upon bad days.”
Devinder Gupta, CMD of Century 21, says: “Between land and constructed property, a plot is a more lucrative option as it is much easier to sell-also, the rate of appreciation is higher. If you live in Delhi, you should not think twice in buying land in any part of the NCR; it is bound to give you enough returns in the future.”
Talking about the Navratra period and the realty market, experts say this is one time when even those people who already own properties, go out and book one more. With jobs hardly permanent in nature, people have come round to the view that a second property is the surest insurance to fall back upon in their old age, and those among them who can afford it, book a second property before they hit 50.
- Realty analysts are of the view that rather than wait for a time when prices fall in the realty market, one must scour the market and book a flat according to one’s budget. For one, an endless wait will only get longer, as prices rarely come down in the Indian real estate market.
- Those who have no pension to fall back after retirement must buy another property, as it would give them social security at the later stage of their life.
The upward revision in repo rate by the Reserve Bank of India is likely to increase pressure on real estate developers to offer discounts in the upcoming festive season as they struggle to clear their inventory at a time when demand is tepid and interest rates are rising.
HDFCBSE -1.24 %, ICICI Bank BSE -2.36 % and Axis Bank BSE -0.44 % raised interest rates on home loans last month while State Bank of India BSE -1.24 % did so on Thursday and the RBI on Friday raised the rate at which the central bank lends money to commercial banks by 25 basis points.
“Discounts are now inevitable,” said Sanjay Dutt, executive managing director of South Asia at real estate services firm Cushman & Wakefield. This festive season is likely to see just a tenth of last year’s new project launches, according to an estimate by the Confederation of Real Estate Developers‘ Associations of India (Credai).
“Developers will want to sell their unsold inventory instead by using innovative schemes and discounts. Rising interest rates, though, will lower sentiments and could impact sales,” said Credai chairman Lalit Kumar Jain.
The festival season usually generates about 20% of the annual home sales. But demand has been severely hit this year due to the economic slowdown, higher inflation and job cuts in several sectors. The spike in interest rates can only add to the industry’s woes, developers said.
“If interest rates go up, demand will be impacted slightly,” said National Housing Bank chairman RV Verma. Home prices fell in 22 of the 26 cities in the quarter to June, according to the National Housing Bank’s residential housing index, Residex,
“If developers really reduce prices, some sales should happen this festive season. This is an opportunity for them to clear their inventory pile-up,” said a senior SBI BSE -1.24 % official, who did not wish to be named.
DLF’s group executive director Rajeev Talwar termed the increase in repo rate a missed opportunity. “There was a need to lower rates to stimulate demand,” said Talwar.
According to property research firm Liases Foras, close to 670 million sq ft of stock is lying unsold with developers as home sales have fallen over the past few quarters.
“We will not be launching new projects this festive season. Instead we will focus on delivering old projects and will offer schemes and discounts to get rid of our inventory,” said RK Arora, managing director of Noida-based developer Supertech.
Several developers are poised to launch new schemes for existing projects and also offer innovative payment structures, said Ankur Srivastava, chairman of GenReal Property Advisers. “They are also repositioning parts of existing projects to stir sales,” Srivastava said.
Freebies are now Inevitable.
DEMAND has been severely hit this year due to the economic slowdown, higher inflation and job cuts in several sectors.
BUILDERS will want to sell their unsold inventory instead by using innovative schemes and discounts.
MANY DEVELOPERS are poised to launch new schemes for existing projects and also offer innovative payment structures.
A lack of activity from the investor and underwriter segments is increasingly leading to a situation where real estate developers have no choice but to cater to the requirements of an end-user – as a result, a home buyer is in a better position to negotiate and take benefit of the softening prices.
It is due to the upcoming general elections and volatility in the national and global financial order, investors have adopted a cautious approach.
“Underwriters enter the market for short-term gains. Their presence may provide developers a sense of comfort, but at the same time, it results in escalated prices, of which an end-user has to bear the brunt,” says Abhay Kumar, chairman and managing director, Griha Pravesh Buildteck.
This is why, developers in the NCR cities such as New Delhi, Gurgaon, Noida, Faridabad and Ghaziabad, are seen fine-tuning prices to keep the ball rolling.
For instance, in sectors 76, 77, 119 and 120 in Noida, 1,000-sq ft multi-storey apartments that had touched the levels of Rs 50-52 lakh in the beginning of 2013, are now available in Rs 45-48 lakh.
“The recent price correction is a result of withdrawal of investors from various projects,” said Aman Agarwal, director, KV Developers.
Property prices in many parts of Gurgaon such as sectors 84 and 92 are down by 10-15 per cent as compared to the prices that prevailed until March 2013. A similar trend has been observed in Kaushambi and Vaishali areas of Ghaziabad as well.
The prime South Delhi areas such as Vasant Vihar and Defence Colony are reportedly witnessing a correction of 20-35 per cent, mainly because of cash-strapped investors who are now losing their patience and want to liquidate their holdings. Thus, a 1,000-sq ft apartment which was earlier priced at Rs 4.5-5 crore in these areas could now be purchased in Rs 3.5-4 crore.
How these two income tax deductions apply.
You can claim an income tax exemption on your house rent allowance (HRA) as well as on interest paid on a home loan. Many salaried employees take a home loan to acquire a residential property but do not stay in that property for various reasons. They may stay in a rented premises and be in receipt of HRA from the employer. The exemption of HRA is covered under Section 10 (13A).
The conditions for allowing the exemption on HRA are:
The rent must actually be paid for the rented premises which you occupy The rented premises must not be owned by you
The amount of HRA exempt is the least of:
- The actual amount of allowance received by you in respect of the relevant period The amount by which the expenditure actually incurred by you in terms of rent exceeds one-tenth of your salary in the relevant period
- Half of the salary in the relevant period if the rented house is in Mumbai, Kolkata, Delhi, or Chennai
- 40% of the salary in the relevant period if the rented house is anywhere else
As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified in the relevant rules. In case of interest paid on a home loan, the deduction is allowed while computing ‘Income from House Property’. In order to compute the ‘Income from House property’, the net annual value of the property is reduced by 30% and from the balance, the interest payable on the loan taken for acquisition or construction of this property is deducted.
In case the property is given on rent, the annual value will be calculated based on the rent received and the final ‘Income from House Property’ will be calculated. In case the property is lying vacant and is neither rented out nor self-occupied, the rental that could have been derived had it been rented out is taken as the deemed rental income and the calculation has to be then made.
There are a few circumstances under which the annual value of a self-occupied or vacant property is treated as ‘nil’. First, where the property is located in a city different from where you work, and you stay in a rented house.
You will be able to take the annual value of such property as ‘nil’ even though it is not occupied by you.
Second, where the property is located in the same city as your rented house but is in your occupation, and used to live in. In the case of a self-occupied property, the annual value is taken as ‘nil’. The only deduction is on account of interest on housing loan, which is restricted to a maximum of Rs 1.50 lakh.
- As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified in the relevant rules.
- In case of interest paid on a home loan, the deduction is allowed while computing ‘income from house property’.
While sales take a dip during the Pitrapaksh, realty companies utilize the time to devise their marketing strategies and campaigns for the Navaratra, which is the most auspicious period for land purchases for the Hindus.
Those who think that all those attached to realty world take a long break during Pitrapaksha must wake up to the new reality.
Admittedly, while sales take a dip, realty companies make strategies to launch their marketing and other campaigns immediately after Pitrapaksh.
Pitrapaksha comes a fortnight before the Navaratra festival and is considered an inauspicious period in the Hindu religious calendar. Throughout the Hindu world, departed souls are remembered during Pitrapaksha. On each day of the fortnight, special offerings are made to ancestors whose lunar date of death corresponds to that particular day.
And once Pitrapaksh is over, Navaratra is considered the best time for the realty world. It is regarded as the most auspicious time for starting any new venture or buying anything new. Of course, Navaratra sees huge sale of properties. And in order to cash in upon the auspicious period, realty companies finalize their strategies to strike gold during Navaratra.
“We update our contact list in this period and also give final touches to our marketing strategies, so that by Navaratra we have inquiries pouring in and deals being finalized,” Ajay Singhal, director of Avalon Developers, says.
Realty companies avoid north Indians during Pitrapaksh; however, they are in talks with other communities, as well as non-Hindus, during this time and canvass their projects and products. “All the marketing guys of brokerage firms follow up on prospective customers. Thanks to the names and castes, they know whom they can and should contact during Pitrapaksh. While most people of this part of the country do not talk about buying flats during this period, others are not that fastidious,” Devinder Gupta, MD of Century 21 DGS, says.
It is not uncommon for people of all caste and religious denominations to hunt for their dream homes even during Pitrapaksha, but these people seal the deal only when this inauspicious period is over. “Currently, I am looking for a flat though I will not finalize the deal now. There would be a huge uproar in the house if I finalize the deal. My parents and wife will not allow me to enter the house,” Sajal Kalra, a pharmaceutical industry professional, says.
Realty players say that after a long lull in the market, things will improve during the festive session starting with Navaratras. While there is no dearth of possible buyers in the market, people expect the prices to go down. Sanjay Khanna, director of Kailash Nath Projects Pvt Ltd, says: “While it is true that the cost of flats have gone up over the years, buyers must not forget that the cost of construction has also been steadily increasing and developers need to factor this in while pricing their products. Land is a major component pushing up prices, followed by labour cost, and then iron, steel, and cement-none of which will come down in the foreseeable future.”
However, the cost of the product is not going to deter the genuine buyer, who is likely to return to the market as soon as the conditions are favourable. “I am sure end users cannot wait for very long to buy their flats. There are enough buyers in the market who are desperately keen to have a roof over their head despite the high cost of flats,” Sameer Jasuja of PropEquity says.
There is another view: prospective buyers are not firming up their deals due to the unprofessional conduct of a few realty firms. “Many firms do not hand over flats to their buyers and harass them on various pretexts, which puts off many more genuine buyers from the market,” D K Mandal, president of ILD Developers, says. In the light of this fact, realty firms too have to pull up their socks and keep their words.
Realty firms should seriously address the issues raised by customers in their complaints, as the National Consumer Helpline is getting a barrage of calls from harassed customers of flats and plots. The complaints are wide ranging and clearly indicate that all is not well with realty firms. They seem to look the other way as soon as their customers face some trouble. On an average, the National Consumer Helpline gets close to 75 complaints against the high-handed attitude of realty firms, daily.
The complaints are of various types: construction not completed within promised time, sale of disputed land or property, demand for extra money for various amenities, possession of flat withheld even after payment, promised area not given, not refunding money or cheque bounced, low-quality building material used, not giving the promised (booked plot or flat), builder stops work in between and asks for money for completion, taking deposit for booking and then cancelling the booking over various pretexts, etc.
On an aggregate, the demand in India’s six main markets has declined by around 40% in the past one year.
- Realty companies avoid north Indians during Pitrapaksh; however, they are in talks with other communities, as well as non-Hindus, during this time and canvass their projects and products.
- While most people of this part of the country do not talk about buying flats during this period, others are not that fastidious.