Five Checkpoints in Your Home Buying Agreement

Source: Financial Chronicle, June 4, 2013, Page – 3

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FAR along proposed Noida Metro Route to be Increased

In view of the projected increase in population density along the Metro corridor planned between Noida and Greater Noida, the boards of the two authorities have jointly approved a proposal to increase floor-area ratio (FAR) by 0.5% on all plots located within 500 metres on either side of the proposed line. Proceeds from the sale of additional FAR would be used to strengthen the resources of the Metro system.

With the idea of increasing additional FAR, the authorities have got an easy way to raise funds of Rs 5,000 crore for the 29 km-long Metro link project. The Authority had earlier in 2001 mulled over the idea of a public-private partnership (PPP) scheme for constructing the Metro line.

The authorities have planned to increase the FAR from the existing 2.75 to 3.5 along both sides of proposed Metro link. Real estate players in the region have also decided to play upon the idea. “This move will not only help the authorities raise funds, but also help boost the real estate industry that has been witnessing a slump. It will help builders make profits and maintain flexibility in their projects. The profit from the proposed project will be passed on to homebuyers,” said Vijay Gupta, member Assocham and CMD Orris group.

“Increase in FAR would also benefit Noida Metro in generating profits ahead of schedule,” said SS Bhasin, MD, Bhasin group. Officials said that increase in FAR means that a developer can build 200 more housing units. Group housing projects in Sectors 45, 93, 119, 120, 121, 128, 134, 137, 151, 144, 143B, 151 and 168, among others, will benefit with this new plan.

Source: MagicBricks.Com, May 29, 2013

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New land prices dampen Noida-Greater Noida’s Realty

With the three development authorities of Noida, Greater Noida and Yamuna Expressway having revised their land prices, the dream to build or buy a house of one’s own has become costlier. These authorities have raised the land prices by up to 40% of their current rates.

The Greater Noida Industrial Development Authority (GNIDA) has prepared a new formula for land procurement under which it can directly purchase land from the farmers. GNIDA has sent this policy to the Uttar Pradesh state government for its approval.

Under the new policy, landowners or farmers will have two options: either they directly sell their land to GNIDA or go through the provisions of Section 4/17 or Section 6/17 of the land acquisition policy. For direct land purchase, farmers or landowners will get an additional 20% of the declared compensation (Rs 1,512 per sq metres) as a no-litigation bonus. In addition, they will also benefit from the rehabilitation policy.

GNIDA has already raised by 45% its existing budget for infrastructural development and social services, which now stands at Rs 7,005 crore in the financial year 2013-14. GNIDA and the Yamuna Expressway authority have also increased the compensation rate by 15% to be offered to farmers for acquisitions, besides providing a host of other benefits to them.

New Noida Metro Rail Corporation

The Noida authority has announced the setting up of the Noida Metro Rail Corporation (NMRC) as a special purpose vehicle to facilitate the construction of a proposed Metro line between Noida and Greater Noida.

The Metro line, first mentioned in January, will be constructed without DMRC’s help, and is an initiative of the Noida and Greater Noida authorities.

Rama Raman, the chairman and chief executive officer of GNIDA, says: “The NMRC will see an initial investment of Rs 1,000 crore. In an earlier board meeting held in January, a 29km-long Metro line was announced between Noida and Greater Noida, at an estimated cost of Rs 5,064 crore. To facilitate this, the Noida and Greater Noida authorities have begun the process of setting up a special purpose vehicle, the NMRC, which will see an investment of Rs 1,000 crore.

We will soon approach the registrar of companies, Uttar Pradesh, for clearance and work on the NMRC will begin soon. The board passed an MOU with regard to the extension of the DMRC line between Botanical Garden and Kalindi Kunj. The 3.96km line is to be built at a cost of Rs 845 crore. We have already passed the MoU from our end and will seek the clearance from the UP government. After that, the proposal will go to the Union urban development ministry for final clearance.” Around 22 stations have been proposed to be built on this Metro line, which will run along Noida-Greater Noida Expressway.

The line will between City Center, Sector 32 and Depot Station (Bodaki). The proposed stations on the route will include Sector 51, Sector 50, Sector 78, Sector 101, Sector 81, Dadri Road, Sector 83, Sector 137, 142, Sector 143, Sector 144, Sector 147, Sector 153, Sector 149, Noida and Knowledge Park 2, Knowledge Park (future), Pari Chowk, Alpha 1 Alpha 2, Delta 1 (future), Knowledge Park 4, and Depot Station at Bodaki, Greater Noida.

The authorities estimate that nearly 65,000 passengers will use the Metro every day. The proposal to extend the City Center Metro line by 6.67km to Sector 62, touching NH-24 has also been approved. The DPR for this much-delayed project has been forwarded to the UP government. In addition, the Noida-Greater Noida authorities have also decided to go ahead with civil work on the Metro link between Noida and Greater Noida West (Noida Extension).

FAR to be increased

Rama Raman says: “The total cost of the extension of the existing Metro track comes to around Rs 6,000 crore. The authorities will raise the funds through real estate development. The authorities will increase floor area ration (FAR) from existing 2.75 to 3.5 in certain areas. For this, the authorities will develop special corridors along Noida-Greater Noida Expressway. The FAR would be sold in group-housing projects dotting the expressway. The Noida authority has announced an increase in FAR allowed for land within 500 metres of the Metro corridor along the Noida-Greater Noida Expressway. The authority will increase the FAR by 0.5 for building within 500 metres of the Metro line.”

Rakesh Yadav, the managing director of Antriksh Group, says: “This will increase the value of land near the Metro line. The increased revenue will aid development work including that of the proposed Metro lines along Noida-Greater Noida Expressway.”

Land price goes up

In Noida, the allotment rates of group housing, residential and institutional properties have been raised by 15%, commercial and industrial land rates have gone up by 30% and 11.25%. In Greater Noida, the allotment rate for land across all categories, except industrial, has been uniformly revised by 8.53%. The Yamuna Expressway area has also seen a raise in allotment rates of all categories of land by about 15%. The allotment rate for industrial properties remains the same as last year.

In July 2012, the development authorities had raised the rates between 7.5% and 40%. The raise is especially important for the GNIDA, which is reeling under a major cash crunch.

“The increase in rates was essential considering our current funds shortage. The land row in Greater Noida West also imposed an extra burden on the authority in the form of enhanced compensation and rehabilitation packages for the farmers. Besides, many development projects have remained stalled for months,” Raman said.

According to the new allotment rate, residential properties in Noida have been revised by at least Rs 8,115 per sq metre in A Category sectors like 14,14A, 15A, 17, and 44 and by Rs 2,950 per sq metre in E Category sectors like 102, 115, and 158. Grouphousing flats in Noida have are costlier by almost Rs 11,065 per sq metre in A category areas and by Rs 4,180 per sq metre in E category zones. In the institutional category for IT/ITeS properties, Noida buyers will have to shell out Rs 33,940 per sq metre now. For plots in Phase I and III industrial areas of Noida, the allotment rates are Rs 20,990 and Rs 7,740 per sq metre.

Now residential flats in Greater Noida will be costlier by almost Rs 1,592 per sq metre while for commercial space, an extra Rs 3,155 per sq metre will be charged. The new allotment rates in Yamuna Expressway Industrial Development Authority (YEA) have also been increased between 14% and 18%.

Impact of increased price on realty market

R K Arora, chairman and managing director of Supertech Limited, says: “Undoubtedly, it’s a steep raise and going to affect the buyers and investors who were looking at this booming region as a reasonable and affordable zone. It can be detrimental to real estate business. The fast developing zones like Noida, Greater Noida and Yamuna Expressway are known as prime and ideal location for affordable range houses. Now it is no longer the same due to the rise by 8.53-30% in allotment prices across all categories of land.

The burden will fall on the customers and they need to pay more now.”

“The increase in the allotment rate is a bit too much as a marginal increase could have been a better idea. Though the present buyers need not worry about the increase in prices, in new projects there can be an increase in prices. Buyers would be affected by the increase in prices. People who have been buying smaller plots of 100, 200, 300, and 500 sq metres will now be more interested in group-housing projects due to the increase in prices,” Ashok Gupta, managing director of Ajnara India Ltd, said.

Deepak Kapoor, director of Gulshan Homz, said: “The increase has become a periodic feature which happens every year. The effect is yet to be calculated but it’s certain that future projects will become costlier. The main issue to be looked into is the feasibility of affordable housing, which looks diminishing. With such increase in land rates every year, affordable housing will become a distant dream.”

Source: MagicBricks.Com, June 3, 2013

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Tax Liability on Capital Gains

Gains or losses arising on transfer of property are subject to tax under the head of ‘capital gains’.

According to the Income Tax Act, a ‘capital asset’ means property of any kind held by a person, irrespective of whether it is connected to his business or profession.

It does not include certain items like stock-intrade, consumable store or raw material for business, personal effects, and certain agricultural land.

Any real estate, including a flat, site, farmhouse, commercial property, etc, are all subject to capital gains on sale or transfer.

It is not only sale of property that attracts capital gains. Even certain specified transfers are deemed as sale and any gain arising is subject to capital gains tax. Transfer of property means conveying property, in present or in future, to one or more people.

The income arising on transfer of a capital asset is subject to capital gains tax — if there is a transfer of a capital asset during the previous year. Transfer will be deemed to have taken place on the date on which the possession is handed over. In case the payment has been received, but the transfer not effected yet, it will not be treated as a sale transaction.

Under the income tax laws, a capital asset may be a long-term capital asset or a short-term capital asset. In case a property is held for more than 36 months, the capital gains arising from it are treated as longterm capital gains. In case a property is transferred or sold after holding it for less than 36 months, the income will be treated as shortterm capital gains, and vice versa for capital loss.

It is to be noted that this is different from the provisions applicable to securities including shares and mutual fund units, where the qualifying period for long-term capital gains is over 12 months.

The period of holding determines taxability — whether it is a long-term capital asset or a shortterm capital asset — and accordingly whether you have incurred a long-term or short-term capital gains or loss.

The amount of capital gains is arrived at by applying the concept of Cost Inflation Index (CII). The index is published by the I-T department. The present worth of a property is arrived at by applying the CII to the cost of the property as well as any improvements made to it. This is deducted from the consideration amount received to arrive at the capital gains.

If the amount of the capital gains is equal to or less than the cost of the new property, the capital gains will not be charged to tax. For the purpose of computing, in respect of the new property, any capital gains arising from its transfer within a period of three years of its purchase or construction, the cost will be reduced by the amount of the capital gains.

A capital loss, whether short-term or long-term, can be carried forward and set off for the next eight years. After eight years, it lapses and cannot be carried forward any more.

You may save tax in respect of long-term capital gains by investing the gains in a residential property or in capital gains bonds. It needs to be ensured that the conditions prescribed under the relevant section are strictly complied with. Otherwise, the amount claimed as exempt can be made subject to tax.

Source: Times of India(Property), May 25, 2013

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Gaursons purchases land from Jaypee for Rs 1,500cr in Greater Noida

Realty firm Gaursons today said it has bought 300 acre land on Yamuna Expressway in Greater Noida from Jaypee Group for over Rs 1,500 crore to develop an integrated township.

Ghaziabad-based Company would launch the township by end of this year and plans to construct about 15,000 apartments in affordable segment.

“We have purchased 300 acre land from Jaypee Group on Yamuna Expressway for more than Rs 1,500 crore. The agreement between the two companies has already been signed,” Gaursons India Managing Director Manoj Gaur told PTI.

Jaypee Group has about 4,000 acre land alongside Yamuna Expressway, which was built by them only.

Gaur said the company has already paid about 25 per cent of the total amount of the deal.

Asked about the source of the funding, he said it is through bank loans and internal accruals.

“We will launch the township in six months. the project will have about 15,000 flats, plots, school, hospitals and other infrastructure facilities,” Gaur said, adding that the flats would be in the range of Rs 25-40 lakh.

The township would be in the vicinity of Jaypee group’s F1 Track, Gaur said. He also noted that land is clear as Jaypee Group has taken it from the authority.

Gaursons has big presence in the Ghaziabad, Noida and Greater Noida region.

It is currently developing a 240-acre township ‘Gaur City’ in Noida Extension in partnership with another realty firm Saviour – Real Estate Developers & Builders In Delhi NCR. About 25,000 housing units are being developed in this township at an investment of about Rs 5,000 crore.

Gaursons is also part of township ‘Crossing Republik’ in Ghaziabad, being constructed jointly by seven developers.

Source: The Hindu Business Line, Delhi, May 24, 2013

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Gaur City 2 – Avenues and Facilities

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Ghaziabad – Getting Fame for its Attractive and Affordable Areas

Source: Hindustan Times (HT Estates Hindi), May 18, 2013, Page – 5

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Government gets Mumbai International Airport to build Apartments in lieu of Airport Plot

Babus in the central government have sought a unique compensation for vacating a plot of land at the Mumbai airport – get the company that owns the airport to build swanky sea-facing apartments for themselves in tony South Mumbai for free. 

In a first-of-its-kind barter deal between the government and a private firm, Mumbai International Airport (MIAL), the company that operates Mumbai’s airport, has been asked by the Central Public Works Department to build a new tower at Hyderabad Estate on Nepean Sea Road, an office building in Kane Nagar near Dadar and a 50-apartment block near the airport in return for vacating a 13-acre airport land, where the department has had 278 houses and a few godowns for 50 years. 

The prestigious Hyderabad Estate – where several top bureaucrats, including IAS officers, chief commissioners of income-tax as well as officers of the customs and excise departments, have lived for over four decades – is in an elite neighborhood that houses the residences of many of the country’s big industrialists. Apartments in this area sell for between 20 crore and 50 crore. 

The government colony near the airport has a built-up space of 1, 67,174 sq ft, and as per the arrangement, MIAL will rebuild as much space for CPWD in the three locations. There will be no transaction, a senior official at the CPWD told ET, requesting not to be named. 

He said the government is faced with a severe shortage of homes for its senior officers in Mumbai, where real estate prices have shot up in the past few years. 

“A block of apartments on Nepean Sea Road, another 50 apartments near the airport and an office building – all for free – is what we thought is a damn good idea,” the senior CPWD official told ET. 

GVK, which owns MIAL, did not respond to an emailed questionnaire. 

Source: The Economics Times

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Celebrating 18 Years of trust of over 18000 Families

Gaurs presents “The 60 Days 60 Cars, Miss a Car Win a Crore Carnival” at Gaur City Site in Greater Noida West (Popularly known as Noida Extension). The carnival is running successfully from 26th April and will go on upto 24th June, 2013 at Guar City Site.

Book a property in Gaur City and Gaur City 2, and get a chance to win a car everyday for next 60 days and one lucky person out of those who miss a car will win a crore rupees..!!

Wish to participate in the carnival:-

Click here to register for the Carnival

Click here to register for the Carnival

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Gurgaon Market Holding Up

It is still an opportune time for end users to buy property in the new developing sectors along NH-8, Dwarka-Gurgaon Expressway, Golf Course Extension Road, and main Gurgaon-Sohna Road.

Arecent survey says that sentiment in Gurgaon’s realty market has been reasonably positive. With improving infrastructure, fast connectivity, and new world-class projects, rental and capital values have been indicating healthy growth in the new developing sectors along NH-8, Dwarka-Gurgaon Expressway, Golf Course Extension Road, and main Gurgaon-Sohna Road.

Impact of new master plan: By implementing the new Gurgaon-Manesar Master Plan, 2031, and Sohna Road, 2031, the Haryana state government has set in motion multiple development activities in the new developing sectors like 86, 90, and 91.

Land has already been allocated for five hospitals and three colleges in the area while new commercial areas are to be developed in the form of retail malls and office complexes. Road links like the 150mwide Northern Peripheral Road (NPR) and the 90m-wide Southern Peripheral Road (SPR) will bring these areas within sniffing distance of the IGI Airport and ease the traffic congestion considerably.

Land for all sector roads in Sectors 81 to 95 have been acquired and developing agencies like Huda have already begun construction of these roads, which are 60-75 metres wide with 12-metre-wide service roads on both sides.

The MRTS corridor along the NPR link to Delhi, starting from Dwarka, will be extended further up to the 400 acre-Inter State Bus Terminal set to come up near Kherki Dhaula. Flyovers have been planned on all major intersections. The town and country planning department of Haryana has already started work on a number of proposed flyovers and underpasses on all major road intersections.

Real estate development: Owing to good connectivity and availability of social amenities and work space in the city, many people prefer to invest in residential realty of Gurgaon.

Analysts say that real estate development in Gurgaon is flourishing as investments have given higher returns to most property buyers. Gurgaon has undergone a lot of infrastructural upgrade in the past couple of years and this has boosted its prospects among other investment destinations in the NCR.

Several realty projects have come up all over Gurgaon, but sectors like 22, 52, 57, 79, 80, 82, 84, 89, 92, 99, 103, 106, 112, etc, have seen the maximum activity in housing projects.

Realty players like DLF, Unitech, Adani, Godrej Properties, Tata Housing, Chintels, Raheja Developers, Ansal API, Ansal Housing, MGF EMAAR, M3M,Paras Buildtech, Orris Infrastructure, Amrapali, Supertech, Antriksh, Homestead, CHD Developers, Gold Souk, Ramprastha, Assotech Ltd, etc, are coming with residential and commercial projects in different pockets of Gurgaon.

Realty giant DLF has plans to develop a new zone, Garden City, over 450 acres in Sectors 86, 87, 90, 91, and 92. This zone will comprise group housing, commercial, and plotted development; this zone is nestled in 1,000 acres open spaces.

Garden City comprises projects like Primus, Regal Gardens, New Town Heights, and plotted development; it will also have a commercial complex, Galleria 91. Galleria will house multiplexes and anchor stores. Garden City is close to Sectors 74A and 75A, the new commercial hub in Gurgaon. The area is a strategically located as it is close to the Metro corridor and the IGI Airport. DLF has licensed group housing colonies over 100 acres in Sectors 86, 90, and 91 while 3,200 apartments are under construction in Garden City.

DLF also has projects in Sectors 86, 90, and 91 over 80 acres.

After the early success and recognition of Gurgaon One, Alpha G:Corp is set for another residential development over 12.5 acres in Sector 84, which will have 670 apartments. Gurgaon One in Sector 84 is coming up at a cost of Rs 400 crore and is adjacent to the 210-metre-wide forthcoming expressway that will connect to Dwarka and IGI Airport. The project is around 2.5km from the Metro hub and the Inter State Bus Terminal.

R S ‘Pickles’ Sodhi, the MD of Alpha G:Corp, says: “Gurgaon One in Sector 84 will comprise seven independent towers, each over twenty floors; these will have combinations of two, three and four bedroom apartments.

“With 90% open space and around 60% of the area dedicated to green areas, Gurgaon One will stand out as one of the greenest residences in the city.”

Gurgaon One has been designed by Arcop; the new project will have features like zonal greens, three-sided open apartments, sustainable energy and water conservation, all-encompassing waste management, a recreational club with social and health facilities, safe pedestrian walkways, facilities for physically challenged, a helipad for emergency landings, and professional facility management to provide a strong sense of security and hygiene to residents, a spokesman of the firm said.

Encouraged by its launch of one of the tallest mixed land-use realty projects, Supernova, in Sector 94, in concert with the world famous Armani Group for interior designing, Supertech Ltd has recently allocated 100 acres of land for an integrated township. The forthcoming integrated township will be an answer to high-end multi-luxury residential housing; this is located in Gurgaon’s Aravali range in Sector 79. Supertech has already started construction on its realty project Supertech Araville in Sector 79, which offers 2- and 3BHK residential apartments facing a dedicated 10 acers of lush green area.

R K Arora, the CMD of Supertech Ltd, says: “Supertech Araville is a premium residential project in the lap of the Aravali hills. The project is an unmatched mix of amenities, conveniences with a strategic location. This prestigious project will redefine lifestyle living.”

New developing areas like Sector 80-93 in Gurgaon are an ideal showcase of the development in the region as lots of construction work is taking place here and these are turning into residential and commercial hubs.

These sectors also attract special attention as they are connected to major industrial zones of Manesar that house leading industrial units like Honda, Maruti, Minda, etc. Orris Infrastructure, with more than 1,400 acres of land bank in prime developing sectors, has residential projects like Carnation Residency, Aster Court and Aster Court Premier at Sector 85 and commercial projects like Orris Business Square located in Sector 82A and Floreal Towers in Sector 83.

Vijay Gupta, CMD, Orris Infrastructures, says: “This region is in the thick of action as there is a lot of construction work in full swing and builders have plenty to offer to those who aspire to have a dream home in New Gurgaon which has become a preferred destination for lifestyle living and commercial enterprise.”

Ashish Gupta, the managing director of Gold Souk, says: “Our forthcoming projects are located on the proposed 150 metre Gurgaon Extension Road and on the two sides of the 60 metre roads of Sectors 17 and 25.” Advance India Projects Ltd (AIPL) has launched a multistorey premium residential project, Peaceful Homes, in the Delhi NCR market. Spread over 18 acres, Peaceful Homes, is a multi storey premium residential project in Sector 70 A; it offers 2-, 3- and 4BHK premium apartments and penthouses of 1,565-2,925 sq ft.

Sanjay Sachdeva, the executive director of AIPL, says: “Peaceful Homes is well connected to NH-8 and Golf Course Extension Road. The close proximity to the residential, commercial and retail on the Southern Periphery Road add to the value of the project. We have taken the quality standards to new heights over the past 20 years. We believe owning a place which one can call home shouldn’t be a matter of strife. Neither should living in it be a cause for stress”.

After the approval of New Master Plan for Sohna 2031, Gold Souk is coming up with its new project, Gold Souk Golf Links, a premium highrise project in the sizes of 1,250 sq ft-2350 sq ft at Rs 5,000 per sq ft. The group has over 200 acres of land banks under the Sohna Master plan and plans to launch residential plots, villas, highrise apartments, shops, serviced studio apartments, offices and 5-star hotels.

Good returns in new sectors: There are also major developments going on in sectors like Sectors 52, 53, 55, and 57, just near Golf Course Road and Sohna Road. In two-three years, investor can reap good returns from these regions. The area is well located and fully inhabited and is in close vicinity of malls, schools, hospitals and the Metro station. A number of independent houses and apartments are already there in these sector. Some of the well-known societies in this area are Ansal API’s Sushant Lok 2, 3, BPTP Freedom Park Life, AEZ Aloha Apartment, M2K’s White House Apartments, Tulip Garden Apartments and Clarion ‘s The Legend 2BHK and 3BHK luxurious apartments with all modern amenities.

Source: Times Property, April 27, 2013, Page – 13

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