Vikas Rikhye, Real Estate Gurgaon Blogger

Almost five years ago ,the Government of Haryana had put a ban in Gurgaon,on “Registration” of property falling under the category of Builder Floors/ Independent Floors (eg: Three Independent Floors built on Single plot) & it resulted into the following:

• Sale of Builder Floors/ Independent Floors carried out on GPA{ general power of attorney }, an unsafe property ownership title for the buyer.
• As GPA is not considered to be a legal instrument, the buyers would not get bank finance.
• The Government’s loss of revenue in terms of Registration charges & Stamp duty.

It is understood that after conducting in-depth study in this matter the Government has finally legalized the registration of “Builder floors/ independent floors”, constructed on plots by plot owners in colonies developed by private builders such as DLF,Unitech & Ansals etc. as well as colonies developed by Haryana Urban development Authority {HUDA}

It is further understood that in this recent directive the applicants may have to pay 1% of extra Stamp duty, covering the cost of ” Infra -structure up-gradation”
With this vital decision, it not only provides a sigh of relief to the owners of such properties, who have transacted the purchase on GPA{ general power of attorney }, but it has also generated positive results as following:

• With Registration, buyers of such properties will now become legal owners.
• Availability of bank loans.
• Gearing up/ boost in “Guraon Real estate” as the builders will be encouraged to build more of Independent floors considering the large demand for Independent floors.(with latent advantage of sale purchase of plots, positive improvement in “real estate prices in Gurgaon”)
• Over all benefit to the Government revenue growth.

The real-estate experts feel, that this decision, shall help towards mobilizing positive growth in the present sluggish real estate scenario.

Disclaimer

The Author is a freelance Blogger and real-estate consultant,The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad . The author is only delivering his views & inviting response in the way of comments/views from the readers.

Vikas Rikhye, Real Estate Gurgaon Blogger

Affordable homes in Gurgaon

In response to my articles ‘Affordable houses in Gurgaon” on March 8th -10th respectively, where on my article dated 8th March I had requested their comments/views/feedback on the subject.

In this Article I am sharing with you some facts about Unitech based on the feedback received from the readers.

As it is understood, 35 years ago, in the year 1974 Unitech entered Civil engineering ,with determination, having a very clear vision set on future. The company kept on moving ahead, with, experience & expertise .

“Each success” of Unitech ,became a pillar for the next. With an aimto improve the quality of life, Unitech laid firm foundation of future.

More than 3 decades of successful activities included the following:

-Power Transmission lines

-Highways

-Residential & commercial complexes.

-Theme Parks

-Indoor stadiums , Hotels & more

The launch of prestigious projects countrywide itself confirms of its integrity & strengths .

Considering the recent meltdown, it is understood that Unitechhas recently launched a “budget friendly” project in Gurgaon by the name of Uniworld Garden-II.

It confirms their slogan “Our customers inspire us, together we are building the future on solid foundations”

 Vikas Rikhye, Real Estate Gurgaon Blogger

Land Prices in Gurgaon In early 2005 the land prices which were quoted @ Rs 10000-15000 per.sq.yd had seen its peak of more than Rs.50000-55000 per.sq.yd by the year 2007-2008. Whereas now in the present scenario more then 35% fall in price seems to have been recorded. The experts feel that more then 25% correction on present prices is still expected in next 4-5 months

This “U -Turn Trend” is visible, in other “Gurgaon real estate” related fields/ activities, as well.

Gurgaon Shopping Malls:  With original booking price of Rs.6000-7000 per.sq.ft, during peak time, the figure had touched the price of over Rs20000-25000 per.sq.ft. As on day the investors of Shopping Malls in Gurgaon feel a fall of over 30% in some cases, with a further correction in coming months. Unfortunately in some of the Malls, the investors are willing to sell on the purchase price.

Office Space in Gurgaon: In the year 2004-2005,In a good “Glass–curtain building” , the rent quoted was in the range of Rs 40-45sq.ft finally reaching a figure of more than Rs 125 per sq.ft by the year 2008 With the recent Melt-down, fall of over45%, has been recorded.

Residential Apartments in Gurgaon : There is a massive correction is being felt in this segment as well. Taking the year 2004-2005, as a base when “Apartments in Gurgaon” were launched at a basic price of Rs 1500-1600 per sq.ft had reached the the height of over Rs 5000 per sq.ft by the year 2008, have suffered a correction of over 40% fall in basic price. And the” New Housing–Projects in Gurgaon” are being launched @ Rs.2800 per sq.ft

Builders and Developers in Gurgaon: The Global meltdown has very adversely effected this segment of real estate as some of the prominent builder are almost at the point of insolvency.

-Even, some of the Prominent builders have put their existing Projects on hold.

-Whereas ,some of the “Builders in Gurgaon” seem to have abandoned their projects.

-Some of the construction sites are giving deserted look. All as stated above has left the investor in the state of fear & confusion

Real estate Agents in Gurgaon -Real estate Brokers in Gurgaon In the year 2005,there had been sudden increase in number of Brokers in Gurgaon ,as every one could see a big boom in real estate with rewarding result.& during the peak time Professionals like Doctors & qualified Engineers had been seen ,adopting Real estate Agent as profession.

But with recent slowdown & recession, this segment of real estate is equally effected & a large number of “Brokers in Gurgaon” have left this profession , while many others are exploring alternate avenues of employment.

In present scenario of recession “U -Turn in Real estate Gurgaon” was inevitable

Disclaimer: The Author is a freelance Blogger and real-estate consultant, The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad. The author is only delivering his views & inviting response in the way of comments/views from
the readers.

“However, to summaries the past. In anuary 2009,”The builder lobby” had categorical denied the viability of low budget/ affordable homes but after having sensed the demand, they took no time to “Launch affordable homes.”

In the recent past, the “author” has been receiving several phones from friends & clients seeking clarifications, for investment, in new projects, of “Affordable homes.”

• How, some of the builders, who, due to lack of funds have put their ongoing projects on hold , are now are having courage of launching new projects ?
• Some of builders are launching projects in the new sectors covered under “Gurgaon master plan 2021″ where HUDA might take several years from now, to provide basic infrastructure like Roads, Sewer, Electricity & other basics .
• Would the Builders who had to bear the burns of Global Meltdown , be able to deliver .their promises under this financial Crunch ?
• In the present continued negative trend in Gurgaon real-estate,the prices of these “Affordable Homes” projects do not justify to be,as low budget prices.

Some of my friends, even feared it to be a bait, by some of the builders to collect money , to meet the immediate monitory crises.

Since, all this as mentioned above, leaves me in a state of confusion,I ,therefore , invite the readers for their contribution of their view on it.

Disclaimer: The Author is a freelance Blogger and real-estate consultant,the readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad .The author is only delivering his views & inviting response in the way of comments/views from the readers

Vikas Rikhye, Gurgaon Real Estate Consultant and Blogger

The historic Global meltdown has also shown nationwide fall of Real estate prices. After a bubble like boom the bubble bust has claimed more than 30% drop in prices. It is also observed,that some of the builders are at the point of insolvency.Government is strongly adopting positive methods to restore the “confidence of common man” to acquire an affordable home.

Since, in the real-estate market has been hit most at the higher segment, therefore, it is felt that prospective buyers are showing interest in Low Budget houses / apartments, mainly in the range of 30-35 lacs & in some cases even lower.

It is understood from sources that in the month of January 2009, “the builder lobby” had expressed to the media that affordable houses were unviable.

But, after having sensed the market demand, many of Gurgaon Based builders and developers are being seen, launching new Projects , offering various low budget options.

With a most interesting observation, it is felt that, while under the Wave of Recession some of the prominent builders who had put their existing projects on hold , the same builders, now on other hand are launching new Projects , offering various low budget options.

All as stated above gives us a food for thought as to how: “affordable houses which were unviable are viable now”

Disclaimer

The Author is a freelance Blogger and real-estate consultant. The readers are advised to do their own research & analysis before taking any action. The author is not responsible for any consequence good or bad . The author is only delivering his views & inviting response in the way of comments/views from the readers.

Vikas Rikhye, Real Estate Blogger and Promoter

In absence of regulatory authority or a governing body, the real estate activities in India had been in highly un-organized manner but with socioecnomic awareness the real estate sector is also moving toward a positive direction.

Professional attitude of real estate companies and the presence of MNCs like CB Richard Ellis,Knight frank, Chesteron Meghraj & fast growing trend of property portals like 99Acres, Magicbriks,Indiaproperties etc are the indicaters of a “Professional Real estate” of tomorrow.

Still there is a large section which remains unorganised and non-professional. Add on of property dealers and so called Property conultant, who neither have proper knowledge nor experience in this field are making this profession as “Third Rate”. They seem to be a preffered choice of that sectionof society that believes in parellal Economy, as both can understand each other’s language very well.

Real Estate is a backbone of every economy be it a developing economy or a developed economy. In most of the developed countries real estate is a organized sector with licensed real estate agents who act as a very important intermediary between buyer and seller. The real estate agents is a specialized and organized work in developed countries where proper licenses are issued to real estate agents after going through a training procedure.An un-organized sector with no regulating authority /governing body reduce the transparency in transactions make them shady, speculative with uncertain market conditions thus making it a distant dream, for a common man, to own a property

Remedies suggested:

• Form a governing body: It is very important to form a governing body whoch has direct influence on the real estate players and which can give direction to the real estate market for its growth. 
• Fix the brokerage: there should be fixed brokerage for sale, purchase and rent deals etc in the market and no broker should charge a price above or below the market rate at any time. The prevailing rate of sale and purchase is anywhere between .5% to 2% of sale/purchase price.
• Education: learning is a very important tool for innovation and growth of an industry. If an Insurance agent is needed to clear an IRDA paper, an mutual fund seller needs to pass an AMFI exam and even a stock broker needs to clear a minimum no. of papers in order to exercise hid ticket in the stock market. So it is very important to device a paper which has a mix of mathematics and legal issues so that a real estate agent has proper knowledge on various obstacles or legal issues which can surface in a deal.
• Give License and code: After an agent is able to clear his exam then he should be issued a real estate agent license along with a code eg. xxx1986xx. Each and every agent should be provided with a unique code which will ascertain his identity and thus lead to reduction of frauds by brokers to buyer/seller.
• Get them in the Tax net: As the real estate sector was unorganized thus there is high level of tax evasion by the real estate agents. There is a remedy to prevent this. The unique code given to the real estate brokers will be given registered on legal papers of the deal and the records of same can be given to IT department. As each and every deal will be registered the brokers will be bound to disclose their brokerage.

Some of the thoughts & remedies as stated above have come from Mr. Saurabh Dhawan. Saurabh is 22 years of age and is pursuing MBA from IIPM. Saurabh is a Blogger, is promoting Medical Tourism in India

This a Guest Blog Post by Mr . Saurabh Dhawan. Saurabh is 22 years of age and is pursuing MBA from IIPM. He can be contacted at saurabh [dot] 3767 [at] gmail [dot] com.

With the passage of time the definition of luxury has changed in the last decade. Every product has its own market from guest houses to hotels to luxury hotels everyone has its own niche market to offer. Service apartment is one such type of market which is a growing market with a good demand in Metros and is being catered by Hotels and Guest houses. A service apartment is a furnished residential space which gives a homely look and has all the facilities from a fully furnished modular kitchen with all the cooking utensils, refrigeration, cooking gas, home appliances to other useful utensils in the kitchen. In the room it has Home Theater along with heating or cooling systems and other utilities which are generally found in a home and also telephone and internet connectivity. In certain cases security and power back are also prevalent. In short it is a home away from home.

The concept of service apartment is quite prevalent in western countries but it now coming up in India. Service Apartments are generally taken by corporates who have to stay for longer duration in India. When these corporates come to India they face some problem with culture, environment and food. The foreigners who come to India are not able to adjust themselves to the local food and environment and they are not able to enjoy the lifestyle they are used to.

This is where a service apartment comes to there rescue. These foreigners can cook their own food, maintain their own apartment and can also be provided with domestic help in India which is relatively cheap as compared to western countries. This helps them to feel like home and enjoy their stay in India with the best of health and spirits.

Service Apartments have a great future in Delhi NCR because it is a BPO and MNC hub, NRI tourism destination and an important diplomatic destination in South Asia.There is a constant increase in inflow of business travelers and tourists which are increasing year on year and the Medical tourism boom in coming years will supplement these demands as a service apartment can give feel of a home to a patient who can enjoy home cooked food after and before treatment.

The tariff of a service apartment can vary with the duration of stay by a traveler. Tariff for a service apartment can start from Rs. 7000/- Per month to Rs. 300000/- Per month depending on size of apartment and the level of luxury offered in the Apartment. The tariff generally includes the maintenance and water bills but may or may not include the electricity bills for the apartment. In all a service apartment have a great demand ahead in India

This a Guest Blog Post by Mr . Saurabh Dhawan. Saurabh is 22 years of age and is pursuing MBA from IIPM. He can be contacted at saurabh [dot] 3767 [at] gmail [dot] com.

There has been an uptrend in property prices in Delhi NCR which has gone up really fast and out of the hand of a common middle class population to buy a flat in NCR. Its high time that the builders should experiment with the taste buds of buyers and try their hand at STUDIO Apartments. A Studio apartments are typically one room sets that have an attached kitchen and bathroom. Such apartments may or may not have an attached verandah too. Studio apartments are quite popular in places like Mumbai and Banglore etc but the trend has not yet picked up in Delhi NCR.

If we look at feasibility of an Studio Apartment in NCR then they are very much feasible. A large number of young executives are working in Delhi NCR coming from different places around India. A number of foreign Banks, BPOs, Multi national corporations and big Indian companies have their offices in and around Delhi. The young executives generally enjoy a rich disposal income and enjoy a superior lifestyle along with young married couples or for even that matter for guests of corporate houses who prefer to live and cook alone a studio apartment can provide a home along with privacy.

A Studio apartment can be in range from 250 Sq Ft onwards till 1000 Sq Ft depending on the luxuries one wants to enjoy or add. Like a 300 Sq Ft apartment can have a room with kitchen and attached bathroom and say a 600 Sq Ft room can have a lounge for sitting with a study and 1000 Sq Ft can have a big room with Dining and Lounge along with a verandas and optional parking lots can also be offered to the buyers. A studio apartment can range anywhere between 8,00,000 to 45,00,000 in case of super luxurious studio apartments.

The concept can be a hit if the Builders sell fully furnished ready to move studio apartments to buyers who want single rooms yet elegant and luxurious rooms along with all the facilities like modular kitchen, furnished and augment the profit of the builder thus saving the wasteful time and cost of the buyer to get it furnished.

In the time when the interest rates are high and the buyers do not want to dig deep into their pockets to purchase a home these studio apartments can be a life saver for builders too who are facing liquidity crunch and lack of demand in market.

Saurabh Dhawan

Vikas Rikhye, Real Estate Promoter and Blogger

In the recent past the Fast Growing Township of New Gurgaon has witnessed a
Massive growth in housing sector.

The well established real estate companies like DLF & Unitech have launched and delivered prestigious residential project. Comparatively new entrants like Bestech,Omaxe, Parsavnath Raheja & others got an opportunity to prove their competence.

All this as stated above “Township of New Gurgaon” came in to a light as a very
strong investment destination.

As it would have resulted, the investment wave in Gurgaon ,became stronger and stronger and the Secondary market shot up sky high. With all this , the basic participants in real estate game like Builders, Brokers & Investors found themselves in a Win - Win situation.

Yet there was another Important Segment of Actual-User, who had missed the boat due to unexpected increase in Real estate prices, was still awaiting an affordable housing solution.

The announcement of Master Plan 2021, gave a sigh of relief to this Important Segment of Actual-Users .But at same time it gave opportunity to many New Player to enter the real estate Game.

And now an interesting/ uninteresting era starts:

As many of The new Players started advertising launch of their new projects with luring advertisements & Broker incentives.

It has been observed by many real - estate experts that some of the projects falling in Master Plan 2021 are being launched ,where at present the basic infrastructure like roads, water, sever, provision for required Power etc. is missing.

While some of the Promoters are asking for 25% of the amount within in 45 days of booking & balance is construction linked . Even we feel every thing in fairness, yet, it raises following queries in mind:
• What is the reliability level of “Unheard of as Builders”
• Transparency level of commitments.
• Experience for delivering committed project .( for those who have not delivered any Project in the past )
• Inventor’s Risk coverage.

For a while let us be Optimist that in all the fairness the project is delivered , Yet another question mark nags the mind that will there be basic infrastructure like roads, water, sever, provision for required Power etc. where presently nothing is visible on the ground except open fields & in some cases abandoned uneven patches of land.

Will somebody guide me to clear my doubt as well of others who agree with as stated above.

Vikas Rikhye,India Real Estate Blogger

Gurgaon is a city that is rapidly moving towards Globalized economy, but it the city requires, an effective planning for improvement in basic infrastructure to truly transform into be “world-class city” in coming years.An effective Transport system is the base for any infrastructure development.

Although eight lane toll expressway between Gurgaon and New Delhi, that provides non-stop connectivity to the I.G.I and the Domestic Airport and to Dhaulakuan in Delhi over a distance of 28 kilometers (18 miles), and includes 7 flyovers and 5 underpasses along the stretch, has made a remarkable comfort level to the commuters, still for main city of Gurgaon , a well planned efficient surface transport planning seems to be the basic need of the day.

While the road layout in the city is quite well-planned, but a drives to improve the condition of roads is very badly required.

Besides roads, the main problem of the city is its virtually non-existent city public transport. A handful of local buses plying on a few routes & besides cycle rickshaw the only other form of public transport is shared auto- rickshaw which are generally overcrowded.

Mainly Taxi service in Gurgaon is limited to Airport/Railway Station dropping/ picking. Besides taxis for the use of the ever growing call center and information technology industry. Gurgaon currently has 5 types of taxis. Normal Black top yellows taxis, auto rickshaw(the cheapest form of taxis in Gurgaon), tourist taxis, radio taxis and white taxis.

Generally, people in Gurgaon prefer cars to two-wheelers because of the dusty nature of the region, extreme weather condition, and frequent two-wheeler accidents. Most of the people in new township, own cars as the cream of the delhites have moved to Gurgaon. But an average white collar job person is desperately looking forward to improved means of transport system.

There seems to be only ray of hope when “Delhi Metro Rail Corporation” starts its operation to Gurgaon as expected by January 2010.

To be continued…