Vikas Rikhye, Real Estate Blogger

NCR Scenario

Having an independent bungalow had been a status symbol and this status tag was chased, up to farm houses by those who could afford. Over a period of time middle class and upper middle class were satisfied with flats offered by DDA and GDA.

The real estate spectrum was lit up with new horizons, on the turn of millennium, when, builders like Unitech and DLF offered a wide range of options in gated complexes of apartments and bungalows. The gated complexes offered security and safety along with facilities like 24 hours 100% power back-up, swimming pool, Tennis courts, gymnasium as well as well maintained gardens.

With the presence of MNCs in Gurgaon and globetrotting lifestyle of executives the concept picked up like wildfire, with a special focus of end users on apartments as compared to independent bungalows. For end user, perhaps the apartments were more affordable and manageable.

Once it was established that the apartment segment has greater demand, the builders swung in to action of offering a wide range apartments at different locations in Gurgaon, Encouraged by the increasing demand small/new players joined the fray. For a prospective buyer, it seemed affordable because of easy home loans. With increasing demand, the property developers have been investing heavily in affordable housing projects for middle income group, making “affordable housing” a largest and fast growing segment in real estate industry in Gurgaon.

In affordable housing seems to be a passe now as the recent rapid economic growth has led to a rise in purchasing power of the young generation and the want to invest in properties that offer luxury living. Moreover, due to rise in per capita income and easy availability of housing loan, people are moving ahead upgrading their standard of living. Now, the focus is being shifted from basic to high end facilities, amenities, specifications and neighborhood.

In present real estate scenario the real estate developers are showing renewed interest in luxury home segment to cater the affluent lifestyle demanding high end luxury living with a USP of special arrival effects and it seems that undaunted expectations of affluent is ready clientele for them.

Vikas Rikhye, Real Estate Blogger

In absence of a proper Regulatory Authority the real estate transactions have to undergo lot of ambiguities and the buyers are at the mercy of the property dealers who make their own transaction modes/methods of documentation, which sometimes do not match the laid down procedure of the competent authorities. The validity of such self-styled documents is usually referred with the reputation or the Muscle power of a particular broker.

Referring to recent news in a national daily, on real estate frauds, that revealed the increasing quantum of cases where the innocent have been a victim of circumstances.

It is understood from sources that Haryana Government has taken a serious note of the situation and the Government has introduced a new procedure to make the property transactions more transparent.

The sources add, that the new rule makes it mandatory for buyer/seller to submit computerized affidavit with the applicant’s photograph scanned on it during the registration of any property. The affidavit is given by an applicant on stamp paper while buying or selling the property.

It is also understood that the Government is also planning very shortly, to display the records of all property transactions on the internet/website, as this would increase the accessibility of information to the property owners from anywhere in the world to know the status of their property.

Vikas Rikhye, Real Estate Blogger

It has been observed in the past that growing “Corporate scenario”, has generated tremendous demand for “Service apartments in Gurgaon”.

With the recent study conducted on growing need/demand for serviced apartments in Gurgaon, a surprising fact has astonished, that it is the increase of Medical tourism that is equally contributing to the demand of “Service Apartments” in Gurgaon.

With opening of Specialty and Multispecialty Hospitals in Gurgaon there is a definite boost to medical tourism. With existence of hospitals like Medanta Medicity, Artimis, Max and Paras there is a remarkable increase of floating population accompanying the patient, not only from different parts of country, but the inflow of foreign patients is also quite visible.

The patients visiting for treatment don’t depend only on the accommodation, during the hospitalization but they also require “pre-hospitalization and post hospitalization” accommodation for a period which is much more than their actual stay in the hospital. Moreover, the relations escorting the patient also need to stay for the period as defined earlier.

The Hotels and Guest houses do not suit for this cause, as more of homely atmosphere is required, therefore, a serviced apartment fills the gap.

It is observed that a sizeable demand for accommodation is being generated, in the localities falling in close vicinity to the hospitals. Although no one from organized sector has attempted to tap the potential, whereas , numerous individuals are encouraged to offer Serviced Apartments. Moreover as the demand is growing, many more individuals are enthusiastic to offer Serviced Apartment accommodation.

The localities like South City-1, Greenwoods, HUDA Sectors 38,39,45,46,47 and Mayfields have become most preferred for the accommodation seekers, because of the location advantage, having close proximity to hospitals.

Vikas Rikhye, Real Estate Blogger

An ambitious plan to connect approximately 25 km stretch of road between Dwarka and Gurgaon at NH-8, had been named Dwarka Gurgaon expressway or NPR (Northern Peripheral Road). Such projects are usually taken up by NHAI (National Highway Authority of India), but in this case it seems to be a joint initiative of Delhi and Haryana Governments.

According to the sources it is understood that out of total distance of 25 km, perhaps fifteen kilometers of the expressway would run thru the suburbs of Gurgaon and ten kilometers through Delhi.

Since a lot of Real estate companies have their projects in close proximity to this proposed expressway, therefore the promoters are taking the advantage in advertising nearness to Dwarka expressway corridor, which has yet to come.

Without going the in-depth study of the progress plans of the proposed expressway, the Builder and Broker lobby (having their projects on this stretch) are using this as a sales pitch using the USP (unique selling proposition) of projects Zero km location from Delhi, whereas thousands of SMS are being offering luring heavy discounts to the buyers .

Although, there does not seem to be any visible progress on the stretch, yet it is understood from sources that HUDA is actively working on contract tenders of the project, but there does not seem to be any news on the progressive steps by Delhi state.

Since this project is a JV of Delhi and Haryana and not of NHAI, therefore, besides a close coordination between the two states the priority levels as well as budgetary constraints can influence the progress.

As mentioned earlier that no visible progress has been noticed and there are no signs of the project neither at the beginning at Dwarka nor at the other end at NH-8. In fact there is “ZERO” level of progress at Village Kherki Daula on NH-8 (at toll barrier) whereas, this location is earmarked for ISBT and Metro.

Vikas Rikhye, Real Estate Blogger

• Land : Ownership proof of builder
• Project Approval with valid License.
• Approved & sanctioned construction plans
• Past performance of the builder.{ reference of projects delivered in the past}
• Financial Status of the builder { Account Balance sheets for at least last 2 years}
• NOC of dues from Government authorities .
• Banks financing “Home Loan”

Usually , financial institutions like good banks, check the credibility of the builder at their end, but sometimes few important facts are ignored, for the reason better known to all concerned. It is therefore, suggested that the prospective investor should find the fact at his own level by exercising the tool of RTI {Right to information}

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Also read the related article: check the facts before you invest

Vikas Rikhye, Real Estate Blogger

Outskirts of Gurgaon, specially the area around NH-8 ,Pataudi Road, proposed KMP {Kundli- Manesr -Palwal} expressway & Jhajjar Road has witnessed a phenomenal growth in warehouse segment.

Warehouse management and Supply chain management is specialized field, therefore, while designing a warehouse various factors have to be considered.

On my recent tour /survey in the area , I saw a mushrooming growth of warehouses & I was surprised to notice that in most of the cases, the concept of “warehouse management” & “supply chain management” has been completely ignored .The raising/ construction of warehouse has been stereotype , without considering the warehousing/ storing requirements of different products.

For an instance , the warehousing conditions/ specifications for medicines or perishables would be different from normal consumer products. At the same time storage specification for heavy metal coils would vary from Consumer durables. Whereas inflammable products & Paints need special specifications { under the category of hazardous goods}.

It is not necessary that every warehouse has to be of 25′-30′ of height { as noticed in most of warehouses}. Most of the warehouses are being constructed ,probably as “Return on Investment” purposes , here the “warehouse management” & “supply chain management” is neither considered nor it has been understood. An investor who has ROI in mind can still make more money/profits by following set norms.

Vikas Rikhye, Real Estate Gurgaon  Blogger

With increasing demand , investing in a warehouse is quite a rewarding proposition therefore most of the land owners who have land in aforesaid areas, muster their resources to acquire the permission to build a “Warehouse to rent”.

In the recent past a close market study revealed that some of the Warehouse owners are finding short -cuts, to rent their property, by not adhering to the norms as laid by the authorities & such a practice can lead to serious consequences for the owner and tenant of the property.

Moreover, it is important on the part of prospective tenant to check all the facts about the property as well take a legal/professional endorsement. However in any case , the prospective tenant must check the following documents:

• Proof of ownership
• Status of CLU {Change of Land use}
• Permission for Warehouse
• Sanctioned Plans & Layout
• Completion Certificate from competent Government Authorities
• Clearance from Fire Department etc

Besides the above stated features, while choosing the Warehouse space in Gurgaon, Warehouses falling within the Corporation limits of Gurgaon should be avoided, as in times to come, the area falling within such limits , would be subject to Traffic restriction for heavy transport Vehicles.

Vikas Rikhye, Real Estate Blogger

As it is apparent to all that the Residential segment of real estate in Gurgaon has shown a tremendous growth in past few months .Earlier, most of the project were being promoted & dominated by companies like DLF, Unitech & Ansals, leaving hardly any scope of improvement , in terms of quality of construction and amenities , matching international standards.

Strategic location of Gurgaon on NH-8,close proximity to IGI Airport ,supported by the inflow of MNCs and Corporate word, it became a favorite destination for FDI &International players in the field of real- estate.

In the process, “Extended Golf Course Road” in Gurgaon” found a niche to be a prestigious address as companies like Emaar MGF, Ireo, Pioneer offered integrated townships. Competing with each other, “each one” ,with meticulous and innovated planning, offered wide range of apartment matching a lavish life style. Thus , the “Extended Golf Course Road”became “1st Choice” of NRIs & Corporate world.

Since these carefully planned townships have aimed a balanced growth of infrastructure, therefore, the development will offer the residents, “Extended Golf Course Road” “Extended Golf Course Road” a unique mix of features that include Security, Education, Healthcare, Shopping & Leisure.

Timely delivery of the committed project by developers would add significant prestige to the area.

Vikas Rikhye, Real Estate Blogger

The real estate market in Gurgaon is undergoing a dualistic symptoms in Residential and Commercial segment
While the residential real-estate market in Gurgaon has experienced an upward trend in past two months, the market growth and rapid increase in prices has set its own record. Whereas , on other hand the commercial segment of the same market is showing downward trend in consistency.

The prices of residential apartments on Golf course Road, Nirvana country , Sohna Road etc have registered an apparent increase of more than 20%. As the new projects launched by the some of the builders such high basic price ,that has given an automatic boost to the existing ready to move apartments.

The land prices in DLF ,Sushant lok & South city-1 have experienced rich gains. The prevailing prices of prime locations in DLF have crossed 1.5 lacs per sq. yard & Sushant lok 1.25 , South city-1 1.10 respectively. HUDA Sectors are following the flourishing pattern .Since in the sectors covered under Master Plan 2021, there is hardly any scope of plotted options, therefore, foreseen scarcity of land has generated upward trend.

With all the witnessed prosperity, in Residential Apartments and land ,the commercial sector has become victim of circumstances because of unplanned growth & surplus supply of Commercial & IT Projects. The commercial projects on Sohns Road are already giving a gloomy & idle look. The commercial projects on Golf Course road are offering massive reduction in Rentals as compared to the Rentals in the past. New IT buildings in Udyog Vihar are offering lucrative Rentals on compromising terms despite the locational advantage.

It seems that not only the over supply of commercials in Gurgaon has affected the prevailing market conditions but Surplus of commercials in NOIDA have shown its repercussions on Gurgaon, as in NOIDA the rentals of commercial office space have gone down as low as Rs25-30 per sq.ft.

However, it is strongly assumed that while Residential property in Gurgaon will still continue to appreciate at the same time the Commercial property has to undergo undefined setbacks.

Vikas Rikhye, Real Estate Blogger

By virtue of making high investments in India, it ha become imperative on the part of NRI investors to guard their property against all odds and also to remain updated with trend of the market/area they have invested in. The real estate updates can really help their decision making in terms Exit, Leasing or reinvestment.

Besides, the marketing trends, the NRIs should be constantly aware of changing law/rules in terms of taxation/repatriation of funds as well forthcoming government policies.

With some of the reasons as stated above it generates the need of an professional & authentic opinion from either qualified experienced individuals or may be small, but professional Property Management company with following desired features:

• Preferably qualified team of professionals, experts in their respective fields lake Real estate, Taxation, Legal affairs , having an ability to deliver desired results in a time bound schedule.
• Such a team could be outsourced, that conforms to trust & credibility level by virtue of the experience & updated knowledge.
• Transparency in working, maintaining the privacy/ secrecy of the client & fulfillment of commitment remain the basic fundamental criteria.

It has been observed that in recent past, taking the advantage of aforesaid need, quite a few companies have immerged in India as “Property Management Services for NRIs” making a tall claim of service providers for NRIs countrywide. It has also been observed that some of such companies are inviting NRIs on the basis of annual membership. Without having any doubt about the integrity of such companies it is advisable that before being carried away by impulsive derision one should cross check the infrastructure, ability & capability of such companies.

Moreover , while choosing a right kind of service provider, the focus should be made on local service provider ,where the property is located, as by doing this one is not only reducing the rick of any ambiguity, but also increase the chances of more effective results because of locally available resources of the Service provider.