Vikas Rikhye, Real Estate Blogger

The commercial property in Gurgaon, under present market conditions, is expected, if not on downward trend, then surely, it has to undergo slow and a static phase, for next few years. The investors in rat race to earn quick money, got swayed away by enthusiastic builders and promoters who had been responsible of developing commercial real estate in most unplanned manner.

In absence of “Real estate Regulatory Authority”, neither any survey has been conducted to determine the demand and supply ratio, nor the planned methods have been adopted to ensure the safety of the investor. The builder and promoters continue to develop commercial property with their ultra motives ignoring the responsibility of social justice, as a result several commercial properties in Gurgaon are giving a deserted look.

The commercial property can broadly be categorized as following:

• Commercial office space
• IT Business Parks
• Shopping Malls
• Shopping complexes open court yard style

About a decade and a half back there had been a great demand commercial office space in Gurgaon and Noida, as Delhi was unable to meet with rapid growing demand of MNCs, who had then just started moving to India for their operations for Indian as well as for the other Asian markets, as some of the MNCs opted Gurgaon for their regional headquarters, which had the advantage of close proximity to International Airport. With fresh demand the requirements were huge as several MNCs required large floor plates as a result, the companies like DLF & Unitech swung into action, as these professional companies had the ability and resources to deliver the results in a time bound schedule. Over a period of time the companies started settling and the demand gained stability. But having seen the success rate of DLF and Unitech, suddenly, there was a awakening call for new player in the field, who also attracted the investor and had their share of prosperity as well. While the demand was settling down, the enthusiasm of the investor and builder continued, resulting into several lacs of commercial office space lying vacant on prime locations like Golf course Road, Sohana Road and other prominent areas of Gurgaon.

IT industry offered new era of opportunities starting with Call centers BPOs, KPOs, setting a new avenues of employment opportunities. At that time Gurgaon was a good destination for IT MNCs because of cheaper office space and manpower. Suddenly Gurgaon witnessed the mushrooming of call centers. It is understood, foreseeing the massive demand the builder approached the authorities to approve more of FSI/FAR (more of coverage) for IT Building and after getting such approval again swung into action resulting into worst fate compared to commercial property as over a million of IT Space is lying vacant on NH-8, Udhyog Vihar, Sohna Road etc.

In as early as 2002-2003 Shopping Mall was a thrilling concept for residents of Gurgaon as well as Delhites as Gurgaon was pioneer in starting Shopping Malls. Loads of people would visit these malls to experience and share the unique experience of shopping world class brands, Food courts and PVRs. As soon Shopping Malls were commissioned in Delhi (Vasant Kunj-Saket-West Delhi), the foot-fall from Delhi visitor reduced and with availability of Metro residents of Gurgaon had an comfortable option of visiting Saket Malls. The Gurgaon-Mall fever was reducing amongst the visitors but it did not deter the enthusiasm of investors and builder as in the case as stated above Commercial and IT Space, and has met the similar fate as most Shopping malls on Sohna Road are giving deserted look, A well known developer has not been able to commission its malls on NH-8 and Golf course road. Even on prominent location of MG Road, while, one project seems to be abandoned while other two projects seems to be creeping towards its commissioning.

Besides Shopping malls there has been quite a noticeable growth of shopping complexes through out Gurgaon, Besides shopping areas as provided in HUDA Sectors , South City, DLF City and Sushant lok, it is understood that present estimated growth is over 2500 shops in the areas of Mayfield, Nirwana Country, South City-2, Malibu Town and Sohna Road, whereas, most of them are giving deserted look.

Seeing the gloomy picture of Commercial Real estate scenario it is suggested more thoughtful efforts should be made by all concerned for a balanced and purposeful growth and development.

Vikas Rikhye, Real Estate Blogger

The unexpected overall growth and progress in Guraon has resulted into steep hike in land prices. The scarcity of land in Delhi is also a contributory factor for the increase in prices. Moreover from the Gurgaon Master Plan 2021 it is quite obvious that over 75% land has been earmarked for high rise housing complexes and balance 25% for plotted residential and commercial projects. It strengthens the view point for scarcity of residential land giving an continuous impetus in rise in land prices in Gurgaon.

Besides the plots as in DLF City, South City and Sushant Lok etc it is observed that HUDA has a sizeable contribution in developing residential land in various HUDA Sectors. In the recent past there had been revision in circle rates on higher side and with that stability in prices was expected, but surprisingly, the rising trend of the land prices continues.

The prices of HUDA plots in old Gurgaon have not comparatively increased as much as the prices on the other side of the highway because mostly every sector has an significant “Add on” USP to justify its location advantage, as Sector 31 being on NH-8 the neighborhood of posh apartment complex of Atlantis, Sector 41 is adjoins posh locality of Unworldly city and World Spa, sector 39 and 51 are associated with Medicity and Artemis hospitals, likewise 46 has the UPS of Unitech Cyber park on one side and Artemis Hospital/Amity school on the other end.

By and large every sector has a distinctive “Add on”. As amongst HUDA Sectors, the price of land 42 sector on Golf course Road is being quoted more than 82000 per sq. yd. as it is adjoin DLF PHASE-1 as well as adjacent to Aralias and Central park-1.

The average resale price of land in HUDA Sectors is ranging from Rs.65000-82000 per. Sq.yd. According to the real estate experts, the Present Trend will continue and by the end 2013 the land rates in HUDA Sectors would cross Rs.150000 per.sq.yd.

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

• 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, Gurgaon Real Estate Consultant and Blogger

• Affordable Homes: Keeping in mind sky-high prices of land in Gurgaon, the price offered seems to qualify the category of Affordable Homes.
• Better Options : The offers provide of One, Two & Three Bedroom apartments.
• Easy Payment Plan: Projects being “Bank approved” have the option of housing loan with EMI repayment facilities .
• Gurgaon Master Plan 2021: Projects falling in line with “current development plans” of HUDA are right choice.
• Landscaped greenery, Security, Club House, Gymnasium & other essential services remain a common factor.

The following are some of the New Residential Projects in Gurgaon:

Uniworld Resorts by Unitech

Just off the NH-8,located on Sector 33 & 48 by the side of Sohna Road offers the options of 1BR+Study 825sq.ft 2BR 1060-1100 sq.ft,3BD+SQ 1535 &1545 sq.ft. Price Starting from (INR) Rs 36.08 Lacks & above.

Emaar MGF

Emaar MGF a JV between Emaar PJSC of Dubai one of the world’s largest infrastructure & Real estate development company and MGF, a well known name in Real estate sector in India, now presents low rise “Emerald Floors” at Emerald Hills in Sector-65 on extended Golf course road Gurgaon.

Offer: Choice of Independent Floors on Two different plot sizes as follows:
Plot Size- 267. sq.yds 3BHK, 3Toilets + SQ
Plot Size-350.sq.yds 4BHK ,3 Toilets, Family Lounge +SQ
Price :Rs 44.40 onwards

Some other New projects:

• Pioneer Urban - “Pioneer Park” Sector-61
• “Tulip Orange”. Sector-69-70
• “Centrum Park” Sector-103

In the current scenario, when companies are offering lucrative incentives & commissions , it is more important to check all the facts about the property/ promoter, than to be carried away by small temptations.

Vikas Rikhye, Real Estate Gurgaon Blogger

With global downturn & liquidity crunch the real estate sector has been badly hit. The situation of Real estate in Gurgaon is no different.In the recent past Real estate sector in Gurgaon is facing the worst possible time.

During the peak time {which was about 2-3 years back} the Developers had overestimated the future requirements of the Real estate & launched a large number of Residential and commercial projects to meet anticipated demand that did not materialize as an effect of global meltdown.

Commercial office space in Gurgaon has been equally victim of circumstances. as the “Projects & buildings” which were launched few years back are getting completed, lying vacant, showing very clear signs of lack of demand.

The rentals for “Commercial office space” in Gurgaon are already down by 30-35%.A recent study conducted on the subject proves that Major /eminent developers are offering over 35% cut on the rentals as quoted 6months ago.

The report further says that due to a huge level of availability, the existing tenant are in process of renegotiating the leasing options on fresh terms & less rentals.

The “Commercial office space” buildings on Sohna Road Gurgaon lying vacant are already giving a deserted look.
The glass curtain commercial buildings on Golf course Road M.G.Road and many others on prime locations of Gurgaon, are also under the grip of rescission.

Under the present circumstances & obvious future downward their does not. seem to be any respite in the situation until the end of 2009.

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