In “Master plan Gurgaon 2021″ there has been the announcement of 56 new sectors, whereas the basic infrastructure in the existing sectors,{ announced several years ago} has not been fully completed.

With the aforementioned reasons, real estate scenario in Gurgan getting much confusing, as some of the prominent builders as well as new players have announced the projects in the sectors with their signboards amidst of “lush green field “{ without road & proper accessibility } displaying the “Promised Dream comforts”, where the signs of **basic infrastructure are not at all visible.

**{Basic Infrastructure include - Roads- Drinking water- Electricity- Sever disposal -Rain water/storm water disposal- Greenery & Plantation-Shopping& market}

Since most of the “New Projects” are being announced in new sectors as covered in master plan 2021, where presently no signs of development ,therefore, several doubts haunt one’s mind as:

Time Frame of Basic Infrastructure

• Commutable Roads with proper electrification
• Availability of drinking water
• Availability of Electricity [ From Electricity Department}
• Connectivity of Sewer connection with major drain as per Town planning norms
• Rain water/ Storm water Deposal as per Town planning norms
• Horticulture/Plantation and Parks
• Connectivity to Shopping/Healthcare/ Schools etc

As the real estate in Gurgaon has taken a positive turn, it is quite obvious to see the buyers enthusiasm. But a major cause of worry is that the over enthusiastic ones, may not land into a mess, therefore, it is imperative on the part of investor to check the facts about the project before investment. Lured with low “Basic Price” and discounts offered, the buyer gets tempted to put their hard money at a stake.

Vikas Rikhye, Real Estate Blogger and Gurgaon Property Expert

This is a guest post by Mr. Saurabh Dhawan of India Medi Treat. You can get in touch with him at saurabh [dot] 3767 [at] gmail [dot] com.

Growing demand of Studio Apartments in Gurgaon ,calls the attention of Prominent Builders in Gurgaon to cater the needs of this segment of Affordable housing.

“A Studio Apartment also known as a Studio Flat is a self contained spacious room consisting of a living and sleeping area having an advantage of kitchenette & attached bath, is considered as efficient apartment, designed as a residence of one or two persons”

The Studio Apartments have the following distinct be:

• Like minded Community living
• Space/ cost effective
• Low maintenance cost
• Secondary property for short/long visits

The concept of Studio Apartment is picking up very fast amongst the following:

• Working women
• Students
• Middle cadre Single executives
• NRIs [Secondary property for short/long visits]

To invest in Studio apartments, it is becoming a favorite option for investors who wish to make small investment in residential property, for rental returns.

Since Unitech and DLF are the “Trend Setters” & if they take an initiative of introducing Studio Apartments in their future projects, that will not only help in meeting the existing demand, but it would also motivate other developers in the market to Follow the set trend to meet the increasing demand of future as well.

A sizable inflow of Studio Apartments, would give a big respite to the existing & Future demand in segment of Affordable housing.

Vikas Rikhye, Property Consultant and Blogger

Investment in Real Estate Gurgaon is taking a very interesting turn. Despite the fact that in a very recent past the Residential properties in Gurgaon are showing positive signs, yet the investor in Gurgaon are seeking opportunities to invest in the properties having an advantage of “Assured Return on Investment” & this trend of investment seems to be picking up.

The concept in definite terms gives a comfort level to the investor but at the same time, the investor has to be very careful while investing & should keep the following cautions in mind:

Check the facts before investing:

About builder:

• That the Builder should have a good track record.
• The property offered should have all requisite sanctions, License and permissions from the competent authorities.
• That the property should be free from all kind of claims .mortgages and encumbrance.
• That the building in which property is offered has all the required completion & occupation certificates.
• That if required proper search report should be obtained from a legal expert

About the occupant:

• That the occupant has proper financial stability.[ As it has been observed in the past that some of the IT companies just disappeared due to lack of finance/orders} However it is safe to take expert opinion, who can furnish. the fact about the company/occupant after its findings.
• That terms of the Lease agreement should be carefully read & understood {legal opinion required}
• That the Lease agreement should be registered at 1st place & the Lease agreement should be registered subsequently as well.
• That there is sufficient “Lock in Period” to cover the risk factor.
• That in case of Retail outlet, pleas ensure that there is sufficient footfalls to ensure the existence/survival of the occupant in terms of profitability{Out source an agency to give its report}
• That the occupant is no where close to insolvency/bankruptcy

About the Individual Seller :

Beside the afore mentioned points in case of an individual seller the following points should be considered:

• That property is not under any family disputes.
• That there may not be any Third-Party claim.
• That there may not be any Silent Agreement.
• That the seller in the past has not executed any POA {Power of attorney}

That in case of POA transaction the original owner should be alive.

Besides as stated above please ensure that dealing should be conducted thru reliable/reputed Brokers & with the consent of legal experts. How ever, it is felt that “Options of Assured Return on Investment on Sohna Road are better as compared to “Options of Assured Return on Golf course road & MG Road Gurgaon.

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,India Real Estate Blogger

In one of my articles I had mentioned that we never seem to hear about real estate investors who go bankrupt.I had also cautioned that it does not happen very often unless the decision is rash or it is due to lack of basic relevant information and facts.

But I am sorry to state that in the recent past many innocent investors have been trapped by the” Rosy pictures painted” by some of the masterminded Broker Turned Builders (BTBs) who wanted to enter the real estate market as New Players for New Real Estate Projects.Neighbor’s prosperity, News paper &,T.V. advertisement backed up with lucrative assurance of their neighborhood broker was good enough for them to be tempted them to get ready for a Bright & Prosperous future through investment in property.

The new investor having lured by “Real Estate Prosperity” all around got eager to join the “Prosperity Race”. It is understood that while some had
put in their life time savings ,others managed to raise funds at a very high rate of interest & some had raised funds to invest in property by selling their personal belongings as well as inherited gold ornaments.

In 2006-2007 as we all know that “Unheard investment destinations” were being advertised with New Townships besides NCR townships with:

1.Pre-launch offers

2.Rock bottom Prices

3.Assuring heavy return on investment

4.Costly Sales Brochures depicting Quality of life matching International Standards supported by strategically designed marketing techniques

5.Heavy commission to Brokers

6.Cocktail Dinners on Pre-launch (In ***** Hotels)

7.Luxury Cars as gifts on achieving Sales Targets

All this as stated above was good enough for these investors to have the direction, they had in mind.

I often use to wonder ,that how would a builder be able to bear such expensive cost of marketing and yet would be able to deliver the promised project.

I could feel very close to the answer, when I remembered my Business Guru’s saying ‘The Brower who pays 10% interest never returns the original capital”

As I understand almost same thing happened, as while many of the smart investors made a quick buck at the same time where “Fly by Night Operators “have disappeared or Builder/ Promoter has failed to deliver the project, many of the victims are either running from pillar to post for refund or some accepted it as a bad luck/wrong decision .

At the same time some of the ‘Stay Back’ Builders are asking for future installments without any visible progress as the payment plan seems to be time bound & not construction linked

In Gurgaon after master plan 2021 has earmarked 58 new Sectors,
I understand from news paper advertisement that some of the new Developers are offering apartments in remote locations at a lesser price ranging 2200-2500 per sq.ft with 15% Cost along with application along with a 45day PDC of 10%, which means that with 25% of the selling cost builder receives almost more than 40% of his cost ,without even starting the construction & since the remaining payment is construction linked, therefore apparently the developer has already got his chunk of profit and yet stays in the business at the cost of his investor’s money having a stake free existence .

Secondly, even if the builder delivers the project in time in these remote locations, how would that become livable in absence of basic infrastructure like Public Transport , Sewer, Electricity ,Water etc.

Whereas , so called booming almost 12 years old “New township of Gurgaon” still is awaiting its “Infrastructure dream” to come true

It is also noticed that some of the better known builders are selling Builder floors , which as per present rules do not enjoy a clear title on secondary sales ,where, in some of the cases the builder has already taken more than 25% of the price, without any visible progress

I very frequently get, desperate phone calls from some of such investors, that they would like to get rid of their investment at any cost in some cases they are ready to sell out the booked property below cost

The scene of the Gurgaon shopping malls is no less gloomy as few of the specialized malls give a deserted look awaiting the occupants & investors/owners are asked to pay Maintenance charges, while others Malls which are under construction have slowed down the construction process with a fear of lack of occupancy.

IT office space / IT Parks ( victim of overtrading) had become an investor’s craze , who are continuing to invest ,without realizing the Government’s Plans & Policy.

To me it seems “Some can not think due to lack & greed of money others
Can’t think due to overdose of money”

What are the facts you should check before buying a property??

Mr. Rikhye,Realtor and Real Estate Promoter

Real Estate in Gurgaon still has its Graph moving upwards .The new investor having his eyes on the neighbor’s “Real Estate Prosperity” is eager to join the “Prosperity Race”.

The new investor musters his resources, raising funds may be in some cases taking loan, to prepare himself for this rat race.

Before investing hard earned money one has to ensure the following:

• Financial Credibility of the promoter/builder.

• Professional Capability of the promoter/builder to deliver the Project in time.

• Past Projects delivered by the Promoter/Builder.

• Ownership title of the Project.

• Necessary Government approvals to start the project.

• Names of the Banks which have approved the project for Loan Purposes.

• Exit Clauses (That is in case, you wish to sell your property before completion of Project)

Not forgetting to go through the clauses of ” Buyer Seller Agreement” with the Builder and if required take an Expert’s opinion before getting into this Race…….

Comments Please

Mr Vikas Rikhye,Realtor and Real Estate Promoter

The History of Pre launch goes as back as about four years that is late 2004, when the real estate business was about to “Take off’. Some of the masterminded Broker Turned Builders (BTBs)wanted to enter the real estate market as New Players for New Real Estate Project.

Having a basic support of the large client/investor-base & Fellow Broker Network they designed a scheme to raise funds from profit hungry small investors from the market with a very clear objective to generate interest free money to implement the project.

Usually in real estate the word Pre launch means that the Builder/ Promoter has purchased the land on which a project is to be developed (& in some cases, the builder may not have the possession of the land, he might have an agreement to sell/collaborate with the owner of the land).

The promoter/builder offers to sell the property at discounted price (directly or thru Broker net-work) before the formal launch.

It means the following:

• At this stage Regulatory, legal and formal Government approvals are awaited.
• Land title might not be clear.
• Due to some other Legal reason its Formal Launch can not be done

It is also undermined that Builder instead of utilizing his own investment resources, is trying to raise interest free monetary reserve from investors, to pay off the Land owner Govt .fees, Initial infrastructure/construction cost etc.

Many experts feel that there is no wrong as the investor is aware of the risk involved.

In many states pre-launch bookings have been banned to Curb the malpractices by dubious operators. It is also understood that the Promoters /Developers have been banned to release advertisements about projects that do not have necessary approvals.

It is noticed that “Reputed Real estate companies” have never launched any of the luring Pre launch schemes.

The Pre-launch fever started spreading in other part of Northern including prominent towns like Amritsar, Patiala,Luhiana,Japur,Bhewadi,Neemrana,Alwar,Rudharpur and many more are under its grip.

While many of the smart investors made a quick buck at the same time where “Fly by Night Operators “have disappeared or Builder/ Promoter has failed to deliver the project, many of the victims are either running from pillar to post for refund or some accepted it as a bad luck/wrong decision.