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 Consultant, Blogger and Expert.

Real estate Industry in India besides having its apparent significance in the national economy, also has latent significance of being one of the largest job provider from a laborer to high ranking professional executives from engineering ,finance, marketing and many other economy related fields.

The real-estate industry which is playing a very crucial role in development of infrastructure had been victim of recent slowdown under global recession, therefore, it becomes imperative on the part of government to extend maximum relief in terms of taxation and offer incentive for investors to gear up the situation towards positive growth .

Since Housing industry constitutes a large segment of, real estate in India, therefore, government must consider rebates & incentives to strengthen investment opportunities by prospective investors.

It is understood from sources that to encourage people to invest in housing sector “Confederation of Real estate Developers’ Association of India”[CREADI] has suggested the government to increase the deduction on interest paid on self occupied residential house/property .It is further understood that CREADI has also suggested the measures, if adopted then effective interest rates on loan of 20 lakh for 20 years may come down to 6.95% from 9.25% and these measures would act as tools for achieving tha target of affordable housing.

Tax rebates and incentives in realty sector will have a positive impact on the overall economy.

Vikas Rikhye, Blogger and Gurgaon Property Consultant and Expert

“Housing Loan in India”

With global slow down & economic recession the real estate in India had experienced a downward trend. Although in the recent past there has been positive correction to the tune of 20-25% + , but this does not seem to be enough to build the actual user’s confidence to invest in the housing sector. A stable government in the centre definitely provided a sigh of relief, but all the hope is focused on the Budget 2009-2010.

It is expected that Budget 2009-2010 may provide cheaper housing loan, more income tax rebates on interest payment.

It is suggested that considering housing as basic need, the housing loans should be made available at 5-6%, while for economically weaker sections the interest rate should be reduced further to 2-3%.It would be much appreciated, if the government considers to increase the income tax exception slab for interest payment on housing loan to 2.5 lakh. A hike in standard deduction on rental -housing may bring relief to concerned segment of society.

Moreover, as housing being in priority sector, the government should consider it to be a part of infrastructure development & provide to the real estate developers with incentives to increase the investments in real estate to achieve the social commitment of “Affordable Homes “.

In the opinion of some experts that since the real estate sector has been worst hit, therefore, the recovery process would be much faster, if there is a boost in the housing sector & growth would automatically follow in commercial & retail segment.

A moral responsibility demands from the builders & developers, a commitment, to deliver Affordable Housing by reducing their profit margins.

Even a best government in the world can not give desired results for the benefit of masses unless there is a “commitment of support” , by all concerned agencies involved…

Keeping in mind “Economic growth with social justice” in housing sector. the gap between “have & have not” should reduce to 0%

Let us hope that soon, we achieve the dream target of Affordable Home for every one in “Our Shining India”

 

In a developing township the growth rate of all around happenings is at such a fast speed that it takes time to, arrest the problems which could not be envisaged at the initial stages but they can be only figured out after actual happening

With the recent development in district administration the scenario seems to be on change with positive inputs.

Now, since Gurgaon has a team having a blend of efficient administrative heads who have in front them, examined and analyzed status of infrastructure related problems, & moreover, it is felt that Administrative nucleus is determined to take positive steps to eradicate the problems with long term solutions.

The positive steps have already been initiated in priority fields including:

• Power shortage in Gurgaon
• Water Shortage in Gurgaon
• Roads & Traffics Reforms
• Law & order in Gurgaon

From reliable sources it is understood that the District Head of Gurgaon has said that “As improving infrastructure like road network, power & water supply in Gurgaon is a matter of priority, therefore, the laxity on the part of officers will not be tolerated”.

With stable Government in the centre and an effective, efficient & determined local administration ,Gurgaon would be heading towards the path of glory.

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, Gurgaon Property Consultant and Blogger

• More Spacious
• More privacy & personal freedom
• Cost effective
• Ideal for Executive Relocation
• Ideal for cultural adjustment

In last one decade Gurgaon has witnessed the presence & growth of Multinationals,
with all around progress it has resulted into immense potential / scope for “Service
Apartment”.. Besides the aforementioned reasons , the increasing trend of Medical Tourism in Gurgaon has added positively to the scope of Service Apartments in Gurgaon

With increasing demand of Service Apartments, several property owners have entered into this business & organized sector in this field, are increasing their capacity by outsourcing apartments

Some of the Service apartment operators are following a module, where they hire out an apartment on ***MG Basis and after furnishing the same they put it on their Net-work. {Net-work that take care of its Marketing & Maintenance}

Moreover few Real Estate Brokers in Gurgaon, who specialize this field are also instrumental in organizing deals on MG {***Minimum Guarantee}basis, as in this module, every one stands to gain.

The present trend in this field indicates the sings of a great potential & growth.

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.

The trend continues to be positive for the following reasons:

• Gurgaon a hub for MNCs: Offering ideal working environments , Gurgaon, has become a hub for MNCs including BPOs & KPOs in Gurgaon.
• Gurgaon Properties are having a wide range of choice in Villas, Luxurious Apartments & Bungalows, as the prominent builders /developers like Unitech/ DLF are delivering the end product very close to international standards , having a positive scope of appreciation.
• Assured Return on Investment: In commercial sector, the properties are being offered on lucrative assured return basis as compared elsewhere.
• Close Proximity to IGI Airport: Gurgaon being in NCR {National Capital Region} & having close proximity to International Airport, has its own added advantage.
• NRI Services in Gurgaon: In Gurgaon a number of professional companies are offering their services to NRIs in the field of **Facility Management, Event management , Security Management & other essential services, bringing a better comfort level to NRIs
• Gurgaon Lifestyle : With existence of Golf courses, Modern Hotels, Multi-cuisine restaurants, Clubs ,Shopping malls, Gurgaon has placed itself, at a higher pedestal of lifestyle.
• Hospitals in Gurgaon:. Specialty Hospitals like Paras, Artemis, Forties, Max & Medicity not only attract medical tourism in Gurgaon but also reassure of the Healthcare facilities in Gurgaon, matching international
• Commuting Comfort: Ideally located on NH-8 with eight lane express highway & connectivity to Delhi by Metro by January 2010 brings Commuting Comfort level for Gurgaon.

Factors as stated above & Master Plan 2021 make NRIs & other investors “Gurgaon” as a long term investment destination.

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, Realtor and Gurgaon Real Estate Blogger

Real Estate Brokers in Gurgaon, during peak time, had booked in sales over 60% of Commercial office Space on Sohna Road for the investors in Gurgaon at the rate ranging Rupees 3500- 4500 per sq.ft. Remaining 40% was left with the promoters. These commercial projects on Sohna Road are now nearing completion & are ready for leasing.

The prevailing rentals Commercial office Space on M.G. Road.& Golf Course road are ranging between Rupees 75-85 per sq. ft. With the leasing rates as stated above, acts as an opportunity, for the Sohna Road investors, to offer lucrative leasing rate as low as Rs.40-45 per sq.ft.as it brings them almost 12%+ return over investment.

Since the balance of 40% of Commercial office Space has been still with the promoters, therefore, they are applying all marketing techniques/strategies to recover at least 15-20% more rental than being offered by the broker lobby. It seems that this is ,all because, by soliciting higher rental, the promoter, would be able to sell its balance 40% of stock at higher selling price ROI {Return on investment} basis. As per prevailing market practices the prospective investor is quite happy with 8.5% ROI & in the bargain, the promoter yields more profit on selling Rented Property on Sohna Road.

There seems to be a “Tug-of-war” over leasing rates between Broker lobby in Gurgaon & the Promoter as both are competing to achieve their desired motives .Under the circumstances the Broker-Lobby seems to be a better option to avail lesser leasing rates compared to the leasing rates offered by promoters.

Moral of the story :Real estate Brokers a better option for leasing on Commercial office Space on Sohna Road Gurgaon