Vikas Rikhye,Real Estate Blogger

This time we are not taking about Sky high real estate prices or inflation in Gurgaon ,but sky high forthcoming buildings in Gurgaon.It is understood from authentic sources that Haryana Urban Development Authority (HUDA) has removed height restriction for all future group housing & Commercial projects in the new sectors that are a part of Gurgaon Master Plan 2021.

According to the sources, the height limit till now was 90 meters. However, the Builders/ Developer aspiring for skyscrapers will have to take permission from other competent authorities like Airport Authority of India, Fire Authorities and other government bodies, governing Safety Rules.

It is further understood from the sources that this policy has been framed , keeping in mind the National Building Code (Part-4) that allows the removal of height restrictions on the buildings if the modern / latest technologies are used for structural design & fire fighting.

The news seems to be very encouraging & interesting, but, it raises in mind, a big Question Mark, that:
Will the present infrastructure in Gurgaon , be able to take the load of this Unexpected growth ?

Vikas Rikhye,India Real Estate Blogger

Gurgaon ! privileged status of “Cyber City” battling a power crisis that has seen power cuts over 12 hours , there is no immediate relief in sight.

Most of the people who moved to Gurgaon for a better quality of life, they , now feel cheated & cursing the day they moved to Gurgaon.

The life becomes miserable, when the whole town plunges into darkness in peak of summer, as one has to surrender to the invertors and then to generators, an expensive proposition besides being unfriendly to the environment.

Students in the city are invariably the biggest sufferers. Long hours of power cut and exhausted inverters have made their lives harder.

A common man is in total confused state of mind as the electricity “Complaint telephones “are usually un-attended or give a busy tone. Personal complaints lead to no results, With repeated assurances of officials, consumers have learnt the hard way not to trust officials.

Tired of long & frequent power cuts and false promises of improvement, created almost a situation of riots in the city as News Headlines of Hindustan Times dated May 7th 2008 read as “Power riots erupt in city, Gurgaon” it further added “People stone power offices”

Is that the “Millennium City” we dreamt of ?

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”

Vikas Rikhye,Realtor and Real Estate Blogger

Gurgaon might lose its grip over the booming I.T. Industry As it is understood from sources that many of the major BPOs are very seriously thinking of an alternative of relocating from Gurgaon to smaller cities mainly due to following reasons:

•  Soaring rate of office space rentals
•  Traffic jams resulting delay in the working of call centre staff.
•  Heavy Transportation cost of staff
•  Expensive living cost for the staff
•  Higher operating cost

Moreover the cost and talent pressures will drive vendors to smaller cities at a faster rate. Especially so or new centers of large companies already present in India. With improving attention to education across India and State governments’ recognizing the potential of the outsourcing sector, companies are finding themselves almost attracted towards fresh location choices. Proximity/connectivity to larger cities and good education infrastructure seem to be guiding the discovery of other destinations like Udaipur, Jaipur , ,Mohali,Pune Bhopal, Vishakhapatnam, Nagpur, Chandigarh, Ahmedabad, Nashik, etc.

The emerging hot spots are also offering:

•  Competitive talent at lower wages than the preferred locations
•  Infrastructure and realty advantages
•  Lower attrition
•  Lower operating costs

Since all the major activities in Gurgaon are focused on I.T. Industry therefore it gives an alarming siren that with the changing trend of relocation  might create adverse effect on booming economy well as the realty in Gurgaon.

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

What is Real Estate? 

Land and anything permanently attached to the land whether by nature or by person.

Why invest in Real Estate?

Mr. Rikhye,Realtor and Real Estate Promoter

So many times we hear about investors who made a lot of money by investing in stocks and also about those investors who lost every thing they had.

We never seem to hear about real estate investors who go bankrupt, however, that’s because it does not happen very often unless the decision is rash or it is due to lack of basic relevant information and facts.

That’s right: Those individuals who invested wisely in real estate many years ago are having a very comfortable lifestyle, as Investing in real estate can garner interesting returns.

Real Estate and Economy are very closely related, as whenever there is economic growth in “Certain region” it automatically gives a massive boost to real estate.

It reminds me of a saying “Human Population is growing while land is limited thus the Real estate would always boom”

Mr. Vikas Rikhye,Realtor and Real Estate Blogger

Will the Dreams really come true…………………….

The master plan 2021 has earmarked 58 new Sectors covering over 14500 hectares of land as Residential Zone which includes a very large segment for Malls and commercial space.

There is a wave of happiness & prosperity with the implementation of Gurgaon master Plan 2021 as the original land owners are the 1st beneficiaries to get the best prices for their land from private Builders & Promoters thus bringing them prosperity overnight resulting into Swanky Cars parked in place of cattle & cows.

The common man for a with a ray of hope is looking for a niche in this Master Plan to own a small dwelling unit for his dreams to come true.

The Private Builders can envisage a heavy windfall of profit arising out of land acquired by them at right moment and the right time, as they are already being offered more than 10 times of their purchase price by the New Players in the Market.

According to sources, Group housing projects with total area of more than 490 acres have been granted licenses & hundreds of Licences are awaiting approval ,where some of them have been issued letter of intent (LOI).The sources add that more than 600 licences are including commercial projects, are under consideration.

*Some of the private builders and promoters have already started booking Apartments with a Price Tag of 2300-4500 plus per sq.ft.( the hidden cost of Car Parking ,PLCs etc being extra. On visiting the sites , there are no encouraging signs of developing the Basic infrastructure .

The existing Township of Modern Gurgaon is suffering from acute shortage of Power Supply & lack of Basic infrastructure having Sky High prices beyond the reach of a common man.

A common man still hopes for a small dwelling unit for his dream to come true………?

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.

Mr Vikas Rikhye,Real Estate Blogger

Gurgaon Progress/ Prosperity vs Common Man (The CM)

Someone has to monitor the progress/ growth of this New Township of Gurgaon in more balanced & Planned manner having Prime focus on the following:

• Housing : While Prominent Builders are competing with each other in offering Luxurious Villas & Apartments with a price tag ranging 50 lacs to 2.5 crores and above leaving no scope for a common man to even own a simple shelter, as the uncontrolled land prices are much beyond his means.

• Education: The most modern education systems are being introduced in best of institutes finding their place in Gurgaon, making Education a luring business but what is in store for a child who is studious but does not have resources.

• Health care :With appearance of well known expensive Hospitals & Medicity, remarkable progress is noticed , awaiting the Financial boom from “Medical Tourism”. Yet ,hundreds of poor patients are left to their fate for the want of resources.

• Local commuting/Transport: Speeding Swanky Cars reflect of an affluent culture prevailing all around, forgetting the basic need of a humble commuter who is the one of the pillars of today’s Glittering Gurgaon.

Time is warning us that we are not far away from the crucial stage of “Haves & Have-nots” ……………… which can be disastrous for the society.

Mr Vikas Rikhye,Realtor and Real Estate Blogger

Mushrooming growth of shopping malls in Gurgaon creates a question mark in the mind about the negative future of the shopping malls in Gurgaon.

In NCR Gurgaon was one of few first Towns to witness the modern trend of Retail selling & Multiplex culture.

The excited youth and fashionable shopper found their destination at MGF Metropolitan & DLF City Centre ,While moderate & price conscious found their place in Big Bazar in Sahara Mall . Stylish day today shopping got attraction at Spencers and specialized fashion shopping found its place in Grand Mall.

DT and PVR Cinemas attracted people from all walks of life. While on one side one could see elite & hi fashion crowd at the same time one could also see escalator-shy rural crowd looking dazed at modern shopping glamour. Making it most happening place.These Malls were attracting crowds not only from Delhi & Noida but also from distant rural areas of Haryana.

While all this was happening a very few noticed that on this prominent MG Road only while one Mall project was abandoned by the builder and other three malls(under construction were put on slow speed for the lack of market Demand.

Not only on MG Road, but shirking market trend was also felt on Golf course Road &NH-8Where proposed shopping malls gave a deserted look.

On Sohna Road the scene is no different as beside one operational mall, where more than 50% shops are still to open. ( despite the fact that this mall has been so called operational for more than 15 months ). Yet another Marriage mall stand complete in isolation awaiting to be occupied.

And to my utter surprise I see still about seven more malls under construction under such a bleak future .

Mall fever is not yet over it is spreading to Rewar,Dharuhera Bhewadi and as remote places as Punahna etc