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Gurgaon will see 10,000 new luxury flats over the next two years. This is regarding new residential projects which are scheduled to come up in the city soon. Starting with Indian real estate giant DLF, it is all set to develop another residential project ‘Belaire’. According to Rs 7,500 a square foot, an apartment in the complex will cost around Rs 3 crore. Close on heels is Emaar MGF which has planned to come up with its mega residential project ‘Palm Spring’ next to the DLF project. It is priced at Rs 7,200 a square foot and Parsvnath ‘Exotica’ is under construction on its adjacent plot, priced at Rs 6,500 per square foot. Such luxury apartments, which cost Rs 1.5 crore or more, will include around 30% of residential space in Gurgaon by 2010. With things planned in such a way, the city will see 10,000 luxury homes, up from 1500 units in 2006. That’s 300 units added each month. The average absorption will not go over 200 units. Of these, the demand for high end homes over Rs 1 crore is less than 50, says Ankur Srivastava, MD, DTZ. Gurgaon will see an oversupply of 300% in the next two years. The scenario is likely to push the property prices in the city. There has already been a price correction of up to 25% in the luxury homes segment. Courtesy: Indianrealtynews |
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Real estate solutions provider Propmart, which provides both online and offline realty solutions, has launched operations in Chennai. “Propmart has been periodically conducting surveys and all surveys have revealed that the Chennai market has been growing leaps and bounds in the last 3 to 4 years. This prompted us to enter Chennai,” R Balaji, chief executive officer of Propmart, said on Thursday. The company plans to provide the vital consultancy link between builders and customers in the city. “Propmart’s core areas of operation are both B2B as well as B2C. For B2B, Propmart acts as a marketing process outsourcing (MPO) company, and for B2C we act as a link between the end buyers, sellers and the builders,” Balaji said. Bangalore-headquartered Propmart has operations in major cities like Delhi, Mumbai, Pune, Chennai, Kochi, Mysore and Coimbatore. Propmart has been offering its MPO facilities services in property verification, dealing with local authorities like municipal corporations, electricity boards and water authority. This apart, Propmart also assists in securing a bank loan for purchase of property, besides getting the property registered. Cosmopolitan Chennai has emerged as one of the growing centres for IT, BPO and KPO-led businesses and is witnessing a strong mall culture as well as retail boom. As an impact of all these factors, the real estate sector is riding high on a strong economy and the commercial real estate is being driven like never before. In spite of the rise in housing finance rates, the real estate market in Chennai is booming and is expected to maintain the same for the next two quarters, Balaji opined. Propmart notes that throughout the last two years, the real estate market witnessed almost 20-40 per cent increase in capital value coupled with tremendous growth in sale-purchase and leasing activities. With constant demand for quality space from both the residential and commercial sectors, real estate activity in the city is more than 3.5 million sft annually, the company claims. The Chennai real estate investment market has witnessed significant growth due to constant demand for quality space, both residential and commercial, after many years. Awareness about investments and affordability is on the rise among individual double income families, and second homes are being considered as good investment option in the city, Balaji added. Courtesy: Business Standard |
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Real Estate giant DLF is now planning to build its biggest residential project in the outskirts of Bangalore. This project is estimated to involve an investment of Rs. 60,000 Cr. The state-of-the-art project will be thrice of the size of DLF City in Gurgaon. The “Bidadi Knowledge Park” will be developed across over 9,178 acre of Bidadi, which is 30 km from Bangalore. Bidadi is on the Bangalore-Mysore expressway and the upcoming intercity infrastructure corridor. The development charges for per acre of this self contained township will be over Rs 57 Lakh, and it is scheduled to be completed within 5 years. California-based Berkley and design firm Calthorpe Associates will plan the project. This project is termed as biggest endeavor of any real estate player so far. A spokesperson of Karnataka Government, Basavaraj Horatti informed, “The tenders have been approved for the Bidadi project. The terms and conditions are that per acre the development charges will be Rs 57,50,000, and it should be completed in five years.” The project will be for housing and commercial constructions and the cost of the investment is estimated upto Rs. 60,000 cr including Rs 3,600 crore for the land and the investment would come from internal resources of the two partners and private equity at project-level. The Karnataka government has awarded the land it owns while the remaining area would be acquired from private parties with the help of the state. This township will be a self-contained township and will be developed on a walk-to-work theme. It will comprises of multiplexes, hotels, shopping malls and service apartments. The project will be a 50:50 joint venture between Dubai-based Limitless Holdings, a sister company of Nakheel and a part of the diversified Dubai World Group and DLF. DLF has recently entered stock markets with its IPO. The company valuations have seen a decent rise. DLF is among the top companies in India in terms of net worth. The project was awarded to DLF, following a global tender issued by the Bangalore Metropolitan Regional Development Authority (BMRDA). BMRDA is also considering an expressway to connect the township to the new international airport at Devanahalli. The township is likely to have a dedicated metro rail connection to Bangalore city. The road to Mysore will now also be the road to a new Bangalore. DLF managed to get the project allotted by Bangalore Metropolitan Regional Development Authority for which nearly 100 companies had filed applications. The project will offer world class living and business environment. Courtesy: Indiarealestateblog |
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Demand for property has slowed down by as much as 30 per cent in lower and middle-income housing in Mumbai suburbs following the series of interest rate hikes since January that have seen lending rates rise 125 to 200 basis points this year, raising anticipation of a fall in prices. Real-estate consultants and housing finance companies say the number of deals has dropped in suburbs such as Bhandup, Malad, Vasai, Kharghar and Panvel. “We have seen a slump of 30 per cent in the number of enquiries and sales in these areas. The slowdown in property registrations also indicates this trend,” said Pranay Vakil, chairman of realty consultant and agents Knight Frank India. “The maximum pinch can be seen in the Rs 15 lakh to Rs 50 lakh range in the suburbs,” he added. This price range tends to be sensitive to rising lending rates. Confirming the trend, Rajesh Mehta, chairman, Raha Realtors, said half the registrations were taking place for rental accommodation rather than for property transactions, which used to account for 60 to 70 per cent of registrations. The slowdown in demand has had a marginal impact in prices so far. Rajeev Sabharwal, head, retail assets, ICICI Bank, one of the largest private-sector lenders of housing loans, said though developers were not offering major price cuts, minor discounts could follow soon. “Even though builders do not offer price cuts openly, they give discounts between 5 and 10 per cent when they come to the negotiating table,” added Mehta. Some areas, however, have seen a drop. “Prices have already dropped 10 to 15 per cent in places like Kharghar and Panvel, a 1.5 to two-hour drive from the business district Nariman Point,” said Sanjay Dutt, deputy managing director of realty consultant and agent Cushman & Wakefield. He expected the stagnation to continue for another couple of months. Part of the reason for the relatively minor fall in prices is the sharp jump in property prices over the past year. In Kharghar and Panvel, for instance, Dutt said prices had risen 50 to 70 per cent in the past year “which was way ahead of time.” “Property prices have gone up 50 to 100 per cent in the last one year in Bhandup, Vasai, Malad and other areas that are in a 50 km radius of Nariman Point” added Mehta. The scene, however, is different in south Mumbai, where few new projects have come up in the recent years and prices have jumped 30 to 40 per cent, peaking to Rs 35,000 a square foot. Vakil of Knight Frank said apartment prices in south Mumbai have doubled in the last two years as sellers wait for higher prices before they sell their properties. “There is a shortage of ready-to-use luxury apartments in South Mumbai. Non-resident Indians are also scouting for properties in these areas. Today we have at least 15 to 20 people all wanting flats of more than Rs 6 crore to Rs 7 crore each, so prices are going up every 15 days,” he added. Property prices have gone up 50 to 100 per cent in the last one year in Bhandup. |
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The tax rate on long-term capital gains earned on sale of property is 20%. In case, the value goes over Rs 10 lakh, the tax rate increases to 22.66%. The rule remains same for both Non Resident Indians (NRIs) and India residents. Serving as a savior, Section 54 of the Income Tax Act exempts those capital gains which are invested in a residential property/house within a year before to two years after the sale. In case, an investor wants to build a house, the time limit is increased to within three years of the date of sale. The exemption would be proportional if only a part of the capital gain gets utilized and the excess will be liable to tax. NRIs can benefit from the rule as it is not mentioned that the new house purchased should be located in India. This gives NRIs the liberty to purchase a house in their host country abroad and yet save tax here. However, this is simply a theoretical possibility based on a plain reading of the law. There are possibilities of extending the exemption offered by Sec 54 to a property bought abroad, says Income Tax Tribunal. The Mumbai Tribunal verdict in case of Mrs. Prema P Shah vs ITO 282ITR (AT) 211 [2006] is critical to shed the light on the law. Outlined below are the facts of the case: Mrs. Prema P Shah is a NRI, who sold her house purchased in 1983 for Rs 6 million in 1992. She bought another property in London on 150 years lease, and claimed exemption u/s 54 of the IT Act. The A.O. did not permit the claim because of following reasons: The assessee had only bought the tenancy right. Only the individual investing in India can claim the exemption. The sale proceedings were not used for buying the residential property. The argument was rejected by the Tribunal based on the facts of the case. In the UK, property is granted long term leases rather than being allowed to buy. In the given case, the residential property was taken on a lease of 150 years, which clearly is in perpetuity and the assessee was the property owner. The same amount of capital gains may or may not be used to purchase the property. Indeed, the assessee is allowed to buy it even on mortgage and is liable to exemption if it complies with the conditions mentioned in Sec. 54. For that reason, the borrower instantly becomes the property owner of properties purchased through mortgage. Now, NRIs can think about buying property abroad and claiming tax benefits in India. Courtesy: : Indianrealtynews |
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