India
Ghaziabad Real Estate
Ghaziabad is rapidly emerging as a hotspot real estate destination. It is alluring many big builders, developers and investors as all over India the property prices are soaring but here the prices are still within reach. It has become land of opportunities for many big and small builders as it is offering good return on investments. With many MNCs setting up their base in the city, more and more people are migrating here in search of livelihood. Ghaziabad realty market is not only attracting domestic but also global investors.
In recent few years, development in the city is happening at a faster pace. There has been considerable improvement in roads, transport system and infrastructure in the city. Apart from that, well connectivity of the city with Delhi and availability of all basic amenities and lively lifestyle, are some of the reasons why people are moving to Ghaziabad. Also, those who cannot afford to buy homes in Delhi are considering Ghaziabad as an option to remain close to the city because here property prices are quiet affordable as compared to Delhi.
Another factor that has surged the demand of residential property in Ghaziabad is setting up of some good engineering colleges and schools in the city. The city is also emerging as an educational hub and students all over India are coming here for their education. It is also expected that in coming few years many companies more good companies will infiltrate the city thus creating employment opportunities as well as more demand for more homes. Moreover areas like IndraPuram, Kaushambi, Vaishali, Vashundhara, and Shipra are emerging as posh localities of Ghaziabad and many people are looking out for housing options in these areas.
Even though rental prices have soared up in the city the last few years still they are quiet less as compared to Delhi region. In Vaishali, a 2BHK apartment on rent can cost you up to Rs.6000 to 10000 whereas 3BHK can cost you up to Rs.7500 to 12000 and 4BHK can cost you up to Rs.10000 to 16000. In other areas like Kaushambi, Indirapuram, and Vasundhara, the rental prices for 2BHK are Rs.5000 to 12000, 3BHK can cost you up to Rs.8000 to 15000 and 4BHK can cost you up to Rs.10000 to 18000.The cost of rental values can vary depending upon the location.
Ghaziabad property market is boasting high residential property sales and demand for commercial property is also rising. Many new commercial projects are lined up in the city. According to a report ADAEs Reliance Energy will launch a 1000 hectare Special Economic Zone in the city which will bring relief to traders from paying tax, excise and customs duty on buying of commercial property in Ghaziabad. Apart from that SVP Group, is planning to launch two new malls namely opulent mall and Gateway Mall which will house high profile retail ventures and bring more business to the city.
Indian Real Estate Market Problems And Prospects
India is a very large country of South Asia, the second most populous country in the world and the seventh largest by extension. The Indian continent from many centuries has been well known for its rich culture and commerce. To make your real estate investment more and more beneficial for you in this country, you need to rely on a network with a lot of real estate experience. Through an operating platform of a realtor investment becomes easier and safer for you as the firm helps to find the property in India.
The real estate market in India is undoubtedly growing local demand for housing space and office incredibly intense, but the market has to be regarded as emerging market for investors because the laws concerning foreign direct investment in the real estate market in India are so restrictive that the benefit of the real estate sector of India is far from straightforward.
This article is an attempt to combine some of the facts and figures which we hope will help anyone who joined the business of Indian real estate. There were changes made to the public good laws concerning foreign direct investment in the back of the real estate sector in February 2005 now mean that the Indians passersby (most commonly designated NRIs) and companies Overseas (CBOs for short) can invest up to 100% in the housing sector.
The government of India also has some rules in place that allow foreign investors to buy commercial property in India. if these properties are to be used by the company for business purposes. Most of the projects where FDI is allowed in a loop period of the investment of a minimum of 3 years to prevent speculative investment, but the good news for companies or NRIs who want to achieve in the real estate market of investment in India is that investment in smaller projects is now a real possibility. Before the IDF is allowed only in projects on sites larger than 100 acres, this was reduced to 25 acres. For individuals who wish to incorporate the real estate market in India is the easiest way to buy into an investment fund.
Changes to laws relating to FDI and the real estate industry in general that were announced back in 2005 rules of the investment fund of the Sierra relaxed to the point where many experts believe a sector of the investment company of real estate (REIT) could now emerge.
Meanwhile there are a number of attractive and transparent funds available from reputable investment houses that do not prohibit individuals hassle free entry into the real estate market in India. In terms of state of the real estate market in India in general and Mumbai property in particular care must be taken when acquiring any land or real estate because the fact of registration of title is not updated and independent legal advice should be taken at each stage of the process that buying property in India.
If anyone has a definitive guide to the process to purchase real estate in Mumbai, he/ she can maximize the benefits to the maximum. But a proper professional guideline is necessary before any investment.
Commercial Banking In India.
Prime Services offered by a commercial bank include processing of payments by way of telegraphic transfer, issuing bank drafts and bank cheques, accepting money on term deposits, lending money through overdraft or through installment, providing letter of credit, safe keeping of documents, currency exchanges thereby enacting the role of a financial supermarket. The Commercial Bank lays more importance on loans that it provides to its customers. These loans are Secured Loans, Mortgage Loans & Unsecured Loans. A secured loan is one in which a borrower pledges some asset as collateral against the loan. A mortgage loan is granted to purchase property against security provided to the bank until the mortgage is paid of in full. The mortgage or loan can be repaid in easy installments. Unsecured loans are granted without any specific securities, under marketing packages like credit cards, debit cards, corporate bonds, etc. All in all a commercial bank raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits & loans it to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.
Commercial Banking in India categorizes itself into project finance & working capital. In the case of Project Finance banks in India offers long & short term loans to business houses to set up their projects. These kinds of loans are issued after approval from banks core credit validating committee. The Project Finance segment in the commercial department is highly competitive with different players in the department trying to get the best deals done by enticing different corporate houses and business organizations to opt for the loan by providing lucrative offers. Working Capital or Capital Funds are issued by banks to corporate or business houses to meet diverse needs and requirements of the business community. Working capital finance is specialized line of business and is largely dominated by the commercial banks.
Commercial Banking in India saw dramatic changes in the last decade after Indias integration with world economy. These economic reforms and the entry of private players saw nationalized banks revamp their service and product portfolio to incorporate new, innovative customer-centric schemes. Marketing and brand building programs were also given a new thrust in the new liberalized banking scenario. Promotional budgets were hiked to cater to the new and large discerning target audience. To meet the personalized needs of the customer and in order to differentiate its services, banks repositioned themselves in specialized fields, like housing loans, car finance, educational loans etc. to optimally service the customer. As of today Commercial Banking in India dominates other areas of banking such as retail banking and investing banking, solely due to influx and the term called installments that lures the customers to opt for loans to satisfy their business needs whether it is corporate or personal needs in terms of a mortgage loan. Commercial banking in India has definitely brought in a new dimension to regulation of finances in the Indian market.
Indian Real Estate Market Problems And Prospects
India is a very large country of South Asia, the second most populous country in the world and the seventh largest by extension. The Indian continent from many centuries has been well known for its rich culture and commerce. To make your real estate investment more and more beneficial for you in this country, you need to rely on a network with a lot of real estate experience. Through an operating platform of a realtor investment becomes easier and safer for you as the firm helps to find the property in India.
The real estate market in India is undoubtedly growing local demand for housing space and office incredibly intense, but the market has to be regarded as emerging market for investors because the laws concerning foreign direct investment in the real estate market in India are so restrictive that the benefit of the real estate sector of India is far from straightforward.
This article is an attempt to combine some of the facts and figures which we hope will help anyone who joined the business of Indian real estate. There were changes made to the public good laws concerning foreign direct investment in the back of the real estate sector in February 2005 now mean that the Indians passersby (most commonly designated NRIs) and companies Overseas (CBOs for short) can invest up to 100% in the housing sector.
The government of India also has some rules in place that allow foreign investors to buy commercial property in India. if these properties are to be used by the company for business purposes. Most of the projects where FDI is allowed in a loop period of the investment of a minimum of 3 years to prevent speculative investment, but the good news for companies or NRIs who want to achieve in the real estate market of investment in India is that investment in smaller projects is now a real possibility. Before the IDF is allowed only in projects on sites larger than 100 acres, this was reduced to 25 acres. For individuals who wish to incorporate the real estate market in India is the easiest way to buy into an investment fund.
Changes to laws relating to FDI and the real estate industry in general that were announced back in 2005 rules of the investment fund of the Sierra relaxed to the point where many experts believe a sector of the investment company of real estate (REIT) could now emerge.
Meanwhile there are a number of attractive and transparent funds available from reputable investment houses that do not prohibit individuals hassle free entry into the real estate market in India. In terms of state of the real estate market in India in general and Mumbai property in particular care must be taken when acquiring any land or real estate because the fact of registration of title is not updated and independent legal advice should be taken at each stage of the process that buying property in India.
If anyone has a definitive guide to the process to purchase real estate in Mumbai, he/ she can maximize the benefits to the maximum. But a proper professional guideline is necessary before any investment.
Discover Top 10 Secrets Before Buying Commercial Property in Gurgaon
With the tremendous prosperity of business and industries in Delhi NCR, several companies and shopping malls are mushrooming in the capital city of India, but due to lack of space of establishment of further commercial properties in Delhi, the builders are utilizing the nearby associated cities for making further development of commercial complexes.
1. Gurgaon is becoming a demanding place in real estate business both from the context of residential flats as well as commercial properties. The main reason behind this situation points towards the huge impact of improving technology and establishment of infrastructure.
2. Today people are struggling for better prospects so that they can survive in this world of competition in a better way. In search of a better living they are tending to migrate to metropolitan towns and cities and are settling there. Gurgaon can be the ideal place for a better living.
3. Gurgaon which was traditionally not counted under the developed cities have been categorized presently under one of the most prosperous and developed city in India. The Haryana government has taken several initiatives for the improvement of this particular place which is reflected through the infrastructural growth and immense work opportunities which assures career growth. Moreover, due to the contribution of reputed builders such as DLF, Gurgaon have experienced huge improvements.
4. The demand for commercial properties have increased at a tremendous rate in Gurgaon, therefore many companies are offering new projects of construction with such lucrative properties at lower rates at the time of booking.
5. If you are looking for purchasing such a property in this location, you can find out the one that falls well within your budget depending upon your requirements. The companies offer great deals for commercial properties, residential properties, rented accommodations, etc. In case you are not aware of the prices you can take the help for professional assistance for better guidance.
6. Taking assistance from the real estate agents can be the wisest decision since they can guide you to make bright investments which are featured with great growth perspectives depending upon your financial budget.
7. Undoubted investing upon property located in such prosperous areas will definitely yield you profit in the long run since investing upon properties is like investing upon gold where the value will increase in future.
8. Commercial property in shona road is highly on demand. The place is full of greenery and excellent for construction of properties.
9. Due to the excellent connectivity in Gurgaon such as the metro railways which connects Gurgaon to Delhi, Noida and other destinations saves a lot of time of the passengers who are bound to visit these places on a regular basis. All such reasons make Gurgaon a preferable destination for real estate businesses.
10. People residing in Gurgaon are highly dependent upon luxury and hence the builders are showing high interest in developing luxurious malls where within one complex people can shop for clothes, eatables and other raw materials, they will not have to travel to different places to in search of various items. These shopping malls are constructed with all sorts of luxurious facilities such as elevators, escalators, restaurants, well maintained wash rooms for ladies and gents, spacious car parking areas, etc.
Ref. By: http://www.articlesbase.com/agriculture-articles/discover-top-10-secrets-before-buying-commercial-property-in-gurgaon-6813566.html
Author Bio: The author of this article dealing in residential and commercial properties in Gurgaon. Here he is sharing some facts that should be in mind when you are going to invest in commercial property in Gurgaon like office spaces, shops, complexes, shopping malls and more. For more details about commercial property visit at http://www.vipulgroup.in/Vipul-Business-Park-Gurgaon
Growing Demand Of Real Estate In Dehradun
Real estate market in India has witnessed multi-level growth in the past few years. As per the industry, the upward graph has no chance of reaching down or even no chance of coming flat for next few years. Lots of activities that include residential complex development, commercial real estate development, retail space development, etc have driven the Indian real estate market.
Apart from metropolitan cities, property prices of small cities in India are rising fast. Owing to tech boom across the country, property in Indian is attracting more investors, most of them from abroad. As per the sources of real estate industry, Indian real estate is increasing at 30 percent per annum.
Due to increasing property prices, buyers are looking forwards to invest in two and three tier towns where property rates are growing with rapidity. Dehradun real estate is one of the most demanded properties in India to its due to emergence of a large number of national and multinational companies.
Almost 90 percent of real estate developed is residential space and the rest include office, hotels shopping malls and hospitals. This type of double-digit is primarily attributed to the off-shoring and outsourcing businesses, such as high-end technology consultation, call centers and programming houses.
The demand from the IT sector surely has changed the urban landscape in India. According to estimates, there is a demand for nearly 70 million square feet of IT & ITES space over the next four or five years. Many multinational companies continue to move their organizational operations to India to take benefit of less manpower and other costs. Providing human resources and home at their work place presume great importance and there the requirement of form space for people to live and wok that in turn cause the development of other related infrastructure. It has been a predominant trend to set up the worlds best business centers, often campus-style establishments, bearing a different corporate stamp.
Conscient, a leading name associated with Dehradun property and real estate Dehradun, offers a wide range of real estate in Dehradun with most luxury at affordable price.
The Real Estate Market Of Mohali
Major realtors from all over India have realized the potential of the Mohali real estate market and are looking to develop promising residential and commercial properties in the area. This tier-II city is a part of the Tricities- Chandigarh, Panchkula and Mohali. The city has been developed as an extension of Chandigarh. It shares its border and architecture with Chandigarh. But Mohali has now emerged as a separate city, with a distinctive personality. It is the second best real estate investment option in Punjab after Chandigarh real estate. Home buyers including employers, traders, residents and NRIs have tapped the booming property market of Mohali.
Like most of the other property hotspots, developments on the commercial front has kick-started residential property segment in Mohali as well. Influx of highly-paid professionals employed by the business and IT giants operating in the city has rather translated into upbeat markets, and the impact is pretty visible. According to industry sources, capital values for residential plots in prime locations increased by 50-150 per cent.
Real estate developers like Emmar-MGF, TDI and Unitech have stormed the property market of Mohali. The city has witnessed a tremendous increase in the property prices and interest of property buyers. Now Mohali is being projected as a city with a very distinct identity. Office space in Mohali has already been caught by companies like Convergys, IDS Infotech, and other business and technical support companies. Besides that, the city boasts of a very pleasing and charming architecture. Commercial as well as hospitality investment in Mohali include construction of a five- star hotel, a couple of three-star hotels and two world class hospitals. Megaplex is also being planned which will be equipped with a film theatre and several entertainment options
Emaar MGF, one of Indias leading real estate developers is coming up with a signature project in the city called Mohali Hills. Mohali Hills is a maiden mega project of the joint venture in Punjab with a capital expenditure of Rs. 16,000 crores. Emaar MGF Land Private Limited has emerged Indias leading joint venture in real estate with residential, commercial & retail, IT parks and SEZs, Hospitality, Healthcare and Education projects being implemented on a pan India basis. The joint venture has brought in the largest FDI in the Indian real estate sector along with world-wide collaborations that have introduced best global practices in the sector today.
Mohali Hills is a project that includes development of luxury villas, premium apartments, terraced town homes and lies in close proximity to Chandigarh. Spread over many acres, this project is the first ever integrated township to be built in Punjab. This township will include residential plots, town houses and villas along with convenient shopping malls, landscape gardens and recreational centres, in simple words it will be a self-sufficient township. Mohali Hills will be a house for special education & wellness zones with fully-equipped hospitals, schools, and colleges in order to provide institutional facilities of medical care and education to the residents of the township. The township will also introduce world-class office & IT park spaces in the city which in turn will give a fillip to industry and business, IT in the state.
The project, Mohali Hills is the culmination of an MoU between the Government of Punjab and leading real estate developer, Emaar MGF to develop 5000 acres of land in different parts of Punjab; Mohali, Ludhiana, Jalandhar and Amritsar; through integrated township projects and urban infrastructure development projects.
Besides Emaar MGF, other developer that is taking keen interest in the property market of Mohali is Ansal API. The realtor is in the process of developing Golf Linksan integrated township comprising luxury villas, condominiums, penthouses and plots..
Unitech has also put stakes in Mohali, with its premium residential and commercial projects. Besides that some small developers are also investing in the city. Pearls Infrastructure is coming up with Pearls City, an integrated township, near Kharar-Banur Road, in sector 104. Taneja Developers is developing 200-acre township, which is yet another talked about project in the town. Other projects which will mark the development of the city are: the independent expandable villas, senior secondary school, club and recreation centre, hospital, and five star hotel, located on main MohaliKharar Highway.
In the meantime, the real estate developers are keeping their fingers crossed over the future scenario of Mohali, they feel that infrastructure development and progress on commercial fronts will play a significant role in the development of residential real estate at this emerging city.
Current Property Rates Of Mumbai
The financial capital of India, Mumbai has always been the leader in the indicative prices of the Indian real estate market. Even during the slowdown, Mumbai is the frontrunner when it comes to property. In the past as well, it has shown a record rise in real estate prices at par with some of the highest property prices in the world. That is why Mumbai is called the Manhattan of India.
It is not only the residential market of Mumbai that boasts of skyrocketing property prices but the commercial market of the city as well touch the sky. But these days, due to the slowdown, the city is witnessing a correction in prices both in residential and commercial markets. In fact, it is the best time to buy a property in the city with the developers offering lower prices and discounts. Also, one should consider buying property now with lower interest rates on home loans provided by banks.
The real estate prices as well as the increase in rental values in Mumbai can be credited to the large scale investments in the commercial sector and the residential sector. Mumbai has always been the favorite spot for the corporate sector for developing their headquarters in the city. Besides that, increasing investments by MNCs in the IT, ITES and the BPO sector have led to a growing demand for office space; which as a result have created an imbalance in demand and supply for residential property. The rental values in Mumbai are also high in comparison to that in other metros and cities.
The retail market of Mumbai also witnessed a huge hike in prices during the boom in the real estate market. In fact, it is one of the foremost cities to be hit by the retail buzz. With the coming up of the retail market, there has been an increasing demand for retail properties in the financial capital of India. This increase in demand has created a viable market for mall space and other kind of retail stores and showrooms. These retail stores and malls are either owned by a business or some brand outlet or leased for hefty prices as their demand is usually very high.
Mumbai has been ranked seventh among the most expensive cities in the world to carry out a business and to live in.
Although, the prices of different kinds of property in Mumbai differ from location to location, the following is an indicative list of realty prices of both the residential as well as commercial spaces in Mumbai.
Here are some indicative rates to apprise you of the market conditions.
Prices in South Mumbai in April 2009:
Cuffe Parade – Rs 20, 000 62, 000 per sq ft
Churchgate Rs 18, 000 30, 000 per sq ft
Marine Lines Rs 14, 000 22, 000 per sq ft
Malabar Hill Rs 20, 000 65, 000 per sq ft
Napeansea Road Rs 20, 000 65, 000 per sq ft
Worli Rs 18, 000 45, 000 per sq ft
Prabhadevi Rs 13, 000 24, 000 per sq ft
Mahim Rs 8, 500 14, 000 per sq ft
Prices in Central Suburbs in April 2009:
Byculla Rs 8, 500 11, 000 per sq ft
Wadala Rs 5, 000 8, 000 per sq ft
Sion Rs 6, 500 9, 500 per sq ft
Kurla Rs 4, 000 6, 500 per sq ft
Powai Rs 4, 500 9, 000 per sq ft
Chembur Rs 3, 750 7, 000 per sq ft
Ghatkopar Rs 4, 500 7, 500 per sq ft
Bhandup Rs 3, 750 6, 000 per sq ft
Mulund Rs 3, 750 7, 000 per sq ft
Thane Rs 4, 000 6, 000 per sq ft
Dombivalli Rs 1, 400 2, 500 per sq ft
Kalyan Rs 1, 400 2, 200 per sq ft
Ambernath Rs 1, 100 1, 600 per sq ft
Prices in Navi Mumbai in April 2009:
Vashi Rs 3, 250 5, 500 per sq ft
Airoli Rs 2, 500 4, 000 per sq ft
Kopar Khairane Rs 3, 500 5, 000 per sq ft
Sanpada Rs 3, 000 5, 000 per sq ft
Nerul Rs 3, 000 5, 000 per sq ft
CBD Belapur Rs 3, 000 5, 000 per sq ft
Kharghar Rs 2, 000 4, 000 per sq ft
Kalamboli Rs 1, 400 2, 200 per sq ft
Panvel Rs 1, 800 2, 700 per sq ft
Prices in Western Suburbs in April 2009:
Bandra (E) Rs 7, 000 11, 000 per sq ft
Bandra (W) Rs 16, 000 28, 000 per sq ft
Khar (E) Rs 7, 000 11, 000 per sq ft
Khar (W) Rs 13, 000 18, 000 per sq ft
Santacruz (E) Rs 9, 000 12, 000 per sq ft
Santacruz (W) Rs 12, 500 18, 000 per sq ft
Vile Parle (E) Rs 7, 500 11, 500 per sq ft
Vile Parle (W) Rs 10, 000 17, 000 per sq ft
Andheri (E) Rs 6, 500 9, 500 per sq ft
Andheri (W) Rs 6, 500 14, 000 per sq ft
Jogeshwari Rs 5, 000 8, 000 per sq ft
Goregaon (E) Rs 4, 500 7, 000 per sq ft
Goregaon (W) Rs 4, 800 7, 000 per sq ft
Malad (E) Rs 4, 500 7, 500 per sq ft
Malad (W) Rs 4, 000 6, 500 per sq ft
Kandivli (E) Rs 4, 500 7, 500 per sq ft
Kandivli (W) Rs 4, 500 6, 500 per sq ft
Borivli (E) Rs 4, 500 6, 500 per sq ft
Borivli (W) Rs 4, 000 6, 500 per sq ft
Mira Road (E) Rs 1, 800 2, 500 per sq ft
Naigaon (E) Rs 1, 200 1, 800 per sq ft
Vasai (E) Rs 1, 100 1, 800 per sq ft
Vasai (W) Rs 1, 000 1, 800 per sq ft
Virar Rs 1, 100 2, 000 per sq ft
Commercial Real Estate Companies, Commercial Real Estate Development, Commercial Property
Commercial Real Estate Companies
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Commercial real estate is often referred as investment or income property. It refers to building intended to generate a profit by a capital gain or rental income. Properties are developed and then given on lease or sell to commercial or business use in order to generate profitable return on investment.
Commercial properties include office buildings, farm land, medical centers, hotels, malls, retail stores, shopping centre, multifamily housing building, warehouse, garages, etc. Commercial properties could be broadly divided into four categories as retail, office, industrial and multifamily. Where first three were only known as commercial properties in earlier days but now multifamily building is also considered as commercial real estate.
Commercial Real Estate Development
Real estate developers normally acquire natural or undeveloped land and improve it with roads, entitlement of land, etc. After improvements are made to that land it is subdivided and sold to generate profits. Multi storey shopping malls which offer high end luxury tastes at middle class rates has increased the visitors and even the demand for more and more commercial property developments in India. Commercial real estate development is to be done with extreme research because each place is not suited for commercial purpose.
The commercial real estate companies in India are involved professionally in the commercial property development business. Real estate companies in India play important role in country’s economy. Raising a building on that is not that easy, we need so many consultants and a lot of procedures are to be completed to own a building whether it is going to be residential or commercial property, the real estate companies does it all. Among many industries, almost 75% to 85%, the commercial real estate companies are pioneer in terms of stocks, job opportunities and in many other parameters.
A good commercial real estate company conducts a market research, gathers information and analyzes it in each and every possible aspect. When market research reports are positive in order to generate a good profit they will start the process of acquisition of land. Once land is acquired land is developed and basic infrastructure is created. Slowly and gradually this infrastructure is developed in to a building which is then sold or leased to individual interested in the property. This land could be used for various purposes like multiplexes, exclusive showrooms, shopping centers, IT centers, warehousing, and multistoried parking.
Over the period of time return on investment on properties has increased and hence more and more companies are plunging in the commercial real estate development. The value of appreciation on commercial property in India is increasing annually at a rate between 8 to 10 percent. Commercial real estate is considered to be the best investment in order to generate huge profits in shorter time period.
In this rush of real estate development a customer must choose a commercial real estate property wisely. One must take into consideration traffic count, frontage, quality development, right partner, good price, etc. factors when choosing commercial property. Also one should choose right kind of commercial property developer in India depending on reputation in market, kind of material they use in developing, services provided by them, clearance of land title, etc.
Commercial Property Development
Current trend in the commercial real estate companies is constructing multifamily building and townships. Many townships in India are expanding at a fast pace. Many new residential properties in India and commercial properties in Indian are being developed to satisfy the growing demand of Indian properties. All this directs to a good investment opportunity for people who want to have a base in the city. A lot of new projects are in the initial stages which make the prices quite affordable. These kind of commercial properties which are used as commercial and residential purpose both are turning out to be real gem for real estate developers in India. This kind of commercial property in India is easy to sell and have high profits in return. Indian commercial properties are no doubt an ideal sector to invest as they generate stable income compared to the dwindling stock market.
Real estate property development company, Pacifica Company offers residential properties, commercial properties, hotels projects, IT parks development, township development, mixed use development projects, land development projects etc.
Who Invented Super Built Up
All over India, super built-up concept has taken its place in real estate transactions. It is applicable to residential units, commercial premises and now to the open vacant land.
Although, there is no place of such concept in any law for the time being inforce, the transactions cannot take place without it.
Question is, who invented and why ? When builders started selling concepts instead of flats in early 80s, they were asked to sell it on carpet and no due charges were given for the extra amenities they had provided.
The balcony was charged extra premium by the BMC and builder mounted balcony area on carpet area of the flat. And slowly he started adding areas of passage, common staircase, lift wells, compounds, terrace, gardens etc on the carpet area to maximise his profits.
The permissible built up ratio was 18% that time and is still applicable. But the trend changed over the years. Builders started mounting 23% in early 90s then 30% in late 90s and nowadays majority of the builder sells nothing less then 33% to 45% on residential units, 50% to 200% on commercial premises. Government agencies like MHADA, SPPL, DDA and CIDCO are also following the trend.
Landlords are also now very well informed on such practice and hence sell the open land to developers by adding 33% of saleable area.
This is not the practice in Mumbai alone. Ahmedabad, Delhi, Rajkot, Bangalore, Pune, Nashik, Kolkatta, Chennai and elsewhere in India are following the trend.
When Mr. Deepak Parikh, chairman, HDFC, boldly said in CREDAI meeting at Bangalore that the sale must be on carpet area, no developer came forward to announce his intention to sell at carpet area except Mantri Group. CREDAI has itself imposed code of conduct which clearly says that the carpet area must be mentioned in sale agreement. The Confederation of Real Estate Developers Association of India failed to impose such code.
In Model Agreement under Maharashtra Apartment Ownership Act, it is mandatory to mention carpet area in sq.mtrs. And the model agreement is mandatory to be followed for entering into an agreement. But sellers never follows the model Agreement, instead drafts one sided agreement to protect them and attack the purchaser without any fault.
A thought was coined by MCHI office bearer, in a talk show on some channel recently, that we give extra amenities, extra open space, extra lifts and other amenities, we are charging for that. And super built-up area is just a method for calculating the rates. Either you pay Rs. 2600/- as super built up or Rs. 3800/- on carpet, my flat will cost Rs. 18,00,000/- for 2 BHK.
Open spaces are mandatory to be left alone in the Development Rules of BMC. The builder has to keep such open space. By just decorating and using it as USP for the project, it doesn’t give him any reason to mount on the carpet.
It is already written in DC Rules and proven that lift wells and staircase do not count in the total constructed FSI, hence charging such area on carpet is not justified.
Compounds also cannot be charged on carpet, because anything open to sky is not saleable. Non saleable areas cannot be sold by proxy. It cannot be counted in area of occupation. Also, open car parkings are been sold, hence builder should not charge the open compounds twice, once sold as car parking and secondly mounting such areas on carpet. Even open car parking cannot be sold.
Lastly, the customer who register their documents on super built-up area pays higher property tax, society charges for life time. He pays the taxes for lifetime on the area which he is not occupying and only mentioned on paper. Higher stamp duty and Registration charges on super built-up area is also not justified.
It was indeed a great concept two decades ago, but now when transparencies are discussed, the seller must be Caveat Emptor. Let the buyer be beware of everything which he is paying for. Founder Convenor Mr. K.V. Satyamurthy, FAAI rightly raised the voice as “Maap Mein Paap Nahin”. An upcoming rating agency sent a SMS to this author, said “Earth will swell 45%, if developed by a Mumbai developer”
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