BUILDING LINE:
The line up to which the plinth of a building may lawfully extend within a plot on a street or an extension of the street. No projections overhead projections are allowed beyond the building line.
BUILDING SETBACK:
Minimum distance between any building and structure from the boundary line of the plot to the road.
CORNER SITE:
A site at the intersection of two roads and facing two or more roads or street.
RESIDENTIAL DEVELOPMENT PLAN: This plan contains a proposal for construction of one or more residential buildings on a plot measuring more than 20000 sqm in extent.
NON RESIDENTIAL DEVELOPMENT PLAN:
A plan containing a proposal for construction of one or more commercial buildings on a plot size measuring more than 12000 sqm in extent.
DWELLING UNIT:
Used primarily to describe the equivalent household in buildings.
FLOOR AREA RATIO (FAR):
This means the quotient obtained by dividing the total covered area of all floors by the area of the plot. Then FAR includes the mezzanine floors as well. FAR= Total covered area of all floors.
PLOT AREA:
There are certain FAR exemptions the floor area excludes the space used for car parking, staircase room, lift room, ramp,escalators,ducts,water tanks,main sanitary ducts,open balcony and machine rooms.
SUPER BUILTUP AREA:
This is the total constructed area inclusive of all the area mentioned above.
CARPET AREA:
It is the internal dimension of the building or an apartment whch excludes wall thickness.
FRONTAGE:
The width of the site abutting the access road.
GROUP HOUSING:
More than two buildings on a plot with one or more floors and with one or more dwelling units in each floors , they are connected by an access of not less than 3.5m in width, if they are not approachable directly from the exisiting roads. Under this we will look into the definitions of apartments, row houses and villas.
APARTMENTS:
One or two buildings meant for multi family dwellings and containing more than four units.
ROW HOUSES:
A minimum of three houses or maximum of twelve houses attached back to back with two metres kept aside as set back and 1.5m as rear set back.
VILLA:
An independent house or dwelling on a given plot.
HIGH DENSITY DEVELOPMENT:
This includes star hotels, shopping malls, multiplexes, commercial complexes, IT/BT office spaces.
HEIGHT OF BUILDING:
The vertical distance measured , in the case of flat roofs, from the average level of the ground around and incase of pitched ( slanting ) roofs, upto the point where the external surface of the outer wall intersects.
HIGH RAISE BUILDINGS OR MULTI STOREYED:
A building of a height of 24m are more above the average surrounding ground level. High raised buildings are defined in the land used zonal regulations of the revised comprehensive development plan(RCDP) 2015 as buildings of a height of 24m are more above the average surroundings ground level. The minimum size of a high raised building is 1000m unless exempted by the authority.
High end commercial / residential units cater to the upper socio economic strata.
PLINTH:
The portion of a structure between the surface of the surroundings ground and surface of the floor immediately above the ground.
STILT PARKING:
Buildings constructed with stilt area of non habitable height(less than 2 or 4m) used for parking. If the parking place goes 3m below the site level, then the parking space is called basement.
1. A VALUER CAN OFFER REASONABLE ADVICE ON TRANSACTION OF PROPERTIES AND CAPITAL GAINS
A valuer can be more useful than just provider of information and assessment about a property. He or she can provide value added services and also offer reasonable advice on transaction of properties and capital gains.
Case 1: A property, acquired in 1976, comprising about four grounds and a twostreyed residential building was to be sold and Rs.4 crores was offered for it in 2007. A valuer was commissioned to asses the property as on April 1, 1981 for computing the captital gains. Computation of capitalgains.
The land was purchased in 1976 and the building constructed in 1978.
Value of the property as on 4 April 1, 1981 is Rs.1.82 lakhs. Cost inflation index for the year 2007-08 is 5.51. Index of cost of acquisition is 1.82 lakhs x 5.51 which is about Rs.10 lakhs. Expected sale consideration in 2007 is Rs.4 crores.
........As per the provision of section 50 C of the I.T Act, the higher side of sale consideration or the Registrar’s guideline value is to be considered in computing capital gains tax. As the guideline value in this case is less than Rs.4 crores, the amount that will draw capital gains can be computed by deducting Rs.10 lakhs from Rs.4 crores, which is Rs.3.9 crores. The capital gains tax is at 20 per cent of the gain which will be ( Rs.3.9 crores X 0.2) Rs.78 lakhs.
........One can save capital gains tax if an alternative residential property is acquired within a specified period or by depositing in specified bonds, which is limited to an amount of Rs.50 lakhs.
........Here a doubt may aries whether this consession is available if the owner has more than one residential property. Experts are of the opinion that the expression ‘ a residential house’ used in Section 54 of the I.T.Act could mean ‘any’ residential house and there is no expression of limitation such as the assessee should own only one house. On the contrary, some others argue that only one residential house or one unit or a flat is eligible for exemption. While some others argue that within a complex more than one dwelling unit can be acquired. There is not much clarity on this.
........In order to avoid risks, the valuer suggested that before selling the property, the owner might make a settlement in favour of his three children. Allot them 25 per cent each and retain the remaining 25 per cent of the undivided share with him. This way, the capital gain for each works out to Rs.97.5 lakhs. Each can then utilize the gains in acquiring a house/ flat or deposit the amount not exceeding Rs.50 lakhs in bonds.
........If the owner of the property does not make a settlement in favour of his sons before the sale then he is eligible to deposit only Rs.50 lakhs in the specified bonds and the balance of Rs.3.4 crores should be utilized for acquiring a residential property partly or in full and due taxes have to be paid.
........In case the owner wants to enter into an agreement with a builder. The builder can offer four flats – one for each – and also pay cash consideration. In this case, the cash considerastion plus the cost of each flat should not be less than Rs.97.5 lakhs.
Case 2: A public limited company proposed to acquire a property in Chennai for its guest house. It identified two properties and wanted to assess the value before finalizing the transaction. Property A was on a main road having a width of 40 feet. The other property B was located in a street branching off from a 40 feet road and having a width of 24 feet. The valuer, in his report, added a footnote stating that, as per CMDA rules, second floor cannot be constructed in property B. The director thanked the valuer and appreciated his service as he was about to finalise the property B.
Case 3: A property with an extent of four grounds facing a 100 feet road in Mylapore was offered. Rs.62 lakhs per ground. However, a month before, the neighbouring plot, having the same extent of land was sold for Rs.60 lakhs per ground. A valuer was approached to assess the value as in 1981 in order to compute the liabilities towards capital gains tax. The valuer, apart from assessing the property, explained to the owner that the person who bought the neighbouring property is also buying his property. By combining both the plots, the buyer will benefit from a larger plot size and would be able to build a multi-storeyed building. As a result, a higher FSI of 2.75 can be achieved. The valuer explained to the property owner that his parcel of land is crucial to the buyer. This helped him bargain for a better price.
Bangalore-based Alliance Infrastructure is to develop a residential township in Padi in the Northwest of Chennai at an investment of Rs.500 crore. The integrated township, Orchid Springs, will provide all facilities required to deliver on a "walk to work" concept.
The township is located in Padi, 0.8 km from the inner ring road, which provides excellent connectivity with all parts of Chennai city. It is 3.5 kms from Anna Nagar and can be reached in about 5 minutes. Some of the best schools of Chennai - SBOA, DAV are just 4 kms away. The Ambattur industrial area is fast growing into a software hub and is only 5 kms from Orchid Springs. What’s more, Orchid Springs is connected to the airport by a 4-lane road all the way.
Orchid Springs will offer 1100 lifestyle apartments, a 2.5 lakh sq.ft IT park, a 1.5 lakh sq.ft retail shopping mall, 4-screen multiplex, 5-bed hospital and school along with other amenities on a 20-acre site. There is also a club, gym, swimming pool, tennis court, badminton court, and jogging track.
Many township developers such as Alliance believe that there is large demand for an integrated work,residential,and leisure environment all in one place. Workers who have to commute long distances to their offices and their families who also need to travel a long way for shopping, schools or leisure, would prefer to have all these in close proximity to where they live.
Alliance is not only building an IT pak in its Padi township but is also considering offering a discount on homes to employees of companies located in the IT park.
Apartment sizes are between 1,000 and 1,880 square feet and an apartment could cost as much as Rs.70 lakhs. Alliance provides a two-year warranty on its homes.
Real estate in Chennai- a Crest or Trough.
Over the past few years, especially the last two years, real estate prices in the city has almost doubled. MRC nagar, which was quoting at rougly Rs 75 lakhs per ground in 2003 is now quoting at Rs 1 crore per ground. What is even more disturbing (if you have a bearish outlook like I do) is the price of flats. A 2000 square feet flat, a super deluxe flat, on C.P Ramaswamy road sells for anywhere between Rs 80 lakhs to 1 Crore, and all the flats have been sold out. the minimum price for a flat in Alwarpet, Mylapore area today stands at Rs 50 lakh, even in the dingy Alamelumangapuram (the area behind the Sai Baba temple.
The land price appreciation isn't restricted to just the city, it extends even to the outskirts, areas like Guduvanchery and areas all along the OMR road and beyond Trishulam are also experiencing a boom. North Madras (as usual?) hasn't experienced such a boom probably because a lot of land in that area is up for grabs, akin to mill lands in Mumbai (?).
The housing boom, is largely debt drive, is what is worrying, largely because it is dependent on the economic growth, if there is a slow down in economic growth, and especially IT boom (IT employees are at the forefront of this boom),it might lead to defaults on EMI's. Is the Chennai real-estate market over heated? And therefore headed for a crash?
There has never been a real estate crash in Chennai, but then previous realestate booms have been financed through savings and not through debt, like the current boom. Does this mean Chennai will witness its first real estate crash?
Coimbatore is in the grip of a construction fever. Whether it is plush apartments or medium budget houses or commercial/office complexes, the city has not witnessed such a frenetic construction activity in the past as it is seeing now.
According to conservative industry estimates, the number of residential tenements under construction now should be around 3,000 involving an investment of around Rs 500 crore. This is only from the organised players in the city. If one takes into consideration the value of homes/apartments being built by small builders and homes by individuals, the value of investment should be at least double of that figure, if not more.
Building on core strength
Always billed as one of the most liveable cities in the country, Coimbatore is finding that its core strength in the manufacturing sector, particularly in engineering and textiles, has given a new impetus to the real estate industry. More importantly, it has given it greater stability, as Coimbatore has also emerged as a global outsourcing hub for the manufacturing sector. But what has made the realty industry really hot is the fact that there is an air of expectancy about the rush of IT majors to Coimbatore.
The changing profile of the buyers has brought in its wake change in their expectations from the builders.
There has been a significant increase in the demand for luxury apartments and individual houses in the Rs 35-50 lakh plus range and recently investors lapped up the opportunity to buy apartments at a staggering price of up to Rs 1.50 crore in the posh Race Course area in the city.
Buyers have become more discerning and facilities that were earlier perceived to be luxuries like swimming pool, community hall, gym and R.O. plants have become necessities now.
According to Mr R. Rajahram, Managing Director, Sri Renga Group of Companies, Coimbatore, which is into textiles and real estate development, the boom began even before there was talk about the entry of IT sector into Coimbatore. He was confident that it would last at least for the next 10 years, irrespective of IT majors' entry or not. His optimism was reinforced by the fact that the actual time taken for selling an entire project had come down from one year earlier to just a few months now.
He said apart from engineering industry and IT, there was enormous potential in healthcare and education and there was substantial demand from the user services in these sectors. Services like medical transcription have spawned huge demand for land and in fact, the construction of such a facility in Thondamuthur area on the outskirts of Coimbatore has sent the land price soaring there.
Mr.V.Mohan, Managing Director, Mayflower Enterprises Private Ltd, Coimbatore, said that unlike Bangalore or Mumbai, the real estate market in Coimbatore was not driven by speculation.
While there could be an element of investment buying, much of the purchase was made by the end users.
The market that was dull after the 1998 serial bomb blasts in the city recovered in 2002 and has been on a roll since last year.
There was a noticeable interest from NRIs hailing from nearby cities like Pollachi and Udhagamandalam in buying properties in Coimbatore.
Flood of projects
Mr Mohan said the investment in housing now in Coimbatore is the highest-ever witnessed. The demand in the high-end segment constituted only about 15-20 per cent. The rest of the apartments were of conventional type where the builders also try to provide value-added services. The fact that Avanashi road was a National Highway and most of the educational institutions were located on that road and the expectation that it would form the IT corridor have made land very expensive on that road.
He said one mall would come up on the Brooke Bond road and apart from the multiplex being put up by the Essel group another was expected to come up within the city. Any shopping mall would need 4-5 acres of land and some of the potential investors were looking for ideal locations.
He said for reasons of safety and as the quality of living is better, people have started preferring group housing projects. Such a concept has got very good future but land is not available within the city for promoting such schemes. It is time to think of developing satellite townships.
Changing buyers' profile
Mr V. Subramanian, Executive Director, Ramani Realters Pvt Ltd, Coimbatore, said the city was attracting people from across the country and NRIs from abroad because of its climate, the people's culture, the educational and health care facilities available etc. The exposure of the people here to the latest styles and facilities has made them demand the best specifications in terms of flooring and wall tiles, fittings and facilities like gym, swimming pool, R.O. plants etc. The buyers want elegant elevations and large rooms and cost was not a constraint to them.
He said in the 1990s, people were comfortable with the Rs 10-12 lakh price range for an apartment. But now the budget has gone up to Rs 25-35 lakh as the disposable income has gone up and the home loan rates have dived. The demand for flats in the 1,000 sf.ft-1,500 sq.ft was only 30 per cent while the larger flats have greater demand now. The age profile of the buyers has come down to 25-35 years and they want to put their parents in comfortable homes!
Coimbatore, - Vascon Engineers, a Pune-based developer, and Pricol Property Development from Coimbatore are to form a new company Vascon Pricol Infrastructure Ltd to develop real estate projects in Coimbatore with an investment of around Rs 700 crore
RR Industries to set up Rs 4,500 crore township in Madurai | INRnews
- RR Industries is to set up a Rs.4,500 crore IT township in Madurai in Tamil Nadu. This was announced by the company at a press conference on Wednesday.
According to R.Ravi, Managing Director of the company, the township would consist of 7 million square feet of IT park space, 25,000 service apartments, four shopping malls, two multiplexes, two hospitals and two hotels. This would be created over four to seven years. A part of the township would be an SEZ.
RR Industries has bought 400 acres of land required for this project at a cost of Rs.90 crores.
According to Mr Ravi, “The township will create an annual GDP of over Rs 3,500 crore or $ 770 million once the project is completed. It will also employ about 10,000 construction workers for the years when the township is being constructed.”
Chennai- based RR Industries has provided leased infrastructure facilities to software companies since 1997. As reported by INRnews earlier, the company is also working on a project to develop 2.2 million sq ft of space in Ambattur, in North Chennai.
The Tamil Nadu Housing Board (TNHB) has found takers for semi-developed plots in Navalpattu that have been unsold for 22 years. Over 1,000 plots between 338 to 430 sq.ft. were recently auctioned.
The sudden spurt in demand has apparently followed plans by ELCOT to develop an IT Park nearby. Elcot Chairman C.Umashankar recently inspected the plot accompanied by senior district officials. Elcot is also planning an IT Park at Panchapur.
Trichy Real Estate Properties have been growing continuously since many years because of popularity in the state of Tamil Nadu, India. The location of the city, on the banks of the River Cauvery, makes it all the more an ideal place to live in thus leading to the growth of real estate in Trichy. The well connectivity of the city with various parts of the state as well as within the City makes the experience of living in the City more convenient. The high prices of properties in Trichy can be credited to the presence of the International Airport near the City and also because its one of railway junctions of Tamil Nadu as it attracts tourists from all over India.
SALEM: Once known for its mangoes, Salem is fast emerging a real estate hotspot. High rise buildings, shopping malls and multi-storeyed buildings are coming up at a faster space in this tier-II city, courtesies to the proposal for a tidal park, expansion of Salem Steel Plant and the new railway division.
Here the land has become precious. Apartments have become the `in-thing' here. Even leading jewellers in the city have started investing in the booming real estate. They are not bitter either.
Premium prices
A Corporation official says that nearly 15 builders are engaged in converting the lands into high-rise apartments that fetch premium prices from its buyers. A mill in the city has been sold for the construction of 600 individual houses. And many more have sought the clearance for constructing apartments from the civic body.
These apartments have everything including spas. Landscaping and adequate parking have become the integral part of the buildings. "The buyers insist on ambience now'' says a leading promoter in the city, who has been searching for professional interior decorators.
Shortage in manpower
The construction industry, though lacks quality personnel, is thriving. "The major concern is the shortage of skilled manpower. When the boom is evident everywhere, the task of roping in skilled ones becomes tougher," a builder says. But he also admits that one has to pay liberally.
Good residential projects at prime localities in Salem city are quoting anything between Rs. 1,000 and Rs. 1,100 a sq ft, which has now become affordable for the upper middle class too. Commercial rates are ranging between Rs. 1,500 and Rs. 1,700 a sq ft depending on the location and quality of construction.
Affordable costs
Availability of space at affordable costs is the major reason for new entrants into tier-II and tier-III cities. With both the State and Union governments vying each other to pump in crores of rupees to create the infrastructure, Salem is fast emerging the much sought after city in the Western region. A senior official who has been monitoring the development of the tidal park in Salem says many IT and ITES firms in Bangalore and Mumbai have expressed their willingness to open shops here. With just a three-hour drive from Bangalore and Coimbatore and well-connected both by National Highways and rail link, Salem is today the investors' choice.
MADURAI: The State Government will not allow real estate prices to escalate, putting information technology companies at a disadvantage.
It will act to contain the prices in places where IT parks have been planned, C. Umashanker, Managing Director, Electronics Corporation of Tamil Nadu, said here on Friday. "We have a strategy to contain the real estate prices. If private landowners try to shoot up the rates, we will go for indiscriminate land acquisition in tier-II cities like Madurai and invite the companies," he said at a plenary session on "Why Madurai?", organised by the Confederation of Indian Industry, under the theme, Southern Prosperity through Enhanced Economic Development (SPEED) 2006.
He said there were apprehensions about the escalating land value in cities and towns in the run up to the setting up of IT parks. "... so the Government will take steps to contain the prices."
Clearance
He indicated that the clearance for work on the IT parks in Madurai was in the final stage, and the tender process would be set in motion in another eight weeks.
MADURAI: Already investment commitments to the tune of Rs.5000 crore have flooded Madurai. In the coming years, they are anticipated to go up in multiples.
In addition to the human resources generated by educational institutions of southern districts, resources are to be borrowed from all over the State.
This will mean an escalation in construction activity, spurt in vehicle population and a change in lifestyle. Will the available infrastructure in Madurai be able to withstand pressures of rapid industrialisation and urbanisation? This is the question in the minds of all stakeholders.
Growth has taken place at less than snail's pace in the past. With a new- found zeal for tier II and III towns, investors have turned their eyes towards Madurai, which has already qualified to be the "most preferred investment destination" in the next decade.
A river that is perennially dry, a road network that includes a ring road and 12 radial roads and an inadequate underground drainage and garbage removal system are the basic infrastructure facilities available here. In addition, power will be a major constraint.
The city, by normal growth, would have brought suburban Melur and Tirumangalam into its fold, providing for the creation of a Greater Madurai. The opportunity has come now for formulating a perspective plan for Madurai and the southern districts.
Vision statement
The choice of the region as an information technology destination, commissioning of the Sethusamudram Ship Channel Project and the creation of special economic zones will bring a lot of pressure on the available infrastructure.
That is the reason why the Confederation of Indian Industry (CII) has been demanding a vision statement for Madurai.
Planning should take into account the anticipated growth in the next decade. There is especially a need for wider roads and an outer ring road.
These were the demands put forth in the recently concluded expo, SPEED 2006, organised here by the CII.
Investors have shown an interest in Madurai because of its low real estate prices.
As news of new investments trickles in, prices have begun to skyrocket, despite the Government's assurance that it would have to step in to stop artificial escalation.
A square foot of land, which went for around Rs.20 on the Melur Road a few years back, is now quoted at Rs.250. There is also an apprehension among the public that growth will be lopsided, along the Aruppukottai Road, where the land cost is low.
If industrial units have to choose a place away from the city but nearer to the airport there is no other option than choosing the Aruppukottai Road, industry leaders say.
If the pressure on the city's infrastructure is to be minimised planners should think in terms of creating satellite towns around Madurai, they say.
Failure to improve infrastructure or check real estate prices will result in flight of investment to other destinations, the industry fears.
The land was purchased in 1976 and the building constructed in 1978.
