| Prime Realtors | The NCR's Property Doctors

Delhi Properties is the Prime Realtors' official blog. We are a Delhi based sole proprietorship firm, dealing in properties of Delhi and NCR since last 10 years now. We are the best when it comes to clean real estate Deals. We are your best real estate investment advisors. We have a never ending list of clients who are very much satisfied with the quality of services we provide. If you are planning to buy, sell or rent a property then please go ahead and contact us through this blog, we assure that you wont regret trusting us. 

Home Loan for only 80% of the market value of property

In the latest guideline issued by the RBI (Reserve bank of India), It has stated that the banks will be  able to provide loan for the maximum of 80% of the market value of the concerned property. Earlier it was left over to banks to decide the amount of home loan based on the property's market value. In a few certain cases the Banks were lending as much as 100% of the market value of the property as loan to facilitate the clients to the maximum level. After the issue of this particular guideline, The customer will have to spend at least 20% amount of the total market value of the property. Apart from this 20% portion the customer will have to bear the other costs such as registration fee, stamp Duty and legal fees etc. 

For example if a person named "A" purchased a property in august this year in Gurgaon. XYZ bank lend him 100% of the value of the property he planned to purchase. Suppose th market value of the property was 25 lacs. The bank could lend him this whole amount "25 Lacs" as home loan. So "A" had to bear only the overhead expenses such as Stamp duty, Registration fees, legal fees and commissions, if any. 

While, if another person named "B" plans to purchase any property with market value of Rs. 20 lacs, in NOIDA, in December 2010 (after the issue of the guideline related to the loan to property percentage limit). In this particular case "B" can only expect to get a maximum loan of 80% of the market value of the property that is 16 Lacs only. Apart from that he will have to pay the overhead costs as well.

But the clever property consultants have made their way out. Now they advice their clients to apply a loan on behalf of the reconstruction and furniture fittings etc. This way the client can get another 20% amount and he again gets a 100% value of the property's market value as loan. Again the clients will start overvaluing the proposed properties and can get a high amount of loan through this higher assessment. 

In the end, It is a good move from the bench of RBI to control the investors and banks.

Points to Remember While selling or buying a property

When we buy or sell any property in Delhi NCR, we need to be very cautious. A little carelessness can lend you in a very large money loss. So while finalizing any such deal you need to keep in mind the following steps.

1. Terms of payment: Seller and buyer need to agree upon a mutual agreement regarding the payment schedule and payment amount etc. It also discusses the amount paid in advance and all conditions related to the advance payment etc. Everything should be kept in writing and should be properly signed by both the parties along with two or more witnesses. 
2. Transfer of property's title: This is one of the last and very important steps during the property deal. The seller has to transfer the property to the name of buyer with the local registrar under whose jurisdiction the property was earlier registered. The buyer also need this title transfer in case he is taking a loan for this property. Once the seller gets his full and final payment, he should transfer the property title to the buyer's name.
3. Stamp Duty: The govt. authorities charges a fix percentage of the total sales value of the concerned property. in Delhi the current stamp duty charges are 4% for a male buyer and 6 % for female. In case of a joint ownership of the property the stamp duty to be charged at 5% of the total sale amount.
4. Sale Deed: This is the final and most important document in the deal of a property. It is the final sale agreement between the seller and buyer. Both the parties need to go through this deed thoroughly. If there is any kind of problem, confusion or difficulty, any of the parties can ask for the expert's help for the same. In case the property has more than one owner then each of them has to sign this document. This document also provides the details of the property like the layout plan, necessary permissions from the concerned authorities, maps and details to identify the owners of the property.

Capital and rental Values in Various Localities in Delhi

Capital value of properties in Various Areas of Delhi

Name of the Area	Rates per Sq yard (in thousand Rupees)
	In 2003	In 2010
Sunder Nagar	250	800
Prithvi Raj Road	225	700
Vasant Vihara	225	650
Golf Links	200	450
Panchsheel park	150	450
Shivalik	100	300
Greater Kailash	90	250
Lajpat Nagar	60	125
Malviya Nagar	60	125
Mehrauli	10	80
Aayanagar	5	25
Chhattarpur	3	20
Seelampur	5	40
Rajouri Garden	20	150
Pashcim Vihar	20	150
Punjabi Bagh	40	150

Rental value of properties in Various Areas of Delhi

Name of the Area	Rates per Sq yard per Month
	In 2003	In 2010
Sunder Nagar	500	2000
Prithvi Raj Road	400	1800
Vasant Vihara	400	1750
Golf Links	400	1600
Panchsheel park	400	1500
Shivalik	300	1000
Greater Kailash	300	800
Lajpat Magar	200	700
Malviya Nagar	150	600
Mehrauli	50	150
Aayanagar	20	100
Chhattarpur	20	100
Seelampur	20	100
Rajouri Garden	50	150
Pashcim Vihar	50	150
Punjabi Bagh	50	150

Please note that these figures are based on estimates. We have estimated the prices for a very well constructed flat or villa on the prime most location of the above mentioned area. You are requested to consult us by phone or in person if you want to know the exact prices for any particular property.

House tax in Delhi by MCD

Municipal Corporation of Delhi collects property tax or house tax annually. According to MCD's property tax collection Delhi is divided among 8 categories A to H category. A category indicates the costliest areas of Delhi such as Vasant Vihar, Prithviraj road and Sundar nagar etc.
MCD has increased the rates of property tax from the new financial year. The effective rates of house tax in the financial year 2010-2011 would be	A and B              12 % , C, D and E         11% F, G and H           7%

You may simply go to http://www.mcdpropertytax.in/ to submit your house tax. This website is made in a very simple and user friendly way. There are various modes of payment. You can find your property details, even if you don’t know your property ID. For that you have to go to the link List of property IDs and then enter your name and locality name to get you property ID. After that you just need to enter your ID into the form where you can assess the value of your property tax by simply entering the covered area and nature of property etc.

                                  

Metric unit as they are used for various Property kinds.

The property in Delhi is measured in Sq feets or Sq yards.
The plots are measured in yards or meters.
 9 sq feet makes a yard, e.g. a flat with 900 sq feets area means a flat in 100 sq yards.

Similarly 1 meter is equal to 1.20 sq yards. e.g a plot in 100 meters will equal to a plot with 120 yard area.

Agricultural lands are measured in hectares, acres, bighas and kanals.
1 hectare equals 2.5 acres.1 Hectare typically means 12000 sq yards or 10000 sq meters

1 acre equals 5 bighas. An acre means 4840 Sq yards or 4000 sq meters

1 bigha equals 968 sq yards of 800 sq meters

There are 6 Kanals in 1 acre or 15 kanals in 1 hectare. It means 1 kanal equals 605 yards or 500 sq meters.

One marla plot means 30 yards, but a 4 marla plot will mean 100 yards plot.

Agricultural land or Farm house

Delhi and NCR has thousands of farm houses in western areas of Najafgarh and Meahruli in south Delhi. Farm house means an approved piece of land where the owner is allowed to construct a house in the farm (covering maximum 10% or 20% areas and leaving the rest as green area). The normal farm house needs to have a minimum standard size of 1 hectare (or 2.5 acres or 12000 sq yards). But we have many farm houses covering hundreds of acres. In Delhi and nearby area one can also find farm houses with much smaller size i.e. 1 acre (or 4840 sq yards). These are a few special cases approved under the Punjab Act.

The farm houses are generally not used for residential purpose. The owners use a farm house to earn large amount during by giving it on per day rental basis for functions and parties. In the season of marriage the per day costs for a farm house reaches as high as 10 lac per day. But after the massive traffic jam problems due to the functions taking place in these farm houses, the Delhi Govt. has banned any kind of functions to be done inside the farm house not located on the roads with  width less than 60 meters (200 feet). 

Agricultural land is a the land which is recognised  by govt. for the agricultural purpose. Typically its different from the farm house as its not approved by the govt. for constructions inside. The price for agricultural land is also very high in Delhi and NCR. The current price per acre for a farm house land varies between 1 crore to 25 crores inn Delhi NCR.

                          

Difference between Built up area, super area & carpet area.

When we talk about the upcoming real estate project of any particular building construction company, we often hear the words like Super area, built up area or carpet area. We will try to understand the basic difference between these three things here.

                   Basically the super area includes the parking space, lifts, balconies and servant rooms etc. If we exclude the Parking space and lifts we will get the net built up area. And if we further reduce the area covered by walls, balconies, servant room and toilets we get the final carpet area which is used for living. This area is called carpet area because we can cover this particular area by a carpet. 

For example, if the super area of any particular flat is 1200 sq feet then it doesnt mean that we will have the complete 1200 sq feet for living. After we exclude the parking and lift space suppose 100 sq feet, we'll get the built up area i.e. 1100 sq feet. If we again reduce the walls, balconies, servant room and toilets we will get the actual carpet area which is (in the example here) 1100 - 300 = 800. So you can see that there is a huge difference between super area and carpet area (around 400 sq feet). 

Flats in Delhi or NCR

Flats | Floors | Apartments are the hot favourite property type for investor or end user. Flats are basically units constructed on a plot of land as one over the other and so on. Flats are a part of a building which can be a high rise (Multistorey with 4-5-6 or even 20 floors) or a part of a duplex or kothi, which has separate floors called independent apartments. In Delhi, Builder's are not allowed to construct any building above 15 meter (50 ft) height. Actually, Delhi is constructed above a high risk zone (earth quake probe zone). That's why we don't find many high rise building in Delhi except one or two Govt. buildings. 

                                                 In NCR there are lots of high rise building and thousands of real estate companies developing beautiful societies. In Gurgaon we have DLF, BPTP, Piyush Group and Raheja Builders etc. have developed and developing hundreds of projects (each project with 100 to 200 flats).

Ghaziabad, Noida, Greater Noida, Faridabad are also developing thousands of flats but the demand for Flats is so hight that their demand is always more than the supply, inflating the prices to the end users.

Govt. also keeps trying to contribute by making large projects through DDA and NBCC etc. These projects have large number of flats (2000 to 10000 flats). But even after so many efforts the demand for the flats always keep very high.

The most famous kind of flat in Delhi-NCR is a 2 BHK (2 Bedroom, Hall, Kitchen) flat. The starting price for  a basic 2BHK flat is 20 lac in Delhi. This price keeps increasing with more facilities and factors involved. For example a flat in Mehrauli's chhattarpur area costs around 20 lacs, but you cant avail loan facility in this area. On the other hand you can buy the same flat in Malviya nagar for around 50 lacs with loan and other better facilities. If you stretch our budget to 75 lacs then you can buy the same size flat in a posh area of Safdarjung Enclave or a DDA flat in Saket or Munirka Vihar. The posh most areas like Vasant Vihar or Panchsheel park or GK needs a large budget of more than 1 crore for a 2 BHK flat. Similarly the price of a 3 BHK flats ranges between 30 lac to 2 Crore. 

                                                                           You need to keep everything in mind before you decide to buy a flat, these factors are budget, locality, construction quality, covered area etc.

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Property prices to go down by 15-30% in Delhi

According to various sources (mostly local property dealers and consultants) the price of the properties in Delhi are supposed to fall anywhere between 15 to 30% during 2010-11. Although, most of them agreed upon the point that this decrease in the capital value of properties will be limited to Delhi city only and the properties in the nearby areas such as Gurgaon, Faridabad (in haryana), ghaziabad, Noida and greater Noida in UP will not be affected. Prices will keep increasing in these cities. The main reason for this fall is the saturation in the prices of properties in Delhi. Sources claim that the steep increase in the property prices in Delhi was not natural and was caused by the investments from Foreign parties (NRIs and foreign real estate companies).  

The price fall will be considered as correction. Correction states to a situation where the prices reach the unusual heights due to the interest of investors in the properties, but later when all the investors are packed with properties and are not left with no funds to invest then they think of selling the properties. They then seek for end users or real parties in the market. The end user who is always seeking a low budget deal would bargain hard to purchase the properties. The end user follows wait and watch policy and takes time, which makes the market full of options for him and the supply overtakes the demand by huge difference. This competitive situation reduces the prices and the end users are benefited by all this. This condition of property market can last for 1 to 4 years. The capital city of Delhi is sure to face this condition soon. 

So, it is going to be in the best interest of buyers (the real end users and not investors) to wait and watch before finalizing any deal regarding property. The price fall will enable these buyers with ample choices.

Buying a Commercial Property in Delhi ?

Are you an investor ? Are you planning to buy a commercial property in Delhi NCR ? Do you want to have some knowledge before you make a final decision ? Then please go ahead, the following  facts are for you:

• 30% of the total Commercial Properties in Delhi were sealed by Govt. Authorities due to various reasons. Make sure that the property you are planning to buy is well approved by the Govt. authorities and it has all the concerned legal papers. 
• The commercial property value has gone up to 5 to 20 times in the last 5 years.
• The area falling near the Metro lines in Delhi NCR are best for buying a commercial property.
• NRI and foreign nationals are required to fulfill some important procedures before making the deal.
• The value of commercial property in Gurgaon and Noida has increased very much in the last few years.
• The local markets are facing a very very tough competition from thee newly built shopping malls. 
• Many markets earlier known to be super hit are nearing slow down due to sudden rush of mall culture.
• There are a few places where the purchase of a commercial property has always been a wise decesion e.g. Cannaught Place, Nehru Place, Rajender place, all DDA markets, Dwarka sec-6 market, Karol bagh, lajpat Nagar, Sarojini Nagar etc.

Various Real Estate Companies fighting to Acquire land in Gurgaon

Gurgaon has seen a steep increase in the property prices during the last 6 years. The property value has gone upto 10-50 times during this time. The natives of the Gurgaon area are happy with this change. They have earned  lacs and crores by selling their farm lands to various developers and builders at a very hight rate. 

Most the villages located in gurgaon have sold their agricultural land to various real estate companies. These real estate companies are not newbies. These are the top most companies of the country: DLF, BPTP, Piyush, Raheja, Parsvanath, Triveni, Uniteh, MGF, Emaar, IRIO are a few to be named here. each of the companies have purchased thousands of acres of lands in various villages of Gurgoan district. 

These real estate companies know very well that there will be very less (or almost nil) land available for construction in the upcoming years and hence paying hight prices for the land available now. Even after the massive volume of deals taking place in this area (Gurgaon), these companies always keep trying to explore further. The large area of the Gurgaon district has been taken by the HUDA (Haryana Urban Development Authority) for constructing new Residential sectors. The remaining land is being aimed by various companies. Ghata, Gwalpahari, Ullabas, bandhwari, bairampur and Valiawas are the villages kept to top priority for land purchase by these companies. After the entry of IRIO into the land purchase race, the competition has become even tougher for old companies like DLF and MGF. For instance DLF and MGF have been purchasing large tracts of lands in Bandhwari village since last 6 years. It started purchasing land at the rate of Rs. 10 lac per acre in starting. Later the DLF company increased the rates to 20, 40 60 lacs per acre during the course of time. It now owns around 400 acres in the village bandhwari and is offering upto 1 crore per acre to the landowners. But the IRIO company has offered 1.5 crore per acre to the villagers, which is certainly a large difference and no one would like to sell hisc land to DLF anymore. Similar is the case with MGF company in Bairampur village. 

However, the competition between these giant real estate companies has made it easy to the landowner to choose the best option among all these, or to demand much above the market price. The natives of this area who had even a small chunk of land in past and were not able to feed their families with agricultural activities are enjoying a luxury life with crores of rupees in bank and SUVs to drive. 

Politics over property Tax

After the implementation of the new property tax rates and slabs, various political parties have jumped into the debate of it. The main opposition party BJP (bhartiya janta party) has blamed the state Govt of ignoring the interests of rural population of Delhi city. BJP says that there should be no property tax in the rural areas. Apart from that the new legislations state that the farm house properties which are not used for agricultural purpose should pay tax on the whole property instead of the constructed area only, which was done till the implementation of the new tax rates and slabs. 

The opposition party claims that the rural properties are mostly owned by poor people and should be exempted from any kind of property tax. A delegation of leaders from all 360 villages of Delhi have met the MCD commissioner over the issue and requested him to not to lay tax over the rural properties. 

Other parties also condemned the state Govt. over the issue and said that the poor people are already suffering hundred type of taxes apart from inflation. It has become very costly to feed their families due to the increasing prices of all necessary commodities, this tax increase will definitely make their life tougher.

The MCD (Municipal Corporation of Delhi) has decided to not the collect tax from the unauthorised colonies, as it can lead to controversies later. Most of the property tax is collected from property owners on self assessment basis. Many people from unauthorised colonies have been regularly submitting the property tax to make their possession legal and to avoid sealing or demolition of their property.

Where to Invest?

The property value has been increasing consistently in the Delhi and National Capital Region (NCR) since last 40 years. The appreciation has always been above the imagination of investors, for example you could buy a 2.5 acre farm house (approved and well built) in Ghitorni (south Delhi) area for less than 1.5 crores in 2004. Today you can not buy the same farm house for even 30 crores. So the property rates have inflated up to 20 times in the last 5-6 years. 

Similarly, you could buy a 192 yards floor in Shivalik (south Delhi's posh locality) for less than 30 lacs in 2003, today its capital value is much above that (Around 1.5 Cr). But as you can see in the above two examples that the increase in the value of farm lands is much more as compared to that of the Residential property. This is a very important thing to note, as the end user (the one who purchases the property for the sake of self use rather than investment) would be more than happy to see the above change. But you can calculate the benefit the investors have earned, who invested in the farm lands, plots and commercial properties. The increase in the value of residential property is between 5 to 10 times depending upon the locality etc. in the last 6 years, while the value of a commercial property has increased by 5 to 15 times in the same time period. The appreciation in the value of farm lands, plots and industrial properties has been unbelievably high in the last few years, it is between 10 to 100 times. In Gurgaon's rural areas the prices have gone up to 10 crore per acre from just 10 lacs per acre in many villages, in the last 6 years. So its evident that investors who opted the last three mentioned options gained highest as compared to the others.

The above examples show the change in the capital value or sale value of various kind of properties in Delhi NCR. If we talk about the rental values then the case is totally different. The rental value of various kind of properties has changed a lot but if we compare that to the increase in the capital values then we find in nominal. The rental values have gone up to 2 to 4 times in various areas, depending up on the property type and locality, facilities etc.