Real Estate in Gurgaon’s Southern Regions Challenges Older Gurgaon Localities

Realestate in Gurgaon is abuzz with action and many are saying today that South Gurgaon is what all of Gurgaon should have been from the beginning. South Gurgaon is the region of Gurgaon in or near Sohna Road.

What’s the Difference?

South Gurgaon is coming up rapidly and from its onset has been better planned than were the older regions of Gurgaon near Golf Course Road. The lack of formal planning led to much haphazard planning in the older regions of Gurgaon. Many infrastructure projects have been implemented in the regions of MG Road and Golf Course Road that have drastically modernised these regions. The drive down the newly built tunnels on Golf Course Road is no different than a drive down any well-built road in Paris or London. However such developed took its time and is only visible after twenty years of poor planning in the localities mentioned.

What took over two decades to come to pass in the older regions of Gurgaon will happen in a fraction of the time in Sohna Road. City planners, civic authorities, and builders in Gurgaon have learnt a lot from the mistakes made in the early years of development in the millennium city. What took two decades to happen in the older parts of Gurgaon is expected to happen in two years in South Gurgaon.

Challengers to the Throne

Golf Course Extension Road is already a strong challenge to Golf Course Road, not just because the houses and commercial properties on Golf Course Extension Road have been built by some of the best in the world. Aesthetically too, Golf Course Extension Road, at a ninety-degree angle to Golf Course Road, covers a larger area than does Golf Course Road and provides the promise of being the backdrop to a larger number of commercial properties and flats than the Golf Course Road.  

Just as Golf Course Extension Road holds the promise of being a challenger to the Golf Course Road, Sohna Road is equally a challenge to the Golf Course Road. As a matter of fact, cities eager to develop their urban landscape are learning and copying a great deal more from South Gurgaon than they ever did from the more mature regions of Gurgaon.

Conclusion

Cities across India are learning from the modern and planned organic development occurring rapidly in the regions near Sohna Road. While Chandigarh is also a planned city, it is none the less not as modern a city as Gurgaon due to its relatively temperate rate of development. Many of the upcoming projects in Gurgaon on Sohna Road are worthy equals to the best developments on and along Golf Course Road.  

Cash Strapped Authorities Announce There Will Be No Major New Projects in Noida

There will be a fall in the number of New project in Noida and greater Noida, projects related to infrastructure will be fewer in number because the Noida and Greater Noida Authorities have both stated that they have insufficient funds to undertake large scale development. Both authorities have stated that they are owed dues amounting to twenty thousand crores from realtors in both regions of Noida. The authority CEO has stated that projects that had been planned, including a heliport and a Convention Center will be difficult to undertake because of a shortage of funds.

The CEO of the Noida Authority had earlier put two proposed metro projects in the Twin Cities on hold last week because he had insufficient funds to complete the projects. Rather than taking on even more projects in Noida, the authorities goal, according to the CEO will be to ensure the timely completion of ongoing projects.

Table of content As Result of Meeting, Stalled Work May Resume on Upcoming Projects in Noida What causes depreciation of property and how to calculate it? Allottees With Unfinished Properties in Gurgaon will Feel Impact of New HUDA Policy

A Severe Lack of Bandwidth

The resources of the Noida and Greater Noida Authorities are stretched, according to senior officials from both authorities. A primary reason for this lack of bandwidth is the sum owned to the authorities amounting to 20,000 crores by realtors who have projects in the Twin Cities. Explaining how dire the circumstance are, officials from both authorities stated that in case they are unable to recover the dues from realtors, there will be nothing short of a crisis in the near future. The situation is all the more dire because both authorities have let realtors borrow funds in the form of loans from the city authorities.

Unable to Finish What's Started

Officials from both Noida Authorities have stated that they do not wish to begin projects that they know they will be unable to finish because they may run out of funds. The CEO of the authorities has stated that until more funding is available, the authority will not commence work on any new projects. How the authority will collect their outstanding dues and loans from Realestate developers in Noida is a matter of different concern

Projects On Which Work Will Continue

While it's true that Noida Authorities will not begin any large major projects, work will continue on two major projects, namely one metro link that will connect Noida with Greater Noida. The length of this Metrolink is just shy of thirty kilometers. Work will also continue on another 6.8 kilometer long link that will connect the City Center to Sector 62. The best property in Noida, in the vicinity of the metro stations along the mentioned and yet to be completed links, might yet continue unmolested its appreciation in value.

Allottees With Unfinished Properties in Gurgaon will Feel Impact of New HUDA Policy

Allottees of unfinished or semi completed properties in Gurgaon have been given an ultimatum by the Haryana Urban Development Authority. Under this ultimatum, allottees of properties that are semi built or are vacant land, have until the March of 2019 to complete fifty percent of the work required or face penalties by the HUDA. If the allottees of these 1,060 properties (who were alloted land by HUDA) fail to comply with the orders of the HUDA they will face a hefty fine when they try to gain an extension of one year's time to construct their property.

The building that is expected to stand in such plots has already been approved by the HUDA yet work on the project has either not begun or has been abandoned less than half way.

As per publicly released information, the HUDA gave this order yesterday and the order applies to areas that fall under the jurisdiction of the Estate Officer-1. Should those who own such incomplete property on HUDA plots in the region mentioned not comply with the order, they should be ready to brace for action from HUDA.

A Change in Policy

A new policy has been introduced which mandates that construction must be completed on at least fifty percent of the land that has been granted permission to bear a building by HUDA. Furthermore according to this new policy, occupation certificates for such unfinished properties must be granted by March of 2019. In case the allottees fail to comply with this new policy, they will be liable to pay an extension fee at high rates; this has been prescribed within HUDA's extension policy.

According to a Sub-Divisional Engineer with HUDA, the mandatory construction must be completed by March 2019, or approximately within 2 years, otherwise the allottees will pay a fine. The accounts and administrative departments of the HUDA both have been provided a copy of the new notice and HUDA will begin to automatically charge allottees in case the Occupancy Certificates have not been awarded to allottees by March of 2019.

The 1,060 allottees who own GurgaonReal estate in the concerned region have already been issued notices however a further 4,000 allottees have been discovered to be in violation of the policy and they too may soon receive notices from HUDA.

What Led to This Change in Policy

An amendment was made to HUDA policy in January of this year which made it compulsory to have completed at least half of the approved construction, on HUDA plots by March 2019, regardless of whether the approved construction be institutional residential, or commercial in nature.

The major reason for the introduction of this new policy is that authorities discovered that they were suffering a huge loss in tax revenues due to large number of empty HUDA plots, which, if they had a built construction on, would have paid a higher rate of tax to the authorities.

Conclusion

If allottees fail to build half the construction by March 2019, they will have to pay a hefty extension fee if they wish to retain ownership of the plot. However if allottees were allotted the land fifteen years before March 2019 and the allottees have still not built half the construction on the land by March 2019 then they will forfeit ownership of their residential property in Gurgaon and their plot as both will be reclaimed HUDA.