by Mr. Rohan Sharma, JLL India
Ashok Vihar, like the rest of Delhi, is a conurbation of plotted row houses and colonies. No major private
developer apartment projects are being launched here, nor are any possible in
the near future. The location is witnessing an increase in development of
independent floors on housing plots.
This is typically done by
local brokers and builders entering in to a collaboration agreement with
homeowners, who are guaranteed new houses of four storeys while the builders
get one floor to sell and retain the proceeds. Such an arrangement allows for lower
liquidity infusion by the builder, as he only incurring construction and
interest costs upfront. The concerned homeowners, in turn, do not have to pay
anything and get brand-new houses which they can self-occupy or sell
floor-wise.
In limited cases, one also
sees outright sale of such houses. In such cases, the builder becomes the sole
new owner and pays the homeowner the going market price for the land area of
the house, and then proceeds to construct the new floors and sells them.
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| Mr. Rohan Sharma, JLL India |
In Ashok Vihar, typical plot areas
are 150, 200, 300 and 400 square yards. The current land valuations are between
Rs. 4,00,000-4,50,000 per square yard. Maximum traction in terms of sales is
being seen in the 150-200 square yard plot segment. Floors in these plots
typical cost between Rs. 15,000-20,000/sq.ft. Apartment sizes are in the range
of 1100–1,500 square feet, resulting in unit costs of Rs. 2.0 crore and
upwards. Typically, the cost of the upper ground and first floor are highest
and do not vary by much, while the highest storey is more expensive as it comes
with exclusive roof rights.
Under the current rules,
stilt parking and four storeys on residential plots are allowed in Delhi,
with floor coverage reducing for the upper floors as the plot size increases.
So, independent floors are the most prevalent developments. There is healthy
demand for such floors, for both outright purchase as well as for rental
purposes. Rents for such floors are in the range of Rs. 30,000-35,000 per
month. Most of these builder floors come with standard specifications of
modular kitchen units, marble flooring and some woodwork for wardrobes and
cabinets, etc.
Most available residential units are in the configuration of 3
BHK and above and as described above, and independent builder floors are the
most available housing options
for buyers in this area. The rents vary and go up as the sizes of the
apartments increase, reaching Rs. 50,000-60,000 per month for the largest plot
sizes. The ticket size is higher for the larger plots, and hence sales traction
tend to be lower in these configurations when compared to 100 and 200 square
yard floors.
About the author
Mr. Rohan Sharma is Associate Director (Research & REIS) at JLL India
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