Archive | September 2013

We Told You So: Realty Market will bounce back (Dwarka Expressway cleared from legal tangles)

We have been maintaining since beginning that real estate market is far away from seeing the bottom.  Poor health of economy, weakening rupee against dollar, policy paralysis at centre etc. exists at its own place, but pure arithmatics is in favour of real estate market. Haryana Urban Development Authority(HUDA)  via public notice dated 29th September 2013, published in Times of India, other newspapers and its website, has cleared the legal tangles of settlement of claims of oustees around Dwarka Expressway in Gurgaon. This decision of HUDA is going to give right amount of push to real estate market of Gurgaon and New Gurgaon. Details are given in following link


In our earlier blogs, and we had maintained that real estate prices may not see the heavy correction, if anybody is looking for it. You need to do your own calculation of profit and loss and make the decision. Anyways, if anyone is planning to buy property for his own residence purpose, then waiting too long for right price will be a wrong decision, because that right time may never come.

So, what you are waiting for; Plan and execute your real estate purchase activity.



Planning to buy Real Estate: 3 Points You Should Take into Consideration

This blog first appeared on and has been written by Mukul Bhartiya. He provides inbound marketing consultancy to Ethical Consulting Pvt. Ltd.(

Around two week back, I had written in one of my blog , I had written that if you are waiting for prices of real estate to touch the rock bottom, then you may never get to see that. There is no defined limit of human expectation but one has to define it. If you keep waiting and waiting for the best moment to make any decision, then it may never come and that goes with buying decision of real estate as well. My earlier blog was prompted by full page report in Times of India about price correction and fall in real estate prices across the country due to poor health of Indian economy and falling rupee against dollar.


Today, Times of India came out with another piece of news that cement prices are expected to rise by 30% and it will impact the prices of real estate and make it costlier (Link:


So, what impression general public should have about the prices of real estate sector is a big question. Should they believe the report published fifteen days back or the report published today since both the reports are based on facts and not the fabricated story.

Again as a novice, I am in no position to say what should or shouldn’t anybody do under these circumstances, but I am presenting my point of view.

1)      Identify yourself: Are you a home buyer or real estate investor; identify yourself. Your identity will impact your buying decision a lot. If you are planning to buy a house to move out of rented accommodation and stay in your own house, then you may not look for the opportunity cost of money you are putting in to buy it. But if you are an investor, then you may need to read and act accordingly. In the case of buying home for your living purpose, define your budget, source of income, payment capacity, locality, area, amenities you can’t live without and then go for purchase.   

2)      Read, but don’t get lost in data: Data is very important to make a decision but one should not get lost in data. An acquaintance of mine had a budget of Rs.18 lakh to buy his dream house and he was staying in Delhi. You can very well understand that with this kind of money, you can’t buy a shanty in any decent locality of Delhi, leave alone the topic of buying the house. Had he read and relied upon the news articles on correction and increase of real estate prices, he would have been waiting to buy his home. So, instead of reading newspapers and data published into it, he choosed locality, area which can be sufficient for his family, amenities without and with he want to live and made the purchase within his budget; even if it meant moving bit outside Delhi.

Point I am trying to drive here is that every situation is unique and it needs solution according to its own requirement. If you are a budget buyer, then how come price correction of villas is going to impact your budget and subsequent buying decision.

3)      Limit your expectation: During my association with one of the commodity futures browse of the country, I have seen people speculating and losing huge amount of money. One milk vendor from Patna was told by somebody that prices of gold futures on Indian commodity browse depends on its prices at NYMEX and it is in New York. From that day, he started making New York rise and fall with his every buying decision. Luck favoured him for sometime but he exited the market in next six month after selling all his futures contract and cattle head.

If you are an investor, limit your expectation in terms of money you want to earn. Please understand that windfall can happen only through lottery and may be only once or never in one lifetime. A legitimate business can give you only legitimate return, which will sufficient to beat the inflation and interest rate of your investment, depending upon your business strategy.   This logic applies with investment in real estate sector as well.

I would like to again reiterate the fact that I am not a financial expert, but my professional experience has taught me few things which I am sharing with you. I hope it helps you to take decision in right direction.

ELAN Mercado, Sector-80, Bang on NH-8

ELAN Mercado, Sector-80, Bang on NH-8

ELAN is offering one of the finest living experiences in the city and a high street retail project with Serviced Apartments strategically located on NH 8. The project is located in the vicinity of Luxury Residential Projects like Raheja Revanta, Unitech Karma Lakelands, Godrej Frontier, DLF Primus, Bestech Grand Spa and more which gives an advantage to the project.

ELAN is proposing to come up with projects that include luxury residential project on Golf Course Extension Road, Gurgaon.


Location Advantage 


• 25 Minutes drive from airport

• 15 Min from IFFCO chowk & 2 Min drive away from Gurgaon Manesar toll

• 2 Min drive away from Mc Donald’s

• Direct access from NH-8, 75 meter. Wide service road as well as 24 meter wide sector road

• Near to Dwarka Expressway.

• Near to up-coming ISBT & Metro Depot.




•18ft. clear Double Height Shops

• Total Site area 6 Acres

• Physical Space-You can use space as per our own choice.

• 3 Acres as Green Area out of 6 Acres, First time in any Commercial Project

• Low maintenance shop.

• Anchor store & fine dining restaurants.

• Huge atrium, Minimum 6 meter. Wide corridor.

• Serene Water bodies, central fountain.

• Multi level car parking, ample width staircases, open air escalators, elevators and more


SPECIFICATION:  Serviced Apartment


• Air – Conditioned bedrooms and living rooms.

• Kitchens fully equipped with gas cooking facility, pots and pans, cutlery, crockery and glassware and Dishwasher

• Microwave and refrigerator, Daily cleaning Services, Washing Machine

• Telephone connection, LCD TV with cable connection.

• 24-hour security services, Power back-up.

• R.O. Water purification systems with Geysers for hot water in all bathrooms.

• Personal safe deposit box, Broadband internet access.

• Bed & Sofa Sets, Fully furnished including Chimney.

Service Apartments: Diversification in Your Real Estate Portfolio

India has seen sharp surge in business travel over the last few years thereby becoming more integrated with the global economy. According to Reuters report, Indian companies spent USD 22.1 Billion in 2011 and 2012 saw a growth of 5.8% above this figure. According to VISA sponsored GTBI outlook, Global spending on business travel is to touch USD 1.12 Trillion. Business Executives from India and abroad frequently travel to business hubs and have to stay there for short or long periods depending upon their nature of work.

Staying at hotels for such long periods is costly. Serviced apartments offer an alternative and are much cost competitive. For house owners, they serve as an alternative to giving their premises on rent.


A serviced apartment is a furnished accommodation (it can include, ACs, TVs, Couch, Beds and all Luxury fittings)  with a small kitchnette and rooms are always more spacious than in a hotel with a separate sitting area for guests. These days they come fitted with all modern communication facilities such as telephone, fax and an Internet connection. Some also offer conference rooms, besides housekeeping staff and a concierge service.

The concept of serviced apartments arrived in India in 2003-04. Starting from Mumbai, Bangalore and Delhi, serviced apartments have extended their presence to smaller cities, driven by commercial activities. They have become quite imperative for all business travelers and are a tool of travel cost optimization for companies as well.

The main client base is the corporate sector. The demand is primarily driven by executives of multinational companies (MNCs) and expatriates who come to India on deputation for periods ranging from weeks to months. There is a huge demand for high-end serviced apartments in the National Capital Region (NCR), especially Gurgaon, where lots of developers have launched their projects in recent past, due to the presence of a large number of MNCs.

Globalisation and continuous play of economic activity is resulting in an increasing number of expatriates coming to India for work. As the duration of their stay is assignment-based, it makes lot of sense to take a serviced apartment on rent rather than staying in a hotel. These residences are owned and managed by the builder or some service providers like Keys or Hayaat and are usually sold to individuals.

Top serviced apartment brands are operated mainly by mainstream hotel chains which want to lower operating costs and reduce the staff/guest ratio. A number of international brands have developed serviced apartments with local developers in Delhi, Mumbai and Bangalore, catering largely to the corporate sector.

Leading hotel chains such as Hotel Leela Venture, Grand Hyatt and Marriott International and KEYS run several serviced apartments in the country. All major developers are have lined up Service Apartments for development  to cash in on the opportunity offered by the demand-supply gap.


Athough mainstream hotel companies are major players in the business, several developers are offering these apartments to individual buyers. Some of these are targeted at the ultra rich who want to own accommodations in different locations without worrying about their maintenance.

Several small- to mid-size builders are marketing serviced apartments as an investment opportunity with Assured Returns in the range of 9-14% per annum. At present, investment in residential properties is more for capital appreciation than rental income. Annual yield via rental income from a residential property is generally 3-4% a year while capital appreciation is 10-15%.

The concept of serviced apartments arrived in India in 2003-04. Central Park is constructing a serviced apartment complex in Gurgaon, a suburb of Delhi. The company plans to build studio and 1 BHK (bedroom, hall, kitchen) apartments, both with and without a study room. It will also build space for retail outlets, fitness centres and multi-cuisine restaurants. ELAN Ltd is currently offering similar kind of Service Apartments “ELAN MERCADO” in Sec-80 of Gurgaon with Assured Return of 11% PA for a period of 4 years hence.

One of emerging hotbed for Service Apartments is around NOIDA and adjoining areas such as Indirapuram where Victory Infra is coming with its much coveted project “Indirapuram Habitat Centre.” Which offers 12% Assured Return and a prospect for huge capital appreciation. More Delhi-based developers plan to build serviced residences for sale to individuals. Several projects are on the drawing board for other locations as well.

Like any property investment, location is important in this case too. Proximity to business centres and good connectivity will lead to higher rental income and capital appreciation. As the quality of service also decides the rental yield, it is important that the facility is managed by a reputed service provider.


Serviced apartments can become a popular option for generating higher rental income from value-added services when professional property management companies start offering services and finding guests.

As India’s economy expands, the demand for serviced apartments will increase along with the floating population. These apartments can also become a preferred choice for those seeking a luxurious lifestyle. With demand rising, more developers will start offering facility management services, either directly or in collaboration with hospitality firms.

If you want to invest in real estate, it may be a good idea to diversify your exposure to serviced apartments for a higher annuity income than what residential apartments can give. Don’t forget to undertake a due diligence of the project before sealing the deal.

This blog has been written by Nitin Kumar, who is Company Secretary by educational qualification and promoter member of Ethical Consulting ( He can be reached at following addresses:

5 Tips of Financial Planning from a Novice

This blog first appeared on and has been written by Mukul Bhartiya, who provide inbound marketing consultancy to Ethical Consulting ( This view is also subscribed by Mr. Nitin Kumar, promoter member of Ethical Consulting( He can be reached at, and


As a young boy, I used to hear my father telling me and my elder brothers that if we study hard and better, we will sign letters in future and if we don’t, then we will have to write those letters. This advice had a meaning hidden in it. In government organizations, a letter meant to be sent to other organization or other department actually gets initiated and written by the clerk of that department and boss reviews and suggests modification before signing it. So, the message from my father to us was study hard and better to become a boss than a clerk; though his intention was never to demean any designation and he himself started his career as Assistant with Life Insurance Corporation of India. My father’s advice holds good in financial planning as well. Most of the young boys and girls fritter away the money they earn during early days of their professional career and I am also one among them. I won’t get into the details of what I did but I definitely frittered away better part of resources I generated in my early professional days. My professional and entrepreneurship journey has taught me some financial planning lessons, which I am sharing here:

1)      Choose SIP: Systematic Investment Plan not necessarily means investing in mutual fund or stock market. You should choose safer instruments like PPF with banks or post office, which gives better interest rates than other deposit options. Your first objective should be safe and guaranteed return of your investment than anything else.

2)      Buy Mediclaim: If you are healthy, everything around you will be healthy. But you never know when fluctuation of weather and other things getter better of you and you need sudden need of money to take care of your medical expenses. So, buy a Mediclaim; value of policy may depend upon your requirement.

3)      Buy Term Insurance Plan: We live in a society where there is no health and physical casualty support from government. Every individual works hard, take great care, effort and pain in raising their children with a hope that their children will take care of them when they will grow old; I won’t get into the debate whether it happens so in the society or not. So, for an individual, there are two families always dependent on him or her; their own family (wife and children) and their parents. So to avoid any distress in the case of your non-presence and support your family and provide them the life they are enjoying in your presence, you must buy a term insurance plan. This is one of the best uses you can of your money.

4)      Buy Home: Even a smaller one, but buy one home at the earliest. Your salary increases as you grow in your career and so does your expenditure at every possible head. So, even at the peak of your career, you will feel that you were better off living on your father’s pocket money. Your income suddenly drops to less than 50% as pension, if you are a government employee and to zero if you are working in the private sector. One of the major challenges you face after retirement is your accommodation, whose cost definitely increase year after year. If you are living in metros like Mumbai, Delhi, Bangalore etc., rentals you pay for your accommodation increases ten percent every eleven month. So, the same accommodation may cost you just double after just seven years. So, what you will pay after thirty years you can very well imagine. If your cost of rental keeps increasing 10% every year, you will end up paying 1800% of what you paid in the first year. Now imagine another situation, where your earning decreases to 50% and you accommodation cost increases by 1800%, then what will be your economic condition then. So, buy a home in the start of your professional career.

5)      Pension Plan: You need money after retirement to carry out your daily expenses for which you won’t be earning then and you need to save for that. Pension plan gives you that luxury of spend when you are not earning.  

All five points mentioned above gives you benefit of tax rebate as well. After money put in above points, you can put your money where rule of probability works; equity market, mutual funds etc.

This is not the advice from a financial expert, but a person who has learned his lessons during twelve years of his professional and entrepreneurial journey. You can agree or not with whatever I have written and above points are also not in order, you can prioritize it the way you want, if you choose to follow it. 

Invest in NOIDA Expressway : Victory Ace – Sector 143

Dear Sir, 

Greetings from Ethical !

Please find attached the all details of unbeatable attractive option.

Victory Ace – Sector 143,Noida Expressway

Air Conditioned fully furnished 3 BHK Apartments at Noida Expressway at Rs. 60,00,000* only.

  • 3/4 BHK Apartments in sizes 1475/1495/1695/1895/2295 Sq. Ft.
  • All inclusive Price in CLP/Flexi/DP Plan 
         FREE OF COST with Apartments (Included in Price)
  • Air-Conditioner in all rooms
  • Light and Fans in all rooms 
  • Modular Kitchen
  • Built in Hob and Chimney
  • Power backup (1 kva)
  • Fridge in Kitchen
  • Car Parking
  • FFC (Fire Fighting Charges)
  • EEC (External Electrification Charges)
  • Club Membership
Only Additional Charges (Payable at the time of Possession) : IFMS Rs. 25 and Lease Rent Rs. 90. 
Complete Price in CLP/Flexi/DP Rs. 4500/4300/4100 at 10th floor 
Floor PLC Rs. 20/Floor downwards ( for example Rs. 100 at 5th floor in CLP)
Upper floor discount : Rs. 15/floor above 10th floor (for Example Rs. 4350 at 20th floor in CLP)
PLC:Park/Road/Corner facing Rs. 75 
Contact :

Atul Kumar Singh


3 Rules for Investing Real Estate Sector in Slowdown

This blog first appeared on and has been written by Mukul Bhartiya, who provides inbound marketing consultancy to Ethical Consulting(


Times of India, Gurgaon edition, devoted complete one page today to real estate scenario of the country.  Indian economy as a whole has been witnessing the slowdown and it is also reflecting in real estate sector, whose housing sub-sector contributes 5-6% of national GDP. Deflating GDP, high inflation, high interest rates have made the things tougher for the sector where unit acquisition cost is very high and prices have started to tumble. According to NHBR (National Housing Bank’s Residex) reports, prices across 22 key cities including Delhi-NCR, Bangalore, Mumbai, Chennai and Pune.


I am not an expert of real estate sector, but have got the opportunity to interact with people working in this industry and got to understand their opinion on this situation. They also feel that market situation is definitely sluggish and there are very few buyers in the market right now, but there are the ways to take benefit of this situation as well. On the basis of my own understanding of the financial as well as real estate market, I am sharing my opinion here, which should not be taken as advisory but a simple and plain individual opinion.

1)      Prices are dropping, but don’t panic: Prices of real estate in 22 key cities has seen a decline in last quarter and if reports have to be believed, high inventory with the builders may force them to cut the prices to free the working capital. So, it may have collateral impact on present market scenario. If somebody has put money in buying property for investment purpose, then he or she may see a sudden devaluation of the asset, but they should not exit the market in panic. Fact remains intact that India needs huge supply of affordable housing and as economic and market sentiment improves, prices of real estate will again pick up. Panic sale may result into huge loss. Characteristics of real estate market are completely different from equity market, and it is governed more by demand and supply than anything else. If you stay invested for some time, you will definitely reap reward for your patience.

2)      Prices are dropping, but don’t wait for prices to touch the rock bottom: There is no point called rock bottom and when prices reach to the level, where either it is touching production cost or goes little below that, you should make a decision to buy. Excessive inclination to earn huge return always results in huge loss. It reminds me of one of the recent story of one of my acquaintance, who due to financial crunch placed some gold ornaments for sale. He approached a local jewellery shop; from where, he used to buy ornaments on every occasion. But to his dismay, his known shopkeeper turned out to a profiteer and was ready to pay only 50% of expected realization. This huge drop in expected value made my acquaintance to rethink his decision. He ultimately dropped the decision to sale his ornaments and made alternate arrangement of funds. A story, which is not simple and can’t be explained in simple words to audience, can’t succeed and if it succeeds, it is called fluke and does not happen all the time. So, don’t wait the prices to touch the rock bottom. The moment you find any property which fits your budget; you should go and buy it.

3)      Expect profit, not windfall: Every legitimate business transaction gives legitimate return; huge windfall of cash can happen only when you buy lottery and you know that winning a lottery is more a stroke of luck than any mathematical calculation. This is also the case with investment in real estate sector. Land owners in present developed cities like Gurgaon, Bengaluru, Pune, Hyderabad etc., who got good value of their land because of unprecedented development took place in the country after liberalization of economy after 1991. They were holding this property for generations and these kind of realization of value never happened twice in the same city. So, if you are carrying this kind of notion, then you will keep waiting for ages.