With the Haryana government recently giving its nod to the transfer of floor-wise ownership rights in a single unit,small-budget buyers are a happy lot. Developers,on the other hand,express apprehensions.
The buyers are celebrating as the decision increases their options while the developers believe the step will augment the already high vacancy in their projects.
Owing to the limited number of residential plots and independent houses in the Tricity,most buyers had started moving to the periphery. Now,with the registration of individual floors in Panchkula,they are most likely to prefer staying back in the city.
When the buyers will have more options to own individual floors in Panchkula,there are less chances of them buying flats in the periphery, said a developer who has an ongoing project on the Chandigarh-Ambala highway in Zirakpur.
Real estate experts,meanwhile,believe that property prices will increase by nearly 25 per cent with the present move. An expert explains: If a 250-square yard three storey house in Panchkula costs Rs 1 crore,the floor-wise segmentation will generate Rs 50 lakh for the ground floor,Rs 40 lakh for the first and another Rs 30 lakh for the second floor. The total price therefore increases by Rs 20 lakh.
The Haryana government had recently allowed people in the state to register individual floors on a single plot in their names. Earlier,with the restriction in floor-wise registration,the General Power of Attorney (GPA) was used to transfer the floors.
The government officials state that while there will be no increase in the floor-area-ratio (FAR),those going in for floor-wise registration of the residential property will have to pay one per cent extra stamp duty.
Pertinently,the minimum size of the plot on which individual registration of floors will be allowed in an existing sector or area will be 180 square yards. The amended rules will be applicable only in the Haryana Urban Development Authority sectors,municipal areas and licenced areas of the Town and Country Planning department.
The policy is said to have its drawbacks too. It is expected that with the registration of floors,there will be an extra burden on the existing infrastructure that was not initially designed with this policy in mind.
Parking will be a major concern. Most units can accommodate two cars while the rest have to be parked on roads. The government has to create options like community parking or earmark special places for the purpose. The burden on sewage and water supply will be another concern, said R P Malhotra,president of the House Owners Welfare Association in Panchkula.
* Will increase state revenue
* More options for small-budget buyers
* Will increase unit prices by nearly 25 per cent
The negative side
* Will increase vacancy in apartments located on the periphery
* Existing infrastructure not designed to meet the new requirements