Tag: Real Estate

26 Oct 2020
Luxury Residential Project on Dwarka X-Way ONLY for Faujis – by Hum Fauji Initiatives

Luxury Residential Project on Dwarka X-Way ONLY for Faujis – by Hum Fauji Initiatives

What do you look for in your own House?

  • Great Location
  • Great amenities
  • Top-quality Construction
  • Great Prices
  • Own Community

Keeping this clearly in mind, we bring you a residential complex which is:-

  1. Location: On Dwarka X-Way – In Gurgaon Sectors 110A – 113, sectors closest to Delhi.
  2. Amenities: With luxury specifications and top-of-the-line amenities – what you aspire for in your own home and much better than most of the builders on Dwarka X-Way and Delhi-NCR.
  3. Quality: By one of the best builders of Luxury projects on Dwarka X-Way. Already have their projects delivered and families staying, where the superb quality of construction and amenities delivered can be seen.
  4. Prices: At hugely negotiated prices – prices arrived at after about a year of negotiations with the builders.
  5. Own Community: ONLY for armed forces officers & their families – Like AWHO and AFNHB flats.

Who is it for?

Only for Armed Forces (Indian Army, Navy, and Air Force) officers and their families (Spouse, Son or Daughter only). Nobody else. So, you get the same reasons to apply for it as you do for AWHO and AFNHB Flats, with the added advantage of competitive prices, luxury specifications, and bountiful amenities.

Due to completely fauji community, it would be an ideal place for booking on a group basis for Coursemates, Regimental groups, your NDC / HC / HDMC / DSSC / Degree / YO, and other course groups.

Attractive discounts would be given for collective bookings of 5 and more flats together.

Where is it?

We are in negotiations with Three of the top builders on Dwarka X-Way for the past One year and have almost finalised now. We cannot give out the name officially right now since, while the licences to construct have been received, RERA is still awaited – it is likely to be granted within 30 – 75 days. The project will ONLY be in Gurgaon Sectors 110A, 111, 112, or 113. There will be no deviation to this at all and we have been negotiating only with the builders who have a sufficient land parcel in any of these sectors. These sectors are next to Dwarka, Delhi, and hence very close to Delhi Cantt, Shankar Vihar, DSOI Gurgaon, and the Airport. In fact, DSOI Gurgaon is just slightly more than walking distance!

As far as Dwarka X-Way is concerned, it is the most promising area in the whole of Delhi-NCR. After years of problems, the same is now ripe for a take-off now with superb infrastructure, top-of-the line amenities, and all major planned infrastructure now ready to be delivered within a maximum of 2 years. Large number of families are already living in sectors which are much further ahead than the ones where our project is planned. To know more about Dwarka X-Way, you may see these videos and many more such videos available online:

What Construction and Specifications to Expect?

The project will have top-of-the-line specifications in a 7 Acre plot with approx 300 flats of 2 BHK, 3 BHK, and 3BHK + Servant Quarter (SQ) configuration in Phase 1, with adequate area for more flats if demand so comes in. The details (Approximate) are as below:-

  • 2BHK – Unit Type B1 – super area 1076 sq ft – carpet area 850 sqft
  • 3 BHK – Unit Type A1 – super area 1519 sq ft – carpet area 1200 sqft
  • 3 BHK + SQ – Unit Type A2 – super area 1595 sq ft – carpet area 1260 sqft

There will be two towers with 35-40 stories each.

It will be Mivan construction, adequate basement parking, very low loading (implying high carpet area to super area ratio), and all other such specifications that you would expect from any top builder providing luxury housing.

Please note that Mivan is the latest construction technology the world over which ensures a smooth finish, very low subsequent maintenance cost, and a superior quality of construction. High Carpet to Super area ratio ensures that you get more usable area inside your house, rather than wasted in common areas.

What Amenities to Expect?

As it is to be luxury housing, all such amenities that cater to a comfortable and high-end lifestyle will be there. High end fittings, tiles, paints, windows, and doors will be a norm. Laminated wooden flooring in the master bedroom, modular kitchen with chimney and hob, cupboards in bedrooms, premium quality modular switches, all-copper wiring, and high-speed elevators will also be part of the offering. VRV Airconditioning (Variable Refrigerant Volume or simply, single outdoor and multi-delivery units) of a top AC company in each house would also be provided to reduce clutter and for best air conditioning efficiency.

At the central level, a minimum of 25,000 sq ft state-of-the-art club house with swimming pool, luxury mini-theatre with seating for 30-50 people, gymnasium, billiards room, yoga room, cards room, and a party hall with a well-designed bar; Squash court, tennis court and indoor badminton court; Children outdoor and indoor play area; Utility Centre for immediate needs like ATM, grocery and medicines; Central security system with cameras and intercom; etc would be all there. In short, much more than what you would expect, and in a superior quality and finish would be there.

What prices to expect?

We expect the final price to be around Rs 7500 per sq ft. In fact, we get a capability to further negotiate better prices with the builders if we get high number of Expressions of Interest (EOI) from officers now since it will further increase our bargaining power. Please remember that these prices are at a low loading ratio, implying that you get more carpet area for the same super area, compared to almost any other builder in that area.

At the super area rate of Rs 7500 per sq ft, the approximate costs are likely to be:-

  • 2 BHK will cost Rs 81 Lakhs + GST,
  • 3 BHK Rs 1.14 Crores + GST and
  • 3 BHK + SQ will cost Rs 1.2 Crores + GST.

These prices are approximate. This price, as you will easily notice, is the very lowest in the area of any top developer dealing with this kind of luxury housing, when you consider the prime sectors 110A – 113 where we are bringing this project. Generally, the prices are in the 8500 – 10,500 per sq ft range in that area.

We are also confident of bringing the cost further down if the initial response to the Expression of Interest is good.

As an additional security assurance to you, we would be giving the payments to the builder firmly linked to speed of construction. To build in more safety into this project, the last payment of a large amount of about 40% of the total cost would be payable only at the time of possession. This is very reassuring, will push the builder for faster construction and for those who take a loan for the flats, the interest costs will be lower due to the delayed need for final loan instalment.

What is the Status now?

The land is already available with the three builders we are negotiating with. Licence to construct has been obtained. RERA is being applied for and will be received within 30-75 days, after which construction will start. We expect the construction to start by Jan-Feb 2021 and it will take Four years for the project to be ready, which means delivery by around Dec 2024.

RERA approved project further implies high security for the flat owners and timely completion. Due to the reputation of the builders chosen, tie-ups will happen with many banks for home loan if so required.

How do I go ahead?

Right now, we are taking Expressions of Interest (EoI) from the interested officers. The steps would be as follows:-

  1. Please make sure that you meet the eligibility criteria of being an armed forces officer (a serving or retired Indian Army, Navy or Air Force officer) or a family member of such an officer.
  2. Please go to the link https://forms.gle/HJTdMwerybQzXoBF8 and fill in the details expressing your interest (EoI) in the project. Please note that this step is important to fix your seniority for allotment of the flat of your choice on ‘first-come-first-served’ basis.
  3. You would be required to deposit an amount of Rs 51,000/- as your EoI amount into our bank account to indicate your seriousness for the project. Our bank account details to pay this amount are:-​
    – Account No 057105000790
    – Payable to : Hum Fauji Initiatives
    – Bank: ICICI Bank, Sector 7, Dwarka, New Delhi-110077
    – MICR Code: 110229068; IFSC Code: ICIC0000571
    Alternately, you can use this PayUMoney link to pay the amount: https://pmny.in/DIYn8P7Xc0Ey
  4. Please let us know your payment details on property@humfauji.in, or SMS or whatsapp on phone number 98108 01820 giving this information of you having paid the EoI deposit along with your name, mail ID and payment details.In case you wish to withdraw from the project any time before you have paid the booking amount, this amount of Rs 51,000/- would be refunded to you within Seven working days of your request for withdrawal is received. No interest will be paid on this EoI amount.
  5. The allotment of preferred flat(s) would be strictly on First-come-first-served basis. Seniority for this purpose will count from EoI date and time. Subsequently, when the EoI part is over, it will count from the date and time of registration.
  6. When the scheme is finally launched, you would be required to pay the booking amount (likely Jan – Feb 2021), wherein this amount of Rs 51,000/- will be adjusted as a part payment. Once the booking amount is paid and if you wish to withdraw from the project, then your refund will be as per the rules of the project which will be explained to you before the booking amount is asked for from you.
  7. Other details, like the proposed layout, sizes of the rooms, costs, and likely payment plan etc will be shared with you once you connect with us. To know more about the project and how the whole thing is going to pan out, you may ring up Brig MC Pant (retd) on phone number 98108 01820.
  8. If you wish, site visits can also be organised



These flats are being launched for the personal use of officers. We sincerely advise you not to buy them for investment purpose.

While Dwarka X-Way is the fastest growing area in Delhi-NCR and the location of this project will probably be the very best on the entire X-Way, the current real estate scenario and its future projections are not conducive to residential real estate for investment purpose in our opinion. If you still decide to go ahead against our advice and buy it for investment purpose, please take a very deliberate decision on it.

14 Oct 2013
Would REITs make investing in real estate easy for you- humfauji.in

Would REITs make investing in real estate easy for you?

(Courtesy: Personalfn.com/knowledge-center; dated 14 Oct 2013)

Demand in the real estate sector has been sagging due to economic slowdown. Since many people are deferring their property purchases; inventory level in major property markets is rising. It is often found that due to higher ticket size, many find it difficult to buy properties. On the other hand, real estate developers have been knocked down by higher cost of borrowing due to which many projects have gotten stalled. To increase the investor-base and open up another financing avenue for real estate developers, Securities and Exchange Board of India (SEBI) has been considering allowing Real Estate Investment Trusts (REITs) in India. The initial draft was launched in 2008 but was subsequently withdrawn too due to non-transparent valuation norms, dissimilar stamp duty structure across different states and the lack of uniformity in land and property pricing. Recently SEBI has revived the plan by issuing draft regulations for launching REITs in the country.

What are REITs

REITs are trusts which are patterned like mutual funds. They pool capital from investors and deploy in real estate. REITs will be established under Indian Trust Act, 1882 and will have parties such as a sponsor, manager and valuer. Both, investors as well as property developers are expected to benefit from the launch of REITs.

 What are the positives?

For the real estate sector:

  • It could help the real estate sector to raise stable funds
  • Will encourage developers to think long-term
  • Will infuse transparency to the real sector (and would be well-regulated now if the Real Estate Regulation Bill is passed in the monsoon session of the parliament)
  • Instill professionalism in property management

For the investors:

  • Can make investing in real estate accessible to those who may not have the resources or may not want to directly buy a property
  • Offers an alternative investment avenue

For the economy:

  • Attract overseas investment
  • Could help in development of capital markets
  • Could help bringing in stable long-term flows which are needed to finance country’s Current Account Deficit (CAD)

Is the time of introducing REITs appropriate?

When the draft was withdrawn in 2008, there were concerns about protecting investors’ interest due to difficulties in valuations and scope for malpractices.
The Union Cabinet has recently cleared the much awaited Real Estate (Regulation and Development) Bill which furnishes establishment of a dedicated regulator for realtors. The bill intends to protect buyers’ interest and bring transparency to the sector. Some of the key points are;

  • Developers can launch projects only after securing all clearances
  • It is mandatory on builders to have a clear mention of carpet area
  • Penalties of upto 10% of the project cost if builders found guilty of putting out misleading advertisements and even a jail for repeated misdeeds
  • Now developers can take only upto 10% amount in advance without a written agreement.
  • It is now mandatory on developers to maintain 70% of the amount collected from investors in a separate bank account for every project.
  • Buyers can get full refund with interest in case of delay in projects


Personal FN is of the view that since REITs would majorly invest in completed projects and generate regular cash flows through rents earned; investing in them is relatively safe than investing in an under construct project. Moreover, ticket size for investors would be kept substantially lower at Rs 2 lakh. Investing through REITs would give investors an opportunity to diversify. Now investors would not only get a chance to invest in real estate with less capital but would also get diversification within real estate as an asset class since a REIT would invest across projects and property markets. You may also be able avail benefit of professional management.
However, PersonalFN believes, investors should also consider possible negatives too. Unlike mutual funds, income distributed by REITs wouldn’t be tax free in the hands of investors. Furthermore, despite having in place Real Estate (Regulation and Development) Bill; there is still a scope for manipulations and malpractices. Moreover, there’s no track record of any REIT as of now in India and thus investors shouldn’t jump in right away. A good track record is a pre-requisite for you to invest in it.


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20 Jan 2013
Do You Lose Everytime that you Invest in Real Estate for the Long-term?

Do You Lose Everytime that you Invest in Real Estate for the Long-term?

Indians’ love affair with real estate is only too well known to all of us. It provides a heady cocktail of being a tangible asset having appreciation potential and some income potential as well. There is also this strong perception that you can’t lose money in real estate, if you have the “holding power”. There are so many stories in the media of home prices reaching stratospheric levels and how some wise investors made a killing by selling their houses at 10, 20, 50 and even 100 times their cost. There is enough evidence of wealth creation in property markets for any investor to continue to hanker for even more exposure to property. Almost everybody and his dog will have stories to tell you about how he or his friend (or his uncle or naani…) bought this property 10 – 15 years ago at just Rs 10 lakhs and how it is now worth easily more than 15 times the cost price. And, if I were then to try and counter the argument by saying that equity has a similar or perhaps even greater potential to build wealth over the long term, the most common objection I encounter is “Look, equity funds that I bought in 2007 are still to make me money. I am better off in real estate”.

There was a headline grabbing real estate deal in Mumbai in July 2011 – an investor sold his 3600 sq ft apartment in Samudra Mahal, Worli for Rs 33 crores – an eye popping Rs 100,000 per sq ft. This is the costliest real estate deal recorded in India till date. The seller paid only Rs 25 lakhs for this flat back in 1972 and has now cashed in a whopping Rs 33 crores from this investment in 39 years. Can equity funds give that kind of returns?

If we actually calculate, this flat that was being talked about – the costliest real estate deal in India – had actually yielded only around 13.7% per annum returns to the investor. On the other hand, there are a large number of equity funds that have comfortably beaten that return over 15 years! For example, Franklin India Bluechip Fund has given average returns of approx 24.9% per year over 18 years of its existence. When compared to Worli real estate deal, Rs 25 Lakhs notionally invested in it in 1972 would have returned (hold your breath…) approx Rs 1458 Crores!! Alternatively, you could have invested Rs 25 Lakhs in it as late as in 1990 to turn into Rs 33 Crores!! Don’t believe it? There is yet more of this: There is NOT EVEN ONE equity fund in Indian Mutual Fund industry which is more than 10 years old and has delivered returns less than 13.7% yearly. The very worst fund of this lot, Taurus Discovery Fund, has given 14.7% (that is, turning Rs 25 lakhs of 1972 into 52.6 Crores today) and the best, Reliance Growth, has given 27% (turning Rs 25 Lakhs into 2,794 Crores).

Why is it then that the perception continues about real estate being a better wealth creator for us? The crux I think lies in the way we talk about returns. In the real estate market, it is always absolute numbers that are talked about – never annual percentage returns, even though that is all that matters. That’s precisely why the Insurance Industry is able to sell its dud policies even when they give 6-7% returns – by projecting that your premium of a few thousands of rupees will get you many lakhs 15-20 years later.

In big metros, we have seen prices move up from their 1996 levels of Rs 1000 per sq ft to over Rs 10,000 per sq ft today. A flat that cost Rs 10 lakhs in 1996 is today worth Rs 1 crore. That works out to a CAGR (Compounded Annual Growth Rate) of 16.6% over a 15 year period. But, what we hear is 10 lakhs becoming 1 crore – that sounds a lot more than 16.6% CAGR. To put this in context, if the same investor had invested in a fund like HDFC Top 200 Fund in 1996 when it was launched, that Rs 10 lakhs would today be worth over Rs 2.67 crores! Suddenly, this wonderful 10 fold appreciation in property prices pales in comparison to a 26 fold gain in this equity fund over the same period. When one says that the fund delivered a 24.5% CAGR over 15 years, it sounds great to financial advisors but investors are not readily able to grasp the magnitude of the performance. Translate the same performance in layman’s language – say that Rs 10 lakhs invested in 1996 grew to Rs 2.6 crores by 2011 – and we now begin to grasp the magnitude of wealth actually created.

Actually, equity funds have many virtues which property cannot ever hope to match:

  • Liquidity : Bull or bear markets, you can always liquidate your equity funds, at an efficiently determined price. Try selling a house in an economic slowdown – the property market just freezes in a downturn.
  • Transaction costs : Stamp duty and registration costs across the country are prohibitively high in property transactions. Equity funds, with a zero entry load (and zero exit load, if kept for only 1 year), win hands down versus property on this score.
  • Taxation : You pay zero long-term capital gains tax on equity funds – property has 20% indexable tax rate.

Unfortunately, it is precisely these very virtues that are becoming villains for mutual funds. With an effective zero tax on capital gains after a 1 year holding and negligible transaction costs, investors become far more trigger happy with their equity investments than they would ever dream of becoming with their property investments.

Time to ask yourself some serious questions

The biggest disadvantage for equity funds in their competition versus property is the time frame that investors are willing to give each asset class to perform. Investors happily look at property as inter-generational assets – but equity funds rarely get anywhere close to those kinds of time frames. Investors pride themselves on the “holding power” of their property investments during downturns – but somehow that same “holding power” vanishes when they look at their equity fund portfolios. Ask yourself these questions:

  • Did you sell your property investments in 2008, at a time when you redeemed your equity funds, when both the markets were in downturn? If not, why not?
  • When property prices fell in 2008-09, were you tempted to look for bargains and snap up “good deals”? If yes, did you also feel like snapping up a good deal in the equity markets, which were at the 8000-12000 levels? If not, why not?
  • Do you keep comparing property prices in each locality of your city every month and switch in and out of houses based on which locality did the best in the last 6 months? If not, why do you feel like doing that with your equity funds?
  • When you buy a house, do you mentally allocate it to your son / daughter? What prevents you from doing that when you buy equity funds with your same hard earned money?

In conclusion

There is no doubt that the Indian investor’s love affair with property is indeed a strong one. There is no doubt about the long term wealth creation potential of property investments. There is no doubt that history is firmly on the side of property investments – in terms of showcasing the enormous wealth that this asset class has created in the past decades. All that I humbly submit is that, while all of this is true, equity funds are just as good, if not better, in terms of their wealth creation potential – over similarly long periods of time.

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