Buying an independent floor property in NCR? A checklist

Independent floors in the National Capital Region, have witnessed good growth, owing to the presence of a stable secondary market and buyers’ preference for space along with location. We examine what buyers should be aware of, before investing in this type of property

In 2006, the real estate market in the National Capital Region (NCR), was witnessing the growth of a number of property segments. Sushant Lok, a newly-developed region of Gurgaon, was emerging as a real estate destination. A three-bedroom independent floor, built on approximately 200 sq metres, was being sold for Rs 40 lakhs. A decade later, the same configuration of unit was priced at approximately Rs 80 lakhs – a 100% jump in rates. As real estate in the NCR grew, so did several categories of housing, with many regions witnessing more than a 100% jump. Of all the categories/configuration of properties, independent floors have been particularly popular in the region.

 

What kind of independent floor homes are on offer in NCR?

The NCR has an abundant supply of independent floor options in the secondary, as well as the redevelopment market, while the number in primary projects is few. On offer are one-bedroom apartment floors, to as high as four to five-bedroom independent floors. The size usually ranges from 500 sq ft to as high as 3,500 sq ft. In some exceptional cases, floors are built over a size of 5,000 sq ft also.

Like any other property, the price depends on the location, the surrounding infrastructure and the amenities. It is mostly the small builders that are operational in the segment. Despite this, options of independent floors remain high. While established areas have abundant supply, satellite cities around Delhi have also seen many such developments.

Jaskirat Singh, a Delhi-based builder and property consultant, explains that “The primary reason for the growth of this segment, is the availability of redevelopment projects and land from owners. Secondly, there is some preference for bigger spaces and low-rise projects, in comparison to high-rise projects.”

 

Regions in the NCR that offer independent floor properties

Within Delhi   Satellite cities  
West Delhi Janakpuri, Vikas Puri, Sectors of Dwarka Ghaziabad Indirapuram, Vaishali, Vasundhara
North Delhi Pitampura, Prashant Vihar, Rohini Noida Sector 45, 70, 71, 72, 73 and 121
East Delhi Patparganj, Geeta Colony Gurgaon Palam Vihar, Sushant Lok, Old Gurgaon sectors, Sector 67, DLF Phase 1, DLF Phase 2, Sohna
South Delhi New Friends Colony

The above table is indicative

 

Advantages of independent floors

Low rise buildings: Most often, builder floors are built by the developer, after an agreement with the land owner. Due to the floor area ratio (FAR), these are built in a low-rise manner. Hence, it is ideal for those who prefer to live in a low-rise complex, instead of a high-rise, group housing project.

Area on offer: Independent floors are often bigger, in comparison to an apartment unit. This is also because of the low-rise nature of such constructions and the FAR computations.

“Nowadays, builders mostly provide stilt parking and build the floors above the parking. Using the entire FAR, means bigger units,” says Manish Gupta, a property broker based out of south Delhi.

 

Disadvantages of builder floors

Price and associated cost of infrastructure: The opulence, the cost of land and the size associated with independent floors, may affect the pricing of the unit and escalate the cost significantly, Gupta points out.

Moreover, owners of individual floors, who are not more than 2-4 in number, share the cost of maintenance and facilities within themselves. In comparison to a group housing project, where maintenance and other costs are divided among many residents, the cost is divided among a few, in case of builder floors. Thus, the individual liability can be huge.

Amenities: Independent floors also have fewer or no amenities, when compared to a group housing project, which may have a club house, a garden or recreational area and other common spaces. In addition to the above, it is essential to have a synergy between the owners of the independent floors, for day-to-day coordination for parking, lift services, fire-fighting equipment and its maintenance, use of common areas, etc. In a group housing, these are often maintained by a facilities management firm.

 

Checklist for buyers of independent floors

If you are a prospective buyer of an independent floor, be prepared to incur the extra cost towards maintenance of the facilities and the common areas. In case you have a bigger family, buying a builder floor may suit you. However, while signing the deal, look at the provisions in the sale deed. The clauses mentioned, should clearly identify the scope of the facilities, common spaces and the role of the residents. In the absence of clear guidelines, there are chances of disputes among floor owners.

Buyers should also be careful, while buying a floor in an unorganised area. Always check if the individual floor can be registered floor-wise.

 

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