AHMADABAD: Gujarat is one of the most sought after locations for realty investment. The report of the Associated Chambers of Commerce and Industry of India proves this. Continue reading
Is property market safe for the investors to tread on?
NEW DELHI: The fall of gold prices has affected the jewelers and the gold investors. Now the next will be property market, the industry experts express their fear.
The unpredicted and unforeseen fall of gold prices has affected not only the gold jewelers but also those who had investments on gold. Rising prices of gold had wooed the investors.
If the gold prices in 2001 were around Rs.400 per gram, it has gone to Rs.3000 per gram in the beginning of 2013. It means that the gold prices have gone up by 1500 percentages within a span of 12 years. However within a week the prices fell by around Rs.1000 per gram.
In the same way the property prices have been shooting up in all the cities and villages. Along with the fall of gold prices, there can be a fall of property prices.
Though the property market denies the chances of a price correction, the possibilities are not to be overlooked. Continue reading
Affordable housing is an unquestionable concept. The buyers and their service providers learnt a lot from the sudden growth of Indian economy and the recession which followed it.
It was a miserable condition for buyers when the annual GDP growth rate hit double digits. Be it be a vehicle or a house, an essential or a non essential product, everything was quoted at a big price. But, thanks to the banks which offered every kind of loans to the investors and brought them out of their miseries. However, the recession is over now.
After this recession, the affordable housing emerged as a new as well as interesting concept which became the ray of hope for all. Due to these affordable houses only, the realty market could recover so early. Thus, it would be nowhere wrong to call ‘Affordable Housing’ a pillar of residential realty market in this scenario.
India no more lacks in the race of real estate market. Although many developers are nurturing this fact, but its high time now and they should come out of their shell to realize the boom of realty market.
Due to the rise of upper middle class in India, a sense of better lifestyle and good living has made home in the heart of society. Now days, people believe in spending and enjoying rather than saving and worrying. Easy living is the demand of the time.
People now do not compromise on their comfort level. When one comes back home after a day’s work, he just want an ambiance that helps him to unwind. And this statement has proved itself as a boom for the developers since they now provide facilities and get customers as soon as the project launches. The demand in the residential sector is increasing day by day. Also, due to globalization, demand for office spaces has also grown. Thus, it can be easily concluded that realty sector is flourishing to the fullest.
The future of Indian Realty market seems to be brighter than ever. Following are the major reasons for the growth of Indian Realty:
The shining real estate market in India has now attracted even small as well as medium scale manufacturing companies. In fact, around 6 to7 companies have even announced real estate projects either with partners or monetized their prime land assets.
Some of such companies are:
Textile company Arvind announced a residential complex across an area of 10,00,000 sq ft in Ahmedabad, in partnership with B Safal Group.
Cable Corporation of India (CCI) plans a project in the western India. The project is located in Borivali area of Mumbai and will be a project worth Rs. 1000 cr.
Usha Martin, the steel wire maker recently launched a residential project in Boisar, on the outskirts of Mumbai, and also plans to come up with more such projects in Bangalore and Pune.
Golden Tobacco and Hindustan Composite are next on the list who have not exactly launched projects but have sold their lands to Wadhwa group and Sheth Developer respectively for real estate projects.
Similarly, Reliance Group, Bombay Dyeing and Century Textiles etc are entering into this market.
Thus, conclusion can be drawn that the manufacturing companies are now hitting the realty market.
Real Estate Intelligence Services (REIS) which is a division of Jones Lang LaSalle Meghraj released a report which said that stability in the commercial real estate market of India is observed with the economic recovery of India.
According to the report, although in 2010, the landscape will be beneficial for tenents, but in 2011, influence of landlords will be higher. It implies that since the office rents are beginning to hit the ground, in the coming term, they should be proactively looking to lock in attractive leases.
Abhishek Kiran Gupta, the Associate Director JLLM said in the report that the Indian commercial realty market is about to attain stability with the well going economic recovery of India.
The realty market in India is flourishing these days. Not just the domestic real estate developers but also the investors from all across the world; especially the NRIs are attracted to this Indian real estate market. If this continues, it is then expected that very soon the realty market will overtake the other industrial sectors in terms of contribution to GDP growth.
Currently, the major constituents of the Indian housing industry are the affordable houses which target especially the low income groups and economically weaker class. In the field of medium and luxury housing, in next few years, it is expected to see a remarkable growth since this segment has huge prospects for further developments. The hiring of expat employees by the MNCs and then providing them with luxury housing benefits is one of the reasons for the development of this sector. Also, the demand for luxury housing by NRIs is acting as a catalyst in the growth of this sector in India.
RNCOS presented a report called “Indian Housing Sector Analysis” in which it gave exhaustive information and objective analysis about the growth of Indian housing industry. The current and past market performance, market structure and factors critical to the success of the Indian housing industry are also covered in this report.
Based on the relation between the past market growth and growth in base drivers, such as government support, long-term interest rates, disposable personal income, household size, contribution by housing finance industry, GDP growth, growing industrialization and competitive structure, a forecast is been made in this report about the Indian realty market.
One of the most prominent bodies of realty developers and builders, Maharashtra Chamber of Housing Industry has planned to showcase the phenomenal work of Indian builders in the field of property in the 13th India Realty Expo 2010. This expo is scheduled from 3rd to 5th June, 2010 in Dubai, at the Renaissance Hotel, Deira. This step is taken by MCHI to bring some of the NRIs in the Indian realty market.
is a member of CREDAI, Confederation of Real Estate Developers‘ Association of India. This expo will last as an opportunity to NRI investors to fully explore the offers and opportunities in front of them as far as Indian realty sector is concerned. This expo would throw light on all the fields, be it be housing, retail or commercial sector.
This ‘India Realty Expo’ will prove as a golden opportunity for the NRIs, especially in the Gulf region, to come back close to their motherland. Apart from CREDAI and MCHI, there will be 21 more builders who will participate in this expo. The expo will be held at from 5 pm to 9 pm on 3rd June whereas the timings for and June are 10 am to 1 pm and 4 pm to 9 pm. The main focus of this expo will be on the real estate sector of cities like Bangalore, Goa, Pune and Mumbai.
April 24, 2010
As per the report from JLLM, Jones Lang LaSalle Meghraj, a realty advisory firm, the senior citizens’ home is now a days the most upcoming field of realty. This fact is evident from the increasing number of projects housing stock directed at this section.
The report published by JLLM ’Senior housing sector in India: Key Trends’ gives full details of this observation. According to the report, the seniors are not seen the same way they were seen a decade ago. These days, their status is experiencing a drastic change, the reasons being change in mindset, augmented financial independence and growing cohort size. The big caliber of this segment and its unique needs and promises are offering a good vector of opportunities to the Indian realty market.
Also, as per the report, the number of seniors believing in the idea of good standard of living and the sunset years of their lives with similar-aged companions and sharing facilities in settings of security and enablement is rising rapidly. A survey was conducted on households with senior citizens from which it was inferred that more than 60% of them found concept of an elderly club or a senior citizen’s association as a viable and practical one. The old age homes are now replaced by contemporary retirement homes or resorts was one of the conclusions from the report.