Monthly Archives: December 2021

MahaRERA lists 3,400 projects lapsed across the state

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The Maharashtra Real Estate Regulatory Authority (MahaRERA) listed 3,425 projects as lapsed due to late completion. According to authorities, at the beginning of October there were 3,371 projects on the list, of which 210 extended and another 200 added to the list.

Developers restricted from selling-

MahaRERA has listed projects with completion dates in 2017, 2018 and 2019 as deferred or expired. Most of these projects are located in Pune, Mumbai, Thane, and Raigad. According to the rules, the developers of these projects banned from selling and promoting projects. Until a request was submitted for an extension of the corresponding completion date, which required the consent of 51% of the buyers.

Nearly 95 projects exceeded their deadlines in 2017, 508 in 2018, 1107 in 2019 and 994 in 2020, according to the data. Many of them did not even comply with the one-year renewal period under Section 6 of the Regulation and Development Act (RERA).

Some projects removed and some extended-

In November, the developers were asked to provide the necessary documents to request an extension and continue work on projects. MahaRERA has published a list of “overdue” projects because the developers did not request an extension. Or upload the Form 4 from Architects on website after the projects were completed. The developers of 99 projects have submitted documents after a new prospectus issued last month, which outlines the legal conditions for expired projects. A total of 286 projects received for extension.

According to MahaRERA officials, up to 99 projects will be removed from the previous list (3,371) over the next two days. Others had to apply for an extension of the validity of their occupancy certificate (OC). Project names will only be removed from the expired list if developers are looking for an extension. Representatives from the welfare association noted that it was good that the authorities marked the projects as delayed. This will help apartment buyers try to implement the project through promoters.

Also read:-

CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

Difference between REITs and Direct Real Estate Investments?

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What are REITs?

REITs buy and develop real estate primarily for the purpose of using it in their investment portfolio. REITs or Real Estate Investment Trusts are companies that own and operate properties for the purpose of generating income. Unlike other real estate companies, REIT does not build real estate for resale. These are the companies that manage portfolios of high end properties and mortgages. People can participate in large real estate revenues through REITs.

What is Direct Real Estate Investment?

Direct investment in real estate means buying a particular property at a stake or the acquisition of property from a particular person. This implies a significant share in an asset, whether it is a shopping mall, an office building or an apartment. This type of business allows investors to generate income by rental investment. It even allows you to monetize the valuation of the assets you own. As the price increases over time, you get a significant return on assets.

Key difference between REITs and Direct Real Estate Investment!

Direct Real Estate Investment offers more tax incentives than REITs and also investors have more decision-making power.

– In case of REITs, investors invest their money in a diversified portfolio of commercial real estate assets. But in case of direct real estate investment for commercial offices, investors invest in a single office property only.

– Individual investors can take advantage of real estate through a REIT without the need to own or manage real estate.

– Compared to Direct Real Estate Investment, REITs are easier to buy and sell because many of them are publicly traded on exchanges.

Difference between REITs and Direct real estate in terms of returns!

There is a major difference between the returns of both investments:

– In the case of REITs the ROI will be clearly structured, realistic and risk-free. They are ideal for investors who want a stable income with minimal risk.

– During the time of inflation, property values tend to rise as property prices and rents rise, resulting in higher returns for REIT investors. Realistic ROI from REITs can be expected in the range of 7-8% per annum after adjusting fund management fees.

– REITs must distribute at least 90% of the taxable profits to shareholders, and dividends of 5% or more are common.

How do REIT investors generate income?

Like any other business REIT requires capital. The investors of REITs make money by renting, leasing or selling the assets they buy. Shareholders elect a board of directors, which is responsible for selecting investments and recruiting a team to oversee them on a daily basis. FFO, which stands for funds from transactions, is the most common way of calculating REIT income.

REITs Investors generate following types of income:

– Dividend income
– Price gains after the sale of REIT units
– REITs are a great opportunity for investors who want to diversify their portfolios outside the gold and securities markets. This is a great place to invest if you are investing in real estate for the first time and want to diversify your portfolio without unnecessary risk.

Conclusion:-

A REIT is a good option for investors who do not want to manage real estate, or for those who do not have or can not get the funds for it. REITs are also a great way for aspiring real estate investors. Individual investors can invest in income from owning commercial real estate with a REIT without buying it themselves. Direct real estate investment is good if you want more control over your money and prefer a convenient approach.

Also read:-

Builders have to disclose the status of mortgage loans for apartments

India’s real estate sector expected to see good rise in 2022: Knight Frank

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International real estate consultant Knight Frank India in a report on Thursday stated, that 2022 could be a more stable year for the pandemic-affected sector, both residential and commercial real estate sector.

Knight Frank India report-

Knight Frank India reported in its Outlook 2022 report that the housing segment could rise in price by up to 5% in 2022.

With physical offices, portfolio optimization and hybrid operations are expected to become dominant themes in the future. Driven by increasing demand from IT companies and reactivation of flexible office operators. In the housing sector, demand is expected to continue to increase with increased interest from end users, driven by impulses from the public sector and dynamics that provide incentives to builders. Warehousing segment, which avoided risk during the pandemic, will continue to grow thanks to demand from e-commerce and 3PL players.

The main findings of this report highlight the trends and dynamics of 2022 in different segments of real estate in India. In the housing segment, capital investment will grow by around 5% in 2022. Many supply and demand factors assessed over the past decade have begun to drive up house prices. Home sales expected to continue in 2022, as potential buyers’ preferences are for larger homes. Better conditions and attractive prices will keep them interested in the deal.

The growing demand for office space from the five largest IT companies, based on high employment over the past 18 months estimated at 11.67 million square meters over the next one to two years.

Pandemic disruption is declining-

Shishir Baijal, Managing Director and Chairman of Knight Frank India said, the real estate sector has shown a solid recovery despite the low demands in 2021. Segments such as residential properties are doing better than others. The disruption caused by the pandemic is gradually declining. The housing market expected to increase in the next two to three quarters. Although the fears from the new variant sufficiently contained with minimal disruption at the beginning of the new year. If we can continue to operate at this pace, the real estate sector will experience a similar recovery to reach or even overcome the pre-pandemic level. 

Also read:-

CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

10 Best areas to invest in Hyderabad | Area to buy open plot in Hyderabad

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Planning an investment? Looking for the best areas to invest in Hyderabad? Several realty analysts consider Hyderabad as the best city for plot or land investment. Its residential real estate sector is widely regarded as a low risk and high return sector due to its rapid development in education, healthcare, job opportunities, information technology, hospitality and other industries. For the past few years Hyderabad has gained popularity due to the availability of residential plots and affordable prices.

Hyderabad has a variety of residential apartments and commercial complexes but still many investors or buyers prefer to buy land from an investment perspective. Since investing in land is considered one of the profitable option in the long run. Good location, affordable price, high return in less time makes Hyderabad most preferred investment option. Over the last many years, some areas of Hyderabad have benefited from rising property prices.

Different regions offer different homes at very competitive prices. The South Hyderabad region is considered to be the most affordable option for investing in residential properties due to its land availability. Also it is less populated as it is located at greater distance from IT companies. North and Central Hyderabad are more dense and slightly more expensive due to high commercial activity.

10 Best places for plot investment in Hyderabad | Best areas to invest in Hyderabad

Buying land for investment in Hyderabad is considered as an important financial and emotional step. If you want to invest in a plot of land, you should consider the following areas.

1 Narsingi-

Narsingi is rapidly expanding with residential complexes and commercial properties. Located on the western outskirts of Hyderabad, it is situated about 5-7 kilometres south of the financial district. Narsingi is an independent area with social infrastructure such as roads, schools, hospitals, commercial, and retail premises. Rajiv Gandhi International Airport (only 26 km) can be reached by road in approximately 40 minutes.

Good connectivity and convenient location is a privilege for a potential investor. Narsingi, located in the immediate vicinity of the financial district and Gachibowli. The area has good IT infrastructure with exit routes from the ORR, this facilitates road connectivity to the airport. The outer ring road (ORR) connects the city with other parts of the city. The average cost of plots in Narsingi varies from Rs 1,500 per sq ft to Rs 12,200 per sq ft.

Check Out:- plot for sale in Narsingi

2 Chandanagar-

Chandanagar is in rapid development as a residential center and it pays off for the investment. The area has proximity to both New Mumbai Expressway and Old Mumbai Expressway. The area is on the NH Hyderabad-Mumbai road, and Lingampally MMTS station is quite close. Bus connectivity is also fast and connects the area with other localities of Hyderabad. The proximity to IT centers in HITECH City and Gachibowli makes it one of the best areas to invest in Hyderabad. The demand for this area driven not only by its indigenous people but also by people from other cities, government and software officials. The average cost of capital in Chandanagar varies from Rs 1,100 per square foot to Rs 11,900 per square foot.

Check out:- plot for sale in Chandanagar

3 Manikonda-

Manikonda proximity to existing IT centers facilitates rapid development of infrastructure. The area is located between the old Mumbai highway and the outer ring road. The old highway separates it from Madhapur and further from Gachibowli. Manikonda is well connected by public transport like regular bus services, especially along the main roads. 

Given Manikonda’s privileged location close to the main commercial areas and good transport links. Currently the property price in Manikonda is on the lower side, making it a really attractive offer for those looking for plot investment in Hyderabad. The constantly growing IT presence at Manikonda acts as a demand multiplier, which leads to significant price increases. The average cost of residential plots at Manikonda varies from Rs 1,700 per sq ft to Rs 12,100 per sq ft.

Check out:- plot for sale in Manikonda

4 Kompally

If you are planning to buy property in an area with perfect access to IT centers like HITEC City and Gachibowli, Kompally should definitely be your first choice. The area is close to popular localities in Hyderabad such as Kukatpally, HITEC City, Gachibowli, and other localities through Outer Ring Road (ORR). 

Located on NH 7 and very close to ORR, the suburb of Kompally connected to all parts of the city. Kompally’s ability to connect to ORR improves the connectivity to Gachibowli and Rajiv Gandhi International Airport in Shamshabad. The accessibility of the area makes it an attractive option for both real estate investors and home buyers. The average cost of plots in Kompally varies from Rs 2,200 per sq ft to Rs 10,500 per sq ft.

Check out:- plot for sale in Kompally

5 Shadnagar

Although Shadnagar is about 49 km from Hyderabad, it offers connectivity to other Hyderabad localities via the Outer Ring Road (ORR). In addition to ORR, Shadnagar Railway Station and Rajiv Gandhi International Airport can be reached directly from Bangalore-Hyderabad Highway. Easy connectivity and growing infrastructure has triggered an increase in demand in the city, leading to an exponential increase in property values. The proximity to industrial centers like Kotur, Kondurg, and Balanagar makes Shadnagar one of the best areas to invest in Hyderabad. So, investing here can give you an attractive return on investment. The average cost of plots in Shadnagar varies from Rs 1,300 per sq ft to Rs 12,500 per sq ft.

Check out:- plot for sale in Shadnagar

6 Adibatla

Adibatla has witnessed many developments by technology companies that attract working professionals from all cities. The area has wide roads, close proximity to Rajiv Gandhi International Airport, just 12.1 km away and central railway station is just 20 km away. Wide roads, TSRTC bus service, and proximity to the airport makes Adibatla real estate beneficial for residents, as they can easily reach their destination.

Residential plots in Adibatla have 24/7 Manjeera water facilities. Therefore it has always been considered a reliable investing option in Hyderabad as it gives a good return on investment. Adibatla may be the best places for plot investment in Hyderabad, but one has to wait for sometime. The average cost of plots in Adibatla varies from Rs 1,400 per sq ft to Rs 14,500 per sq ft.

Check out:- plot for sale in Adibatla

7 Ghatkesar-

Ghatkesar is located about 60 km east of Hyderabad, along the Hyderabad-Warangal highway. Several large MNCs such as TATA, Reliance are planning large investments in and around this area. Thus, land prices have skyrocketed in Ghatkesar ultimately attracting many investors. The residential plot in Ghatkesar is also close to the Warangal-Hyderabad National Highway, which has everything you need for your daily needs. Also, the locality began to attract residential areas located in a quiet and ecologically clean environment. As the area is still expanding, open plots are a good option. The average cost of plots in Ghatkesar varies from Rs 1,350 per sq ft to Rs 9,720 per sq ft.

Check out:- plot for sale in Ghatkesar

8 Shankarpally-

Shankarpally has robust infrastructure and well connected to other parts of Hyderabad and also not far from the IT corridor. Greenery, business institutions and reduced traffic have all helped attract investors to buy open land in this suburb of Hyderabad. Very close to Cyberabad, this place is very popular with IT professionals. The proposed 4-lane highway, combined with a 100-feet road, will bring Cyberabad closer to Shankarpally. Hence, making it an ideal and one of the best areas to invest in Hyderabad. The average cost of plots in Shankarpally varies from Rs 1,150 per sq ft to Rs 16,000 per sq ft.

Check out:- plot for sale in Shankarpally

9- Shadnagar-

Shadnagar is becoming a center for large commercial and residential property segments. It is also connected to the Hyderabad-Bangalore 200 wide and 6-lane bypass. Shadnagar is located in a beautiful area close to the regional ring road which is only 5-10 minutes away. Thanks to the convenient transport links to the main road, Shadnagar residents can easily reach the bus and train stations in just 5-10 minutes. With the recent rise in IT sectors, Hyderabad has grown into a major international hub with one municipality, Shadnagar, located in the RangaReddy area, where a major revolution took place. The average cost of plots in Shadnagar varies from Rs 795 per sq ft to Rs 11,690 per sq ft.

Check out:- plot for sale in Shadnagar

10 SRISAILAM HIGHWAY-

Srisailam Highway has experienced high demand for plots and prices have risen over the years. Many reputable builders show interest in the construction of new facilities. Major industrial and electronics projects planned around Srisailam Highway. Multinational companies like TCS, TATA groups, Wipro play a crucial role in the development. Thus making it one of best areas to invest in Hyderabad.

The city offers good connectivity with the major Hyderabad localities via internal and external ring roads. It also has good public transport facilities, regular buses in the region and the airport and railway station are just a few kilometres away. The planned development of Pharma City along the route is the main growth driver. At present, the roads in the region may not be good. However, with the increasing population, the authorities are planning to build more roads. The average cost of plots in Srisailam Highway varies from Rs 750 per sq ft to Rs 9,421 per sq ft.

Check out:- plot for sale in Srisailam Highway

Conclusion- 

So, these are some of the best areas for land/plot investment in Hyderabad. However, before investing in a residential plot, make sure that the company is HMDA approved and also check the RERA registration number. RERA acts as a shield for the property buyer. The government only recommends buying HMDA- and RERA-approved properties. You can visit HMDA and RERA’s websites in order to check whether the plot is approved by the authorities or not.

Also read:-

CREDAI: Property prices may increase by 10-15% in future!

Investing in Gachibowli, Hyderabad