DELHI-NCR: Though Vasundhara Enclave Delhi has been expected to become one of the hot residential locations, it still remains as an unpopular residential destination. Property prices are remaining more or less stable. 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
Gurgaon is one of the top realty investment destinations in the NCR.
GURGAON: There are many hot realty destinations in Delhi-NCR. Noida and Greater Noida, Gurgaon, Ghaziabad, Faridabad, etc. are some of the most popular property destinations in the NCR. However the most popular one among all these hot destinations is Gurgaon.
A recent report by Bank of America Merrill Lynch report stated that home sales in Gurgaon have fallen in the first quarter of 2013. It adds that home sales have picked up across the subcontinent.
Home sales picked up because builders launched new projects in lucrative prices. Discounts were offered. The situation was all the more boosted by the expected rate cut on home loans.
Though home sales in Gurgaon did not pick up, the property prices are not affected. The lower demand for housing units has, in fact, no effect on the home prices. Prices rose during the period by 4 to 5%. Continue reading
Maria Sharapova is one of the ambassadors of a branded homes project.
BANGALORE: Owning a home worth Rs.10 to Rs.25 Cr is nothing impossible for any HNIs or top class people. Those who have enough to spend on homes are now demanding branded homes.
Yes, the demand for branded homes is increasing in India. This is why the builders are running after international brands. Some of the developers have successfully tied up with some international brands.
The sluggish real estate market and fall of home sales prompted the Indian developers to seek some other ways to woo the buyers. They find it best to introduce some international figures to promote their projects.
Homestead developers tied up with Maria Sharapova and Michael Schumacher. Both the tennis queen and the F1 legend will endorse one each project of Homestead.
Both Maria Sharapova Tower and Michael Schumacher Tower are sports oriented projects. Both these Homestead projects are located in Gurgaon.
It means that the concept of luxury has changed over the times. If earlier it was all related to some amenities and facilities, it is now no more related to amenities and facilities. Continue reading
Home rentals will rise in top cities due to the shortage of supply.
BANGALORE: In all the top cities of India it is impossible for any middle income class person to own a home. The main reason is higher property prices. Yet, the increasing demand and shortage of supply, etc. too play their roles. Adding all together the home rentals in cities are expected to rise sharply.
Rental homes remain the possible option for a majority of residents who have migrated from other rural areas or tier II cities to top cities. Higher flow of population causes more demand for rented homes.
However there is a mismatch between the property price hike and the hike of home rentals. While property prices have shot up many doubles, the rise of home rentals was down by three to five percent down. (Compared only in proportion to the property price hike) Continue reading
Well connected residential plots offer good returns.
DELHI: When you see an area is growing and the appreciation is improving, surely you can choose residential plots in the area as options of investment. Comparatively the land prices will be lower in remote areas.
For instance if the land prices in the prime location is Rs.10000 per sq. ft., it will be Rs.200 per sq. ft. in the remote areas.
However the nearest hub must be reachable within an hour. Lesser the travelling hours to the city, the higher the appreciation you will get.
Connectivity and infrastructure developments are also to be noted. If the connectivity is poor or the infrastructure is weak, your investment may not bring the desired result.
Closeness to the railway station, metro station, the nearby bus stop/stand, etc. too are to be considered. They also play their roles in determining the prices. Continue reading
Office space absorption in suburbs grows.
Jones Lang LaSalle’s recent survey has reported that in the suburbs the office space absorption will be more this year. The growth of absorption is expected to be by 68%.
In 2012, the office space absorption grew by 60%. This rate is expected to be outperformed. The JLL survey has stated that the companies which plan of expansion will be more concentrating on the suburbs. This will boost office space absorption in the suburbs.
The existing commercial centers are losing its prominence. This will be more visible in the coming five years during which the companies will expand to the suburbs. The expansion is believed to take place within next four to five years.
The survey stated that suburban locations will determine the performance of office market. The companies aim to reduce their cost by shifting to suburban locations. Moreover they will be able to enjoy better facilities and amenities in these areas, however at lower costs. Continue reading
Pallavaram in Chennai booms due to its close proximity to the IT hubs.
CHENNAI: Pallavaram in Chennai is a place of historical importance. The area is more connected with Pallava dynasty. However that is not what concerns the home buyers of the area. They are worried over the surge in property prices.
Due to many reasons, Pallavaram is one of the most popular residential destinations in Chennai. The area is just 17km away from Chennai city. Moreover it is well-connected to the Thoraipakkam and Shollinganallur, two IT hubs.
Due to its close proximity to these IT corridors, the demand for housing units has increased. There is a hike in property prices in equal proportion to the demand.
Living in Pallavaram means living away from the hustles and bustles of the city. The area is 7-10 km away from the IT hubs. And so it is easier for those IT professionals to stay here and work. Continue reading
Gurgaon now demands more mid luxury houses
The growth of Gurgaon as a synonymous name for luxury housing segment was very fast. However the city is now witnesses more demand for mid-segment luxury apartments and residential properties.
Gurgaon was one of the top cities which have seen large number of launches in the top end luxury housing segment. Despite of the higher number of ultra-luxury launches, the demand was still more. The top earners for whom luxury is a way of living, these properties are nothing but what secures their happiness in life.
However, now the city is witnessing an altered demand. Gurgaon now is more demanded for mid-segment luxury apartments. Seeing this, the builders are also coming up with projects in the segment.
In fact the sky reaching property prices are said to be one of the main reasons behind the altered demand. With property prices rocketing in the city, top end properties are not so highly demanded now. Continue reading
All expected reforms also stood away from realty sector.
The budget 2013 was expected to boost realty sector in many ways. Many reforms like real estate regulatory bill, infrastructure status at least to the affordable housing sector, etc. were the main reforms which realty sector expected from the budget 2013.
Leading realty players to greater despair and mischief, none of these reforms were included in the budget.
The main focus was on the lower and middle income segment people and affordable housing segments. On the other side the budget did not forget to levy heavy burden on the shoulders of the top earners.
The affordable housing segment may be boosted as the budget includes some sort of boosts to the sector. However the budget is expected to affect the luxury housing segment inversely. After the budget, the prices for luxury houses are expected to rise sharply. Continue reading
luxury housing segment will be costlier now with the revised deduction rate.
Was the Budget 2013 really a tolerable one? Though many of the experts have expressed that the budget 2013-14 was a moderate one, looking at the fate of luxury housing segment they may rewrite or overwrite on what they have said or written earlier. Here let us see how the budget will have an impact on the real estate sector as a whole and particularly on the luxury housing segment.
It is true that the real estate sector as a whole has received a slight help from the budget. Precisely saying only the affordable housing segment received a boost from the budget. On the other end, the budget 2013 has slapped on the top earners by imposing additional charges on them.
Luxury homes will be more expensive for the buyers as the budget reduced the rate of reduction on homes and flats from 75% to 70%. The revised deduction will be applicable to all homes and flats with over 2000 sq. ft. Continue reading
Invest in suburbs for longer periods, to gain better returns.
The growing demand for housing units has asked the real estate developers to develop more housing units outside the metro cities. Suburbs around all metro cities like Bangalore, Chennai, Delhi, Kolkata or Mumbai, or any other emerging cities, have seen spectacular growth.
Growth of these new corridors has provided the investors new options. Yet, the investors must approach such locations with a perfect view of investment. The tenure of investment is one of the main factors, that each investor should be careful.
It is never advisable to have in investment for shorter periods in any of the suburbs. If you plan to invest in any suburb, you should plan to invest for a quite longer time- so to say minimum three to four years.
On the other hand, the metro cities and other tier-I cities are more preferable for short term investment. If you invest for a short term also you will be able to gain bigger or higher returns. This is because the property prices are rocketing in all these cities. Moreover the growth potential of these cities is limited. This will assure sustainable returns to all the investors over the time. Continue reading
Property prices may go up with land acquisition bill.
The farmers may be happy to see the parliament passing land acquisition bill. Once the bill gets through the parliament the farmers will be sure of gaining more rights on their land parcels.
Though the bill will bring clarity to the land acquisition; the bill will affect the property prices severely. The prices will shoot up as the bill stands for the consent of the land owners, at least four- fifth of the entire land holders.
Industries also fear that the cost of the projects will be costlier. The land acquisition bill forces them to pay an amount, four times higher than the market price, in the rural areas.
The bill also asks them to pay a double the market price for the land in the urban areas. Project development will not be as easier as the builders have to get the permission of the land owners. Continue reading
Investment in Delhi NCR properties increases as it offers better returns to the investors.
Delhi NCR is one of the top real estate investment destinations in India. The city offers higher returns to the investors and so there are many investors who remain keen to invest in the properties in this region.
According to a recent survey, nearly one-fourth of the property investors are attracted to Delhi NCR which is second hotter destination after Mumbai. The area offers around 90% of returns to the investors.
Among the investment options in the Delhi NCR, Dwarka Expressway Corridor is the best and most sought after real estate investment destination. The area’s growth is well-supported by the infrastructure development and the location advantages. Continue reading
Faridabad real estate booms along with widening of Highways.
Faridabad has already become a hot spot for the realty players. Many of the most noted real estate developers of the NCR region have their projects in the city now.
Though the city is facing hard-hearted competition from other neighboring cities like Gurgaon, Noida and Greater Noida, it still has achieved a place among the hot real estate locations in the NCR region.
Compared to other neighboring cities the city is more suitable and demanded by middle income class group. Viewing the increasing population level; in the city Haryana Urban Development Authority has launched a 20 year development plan for the city. Continue reading
Connectivity holds the growth-key of Thane.
A few couple of years or decades back, Thane remained as an unpopular suburb in the Mumbai Metropolitan Region, right now this has become one of the most popular suburbs in the region.
Though the well planned development and schemes of the Authority plays a key role in the growth of Thane, the main role is played by the connectivity which has attracted more population to the city. Along with the infrastructure growth the connectivity of the area got developed.
The area is all set to be a fully–developed city in all spheres. With easier connectivity to Brahamand, Ghodbunder Road, Owala and Patlipada, the city becomes a hub for all the other areas of the city. Moreover there is a simultaneous and concurrent growth of commerce and infrastructure in the city. Continue reading
Property investment in pre-launch projects is better as it offers faster returns.
The booming nature of real estate market is one of the main reasons which attract the investors to property investment. There are many who have invested in much number of properties. Other forms of investment are incapable of providing better returns as quickly as property investment does.
For them property investment is a faster means to earn better and higher returns and financial benefits. Bank deposits and other financial schemes are only secondary to the property investment.
The most sought after location for property investment is Gurgaon. In fact the city is more or less has become an investor-driven market. However according to many experts the property prices are rocketing in the city mainly due to the presence of vast number of investors. Continue reading
Green buildings strike Bangalore residential market .
There are totally 41 LEED India-acknowledged green buildings in Karnataka. Out of these 41 green buildings 39 are in Bangalore. Now you realize how Bangalore residential market is becoming green now.
Karnataka has fourth-maximum number of green buildings in India. However there is a good appreciation from the buyers’ side as well. The people in Bangalore demand more for green buildings now and it seems to have become one of the leading trends in Bangalore residential market.
With the highest number of green buildings, Maharashtra is on the top list which is followed by National Capital Region and Tamil Nadu.
According to the industry experts; in India, the number of residential apartments – compared to commercial buildings, will be more by 2030. Continue reading
Connectivity boost the growth of Iyyapanthangal
The home buyers are always keen to know the connectivity of the area. Once they feel that a residential property is located in a location where they can enjoy better connectivity, their sentiments are boosted and they readily buy out the property. This is what happens in Iyyapanthangal in Chennai now.
Iyyapanthangal; an area located in the Sriperumbudur Taluk of Kancheepuram district, has carved a place for itself in the Chennai’s real estate landscape. The growth of the area is mainly due to its improved connectivity and infrastructure development.
Iyyapanthangal is rightly supported by better connectivity and infrastructure. The residents of the location enjoy better advantages as it is situated between the Bangalore Highway and the Grand South Trunk Road which provides better connectivity.
Connectivity and infrastructure development affects the property prices of the area which move upward day by day. The average capital value for the properties here range from Rs.4000 to Rs.6000 per sq. ft. There is an increase in the rental rates of the area as well. Continue reading
Revenue of Bollywood movies is affected as number of multiplexes are lower.
Bollywood film industry is affected by the sluggish realty market which has halted many mall projects. It is estimated that around 150 multiplexes across the country has not been completed in time due to the slowdown in the realty market.
It is a bad news for any Bollywood fan to hear that real estate market has indirectly affected the Bollywood industry. If the developers are not developing multiplexes, where will the Bollywood movies be shown and the people will be able to watch them. So in short the slowdown in the real estate sector has affected Bollywood, though indirectly.
In India, majority of the multiplexes which contribute a major share of film’s total collection, are built in malls. Once the mall construction has been halted by the developers due to the existing slowdown, the film industry also is affected. According to experts, Bollywood industry might have lost over 150 multiplex screens which would have generated more income to the industry. Continue reading
Properties in Pune remain unsold. Home buyers see it as a boon.
Vast numbers of properties in Pune remain unsold. Recently residential market in the city has experienced stable property prices for a few couples of weeks. Home buyers consider this as a boost for them as they will have plenty of options to choose from. They are also hopeful of attaining properties in Pune at lower rates through bargaining with the builders.
Global property consultant Cushman & Wakefield’s October-December (2012) quarter residential research report stated that the home launches fell sharply in the last quarter of 2012. Though there was a substantial increase in home launches here in the first three quarters of the year, the final quarter faced around 60% fall in new launches. Continue reading
Top destinations that provides better returns for your property investment .
Chembur, Ulwe and Wadala in Mumbai are three most-promising property investment and home destinations. These areas are noted for its improved infrastructure and job-generation capacity.
Noida-Greater Noida Expressway, Yamuna Expressway and Noida Extension are three top destinations in the National Capital Region. These areas offer better price appreciation to the investors. So they remain top destinations for property investment as well. Continue reading
Property prices will remain stable; despite no takers are around.
The situation in India shows that there will not be a fall of property prices, especially in the metros like Bangalore, Delhi, Mumbai or any other metros. Though everyone wishes a fall in the property prices, it is almost impossible to happen, neither in the near future nor in the longer- future.
Developers have taken loans from the banks and housing finance companies. Some of the builders have even taken loans from private equity firms which normally lend loans at 25 to 30 %. Still, builders are forced to cut down prices as many of the projects remain without any demand as buyers’ sentiment has been hurt by the sky rocketing property prices. Continue reading
Office space absorption in Bangalore fell due to the lower demand from IT and ITeS sectors.
Real estate experts said that the office space absorption in Bangalore has been dropped as the IT (Information Technology) and ITeS (IT enabled Services) did not raise much demand. The reports show that the office space absorption has dropped by 24% last year.
Cushman & Wakefield, a global real estate consultancy, reported that in 2012 nearly 7.3 million sq. ft. of office space was absorbed. This rate of absorption is very lower to the 9.59 million sq. ft. of 2011. If the IT and ITeS sectors had shared nearly three fourth of the total supply in 2011, in 2012 their absorption is just above two fourth of total supply. Continue reading
Ghaziabad real estate will thrive as the city achieves better development.
Real estate in Ghaziabad is on the verge to become a hot real estate destination in around 5 years’ time as compared to Noida. Yet one should notice that Noida has achieved a level of growth in a quicker span.
Earlier if the real estate builders avoided Ghaziabad real estate due to its weaker development, the current situation shows that they are keen to build up projects in Ghaziabad. Due to the steady improvement, the city seems to be competent to Noida real estate. Ghaziabad might now obviously hold better investment chances than Noida. Continue reading