Property Market Overview – Post Maharastra Elections

Mumbai real estate, Mumbai property, Bombay property

The poll results may have been declared in Maharashtra but the new government is yet to take charge. Once it does, it has a mammoth task of reviving the Mumbai realty market which has been slow for the past couple of months. Till September 2014, demand has been stable in the real estate Mumbai market while addition to supply has been limited. In the first half of 2014, the numbers of residential units constructed in the city were 17,500. Prior to the elections, the Maharashtra government had adopted a few measures to restructure the realty market such as increasing the floor space index or FSI for residential properties, removing the “heritage” tag from Chembur to allow redevelopment and declaring the salt pan area in Waddala as a residential property area. Roughly 266 files were cleared by the department concerning FSI and land use policies.

Experts opine that the succeeding Government of Maharashtra would have to review some of the clearances passed by the erstwhile government to make them friendlier for the development of realty in Mumbai. Infrastructural projects such as widening of roads and expansion of Metro Railway and Mono Rail have to be undertaken for improving access to Thane and Navi Mumbai. The measure taken to increase the floor-space index for residential properties has met with scepticism from various quarters as the pressure of population in Mumbai is too high and may elevate per square feet rate above Rs 1 lakh for certain areas. Affordable housing should be the mantra of the new government especially targeted towards the low and middle income housing group.

Maharashtra real estate, Maharashtra property, election and property rates in MaharashtraCurrently the real estate in Mumbai is stable, although it is yet to pick up. The mechanism of price correction has already been put into force in the city. The stock of property inventory in Mumbai can take up to 3 years to be cleared. Developers have slowed down construction, waiting for the market to pick up.

The faster the new government takes charge, the more would be the benefit to the realty Market. There are certain state laws governing Mumbai realty which, if modified or eliminated, could boost real estate considerably. The combined effect of Diwali and the Maharashtra poll results may help to buoy the real estate market. The festival period is considered to be an auspicious time for people to buy property and favourable poll results would certainly boost buyer interest in the market.

A faction of developers opine that the real estate market in Mumbai would not be swayed over by the poll results because buyers hardly consider the government in house as a deciding factor for purchasing residential and commercial properties.

Participants of the real estate market in the financial capital of the country agree that there will be negligible effect on the Mumbai realty market in the short term. However, once favourable policies for boosting commercial and residential real estate are undertaken, property dealings in Mumbai would pick up pace. 

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Property Market Overview – Post Haryana Elections

real-estate, property gurgaon, Haryana, apartments, property

The poll results for the Assembly election conducted in Haryana have been recently announced. Although not shocking, the results indicate considerable restructuring in the functionality of Haryana’s government. However, market experts are quite divided about the fate of real estate market in Gurgaon.

Gurgaon is one of the largest property markets of the country and incidentally a part of Haryana. Maharashtra (Mumbai and Pune) and Haryana combined form 30 plus percept of the real estate India. Experts have predicted that the poll results may not impact property rates in Gurgaon per se, but it would certainly speed up policy clearances and infrastructure projects which are important for real estate. Because the results have been favourable for the people of Haryana, both developers and buyers have much to rejoice about. The results were announced on Sunday, October 19, days before Diwali, one of the biggest days for transactions in real estate market. The favourable results may clear projects and bring in new announcement during this auspicious period, people reckon.

Since key decisions such as overhauling floor space index in the state of Haryana have been kept on hold for conducting the elections peacefully, matters are likely to speed up once a stable government has been formed. Experts feel that the new government would adopt initiatives which would better the realty sector of Gurgaon, Manesar, Sonepat and other important industrial centres of Haryana. Infrastructure initiatives, clearances and amendment of state laws for real estate may be quicker for Haryana. The determining factors are how fast the state government is formed and their ability to take stock of the situation in the real estate sector.

1302043393However, a lot of market players believe that not much would change due to the declaration of poll results. When the Lok Sabha 2014 results were announced, experts predicted that the real estate market pan-India would pick up within 9 to 12 months of formation of a stable government. On the contrary, Gurgaon property markets, quite like the rest of India, have been slow, with the city churning out only 8,000 units of new flats compared to Mumbai’s 17,600 (as per CBRE data) for the first half of 2014. Buyer sentiments aren’t particularly bullish and the results of the state election may not move them at all. The combined factors of Diwali and other festivities along with a majority party government in Haryana may be able to make buyers more positive about residential and commercial real estate Gurgaon. Since the period predicted is yet to be completed, it would be too early to predict the sentiments.

If incentives such as affordable housing for the low income and middle income group and infrastructure development (such as completion of the Dwarka Expressway) are offered to buyers, there is a good chance that realty market in Gurgaon would revive quickly. Investors and market experts are expecting path breaking reforms to be implemented in Gurgaon by the newly formed government.

Only time will tell whether improved policies and infrastructure initiatives would be adequate for enticing buyers and investors back into the real estate market of Gurgaon. 

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Real Estate Investment Guide for Metro Cities

The IT and ITeS boom has considerably increased the disposable income of people and coupled with aspirations to own a home, more numbers of people are looking to buy properties. Real estate companies in India have sensed this need among house hunters and they are coming up with properties that cater to all segments of the society. From affordable housing to ultra luxury properties, everything is being built by real estate companies in India. Most of the projects are concentrated in metro areas of the country such as Mumbai, Delhi and Bangalore.

Real Estate Investment

When you are looking to invest in properties in cities, you need to bear in mind that you may have to move to the outskirts in order to afford good flats with quality living. Properties along the outskirts are not only cheaper but they also have better quality of life. For instance, a lot of South Mumbaikars who lived in cramped 1 and 2BHK flats are now selling their generations-old flats and moving to areas such as Powai and Kandivali. Similar phenomena can be observed in Delhi too, where a good chunk of the population is moving into spacious flats in Chhattarpur and Mayur Vihar Phase III or Gurgaon even. If you have to invest in properties along the periphery, consider the civic and social infrastructure available. Water and power connectivity are perhaps the two most important things that you must consider. A good gated residential community must have power back up in case of failure and its own water pumping system. For instance, in Bangalore, it is very important to note whether a residential community shall receive Cauvery water and if it has its own bore well for water supply.

The next item on the list of priorities is connectivity of the area. Unless the locality is well connected to the central business districts or CBDs and other important areas of the city, it makes little sense to buy a property in the area. A phenomenon which is observed in most cities is that more numbers of people are willing to live by highways and expressways because they offer good connectivity to other important areas. For example, many people are buying property in Manesar (Haryana) and Bhiwadi (Rajasthan) because of their proximity to Gurgaon and the Delhi-Mumbai Industrial Corridor respectively. The metro railway is also an important determinant of good connectivity. Prices of property in Garia (Kolkata) and Ghatkopar (Mumbai) have increased manifold, ever since the metro line connecting these areas to the rest of the city became operational.

The social fabric of a locality plays an important role in determining the lifestyle that you would live. Availability of grocery and departmental stores, schools, hospitals, crèches and other facilities in the vicinity are important in order to live a secured and healthy life. A good neighbourhood is one which is replete with all these facilities and much more.

Real estate companies in India offer different kinds of facilities to buyers such as swimming pools, indoor gyms and play areas, club houses, landscaped gardens and covered parking for luring them. However, these features hardly impact the true value of a property. Unless civic and social infrastructure is in place, the property will hardly see an increase in capital values and return on investment would be minimal.

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Panchsheel Greens II Noida Extension- Luxury at Affordable Rates

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Do you want to live in an area well connected to Noida and Delhi which enjoys metro connectivity? Noida Extension may be the best place for you to live in. A lot of people commuting to Delhi and Noida for work live in this area, primarily for the affordable properties and metro line, which reduces commuting time by half an hour almost. The Panchsheel Greens II is an affordable property coming up in Sector 16 of Noida Extension, offering flats of different configurations.

The gated residential community is being developed by the prestigious Panchsheel Group that has been involved in the development of several properties in and around Noida. Living in Greater Noida (West) or Noida Extension has its benefits in the form of connectivity. The Okhla Industrial area in Delhi and business districts of Noida is well connected to Noida Extension via the Noida-Greater Noida Expressway. Noida Extension is also well connected to Agra via the Yamuna Expressway. Residents of Panchsheel Greens II shall enjoy connectivity to all areas of Greater Noida and Noida. Moreover, they will also be living near Gautam Buddh Nagar- home to India’s only Formula I race track.

Keeping in mind the comfort of residents, the Panchsheel group has decided to offer a number of amenities to them. Every apartment in the complex shall be provided with a DTH and Wi-Fi connection. Sports facilities include cricket and football grounds, unisex gymnasium, swimming pools, spas and indoor games facilities. To relax with their families, residents have been provided with an exclusive club house, amphitheatre, landscaped gardens, kids’ play area and multi-cuisine buffet area. The apartments have been designed to provide maximum space, fresh air and sunlight to residents. Floors of every room have been fitted with vitrified tiles. Flat owners can enjoy the view of lush, green spaces along the Noida Expressway from their spacious balconies. The structure of the apartment complex has been made resistant to earthquake and other natural calamities. Buyers can be assured of uninterrupted power and water supply along with 24 hours security at the main gate.

Panchsheel Greens II offers connectivity to some of the biggest companies and enterprises based in Greater Noida and Noida. It takes less than 30 minutes to reach industrial complexes and the SEZ of Noida. Shopping centres, good schools, hospitals and much more are a stone’s throw away.

To ease the financial burdens of buyers, Panchsheel Group has decided to go in for affordable schemes for purchase where you can pay a part of the money as down payment and the rest after possession. The relaxed payment schemes along with the pricing of the project make it lucrative for both middle income buyers looking for end use. Investors too would benefit from the project especially because property demand in Noida Extension is increasing. The extension of the Delhi Metro Network would lead to rapid capital appreciation.

The Panchsheel Greens II is an affordable residential community which offers easy connectivity to areas of the NCR, well developed social infrastructure and high returns on investment. What more would you want?     

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Smart Cities In India: The Ideology..The Objectives

Smart City100 smart cities, the dream project of central government announced in the budget 2014 is on tarmac of taking off now. The Media has persistently reported new developments on strategizing this ambitious program. Developing smart cities across the nation at such a scale has apparently been the lawn of discussion for policy makers, opposition parties and other stakeholders in the Indian real estate sector and infrastructure domain.

Let’s look through the ideology behind smart cities, the concept and its objectives that the new government aims to accomplish.

Smart cities, the Ideology:

  • Rapid urbanization and increasing pressure on limited floor space index across urban regions in India led to the need and conception of smart cities
  • Growth of industrialization and economic progress in the country went into the need of conceptualizing more urban conurbations to effectively absorb migrant/working populating. Advanced cities in terms of sustainable living, water and energy conservation and public safety, supportive healthcare facilities and employment generation emerged as the solution
  • Increasing population demands efficient and judicious use of limited infrastructure and other public utilities which subsequently begets the urgency of radically transforming life with the use of technological innovation

Smart cities, the objectives:

  • Conceptualization of smart cities is based on achieving enhanced livability index across the corridors of growth which are expected to push economic growth in the near future
  • To boost efficiency of public utility in transportation, communication, water/gas/electricity supply and subsequently realize a modern lifestyle for domiciles
  • To establish safe and secure living environment utilizing technological innovations which subsequently adds to the inclusive growth prospects of these cities
  • Optimally utilize information technology to habilitate the migrant population with e-management systems being the spine of infrastructure

Interestingly, riding along with the critics on this project’s scope, rollout costs and source of funding, this new initiative has been received with much cheer across the construction/infrastructure sector and common citizens of the country.

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REITs..What is in there for common man?

The real estate market is yet again the prime focus for investors diverging from various other conventional markets. The signs of revival in realty market are prominent with increasing enquiries of available residential/commercial assets and new launches by developer groups. Along with the increasing traction on ground, the realty market has yet another reason to cheer in the present day.

Reit ImageThe REITs have been qualified with final guidelines issued by SEBI, the stock market regulator in the country. As we know, REITs are just another type of mutual funds which instead of stock trading, channelize the pooled investments into property market. Given a go-through by the budget 2014 and SEBI, REITs are instilling faith amongst common/individual investors in the real estate sector and its prospects of growth.

As reported by The Economic Times, REITs will enable the common buyers to invest in currently available office space and hence pump in considerable amount of funds in the cash starved realty domain. Most importantly, REITS are the platform for common man to embark on the journey of monetization in the real estate sector which has so far been way beyond the reach for them.

REITs and the Common Man:

  • No more barrier of a massive down payment to invest in real estate sector. With REITs, mid-income individuals will also be able to invest as SEBI guidelines have brought the minimum investment threshold to a bare INR 2 lac
  • For common man, now real estate will be an opportunity for investment and hence the diversification of their investment portfolio will be easier and prudent. REITs will enable the trade participation of a larger base of investors belonging to various categories of fortune
  • Being a regulated mechanism for investments, REITs will no longer let the common man be dependent on whims of builder groups and rather reassure them with bargaining power against the developers
  • By far, the ROI in real estate was solely dependent on the level of value appreciation for one or two assets owned by single owners/investors. However, REITs will let the investors hedge their investments while it is invested in multiple projects of various segments/asset classes  
  • As performed in the developed markets, REITs will bring in a venue of regular income for investors as the asset value/rentals increase in tandem with inflation. This would do away the perception of a long gestation period required for monetization in the realty sector

As witnessed, market experts envision the future of realty sector to be a win-win arena for both the developer and buyer segments. The developers are expected to be relived with enhanced cash flow as a subsequent of more investors diverging towards real estate sector. On the other hand, the buyer segment also gets their share of profits with easy and regulated investments in the real estate sector which remained out of bounds for common man till date. 

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IndiaHomes Wins The Certificate Of Excellence From Burman GSC

Burman GSCThe Oberoi, Gurgaon

13th August, 2014

For its outstanding performance, IndiaHomes was awarded The Certificate Of Excellence by Burman GSC Group at an exclusive Channel Partner Engagement and Recognition Event held at The Oberoi, Gurgaon on 13th August, 2014.

IndiaHomes has been consistently honored by industry bodies & real estate developers for its customer-centric real estate advisory. At this exclusive gathering of channel partners, IndiaHomes was venerated for its valued support and association with Burman GSC Group for its project named Burman GSC, located at Sector 82A, Gurgaon.

Burman GSC is a new-age real estate development firm specializing in developing iconic landmarks that symbolize ‘Pride Of Ownership’ for their clients. Their core focus is on real estate development and management of assets and includes residential, serviced residences, hospitality, retail and commercial office space under its ambit.

IndiaHomes is your first stop if you are in the market for property – buying, selling, renting or home loans. All services are completely free to the consumer, and include property short-listing, comparison, site visits, unbiased recommendations and expert advice through every stage of the process.

Present across all 50 major markets of the country, IndiaHomes believes in an ethical customer-centric approach that provides complete assistance from the day you begin your search for a property till the date you move in. IndiaHomes’ core values center around service, integrity, trust and excellence. If you are looking for a reliable and hassle-free experience to home buying or selling in the country, you have arrived at the right destination. Let us take over from here.

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The IndiaHomes Millennium City Golf Tournament

August 9th 2014

Bangalore, Karnataka  

IndiaHomes is proud to have sponsored The IndiaHomes Millennium City Golf Tournament which was a huge success and an event that hosted experienced golfers from various walks of life.

Golfan FB PostHeld on August 9th 2014, the event was enthralling with an excellent weather and spectacular ranges of Prestige Golf Shire golf course, one of the best golf courses in India. With inspiring participation of more than 80 golfers, the tournament proved to be an exciting day of golfing and get-together for all participants, associate members and organizers.

We hope that you all fully enjoyed this day and it proved memorable for exceptional golfing and building relations. 

Hope to meet you again for the next edition of IndiaHomes Golf Tournament to be announced soon! 

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Ten Myths About Investing In Indian Real Estate- Debunked

Is India’s real estate market a bubble waiting to burst? Or it is just another sparkling growth story of the highest order? There are many such theories attached to this dynamic and somewhat diverse sector and here’s busting ten of the top myths: 

Real estate prices will surely rise in the futureDebunked Stamp

Bull markets are always built around one particular myth and people tend to have this strong perception relating to the upward movement of prices over time. This often spurs rapid buying decisions. In reality, there is no land shortage and prices have been known to fall in areas with stagnant demand in metros like Mumbai, Kolkata and Bangalore. 

A home always fetches quick returns 

Many of us believe that real estate is the sole path to wealth but the real return on real estate investments is not something which will cheer you up quickly! Returns are fluctuating and may depend on multiple circumstances. If you are looking for quick returns, invest in market instruments instead. 

A home is a veritable piggy bank 

People used to treat a home as a piggy bank earlier owing to low interest rates and cooperation from banks. Equity could earlier help you tap into credit lines but banks are now more skeptical about lending against equity, especially your immovable asset after the recession. 

The bigger the down payment, the better 

A smaller down payment may actually benefit you with regard to availing a lower rate of interest since less than 15-20% automatically entails buying insurance. Low down payments also help you snap up properties right away without waiting to save enough. 

Value for money is possible only in the suburbs 

Another common myth, life in the suburbs may cost you more than you think in spite of the cheaper prices of apartments and land. This includes transportation and related costs of amenities which can often equal your savings on the property. 

Redecoration makes for a good investment proposition

Remodeling will never really get you as much as you think. It depends on your own selling skills and the kind of buyer you get. With the tight situation in contemporary times, buyers never really want to fork out much for newer additions. 

Go for the first possible discounts 

Often, realtor groups and companies offer luring discounts which may seem tempting at first. However, this often makes us buy rapidly owing to an expectancy of price rise in the future. However, developers often use this tactic to push sell a property. 

Rentals may not always be a good option 

In spite of the overwhelming fear of rentals, the fact remains that they are a good way to start earning some income after you buy a property. Once the value of the property appreciates, you can always look to sell it for better gains. 

Local developers offer the best, lowest priced properties

Check the credentials of the developer thoroughly. Local developers often default on delivery and this raises your expenses considerably. It is best to stick with experienced and reputed names. 

Property prices are always fixed 

The truth is they’re not! Developers can be negotiated with if they are in a hurry to clear old inventory and you may end up getting a good discount in the bargain! 

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Foreign Equity Participation…Focus of Indian Realty Sector

The pro-growth stance of the majority government at center and a favorable budget is turning around the realty affairs in India. Now there are evident signs of revival across subsectors of construction and growth in infrastructure across key metropolitan regions in the country. Along with the retreating testing phase that soured market sentiment in past, the realty sector is once again pursuing all venues of funding to effect sustainable growth in India.

Foreign investment is once again the favorite amongst Indian developer groups who suffered the brunt of drying liquidity over the last year. Favoring growth, the new initiatives by central government like the proposal to set up 100 smart cities have encouraged local developers to source foreign funds for their strategic contribution to growth of realty sector in the coming future.  

As reported by The Wall Street Journal, in first half of 2014, private equity and other modes of investments have already more than doubled their millions of dollar investments into Indian realty sector. Factually, the economic slowdown over the last year rationalized asset values in Indian market and now offers prudent investment options for foreign investors to fetch reassuring ROI in the coming years.

Furthermore, the soon to be introduced REITs (Real Estate Investment Trusts) and easing norms to encourage block-free FDI routes are complementing foreign collaborations in the Indian construction domain. The already existent international players in India like Blackstone and Morgan Stanley are now betting upon fresh investments in the country.

Captivatingly, at this juncture of growth taking-off for realty in India, the foreign equity participation comes around with the improved financial health of local stakeholders. The cash rich developer groups are launching expansive residential/commercial projects with constructions undertaking on self-owned land tracts. Along with an encouraging contribution by foreign players and ever increasing demand of assets, the future brings hopes for a more inclusive growth of Indian realty sector with a critical participation of foreign investment groups. 

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