Real Estate Value and Tips

Real Estate Myths to Avoid

2016-01-16T03:29:00.000-08:00

If you’ve been sitting on the fence about real estate investment, it’s time to jump into the game. And, once you do, your first hill to climb will involve getting your facts straight.

Here are the top nine myths I see spouted almost daily:

1. Investing in real estate is too risky.

Investing in anything can be risky. However, in real estate you have a tangible, hard asset to fall back on, unlike what occurs with the stock market. With the right skills and even just an average housing market, you can do well. But diminishing risk starts with having a viable investment plan and sticking to it.

2. You need a higher education to succeed as an investor.

You don’t have to have a college degree to invest in real estate. In fact, many real estate investors don’t. With the power of the Internet and data, such as pricing history and housing market summaries, researching the state of the market in your area is easier than ever. Reliable real estate investment books and webinars are also plentiful, and are available at a fraction of the cost of a college degree.

You can supplement your basic knowledge with your own research, and the rest will come with experience.

3. You have to be rich to invest in real estate.

Rome wasn’t built in a day and neither were most fortunes. Start with small ventures and find investment partners with similar goals. In real estate, there are also funding options that can help you get started. You can then use the return on smaller investments to fund your next, bigger venture.

4. Investing takes too much time.

You don’t have to be a full-time investor to make money! When starting out, most investors keep their full-time jobs in order to maintain income until they get rolling.

Be forewarned, however, that real-estate investment tests your time-management skills. You will still have plenty of time to remain at your full-time job, but the reality is that you will say “bye, bye” to your weekends.

5. That late-night TV infomercial real-estate stuff is your only option.

You don’t need to buy-in to a late-night infomercial. We’ve all seen the “Start investing with only $100” ads. But get-rich quick schemes set you up to fail. Instead, by doing your own research and creating your own investment plan, you'll establish a viable path that will have you investing within weeks.

6. You need outstanding credit to invest.

Those with outstanding credit are few and far between. You don’t need the best credit to begin investing, but if your investment requires that you take out a loan (and most likely it will), you do need average or stable credit.

7. You can do just fine investing in the stock market.

“Just fine” isn’t a phrase investors should like to hear. Investing in the stock market is a viable option, but in real estate you have a tangible asset at the end of the day, no matter the outcome of the market. There’s also something to be said for taking something, making it yours and making it better.

8. Only institutions and full-time pros make it in real estate.

As previously mentioned, you don’t need to work in the market full time to make a return on your investment. Most of the investments made in your city’s low-to-medium income neighborhoods came from small-time investors. So, yes, it’s okay to start small! Even the smallest property investments can yield the most desirable return.

9. There is too much competition to be successful.

Never be afraid of a little competition. This will vary by city and neighborhood, but there’s no harm in competition if you can find a property within your budget. There are constantly new properties available on the market, meaning new opportunities for investment. If one area is slow to have properties available, don’t be afraid to look outside the area you originally intended to invest in.

These nine myths have kept many potentially great investors from succeeding, so don’t let that happen to you. It’s time to get in the game now!

Top Cities for Budget Real Estate in India

2016-01-16T03:18:00.002-08:00

Here are 10 cities that offer great lower-budget real estate investment prospects over mid- to long-term.India’s cities draw the most housing demand for reasons like better job opportunities, living standards and infrastructure.However, rapid urbanization and development of these cities into mega-cities have given rise to challenges such as pollution, traffic issues, high property prices, etc.

The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakh. This vision must necessarily encompass the smaller cities near the bustling cities of India.

Though afford-ability is a relative term, it is pertinent to look destinations where residential properties within the budget range of Rs 30-50 lakh are available, and are classified either emerging or growing sub-markets supported by good infrastructural development. These towns and cities offer a wide spectrum of investable options in real estate with relatively lower price levels, providing the incentives for future capital appreciation and healthy returns.

Hyderabad, Telangana

After a prolonged slump due to the global recession followed by political turmoil, Hyderabad’s realty market is now once again set for an upswing. Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The IT/ITeS industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces.

Pune, Maharashtra
The perfect blend of Pune’s manufacturing and services sectors makes the city a standalone economic powerhouse in all respects, with a rate of job generation that is hard to match. The city has witnessed steady appreciation over the last few years, and is ranked as one of the best markets for real estate investment. The luxury homes segment has been burgeoning on the Pune’s real estate market, with many large players entering with excellent luxurious projects. However, Pune is now witnessing a slight shift in the development trend. Many new players on Pune’s burgeoning real estate market can be seen venturing into the affordable housing segment. This is obviously the segment where the greatest demand lies.

Navi Mumbai, Maharashtra
Over the last few years, the real estate market in Navi Mumbai and surrounding areas have shown impressive growth, largely because of the planned approach taken towards development. Now, with Navi Mumbai receiving final nod for the International Airport, its property market and that of the surrounding areas have been showing great potential. While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs 30-50 lakh.

Jaipur, Rajasthan
Emerging out of its image of being a majorly tourism-led economy; Jaipur has grown beyond everyone’s expectation to become one of the top global outsourcing cities in India. The upcoming IT Parks promise a great future across all real estate asset classes. The 250-kilometer stretch between Delhi and Jaipur has become a hotbed for real estate development, with areas like Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar becoming the new catchwords for investors.

Surat, Gujarat
Surat, known as the diamond capital of the world, is a well-developed metropolis in Gujarat. Rated as one of the fastest growing cities of the world and also recently conferred with ‘Best Urban City of India’ award, Surat has also gained prominence and recognition for being the Cleanest City in India by INTACH. Rapidly improving infrastructure initiatives have helped modernise Surat significantly.

Ghaziabad, NCR
Ghaziabad is an emerging residential neighbourhood of NCR which has a very high supply of residential properties in the budget of Rs 30-50 lakh. Well connected via Metro and roads to the job markets of Delhi-NCR, the city caters largely to the mid-segment home buyers. The city has a high supply of ready-to-move-in properties offered by renowned developers. Some of the well-established residential clusters in Ghaziabad that have gain prominence in the recent time include Indirapuram, Kaushambi and Vaishali.

Nagpur, Maharashtra
Although a city with extreme climatic conditions, Nagpur is one of the fastest-growing cities in India. Nagpur’s main claims to fame include its MIHAN and SEZ projects. However, with the Devendra Fadnavis-led BJP government taking keen interest in turning Nagpur into the next IT hub of Maharashtra, the city is set for a major transition in its real estate profile. The already-established MIDC corridor along with the upcoming IT parks have made Nagpur one of the cities that bear close watching by real estate investors.

Kochi, Kerala
Kochi is a metropolis in the making where modern urban lifestyles are settling into antiquated old traditions. During the days of its realty boom, Kochi grew exponentially, with more people migrating to the city and consuming even the outlying catchments of Palarivattom, Vytilla, Kakkanad, Edappally and Kadavanthra. Development of IT/ITeS projects such as the Kochi Smart City and initiatives to channelise traffic and improve connectivity, such as the Mobility Hub at Vytilla, have fuelled significantly increased demand for real estate, which more and more developers are cashing in on.

Coimbatore, Tamil Nadu
Coimbatore is the major industrial centre in Tamil Nadu after Chennai — and as incentives are given to IT companies by the Tamil Nadu government, Coimbatore has gained momentum as a preferred destination for IT/ITeS. With the government in power promoting the city by enhancing infrastructure development, Coimbatore’s property market has witnessed an upward push in demand for residential units in the core areas of the city such as R S Puram, Avinashi Road and Race Course, which are considered posh areas. Nevertheless, it has no shortage of affordable housing options. Coimbatore is a market where 40 per cent of real estate investments come from investors living in cities such as Bengaluru, Cochin and Chennai. Apart from the demand from professionals engaged in IT/ITeS, Coimbatore is emerging as a retirement destination, and demand for 2 BHK homes is high from senior citizens. Demand for smaller apartments is primarily from young IT professionals, while villas and row houses see demand from NRIs, retirees and IT professionals with a preference for such properties.

Ahmedabad, Gujarat
Ahmedabad may be the last one in the list, but it is in no way the least. With the city being a prime example of organised and fast-paced development for the rest of the cities in India, Ahmedabad has come a long way. With huge investments pouring into the state, rapid infrastructural development in the form of bullet trains, GIFT Smart City, the entrepreneurial nature of the population and a supportive, stable government, everything is going right for Ahmedabad. The oil, gas and energy industries, petro-chemical industries and automobile manufacturing industries are some of the major factors driving perennial demand for real estate in the city.

US to track secret buyers of luxury real estate

2016-01-15T02:32:00.000-08:00

Concerned about illicit money flowing into luxury real estate, the US treasury department said on Wednesday that it will begin identifying and tracking secret buyers of high-end properties.

The initiative will start in two of the nation's major destinations for global wealth: Manhattan and Miami-Dade County. It will shine a light on the darkest corner of the real estate market: all-cash purchases made by shell companies that often shield purchasers' identities.

It is the first time the federal government has required real estate companies to disclose names behind cash transactions, and it is likely to send shudders through the real estate industry, which has benefited enormously in recent years from a building boom increasingly dependent on wealthy, secretive buyers.

Who really lives in all those awful luxury skyscrapers going up all over the US? Increasingly: No one. Now the government is going after the shady, secret deals that are gobbling up the most expensive real estate in most big cities—and destroying the housing market.

According to the New York Times, the Treasury Department will launch an initiative to identify what are called “shell companies”—the corporate entities that purchase large swaths of real estate in the US, usually with all-cash deals. Most of these companies are simply investors who are looking for a place to stash their money. Now these types of purchases are coming under fire as shell companies are also buying up cheaper properties that could be bought by people living and working in those cities, which is adding to the housing crunch.

An investigation by the New York Times last year focused on finding the real owners of properties purchased for over $5 million. In Los Angeles and San Francisco, for example, more than half of these types of residences were bought by shell companies.

Starting with two of the country’s most egregious offenders, Manhattan and Miami, the US will begin identifying and documenting (publicly, I imagine) the owners of real estate purchased through shell companies and all-cash purchases. For the federal government it’s less about how these owners are affecting housing markets, and more about the possibility that they might be able to nail a few criminals. The same NYT report from last year was able to track shell companies that purchased units at the Time Warner Center in Manhattan back to owners who were the subjects of international investigations.

This seems like the right thing to do—with housing being such an issue for much of the country, cities shouldn’t be overrun with absentee owners. But with so many cities in the midst of building booms that are specifically catering to these luxury buyers, this news might scare some investors away. Which may leave quite a few vacancies in all those supertalls going up in Midtown Manhattan.

Snapdeal Launches Real Estate Shopping Carnival

2016-01-15T02:29:00.000-08:00

Online marketplace Snapdeal on Thursday launched a real estate shopping carnival called 'Freedom from rent' for its customers on the occasion of Pongal and Sankranti festivals.

The weeklong carnival, which started on Thursday (January 14), will go on till January 20.

Exclusive offers from prime real estate developers like TVS Emerald, Provident Housing, Runwal Group, Atul Enterprises, Lavasa, Central Park, Ajanara Homes, Mahagun India and Gulshan Homz are available at the carnival.

Customers can choose from over 100 real estate projects in cities like Chennai, Bengaluru, Mumbai, Pune, Kolkata, Delhi and others.

Properties ranging from Rs 20 lakh to Rs 5 crore are available at the carnival.During the real estate carnival, Snapdeal would introduce customized offers. Buyers could give budget preference, and developers would promote projects with special offers. The negotiation scheme can give the customers an opportunity to purchase projects at 6%-8% lower price than the market price.

Speaking about the campaign, Tony Navin, senior vice president, partnerships and strategic initiatives, Snapdeal, said: "The real estate category on Snapdeal has received phenomenal response since its launch. This is due to our partnership with trusted developers, technology innovations that allow ease of online and offline transactions as well as exclusive offers for our customers. Through our 'Freedom from rent' real estate shopping carnival, we want to encourage our customers to purchase their own properties."

"Property prices will start from as low as Rs 20 lakh and will go up to Rs 5 crore with a variety of real estate projects on offer," Snapdeal said in a statement.

During the festival, Snapdeal would introduce customized offers for customers. Buyers could give budget preference and developers would promote projects with special offers.

Snapdeal as a marketplace would help in bridging the gap in price with customers and participating Developer/Channel partners. The negotiation scheme can give the customers an opportunity to purchase projects at 6-8 per cent lower price than the market.

"Real-estate category on Snapdeal has received phenomenal response since its launch. This is due to our partnership with trusted developers, technology innovations that allow ease of online and offline transactions as well as exclusive offers for our customers," said Tony Navin, Senior Vice President Partnerships and Strategic Initiatives, Snapdeal.

The apartments offered by banks are not always cheaper

2015-07-27T04:07:00.003-07:00

Although the initial price of housing may seem an opportunity to assume a low price, the final cost, including the necessary reforms, it can be high The apartments offered by banks are not always cheaper versus those offered by agencies and individuals. In addition, a lower price is a result of the state of housing and the need for a "profound reform". This is the conclusion drawn from a study by the Organization of Consumers and Users (OCU).

Despite popular belief, the bank is the owner of an apartment is no guarantee that it is a good opportunity. Thus, after an analysis of 54 real estate properties, the study shows that half of the banks visited flooring needed updating, which in some cases had to be completed.

Thus, although the initial price of housing may seem an opportunity to assume a low price, the final cost, including the necessary reforms can be high. Also, keep in mind that at that price must be added the cost of sales, according to the autonomous region, may amount to 14% of value.

In addition, funding is obtained not always an advantage, according to the organization. The usual spreads offered by banks are between 1.6% and 3%, depending on the degree of relationship with the company by recruiting other products. In this context, the study shows that the cheapest differential stood at 0.9% for a flat with a high price.

In this line, the analysis shows that most banks finance 80% of the value of the home, while in 3 cases 100% financing offered, albeit with a less favorable terms for the interest rate and the added expenses.

So, OCU recommends considering that, in comparing prices between agencies, banks and individuals, the latter do not charge commission to the buyer, while some agencies do. In addition the organization advised to invest in housing that exceed four times the net family income.

In this context, he said that the brick has risks, high acquisition costs, taxes and management, and low liquidity. Thus, it states that "there is a comparable investment with fixed term deposits." Thus, the organization indicates that for a housing investment is profitable, the profitability of this should exceed 5% to offset the costs of purchase, the rent, the risk of default and damage.

A simple way to calculate the right price for an apartment

2015-07-23T06:01:00.000-07:00

If the rent ten years rather than the total amount invested in a house is recovered, it is expensive

Housing is the most important investment made by most people throughout their lives. Right or wrong at the right price can mean long years of hardships to pay off the floor, with a greater risk if one stays unemployed, or, on the contrary, repay earlier letters without entailing an effort stifling to the family economy. But is it possible to find out what is the right price for a house? It is possible, from the value of rents and in a very simple technique known as 'cap rate', or capitalization rate, which is used by professional investors to find out whether the price of a real estate asset is right, is is undervalued or overvalued.

The capitalization rate applied to housing, is the ratio of the annual rent, net of expenses of community, more than that paid by the floor. For example, if a house is purchased for 300,000 euros and is rented for 2,500 euros a month, the landlord gets an annual income of 30,000 euros. Its capitalization rate would then be 10% and that in ten years would recover the investment in the property. If, however, perceived the rent is 1,250 euros per month, the annual income would be 15,000 euros and a capitalization rate of 5%, which would take twenty years to recover the investment.

The homeowner could have done something else with the money, for example, to acquire public debt to ten years at an interest rate of 3%. Public debt is investment assets considered safer because it is assumed that the State always pays what he owes, at least in the advanced countries. The capitalization rate of real estate assets should obviously be higher than the interest rate on the public debt because investment in them is much more risky. The house will always be there, but while the public debt can be sold in the market instantly, if necessary, the housing can take months, or even years, to be alienated because the real estate market is much less liquid than the debt. In addition, during the time elapsed since the house is put on sale until it, the real estate market conditions may have changed substantially and obtained less money than was originally thought materializes. For this reason, housing investment is riskier than government debt.

This fact follows that if the interest rate on assets such as government bonds to ten years is between 3% and 5%, the capitalization rate of investment in real estate assets should be between 10% and 15 %. Consequently, any cost involving investment in housing, whether rented, can not be recovered within a maximum period of ten years means that housing is overvalued.

Why renting is used as a benchmark to calculate the capitalization rate and thus whether or not a home is overvalued? Because, when renting an apartment, a person or a family you consider your monthly income and you need to spend to eat, dress, go to work, pay for college kids, etc. From there, calculate how much you can pay rent, so that it adapts to real economic possibilities of the family. That rent is the rent you get the homeowner on their investment. Therefore, if you are thinking about buying a home, learn first of the rents of similar dwellings and then calculate the capitalization rate. You will know if you are overvalued or if the price is right.

Things to consider before buying a home

2015-07-08T00:41:00.000-07:00

The purchase of a home is one of the most important economic decisions we make in our lives. It is a step that should previously and well prepared. Here are some key things to consider before giving it here

he purchase of a home is one of the fundamental economic decisions, if not the most, we took over our lives. Involves making a significant economic effort into debt for years and even if we have bad luck, so the risk of losing by default on the mortgage. In addition, normal for most people is that the house you buy is where dwell the rest of his days. It is therefore a decisive step, to make it well, you need a lot of preparation.

The first thing to consider is how much money you can afford the home. This issue is too often forgotten during the years of the housing bubble and people came to pay for housing up to nine and a half times the annual income of the family unit, in mortgages thirties. This meant spending more than half of the family income to pay the mortgage, which was a big risk because if one of the two members lost their jobs or their business project broke down dramatically the number of people professional services required, that family would have many problems to face the payment of the bill from the floor. It is recommended that not a home page for more than three or three and a half times the annual income of a family.

Then you have to remember that in addition to price, tackling all taxes and deed costs related to the purchase of housing and related taxes such as the real estate property tax or garbage rates many Councils-. And you also have to include community fees and insurance related to housing.

Once these calculations to see how much it really costs to house one should explore the neighborhood where the property is located and see if there is a reasonable setting shops for daily shopping; bars, restaurants and other entertainment; shopping centers; health centers; etc. It is also advisable to first find out what means of transportation for the district, especially when it comes to new neighborhoods. Do not forget that it is likely many years living in that house and all those things make your life easier.

When you start the process you can go to any agency of real estate, but do not forget that they also have another alternative: specialized Internet portals in all matters relating to the purchase or rental of housing. These portals you can make things easier because you can set the search criteria that interest you, such as location, type of housing, size and number of rooms or price. However, you should note that the portals will only find property information to be announced there. Therefore, it should complement the use of Internet with an on-site examination.

Normal in the process of buying a home is that you take some time to find one that you really like and to your wishes and possibilities, or simply one that suits you fits. Typically, you are having seen several homes before choosing one. In this regard, it should make a picture with the pros and cons of each floor that is visited and relate them to the list of things you want, as the floor is outside or not, whether it is in a complex with gardens and swimming pool, if you have air conditioning, storage and / or parking space, the age of the building, etc. All this will help in the selection process.

However, keep in mind two things. Finding the right home can take time. Therefore, do not be discouraged if you think you have not come up with what you want, do not panic and do not rush. You can, and should, afford to wait until you find what feels comfortable and can afford.

Foreign investors flee the dollar

2015-07-06T06:50:00.000-07:00

In recent months the real estate paradise of the world was the United States, because it had the best properties at the best prices, providing an opportunity for investors to build an estate in one of the most powerful countries in the world. After a few months the dollar experienced a kind of economic roller coaster now recovering rapidly, which has left many investors with no possibility of making strategic moves.

The currencies of other countries have begun to fall against the dollar, which has been noticed in property prices that only months ago were at a very affordable price, and are now unfordable for more than a few. These new quotas for sale of real estate in the US could re formulation housing markets of external trade.

Clear that foreign buyers have been an important part of the revival of the US economy, and not only this new surge helps protect the incomes of Americans, but also causes many serious buyers looking for a property there, because the Goodwill is a great reward.

There has been an increase in US real estate value of 5 percent, which is a result of the high profits of 2012 and 2013, however the story for foreign profit-reward play different.

In Miami, one of the most famous places in America to live, prices of real estate increased incredibly, making for investors as the Russians (which are a force investors very present in that area of the country) very difficult to invest in rubles. In New York, which is officially the most expensive in the world to buy real estate, the increase was 24 percent; Phoenix an increase of 20 percent was only in buildings and houses.

Wealthy investors from South America and China are looking for ways to be of properties in the US even to let them uninhabited, which is like putting money in the bank and wait for the interests it inflates, because as we mentioned above, the gain favors the value of a property can even double depending on the economic run the country.

Many investors buy properties as summer homes and vacation leave vacant long.

Sareb sold more than 24000 private homes in two years

2015-07-02T06:23:00.000-07:00

The president of the 'bad bank' Jaime Echegoyen, appeared at his own request in the commission of Economy of the Congress to take stock. He announced that the Sareb has entered two years more than 8,000 million euros and has been able to repay 5,400 million of debt 50,700. So far this year, it has sold 5,000 properties Sareb individuals.

The Management Company assets from the Bank Restructuring ( Sareb ), better known as the Spanish "bad bank" has sold in the past two years 24,000 private homes, and has reduced by 6,500 million euros its troubled assets, according to its president, Jaime Echegoyen. Echegoyen has appeared at his own request in the commission of Economy of the Congress, which took stock of the last year of the entity. In these two years have also managed over 20,000 business proposals, and there have been 25 major sales operations wholesale portfolios of assets, primarily loans. With all this, detailed Echegoyen, Sareb entered more than 8,000 million euros and has been able to repay 5,400 million of the 50.700 million private debt that had to issue to seize assets toxic banks. Only in 2014, explained Echegoyen, more than 15,300 properties were sold to individuals and more than 500 floors were awarded, bringing the year, revenues reached 5.113 million euros and could write off 50% more debt in 2013. Also the operating loss to 62 million euros were reduced from 144 the previous year, although the final result for the year also accused provisions. In so far this year -between January and June-Sareb Property has sold 5,000 individuals, representing a rate of 28 per day; and 60% of these operations, clarified Echegoyen, they have been carried out since the balance of the promoters, to facilitate the sale of homes contained as collateral for its loans.

Most debtors, SMEs Although Sareb is not a bank and can not offer funding to businesses, he said, most of their borrowers are SMEs, which could not without help reduce debt ; and that's where the company can offer "time and flexibility". In the first half have closed 23 sales transactions land, 43% more than the same period last year and have quadrupled revenues. Sareb not is an organization with social purposes, he noted Echegoyen, and has no mortgages to individuals, but is aware of its responsibility and the "problems faced by many families to access adequate housing ", which has made a public commitment to collaborate "as far as possible" to mitigate this problem. The result of this commitment has been on temporary housing with sustainable holiday destination and by the end of 2013 were put on the market 2,000 low-income households that manage regional governments . There are agreements with Catalonia, Aragon, Galicia and the Canary Islands , the latter pending closing. Echegoyen announced that Sareb hopes to extend these practices to other types of assets, and not limit them only to housing. It also referred to the coverage of interest rates contracted in August 2012, it has worked as a ground clause has prevented from benefiting from the fall in the Euribor. Nevertheless, Echegoyen has argued that it has been an instrument that has eliminated the uncertainty associated with interest rates and establish the financial costs of around 1%.

The household debt with banks fell by 4% and continues to minimum 9 years

2015-07-02T06:14:00.000-07:00

The annual cut recorded by loans for the purchase of housing was the main reason for the fall in credit to households. Compared with the previous month, the household debt remained virtually unchanged, although slightly lower.

The debt of Spanish families with financial institutions fell 3.9% in May compared with the same month of 2014, which puts the figure at 736 080 million euros for the third consecutive month to its lowest level since August 2006.

According to the updated data today by the Bank of Spain, the annual cut recorded by loans for the purchase of housing was the main reason for the fall in credit to households, since in May 2014 amounted to 600.439 million euros, 4 , 1% less than the 575.277 million euros in May this year. Compared with the previous month, the household debt remained virtually unchanged, although slightly lower, as it went from 737 983 000 (according to the final data) to 736 080 million. As for loans to companies, it has also been reduced in May from the previous year, by 5.1% to 941.345 million euros, while in April the decline has been only 0.68%.

Vegas Mall Dwarka Sec 14 New Delhi

2014-03-10T04:30:00.001-07:00

Vegas Mall Dwarka Sec 14 New Delhi

Construction started of Vegas Mall Cum Multiplex in Dwarka sec 14 New delhi Subcity which will be having Largest Multiplex, Luxury Hotels ,Shopping complex and elegent offices.Vegas Mall is located near Metro Station Sec 14.

RBI call to chop repo rates uplifts market sentiments

2012-04-24T09:58:00.000-07:00

Real estate sector has been confronted with challenges like weakening demand, market volatility, lukewarm budget, high land price, high input price, among others. however finally with the reduction of fifty basis points, the important estate market has one thing to cheer regarding.

Majority of the developers foresee demand to choose up, post this call. in keeping with Ashwini Kumar, Chief Operating Officer (COO) of Bangalore-based Nitesh Estates Ltd said, “The jury continues to be out on what's an even bigger menace – inflation or slowdown of the economy. but for home patrons, the better-than-expected rate cut could be a terribly welcome event as this can improve the affordability.”

The business is looking forward to important reduction in interest rates by banks once RBI’s call to chop the repo rates by fifty basis points. in keeping with a spokesperson of Mumbai-based Hubtown cluster, “This could be a welcome step however what remains to be seen is whether or not it'll translate to important reduction of interest rate or not. For any worthwhile impact on the business, the idea points ought to be reduced by 100-150 points. With the present high value of property further of financing it, the demand is drying within the market. Unless there's a rationalization of each these factors, the comfort level of end-user won't return into the market.”

It is expected that this move can perk up the demand and indirectly facilitate the developers in disposing off the unsold stock.

According to Navin Raheja, President, NAREDCO, “This can revive the declining property, where most realtors are reporting decline in internet profits, and boost realty stocks that have eroded 80-90% from their peak. Infusion of capital to the arena can see increase in new launches and enlargement in capital expenditure plans of realtors that have declined as a result of severe liquidity crisis looming the arena. Added to the current, abolishing prepayment penalty on home loans can scale back burden of home patrons and encourage a lot of individuals to venture into property sector. Overall, there's a reason for property sector to cheer, that has been below tremendous pressure thanks to liquidity crunch and rising interest rates in last 2 years. Rate cut by RBI is predicted to enhance provide of housing and come back of home patrons within the market, however to come back to 2008 level continues to be a protracted wait.”

RBI interest rate cut positive for housing sector

Commercial Real Estate

Kakkanad in Kochi witness to fast development

2012-04-24T09:55:00.000-07:00

Kakkanad a part of Ernakulum district, Kochi is one in every of the rapidly developing areas of the town. Kakkanad is witnessing immense growth within the residential, industrial and retail sector within the past 2 years.

According to AK Leo from Nest4u Properties, "Kakkanad has witnessed important growth of up to 100 percent within the capital values of residential and industrial properties and up to a hundred and fiftieth within the rental segments throughout the past number of years."

Growth within the IT sector is one in every of the foremost factors, added Leo. in keeping with Sabir Ahmed from world Associates, “Kakkanad has second largest IT industrial park within the town referred to as Kochi Infopark further because the largest upcoming IT industrial township ‘Kochi sensible City’ that is that the major economic driver of the world.”

Located in shut proximity to renowned education establishments, health care establishments and with adequate provide of water, the world is good for living further as business purpose. Well connected via NH47, Kakkanad enjoys connectivity inside the town together with the outskirt areas.

The growth of industries has created robust demand for homes, industrial complexes, malls, entertainments hubs etc within the vicinity. Developers like DLF Ltd, Infra Builders, Ebony Estates, Nitish Estates, assured cluster, ABAD Builders and Trinity Builders and Developers have launched their prestigious comes within the space.

All these comes are designed to produce lifestyle options and facilities to the top users. Most of the upcoming comes by native developers of the town are on the market within the value vary of Rs 30-50 lakh, but within the luxury phase like DLF Infinity Tower is on the market within the value vary of Rs 95-160 lakh.

The current capital values of residences vary from Rs two,500-4,000 per sq ft. The newly launched comes are seeing sensible range of transactions and also the capital values of residences on the market in resale is seeing premium of ten to twenty, as told by Dinesh Kumar from D.K. Properties. the continuing public personal partnership project within the areas that additionally includes construction of international airport is that the alternative reason fetching attention of patrons and investors.

Kakkanad is that the hub of IT/ITeS sector within the town and witnessing huge demand for housing. The new comes are ideal for people utilized in Infopark. the world {is sensible|is sweet|is nice} from investment viewpoint in concert will generate good rental returns, added Ahmed.

HDFC may reduce home loan rates soon

Demand for office space drops in metros

Akshaya Tritiya in Ahmedabad Real Estate

2012-04-24T01:18:00.001-07:00

Akshaya Tritiya pageant enhances interest for Ahmedabad realty

Also called Akha Teej and known by many names across completely different elements of the country, this date owns tremendous non secular furthermore as astrological significance. Not alone in Jainism however as per the Hindus, these days is believed to be dominated by Lord Vishnu. Akshaya Tritiya is additionally known as Navanna Parvam. Astrologically, the day falling on a Rohini star, Monday is taken into account additional auspicious. The day falls on the third lunar day within the month of Vaisshakh. The Hindu beliefs are grounded with the idea of Mahurats or auspicious timings. Be it a marriage occasion or an acquisition of a plot, a perfect time, date and day is specifically chosen.

Any new entrepreneurial or personal venture is initiated once consulting the dates. whereas Akshaya Tritiya is around the corner, these days marks plenty of prosperity significance. This pageant is one such momentous occasion that is taken into thought whereas managing property, gold or business ventures. Akshaya Tritiya is one among the foremost auspicious days of the Hindu calendar and therefore the notions stands that any meaningful activity started on these days would be fruitful.

Considering the investment choices within the town, the market still stands favourable for smart deals. Be it a high rise apartment surrounded with fashionable amenities or a private weekend plot, the demand and provide ratio still remains proportional. Akshaya Tritiya appears to bring a flow of inquiries within the realty section, bringing the realtors on their heels whereas individuals build a bee-line in quest of investment choices. The non secular significance of recent investment on these days which bringing monumental prosperity holds its importance within the investment phase. whereas the important estate state of affairs is nevertheless sturdy within the town and is booming with smart appreciation price, the gang is additionally focusing in property investment choices besides gold and jewelry purchases.

The word ‘Akshaya’ stands for imperishable or eternal – that that never diminishes. based mostly on this belief there remains a rush of shoppers in creating new ventures on these days. Initiations created or valuables bought on these days are thought-about to bring success or providence. The Indian myths favour gold purchases on these days. shopping for gold may be a common activity on Akshaya Tritiya, since gold is that the final image of wealth and prosperity. Gold and gold jewelry bought and worn on these days signify never diminishing providence. The non secular benefit that's acquired by giving gifts on these days is taken into account inexhaustible. Most jewelry stores stock in new jewelry models for this occasion with “Lakshmi”-inscribed gold coins, diamond jewelry and golden greenbacks with the photographs of the many gods and goddesses. it's conjointly believed that individuals born throughout this point shine bright in life.

People conjointly foresee for many alternative new ventures on these days, be it a marriage, starting of a replacement business or house warming ceremonies. Some even set up long journeys on these days. Worldly activities are often initiated throughout currency of this Tithi, but aspirants should make sure that the said length isn't sullied by concurrence of malefic times observed in keeping with the Hindu principles, and therefore the moments are favourable to the doer by transits of the planets and therefore the like. Aspirants are cautioned against using this Tithi blindly for initiating and conducting every type of life activities. Auspiciousness of the Tithis for specific activity depends upon simultaneous presence of Panchangam Shuddhi, Muhurt Yogas and host of alternative components of Hindu astrology.

The property market in several locations sees increased activity throughout festivals like Akshaya Tritiya, that are believed to be auspicious for the creation of wealth and providence. The positive sentiment related to such festivals typically motivates fence-sitting consumers to require the plunge where they'd otherwise have procrastinated additional. Developers are well responsive to this and get to capitalise on these sentiments via increased selling efforts. In that respect, festivals like Akshaya Tritiya will act as a strong market force.

Since the assumption for this occasion remains sturdy, the important estate holders do return up with favourable schemes and straightforward investment choices. One might look in for an appropriate theme and instalment choices to shop for the land of likeness. Not that purchasing property has turned a cake walk however with dime a dozen investment choices, the case to shop for land has become straightforward.

Akshaya suggests that smart luck and success. It stands for the never diminishing prosperity. several believe that purchasing a house on these days, brings wealth and peace for its residents forever and for generations down the road. There are plenty of property campaigns conducted by banks for straightforward home loan solutions, by jewellers for discounts in jewelry creating and by monetary establishments. Over the time Akshaya Tritiya has not solely gained non secular importance however the day is additionally commercialising for the betterment of consumers and sellers. With ton of commercialisation, though these days flares a materialistic urge in individuals, there's a really high awareness relating to Akshaya Tritiya.

Commercial properties in Delhi witness stable values

Bangalore residential rentals stabilise

Softening in credit policy useful for realty investors

2012-04-21T20:39:00.003-07:00

The recent move by the Reserve Bank of India (RBI) in its annual Credit Policy has given some hope for investors within the reasonable housing phase. this can be being seen as a positive development for the property market. whereas investors stay cautious and watch for banks to announce the lowering of interest rates, realtors are optimistic of the state of affairs, however, hoping that inflation remains underneath check.

“While the speed cut of fifty basis points is unquestionably a ray of hope, it doesn't dispel the shadows nearly the maximum amount as is also initially supposed. It ought to be borne in mind that the Reserve Bank of India (RBI) has hiked interest rates thirteen times between March 2010 and October 2011,” says Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India.

“While this can be understandable, given the continuing issues over inflation and liquidity within the market, the spate of rate hikes has created a compounded drawback for the residential land sector. The series of hikes within the past have conjointly affected the worth that builders placed on their properties, since their own prices of borrowing have increased. it's unlikely that property costs can return down thanks to this rate cut. In fact, it's terribly doubtless that there'll be an upward bias on property rates thanks to the anticipated improvement in sentiments of consumers who have thus far been sitting on the fence, looking forward to some signals of relief,” adds Ahuja.

Shrinivas Rao, CEO, Vestian world Workplace Solutions says the reduction in repo rate can boost economic growth and improve business sentiments that in flip can strengthen shopping for activity. However, the impact can vary across sectors looking on implementation of the cut by leading banks. “Leading lenders are doubtless to chop interest rates on deposits and loans. Home loans are doubtless to show cheaper. as an example, a twenty five basis purpose cut may lower home loan EMIs by Rs sixteen per Rs one lakh. A cut within the repo rate {will also|also can|will} cut back the interest on industrial loans that in flip will favour developers to avail cheaper loans, thereby providing traction to land activity. Cheaper loan rates are expected to draw in additional end-users, impacting the residential sales absolutely,” he says.

With banks giving loans at cheaper rates, developers are doubtless to like the bank loans as against non-public equity funds. However, a rise in market demand within the short term can drive capital values, thereby benefitting retail investors, adds Rao.

Work to resume at Noida Extension

2012-04-21T20:38:00.002-07:00

Encouraged by positive indications from the NCR designing Board to travel ahead with the Master arrange 2021, the bigger Noida authority is going to re-schedule developmental work in and around Noida Extension.

There is additionally a transparent indication from the Allahabad high court on a review petition filed by the bigger Noida authority. So, you will currently breathe simple this dream house of yours. The uncertainty over completion of comes launched in Noida Extension seems to be lifting.

If the trend of those positive developments continues, developers and builders will restart construction work this month itself. they need been watching for this moment since the Allahabad high court verdict over the land row. Sources say that the Master arrange 2021 of bigger Noida has virtually been cleared and is awaiting a proper announcement of the sub-regional cell, Uttar Pradesh.

Anil Sharma, the vice chairman of Credai and therefore the chairman and managing director of Amrapali cluster, says: “This may be a relief for builders and developers whose comes are delayed since the dispute erupted over land acquisitions. when the Supreme Court verdict, that quashed the land acquisition of Shahberi, variety of comes were in limbo.”

In a writ petition range, Ramesh Kumar Bhagchandka versus UP and others, it's been said that the Master arrange 2021 doesn't have any approval of the NCR designing Board, that may be a statutory body constituted below the an act of 1985. in line with the act, a thought should 1st be ready and if necessary land acquisition would be done.

In the gift case of Noida Extension, the acquisition proceedings are undertaken and thereafter the land was sought to be utilised by allotment to builders for raising construction that go contrary to the arrange. below these circumstances, the petition says the proposed acquisition is against the law be put aside. during this context, the Allahabad high court has directed the bigger Noida authority to get clearance from the NCR designing Board for its master arrange, and then go ahead with the event method.

Experts say there's no provision for approval of the master arrange ready by the event authority from the NCR designing Board. the availability is barely for sub-regional plan; the Master arrange of 2021 was sent to the NCR designing Board for approval in 2006 and 2009, though.

According to the principles, the NCR designing Board will raise objections to the arrange at intervals sixty days from the time the arrange was submitted to them by the event authority. when the expiry of this era, it can not be challenged. it had been so that the bigger Noida authority urged the Allahabad high court for review of the choice over the master arrange.

The bigger Noida authority has currently clubbed its Master arrange 2021 with the newly written Master arrange 2031 and sent it to the Housing and concrete designing Department, Lucknow, for approval, to avoid the same scenario in future.

The Housing and concrete designing Department is getting ready sub-regional plans for development authorities like Yamuna, Noida-Greater Noida and Ghaziabad Authority. The sub-regional plans of Noida and bigger Noida have virtually been cleared.

Impact of court’s verdict

After the court verdict that awarded sixty four.7% further quantity and 100% of the developed plot as compensation to farmers, Noida and bigger Noida authorities are issuing notices to any or all the developers and builders whose comes return below the disputed areas.

In line with the court verdict, the Noida authority has got to disburse Rs one,100 crore additional to the farmers, as compensation. The Noida authority has determined to depart this world five hundredth of this burden to the builders. Besides, facing serious money crunch, an additional burden of Rs nine,500 crore together with price of developed plots, the bigger Noida authority is already within the method of collecting cash at the speed of Rs two,015 per sq metre from builders and Rs one,465 per sq metre from individual residential plot allottees of Noida Extension. an additional Rs 550 per sq metre also will be charged from instructional and institutional allottees.

Noida Extension, over 3,000 hectares, contains Sectors one, 2, three and Ecotech thirteen. The bigger Noida authority allotted land to over 3 dozen builders like Amrapali, Supertech, Nirala, Eros, Antriksh, Earth, Ajnara, Gaursons, etc, at rates that ranged between Rs ten,000 and Rs eleven,600 per sq metre through open tenders. additionally, a complete of four,250 residential plots were allotted through lucky draw at the speed of Rs ten,500 per sq metre.

Builders are going to increase costs during this space at the speed of Rs five hundred per sq ft, to soak up the increased burden. Chetena Sharma, a buyer at Noida Extension, says: “The call to levy an additional charge can hit the property market. it'll not be cheap for middle-class salaried folks. For the common middle category, a house can stay a dream.”

Rakesh Yadav, the managing director of Antriksh cluster, says: “Undoubtedly, property in Noida Extension, that was earlier known for its cheap rates, can currently be costlier. we have a tendency to are absolute to revise costs as a result of this further burden including increasing value of raw materials.”

RBI interest rate cut positive for housing sector

2012-04-17T21:06:00.000-07:00

For the first time in three years, Reserve Bank of India (RBI) has slashed interest rates by 50 basis points to 8%. This move will reduce the home, auto and corporate loan rates. A fall in interest rates of home loans spells relief for the common man who up till now had been postponing the decision to buy property due to increased prices and high inflation.

Anuj Goel, Executive Director of KDP Infrastructure believes that this is a good move from the RBI’s side as this will improve cash flow. “As the housing loan interest rate reduces, it facilitates home seekers to buy house and ultimately it will be beneficial for real estate industry. However, the move will only benefit new borrowers while the existing borrowers will have to grapple with the old rates,” he added.

Banks should allow existing home loan customers to reduce their interest burden by allowing them to re-price their existing loans at lower rates so that borrowers can switch to prevailing floating rates that are at a discount to the prime lending rate, Goel pointed out.

Navin Raheja, President, NAREDCO & CMD, Raheja Developers is happy with the move, saying that home loan EMIs will come down resulting in a boost to residential real estate. “But, the banker’s reaction to maintain the interest rates irrespective of cut in repo rates is a cause of concern because we feel that banks should pass the rate cut to the borrowers enabling them to invest in real estate,” he said.

Sailesh Kumar, Chief Operating Officer, Lotus Infra Projects Pvt. Ltd agreed with the view, saying that keeping in view the upside risk of inflation, the RBI could not afford to cut repo rate for the last couple of years.

“It seems that growth is likely to improve supported by pick up in consumption demand. The RBI has cut the repo rate which is a welcome step for real estate sector as high interest was impacting the demand on one hand and increasing the cost of construction on the other hand increasing the cost of construction,” Kumar added.

Gaurav Mittal, Managing Director, CHD Developers Ltd said that this step is slated to be beneficial for both the buyers as well as the developers who have been struggling with cash crunch in recent times. This significant move would reduce the cost of funds to home buyers as well as developers as it will allow the banks to lower down the interest rates. “This will ensure heightened property demand in the coming times. Removal of the pre-payment penalty clause will spread cheer amongst developers and would ensure fresh loans and hence boosting the market,” he added.

Now that rates are cut, consumer demand is expected to revive and overall sentiment will also improve. It is expected that banks will reduce the home loan interest by 50 basis points which will ultimately perk up the demand and will help developers to dispose off their unsold stock, Kumar added.

Rajesh Goyal, Managing Director (MD), RG Group said that the announcement in the new credit policy to cut interest rate by 50 basis points is a move towards the right direction. It will provide much-needed boost to the sector and a relief to home buyers.

However, Om Ahuja, CEO – Residential Services, JLL India does not consider this cut to be a positive move for the housing sector. It should be borne in mind that the RBI has hiked interest rates a total of 13 times between March 2010 and October 2011. “Given the ongoing concerns over inflation and excessive liquidity on the market, this spate of rate hikes as created a compounded problem for the residential real estate sector whose effects are not easily dispelled. The series of hikes in the past have also affected the price that builders put on their properties, since their own cost of borrowing has increased. It is unlikely that property prices will come down because of this rate cut, and it is the price of properties that is the decisive factor in residential real estate sales,” he said.

Bangalore residential rentals stabilise

2012-04-12T20:44:00.000-07:00

With the inventory levels going up across all micro markets, residential rentals are stable except in CBD and select other areas where high-end housing demand is predominantly driven by expatriates in the city. There are others who feel that rental market saw a hike by 20-30 per cent in the last one year before stabilising now.

In CBD areas, rentals are up by 8-10 per cent due to demand exceeding supply. There are realtors who say that the appreciation would be as high as 10-15 per cent due to the growing demand in central areas and the spurt in the influx of expatriates from Europe and US to the city.

The demand for leasing from expatriates is particularly for gated community development projects in proximity to international schools, says Farook Mahmood, CMD of Silverline Realty Pvt Ltd. The location varies depending on the work spot and availability of international schools for children. High end apartments in CBD areas and villas in areas like Whitefield drive demand where the rentals range from Rs 1 lakh to Rs 5 lakh per month.

Apartments in CBD areas command a higher price than other areas. Rentals range from Rs 20,000 to Rs 2 lakh per month for 2 BHK units depending on the location, proximity to landmark areas and amenities offered in the project. Similarly rentals for 3 BHK units range from Rs 45,000 to Rs 2 lakh per month, according to realtors.

A significant development is the expansion of commercial property market which in turn has boosted the demand for housing in the city. Even some of the call centre trainers are coming from abroad, according to realtors. Unlike earlier, the demand from expatriates for housing has gone up in and around the city.

For apartments, rentals are more or less stable except in a few areas where demand exceeds supply levels, says A Siddique Beary, director, Bearys group. Bangalore continued to top the charts with the highest office space absorption last year in the country with 11.53 million sq.ft. along with additional pre commitments of 5 million sq. ft for 2012. The influx of expatriates and the resultant demand for high end housing need not be overstressed further. The impact on high end housing especially from expatriates has resulted in rentals surging by 15-20 per cent in select areas, he adds.

According to Jones Lang LaSalle’s quarterly update, Bangalore market saw the absorption of 4,182 units in 1Q12 against 3,370 units in 4Q11, pushing the absorption rate up from 10.0% in 4Q11 to 11.0% in 1Q12. Unsold stock in the quarter totaled 32,978 units compared to 31,369 units in 4Q11, reflecting a vacancy rate of 51.1% down from 52.4% in 4Q11. This increase in demand was due to buyer sentiment shifting towards purchasing a property rather than paying high rents, as well as the entry of primarily investment buyers from other tier I and II cities. XZ4UCQYVE5Y2

A total of 25 residential projects were launched across the city’s submarkets in 1Q12, offering 5,791 units in 1Q12 against 3,515 units in 4Q11. Meanwhile, eight residential projects comprising 1,009 units across different sub-markets were withdrawn from active stock as they were completely sold out.

Residential rents rose in 1Q12 due to the influx of people, mainly IT/ITES employees, into the city and are likely to increase further over the remainder of 2012 due to the expected improvement in IT/ITES employment.

Chennai retail mart buoyant

2012-04-12T20:43:00.001-07:00

Chennai’s retail sector is gaining momentum with vacancy levels declining from 14.0% in Oct-Dec 2011 quarter to 13.5% in Jan-Mar 2012 quarter. The largest deal was by French Home furnishing retail chain Ebony Gautier, which took around 10,000 sq ft space in Express Avenue mall.

According to Jones Lang LaSalle’s quarterly survey, mall format stores in the CBD were in demand during the latest quarter. Canon Image studio, Gem palace, Lasya, Kryolan, Timex, Eye T world were some of the brands which occupied vacant spaces in Ramee mall during 1Q12.

Ground floor of office buildings continued to attract retailers, during 1Q12, Spectrum Shopper’s leased out around 1,900 sq ft of space in Ambit IT Park, Ambattur industrial estate.

Lack of new mall space helped high streets to gain healthy leasing during the quarter. LG opened two stores, one in Nungambakkam high road and another in Chrompet. Louis Philippe, Van Heusen and Zimson opened shops in Adyar, while Harley Davidson and Apple opened there stores in Nungambakkam. Roshan Lal women’s ethnic wear and Helios opened shops in Shanti colony, Anna Nagar, whereas Reliance Trendz opened its shop in Chrompet.

Supply

No new supply was added in the city during 1Q12. Ten’s square mall coming up in Koyembedu, is ready for fit-outs and expected to come up during 2Q12. This will add around 150,000 sq ft of mall space taking the total supply of mall space close to 3 million sq ft.

No sales transactions have been recorded in the retail malls sector over the past few quarters as new malls in Chennai operate in the lease model.

Due to limited size of the market, Chennai retail segment including high streets deliver high returns on investments, which forces the investors to hold on to their investments.

Outlook

With the Union budget putting more money into the hands of avid shoppers, retailers are bullish about the surge in sales in the coming months.

JLL expects vacancy levels to rise in the next 12 months amidst the supply of more than 2 million sq ft. of mall space. Though vacancy rates are expected to surge, absorption in the new malls are also expected to improve amid flourishing residential and commercial activity in the suburbs.

Rental and capital values are likely to improve in select pockets of suburbs and in prime locations, while they will remain stable in the peripheral areas.

Old TNHB flats to make way for high rises in Chennai

2012-04-12T20:42:00.002-07:00

The Tamil Nadu Housing Board is gearing up for a massive redevelopment plan in which 2,238 old rental apartments will be razed at 17 different locations in Chennai. Most of these apartments are located at Nandanam, Saidapet, Foreshore Estate and Kilpauk.

The board will develop 4,691 highrise apartment complexes at these locations at a cost of 680 crore, said housing and urban development minister R Vaithilingam in the assembly on Tuesday. They will be rented out to government servants and public as per TNHB guidelines.

TNHB will also construct 400 rental apartments at Anna Nagar West Extension and Thiruvanmiyur at 60 crore for government servants and general public. The board will also carry out repairs of its old rental apartments at 10 crore.

The minister announced a list of projects to be taken up by the board this year. The board will construct 3,662 multistoreyed residential units in two phases at 812 crore at Sholinganallur. Similar projects will be taken up at Kancheepuram, Thanjavur, Trichy, Madurai and Tirunelveli districts at 43 crore during the current financial year.

The Slum Clearance Board will construct 2,882 tenements at 145 crore at Srirangam, Trichy, Vandavasi, Tuticorin, Ramanathapuram, Orathanadu and Chennai. Under the Rajiv Awas Yojana, 1,404 tenements will be constructed at Athipattu and Ambattur at 108 crore.

BMC to get a year to implement new property tax model

2012-04-11T20:11:00.000-07:00

An ordinance to grant the Brihanmumbai Municipal Corporation (BMC) a year to implement the capital value-based property tax regime was introduced in the state legislative council for approval on Tuesday.

The ordinance was approved by the state legislative assembly on Monday evening and is expected to gain a smooth passage in the council as well.

Minister of state for urban development Bhaskar Jadhav sought the ordinance’s approval in the council on Tuesday itself, but a discussion on it was deferred as some members from the Opposition benches,who wanted to participate in the discussion, were not present.

While proposing to grant the BMC a year’s time, the state urban development department made it clear that “there will not be any further extension”.

The government has permitted the BMC to issue provisional bills on the basis of rateable value fixed in 2009-10. The government has also proposed exemptions for offices of all diplomatic and foreign missions in Mumbai for payment of water benefit tax, sewerage benefit tax and tree cess.

Implications of guideline value revisions in Tamil Nadu

2012-04-11T20:10:00.001-07:00

The government of Tamil Nadu has revised the rates of guideline value of land in all zones, including residential, commercial and agricultural land across the state with effect from April 1, 2012. This revision comes after five years with the last set of values having come into effect in August 2007.

The revenue policy note, presented in July last year, reflected that this change was due to be ushered in and speculations were rife over the last eight months as to when the revision wouldcome into effect. In November 2011, the proposed revision of values for each region was put up for public opinion in all the Tahsildar offices and reviews were taken into consideration, before the current set of rates were introduced in the state.

The new values affect all types of land including agricultural, residential, industrial and commercial property in urban and rural areas equally. With a rise of almost 300% in many areas, the reaction to this revision has been mixed. There are three main aspects that this change brings in, the first being the prevention of black money and the loss of revenue to the state and country.

“The revision is a welcome move and is set to usher in a cleansing of the real estate industry and land transactions across the state,” states A S Shivaramakrishnan, Head, Residential Services, Jones Lang LaSalle India, Chennai, a premier international real estate consultancy firm. “The revision of the guideline values equaling the market value of land in most part across the state will greatly enhance the transparency index of real estate transactions in the city and promote investment and growth in a big way.”

A major concern in India is cash transactions in real estate deals, which is encouraged by the divergence of guideline value and market value. People often register the transaction at guideline value (sometimes as low as 20% of the transaction value itself), pay the registration and stamp duties based on the guideline value alone (affecting the buyer of property) and reflects the accounted portion equivalent to the guideline value alone for capital gains and tax purposes (affecting the seller of the property). With such high degree transactions happening in cash in most deals, it had become rare to find buyers or sellers insisting on a fully transparent deal. This led to huge revenue losses for the state exchequer. This is not only illegal, but also creates a vicious cycle of investment of black money in the real estate sector.

“Major legal reforms are still required with respect to property valuation and land acquisitions,” says RS Nambi, a Tax and Legal expert and advisor to the World Bank. “An ombudsman and valuation officer in every registering office to examine and evaluate the transactions, disputes and divergences between published values and the market can go a long way in ushering greater fluidity to real estate transactions. This revision of guideline values is the first step towards preventing the loss of revenue for the state and unearthing black money. We have to wait to see how the latest measures of the budget with respect to bringing in TDS on amounts greater than 2 lakhs will apply to property sales this year. The capital gains tax that the seller has to pay is calculated on transaction value or guideline value, whichever is higher according to law. “

The previous year saw close to `3,200 crores worth of stamp duties and registration fees being paid for property transactions between October 2011 and March 2012. The revision is expected to boost the revenue in the state this year to a figure greater than `8,500 crores in 2012-2013. Targets for revenue collections for the month of March were set for all the sub-registrar offices across the state by the Inspector-General of Registrations.

With expectations of a hike in the values, there has been a rush of registrations and many people who might have otherwise waited to conclude their transactions, were pushed to finish them before March 31. “With a high number of transactions having happened in March, the target of 21 crores set for the Neelankarai SRO was successfully achieved by the middle of the month itself,” states Vimala Jayakumar who runs a document services outfit in Neelankarai.

“Usually, there are around 40 registrations per day and in March it rises to about 60-70 per day. But this year, there was a heavy rush in the last two weeks of March, with more than 200 registrations happening per day.” This clearly shows that the revision of guideline values will not only promote transparency and usher in more revenue to the state, but it will also act as a mechanism to force people to complete delayed transactions all at once and bring in a combined revenue to the state, which has been starved of funds. It is estimated that the combined revenue of 1000 crores has been collected by the state for the month of March 2012 through these transactions alone.

The Inspector-General of registrations chairs the committee formed by different sub-collectors across the state to determine the guideline values. The proposed values were published in November 2011 and public opinion was invited. Accordingly, they were modified before coming into effect in April of this year. Says Vimala, “Overall, the new values reflect the market rates. Wherever people disagreed with the rates, appeals were submitted and they were taken into consideration. The older and newer guideline values have been listed by survey number, street and category on the official website of the Registration Department of Tamil Nadu (www.tnreginet.net) and the website itself mentions that values relating to 1.1 lakh streets and over 29 million survey numbers.

While it is a great move to bring in transparency in the state’s real estate industry, there are some concerns as to how this revision will affect the public and developers. With steep revisions of up to 270% in most cases, the question on how this re-evaluation of property will affect the common folk remains. The hardest hit areas are the centers of urban development and the heart of Chennai city. “In the peripheral areas, it is business as usual even with the hike in values. Similarly, for multi-storeyed buildings, the direct impact is not as high, since the undivided share values come up only to 20-30% of overall values. The significant impact is within city areas where the values have jumped up to unaffordable levels,” says AS Shivaramakrishnan.

“While the cost of land is already high in the city, the steep increase in guideline values will make it impossible for developers to be able to afford to get premium FSI for redevelopment projects. What this means is that, on old buildings that can come up for redevelopment with joint-development agreements between the owners and developers due to revision of the FSIs over the last two decades can be rendered unfeasible if the developer has to pay the kind of fees based on the new guideline values for the premium FSI that would be his profit centre. Any move to provide some incentives for redevelopment projects on 25-30 year old buildings are necessary to avoid bringing redevelopment to a grinding halt. The concern is that the move makes it all that more expensive and unfeasible for urban projects.”

“Similarly, peripheral development needs the social infrastructure to expand accordingly. In a city like Bangalore, this has happened in concentric circles and not in an unbalanced way like we are seeing in Chennai. With the city at a crucial stage of its metamorphosis, with major infrastructure projects like the metro in progress, a significant aspect that affects its citizens and growth itself is redevelopment of existing structures and buildings. New infrastructure is being built to raise a brand new city from the ashes of the former metropolis. This has been the story in cities all across the world, right from New York to Mumbai, where redevelopment has been key to boosting its growth ahead. Hence, while it is a positive move by the government to bring in equity in the values of transactions, it is important that the city and state authorities remember that the redevelopment of its buildings is necessary for growth. “

Construction industry moves from traditional to innovative building concepts

2012-04-10T21:25:00.004-07:00

New eco-friendly engineered homes, building systems and technology are being introduced. We are moving away from the traditional method of construction towards the innovative concept of engineered residential homes. Noida-based Interior Craft has launched the unique concept of assembling partially constructed components manufacturing inside a factory. So, what’s different about this home?

Called Interior Craft Engineered (I.C.E) Homes, a sample building with this technology uses iron columns as supporting pillars, covered by shera board (fiber-cement composite) as substitute for cement, grade A steel beams, GI sheets, bison board for roof and membrane for water proofing, CFL and LED lighting etc. Propagating the need for green technology in all buildings, Interior Craft said that this building is ready within 3 months.

Eliminating the need of a large workforce and large turn over time, components such as supporting pillars, door head and roof structure, are built in a climate-controlled factory, away from the construction site and transported to the actual site for assembly. A structure built following this methodology is stronger, faster and economical as compared to buildings constructed conventionally.

Talking about the uniqueness of Engineered Homes, Anis Ahmed, Managing Director, Interior Craft said, “This home is durable and technically superior and has all the certifications of clearance as per the safety and environmental norms issued by the concerned authorities. Available at about Rs 2,600 per sq ft, the company has so far taken orders only for farm houses.”

G D Goenka’s farmhouse in Sultanpur, Delhi is the company’s next project. DC Architects are the design partners and Raj Nandini Estates Pvt. Ltd is the marketing partner.

Developers like M3M Ltd, Ambience Group, Eros Group have used Interior Crafts’ services like railing, gates, canopy, staircase etc. However, this is the first time when the concept of assembling a house at the construction site has been witnessed.

Pune property options offer value for money

2012-04-10T21:25:00.000-07:00

India’s IT, educational and automobile hub is developing at a speedy rate, with improved infrastructure and a variety of housing projects, especially affordable ones. For home buyers, Pune serves as the next best destination for investment, say experts.

Looking at the eastern side of Pune, Kharadi, Wagholi and Hadapsar are the areas that are most preferred as residential destinations, offering a range of options for buyers.

Wagholi in the East, Undri, Pisoli and Mohammedwadi in the Southeast and Dhanori, Charholi in the Northeast are the upcoming locations in Pune, says Shantanu Mazumder, Branch Head, Pune, Knight Frank (India). He adds that Wagholi and Undri are the destinations to watch out for the highest return on investment and maximum buying of residential property is happening in Wagholi and Undri.

Prathamesh Dubhashi, who recently purchased a flat around Kharadi, better known as Kalyani Nagar Annexe, says, “Since the rate in Koregaon Park is skyrocketing these are the areas that one can look into if one wants to purchase a flat in this part of the city. The flat that I bought was within my budget with all the amenities.”

Prathamesh explains, “Kharadi and Hadapsar were a few of the areas that I looked at while buying the flat. They have come up very well in the last two or three years with good residential as well as commercial projects emerging. One can expect a lot more development in the next few years. From numerous malls and excellent hotels that provide good eating options on Nagar Road to entertainment options in Koregaon Park, everything is in the vicinity. It’s close to the railway station as well as the airport.”

“For investment purposes Kharadi is the best option with a lot of upcoming projects that suits the budgets of all. Now is the time to invest in these areas as the prices are expected to escalate greatly in the coming few years.”

For Kharadi, the proximity factor plays an important role. “The upcoming locations are Kharadi and Wagholi,” says Sanjay Bajaj, Managing Director – Pune, Jones Lang LaSalle India.

Citing the reasons for these areas, Bajaj says, “Kharadi has come up because of its proximity to EON, Magarpatta, Commerzone, Gigaspace and Espace IT parks as well as its good connectivity to the airport, railway station and other places. It also has the best of Pune’s malls like Phoenix Market City, Inorbit, Jewel Square and Amanora in its neighbourhood.”

“Wagholi presents buyers with a clear affordability and value-for-money factor and also has extremely high investment potential.”

Pune west has also seen great improvement as the east and the areas responsible for this are Wakad, Kondhwa, Baner, Hinjewadi, Pirangut, Balewadi and Tathawade.

“The upcoming locations in the west are Wakad, Balewadi and Tathawade, and Wakad is one of the destinations to watch out for investment. Maximum buying is happening in Wakad and Hinjewadi,” says Mazumder.

Abhishek Rajagolkar purchased two flats in the last few years, both in the western corridor of the city, Hinjewadi and Pirangut. He says, “I needed a spacious place and the price ratio worked better in the flats available in these areas. It is the fastest developing part of the city. The IT and automobile boom has led to some very good projects in this area. Purchasing property here has been a good return on investment for me. It’s also closer to Mumbai. The upcoming industries and the proposed airport at Chakan will also foster the growth in this region. One big investment and this region will come up extremely well. Maximum buying happening in Pune as of now is Hadapsar and Kharadi in the eastern side and Baner, Wakad, Hinjewadi, Pirangut on the western side.”

Bajaj says, “Hinjewadi has two market drivers – its proximity to Mumbai and the employment opportunities that IT giants like Wipro, Infosys, Cognizant and Tech Mahindra have created in this belt.”

Shruti Sengupta purchased a flat in Kondhwa. She says, “We wanted a flat in this part of the city as its closer to my office. The rates in this area were lower than most of the surrounding regions. It is also very peaceful and full of greenery which attracted us a lot. It also offers easy accessibility to M.G Road, Koregaon Park. Also, it’s a self-sufficient area with malls and eating joints near-by and railway station and airport at vicinity.”

Ravet has also come up and has benefitted tremendously. Stating the reasons for the improvement, Shveta Jain- Director, Residential Services, Cushman & Wakefield – India, says, “The development in the area is in a much planned manner. Located in close proximity to Mumbai-Pune Expressway, it is considered to be an entry point of Pune. This area is being looked forward by the information technology (IT) professionals, as well as by the industrial work force, as it has easy accessibility to the Hinjewadi IT Hub, as well as Pimpri-Chinchwad industrial belt. The construction work on the 45-metre, grade separated, and non-signaled four lane Bus Rapid Transit System (BRTS) route joining Ravet to the up market Aundh is in full swing. This road will bring down the travel time to Aundh to less than 10 minutes. The industrial belts at Pimpri, Chinchwad, Chakan and Talegaon are now within easy reach from Ravet. With quality electric supply, as well as water supply, the precinct of Ravet holds an edge with respect to the other locations.”

Mazumder concludes saying, “With the growth of the economy in Pune, residential property rates in Wagholi, Undri, Wakad and Hinjewadi will only head northward.”

Occupancy Certificate not mandatory for small builders in Hyderabad

2012-04-10T21:24:00.003-07:00

Occupancy certificate will not be mandatory for buildings which come up on plots up to 100 square metres with height up to seven metres. The exemption is given to small builders as occupancy certificate (OC) is directly linked to electricity and water connections.

The amendments were incorporated in the new GO on Building Rules issued by the Municipal Administration and Urban Development (MA&UD) department on Saturday.

Also, civic bodies like Greater Hyderabad Municipal Corporation (GHMC), which releases building permissions, should communicate the approval or refusal of occupancy certificate within 15 days. If any officer fails to communicate, the civic body could initiate action against the officer. The GO said occupancy certificate might be issued to owners after collecting compounding fees, if there are any minor violations and deviations from the sanctioned plan.

For high-rise buildings, the OC should be released by the civic body after inspection and getting fire ‘No Objection Certificate’ from the AP State Disaster Response and Fire Services department. Until now, the town planning wing used to give OC without fire NOC. Two buildings where fire accidents were reported recently found to be having OC sans fire NOC.

The MA&UD department has also prepared a pro forma for commencement notice, completion notice and occupancy certificate by giving more clarity. The pro forma have been prepared so that a civic body could also receive them online.

Environmental impact assessment provisions have also been incorporated in the new buildings rules. As per the GO, buildings and construction projects that come up in 20,000 sq metres area and 1,50,000 sq metres of built up area and township areas development projects covering an area of 50 hectares and or building up areas of above 1,50,000 sq metres should get environmental impact assessment.

Director of Town and Country Planning (DTCP) B Purushottam Reddy said awareness programmes and meetings would be conducted across the state soon for licenced architects, town planning staff on changes in the buildings rules, especially on setbacks and road widths.