Will General Budget Fuel the Realty Growth?
Feb23

Will General Budget Fuel the Realty Growth?

The year 2014 did not see an exponential growth in the Indian Real Estate market. However, with the formation of the new and stable government at the center, the sentiments have revived. The new government has laid emphasis on key factors controlling this industry and announced numerous short and long term measures to boost revival in this sector. What the homebuyers and investors will experience in 2015 is affordable housing, increase in tax rebate on interest repayment of home loan, lenient FDI norms, an increased income tax exemption slab and development of 100 Smart Cities. According to a survey conducted by the Industry Experts, the year 2015 will experience a sharp, positive growth trend from the previous years, which will stabilize the property market to a great extent. The survey reveals 39% homebuyers want to buy a property for self use as they are currently staying in rented accommodations. An additional 1/3rd portion of the homebuyers want to purchase property to meet the mounting family needs. Whereas, only 14% buyers want to purchase an asset for long-term investment, and 5% consider their asset as a short term investment tool, for a period of 2-3 years. These statistics indicate the positive and hopeful mood of the investors, which the new government is eager to build upon with its governance and strategies. The Central Bank predicts a 6.5% GDP growth in the FY2015-16, which puts Corporate India in the fast lane. It has made apparent that a steep raise in jobs and incomes will be witnessed all round the year. And, this indicates that the Indian Realty sector will boom as the demand for both residential and commercial properties will skyrocket. In 2015, Construction companies will be more transparent in their offerings on property sizes and the prices. This year, smaller, yet energy-efficient designed homes will rule the residential real estate market. A correction on over-priced cities will help in quickly clearing the stagnating inventory, paving way for new and better residential spaces. Townships will become widespread, and a moderate in increase in the construction of luxury homes will be seen, with emphasis on affordable housing for all. Affordable Housing: The new government at the center is expected not resort to “mindless populism” in the FY2015-16 Union Budget. This implies that the new government will not burden the Indian population with high inflation and will take stringent measures to improve employments and incomes. The economic revival in 2015 will positively affect the Indian Realty sector- with affordable housing being the motto and buyers and investors having a greater purchasing power. The new government has strongly indicated that good governance, better planning...

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Bangalore Real Estate Price Trends Analysis
Jan26

Bangalore Real Estate Price Trends Analysis

Bangalore being one of the most important cities of the entire country has witnessed massive growth in terms of Bangalore real estate over the years. This doesn’t just mean in the IT sector. The growth has been exponential in all infrastructural sectors which include the civic and social. The civic infrastructure has seen growth with the high population which Bangalore currently holds. It has given the children varied aspects of life and as a whole the city has done a marvelous job at preserving the future of the young minds. You will find that the city holds true to its values and norms and has provided children with the shared community vision. The society as a whole thinks of them as a family. This leads to everyone making contributions and taking a step to ensure a better future. This is one of the most fundamental facts when it comes to civic infrastructure. When it comes to social infrastructure Bangalore has also taken large steps to securing the care and importance which this sector provides. It has given its all in the medical sector with hospitals and dispensaries being opened in a variety of areas. With many other types of social infrastructure being opened in parts of the city the economical stability of the city has also gone up. This has resulted in better social environment. Also with the rise of the IT sector in Bangalore over the recent years, it has been witness to a large upward movement in terms of economy. This doesn’t mean that commercial office spaces have been abandoned. They are also there and are rising in numbers. Bangalore as a whole has taken the real estate to a whole new level with careful town planning and expert guidance regarding real estate. Analysis of Bangalore real estate in 2014 The Bangalore real estate market saw significant growth during the July- September 2014 period. It resulted in a huge growth and that gave opportunities to real estate agents and people to look for new properties. This was the case in all sectors except for the North as the North saw a marginal dip in the period except for Vidyaranyapura which turned out as the highest gainer within the sector during that period. However all other sectors saw increase in the real estate market. The south Bangalore region showed a hike of 9 percent and the popular real estate stars were the HSR Layout and the BTM Layout. The price appreciations witnessed were more than 30 percent. The west region came to a close second place with the hike of 24 percent due to the Rajaji Nagar project...

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Connectivity Opening Up Bangalore Suburbs for Development
Dec11

Connectivity Opening Up Bangalore Suburbs for Development

No one who sees the bustling cosmopolitan structure of the Garden City is going to believe that it was once a Pensioner’s Haven! Considered as the Asia’s Silicon Valley the major transforming point for the city has been the emergence of the IT/ITES Sector. According to online statistics published at the beginning of this year, Growth rate of IT/ITES in the city is the highest showing double digits Current population of 9.6 M is predicted to grow to 14,000,000 in 2021 Presently, 2840 IT & ITES companies are operating here Out of the total 100+  are  Fortune500 companies Additionally, 90% of the people presently residing in the city belong to the working class. This shouldn’t come as a big surprise because Bangalore incorporates 31+ industrial hubs housing PSUs, private IT/ITES, Textiles, Biotechnology, Aviation, and Engineering companies. Not to neglect the education sector, this high-tech city boasts of 620 colleges and over 5,400 schools. This has led to an equalizing of educational growth quality with constantly growing living standards of the residents here. It is home to some of the renowned institutes; such as IISC, IIITB, IIMB, ISI, NID, and NLSUI. Also, Bangalore has the distinction of being the largest outsourcing hub in the whole world as well as an End User Core Market. The commercial and social infrastructure here has helped get to achieve the tag of, WORLD CITY having ample scope for Retail, Hospitality, and Entertainment options. All this coupled with the pleasant weather all around the year makes Bangalore one of the best places in India to settle down. No wonder, the city has been witnessing a 13% stable annual average appreciation price rate for residential sectors during the past four years. Along with the high developments in the core areas of the city, the suburban areas are also seeing a spurt in Bangalore real estate market growth in recent years. So, what is driving this growth and development? Bangalore has a key advantage over other metros in South India. Expansion in this city is possible in all the FOUR directions!  Infrastructure developments have remained the lifeline. It has led to increase in connectivity between different regions and has opened up the inaccessible areas spurring growth. Some crucial infrastructural projects undertaken in the recent past include, Elevated Expressway Bangalore International Exhibition Center (BIEC) Bangalore-Mysore Infrastructure Corridor (BMIC) Peripheral Ring Road Metro Rail Development Phases – I & II How these major developments have affected the Bangalore’s Property Market Bangalore real estate market can be divided into the Northern and Southern areas. Most of the big industries are concentrated in the northern regions of the city especially close...

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Why Real Estate Investment is More Attractive Now!
Dec02

Why Real Estate Investment is More Attractive Now!

Post recession, the real estate sector in India is taking an upturn and is expected to grow at a rapid pace from the current USD 14 billion to USD 102 billion in the next 10 years. In fact, the last few months have witnessed a boost in real estate Investment. The growth can be attributed to increasing purchasing power, strengthening economy and demographics, easy availability of loans from banks and housing finance companies, falling property prices, government reforms, and professionalism in real estate sector. On the other hand, real estate developers are increasingly stretching their capacity to meet growing demand, which has further encouraged the development of big projects with the aid of sourced financing. Traditionally, the property market was fragmented and unorganized. However, the recent past has witnessed consolidation of positions, with large real estate developers taking strong initiative to drive the market. Furthermore, there is increased availability of market information and transparency, thus, pushing the real estate sector towards organized market form. What’s Driving Real Estate Sector in India? Discussed herewith are the reasons that are driving the real estate boom in India – Booming Indian economy with an accelerated Gross Domestic Product of 8% per annum Increase in disposable income and growing middle class, leading to an increase in demand for residential real estate.   This    can boost the real estate investment in India State-of-the-art infrastructure facilities, with excellent roads, highways and flyovers, transportation, educational institutions, hospitals, hotels and restaurants, and more India is emerging as a promising offshore destination, with easy availability of highly skilled engineers and technicians Development of giant captive units in India, including major players like HSBC, Prudential, GE, American Express, Bank of America, and Standard Chartered Easy availability of home loans from banks and housing finance companies Government initiatives in promoting Foreign Direct Investment in real estate sector; development of Real Estate Investment Trusts (REITS) Falling property prices in different categories Professional players entering the real estate sector, well-equipped with knowledge and expertise in property development Growth of IT/ITES sector Foreign Direct Investment in Real Estate Sector The NDA government, in July 2014, announced an array of initiatives to spur real estate sector in India, including a reduction in size of projects eligible for Foreign Direct Investment (FDI) from 50,000 sq meters to 20,000 sq meters, allocation of INR 7,060 crore for real estate development in 100 smart cities, and limiting minimum FDI investment to $5 million. Government reforms to attract FDI in real estate sector, particularly in the affordable housing segment, will bring lucrative opportunities, improving the delivery and quality of low cost housing projects in years to come. Relaxation of...

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India is Gaining Real Estate Investors Again
Nov03

India is Gaining Real Estate Investors Again

Influenced by a strengthening economy, political stability and lucrative pro-business strategy of Prime Minister Narendra Modi, the real estate industry once again lures investors. Foreign investments (FDI) have begun returning to the country after fleeing in the wake of the financial crisis. Despite the memories of losses are still vivid, real estate investment in India is ringing. There are several reasons behind the rapid boost in domestic and foreign direct investment, lower rate of interest, introduction of Real Estate Investment Trusts, falling property prices, and new government regulations for real estate investment being some of the major factors. Real estate in India opened its door to foreign investment in the year 2005 and since then, it has witnessed inflow of about 10.5$ billion. 2007 to 2010 has witnessed highest FDI inflow; however, post 2010, it started declining. Political uncertainty, high interest rates, liquidity issues, and wary sentiments of investors had underpinned the real estate sector post 2010. Despite that the market is still open and due to depreciation of the Rupee, foreign investments are yet to gain rapid momentum. With improved scenarios and better prospect for profits, it is expected that the India realty sector will again see a bright future. Foreign Direct Investment in Real Estate Liberalization of FDI norms in real estate sector is one of the major economic policy decisions taken by the Government of India. Earlier, only NRIs and Persons of Indian Origin were only permitted to invest in real estate and housing sectors, whereas foreign investors were only allowed to venture into integrated settlements and townships, either through a joint venture company in India or a wholly owned subsidiary. However, the Ministry of Commerce and Industry issued Press Note 2 (2005) series, providing guidelines for opening out Foreign Direct Investment in housing, townships, construction development projects, and built-up infrastructure. After a collapse post 2010 due to economic uncertainty and political upheaval, FDI is again gaining a boost in recent year as the Government promises better returns and improved investment scenario. Introduction of REITs Establishment of Real Estate Investment Trusts (REITs) in India is another significant reason behind attracting investment in realty sector, yet again. The Securities and Exchange Board of India approved REITs on August 10, 2014, expecting to contribute remarkably to growth, transparency, and accountability in real estate sector of India. REIT is a trust-like organization or company that owns and operates income-generating real estate assets, wherein the earnings are distributed to shareholders equally as dividends. The advantage is that they get special tax treatment. Introduction of REITs is expected to draw more FDI, contributing to radical growth of real estate sector and...

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Affordable Housing Projects for Gurgaon
Sep03

Affordable Housing Projects for Gurgaon

Industrialization in Haryana is growing at a rapid pace, much higher than the national average. Likewise, its Gurgaon district is fast emerging as an IT hub with Information Technology and IT enabled Services (ITES) companies flourishing swiftly. The Millennium City has witnessed a magnificent growth with rapid infrastructure development and industrialization. There are more than 500 large and medium scale units with an investment of over Rs 13,000 crore, and small scale units with investment of over Rs 4,867 crore. The new IT policy framed by the Haryana Government has also given further fillip to industrialization, providing more employment opportunities. Rapid technological change, low interest rates, and labor reforms are likely to increase productivity of industries in Gurgaon. Rapid infrastructure development is another reason why Gurgaon leaves a strong footprint on India’s total economic growth. All these factors have contributed to the exemplary growth in population in Gurgaon. Currently, the IT City is home to 1.8 million people, which is a whopping figure as compared to 1.7 million in 2013. Infrastructure development, industrialization, commercial development, and lucrative employment opportunities in Gurgaon are some crucial factors that attract population from around the country, leading to significant growth of the real estate industry. Gurgaon is primarily a luxury real estate market, offering properties at high-rocketing prices. Currently, an apartment in the Cyber City costs nothing less than Rs 75 lakhs, thus, dashing the dreams of many middle class families of owning a home. There are several factors contributing to substantial property prices in Gurgaon as mentioned herewith: IT sector development and rapid growth of large, medium and small scale units have created plenty of lucrative job opportunities in Gurgaon, catering to all trades High-scale infrastructure and commercial development, offering a decent standard of living Better transportation connectivity via Delhi Metro to Gurgaon and Noida, Delhi and NCR via Gurgaon, Qutub Minar-Gurgaon Metro Corridor, and the much-awaited Dwarka Expressway The city features outstanding commercial development, presenting posh hotels, restaurants, shopping malls, and more All these factors, not only attracts a huge population influx, but also contributes to an overwhelming growth in demand for properties in Gurgaon. No wonder, homes, commercial and industrial plots, and lands are exorbitantly priced in the city, among the highest in India. According to a latest report, property prices in Gurgaon have increased by an average of 4.5% across all projects over a 3-month period. HUDA Affordable Housing Policy Set to Make Homes Cheaper in Gurgaon It may sound outlandish, but Gurgaon, renowned globally for its luxury homes at sky-high prices, is now also concentrating on affordable housing projects in Gurgaon. Getting a cheaper-priced home in Gurgaon is...

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