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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Real Estate India: What To Expect In 2015?
Feb14

Real Estate India: What To Expect In 2015?

The real estate market of India has seen a lot of improvement in the past years, especially along the areas of Bangalore and Delhi. This growth has been due to many Non-Resident Indians (NRIs) making investments in the Indian Real Estate market. They have seized the opportunity and NRIs from Malaysia and Middle East countries have stormed the metropolitan cities of India, especially in the residential segment.  In 2014 Bangalore and Chennai witnessed the highest demands, with NRIs investing heavily in these real estate markets. Bangalore has been well known for its development in the field of IT and Infrastructure and it continues to prove as the leader in the country. Chennai also saw its fair share of real estate market profits with new projects launching and getting sold very quickly. The market may not have boomed as much as Bangalore, but it was second in terms of the entire country. However, there have been newer project launches towards the end of 2014, which was true in case of every metropolitan city. There is also a backlog of property from 2014 as we head into the New Year 2015. The year 2014 had witnessed delays in projects clearance and funding. Many projects which should have started in the middle of the year were forced to start near the year’s end because the important paperwork was not approved in time. However, there were a significant amount of profits which came from the real estate market in 2014. How important is Real Estate in India? In India Real Estate plays an important role and it is not just because of housing needs, even commercial spaces are in huge demands, with foreign companies launching their offices. Here are some of the reasons why the Realty sector will move forward in the New Year. The Economic Survey of 2012-2014 period indicated that housing generates the maximum amount of employment after agriculture in India. This is a vital reason why real estate is given a heavy-duty importance in the country. The cities of Bangalore and Delhi are witnessing the growth of IT & Corporate sectors, and subsequently the need for robust residential and commercial infrastructure has become the need of the hour, for the companies to launch their business here. The building material for construction both residential and commercial complexes are provided by the country’s steel, cement, brick industries. These markets are simultaneously booming because of the infrastructural growth. India has been known to have real estate as the third best industry in the country; its effect on other industries also grows extensively when it comes to employment and revenue generation. The real estate...

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Gurgaon: A Rising Star in Delhi-NCR Real Estate
Feb02

Gurgaon: A Rising Star in Delhi-NCR Real Estate

According to the industry experts, Delhi-NCR real estate, with its business opportunities and economic development has remained the top choice among real estate investors for some time now. Spread across approximately 34144 km². It includes National Capital Territory (NCT) Delhi with selected areas of neighboring Rajasthan, Haryana, and Uttar Pradesh. Key micro-markets among these are NOIDA towards the east and Gurgaon towards the south. Location proximity to Delhi, enhanced connectivity, talent pool, and land availability has inspired both international and local businesses to establish their offices in this region, thus initiating real estate development in return. Gurgaon Realty a Front-Runner Information and Credit Rating Agency of India (ICRA) researches indicate that New Gurgaon and Golf Course Ext. Road remain highly active when it comes to micro-markets in the Delhi-NCR real estate. In the recent times, Gurgaon market has witnessed maximum number of launches. Total development area here was 66.1 1 million sq ft as per March 2014 results. Of this, 40.7% land area is from New Gurgaon and 31.6% from Golf Course Ext. Road. DLF Societies: Over the years, the city has witnessed a consistent rise in the number of DLF Societies. This Includes DLF City, Phase II, Phase III, and Phase V. According to the recent statistics, DLF City and Phase II witnessed 108% and 105% capital value rise respectively in 2014 Q4 compared to 2010 Q4. Availability of various recreational options and better infrastructure may be spurring on growth here when compared to the other parts of Millennium City. Golf Course Ext. Road: This is no doubt is the jugular vein here! The DLF redevelopment scheme is all set to make this road among the best in India. Plans are there to link it to Cyber City via 16-lane corridor. It is home to approximately 40 or 50 housing projects. So it’s no wonder that it has shown a 103% increase from 2010 two 2014 quarter to quarter. Besides the new developments, old locations in the Delhi-NCR real estate region has also shown substantial real estate growth with Metro connectivity and improved road infrastructure with a slew of residential projects both ready and in the offing. The main real estate development is concentrated in such localities as Palam Vihar, IMT Maneswar, Sector 106, South Peripheral Road, with Sectors 69-92. A.   Palam Vihar: This region has witnessed a 133% increase in 2014 Q4 to 2010 Q4. Being Old Gurgaon locality, it boasts of lower base rates at, Rs. 3000/square feet in the beginning with an increase in capital appreciation values parallel to the overall growth here. Great connectivity with Jaipur and Delhi, with improved infrastructure, and Metro availability...

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Expectations of Delhi NCR Property Trends in 2015
Jan19

Expectations of Delhi NCR Property Trends in 2015

Housing projects have had a booming turn in for a few years now in all the metropolitan cities of India. You will see foreign clients as well as domestic clients eating up the real estate like anything. With newer projects starting every week and it sectors also showing a substantial increase. It is safe to say that India will see its fair share of real estate business in the coming years as well. The housing sales may even jump over the top this year, with housing projects being opened in industrial towns as well. This is especially true in case of Delhi, where you will see that housing projects have started and will continue to start in the industrial towns of Faridabad and Bhiwadi. The inflation in the price can be severe with good turn in when it comes to the metropolitan cities and Delhi is no different. Property Trends in 2014 Political issues were a major factor for the downfall of the Property Trends in Delhi in 2014. The political instability which was caused due to the country wide elections shot any hope of real estate development and market. It was not a good time to go in for real estate and the market suffered a lot. This was true in every popular region of Delhi inkling Gurgaon and Greater NOIDA. The housing sales fell to a shocking 1.75 lakhs units during 2014. This was a big decrease in the real estate market and effected current projects which were going with uncertain views regarding the prices which would be set. This was 2.5 Lakhs less than the previous year’s record. Due to this downfall the suppliers are believed to have been taking fewer chances and making sure that the properties which are being developed have a high chance of getting sold in 2015. Due to this the many to do projects have halted and only ongoing projects have been going on. The uncertain planning for 2015 will be noticed when the decline comes down to a 2.18 Lakhs a year unit compared to the 2.2 Lakhs units of 2014. Also, many backlog projects which had been completed, but were not able to be sold will be cleared off finally in 2015 due to the slight decrease in the price tags. This will ensure that the real estate market increases in value, with both pending and upcoming projects moving towards completion in 2015. People will get great deals and the popular places in NOIDA, New Gurgaon and Dwarka Expressway, Indirapuram (Ghaziabad), Faridabad, Bhiwadi will be selling like hot cakes. 2015 Property Trends in Delhi Delhi has always been a...

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Realty Trends – Luxury Properties Picks Up While Affordable Lose Sheen
Dec17

Realty Trends – Luxury Properties Picks Up While Affordable Lose Sheen

Staggering yet true, the recent property trend is reflecting a fall in demand for affordable properties in India, while the luxury segment is rapidly picking up this season. Demand for affordable housing properties in the budget range of up to INR 40 Lakhs has been remarkably low at national level, at only 1%. At cities, demand in this segment has been fluctuating between 1-5% only. On the other hand, the supply of affordable housing properties is increasing at a fast pace; thanks to increased liquidity of banks and lucrative returns promised by the Government to attract more developers in this segment. And this has further worsened the scenario. The gap between demand and supply in affordable property segment has been most glaring in Hyderabad and Chennai, with an over-supply of 17-19%. However, much to the surprise, demand for luxury properties is picking up gradually. At the national level, the rate of growth in demand in luxury segment has been around 30% for properties at Rs 1 crore and above. Increased demand has also been witnessed for properties in INR 30-50 Lakhs category, demonstrating the middle class’s willingness and ability to buy. Despite of growing demand, even the luxury segment continues to remain over supplied in most cities except in NOIDA and Gurgaon where the supply matched demand in the luxury segment, and Ghaziabad, where the supply of luxury properties is lagging behind demand by around 11%. Over the last few years, luxury properties have been abundantly launched in India, with metropolitan cities being the major target destinations. Most developers have premium property projects in their portfolio since profit-per-apartment is remarkably higher in this category and also promises increased capital appreciation in the long term over other property assets. As a result, there isn’t a dearth of luxury properties in India, with demand also picking up gradually. For buyers, the advantages of investing in luxury homes are primarily inspirational since now their homes reflect their socio-economic condition. It has become a lifestyle statement to own a luxury home, and even the middle class is not shunning back from this. Increasing Purchasing Power of Buyers As India demonstrates a strengthening economy, gradually pulling up from financial crunch, and witnessing a growing influx of multinational companies, there is a significant rise in income in the country. Furthermore, the IT/ITES sector is rapidly developing, bringing in a huge influx of interested property buyers with the ability to invest in luxury homes. Now, people have more money in hand and subsequently, their lifestyle patterns have also changed. Over the years, the amount of High Net-Worth Individuals, with a fatter paycheck, has increased in the...

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