10 Investment Planning Tips in Gurgaon Realty
Feb10

10 Investment Planning Tips in Gurgaon Realty

Gurgaon has been a well known spot for real estate for some time now. It has one of the most booming real estate markets in Delhi-NCR. The “Millennium City” offers a plethora of residential and commercial projects as per the buyer’s budget. For a strategic investment in Delhi-NCR region, Gurgaon realty is the top destination, with options ranging from luxurious villa or a spacious yet affordable apartment, here. But, you need to make a wise buying decision and here’s how. Investment Tip 1: Areas that will reap good Returns on Investments (ROIs) Although Gurgaon realty as a whole offers unique and lucrative investment opportunities for buyers and investors, yet there are a few areas in the “Millennium City” that will offer a higher ROI. These localities include Golf Course Extension Road, Dwarka Expressway, and Southern Peripheral Road that offer Smart Townships for housing both residential and commercial properties. The Southern Peripheral Road in particular has had a booming real estate market for the past few years with newer projects rapidly emerging. Patatudi Road is yet another great hot spot in Gurgaon, with bright investment prospects. This area is linked with the Dwarka Expressway and thus commuting to and fro Delhi-NCR is not a challenge. The Dwarka Expressway is another great option for affordable housing segment. It shares its proximity with the Indira Gandhi Internal Airport (IGI) and Gurgaon, and thus the transport system here is good, with public transport plying in every few minutes. Gurgaon realty is an upcoming hub for multi-national companies and IT, and thus several reputed developers can be found here with their top-notch residential and commercial projects. Buyers and investors can buy good residential or commercial property that promises good ROI. Investment Tip 2: The First Time Buyer First time buyers should research well before purchasing a property in Gurgaon, else the chance of getting scammed is high. Here’s a story to ponder over. A few investors had booked a 1,000 sq feet office space in a renowned commercial area, only to be disappointed in the coming times. They had paid an enrolment fee of Rs.2 Lakhs for the space in 2010, and were told that they would get a launch price of Rs. 40 Lakhs when the project would finish. However, the project didn’t take off for more than a year and the builder kept reassuring the investors, their investment had risen in great value. But, investors had doubts and wanted to pull out after 2 years of long wait, but they had signed up a bond with the investor, which would prevent them from receiving the maturity amount of Rs. 40 Lakhs. Later...

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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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Real Estate Expects Industry Status in Modi’s Rule
Nov06

Real Estate Expects Industry Status in Modi’s Rule

The real estate business in India is gearing up for a new lease of life following the presence of a stable government at the centre. A strong voice, clear agenda, and defined goals were needed for a long time. It seems that finally the country has achieved success, with the clear-cut victory for a single party in 2014 General Elections. Now, political stability may just be the right initiator for increased investments in this long-suffering sector. Real estate sector in India has been pining for an industry status for some time now! The overwhelming majority garnered by the Modi Government could be the triggering factor to achieve this. However, this is not the only issue that needs attention. A volatile political regimen leading to sky-high interest rates on home loans, surging inflation, scarcity of affordable housing, and tax reforms are just some of the problems that presently afflict the Real Estate Sector. An industry status will surely help to organize this field, currently in disarray, the main reason behind its myriad woes. People engaged in the Real Estate sector are hoping for strong remedial policies in the coming times. The good news is that, a wave of changes has already begun, and with stability at the centre, things are looking up. As reported by a leading daily in Gujarat, Sensex has hit all time high of 26,000 points i.e., a 45% profit margin across all stocks, since the new government came at the center. Housing new units has witnessed 43% increase in 2014 first-quarter Prior to general election in March inflow of foreign investment rose to $3.53 billion, doubling up from $1.52 billion from same time in 2013 Economic Times recently reported that over $1.8 billion is being raised today for investments in the Indian Real Estate sector. This surely is good news for real estate investors in the country. Expectations of the Realty Market With investor sentiments back in the realty market, one can expect a revival in office space and housing demands in the near future. People belonging to the sector are keeping their hopes up waiting for crucial remedial policies to attract the recalcitrant homebuyers and revamp sales. In the home loan scenario, an ideal situation will be a reduction in the related interest rates or increase in exemption rates, which is currently 1%. Also, the real estate sector wants an implementation of Goods and Services Tax (GST), which in turn will provide GDP growth stimulus and streamline the economy. Further, the total Delhi-NCR market needs proper structuring for attracting FDI. Much needed control on inflation, clearance single window system, and easy licensing are what the...

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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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Real Estate Roundup of Delhi & NCR
Sep11

Real Estate Roundup of Delhi & NCR

The capital of India, Delhi, and the National Capital Region, which includes Gurgaon, Noida, Greater Noida, Ghaziabad, Faridabad, and now extending towards Bahadurgarh into West, Bhiwadi/ Sohna in South and Sonepat in North, is an enviable realty destination for residential and commercial spaces. Well-developed infrastructure and improved connectivity via Delhi Metro, National Highway 8 and expressways, fantastic business opportunities, growth of IT/ITES sector, lucrative employment opportunities, and other amenities make Delhi and NCR a viable property investment option. Of late, home loans have become more easily available; there have been lesser restrictions on Foreign Direct Investment (FDI) in the Real Estate market. All these factors have further contributed to an exemplary growth of the real estate market in Delhi and NCR. Delhi and NCR – A Lucrative Real Estate Destination   During the period 2011-2014, Delhi-NCR has witnessed a 22% appreciation in capital values in mid-segment, while it is 24% in high-end property market. Furthermore, State Bank of India, one of the largest banks in India, has significantly reduced the interest rates on home loans with effect from 20th December 2013. Opening up of the realty sector to FDI in 2005 has further increased capital inflow in the market, boosting commendable growth in recent years. Despite of property price hikes in Delhi and NCR, demand continues to grow, owing to the increasing population influx, infrastructure development, business and employment opportunities, and modern facilities like health, education, transportation, and other amenities. Recent Property Market Trends in Delhi & NCR Let’s have a glimpse of latest realty trend in Delhi and NCR Delhi The capital city of India has captured overwhelming attention of real estate investors and developers in recent years; thanks to the phenomenal growth of the real estate sector in Delhi. Rapid infrastructure growth, modern facilities, better connectivity, easy availability of home loans, lower interest rates, and Foreign Direct Investment in property market are the major driving forces behind outstanding development of realty sector in Delhi. The city has always been one of the most robust and influential real estate markets in India. Total number of new residential projects launched during the first half of 2014 stands at 20,700. The secondary market has several residential properties that are at the completion stage, available at comparatively lower rate than new property launches in main sector. The residential market has been more cyclical in nature as compared to the commercial realty market. Phenomenal development in infrastructure over the years is one of the major reasons behind the exponential growth of realty sector. In addition to the Delhi Metro, National Highway 8, and a multitude of expressways, the Delhi government is considering...

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