Where to invest in real estate?

It is usually said, it’s very hard to earn money, and you get to know the value of money, only when you, yourself starts working. And the most important question arises, where to invest this money, so that to have the best of the profits, out of the investment. Some people invest in gold, mutual funds, retirement plans, etc. But the most prominent, and the widely accepted investments these days are done in the real estate sector. People are getting very much attracted towards the benefits gained from the real estate investments. The increasing development in the country is resulting into the increase in prices of the property in different areas. The properties are generally divided into two categories, commercial property and residential property.

The profits and the benefits gained out of both of the property types are very encouraging for the people in the real estate sector. Investment in real estate sector can become a source of regular income for the owner, which is possible only in case of rented properties. Therefore, using the property for rental purposes is the most promising investment in the real estate sector. This investment can be utilised both for commercial and the residential properties. The investment can vary according to your income and the salary earned. Also, there is a great demand in the Indian market for the rented properties. Especially, all the metropolitan cities have become the premium place for trade in the country and are hub for major brands and companies of the world.

Many office buildings, mall shops, residential rooms are taken on rents, because of its huge prices. Also, the prices for rental properties is also very high and if you are the owner of the property, then giving it on lease in cities like Delhi and Mumbai, can fetch you a handsome amount of money. This has actually become a fashion status these days, and people are getting richer by earning every month or after a fixed duration, which is actually a cherry to their usual salary they earn at work.

Bollywood fame adds to the prices of the land

Actors, actresses and even the whole film industry have a major impact on the lifestyle of the Indians and the people across the globe. Whatever our actors do becomes the style statement of the common man. Every time, we are in search of things which have the impression of celebrities on them and which are endorsed by them, because in one way or the other, it adds credibility to the product with their presence. By using such properties, we tend to add on to our status in the society. Because for sure, the property or the material, which has been used or promoted by the celebrities, has an additional value to it, which if purchased by the common man, correspondingly adds to the status of the person in the society.

Same ways, these days, the prices of the real estate properties are rising with our Bollywood people visiting or shooting in different parts of the country. Like, what happened recently, a small village in Peepli, and the after effects are such that every single man is planning to buy land in that village. The place has gained popularity in a very short span and in the last one month, the demand of farmlands in the area has increased rapidly. This is only because of the movie, ‘Peepli Live’, Amir Khan’s production, whose name is on village. Peepli, scene is a very recent example, but there are many other places, which became popular with the visit of the celebrity at that place.

The real estate sectors, surely gains glamour, with the addition of a celebrity name to its property. Whether it’s our favourite M S Dhoni’s name attached with the Amarpali group, or some other celebrity endorsing a real estate property, reference of an actor name with the property makes it more valuable and increases its demanded manifold.

Delhi and Mumbai surveyed as the top 50 global cities

The on- going developments in our country, have already made us proud and is making the country reach the minds of the people across globe. The hosting of common wealth games by India is a pure example, which states the accomplishment of India as a globally accepted country. Now, our country has added one more achievement in the list of its successes, with the two metropolitan cities, Delhi and Mumbai, securing its place in the top 50 global cities of the country. This is surely one of the biggest achievements, as this paves the way for further development of our country. This is according to a report generated by the Foreign Policy magazine in partnership with A T Kearney and The Chicago Council on Global Affairs. 

The report signifies on the fact, that smart growth is the criteria, for making the country grow and achieve global stature. Earlier, our country has always been counted among the under- developed and poor nations, but with the developments in the education, technology, real estate and others sectors, the country has shown exponential growth in its overall economic situation. The infrastructural and the architectural lay out of these cities are also the factors, which contribute towards this accomplishment. Few of the other factors which credits for this are the business interaction of the cities globally, influence of the cities on global markets and the innovations it has done to make the world proud. 

The cultural practices and the acceptance of the cities across the borders is also must and the humbleness possessed by the people of the country, adds to its growth and global prominence. For the time being, we should be happy with our cities being listed in the top 50 global cities and in future, should make every possible effort to make it reach the top five global cities.  

India and china- top destinations for investment in real estate

In the recent times, the whole world has faced slowdowns and setbacks in many of its industrial sectors, which has affected their entire economy badly. Sectors like real estate, IT, have faced great losses due to the recession period, resulting into the loss of jobs by many people. Countries like US are still under the stage of recovery, but India and china are two countries, which has been the fastest in terms of resilience. Due to an immensely large number of population and high demand, these countries have shown great recovery and have complimented the country’s growth by becoming the most popular market for real estate investment. 

According to a survey done by renowned companies of the world, India and china are preferred as the top most regions for investing in the real estate sector. This is due to the large population and the scope of growth and high demand for development in the countries. A large number of multinationals are setting up their offices in these countries, resulting into high demand for property and land. Increased requirement of residential units, and urbanisation of the areas, has lead to the strengthening of the real estate sector in these countries. 

The boost in the real estate market in India and china is also because of the high GDP growth of these countries. The lavishing salary packages of the people, has also resulted into the development of an urge for luxurious living in the citizens of the country. Real estate property is also considered as the biggest asset for investment, so people also believe in its power of growth and making money out of it. The increasing affordability status of the citizens leads to the instillation of hi-tech props in the houses, adding to the demand of technology approved housing facilities. 

These all factors, club for the reason of India and china, becoming the priorities for real estate investors across the globe. 

New Laws to Safeguard Rights of Property Buyers

Indian economy is reviving after the exit of the prolonged fiscal flu that slowed down the economies of the world. Our country is expected to generate growth of 8.5% this financial year i.e. FY 2010-11. The real estate sector has also come out of the hibernation mode and is already moving on the path of progress.

The property prices in metros and tier-II cities have been spiraling up with growing demand for property. Developers are more than happy to renew their pending projects and are even launching many more new ones. From now on, builders need to follow stringent rules aimed at promoting orderly development of the realty sector as well as curbing malpractices. But, many fear that implementation of new regulations is sure to become another reason for price rise.

The Real Estate (Regulation of Development) Act proposes the need for a regulatory authority and an appellate tribunal. This body would have the power to regulate, control and promote planned development, construction, sale, transfer and so on. A website would be maintained enlisting all project details to primarily safeguard public interest by checking fly-by-night operators.

1. The law proposed by Center last year asks developers to compulsorily register their projects. The builders would be required to furnish a bank guarantee of a certain percentage of the project cost to a competent authority. The failure or non-compliance in doing so should attract strict penalties.

2. The law shall make it mandatory for builders to execute a registered agreement prior to selling properties. Time over-runs are not to be shown lenience and so, builders will have to pay penal interest on acceptance of deposit or advance from the buyers.

The above law model is designed in a way that the rights and interests of property buyers are safeguarded.

Boom in Retail Realty Sector Awaits More

The retail realty is a new segment for Indian real estate with residential and commercial properties being the only focus in past decades. Though shops and offices have always been there, the element of grandeur, supreme quality and world class standards were introduced just lately.

The retail sector in India is quite huge with millions employed but the concept of organized retailing is contemporary. The ideas of mall culture and mall management are welcomed but are still at their nascent stages, expected to evolve with time. Even though it is a newfound thing, realtors and retailers are extremely confident about retail realty being a great hit in coming times. Retail property has been scaling new heights in recent years after being neglected for so long. Retail realty in India has come a long way from the time when their need was not even felt to today when they are being developed at a fast pace owing to the growing demand.

But, more participation is needed by developers, retailers and investors to expand the retail realty industry. Multi storied, swanky shopping malls with top notch brands in the outskirts of cities have been the only face of retail property. This sidelined presence of malls needs a breakthrough by taking them inside the city limits amongst the real shoppers. Even though, the trend of shopping complexes has been flourishing, much more needs to be done to take it to international levels. The consumers need to be well informed of malls being an actual place to shop and not only for hanging out at the weekends. Once this is achieved, the demand is going to spiral up considerably encouraging the development of retail real estate in India. The expansion of retail property is certainly going to generate employment in the sector.

Increment in salaries, lead to increase in the purchase of luxury flats

The betterment in the job industry is surely one sector, which has its direct influence on the rise of living standards of the citizens of the country. Good salaries, leads to better expenditure and hence a magnificent lifestyle. The increase in the income surely leads to a better lifestyle and a lavished version of everything we buy. The first and the most preferred option, which everyone seeks for buying is a high class and luxurious house. Buying a big house, in a posh society of metropolitan cities of India, is something, which everyone dreams for. But, to actually buy those houses is the game of the money. Excellent financial status is a must, if you are having good hands on money, then buying a luxurious property is not a tough task for you.

The increment in the salaries of the people around have made it possible for them to live upon their and the dreams of their family. Money has always been an issue for the Indian families, but with the growing status of the families in India, it is getting in their reach to buy a high tech and a luxurious home for themselves. Due to the increasing demand of the luxurious houses, more such projects are coming up to serve the demands. According to a study, around 8000 luxury housing segments are going to be built up by 2013. This will to an extent satisfy the housing requirements of the common man and will help in fulfilling their dream of living in a high class luxurious house.

Though the definition of luxurious housing differ from man to man and even every developer has his own characterization for a luxurious house, but the main aim of such houses is to provide high standard, comfortable and a safe living to its residents.

Metro Lines Lead to Higher Property Tax

The entry of Metro trains to Delhi, Noida and Gurgaon has sky rocketed the property prices in all three cities. The massive development in transportation comes across as a major boost to realty estate in Delhi especially. The property buyers will have to pay dearly in wake of the categorization of the colonies in Delhi.

A major change in tax slab is expected if colonies are categorized again depending on their proximity to the Metro. The colonies will be divided into five categories A, B, C, D and E based on infrastructural facilities like civic amenities, road network and proximity to metro now. There is also a grading system that defines which colony would fall under which category, for instance, those with grading of 89 or more are in Category A whereas others between 75 and 88 come in category B.

Besides re-categorization, the interim report of the 3rd municipal valuation committee (MVC) has also suggested a raise in property tax levied on rented commercial setups. It has proposed to levy property tax as in Category ‘A’ on 5-star hotels, multiplexes, commercial farmhouses, petrol pumps and malls. The tax rates will be as those charged for category ‘B’ for 3 and 4 star hotels ultimately adding substantial sums of money in revenue collection of MCD. In addition to this, it is also recommended that MCD should try to uplift its tax base since despite a whopping 40% hike in realty value in last few years, it has not managed to collect much.

The property rates in Gurgaon and Noida are also towering high with coming of Metro services to both the cities. The capital and rental values in Delhi and NCR are multiplying every year making them unaffordable though this makes them the most coveted and an ideal realty destination.

Delhi- most popular destination for the purchase of flats

Buying a real estate property for yourself, and for your family is one of the most important decision of life. The property can be a house, shop, land, or an investment, in one of the posh malls of the city. But, among all this, home is the place, which tops our purchase list. A house is the place, where we tend to spend most memorable moments of our life, which are cherished by us for the entire life. There are different factors, which we consider before the purchase of the land, such as location, hygiene, development, surroundings, price, etc. Out of all these, price or cost of the land is the most important factor, which enables us to actually purchase the property. It is but obvious, unless and until, your pocket will allow, you would not able to purchase a property.

So, the main thing is to locate a property, which is in your budget and also satisfies the above mentioned conditions. We all know, the property rates have been touching heights these days. It’s getting tougher for the common man, to buy a property for himself. Now here comes a good news for the citizens, as according to a survey, Delhi is the most popular destination, when it comes to buying a flat. It means the property rates in Delhi, are far cheaper and accessible than properties in many other cities. The survey also reveals that more of end users can be seen buying properties in the city, out of which most of them buys it for their personal use, followed by the people, who purchase houses or flats as long term investments.

It means Delhi is far economical from cities like Bangalore and Hyderabad, who lags behind the list, of the city, in which most flats are sold. This might also be because of the huge developments occurring in the city and it becoming as the favourite destination for people in almost all sectors of work.

Concept of affordable houses building up

House is one of the most essentials factors, which contribute towards the healthy living of an individual. A well organised and a beautiful house is the dream, which we see from the times, we start planning for our future. A well maintained house is an asset, which takes a large amount of time and effort to develop. All the members of the family have to contribute a lot for building up a house for themselves. Also, because of the prices of the real estate properties going high, it seemed more difficult to own a house. Especially, in a city like Delhi, where everything is just too costly, buying a house of your own is actually an achievement.

Trends have been changing and so are the interests and tastes of the people around. Keeping in mind, the budget and the demands of the common man, there have been houses developed which are in the reach of the middle class men and so that they can also own a land and structure their dreams into reality. There are houses available in the real estate market, which are quite affordable and people belonging to middle class and lower than also, can think to purchase a house of their own. These houses are quite comfortable and fulfil all the criteria’s for the dream house of a common man.

These affordable houses have started been build by almost all the top most real estate builders in the city. There are many new societies getting developed in delhi and its NCR’s, such as Gurgaon, Noida, Faridabad, Ghaziabad, etc. The societies built in these areas provide a very soothing and a happy environment for the residents to live in. More than anything else, a lively and a well developed area, with all the modern facilities is required these days. And all the property builders keep this point in mind, therefore, there are malls and markets around the societies and the houses built.

If we will keep on growing this ways, then that day is not far, when every Indian will own a house of his dreams!

Check the developmental potential of the land, before buying it

Before purchasing a land, we generally check the locality and the surrounding of the area. We tend to inquire about the people living in the areas around, the markets covering the place, or the factors affecting the health. But, have you ever researched about the developmental potential of the land before purchasing it. The land, on which you are planning to build your house, needs to be inquired on a number of factors, which helps in deciding the life of the property you are going to build on the land purchased. Some of the factors, which must be checked before buying it, are:

• The soil quality of the land
• General topographic features of the land
• The support of the soil with respect to the structure of the property you are planning to build on the land
• Land’s susceptibility to floods and other natural disasters
• Should check that the drainage system is proper
• The sewage system in that area and that the land has an easy access to the sewage system

If the above factors are not checked, then they can hamper the growth of your investment. The buyer is required to do a proper research before investing the money in the land. Purchasing property is one of the best investment deals one makes in his life, because it can never get demolished and no one can actually take it from you. So, all the above mentioned factors are important to check, so that the land does not become a curse for you rather than you gaining profits out of it. These points might not add to the outer look or beauty of your house or any other property type, but are very essential to bless your house with a long life.

The Emerging Real Estate for Senior Citizens in India

The real estate in India has been re-discovering itself since the past decade. It has become highly customized and customerized like never before. The property developments in India shifted focus from metro cities to tier-II, III and IV cities. The residential property market in India has always been adjusting to the changing needs of individuals and companies.

The large scale growth in property was first seen in commercial industry as the IT wave set in. It carried forward to residential sector to accommodate the professionals working in these industries and finally to retail, in order to create entertainment and recreation sources for them. The residential segment is the most popular realty sector in India with builders concentrating all their funds on housing developments.

‘Affordable housing’ being the buzzword, developers have been constructing international quality housing at cost effective prices. After meeting the needs of industries and investors, real estate is now all geared up to cater to the requirements of senior citizens. According to a report by Jones Lang LaSalle Meghraj (JLLM), the leading real estate advisory firm, homes for senior citizens is emerging as a new property market in India.

The report said that the status of seniors in Indian market is experiencing a sea-change due to their augmented financial independence and change in mindset. They are no longer considered withdrawn or financially dependent and thus, this segment holds immense potential. Indian real estate market is witnessing a new array of opportunities in building homes for senior citizens, with its unique needs and promises.

Out a billion, the population of senior citizens in India is around 10% and with the trend of nuclear families at its best, they need greater support in all forms. The housing segment has increased four to five fold in just few years and is still on a growth path.

NAR - India Annual Convention 2010 to be Held in Chennai

The NAR (National Association of Realtors) India 2010 second annual convention is to be held for two days on July 16 and 17. The venue for the convention is The Radisson Resort Temple Bay at Mamallapuram in Chennai.

Chennai Real Estate Agents Association (CREAA) is the aegis body for the two day meeting. The agenda for the convention is the introduction of best global practices in real estate sector in India.

Some of the objectives of the get together can be listed down as following:

(a) Promoting of code of ethics and fair practices among realty developers,

(b) Establishing a better understanding among stakeholders and others involved in the realty industry and

(c) Building strategies by formulating transparency in all business activities related to the huge industry.

It is believed that the convention will act as a great platform even for brokers pan India as a vision statement is said to emerge during the meet. Now known as consultants, the broking community is set to enjoy an elevated status ultimately raising the overall standard of real estate business in the country. Not only would the convention help add credibility to the realty business but also promote quality property transactions.

The speakers at the convention include Managing Directors of some of the rapidly developing realty builders like Olympia Park, Akshaya Homes, SSSDPL, Parsvnath and Prestige Group. The $35 billion real estate industry was at its best in 2007 with property developments and capital values observing an upward trend. After the recession, it is again back with a bang and witnessing an all time high with capital and rental values soaring high across the country. The demand for housing, offices, retail outlets, multiplexes, etc. is growing tremendously but the supply is not enough, resulting in inflated property prices.

India Realty Expo 2010 in Dubai : Spelling Success for Indian Real Estate

MCHI (Maharashtra Chamber of Housing Industry), a member of the Confederation of Real Estate Developers’ Association of India (CREDAI) is a prominent body of realty developers in India. It held India Realty Expo in Dubai from 3rd to 5th June 2010 to showcase properties of renowned Indian builders in order to attract NRI home buyers from the Middle East.

This Expo has not only helped NRI investors in exploring investment opportunities in the Indian real estate market but has also taken Indian property sector to an international platform. The residential, commercial and retail properties mostly from Pune, Bangalore, Mumbai and Goa were exhibited for affluent NRIs looking for investment back home. The properties put on display matched international standard living equipped with modern amenities like swimming pools, health club, play areas, etc. Since NRIs are used to living and working in a global lifestyle and environment, they look for properties in India on the same lines.

The realty exhibition has surely been a huge event with as many as 21 leading developers participating, all members of the MCHI and CREDAI Association. The event turned out to be a huge hit as it extended numerous golden opportunities to Non-Resident Indians to build a home in their motherland. Indian realty also gets to see huge money coming in from outside helping in further boom in the industry.

Since, the prices have stabilized post recession, it is just the right time to exhibit global standard property in India to foreign investors. Investors are now looking at investment options as the economy shows clear signs of recovery. Also, those with affluent incomes are coming forward to invest in their native land so that they can spend retirement years near their home towns and get a regular income meanwhile.

Be cautious with the real estate business

Daily we get to hear about the property deals made in the real estate sector of the country. Some deals are too high and some crashes down the dreams and expectations of the experts and the common man. The buyer and the seller, both have to be very cautious at the time of buying or selling the property. The developments and the new trends in the real estate sector have made a lot of changes in the pricing of the properties. The property dealers and the builders are also finding it difficult to understand the current ups and downs and how to satisfy the demands and expectations of the target audience.

The deals happening in the Khar housing society of Mumbai, is surely raising the expectations of the common man as well as the builders. In the old Khar society of Mumbai, 1BHK flats have been sold for 4- 4.5 Crore, which is invariably high. These flats are said to be purchased by Parinee Developers, a Mumbai builder, who is planning to build a hi- tech residential tower. He has planned to buy 37 flats for Rs. 200 Crore, containing both 1 BHK and 2 BHK flats. According to the experts, this step can create baseless hype in the price expectations of the properties nearby the Khar society.

Mumbai is already said to be the costliest market, when it comes to real estate. And steps like these can end up making the property dealers and the common man greedy. The industry needs to understand that this step is taken by just one builder to reconstruct the whole society again. This step, surely cannot affect the whole real estate industry and both the buyers and the sellers should not let their expectations exceed.

Property Dealers Wooing Investors

The real estate in India is witnessing a boom across all cities, be it metros or tier-II, III and IV cities. But, in places like Ludhiana where situation is not the same, property dealers are busy wooing realty investors by giving away freebies like cars.

The real estate giants who invested in property two years ago before the economy slowdown have not found any buyers yet. To release the blocked money of real estate developers, a two day property dealers’ exhibition was organized by Real Estate Bank of India (REBI). The first of its kind, the exhibition had 13 participants, all real estate dealers from North India. The property dealers whose older products remained unsold also participated in the exhibition to boost the sales and get returns on the investments.

The attraction at the exhibition was a lucky draw after every ten buys i.e. a Tata Indigo car. With registration by 350 people, property dealers are supposed to be gifting 25 cars but only after 10 ‘genuine’ deals. The results for the lucky draw are to be announced on June 29 as scrutinizing forms and studying backgrounds to identify genuine deals will take some time.

It is important to find the buyers and get the products sold for real estate dealers else it results in losses. This is why they sold few properties on special discounts like Rs. 100-250 per square yard off for on the spot buyers.

Real estate in India is on a revival mode where the steep fall in prices during last two years has started picking up. The construction of projects across all segments-residential, commercial and retail- has begun and the capital as well as rental values have also risen. Property market has become one of the most preferred investment areas in India.

Mumbai Racing to Build Tallest Residential Building

The city of glitz and glamour, Mumbai is gearing up to see world’s tallest residential tower with 117 storeys on 17 acres. Mumbai based real estate builders, Lodha Developers will release Rs.2,000 crores to construct the residential skyscraper in Lower Parel area of the city.

The World One project would not only cash in on the continually rising housing prices but would also be an iconic tribute to Mumbai. By launching this project in the financial capital of India, Lodha Builders are expected to surpass the current tallest residential tower in India constructed by Shapoorji Pallonji. Their twin towers, Imperial Heights are 249 metres or 60 storeys each located at Tardeo. Not only will it outdo India’s but world’s tallest residential building in Australia, Q1 building in Gold Coast at 323 metres and 78 floors.

Lodha building at 442 metres high is planned to contain 276 luxury apartments. It includes luxury villas with private pools, a high end shopping mall and an office building.
The homes in Lodha building aim at tapping the realty demand among billionaires priced at more than 10 million dollars. The project of such phenomenal magnitude could be available for none other than high net worth individuals at premium prices. This is sure to be a symbol of the arrival of India on the global stage and a landmark exemplifying the spirit of Mumbai to soar higher.

Lodha Group has been creating realty benchmarks by first offering a record-breaking bid of over Rs 4,000 crore for a six-acre plot in Wadala barely a fortnight ago. And, now the prestigious residential project expected to complete in 2014 is competing with Dubai’s Pentominium Tower. Developed by Trident International Holdings at 516 metres high, the long delayed project is announced to be finished by 2013.

Huge Investments in IT and BT Sectors in Karnataka

Karnataka, the favorite IT (Information Technology) and BT (Bio Technology) hub of India is all set to receive huge investments from as many as 55 companies. Various IT and biotech firms have come forward and proposed investments of nearly Rs.12,500 crores in the knowledge center of India.

IT and BT minister, K. Subramanya Naidu confirmed that various national and international companies are showing keen interest in expanding their operations in the region. Companies like TCS, Wipro, Infosys, Tata Elxsi, Xchanging Technology Services Ltd, Makado Energy, Silver Gem Energy Diodes Ltd, Applied Materials and numerous others are planning to set up operations in the proposed Information Technology Investment Region (ITIR) at Devanahalli near the Bangalore International airport. The state government has already entered into memoranda of understanding with 55 IT and BT firms at the Global Investors Meet (GIM 2010) on June 3. It is now expected to constitute a management board to govern the ITIR and the state empowered committee under the chairmanship of the chief minister.

Since Bangalore has been long prosperous with an influx of IT and BT firms, the government is now shifting focus to other tier-II and III cities of Karnataka. Investors are happy that they are getting support from the government as it is going to help in smooth implementation of the projects. It is encouraging not only well established brands but also entrepreneurial start-ups to pump in money into the state. Around 2,200 acres in its first phase, ITIR is expected to see IT parks, Special Economic Zones (SEZs), integrated townships equipped with modern amenities, excellent connectivity and much more. The Software Technology Parks of India (STPI) in the electronics city, on the outskirts of Bangalore is to see a Characterization Lab that deals with nanotechnology at Orchid Tech Space.

Investment in Indian Property Lucrative

India is a rapidly progressing country that recovered much more quickly from the economic slowdown as compared to other established economies of the world. It has emerged as a robust economy and this is why investments in Indian real estate continue to attract NRIs and investors from overseas.

Investments in Indian market are so lucrative because they not only yield higher returns but also give a sense of security. The private sector that boasts of a dynamic and competitive nature has been a key driver for the economic growth of the country. It presents considerable scope for both foreign and NRI investments in the real estate market.

The Foreign Exchange Management Act, 1999 (FEMA) defines NRI as an 'Indian citizen' or a 'Person of Indian Origin' (PIO). It broadly regulates matters related to NRI investments in India- investment in immovable property, foreign exchange, bank deposits, government bonds, investment in shares, units, securities and foreign direct investment.

As far as investments from foreign investors are regarded, they too are found looking for property in India. The only country likely to see stronger growth in the next five years is China much easier for foreigners to purchase property in India than in China. Sources suggest gross domestic product grew by 5% in India last year with higher expectations for the coming year expected.

Foreigners have found that India offers them good value for money with reports suggesting strong price growth in the next few years with an increasing demand for property to buy or rent. The country’s currency is the rupee whose value is generally stable and is linked to a basket of currencies. They believe it is a good idea to maintain a stock of smaller currency and are looking forward to explore property market of India.

PG or rent houses for students

Delhi, the capital of the country, has slowly been started considered as the most preferred education destination by all the students. One can see a large number of students applying for courses in the colleges of Delhi. Delhi University being the hot spot in terms of education for all the students belonging to foreign countries or other states in India is also a major contributor to the real estate sector of the country. Most of the students who come from different parts of the country, choose either for a PG, rented house, or an own flat in the areas neighbouring their college.

The students generally prefer for PG or rented apartments, close to their house, and where they have easy access to the basic amenities required for their smooth survival. Most of the DU students have their houses in the north campus or the south campus, depending on the campus, where they have taken admission. There are many good Paying guest and rented housing facilities in these areas, which surely add to the comfort level for the students. While owning a flat has its own plus points, as you are the owner of the house and do not have to bare and follow the restriction charts of the landlord. Students also need to be very careful while choosing the right house at the right place. You must finalise the location of your house, after doing a complete recci of the area and the people living there and in the surrounding areas. Especially in case of girls, safety and security should be the points given top priority, while selecting a house for yourself.

Another point, which should be kept by students, while choosing a home, is that they should try and not get themselves involved in any of the agents scam. These agents, generally charge a huge amount of money and many a times one ends up with a bad house and in a dirty location. You must do a proper research and approach the renowned agencies, which provide services in the real estate industry of the country. So, you should check all the pros and cons before finalising a house, because a happy house leads to a better career and a contended life.

Increasing prices of houses

The property rates are seen going high day by day. The prices of the housing properties are actually touching heights and its becoming tough for the buyers to fetch a house for them and their family. Buying a house in cities like Delhi or Mumbai has become almost impossible, with the prices of the properties there, touching heights. This can be seen as a positive sign because of the increasing prices is a resultant of the increasing demand of the housing property in these areas. This is the profit making time for the people involved in the business of real estate. But, if we see from the buyer’s point of view, he has to pay extra money to the dealer, due to the excess demand.

The space is limited, but the number of people, wanting to reside in that space is increasing. Many factors like migration due to job, education, livelihood, can be held responsible for the increase in demand of the housing property in certain areas. Area is a problem and this needs to be sorted out by the government, municipality division and the property developers. This is entirely their responsibility that every citizen of the country gets proper space to live. The upper strata of the society definitely get a posh space to live, by paying more for the same space. But in case of the people will low salary packages, they are left with no option other than to set up slum areas, which are tagged as illegal by the government and then deconstructed.

In all this the common man has to suffer. Every business needs to flourish, so does real estate also, but not at the cost of the common man’s sacrifices. Equal attention needs to be given to both the sides, so that no one has grudges against the other. The government needs to come out with some property designs, which are comfortable and in the reach of the common man, making each individual a proud owner of his house.

Rising property rates in Gurgaon

Real estate business in Gurgaon is no doubts touching heights, but the property rates of the region have also crossed limitations. This is true that if we want new developments and technologies to be implemented in our lifestyle, then corresponding amount also needs to be paid for the same. The luxurious apartments, advanced technologies, pollution free areas, nature- friendly societies, lavishing work styles, surely have a cost and if you aim for these facilities then you also need to pay for it. The lifestyle possessed by the people living in these posh colonies of Gurgaon is really fabulous.

The property rates in Gurgaon have increased also because of the commencement of many industries and business houses in the area. The land of Gurgaon has proved to be a great base for the commercial sector of the country. Many renowned brands have their corporate houses in Gurgaon. The credit for the increase in the popularity of gurgaon as a preferred business centre also goes to the availability of the space and the pollution free environment the city offers. The business for the rented houses is also at rise. This is because most of the people working in the companies in Gurgaon hail from different parts of the country, due to which finding the nearest housing facility is the best option for them.

The rent for these houses depends on the areas or the location in which the houses are placed. More developments are yet to come in different parts of Gurgaon and the areas surrounding. Purchasing a land or flat in Gurgaon can be highly beneficial for your generations to come. This has actually come up as a trend. Most of the people these days, can be seen buying properties in these areas, the prices of which are sure to rise, and certainly will prove to be a great supporting factor at the times of need in future.

Gurgoan property styles - turning dreams into realities

We all are aware of the fact that most of the industries and major business has shifted their offices from Delhi to Delhi NCR regions. Out of these NCR’s Gurgaon and Noida are considered as the major areas, where you can search for a job of your choice. These regions can also be tagged as the job hubs of the city, which has the largest number of offices, employing thousands of citizens, thereby adding millions to the country’s finances. Among Gurgaon and Noida, Gurgaon is the place, which is far better in terms of the real estate development. The real sector in Gurgaon has developed a lot. In fact, it is not only the housing property but the commercial and the official properties also have spread its wings in the region of Gurgaon.

As soon as we enter Gurgaon, the huge malls, buildings, offices are there to welcome us. Also, the biggest mall of Delhi is in Gurgaon itself, i.e. the Ambience mall. The housing properties adjacent to these areas are amazing. Last week I went to Gurgaon after so long and I was actually not able to recognise the places. I mean the entire structure has been reformed and the place has become very modernised and beautiful. I hope every one likes those tall glass buildings, in different shapes, structures and which are presented so well. Just looking at those offices, makes a person wanting to have job in one of such offices.

The houses even are so attractive and striking that for once you would not even be able to take your eyes off from those huge building. The societies in these areas have all the facilities one could have ever thought of. I mean the flats are just the mirror image of the dream house of any human being. Thus, I can surely say that the new architectural development and styles adopted by the real estate sector in Gurgaon is in all ways turning dreams of millions into reality.

Flat system shifting to floor system

The latest trend i have observed in the recent times, is that most of the people are shifting their houses from flats to bungalows or floors in bungalows. The real estate industry these days have grown manifold. The different needs and requirements of people have lead to the development of various kind of housing projects. If we look around, there are a number of new housing projects coming up. Not only residential, but there are many corporate and commercial complexes also being built at every nook and corner of the city.

The living standards of delhiites have changed no doubt. With this change, their preferences in terms of the residential areas and designs have also transformed. Earlier the trend of flats was very common, everybody was planning to buy flats in societies. Though the trend of high society flats is still prevalent, but a shift has been seen towards the floor system in the latest times. It is mostly because of the fact that in case of floors system, the privacy of the family is maintained and the stairs are shared hardly by two or three families. Also the space in case of floors seems to be large and their is a sense of ownership, which gives the owner the pride of owning the house.

The security of the houses is also a big issue and in case of floor system of bungalows, individual security systems can be hired which ensure more safety and guarding measures. Though, flats these days also have great security systems but the personal security guards provided at floors, provides a sense of satisfaction to the family and its members. And if you have money then why not invests it for the safety of your family and become a proud owner of the a big and a huge bungalow floor in one of the posh colonies of the city.

Homes for senior citizens

Senior citizens are an important part of our society; they need special care and attention. It is said, our life completes a full circle, like, in the starting, a baby is dependent on his parents for his each and every action, same ways, when parents become old, they are dependent on children for their small- small activities. Thus, senior citizens, or old people need extra care and attention, whether it’s by their children or by their life partner. These days, there are special parks, community centres and groups formed, where senior citizens can go and utilise their time in a better way. Senior citizens, mainly come across problems of better living, where they are not facilitated with all the necessary requirements, due to which they are not able lead a healthy lifestyle.

The real estate sector of India is coming up with great housing projects for the senior citizens, to provide them with all the facilities, which make their life easier and worth living. In fact, making good housing projects for the senior citizens has become an industry in itself, which has turned out to be a great benefit for the older people, where they can live their life, and their way. Due, to the younger generation adopting the culture of nuclear families, more of senior citizens are getting alone in the big and huge houses. The best solution, they look for, during this stage is living in a small house, where both the husband and wife can enjoy and lead their life in peace after retirement.

Even the government is encouraging such projects and its demand is increasing, leading to the development of a new sector in the real estate market, and hence adding to its growth. Thus, initiation of such projects can result in great placing of the senior citizens in the areas of their interest and environment suiting their personality and requirements.

Real Estate Industry Celebrates Together !

The Realty Plus Conclave Awards 2010 opened on an optimistic note as Indian real estate shows robust signs of recovery. As Indian economy clambers out of a debilitating slowdown, the cream of the real estate industry turned out in full force.

The much coveted realty awards saw 19 developers and industry leaders lined up to the event.

Let’s take a look at some of the award winners:

• The Award for Environmental Project of the Year was presented to Biodiversity Conservation of India Pvt. Ltd. for T-Zed.
• Upcoming Integrated Township of the Year Award was given to the Jaypee Group.
• The winners for Architect of the Year Award were Venkataramanan Associates and RK Associates.
• The award for Emerging Developer of the Year was picked by debutant Asset Homes.
• The winners under Regional Developers category Awards were Ambuja Realty, Amrapali, Brigade Group and Kumar Builders.
• The Lifetime Achiever’s Award for Outstanding Contribution to the Industry was presented to Niranjan Hiranandani.
• Luxury Project of the Year was a toe between Lodha Developers and Panchshil Realty.
• The Popular Choice Award for the Developer of the Year Award- Commercial, Retail and Residential sectors went to DLF, Star City/ Phoenix and Prestige Developers respectively.
• Broker of the Year Award was scooped by Agni Properties.
• The Pathfinders Award went to Brotin Banerjee, MD of Tata Housing.
• The Developer of the Year-Commercial was bagged by the 3C Company, Residential by Orbit and Retail by K Raheja Corp.

Buoyancy and new confidence has been found in all three sectors of Indian realty-residential, commercial and retail. The real estate majors and the Who’s Who of the sector gathered to discuss, deliberate and introspect on the issues affecting the industry. The event was a huge success and hoped for a more rapid growth of the realty sector in coming years.

Invest Wisely in Real Estate

Real estate is the hottest industry in India today that is progressing by leaps and bounds. And inflation is hovering all over the world, not to forget the recent economic global slowdown. The common man needs to battle inflation by making wise investments for a future that promises expensive living and minimal savings.

Your investments must earn double-digit returns merely to ensure that your savings retain their value. Some of the best investment options are equities, fixed deposits, commodities, real estate, gold and precious metals. Several analysts are of the opinion that investing in real estate in India is strong bet against inflation. Property is a real asset that when financed with loan is even better as the principal component does not increase but its real value declines due to inflation.

Property experts believe that buyers and investors should take the advantage of the current low interest rates to buy real estate. This will ensure a long term investment that is sure to reap multifold benefits. Some fear that growing property prices may burst as a bubble but since Indian economy is intact and the GDP is expected to grow at 8.5%, inflationary pressures would drive up house costs in coming times.

There are three types of inflation-mild inflation, hyper inflation and deflation. India seems to be going through the phase of mild inflation where prices grow slowly, not more than 5% every year. This phase of inflation is associated with a low level of unemployment and generally occurs during the upswing phase of a trade cycle. Such inflation has beneficial effects on a developing economy as it is a sign of a buoyant economy or an expanding economy that implies generation of jobs, output and growth. Therefore, investments in Indian real estate are bound to reap huge benefits.

Good times ahead the real estate sector

In the recent days, one must have noticed the growth in demand of the small housing properties, due to decease in the family size. Husband and wife, these days, prefer having small families, which again adds to the demand of short houses. This practise has been followed by the people, also because of the increasing cost of the products to be used on daily basis. I can surely say, the demand of bungalows has decreased to a lot, due to the people preferences shifting from the big bungalows to two- three bedroom flats. But with the fading away of the recession and the times of slowdown, purchase of commercial property is again boosting up in the real estate market.

The real estate market is growing with the buyers preferences changing towards the commercial property and people planning to invest more in the commercial real sector. It’s no doubt, that investing in real estate is the best investment a person does for his amazing future. People buy small houses, according to their family needs and try and invest the rest of the money in the production of surplus benefits, by converting the raw cash into assets like property and gold.

Also with the commencement of Olympics in India, this time, real estate sector is expected to take a major jump, towards the growth and demand of the property. Also, the whole structure and look of the capital is getting changed, adding to the demand of the managers and dealers of the real estate market. According to the reports by a real estate consultancy firm, the business of shopping malls and shops at the prime locations of the city and NCR like CP, South- Ex market, Karol Bagh, Noida, Gurgaon, will surely experience the best of the earning times. So, I can say that all people in the real estate sector should make themselves ready for the encashment of the losses faced during the slowdown.

Different types of projects - reason for real estate development

The real estate market in the country is growing at a faster rate, with the commencement of a variety of housing and commercial projects coming. These projects are different from each other in shape, designs and the facilities provided in them. Real estate sector has fulfilled the demands of the citizens from lower to middle class to upper class, to higher upper class people. The difference in the demands and requirements of people, is leading to the building up of various styles of housing and commercial projects in the country. Other than normal and traditional markets, metros states of the country have been instilled with various new projects which have shopping malls and multi storied complexes near to the residential areas, in the reach of the common masses.

The increasing demands and priorities of the people can also be counted as one of the primary reasons for the developments and growth of the real estate sector in India. Most of the projects and designs are influenced by the developments in the western part of the world. Projects like, integrated commercial and housing complexes, have surely increased the standards of the citizens of India. The availability of almost all the facilities at one place, like in case of shopping malls, is an achievement for the real estate sector in India, and its success has given a rise to such projects. People of the country, have got used to such developments and to be very frank, today, even I don’t prefer going shopping to a place less than a multiplex shopping mall or a complex.

In fact technology has a major role to play in the betterment and beautification of these complexes. Decoration of the malls with different types of lights and technological instruments makes the place look more elegant and sophisticated. What more would one want, the presence of five star hotels, retail shops, offices, all at one place, life is no more same as earlier, or I should say, it is no more boring as the previous decades, its much interesting and happening!

Retail Rentals to Spiral Up Finally

A turnaround of realty trends may have been seen from last quarter onwards. But, it was only a revival of real estate prices not their rental values. Real estate consultants and analysts believe that if retail spaces show sustained growth for a considerable span, it may soon witness upward movement.

Leading retail stores have confirmed that they have not received any request to re-negotiate rentals at their existing properties though new properties will command higher rentals. The hike in rent would depend on various factors including the capital value of the property as realtors now-a-days are using serious scientific methods to get the right mix of retailers in their malls.

From property developers to mall owners to retailers, everyone is adopting a cautious approach to avoid hassles in future. They prefer the revenue-sharing model so that both developers and tenants remain committed to the property and its upkeep. Cushman and Wakefield (C & W), a leading real estate broker and consultant said that retail segment has just started picking up. So, retail segment needs to witness a sustained growth consistently for months before mall developers decide to re-negotiate the rentals. Mall developing biggies like DLF have now decided to bring the upcoming and existing retailers to the same level by gradually withdrawing the discounts extended to old occupants during recession.

Retail market has revived and even retailers seem ready to pay higher rents and are open to negotiations. Rajeev Talwar, DLF Executive Director explained that they are now looking forward to negotiate rents as they had earlier taken a soft stand during economic meltdown. Some experts feel that rentals may remain flat in the short term but will recover in the long run. With the growing supply of rentals, it is difficult to achieve the rental levels of peak times.

RBI may come up with two Real Estate Indexes

RBI (Reserve Bank of India) is planning to launch two real estate indices to reflect movements in residential and commercial property prices in the country. The report on asset price monitoring system suggests revision of the indices every quarter.

These indices could prove handy for financial markets as well as the central bank that decides the monetary policy. Various developed countries like US, Canada, France and Hong Kong already rely on their respective property indexes to gauge the asset price movement in their countries.

The report emphasized the challenges for keeping track of real estate price dynamics and their relationship with financial stability and monetary policy.

They are:

-lack of transparency in the residential realty market transaction,

-absence of a single centralized regulator in a huge country like India and

-limited availability of property price information

It has further recommended that the RBI may compile real estate price index on quarterly intervals and begin with Delhi and Mumbai. Subsequently, it could add 11 other cities such as Chennai, Bangalore, Hyderabad, Ahmedabad, Lucknow, Bhopal, Kolkata, Pune, Jaipur, Greater Chandigarh and Bhubaneswar.

This real estate price index would be a primary index that institutional investors could rely on to sense the performance of the real estate industry. It would record how realty performed as compared to other asset classes like stocks and bonds. Moreover, it would provide a better understanding of the risk and return for commercial real estate. It may be used as a basis for developing diversification strategies like percentage allocation to real estate to minimize risk for a target portfolio return. It would be the first available index to measure the performance of income coming from realty sector.

RBI may take inputs from banks and select home finance companies on sale and resale prices as builders may be apprehensive about sharing property price information due to competition reasons.

Houses in cities other than metropolitan

Delhi, Mumbai, Hyderabad, are the places, which have no doubt, left every state behind, in terms of development and growth. These are the cities which are counted among the top most developed and metropolitan cities of the country, which have contributed maximum in making the country achieve the tag of a developed nation from an underdeveloped country. In fact days, are not far, when we will also be counted among the citizens of few of the top most developed nations of the world. But, today even, if we talk about huge bungalows, having big rooms, practising lavishing lifestyles, we surely end up discussing about the houses in the cities like Ludhiana, Jalandhar, chandigarh, which provide ample space to its residents to enjoy life king size.

The size of the house, surely matters a lot, it actually defines the royalty that the person possesses. The family status and the livelihood practised by a person, is largely reflected by the house he lives in. Houses in Delhi or other metropolitan cities or beautiful, amazing but the hugeness and the space I am talking about is something, which you would surely not find in these big cities, and if by chance you get to see such houses, then it would make you shed the income worth your whole life’s salary. The real estate sectors is actually touching heights in terms of prices, and owning a big house in the metropolitan city, means you are the bond.

It’s not only about space, but the peace and the comfort level you get in these houses, is mind blowing. The feeling is entirely different and plus it makes you stay away from the polluted environment, which has taken a toll on our health. I think, we all should have a house in such cities, where one can go and relax for a while, having a blast in the holiday period, because, whether its you or me no one can deny the fact, that health is important but wealth is important to maintain that health, which is earned by working and having a good career, which is the most important asset of these metropolitan cities.

Increasing mall culture

Indian audience for the real estate sector is getting more techno prone; we have got quite open minded in adopting and implementing the modern and the western cultures in to our lifestyle. One of the practises adopted by us is the mall culture. Though the traditional markets like, Karol Bagh, Sarojni Nagar, Rajouri Garden, Lajpat Nagar, are still the leading markets of the capital. But, the malls like, Ambience mall, Select City Walk, Shoppers Stop, Lifestyle, Sahara Mall, have also grabbed the attention of the common man.

The best thing in these malls, because of which anyone, you or me, feels comfortable in shopping there is, the presence of all the shopping items at one place. You enter a shopping mall with the list ranging from food products to bathroom sleepers, from clothes to accessories, you would find, anything and everything just under one roof. There are many retail shops also like, Big Bazaar, Vishal, Salasar, Gokul, which provides solutions in all kind of purchasable products. These shops have become popular in a very short span of time, and are directly giving competition to the local grocery or confectionery shops present in our residential areas.

The presence of all the popular brands in the same mall has made it easier for the brand freak people to find all their favourite brands at a single place. This has also lead to the rise in competition among brands, which at the end, results in our profit, with the reduction of prices on our favourite dress or shoes. If you ask me, today if you have to do an investment, then buying a shop in the shopping malls can prove to be a great asset, due to the increasing popularity and demand of the mall country in India. Almost all the metropolitans of the country have adopted this culture, not only this, cities like Ludhiana, Jalandhar, also have implemented mall culture in their cities and is being appreciated a lot. So, other than investing on house and lands, you can also invest on shops in malls, and can earn premium for the rest of your life.

Introduction

Hello All!

We daily come across so many news stories related to the purchase of house, the property rates, the ups and downs in the real estate sector, which directly or indirectly affects the common man of the country. For some, the rise in the property rates is good news, but for the buyers, it’s a bad news, the parameters of happiness and sadness, keeps on varying. But at the end of the day, whatever changes happens in the real estate sector of the country does affect us, so to keep a watch on the real estate sector of India, and discuss about its varying factors, me (Gurleen Kaur) and my friend Deepika are starting a blog on the real estate industry.

To make the blog more informative and interactive, please keep posting your comments and suggestions.