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.

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.

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.

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.