Bangalore is turning into a luxury home destination

Bangalore has always been a robust market when it comes to real estate. The rapid urbanization, flourishing IT companies and industries, affordability, infrastructural developments and increasing population has increases the demand for house for sale in Bangalore. Apart from affordable housing, the demand for premium apartments and luxury villas have also increased in Bangalore. The real estate in Bangalore is driven mostly by end users, comprising of professional working populace and NRIs.
Also in recent days the number NRIs investing in villas and apartments in Bangalore have increased considerably. There are a several factors that actually help in attracting NRIs to invest in Bangalore.

When you take a big picture of the real estate market in the countries, only very cities have been stayed robust in past few years while real estate in other cities such as Mumbai, Kolkata and Gurgaon have been volatile. This robust real estate market is the main reason to attract investors from overseas. Some of the other reasons include higher capital appreciation, increased rental rates, easy and convenient investment norms by Indian government and foreign direct investment facilities. In particular these NRI populace concentrate more on luxury villas and independent house for sale in Bangalore.

With several luxury projects from reputed builders, high quality construction, timely delivery, high-end design and interiors, filled with all amenities and many more aspects help Bangalore to win the race in luxury home sector among Mumbai and NCR. Also while premium apartments and villas in Mumbai, NCR and Thane have unrealistic or huge price tags, the affordable prices of apartments in Bangalore have also made NRIs turn head towards Bangalore real estate.

The prices of luxury flats for sale in Bangalore is somewhere between Rs.5 crore to Rs.30 crore. Though this value may seem higher but when compared to other cities these rates are 30% to 40% lower. The city also offers several luxury apartment projects for reasonable prices. While Bangalore can show a sales report with 100 luxury villas or apartments for every quarter of a year, Mumbai and NCR are able to sell only between 10 to 20 luxury apartments.

The improved infrastructure have also made people to invest in luxury apartments in Mumbai. This has made Bangalore more popular among high net worth individuals who invest in luxury property in Bangalore. On the whole the demand for luxury homes in Bangalore is fuelled by NRIs, high net worth individuals, and millionaires from IT/ITES sector. The demand for luxury houses were once subdues in all metro cities during past few years but it has now started to pick up pace with Bangalore leading the market now to be followed by Mumbai and NCR. Bangalore with developed infrastructure, shopping malls and more support the sophisticated lifestyle led by the NRI, HNI population and also the original inhabitants of the city. For all those NRIs who look out for a luxury home to spend their vacation in home country, Bangalore everything to cater to their requirements.

The moderately good climatic conditions and profitable employment prospects in Bangalore have also attracted middle income group people to invest in flats in Bangalore.

Increasing Demand for Residential Apartments in Trichy

Trichy: The rapid increase in the price of residential land and individual homes in the city are making the people prefer apartments. Currently, the residential developers in the city are focused on construction apartment projects in Trichy that meets the needs and budget of every home buyer.

Through the builders have started to develop apartment projects in the city before 20 years, the demand for these types of residences have increased gradually. In the recent times, the real estate and construction fields are going at a dull pace. However, the flat promoters in the city are ready to launch new residential apartment projects in Trichy. As of now there are totally 120 apartment projects are under construction. .

According to the sources, the skyrocketing prices of the unapproved vacant plots is making difficult for the people to buy an individual house. Thus, the people have shifted their preference on to apartments in Trichy. Besides, most of the land promoters are not approaching the local planning authority (LPA) for approval, as they are not ready satisfy norms like broad roads.

To increase the demand for apartments further, the Confederation of Real Estate Developers (CREDAI) has recently conducted a three-day Fairpro-2015 to grasp the attention of the home buyers.   

The flat promoters in Trichy are focusing on developing apartments within the city limits. The price of the apartments that located in the main roads of the city are high when compared to the inner roads. According to sources, the price of an individual house located within a city limit is expensive. Thus, the home buyers are buying apartments which are available at affordable rates. Further, the resale value of the apartments in the city will increase in the future, as the city is witnessing an enormous range of developments in terms of infrastructure and industries.

The price range of 1 BHK, 2 BHK and 3 BHK apartments is ranging from Rs 25 lakh to Rs 1 crore. The price is fixed based on the area. Also, the price varies according to the number of amenities available in the residential apartment.

It is expected that the price of the residential apartments will increase in the next three months, as the cost of the construction materials has raised up.

When we consider these factors, it's the best option to prefer a residential apartments in Trichy rather than expensive individual houses.

Why Chennai real estate is in growth mode in 2015?

There is an air of optimism surrounding the real estate situation of Chennai. Most experts are of the opinion that both the commercial and residential real estate segments in the city will get a good boost in 2015. The city has never seen a big slump realty wise but the market has been semi-dull for the past few years. The general economic down turn, high home loan rates and high cost of construction were some of the factors which were cited to be the cause of the small slowdown in the market.

Experts have made their predictions based on a few facts. They say that the economy is on the rebound. This will put money into the pockets of the common folk which will increase their spending power. Once that issue is sorted, most people immediately think about getting themselves their first or second home. Real estate is generally considered to be one of the top choices where people want to park their money. Another reason why there is increased optimize among those who are in the industry is the repo rate cuts by the Reserve Bank of India. This essentially means that those who are paying home loans can expect a cut in the EMI. Taking all these positive factors into account, some feel that the southern city stands to benefit immensely realty wise.

Most of those who are buying up Chennai residential projects are end users. This has ensured that Chennai property prices have not been wildly fluctuating because of speculation from investors. This trend has been seen in 2015 as well as vast majority of those looking for Chennai properties have been buying them for end use.

Buyers from the low and mid segments are hoping that the Chennai property prices will stabilize this year. In 2015 there have been a lot enquiries for properties which fall between the INR 20 to INR 30 lakhs range. This is followed by the INR 30 to INR 40 lakhs range. This shows that there is good demand for affordable properties here. North Chennai and the micro markets along the GST Road are considered to be quite affordable. There is also demand for properties in the luxury category. Properties which fall in the INR 1 to INR 2 crores range have also been generating interest among those who are looking for high end properties in the city. Areas such as Adyar, Beasant Nagar, Nungambakkam and RA Puram cater to those who are looking for such high priced properties.

The city’s suburbs are enjoying immense real estate resurgence. Once ignored and rejected, these areas are quickly becoming favourites among those who are looking for housing options on a budget. These areas are spread across the city and are well connected to the central business districts as well. Infrastructure projects are being planned with these localities in mind which has also given these localities a much needed boost. All in all things are looking up for the real estate sector in the city.

Property prices in Jaipur face a slump

Jaipur has been the top most cities for investment in the state of Rajasthan. However recent reports suggests otherwise. Yes the price of property sites in Jaipur, especially residential ones have been facing a slump in prices. There has been an average decline of close to 4% each quarter over the past year. And these have been worrying signs for the real estate market. In fact there has been a total of 10% decline in property prices in the past year in some localities in the city. Years leading up to the 2013 saw a sharp rise in prices of properties such as apartments for sale in Jaipur. Property prices those years saw a rise of close to 67% which is a mind boggling number for any Tier I city.

"The recent assembly and general elections had an impact hurting demand as investors looked for policy cues from the new governments both at the state and Central level. While the buyers' sentiment cannot be described as bearish, expectations have tempered a bit which is normal after a steamy appreciation. But demand will come back in the couple of months before Diwali which will drive the price appreciation. The reduction of the gap between DLC and market rates will lead to stable pricing regime and will curtail the room for black money transactions although there will be some upward pressure on the property prices" said Vinay Joshi, president, Rajasthan Affordable Housing Developers Association said to the media.

As of today close to 40% of the demand generated in the city for commodities such as property sites in Jaipur come from the end user or home buyers. Home buyers dictate the market to a large extend.  And that is probably one of the reasons why there has been such a disparity in the market in the current scenario.  Apartments for sale in Jaipur today have only a few takers due to the hesitation on the buyer’s part. However with the new government and the budget being announced, things are said to show threads of improvement.
 
"If not rising, housing prices have been stable in recent months. But to say that they have declined by 3.8% doesn't seem to be the case on the ground. Pipeline of developments still remains robust and there 500 projects including all segments and sizes are under various stages of planning and development in the city." said N K Gupta, chairman of Manglam group.
 
Next year is said to be a decider for most Tier I and Tier II cities real estate markets in India. With the purchasing power of the residents of the city improving with the improving economy, things are said to have a trickle down effects on various aspects of the economy and the market. With service sector like IT entering the Jaipur market, the demand for affordable homes and mid segments homes are said to rise. One has to wait and watch how the market responds to the recent developments.

Top reasons to invest in properties in Pallavaram

Investing in the real estate market in Chennai has always been a safe bet. The realty sector here remains fairly untouched by speculation which is very rife in the northern markets of the Delhi National Capital Region or even Mumbai. The real estate slowdown which plagued the entire country did not give the city a skip though the market here was shielded to a certain extent from its impact. 
The areas of growth are located in the northern part of the city and along the Grand Southern Trunk Road. With the saturation of the markets in the southern and central parts of the city the focus is moving towards other parts of Chennai. 

The markets along the GST Road have been making real estate waves for some time now. The GST Road is an arterial road which is well connected to most parts of Chennai. The area has emerged as the manufacturing hub of the city and has a fair smattering of Special Economic Zones as well. Some of the markets which fall along this stretch are: Guindy, Alandur, Meenambakkam, Tirusulam, Pallavaram, Chromepet, Tambaram, Perungalathur, Vandalur, Urapakkam, Guduvancheri, Potheri and Kattangulathur. Areas such as Vandalur, Guduvancheri and Kattangulathur are quickly catching the fancy of buyers. 

Some of the more established markets in this stretch are Tambaram, Guindy, Chromepet and Pallavaram. Pallavaram is located at about 17 km from city and is a part of the Kanchipuram district. The area has been in existence for Paleolithic Age and is a place of historically significance. 

In modern times, the real estate of this micro market has been in demand. The going rate presently for apartments for sale in Pallavaram has been averaging at INR 4900 per square feet. This price bracket puts properties located in this micro market in the affordable range. The asking price for apartments for sale in Pallavaram shot up to INR 7000 per square feet on average in the third quarter of 2013. But since then the prices have fallen and have been ranging between INR 4500 and 4900 per square feet on average in the following quarters. 

The area is not only well connected to the micro markets along the GST Road, it is also well connected to the micro markets along the Old Mahabalipuram Road. This fact has contributed to the rise of real estate demand in this area as the OMR belt houses some of the most important Information Technology and Information Technology Enabled Services companies. This is one of the reasons why properties such as plots for sale in Pallavaram are popular among property seekers. 

There is maximum demand for small sized 2 BHK flats in this area. The budget range which most buyers seem to want to spend here falls between INR 30 to 40 lakhs. There is some presence of social infrastructure here. The area though not without its fair share of problems is predicted to do well once some infrastructural changes which are planned here taken shape. Hence investing in properties such as flats and apartments for sale in chennai might just fetch higher returns in the future.


Sulabha is a real estate expert and consultant from NCR. She deals with analyzing trends in the market of residential apartments in noida and commercial properties in Greater Noida

Affordable housing projects become the popular investment choice in Chennai

Chennai has somehow turned out to be a pricey real estate market over the years. Luxury segment and mid segment home are mostly out of reach by many. The market for luxury and mid segment apartments in Chennai has been very slow. And sky high pricing has created a gap between the demand and supply here. Buying an independent house in Chennai is definitely out of bounds for many, and a very restrictive percentage of the population can invest in residential properties of this kind. Things seem very slow in these two sectors, but Chennaiites have more to look forward to. Affordable housing sector might just be the next big thing that would revive the real estate market in the city.

Suburban Chennai is what will see the most real estate activity in the next few years. Builders have already started looking for large parcels of land in the outskirts to build affordable housing projects in the city’s suburbs. There has been an increasing demand for smaller housing units of under INR 20 lakh. However builders over the years have failed to cater to the needs to this demand generated. High cost of construction and even higher land prices in the city has compelled the builders to charge much higher for apartments in Chennai suburbs in comparison to its counterpart like Bangalore or Hyderabad.

The concept of affordable housing across the country is flawed in many ways. For example, affordable price band in different cities mean different things. This is because housing is affected my several factors like land prices, cost of construction etc. Land prices in different cities vary to a large extend. Affordable or low cost homes in Mumbai and its suburbs will be nothing less than INR 40 lakhs. Similarly, you can buy low cost homes in cities like Hyderabad for as less as INR 25 to 35 lakhs. This creates a lot of disparity and takers of these projects suffer on the financial end of it. In Chennai the concept is catching up and we are yet to see where it goes. This segment has been much ignored by builders is now all set to see a revival. “Identifying developable land at the right price in the right place is the key to success of a budget housing project,” said a builder from Chennai. “All developers doing big projects in the suburbs are stuck owing to poor sales and they are looking at alternatives to sustain the business”, said Rajesh Babu, of Recs Group, a Chennai-based realty firm.

“Going by the experience of developers who promote budget housing projects, they are by and large cash-surplus projects as long as the promoter sticks to medium sized developments in the range of 2-3 acres.You can raise funds from the market (customers) and do projects. As long as the budget housing segment is treated as a separate entity and the money collected for it is used for the same project, it will work. But if the money is diverted to service bad loans or to complete other stuck projects, then things will miserably go wrong,” said Sarita Hunt, MD- Jones Lang LaSalle.

Should you invest in Noida or Greater Noida?

The questions plagues many investors and individuals today, whether they should invest in Noida or Greater Noida is a better realty choice in this matter. We put together some valid arguments so that you can access and analyse the best suited option for you as an investor.

•    "Greater Noida was designed as an integrated township, but industrial land, particularly in Greater Noida West, has been diverted to residential projects. Attracting industry is hard, while cutting plots for builders is easy and lucrative. In the five years, GNIDA has allotted 400 industrial sites of which small scale units 50 have started work. But a majority are micro enterprises employing between 20 and 50 workers each.” Says a GNIDA official to the Business Standard. Noida also started off in a similar fashion, however it is much more developed and evolved market as of now.

•    Greater Noida suddenly saw a rise of real estate activity between the years 2009 and 2011. There were a number of apartments for sale in Greater Noida that were presented to the market, but the new land acquisition act and the eventual increase in property prices have deterred the home buyers from investing here. According to a report by JLL India, there are over 200,000 apartments for sale in 
Greater Noida, out of which only 40 % of inventory is sold. There has been delay in projects and there has been an issue with local builders delivering projects very late as compared to the actual date of handover. This has brought the real estate market here to a halt. But Noida however is a much more evolved market. Prices have seen fluctuation, but it hasn’t been unambiguous. Certain localities command a higher price than others and there is a clear cut distinction. The stability in the Noida market is what makes it a better investment choice

•    Properties in Noida are a good investment choice for low risk investors, Greater Noida poses much higher risk and a gestation period as compared to Greater Noida.

•    If you are looking to invest in plots then Greater Noida is a better investment option for you. Noida has limited land availability and that has resulted in rapid increase in prices. However if you are looking to invest in apartments Noida is definitely a better bet. Project are delivered on time and there is stability in price of properties in Noida.
•    Looking to invest in commercial real estate? Pick Noida and not Greater Noida. As of today, there is almost 70 percent of unoccupied office space area is Greater Noida and individual investors have suffered losses because of this. They paid a premium price to acquire this land, however it hasn’t reaped any substantial benefits.
•    These are a few points you can consider if you are looking to invest in any of these areas. However the market and its evolution is natural and Greater Noida will evolve sooner or later. But the gestation period is long. And the ones with deep pockets can actually afford this long gestation period. However you investment in Noida is safe for now and rental market is also stable.