How is the residential market of Mumbai?

The realty market of Mumbai is a very attractive one and has drawn the interest of both the property buyers and the investors. The market has been sluggish in the recent days due to over pricing of the properties. The commercial market is very active and so the residential market can never remain sluggish and the market is all set to come back on track soon.

There are several reasons for Mumbai being the favourite among the home buyers. The market is driven by both end users and investors equally. The increased investor activity is one of the prime factors which have strongly impacted the property prices. This has driven the prices to unrealistic heights. The realty segment of the market is one of the best options for investment as this offer good returns over the years. This has drawn the interests among the investors in the market. Non-Resident Indians (NRIs) are also major contributors to the growth of the residential market of the city. NRI investors prefer residential projects in Mumbai for a number of reasons. The prime localities of the Mumbai city offer high standards of living which moreover match the international standards. Though the suburbs lack the international standards, the prime micro markets enjoy the best of both physical and social infrastructure.

The suburbs of Mumbai are seeing decent numbers of project launches and this will add to the supply of the residential projects. Developers are seeing fewer takers for under construction projects in Mumbai majorly due to the delays faced. There are a decent number of projects coming up. Recently, Tata Housing Development Company and the prominent developer Neptune Group have entered into an agreement to develop a 10-acre residential project in Mumbai, more precisely in Bhandup, an eastern suburb of Mumbai. Another renowned builder, Ahuja Constructions are getting a fund of Rs. 25 crores from BlackSoil Realty Fund–I to develop a project in Sion (E). There are projects coming up in the suburbs rather than the prime localities.

Though the market remains sluggish, the market will soon be back on its track. The delay in the infrastructure developments is another factor which makes a negative impact on the realty segment. The prime areas are blessed with a good infrastructure and so the prices are far beyond the affordable range. Speeding up the stalled and delayed projects will help the micro markets located in and around.

The property buyers after a prolonged hold on the buying idea are making a comeback. It is observed that the housing registrations increased by 15% with 43, 608 units in the first seven months of 2015 compared to the same period in 2014. The combined effort by the government and the builders by lowering the interest rate and discounts from the builders, the sales are picking up.

People are looking for affordable properties and this is available only in the suburbs of Mumbai. For home buyers, the micro market with good connectivity should be preferred. It is advised to avoid new projects in Mumbai and for home buyers ready to occupy apartments are the best option.

Points to remember while choosing a Real Estate Broker

In India, a real estate agent is often referred to as a broker. The reason being, these real estate broker are not like the ones which you come across abroad. Here, they are just for setting up the deal and have no liability whatsoever about the property. However, in a market as busy and congested as Mumbai or any other urban metro in the country, Real Estate Brokers play a major role in pushing a property to a prospective buyer.

If you are familiar with a broker through any past references or a direct dealing, then you are in safe hands. However, if the broker you are dealing with walked up to you seeing an advertisement or is a person who has found you through contacts, you must be very careful. Here are a few points which you should look out for before trusting your property dealing or buying decisions based on their recommendations,

·         Experience matters! – As it is with most things that are associated with Real Estate, the experience of a broker too matters. If this is his first venture, the probability of him being taken for a ride by the other party is highly likely. Steer clear!

·         Double check contacts – If a real estate broker brings in a contact, do not go blindly by what he says! Check and double check the contact and the claims they make.

·         Check on previous clients – If the broker has introduced you to his / her past clients as a token of his experience, never hesitate to get a piece of advice from them.

·         Do your homework – No matter what the broker says about the buyer or the developer he is showcasing, do your own homework on the authenticity

·         Compare pricing – Do not ever go by the pricing which the broker claims to be the best or is the par rates of property in the locality. Always ask around and decide for yourself if you are getting the best deal

·         License – Though most property brokers in the country are not license to any governing body or organization, there is always no harm in asking them about it. If a broker is licensed to a governing body, he can be held answerable and hence could be more genuine. Some of the certifications available for Real Esate Agents are:

o   CRS – Certified Residential Specialist

o   ABR – Accredited Buyer’s Representative

o   SRES – Senior Real Estate Specialist

·         Tests – There is nothing wrong if you test the skills of a broker yourself. A good agent should have a thorough knowledge of the prices and trends in and around the locality.

·         Other Misc Points:

o   A real estate agent charges a percentage of the value of the property as commission for helping in closing the deal.

o   Never yield to pressure and close a deal. Take your own sweet time.

o   Avoid dealing with brokers who hold power, especially in high political positions.

o   Do not give anything in writing unless you are sure that it is going to work in your favor. Always get a legal opinion.

Kuldeep is a retired Navy Officer who follows politics to the tiniest specifics. He hailsfrom Mumbai and loves the street food there.

 

Where can you invest in Gurgaon?

Gurgaon is one of the most sought-after real estate destinations in the National Capital Region. Like any other city in India, real estate is considered as the best form of investment even in Gurgaon. Before you decide on investing on Gurgaon property there are many things that you need to understand. You should know the current market value of the property in Gurgaon, compare the rents and property values with its neighbouring cities, understand the governing real estate laws and more importantly you should know which place in Gurgaon is ideal for your investment. Be it with regards to cost, or its location, accessibility, infrastructure, and other amenities, selecting the right place of investment is very vital. There are various benefits in investing in Gurgaon property such as clean and clear transaction deals, high return of interest, small value investment options and availability of land and apartments for sale in Gurgaon. Few real estate destinations in Gurgaon includes

Sohna Road

Sohna is a town and municipality in the Gurgaon District of Haryana. This small town emerging as a popular residential hub if the city. Located approximately 24 kilometres away from Gurgaon, Sohna road is facing rapid development in terms of infrastructure, new residential projects, and more. It house varies affordable investment option in both plots for sale and flats in Gurgaon. To meet high demand from the end users, builders are offering 1, 2, and 3 BHK apartments at realistic prices in Sohna Road. Also the well-laid, wide, six-lane road that connect Sohna with Gurgaon makes it ideal option for people working in Gurgaon.

Sector 43, Gurgaon

Its close proximity to the DLF Golf Course makes this area an ideal investment destination for professional population. There are several new projects being launched here that offers 1, 2, and 3 BHK apartments for sale in Gurgaon, multi-storey apartments, villas, residential bungalows, and individual houses.

Sector 51

This location came into sudden limelight last year due to its high price appreciation in a short duration. It is located in proximity to the Golf Course Road, Golf Course Extension Road, Sohna Road and NH-8. This well-planned region is well connected with neighbouring cities and sectors with well-laid road. It also provides all basic civic amenities such as water and electricity supply, proper drainage and sewage systems, and more. It also house reputed educational institutions, health centres and shopping centres. There are a large number of apartments for sale in Gurgaon Sector 51.

Sector 68

It is located very near to the Sohna Road and it is also known for high price appreciation of Gurgaon properties. It is connected to the Golf Course Extension Road and the proposed metro rail project is also expected to rise the demand for properties here. This is a rapidly developing location in Gurgaon and if you are planning to buy a flat in Gurgaon, this is the right time to invest in Sector 68.

Sector 43

This area is most sought after in Gurgaon due to its close proximity to the DLF Golf Course. With several commercial offices, malls and hotels, this is a fast paced developed location in Gurgaon. Though the prices of property in Gurgaon Sector 43 is high, it will surely have high return of interest in future.

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.

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.

Hunting for a home within Rs 30 lakhs in Mumbai? Check out these neighbourhoods

Buying a property in Mumbai might be a dream for many home buyers, but with the skyrocketing prices, the realty market of the city seems to be catering to the affluent alone. Generous living spaces are now getting smaller and smaller thanks to the growing demand. However real estate developers are looking for pockets that offer land in large parcels where they could build residential projects that suit the budget and lifestyle of the MIGs (Middle Income Group Individuals). Below we attempt to locate neighbourhoods that offer affordable housing units that fall well within the budget of Rs 30 lakhs.
Kalyan West and Titawala
Cited to be one of the fastest developing neighbourhood- Titawala is governed under the KDMC (Kalyan Dombivli Municipal Corporation). Projects are underway that are ensuring the vicinity remains a preferred residential locality. Development along social and physical infrastructure and proximity to religious tourist destination is fuelling the realty demand here. Builders who have both local and national presence are purchasing properties in Mumbai in large tracts only to create residential capital venture. Most of the projects here are either ready to move in or are under construction and are likely to finish in the coming months. 1 BHK homes that spread over a carpet area of 600 square feet are likely to cost an average of Rs 2,400 per square feet. However, the prices are likely to vary depending on the facilities and specifications offered by the builder.
As far as Kalyan West is concerned it is one of the most wanted residential locality in the city of Mumbai thanks to its developing social infrastructure. Some of the factors that are flourishing the realty sector here are its seamless connectivity to other parts of the city including its neighbourhing states like Gujarat and growing social infrastructure. The presence of schools, healthcare facilities are inviting many to invest in flats in Mumbai. Apartment here are estimated to hover over a price bracket of Rs 27 lakhs and 32 lakhs.
Neral
Situated close the Sahyadri hills, the locality is very near Matheran and is cited to be one of the ideal destinations for investment. The growing commercial belt and the presence of many retail establishments and healthcare facilities are luring many to invest here. Developments along Badlapur too have seemed to have a positive effect on the realty sector of Neral. A barren property in Mumbai especially in an area like this is being taken over by builders to build extraordinary living spaces. Multistorey apartments here are estimated to hover over a price bracket of Rs 2,100 and Rs 2,450 per square feet depending on the amenities provided by the builder.
 
Shahapur
The region is fast blinking on the realty radar thanks to its huge land parcels. Its proximity to arterial roads like National Highway 3 and the Delhi Mumbai Industrial Corridor has enticed many home buyers to invest here. The modest budget homes here are attracting many small time investors and second time home buyers to purchase many inventories here. Flats in Mumbai especially in this area is occupied by skilled and unskilled professionals from the neighbouring industrial units. 1 BHK flats here are likely to hover over a range of Rs 13 lakhs and Rs 17 lakhs.

The modest budget homes here are attracting many small and big time investors. Locals too are now preferring investing in second homes here due to its high ROI Return on Investment. They are now giving away their invesntories on rent as homes here yield handsome rental returns. For instance a home that was purchased for Rs 17 lakhs is likely to generated a rent hovering anywhere between Rs 5,000 and Rs 6,500 per square feet-depending if the homes are semi of fully furnished.

So if you are looking towards making a realty investment that is light on your pocket but promises high ROI- purchasing a property in Mumbai in any of the above suburbs seems an ideal investment decision.

What’s in store for real estate in Chennai

2014 was not that great a year for real estate in Chennai. The city recorded a drop in sales volumes during all the quarters of 2014. But the real estate sector here has been fairly protected from the prolonged slowdown faced by many of the metros in the country. The buyers in this market are very conservative and don’t want to speculate. They don’t generally want to park money in risky propositions. The market here is driven by end users and is hence protected from speculation to a great extent.

2015 is expected to be a much better year for the city. The housing segment is expected to grow and stabilize during the course of this year. Property prices and rentals are set to increase through the year according to latest reports. This will bring good cheer to the industry here which has been witnessing a slump for the past year or so.

Though these predictions have been made there are a few things that need to happen in order for the growth to materialize. From the developers’ side, many of them feel that the approval process to begin a project is rather tedious. There are about 58 approvals which have to be given by the government of the state before a developer can even start a project. Many of them are clamouring for a single window approval system. They seem to believe that the market for properties in Chennai will pick up if there are no delays in approvals.

Infrastructure is also a key driver when it comes to enhancing the demand for apartments for sale in Chennai. The thing about infrastructure is that it should not be limited to only certain parts of the city. The distribution of these infrastructure projects should not be limited to the known areas of the city. It should be evenly distributed so that the far flung suburbs also benefit from it. Currently the project which is attracting a lot of attention is the second phase of the Outer Ring Road which will north Chennai to south. Apartments for sale in Chennai which are located along this stretch will fetch good returns.
 
In some areas of the city even the most essential civic infrastructure seems to be missing. Properties in Chennai which are located along these pockets tend to not fetch much and are not preferred among buyers. If the infrastructure situation improves here, it will benefit the housing sector present in the city.

Areas which are catching the eyes of the buyers seem to be located in pockets which are affordable. North Chennai is one such market and so are the western parts of the city. With north Chennai, infrastructure remains a problem. If the projects in the pipeline come together and work out, the real estate values here will increase exponentially. There are areas along the GST Road which are also attracting buyer attention. These three markets will drive the real estate growth of the city in the days to come.

Why you should in real estate in Hyderabad right now!

Positivity seems to be the key word which has permeated into minds of those who are working in the realty industry in Hyderabad. They feel that 2015 is the year that good things will happen to the market here. The market for properties her which was once vibrant had slumped to the lowest ever in its history.

The political unrest which plagued the state of Andhra Pradesh affected the city of Hyderabad in more ways than one. The property market was the hardest hit with many micro markets which were previously doing well showing a dismal decline in prices. But with the bifurcation of the state and the city being named the joint capital of the two states, the economy of Hyderabad was expected to recovery along with the real estate sector.

But this was not the case in the 2014. Sales remained low with a large pile of inventory which was far from being sold. The prices for properties such as plots and apartments for sale in Hyderabad have really not recovered at all. Prices here remain have remained very affordable through 2014. In that year, the fact that buyers were willing to spend less than INR 2000 per square feet on average on properties here shows that the market has remained slow. Apartments for sale in Hyderabad which were priced between INR 20 to 30 lakhs were the top choices for buyers looking for properties. In fact most of the flats which are being sold in this city fall between the INR 10 to 40 lakhs range which is a very affordable range indeed.

But in 2015, Hyderabad real estate is expected to recover. This could happen as early as in the first quarter of this year. The atmosphere here has become conducive for this kind of recovery. The state government of Telangana has gone into over drive to ensure that the city gets good infrastructure. The focus has been on developing the outskirts of the city.  As a result micro markets which surround these areas are picking up real estate traction among buyers and developers.

Areas which are dominated by the Information Technology are the ones which have found favour among buyers. There was a point when there was no stopping the IT story of this city but things did not go as planned. Now that the political dust has settled and the economy is looking up, the city which was once the darling of this sector is back in business. This will only be good news for the city as this kind of movement bring in good cheer to the realty industry.

Since Hyderabad real estate is heading into recovery mode, now might be the right time to invest here. The prices are still pretty low here currently. But once the prices start to recover the market will not be as affordable as it is now. So if one can invest wisely now then he will be able to reap the rewards in the months to follow.

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