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.

Mira Road – An ideal destination in Mumbai for affordable home buyers

Mira Road has been the most preferred destination in Mumbai among the home buyers who look for budget homes. Since the inception of the locality in 1985, the real estate developers have been engaged in buying agricultural land and began to developing townships with budget dwellings.

With extensive mangroves, salt pans and lush green stretches, Mira Road is certainly a haven for end-users looking for budget homes in Mumbai. In the recent past, Mira Road has been witnessing several civic infrastructure development. Besides, the locality posses excellent social infrastructure with the presence of reputed schools, hospitals, restaurants and shopping malls and cinema theaters.

The locality's seamless connectivity to Mumbai has been playing a major role in increasing the demand for residential property here. With the presence of Western Express Highway in the vicinity, the Mira-Bhayander belt gets easy accessibility to the western suburbs and Thane can be reach via Ghodbunder Road. Owing to it's proximity to Mumbai and seamless connectivity through road and rail, Mira Road has emerged as the highly preferred area in the western suburbs especially for home buyers who are looking for 2 bhk flats in Mira Road. Particularly, the demand for buying flats in Mira Road has been high among the working professionals who are looking for affordable homes in Mumbai. With several residential projects being developed here, the locality offers multiple home buying options for the end-users.

When compared to other property types, the locality consists of more multi-storey apartments with smaller housing units. Some of the major builders constructing multi-storey residential projects here include Lodha Group, Chheda Group, Leena Group, Jangid Group, Vardhaman Group, Sanghvi Group, Ackrutiy City, Kalpataru-dynamix Group, RNA Crop., DB Realty, Space Realty, Strawberry Construction, Raj Realty, and Ram Nagar Development Corporation.

Essential tips for first time home buyers.

Buying a house can be an exciting thing, risky as well if one is not careful enough. When looking at a house, you could have a long wish list, but you need to understand that no house is ever perfect. The way it is logical not to judge a book by its cover, the same goes for a house too. So, evaluate every aspect before making up your mind.

Given below are a few important tips for an informed decision:

Always think long term and about re-sale:

Are you going to have kids? Will there be elderly people? Is your stay going to be a short one post which you are planning to sell it off? If so, whom are you planning to sell it to?

These are few of the basic things that you need to be very clear about even before you start looking for a house to buy.

Always prepare a checklist:

Home buying has always been an emotional process. Technically speaking, one should cast aside all emotions while evaluating a house. But, practically the same doesn’t happen throughout. So, the best way is to come up with a checklist having the must haves, nice to have and other things. Ensure you make enough copies of that checklist. Make sure you go by that checklist every time you visit a house. Take necessary photographs for reference(s). If you find anything interesting but, if the checklist suggests otherwise, re-think immediately.

Evaluate the expenses while budgeting for the house:

Don’t just limit yourself with principal, interest, insurance and taxes. Add utilities, cost of upgrades and commuting, travelling costs, etc. as well to check if you can afford to go ahead.

Verify the contract/ownership documents:

If the long term plan is to rent out or sell the property. Check thoroughly what the papers say you are authorized to do. Sometimes, it turns out that the property you are buying actually can’t be sold. It can only be transferred to someone through a deed bond. In such cases, things can’t be done conventionally and consulting a property lawyer becomes inevitable.

Reading the documents carefully before signing:

The property in chennai purchase is regarded as one of the largest and most important purchase a person ever makes in a lifetime. It is mandatory that you understand the terms and conditions. If there’s any doubt, bring it to the notice of the agent or the broker immediately. Still, if you are not convinced, say goodbye to them. There are more than enough people in the world to happily help you out in a fair way.

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.

 

Now is the right time to invest in Gurgaon

Considered to be one of the leading industrial and financial center of the country- Gurgaon is a city that is located 32 kilometers away from New Delhi. Situated in the NCR (National Capital Region) near New Delhi, the city has witnessed brisk development. Cited to be one of the most preferred residential destination, many reputed real estate players are now creating extraordinary living space. Although the city is undergoing a turmoil due to lack of infrastructure new projects in Gurgaon are offering round the clock civic amenities thereby luring many potential home buyers.

According to recent reports, properties in Gurgaon have appreciated over 30% in the past one year. The real estate scene has revived from its stagnant stage and the market is currently brimming with construction activities. While the construction delays pushed home buyers to postpone their decision to buy homes, the current scenario is offering the perfect opportunity to individuals to buy their dream home. In a span of just one year, the market has show signs of recovery and for over 50 home buyers, there are over 100 homes available. Residential apartments in Gurgaon range from affordable to mid-segment to even ultra-luxurious homes. The constant demand for all of these sectors have resulted in abundant supply of housing units. Renowned real estate developers have created a number of residential projects that has given the home buyers the bargaining power.

Cited to be one of the best times to invest in the real estate market there is an inherit demand for bigger homes. While more than 50% of ready to occupy 3 BHK homes are available, 25% of 4 BHK flats are ready to be handed over. The insurgence of IT/ITes sector is improving the realty market, many working professionals are now attracted towards investing in affordable homes while the middle-income class group is targeting the mid-segment. A number of new projects in Gurgaon have mushroomed along the southern peripheral road that leads to National Highway 8. This stretch not only provides great connectivity towards cities like Manesar and Dwarka but it will also become one of the most sought after locality as its surrounded by developed sectors like Sector 70, Sector 78 and Golf Course Extension.

In just a span of one year capital values of apartments along the National Highway 8 have seen an appreciation of 15%. While the year 2013 recorded an average of Rs 5,900 per square feet, the following year saw a hike of Rs 1,000 ensuring that the current prices fall under the average of Rs 6,900 per square feet. Apart from NH 8, residential projects in Gurgaon along the Dwarka Expressway have seen a constant demand. Property prices along this stretch have increased over 42% in the past two years. Strategic location, great connectivity and top notch amenities are some of the factors that are pushing capital values of homes here. The ongoing rates for apartments in Dwarka Expressway are estimated to hover anywhere between Rs 5,300 and 5,600 per square feet.

So for all those home buyers who have postponed their decision to purchase a property, buying a property now is a safe bet.

Why properties in Porur are in demand

The real estate sector is Chennai has never really seen the bad days witnessed in the northern markets of the country. The economic slowdown and high inflation did have an effect on the market, but not to the extent that it slumped. The city is considered to be one of the most liveable cities in the country and the real estate here is driven primarily by end users rather than investors. This fact has actually proved to be very beneficial to the realty sector of the city. Since the market is primarily driven by end users, this market is relatively free from speculation which has kept it relatively stable. 

Pockets of growth have been found in northern and western parts of the city. The more well established micro markets in the city which are located in the southern part of Chennai are either saturated or nearing saturation. The number of properties which are available here are also very limited and can be bought by only the affluent folks. The situation is the exact opposite in the northern and western parts of the city were the property rates are much more affordable and there is decent availability of land as well. 

Porur is a micro market which is located in the western part of the city. The area is considered to be one of the most sought after real estate destinations in the city. Multiple factors have worked in the favour of this micro market. The area enjoys great connectivity with the rest of the city. Some of the major roads in Chennai are either passing through this locality or are located in close proximity to it. Major connectors such as the Chennai Bypass Road, the Arcot Road, and National Highway 4 pass through here. The Poonamalle High Road is located in close proximity to the micro market. Apartments in Chennai which are located here tend to be popular among buyers because of the connectivity factor. 

The going rate for apartments in Chennai which are located here are priced at INR 4500 per square feet on average. An individual house for sale in Porur is priced at INR 5200 per square feet on average. There is maximum demand for 2 BHKs in this locality. The unit size which is most preferred here falls between 700 and 1200 square feet. This shows that small to medium sized flats are catching the buyers’ attention as far as this micro market is concerned. The most preferred budget range for flats here falls between INR 30 to 50 lakhs. 

Another reason why a property such as a plot or an individual house for sale in chennai is popular is because of the presence of the Information Technology sector here. There are about three IT parks in this micro market which house many well-known companies. The presence of the Ramchandra Medical College has led to the increase in demand for rental properties here. Areas which surround this micro market have also enjoyed real estate appreciation.

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.

Why investing in plots in Ambattur makes sense

North Chennai is well on its way to becoming a booming real estate destination in Chennai City. With south Chennai heading towards saturation and property rates there being very expensive, areas in north Chennai have become popular. One such micro market is Ambattur. The area was primarily known to be an industrial hub and was populated by blue collar workers. The scenario has now changed with many Information Technology companies setting up base there and looking for commercial properties for sale in Ambattur.

The going rate for plots in Ambattur stood at INR 2600 per square feet on average in the last quarter of 2012. In the first quarter of 2013 the going rate stood at INR 2900 per square feet on average. This was an increase of 11% when compared to the last quarter of that year. In the second quarter of that year the going rate for plots here stood at INR 2400 per square feet on average. This is a dip of about 17% in the price for properties in chennai. In the third quarter of that year the going rate remained unchanged. But in the last quarter of that year the going rate jumped to about INR 3200 per square feet on average. This was an increase of about 33% when compared to the previous quarter. In the first quarter of the 2014 the going rate stood at INR 3000 per square feet. There was a marginal dip in prices again the second quarter of 2014 as they stood at INR 2900 per square feet. Currently the going rate for plots here stands at INR 3600 per square feet on average.

The going rate for apartments in this micro market currently stands at INR 4100 per square feet. This is an increase of about 3% when compared to the previous quarter. In the third quarter of 2013 the going rate for apartments here stood at INR 3400 per square feet on average which was a dip of about 14% when compared to the previous quarter. In the last quarter of that year the going rate stood at INR 5000 per square which was tremendous leap of about 50% in prices. In the first quarter of 2014 the going rate once again dipped to about 21% and stood at INR 4000 per square feet. The going rate for individual homes here stands at INR 5500 per square feet on average. About a year ago the going rate for this type of property stood at INR 6000 per square feet.

There is maximum demand for  apartments in chennai.  This is followed by 1 BHKs. The most preferred unit size for apartments here falls between 751 and 1000 square feet. Buyers are willing to spend anywhere between INR 20 to 30 lakhs on apartments here. One can easily purchase a 3 BHK apartment here within a budget of INR 40 to 50 lakhs. Investing in residential or commercial properties for sale in Ambattur can be a good decision.

Yamuna Expressway turns into an investor’s haven

Yamuna Expressway in the National Capital Region is one of the emerging investment options today. It has become the hub of real estate development since it became operational. The Expressway stretches along 165 km starting from Noida progressing to Greater Noida and Agra. The Yamuna Expressway crossing these two important cities of Noida and Greater Noida has certainly spurred the realty activity in the region. These two areas are well developed and the Expressway adds to the connectivity of the region and appreciating prices of property in Yamuna Expressway.

Areas in Noida are developed and today stands in the forefront of restrictive land availability. The land is becoming exclusive and private and builders have individuals have to pay a hefty price for own a land in Noida. 

As in the case of many developed areas, appreciation of property is dependent on its location and return on investment mostly come through rentals. But with the coming of property in Yamuna Expressway it has opened up many opportunities for individuals and builders to invest in the peripheries of the National Capital Region.

Major developers like Jaypee Builders have already announced projects along the expressway. They have been said to acquire huge plots in Yamuna Expressway for the same. The major attractions that brings investors to this area is the F1 track in the vicinity and its close proximity to one of the most revered tourist spot in the country, Agra. Major developments have been planned keeping in mind its strategic location. 

For now the expressway and the connectivity it provides is the only major infrastructure development in the area. With the successful operation of the opportunities provided by the Yamuna Expressway, government and the development authorities have charted out other major infrastructure projects to cover this region. Although this might take a few more years to come to life, for the ones investing in plots in Yamuna Expressway, this is good news. 

Your property is sure to appreciate by 30 to 50 percent if industry experts are to be believed. Another major attraction factor for the investor remains its close proximity to the developing regions like Greater Noida. There is a lot of real estate activity going on in these regions, which will further translate and expand to its neighbouring territories. Things are surely looking up for the Yamuna Expressway stretch.

Prices of multi storey apartments have remained stable over the over. Today one can buy an apartment for a reasonable cost here. Affordable housing projects also show good prospect in the region. Residential plots however have shown good demand with an appreciation of 30 to 40 percent in the past year. Plots can be considered an ideal investment choice in the region for the ones not looking to reside here. Rental values in the area for now are low and is said to pick up in the following years. The appreciation of rental and capital value will be a slow process and will show a significant change only in the next few years.

Author Bio:

Sulabha Kulkarni is a freelance writer and an avid blogger, following the real estate sector and property in noida closely for many years. Her areas of expertise are finance, apartments in chennai and real estate sector in India 

Top Three Residential Localities in Bangalore

Marathahalli

Marathahalli is an IT hub located in the eastern part of Bangalore. The going rate for apartments located in this micro market stands at INR 3600 per square feet on average. Individual homes and villas cost INR 7900 per square feet on average. 2 BHK apartments for sale in Bangalore located in this micro market are the most in demand. This is followed by 3 BHKs. 1 BHK apartments for sale in Bangalore located here come in at third place. The most preferred unit size for apartments here falls between 1001 and 1250 square feet. This is followed by the 1251 to 1500 square feet range. 

Buyers are most willing to spend anywhere between INR 30 to 40 lakhs on properties here. This is followed by the INR 40 to 50 lakhs range. They are most willing to spend anywhere between INR 3001 to 3500 per square feet on apartments here. This is followed by the 3501 to 4000 per square feet range.

Yelahanka

Yelahanka is located in the northern part of Bangalore which has become quite popular among home buyers. The going rate for apartments located in this micro market stands at INR 5600 per square feet on average. Villas in Yelahanka can cost anywhere between INR 7000 to 13000 per square feet depending on the amenities offered. 2 BHK apartments for sale in Bangalore located in this micro market are the most in demand. This is followed by 3 BHKs. The most preferred unit size for apartments here falls between 1001 and 1250 square feet. 

This is followed by the less than 500 square feet range. Buyers are most willing to spend anywhere between INR 20 to 30 lakhs on properties here. This is followed by the INR 10 to 20 lakhs range. The INR 2000 per square feet range or more is the most popular per square feet budget range here. This is followed by the 2501 to 3000 per square feet range.

Sarjapur Road

Sarjapur Road is one of popular upcoming micro markets in Bangalore located in the south eastern part of the city. The going rate for apartments located in this micro market stands at INR 7900 per square feet on average. Individual homes and villas cost INR 6000 to 7000 per square feet. 2 BHK apartments located in this micro market are the most in demand. This is followed by 3 BHKs. 1 BHK apartments for sale in Bangalore located here come in at third place. The most preferred unit size for apartments here falls between 1001 and 1250 square feet.

 This is followed by the 1251 to 1500 square feet range. Buyers are most willing to spend anywhere between INR 30 to 40 lakhs on properties here. This is followed by the INR 10 to 20 lakhs range. Buyers here are willing to spend an amount which is equal to or more than INR 2000 per square feet on apartments. This is followed by the INR 3001 to 3500 per square feet range.