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.

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.

Watch out for builder’s antics when buying a property

Owning atleast a piece of realty is what everyone wishes for. To make that dream come true many slog, save whatever they could or avail a loan. This is why real estate business has seldom dipped since the year 2002. Though many of the nationalised banks and private banks offer low interest rates while taking home loans, they often miss to address the grievances especially when the property developers fleece them. In this unregulated realty market, property developers always have an upper hand over the home buyers as they have already established a good rapport with the banks and their personnel. Banks too act in favor of the developers as they provide them good business and that too in a consistent manner. As an effect, housing and property related complaints have risen in tandem with the rise in the number of projects.

The reason for the rise in complaints are many. Let us look at some of the common and major ones here. In most of the cases, the time taken to complete housing project normally exceeds the agreed delivery date and by that time the home buyer would have paid ninety percent of the value. If the home buyer had been living in a rented property he would end up paying the rent as well as the loan amount. In spite of all these hardships buyers remain calm fearing harassmet, retribution and further delay in completing the project and fail to make the builder hold responsible for his act.

There are instances where property developers purposely forget to hand over the completion certificate to the buyers especially if they had built structures deviating from the original plan. Buyers may face lot of hassles without this completion certificate. Without it, they will not be in a position to have their property registered, obtain utility connections, sell, mortgage or even reverse mortgage the property. They also have to live in the fear of getting their unapproved portion bulldozed by municipal authorities, anytime. Quality of the structure has always been a subject of controversy. Once entered into a agreement to construct, builders often brush off their responsibility to construct a structure of good quality. Many a time, buyers feel the heat once they have occupied the building and feel cheated if the quality is compromised.

Instead of blaming it all on the property promoters and developers, it is actually the responsibility of the buyers to stay vigil. To avoid delays in delivery, they should go visit the site of construction from time to time, check the situation and act accordingly. If they feel that the quality is being compromised they can always take up the issue with the legal department or the builder himself and sort it out in an amicable manner. While making an agreement it is always better to put down all the points in black and white to avoid confusion and disappointments at a later date. Visiting the developer’s earlier projects and speaking to their customers to know the actual situation will be of great help to decide on whether to strike a deal with that particular developer or not.

Author bio: Sulabha is a resident of Mumbai and has a penchant for all things bright and beautiful. A known person among blogger circles, enjoys writing for IndiaProperty.com about realty and has good information on Flats for sale in Thane

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.

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.

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.

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.

Why you should think about investing in micro markets in GST Road

Perungalathur
A property in Chennai such as an individual house located in this micro market can cost about INR 4400 per square feet on average. About a year ago the going rate for this property type stood at INR 5900 per square feet on average. This is a drop of about 25% over the last year. 

The going rate for apartments here between April and June 2014 stood at INR 4100 per square on average. This was a drop of about 1% when compared to the previous quarter when the prices stood at INR 4200 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 3900 per square feet on average which was a drop of about 4% when compared to the previous quarter. In the third quarter the prices went up by about 2% and stood at INR 4000 per square feet on average.

Guduvanchery
A property in Chennai such as an individual house located in this micro market can cost about INR 4400 per square feet on average. About a year ago the going rate for this property type stood at INR 4600 per square feet on average. This is a drop of about 5% over the last year. 

If you are looking for property in Chennai then Guduvanchery is one of the best places to begin at for affordable ones. The going rate for apartments here between April and June 2014 stood at INR 3200 per square on average. This was a drop of about 7% when compared to the previous quarter when the prices stood at INR 3500 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 3600 per square feet on average which was an increase of about 10% when compared to the previous quarter. In the third quarter the prices took a dip of about 13% and stood at INR 3100 per square feet on average.

Vandalur
A property in Chennai such as an individual house located in this micro market can cost about INR 3600 per square feet on average. About a year ago the going rate for this property type stood at INR 5900 per square feet on average. This is a drop of about 39% over the last year. 

The going rate for apartments in chennai here between April and June 2014 stood at INR 4000 per square on average. This was a drop of about 6% when compared to the previous quarter when the prices stood at INR 4200 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 4000 per square feet on average which was an increase of about 8% when compared to the previous quarter. In the third quarter the prices went up by about 12% and stood at INR 4500 per square feet on average. Looking at the price trends in this micro market, Vandalur is also another place that should be on your radar if you are looking to buy flats to buy in Chennai.