Low-Cost Housing: Future of Indian Realty Sector

Industry experts are closely monitoring the various attempts by developers across the nation to revive the realty sector. There have been freebies, huge discounts or attractive payment options. Yet, the end result was not sufficiently satisfactory. There is still room for improvement and this is widely agreed to be the perfect time for implementing effective strategies.

The city of Bhubaneswar recently came across a viable strategy of focusing more on low-cost houses. The prices could even be below 6 lakhs, and attracted huge numbers of takers.

A critical concern is the unsold properties across the nation, and with more and more affordable housing being built, this could be corrected to a great extent.

One among the recent surveys pointed at the fact that the nation is in need  of more number of budget housing than luxurious projects.

The state of Odisha seems to have realized it and in a recent exhibition by Credai, several units were sold off for around five lakhs.

Several high-end properties in the city are lying unsold, but there is hope that this is not going to be the case with low-cost properties, the maximum price for which is around 20 lakhs.

There are options as well, the expo had 1 BHK at the above price, whereas 2 bhk came in the range of 13 to 20 lakhs.

The builders are planning to continue this trend by offering low cost housing in this range in the coming years. Several such projects are being developed across the city.

This is the first time that huge numbers of such flats are being offered, and is a timely move that could have long term impacts.

This move by the state is an appreciable move, and could very well be adopted by other states as well.

2P6QS97F46TE

Raja housing reviews that Bangalore is Where There Is Maximum Demand for Office Space

India is expected to observe the second highest demand regarding office space among the top thirty nations in the Asia-Pacific province in 2014, says a recent analysis by Cushman & Wakefield, an established property consultancy firm.

Among Indian cities, Bangalore will be experiencing the maximum demand, further says the report. The Silicon Valley’s imminent status as the nation’s biggest market is due to the prominent presence of reputed IT/ITES firms as well as multinational companies. It is estimated that the city would require approximately 6.3 million sq ft in 2014.

Yet, with several commercial developers willing for a 2015 launch, more development is likely to take place towards mid-2014 and 2015. Several awaited launches of massive office space is likely to happen towards 2015.

Many firms in other locations are planning to relocate to Bangalore, and local firms are considering expansion, thereby enhancing the commercial prospects of the place.

The global leader in the category of maximum office space demand is Tokyo, Japan where the statistics stand at 7.6 million sq ft.

Perhaps, Bangalore could have shown a better figure, but owing to the worldwide economic slowdown and the consequent impact on the IT sector, the city was pushed downwards in the list of cities with demand for office space.

Also, of the total launches in India in last year, very few have been in the commercial sector, with the rest being residential projects.

Still, the city is at the top among Indian cities and with about 14 % increase in office space demand, Bangalore remains the commercial favorite of the nation.

Following Bangalore is Delhi NCR region with market absorption of 3.7 million sq ft.

The city of Mumbai shows a unique picture, with good market absorption rates but significant vacancy levels. Important peripheral markets like Gurgaon in NCR and Mumbai’s Goregaon and Malad have perceived lesser demand but extensive leasing activity by firms.

Together, there has been a demand for nearly 900000 sq ft in these areas. While comparing the previous years, what comes out is that there has been a decline in office space across vital markets in the nation.

More specifically, of the office space of 1.8 million made available in 2013, approximately about 1.2 million was sold off or leased out, amounting to only 20 %.

Slow transactions and preference for a better deal were the causing factors emerged out of the analysis.

Cities like Bangalore, National Capital Region and Hyderabad would be the prime contributors towards filling up the gap in commercial space. The cumulative demand for office space in 2014 would amount to 37 million sq ft.

The study also highpoints that private equity( PE) investments for the 1st three quarters in 2013 improved to about 25 % over the equivalent period in 2012, chiefly due to better revenue from lease deals. However, the overall deals for first three months in 2013 dropped to 21 from 27 pointing at an increased average deal size.

To get more updates please make visit on our 

http://rajaaristosbangalore.bravesites.com

http://rajaaristosbangalore.blogspot.com

http://rajaaristosbangalore.webnode.com

http://rajahousingbangalore.weebly.com

Raj aristos common update - Real Estate Market could Gash in 2013

Investing in property definitely has been a punch for the middle class people in India who challenge. Over the last decade, the property values have increased by four times on an average.

Indicating the slow sales and rising inventories, real estate experts say that till now the real estate has benefitted from the dream of the common man to buy home, but recently more signs show that this trend could be ending very soon.   To prove this, a recent report in Economic Times shows that there is a surplus of independent homes in South Delhi and the story is same in separate micro-markets around the country.

Hence, this situation arises a question that could real estate in 2013 could crack.  In order find answer for this question, let us go back a decade ago and take a look at the real estate strategy:

First, let us start between the period of 1995 and 2002, when the Indian economy was at an annual rate of 4.9%.  According to a developer in Mumbai who wanted to remain anonymous, a year ago the real estate prices eased by 2-3% in many large cities and by the end of 2002, year-on-year decline were by 20%, which was extremely steady.  He also added that the growth by 5-6% for three years and a similar situation may be continued.

Second, the entry of many proficient real estate investors; over the past 10 years, the market has witnessed an increased number of middle class Indians who wanted to invest in property, whose hypothetical behavior was same as the middle class Americans, who bought houses just for a 15-20% profits in a couple of years.

The real estate situation in India roughly in 2013 is the same, where investors’ buyer properties in real estate expecting for a 20-25% gain every year.  But, Sanjay Dutt - Chief Executive at Cushman and Wakefield said that if a developer sells 2,000 flats and 70% of buyers intend to put them on the market in a couple of years, then those should not be considered as sales.

This creates a circumstance, where houses in under-construction projects in large metros are offered anywhere between Rs 1,000-1,500, which is less than the builders selling price. At the peak of this situation, it is likely that the market would rectify.

Last of all, according to the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in urban areas around11.09 million homes are lying vacant.  Sellers keep it vacant hoping for an increase in capital values in the market, whereas the buyers think the current prices are unreasonable.  When the stocks pile up, then this could also warn for a price correction.

Raja Airstos News - Expected Appreciation Rates for Commercial and Residential Properties

The possible appreciation levels are the prime factor that people consider while opting for a property, commercial or residential. However, it is not possible to calculate an exact appreciation, only assessment can be made. Many factors come into picture in the analysis; the location, type of property, proximity to important areas, age, the development that took place, possibility of development in the future, the level of maintenance done and the inflation rates could influence the property value.

A property in a premium location, such as close to the city center, near attractions or near educational/medical facilities would experience a more or less steady flow of takers when compared with properties in remote areas. However, of late, many are showing interest in outskirts or far-fetched areas in view of exceptional development possibilities and much lower price. This way, you can look forward to great returns on small-level investment.

A well maintained property is always attractive than those with poor upkeep. Also, the age of property matters a lot, though it is not always possible to generalize, a rough calculation shows that a period of three years is fine.

Many experts are of the opinion that though should be based on the area, a property retained for a minimum of three years stabilizes your income potential. And it is ideal to wait for 7-5 years if looking for profit. Again, certain areas have got immense potential for great returns within a few months, for instance the Delhi NCR.

Also properties in an area with low tax rates and an increasing population would have a positive influence on prevailing rates. Improvement done on the property is also an encouraging factor for increased appreciation. The supply and demand ratio is yet another factor to affect the appreciation.

Commercial investments in premier locations could give buyers steady and safe rental income and property appreciation could be beyond expectations. In fact, many are of the opinion that a commercial asset is more income-generating than a residential property.

The initial investment for commercial structures could be more, but is worth it, points out experts. Still, a detailed assessment of documents is mandatory for a safer investment. 

Below is an overview of some of the prime locations in the country with great growth potential for residential properties.

With huge infrastructure projects in the pipeline, places like the Dwarka Expressway, New Gurgaon etc are likely to attract a lot of commercial and residential buyers looking for significant returns. The eastern suburbs in the Mumbai city are again potential investment regions. Bangalore looks forward to a steady supply and the increase in prices has been up to 10 to 30 % within a year.

According to Amit Grover, DLF Director, commercial spaces in chief Sectors in Noida are worth investing. A mall space of minimum 3,000-5,000 sq ft is needed for an ideal investment in Gurgaon. Bangalore offers many options like Bannerghatta Road, ORR and Indira Nagar. Areas like Viman Nagar or Kalyani Nagar are suggested for Pune investors.  In Mumbai, Gurgaon, metro regions, navi Mumbai, thane are good options. Ambattur and Guindy would be viable investment choices in Chennai.