Mixed Picture – Ups and Downs in Indian Real Estate Market

There is a mixed picture in the Indian residential property market at present with some locations seeing prices and sales rise while they are falling in others.

Chennai’s central business district has seen the highest price increases due to surging demand, according to NHB Residex, an RBI-supervised mechanism that tracks housing prices in 15 cities.

However, prices in North Chennai, most notably Tondiarpet, Perambur, Dr Radhakrishnan Nagar and Narayanappa Garden, saw a fall due to slow infrastructure development.

 

Despite the economic slowdown, high interest rates and inflation, prices of houses in the city’s hotspots of Anna Nagar, Kilpauk, Nungambakkam, T Nagar and Adyar have been rising. Prices in areas close to Nehru Nagar, Chepauk and Marina rose 62% compared to the quarter ending in June.

‘Chennai’s residential market is expected to see unabated growth during the next few quarters. Active demand will be concentrated in locations closer to the city centre,’ said a recent report Cushman & Wakefield. House prices in Chennai have jumped 9% in the third quarter compared to the June quarter.

Prices in Virugambakkam, Anna Nagar, Kilpauk and Nungambakkam have quadrupled since 2007, when the National Housing Bank (NHB) begun the Residex for Chennai. The demand for residential units in Chennai is likely to see a compounded annual growth rate of 11% during 2011 to 2015.

Real estate consultants blame limited supply and huge demand for property for the surge in prices in the central business district. The city, awaiting the metro rail, monorail and extension of MRTS, will continue to see demand for property near these infrastructure developments, and a surge in prices seems natural, they believe.

But a slowdown in demand for residential properties has affected Ahmedabad’s real estate market. The latest quarterly Residex figures point towards an overall dip of 4% in real estate prices for the third quarter compared with the previous three months.

The western part of Ahmedabad has seen a rise prices largely due to upcoming car plants on the Sarkhej-Sanand stretch, and the metro rail project.But other areas like Prahladnagar, Ambli, Bopal, Jodhpur, Satellite, Solagam, Shilaj road, Vastrapur, Vejalpur, Ambawadi and Chandkhedagam has seen 5.46% in the same quarter.

But in the western zone that prices fell by 9.38% between January and September this year while the northern part of the city such as Buddhnagar, Saijpur-Bhoga, Sardarnagar and Vishnunagar prices have increased by 10.77%.

The central zone saw a rise of 7.51%, which includes areas like Bhadra, Dudheshwar, Gaikwad Haveli, Girdharnagar and Wadigam. The steepest fall in real estate prices was in south zone at 26.11%.

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The New Land Acquisition Bill of India

Highlights of the Bill :-


The states are free to frame their own laws and if they so desire, are free to improve upon the provisions stipulated under the proposed bill. It allows flexibility to the state government on whether or not to intervene on behalf of private players in land acquisitions .

The urgency clause can only be invoked in national defenses and for security purposes; R&R needs in the event of emergencies or natural calamities. Now, farmers will get only four times the market price in the rural areas while in urban areas it will be double the market price.

In any case, the R&R package will be applicable only when the private parties acquire 100 acres or more land in the rural areas and 50 acres or more in urban areas.

The promised R&R for those subsisting on the acquired land will now be applicable only to those who have been eking out a livelihood for at least three years on that piece of land. Earlier, all those sustaining themselves on the acquired piece of land were made eligible forcompensation. 

While the purpose of acquisition can’t be changed, the bill, however, now allows transfer of land with the approval of the state government; if the transfer is made without any development of the land, the farmers will have to be paid 20% of the appreciated value.

The bill specifies timelines for the payment of compensation. The price of land has to be paid within three months of the award, and the other monetary compensations within six months and the infrastructure entitlements under the R&R package within 18 months. Penalties will be levied on violation.

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Marble and Granite – Give Royal Touch to your Dream Home

Marble gives a royal and stylish look to your home or office and it is easy to install. Marble and granite floor tiles are becoming increasingly popular nowadays.

Granite is the most preferable option when it comes to tiling the floor. Granite tiles are very popular among people due to its elegant look and durability. There is an array of granite floor tiles that is used for tiling places like floors, wall, stairs, homes, and balcony. There are more than 2700 verities of granite, which are available in multitude of colors, textures, and patterns. There is various color options available in the market, which are brown, white, green, gray, blue, and yellow, burgundy, pink, and many more.

The granite tiles are finished in varied types of finishings that are polishing, honing, leathering, antiquing, brushed, or flamed. However, before using tiles keep the type of finishing in mind, as every type of tile has a different purpose. For instance, polished tile is meant for indoor flooring of less traffic zone, countertops, and vanities as polish makes the surface slippery. Like wise, Honed tiles are good for both indoor and outdoor flooring, as it is very less slippery.

One other hand marble tiles are equally popular among customers, owing to its elegant looks and low maintenance. Besides, it has numerous benefits like long lasting durability, easy installation, smooth surface, natural cooling and heating, light reflection, easy to clean, and cost effective. Still, there is a disadvantage of this tile, which is, it has tendency of developing stains. This is the reason marble flooring is not suitable for areas like kitchen and walls.

However, if the tiles are cleaned properly on regular basis it is not that tough to maintain it. Therefore, to make it sparkling, keep it free from dirt and dust. Regularly clean it with damp mop or cloth and use stain-removing liquid to keep it stain free. There is a wide array of marble floor tiles available in the market that can be provided in different colors, designs, and finishings.

Slate is another type of natural stone that is widely demanded by the clients for construction. The slate is most preferred in the form tiles. There is a huge variety of slate floor tiles, which is available in more than 24 different shades. These shades are black, pink, rust, grey, gold, red, purple, and many more.

The Slate Floor Tiles widely used in areas like offices, rooms, and lobbies due to its non-slippery nature, whether it is a high or low traffic area, the tiles remain in the same condition for years. Owing to its non-porosity, it is easy to clean and sweep, which helps a lot to maintain it for long time. Every tile is unique in itself, there are numerous of colors, textures, and designs are available to choose from.

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Area Of House – Understand The Terms And Language

Buyers of real estate should be very aware of what the builder or seller implies when he talks about area. What area is inclusive of and what it is not is the first clarification a buyer should seek.

For instance, a builder may tell a potential buyer that his quote is based on an area covering 3,000 sq ft. And, it may seem like a bargain. But what the buildermay be referring to is super built-up area while the unfortunate buyer is under the assumption that it is the amount of area he will get in his apartment.

TYPES OF AREA

Carpet Area :

Carpet area is the least inclusive. It will tell you exactly how much of space you will have in your home. It is literally defined as the exact area within the walls of your home. To illustrate, if you had to lay out a wall-to-wall carpet, how much area would it require? That’s carpet area.

Built-up Area :

Built-up area goes one step ahead and includes carpet area and the area being occupied by the walls of your home. Hence, the total area of your home including the area of the walls.

Super Built-up Area :

Super built-up area is what builders often talk about. It is inclusive of carpet and built-up area. It also includes all the area under common spaces – the apartment’s proportionate share of the lobby, staircase, elevator and corridor outside the apartment.

The confusion arises over the fact that what is exactly included under this definition is left to the discretion of the builders. Some may even include the terrace, security room, electrical room or pump room.

The total area of these “extras” is taken into account and divided by the number of apartments in proportion to their size.

What you must be aware of :

Old buildings generally have a higher percentage of carpet area (around 80%) to total area as compared to new buildings, where it could be as low as 65% to 70%. So when you compare quotes, compare carpet area to carpet area, notcarpet area to super built-up area.

Speak the same language as your builder. There is no fixed ratio of super built-up to built-up or carpet area. The market practice is that the ratios are on the super built-up area and are marked down. That means, if the super built-up area is 100 and the carpet area 80, the latter is 80% of the super built-up area. Generally, the ratios in the market are 70:30 (super built-up to carpet). But, builders have been known to go as low as 60%. So a quote on a 3,000 sq ft apartment could mean a carpet area of anywhere from 1,800 sq ft to 2,400 sq ft.

Always ask the seller exactly how much the super built-up area and the carpet area amount to. And then ensure that this break-up appears in the Agreement of Sale.

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Home Loan – Be Careful While Balance Transfer

Home loan industry in India has come of ages. Consumer is King. And definitely, if you are the one with sound financial background and impeccable credit history you can strike a better deal with the banks in terms of interest rates and other payment conditions.

Interestingly, the same is applicable on those, as well, who have already availed a loan from a bank. Near about all the major public and private sector banks are now offering the option of ‘Balance Transfer’ on housing loans

What is Balance Transfer all about?

There are times you find that the interest rate on your home purchase loan that you were paying at the rate of 10.5 per cent per annum was quite high in comparison of 9 per cent offered by some other bank.

In this case you can trigger off the balance transfer option with your existing bank, under which the unpaid portion of your home loan would get transferred to your desired bank, thereby taking benefit of the difference in the interest rates.

Things to take care of:

Tenure of loan: Ideally, you should consider taking the balance transfer option when the remaining part of your payment period is more than 5-years.

There is no point in transferring the home loan from one bank to another if you end up paying pre-payment and other processing charges even more than the difference of amount you had to pay towards interest in the normal course.
Pre Payment Charges: Banks like SBI, IDBI and ICICI offer benefits like payment of the pre-payment charges to your existing bank. So you must confirm the same with the new bank that are they ready to deal with this matter or not.

Additions in the loan amount: You must confirm that the amount of your home purchase loan is perfectly in line with the balance you had in your previous bank. It may happen that your new bank pays all pre-payment and processing charges on your behalf and add the amount later to the principal amount of your housing loan.
In such case, you have to suffer the impact of compounding, which does not favor you in the long run.

Final Word:

Seeking balance transfer option needs the similar degree of caution and study that you undertake while taking home loan. And of course, you can save a considerable amount of interest charges under this option once you strike the right chord!

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Real Estate 2011 – How it is going and How it will Go???

After one and a half years of gradual consolidation, real estate in India has fathomed its own comfortable ground, and is poised at the right threshold to take a giant leap in years to come. While a differential pace of strengthening is evident across sectors, geographies and segments, several property market indicators point to the fact that the industry has indeed bottomed out in the current cycle. The fears of a possible double dip recovery have given way to beliefs in the sustained healthy levels, if not a rapid growth.

The experience thus gained in this slowdown is invaluable and will serve real estatestrategists for years to come. The various stakeholders in the entire supply chain – the material manufacturers, developers, property consultants, occupiers, investors and policy makers, have all emerged stronger and primed than yesteryears. And, if we have taken our lessons right, ‘caution’ and ‘diligence’ would be the keywords for the industry in the medium term.

On one hand, the stakeholders can’t afford to sway on the riding waves of healthy demand, and lose the ground advantage that they have so painfully regained by adapting to the rapidly changing business environment. And on the other, the emerging opportunities should be targeted with an unmatched fervor of potential and pragmatism.

The year 2011 would usher a new decade of opportunities for Indian real estate, which will be a test of sorts for its stakeholders between these two fringes of the fulcrum. And the winners would be the ones who balance caution with diligence evaluating all the potential opportunities with pragmatism.

Outlook: Commercial Real Estate

◦Office rents to start appreciating after mid-2011
◦More outright purchases by occupiers as well as private equity players
◦IT/ITES and BFSI would continue to account for 60-70% of office demand
Outlook: Residential Real Estate

◦Launch of premium products to continue, albeit at a slower pace
◦Launch of Ultra Low Cost (ULC) Housing by private developers – ‘Housing for all’
◦Large number of launches would continue to be in the range of INR 2,000-3,000 per sq ft at the leapfrogged suburban locations
◦Impact on affordability will influence the price and absorption dynamics
◦Sustainability to gain focus as the industry looks forward towards IGBC Green Homes standards
Outlook: Retail Real Estate

◦More collaborative models such as revenue sharing to emerge in the sector
◦Rents to remain stable except select prime locations
◦Large number of malls slated to become operational
◦Retailers would continue to expand beyond Tier I into Tier II and III cities
◦More international retailers to venture into India.

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Jaipur Property Club – Grow with us

Jaipurpropertyclub.com is a very quickly growing real estate & property firm and portal. Its first ever property portal of Jaipur city and now we are representing all over Rajasthan. Jaipurpropertyclub is No.1 seated property portel of Rajasthan. We deal in all kind of Builder’s projects and properties.

At here you will find all projects of builders working in Jaipur and Rajasthan, all kind of properties, residential and commercial property, house, flat, multistory apartments, builders floor apartments, plots, lands, agricultural lands, commercial shop, showroom, office, commercial land, industrial land, industrial plot, industrial shed, factory, hotel, hostel, paying guest etc.

Also some more features like – Home Loan, Home Insurance, Moduler kitchen, Furniture, Modern Furniture, Vastu, Feng Shui, Architect, Interior Designing, Marble & Tiles, Marble & Granite etc.

So come and grow with use.

For more details :-

Contact at : contact@jaipurpropertyclub.com
Call Us : 0141-4014411, +91 – 9829012409, 9001096161

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Marble & Granite – Natural Decorators

Marble tiles are becoming popular because they are the cost effective alternative to marble flooring. They are capable of giving a sophisticated look to many residential as well as commercial places and hence are widely used flooring materials for the purpose of decorating. Marble tiles are made up of calcium carbonate and is a natural stone. They are durable as well as fairly prone to scratches. They are available in different marble floor designs, sizes, style, color as well as finish. Marble and Granite are amongst the most prominent natural stones, they enhance the beauty of your home, office, gardens and the other architectural work. Marble and granite floor tiles are relatively easier to maintain. No need to waste your time and money using abrasive cleaning materials, you can easily clean them up with the mild detergent, soap or a soft cloth. Both of these natural stones are easy to maintain but extra care must be taken to handle them in order to avoid breakage of the tiles. To prevent the flooring from scratches you must avoid applying friction while moving furniture and of your home. The use of granite and marble is not limited to flooring; you can even have marble and granite counter tops for giving an elegant look to your kitchens, food preparation areas, bathrooms, lavatories as well as workrooms. Marble tiles are worth opting for because of many added advantages that help in achieving the most desired ambiance and exudes elegance as well as glamour that can never be achieved by any other material. It is highly recommended to take expert opinion for flooring patterns you must ensure to choose the best natural stone supplier. You can get list of the reputed natural stone suppliers easily by surfing on the internet and get quality granite floor tiles as well as marble floor designs. Granite tile flooring is best for you if style durability and quality are the basic components of your choice. Granite floor tiles and the marble flooring are worth for investment as they are durable as well as beautiful. There are many marble floor designs available for your kitchen, gardens, as well as patio. There is a particular flooring pattern available for every chore of your home. Marble and Granite Tiles are the most cost effective option of giving an elegant look to your home and offices, if handled with care they prove to be an asset that last long.

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Living Room – Make it alive

Modern sofas, modern sectional sofas, dinette area tables – all of these units you see in stores usually look somewhat alike to what your neighbors have. But modern wall unit gives you an opportunity to create something really eye catching, nice, unique and futuristic piece of modern furniture.

These days, plenty of colors and finishes are used for modern wall units . Lacquer, wood veneer…. I especially like black / white, black / red lacquered color combinations; however, even though white color looks nice, be very careful with it. The color of your wall might spoil the effect (means if your wall is painted in white, beige or of white then white wall unit will blend in and you won’t have that contrast effect you’ve been looking for).Please…. Do not try to make your modern wall unit spacey and useful at the same time…. It won’t work… there are lots of closets in your house so do not kill the look, make it simple, low to the ground, open and airy.

Modern Dining or Dinette area… Wrong choice here could kill your entire job of creating your modern living room. Dinette table and chairs, even if you choose a modern ones, still looks heavy and attracts too much attention to itself, taking it all away from the rest of your beautifully created ensemble. To solve this problem and not to kill all previously done work, I would recommend selecting a console table, either in wenge finish or glass. One side of it usually gets permanently attached to the wall. The other side has nice modern chrome legs. These consoles are usually hard to find but they can be custom made easily (and mostly not expensive).

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