Ease in real estate norms for NRIs

Due to the periodical returns on the investment and rate of appreciation real estate is playing an important and dominant role among the various options of investment that are available for Non -resident Indians (NRIs). NRIs are eligible to invest in commercial and residential property in India through their representatives who can act on behalf on them by giving power of attorney to them. It is required that copy of the power of attorney must be legally certified with the Indian embassy in respective nation. It provides for authenticity on their behalf for investing in India in property. 

The registration of the property should be in the name of Non-resident Indian and by producing a copy of power of attorney to authority, the holder of power of attorney can sign on NRIs behalf. While residing in abroad, a NRI through power of attorney can acquire a house. Through the agreement to sell the actual possessor of the property accompanied by the holder of power of attorney for the purpose of section 27 of income tax act is deemed to be the owner of the property. It contains purposes of income tax and wealth tax. The relatives of the NRI through the power of attorney in their favour are eligible to sell the property. They can also rent out the property.

Real estate rising in Southern India

Cities like Bangalore, Hyderabad and Chennai together they account for about 45 per cent of office stock of our country. Nearly 56 per cent of mall supply of the country is represented by southern cities between year 2012 and 2016. In the area of residential estate nearly one third of the country’s new launches are been recorded by these cities on an average in the past 5 quarters. In estate south 2012, report by the Jones Lang LaSalle, it emphasised on the real estate analyses of South India. 

It was observed that southern India has been a silent campaigner of strengthening and building real estate development in south India as most sought destination. The report also cites Bangalore’s commercial advantage, residential and industrial highlights of Chennai and infrastructural development in Hyderabad. It also puts light on the potential of upcoming cities in Mysore, Kochi and Coimbatore. Last year across 20 major cities, Tamil Nadu, Andhra Pradesh and Karnataka featured in top ten rankers in terms of transparency. The parameters of research included reforms in urban bodies, market information, protection of property rights and sustainable development. The major cities here have total stock of 140 million square feet. It was expected that by end of 2016 the vacancy rate will be 16 per cent lower than pan-India vacancy rate.

Real estate developers betting on Shopping malls

An ambitious pipeline of high end shopping malls are being built by the top notch real estate developers as they believe that it will cater to the buyers and retailers of luxury brands. The country’s largest real estate developer by market value, DLF ltd is already running the luxurious DLF Emporio Mall in New Delhi and it is all set to build two more projects in the National capital region. 

These two Malls are likely to be operational by the year 2013-2014, one in the outskirts of Gurgaon and second one in Chanakyapuri. Dina Madhurkar, vice president of DLF Emporio said in an interview that demand and interest in Indian luxury market which is coming from countries like France, Singapore, Italy and United States is increasing and they are unable to accommodate such brand in DLF emporio as it is fully occupied. The two malls which DLF ltd is shortly going open will enable the buyers and retailers of international brand to shop for international brand. It is expected that the new mall in Gurgaon will be 20 to 30 times larger than DLF Emporio. It is 300,000 square feet in size. The property in Chankyapuri will be a small luxury retail space which is about 60 per cent size of Emporio. It will comprise new brands planning to enter into India and already existing in India.

Realty sector in West Bengal on growth phase

In West Bengal’s gloomy economy, the realty sector is one of the fastest growing sectors according to the experts of the real estate sector. The Best Western, world’s largest hotel chain is positive and buoyant about the state’s real estate outlook. In the era when the industrialist are worried about the slow pace of reforms which is hitting the industrial renaissance in Bengal, the business of real estate is growing by leaps and bound. India president and chief operating officer of Best Western said that hotel business is expected to grow by 10-15 per cent pan India and a faster growth rate is expected from eastern India. 

He also said that earlier in eastern India there was gap in demand-supply in the hotel business but it is expected that it will enjoy a good rate of growth in coming five years. In 2012, the west Bengal real estate is likely to grow at a rate of 15 to 20 per cent. By the end of March next year Best Western is planning to open a hotel of 150 rooms near Airport. They are also looking for properties in smaller cities of Bengal. The real estate sector of Bengal is definitely contributing to Bengal’s economy.

A discount of 20 per cent offered by builders of Budget Homes

The demand for affordable housing has not been affected by the impact of global slump which the realty sector has been facing since a long time. There is a high demand for 1,2,3- BHK apartments whose price range is of approximately 35 lakh rupees and they fall under the affordable home segment. The builder are in a bid to make the most of this opportunity and hence they are offering discounts up to 20 per cent and they have also increased the commission of brokers for obtaining bulk bookings. City like Ahmedabad has now become a buyer’s market from seller’s market due to the global slump.

 There is a huge demand of 1, 2, 3 BHK flats measuring from 1000 square feet to 200 square feet. The people who want to upgrade or who are interested in purchasing apartments for the purpose of investment are the main buyers of bigger apartments and on the other hand the buyers of smaller flats are genuine buyers who actually live in the purchased property, said the former President of Gujarat Institute of housing and estate developers. This shows the impact of slowdown is negligible on affordable housing segment. The demand of quality products priced reasonable will always be higher.

Real estate trying to recover from downfall

Real estate sector in India seems to have recovering from the downfall over the last few years from the huge pile up in debts arising from Property Companies and slow sales rate that have been continuing from a long time, according to a new report. Banking sectors providing sharp reduction in retail home loans, healthy demand across the micro markets and realty companies stabilising debts have undoubtedly worked well in the favour of realty sector. According to a realty expert the sales have been robust except in Hyderabad. 

Mumbai remained sluggish while Pune on the other hand saw an increase in volumes. Among the major cities, Chennai and The National Capital Region (NCR) led the pack. A jump of 14.8 per cent in volumes was observed in NCR in March quarter. Pune saw jump of 34.1 per cent increase in volume and a jump of 29 per cent was seen in Chennai. Real estate developer, DLF reported that sales volume of 11 major cities have increased by 28 per cent in the end of the march which was led by strong revival in sales. 42 per cent of sector volumes were reported by DLF. The net debt aggregate of 11 companies had declined due to increase in volume of sales.

Current Real Estate Market Scenario—Property Brokers and Agents

Real estate agents do not share information on the listing they hold with other agents. This means a seller has fewer chances of meeting the right buyer and buyers looking for the right property find the going tough. The agent’s priority is to not be cut out of the deal. Real estate agents follow their own methods and practices and cannot generate leads on a regular basis. As a result property brokers do not have enough listings to serve buyers nor do they have genuine buyers to match properties they offer. Brokers do not share inventory information and lose out on good deals. The buyer and sellers are also affected. Compounding the issue is the fact that real estate brokers spend less on advertising and rely on word of mouth or direct deals to close a sale. They are unwilling to spend on ads as there is no assurance of income. Another issue that affects property deals through brokers is that most of the brokers do not have any formal background or training in real estate broking. Most of them operate with a mobile phone and a small office with a small back up support staff. There are no licensing rules and the brokerage practice is not subject to formal rules. Real estate brokers see a high turnover in staff since they pay less and once an employee learns the ropes he starts his own business and becomes a competitor. Real estate brokers do not have a system of incentives for staff or adequate motivation that would result in better productivity. The net result is that buyers and sellers find it difficult to zero in on the property of their choice.

Real Estate Market Outlook

The year 2011 was a turbulent period for real estate. Property prices rose, interest prices rose and there were controversies. Global economic conditions affected Indian real estate markets and the declining value of the rupee is certainly not an encouraging factor. There is an overall decline in sales of residential properties. Flow of funds has decreased to a trickle and even FDI has slowed down. The bubble has deflated and indicators are that the residential real estate market is set for a correction in this year. Sales will level off and prices will rationalize according to pundits. Analysts watching the situation are of the opinion that a recovery in the US may lead to a lowering of interest rates. Most builders are saddled with huge debts and unsold inventory. If they do resort to selling at lowered prices, it will be a windfall for buyers. Contrary to indications, property prices have gone up by 20% though volumes have declined to 70%. In commercial spaces there is lot of availability but demand has slowed down. Companies will try to reduce costs and may relocate to special economic zones. Slow sales and a glut could lead to a decline in prices by about 30% according to industry analysts. Developers who were adamant about reducing prices are reconsidering their decision and may reduce prices. Those who had switched from commercial spaces to residential find that this area too is witnessing a slump. The trend may continue for the early part of 2013. Rating agency Fitch gives an overall negative outlook for the real estate sector due to weak demands and increased cost of production.

Availing Home loans in India

Buying a house is dream for every person but most of us are not able to accomplish the dream due to many reasons. The increasing real estate prices have made buying a property a dream for most of the corporate professionals. For some, even if they are planning to buy a property but doe to insufficient bank balance the dream could not be fulfilled. If that is the case, you can go apply for a home loan which you can repay within a period of time you can easily own your dream home. All you must do is check the loan eligibility criterions in several banks, find out about the fixed or floating interest rate, and understand the processing fees charged by the bank properly, prepayment fees if any. Before finalizing on the loan part do make a comparison study on the various data you collected from banks. Once you are satisfied, with the rate of interest part clearly, and then go for the final selection of the bank. Do remember, never hunt for home loans before selecting your property. First, you must select your house and then go on hunting for loans. In this way you will get better schemes and deals in home loans. Also visit some financial advisors offices and learn as much as you can from the advisors. Finally compare the pros and cons of taking the loan with one company to the other and select the one which confirms maximum assistance at a comfortable rate.

A new trend in hotels and resorts

Cities like, Delhi, Calcutta, Vizag, North East, Bengaluru, Goa, Kerala are highly preferred by the tourist in India. The continuous growth of such tourism industry, have developed a demand of hotels, resorts and etc. Tourists go to places to visit spots and relax at the same time. They want hotels and spas to unwind their body, mind and soul. In order to fulfill such dreams the real estate investors in India are now moving into the this sector of development. Today the developers are investing in erecting beautiful hotels and resorts in these areas. Spa resorts are the most attractive destinations, for both newly married and for those who lead a hectic life. Good food, party, music and relaxing spa is just perfect for any holiday. Thus to encourage such practice, special therapies are been introduced and many new resorts are opening up. The best part in some resort is that, they even offer a home renting scheme. Here you may invest and avail a small dwelling place where you can go and spend time any time of the year. This would be your “home away from home”. Real estate does not only remind us of beautiful homes and duplexes, but also harps on hotels, resorts and spa. Many developers prefer making such commercial buildings, like Hotels, offices and spa resorts. People visit such places from far and wide. Internationally Malaysia and Thailand are known to have best Spa resort in Asia. Similarly in India also real estate developers have begun constructing beautiful projects where people can throng to get relax and enjoy the vacation.

5. How to sell a house and earn money?

To sell your property or land and earn quick money is what everyone dreams off. Many people believe in investing in land and property rather than investing in other securities. Securities often fail to live up our expectation. They are subject to market risks and often fail to offer what promised in the beginning. But this is not the case with the real estate investment. Once you have invested in a property, you must learn the right process of making money. But to make money from the investment an individual must know the exact process of selling the property. • Inspect the condition of the house and the fix a price. • Check all property papers are in line and there is no dispute in this regard • Talk to friends and find out if any one is interested. • Advertise in the local paper and also in the website. • Develop your communication and motivation skill so that it becomes easy for you to convince the clients. • Hire professional sells people if needed. • If you have huge properties then start selling in parts. For. e.g. sell the shop areas first then may be flats or duplex. • Check with banks and collect information about second hand house loans. • Create the hype and inform anyone and everyone about the availability of the house • Renovate the interior if needed. • If you have used the flat, do check that all connections and bills are cleared till the last month.

How to become a real estate marketing specialist.

Due to such growth in the real estate sector, many fresh graduates are studying MBA and are specializing in the real estate sector. The sector has rightly grown up as an appropriate field for employment. Young graduates and marketing students are joining this real estate field. Property selling and busing or investing is no more an easy task. You need professional property guidance to avoid facing problems in future. To avoid such a situation you contact such real estate specialist you will get proper guidance to grow and make quick money from the investment. Therefore follow the below mentioned tips if you wish to plan a future in property selling. • You must have passion for your work. • A professional degree in sales and marketing will give you an edge in the competitive market and you will grow fat. • Identify your clients and develop your communication skill. Approach wisely and get your property sold. • As a real estate professional, do not remain within flat and houses selling. Instead try and work as a fresher in big projects and learn about space selling, like, office space, shop or other properties. • Understand the demand of your client, know their budget and then help them with their hunt. • Learn briefly about law and order and other government laid rules about property owning in that city or town. • Also find out about home loans. Try and help your client as much as you can. In this way you will be able to win their trust.