Slowdown in Real Estate India

There has been an overall slowdown in real estate industry and various industry players have been affected. Some factors responsible for this slowdown can be increase in interest rates, slowdown in IT industry, increase in property prices, and increase in interest rates loan rates because of which many property buyers have stepped out of market. But somehow this slowdown can bring happiness to those middle class buyers who have been eagerly waiting for the property prices to come down. In major cities such as Delhi, Mumbai, Bangalore, Chennai and Hyderabad real estate market has come down. Also because of increase in cost of raw materials like steel, iron and building material builders are facing difficulty of constructing property at agreed prices.

As realty business in Bangalore has been hit by global financial crisis because of this uncertain condition in Indian equity market and property prices builders have come in formidable situation. The condition is that approximately 400 flats or more are still vacant despite of advertisements. And the situation is same with many top builders of country. Many builders’ developers said they have faced a drop in new projects as compared to last year because of which condition has become worse in the market. 

Real Estate Investments in India

As per the investment and real estate experts there is a boom expected in the real estate market in India and this is the reason why people are looking for investments in Indian real estate. Now with the Indian Government itself trying to make the real estate market a favourite place for the investors there is a good amount of potential interest seen by the investors. Also the investments in real estate are now considered to be safe. This is also supported by the fact that there is a liberalization noticed in the foreign direct policy to attract foreign investors.

As per the industry experts, the real estate market is considered as a driving factor of Indian economy. As per the facts, foreign direct investment is expected to increase to US$25 billion in the next 10 years. FDI inflows in real estate in 2011-12 were Rs.2750 crore (USS 493.80 million). In May 2012, FDI inflows in real estate were Rs.419.87 crore as compared to Rs.321.35 crore.

Indian real estate became as popular sector for private equity funds. There was an investment noticed of around US$1,700 million in this sector during 2011. Private Equity in real estate projects will fetch considerable returns by next year-end or early 2013, according to Vikram Hosangady, Partner, KPMG.

In order to modernise the infrastructure, there is a need to invest US$ 1.2 trillion over next 20 years as per the report released by McKinsey Global Institute (MGI)-India’s urban awakening. 

Real Estate Future in India

Indian real estate market is expecting a big hike in the upcoming years and is expected to be of US$180 billion by 2020. With the increase in economy, there is a demand for residential, commercial and retail real estate throughout India. Also there is a steep growth in demand for hotels, malls, hospitals etc. There is also a need to improve the existing infrastructure in order to meet the demands of technology. Demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014. Also it has been noticed that Tier 1 metropolitan cities are expected to account for about 40 per cent of this.

Smaller cities are also attracting the big real estate investors. The reason for this is growth prospects and price stability. Also residential apartments are also required in smaller cities. As per the report the sale of new residential apartments in 10  smaller cities are at around US$ 4 billion in 2012. With this it is expected that almost 2 million new graduates will join the workforce, hence in order to accommodate them, there is a creating demand for 100 million square feet of office and industrial space.

With the presence of large number of Fortune 500 companies in sectors such as chemicals, apparels, pharmaceuticals and jewellery in India, there is an opportunity to attract foreign investors in India. This will again boost the real estate sector of India. 

Effect of Real Estate in development of India

Indian economy is experiencing robust growth since last few years and it is expected to touch new heights in the upcoming years. With the growth in the economy the same growth is expected in real estate industry as well. In India with the liberalisation of the economy, the real estate sector became prominent. There was an increase noticed in business opportunities, labour migration and consumer need; hence there is a growth observed in commercial and housing space. That is why there is growth observed in real estate industry.

Currently, the real estate and construction sector is playing a major role in India’s core infrastructure development. It is providing employment to many people. Everyday there are new units coming in and thus many people are getting employed day by day. After agriculture, real estate industry is turning out to be second largest employer. With all these factors in consideration, the real estate sector is expecting a growth of 30 per cent.

According to a study done by ICRA, the construction industry hold third position amongst the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. With the growth in retail industry, there are several other sectors as well which are expecting the similar effect like hospitality (hotels, resorts, cinema, and theatres) sector, schools and information technology, etc and IT enabled services.

The real estate sector is majorly divided into four sub-sectors:

-       Housing

-       Retail

-       Hospitality

-       Commercial

In the entire housing sector contributes five-six per cent to the country’s gross domestic product. 

Is investment in Mumbai's real estate lucrative?

Mumbai is financial capital of India. It is also the richest city in west and central Asia. The very status of the city attracted various real estate investors over the years. Majority of the investment is made in small real estate projects with aim to capitalize on them in future.

The real estate sector in Mumbai witnessed a major boom with the rise of IT industry with several multinational companies coming to the city attracting lakhs of IT professionals from across the country. This created a considerable size of customers for real estate in Mumbai as the neo rich people went on rampage to invest in real estate which was mainly demand driven. With the boom in early 2000, real estate companies launched major projects since it was highly lucrative. The real estate rates in Mumbai went shooting through sky from 2000 to 2006 taking it out of reach of the common man. However, the real estate prices in Mumbai came down crashing by half in 2008 due to global melt down.

The year 2009 saw an all time low investments in real estate in Mumbai; still the decrease was not as low as compared to other cities in the world. There was gradual but steady increase in real estate prices in Mumbai post 2010.

Benefits of buying a property near the lakes

If you like to live in a home in the calm and private environment, property near the lake is for you.  Living in a home near the lake can be a perfect destination for vacation to enjoy with your dear ones. 

If you want to purchase a home as the second option and use it rarely then home near the lake will entice you a lot. In this article we will discuss various benefits of buying a home near the lake.

1. Soon people will hate to live in urban cities. As the pollution, noise and traffic are the hatred factors also have adverse effects on the human bodies. They will look for the peaceful place far from the crowd in the clean and pure environment. The home near the lake will be their destination.
2. The city disturbances do reduce our efficiency so we look for the place where we can spend cheerful time with our family. Enjoying the picnic
3. Enjoying the picnic in the serene locations in your property, enjoying the leisure time in swimming, riding and fishery provide you wonderful time in life. So you get more time to live with your family.
4. Isolation: If you like to live in isolation then home near the lake provides you appropriate privacy you are looking for. comfortable Home offers you huge recreation and for the corporate people this home is the best place to conduct meetings with clients.

Overview of the Real Estate Industry in India

In India, Real Estate Industry has experienced robust growth and is expected to be one of the fastest growing economies. Thanks to the advantage India; growing demand, attractive opportunities, and the policy support. The demand for residential property has gone up due to increased urbanization. As the economy is nurturing, the demand for corporate, residential, academics, diversion (hotels, restaurants, theaters, malls, etc.), retail space and it offers services like BPO properties is also increasing. As FDI in retail has been allowed subject to certain conditions, the demand for retail space has grown up to a greater extent.

Subsequently, other sectors especially, education and healthcare requires space to work and that’s why real estate is growing rapidly. The real estate sector in India assumed greater importance with the liberalization of the economy, as the consequent increase in business opportunities and labor migration led to rising demand for commercial and housing space. These days, the real estate and construction sectors are playing a crucial role in the overall development of India’s core infrastructure. It is the second largest employer after agriculture.

On Government policies, it is really helping the real estate sector to prosper. Like, government has raised housing loan limits which in turn help the getting housing finances easier. Also, FDI is upto100 percent allowed for developing townships and settlements. Since, townships are the trend in the real estate market; foreign players are thereby investing in real estate industry in India. DLF and Godrej are the important players in the Real Estate Industry.

International Home Design Tips

The usual route to acquiring houses is to buy one in a scheme announced by a builder or buy an old house and renovate it. Only a few can afford to design and build homes from ground up. If you happen to be one of the fortunate few, you are likely to consider international contemporary home design over Indian style architecture. Consider these aspects:

• Single storey or double storeyed? Having two floors in a house is advantageous and practical. In India it is usually very hot and by having a floor above, the ground floor can remain cool.
• Large windows and doors or small ones? Large windows and doors can let in a lot of fresh air. Conversely, during summer, they also let in a lot of heat and dust. It depends on whether you want your home to reflect a roomy spacious, well lighted ambience or to have a cozy and warm feel. How you will decorate the interior and place furniture may also influence your choice.
• Leave a large area for a landscaped garden or use the maximum permissible area for construction? A smaller house with two floors and a large surrounding landscaped area with a small water body and fountain takes on a charming air and also gives you plenty of greenery as well as privacy.
• Green buildings, energy conservation: The buzz words these days, it does help to have energy efficient buildings that stay cool in summer and are naturaly warmed during winter.
• Material of construction: Indian construction involves masonry and RCC. You could mix it with timber (for flooring or roofing), fiberglass or laminated insulated aluminum/metal corrugated sheets for a different look. While at it, you can even consider prefab housing that can be put up within a week, complete with wiring, water supply and drainage.
• Furniture, furnishings, kitchen, etc:  there is no end to creative use of colors in interiors to convey different moods. You can have a uniform smooth colored walls or textured walls or highlight an alcove or ceiling with a dark rich shade. However, it does look if furnishings, furniture and fittings, including electricals are harmonised to fit the style: modern, traditional or others.

Do you want your home to be a showpiece and the centre of activities or a cozy retreat for your family? Ask yourself these and other questions when you sit down to visualize your home. You can find some useful ideas on property sites India based.

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Locate the Cheapest Home Loans

When you set out to buy properties, you will need a home loan. You can approach independent financial institutions, private sector banks or public sector banks. Lenders like Bajaj Finserve and others may have higher processing fees, documentation charges and rate of interest. If you go for private sector banks like ICICI and HDFC, you are assured of perfect services and timely disbursal of loans but you have to pay a higher amount towards processing fees and other charges. The cheapest home loans are available from public sector banks. State Bank of India is the leading bank but there is a feeling that only high value loans receive preferential treatment whereas if you were to approach them for amounts less than Rs. 20 lakhs, you may come across a wall.

The other banks like Bank of India are more friendly and customer friendly in this regard with easier and quicker processing and no discrimination even if loan amount is low. As regards processing fees, a survey showed that Bank of Baroda and Canara Bank charged 10.5% effective rate of interest but the former levied 0% processing fees. Punjab National Bank charged 10.75% as did HDFC home loan with a uniform 0.5% processing fees. OBC is the lowest at 10.4% and processing fee of 0.5%.

The term cheapest is relative. If you choose floating interest and rates dip in future, you benefit or lose if it is otherwise. Then again you have to consider how the banks adjust the floating rate against their internal rate. Public sector banks loans are on a reducing basis whereas some lenders have a fixed rate on the entire loan amount throughout the tenure of repayment. It is not just the initial offering you have to consider but also the final amount you will end up paying.

A good idea to get comparative statements of home loans from various lenders is to visit property sites India focused and you will come across useful information about loans and properties for sale.

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Selling Your House Already Under Lien to a Bank

You may have purchased a house through a bank loan and then, after a couple of years, you wish to move to a larger house or to another city. If you wish to sell your house that is already mortgaged to a bank the outstanding amount of loan will have to be settled before the bank releases original property documents.

If you find a buyer who is ready to make a lumpsum payment, the process is easy and that down payment can be mentioned in the agreement to purchase, adjustable against the final value of the property. Once the property documents are released by making full repayment, you can enter into a final agreement and execute the sale deed. If you make a profit, it is considered as capital gains and if you have sold the property within three years of purchase, you would become liable to short term capital gains tax even if you reinvest in property. Both of you would need to agree on payment of registration and stamp duties involved in the property transfer process.

If the buyer intends to apply for a loan to the same bank as yours or to another bank, you will need to provide him a copy of the set of documents. The buyer should also be aware that his loan will not be considered until you have cleared the existing loan. You could execute an agreement to purchase and have the buyer advance the amount to repay the existing loan. If he is not prepared to do this, you will need to make arrangements to repay the loan and obtain the No Dues Certificate and the original set of property documents from your bank. 

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Why You Must Buy a House, Even if it Means Taking a Home Loan

A bank loan may be the only way you will ever be able to acquire a house, given the current high prices. You may feel set against loans since the interest amount can be quite high, especially if the loan is spread over a longer tenure. You may not want the stress of EMI repayments hanging over your head each month for the next ten to 15 years. All said and done, it is still worth the effort.

The current inflation rate is 7 to 8%. If you put your money in a savings account, you earn less and actually your money’s future value depreciates. Assuming you save the same amount as you would pay for the EMI, your future value will get you less. Property prices always appreciate, significantly beyond the inflation rate, and yield higher returns if you sell at the right time. Properties can also prove to be assets against which you can secure loans. The interest on home loans in India is 11%. The instalment and interest you pay are eligible for tax benefits and you can use online  tax saving tool for easy calculations. If you apply in joint names, both owners are eligible to claim deductions.  You calculate tax savings and the future projected value of your property and will find that it is one of the best ways to build appreciating assets.

You can rent out the property and earn almost 

Guarantor’s Liabilities in Case of Home Loans in India

Institutions disbursing loans in India usually ask for a guarantor. It is no different in the case of home loans in India. The borrower must furnish a guarantor. If you are asked to become a guarantor, understand the liabilities before you sign.

According to law if the borrower does not repay the loan or dies, and if his heirs refuse to repay, the lender will exercise his right to claim the oustanding from the guarantor.  If the borrower defaults four consecutive EMIs the bank sends a notice to the guarantor. Before coming to this stage the bank will usually request the guarantor to follow up with the borrower, if he is alive, and get him to pay up. If he is deceased the guarantor may be asked to persuade the heirs to pay. If default continues the bank may institute legal proceedings for recovery against borrower and guarantor. If the borrower or his heirs default, invariably the guarantor has to pay. The financial burden, especially in case of home loans, can be huge and what is worse, the guarantor gains nothing in the process, not even right to the property.

Before becoming a guarantor you should make sure the borrower has the capacity to repay and that his heirs can be trusted to take up the loan EMI repayment on his death.

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Top level mistakes that novice real estate agents make

With the boom in the real estate business, many people have turned to taking up real estate as business. But most of them fail to reach the level and as a result very few good realtors are nowadays available. There are many people of various talents and abilities, but they also make some common mistakes.

Becoming a Realtor surely does cost a little of your fortune. Getting the MLS is the most important thing. The MLS differentiates us from the other salesman as we present homes that are already set to be sold.

Many of the new agents when enter the business feel that they are taking up new job. They fail to realize that it is the whole new business that they will be doing. They look up themselves just as employees. They fail to bring a business plan, without which any business stands incomplete. The main focus of a business plan is to help us understand where we are going and how the next level has to be reached. It always keeps constrains on our goals.

The real estate agent also has to understand that a whole new process goes into while dealing with the client. Be computer savvy. Use emails. When the agent is dealing with a client, he/she should remember that the client is the next marketing tool and the client has to be dealt with in such a manner that they should refer to somebody else in the future.

Residential properties in Gurgaon-the large attraction among the new comers

When you move in Gurgaon, the very first question you may ask is whether the rental homes are available here? This is the general question that can be asked by any common man coming Gurgaon for job or business or for permanent stay.

Due to increase in the demand of properties in Gurgaon, it has become the city in demand in the NCR region. Due to its increased corporate importance, many corporate properties have been established here including regional, countryside and international.

Restaurants and plazas are another ongoing constructions added to the enhancement of the city. Due to increased population, Gurgaon is facing serious residential troubles. Considering this every new comer of Gurgaon asks for the vacant residential space.

However it doesn’t mean that Gurgaon is facing the scarcity of residential space. Gurgaon is accomplished with several residential properties in various dimensions and sizes including deluxe flats, villas, banquets, luxury cottages and penthouses which are in high demand. These accommodations are capable enough to attract the rich and high status people in Gurgaon.

The rental prices in this city are quite larger rather than the nearby locations. For an instance 4 BHK home in the nice area can be obtained in 20,000 rupees to 40,000 rupees.  However the same properties can b owned in comparable fewer charges in the near regions of Delhi. However as there are more new projects are under construction in Gurgaon so we can expect less rental prices once these projects will be ready for accommodation.

Real Estate properties- the worth business future in Gurgaon

In the real estate asset of India Gurgaon has a prospective place and is the wide center of attraction among the investors. Gurgaon real estate is an active market for the chief players of this sector. As Gurgaon is the leading corporate hub in the India, large multinational companies across the nation are choosing this city for their functional enhancement.

 Since Gurgaon is the chief center of consideration among various multinational companies and leading groups, the real estate prices are appreciably higher in the recent years. So the real estate businessmen have found this city as the bright option of investment. With the enhancement in the corporation industry the city’s inhabitant has been quite increased.

 Due to which schools, hotels, hospitals and technical institutions has been developed in large count in this region. The population rate has also added the worth in the commercial properties of this city. The development of city in this measure has also increased the scope of real estate asset in this town.

Gurgaon is the famous real estate location with the presence of lucrative buildings for example Unitech, Parsynth and DLF, remark of liberty of Gurgaon in the corporate world. The real estate astrologers are also considering this city for the latest projects which have provided Gurgaon more refrained look. In the construction of latest real projects the companies are using advanced technologies and that has improved the value of properties and apartments. The real estate projects are increasing the business opportunities among the realtors and the future scope.

Refinancing- An easy house loaning method

Investing in real estate is one of the prime topics to concern in these days that are attracting the businessmen and new business biers a lot. In this article we will discuss the best reasons to choose the real estate investment as your business. If you want to sell your home, first you must first keep yourself and your house secure so that you can sell your home at the best industry price and those who purchase your home can get the best accommodation.

Real estate investment is also a better business plan for retired and old aged people since in this business all you have to invest the money and hire intelligent agents, rest is done by them. 

As the present economical market is down that has closed various earning doors due to which we are compelled to cut off our various expenditures like cut off in visiting the hotels and enjoying the vacations and spending the cheerful time outside with family and enjoying the meals? Each of us is seeking to reduce the cost of expenditures. In the tensions of saving money we generally discourage various common methods that can help us in saving- one of the common methods is refinancing.

Refinancing is the term denotes the replacement of your present housing loan with other loan at less interest so more saving. In refinancing we take another loan from the bank, it is recommended to take second loan from the same and verify the interest details. If you choose another bank you may have to suffer additional charges.