Commercial Realty Development In Bangalore

Bangalore’s real estate market’s dynamics has been revolutionized by the IT sector which mushroomed across the length and breadth of the city. Considered to be the IT capital of the country, Bangalore soon became a booming hub of employment opportunities and professional education. Its real estate market followed this boom without any lag.

For catering to the requirements of the massive IT sector, SEZ or Special Economic Zones had been marked in and around Bangalore for the making of large IT parks. The zones have come become defining landmarks of Bangalore of its realty sector’s growth in the coming years.

Through the years, activities in commerce have shifted from the CBD or Central Business District to peripheral and suburban areas. Micro markets in the suburbs like Kormangala, CV Raman Nagar and Bannerghatta Road right now have 27.70 million square feet of land for commercial and residential purposes. An addition of 2.70 million square feet in the coming years will definitely set a record for these areas.

Expanding space needs for the booming IT industry, inexpensive rentals for spaces of improved quality and access to pool of talent residing in the residential hubs in the suburbs have propelled large companies to relocate and consolidate their offices to micro markets along the periphery such as ORR or Outer Ring Road that has a land stock of 28.8 million square feet along with a supply that is under construction, amounting to almost 10.10 million square feet.
When considering the current, real estate market for commercial property in Bangalore, it is a booming scenario as companies are expanding and outsourcing a lot of their jobs. Commercial leasing mechanism in Bangalore has seen good activities of transaction in the first half of 2014. Growth prospects are highest in areas along the ORR or Outer Ring Road as they offer an opportunity for expansion of the commercial real estate market. For example, Whitefield is considered to be a good micro market as it shall have a 2.50 million square feet added to the existing 27 million square feet stock. Moreover, with the airport being relocated to the northern side of Bangalore, areas located in this particular sub market have shown prominent realty activity.

The upcoming hub of commerce is probably going to be North Bangalore as it has initiatives in infrastructure like the Hebbal airport expressway, ORR and widening of Bellary Road which improves the connectivity to this micro market.

There are almost 10 million square feet of office space available in the northern pocket of the city while 3 million square feet is under construction presently. Areas with upcoming and current commercial developments in the northern fringes include Thanisandra Road, Bellary Road, Tumkur Road and the north half of the ORR.

The Outer Ring Road has a character of supply being controlled which ensures low levels of vacancy and good absorption rate along with increase in rentals. The micro market shall continue to bring in new occupiers and entrants who are looking out for expansions. The ORR is a preferred destination for occupiers working in the corporate sector for its closeness to catchment segments for employees, improving infrastructure, connectivity and numerous SEZs and tech parks. Pre commitments and leasing are prevalent here because of the limited supply of ready to move in units.

Even though fresh supply in the commercial realty market has been frugal in the first quarter of 2014, supply is much in the pipeline and construction is robust. A large infusion of supply is being experienced in Bangalore. There is long run potential because of improving infrastructure and expanding residential market. The eye of commercial realty developers have been caught by Sarjapur Road as next destination because of the existing catchment for residences, improving social infrastructure and closeness to the Outer Ring Road. Land parcels are held by developers in this area and it shall see an infusion of supply for addressing spilled over demand from the Outer Ring Road.

The expansion of Bangalore outwards, locations along the periphery are seeing an increase in value houses. Costing less than Rs 30 lakhs, these houses are the best choice for employed professions who move to the city to become employed in the upcoming commercial hubs.

Yelahanka Doddaballapur Road and Devanahalli in north, Chandapura along Hosur Road towards the south is where plotted developments can be availed for roughly Rs 18 and 20 lakhs. Townhouses can be bought for Rs 30 lakhs roughtly. In the western side, affordable housing options are coming up near the NICE Road. As price of land is going up, they have an appreciation potential of almost 20 percent.

Studio apartments that are sizes between 400 and 750 square feet are available within Rs 30 lakhs. Such apartments can be bought along Magadi Road, Old Madras Road, Attibele etc. Doddaballapur Road and Old Madras Road offer 2BHK apartments with square feet area of 650 and 1075 square feet. 2BHK and 3BHK apartments can be bought in areas like Magadi Road, Anekal, Sarjapur Road which have a carpet area of 650 square feet and 1600 square foot.

In this segment, the total supply of projects is around 22 of which 22 percent of the total stock has not been sold, which roughly amounts to 36,000 units. Over the last year, the affordable apartment segment has seen the highest velocity of sales when compared to other segments. Most of the affordable units have been launched in the south east and then the north east.

The demand for property here is being driven via the development of commercial properties and the employment that will be created as a result. A large share of existing commercial property is located in south east while a new chunk is coming up in the north east. Another important thing to consider is availability of value land to build on.

Elevated expressways and flyovers, ring roads like the NICE Peripheral and the Outer Ring Road along with the Metro Project act as key factors that drive the sale of affordable housing. This section has fared very well as a large part of this market is at the end which offers high scope to grow. There has been a very high percentage rise in value stock as some projects have seen a rise in price to almost 100 percent between the pre- launch and handing over.

Luxury Projects In Bangalore

East and North Bangalore have been destinations for hot property in Bangalore for some years now. However, water is a point of concern in numerous localities in this area and it might affect the pricing of property here. The areas that are covered by the BDA or Bangalore Development Authority master plan shall receive municipal water right after the completion of the water project on the River Cauvery, according to the founder of the Adarsh Group, a popular property developer in Bangalore which has constructed roughly 5 million square feet of space in Bangalore.  

However, areas under the BIAPPA or Bangalore International Airport Planning Authority located in North Bangalore and BMRDA or Bangalore Metropolitan Region Development Authority in East Bangalore might not receive water from the Cauvery. In these areas with water scarcity, it would be best to develop residential villas which are low density with low requirement of water. Moreover, on adoption of the system of dual piping which uses recycled water, the impact of water from natural resources shall be less in these developments.

There are several reasons for the premium real estate market to boom in Bangalore. A number of HNIs or High Net Worth Individuals are here who purchase villas and luxury flats. A major section of these people are from the top ranking IT professionals group and other businesses. Moreover, NRIs who are returning are potential purchasers of luxury apartments and villas. This is causing a boom in the luxury housing segment.

The standard definition of premium and luxury property is much misused nowadays. A study of the real estate market shows the definition of ultra-luxury and luxury projects according to developers.
Luxury villas and apartments are often slotted in the high price category because of the inclusion of a few important features. For example, a line of newly developed plots do not make a villa. Therefore, interactions with clients reveal what a client perceives as luxury and hence the builders develop properties accordingly. By balancing these two importance factors, you can zero in on real estate investment especially for high end ones.

One of the foremost things suggested by consultants of real estate is to form a list of facilities and environment that a buyer sees as luxury. The type of surrounding, the estimated size of rooms and garden or perhaps the size of a private pool that should be in a villa that they are thinking of investing in should be included in the list. The Indian market is a price sensitive one. Therefore, notwithstanding the financial or social status of a person, buyers ask about the fuel efficiency of an Audi or BMW car prior to making a buy. Quite alike, when priced well, premium or luxury is sensible and not simply for paying extra money for a flat that may actually become a trap to block your corpus so much so that you struggle to find a tenant or buyer later on, according to the CEO of Residential Services in JLL India.

Some pointers that need to be checked out as per industry experts prior to investing in luxury and ultra-luxury projects in Bengaluru.

Track Record: A developer’s track record on the basis of execution of past projects and present status of the project in question. These need to be charted along with the location of the project, credential of the builder and project amenities and features.

Project Density: It refers to the number of apartments in total the project is providing, the number of flats on a floor and the kinds of upcoming building projects in the locality. A residential gated community comprising of villas beside a mall or line of mid-range projects affects the ability for value or rental growth, according to builders.

Not long term always: The belief that one can make more money through luxury properties only in the long run is completely baseless. In the past decade, mid segment properties have found more or similar growth when compared with the luxury section. Buyers have to determine whether the luxury segment is actually the correct choice for them.

Knowing your trade-offs- Buying luxury assets as a once in a lifetime purchase is easy. However, the cost of maintaining the property can be back breaking equally. When you consider the cost and stress that comes with it consequently, buying 2 upper middle section properties makes more sense than buying a single premium property.

For the past couple of years, East and North Bangalore were the destinations for hot properties. For the past few months, developers have turned their attention to South Bangalore which has seen more property launches happening in the area. Post development of the NICE Road, there is improved connectivity between the IT Hub of Electronic City and South Bangalore. Keeping this point in focus, the middle section market is doing quite well in South Bangalore. Larger land parcels are available in this region which is why more launches are being made.

If you want to own a second house or apartment in Bangalore, there are several segments in which you can invest in. However, in the long run, the best one will prove to be the price range between INR 1.25 crores and INR 2.0 crores. The best locations to own second house property in Bangalore are South Bangalore, North Bangalore and Bangalore East along the area of Outer Ring Road. There are several builders who are considering projects here. The cost of 2BHK and 3BHK apartments is between Rs 70 lakhs and Rs 1.50 crores. There are several affordable housing projects coming up here too, where 1BHK and 2BHK apartments under 700sq. ft. can be bought for Rs 30 lakhs and Rs 40 lakhs. Areas such as Yelahanka, Whitefield and Hebbal Road have seen good appreciation in property values per year. With proximity to the IT companies and improved connectivity, these areas are becoming hotspots for renters and buyers of affordable housing. As explained before, maintenance costs may take a toll on you hence it would be better to invest in an affordable housing or mid segment project.

How To Find Premium Real Estate In Kolkata?

Real estate can be one tricky market for sure, especially in metro cities like Kolkata. On one hand, price rises have impacted the entire market and supply chain, demand still remains steady at a very basic level. The latter occurrence is a natural cause though, because of the demand and supply gap in most urban areas. Developers often have no choice but to hike rates in order to offset their losses. Real estate is not a business that is considered too favorable any longer. This is mainly because of the losses plaguing the sector of late. Since the recession, real estate has taken a huge beating.

Demand has gone down in a jiffy and developers have been left with piled up inventory all throughout the year 2013. Budget housing projects have almost stopped and developers are trying to recover as much of their investment as possible by selling residential units at a competitive price. Alongside, much of this dilemma has arisen out of the rising prices in most areas. This has resulted in an overall slump in demand in most premium areas owing to the high prices of projects. The upper middle class and premium customers are turning their backs on multiple projects owing to the price factor.

Developers are now looking to clear unsold inventory through a plethora of innovative schemes like flexi pricing, flexi repayment, freebies and so on. Alongside, there are various contests and prizes attached with real estate projects these days to enable developers to clear inventory. Prices are not being corrected in most premium areas in metro cities though owing to the demand and supply imbalance talked of earlier.

Alongside, prices have stagnated at unbearably high levels owing to high rates of land. Increasing prices of land and other building materials also combine to keep property prices extremely high in premium locations.

It is the same story in Kolkata, a city where real estate has not been hit as badly as the rest of the country. Some semblance of market demand still remains and there are multiple projects still on the anvil as well. Yet, finding a premium property in Kolkata can be a very difficult task if you do not know where to look. You should also avoid taking the help of a broker or agent. These people can take you for a ride and you may have to end up paying a hefty commission to these brokers and agents as well. Why take all this trouble when you can find it out for yourself online?

You can use online classifieds to find property in your chosen area in Kolkata. Looking for a premium area to invest in? You must be aware of the spiraling prices and high demand from particular sections of the affluent class in the city. You should be prepared to shell out anything between INR 50/60 lakhs to INR 1crore and more for a property in premium areas of Kolkata. Online classifieds will help you strike a direct deal with the buyers as well. Are you confused with regard to the best area for investment or residential purposes?

If you are hell bent on a posh area in Kolkata, you can try looking at the Ballygunge area. The entire length and breadth of Ballygunge circular road is a much coveted place along with other intrinsic flanks. This area has some of the best eating joints, roads and a fabulous ambience. It is home to the famous Maddox square puja and connects seamlessly to Lansdowne which is another top notch area for buying premium property. Some other areas that you can try include Dover Lane, Hazra Road, Garcha Road, Cornfield Road, Gariahat, and Lake Gardens and so on.

The serenity of the Rabindra Sarobar lakes and Southern Avenue might attract you as well. This is another fantastic area for snapping up a good property as well. Property is highly expensive in this area especially in the lanes and by lanes leading to the Lake Kalibari temple. Another expensive place is New Alipore which is fast turning out to be a posh area for sure! New Alipore has seen unprecedented development in recent years as well. Alipore continues to be the most expensive location in Kolkata followed by Salt Lake which has been transformed into a glitzy township for sure!

Alipore has the most expensive rates for every square foot of residential space. It is home to numerous bungalows belonging to the who’s who of Kolkata. Emerging areas that you can invest in include New Town and Kasba. You can still find property at decent rates in these areas and this will bode well for you in the future considering the development in the area. New Town is still in the process of development and promises to have unparalleled development and growth in the future. It will fast become a business hub and this will see you earning a handsome sum on your initial investment for sure!

Kasba, situated on the Eastern Metropolitan Bypass, is close to Gariahat and is a fabulous place to buy property as well. Kasba is now home to multiple restaurants, bars and departmental stores among other attractions. It is being labeled New Ballygunge for the unprecedented development taking place in the area. Many high net worth individuals are steadily moving into the Kasba area and this has created a buzz around the same. Some other premium areas that you can take a look at include Mudiali, Jadavpur, Bhawanipore and of course, Park Street.

North Kolkata still has its own charm and you can look for property in this area as well. All in all, Kolkata still has potential for investment in real estate, especially in posh and premium city areas. You should always consult an expert before zeroing in on your investment. This is the best time to invest in premium Kolkata areas before prices shoot up even further owing to scorching development and growth in the city. Happy buying!

Panvel and Kalyan - Two Areas Outside Mumbai To Invest In

Buyers of apartments in Mumbai look for affordability with good infrastructure, adequate power and water supply and good connectivity with the rest of the city for easy commute to and from work. These facilities are now being made available in Kalyan.

The area falls under the Greater Mumbai area being planned and is being polished by the Maharashtrian Government into the next big city, after Mumbai and Pune.

Realty Sector

The per square feet flooring price in Kalyan ranges between Rs 4,800 and Rs 6,000. There are more end users in Kalyan and most of them belong to the middle and upper middle class, according to the Anand Housing Agency which is a brokerage firm operating in the city.  Kalyan caters to the wants of people from various segments. From middle to high class, everyone can buy an apartment here. 1, 2 and 3BHK along with luxury apartments are available here that are priced between Rs 35 lakhs and Rs 2 crore.

Market experts of the area feel that the way Kalyan’s infrastructure is being created, price of property might go up quickly in the next few years. Therefore, for end users and investors, this is the right time to buy apartments and plots here.

Because of the rapid growth, many industries, companies and financial institutions are starting their branches or offices in places close by. The area also sees an increase in commercial sector due to the SEZs close by along with MIDC estates.

Even though prices of property in Navi Mumbai and Thane are almost equal to that in Kalyan, Kalyan scores more than them in terms of future growth and connectivity. People working in Mumbai, Navi Mumbaia and Thane have already started buying houses here because of the closeness to their workplace. When compared to Navi Mumbai, Mumbaiand Thane, Kalyan has more affordable properties in the midst of high quality social infrastructure which is attractive to house hunters.

Development of Infrastructure

In the recent years, Kalyan has witnessed a large quantity of infrastructural and industrial development. This huge development has also enticed developers to start residential projects in the area by transforming it into the ideal area for home buyers.

The KDMC or Kalyan Dombivli Municipal Corporation has toiled hard to supply sufficient electricity and water, systems for disposal of garbage and public parks to the area. Rail over bridges, wide roads, bridges, subways and underpasses are being made at lightning pace in the city. The area already has a good number of hospitals, schools, markets, educational institutes and shopping malls.

Some of the renowned developers working here are Dynamic Buildtech, Nirmal Lifestyle, Ashapura Constructions, Saisatyam Group, Gajra Group and Lodha Group. They have started their projects because of substantial commercial and residential growth and connectivity.

Connectivity

When it comes to commuting, Kalyan is well connected. The KDMC own buses which ply in the city and nearby villages and townships. Alongside the buses, auto rickshaws are the major vehicles for transport.

The railway station Kalyan Junction is being remodelled for easy rail transport in the city. Several important Indian cities are already connected to it and once completed, it will be almost next to CST.

Two monorail lines have been planned by the MMRDA, one which will be linking Kalyan to Dombivli and Ulhasnagar and the other will link Mahape to Kalyan.

A 4 lane expressway is being made too which will link Kalyan to Vasai-Virar-Panvel-Diva Bhiwandi and Alibaug. A plan has been proposed to build a central western and central harbour line.

Panvel Another area where you can invest in Navi Mumbai is Panvel where property prices have escalated by almost 35 percent. There is several land blocks available in the area which developers are using for numerous housing projects. There are projects which are in differing stages of completion and some of them are offering buyers to possess the flats by the end of the year 2014 and some others by 2015. Projects which have just begun construction offer possession in 2016 and 2017.

People belonging to different classes are offered residential properties in the various projects here. Most of the projects are being developed in the 1 BHK, 2BHK and 3BHK modules where the prices range between Rs 40 lakhs and Rs 1 crore. The facilities that are offered here include 24 hours security, water disposal, club house, car parking, power back up, gym etc.

The number of projects in this area is increasing because of the growing demand. Even though far from Mumbai, people are still opting to buy property here for good connectivity. Most buyers belong to the service class and they have families. They prefer to live here because of the affordability and easy commute to business disctricts.

The other reason for the rising demand is relative low pricing. Compared to Nerul, Vasai and Mumbai, the prices here are low while infrastructure and facilities is roughly the same. Many investors are from Navi Mumbai and Mumbai itself.

A nodal city of Navi Mumbai, Panvel is developing at lightning page under the CIDCO or City and Industrial Development Corporation of Maharashtra Limited. The residential sectors are all well thought out and have plenty of electricity and water supply. Social infrastructure is good with the inclusion of hospitals, schools, banks, restaurants and malls etc. Roads, flyovers, subways and parks are also being created at a rapid pace. The Pune Mumbai Expressway, Uran Road, JNPT Road and Panvel Pargaon Road give the area easy connection to areas in South and Navi Mumbai, Dombivli, Thane, Kalyan, Badlapur and Ambarnath. The city is situated close to the under construction Navi Mumbai International Airport.

Panvel is a promising realty market in Mumbai and has a prospective increase in property value to the tune of 30 to 40 percent after the completion of the International Airport and other social infrastructure.

From the point of view of an investor, the area has shown good increase in returns in the last few years. For an apartment which had a per square feet rate of Rs 2000 to Rs 2200, you will have to pay Rs 4,000 to Rs 4,500. Presently, the area is affordable although with the kind of development being made, the costs are going to inflate in the coming 3-4 years.

Looking At Noida As A Real Estate Investment Hub

The real estate sector is one of the top sectors and industry segments in the country. This is mainly because of the fact that housing and real estate symbolize one of the pillars of the economy. The Indian economy has always been propped up by growth in the real estate market down the ages. Alongside, with the economy presently in shambles, the resurgence of the real estate business can revitalize it and nurture it back to its previous health. Why resurgence, you may wonder. Indeed, the real estate market does not always reflect its true colors. The year 2013 has been a dismal one for the real estate sector in general. The year has played havoc with the fortunes of developers, real estate companies and conglomerates.

All of a sudden, this business sector has been placed in a very delicate position. The government has also not done its bit for the sector. Now, with the Indian elections in place, pending approvals and other legislative measures are set to take a backseat. Developers are keenly awaiting the results of the elections. The formation of a stable government at the center is something that most real estate companies are hoping for as it will boost the current health of the sector. Alongside, realtors have no choice but to comply with current market regulations. What exactly is ailing the real estate sector in India? This mainly pertains to a sudden drop in demand owing to unaffordable prices that have skyrocketed in recent times.

This is a trend that has been observed across most metro cities. Developers have little to do in this regard owing to the high prices of land acquisition. This automatically keeps prices at unaffordable levels and this has brought down overall demand from the masses. Unsold inventory is something that is common to most developers nowadays and this is piling up at a frightening rate. Alongside, the impending land acquisition act should raise prices further and bring about major complexities for real estate companies and developers in the bargain. However, real estate still remains one of the most aspirational sectors in terms of investments for buyers and mainstream investors. Price appreciation is something that has remained steady in spite of a drop in demand.

Many areas situated on the outskirts of main metro cities have seen sudden appreciation of prices. This has happened majorly in the NCR and Delhi region and average individuals have been left with little choice with regard to owning a home in this area. However, Noida has emerged as a viable investment destination owing to competitive pricing by developers. Noida still heralds a promise of providing affordable housing options for both investors and end users. All localities in Noida are developing at a staggering pace and there are a slew of projects designed to woo all kinds of buyers to the area. There are now multiple avenues for prospective buyers. There are multiple housing projects that are being announced courtesy major real estate companies and reputed developers and builders. There are already multiple projects under construction and the plethora of available residential spaces has quickly catapulted Noida into an attractive destination for real estate investments.

Why Noida? This is because investing in the area can still be affordable provided you play your cards right. Alongside, the area and ongoing projects offer the best infrastructural facilities and other amenities which enhance the value of any investment and thereby yield top notch returns on investments. Land in this area still holds immense potential and multiple projects have been announced one after the other. Residential accommodation can still be had within a price range of INR 6.5 to INR 8 lakhs in the area along with up market residential enclaves that are priced much higher. The sheer variety on offer is hard to resist for investors. Alongside, prices are soaring on the back of heightened demand. The latter has been brought about by the infrastructural development of the region.

This trend has now spilled onto Expressway and Greater Noida areas which are close by and multiple housing projects are being started right off the Expressway itself. The market should be swamped with a wide range of housing options. There is literally something for everyone in this case. Middle class buyers are delighted to say the least and seasoned real estate investors are finding a solid market for fabulous returns too. The authorities have demonstrated fabulous town planning and infrastructural support in the case of Noida which gives it a locational advantage of sorts.

Development has been top class and Noida Real Estate now possesses everything desired by an individual including healthcare facilities, educational institutions, road and metro connectivity, fabulous public infrastructure, good ambience, transportation networks, recreation and entertainment hubs and so on. These are major factors propelling even greater real estate development in the area. However, there are some concerns held by investors with regard to the Greater Noida, Greater Noida West, proper Noida and Expressway areas. These pertain to the long winded commute that is still a bit of a problem.

However, metro connectivity is possible and this has considerably shortened distances from the main city. Alongside, there are now multiple road connectivity options. Remote areas in these places are now accessible through public and private transportation options and are no longer far away from the city center. Alongside, planning was another area of concern which is no longer valid. The entire area is one of the best planned locations in the entire country courtesy the hard work of the authorities. This is witnessed through the fabulous segregation and division of residential and commercial complexes and other centers. Saturation should not be impacting Noida and this is witnessed through the soaring prices in recent times. The prices may seem a little too high at times.

However, they are still lower than compared to Gurgaon and other areas which make them affordable options for a wide range of buyers. Noida can be a fabulous investment destination at this time before prices reach unaffordable heights!

Demand And Pricing Of Real Estate In Bangalore

Bangalore is home to thousands of non-natives who flock down from different parts of the country to work in the flourishing IT sector. Most of the housing demand is from these people who earn a hefty sum every month. The residential property bazaar of Bangalore has been quite steady in the first quarter of 2014. The mid segment which forms majority of the sales showed a good balance between supply and demand and registered steady growth.

Almost 90 percent of the market is comprised of 2BHK and 3BHK apartments. Incidentally, the 2BHK apartments had a demand of 54 percent almost which is roughly equal to the market’s supply. When developers have understood the markets well and catering to demands accordingly, then supply in the market is almost equal to the demand. It is a healthy market where both consumers and producers gain.

In terms of the price bracket, it was seen that apartments in the range of Rs 40 lakhs and Rs 60 lakhs had almost 28% growth in Bangalore for the first quarter of 2014. Similarly, the segment comprising of the upper middle demand, which comes in the Rs 60 lakhs to Rs 1 crore categories the demand stayed at 23% whereas the supply was at 20%. In this case too, market demand and supply more or less matched.

However, the trends noticed in the luxury and budget segments were much in contrast to the middle and upper middle segment. For apartments in the range of Rs 20 and Rs 40 lakhs, the demand was around 28% whereas the supply was a meagre 19%. In the Rs 100 lakhs and above category, the demand was a mere 15% while the supply stood at 23%.

Therefore, areas in JP Nagar and Whitefield had a steady rise of only 3% each followed by Bannergatta Road, RT Nagar and Hebbal which had a 2 percent rise only in property value. En route areas or areas in proximity to the IT corridors such as HSR Layout, Silk Board, CV Raman Nagar, Electronic City and Bellandur also did not show any rise or fall in the property value. It was the same as it was back in the October to December quarter of 2013.

Electronic City has a diverse set and wide range of offerings that are priced between Rs 40 and Rs 60 lakhs, which makes it one of the most affordable localities of Bangalore. Similarly is the case with areas such as HSR Layout, Marathahalli, Mahadevpura and Silk Board. These areas cater to the upper middle and middle class community. There are several ongoing and completed projects of most of the noteworthy real estate in Bangalore.

Closeness to work place, bettered connectivity due to broader roads, flyovers and outer ring roads have ensured Bannergatta Road, Whitefield and Sarjapur the top spots among the most preferred localities of the city.

What determines the cost of an apartment?
There are several steps to undergo for a project even before it is pre launched. Other costs that property development has to bear are manpower cost, construction cost, material cost, regional fluctuations, inflation, approvals that have not yet been gotten and numerous other issues.

These factors significantly affect the final price of an apartment. The cost matrix of a developer has been given below so that buyers can understand what they are paying for and therefore can plan budget allocation effectively.

A project is sold usually at a margin between 18 percent and 25 percent. Almost 30-40 percent of the cost incurred by a developer is the land cost followed by 30-40 percent more as construction cost, based on the location of a project.

As 60% of the cost is received by a developer, he/she/the developing company does not feel compelled to lower the prices even when sales are low. This is a theory propounded in the RICS School of Built Environment. A reliable developer will put in a lot of sweat to ensure that the papers are in order and that the land bought has no litigations. The developer also has to ensure plenty of access to water, sufficient manpower at the time of construction and numerous other clearances that are required during construction of an apartment complex.

A part of the cost is sometimes borne through money that comes in from pre launch loans and offers, in case of advanced land construction and development. With the corpus coming in, the developer can go ahead with debt finance and construction.
By this time, developers often reach break-even and start thinking about earning a profit. Banks too want to lend money in projects that are being held by good developers. One of the biggest avenues for earning for a bank is from construction lending. The lending from banks keeps the projects on track for developers.

House hunters and investors should always remember that developers never play with their own pile of money. The construction industry functions this way globally. Moreover, wealthy financers will not force a schedule of repayment either. Therefore, there is no reason to drop the price of real estate in the short run.

When considering the various segments of construction, luxury projects have the largest margins followed by the mid segment. The affordable segment presents profits only in bulk. Therefore, projects which have a margin of more than 25 to 30 percent can see a correction in long term. These luxury projects are usually in the bracket of Rs 8000 sq. ft or more and offer all the amenities that one would want to see in and around their area of residence.

Projects of the middle segment which are sold at Rs 4,000 for square feet can be expected to fall a bit depending on the ability to bargain of the buyer as the profit margin is much lower. Since investors would not pull out for the next 5 to 10 years, prices of real estate tend to stay stable. If inflation at 7 percent is factored in, then the real cost of an apartment can actually fall depending on money’s value.

Growing Real Estate Market In Hyderabad And Kothur Region

The real estate market is rapidly expanding in Hyderabad. It is mainly initiated with the increasing demand of financial buildings and Information Technology centres in and around the city. Apart from these, the availability of big shopping complexes and good schools has also contributed to the growth of real estate projects in Hyderabad. The open areas lying between Gachibowli and BHEL is highly under developed and has vast expanses of free land open to construction. It is slowly being engulfed by infrastructure companies who are taking up various projects in this zone.

The Tellapur region as well as the neighbouring area, Nallagandla have been developed into good socio-economic centre. Many commercial as well as residential complexes have been set up in this area in the past few years. The area started to attract buyers since last year, with the advent of metro connections. The metro connections shall join this place with the main city in just a wink of an eye. This place has thus become a popular hub of this present day with people and a new locality.

A Home Affair event was held by the Times Property group recently. It was mainly an exhibition of property that offered comfortable and luxurious homes. This Home Affair Exhibition 2014 took place from April 4 to April 6, at WestinRaheja, an IT Park in Hyderabad.

The event was held to introduce chief property builders of the area. It was duly attended by well established builders like Sri Sreenivasa Constructions,Aparna Constructions, Sankalp Corporations and Modi Builders. Planne developers like Vasavi and Vertex NCC Urban, Theme Ambience and Armsburg were also present in the Home Affair.

The exhibition was successful with place for about 1,500 visitors who were interested to find a business platform from these newly emerging projects. This introduced India’s some of the largest builders to property investors. The representatives from MAK Projects were quite enthralled with this meet as their DGM Sales; Ramakrishna has mentioned that they got positive vibes from this well organised property fair. There were already seven visitors to their sites in that short course.

The reaction of SrinathIyer, Sales Executive of Botanika was also quite rejoiced with this affair. They had a lot of visitors in the exhibition, especially on Sunday. The company is into selling high-profile condominiums and had around thirty aspirant buyers to go for a model site visit with them near Gachibowli, after registering in the exhibition stall. They were very excited with the investors as the high range was not a major factor to the buyers.

Another esteemed speaker, Sri Sreenivasa, Krishna Reddy, Sales head, said that they were expecting more onlookers and visitors as the footfall was below their expectations. They expected a lot more faces from the upper middle class section of the city.

A few property buyers were also interviewed to get the outlook from the other end as well. Investor Ramesh Rao was questioned about the Exhibition and he said that hehad come across many such projects which were worth investing in and were available at a reasonable price too. Hence a major fact was underlined that more buyers will be interested in near future to buy property in this zone. Many real estate in Hyderabad are hoping for the same.

Invest in a Residential Plot

Kothur is a small village in the district of Mahbubnagar which is around 35 km away from the main city of Hyderabad. This small area has a lot of residential plots and complexes to offer in the near future. According to the lists, the property value of this place varies from Rs. 5-20 lakh.

These plots are either approved by the Directorate of Town and Country Panning, (DTCP) or Hyderabad Metropolitan Development Authority, (HMDA). Some of the adjacent regions are also approved by the local Gram Panchayat.

The available plots may extend from about 100 square yards to about 300 square yards. The DTCP and HMDA approved plots are a branch of gated communities and have basic facilities like proper drainage, adequate supply of electric and water, open parks with roads pavements and alley.

The plots endorsed by the Gram Panchayat are quite open and devoid of any basic utility factors. These plots are sold at a lesser price as many of the plots lack regular commodities such as proper sewage and supply of water. This area is mainly a favourite of IT professionals and Government employees who don’t want to make a grand investment on plots. The major section of the clients here belongs to the IT sectors of HITEC City, Kukatpally, Gachibowli, Kondapur and so on.

The Telengana issue has harmed the plot deals to a great extent. The plots which were sold at around Rs. 4200 per square yard, a year back have now a value which has dropped down to only Rs. 3600 per square yard. This is a good opportunity for the buyers who are keen on investing at a low financial plan.

This deficiency in price won’t last for long as new important projects by well-known developers like Kirthana Properties, DLF, Vasundhara Projects and many more will soon grow and flourish in this region. Thus due to these land grant projects and upcoming textile industries, the property prices may rise again.

The locality is preferred by investors mostly rather than end users, as the area are still not entirely developed in infrastructural and social aspects like hospitals, banks, schools markets etc. Shad Nagar is a town lying 10-12 km away from Kothur and is enriched with all the nominal facilities needed for livelihood. This land is in close proximity of the Airport but is not approved by the DTCP or HMDA as they lie under prohibited zone while Kothur is not a part of restricted area. Investors can easily invest in a plot around Kothur.

Kothur is located on the Hyderabad-Bangalore Highway or NH-7 and is located 24 km away the Rajiv Gandhi International Airport. There are ample railway stations like the Thimmapur Railway Station, Kothur Railway Station and the Shadnagar Station which joins this place to the main centre of the city.

Builders are now just expecting a stable Government in the upcoming election as it would help in further development of this area.

Developing Real Estate Projects In Dwarka Expressway Belt

In Delhi, buying property has become quite difficult hence the NCR or specifically, Gurgaon is considered a perfect alternative for real estate and building projects. Here the construction projects have nurtured at an increasing rate in the past one decade. Many housing complexes, commercial hubs and several other infrastructures have been emerging out at a lightning fast rate and the projects are progressing rapidly. 

The newest area for development is the Dwarka Expressway or the highway that connects NH-8 to Dwarka. Several real estate projects have been undertaken in this zone which lies only two and a half kilometer away from the Indira Gandhi International Airport. The main job of the Expressway is to connect Delhi and Gurgaon but faster.It has lately emerged out of every legal issues or unwanted delay. Some of the noteworthy estate builders are constructing buildings in this belt.

The home buyers find this place favorable because of incredible infrastructural development with common facilities along with good connectivity of roads. Thus Dwarka Expressway has emerged to be perfect choice for real estate investors. In the northern zone of the country, NH-8 is considered the most congested segment as it is located near the capital city, Delhi. Delhi has many large industries and leading commercial complexes which employs a large mass of people hence there is a continuous travelling between Gurgaon and Delhi. Apart from the traffic problems, the Gurgaon toll also makes it tough for the travelers. The Expressway will relieve traffic in just a few days as it is already on the verge of completion.

Property buyers are very keen on this place because of the connectivity of Dwarka Expressway which provides other important facilities and good infrastructure in this zone. The belt is developed around a planned belt of opportunity. This will set an exemplary business section of the country. Many well knowngroups of schools and hospitals are developing properties adjacent to the Expressway. This provides incredibly good transport link to the main residential centers and the newly developed metro railway in the region. Property buyers are quite happy with the well designed infrastructure and newly developed shopping complexes and corporate sector in this region. The Hotels along the Expressway also attracts many buyers.

Land attainment issues along with several other problems have checked the development of the Expressway and have lead to some serious issues. But the state government along with constructors and stake holders of the region has put in relentless effort to accomplish the projects.

The Dwarka Expressway will be 150 m broad and 18 km in length with vast stretches of green on either side. The open green space covers around 60m on each side. Almost 14 km of the total construction is duly completed of the long 18 km and 800 meters of the remaining 4 km have been granted to the Indian Railway Department for over bridge construction. Still some 700 meters are used for HUDA utilities like water issues and HT Pillars. The disputes with the other 2.5 km is solved and now Dwarka Expressway is on the verge of completion and will soon be a new socio-commercial centreof Delhi NCR.

The Dwarka Expressway is now a hot investment field for the Investors of Delhi NCR. Being a neighbour to the airport, the property gets more attention than other estates of the region like the Noida Greater-Noida Expressway or the Yamuna Expressway. The distinguished property constructors have settled their projects around this zone which will surely attract many of the property investors.

Several commercial buildings and posh residential conglomerates are on their way to develop in this region. Some of them are already half constructed while others are in different levels of construction. It can be estimated that the Dwarka-Gurgaon region expansion will be a lot more different and developed five years from now.

The main features of this zone are it is not overpriced and basic commodities are easily available. It is very close to Gurgaon and the airport so the plot is not too far from a buzzing city.

Dwarka is an amalgamated location where the buyers can choose from any type of project. The budgets of the projects here vary in range. The price of the projects may vary from Rs. 3500 to Rs. 6000 per square feet and the price is solely based on the location of the plot. Private Township is also accessible in the place even though people try to opt for houses that are given by the Delhi Development Authority. As there are many options to choose from, investors can opt for the ones that suit their budget.

Dwarka even has Janta and LIG apartments which can be obtained at a very nominal price of Rs. 16 lakh. These units measure from 450 to 700 square feet and are of 1+1 design. Buyers are usually interested in buying plots at Dwarka Sector 10, 11, 16 and 22 as they seem to be a better option and are quite close to the developing belt. It is also estimated that most of the buyers of this region belong to the upper middle class and middle class working section who are employed in nearby area such as Janakpuri, Gurgaon or Mahipalpur

The infrastructural facilities are quite well developed in the Dwarka Expressway and adjacent places. It is surrounded by a franchise of esteemed academic institutes like the BalBhavan International School, Delhi Public School and Maxfort School. Every sector has its own shopping market for basic amenities.

The major shopping malls of this region are the Crown Mall and Vardhaman Star Citi Mall. They have outlets of different leading brands. In case of an emergency, the locality has proper facility of hospitals and dispensaries as well. Every residential complex has big parks and vast open areas which is why this region is preferred by many buyers.

Like all major cities, Dwarka also has its own developing metro station and proper transport facility for the travellers. The Delhi-Gurgaon Expressway joins with Dwarka via widely constructed roadways. It takes only an hour or so to travel the trivial 15 km distance from Dwarka to Gurgaon. Still the traffic jam can be a major factor during office time. The congestion and traffic of the Delhi-Gurgaon Expressway is likely to be reduced or shared when the Dwarka Expressway will be fully functional.

Taking A Look At The Real Estate Market In Pune

The Indian real estate market has always been typically restricted to cities like Mumbai, Bangalore, Kolkata, Chennai, Delhi and Hyderabad when it comes to huge volumes of growth and high levels of customer demand. Many behemoths have been focusing on these priority markets only but there are some cities which have stormed ahead of the others to take pride of place in the industry lexicon. Pune is one such city which has witnessed fabulous development in the recent past and is now a city to reckon with in all departments. Needless to say, real estate development and improvements have been witnessed in Pune as well.

The residential property market in Pune has always had a particular tempo and momentum of its own. This has always been maintained in spite of economic fluctuations and challenges. Residential sales have steadily come down in Pune but they are still healthy enough to sustain the real estate industry in the city and keep real estate a viable sector. This is the reason for the continuous launch of newer projects by developers based in Pune. More and more mint fresh residential projects and properties are being unveiled by developers. According to the Gera Realty Report for Pune analyzed the period between July and December in 2013 and data from this period highlights the increase in supply of these projects.

Supply of these projects can be gauged by the launches of approximately 41, 600 units out of which approximately 19, 200 units were totally for new projects while the remainder pertained to additions to existing projects and properties. The higher employment opportunities in Pune have directly benefited the real estate market here. According to the director at Ajmera Realty, Dhaval Ajmera, each and every metropolitan city possesses its own unique features which distinguish it from the rest. Real estate development has now gone up to uncharted levels and offers immense scope for buyers to snap up any property in a well connected location and with an upcoming industrial development wave to come. According to Ajmera, this is suitable for investors as well as end users. Employment generation levels are strongly healthy in Pune and this is primarily ensured by the top notch automobile, manufacturing, information technology and other sectors in the city.

Pune has witnessed a rare parity between the levels of demand and purchasing prices. According to the CMD at Amit Enterprises Housing, Kishor Pate, the Pune property market will always possess a sustained viability of its own and there will be no corrections in prices as a result. Speculative investment activity had earlier sparked the sudden rise of prices at a rate which was often deemed unpalatable. This has been combated in recent times and real estate companies and developers in Pune do not encourage mass sales of residential units to these speculative investors. Wide investment horizons are only encouraged in the market. Alongside, these investors usually retain their properties for a minimum period of three years or five years before putting up them up for resale once again.

In between, they earn decent incomes via rentals from these properties. The investments are conducted in such a manner so as to ensure the absence of any fluctuations in prices like the past along with stopping erratic patterns of supply.

According to the managing director at Gera Developments, Rohit Gera, the average market prices have gone up to an average of INR 4804 per square foot from the earlier average of INR 4464 per square foot in only six months while the average prices were about INR 4211 per square foot almost a year back. This is quite decent and places no huge burden on prospective buyers. Mumbai and Pune, despite being close to each other, are different markets. Mumbai always witnesses a situation where space crunches and low availability of ample land makes residential real estate more and more costly and mid range buyers of homes are forced to relocate to the fringes of the city.

Alongside, infrastructural deadlocks continue to plague Mumbai with rampant price stagnations witnessed n most areas. Market pressure is also pushing for corrections. Pune is different according to market experts who feel that the growing real estate market in Pune will be fueled by the influx of more people, companies and employment opportunities. Values of real estate will be increasing steadily here according to experts and proposed infrastructural projects will further this trend. This city is an attractive option for most investors as the real estate market is not in a process of saturation like Mumbai, Delhi and other cities.

According to the managing director at Pride Group, Arvind Jain, the city still remains a very attractive destination for investors. Alongside, emerging locations are showing greater promise with regard to growth and value increases. Upcoming locations in the city are witnessing greater price appreciation owing to enhanced viability in the market and better connectivity options coupled with social and civic infrastructural amenities. The population of the city is one the upswing and people are moving to areas that are affordable and easy on the pocket. According to Pharande Spaces chairman, Anil Pharande, Pune offers solid investment dynamics for investors who should be focused on aspects like supply and demand of a particular location, growth of population and infrastructural improvements.

All in all, Pune is a viable proposition for real estate investments indeed. Look at an area like Aundh in the year 2011. Prices of property would have been in the range of INR 60 lakhs on an average for a decent residential apartment. However, as per market reports and studies, the same prices will surely be in the range of INR 80 lakhs in present times if not more! Values of property have increased by a decent thirty percent in areas like these as per market experts. Capital values for apartment towers in the area currently stand at approximately INR 7, 400 to INR 9, 300 per square foot and even more depending on the project. Snap up a good property in Pune now and reap the returns!