Kolkata’s Myriad Real Estate Market!

Real estate has always been a myriad world in the many layered city of Kolkata. Kolkata has always been one of the foremost cities for real estate developments. Real estate progress has happened considerably in the city owing to a combination of factors. Firstly, many professional real estate conglomerates and companies have been formed in Kolkata. Alongside, Kolkata has suddenly become a haven for top end housing and residential projects. The luxury and premium markets have suddenly come up in the city on the back of tangible demand which was nonexistent earlier. At the other end of the market, there is also a huge demand for affordable housing and residential enclaves. There are various midrange options available as well in most cases and this is something that augurs well with regard to real estate development. Real estate development has touched new heights in the city and this has also led to price appreciations and other similar trends.

Kolkata is now a luxury and premium housing hub and with the advent of the proposed metro connectivity in newer areas and better infrastructure, the trend of rising prices should be observed even in the near future. Alongside, Kolkata customers are no longer conservative and conventional with regard to their home choices. A new trend is steadily being observed where customers desire minimum amenities and facilities and do not mind paying a price for the same. Developers have also been experimenting with projects like condominiums, gated enclaves and other residential housing varieties. This has only added to the sheen of the real estate sector in this city which is still a little sluggish though.

Areas like Ballygunge, Alipore and Southern Avenue have become unreachable as far as property prices are concerned. There are very few residential projects coming up in these areas and buying a house here is next to impossible owing to the prices on offer. According to Surajit Malakar, the director at Envision Realty Management Pvt. Ltd, huge demand has been witnessed for properties within the INR 25 lakhs to INR 40 lakhs bracket over the course of the last year. Buyers of property are more willing with regard to walking the extra mile for property purchases within a particular budget range. The budget range mentioned earlier is the top selling property bracket especially in the south eastern areas parallel to the extension of the Bypass. This includes areas like Rajpur, Kalikapur, Sonarpur, Garia and even Baruipur.

These are areas that have been witnessing fabulous demand from customers. There is huge demand for both 2 BHK and 3 BHK apartment units. The former usually comes within 700 to 1000 square feet while the latter comes within 1000 and 1400 square feet. Maximum buyers usually prefer these properties. The metro station is available within only two to three kilometers and the upcoming flyover will connect the Bypass Extension to the Bypass Road. This project should be completed by the month of June this year and will speed up connectivity rapidly in this region. These are some of the major reasons for the flocking of buyers in large numbers to this area. According to real estate experts and professionals, these factors will readily encourage the development of real estate in this region and these areas are expected to be huge draws in recent times.

There are various parameters taken into account by buyers before taking a final decision on the properties to be bought according to Malakar. These essential aspects include the ratio of the super built up area to the carpet area. This is usually termed as the floor efficiency ratio and this holds prime importance in the market. Developers who offer properties with a twenty to twenty five percent difference between carpet and super built areas are usually more popular with customers. Other features include power back-up, security, club houses, playing areas for children and a swimming pool. These are other important facilities that Kolkata customers usually look for before buying any property. The prices of real estate Kolkata in this area should remain stable at least for some time. Short term stability of prices is what is luring buyers to this area. Property prices are stable mainly because of poor sentiments in the market, unaffordability, demand lags for third and second homes and cautious approaches of customers in general.

Alongside, price increases will further be negated by the proposed bill which seeks to declare property prices on carpet area as a mandatory requirement and this will also lead to better stability and affordable rates even in future. Affordable values of property and infrastructural development measures have mainly driven demand for homes in Sonarpur. Kolkata customers are rushing to Sonarpur in droves and this is a highly preferred residential area in recent times. The area has witnessed huge changes over a span of five years in all and this South East Kolkata address is witnessing a large number of projects being undertaken by developers and companies. Land prices are lower in this area and this is what has spurred better development in the region.

Apartments within 750 to 1430 square foot are available in the area at prices of INR 2, 600 to INR 3, 000 per square foot. Alongside, this means that an apartment of 750 square foot comes at INR 20 lakhs in this area. The average prices of property in Sonarpur range between INR 20 lakhs to INR 40 lakhs. High value apartments are also available in this area. Big developers like the Ideal Group and Nature Home Group are thinking of launching multiple projects in this area as a result of growing demand for residential units. Availability of land and good connectivity is fueling this demand. Alongside, students are flocking to the area owing to the presence of the Future Institute of Engineering and Management.

The Mayfair Group, Lord Group and Srijan Manik Developers LLP are also coming up with big ticket projects in these areas. Real estate growth has been dynamic in these areas and further developments are naturally expected!

How To Get The Best Real Estate Deal For Yourself!

Getting the best real estate deal for yourself is no mean feat. You need to be very sharp and on the ball at all times. Real estate is one sector where a lot of fluctuations have happened in recent times. These fluctuations can either be good or bad depending on the present condition of the market and its intrinsic mechanisms. Real estate markets are not really in good shape in present times. Why is this so? This mainly has a lot to do with the market trends that are dominating the economy at present. Real estate markets are having to deal with a slump in demand. It is important to know the background context of real estate in India before you actually think of purchasing a property for yourself.

Real estate has been bogged down by certain problems like price stagnation and unaffordability. Stagnation of prices has mainly resulted from the initial conundrum of lower supply levels and burgeoning demand points. Price increases mainly resulted from this dilemma and henceforth were propelled upwards by sky rocketing development of particular areas and locations in all major cities, even in the suburbs or outskirts. Right now, prices have reached a maximum level which is both unaffordable and unreasonable for entry and mid range buyers. The luxury and premium housing markets continue to do well in India which is rather surprising considering the current state of the Indian economy.

However, there has been a huge slump in demand from the mass as a result of which, unsold inventory has been piling up by the dozens. It is the same situation for hundreds of realtors, developers and companies in this sector across the country. Real estate prices have now saturated and there have even been price corrections in some areas. Price corrections have been to the tune of ten to fifteen in prime locations of cities like Kolkata, Delhi, Mumbai and Bangalore. On the other hand, prices of property in the outskirts or rapidly developing outer fringes have seen a slight appreciation backed by popular demand from customers.

In areas where price corrections have not taken place yet, developers are looking at ways and means to make the offer more lucrative for hard pressed customers. This is another predominant trend that is being witnessed in the real estate sector of late. In this scenario, you need to be careful if you need to obtain the best real estate deal for yourself. Bear in mind that buying your dream home in the present scenario may not be as easy as it looks. Always have a solid database of information and details relating to properties available in your preferred areas and locations.

Always be flexible with regard to factors like location and other amenities. It pays to be flexible in the current scenario as you might end up getting hold of a fabulous deal with only a few tweaks here and there. Do not go by the first impression of the developer or real estate company selling you a particular property. Do not be influenced by sales pitches and the claims of the developer. Developers often make absurd claims about the location in question and its advantages which may not often translate into actual, tangible reality.

Always make your own inquiries with regard to the area, its advantages and benefits, transportation facilities and the like. Always insist on certain basic amenities like power backup, security services, generators, playing areas for children and recreational areas when you start searching. This will help you narrow down developers who have projects that may be to your liking. Keep in mind that you may not find all your desired amenities in one single location. This hard to predict and you may lose out on a good deal if you are too rigid. If it pertains to something absolutely important and necessary you should not be making any compromises.

However, if it is something that can be substituted or replaced or even done without, do not hanker unnecessarily with the developer. Always bear in mind that developers dole out freebies, special payment offers, flexi payment schemes and other benefits in order to offset the impact of high prices on customers.

Make sure that your developer or realtor offers some tangible benefits in this regard. It makes no sense to go for a particular property otherwise and you will find loads of projects and developers which provide you certain extra benefits. Always negotiate with the developer as to the final prices. If the prices cannot be lowered throw in an extra benefit or two wherever possible. Keep in mind that price corrections are not unnatural and it is the developer who should be worrying about stock clearance and not you.

Undue hurry and desperation often gets the better of us and forces us to make a rapid choice. Do not be hurried by the statements of the developer pertaining to limited properties being up for sale and the huge rush expected and so on. Take your time in deciding on the purchase and do not be worried about missing out on anything. While dealing with the developer or real estate company, always be firm yet friendly. Do not be overtly aggressive especially in India as developers tend to rely more on personal interaction here.

Always look for locations that have upcoming and proposed projects and development opportunities. There are loads of development opportunities in place across multiple locations. New and upcoming areas offer loads of fabulous deals for real estate buyers and investors. If you buy a property in an upcoming area at a cheap price now, you will stand to reap the benefits later. If you are an investor, always have a wide margin of about three to four years for getting your investment back.

Follow these tips towards getting hold of a fabulous and attractive real estate deal for yourself. Real estate markets are witnessing major changes and you should get your share of the pie as much as you can! 

Amenities Offered By Builders - Farce or Reality?

Most add facilities free of cost across different pricing segments to make the deals attractive for the buyer. A lot of buyers get attracted by these add on services as they value them a lot. However, how much do these add on services should exactly mean to a buyer?

Modular kitchens which have all the necessary wood work done, twin apartments that have shared private lounging areas, restricted access swimming zones where only row houses that fall in the luxury category are provided entry, special pools for “energizing”, landscaped terrace gardens in every villa, zones for teens and much more are some of the amenities being offered by developers. Some of the amenities such as the modular kitchen are priced nominally while the rest are given away for free!

Not only does the luxury segment get these free ad ons but also mid segment builders are offering interesting freebies. Some of them include no additional car park charges, electricity charges are not imposed over the set price and charges for using the sports zone or club house are waived. Such expensive amenities being offered for free might make buyers sceptical of the actual intention of the builder.

AvikPrabhu who is a loan adviser and consultant states that builders do not make false promises to prospective clients. The competition has increased in Bangalore which is why builders are taking such drastic steps to keep their business afloat. Several new projects have been announced in the city and a large number of the existing ones are inching closer towards completion which has elevated the level of competition that a builder has to face from his own and others’ projects. Therefore, the target of attracting buyers is heating up and developers are offering better deals. From the developer’s side, it is actually a case of showcasing to buyers about how his project is better than those of his competitors.

Therefore, it is very essential for a buyer to clear out what he is imagining the freebie to be and what the seller is offering. As a buyer, you should also consider what your and your family’s needs are over that which is being offered.

Amenities such as children’s play area, swimming pools, club house, mini theatre, roof top entertainment zone, jogging tracks and senior citizens’ walking area are being offered by many mid-segment developers in projects where the starting price of an apartment if Rs 55 lakhs. On the other hand, developers who have more expensive projects are focusing more on the quality of construction, handover date and people density and a few of the aforementioned amenities. The buyer has to check out the different offerings and go for what is her or his need.

Here are some pointers that would help buyers know exactly what they should look out for and what is being offered by the developer.

•  Because the cost of construction has gone up, buyers should actually check out the quality of the free  amenity being offered and exactly what the builder is offering. For example, a facility such as the special energizing swimming pools may have pressure spot tiles, similar to those used in parts or flooring which is extra ribbed and prevents skidding and not Jacuzzi style pressurized flow of water. Similarly, a landscaped terrace might mean a patch of artificial grass that is bordered with flower pots, wooden flooring with miniature pals in pots and partial grass.
•   An Italian kitchen or ready modular kitchen with the apartment does not necessarily imply that the kitchen will be decorated as per your customizations. It implies that basic facilities such as two slide basket sets and two wooden shelves will be provided. Four small cupboards may also be provided on the top for storing containers and jars. It does not mean that a full length double smooth slide storage space would be provided that measures 9X17 feet. When you choose a ready-made modular kitchen, you need to check the quality of wood. Wood, being a part of building materials, has also seen a price hike along with other construction materials.
• Find out the difference between MDF, ply, particle wood, rubber wood and teak and their usage in terms. They can be used in combination to save a lot of stress and money in the long haul.
• Some of the combinations of wood are more water resistant than the others while some are resistant to dampness and some others should be strictly used in dry areas. It is wiser to spend a little more intelligently after some research. You will actually get what you need instead of getting duped by a cost effective pricing option that is offered by the builder.
• Take stock of what you need and look for projects that check your list of wanted amenities. Do not buy into the colourful and glossy offerings that are being claimed by the builder.
• If you are the type of person who is more comfortable with yoga and long walks, then high quality construction should be your priority along with a green view in an area of solitude. You could also go in for roof top entertainment areas and closeness to a good park. Once you have fixated upon your criteria, concentrate on the size of the apartment and its location. Facilities that you do not use such as swimming pools, clubhouse, jogging track etc. would be a waste for you.

 Before making a purchase on any apartment, talk to your friends and family. Focus more on what your family needs. If you need a location near to your workplace, then forgoing landscaped terraces and clubhouses makes sense. Also, opt for an apartment that has multiple rooms. If you are newly married, a 2BHK flat might seem enough for you. However, as time passes by and your family expands, the space will fall short and you will have to go through the hassle of looking out for larger apartments. Assessing what you need now and may need in the future is of utmost importance when you are making a decision about buying an apartment. 

Mumbai becomes Expensive for Residential Property Buyers

The Indian real estate market has been witnessing a nationwide slump of sorts. This has mainly been attributed to a combination of factors revolving around the state of the economy. The Indian government has done little to revive the sector with cutting edge reforms and policies even though a few bills were passed in the year 2013. As a result, the industry is now awaiting the election results with a view towards praying for the formation of a stable government at the center. Why is this factor important for developers and real estate companies all across India? This necessitates a thorough study into the present condition of the real estate market in India. Firstly and most importantly, real estate is suffering owing to a severe lack of demand. Indian real estate thrived on huge levels of demand and this was considered to be a permanent factor given the levels of growth.

However, the poor economy and other factors have put the brakes on the steady progress of the Indian real estate industry. Why has demand dropped down to such levels? This mainly has to do with economic fluctuations and changing market conditions. Alongside, the extremely high prices of real estate in maximum areas has put paid to any hopes of attaining a home at affordable rates. This is proving to be the biggest reason behind the steadily dwindling demand especially in metro cities and major business hubs of India. On the other hand, suburban areas and projects situated on the outskirts of major cities are witnessing a tiny growth in demand owing to more affordable prices and better transport connectivity. Alongside, these areas are even witnessing an appreciation in their capital value with the steady development of infrastructure and social amenities in the region.

Surprisingly, demand in major cities like Delhi, Mumbai, Bangalore, Chennai and Kolkata has come down to surprising levels. High prices have severely affected the budget housing and mid level housing segment in major Indian cities including the top eight. Alongside, the premium and luxury segments have not been hit as badly as the entry and mid level areas. However, even these projects are struggling to find buyers owing to high prices of land and liquidity crunches. Developers are in a stressful situation right now and the major problem pertains to unsold inventory. Unsold inventory has gone up to unprecedented levels and is steadily piling up for major real estate companies.

Along with unsold inventory, the high prices of land are making it impossible for developers to reduce prices and offer homes at lower costs to buyers. They are now offering various discounts, special offers and other freebies in a bid to clear out their inventory. This makes it a win-win situation for buyers and investors who can afford it. Yet, the expensive nature of real estate purchases cannot be denied especially in a city like Mumbai in spite of forecasted price revisions and corrections owing to a slump in demand.

Mumbai is one city where the cost of acquiring residential real estate may just increase by leaps and bounds. Mumbai residents are praying for price corrections and revisions to take place and at the same time, the values of property in the city are rising steadily day by day. According to a study brought out by the noted real estate advisory and consultancy, Knight Frank India, it has been found that the values of residential land available in Mumbai have increased to the tune of almost 35.2 percent which is mindboggling and astonishing to say the least! The very fact that this has happened in the previous couple of years is another worrying factor. Land which is used for residential development has now become costlier and the increase in these prices is mainly attributed to factors like residential price hikes along with multiple norms of development.

What prospective customers and Mumbai residents do not realize that the values of built spaces have also been influenced by this increase in the values of residential land. Owning a home in Maximum City has become more and more difficult and expensive in the last couple of years and this is one harsh reality that prospective buyers and city dwellers have to accept without any real solution in sight. This is something that has affected the morale of all those aspiring to own a home in India’s financial and business capital. According to Darshan Vyas, Managing Director at True Value Realty, a Vadodra based brokerage firm, the overall pricing of built spaces is one aspect that is dynamic and all movement happens likewise in an effective manner.

According to Vyas, there are two major aspects that influence the cost of any built property these days, namely the cost of construction and the cost of land. The former is one aspect which is by and large stable as far as trends in both large and small cities are concerned. The latter is the factor that makes the real difference in this case. For instance, the cost of land is lower in places like Vadodra as compared to Mumbai owing to lower demand per square feet. High levels of demand and lower supply of residential spaces have now pegged values of land to exorbitant heights.

Values of property too have a relationship that is symbiotic with the values of land. This proportionate growth is behind the sudden appreciation in property values in Mumbai. This premier city is now one of the most expensive propositions for Indian buyers. Prices have largely appreciated to the tune of ten percent and this has even gone up to forty five percent in some areas. Appreciations have been observed in places like Navi Mumbai and Thane among others. According to Mehul Thakur, the Viva Homes director, the annual increase in prices of land in Mumbai is mainly due to the constrained supply of ample land along with the rising demand for quality residential property. The Mumbai real estate market will soon be on an upswing and positive market sentiments will again prevail after the elections.

According to Thakur, affordable housing is a pressing need in Mumbai and realtors should not scale up their prices any further in case of positive market sentiments as this will only serve to dampen the same and lower demand further to unacceptable levels. The focus should be firmly on affordable housing according to Thakur and many other industry professionals and experts. Whatever be it, residential real estate is set to become even more expensive in Maximum City!