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!

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!

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.