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!

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!

Should you Buy Residential Capital in Mumbai Now?

Is this really the best time to buy property in Mumbai? This is one question that has dogged various prospective buyers for a long period of time. There is a lot of anxiety prevailing around the real estate sector in today’s times. As a result of the otherwise sluggish market and other factors, prices of real estate are steadily softening in most areas of Mumbai. However, buyers are concerned about the pros and cons of investing right now or waiting for a further reduction in prices. Is this really a good time to invest in property in Mumbai? 

Mumbai has always been largely unaffected by the trends in the Indian real estate market and a large scale price correction in prices of real estate. Many of us dream about owning an apartment in the commercial and financial capital of India. Mumbai has always held on to its high prices much in the mold of other major cities like London or even New York. This has been a fact in spite of dwindling project launches, a sharp capitulation in overall demand and rundown financing for real estate developers. However, a recent study conducted by Knight Frank, the leading real estate consultants, indicates that prices may be softening in Mumbai. 

As per this study, the prices of real estate have been fluctuating in a somewhat narrow range and have largely been going down over the last four quarters. This has been happening with the adjustment of the market to newer launches. Premium micro markets usually witness more volatile pricing as compared to suburban micro markets which are close to the periphery. Prices have gone down by almost 10% across the last three quarters in locations like Mahalaxmi, Parel and Lower Parel. At the same time, the suburbs in Western and Central Mumbai along with areas in Thane and Navi Mumbai have seen overall stability of prices which have even risen with the passage of time. 

According to the CEO and MD of Orbit Corp, Pujit Agarwal, the study presents accurate findings to a large extent. However, he feels that the market trends are constantly in a state of flux, varying with regard to the area taken into account. He says that prices across South Mumbai have remained unchanged while price corrections have taken place to the tune of 15-18% which is mindboggling, in areas like Lalbaug and Parel and even close to Wadala. According to Agarwal, prices have been somewhat sluggish in comparison in the suburbs of Mumbai and have risen a little in places like Navi Mumbai. However, places like Dombivili, Thane and Kalyan have witnessed price appreciations to the tune of 10-15% and this is set to continue all throughout the MMR region. 

There has also been an appreciation in prices of resale flats or properties that have been completed even though strangely, there is a dip in prices to the tune of 10-15% for buildings that are still under construction as per the Chairman & Country Head at Jones Lang LaSalle India, Anuj Puri. The price drop may not be as visible yet owing to such manifold market variations. However, there are various concessions, such as free stamp duty, rent back, floor charge waiver, subvention policies, waiver in car parking charges and registration concessions that may be behind the overall 10-15% discounts that are being offered by real estate developers according to Knight Frank. Alongside, these discounts have been seen to go up to a whopping 25% when it comes to housing projects that are of a premium and high end nature. 

There is a large scale desperation noticed among builders and developers in Mumbai. This is because 1.3 lakh apartments are still unsold out of the 2.9 lakh residential units being constructed in the city. The NCR or the National Capital Region has 26% of unsold inventory as compared to the huge 44% witnessed in the MMR or the Mumbai Metropolitan Region. This is a huge worrying sign for developers. The overall demand on part of customers has come down quite significantly. The period between January and September in 2003, saw the launch of 47, 488 units at an approximate level. This translated into a drop of approximately 46% and 42% when the same period for the years 2010 and 2011 was taken into account respectively. Cancellations are another area which is causing problems for developers. The numbers have gone up in recent times and this again, does not augur well for the Mumbai realty sector at large. 

Is this the best time to buy real estate as a result? Experts feel that it would make sense to wait a little more especially if investors are targeting areas like central Mumbai. According to Knight Frank, there should be a more definitive correction of prices to come which should be even more beneficial than the current revisions. Builders have been stuck with unsold inventories and decreasing demand that will lead to greater pressure on the prices. When profits go down and costs of interest rise even further, developers will have to lighten their inventories and offer even lower prices. Alongside, prices have gone down by almost 10% in the central suburbs of Mumbai. However, the overall prices will not be going down owing to limited supply and this might be a dominant trend over the next few years. Alongside, areas like Navi Mumbai which represent particular micro markets might not see price corrections as well. There are many projects which are selling successfully while nearing completion and this is another factor behind the same.

According to Jones Lang LaSalle, real estate developers are also waiting for the results of the elections to determine the final prices. In case of a stable government being formed at the centre, there will be huge euphoria and it might boost demand, thereby leading to prices stabilizing. However, you would do well to wait if you are betting on a weak election result according to Puri. Going by that perspective, it would truly be a good time to snap up a property in Mumbai now!

The Top Players in the Real Estate Market in India

The Indian real estate market is one of the biggest drivers of the economy and creates thousands of employment opportunities every year. Housing is one sector where demand is more than supply and this should see further growth of this industry in the future. Who are the major real estate players in India? Here’s taking a look at the top real estate players from various Indian regions. These are the movers and shakers of the industry and have been recognized for their contributions in this field.

Top Real Estate Players in the North

DLF Ltd is one of the biggest players in the country and is considered to have the biggest market capitalization, developable area, earnings and annual revenues. It is headed by the Chairman, Dr. Kushal Pal Singh. DLF has a presence in almost thirty Indian cities and has developed area of a mindboggling 238 million square feet. It also has planned projects spanning over 413 million square feet and the entire product range of the company include IT parks, residential apartments, multiplexes, townships, hotels, commercial complexes and so on. This is the only real estate company that has been incorporated into the MSCI India Index, BSE Sensex, MSCI Emerging Markets Asia Index and NSE Nifty. It is also known for its luxury DLF Emporio mall.

Omaxe Limited is spearheaded by the CMD Rohtas Goel and the company has made a name for itself with its variety of commercial and residential projects. There are more than fifty projects that the company is undertaking at present and it was the first construction outfit in north India to get the ISO 9001:200 certification. The group specializes in malls, group housing, hotels, integrated townships, commercial complexes and SEZs among other projects. It has also got into constructing highways and bridges in Punjab. Unitech, headed by the Executive Chairman, Ramesh Chandra is another real estate behemoth in northern India and has also received ISO 9001:2000 certification. The company is operational in sectors like IT parks, SEZs, residential projects, amusement parks, retail and even hotels.

There are more than 600, 000 shareholders of this company. It has also entered into mainstream infrastructure. The company has a failed venture, namely Uninor telecommunications, a joint venture with Norway’s Telenor Group which made the headlines.

Western India’s Real Estate Kings

MD Milind Korde heads Godrej Properties Limited, one of the biggest real estate players in this belt. The company was setup under the umbrella of the much respected Godrej group in the year 1990. This is one of the top real estate companies in the industry and has a fabulous brand image. The group has several successful projects to its credit and is currently involved in almost eleven cities throughout the country. The company is also listed on the BSE and the National Stock Exchange or NSE. The popularity of the company can be gauged by the fact that it managed to sell more than two hundred residential units within two days of the launch of the Godrej Frontier project in northern India, its first foray into this region.

Chandru L Raheja also runs the K Raheja Corp which is another real estate behemoth in the Western region. This company has been operational for four decades and more and has specialized in residential properties, hotels and commercial buildings all over the country. The group has also got into hospitality and retail and there are several successful projects under its belt. The K Raheja Corp has also committed towards building Leed Certified Green Building Projects only in the future which gives it a unique dimension of sorts. CMD Vikas Oberoi also runs Oberoi Realty Limited which had its IPO and is a strong presence both in Pune and Mumbai. The company focuses mostly on social infrastructure, retail, office space, hospitality and residential segments.

South India Sobha Developers is the leading company in this space, headed by Chairman PNC Menon and was founded in the year 1995. This company is worth more than ten billion dollars and had its IPO in the year 2006. The company has loads of commercial, residential and contractual projects to its credit and is known for its commitment to development. MR Jaishankar heads the Brigade Group as the CMD and the company is one of the leading lights in South India with its headquarters in Bangalore. The company specializes in sectors like hospitality, property development, education and hospitality. The Puravankara Group is managed by the CMD and Founder Ravi Puravankara. The company has projects located in Dubai, Kolkata, Chennai, Colombo, Mysore, Coimbatore and other areas.

East India Ambuja Realty dominates this sector, headed by Harshavardhan Neotia, the CMD. The company has been a prominent name in Eastern India and is the first company to receive the ISO: 9002 certification in this sector in Eastern India. The Group takes care of hospitality projects, commercial projects, residential units and retail projects as well. The company is presently building malls, IT parks, business hotels, hospitals, luxury resorts and a university. The City Centre brand of malls built by the group has also done immensely well. Sushil Mohta led Merlin Group has also been at the forefront of development in the region with commercial complexes and residential properties. The group has also gone into bungalows, office towers, premium housing projects, malls, country homes and the like.

The Merlin Group has a sizeable presence in Ahmedabad, Chennai and Chattisgarh among other areas and has also entered sectors like stadiums, service apartments, townships, resorts and new generation clubs. Surendra Kumar Dugar and Pradip Kumar Chopra control the PS Group which is another top company in this sector. The group now has seven key players under the umbrella with a strong interest from the next generation with regard to taking the business forward. PS Group builds shopping malls, integrated townships, hotels, residential complexes, hotels, IT parks and other commercial buildings. The company has successfully completed more than a hundred projects successfully and has loads of exciting projects in the pipeline too.

Things Might Look Up for the Mumbai Realty Market with Pre Launches!

The realty market in India had been going through an overall slump of sorts owing to global recession and the downturn among other factors. Realtors are still anxious about the tides of revival hitting this indispensable sector for the Indian economy. Mumbai, as one of the prime cities for real estate development, had also been hit badly by the downturn with sluggish development in the sector. Alongside, the market in Mumbai remained dull and placid through most of last year and this was a worrying sign for leading developers. However, as per latest news and reports, things may just be looking up for the Mumbai realty market. This is mainly due to the sudden flurry of pre launches which are back on the horizon. This mainly underlines the continuation of new projects and the discovery of a viable market for the same which augurs well for the sector in general.

What are pre launches at a very basic level? Pre launches are a time tested method with regard to raising and generating funds even before the actual construction process starts off. This method has been used by real estate developers in the past to fund ambitious projects. The real estate market has been very dull in Mumbai, as mentioned earlier. In order to shake things up a bit, developers and real estate companies in Mumbai are steadily putting up more and more pre launches for residential apartment projects. This is seen as a positive move to shake up the sector and spur into some much needed growth.

The commercial and financial capital of India has witnessed close to twenty five pre launches over the last few months. Buyers have readily accepted most of these including some big projects by the Lodha, Runwal and Kalpataru groups, which are among the top real estate companies in Mumbai. These projects have been readily accepted under the pre launch model, owing to the smaller sizes of these apartments and subsequently, the considerably lower and better prices as per leading real estate consultants. When a pre launch takes place, developers usually expect to sell approximately between 20-30 percent of the entire project. Buyers also need to shell out 30 percent of their total asking price as an advance to the developer.

According to Ashutosh Limaye, the research head at Jones Lang LaSalle India, Mumbai is witnessing a revival of the pre launch market. According to him, real estate companies and developers are not taking any risks with regard to piling up unsold inventory. They are playing totally safe and getting buyers locked into a particular project before all necessary approvals are garnered. The pre launch model is favored even more owing to the prevailing conditions in the real estate market in Mumbai. As per Knight Frank’s report, the global consultants have pinned down almost 130, 000 of the total 290, 000 residential properties under construction, which have still remained unsold. This is mainly because of low levels of demand and the extremely high prices of real estate in today’s times.

According to Limaye, all discounts provided to buyers are taken into account and all financial costs are also considered especially as real estate developers expect to get all necessary approvals within a time period of 12 months at least. Pre launches are doing really well in a real estate market which has been plagued by rising prices and dwindling sales volumes and new launches. The Runwal Forest was recently pre launched by the noted realty company, Runwal group, to be located in the Kanjur Marg (west) area. The developer has priced this project at a viable INR 9, 900 per square feet while market prices stand at INR 12, 000 to INR 15, 000 per square feet approximately. This generated huge demand and the company managed to sell off a whopping 400 units in only a couple of weeks! The fabulously enticing price point and the smaller sizes were huge selling points for this project. The developers sold 1.5 BHK apartments measuring up to 725 square feet and two bedroom apartments measuring up to 1025 square feet as well. Prices started from INR 73 lakhs in this case.

According to the Gatere managing director, Raja Kaushal, most developers do not commence on small apartments in the area mentioned. As a result, the INR 70-80 lakh proposition must have greatly appealed to mainstream buyers. According to Kaushal, these purchases are highly favored by those who are investors. This is mainly because investors can gain up to 20 percent in the very first six months of the launch or about 40 percent on an annual basis. Kalpataru managed to sell 400 units during the Thane project pre launch, titled Kalpataru Sunrise. Again, they sold off these units in only a few days and the USP of this project remained the same, i.e. lower pricing and small sizes.

Sunrise came with an INR 7, 500 per square feet price tag as compared to prevailing market prices ranging between INR 9, 000 to INR 10, 000. Two bedroom apartments measuring 801 square feet came with a price tag of INR 60.08 lakhs while 813 square feet apartments with two bedrooms were listed at INR 60.98 lakhs. In a similar fashion, approximately 2, 500 units were sold off by the Lodha group at its Palava project pre launch. This Dombivali area project listed one bedroom, 729 square feet apartments at only INR 34.19 lakhs, or in other words, INR 4, 689 per square foot. Runwal group is also looking at the pre launch model for another Thane based residential project named Runwal Eirene at prices of INR 7, 499 per square feet.

According to Runwal group director, Vvikas Aroraa, there is a prevalent demand for particular price points and sizes and this is prompting the company to launch suitable products for the same. However, there is a note of caution sounded by market experts, with regard to pre launch purchases not actually translating into great deals for buyers as possession would take up to 3 or even 4 years. Yet, pre launch models are working wonders to revive the hitherto dull real estate market in Mumbai.

Top Places to Buy Property in Major Indian Cities!

Real estate is one area where most Indians take an active interest in. However, most of us suffer from lack of proper knowledge pertaining to the best places to invest our hard earned money. There are some places which are havens for real estate investment across major Indian cities. Here are the top places for real estate investments across major Indian cities!

NCR-Delhi Region

Property consultants usually favor the NCR-Delhi region a lot and this has been even more pronounced with the infrastructural development of the area including New Gurgaon, the Dwarka Expressway and the Noida Extension. This area offers a huge incentive for buyers and investors. According to real estate consultancy, DTZ India, the market has gradually been shifting towards end-users owing to the lower prices and corrections as compared to the investor driven demand earlier. There are many residential projects coming up right along the Dwarka Expressway which is progressing at a steady pace. This will be an expressway of eight lanes which will link Delhi and Gurgaon. Many new projects here are slated to be ready by next year and will primarily be for middle and high income groups.

The Dwarka Expressway is a great place for real estate investments owing to its proximity to the capital and the international airport in tandem as compared to the Yamuna Expressway, Bhiwadi and Noida-Greater Noida Expressways. The northern region is closer to Dwarka while the southern part is way closer to Gurgaon. The northern region, i.e. the Sectors 109-113, 103 and 106 will obviously be more in demand owing to their closeness to Dwarka and the airport as well. The prices in this region will increase by approximately 25-30 percent according to Knight Frank over a period of five years and returns on investments will be 16 percent annually on an average.

Noida Extension is another good area for investments and the area spans Sector 1, 2, 16C, 4, 16D, 16B and the Greater Noida Knowledge Park V. It is in close proximity to Noida, being only ten kilometers away from the Noida City Center and is only 18 kilometers away from the prime commercial area Connaught Place. There is a proposed link via metro rail which might happen here, thereby making the area even more attractive for investors. This is the best location in NCR if one is seeking affordable housing. Yearly growth should be in the range of 15-20 percent throughout five years. Annual returns should be about 16 percent annually according to Knight Frank.

Greater Noida is another favorable investment location. There are varied options lying between INR 3, 000 per square foot and INR 15, 000 per square foot. Returns are usually in the range of 18-30 percent and the residential real estate scenario here looks promising to say the least! Greater Noida is around forty kilometers away from New Delhi’s southeastern part and is steadily coming to the fore as a hub for education and industry. Noida can be accessed via a six lane highway which has been operational right from the year 2002 and there are many prominent companies who are present in Greater Noida. It takes a maximum of twenty minutes to reach Greater Noida from Noida and it is also connected to Agra through Mathura, courtesy the Yamuna Expressway. The metro railways will also connect Greater Noida with New Delhi, Noida and Ghaziabad as well. High end and mid range residential projects should be the real deal in this area and things are expected to brighten up in quick time. Prices may increase by around twenty percent annually in this region according to leading property consultants.

Mumbai and Associated Areas

Maximum city possesses a thriving real estate market even today. Prices have not risen as much as expected and the suburbs in eastern Mumbai should be attractive investment destinations with regard to viable returns as compared to areas in West and Central Mumbai. The emerging Ulwe area is a top investment spot if you go by connectivity and other attractions. This is situated just south of the Panvel creek and the Uran Road connects it with the Thane Belapur Road. The Jawaharlal Nehru Port can also be accessed via the JNPT Road. Belapur is only seven kilometers away and is a commercial hub. There are other office locations which are situated within twenty two kilometers. The Seawood-Uran-Nerul rail network should be ready and Ulwe will have access to prominent office areas through a mass rapid transport network.

The prevailing INR 4, 000 per square foot here is quite attractive now and this is slated to increase by almost twenty percent every year as per industry reports. Chembur is also a hot investment destination owing to its proximity to major office areas and also the Bandra-Kurla complex. Residential properties in this area will witness major demand as well. There will be more discounts offered by developers in this area as well. Alongside, the monorail linking Wadala, Jacob and Chembur will be coming up along with the Santacruz to Chembur link road and the Eastern Freeway. These projects will definitely improve overall connectivity of the place and prices should be rising by 18 percent annually which is quite profitable by all means. Wadala is another top bet owing to its connectivity via the Eastern Expressway.

It also has a good train network and the monorail project will be a big boon in this area as well. Annual returns should be in the range of 18 percent over a period of five years here.

Bangalore

The Information Technology hub has been at the forefront of development and new projects have been launched in particular areas that look quite promising for investors. Hebbal is a rising destination owing to the international airport and the technology parks located here. There are many prominent companies in this location. This area is slated to witness huge demand and prices should be increasing on an annual basis. KR Puram is another area which is perfect as a residential destination. Connectivity will improve vastly owing to the Peripheral Ring Road and metro and highway connectivity also makes this place a great investment location.

2014 Real Estate Trends And Developments

There have been a slew of developments in the real estate sector all throughout last year and many new trends are anticipated in the real estate market this year. According to the Managing Director at RICS South Asia, Sachin Sandhir, there have been many positive developments last year including the REIT guidelines, Regulator Bill and also the Land Acquisition Bill. The Finance Ministry was abuzz with newer measures related to the real estate sector and the overall health of the economy in general. From the context of positive policy making, the year 2013 set the ball rolling with the benefits slated to be received by the market this year if all goes well.

Indian Real Estate Market

The elections have a vital role to play in the actualization of these measures and plans though. Sandhir details the real estate slump and feels that the Delhi-NCR and Mumbai markets have been the worst hit ones. Sales figures have gone down almost every quarter as well. The economy has to get back on track with a growth rate of at least 8 percent and propelling the real estate sector with good measures is the need of the hour in this regard. According to Neeraj Bansal, Partner, Real Estate & Construction at KPMG feels that there have been positive initiatives taken at both regional and Central levels with regard to land pooling and affordable housing. However, all stake holders have not been taken into consideration and hence this has not been a cohesive process with markets receiving mixed signals from the Indian Government.

According to Navneet Bhadla, a Brys Group Director, there is a huge disconnect between industry bodies, the Indian Government and also developers and companies. There is no mutual progress being fast tracked. There has to be a particular connect worked out by the government for 2014 as otherwise the economy itself will remain in slump mode. Real estate trends now pan out in two distinct ways. Firstly, luxury market buyers and consumers are not really affected by market slowdowns or the slump and these individuals purchase on a personal needs basis. This segment is mainly governed by personal taste. Alongside, there are multiple developers who can offer affordable housing solutions to customers on the back of ever rising demand. However, governmental policies are still not supportive enough and developers need to be a part of the decision making process in order to fulfill this demand and keep prices low.

This alone will be the biggest mantra of this year as developers will go in for affordable housing ventures in tandem with governmental approval if a stable government is formed at the centre. The second half of 2013 has not seen any price increases and this trend is set to continue. The RBI has set on a quest to control market inflation but high levels of interest are proving to be a deterrent for buyers and this is one trend that may severely affect the real estate market in 2014, in the absence of governmental regulations and policies dedicated to affordable housing.

Information technology will be of much importance this year. The real estate industry value chain will witness the steady inclusion of IT based systems for management of processes and organizations. Alongside, ERP will be a growing trend among companies and builders in this sector with regard to allocation, management of inventories, accounts and finances. Technology will be taken up in a big way by consultants and developers and CRM basic solutions will flourish in the real estate space. RealtoExpress, SAP and Salesforce are set to become even more popular in times to come.

Real estate consultants will be more methodical and will use ERP and CRM among other technological tools which will facilitate better campaigns. They will receive higher returns on investment with these tools. Organizations will be able to maintain minimum sustainability levels on account of these IT solutions and tools. Lead conversions will be increased substantially as well owing to ERP or CRM solutions. Exit routes will be a major focus for real estate consultants and companies and these will provided to clients, customers and investors. Social media and other online platforms will witness the proliferation of real estate news and views along with project promotions.

There will be particular business networking sites where sealing deals will be a much easier process. B2C and B2B solutions will also make their presence felt in the market. There will be dedicated portals for concluding deals and these will be tailored for real estate professionals. Real estate information is another sector which will continue to be a minefield for consultants and online professionals. More and more real estate companies and developers will try to harness the powers of social media to connect with potential customers and investors. There will be dedicated IT networking solutions for such efforts. Alongside, real estate sectors may just get their own private communities and networks for business as this is slated to be a popular concept this year. This year will witness the slow death of emails as a primary tool for communication with social media outstripping it by a long mile. Deals will be closed faster owing to easier access and a larger customer pool to target.

Alongside, 2014 will see a shift in target consumers for most real estate companies. Companies will reach out to more and more young customers who desire connectivity, status, mobility and increasing comfort and convenience. The buyer profile will change dramatically as this new age group and buyer segment makes its presence felt in the market. This segment will generally comprise of people with high disposable incomes and this will lead to more big ticket projects in urban cities. All in all, the real estate trends of 2014 look promising to say the least but much depends on the actualization of initiatives and trends witnessed in 2013 which set the ball rolling for greater innovation in the sector. Here’s to a promising 2014 for Indian real estate!