NRIs Switch to Commercial Realty as Residential Stutter

Non-resident Indians (NRIs) from the US and West Asia are now diversifying their asset exposure and investing more into commercial properties rather than residential due to high risk and the imminent slowdown in the segment.

The preference is also being driven by better returns from the office assets and a fixed income that is being generated by such investments.

“Its returns outperform those of traditional fixed deposits (FDs), mutual funds and Sensex, with an average rental return of 7-8% and overall returns of 18-22%.

Currently, 40% of our NRI clients are investing in Indian commercial real estate through fractional investment,” said Kunal Moktan, co-founder of Property share.

Commercial office space vacancy has almost halved in the past six years due to robust demand from corporates. Office space absorption is not only strong, but pre-leasing is at an all-time high, which is an indication of sustained demand and occupiers’ interest in commercial spaces.

“Over the last one year, we have sold around 1 lakh sq ft of small offices in Navi Mumbai. Of this, 15-20% have been bought by NRIs and this is a significant jump compared to our earlier experience. ,” said Ashok Chhajer, CMD, Arihant Superstructures.
Source : https://goo.gl/kgAXSR

What’s new in office space designs today?

1. Waiting area is not so boring now!!

A collaborative seating zone with eclectic lighting provides a welcome multi-use meeting/ waiting/ discussion space

2.  Meeting booths are getting casual

Gone are days when meetings used to be held behind closed doors. Here collaborative zones feature semi-enclosed meeting booths with comfortable sofa seating for a quick one on one or team discussion

3. Open office environment leads to more productivity

120 degree workstation arrangements allow for both sufficient individual privacy and team wise definition of space in an open office environment. Such designs are increasingly being used by companies to allow employees to interact with each other creating a warm environment eventually improving the overall productivity.

4. Dull colours are the things of the past

Many may not know but colours also play an important role while designing an office space.Vibrant and trendy colours add a fun element to the the office spaces.

5. A welcome break from the work

Aesthetically designed food and beverage corner with a high bar counter type seating, visi-cooler and tea-coffee dispensar provides for a great place for chit-chat and a welcome break from the work.

6. Open seating creates a congenial work atmosphere

Taking open office seating to the next level by removing all screens and partitions to encourage interaction and collaboration.The accent colours on walls and columns with well placed graphics and greenery create a congenial work atmosphere.

7. New age video conferencing space

Clean white lines define a new age video conferencing / entertainment space with a combination of sofa seating in front and high standing counter/ bar seating to accommodate more participants.

8. Open desking replacing individual workstations

Open desking without fixed user assigned seats or hot desking are replacing individual workstations as a new trend that is being embraced even by traditional offices.Companies are even encouraging employees at top managerial level to go for such open spaces to interact more with their team.

9. Island cabins are the new norms

The island cabins and meeting rooms are the new norm pushing the open work desks toward the external periphery for a better daylight penetration and hence a naturally brighter working environment.Accent colours based on a theme or derived from corporate colours add a distinct character to these enclosed yet visually open spaces source : https://goo.gl/fW5ikz

Gurgaon proposes 15% cut in circle rate

The Gurgaon administration has proposed to slash circle rates of properties by 15% this year to help revive a slumbering real estate market that is in the grip of a prolonged downturn.

If the Haryana government approves the proposal, it will be the first time in recent history that Gurgaon, a premium real estate market, will see the circle rate graph slip downward. In the previous two financial years - 2014-15 and 2015-16 - circle rates in the city were kept unchanged but failed to lift buyer sentiment.

Though it’s not the only factor responsible for the realty industry’s current problems, a senior government official said the proposal to cut circle rates is a course correction, in consonance with the prevailing ground realities, and is expected to help recharge the market.

“It (the proposal) reflects the reality,” said divisional commissioner D Suresh, who has sent the proposal to Chandigarh for approval. Suresh said in some areas, existing circle rates are higher than current market rates of land and need to be rationalized. Circle rate is the minimum value at which sale or transfer of a plot, a built-up house, an apartment or a commercial property take place. Buyers also pay stamp duty according to the circle rate.

Gurgaon deputy commissioner TL Satyaprakash, who led the committee that proposed the reduction, said there was a dip in flat registries, leading to loss of revenue for the government. “Market rates have come done in certain areas but circle rates are still high, so we have to rationalize the rates,” said Satyaprakash.

One of the changes suggested by the administration is a graded circle rate for commercial properties between Ambience Mall and Sector 39, which is currently uniform. “We want different circle rates for different areas on this stretch, the highest rates for commercial properties near Ambience Mall and Galleria Market but different ones in the remaining areas,” said Satyaprakash.

Developers were confident that investor sentiment would significantly improve with the rate reduction. “The circle rate cut will reduce overall cost as these rates are the basis for tax calculations,” said Pankaj Bansal, director of M3M Group.

Manoj Goyal, director of Homestead, said, “This is good move as property prices have dropped over the past couple of years, creating a gap between the transaction value and circle rates. Buyers are forced to pay additional stamp duty and capital gains tax on the differential value as well. This results in an extra payout.”

Huda, which is having trouble finding buyers for its land parcels because of the high circle rates, is also expected to gain from the move. “In March, we had put on auction 96 commercial properties in Gurgaon, Dharuhera and Rewari. But we managed to sell only 10 properties,” said a senior Huda official.

Source: www.RealtyFact.com

FDI in e-commerce will open the floodgates to the market

India is already host to some of the largest global e-commerce players. The announcement that 100 percent FDI will now be allowed in e-commerce is going to open the floodgates to a host of other players in this segment. The impact that this development will have on Indian real estate will be significant. In the first place, the new players -like their predecessors will require large office spaces to house their back-end teams. They will naturally direct this requirement to the country's top 7 cities.

The second impact will be on the demand for warehousing and logistics real estate. Unlike the demand for office spaces, this additional requirement will be spread fairly evenly across Indian cities. E-commerce players need to be able to deliver quickly to their customers, and one of the most important clientele segments for them are in the Tier 2 and Tier 3 cities. We will therefore see a significant step-up in demand for warehousing spaces in and around these cities.

On the flip side, there has been a rider clause attached to the FDI liberalization on e-commerce. This is that ecommerce players now will be unable to sell below market prices and not more than 25 percent of sales will happen via one vendor (this proviso does raise a question about the term 'market price', given there is fairly broad accepted range for most products). In any case, this announcement brings brick-and-mortar retailers on a more level playing field, and would help to still the outcry over unfair trade practices to an extent.

Overall, this is positive for the retail industry; more rational behavior will now prevail in terms of market trade practices, and mounting of losses by most e-commerce companies will be curtailed. Online sales may reduce as deep discounts disappear, although losses will also be capped.

If we look at the West, ecommerce and brick-and-mortar players coexist happily, and this dynamic can definitely reflect on the Indian terrain as well. With e-commerce in India still at the nascent stage, the base being low even now and the growth rate very high, there is enough scope for both ecommerce and brick-and-mortar retail to flourish.

Source: PropertyatNeoDevelopers.Wordpress.Com

Soon, property registration only after proper verification

In a bid to protect buyers and curb rising incidents of property fraud in Noida and Greater Noida, the UP government plans to make verification of a property mandatory before its registration by the stamp and registry department. While it's not clear whose job will it be to verify properties, both the Noida Authority and the department are saying that their role is limited.

Talking to TOI, chief secretary Alok Ranjan said a mechanism will soon be implemented to prevent property frauds in the twin cities, particularly on the beds of Yamuna and Hindon. "I have asked the concerned authorities to take stringent action in case of violations and keep an eye on further constructions after a land is freed of encroachments. Action taken by the authorities will also be reviewed regularly," Ranjan said.

According to a recent survey conducted by the Noida Authority, around 2,500 government- notified lands along the Noida-Greater Noida expressway are illegally occupied. Illegal colonies also continue to thrive in Sarfabad near Sector 74, sectors 150, 151, 135 and 127 and in Nalgarh, Jhatta and Moiyapur villages. Besides encroachment of plots on river beds, several green belts in Noida and Greater Noida are also illegally occupied and sold cheap, impacting the region's ecological balance.

Thousands of acres of fertile land in the floodplains of the Hindon in the twin cities - an ecologically sensitive zone - have also been usurped and sold illegally by the land mafia.

Explaining that their role is limited and it's the state government's job to verify properties, a senior Noida Authority official said, "The Noida and Greater Noida authorites can take action only if a land is notified by them. Lands on the river bed are owned by farmers and only government can take any action."

"After examining its legal among other implications, we have chalked out a mechanism. We have sent a proposal to the state government and are expecting it gets approval soon," the official added.

The stamp and registry department meanwhile said there was not enough clarity which agency was empowered to verify the legality of every property. "The department cannot verify the legality of each and every property, such as group housing flats in Noida for which lands are allotted by the authority to developers on lease. In such cases, the original owner is Noida Authority and without its clearance, we can't register them. In case of plots on river beds, it's not always possible to physically go there or verify land title and legality," said S K Singh, AIG (stamps and registration).

Source: PropertyatNeoDevelopers.Wordpress.Com

Neo Square – A Commercial Project at Dwarka Expressway, Gurgaon

Neo Square – A Neo Developers’ Premier Commercial Project @ Sector 109, Dwarka Expressway, Gurgaon.

1st loss free proposal in Delhi NCR starting @ Rs. 24.60 Lacs, Limited Period Offer.

At Neo Square, prepare to be spoiled for choice – with the finest luxury brands. Offering the retail,hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

For further details kindly visit: http://www.neosquare.in/ or call us at +91 124 2881000 or email us at info@neodevelopers.com.

Neo Square – A Neo Developers’ Premier Commercial Project @ Sec 109, Dwarka Expressway, Gurgaon

At Neo Square – a commercial project in Gurgaon, prepare to be spoiled for choice – with the finest luxury brands offering the retail, hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

Welcome to a space that gives business and leisure a whole new location! As the premier development by Neo Developers, Neo Square enjoys the perfect location, perfect amenities and the perfect lifestyle avenues for the modern Indian.

Advantages:
1.) rated as a Gold-graded building by the Ministry of Environment and Forest
2.) coming up on Dwarka Expressway, an 8-lane & 150 mt wide road
3.) front facing development, with unhindered view of the Expressway
4.) instant connectivity within NCR, UIA, UER-1 & UER -2

For further details kindly visit www.neosquare.in or call us at +91 124 2881000 or email us at info@neodevelopers.com.

Neo Square – A Commercial Project at Dwarka Expressway

Neo Square – A Neo Developers’ Premier Project, a commercial project @ Sector 109, Dwarka Expressway, Gurgaon.

1st loss free proposal in Delhi NCR starting @ Rs. 24.60 Lacs, Limited Period Offer.

At Neo Square, prepare to be spoiled for choice – with the finest luxury brands. Offering the retail,hyper market, entertainment, cinema & service apartments and relaxing open terraces. The retail space is designed unlike a typical mall but as an multi use marketplace.

For further details kindly visit: http://www.neosquare.in/ or call us at +91 124 2881000 or email us at info@neodevelopers.com