Remember the basics of property buying

Have you evaluated your requirements? It is very important for a buyer to have a clear head in terms of his/ her requirement. Ashwini Bhardwaj, a local real estate agent in Delhi says, “Many a times, buyers look for a king-sized apartment. In some cases, the requirements are that of big garden, modular kitchen, calm locality, affordable budget, and the list goes on. It is extremely significant to ascertain their needs and then start looking for a home.” You must be clear about the size, type and the kind of apartment you are looking forward to before investing.

New or Resale: Another significant factor is to decide and know whether investing in new or resale property will be beneficial for you. Take time to analyze the worth of both new and re-sale property based on your needs and lifestyle.

Resale properties are priced less in comparison to new properties. Sometimes they are priced the same. Until and unless it is a property under construction with upcoming social infrastructure.

Amenities: Buyers should consider the livability factor of a particular locality, prior to making an investment. It’s not only the nearby schools, hospitals, malls and grocery stores that help make a decision. Rather, the amenities and facilities available within the residential housing project matters. For children and senior citizens amenities such as medical center, children play area, swimming pool, and a clubhouse, among others, should be within the residential complex so that they don’t have to venture out to play and socialise, respectively.

Location! Location! Location! = Right location: Selecting the right location is one of the most complicated aspects of property buying. Every buyer has their own set of preferences like distance to work, school, malls, bus stops, metro station, etc. It is extremely essential that the area is well-connected to other parts of the city. As a buyer, you need to identify the right location that match well with your needs.

Infrastructure: The place you are looking forward to invest in should be equipped or must be in close proximity to established schools, healthcare facilities, parks, public transport, grocery stores and others. Whether an end-user or investor, surrounding infrastructure matters, as it sets the livability factor of the locality.

Self help tips buy property developer’s credentials: Prior to making an investment, it is extremely important for you to do a proper check of the property market and the reputation of the developer. The check must include market presence of the developer, status on the past completed projects, credibility on project delivery and reviews of the past buyers. It will help you in getting an idea about the capability of the developer as well as his construction capability/quality.

Explore Options: Do not stick with one option. Go explore various types of housing options under different brand names. This will help you get a better understanding of the market to make the best property decision.

Check for project approvals: Before putting your hard-earned money in a residential housing project, it is important that you check and enquire about the builder’s credibility. Also check for project approvals. As a buyer, you have all the right to demand documents associated with approvals procured from the local authorities.

Know the hidden costs: Hidden costs are one such expenditure that may take many home buyers by surprise. These hidden costs often escalate the total cost and make it very difficult for the person to handle the expenses. It may include interior cost, maintenance deposit, parking space cost, registration cost, among others. So, it is smarter to be aware of these costs and be ready for this additional expenditure.

Legal Issues: Property transaction comes along with legalities which is sometimes very difficult to understand. Legal experts can help you with legal issue titles such as No-objection certificate, transferable title, record of right and title, stamp duty charges, tax, and many more.

Source: PropertyatNeoDevelopers.Wordpress.Com

Sharp dip in new residential projects

The first quarter of calendar year 2015 has seen the lowest number of real estate project launches over a two-year period, a recent report released by real estate consultancy Cushman & Wakefield (C&W) has said.

With a total 24,700 units residential units launched, the decline was over 50% compared to those in the same period last year. The decline comes on the back of less-than-expected sales in the residential sector, due to which developers are holding back on new launches and instead focusing on completing their existing projects, the report said.

New Regulations:

Also, with a few key cities planning to roll out new development plan (DP), developers are withholding new projects till the new regulations come into effect, it added.

Shveta Jain, Executive Director, Transaction Services (Residential), C&W, said: “Input costs including those towards statutory approvals, etc, from the State government, cost of land, land development have been rising. In addition, whilst the market sentiments are positive and the enquiries have increased, conversion of interest to sale is low.”

Among new unit launches during the first quarter, only the high-end segment registered a y-o-y growth of 26%. While all other segments have seen considerable decline, affordable housing segment units have reduced significantly by over 80%. Developers are inclined towards the high-end segment where profit margins are typically higher, as builders look to offset increasing land and development costs.

According to the report, Hyderabad saw a massive surge in high-end segment launches that rose to 3,300 units of which about 98% were in the north-west quadrant of the city, mainly Madhapur and Gachibowli, where corporates are increasingly looking to set up offices.

As corporates move in, residential developers expect senior management of firms to shift there, driving the demand for high-end residences over the next few years.

Bengaluru witnessed a y-o-y decline of 76% in unit launches with nearly 4,100 units launched during the first quarter of 2015.

Cautious Approach:

Due to cautious investing attitude, the absorption rate here declined leading to a lot of unsold inventory and thereby a restrained supply. However, almost 41% of the total units were launched in the south-east submarket, primarily along Sarjapur Road and Hosur Road and an additional 25% in the North submarket, in Yelahanka and around Kogilu.

There has also been a reduction in the average number of units per project which has declined from 287 units in Q1 2014 to 233 units per project. The average number of units per project was highest (669) in Hyderabad, followed by 567 in Mumbai. In Delhi-NCR, Kolkata and Pune, comparatively smaller projects with lesser number of units were launched in Q1 2015.

Source: PropertyatNeoDevelopers.Wordpress.Com

Affluent Buyers - Premium Housing to Gain Momentum in 2015

Even though the overall realty space was under the grip of slowdown, the higher-end segment always bucked the trend.

Driven by the fast pace of urbanization, higher disposable incomes, new offerings and greater influx of NRIs, the premium housing segment has evolved significantly over the past few years in India. So much so that even though the overall realty space remained under the grip of slowdown during this period, the higher-end segment was always seen bucking the trend.

While the residential real estate did well in 2014 in terms of absorption of right-priced properties, luxury residential real estate fared well in specific cities like Mumbai, Delhi, and Bangalore. And, according to some experts, that trend is likely to continue even in 2015.

“Selective luxury projects, backed by developers who have the delivery track record and credibility in the seven major cities, will do well in 2015. Thus, not all projects will do well as almost every developer has either launched or is in the process of launching luxury projects,“ Om Ahuja, CEO (residential services) of JLL India, said. Delivering a luxury project is not easy and requires a strong track record and excellent execution teams for timely delivery, Ahuja said. What is more, even the supply of higher end homes is likely to moderate in 2015, as developers will now stop focusing excessively on higher-end offerings.

Therefore, while smaller, yet better designed and more efficient homes, will define the residential real estate market in 2015, the supply of luxury homes will moderate to align with the slow demand dynamics for these offerings, a JLL India study said. Some industry experts, however, are still upbeat on the growth prospects for luxury housing in 2015.

Neeraj Bansal, partner (and head of real estate and construction) at KPMG, India, says that India's luxury housing market may grow at the rate of about 30-35% in the short to medium term.

"This market, which is about 5-6% of the total real estate sector, is witnessing strong interest from investors, especially in Mumbai, Delhi, Gurgaon and Bangalore. Besides, formation of a strong central government, improving consumer sentiments and attractive schemes offered by developers - like possession-linked plans, freebies, and gifts on bookings - are driving interest from domestic HNI investors as well as NRIs, which will give it a big boost going ahead", Bansal says.

A Harikesh, senior VP (marketing and sales) of Tata Housing Development Company, says: "With fast-growing urbanization and influx of global lifestyle trends, more and more affluent buyers now want their homes to reflect their financial and social standing. Demand for penthouses, for instance, has been increasing in cities like Bangalore, Delhi, Chennai, Kolkata, Mumbai, and a few others. Attributing to international flavors, housing and living concepts, Indian buyers today keep raising the bar in residential projects."

The requirements, however, may vary from hilltop residences to riverside apartments.While some are opting to live in luxury homes in the suburbs, others are definite that their homes must be `smart' or eco-friendly.

Source: PropertyatNeoDevelopers.Wordpress.Com