Monthly Archives: August 2009

Update yourself with recent realty trends

Residential property
Real estate is known as growing industry. That is why, change is the only constant thing or I must say that the change is the only predictable thing for this industry. We got the know the prediction that real estate will be on peak for residential properties and in the very next week we hear that investing in commercial properties are good for future. Such trend may create dilemma for the prospective buyers and investors.
The best way to update yourself with recent and upcoming trend is to keep your eyes on reliable websites. Information technology is playing very important role in providing information on time, which is needed before taking investment decision.

TDI invests for budget homes

Real estate
TDI is planning to invest one thousand crore rupees to build low-priced homes in NCR in the next three years.
TDI managing director Kamal Taneja said, “The demand for homes is coming back slowly”. TDI recently launched 350 residential units in Kundli and asserts to have sold all these in just a month.
The company is now planning to launch another 350 homes over the weekend in Kundli, around 35 kilo meters from central Delhi. The 900 square feet independent floor homes will be priced between Rs 16.50-19.50 lakh. A total of 700 homes entailing an investment of around one thousand crore rupees would come up in Kundli over the next 3 years.

Can Affordable house become your dream house

Affodable House in SLO
When we think about affordable house, a picture of congested home, situated far away from the city, comes in mind. Such images are pulling the buyers away from investing money. Builders are forced to think about cost cutting without compromising buyers expectations.
Puravankara is using cost effective construction techniques like prefabricated homes. Basically, your home would be built out of a mould and then fixed on to the mainframe structure of the building. This technology could bring construction cost down by up to 30% and speed up the delivery time by up to 24 months as compared to conventional construction techniques.
Affordable housing is all about reengineering of design and optimal usage of materials, which can bring costs down by 15% to 17%. If builders use such techniques to cut the cost then affordable house will also known as Dream house. Affordable housing is not about compromising on quality and comforts.

Real estate rentals come down

Commercial real estate
The trend of Delhi/ NCR shows a huge fall in commercial real estate rentals. It is well known that companies are moving their offices from gurgaon to other areas of NCR because of the high rental costs there. Most of the commercial areas in delhi are offering fully furnished office spaces at much lower cost. This trend has made a tremendous change in gurgaon commercial rental market. However, a clear scenario will be visible in near future but the change is on its way.

I think companies are doing dual cost cutting by moving their offices to other areas. First cost cutting is clear to everyone that is by reduction in rental cost. Second one is bit indirect. As it is known that gurgaon is well known commercial area. Every company provides conveyance facility to their employees because most of the employees come from other areas. If company shifts, the transportation cost will definitely reduce.

Two million affordable houses required

Real estate-affordable housing
Affordable housing is the only solution for the middle income indians. Most of the people are in search of affordable homes in metros particularly in delhi/ ncr, bangalore, chennai and pune. According to the report by Knight Frank Research Households with an annual income between Rs 3 lakh and Rs 10 lakh in Mumbai, NCR, Chennai, Bangalore, Hyderabad, Kolkata and Pune will need 1.65 billion square feet of space in coming couple of year. This trend may help developers to launch affordable house projects. But to make their projects more feasible, developers should think that their projects should not be in to far fringes area. It should be properly connected to the city and easy transportation should be available to the main places of the city specially the railway stations and airport.

Gurgaon lose its position of the biggest real estate rental

Gurgaon used to be the preferred place for office rental. During the last couple of months, office rental increased tremendously. This led many companies to think about moving their offices to other cities. Even the lock-in period has failed to stop the companies to shift. Companies are also getting fully furnished offices at almost half the rates compared to what they were paying. Due to such trend, the demand for furnished office space is on the rise in Delhi as well as in all the major towns of the country. Companies prefer to start their office in furnished offices rather than starting them in bare commercial place.

Real Estate of New generation

Some years ago, real estate was not supposed to be an industry. During property dealing, a fear always came in mind of getting deceived. It was supposed to be the cup of tea for  clever brokers and mediators.
These days, Real estate has changed into a fair and transparent industry. Lots of choices and information of all kind are available to everyone. Techies and non-techies as well use websites for property dealings. There is a healthy competition between websites to enlist more and more new projects with much more information and that helps the people to get right information.
If we talk about the real estate information availability, real estate investment strategy and recent real estate news availability, these are on peak these days.
Real estate industry has grown up in Tier I cities like Delhi, Bangalore, Chennai and in Tier-II and Tier-III cities as well.

Slump in retail rentals

As per CBRE, New Delhi witnessed a decline in retail rentals of 25% and ranked 69th in rentals among the list of major cities across the world during the Q1 of this year.

Demand for retail space has decreased in most markets across the world as consumers cut back on spending and unemployment continues to rise in many countries. New Delhi in India saw a 25% decline in last 6 months.

Upward move in commercial realty

Real estate
The commercial real estate market is slowly reviving as higher government incomes and an improving economy are prompting customers to invest. Developers say that there are more enquiries from investors.

Many developers, instead of selling their properties, are signing rental deals. In one recent deal, global consultant KPMG signed a deal with Lodha Developers for renting out a 130,000 square feet property at Mahalaxmi in central Mumbai, for a monthly rental of Rs 160 per square feet.

The company has 5commercial projects in Mumbai, in areas such as Parel, Worli and Thane. Recently, Lodha also bid Rs 710 crore for NTC’s 10.3-acre Finlay Mill land in central Mumbai.

Similarly, in a recent transaction in the commercial property space, investor C Sivasankaran acquired a 66% stake in a commercial property SPV from DLF for Rs 310 crore. Akruti City is the other investor in the SPV.