News & Views on Indian Real Estate

Wednesday, April 30, 2008

JP Infra to raise Rs 200 crore

Ahmedabad-based realty player JP Infrastructure Pvt Ltd (JPIPL) is in advance stages of talks with a leading PE fund to raise close to Rs 200 crore. The company is also planning to come out with an initial public offer and had appointed Cushman & Wakefield in December last year for valuation of its assets.
The realtor is aiming to divest about 10 per cent, sources said. The company will have six months to one year’s time to come out with an IPO while making way for the PE firm to exit. Meanwhile, it is planning a mega township project in Ahmedabad, retail malls in Vadodara and Surat, corporate park in Lower Parel in Mumbai.

Parsvnath Sells Off Thirty Percent Stake In Mumbai Project

Real estate firm Parsvnath Developers Ltd has sold 30 percent stake in a Mumbai project to foreign funds for 1.86 billion rupees, the company. Shares in a company hit a high of and were trading 4.57 percent higher. Parsvnath will sell 15 percent stake each in the Kurla bus station redevelopment project to Euronext-listed Yatra Capital and Saffron India Real Estate Fund-I, both promoted by Mauritius-based fund manager Saffron Asset Advisors. Yatra and Saffron have picked up the stake at land-value basis. They will also proportionately fund all future development and construction activities for the project, Parsvnath said. Future investment is estimated at 2 billion rupees and the project is to be completed in 2-½ years. The deal will help unlock value of the property and help establish a strong relationship with well-known foreign direct investment partners, Parsvnath said. Jones Lang LaSalle Meghraj was the consultant for the deal. Foreign investors have rushed to invest in India’s expanding real estate market over the last few years, attracted by easier investment rules and rising property prices, which have gone up for the fifth straight year.

Tuesday, April 29, 2008

Hilton Group Makes a Comeback

Hilton Hotels Corporation is on top gear to make a comeback in the Indian market. The Hilton Group today does not even have a single property in the country courtesy because of the fallen apart tie-up with The Oberoi Group. Now, left all alone in the burgeoning industry, Hilton is firing from all cylinders. The hospitality group is not only looking at bringing a full bouquet of hotels, better called - The Hilton Family of Hotels - to India but also partnering with more than one real estate company. The hotel group has a joint venture with real estate company DLF Limited for setting up hotels in the country called DLF-Hilton Hotels. Hilton is getting its brands, including Hilton, the upscale full service brand, Hilton Garden Inn, the mid-scale brand, and the Homewood Suites by Hilton, an extended stay hotel brand.The first DLF-Hilton hotel is expected to be ready this year at Saket in New Delhi. It will be a Garden Inn with 180 rooms, said a source. The total number of hotels planned under the DLF-Hilton alliance at present, stand at 16, comprising 3,500 rooms. These projects are in various stages of development and construction, and will come up in cities like New Delhi, Kolkata, Chennai, Trivandrum, and Chandigarh. In the next 5-7 years, the JV plans to set up 75 hotels. DLF will build the hotels and will be managed by an affiliate of Hilton Hotels Corporation in India. DLF hold 74% in the JV and Hilton the remaining.

Organized Retail and Real Estate – Booming Together

India is beginning to make news worldwide. It’s just the right time to think India. There's a new sense of confidence in Indian business. This confidence arises from the growing success of Indian enterprise in the face of competition in an increasing number of sectors. The India growth story is going stronger than ever. Favourable demographic and psychographic changes relating to India’s consumer class, international exposure, availability of quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India. Real estate consultancy Jones Lang Lasalle Meghraj has identified 50 Indian cities that are likely to witness most of the retail action over the next couple of years — both in terms of development of malls and advent of organised retailers. And Jaipur, Lucknow and Kochi find mention among cities poised for “high growth.

The world is now looking at India as the nation of the future. More significantly, India is well on its way to emerging as a first-world economy in the fields of information technology (IT), biotechnology, pharmaceuticals and the automotive sector, pushing the thrust now on to the retail sector to facilitate the creation of a new surging modern India. The real estate boom in India will not only propel the economy to sustainable heights, but will also generate employment for several millions. It is strongly expected that the growing Indian economy and growing opportunities will ensure that the foundation is laid for India's tryst with destiny and for it to be fully integrated into the world economy.

Monday, April 28, 2008

Homeowner Insurance Tips

When seeking home owners insurance, nothing is more important than your home, and all that it holds. While in the process of weeding out the best policy you must be prepared for what is to come as well as the final goal.First things first identify the cost rebuilding your home. Your home owners insurance should cover the replacement cost should you have to rebuild. You can start by determining the median for local building expenses as they apply to the size your home, the quality of construction, as well as the style. The most assured a way to identify this cost would be a crude hack a local contractor or home builder. Often for a flat fee they can identify the cost for you. While discussing your home with this contractor make clear any antique appliances moldings, or other unique building materials in your home. Another valuable step would be to contact a real estate agent or independent insurance agent to examine your home. They will be able to identify any special features you were not aware of. This will facilitate complete coverage for your home. She decided to deal with a direct marketer instead of a local agent who are better equipped to accurately report your homes details. Things such as building cabinets, antique wood, stained glass , marble inlays, as well as any unique appliances that you may have add to the cost of your home and your insurance.Another advantage to doing direct contact is identifying discounts. Once you have complete coverage for the cost of your home ask for them. Most homeowners leave the discounts on the table. If you seek you shall receive, so speak up one sure comfortable with your policy.
Good Luck!

Indian Realty driving the tourism sector high..

India, no doubt, awaits a history to be rewritten. The Economy is firing on all cylinders, entertaining more global tourists and creating jobs faster than many other emerging economies as a whole, while leaving many employers struggling for qualified people to hire. Hundreds of top global brands are going to pack thousands of square meters of retail and office space. India is has suddenly become 'the happening' place to visit. Destination India odyssey would not have been possible had the realty revolution not happened in this part of the world. Howsoever majestic the charm of a place may be, travel and tourism can not grow unless there is a required infrastructure in place. Even though the realty sector has always been an unsung hero in attracting the tourist inflow, I must say that infrastructure and tourism complement each other. Critics, no doubt, are questioning sharp run-up in prices and sustainability of the rise. And as any single market emerges as a favorite - stocks, bonds, real estate, precious metals or whatever - there is often a tendency to overdo it. In the initial phases of overvaluation, we begin to suspect it.As the stock market performance has remained tepid, investors have turned to real estate and bonds as places to put their money in. Buying bonds helps keep longer term interest rates. That reinforces demand for real estate and also contributes to rising home prices. An emerging debate at the national level concerns whether a speculative bubble is forming in the national real estate market. In my opinion, the analysts are getting unnecessarily worried.

Thursday, April 24, 2008

Indian real estate: 'enormous potential'

India has "enormous potential in all its property investment categories". Strong population growth, a large pool of qualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%.India is the prime destination for IT services outsourcing. In the coming five years, at least 55 million m² of extra office space must be completed in the premium office segment alone. Property investments in India are not risk-free. Market transparency is far behind European or US standards. It is therefore vital for foreign investors to have a professional local partner. The lack of liquidity and upward pressure of pricing remain the main concern within the market.

Understanding the Realty game

As they say, the strong will survive or, in this case, those with a solid record, excellent service, the ability to shift with the market and, frankly, those with some cash in the bank have weathered the shift.So what is the A game in real estate these days? It’s different than what it used to be. Here’s my take on the topic: The Real Estate A Game (most of this is not new)
- Full time
- Admin assistant
- Significant internet presence
- Online social networking
- Virtual tours for all listings
- Tracks expenses for client results
- Is known among local Realtors
- Has a proven track record
- Constantly studies the market
- Constantly listens to the mortgage moving target
- Adept at counseling clients through the uncertainties
- Does not work 24/7 (that Realtor will not have longevity)
- Longevity.That’s my take. Anything less is B material.

Wednesday, April 23, 2008

Sub-prime shadow on Indian real estate sector

The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???

Real Estate Investment World India 2008 to be held in Mumbai

With less than a week away, 'Real Estate Investment World India (REIW) 2008 conference will be held from April 28-30 in Mumbai. The three-day long forum will serve as a key platform to map out opportunities within India's property sector. REIW India 2008 is a world-class conference that allows industry luminaries within the Indian real estate market to meet, network and conduct business. Participants at this established platform can look to penetrate the complex and multi-faceted Indian property sector, refine their portfolio management and investment strategies while forging rewarding joint-venture partnerships.

Tuesday, April 22, 2008

Berkeley forays into realty space

I just got my hands on the news that Berkeley Group, which registered a turnover of Rs 400 crore in the last fiscal, was earlier dealing with automobiles, insurance and finance, would now be entering into the real estate business with the launch of their new subsidiary ‘Berkeley Realtech’. Initially, the company would offer only lease solutions to corporate houses but later, they will look at construction services such as construction management and interior design projects.

Residential Enclaves on the Lines of SEZs Proposed To Beat Slowdown

There is good news for all the people who have been disappointed seeing the recent hike in property prices. Since, houses have become unaffordable for a large segment of the population as prices have shot up tremendously in the past three years. The government is considering a proposal from real estate developers to set up SRZs outside the main cities. These SRZs are also proposed to be given tax benefits on the lines of SEZs. Developers say SRZs would help them build and sell affordable houses for as low as one-third of the existing price to low-income groups, although SRZs wouldn’t be limited to low-income houses alone. Availability of cheap land away from the city, and faster clearance through singlewindow will together bring down cost substantially. The government would require time to devise the modalities as tax incentives to SRZs would mean an additional burden on the exchequer. It will also require some implementation of regulation by government to ensure that the houses go to the intended people. This proposal once implemented will be a great move in up beating the slowdown and in meeting the acute housing shortage in the low-income segment.

Monday, April 21, 2008

DLF Garden City Chandigarh to come up in Panchkula

India's biggest developer is putting the final touches to its plans for their Chandigarh project. The much anticipated development will be well-located in prime Panchkula suburb to the North-East of Chandigarh city. In2Perspective predicts DLF Garden City Chandigarh will be one of the best Indian real estate investments of 2008. It is likely to be a great hit with the NRI Punjabi community whose investment in the area is growing by the day.

Investing in Indian real estate- A Profitable Deal

Real estate in India is now a safe destination for potential investors. Service apartments or Fully-furnished houses are preferred choices of long-stay executives, foreigners, Non Resident Indians and other frequent travelers to India. These properties offer all the convenience of a hotel with the privacy and comfort of home. Whether the person is a business traveler or holiday maker, looking for more than just a regular hotel room, a service apartment is the cost benefit alternative. Giving people more space, more privacy and at a cheaper rate, most of these apartments can be available either for a day or for a year.

Investing in immovable property in India is no more a tough task with difficulties due to a combination of factors. A meticulous planning at the initial investment stage can make the whole process lucid. While on the road way of making investment in this growing market, people are advised to do research online on the real estate market. Extensive research ensures that the investment has been right and in time to come and will allow a good return. Foreign resident of Indian Origin can also invest in this sector. Such investors are advised to discuss the conditions governing purchase and sale of immovable property by Non-Resident Indians and persons of Indian origin before they start their investment venture.RBI grants permission to foreign citizens of Indian origin to invest in local funds in real estate on submission of necessary applications provided such investments are for use of residence.

What makes a property HOT?

Is it the right price for the property? Perhaps this is the question that keeps on creeping in people's mind ever since they make up their mind to buy or sell a property. It is quite necessary to spot the right price for making a successful real estate transaction but it is some how difficult . Neither any rule of thumb nor a scientific technique is there to help! So, how to get a good deal? People are advised to believe their own instinct but cautiously. Some things which one should keep in mind to reach the decent levels of property-valuation and deal are:

  1. Good quality roads around and within the society add value to the property.
  2. Value depends on the profile of the location where the property is situated.
  3. Connectivity with bus depot, railway station and airport is equally important from buyer's point of view. In fact, property in vicinity to these facilities makes sound investment proposition.
  4. People avoid locations that are closer or are known as riot prone area or communally polarized.
  5. Not to mention, green surroundings, civic amenities like safe drinking water, uninterrupted power supply and systematic drainage system are the first preferences of the buyer.

As valuation of property is a process, all the above discussed factors go hand in hand with perception of quality.

Sunday, April 20, 2008

Bedroom decorating

Who doesn’t want a beautiful bedroom? One that oozes warmth, love and passion. This is the place where we spend almost 1/3 of our lives so it has to be our comfort area. The master bedroom should be a sanctuary for rest and relaxation, but for most people, it remains the most neglected room in the house.

Ready to show your bedroom a little love? So what else is required together with being welcoming and warm? How about some decorating? Not overdoing it though because then it will be overpowering. Like for instance, bedrooms should have neutral colors if you are yourself a hyper person. This will help you cool down. Conversely, if you are a clam or lethargic person, add a dash of bold colors and look at you energy levels skyrocketing! Also you could use candles as a great accent item which will add a splash of colour to any room and can add a wonderful mood altering scent to the room as well. Another way to add scent to your room is by strategically placing some pots of pot pourri around your bedroom.

Friday, April 18, 2008

Indian BPO growth next in second-rung cities

With an upsurge in realty prices in metro and talent crunch, the $11 billion Indian BPO industry is now thinking to move to the Tier II cities in the country. Many feel that movement to lower-cost cities within India is likely to result in additional 15-30% reduction in operating cost despite lower employability and higher management costs.

Sahara Group enters Kochi real estate market

The real estate arm of Sahara India has ventured into South India with the launch of its 'Sahara Grace' brand of residential complex in Kochi. This is the first project of the group in Southern India. The company also proposed to bring their other brands of real estate projects to South India. Sahara Grace, Kochi will include amenities like a clubhouse and will have facilities like swimming pool, health club, gymnasium, badminton court, billiards/snooker and Table Tennis, snack counter and kid's play area.

Wednesday, April 16, 2008

Tips for Homebuying

Buying a home can be complicated and frightening. You acquire a large debt and assume many new responsibilities. And in the back of your mind is that nagging question, “Did I get ripped off?”

I designed a list of few tips to help one make the best homebuying decision possible.

  1. Look at the purchase as an investment.
  2. Avoid short term loss. Most places have slow, steady home appreciation. You can make the most of your investment by buying in a neighborhood where home values are expected to appreciate.
  3. Use a buyer’s agent. A buyer’s agent represents the buyer and is paid by the buyer to represent their interests. If you’re not a skilled negotiator, a buyer’s agent is probably the smart choice.
  4. Choose agent wisely. Look for an agent experienced in working with buyers, with knowledge of the neighborhood you are considering and without a reputation for being “pushy.
  5. Carefully inspect the home. Learn as much as possible about evaluating the condition of a home.
  6. Watch interest rates. The lower the interest rates, the bigger mortgage a buyer can afford. An asking price may sound too high, but at a lower interest rate, you might be able to qualify for a loan and afford the payments.
  7. Study, study, study. These tips are only the beginning. You’ll need to know a lot more if you want to make wise decisions. Read articles on homebuying, financing, negotiating, home inspection, and real estate contracts.

Tuesday, April 15, 2008

Factors affecting Property Prices

We are off late witnessing Indian realty prices touching the sky. Learning to know what precedes property price increases can be challenging for any investor. There are some well-recognized factors that drive the market. I have discussed few of them below:

1. Demand & Supply- Population change is the key driver of demand. When an area becomes popular more people want to live there. Given there are fewer dwellings than interested parties, prices increase and vice-versa. The other driver is availability of land.

2. Affordability and availability of money-Affordability is the relationship between housing prices, interest rates and wages. It's the cost to the owner or investor to retain and enjoy a property. When prices, interest rates and wages reach a ceiling in a particular area, residents often realise they can have a better lifestyle elsewhere.

3. Infrastructure-Infrastructure is always a major driver for price growth when it increases the attractiveness and amenities of an area. The benefits of infrastructure are generally recognized after the changes.

4. The resources boom-The demand for skilled and unskilled workers is increasing day by day.And with an increase in their salary scale, these workers seek to improve their lifestyle by buying bigger and better homes, or maybe an investment property or two.

Put a number of these drivers together and you have an extremely good understanding of what's going to drive price growth. Having identified these areas, careful homework may reveal good cash-flow returns as well.

Monday, April 14, 2008

New Projects coming up in Hyderabad

Hyderabad real estate is heating up. First it was the new international airport in Shamshabad earlier this year. And now country’s second largest realty firm, Unitech has invested Rs 9000 crore for two projects it will be developing over a time span of 8 years in Hyderabad. With all these recent developments taking place in Hyderabad it seems it will soon take over the metros like Delhi,Mumbai in the realty business.

Thursday, April 10, 2008

Choosing a Right Realtor

Home is where the heart is. If you're like most people, your home is also your single largest investment. It’s not only a monetary investment; you trust this home to hold up through the years, to be safe. Take the time to examine your priorities and find the right real-estate agent.

The first step in choosing a good realtor is finding realtors in your area. The best way to find a realtor in your area is through referrals. Ask your friends, family, or colleagues who’ve bought or sold a home for good recommendations. If you can’t get any referrals, check with your local realtors association. Once you have a few options for realtors, you should set up interviews with each of them.

Before the interview, write down the questions you want to ask them so you know you don’t forget anything. While the questions asked depend on your preferences, it’s always good to find out if they are a licensed realtor, how much experience they have, and how familiar they are with the neighborhoods you want to live in. You should also find out their availability. If they have a lot of clients, they may take so much time getting to you about a house on the market that you lose the chance to bid on your dream home. You should also make sure the price range your realtor specializes in matches your own.

Above all else, you want to find a realtor that you are comfortable with and who you feel understands your needs. You want someone who is working in your best interest. Good luck and happy house hunting.

Indian Realty sector on a high

India is being acknowledged as one of the fastest growing economies in the world and in this current economic scenario, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. And this high growth curve in the real estate sector owes some credit to a booming economy and liberalized Foreign Direct Investments (FDI) regime in the real estate sector. Acknowledging the growth of Indian economy in general and its real estate sector in particular many people are investing in it. Property Tech, a subsidiary of Tech Group, has purchased two properties in India worth around Dh110 million as part of its plan to tap into new promising markets.

Sonepat real estate

Everyday we get to hear some new projects and developments coming up in the residential and commercial segments of Indian real estate sector. One of the leading real estate developers of India- Parsvnath Developers Ltd, has announced their new project coming up in Sonepat. It will cater to the demand of buyers who are on the lookout for their dream house at an affordable price close to Delhi.

Investing in property-Smart Move

If I were an employee, I would certainly be thinking about retirement. Worrying about retirement and social security has become an increasing concern for many. The stock market, 401 K, insurance, and good old fashion savings are all means people take to secure their financial freedom when it comes to the 65 plus years. An ideal investment strategy is one that comes with low risks and high returns. Good old fashion savings will not give you high returns, and stock market games are not often associated with low risks. Investing in land is one that that comes with both low risks and high returns if you play your cards right and you do not need to be independently wealthy to get into this industry. Investing in land is one of the smartest things anyone can do to increase their net worth and financial freedom. Investors with small or large capitals are smart to invest in land for a variety of reasons. Land property is an investment that offers consistent returns that are safer than other investments, and always appreciate in value.

Knowing how and when to act with land investments can be done with the aid of a realtor in the area you are interested in. Avoid fresher’s who might actually be able to get you the best deals, but will inspire lesser confidence. Realtors know land the way a banker knows money, and they will always work with you to ensure your dollar is maximized. Now is the time to start thinking about it. Do not get into land investment without doing deep homework.

Wednesday, April 09, 2008

Owing a House – A distant dream?

The dream of having one’s own roof over one’s head is a universal one. India is no different. Almost all of us – including me – have a dream of owning our own houses. But in the present real estate boom coupled with inflation, how many among us are actually making our dream come true? In my last blog, there were a few comments on how the rich are getting richer and the common man is left out of this phenomenal real estate growth of the country.

On a recently conducted online survey carried out by a property site, it was revealed that more than half of those surveyed are looking for a 2-bedroom home within 5-10 lakhs. It will be logical to say this largely reflects the dreams and aspirations of the common man – you, me and other people like us including the service class, businessmen, lawyers, professors, house wives and young professionals.

However, going by the present trend, the Rs 5-10 lakh bracket of affordable houses are confined to the extreme suburbs or peripheries of large and small cities. Majority of the sample in the survey are from metros, where a 2 bedroom house is at least three to five times more than the affordable range! Tier II and Tier III cities too are fast catching up – making it even more difficult for the common man.

It was on news that the Ministry of Housing and Urban Poverty Alleviation has commissioned the Reserve Bank of India team to find out more about affordable housing. I sincerely hope that they realize the folly of skewed growth and make the necessary correction.

Tuesday, April 08, 2008

Count those Discounts!

You must have noticed the various kinds of discounts that many developers are offering to persuade buyers. Most of them are just marketing gimmicks. In actual there is no reduction in the real value of the flat. There may be various expenses that the buyer is forced to incur during the possession of such discounted properties.
In Thane, a developer was apparently offering a car with each sale. The promotions also claimed home loan interest rates at 8 per cent through two cooperative banks. The customers later found that the car was a bumper prize. Worse, the 8 per cent interest rate was only for the first few months!
No Developer offers discount below the base cost, which includes the cost of land and construction. However, developers do offer value-additions and incentives to prospective buyers to speed up the willingness to buy. When looked at closely, these incentives do not have any significant monetary value. It’s observed in a falling real estate market, small developers start with such practices before going for distress sale. It’s also noticed that most of these practices are adopted by Dubai-based developers. For luxury apartments in the Middle East, developers tie up with car companies or offer other such discounts. Most of the products bundled with the house are either phased out or in the process being phased out.
Such offers are from smaller realtors only. The bigger ones have sufficient holding power to await the natural progression of the property cycle.According to me a simple rate cut, perhaps, makes more sense than goodies.

Fraud rate alarmingly high rate in the realty sector

Booming markets invariably bring with it unsavory people, who try to make some quick money through dubious methods. This is more or less the state of India’s property market at this point of time. There are developers who sell the same piece of land to number of customers and there are those who sell land without clear titles or mandatory permissions from the authorities.
There are many fly-by-night operators and others in the unorganized sector who indulges in such fraud. So what should a buyer do? I would suggest buyers to investigate the background of any developer thoroughly. Believe me, if you are not careful, your life’s savings could be at risk.

Monday, April 07, 2008

Flying High - The new international Hyderabad Airport

Built at a whopping cost of Rs 2,500 crore, the new International Airport will place Hyderabad in the league as Hong Kong, Singapore, and Kuala Lumpur. Spread across 5,000 acres of land, the airport sports the longest runway in South East Asia and is definitely the first truly world-class airport that India can boast of. The high-capacity airport will make Hyderabad a major cargo hub in Asia.
The real estate markets of Hyderabad are expected to take cue from this remarkable development. Prices of commercial and residential properties in Shamshabad, where the new airport is situated, started to escalate way back from 2003-04, when GMR Limited was given the contract of developing the airport. The ‘aerotropolis’ concept further facilitates hotels, healthcare centre’s, residential campuses, and retail outlets right inside the airport zone - a concept currently operational only in top cities like Seoul, Munich and Hong Kong.
The brand image of Hyderabad is witnessing a major makeover.

The Real Investor

The first golden rule of investing is to diversify your portfolio. Even though high paying categories are always lucrative, the risk factors involved are even higher. Direct commodity investment is advisable only for market savvy investors, who keep a close tab on the market. Stocks, bonds etc should be a part of your saving instruments and all of it. Commodity oriented mutual funds and other such indirect investments though are less risky, they are not exactly what we term as ‘user friendly’.

So what else is there?

For many, real estate investment is an essential part of a well-rounded portfolio. Buying and selling real property, or even long-term owning, has proven to be one of the most profitable and least risky investments available.

When it comes to investing in real estates, you will find a wide array of options like property oriented mutual funds, REIT (Real Estate Investment Trusts), and many other types of mortgage backed securities.

However, one should keep in mind that they are not "zero risk" affairs - there's no such thing in investing! Prices fluctuate, relative to other goods and investment channels. But if you educate yourself with basic market laws and have sufficient cash and other liquid assets to be able to hold until the time to sell is right, you'll never have any reason to regret in making real estate investments a major portion of your portfolio.

Thursday, April 03, 2008

Noida is heating it up

Over a long period of time Noida has amazed everyone around the neighborhood to look at this place with flabbergasted expressions. Truly, since 1976 the Noida authority has left no stone unturned and let the entire nation look at it with spectacled eyes. Recently Asia’s biggest real estate deal also took place in Noida. Keeping the growth of Noida in mind many developers are eyeing the city for their future projects. One of the latest proposals being made by the Delhi based real estate developer Omaxe .It has decided to start a high end project with luxury apartments and penthouses- Omaxe twin towers, which will be one of the tallest buildings in the NCR region. Apart from building luxury apartments, the company also plans to construct 'houses for the common man' through their ''Ek Awaas Sabke Paas'' scheme.

Mumbai Real Estate-Overview & Trends

So you are attempting to understand the real estate position in Mumbai, but you are not clear in your mind the market picture of real estate in massive Mumbai? To help you, here is a preview of real estate market in Mumbai. Mumbai is going to be the town of the potential. According to the facts & figures, the real estate sector is growing at a blistering 30 per cent annually. Mumbai real estate is among the most expensive in the world - more than that of Tokyo or New York - and there is no shortage of those who can afford to pay. Some of the few successfully completed real estate projects in Mumbai are new airport at Navi Mumbai, New Suburban Trains Project, Bandra-Worli Sealink Project, Santacruz-Chembur Link Project, De -congestion of Prime CBD areas, Current Transportation systems, New Bridges Project, Sprawling Townships Project, Shopping Malls, IT Software Parks, Office complexes and development of Property investment proposition. Now, the city is undergoing redevelopment and restructuring. Various big real estate developers & constructors like DLF, Akruti, Parasvnath are bidding for the redevelopment of Dharavi which is Asia’s biggest slum and Mumbai’s biggest mess. Another interesting trend taking place in Mumbai is the remodeling of commercial spaces to retail spaces. With the property values of commercial spaces touching the sky, developers find it difficult to sell their commercial/office property. Hence, many of them are positioning their property as retail space in a hope to find more takers. Mumbai property market is a case in point. This market needs to be studied carefully as most the property trends arise from this market.

Tuesday, April 01, 2008

Reduction in housing loan rates

There is good news for all home loan consumers in India. Given the boom in real estate in India, housing/home loan has become the most popular form of loan. Various banks have started working in the direction to ease the burden on the home loan consumers. Two public sector banks, Allahabad Bank and Central Bank of India, have decided to reduce interest rates on housing loans by 25 basis points. The above reduction will be effective from April one, on all fresh sanctions. Various other banks have started thinking on this line to boost the demand in housing loan sector, particularly among small and medium category borrowers. Considering the current inflation in property rates this is only a small concession.