Posts Tagged ‘apartment prices’

Bangalore Shifts into one BHK homes

Tuesday, November 24th, 2009

Many developers in the city are looking at building— 1-BHK ranging between 500 sqft and 800 sqft with a price tag of around Rs 10 lakh to Rs 15 lakh. Electronic City, Whitefield, Marathahalli and Bannerghatta Road are the current hotspots for 1-BHK and studio apartments. Brigade Group, which just announced the launch of its value homes, says that 30% to 40% of the 10,000 units it’s expected to build would comprise 1-BHK units.

Bangalore city that rarely saw a 1-bedroom hall kitchen (BHK) apartment or a studio apartment could soon have a plethora of them. Most of the handful of 1-BHK apartments around are actually 2-BHK apartments converted into 1-BHK ones, sporting a large drawing room. Pricewise, these units command the same rates as a 2-BHK.

The trend of buyers wanting 1-BHK units and developers acceding to their wishes hinges on affordability. 1-BHK ranging between 500 sqft and 800 sqft with a price tag of around Rs 10 lakh to Rs 15 lakh. This could particularly benefit young professionals, newly-wed couples, and senior citizens.

Lease out as serviced apartment or rent out as studio apartment 1-BHK units will also help rental market. For a serviced apartment model, the per night tariff would be between Rs 2,500 to Rs 3,000, while on a monthly basis the rental could start from Rs 10,000.

Akruti Developers has launched a 150-unit fully-furnished studio apartment project in Whitefield. The units range between 650 sqft and 800 sqft in size and come fully loaded with AC, TV, and furniture including a coffee maker. According to Nikhil Jadhav, MD, Akruti Developers, “We are offering this product as an investment option to buyers whereby they can either lease them out as serviced apartments or give them on rent as studio apartments.”

Links to refer

bangalore shifts into 1 bhk homes

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Property Price in India Are Set To Rise

Friday, June 19th, 2009

Real estate market in India has seen decline in property price for several month which attracted home buyers and investors towards real estate industry. In last few months there was a rise in demand for property and market trend favored buyers by cut down in registration cost, lowering rate of interest for home loans, builders offering property at attractive price.

That is stage is over and now property buyers can see rise in price of property. For builders liquidity position has eased, the cash flows have improved and they have cleared off existing inventories. The rise in property price depends on market trend and builders. If there is more demand for property, builders will increase the price of property. When checking the market trend and builders history, there was no increase in price for last 15-18 months. Builders had lowered prices when they were in trouble, now there is a good possibility of rise in price.

Builders regained confidence and enthusiasm that stable government will lead to improvement in economic condition. Builders can raise fund either by loans or through equity or QIP. The housing companies have seen growth pick up from the end of February. The growth for LIC housing Finance is mostly from retail finance.

In short, people cannot expect a further fall in property price. Builders will raise property price depending or market trend and demand for property. Buyers can get best from current market price where banks offer loans at affordable rates.

Reference:

The Hindu Business Line

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Investing In Real Estate Business

Tuesday, June 9th, 2009

In India real estate business is one of the successful industries which offer good deal for both buyers and seller. In real estate market all buyers are not buying property for long-term purpose. They hold property for short-term and sell when they get marginal or good profit on the property. These profits become good income at the end of year.

To succeed in real estate business you need to know basic market trend and some experience in property transfer. Patience is very important in real estate business. You may some times encounter failure or loss in one or more transaction but you need to stick in the business to gain more.

While investing in real estate business, you need to know laws relating to property, taxation, updates of financial and banking rules etc. This will help you to know the market trend and the right moves you need to take, whether to buy or sell the property. For example, now you can see cut down in property rate, lower interest rate for home loan, cut down of stamp duty and so on. This indicates that this is buyer market and it is right time to buy property for selling in future.

You need to have good relation with people who are investing in real estate business. A good networking helps you to get best deal and more opportunity to invest and transfer the property at profitable rate. Real estate business needs hard work and smart investment to achieve success. It may take some years to earn big profit but you can get marginal profit on your transaction and learn new experience in each transaction.

Negotiation skill is important for surviving in this field. You need to negotiate well when buying a property and when selling the property you need to sell them for marginal profit. You need to know when to walk away from the bad deal.

Real estate business offers good return if you know the trend and idea of transferring the property. Patience is very important for surviving the failure in real estate business. You need to know laws relating to property, banking rules and Income tax laws. Good negotiation skill is tool for success and walk away from bad deal is wise than investing or suffering the loss. Make good market research before you invest or step into real estate business.

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Rising Property Prices

Monday, April 13th, 2009

Rising Property Prices

The structural adjustment program of the early 1990s initiated the liberalization of the Indian economy. We find the roots of the high appreciation rates in India’s property market in the reduction of interest rates that the NDA Government instituted after 2001. In early 2004, home loan rates sank to a record low of 7.5% and this paved the way for the alarming spiking that typified the country’s property rates in many Indian cities. This encouraged most of home buyers to owe a own property as the borrowing rates is amenable by buyers.

According to Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj, this resulted in a huge demand for quality real estate all over the country post 2003. After March 2005, Indian real estate rates displayed a seemingly unstoppable upward curve. This is directly related to the opening up of FDI in real estate. The market then proceeded to expand at an unbelievable rate of more than 100 per cent, right until the current slowdown, which is bringing many a location and its overenthusiastic rates to their knees. Many overheated pockets have seen corrections of between 12-25%, and it is still too early to exhale yet. Many smaller investors, small in stakes but large in numbers, are pulling out as fast as they can offload their holdings. Those with broader vision and capital bases are hanging on, hoping to see some glimmer of the erstwhile glory associated to Indian real estate.

The ongoing slowdown in the Indian property market following the crisis, is bringing many a location and its overenthusiastic rates to their knees

Is the joy-ride over? For now, it would certainly seem to be. Nevertheless, in India as of today, the dominant trend is still a huge demand-supply mismatch in the housing sector. This would indicate that property prices will rise again in the foreseeable future. However, the finance ministry will first have to finish stabilizing the market artificially - until then, interest rates and negative cash flows will certainly put downward pressure on property prices, says Grover.

However, the roller coaster ride will never have the same exhilarating twists and turns again. The onus from now on will be on affordable housing in the residential sector, and sustainable buildings in the office sector. The present market vagaries have force-fed transparency into Indian real estate. The sector is gaining maturity. Increasing transparency via the introduction of sector regulators, professionalism and international best practices in real estate can be seen over the next decade. Unethical practices will be phased out, and smaller operators will merge into larger, more sustainable entities. All this will be to the benefit of the consumer.

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