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Posts Tagged ‘rising prices’

Contact Civic Agencies Before Buying An Apartment

Thursday, August 13th, 2009

There are chances of sellers producing fake certificates

Recession has opened opportunity for people seeking home or apartment at affordable price. Though real estate business hit by recession, it manage to get demand from property buyers and investors in short period. There are chances of sellers producing fake certificates, hence, check the authenticity of property before you buy them.

The hassle in purchasing unauthorized properties is that there are always chances of the property being demolished or heavy penalties being levied to regularize it. Check the details and authenticity of the property with civic agencies before buying the property. Layouts are indeed springing up on plots measuring up to three acres in places like Kengeri, Whitefield, Ulsoor and Sarjapura Road.

People should ask for no-objection certificates (NOCs) issued by civic agencies like the Bangalore Development Authority (BDA) and Bruhat Bangalore Mahanagara Palike (BBMP) before purchasing a property. Buyers can check lists of unauthorized properties on BDA, BMRDA and BIAPPA websites. The BDA website (www.bdabangalore.org) had listed 127 illegal layouts as in 2007 with their geographic location and details of builders.

Last year, BDA had cautioned people against purchasing properties in European township as it was unauthorized. People wanting to buy property can contact BDA at 080 23443206/ 23340258 for more details before taking a decision.

Links

BDA Approved Layout

Bruhat Bangalore Mahanagara Palike (BBMP)

Guidelines for property buying

Watch out-Home dreams can sour

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Changing Realty Market

Friday, July 31st, 2009

Realty sector is one of the fast developing sectors or industries. Till early 1990, apartment in the city were a rarity. It was believed that apartment is only a home fortunate for the rich and famous. Local residents would prefer independent house even if they are small.

Most of the city now dwells in high-rise or apartment building. During the peak years, anywhere between 3,500 and 4,000 apartment units were sold in the city every month. Now only language home buyers speak is BHK (Bedroom, Hall and Kitchen). Property or apartment comes in all varieties from 1-BHK to 5-BHK. The residential market in the city predominantly catered to the Rs 30 lakh to Rs 70 lakh market segment. There have been apartments in the city, which have been sold for Rs 17 crore.

Now, there is a new residential market emerging — affordable homes and nano homes. Housing units costing between Rs 10 lakh to Rs 25 lakh fall into the affordable home bracket, and housing units costing between Rs 4 lakh to Rs 10 lakh are in the nano home market. The demand for housing has increased tremendously in recent time. Professionals in field of teaching, medicine and youngster in IT sector invest in realty for long term benefits.

One could probably attribute this fact to the growth in the number of developers in the city. From just having a handful of developers, who were mostly landowners in 1980s, today Bangalore has over 300 developers of all hues.

A Confident project in the Rs 12 lakh to Rs 17 lakh bracket launched two weeks ago on Sarjapur Road is said to have received 1,500 calls on the day of the launch, and 50 bookings in three days.

Links to Refer:

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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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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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