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DEVELOPERS OFTEN THROW IN SOME ADDITIONAL BENEFITS TO ENCOURAGE PEOPLE TO BUY PROPERTY AT A PARTICULAR STAGE

 

 

There are a lot of offers that are made by developers to the investors or to those who want to buy some property. These are usually seen during festive times and hence it becomes very important to understand the nature of the benefit and whether they actually want to make use of the situation. There are various ways in which this situation can be achieved.

 

Interest discount

 

One of the best ways in which a property will be sold is by giving a discount to the buyer in terms of the interest that they will pay on the loan that they have taken for buying the property Most individuals take a loan for the purchase of a property and they will be made an offer whereby the rate of interest on the loan is reduced for a specific time period so that the individual is able to pay a lower amount when it comes to the loan repayment figure. This is expected to encourage people to go in for buying at this current stage.

 

Less cost

 

There can be some additional benefits that the developer will throw in so that a person is encouraged to buy the property at this particular stage. The benefits can be extremely varied and would range from the availability of several additional services for the individual to enjoy in their new house to the fact that they might even get far more than what they would have normally received by paying the amount that they are actually doing. This can be reduced charges for parking or it can be additional services in the house. These benefits would vary from developer to developer and the individual will have to make a correct evaluation of the offer that is made to them.

 

Freebies

 

There are often several freebies that are thrown in when a developer would like to increase sales and this can include free membership at some local club or some other benefit. Some developers might provide several types of furniture in the house or there might be some add-ons for the individual without him having to pay more. There are several variants that can be adopted when freebies are thrown in and the individual will have to be alert about the kind of benefits he is receiving and whether these are actually worth going in for.

 

Discounts

 

The last thing that developers often offer is discount in the price of the property. This is used as a last resort and creates a situation that is in favor of the buyer. It gives the buyer a good value for money by brining down the cost. In most cases the discount is available for a few days within which the prospective buyer has to take a decision.

 

FACING REALTY

 

There are a lot of offers in the festive season

One common offer is for a reduced rate of interest

There are also some cost reductions for buyers

Free gifts are also thrown in to sweeten the deal

The last resort is discounts in the actual rate sales

 

Courtesy: HT dtd:- 4^th Feb 2008

Tags: real, estate, india

LIC TO CONSOLIDATE REAL ESTATE PORTFOLIO

                  

Life Insurance Corporation of India (LIC), the largest insurance firm of the country revealed its plans to consolidate its real estate portfolio across the country. In an advertisement the company said that Expression of interest is being invited from professional consultancy organizations for consolidating our real estate portfolio.

The consultancy involves feasibility study, including techno-economic viability assessment of expected growth potential, and investment opportunities in sectors such as commercial, housing and retail for fresh acquisition, it said.

LIC is also planning to develop existing vacant plots and redevelop old properties besides making fresh acquisitions of land. The Insurance Firm is interested in acquiring properties in tier I and tier II cities for own use and for investment purposes. For development of unencumbered plots at places such as Kolkata, Jaipur, Chennai,

Kanpur

and Ahmedabad, some new locations might be added in future, the advertisement said. LIC had ventured into real estate business in 2005, in a bid to get more returns from its properties.

The last date for submission of bids is 25 January. LIC, which was formed in 1956 with the Union government contributing the capital, had valuation surplus of Rs15,127 crore for the year ended 2006-07. The state-run insurer has more than 2,040 branches and offices in

Fiji

,

Mauritius

and the

UK

.

SKY- ROCKETING- INDIAN REAL ESTATE

                     

The year 2007 has been a record- breaking year for the Indian Real Estate Industry. The entire year witnessed immense boom in the sector overcoming all the predictions of possible realty doom.

Some of the stupendous real estate deals of the year included the sale of a 7,107 sq metre plot at the Bandra Kurla Complex belonging to the Mumbai Metropolitan Region Development Authority (MMRDA) for an astounding Rs 5.04 lakh per sqm, the highest bid for land anywhere in the country.

Also an apartment at Nariman Point attracting a Rs 97,842 per sq ft bid from a UK-based NRI proved to be an all-time high of sorts, besides reinforcing the popular sentiment that Mumbai holds the beacon on the real estate front.

The 9,178-acre township project ‘New Bangalore City’ at Bidadi, which realty major DLF bagged in consortium with the Dubai-based Limitless, turned out to be the highest and the single largest realty investment in the country so far. The project is expected to generate over Rs 50,000-crore value.

Not to forget the he realty score in the capital market. The market was on a high with the initial public offering of DLF raking in a record Rs 9,625 crore. A stunning number of township projects (totalling 210) were announced during the year, though some analysts say acreage was given the go by in the estimation.

IT sector was one of the major grosser with large volumes generated in IT office space. The residential segment too was closely IT-driven and reported robust growth. Non-IT commercial space too kept pace, more in line with the overall economic growth.

The year also saw a rising demand for quality manpower, and the salaries of civil engineers soared as also the need for their services.

Developers were on a roll, announcing plans to build in the next few years what they had been planning to build since their inception

Indian Real Estate Scenario

                              

2008 is going to be a successful year for Indian Real Estate Industry. According to industry body Assocham the Real Estate sector saw a 30-35 per cent 2007 growth in retail and 40-45 per cent in real estate sectors respectively. Predictions are that the boom will continue even in 2008.

The following figures were revealed in a report issued by Assocham. Organised and unorganised retail sizes in 2007 has been estimated at US$300 billion which is likely to grow to US$365 billion in 2008 and will further reach the size of US$440 billion by 2010. “Out of (India´s) retail industry, worth over US$300 billion, the organised retail segment is less than 5 per cent which works out to be slightly more than US$16 billion,” said Assocham President Venugopal Dhoot.

Also to be noticed are the growth rate fugures of 2007, in the year, the retail sector ended up with a growth of 25-28 per cent whereas the real estate industry saw a growth of 35-38 per cent, according to report. As predicted by Assocham, the organised retail segment should witness an additional investment of US$25-28 billion by 2008 and in 2010 the investment size would be around US$70 billion.

Organised retailers occupied a space of one million sq ft in 2002, which shot up to nearly 14 million sq ft in 2007. “In 2008, the space occupation in the organised retail sector is likely to be 16 million sq ft as retailers like Reliance, Plaza, DLF and even Aditya Birla Group will witness their major expansion drives in the retail sector,” said Mr Dhoot.

With respect to the real estate sector, the market-size is estimated at US$15 billion which has been growing at a pace of 35-38 per cent in the last couple of years and is likely to touch US$90 billion by 2015. As a result, huge investments are coming into the sector.

IT AND BPO COMPANIES ABSORB MOST OF THE TOTAL COMMERCIAL OFFICE SPACE

 

Despite sluggishness in demand for residential property, the commercial office space segment is continuing to spur growth, backed by strong demand for high quality real estate by both Indian and multinational companies.

 

"As the economy is doing pretty well, almost all companies are vying for good commercial space to expand operations. This is why the demand is pretty high in this segment," said real estate consultant Sunil Bajaj.

 

According to him there is a good demand for commercial office space property allover the nation. "In Mumbai the office space rentals in the Bandra-Kurla Complex (BKC), Navi Mumbai have gone up by 25 to 30 per cent over last year and the demand is increasing," said Bajaj. In Pune too, the rentals have climbed steadily to Rs 50 to Rs 80 per sq ft.

Consultancy firm Ernst & Young in one of its recent reports on Indian real estate stated that continuing the past trend, the commercial real estate segment witnessed a dominance of IT/ITeS- accounting for nearly 70 to 75 per cent of the total commercial office space absorption.

 

This is followed by banking, financial services, insurance, pharmaceutical and telecom companies in most cities. "Mumbai witnessed more diversified absorption with Banking, Financial Services, Insurance and Telecom contributing evenly," the report said.

According to this report, the total supply of commercial office space in the National Capital Region, Mumbai, Hyderabad, Bangalore, Pune and Chennai together was recorded in the range of 40-45 million sq ft.

 

"Cities like Bangalore witnessed highest ever absorption in their histories. Rentals and capital value of Grade-A commercial space witnessed steady appreciation in most parts of the country, highest appreciation for most cities was witnessed in the last quarter of 2006," the report said.

 

Due to limited supply in the existing central business districts of cities, rentals in secondary business districts are witnessing high appreciation in rentals and capital value, for example, Nehru Place and Saket in Delhi and Bandra Kurla Complex in Mumbai.

 

According to analysts IT/ITeS companies currently hard pressed with declining earnings due to the steady depreciation of the US dollar are scrambling for low cost office space at suburbs and even at Tire-II cities.

 

This is why several organised and unorganised players are constructing huge amount of commercial office space for speedy consumption.

 

But there is a caution for investors. "Indian real estate sector is exposed to global liquidity and interest rate related risks and threat from other emerging markets. The Indian real estate market is hence vulnerable to global risks and any adverse movement could be a dampener to its growth momentum," said the Ernst & Young report.

 

Courtesy: HT, dtd: 12^th Nov. 2007

Tags: real, estate, india

IT AND BPO COMPANIES ABSORB MOST OF THE TOTAL COMMERCIAL OFFICE SPACE

 

Despite sluggishness in demand for residential property, the commercial office space segment is continuing to spur growth, backed by strong demand for high quality real estate by both Indian and multinational companies.

"As the economy is doing pretty well, almost all companies are vying for good commercial space to expand operations. This is why the demand is pretty high in this segment," said real estate consultant Sunil Bajaj.

According to him there is a good demand for commercial office space property allover the nation. "In Mumbai the office space rentals in the Bandra-Kurla Complex (BKC), Navi Mumbai have gone up by 25 to 30 per cent over last year and the demand is increasing," said Bajaj. In Pune too, the rentals have climbed steadily to Rs 50 to Rs 80 per sq ft.

Consultancy firm Ernst & Young in one of its recent reports on Indian real estate stated that continuing the past trend, the commercial real estate segment witnessed a dominance of IT/ITeS- accounting for nearly 70 to 75 per cent of the total commercial office space absorption.

This is followed by banking, financial services, insurance, pharmaceutical and telecom companies in most cities. "Mumbai witnessed more diversified absorption with Banking, Financial Services, Insurance and Telecom contributing evenly," the report said.

According to this report, the total supply of commercial office space in the National Capital Region, Mumbai,

Hyderabad

,

Bangalore

, Pune and Chennai together was recorded in the range of 40-45 million sq ft.

"Cities like

Bangalore

witnessed highest ever absorption in their histories. Rentals and capital value of Grade-A commercial space witnessed steady appreciation in most parts of the country, highest appreciation for most cities was witnessed in the last quarter of 2006," the report said.

Due to limited supply in the existing central business districts of cities, rentals in secondary business districts are witnessing high appreciation in rentals and capital value, for example,

Nehru   Place

and Saket in

Delhi

and Bandra Kurla Complex in Mumbai.

According to analysts IT/ITeS companies currently hard pressed with declining earnings due to the steady depreciation of the US dollar are scrambling for low cost office space at suburbs and even at Tire-II cities.

This is why several organised and unorganised players are constructing huge amount of commercial office space for speedy consumption.

But there is a caution for investors. "Indian real estate sector is exposed to global liquidity and interest rate related risks and threat from other emerging markets. The Indian real estate market is hence vulnerable to global risks and any adverse movement could be a dampener to its growth momentum," said the Ernst & Young report.

 

Courtesy: HT, dtd:

12^th Nov. 2007

 

POWER PACKED PALWAL

 

With world-class expressways coming up and big industries setting up base their in the area, Palwal is all set to witness a massive industrial and residential boom in the times ahead. Here's an overview to the growth patterns

The national capital region might have become the zone of high-power investments but the Tier-II towns have increasingly become the focus areas of the housing sector. Real estate experts point out that a slight decrease in the real estate market in NCR is also due to the fact that investments and development have been scattered beyond NCR. And, Tier-II towns have massively taken away the share of investment from the NCR - the latest being Palwal, in Haryana.

HUDA has also shown keen interest in developing small Haryana towns. Realising the potential of Palwal, it had recently awarded the construction work of the 135 kmlong KMP Expressway around Palwal to D S Constructions, the company which built the Dhaula Kuan-Gurgaon Expressway. This KMP Expressway will touch Manesar, before terminating at Kundli, NH-1 (

G T Road

). The expressway is slated for completion by 2009. Another Eastern Peripheral Expressway is underway, which will connect Palwal to Kalindi bypass.

Rohtas Goel, CMD-Omaxe, says: "Palwal has a great potential for real estate development. It enjoys its own natural advantages. It is a key Haryana town situated on the strategic

Delhi-Agra Highway

, which also has a heavy tourist flow. The town is surrounded by some of the most significant expressways like KMP and Eastern Peripheral. Once completed, the town will also enjoy proximity with the Greater Noida airport. The future of Palwal is bright in every respect. There are also a lot of potential buyers for the projects. Then there is that added advantage offered by

Faridabad

 

City

."

An Industrial Model Town (IMP) is also being developed by the Haryana State Industrial Development Corporation (HSIDC) where industries have started coming up.

Says Sameer Gogia, a local property consultant: "Rapid industrialisation is taking place in Palwal. As a result, there has been a sharp demand for housing here. Local industrialists prefer to stay here. Within the next four years, the area will witness a massive industrial and residential boom. The nearly fivelakh strong town is bound to attract heavy population influx in the times to come."

And most importantly, the Delhi Metro Rail Corporation (DMRC) has cleared the proposal of a metro line to Ballabgarh and land has already been acquired by HUDA for the purpose.

The area will further be beautified with the private mode of development. A world-class integrated township on over 150 acres is currently under construction by real estate major Omaxe, on the Delhi-Agra National Highway-2. The township named 'Omaxe City' will be a complete township within itself, having provisions for hospitals, commercial centres, clubs, nursery-, primary-, middle-, senior-secondary schools and other basic facilities. The real articulation of development is in the construction of a five star hotel by the SRS group on NH-2, about 14 km from Palwal towards

Faridabad

. The hotel is said to be the first one in the country to have its own helipad.

Anil Jindal of SRS Group says: "A lot of domestic and foreign tourists travel on the Delhi-Agra Highway. But, there are no good hotels in between. There was a need to offer a luxury hotel for the tourists." According to Jindal, the nearly 15-acres-hotel site is being developed in three phases. In the first phase, 5 acres is being undertaken and would be completed by 2010 Commonwealth Games.

Local dealers say that with giants like Omaxe stepping into private housing, other developers are likely to follow suit. Already, Piyush and Era have come up in the area.

 

Courtesy: ET, dtd:

09^th Nov. 2007

IT AND BPO COMPANIES ABSORB MOST OF THE TOTAL COMMERCIAL OFFICE SPACE

 

Despite sluggishness in demand for residential property, the commercial office space segment is continuing to spur growth, backed by strong demand for high quality real estate by both Indian and multinational companies.

"As the economy is doing pretty well, almost all companies are vying for good commercial space to expand operations. This is why the demand is pretty high in this segment," said real estate consultant Sunil Bajaj.

According to him there is a good demand for commercial office space property allover the nation. "In Mumbai the office space rentals in the Bandra-Kurla Complex (BKC), Navi Mumbai have gone up by 25 to 30 per cent over last year and the demand is increasing," said Bajaj. In Pune too, the rentals have climbed steadily to Rs 50 to Rs 80 per sq ft.

Consultancy firm Ernst & Young in one of its recent reports on Indian real estate stated that continuing the past trend, the commercial real estate segment witnessed a dominance of IT/ITeS- accounting for nearly 70 to 75 per cent of the total commercial office space absorption.

This is followed by banking, financial services, insurance, pharmaceutical and telecom companies in most cities. "Mumbai witnessed more diversified absorption with Banking, Financial Services, Insurance and Telecom contributing evenly," the report said.

According to this report, the total supply of commercial office space in the National Capital Region, Mumbai,

Hyderabad

,

Bangalore

, Pune and Chennai together was recorded in the range of 40-45 million sq ft.

"Cities like

Bangalore

witnessed highest ever absorption in their histories. Rentals and capital value of Grade-A commercial space witnessed steady appreciation in most parts of the country, highest appreciation for most cities was witnessed in the last quarter of 2006," the report said.

Due to limited supply in the existing central business districts of cities, rentals in secondary business districts are witnessing high appreciation in rentals and capital value, for example,

Nehru   Place

and Saket in

Delhi

and Bandra Kurla Complex in Mumbai.

According to analysts IT/ITeS companies currently hard pressed with declining earnings due to the steady depreciation of the US dollar are scrambling for low cost office space at suburbs and even at Tire-II cities.

This is why several organised and unorganised players are constructing huge amount of commercial office space for speedy consumption.

But there is a caution for investors. "Indian real estate sector is exposed to global liquidity and interest rate related risks and threat from other emerging markets. The Indian real estate market is hence vulnerable to global risks and any adverse movement could be a dampener to its growth momentum," said the Ernst & Young report.

 

Courtesy: HT, dtd:

12^th Nov. 2007

 

REAL ESTATE IN FARIDABAD

Better known for its annual Suraj Kund Mela and perhaps the

Badkhal

Lake

,

Faridabad

chose to step aside and allow neo-cities Noida and Gurgaon to hog the limelight in the last few years. Content with its status as an industrial and residential satellite town for those who could not afford Delhi land rates, Faridabad made no attempt to woo the IT and MNC s setting up base in its neighborhood.

Real estate in Faridabad has thrived in spite of this indifference. In fact,

Faridabad

is being touted as NCR’s hottest property as new areas of land and improved connectivity with other cities is being strengthened.

Enjoying the most advantageous location with

Delhi

,

Faridabad

is also very well connected to Gurgaon and Noida. A strong infrastructure package for the city includes the Taj Expressway, the proposed highway from Kalindi Kunj connecting all the new sectors in

Faridabad

to join

Mathura Road

, the

Faridabad

- Noida -

Ghaziabad

- Kundli Expressway, the KMP Expressway, and the Badarpur over bridge. And with the Metro link with

Delhi

in the pipeline,

Faridabad

is a sure bet., currently witnessing price escalation of land by as high as 100 per cent. In the last year, land prices in this satellite town have increased by more than 60 to 70%. In prime sectors like 15 and 16 land prices fetch Rs 20,000 to 22,000 per sq yard today.. In sectors 81 to 90, the prices have increased to Rs 9,000-Rs 10,000 per sq. yard.

Faridabad

has a sizeable affluent and trendy population, notwithstanding the absence of the MNCs, which have been catalysts in the transformation of Gurgaon and Noida. The city is at par with other NCR cities with regard to quality of construction – BPTP Parklands, Omaxe and Era Infrastructure have ultra-modern residential projects coming up. Whilst Sectors 1-65 have been developed by HUDA, the new sectors from 66 to 91 are dominated by private builders.

Faridabad

has traditionally been an industrial city, with 300 large and 10,000 small scale units and the Haryana Government’s new

Industrial

Model

Township

will integrate industrial, commercial and residential real estate.

Large commercial projects in the city include Eldeco’s and the city’s first theme mall “Station 1” in Sector12, based on a steam engine! Ansal and

Crown

Plaza

are lavishly designed malls catering to chidren’s entertainment and hospitality. All signature brands and lifestyle products are on display. Mall

Manhattan

, a Parsvanth –Landmark Builders’ joint venture in Sector 20A is popular amongst shoppers.

So if you’re wondering where to put your money,real estate Faridabad has a price advantage over other NCR cities, backed with growing infrastructure spell good returns in the near future.

Real Estate Noida

Real estate NOIDA in the present times has emerged as one of the most enviable destination for property investors. Property in Noida qualifies for investing in a big way as also because of a pollution free and a highly supportive industrial environment with its unique infrastructure providing numerous and matchless facilities.

Commercial Property in Noida

Noida houses the head-office of the Software Technology Park (STP) while various automobile ancillary units with major car manufacturers have already started their operations. It is the operational hub for multinational firms outsourcing IT services.

NOIDA today exemplifies the concept of integrated township in its smooth and wide roads, uninterrupted power supply, clean and safe drinking water, and splendid residential complexes in a serene and peaceful environment