Real estate demand to improve

The Indian real estate sector has been experiencing robust growth since the election a new Government. The demand for residential housing and office space is likely to improve in the coming days. A report released from Knight Frank suggests that realty demand will improve in the major cities of the country. Let us see the outlook for the major cities in the next six months.

Real estate market of Bangalore

The report suggests that there will be an improvement of 17% in new completions in the H1 quarter of 2015 as compared to H1 2014. A large number of lease deals from the e-commerce sector are in the pipeline. This will push the real estate market of the silicon valley of India. With builders in Bangalore coming up with new projects, buyers can expect more in the coming days.

Real Estate market of Mumbai

Though new launches will be lower in the commercial capital of India, yet there will be an improvement in demand. However, the report says that though the demand will improve the magnitude of growth in price will be low. Like Bangalore, real estate developers in Mumbai are also launching several new projects.

Real Estate market of Chennai

Though new launches will be lower in the commercial capital of India, yet there will be an improvement in demand. However, the report says that though the demand will improve the magnitude of growth in price will be low.

In the coming days, the Indian real estate sector is expected to touch new heights.

Real Estate: Property valuation methods

Real estate property valuation is one of the essential components of a property transaction. Property valuation depends on whether you are building, buying or selling a property. In this article, we will discuss the various property valuation methods.

Investment method

Investment method takes into account the discounted cash flow and the future cash flow i.e, a return on investment that the property can bring to the investor.

Comparative method

As the name suggests, this method relies upon comparison. In this method, property values of similar properties are compared to arrive at the capital value. This value might be higher or lower than the initial value.

Cost method

Real estate builders adopt this method when there is a scare in the market. In this method, an estimate of the value of the replacement of the property is taken into account along with value of vacant building and land due to depreciation in prices.

Profit method

This method deals with the profit acquired from a property and capitalizing on it. This method is used to calculate property values of hotels, marriage halls and cinema theatres.

Factors affecting valuation of a property

The following factors affect the value of a property.

• Security
• Infrastructure
• Civic amenities
• Structure of the property

Indian realty segment to witness more FDI inflows

At a time when the economy is still battling a slowdown, the Indian real estate sector is attracting considerable interest from domestic as well as foreign investors. Foreign direct investment (FDI) has been one of the major sources of revenues for the sector.

Initiative from the Government

The initiative from the Government — relaxing FDI norms — has given a fillip to FDI inflow into the sector. It is to be noted that the Government had reduced capital requirement to $5 million from $ 10 million. The Government has also reduced the number of documents for exports and imports to help investors do business. Real estate builders believe that the move will further increase FDI into the sector.

Smart cities to boost the infrastructure sector

The Government’s vision to develop smart cities in the country needs infrastructure projects on a large-scale. Smart cities need top-class amenities. To develop these cities, real estate companies need massive funds. FDI will play a crucial role in developing these cities.

A recent report from real estate consultant Cushman & Wakefield found India to be one of the top 20 global investment destinations in the world in 2014. The Indian real estate sector holds immense potential and offers tremendous opportunities to investors and end users.

Final home buying checklist before purchasing an apartment

A last home buying checklist is extremely vital as it tells you that everything is well with your new home. In this article, we will discuss the final home buying checklist.

Check the power outlets and appliance

It is essential to check the power outlets and ensure that there are no loose wires since they can result in fatal accidents. Check out each outlet and turn all the switches to make sure that they are working properly.

Look at the general condition of the house

Before making the final payment to the real estate developer, it is important to survey the general condition of the house. Properly look at the walls and look out for insects. Ensure that the cabinets are free from all scratches and cracks.

Confirm for fire safety equipment

Today many real estate companies install fire safety equipment in apartments. Ensure that the apartment has carbon monoxide and smoke detectors. Also, ask your developer for a fire escape plan.

Examine the roofs and toilets

Properly examine the toilets and the roofs. Look at the sink and toilets to ensure that everything is in proper shape. Check the taps of the kitchen and bathroom and make sure that the roof is devoid of any leakage.

Benefits of green roofs

Green roofs are an important aspect of green construction. These roofs not only offer environmental benefits, but also have many economic and social benefits. In this article, we will discuss the benefits of green roofs.

Improvement in water and air quality

Green roofs reduce the heat island effect and remove airborne particles along with volatile organic compounds. This improves the quality of air. Eco-friendly Real estate companies surfaces also absorb the harmful particles and prevent their entry into the water system.

Boosts the lifespan of roofs

Because of constant exposure to UV rays of the sun, a thermal fluctuation reduces the lifespan of roofs. Green roofs create a barrier that protect the underneath membranes from UV rays thereby boosting their lifespan.

Numerous health benefits

Green roof offers numerous health benefits. It reduces stress and improves blood pressure and heart rate. They help in faster recovery of patients post-surgery.

Rainwater management and improvement in microclimate

Eco-friendly roofs cool the surrounding air and improve the microclimate. They also enable rainwater management and cut down water run-off by nearly 50%.

Today, there are many real estate developers involved in constructing green apartments and green roofs. Real estate companies are adding green projects in their portfolio to boost sales. With numerous benefits, the demand for green roofs will only increase in the coming days.

Tips for marketing luxury apartments

Marketing luxury apartments require special expertise. In this article, we will discuss certain tips that will come in handy while marketing these apartments.

Right pricing

It is essential to price these apartments right to attract buyers. It is important to keep prices according to the existing market rates. Quoting an unjustified price will dent buyers’ confidence.

Use as many mediums as possible

It is essential to use as many mediums as possible to reach out to buyers. Print, broadcast and online media will help you reach out to maximum buyers. Do not limit to a single medium.

Put up quality photographs

Photographs play a vital role in marketing premium apartments. Real estate builders and agents use high-quality photographs while marketing high-end projects. Ensure that the photos cover every room and highlight all the amenities.

Offer extra

Offering extra always helps. Extra incentives such as electronic gadgets, imported furniture, etc. entice buyers and can bridge the gap between the selling price and the one quoted by the buyer.

Property viewing

It is handy to show the property to customers personally. Customers must know what actually they are purchasing. It is essential to make homes look bright.

It is vital to remain patient while marketing high-end apartments. You must prepare to answer all the questions of buyers.

India attracting massive real estate investments

The conducive real estate environment existing in India is making it one of the most profitable real estate destinations in the world. According to real estate consultancy Cushman & Wakefield, investment volumes in the country rose to $ 5 billion in 2014 as compared to $ 2.1 billion in 2013. The figure reached is the highest in the last five years and has helped India rank among the top 20 highest priority investment destinations in 2014.

Rising confidence of investors

The massive rise in real estate investments is a proof that investors are gaining confidence in the Indian real estate sector. The reforms undertaken by the Indian Government have made it easy for investors to do business in the country. It is to be noted that the Government had relaxed FDI norms to pump in more foreign funds into the sector. Setting up of real estate investment trusts (REITs) has also bolstered confidence of investors.

Residential sector received the highest investment ($2.6 billion), closely followed by the office sector ($ 2 billion). The innovative approach taken by real estate companies in India has caught the attention of buyers as well as investors. The reviving economy has also boosted the confidence of investors and real estate developers. Global investment volumes are expected to rise by 11% in 2015 to $1.34 trillion. The rising volumes augur well for real estate builders and the sector that is looking to touch new heights in the coming days.

Budget 2015: Mixed bag for the realty sector

Realty players expected a lot from the Union Budget 2015. In the end, the Budget can be summed up as a mixed bag for the sector. Though there are no direct benefits, a thrust on sustainable growth and infrastructure will benefit the sector in the future. Let us see the announcements that will aid the sector.

End of speculation to GST

In his Budget, Finance Minister Arun Jaitley announced that GST would be implemented from the next financial year. GST will benefit real estate developers as well as buyers. By announcing implementation of GST, the Finance Minister has put to rest all speculations regarding it.

Faster approvals

In his Budget, the Finance Minister announced setting up of an expert committee that will aid in the making of a pre-existing regulatory mechanism to quicken approvals. This is a welcome move since real estate companies have suffered because of delayed approvals that pushed up project costs.

Relief to the Indian middle-class

By abolishing wealth tax, the Government has provided a big relief to the Indian middle class. Instead, the Government has introduced a surcharge of 2% on people earning Rs 1 crore or above. Abolition of wealth tax means that a majority of Indians will not have to pay any tax on property ownership and only super luxury apartments will be taxed.

Tax soaps to Real Estate Investment Trusts (REITs)

Tax soaps announced for real estate investment trusts will attract massive funds. Rationalization of capital gain tax regime for REITs is a big boost to the sector.

However, the increase of service tax from 12% to 14% has not gone down well with real estate builders, as it will aid inflation. It will also increase the cost of construction. However, the results of the announcements are still to be seen and one hopes that the sector will gain strength in the coming days.

GST Regime: A positive development for the real estate sector

The Indian real estate industry has witnessed a robust growth in tier I, II and III cities. Development in Goods and Services Tax (GST) is a positive development for the realty industry that can have a significant impact. At present, though construction services have been taxable under service tax and VAT, a few basic issues need to be solved. The proposed shift to GST will strengthen the realty sector and solve many of its problems.

As of now with service tax and VAT being the primary levies, there is a constant dispute on the rate of tax since there are several options for discharging taxes across the states. Because of this, real estate developers have been following diverse practices. However, with GST being implemented the practices would be common across geographies. This will benefit real estate companies in bangalore as well as buyers.

Benefit to buyers

Presently, homebuyers need to pay VAT and service tax while booking an apartment before its completion. The developer on the other hand needs to pay CST, excise duty, customs duty, etc. all of which is added during pricing. All these taxes push up the cost of the residential unit to a great extent. GST aims to remove all these taxation system with a single system. Thus, it will bring down the cost of construction and aid buyers.

Benefit to commercial developers

Commercial developers will benefit immensely from the regime as most of them are burdened with high costs since there is no credit is available for construction services on a commercial property. Hence, most of them are rented out. GST will ensure a smooth flow of credit, thereby aiding developers.

Overall GST augurs well for the real estate industry. Smooth flow of credit will increase investment opportunities in india property bangalore and real estate builders can expect more transparency in the sector.

Residential Property : Innovative ways to sell a home

You need to be creative while selling a home in today’s market. In order to get a good deal and sell your home fast, you need to think out of the box. Since the housing market is competitive, therefore, you need to devise creative strategies to attract prospective buyers. In this article, we will discuss certain innovative ways that will help you sell your house hassle free.

Make a website

Buyers look for all detailed information about homes they are willing to purchase. Provide them the details by creating a website that has all the information about your home. A website helps you reach a range of buyers and makes the process transparent. Place visually appealing photographs to grab the buyers’ attention. You can sell your home online if you develop a robust and interactive website.

Use social networking sites to reach customers

Social networking has become a part of everyone’s life. Create a buzz about your home on sites such as Facebook, Twitter, etc. Make an interactive page of your apartment on Facebook and promote it. Add interesting updates to create an engagement. Almost all renowned real estate developers are active on the social network and use it to promote luxury apartments, condominiums, etc.

Share an online video

It is important to make a visual impact to customers. There are many free portals where you can upload videos of your home.  Make a short, simple and impactful video of your house and upload on these portals. Make the video informative and creative to connect with the audience.

Create local listings

Local listings are quite effective when you intend to sell a home. A great write-up accompanied with professionally staged photographs will help you connect with your audience. Tell the benefits of purchasing your home and give all the necessary details.

Price properly

Most importantly, you need to price your apartment properly. You must not quote an unjustified price. Know the property rates around your neighborhood and price accordingly.