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.

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.

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.

Bangalore: A safe haven for realty investors

The real estate market of Bangalore is growing at a burgeoning pace. The city has witnessed massive growth both in residential as well as commercial real estate. Properties in Bangalore are known for their affordability, high-quality and top-class amenities. There is no dearth of luxury apartments, villas, furnished apartments, affordable houses, condominiums, etc. in the city. Bangalore is one of the safest places for investors.

Highly favorable demographics

The highly favorable demographics make Bangalore a safe and profitable destination for investors. The city has witnessed rapid growth in infrastructure that has lured buyers. Return on investment is as high as 20%.

Structural reforms

Structural reforms such as foreign direct investments and setting up of real estate investment trusts (REITs) will bring more transparency in the sector and provide flexibility to raise funds. While earlier real estate developers in Bangalore faced problems related to funds, these structural reforms will help them overcome this hurdle.

Bangalore will also benefit from the proposed smart city plan announced by the Government in the budget. It will provide a great opportunity to property developers in the city to come up with new projects.

Establishment of IT parks and other infrastructural projects will further propel the real estate market of the city. Not only physical infrastructure, but growth of social infrastructure also makes the silicon valley of India a safe investment destination for realty investors. The city has numerous reputed educational institutes and hospitals along with employment opportunities.

Availability of land at cost-effective prices is a major reason for developers launching ambitious projects in the city. Thus, there are enough options for buyers. In coming days, the real estate market of Builders in Bangalore is expected to witness further boom. With Namma Metro connecting various parts of the city and the cosmopolitan nature, Bangalore’s real estate will touch new heights in the future.

Tips for making your home more energy efficient

As the green movement marches on there is a great demand for energy-efficient houses. These houses not only give residents a healthy living environment but also help reduce carbon footprints. Let us see how you can make your home more energy-efficient.

Take advantage of typographic features

It is best to plan early and take advantage of a home’s typographic features. A compact layout and a passive solar design make a home energy-efficient. Using the home’s orientation to take advantage of the sun’s energy is an example of passive solar design. Small rooms use less energy than larger rooms. Therefore, during the design phase analyze how you can use the typographic features to make your home energy-efficient.

Go for green roofs

Several energy-efficient houses in the world have green roofs. Green roof improves thermal performance of your home and increase lifespan of the roof surface. They also remove airborne particles and improve the quality of air. Real estate developers recommend green tops for eco-friendly homes.

Test for leaks

Air leakage affects energy efficiency of a building. Therefore, test for leaks and plug them immediately. Areas around doors and windows, fireplaces, wire chases, laundry chutes, etc. are more susceptible to leakage. Look for breaks and gaps and seal them.

Have adequate ventilation

Ventilation is an important aspect of any home, be it luxury apartments or condominiums. Ventilation improves indoor air quality and does not allow accumulation of moisture. After you have prevented air leaks, look out for proper ventilation to improve the quality of air inside your home.

Use energy-efficient lights and appliances

An energy-efficient home focuses on saving energy. In order to do that it is vital to use lights and appliances that consume less energy. Energy efficient LEDs and CFLs reduce utility cost to a great extent by using less energy.

Landscaping

Landscaping is a great way to enhance energy efficiency of a home. Consult your local expert if you are doing it for the first time. Landscaping not only improves the looks of your home but also improves the surroundings.

Homes with high-energy efficiency are highly rated in the market. Prominent real estate developers are integrating green homes in their portfolio, demand for which will surge in coming days.

Rise in PE Investments in the Indian Realty Sector

Private equity (PE) investment in the Indian real estate sector rose more than double in 2014 as compared to 2013, according to a report from real estate consultancy Cushman & Wakefield. According to the report, PE investments rose to Rs 15,410 crores in 2014 as compared to Rs 7,360 crores in 2013. The massive rise is a clear indication of the renewed interest among investors in the sector.

Reasons for the rise

With foreign investors acquiring IT parks and IT-SEZs, the same gave a big push to PE funds. Rapid growth of the residential segment owing to attractive capital appreciation and leased commercial office assets has also boosted PE funds in the sector.

PE funds are an important source of funding for real estate developers and many real estate companies bank on these funds to complete their projects. PE funds have been a major catalyst for growth of the sector. Total number of deals also rose from 40 in 2013 to 73 in 2014.

With the economy slowly reviving, the Indian realty sector needs funds. Setting up of real estate investment trusts (REITs) has boosted confidence of real estate developers in bangalore and in the coming days, the number of PE investments is expected to go even higher.

Expensive locations for property investment in Bangalore

The real estate market of Bangalore is witnessing a robust growth thanks to all-round development. Rapid growth of infrastructure coupled with a booming IT market has made the city one of the hottest realty destinations in the country today. Demand for luxury properties has skyrocketed and the city boasts of numerous expensive locations for property investment.

Indiranagar

One of the most expensive locations in Bangalore, Indiranagar boasts of reputed educational institutions, hotels and restaurants. Robust connectivity with other parts of the city has prompted many property developers in Bangalore to launch large-scale projects here.

Whitefield

Majorly an IT hub, Whitefield is known for MNCs, tech parks, malls, restaurants, etc. With enhanced connectivity to ORR, Whitefield is the home of many luxurious residential properties in Bangalore. With the tremendous growth in physical infrastructure, Whitefield continues to be a top draw among luxury property investors.

Brookefield

Located in the eastern region of Bangalore, Brookefield has seen the launch of many luxury residential properties. Real estate developers have taken an active interest in Brookefield because of its strategic location. Builders in Bangalore are expected to launch several new projects in the area in the coming days.

Real estate developers in Bangalore and other metro cities offering freebies to attract homebuyers

The time could not have been better for buyers to purchase apartments in the major metros of India. Real estate developers in Bangalore and other metro cities of the country are offering major discounts along with freebies to lure buyers.

 

Great discounts

Prominent real estate developers in Bangalore, Mumbai, Kolkata and NCR are offering nearly 25% discount. Not only this, they are also offering buyers free studio apartments along with modular kitchens. Studio apartments are being offered to buyers purchasing top floors of luxury residential apartments.

Data from various sources reveal high inventory levels. This has left real estate companies concerned. For raising capital, it is important to show bookings. However, the result of these steps is still to be seen. The housing market of the country is delicately poised at this moment. With NRIs eyeing to buy apartments in the country, it is the right time to offer discounts and freebies.

 

The upcoming Budget holds the key to the growth of the real estate sector. Developers are expecting a further reduction in interest rates that would make home loans cheaper. This will enable buyers to buy the apartments of their choice. Developers are also expecting the market to revive in the coming months that will help them sell unsold inventories.