5 Major Urban Locations to Enhance Real Estate Development in Bangalore

To get the heat off of Bangalore, the government is developing towns and improving connectivity through expressways on the peripheral of the Bangalore City.  In regard to this, the Karnataka Urban Infrastructure Development Finance Corporation (KIUDFC) under the influence of Bangalore Metropolitan Region Development Authority (BMRDA) has planned to develop a ‘city cluster development project’ comprising an area about 8,005 sq km.

Mr. Suresh Kumar – Minister of Law and Urban Development Department said that BMRDA has intended to construct five satellite townships and expand them as self-reliable cities and the state government has approved the proposal of Bangalore Metropolitan Region Development Authority (BMRDA) in June 2006.

Currently, the proposal in presented before the Centre for approval and Mr. Kumar also explained that the ‘city cluster development project’ is designed majorly keeping 5 towns that include Bidadi in Ramnagara Taluk, which will developed as Knowledge City; Ramnagara will emerge as Healthcare City; Sathanur in Kanakapura Taluk will come-up as Textile/Apparel City; Solur in Magadi Taluk will be developed as Manufacturing City and Nadagudi in Hoskote will emerge as Hardware/Manufacturing City.  Furthermore, to improve the accessibility to these towns, a four-lane expressway will be proposed that will connect the Outer Ring Road (ORR) of Bangalore to these regions.

The minister also added that some of the significant plans under the ‘city cluster development project’ particularly the launch of International Airport in Devanahalli and the completion of peripheral road will definitely aid in the fast development of numerous urban areas such as Doddaballapur, Nelmangala, Malur, Vijayapura, and Hoskote.

The minister in addition stated that the ‘city cluster development project’ has also gauged the scattered absorption and recognized the five corridors for the growth of the real estate in Bangalore.  The five corridors that will improve the BMR development are Bangalore-Whitefield Corridor; Bangalore-Hosur Industrial Development Corridor; Bangalore-Nelamangal-Tumkur Corridor; New Internation Airport Corridor; and Bangalore-Ramanagara-Bidadi Corridor.  In accordance to this, the Asian Development Bank has also recognized the Bangalore-Tumkur-Mysore City Cluster as one of the rapid growing urban regions in India.

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The Time Is Good To Enter Commercial Real Estate

It is believed that the commercial real estate, which is seen as an indicator of economy is currently facing a declining trend. It has also been noticed that the bigger cities are left with a glut of office space which is seen pushing the vacancy rates. The question that props up in the minds of the people is that should investors continue investing in real estate presently.

Well, currently it is believed that commercial markets in majority parts of India have bottomed out. Hence, this is being considered as the good time for high net worth individuals to invest in commercial real estate.

Many people wonder as to why should people considering the slowdown and high vacancy level invest in commercial real estate over residential real estate. It is believed that the annual yield in residential properties is between 2-3.5 percent across the country. Moreover, in commercial today, one can expect returns anywhere between 9-11 percent.

There are some people who wonder if they are in the midst of a buyer’s market and whether investors can get good deals and negotiate. Well the answer to this is yes. It has been seen that today, many tenants are using this as an opportunity to move into either consolidate within one’s premises or cheaper locations also looking at renegotiating with existing landlords.

The 3 do's to invest in commercial property are taking into consideration the capability of the developer, 1) the kind of projects he or she has done before, 2) the kind of quality of finishes, 3) the way he manages his property.Also make sure there are no legal issues and the building is of sound quality.

The top 3 Negative points to be avoided in investing commercial real estate are:

(1)Don't follow a herd mentality.
(2)Keeping a close watch on vacancy is advisable.
(3)It is advisable to not go after the 25th best buildings in that particular micro market which one is looking at.

Bangalore requires 80,000 crores to deal with infrastructural demands

With time, there is growth and for bigger cities, the growth percentage would be more. Development is always a positive thing, yet at times, finance could be a concern. This is what is happening currently with Bangalore, as the authorities are in doubt about generating the requirement of a whopping 80,000 crores in the next five years. The amount is solely for infrastructural developments including road development, drainage works and other works.

It is expected that every city would grow by twenty percent on an average, therefore, in Bangalore, such a growth which is a certainly would lead to a population of 204 lakh. Currently, the IT city is home to about 95 lakhs people.

And, the government can’t go beyond an investment of 20,000 crores. There has been an increase in private investment but certain constraints specifically, those regarding policies deter authorities from spending the money in an effective way.

And, realty is not just the one, there are several sectors requiring urgent investment. It is equally important for authorities to allow funding in these sectors as well. Therefore, generating this much amount solely for realty sector is not an easy task.

This is where the smart city council, an initiative by Dr. A Raveendra, CSD (Center For Sustainable Development) Chairman becomes imperative. The councils were started as an effort to speed up smart city innovation and overall development.

The council has members in the form of corporate leads and leading businessmen in various sectors.

In a nutshell, the government and all related organizations have a tough task ahead in the coming years. 

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CREDAI CONCLAVE Event on 13th – 14th December 2013

CREDAI to arrange a National Conference event called CREDAI CONCLAVE with a topic as ‘Housing the Game Changer - Leading to Double-Digit GDP Growth’ at New Delhi on December 13 and14, 2013.

The event will be attended by many eminent dignitaries like Dr. Girija Vyas - Minister for Housing and Urban Poverty Alleviation, Mr. Akhilesh Yadav - Chief Minister of Uttar Pradesh, Mr. Bhupindir Hooda - Chief Minister of Haryana, Mr. Sukhbir Singh Badal - Deputy Chief Minister of Punjab, Sri Rajnath Singh – President of BJP, Dr Montek Singh Ahluvaila - Deputy Chairman of Planning Commission, veterans from Banking Sector, like Ms Arundhati Bhattachraya – Chairperson of SBI, Ms Naina Lal Kidwai – Head of Indian operations of HSBC, and Mr. Uday Kotak - Executive Vice Chairman & MD of Kotak Mahindra, and some major economists and many others will take part in the event and will discuss subjects, such as ‘Urbanization: Dream of Young India’, ‘Road to Recovery’, ‘Building a Nation - Contribution of Real Estate in National Economic Growth’, ‘The Game Changer’, and provide essential drive for policy change and transformation.   

The broad Agenda of Conclave - 2013 will include the following discussions:

• Government of India and CREDAI dignitaries will inaugurate the session
• Eminent corporate personalities and veteran policy makers will address on ‘Unshackling Growth' in the keynote session.
• Vision and values of progressive India - Policy reforms and Governance
• Creating a platform in Indian real estate market to global investors
• Bridging the great urbanization divides in tier II and tier III Indian cities.

CREDAI objectives - 2015

• Every developer should join CREDAI
• Aid the government to implement changes in policies in tax, land, administrative and fiscal areas to attain more affordable housing and higher GDP
• To set up organization of excellence and research
• To share, learn and create knowledge platforms through conferences

Vision of CREDAI CONCLAVE - 2013

The event aims to organize developers with high degree of reliability, to connect the reliability by gaining respect from every stake-holder, to aid the government to accomplish superfluous housing status, to create ample of urban infrastructure, to contribute considerably to the country’s GDP by facilitating growth in skills.

The CONCLAVE -2013 will thus lay pathway to recognize the great potential, which the realty industry sector contributes for the country in accelerating and reviving the growth of the country, as the economy has declined from a high of 10.5 % in the fourth quarter of Financial Year 2006 to a low of 4.8 % GDP growth in Financial Year 2013.

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Increase in Private Equity Investment Brings Relief for Realty Sector

The latest report on Private Equity investments (PE) on India in 2013 by Cushman and Wakefield places Bangalore at the top in view of a declared investment of INR 1,979 crores. This figure indicated a whopping 79 % increase compared to last year largely resulted by huge leased amounts for office space. Behind Bangalore are cities like Pune and Delhi with transaction volumes of around 780 and 612crores respectively.

What has been disappointing is the statistics on Mumbai. The city. Which otherwise attracted a steady investment showed a 43% reduction in the total volume of deals. However, the figure is expected to rise in the immediate future.

The report says that the total value of declared private equity dealings in the realty sector for 2013 (first 3 quarters)stands at INR 4,716 crores, observing an increase of 26%. There has been an increased demand for income-generating office space across India. With the planned implementation of REITs, the Real Estate Investment Trusts, things are set for an organized way of functioning. And there has been an effective utilization of offshore funds and capital funds. With REITs, the sector would get organized further, and investors were convinced of this trend, say experts.

This is really something to look forward to, amid the sluggish phase due to worldwide financial slowdown, inflation rates, lack of supply, discrepancies in project completion and less sales.

Roughly 65% of the total investment in 2013happened during the3rd quarter at INR 3,078 crores.  And, the total worth of funds in the office sector was estimated at INR 2,476 crores in the first three quarters in 2013, almost double than the previous years. Consumer interest in leased office structures were on the upward scale.

The housing segment also witnessed investment, yet, there was not any significant growth. However, launches in the first three quarters of 2013 seemed to increase by 5%. Nevertheless, the data is not impressive regarding sale of individual housing units.

Other related sectors like retail and hospitality have not been a great contributor. The cited reasons include less demand and inventory accumulation, altogether creating a dull situation.

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Boom Time for 1 BHK Flats in Bangalore

Are you in search of a property in Bangalore? Are your investment plans hindered by lack of funds?  Do you feel confused about going for a hefty loan? Then, a 1 BHK will be an option worth considering. 

Bangalore is witnessing an increased demand for 1 Bedroom flats from people of different categories. There are various such projects coming up across the city and even outskirts in different size and price ranges.

Bangalore is among the rapidly developing metro cities in India. With the advent of numerous software giants, the economic scenario has undergone a total transformation. The Silicon Valley is also blossoming as a hub for basic as well as professional education. And, high level immigration has been another causing factor behind boom in realty sector.

1 BHK is ideal for students, young couples, small families or working professionals. And, moreover they come at a lesser price and those in two minds about spending a huge amount can go for them.

In the preceding years, such apartments were centered around in emergent places such as Mathikere or, Madivala. However, the last few months saw leading developers coming up with such projects in various places in and around the city.

The luxury apartments in this category are also quite popular. More builders, realizing this trend has launched projects of 1 BHK. Examples include Pashmina, Prestige, Fortune etc.

One BHK homes located adjacent to premier educational organizations, attractions, key areas, transportation are obviously much in demand.

Sometime back, majority of takers for 1 BHK used to be people belonging to low-income group. Not any more, say experts. Many of the current buyers are looking for a viable second-investment as 1 BHKs offer steady rental income. Many are trying to reduce the loan amount by opting for 1 BHKs and the saved amount could go to other forms of investment. And, the changes in lifestyle look at small space as the ideal option.

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The Revised Master Plan 2015 will be a Big relief for Builders

The Revised Master Plan 2015 by Karnataka High Court, which will be the absolute document for land use and zoning guidelines that includes a wide range of improvement plan for the city, would be considered to have a sweeping effect on property development.

With BDA as the local planning authority, which is drawing the Revised Master Plan 2015 would take priority over all village and gram Thana maps.

The ruling was proposed by Justice BS Patil in a writ petition filed by Sobha Developers Limited against BDA and BBMP, which concerned about the BBMP’s opposition to cut roads in the developer’s residential project in Nagasandra.  Opposing the denial of permission to cut roads for water, laying power, and sewerage connections by the BBMP, the developer stated that as per the Nagasandra village map, the part of the project was on a ‘naala’ (drain).

The petitioner was concerned that there was no naala displayed in the Revised Master Plan 2015, as the developer’s project development plan had been approved by BDA and construction license too was permitted by the Palike.

Suraj Govind Raj of Anup S Shah Law Firm, representing the petitioner said that the verdict entails that henceforth all the development will act in accordance with the Revised Master Plan 2015.

Relief for builders

After the Karnataka High Court professed the Revised Master Plan 2015 the final document for zonal and land use regulations, it seems the property owners and developers across the state could show a sign of relief.
  
Several property development projects failed to get permission by the local bodies due to the multiplicity village maps though the maps were drawn up by the local bodies and due to which many projects were embroiled down.

Advocate Suraj Govind Raj said that all plans drawn by the local planning authorities will be the ultimate plan for land use regulations and zoning.
  
With the Revised Master Plan 2015, the court makes the property development easier as developers will now have to refer to one map that is drawn by respective local bodies.

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Useful Tips for Safe and Practical Real Estate Investment

A significant percentage of people end up in the real estate sector while searching for the so called “most practical investment option”. Yes, real estate could well fit with your present as well as future requirements. Yet the question coming prominent is how to make sure that you have opted for the right investment option?

One important aspect regarding real estate investments is that with the right choice, you are assured of good returns. So, it is all about opting for the best by keeping your future requirements and current financial conditions in mind.

If you are an impulsive or over-confident person, you might encounter difficulties. Always consult as many people as possible. Here, lawyers, real estate agents, property consultants, housing lenders and financial consultants assume significance. Always verify that you are surrounded by the best in the industry in terms of real estate, legal or financial assistance. Experience plays a crucial role here, therefore, try to approach people with many years of experience.

Non-professional help could also be sought. Here reference is about friends, relatives, colleagues, known-ones who have made it big in the real estate sector. If you are going to a new area, local newspapers or online reviews might provide valuable information on the area, builder and ongoing prices.

Next thing to consider is your budget. Buying a home or other properties should be a potential investment, not a financial burden. What is advisable here is a thorough analysis of your budget, other liabilities, monthly expenditure, savings etc to know how much you can invest on the concerned property without any negative impact on a comfortable lifestyle. The idea here is that the present cost should be within your budget and there should be significant financial returns in future.

Negotiations, how much importance you give it? If not much, then consider this. Effective negotiation skills can fetch you significant discount even on small deals. Another issue is an after-purchase one. You need to find good tenants for good monthly returns.

In short, with right planning, guidance of experienced people and good assessment, you can blindly trust your real estate investment.Finally, research the property reviews from your known friends and other useful resources before investment.

Indian Real Estate Market is Healthier Than Abroad

Now a days India has become a talk of the town in Real Estate, as property market is offering an unbelievable infrastructure to the customers. The real estate market in India is residing a better life style by building an infrastructure all over the cities of India. Not only the metros but also the outskirts are facing a big change in the realty sectors. Property in the places like Mumbai, Gurgaon, Bangalore, Delhi, Kolkata, Noida and other main parts of country is coming up with outstanding Infra structure. Keeping in mind the various needs of the buyers these new coming projects are designed in India. The flow in the real estate market is not only inspiring the Indian investors but also foreign property buyers are showing interest in purchasing properties in India. Top developers in India and abroad is designing the Infrastructure for the country. Commercial and residential have been redesigned in a way that one will compare them at an international level.

The main reason behind considering India as an attractive destination for realty investor is that it offers some returns to each property buyers. The developers have introduced the concept of budget property which has been struck in the country. The budget residential property offers property within your budget with all the necessary amenities provided which makes you to stay happy in the complex. As there is real estate boom in India, there are competitions due to which the developers are offering everyone with the best property at the best price. The most desirable cities in India like Delhi, Mumbai, Noida, Gurgaon and Bangalore where you can buy properties. India’s real estate is better than abroad due to employment opportunities, Growing Infrastructure, low price apartments and the outstanding amenities and creative architecture. Properties like studio apartments, villas, luxury apartments, golf course estates, food courts etc are coming due to this people are ready to invest. Many builders are offering dream homes as per property buyers wish. The only feature the buyers need to decide is the budget.

When India is offering an endless opportunities at a much less price then why to invest in property outside the country. If you have a property in mind then India’s real estate have lots of offer.

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UK DFID will Finance 500-Cr to NHB for Low-Cost Homes

The National Housing Bank CMD R V Verma said at an event in Delhi that the British Government's Department for International Development will finance Rs 500-crore loan to National Housing Bank for constructing affordable houses in the low-income states of the country.

He also added that the project will be started in eight low-income states that include Madhya Pradesh, West Bengal, Odisha, Uttar Pradesh, Bihar, Rajasthan, Chhattisgarh,and Jharkhand.Over a period of 2013-2019, the project will comprise a DFID (Department for International Development) obligation of up to 50 million pounds (Rs 500 crore).

Alan Duncan UK Minister of State for International Development said that this project is designed to help the poor and will also involve the partnership investments of private sector in order to generate a return.  He also added that UK loans for small and medium developers to build17,000 low-income households will help India to develop its private sector and this project will also help financing mortgages to low-income families.

R V VermaCMD of NHB further added that this loan consists of two components in which the 40 million pounds that is equal to. 400 crore in Indian rupee will be considered as concessional loan to NHB for constructing affordable housing units and to finance loans to low income families.  The remaining 10 million pounds equal to Rs. 100 crore

Mr. Verma also added that this is a valuable opportunity for an appreciated partnership and the project is significant to take care of the housing shortage especially in low-income states.

He also said the rates on the lending cost for affordable housing will be lower when compared to the normal rates. He also added that in future the project will also expand to other states.

He concluded the event by saying that NHB will contribute by investing about Rs 500 crore or more towards this project.

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Home prices started to reduce finally

Fall in House Price

The slowdown in the economy has finally taken a duty on the demand of the house price in the residential real estate sector for the quarter ended June 2013 reduced all over the country. As per the data given by National Housing Bank, compared with the previous quarter, 22 out of 26 cities which is covered by NHB Residex is facing the fall in housing prices this quarter ended June 2013.

The Residex as prepared by the NHB is to track the movement of the residential property price on a quarterly basis. As per the index not only the tier I cities, but also the tier II cities are experiencing a fall in the price during the period between April and June 2013.

Ludhiana experiencing the largest revision of price falling which is 6 percent followed with Indore and Vijayawada that are 5.6 and 5.4 percent respectively. The prices in Delhi and Mumbai are reduced by 1.5 and 0.5 percent respectively. The four cities Dehradun, Nagpur, Surat and Lucknow saw an increase in the price, where Nagpur has witnessed the high rise of 3.1 percent.

The similarity in fall in the residential prices in a recent occurrence, the prices in 9 out of 20 cities has reduced when seen on year to year basis. Indore and Ludhiana faced the largest fall of 9.4 and 8.2 percent respectively in a year. Jaipur also experienced the biggest upward and downward movements of 41 percent over the last one year. Delhi and Mumbai saw increase in the price 15.7 and 12.2 percent in the year June 2013 compared to June 2012.

Experts say that, decrease in the price may not be the real fact of the ongoing slowdown.  One of the chairman states that, there is no such reduce in the prices and some cases they have not even fallen but still there is a decrease in the sales which is going down.

The situations differ from city to city. One of the advisor says Mumbai is in a bad condition than Delhi and it has been experiencing a decrease in transaction over the last two years.

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Realtors Likely to Clear Inventory on Freebies & Festival Sales!

According to the industry experts, this festive season, many realty developers are optimistic of clearing a huge portion of their inventory pile-up primarily by enticing buyers with freebies and discounts despite a tight situation on the declared prices. According to a top developer, what has led to the build-up of unsold units with developers in majority of the realty market over the last few quarters is the fact that higher interests and the overall slowdown. This trend is unpleasantly affecting cash flow and also new project launches.

To add on to that, it has been noted that things might get worse for developers what with RBI’s strict directives such as banning 80:20 scheme. It is believed that the period during September-December is the time when maximum launches and publicity of real estate projects takes place. Despite this fact, industry watchers opine that there might not be any price correction during the period. 

An associate of a renowned developer opined that they don’t expect any price correction now. Majority of the projects have marginally gone up or have maintained the same price level. However, with the projects been factored in the slowdown, the developers intend to plan out their sales prudently. 

The trend now in the realty market with regard to the festive season is such that the developers are in the likelihood of luring buyers through many gifts/discount schemes, which are usually in the form of gold coins, customization, cash-back on monthly rentals, free club facility and parking, upfront cash discounts, zero brokerage amongst many offers. 

According to a realty portal, numerous freebies have been publicized by various developers in Delhi-NCR, Bangalore, Mumbai, Chennai, Pune, Kolkata and Hyderabad. Such attractive offers are likely to result in huge enquiries and footfalls during this festive season. This move may help create decent sales. The property reviews and ratings indicate this trend may entice the customers.

Contribution of Infrastructure for our Nation

CII’S 4th Regional conference on Infrastructure Project Management was inaugurated in Delhi by EM Sudarsana Natchiappan, the Minister of State for Commerce. The knowledge partner for the conference was CBRE.

In the Inauguration Dr. Natchiappan stated that for the development of infrastructure in India, the government has to focus on it and should give importance to infrastructure for the sustainment of economic development.

Over the years India’s economy is getting better and bigger. It is estimated that Asia’s 3rd largest economy will be the world’s 3rd largest economy by 2050. Dr Natchiappan says, that ports to airports, road ways to air ways, power production facility is the key for the development of the nation.

Dr Natchiappan spoke about the Act which was recently passed i.e. Land Acquisition Act, Food and safety law and Company Act and its importance. He says infrastructure should be in a continuous way in and around the globe.

He ensures that Government says there would not be any rapid growth due to high environmental cost and the infrastructure projects plays a key role for the success of the green growth.

Dr Natchiappan suggested for the smooth run of the process for both the managing teams of skilled resources and for the demanding customers. He says that there should be regular information about the project deliveries and communication, which gives better chance of success and the project deliver. He says Motivation and Empowerment is a key for effective leadership.

Dr Natchiappan came to conclusion saying that for the sustain growth, India should develop good infrastructure so that there would be a qualified and social labor. For the visible supply chains there should be clear information for decision making.

Therefore development of infrastructure has achieved a high gain over the last few years. In-fact the contribution of infrastructure and real estate industry always plays vital role in GDP (Gross Domestic Product) of the country.

Marginal blow on rate hike being experienced by Bangalore Realty

Bangalore is one of the Top cities for attractive real estate investment when compared with New Delhi, NCR, Mumbai and Hyderabad.  People across the country prefer this city to be their home town for many reason like globally known IT hub, favorable climate condition, greener scenarios and multicultural environment. Many IT professionals and business class people are interested to invest on a property in Bangalore

Currently Reserve Bank of India (RBI) has hiked repo rate to control economic fluctuation in the country. It is badly impacted to the loan systems of many banks especially to home loans. The real estate market across many cities of India has affected by this hike. People lose interest on purchasing the properties. Many realtors and builders feel unsecure with their business in the coming days. Again the economic slowdown in the country has also impacted on real estate customers.

Despite all the difficulties in the Indian economy, Bangalore’s real estate market shows constant performance as before. According to Confederation of Real Estate Developers' Association of India (CREDAI) Bangalore President C N Govindaraju, RBI repo rate hike has no major impact on Bangalore real estate market.  He said that metro cities like Mumbai, New Delhi, NCR and Gurgaon have seen slowdown where normally real estate market is on overheat.

People believe in the quality of properties in Bangalore as it is a fast developing city. Industry officials say due to depreciation of Rupee value against dollar, NRIs are interested to invest in Bangalore.  They are pumping their money into the real estate sector in the country for a better return in the future.

India to be 3rd Largest Construction Market on 2025

‘Global Construction Perspectives and Oxford Economics’ in a recent study envisaged India to occupy the 3rd position among world’s largest construction market by 2025, with 11.5 million homes being added per year to reach a $1 trillion a year market. IndiaMART Knowledge Services (IKS) through their survey among SMEs within the building and construction sector, attempted to analyze the current business scenario, tallying the parameters like employment, future sales scope and barriers to growth.

The study revealed that though economic conditions remained unstable, almost 60% of the SMEs in the sector have witnessed improvement in their business operations during the last year. With this growth pattern, over 46.9% of SMEs are looking forward to a bright future and expecting improved sales between 0-20% led by regular inflow of demand.

The key findings by IKS can be highlighted as:

Business Operations: Corporate growth saw an increased hiring of employees by 46.1%, while sales growth counted to 56.1% and 51.5% increase in production capacity.

Orders: Respondents accounting for 44.6% received orders exceeding the worth of Rs. 25 lakhs.

Export: Not much changes happened in the export front, which remained stagnant at 44.6% of SMEs for the year 2012. While little improvement was cited for 27.7% SMEs, same percentage experienced decline in demand too.

Challenges: For more than 40% SMEs limited availability of finance was a major challenge. Approximately 27.7% feel increase in steel and cement prices as an obstacle to their growth and 16.9% find lack of trained/skilled manpower as an area of concern. Only 12.3% found improper infrastructure as a bigger challenge that they faced in the past 1 year.

Again, India has to meet the demand of homes as per the population growth and this will influence the  investment in property businesses.

By 2025 Real Estate’s Contributed Share In GDP Might increase to 13%

A recent report titled ‘Assessing the Economic Impact of India’s Real Estate Sector’ was issued by the global property consultant ‘CBRE’ to forecast the performance graphs of real estate in India in the next decade. According to the prediction, national real estate will experience a smooth sail if the government cooperates to removes hurdles in infrastructure, by lowering the borrowing cost and shortening the process of approvals, and thus can contribute more towards the economy by accounting to a doubled 13% of GDP by 2025, as compared to 6% recorded in 2013.

Rapid urbanization, demand for new housing as well as hyped trends of towering costs in the Tier I and Tier II cities are more likely to be the precursors of the realty boom in India in the coming years. With this trend analysis, CBRE report further concluded that annual employment opportunities generated in the sector are about to increase from 7.6 million in 2013 to an almost estimated 17.2 million in 2025. More statistical forecasts followed such as the increase of yearly real estate supply from 3.6 billion sq. ft. in 2013 to about 8.2 billion sq ft in 2025, majority focusing on the residential housing segment.

CBRE substantiates its analysis by portraying the fact of rapid urban development in India. Records indicate that within the span of 2001-2011, 71 million people have enrolled their addresses under the urban quota. If this logarithmic graph is inferred, by 2026 Indian cities will be nest to 534 million dwellers.

Analyze Customer Reviews of Realtors before Investing In Property

Customer is king for a business organization. They are key assets for the company future and growth. Any business organization takes primary efforts to satisfy its customers from all angles. One common thing for these days business is expectation levels of individual customers are different. Sometimes they are not happy with the customer services of the company. There are lots of facts to be taken before analyzing customers’ bad reviews on company services.

On the other hand cyber crime is increasing exponentially due to liberal internet facilities available to the people. Many people give bad reviews/ feedback on the company services without any evidence. Sometimes competitors in the niche business engage in these illegal activities. The final results of indulging in these activities are loss of reputation of the companies and business. At the end customers are deprive of getting better services by many good companies.

Often potential home buyers misled by these bad reviews. But they should also be aware of good reviews by customers which are in the text and video format. They should not worry about the company authenticity and business activities by reading bad reviews.

Confederation of Real Estate Developers Association of India (CREDAI)

Real estate is one of the booming industries in the Indian economy for future business. With this opportunity the numbers of realtors are increasing across many cities of the country. It requires effective rules and regulations to maintain the standard of real estate services to the people. Confederation of Real Estate Developers Association of India (CREDAI) is one of the well known chambers of the Indian business sector.

Any discussion involving the country wide real estate geography, along with the regulations and policies governing the sector, the name that goes undoubtedly mentionable is CREDAI. Established with the objective of disseminating authentic details on the prevalent trends in the real estate domain across the country, CREDAI’s primary principle focused on creating an organized and progressive real estate industry, thus scripting an ethical code of conduct to be mandatorily followed by all the 3500 organized builders and developers from 18 states in the country.

Property Floor

Adopting the vision of Pratibha Patil’s ‘slum free India’, CREDAI has been actively involved in roles of uniting real estate developers on a common platform facilitating the stakeholder interactions that encounter government bodies, professionals and consultants. The organization of support functions like workshops, events and grievance redressed to consumers, reflects CREDAI’s dedication towards the improvement of the image of real estate consultants or agencies in the eyes of its stakeholders.

CREDAI renders services like raising relevant issues in government and non-government forums, suggesting alteration of policy and providing the developers a unified front. In addition, CREDAI also helps members obtain expert advice on specific topics. Proactive policies and rules ensure the maintenance of forum integrity, further strengthened by development of innovative construction techniques, sharing of statistical data, campaigning the interests of construction workers and their education. Since its inception, CREDAI has marched ahead creating as well as milestones in the field of Environmental Impact Assessment, Service Tax on Commercial Rentals, Special Residential Zones, Urban Land Ceiling, Stamp Duty Rationalizing, Real Estate Financing. The two actively performing units namely CREDAI Bengal and CREDAI NCR act strategically as the pillars in Indian Real Estate industry.

A Brief Summary on Statistics of Property Prices in India

Modernization has attracted many young Indians to spend their life in the metro cities like Bangalore, Mumbai, Pune, New Delhi and Hyderabad etc. Due to this, the rate of urbanization has increased in the country since last few years. Here is a brief overview of real estate statistics in few of the Indian cities, as specified by National Housing Bank, analyzing the percentage of variation in the asset price list over the second quarters of 2011 to 2012. The current scenario traces back to India’s great housing boom to 2002 to 2007, supported by strong economy, urbanization encouraging price hikes, inadequate infrastructure, low interest rates, lack of planning and antiquated land use laws. Towards the end of Q2 2012, house prices hiked by 17.01%, 8.84%, 33.33% in places New Delhi, Mumbai and Pune. On the other hand, Kochi, Bhopal, Hyderabad, Patna, Surat and Faridabad witnessed dips in prices. In addition to this, improper legal framework for foreclosures, rampant titling problems and limited financing options encouraged by banks towards the low-income individuals have contributed to India’s small mortgage market.

Amongst all these variables fluctuating in the scenario, International Monetary Fund (IMF) concluded about the uncertainty of the outlook. The International Monetary Fund (IMF) revised its GDP (Gross Domestic Product) growth prediction for India this year to 4.9% from 6.1%. Similarly, the World Bank has also reduced its India growth estimation to 6% in 2012 from an earlier estimation of 6.9%. On other side, the RBI (Reserve Bank of India) expects the Indian economy to grow by 6.5% this fiscal year. However, economic policy revamp and inflation and continuing hikes in interest rates still continue to make the real estate pricing status dwindling.