Bengaluru only big Silicon city to see rise in home sales‏

An interesting fact about the metros are that the six metro markets of India namely Mumbai, Pune, Hyderabad, Chennai, NCR and Bengaluru accounts for 70 percent of residential apartment and home sales in India. A study and estimation of sales by a real estate market watcher firm stated in a report that out of these cities the condition in other cities except Bengaluru is such that it is most likely that they will register a 10 percent decrease in sales over last year’s figures. According to the study of the same organization it was estimated that a 4 percent decline can be expected in June with an estimated sale of 2.75 lakh units of sale of residential units but in practice the figures plummeted even more sharper which has really made the market upset. The market watchers and the experts also opine that although a gloomy picture of sales are being forecast but there is a slight optimistic note in the story as well. They have reported that Bengaluru is the only big Indian city with an estimated growth in the sales figures of up to 3 to 5 percent. It can expected that Bengaluru will have a sales of about 60, 000 residential units which was about 57, 000 in 2013 registering a growth of 3 to 5 percent.

Mumbai on the other hand is expected to experience a decline in sales by 10 percent which was projected at an estimated sale of 80, 000 residential units in June. NCR which was projected to plummet by 17 percent is now expected to decline by more than 20 percent.

In most of the cities the real estate market picture was bleak with the realtors expecting the sales to surge upwards as the enquiry was pouring in, in large numbers. The realtors expected the sales to surge upwards as the time between the enquiry and the sale in many cities were noted to decrease which is an indicator of elevation of buyers’ sentiments. This report was quite shocking for the real estate industry and Bengaluru being a stable market always returned 20 percent on investment on a steady basis, as noticed by the real estate market players.

The realtors feel that poor buyer’s sentiments and high prices are the reason for such a situation. Mumbai is witnessing huge price resistance which is evident from the fact that the enquiries have increased in numbers but the conversion of the enquiries to sales are still very poor. NCR is also witnessing similar situations but in Bengaluru things are on the brighter side. The realtors and observers say that in other cities the prices, interest rates and the economy are not in tune with buyer’s assessment of affordability but on the other hand Bengaluru goes ticking on because of affordable price threshold.

Hyderabad also witnesses similar situation due to which many developers are noted to tailor make their high priced apartments made for the higher segment and are catering to the upper middle and the middle segment.

The observers note that Bengaluru users are comfortable in the price range of Rs. 4, 000 – Rs. 6, 500 per sq. ft. in the middle to the premium segment. If the price goes higher than Rs. 6, 500 per sq. ft. the customers are noticed to be resistant.

Should you invest in properties near public places?

Properties overlooking a stadium or in a VIP area has advantages and may be having a good resale value or is worth investing but is it good for staying in such area. Let’s find out.

Malls, stadiums, proximity to VIP areas and railway stations may increase the value of a real estate property. These are actually the infrastructural or communication facilities that enhance the prices of a property. But in reality is it tenable to stay near a stadium or a railway station? Let us see what people’s experiences have to say.

Real estate investors opine that buying an apartment or a property in a well-developed area with all infrastructures around is always beneficial as that keeps the price ticking. This may be the well-established view of the real estate investors but the residents of such places holds a different view altogether. On the contrary the residents feel that such proximity to public utility centers breaches the privacy of a home. Cars parked in numbers, too much of congestion and littered streets can disturb the mental peace of a person and the family as well. Similarly residing in a VIP area may make oneself feel special and privileged but high-end and tight security and frequent road block can be a menace for one’s living.

Apart from all these conflicting opinions there are still a few who says the proximity to malls, railway stations and other infrastructural facilities always saves time for one’s household requirements which is a privilege in itself.

How much privileged are these properties?

The experts of real estate domain and the market watchers and analysts feel that any property close to stadium has 7 to 8 percent extra value while those which are in the VIP area or are near VIP areas are highly priced. But this may not always be true and on the contrary the prices can be lesser than the market rate also if there is a negative impact.

Should we buy such properties?

From an investor’s view point it is always good to buy and invest in such properties but for the end users and the family it can be a bit hazardous. But it all depends on individual preferences and the likes and dislikes of the family.

Few dos and don'ts before one buys a property near public places.

The veterans of the real estate sector and experienced people view that there are few things one must ensure before buying properties close to public places.

• One should ensure that security system is high end and round the clock.
• One should avoid choosing a property on the main road.
• Ensure that the building has a private parking area not open to all.
• It’s advisable to buy apartments in complexes having resident’s welfare society.

Although properties near public places may have its disadvantages, but notwithstanding all this one can’t deny the intrinsic value of a place which is near to public places.

What is the importance of Occupancy Certificate and why do we need it?

What is an Occupation Certificate (OC)? Why is it important? What are the consequences if one doesn’t have it? Does your new apartment have an OC? These are the questions that hover in the minds of the apartment occupants. In this article we attempt to answer such questions.

CC (Commencement certificate) and OC (Occupation certificate) are documents that are often neglected by the developer in obtaining, assuming that they can get it later and start constructing and completes it. It is better to state in this regard that these certificates are issued by the local authorities and are issued in parts. The CC is issued till the plinth area at the primary level after which it is inspected that the building is constructed as per the plan following which the Occupation Certificate is issued which is also called certificate of completion. It is often observed that the keys of the apartment are handed over to the owner by the developer without a proper Occupation Certificate and the owner is also noticed to forget it in a hurry and amidst other important things of shifting in to a new house. But one may note that there may be serious consequences of not having an OC before occupying the new apartment. 

 

What is an OC, after all?

OC is the certificate issued by the local authority certifying that the building has been constructed complying the approved plans. The provision of law requires that OC is obtained from the planning authority. The law also provides that a residential unit having more than five units of residence needs an occupancy certificate. The buyer is entitled to occupy his/her bought apartment only after the OC has been received.

Why is the OC important?

OC is mandatory for any residential complex with more than five residential units as per the law in Bangalore. The law states that the buyer can occupy his/her premises that has been bought only when the developer obtains the OC which certifies that the building is legally constructed and is fit to be occupied.

A reason why the buyers overlook the OC is the fact that it is not required for the registration of the property during the purchase of it. But if the buyer desires to obtain Khata, he/she may have problems without an OC. OC is also required if one opts to purchase a re-sale flat.

What should the buyer check?

If one is buying a property under construction, one should check whether the certificate of commencement is issued or not before signing the agreement. It is often noted that the builders start developing till the second floor without a CC which they feel, they will procure at a later date. This practice is considered illegal and can pose problems in obtaining an OC. It is mandatory to obtain a CC from the local authorities before the developer starts construction.

These documents act as evidence that all constructions are according to approved plans and are legal. Often the bank asks for a CC instead of an OC in case one applies for a loan.

In Bangalore the OC is issued by the BBMP (Bruhat Bangalore Mahanagara Palike). The document is processed by the local authority or the BBMP once the owner or the buyer intimates that the construction is complete and it is ready for occupancy. The developer needs to apply before the BBMP filling an Occupancy Certificate application form along with few documents necessary as mentioned below.

Documents required for obtaining Occupancy Certificate.

1. Commencement certificate.

2. Completion Certificate

3. Built up plan along with the section plan.

4. No Objection Certificate from Karnataka State Pollution Control Board.

5. No Objection Certificate from fire force authority.

6. Pictures and photographs of the completed building.

7. A signed sheet certifying the floor area by the architect.

8. Photographs of rain water harvesting and solar panels, if implemented.

9. Tax assessment with tax paid receipt.

10. Copy of the sanction plan.

After the submission of the form attaching all these documents the BBMP inspects and certifies that the construction is done as per the approved plans and issues the certificate.

As per the law a property developer should submit an application of OC with the commissioner within 30 days of completion of the construction. The commissioner also replies within 30 days stating whether the application is accepted or rejected. It is advisable to move into the new apartment after obtaining an OC. In case the developer has deviated from the approved plans, the authorities may impose a penalty based on the extent of the deviation.

In this new internet world many people are updating the problems faced by them on the online consumer review forum which make the buyers more interact with each other and get quick results.

Bangalore to get No 1 position for the home price rise

Mumbai and Delhi NCR has for a larger amount of time given the property buyers the best property price and value appreciation. After the down sliding years in the major IT cities of the Bangalore and Pune these amazing cities have come up as a strong and emerging centers for the capital appreciation and have been most popular among the residential properties of the city.

As per many surveys conducted by the major real estate gurus it is estimated that Bangalore has been voted as the highest average capital appreciation under the middle income housing segment. This survey has shown around 41% of appreciation between the initial six months of the 2011 and the same situation has continued for the next consecutive year. Following the growth pattern with the same graph was Pune which showed around 28% growth. In the very same time Pune followed a growth of about 39% in the capital values for the major and the most premium properties. These figures reported by the survey were the highest recorded in the country that too in that particular segment and market. Bangalore followed close behind with nearly 37%.

As per the disparity which prevails in comparing the residential price tags in the city. The world famous firm Cushman and Wakefield has classified the middle income housing under the terms where any property below Rs. 5000 per sq. ft. is a kind of middle income housing whereas all other property above the price are under the category of high end.

The middle incomes as well as the high income segments are performing well in the real estate market of both Delhi- NCR and Mumbai as well.

The super stable markets in the real estate segments of Bangalore and Pune where the end users are majorly driven they are surely the ones to record the highest value of the average increasing capital values. It is therefore, clear from the survey that the investor driven market of Delhi and Mumbai have not performed well comparatively.

In the times passed by the IT sector of India has seen a growth transformation, which has resulted in the creation of very many jobs. This drastic increase has also led to the increase in the salary at many levels. In India there is a very varied correlation between the IT Sector and the property price appreciation. Those cities whose economies are to a greater extent led by the IT sector also tend to witness a prosperous demand for the middle income as well as the premium housing.

Those cities which are majorly IT driven are seen more engrossed in the level aspiration and expecting high in limits. There aspiration is comparatively more for home seekers and also their purchasing power, a much higher exposure to the International housing as well as luxury standards, they also aspire much about the contemporary concepts like the environmental sustainability.

According to many major real estate analysts here has been no major growth in the residential real estate of Bangalore and Pune as a result the two major IT sectors have remained on a balanced equilibrium for a longer period. The case is absolutely opposite when the real estate sector of Delhi NCR and Mumbai are concerned there the real estate prices are increasing at a much higher rate.

Writing an Online Review mark your words as once said it may leave a bad impression and a feeling of repentance

After a negative experience the emotions are weaken. Those negative experiences when occur after spending money, the sadness and disappointment is much higher. There is surely a feeling of sadness and a feeling of being cheated in our minds whenever a sad incident comes our way which involves a lot of money in it too.

Now these days the customers are much educated and are aware about the remedies to get over to the scenario of being cheated and bribed. They have also learn to take up necessary measures when cheated. Whereas in many cases the customers do not believe it to be entirely worth of spending a huge amount of money in filing the case for a miser product as the claims are limited and not the worth of all the pain taken to file a case. In place of filing a complaint under the consumer forum they turn their heads and attention towards the internet to vent out their bunch of frustrations.

So, the space which internet provides to puke out the frustration is none other than customer reviews. This article bravely outlines those 5 major things which a customer needs to focus before typing any sort of reviews online. Other spaces to jot down the reviews are through mails or letters. Below are some of the tips before striking an encounter with your keyboard.

The best of the decisions are made with the clear of the mind. It is recommended that one should whenever write a review should always be in a peaceful state of mind. One should never be in a upset mood and avoid writing something which you may later regret.

Those words which you write could be seen by anyone and everyone so it I necessary that one should watch his or her words.

Being honest and fair is much required. One should not use bad phrases and words against anyone. Calling someone liar and fraud is also not fair. One should always stay away from writing certain things which are not true and hence cannot be proven in the court.

One should write about their experience with the product or their pitch should be limited to the service and inability of the product. One should absolutely refrain from talking about the emotions and one’s personal feeling. The entire focus of the reviewer should be on the experience and event of failure of the product but not the emotions and other thoughts.

One must lay much emphasis over the facts and figures and only post such details which are authentic and are true to the best of their knowledge. One should also take care that their reviews may also be read by other customers who may or may not plan to buy such a product or service.

Other handy information before posting a review on the builders make sure about yourself that you are planning not to go with the same builder for any projects in future. Before drafting a review one must make sure about the impact of the review which you are going to post. It should not make a poor impact over your future working relations with the company. Thus one must understand the importance of words as hard words when said have a greater impact and it may tarnish the image as well.

The Realty sector drops in the initial partial of 2014: A word of caution

The real estate market in India has been seeing a chum all during the last half of the year 2013 especially the first half of the year 2014. The year has not been so promising though. Many of the realty developers feel so.

As a result many of the real-estate projects have been delayed. Many new launches have come to a stagnant stage marking the delay. The data has shown a clear hit drop in some of the most potential hot spots in the construction sector.

Area like Noida and Mumbai have the highest number of inventories unsold that too these figures are much higher in all the major metros. Gurgaon and Mumbai lead to the most expansive nearly a Crore unsold inventory. The survey was initially conducted in Noida, Gurgaon, Mumbai and Pune and also other places including Bangalore, Chennai, Kolkata and also Ahmedabad.

The real estate market of the national capital region NCR has seen a huge degradation when compared with the figures of the last year. Many of the new launched have suffered a loss by 5 % and the sales volume also showed a deterioration by nearly 22 % this data is as of the first quarter of 2014 when compared to that of 2013.

The affordability factor is also going through many interrogations as the prices marked by the stagnation of the income levels remains unchanged, making the affordability highly difficult. As per the data around 40 % of the projects under the construction process have been delayed, blemishing the buyers believe or confidence. This situation has certainly reduced the interest level of people which has resulted in low sales in a much lower pace.

Nevertheless the survey clearly portrays that in spite of the present on going activities the region is still investing from a very projected and spectated perspective with the hopes that there will certainly be a rectification in the market that will exclusively result in a market appreciation of the precious investments.

The real estate market in the southern region has been much stable; as the sales in Bangalore are witnessing a hike by nearly 6% with each year passing. The survey also brought the fact much in notice that the real estate market of Bangalore caters nearly to the 80% of the end users and also possess a maximum of local purchasers who are mainly the working population and also the NRIs. In fact Bangalore nearly account for about 17 new launched and has seen a huge increase in the supply in the same amount of time which is roughly 8% when compared with other metros who have seen a tough deadline. Thus, the real estate market of Bangalore is much capable to the ongoing uncertainty and disparities prevailing in the economic matters, but still the realty builders’ still carry on to render options equally in the upper or the mid segmented sectors.

Tricks used by real estate developers to attract the home buyers these days

There is a lack of transparency in the real estate market today. The real estate developers are doing a lot of stuff to attract the buyers and the potential investors. To their projects the realty developers are nearly at their toes and are trying to crack a deal. For many of the home buyers buying a house is an extremely important affair and they need to be careful enough as they have to spend their savings of a lifetime. These days a lot of developers in the real estate market have set many tricks and traps to gain the attention of these buyers.

The article discusses some of those gimmicks and traps by the real estate developers which are indeed the eye opener for them.

Freebies and discounts: These days the realty developers are offering various discounts which are kind of more of common practice these days. The most popular kind of freebies given away is gold coin, parking space, club membership or some other holiday and tourist packages. The buyers think that its wise deal and they end up taking free being thinking to have saved a lot of money. The reality to this is according to a new rule passed the real estate developers cannot charge the buyers of a parking space and it should be inclusive with the payment of the house. But to seeing on the other side of the coin the parking space these days is given away for free. The give away discounts and freebies are nothing but just a candy to attract the buyers and the in fact do no real good to the investors.

Rental Returns Guaranteed: Rentals are guaranteed and are offered by the developers to the investors who are willing to take rentals on a continuous basis. In simple language this means that the buyers are entitled to get a rental income of around 8 to 12 percent which of the total value of the property as promised by the realty developer. This offers the free maintenance of the property. The trick of this scheme is; the realty developers do it when they are undergoing some cash crunch but if the developer fails in accumulating needed cash then there is also a possibility of a bounced cheque. While going in for such contract one must make sure that there are no hidden costs which are included in the agreement only.

The Pre EMI Schemes: The simple meaning of the pre EMI is it gets disbursed majorly depending upon the stages of construction. This means the buyers need not pay any EMIs until the construction gets over and also unless the possession is handed over. Many of the real estate developers choose the option of pre EMI sharing in which they have to pay this amount within a period of 24 months.

The word of caution before going in for such an option is that the home buyers should make sure that the developer does not have any padded cost. Along with such an option the real estate developer might not give away any kind of freebies. Even in the case of project delay the Pre EMI might also get extended and the home buyers will lastly have to pay the entire amount on their own.

The Model Flat: Understanding the blue prints and the prototype is really hard for common people. To make things much simple the real estate developers make a model flat for the home buyers. The catch in this is while preparing the model houses the developers may add a lot of amenities and embellishments which might miss lead the buyers. In a prototype the same place might appear big but in reality it might turn out to be comparatively small. It is one kind of a created illusion from which the buyers and the investors might be aware of.

Offer Warranties: As developers these days are providing certain appliances along with the residential units. The have also initiated the giveaway of warranty cards along with these gadgets. This clearly means that these days when buying a house the developers are getting a warranty for their amenities and comforts. The one major trick with this attractive offer is that the real estate developer only gives away the papers of the warranty, just in case of any defect or malfunction such amenities like geyser, kitchen chimney or bathroom fittings the buyer only needs to run to the product manufacture. There the problem could arise the real estate developer during that time might turn into a deaf ear after handing over the apartment.

Tips for Luxury Home Living

Spending your hard earned money in the luxury sector within the real estate industry is a question of a lot of consideration. Many of the big shot money makers are also confused about their decision to spend the bulk money in the luxury sector of residential unit in the real estate market.

The question still prevails in the minds of many that where exactly one should invest the hard earned money.

When an individual invests in a property in Bangalore there is a sense of support and security. However where to invest is still a question which many investors and buyers contemplate upon.

This article outlines few of the key guidelines which will supply an individual with a fair amount of knowledge needed prior making any investment.

One should look into a city which is an employment hub having numerous opportunities

Also one should look out for a city where the children have the benefit of undergoing a versatile and a best in class education facility.

 It is also important to consider the climatic conditions. It is recommended that one should always go for such climate which is easily adaptable.

Staying in a location which is near to the family and relatives is also a positive aspect on which one should lay emphasis.

One should also look out for those options which are supplying the best quality of transportation and such a location with better connectivity is a boon to carry out daily routine.

The Buyer probe

Now a day’s the buyers and the investor must seek an expert advice which may guide them in making buying decision over a residential or a commercial sight. There are mainly two types of property one is the luxury and the other covers the rest. One should always consider the approachable facts and as well as the nearness to the main centers. Fulfilling the requirements and comforts is one of the strongest criteria which a buyer sometimes may not be aware of and hence may seek an expert advice. Thus, the luxury items always have a very heavy and a hefty ticket price.

Also a prospective buyer in interested in knowing the difference between the super luxury and the luxury. There is a difference in these sectors only in the means of the amenities they are supplying.

Other features:

One should also consider the cost invested in the maintenance of a luxury property which varies depending upon the area per sq. ft. and also the cost depends upon the amenities to be provided. Thus, the luxury lifestyle and the luxury sector interests you, this indeed the great time to invest in this segment promising extreme comfort.

Bangalore and the Growth of Villa: Real Estate Investments

Bangalore has immense scope for the development of Villas and homes under the luxurious sector. The city has offered Villas ranging from Rs. 90 Lakhs to Rs. 1.2 Crore. According to the recent data it is estimated that 89 projects in Bangalore are listed are Villa Projects following within the above price range. Areas like Sarjapur, Sarjapur road and Kanakpura Road offer villa projects within the budget of Rs.90 Lakhs to Rs. 1.2 Crore.

Taking the case of Sarjapur which has a listing of about 17 projects with the highest numbers of unites having a price tag of Rs. 1.2 Crore. Sarjapur alone accounts to about 15 percent of the total villa options in Bangalore.

In the last few months the number of villa proclamations in southern Bangalore has seen a growth. In the same segment Kanakpura tops the list with a major number of 8 projects within a little lower price range of Rs. 90 Lakhs to Rs. 1 Crore. All these projects are in the pipeline of construction.

Expectations

The total 60 % of the villas are 3 BHK whereas the 27% of them are 4 BHK residential settings. The remaining amount of them is either 3.5 or 4.5 residential setting. The rest of the left ones are 5 BHK projects falling under the same price brace.

According to a property advisory and consulting firm located in Sarjapur the only advantage of purchasing a villa is that the developer helps in the actual construction. There might be certain constraint in the look, feel and ambiance of the villa but when it comes to customization of your villa the developers will be open to the idea as long as the central plan remnants similar.

The average area covered by these offerings ranges around 2000 to 2600 sq. ft.  Depending upon the amenities the buyer of such villa can expect to avail the facility of a swimming pool, club house and gymnasium along with common entertainment areas is also a plus.

These villas are an amalgamation of excellence and comfort with added amenities like conference room, laundry service, private terrace, gardens, children play area, proper landscape, RO water system and also an expert maintenance staff.

Those eight projects in Sarjapur are said to offer total air conditioning which are in the above said price bracket. It is also advised that one should put a thought before deciding as these villas are mainly located on the outskirts of the city. The facts about traveling to work, school and other surrounding infrastructure should be kept in mind and under consideration if an individual is planning to move to such luxurious lifestyle at an initial point of time.

Setback Space Definition and Margins Formulated By BDA

Setback space is one of the parameters involved in the property of which most of the people are not aware.

Setback Definition:

Setback or Setback space is the open space between the building or a house that is constructed and the border of the plot. Several kinds of authorities have demarcated minimum values of setback that needs to be required.

The setback space limit is set by the Bangalore Development Authority (BDA) depending on the height of the building, which is in question. For instance, buildings that have a height up to 11.5 meter have different setback limits while those houses that have a height greater than 11.5m.

The below mentioned table shows the setback space limit for buildings shorter than 11.5 m. and plot size lesser than 4000 sq. m:

	Width of the site(Right)	Width of the site (Left Side)	Depth of the site (right side)	Depth of the site (left side)
Up to 6.0 meter	1.0 meter	0 meter	1.0 meter	0 meter
Between 6.0 and 9.0 meter	1 meter on all sides	1 meter on all sides	1 meter on all sides	1 meter on all sides
Above 9.0 meter	8%	8%	12%	8%

For plots that are larger than 4000 sq. m. a minimum setback of 5.0m on all sides need to be maintained.

The below table shows the setback space for buildings with a height of more than 11.5 meter:

Height of the building(m)	Front, rear, and side setbacks (min. in m)
11.5 m - 15 m	5
15 m - 18 m	6
18 - 21 m	7
21 - 24 m	8
24 - 27 m	9
27 - 30 m	10
30 - 35 m	11
35 - 40 m	12
40 - 45 m	13
45 - 50 m	14
Greater than 50.0 m	16

For uneven plots, regular setback spaces not taken into account. In its place, depths and widths should be measured in those areas where the plot is uneven and setbacks should be considered for those sections.

Nonetheless, it is important that this setback area is located within the plot and does not comprise any open space outside the plot area. If public open spaces are considered as a part of the setback then it is illegal and could lead to complications.

For an instance, in a plot located at one corner then the two sides facing the road will be taken as front side and the related setbacks would be allotted to these sides.

In those plots that have two roads on both front and the back end then both the road facing sides shall be treated as front and the other two sides will be regarded as right sides.

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