Real Estate Tips – Page 5

Busting the Myth Of The ‘Ideal Home’

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

You read of it in advertisements and on hoardings, and hear of it in radio jingles and TV commercials – the ideal home, or ‘dream home’.

It makes you wonder if you’re living the lifestyle you truly deserve, if your previous home purchase decision was too hasty and if there is a chance you could do better.

The ‘ideal home’ is a ubiquitous marketing concept, and it haunts buyers before and after a property purchase. But is there really such a thing in India?

The ‘Ideal Home’ Paradox

By and large, the concept of an ‘ideal’ home is very relative in this country. While everyone carries a picture of their dream home in their hearts, that image usually cannot translate into reality in this country.

People long to stay close to nature, yet also close to the excitement and opportunities of the city. They long for a home in an environment unpolluted by noise and vehicle emissions, yet depend heavily on public transport and roads to use their personal vehicles for commuting to and from work.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Conceptualized as an industrial town, Sector 150 falls in the peripheral area of New Okhla Industrial Development Authority (NOIDA).

During the mid-2000s, Sector 150 evolved as an IT hub and subsequently attracted real estate developments primarily due to effectively-planned layouts.

Situated at the confluence of Yamuna and Hindon rivers along the bustling Noida-Greater Noida Expressway, Sector 150 is now one of the preferred residential destinations of Noida. The key factor which differentiates Sector 150 from other regions is the presence of massive green spaces.

The land use planning of Sector 150 has been undertaken in a pattern that ensures 80% of the 600-acre land parcel remains under greenery and only the remaining 20% is allocated for construction activities. Nearly 42 acres of land are dedicated specifically for parks and recreational facilities.

This micro-market is equipped with good social infrastructure including reputed educational institutions, hospitals and shopping complexes. Sector 150 is currently flourishing with real estate activity, and there is a visible rise in residential developments, integrated townships, commercial spaces and mixed-use developments.

Located strategically,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Gurugram is home to around 1,500 start-ups and is the 4th largest start-up hub in India. As the city hosts the behemoths of the start-up industry, it makes sense to delve a little deeper into this fascinating new office space sector in Millennium City.

Emerging commercial office locations in Gurugram, as also in Bangalore, Navi Mumbai and Hyderabad, have benefited significantly from the Indian start-up euphoria. This trend is likely to continue for some time given the availability of large talent pool and availability of real estate spaces.

The start-up eco-system in India has been a key contributor to the rise in investments and job creation. Many start-ups that commenced operations in later part of the previous decade have already become medium-sized or large companies, particularly if we look at some of the popular e-commerce companies in India today.

From zero contribution to office space take-up, the e-commerce sector today contributes over 3% of the total office space absorption on an annual basis. We expect the growth in this sector to increase over time.

The government initiatives,

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

One of the interesting new trends in Kolkata’s residential real estate market has been the entry of new players. The capital values of residential realty have seen a price increase in Q4-2017 ranging from 2 to 3% as compared to Q3-2017.

A number of upscale multi-storied projects were launched in 2017 in the southern part of the city – for e.g. Tata 88 east, Mani Vista, Signum Victoria Vistas, Aspirations Elegance and Onex Privy. The capital values of these projects were in the range of INR 8,000 to 12,000/sf.

Effect of demonetization

As everywhere else in the country, demonetization had some effect on Kolkata’s residential sector. However, since Kolkata’s residential sector is largely end-user driven, the effect of demonetization was not very severe, as the buyers are willing to wait for the market to stabilize.

In the office asset class, there has been no major impact due to demonetization. However, leasing demand has certainly reduced post-demonetization.

Top-selling residential projects

Kolkata’s residential property market is seeing a splurge in supply – which,

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

The Golf Course Extension Road has emerged as one of the most sought-after residential corridors of Gurugram.

While not being priced as high as the neighbouring Golf Course Road, it offers multiple apartment options for the upper-mid segment moving up the value chain to luxury housing options as well.

This residential corridor has seen more than 8,500 residential apartment units launched overall, and many of them are in advanced stages of construction. Around 2,500 residential units have been delivered here with another 2,600 slated for completion by 2019-end.

This residential market has a good mix of end-user as well as the investor segment who have in the past achieved healthy capital appreciation across their investment/purchases. The healthy completions pipeline had also resulted in a robust secondary sales market in this corridor.

The consistent price appreciation on Golf Course Extension Road caused sales to dampen slightly, and the overall slow market for high-ticket sized apartments has also impacted the sales velocity in this corridor.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Real estate investors need to be an exceptionally canny lot, since various factors can negatively affect the value of one’s real estate assets. Being aware of these – and making suitable provisions and allowances for them – is an inalienable part of successful property investment.

The rising cost of money

Increasing inflation is the first factor that inhibits the profitability of a real estate investment. While investing in any kind of property solely for capital appreciation, one should always consider what the overall earnings would be worth at the point in time one wishes to liquefy them.

If one fails to plan for the inflationary effect, further property purchases may be out of reach – rendering the whole concept of real estate investment an exercise in futility.

A simple method of establishing whether inflation will erode one’s real estate investment is to determine if the interest rate earned on one’s savings is less than or equal to the rate of inflation. If it is, it means that your real estate investment too will suffer because of inflation.

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

When the scion of one of the world’s most iconic real estate brands comes to India to help market yet another luxury homes project – this time in the Millennium City of Gurgaon – the market sits up and takes notice.

By all standards, the upcoming Trump Towers are a sizeable undertaking – the 47-storey towers will put 250 exclusive units on the market, with completion and possession slated for 2023.

As can be expected from such an iconic development by a brand that has already made a strong imprint in Mumbai, Pune and Kolkata, the price tags are astronomic, ranging from INR 55-110 million.

This gives rise to a logical question – at a time when the luxury housing market in India has yet to pull itself out of the doldrums, is there any appetite for such an offering? Let’s examine some facts.

In the Asia Pacific region, India ranks 4th in the list of countries with largest HNI population. The HNI stratum of the Indian population largely remains shielded from the macroeconomic risks,

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Vartak Nagar is a residential suburb in Thane once known largely for its tapered roads and deplorable infrastructure. The residential market was predominantly defined by low-rise developments that housed industrial workers from the nearby manufacturing units.

Today, with the rapid urbanization of Thane and its surrounding precincts, Vartak Nagar has witnessed a significant upgrade in terms of both civic and social infrastructure, and its revamped market profiling has turned it into a promising real estate destination in the Mumbai Metropolitan Region (MMR).

It now has excellent road connectivity to the central and western suburbs via the Eastern Expressway and Western Express highway (via Ghodbunder road) respectively. Vartak Nagar is also well-connected through an established rail network.

Its proximity to the serene Upvan lake and exquisite view of the scenic Yeoor hills have become the major drivers of consistent real estate growth in Vartak Nagar.

Moreover, it still has an abundant supply of land parcels (primarily through the redevelopment model) available at competitive prices. This is a major draw for developers of residential projects since the lower land prices allow them to sell their properties at attractive rates.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Once a quaint settlement known for its scenic beauty with lush green trees and inhabited by Eurasians and Anglo-Indians during the late 1880s, Whitefield has witnessed a shift from being a settler’s haven to one of the sought-after real estate destination of Bengaluru.

Whitefield is one of the key tech hubs in Asia and has evolved as a preferred residential real estate destination.

Falling in the eastern periphery of the Greater Bengaluru region, Whitefield is a burgeoning micro-market with a rich history of over 200 years. However, the spurt of real estate developments in Whitefield dates back to early 2000s when the IT-ITeS sector began to boom.

The establishment of Export Promotion Industrial Park (EPIP) and International Technology Park of Bengaluru (ITPB) shaped Whitefield into a buzzing suburb. Today, more than four lakh ‘techies’ work in various multi-national companies located here.

Over the last few years, Whitefield’s skyline has metamorphosed into tall skyscrapers and big residential communities. The housing demand in this region is primarily driven by the IT professionals working in nearby office complexes.

by Anuj Puri

Anuj Puri, Chairman, ANAROCK Property Consultants

We keep hearing of the ‘wait-and-watch’ or ‘fence-sitting’ syndrome on the residential property market, which basically means that a significant number of people who want to buy a home are not doing so.

Property buyers tend to wait and watch rather than buy for two or three reasons. One would be that they are waiting for a ‘price correction’ – a meaningful reduction in the prices developers quote for their properties. Regardless of whether their hopes are realistic or not, this fence-sitting’ dynamic is a definitely a fact.

It is also frequently said that buyers may also be waiting for lower interest rates on home loans. This is only partly true.

While they certainly play a role in overall buyer sentiment, especially in the affordable housing segment, lower interest rates alone are not a sufficiently compelling rationale for aspiring mid-range housing buyers to abandon their ‘wait-and-watch’ mode.

If, however, the lower interest rates coincide with a hard discount or some other money-saving offer, many people will certainly come onto the market with a firm intention to finally buy a home.

Busting the Myth Of The ‘Ideal Home’

Sector 150, Noida – Infrastructure Development Driving NCR’s Greenest Sector

Gurugram – The Start-up City

Kolkata Real Estate – A Real-Time Update

A Quick Look at Golf Course Extension Road, Gurugram

3 Factors That Can Negatively Impact Property Investment Profits

The rising cost of money

The Trump Effect On Gurgaon’s Luxury Housing Market

Thane’s Vartak Nagar – A New Real Estate Hotspot Emerges In MMR

Bangalore’s Whitefield: From Anglo-Indian Village To Vibrant IT-ITeS Hub

Home Buying Tips: Examining the ‘Wait and Watch’ Syndrome