Mutual Funds - Capitalizing on Real Estate Potential

The real estate stocks are difficult for an average retail investor to read. Wild swings have been the order of the day. However, mutual funds that have 3-4 per cent investments in real estate stocks allow a small investor to benefit from the surges but remain protected from the troughs.

Making an informed decision is necessary for the success of your investment goals. Mutual Funds (MFs) are certainly among the most sought-after investment instruments in the market but since you have to select from dozens of mutual funds and not all funds perform well, here we demystify the world of mutual fund investing for you.

What are MFs?

MFs are the professionally managed funds that invest in the equities of various companies, including real estate, listed on the Indian stock markets. These funds are governed by the Securities and Exchange Board of India (SEBI) that safeguards rights and interests of retail investors. Any citizen of India can buy mutual fund units that are available at certain Net Asset Value (NAV) declared every day by the fund managing company.

Should you invest in MFs?

As an investor you could well think of investing in the stocks of real estate companies directly. However, in order to make successful investment, you must take a look at the kind of volatility realty stocks witness on the stock exchanges. The Realty Index clocked whopping returns of 48 per cent between Feb 7, 2007 and Feb 7, 2008, on Bombay Stock Exchange (BSE) but it’s not that every investor who pumped in his money in realty companies directly into stock markets got such returns. In fact, there would be many who bought shares at the wrong time only to witness substantial erosion in the value of their investment.

Mutual funds, at the other end, are run by fund managers who have specialized knowledge over stock-market investing, and track market movements on professional basis. This way, they are well-positioned to make suitable decisions to invest and de-invest in the markets as per the circumstances. Though mutual funds do not guarantee a win-win situation all the way, investing in proven funds actually has the capacity to meet your objectives. As a matter of fact, the specialized investment management by mutual funds has evidently produced returns as high as 80 per cent a year, which a naive investor rarely achieves in the course of direct stock market trading.

Types of Mutual Fund

Selecting a mutual fund scheme mainly depends on your risk appetite, investment horizon, and future needs. Once you work out these factors, you can choose a suitable scheme for yourself.

Meanwhile, Brix Research brings you the insights on the various types of mutual funds classified on the basis of their investment strategy and time horizons.

Corpus investment Equity or Balanced - Equity funds park their corpus anywhere between 65 and 100% in equities. Balanced funds, on the other hand, maintain a fine balance between equity and fixed income securities. The latter option offers you security and the rate of return is relatively lower than the equity fund.

Growth or Dividend - Under a Growth fund, the returns generated over the capital invested keep on accumulating, and your cost per unit increases in tandem. You can redeem your mutual fund units, in case you want to book profits. Choosing the dividend option, on the flip side, entitles you to receive returns in the form of dividend that is distributed among the investors, on a periodic basis. Although it depends on the company’s policy, dividends are generally distributed 2-3 times a year.

Open-ended or Close-Ended - On the basis of investment horizon, mutual funds are divided into two categories: open-ended and close-ended. Open-ended funds allow you to purchase and redeem units at any time, however, in case of close-ended funds; there is a lock-in period under which you cannot redeem your mutual fund units for a certain period of time.

Specialty or Diversified - A Diversified Fund allocates its corpus into different sectors of FMCG, Auto, Petro, Pharma etc. In the event of slowdown in one sector, the other one may be able to compensate it. This way an investor invests his entire corpus in different companies and enjoys the advantages of diversification.

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Jaipur - Emerging Stronger From the Financial Crisis

Jaipur, popularly known as the 'Pink City' is one of the most promising real estate destinations in the country today and is considered to possess one of the best infrastructures.

Jaipur is all set to make a mark in the realm of economic growth in the country. The Jaipur Real Estate sector is looking very bright. The state government has taken various steps to make the city the next big destination for the Foreign Direct Investments. These include widening and improvement of major roads with flyovers and railway over-bridges, regularization of residential colonies on agricultural lands and improvement of overall infrastructure.

Jaipur property prices have shot up over the last couple of years due to an upsurge in demand. This has led to initiatives by developers like Parsvnath, Vatika and Ansal, to set up residential, retail, office and commercial spaces in the city. GE capital has moved into Jaipur and this has paved the way for the entry of a number of IT companies like Infosys and Wipro, which has worked to the city's advantage. Moreover, the real estate in Jaipur is steaming with a suit of mega projects. The largest of them include Mahindra's 3000 acre SEZ (Special Economic Zone), Anil Dhirubhai Ambani Group's (ADAG) Mega City Development Plans, and Hero Honda's Rs 700 crore manufacturing plant.

Jaipur properties today have become immensely popular because of the recent influx of investments in this sector. The reasons for this are manifold -

· Close proximity to the national capital, Delhi and NCR regions.

· Promising infrastructural base, an example of which is the existent 8-lane expressway

· Relatively lower property prices in comparison to adjacent metro cities

However, according to Jaipur real estate brokers, the global financial crisis couldn't have come at a worse time. Due to low liquidity of real estate and high mobility of investor capital, the city is witnessing a price correction. There has been a fall of 20 per cent in Jaipur property prices.

According to media reports, inflation has become all pervasive, and small investors especially will take a beating, because with huge debts and rising prices of home loan interest rates, new ventures are but a distant dream. In the past when markets slowed down, real estate developers held back supply. The difference this time according to Jaipur real estate builders however is that, a lot of private equity money has gone into the development of the real estate, which will lead to softening of prices and a consequent increase in supply.

Thus, even with minor hiccups such as the above stated, Jaipur is the place to be right now. It is the focus area of all major developers and it's essential to invest early to get high returns, feel industry experts.

George Gonigal provides you the best and latest info on Real estate in india. He would also let you know about property in jaipur. To know more, visit Real Estate Jaipur

Mumbai’s Residential Segment - Forever Active

Mumbai’s residential market has been active over the past two years. Most of the real estate activity in Mumbai has been in the middle to upper middle class segments, though the premium segment which has limited supply continues to attract buyers. There has been some appreciation in the values of prime properties in South Mumbai, Worli and Bandra areas.

Residential values are on the rise in the premium South Mumbai Properties. Demand continues and there are some new projects coming up in South Mumbai. This includes two towers of 60 stories each known as “S D Towers”.

The North Western and Eastern suburbs continue to be the preferred corporate locations in Mumbai. As a result, the suburban move by corporates has given a boost to residential developments. Mindspace and Hiranandani, on a regular basis, keep coming up with new developments. Relocation of the American School to suburbs has led to many expatriate officials also relocating their residences to the suburbs.

Residential categories all across the city are active. The residential market will see continued activity in the middle-class segment in Rs1-2.5 million (US$ 20,400-51,000) categories. All areas are seeing a rise in values. With office and residential projects going in tandem, real estate developers are now going in for integrated developments. Most large projects have school, college, hospitals etc incorporated as an integral part of the project.

K Raheja Corp, K. Raheja Constructions, Samir Bhojwani, K Raheja Developers, Tata Housing, GESCO, Mahindra & Mahindra, Kalpataru and Godrej Housing are the leading developers active in residential market. Central Mumbai areas such as Wadala (what were they earlier) Sion etc are coming up as preferred residential areas. Navi Mumbai market is witnessing a marginal increase in residential segment due to large off take of residential apartments by Reliance Industries.

George Gonigal provides you the best and latest information on Mumbai Real Estate Builders, If you want to Buy Apartments in Mumbai, he suggests you log on to www.magicbricks.com.

Mumbai Real Estate | Real Estate in Mumbai | Mumbai Properties | Property in Mumbai

Green Canopy Enticing Buyers in Mumbai

Weakening property demands have resulted in Mumbai Real Estate Builders being weighed down with large stocks. But the developers are using their creative skills to sustain themselves in the business. They are coming up with innovative ideas to not let the Mumbai Property market scrub down.

While green buildings have already marked their entry in the Mumbai Real Estate market, the concept of green cover is burgeoning as well. A cover of flora is provided to the client on long terraces and podiums. Depending on the project size the cover spans up to 2.5 acres, research reports. It is provided on terraces, over huge multi-level car parks and ‘relief’ on the middle floors of high-rise complexes.

Talking about the advantages, for the buyer, who is getting more environment conscious day-by-day the benefits are apparent. Besides being healthy the green canopy is also a way to reminiscence the good old way of living in the nature’s lap, feels Mr S Kapoor, Mumbai real estate agent. For the builders, the value the green canvas provides is enormous.

One of the largest such elevated gardens is being developed by Marathon Group. It is a mixed use residential-cum-commercial complex having a built-up area of about 7 lakh sq ft. The elevated garden project is 1.20 lakh sq ft in area. Also, Orbit Corporation has designed a garden and club house on the eighth floor of one of its projects, in addition to roof parks on every fifth floor of another.

According to Mumbai real estate builders, generally, the additional cost of Rs 250 to Rs 300 a sq ft for setting up the green cover has no influence on Mumbai property prices per se, that are in any case ascending Rs 10,000 per sq ft.

Moreover, on the back of lackluster sales Mumbai property rates are witnessing a dip, so to retain the interest of the buyers green canopy has now become a trend among the Mumbai Real Estate Developers.

George Gonigal provides you the best and latest information on Properties in India, If you want to Buy Real Estate in Mumbai, he suggests you log on to magicbricks.com

For a Diversified Real Estate Portfolio

The Indian real estate boom means good news to you. As a young Indian who earns well, has spent wisely and drive his own car, live in his own house and is able to meet daily expenses without too much effort, good returns from real estate investments should typically be next on your investment agenda. So how do you determine how much of your investible surplus you should invest in real estate and how much to put into financial instruments such as mutual funds and Unit-Linked Insurance Policies (ULIPs). How will your investment in a second house allow you to capitalise on the current real estate boom?

“Anybody who is looking at real estate as an investment option is currently at least in the post-35 age group,” says chartered accountant Raghu Marwah. “In the current scenario, other financial instruments score over real estate as a long-term investment option. The returns in the short and long term are more attractive.” Portfolio advisor Sanjay Mittal too agrees. “Investment in mutual funds and stock markets is liquid. But investments in the property market are not. Mutual funds yield at least 40 per cent year-on- year returns. One of my investors put in Rs 20,000 per month in the Reliance growth fund and his returns are currently over Rs. 3.6 crore in 10 years.”

This is way above that in real estate. In fact, he gives a thumb rule based on the worst performing systematic investment plan mutual fund over the last 10 years. If you have invested for over seven years, returns are normally the amount invested multiplied by the number of years it was invested for. In the current scenario there is a phenomenal growth expected in sectors such as hospitality, logistics, warehousing, healthcare, etc. “Investment in real estate mutual funds, especially at a time when the SEBI has framed the guidelines, will be a bonanza for retail investors,” explains a market analyst.

The retail investor has more to look forward too in the future from real estate markets. The Securities and Exchange Board of India (SEBI) has already issued draft guidelines for Real Estate Investment Trusts (REITs) a sound financial instrument in developed real estate markets around the world. “This will open up a class of investment to the real estate retail buyer that was earlier not possible,” says Goel. Till now investors ended up exposing themselves to segments of the real estate market and their risks were high.

REITs function as funds which consolidate investments in property in different segments and geographies and allow the retail investor to truly encash the potential of the entire sector. It thus minimizes his risk. The investor has different yields and rewards to choose from. Recently SEBI has also issued clarifications on the functioning of Real Estate Mutual Funds. According to these guidelines the REMFs have to be close-ended and have to declare Net Asset Values every three months.

While REITs invest in physical properties and capitalise on regular rental returns, REMFs invest in the real estate stocks. So why are people investing in real estate at all? Where did all the hype about real estate growth come from? Explains Arun Vikram Goel, CEO of Dewan Housing Finance Venture Capital, “The hype around the real estate market comes primarily from speculative, extremely short-term investors. They have bought at launch prices and sold as the values of each subsequent release by the developer was raised and encashed their investment in the short term. These would have yielded very high gains. Nobody who has invested for the long term has contributed to the hype because chances are that they have not exited the market and their computed returns are notional. A long-term investor should not be looking at hyped gains.”

Explains another property investment advisor, “At the height of the boom, I had advised various investors to put their money into multiple projects and to recycle the investments for maximum returns. In fact, I managed portfolios of investors who had upto Rs 1 crore to invest by putting in the 10 per cent that was required to book a property and then to exit when the next installment was due. The gains so achieved were then reinvested in newer launches and the money was constantly increasing.”

But the current scenario is different. After 8-10 months of slow-down in transactions, developers are completing projects rather than launching numerous new ones. Even the rate of hike of value is steady and therefore the short-term speculator is kept at bay. Goel explains this phenomenon. “Immature markets tend to behave erratically. Initially rental markets are not stable and more users think of purchase rather than rentals. Once the supply comes in the rental markets pick up and those who do not want to occupy, lease out property. This hike in demand brings in the speculators and short-term buyers. Finally when there is a glut and capital values stop rising, the rentals will rise. But typically yields from residential real estate investments are only 5-6% in stable markets and 3-4% in unstable markets.”

So again why invest in real estate at all? Why not only in mutual funds if you are a retail investor? “To diversify your portfolio,” says Goel. And he has a simple mantra for the retail investor:

” Do not make investments on the basis of hype. Remember that in a market correction hype comes down and you get a realistic picture.

” It is wise to hold a diversified portfolio with real estate as one of the options.

” Time your entry correctly. The hype typically starts when the peak is reached. If you enter at the peak, you will not get the best rates and you may be part of the slide.

During investing for the long-term remember that returns average out. The property advisor, who does not wish to be named, maintains that normally even in weak market cycles property values double in five years. So if you are a 35+ age group, your property value will at least double every five years and you will never lose out. However, the rate of enhancement of the mutual fund investments is greater in the short term. Sanjay Mathur of Pearls Infrastructure says long-term real estate investments can be upto 200-300 per cent if you choose your investment destination correctly. If you invest in what is the periphery of the city today and hence cheaper, but if there is good economic activity there, the returns in the long term are definitely positive. Short-term returns are only high during speculative high-growth immature market cycles.

Goel agrees that the choice of investment destination is very important. “But real estate decisions are often very emotionally driven too. Aspirational considerations may drive the investors to look at property purchase than yield analysis alone. However, if the investor reads the future potential of markets correctly, he can get good returns. Goel sees younger investor opting more for systematic investments in mutual funds that is more speculative but has greater returns.

The REITs, which is expected to be functional by the next year, if the government gets its policy framework right, will attract an older investor who takes less risks, but opts for steady returns.

Source: Indian Real Estate (Vol.I)

Brixresearch.com

Surajkund - Lucrative Real Estate Options

Real estate boom in India has activated many dormant areas to become super- active. Surajkund is currently going through this phase of activation and is ready to cross the threshold in order to emerge as a real estate destination. This boom is further strengthened by the relaxation of Foreign Direct Investment (FDI) in the real estate and construction sector. Additionally, the retail segment has opened the doors for the commercial real estate sector of India. Faridabad is fast becoming the next hot destination for expanding developmental activities. The pace of real estate growth is expected to prosper well as more and more companies are now choosing to opt for Surajkund. The city has become a prominent investment destination due to its proximity to Delhi and also because of the rising values of the real estate in Gurgaon and Noida.

Faridabad has traditionally been an industrial city, with 300 large and 10,000 small scale units and the Haryana Government’s new Industrial Model Township. However, the industrial town of Faridabad is now noticing new residential developments, especially in Surajkund village that spans across 30 acres. Surajkund, already known for its international Mela, is now a residential delight for many. The Surajkund mela was launched in 1981 by the Haryana Tourism and is held in the month of February from 1st-15th every year. This craft Mela (fair) serves as a meeting ground for talented artists, painters, weavers, sculptors and craftsmen from all over India who display handicraft products in the typical setting of a rural Indian market place. The place is visited by number of domestic and International tourists and the foot-falls seems to be multiplying every year.

Green Environment

Away from the hectic and congested life, Surajkund offers an environment like no other place in Delhi. The place displays a sense of peace and traditional touch which is envied by every Delhiite. People are opting for Surajkund for its peaceful natural surroundings. Renowned developers are coming up with township projects in and around localities of Surajkund. The first township project near Surajkund is Charmwood Village by the Eros Group covered in the area of 65 acres. Omaxe, Ansals are also setting up their residential projects.

These attractive townships are sufficient to satisfy the needs of people. Bungalows, apartments and villas are available here with all the modern amenities. The rates of residential properties range between Rs 6,500-Rs 8,000 per sq ft. The rent is around Rs 20,000 for 2 BHK flat and varies on the bases of size and type. Ansal and Crown Plaza have lavishly designed malls catering to children’s entertainment and hospitality, along with other commercial and residential projects. Numbers of other residential projects are in pipeline and soon going to be launched.

Infrastructural developments

Social infrastructure is also developing at the fast pace to support the physical infrastructure in Surajkund. All the national and international based schools and educational institutes have come up in the periphery to benefit the students with a pollution free atmosphere. MNV public school, Delhi Public School and Manav Rachna School are to name a few. Transportation is also improving by and by with Delhi’s bus stand just 1 km from the Surajkund. Local rickshaws and autos are also available for intra-city connectivity.

The property price of Surajkund has increased three times in last couple of years. Planned infrastructure, township projects of big brands, proposed Metro in main Faridabad and rise in the prices of real estate property of other cities, involvement of Haryana government in the overall development of Surajkund make it a good choice for real estate investors.

Magicbricks provides you the best and latest Real Estate in India. To know about Surajkund Properties and Faridabad Real Estate & to buy India Properties visit Magicbricks.

Source: Times Property (31^st August’08)

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Hottest Real Estate Segment

Four key segments constitute bulk of the Indian Real Estate market

1. Housing /Residential development
2. Commercial Office space development
3. Organized Retail Space development
4. Hotel and hospitality market

Going by the current slump in the economic trends which one of these segments are hottest amongst property investors according to your understanding.

DDA Allotment Scheme- is the Buzz for Real?

Recently announced DDA allotment scheme has supposedly given a golden chance to those who are on a look out for a home in Delhi. The flats are available in different parts on the city and are priced at around Rs 7 lakhs-77 lakhs. They are advertised as being affordable. All this is white transaction. Rs 35-45 lakhs is what a HIG at a good locality costs. Do you think for a middle class family this price is affordable? Even if one takes a loan the EMI comes around Rs 40,000-45,000 per month. Do you think it is feasible by a middle-class family?

Do you think the scheme really caters to masses? Do share your views with us.

Big Investment for Indian Realty Segment

Investments are pouring in the Indian real estate segment from all over. Recently, a study by Assocham says that the Foreign Direct Investment in India would touch $25 billion. Recently, Milestone also announced that it will invest Rs 300 million in funding different projects across India.

Do big bucks mean good business and good times for the cash-stripped Indian real estate segment? What do you feel? Share it with us

Is it Wise to Invest Property Now?

The markets world over are stagnating. Indian property market, too, is facing the heat. Property prices have stabilised to some extent. Property analysts still say that the markets will see a vibrant phase in next six months and hence this is the best time to buy property in India.

Market analysts predict that property prices will take off in some time and thus property is a good investment at this point of time. Do you also feel so? Will you invest your surplus funds in the property market now, or wait for better market conditions?

Real Estate Fund

Milestone announced Rs 600 crore private equity find for Indian property segment. The details for this fund are being worked out.

Recently, Donald trump Jr. announced that he will soon float a real estate fund for Indian market. His fund is valued at US$1 billion. He is looking for an Indian partner for this venture, possibly a renowned business family.

Do these developments ring bells for a stagnant market? Do you think that these developments spell good news for Indian market?

Emotional Evaluation of Property Buyers

Many times, while house hunting, a family or an individual tends to fall in love with the property and ends up purchasing it. A research shows that buyers actually buy houses based on their emotions.

Once a buyer has chosen what to buy, they put their logic skills around the property and looks for reasons why it is a good decision. Brokers or contractors will try to sell you the property based on your emotional reactions for a particular property that you intend to buy. But there are always unexpected expenses and delays on such types of projects.

Do you agree with this kind of evaluation on property buying? Do share in your comments.

Green Homes More Popular than Conventional Homes

An online survey by US-based Fireman’s Fund Insurance Company revealed that affluent individuals are interested in replacing heating, cooling and electricity systems with green materials. Respondents have shown interest in energy saving practices like recycling, reusing articles.

In India too, property developers like Hiranandani Group and Lodha Group have ventured into the green buildings arena. Hiranandani Group has announced that all their commercial buildings will be leeds certified.

Would you prefer a green home over a conventional home? Do you practice any energy saving tips at home? Share with us.

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Can Green Buildings Become Popular in India?

Mumbai-based Lodha Group announced a green building project at Kanjur Marg recently. With this, Lodha Group joins the bandwagon of other private property developers who are developing green buildings in India. Hiranandani Group, K Raheja Corp and RMZ Corp have already launched green construction at various part of the country.

Green buildings usually involve an incremental cost of 7-10 % over traditional buildings. This may become a hindrance for small developers who want to build energy efficient buildings.

Have your say – Do you think Indian developers can embrace green building concept, overlooking the financial burden? Share your opinion with us.

Home Loan Rate inTerest Rates: Burdening the Masses?

Higher home loan interest rates will soon become a fact of life from the coming month, thanks to the announcement of the Reserve Bank of India (RBI) for increased repo rate and Cash Reserve Ratio (CRR)

While expectations of a rise for home loans between 0.5% and 1% in the interest are predicted by home loan lenders, some have even indicated a jump of 2%.

This will add to the monthly investments’ increase for an average home seeker who already feels burdened with overall costs of buying a house.

With the cost of living already going up by rising inflation standards, don’t we need an innovative thinking for housing loan solutions offered by government authorities or the developers that may save us from the both financial as well as psychological pressures?

Realty Prices will Increase..?

Experts may be saying that inflation won't affect real estate, but logical reasoning suggests that rise in commodity prices will force real estate developers to raise prices in some way or the other. Since, the operating profits from projects launched after 2005-06 are already low in terms of applied costs and expenditure, a developer has no choice but to escalate his product price.

Recently, the builders association of Bangalore declared to raise property prices all across its projects. Well, this indeed is a formal declaration. Otherwise, most of such moves will be taken without creating any hypes..

What's your take..?

For more details on Bangalore Property Prices, log on to magicbricks.com

Can Green Homes be Affordable?

Building green homes is becoming popular in India. Civic authorities started this trend by constructing energy efficient buildings. These buildings use energy saving practices like making optimum use of daylight, reusing water and conserving energy. The India Habitat Centre at New Delhi is one such building.

Many private property developers are trying to incorporate these features in their construction. The only hindrance is that the construction material required to build an energy efficient building (special bricks, glazed glass etc) is very expensive. Hence the overall construction cost rises.

Will any technological innovation help in reducing costs for green buildings? Do you know of any property developer who is constructing green homes?

Aam admi’s Concern

Inflation is likely to take its toll on the property markets. The cost of living in Indian cities is rising like anything. The RBI in its annual policy for 2008-09, had expressed its intentions to bring down the rate of inflation to 5.5%, however, it had reached record high of 8.4%, averaging between 7-8%.

Rising fuel cost, also, is not a good sign for the markets. The cost of construction will rise.

Certainly, you and I, who could earlier think of buying a residential property on an EMI, will now have to recalculate how much can be paid towards loan installment.

Tough time!!!

Can you Time Real Estate Markets?

Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. When legendary investor and one of the most richest men in the world Warren Buffett says this, it becomes quite clear that investment is not a short term game.

The same holds true for real estate investments as well. Today, the markets are slackening and most of the experts concede that demand for property has been going down and down.

You must be wondering whether it is the right time to buy property or not but believe it you might not be able to time markets. And it happens most of the time.

However, if we look at the long term prospects of the Indian property markets and the underlying fundamentals of Indian economy, investing in property is the option that can bring suitable rewards for investors in the time frame of 5-15 years.

Are Property Prices Coming Down Any Soon?

Property consultant Knight Frank expects further correction in home prices in India. Their recent report suggest that since the volumes of property transactions are going down, hence the asking price for property will also go down. Additionally, over-supply of property is posing as a major reason for the slow down in Real Estate prices.

Recent media reports have also suggested the same trend. Reports suggest that Real Estate Prices in Mumbai, Bangalore, Pune, and National Capital Region have corrected 15-20% in the first quarter of this year. Market-watchers say that this trend will be repeated across the Tier II cities and suburbs too. No wonder property developers are wooing prospective users with all sorts of offers. Some are even offering lower EMIs for flats while some are offering goodies like cars along with property. Still others are wavering off the stamp duty prices.

Are the property prices coming down in your area? Is the property slow down really impacting the end user in a major way? Should the home seekers cheer for some reasons? Is there a possibility of a market dive? Or is this a temporary phase in the housing segment?

Hyderabad to Out-Shine Bangalore as IT hub?

The Nizam's city - Hyderabad - is set to become Cyberabad now. The city's hit-tech airport has added sheen to its developing infrastructure and the Real Estate segment.

Property rates for residential space in the city centre range between Rs 2,200 - 4,500 per sq ft. The capital value for commercial property range between Rs 25,000 - 60,000 per sq yard. Home seekers are now flocking to the city suburbs where the residential space comes for Rs 1,600 - 4,000 per sq ft.

Recently, the Hyderbad Urban Development Authority (HUDA) announced its plans to develop an expressway in the city's outer circle to facilitate transport to these areas. This means, that the infrastructure and real estate segments of the city's suburbs will get a boost. Sensing this boost in development, IT companies like Wipro, TCS, HCL have already established their bases in Hyderabad.

Will all these developments dampen the commercial prospects of Bangalore? Property Prices in Bangalore are way much higher than Hyderabad. Now, when Hyderabad is offering world-class infrastructure, will Bangalore’s popularity as IT destination face a set-back?

Bad is Good

There is nothing either good or bad but thinking makes it so. People may have taken this statement as just another philosophical quote from Shakespeare but there exists many who have taken it as a way of life.

How can you think of buying properties when entire world is predicting stages of depression? Yes, there is a whole class of people who believe that this is the right time to buy real estate. Many parts of the US have been witnessing unusual property buying activities, after the sub-prime crisis. Similar are the trends in England, the second most affected market. According to experts, the reports of slowdown in Indian Real Estate markets are also drawing attention of investors who have been vying for entering into the country at an appropriate time.

Namaste London

After Canada and Dubai, London has become one of the most potential overseas markets for Indian real estate developers. Just look at the response the Non Resident Indian (NRI) segment has been showering over the India-focused property fairs.

Recently, more than 4,000 NRIs flocked the property fair organised by magicbricks.com in London. Sources say that the response was so phenomenal that the developers expect to close deals worth Rs 100 crore in the near future….

Time to Buy Property in Gurgaon

Did you want to buy residential property in Gurgaon but kept on postponing your plans due to soaring real estate prices? If yes, there is a good news for you…

Property prices in Gurgaon have stabilized. According to Real Estate Brokers, capital values have not shown any upward trend in the past one year. That's why, people who were not in a position to time the markets earlier are now stepping forward.

To keep the balling rolling, the real estate developers have also been tuning their marketing plans as per the trends…

Landlords Can Evict Shop Tenants: SC

The Supreme Court has given a judgment that changes a 50-year-old law and would help landlords evict tenants in prime commercial zones like Connaught Place, Karol Bagh, South Extension and Walled City who, in most cases, have been paying a few hundred rupees as rent for decades.

The rent law — Delhi Rent Control Act, 1958 — was a handicap for the landlord as he could seek eviction of the tenant only from residential premises, that too provided he proved this was required for his personal need.

Tough times for Indian Real Estate Companies

Subsequent to the US sub-prime crisis, Indian real estate companies have shed almost 35 per cent of their market capitalization, reports say. Most of the listed real estate companies are currently valued at a rate 65-75 per cent less than the value they were holding prior to the meltdown in the US market.

Earlier, it had been said that the developing countries of Brazil, Russia, India and China won’t be affected much of US sub-prime crisis, however things have started turning sour just a few weeks down the line.

The story does not end here. The Indian Real Estate industry is likely to be in a much difficult phase with the recent hike in Cash Reserve Ratio (CRR)…

Hitech City in Kochi

Sobha Developers is developing--Hitech City in Kochi--its most ambitious township project, so far. The Rs 5,000 crore project covering about 450 acres is estimated to be completed in eight years time. And given that the high-tech island is aiming to be a knowledge hub, that is exactly the kind of profile they are also planning to attract. From industries, IT parks, biotech companies to hospitals, apartments, hotels and swanky malls – the hub is set on the lines of a mini-city. Those who really have deep pockets can afford an apartment that will offer them a sea-side view.

Gurgaon Real Estate: Great Plans Ahead

The biggest irony of the real estate development story in Gurgaon is the surmounting pressure on the support infrastructure of the city. However, the builders have found their way out and have started the journey of becoming self sufficient in terms of power and water. Some of the upcoming townships will now have rain harvesting plants, water treatment techniques and even the facility of 100 per cent power generation within the township itself.

Developers like DLF, Unitech and Ansal have reportedly laid plans to have power-generation plants for their townships, and more emphasis will be given on non-conventional energy resources like solar power. Great plans indeed.

Penal Provisions Against illegal Colonizers on Cards

The Municipal Commissioners of Madhya Pradesh cities, in a meeting held in state capital Bhopal on March 18, suggested the State government that penal provisions should be made to ensure strict action against illegal colonizers in urban areas.

They should be blacklisted and their names displayed on the websites of the concerning municipal corporations, said Nikunj Shrivastava, Bhopal Municipal Commissioner, adding that common people should be cautioned against such colonizers.

State Minister for Urban Administration Narottam Mishra and State Finance Minister Raghavji were present at the meeting. Mishra said responsibility of the concerning Municipal Commissioners and the officers in charge of the colony cell should be fixed to prevent illegal colonies in the cities.

Investor Unaffected of Goa Real Estate Controversy

NGOs or some residents may be opposing real estate development in Goa, but the fact is that their protest has hardly made any impact on the investor sentiment, developers building properties in Goa say. The argument that commercial development will affect Goa's ethnic culture does not hold water.

You see other beach-capitals of the world like Mauritius, Seychelles, Bahamas and so on and you will find a hell lot of commercial development there. In my view, it is some groups that have vested interests in it, a developer said, adding that "there are a number of properties that were occupied by people after the Portugal handed over Goa to Indian government and those people may now be concerned while the property markets get organised in the state."

Beaches, Beaches and Beaches

Goa real estate market is all about beach side villas. According to property consultant Sunil Chheda of Fair Deal Properties,” The going rate for the sea side villas is anything between Rs 5-10,000/sq ft. these are typically built on a land area of 1-2 acres with a built up area of not less than 7,000 sq ft. It can be more or less depending upon customer’s taste and needs. They are build according to their personal style and preferences.”

However, not every beach can have sea side villas. The beach should have an even terrain and not a mountainous one. It should facilitate adventure sports and water sports activities and not a rough rocky terrain. These villas are especially found in North Goa. Please add on if you have some more information on the region..

India, a Golden Bird

What is common between KP Singh and Donald Trump? Real estate, of course. But what is noticeable is the kind of difference this Indian man has made over his American counterpart.

The DLF Chief Singh has left Trump Group founder Trump far behind. In the latest ‘World’s Richest’ list released by Forbes magazine, Singh has emerged up as eight richest man in the world with his personal corpus stands at $30 billion, which is 10 times more than the $3 billion empire of US-based real estate tycoon Trump.

To the other end, if we combine the corpuses of Mukesh Ambani, who is 5th richest man in the world with $43 billion, and Anil Ambani’s $42 billion, Ambani family is far rich than world’s richest man Warren Buffet, whose personal worth is calculated at $62 billion. Who says India was a golden bird?

Here’s the Forbes list:
1. Warren Buffett (US): $62 billion
2. Carlos Slim (Mexico): $60 billion
3. Bill Gates (US): $58 billion
4. Lakshmi Mittal (India): $45 billion
5. Mukesh Ambani (India): $43 billion
6. Anil Ambani (India): $42 billion
7. Ingvar Kamprad (Sweden): $31 billion
8. KP Singh (US): $30 billion
9. Oleg Deripaska (Russia): $28 billion
10. Karl Albrecht (Germany): $27 billion

High Rise Buildings Gain Ground in Ahmedabad Once Again

The rental values across Ahmedabad's localities, according to brokers, have grown on an average of 20-100 percent in the last four months, from Nov to Feb. The escalation in apartment rentals shows that the reversal of fear psychosis for high rises post Bhuj earthquake. Before earthquake, everybody preferred high rises.

There were few takers for first floor and they all wanted to go in for upper storeys. However, it was just the reverse case after earthquake where staying close to the ground was preferred. Once again people are preferring hi-rise living in Ahmedabad. Comments invited…

Vaishali Emerges as Second in Line of Preference After Indirapuram in Ghaziabad

Surrounded by number malls like Galaxy, AEZ Carnival County, Ansal Plaza and Haldiram's, etc Vaishali is gaining preference and surfacing as the next best residential destination after the much sought after Indirapuram in Ghaziabad.

According to reports, Vaishali's capital values have shown a consistent increase since March 2007 although the capital prices of apartment dipped in October. Afterwards they have shown a steady increase though in February, the lower price range has marginally decreased but the upper value registered an increase.

In case of builder floors the values have shown a dip as compared to May, August but since October they have either remained constant or have shown an increase in the value margin.

What in your view is contributing to this state of market? Comments invited…

Faridabad Plot Values on Rise

Residential real estate values have increased in the posh sectors of Faridabad especially Sector 14, 15, 16, and 17, from 20-40 per cent in the last ten months, according to MagicBricks Research. For instance, the plot capital values in Sector 14 have increased from Rs 25,000 per sq yard in May 2007 to Rs 35,000 per sq yard in February 2008. Brokers attribute the increase in these values to the fact that the occupancy levels are high at 70-80 per cent and these sectors are buoyant with many transactions in real estate happening, and the values increasing at regular intervals.

Plus these areas are better provided with infrastructure facilities like water, electricity, drainage, sewerage etc as compared to other sectors. Please add to the blog if you have some information over the same…

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Property Values Dip in Noida

There had been a decline in plot capital values in the last 6 months by 20-40 per cent across most sectors in Noida such as Sector 11, 12, 19, 20, 22. Capital values all across are stabilizing to an average of 10-15 per cent with the fluctuations in share market the properties are going steady. The loan conditions are tough so the properties are not much appreciating; they are stable but not increasing much, from the past 4-5 months.

The dip was maximum in sectors-19, 20, 22 in December to almost 25-40 per cent. The values however revived in last 3 months by approx 12-15 per cent. However prime sectors such as Sector 14A, 15A etc continue to command high plot values at Rs 74,000-1,60,000 per sq yard for the month of February.

Availability of Property in Delhi

Prime real estate in Central and South West Delhi has witnessed steady purchasing activity. This may be attributed to the fact that the availability is limited in South & Central Delhi. Many investors, High Net worth Individuals HNI as well as NRIs are focused there. Most of the sales have been in the small developments on old plotted areas where developers are building single floors.

There is hardly anything available for the middle and the lower middle classes. There is nothing in studio apartment or the 2 bedroom category. The actual buyer is definitely there but is waiting for values to stabilize or interest rates to dip.

Delhi Real Estate- Knowing Panchsheel Park

Located at just 15 kilometers away from the New Delhi Central Business District Connaught Place and other commercial places, Panchsheel Park occupies a prime location in the real estate landscape of Delhi. The twin colonies of Panchsheel Park and Panchsheel Enclave came up between 1965 and 1970 while Soami Nagar and Sarvapriya Vihar were established in 1970s.

The housing infrastructure of Panchsheel comprises of independent houses, villas, builder floors, residential apartments and DDA flats. Price of Properties depends on the area, size, quality and location of the property. The state of water and power supply, sewerage system and roads is quite satisfactory in the colonies and the safety and security of the residents is also well taken care of.

Organised Retail Transforms Lucknow Property Markets

Establishment of shopping malls has successfully changed the face of real estate in Lucknow and improvements are quite visible on the aspects of design, project-size, quality of construction, and other aesthetic and safety elements, in the upcoming projects. “Popularity of shopping malls in Lucknow has played major role in driving developers for producing high-quality properties in the city and people in Lucknow have become forward-looking and demand best of facilities.

The impact is visible not just on commercial properties but residential sector to a large extent, he informed. Nevertheless, Lucknow has shrugged off its past image of a slow-moving city to a fast-developing city, and an overall change has been witnessed in the outlook of the residents. “It is more about growth now,” Mohd. Afaque, a senior resident of Lucknow sums up the story in his own way.

Indian Real Estate Markets Ahead

The landscape of the Indian real estate market is changing fast, as it is poised to emerge as one of the most preferred investment destinations for global realty and investment firms. See where the contours, according to FICCI, are expected to change in the next 3-5 years:
• Developers till now concentrated on metros moving toward smaller cities also shift from the dominance of regional players to national players.
• Large Indian groups consolidating their business to emerge as market leaders.
• Project size enlargement with a focus on product differentiation & quality.
• Shift from land transaction to development transaction
• Change in ownership to leasing.
• Correction in supply format from investor to consumer driven.