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.
Wednesday, June 4, 2008
Friday, May 23, 2008
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?
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?
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?
Friday, May 9, 2008
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.
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.
Sunday, May 4, 2008
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….
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…
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…
Friday, April 18, 2008
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.
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)…
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)…
Sunday, April 6, 2008
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.
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.
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