Saturday, December 22, 2007
The best option for Middle Class
The priority of every Indian family, irrespective of their economic strata has been to save for the marriage of their girl child, next in line is to plan for a permanent shelter which ostensibly also provides security. However with the turn around in the economy investing in real estate has become top priority for all, if not for personal use at least for the excellent return on investments. Money invested in real estate, for income and capital growth, provides stable predictable and long term income return. However, the most significant advantage of real estate investment is that such investments do not require day to day tracking unlike investment in stocks and shares where rate of interest fluctuates every now and then. This attractiveness of real estate investment would be further enhanced on account of favourable inflation and low interest rate regime. Within the above framework investment in real estate has become a good option . Return from real estate investment is obtained from rental, lease, and possible capital appreciation.The most favoured investment destination in India are the areas with strong Information Technology ( I.T ) business. It is estimated that IT professionals would grow at a rate of 20 % per annum. By 2030 India will need up to 10 million new housing units per year. Rapid population growth, rising incomes, decreasing household sizes and a housing shortage of currently 20 million units will call for extensive residential construction. This is the finding of a study conducted by Deutsche Bank Research.In Delhi which is come to be known as the BPO (Business Process Outsourcing ) capital of the world. The growth is happening in the adjoining areas, called as the National Capita Region , and it is prudent to invest in these areas , mainly Gurgaon and Noida for a good return on investment. In Bangalore real estate prices have already shot the roof and it better be ignored as investment in properties. Kolkata Pune and Hyderabad are the best options and the real estate prices are still at a realistic level.
Boom Time for Hospitality Industry
As per the survey of a global hospitality consultant, M/S HVS International, hospitality industry and real estate India continues to have good time in future. As per the study, Bangalore has enjoyed highest room occupancy of 82% with highest average rental rate (ARR) of Rs.12,100/- The occupancy and ARR, in respect of other cities, such as Kolkota pegged at 77% & Rs.4500, Chennai 79% $ Rs.5850 and Delhi 78% & Rs.9750 respectively.Though traditionally, April to August is considered to be a lean season for hotel industry in India, yet there are certain destinations like Kerala and Goa which are round-the-year-destinations barring weekly fluctuations, therefore there is huge demand for real estate property in India. But as per the statement of Mr.Jagmohan Mishra, V.P(Operations) Bharat Hotels, there is buoyancy in the hotel market of metros. A positive point for Goa is that meetings, conferences, exhibitions as well as wedding markets are usually at an increasing pattern being a sea-shore and congenial climate whereas non-metro tourist destinations such as Agra and Jaipur etc. will face a dip of 25% to 45% in their occupancy and ARR in non-peak season i.e. April to August.
Expanding Islands of Real Estate
The new development zones are a face of new real estate investment in India. Homes were not meant for investment. A real estate investment would invariably mean the islands of development which command premium prices. Hence property purchased in those areas would amount to real estate investment . The more the buyers for the limited space available in those development areas higher is the price. Hence there is sort of a descending-populations phenomenon as far as these islands of development are concerned. First of all what makes these places development areas is an interesting account in itself. First of all they are extensions of established cities, as spill-over effect. We have thus the given cities, the metropolitans turning into megalopolis and then extending into their suburbs. Suburbs, needless to mention, become the apple of the eye for the city-bred, jilted and tired of crowds and the traffic that just won’t abate anytime of the day. The city-wearisome would make a beeline for the suburbs, for low-population areas offer a ready sanctuary for those who want to enjoy the intimacy of a city and want to be away from it as well. Places like Gurgaon or the suburbs of Mumbai are the natural spill-over cities of the main lands. Properties for sale in these areas would be available in much more greater numbers than in the mainland. The choices too are pretty wide and hence the range of buyers. The appreciation shown by Gurgaon Properties and Places in proximity like Ghaziabad, Faridabad, Manesar are surely predict the future of real estate India to be incremental. FDI India or Foreign Direct Investment in India has opened up a channel for overseas investors to park their money in the development areas. This has further helped expand interest of the high-end investors and as a result more and more projects are now a norm of the day. The islands of development thus are expanding into bigger real estate and thence economic zones. Property for sale in India in these economic zones is slotted to be a premium one.
Indian Real Estate Market
Are you searching a property? If yes, than do you know about Indian real estate market? If no, than here is some useful information just for you. How can you get a true value of your money? At the present time we have lots of choices but we have to concentrate on higher benefit through lower risk. Investing in real estate may be a way to get a good value of our investment. It covers minimum risk. On the other hand you must be careful about right investment, right property agent and government rules. With bit awareness you can get maximum return on your investment. Some objects play a big part in real estate market.Generally residential and commercial properties are two types of property, and government has different rules and regulations for those. Indian real estate market is a broad sector, therefore the individual States contains their own policies and rules. Anyone buying a property, have to be aware about state and center government policies, rules and regulation and consult a good property agent, also when you are choosing a property agent, and property developer, you should ensure about experience and prior work of such Agents. You should not sacrifice quality for small amount. Only good quality of product can give best profit and right value of investment.Indian real estate market is one of the intensively booming sector and Indian government is also promoting investors to invest in Indian real estate market. They are also providing investors many kind of facilities, with them investors can think to buy a property. Home loan, installment, subsidy lot's of other procedure are running in property market. Indian bankers are also launching planes for this specific investor. Real estate developer and real estate agent are offering customers number of schemes. Renting is also a new category of them. Estate agent offering rent facility to customers and NRI investors as well as Indian investors are showing interest in this category.
Friday, December 21, 2007
Builders Project In India
Buying a home or a property is one of the most important aspect in one's life, which anyone aspires for. Earlier there were not many opportunities in Indian real estate market and only few people were working on property field but within last few years Indian real estate sector has been expending their boundaries from India to abroad and a new real estate market with various possibilities has been emerging with different types of builders projects in India. At present time, it is easy and more profitable to buy property in India. Now, Indian real estate has became an organized sector and have its own concept. Real estate members started thinking globally, targeting not only Indian investors but also foreign investors through their modern technologies, new style, good market value, reasonable prices and various opportunities.Boom on property business are pressuring other associated business to change their strategy and policies in favor of real estate market. Bankers understand requirement of a new type of investors, who want to invest in real estate market. They are providing home loan to customers on lower interest and under lots of schemes, also providing customers subsidy on home loan, even builders projects in India are also dependent on bankers and their schemes. Government is launching various programs to attract property buyers and appreciating investors to buy property in India.Property or real state sector contains a better money growth than other sectors, and on other hand, risk factor is minimum here. Real estate India, due to this reason is one of the biggest growing sectors of world.Buying property in India is also suitable for investors due to emerging new renting system. After buying a house, one can easily get a well paying renter. A new, modern concept and a new thinking differs from others are making unique builders projects in India
India Property
Real Estate India is one of the main theme of diversification for national and multinational investors with particular emphasis of buying residential & industrial properties in Delhi & N.C.R. The main reason behind this logic is that the economy of India has achieved a sustained growth and is further progressing day by day in all fields i.e. industrial production, information technology, agriculture, real estate, travel and tourism etc. On top of it, the big businessmen of India have given a catalytic effect to its economy by purchasing big industries through out the world in recent past in the field of steel, aluminum, I.T. and other various sectors.Since property in India is becoming a heaven for safe investments, FDI has increased by 100% within two years comprising major share in real estate and infrastructure. Moreover, the country is trying to successfully host the common wealth games in 2010 and cricket world cup tournament in 2011. There is dire need to emphasize the development of real estate and tourism related infrastructure in Delhi & N.C.R to face the national and multinational influx in the coming years, as there will be great need of habitation unit as well as travel and tourism sector. In addition, Delhi has begun the process to bid for the Asian games in 2014.The Essel Group shall develop 45 entertainment centers in smaller cities across the country. To be developed under E. City ventures, the project size is $ 453 million and the company will raise $ 145 million through F11 placement. In addition, zoom motels is in pact for 11 budget hotels in association with IRCTC with an investment of Rs.350.00 cores.Real Estate India market News reported that nine key trends were depicted which will shape the business landscape of the Indian real estate in another 3-5 years ; A shift in the project magnitude getting bigger; Great geographic de-concentration as the focus of developers shifts from metros to smaller cities; Emergence of some national level developers. Consumer acceptability towards leasehold residential Properties will increase significantly. Industry will witness a shift from land-focused transactions to Development transactions. There will be Upward movement of construction giants on the value chain. Emergence of a stronger real estate capital market is imminent.
Commercial or Residential property in India
With the pace of time Indian real estate market is emerging as one of most lucrative options for investment in the world markets. Since the amount of investment is large, the investors first want to know about the credential of developers and the number of project developed by them before taking investment decision. A large number of NRIs, besides their motives of investment, want to buy residential property in India or buy commercial property in India ,as the growing economy of India also offers huge opportunities.According to the statement of an IT professional, India is also offering very bright and challenging prospects equivalent to any other world class universities and that is why the NRIs elite group is in no mood to stay abroad and anxious to come back to India.The present worth of real estate is around $ 16 billion and may reach approx. $60 billion by 2010. Needless to mention heavy-weight investors from across the world may also enter in the fields of real estate and infrastructure.The main factor behind the rapid growth of real estate has been the boom in IT and ITES industry. It is expected that the industries would employ around four million people by 2010 which will considerably increase India’s GDP as well as foreign exchange inflow in future. The other factors, which boost the real estate and infrastructure development in real estate India , are that generally acceptable English language is widely spoken here and talent pool is unlimited as the country churns out around 15 million graduates every year. As compared to U.S, the man power cost is also cheaper in India by 10 – 14%.As per the recent survey, only one quarter of Indian population lives in urban areas whereas China’s ratio is 40% and that of Eastern Europe is two-third. Urbanization in India is still far from over and government is promoting smaller as well as new cities at a faster pace and thus provides a safe heaven for investment in real estate (particularly Delhi & NCR) to the buyers throughout the world
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