India ranked 20 among global real estate market, says C&W

While investments in institutional sales saw a decline of 37 % over last year, private equity investment in real estate in India increased by 7% in 2012 and was noted at Rs 6,200 crore.
"Investment in ready income generating / operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment.

 With increase in number of high value transactions in this sector, the market is moving towards a mature phase,"said Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield,
Majority of the Private Equity in Real Estate (PERE) investments were noted in ready income generating / operational office assets at Rs 3230 crore, an increase of 34% over 2011. Under construction residential projects continued to witness the highest number (25) of PERE deals valued at Rs 2850 crore in 2012.

Global Property investment market recorded a modest 6% rise in activity during 2012 with volumes reaching US$929bn. China remained the largest global investment market overall due to surge in land sales seen in late 2012 followed by US and UK respectively. " In what was a difficult year in most markets, investment volumes rallied in Q4 signaling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14% to exceed $1 trillion for the first time since 2007," mentioned the report.

Office rent cheapest in Chennai among big 4 metros

MNCs looking to set up a base of operations in India would do well to look at Chennai, as the city has the lowest office rental rates among any of the big 4 metros in India. But the city also witnessed faster appreciation in rental values during the year ended December 2012 vis-a-vis more expensive cities like Delhi and Mumbai, as per real estate consultant Jones Lang Lasalle’s latest “The Office Index” report. 

In terms of the capital value of property as well, Chennai was ranked lower than the other three big metros, making outright purchase of an office space a more feasible prospect.

According to the report, expansion by MNCs remained slow in India and China during the fourth quarter of 2012. The office market in general was in favour of landlords, but corporate occupiers have become increasingly reluctant to pay high rents. 

Consequently, rental growth is likely to be limited in most markets. But capital values are expected to increase faster than rent in many markets, supported by solid investor interest.

Buy cheaper flats in a resale

After the failed predictions over the past couple of years about a fall in property prices, you are more likely to witness the prophesied Second Coming before the promised correction. So what should cash-conscious buyers do? Wait endlessly in the hope that realty prices falter or take the bait of glossy schemes offered by developers? While most such offers for new houses seem tempting, you won't derive any real benefit.

Fortunately, there is a third option: cheaper flats in the resale market. No, these aren't old, mouldy apartments in decades-old projects. Quite a few of these houses have not even been lived in, but you can still get them at a discount to similar houses within the same project or vicinity. If you're wondering why resale flats are cheaper than the new ones being offered by the developer, it can be due to various reasons. One of them is that these houses have been snapped up by buyers and investors during the pre-launch phase with the intention of selling them after about three years to earn a profit. At this stage, they were only required to make the down payment.

"Many investors book a property at the initial stage just to make a small profit. If they want to make a quick exit, they will price it cheaper than the one offered by the developer, for a faster sale," says Yashwant Dalal, president of the Estate Agents Association of India, an apex body of real estate developers.

Another reason is that a lot of investors who book flats during soft launches are offered heavy discounts by builders. "To get funding before construction commences, builders offer investors at least a 20% discount to the prevailing market rate," adds Dalal.

So, even if such investors sell the flats at a price lower than the one offered by the construction company, they make a hefty profit. While individual buyers readily make the down payment, a few find out that their finances are strained when they have to start paying the home loan EMIs after the construction is complete, especially if they are also paying a rent. In some cases, they find another project that is more to their liking. Obviously, in either situation, the only option is for them to sell the current house as quickly as possible to repay the home loan, even if it means earning a smaller profit than the one they had hoped for.
Original source: economictimes.indiatimes.com

Luxury Homes & Real Estate

"Luxury real estate usually does well during recession or sluggish environment as we are seeing even now. In a highly uncertain environment , the super-rich clientele prefers to put their money into these hard assets than any intangible service or instruments ," says Sanjay Dutt, executive managing director a South Asia, Cushman & Wakefield.

Sales of luxury homes across big cities such as Mumbai, Bangalore, Gurgaon, Chennai and Pune have been moving up along with 6-23 % year-on-year price rise in this segment, reaffirming the upward movement. Mumbai, for instance, sold 789 units against 652 new launches; Gurgaon sold 792 compared with new launches of 726 units, while Chennai saw sales overtaking new launches by 17%.

Although Bangalore and Pune have seen sales numbers lower than new launches, prices here too have risen by around 10% from a year ago. "Real estate continues to be the most preferred asset class with rich Indians due to higher returns. However, clients are only investing with reputed builders, who can deliver on time," says Rajesh Iyer, head a investments and family office, Kotak Wealth Management.

 This was the picture at a time when other real estate segments have remained sluggish for most part of the year forcing developers to offer discounts and other incentives to attract buyers. "Luxury home is the reflection of social status and lifestyle for the rich, which they can flaunt to friends and family. While some park money in buying luxury homes for mere investment, others are upgrading to get like-minded neighbor’s," says BM Poonacha, head aland and special projects at LJ Hooker Project Marketing India.

Mumbai, the country's most expensive property market, registered sales numbers which were more than supply figures, thereby reducing the existing inventory in this segment. Although launches here in 2012 had almost halved over 2011 due to absence of civic approvals , sales numbers moving above supply along with 23% rise in prices, indicate the response. Omkar Realtors & Developers, that launched four projects, the most by any developer in this segment in the past year, is preparing to launch super-premium apartments at Worli in central Mumbai which will come with a price tag upwards of Rs 10 crore. High-end apartments priced above Rs 3-30 crore coming up across Bangalore, Chennai and Gurgaon have become hot spots for investment for the A-list.
Original source:http://articles.economictimes.indiatimes.com

Tips to buy a resale property

DOCUMENTATION AND PROCEDURES:

All the documents that are applicable for a primary residential property sale would be required for a clear resale flat transaction, as well. The seller should be able to produce all original documents.

The buyer should establish the existence of a proper Society. The original sales deed and the Society share certificate are most important, since the transaction cannot proceed without them. Also, the buyer should bear in mind that in the case of a resale property , proper transfer and re-registration is necessary. The documents required for registration of residential flats, apart from the sale deed, include a letter from the society that reflects details such as the number of floors in the building, the construction year, the apartment's built-up area and the number of lifts in the building.

Also required is an assessment bill to the Society from the municipality in question, a NOC from the Collector if the building exists on Collector's land, a copy of the property card, and a receipt for the payment of registration fees. In addition, the buyer of a resale flat should ask for a clear ownership history if the residential property has changed hands before.
The local registrar will establish the authenticity of these documents. If one is buying the property via a home loan, the bank will run a routine due diligence .

ARE RESALE PROPERTIES ALWAYS CHEAPER?

Not necessarily. In the larger cities, new residential property supply is scarce or non-existent in many central locations. In such areas, there would not be a question of discounts on resale properties. Discounts are more prevalent in areas where the market is more competitive. That said, resale properties are sold either by the primary owners or by investors. As such, there is a higher possibility of flexibility in payment terms.

POINTS TO NOTE:

There are certain challenges that a buyer of a resale flat may face. This could include lack of proper chain of documentation, especially in cases where the property has changed hands more than a couple of times in the past. If the property is over 18-20 years old, it is possible that it was never formally registered in the first place. Registering it at the current point in time would put the onus of paying the stamp duty in arrears on the buyer.

There may also be additional expenses for repairs to masonry, plumbing , electrical wiring and fittings. Obtaining a home loan for a property which is anywhere close to 50 years of age can also be a challenge.

Finally, one should bear in mind that the Indian residential property market is in a constant state of evolution. One is unlikely to find the facilities and amenities that are available in the newer projects on the market in an older building.
Original source: articles.economictimes.indiatimes.com

Vaastu:Secrets of Living Healthy and Wealthy

Front door or the main entrance:

The most important part of a house is the main entrance, as the main entrance is known as the mouth of the house which brings energy inside the house. Also, entrance plays an important role in Vastu as it is the key source for energy flow.

Do’s

To attract wealth, it is better to make your front door look distinctive. Apply color which is different from the rest of the neighboring walls. The entrance should be clean and clear, it should look spacious. Also, the entrance needs to be well connected with the rest of the home so that the flow of energy can reach to each and every corner of your home.

Don’ts 

According to Vastu guidelines, it is always better to avoid buying property which has a door facing south-west direction. As negative energy enters the house from south-west direction and also brings in struggle and misfortune for the people who live in. The main entrance should not be blocked with any kind of things as it obstructs good energy inside the house. Avoid keeping slippers and shoes around the entrance as it dilutes the entry of positive energy which can get mix up with the dirt and the smell of shoes while entering your house.

Take care of your accessories: 

Clocks inform us about the perfect time. Ensure that all clocks in your house are working properly. If not, then it should be fixed as soon as possible. It means clocks that do not work bring bad luck to your finances. And, clock that runs slow signifies that are running behind your due dates. Also, if you are placing a mirror in your house, place in a position that will give the reflection of your cash box or locker. It is said that mirror helps doubling wealth and opportunities, according to Vastu guidelines.

Keep your windows open:

Windows allow natural lighting to enter the home. In Vastu, proper natural lighting and ventilation holds an important position. It is important to check that proper sunlight is entering into the house and also the house has good cross ventilation option. House with north or east facing windows are ideal as per Vastu guidelines, as morning sunlight brings positivity into the house. South or west facing windows are not recommended in Vastu as afternoon rays are not good.

In Vastu, it is advisable to keep the windows in sparkling condition to allow wealth as dirty glass is likely to restrict the money movement at your home.

Keep fish aquariums:

Fish aquariums play a positive role to attract wealth. It is better to keep aquariums at home for the smooth flowing of finances. You need to choose ornamental fishes or active and healthy fishes for your aquarium and ensure that the fishes are strong swimmer. The constant movement of fishes will help to bring the energy of wealth on a steady flow. Adding to it, always keep the water clean and aerated.

Placement of furniture:

People believe that obeying Vastu guidelines can bring peace and prosperity inside the house. Placement of furniture according to Vastu is also one important thing to look out. In a room, it is better to keep sofa set in south and west direction. When it comes to bedroom, bed should be placed in southwestern direction. Almirah with jewelry and valuables should be placed in southwest of the room leaving southwest corner and the room needs to be opened towards North. The most suitable place to keep dining table is the north-western side of the kitchen, dining room or the living room. To bring more concentration, study table needs to be placed in the North or eastern side of the room.
Original source: siliconindia.com

India's Tallest Residential Towers

1) The Imperial Twin-Towers

Standing at a height of 833 feet (254 metres) the Imperial is one among the tallest residential building in India. This twin-tower residential skyscraper is located in Tardeo, South Mumbai. The Imperial was the tallest residential building in India till Palais Royale came up in June 2012. Besides, each apartment in this building offers outstanding view of the sea. The 4-bedroom apartments spans over nearly 3415 square feet of area couple with world-class amenities. Imperial is designed by Hafeez Contractor, a Mumbai-based architect and the project brought him appreciation and recognition.

2) Palais Royale

The luxury residential skyscraper Palais Royale is located in Lower Parel in Mumbai. It is a tallest skyscraper in Mumbai which is still lying under construction and is estimated to complete soon. This building is coming up on the land parcel which was formerly owned by Shree Ram Mills in Mumbai. 100 apartments spans over 8700 square feet and 14000 square feet of areas and coupled with world-class amenities. This super luxury residential space has a floor plate of 50,000 square and the premises include facilities like spa, cricket pitch, a cinema house, three swimming pools, badminton court, football pitch and so on. The total residential space of this building is around 88 lakh square feet and it is the first tallest skyscraper in the country that has obtained Leadership in Energy and Environmental Design Platinum rating for environmental sustainability. Besides, the architectural and conceptual design of this building is purely based on Vastu Shastra, the Indian form of Fen Shui.

3) Lodha Bellissimo

Standing at a height of 222 meters (728 feet), Lodha Bellissimo, the residential skyscraper topped out the list. This super luxury high-rise apartment is located in Mumbai with an expected floor count of 53 floors. This under construction project is likely to be completed by this year end. This 48-storied residential building is offering luxury at its best. Each apartment is packed up with finest amenities and stunning view of the sea and landscape.

4) Planet Godrej

 Residential tower Planet Godrej is one among the tallest buildings in the country. This tower is standing at a height of 181 metre and 51 floors high. Located in South Mumbai, this luxury residential tower spans over 9acres of beautiful landscape. Planet Godrej was designed by DP Architects, a Singapore-based prominent developer, who for this project, has bagged PINNACLE Award 2006, presented by Zee Business.

5) Antilia

The famous 400,000 square foot residential building, Antilia needs no introduction, it is as iconic as its owner. Antilia belongs to Indian billionaire Mukesh Ambani, the chairman of Reliance Industries. The palatial abode is the personal home of Mukesh Ambani and signifies luxury which offers world-class amenities under one single umbrella.

 Distinctive features that distinguish this house from the others include health spa, parking space for 168 cars, multiple swimming pools, a yoga studio, nine elevators in the lobby and a floor with vehicle maintenance facility. For entertainment, Antilia offers some of the few interesting features. This mansion has ice-room with man-made flurries exclusively designed for Ambani kids, nine elevators in the lobby, one floor of hanging gardens, 2-storey recreation center, ballroom, guest suites and theater with 50 seats.

Although, Antilia is 27-floor high, yet some ceilings are of double heights, it looks closer to the size of a 40-floor building. It is located in Altamount Road in Mumbai. Altamount Road is the second expensive locality in India, where the property prices touch sky.

6) Shreepati Arcade

Residential Tower Shreepati Arcade which was completed back in 2002 has made through the list of tallest residential skyscrapers in India. This tallest building is located in Mumbai’s Nana Chowk locality which lies in the city-centre. Shreepati Arcade is standing at a height of 153 metres (500 feet) and 45-floors high. Six high speed elevators are installed in the building which can reach at 45th floor within 35 seconds. Some of the distinctive features include automated fire safety system, sprinkler system, kitchen and main doors are about two hours fire rated and the building is earthquake resistant. Apart from basic amenities, the club house of this residential building includes gymnasium, sauna & Jacuzzi and so on. Surprisingly, the building has issued a strict rule for its residents where they cannot eat non-vegetarian foods within the building as residents have to be vegetarian.
Original source:siliconindia.com