Trends to redefine the Indian Real Estate Market 2018

Jan 8,2018 / By Priyanka / No Comment

In 2017, the Indian Real Estate sector has seen a substantial alteration with the implementation of reforms such as GST and RERA. This year look promising for good supply of houses across major Indian markets, and the growth prospects look brighter than ever. The Act was formulated to streamline and standardize the unorganized real estate structure in India.

Upgrading in the regulatory framework has built up an attractive destination for both global and Indian investors. So far, Indian real estate has attracted USD 32 billion in private equity and due to transparency, NRIs find India’s real estate market more trustworthy.

Developers will re-structure their business models, developers launched many projects and there was no assurance of completion of the projects. Now, through the RERA act, a time limit has been set for the projects to be completed. It will force developers to upgrade their business model. The developers will require bringing more clarity as well as liability in their system, and do a lot to upsurge consumer confidence.

Also, the Goods and service tax (GST) as well as the Benami Transactions (Prohibition) amendment act; will have a major impact on, how developers run their business. Developers should bring changes in their business models to maintain in the market.

The REITs will have a crucial and long-term impact on developers, with the choice of either risking or ‘corporatizing’ taking over, with their larger counterparts.

Here are the trends that are expected to reshape and redefine the sector:

1. Real estate developers are changing their business plans- Recent implementation of reforms such as the Benami Property Act, RERA, and GST have enforced a greater level of accountability, transparency, and quality-on-time on the part of real estate developers. Projects are therefore much more trustworthy and meet the set standards.

2. Workspaces are evolving into ‘co-working’ spaces- With the fast-evolving co-working space culture in India, regular office spaces will give way to more hybrid co-working spaces. Corporates and co-working operators will now work one behind the other, which in turn will benefit the real estate economy and also increase productivity, cost-efficiency and employee retention.

3. FDI into real estate will increase further- The launch of Real Estate Investment Trusts in 2017 enhanced transparency in real estate transactions, the real estate sector will draw even more worldwide investors than before.

4. Affordable housing- There is a target of building one crore new houses in rural India by 2019. The Housing for All scheme has been fixed for 2022, and affording housing in India is receiving the much-needed infrastructural attention in order to meet the target set.

5. REITs will permit substantial growth- It is expected that REITs will add considerable growth in India’s growth story. As progressively office spaces in India become REITs complaint, a variety of smaller investors will put in their money in return for regular dividends at relatively low risk.

With the growing trends in real estate segment, investors are now moving for investment in small scale as well. Real estate investing, even on a very small scale, remains a proven means of building an individual’s cash flow and wealth.

RERA was formulated to streamline and standardize the unorganized real estate market in India. However, once the market is standardized, there will be an array of opportunities to scale-up. With untrustworthy and deceiving developers out of the market, there will be only one way to go, forward.

Buying property Infrastructural development Real Estate Smart Residential Living

Violet line of Delhi Metro to boost the real estate market of Ballabhgarh

Jan 2,2018 / By Priyanka / No Comment

The Violet Metro Line of the Delhi is set for the development of the growing industrial hub of Ballabhgarh in Faridabad. The 3.2-km elevated corridor will have two stations and is expected to meet the extended deadline which is June 2018. Earlier the launch was planned in December 2017.

This corridor will extend from the 13.8-km Badarpur – Escorts Mujesar stretch which was opened to the public in September 2015. The other end of the line stretches up to ITO in Delhi and there are plans to connect it to Kashmere Gate on the red line.

The development will significantly benefit travelers going towards Ballabhgarh as the destination is a noticeable business hub which houses several educational institutions and industries. It will also increase employment opportunities.

Recently Ballabhgarh was renamed as Balramgarh. Chief Minister of Haryana, Manohar Lal Khattar had publicized many developmental projects for the area declaring it as a developmental zone.

The cost of the metro project from YMCA Chowk to Ballabhgarh is Rs 580 crore with around Rs 95 crore provided by the central government.

YMCA Chowk-Ballabhgarh metro project is one of the two-line extension projects worth Rs 1,090 crore sanctioned by the Public Investment Board (PIB) of the Ministry of Finance. The other is an underground corridor from Najafgarh to Dhansa Border. The metro trains on the Badarpur-Faridabad runs on solar power which is a prominent feature of the project.

The project began in 2015 but there was a delay caused due to legal disputes over land required for construction of pillars for crossover track near the main Ballabhgarh station as well as removal or shifting of water and sewer pipelines.

Connectivity and infrastructure in Ballabhgarh

Ballabhgarh is linked to the emerging NCR hub of Sohna near Gurgaon via the 35-km long Ballabhgarh-Sohna (BS) road. The nearest railway stations are Ballabhgarh railway station and Faridabad NW TN railway station.

The area houses reputed educational institutes like Comprehensive Rural Health Services Project (rural field practice area of AIIMS) or called Civil Hospital and Cement Research Institute of India. Besides, the YMCA University of Science and Technology is less than five kilometers from the locality. Reputed companies like IBM and Cognizant also have their offices nearby.

Healthcare center, primary schools, and retail shops are available in the surrounding areas. The government had announced to grant Rs 10 crore for the rebuilding of dilapidated bypass of Faridabad and restoring of tube wells in the area.

Real estate in Ballabhgarh

Settled on the National Highway-2 about 30 kilometers from Delhi, Ballabhgarh is more of a commercial hub and residential growth is not as noticeable as in the neighboring areas of Sector 56, Sector 76 to Sector 88 in Faridabad.

These neighborhoods are active residential colonies with plenty availability of affordable homes. There are many such upcoming residential properties in the vicinity launched by local developers. The average capital value of residential properties in Ballabhgarh is Rs 2,800 per sqft. The cost of 2BHK apartments starts at less than Rs 20 lakh for an average size of 850 sqft.

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Area in Focus: Kompally

Dec 22,2017 / By Priyanka / No Comment

Planning to purchase a 2 bedrooms apartment in Hyderabad within a budget range of Rs 30 lakhs to Rs 40 lakhs at a location having smooth connectivity with the IT Hubs close by then Kompally should be the option for you.

Properties at Kompally are gaining momentum due to their affordable property prices and developing infrastructure. The price points offered by projects in this locality make a viable proposition for property investors, too.

Kompally is approximately 28 kilometers away from commercial business districts of Hitech City and Gachibowli, but, the distance can be covered within 45-60 minutes all because of the Outer Ring Road (ORR). Kompally residents can quickly move around within the city without facing traffic issues.

Kompally is an ideal choice for denizens working in Secunderabad. It is located just 14 km from Secunderabad, and perhaps this is the reason why Kompally has a large number of property buyers from Secunderabad.

Moreover, the affordable property price is driving residential properties in Kompally and people from Hyderabad are not hesitating to opt for this location either.

The locality offers another great opportunity for those who have a dream of building their dream house accordingly on an independent plot. There are gated-community projects which are selling plots in the range of Rs 1,500-2,200 per sqft.

Currently, these gate communities are under construction, and you may face problems related to roads Maybe this is the reason why property prices are less here. Once these societies get connected via well-build roads, the property prices will shoot up.

While the physical infrastructure within the area is developing very fast, there is no second thought about the quality of its connectivity to the other parts of the city. Residential properties in Kompally are easily accessible through the National Highway-7 (NH7) which falls near the locality. The Andhra Pradesh State Road Transport Corporation (APSRTC) operates buses in this locality also so commuting is not a problem for the people residing here.

The social infrastructure in this area is also developing gradually with educational institutions, health care centers, supermarkets etc which is attracting more and more people to move in Kompally

There are plans to build 14 gateways in Hyderabad, of which one will be coming up on Medchal-Kompally Road. This project will make Hyderabad safer and secure by keeping a track of the incoming and outgoing traffic. This infrastructural development might not directly influence the real estate market of the area but it will positively add to the locality’s overall appeal.

Some of the ongoing projects in Kompally within a budget range of Rs 30 lakhs to Rs 40 lakhs are below:

Hivision Residency, MYPI Green Castle, ARR Fortune, SLN Urbana, PSR Kalanjali and RK Panchsheel Park

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Will Versova-Bandra Sea Link impact the Mumbai Real Estate Market?

Dec 19,2017 / By Priyanka / No Comment

Maharashtra government has given administration approval to the much-awaited Versova-Bandra Sea Link. The proposed sea link would be 9.2 km long and would serve as an extension to the existing Bandra-Worli Sea Link. Once the sea link is operational, the commuters traveling to south Mumbai from Western Suburbs can use the sea link to travel which would have connectors at Bandra, Otters Club, the Juhu Link Road and the Versova Link Road and can skip the Western Express Highway

Sea Link to reduce the traffic congestion

Currently, commuters have to take the Western Express Highway to reach south Mumbai from the western suburbs and have to pass through choked areas such as Andheri, Borivali, Juhu, Mahim, etc. Usually, the commuting time is around 60-90 minutes during peak office hours. It is expected that the traveling tome will reduce to 12 minutes with the new road coming in. The connectivity is projected to develop further by a sequence of roads and tunnels.

The construction work would begin in the first half of 2018 as the bids for the tenders have been invited from the qualified bidders. A special purpose vehicle will be formed to raise loans from banks and non-banking institutions.

VBSL will be built at a cost of Rs 7,502 crore. It would be a toll-route which will be valid until 2052. The Maharashtra State Road Development Corporation (MSRDC) will employ two separate independents for toll collection and repairs and maintenance of VBSL, as per the government resolution.

Timeline

The sea link was approved eight years back in 2009 by the Cabinet Committee on Infrastructure. The original cost of the project was Rs 5,975 crore which has now been accelerated to Rs 7,502 crore. The state government took four years to get the clearance from the Coastal Regulation Zone (CRZ) and Environment Ministry, which was finally declared in January 2013. After that, CM Devendra Fadnavis on April 29, 2016, directed the MSRDC to construct the VBSL on an engineering, procurement and construction basis.

How VBSL will impact Mumbai’s property market

VBSL can be a game changer for Mumbai real estate market as it would improve connectivity between the suburbs and the main commercial business district. With traveling time coming down with an estimated toll tax of Rs 60, mid-segment buyers would make way to housing hubs near Versova such as Kandivali, Borivali and Mira Road.

Here the property prices have already crossed Rs 9,000 per sq ft, the growing connectivity would further increase the property prices. With the sea link coming in, the crowded areas of Andheri, Chembur, Ville Parle are projected to be relieved from congestion and the excessive pressure on the express highways would be released.

A marginal property price surge was noticed in localities like Goregaon, Andheri, Kandivali, Borivali as the VBSL project entered the final stage and got environment clearance. The rise would be visible once the construction begins.

Buying property Infrastructural development Real Estate Smart Residential Living

How Jewar airport going to impact the NCR real estate market?

Dec 13,2017 / By Priyanka / No Comment

Recently, the Uttar Pradesh government gave its approval for the second airport in Nation region Capital which will be built at Gautam Buddha Nagar’s Jewar in four phases

The state government has estimated that approximately 3,000 hectares of land would be required for the airport development. In the first phase, development work will be carried out across 1,206 hectares which is worth Rs 3,000 crore approximately.

The Jewar airport will be opened to the public in the next five to six years and the total estimated cost of the airport is around Rs 20,000 crore.

The project got a go-ahead from the Centre in June this year and a no-objection certificate (NOC) was issued on October 5 by the Centre for the project.

The state government, this August publicized that they have the plan to link Jewar with a Metro connectivity. The metro line would extend the current Greater Noida Metro Line to the airport site at Jewar which means the Metro link would be stretched further from Pari Chowk.

Will Jewar airport impact NCR real estate?

Like any other main infrastructure projects that benefit real estate markets, the Jewar airport, too, is projected to change the real estate dynamics in Noida and the neighboring areas.

A recent fall in the property market has led to a huge inventory pile-up. But after the airport project got approval, real estate developers have invested around Jewar and expected to have a positive effect on property prices.

Why is the necessity of an airport in Jewar?

Denizens living in other cities of western UP and some cities of Rajasthan have to travel to Delhi if the travelers plan an air travel. An airport in Jewar will be helpful for these people. This airport will not only serve the aviation needs of Delhi but also of cities such as Agra, Bulandshahr, Mathura, and Meerut. The civil aviation ministry expects this airport to give a boost tourism and economic potential of the region.

Flying affordability

Being built as part of the government’s regional connectivity scheme, the planned airport in Jewar is expected to provide travelers reasonable options.

Windfall for landowners

As the state government is intense to develop infrastructure, the land acquisition process will be easy further, resulting in bigger financial benefits for Jewar’s landowners. Around 2,378 acres of land has already been attained to develop the airport. Plans for providing the area with a Metro connectivity are likely to develop the prospects for investors.

The state government earlier has selected the Yamuna Expressway Industrial Development Authority (YEIDA) as the nodal organization to set up the airport.

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Category : Real Estate

Trends to redefine the Indian Real Estate Market 2018

Violet line of Delhi Metro to boost the real estate market of Ballabhgarh

Area in Focus: Kompally

Will Versova-Bandra Sea Link impact the Mumbai Real Estate Market?

How Jewar airport going to impact the NCR real estate market?