Walk-to-work concept is gaining momentum in Indian Real Estate

Dec 6,2017 / By Priyanka / No Comment

The concept of new urbanism and walk-to-work is gaining momentum in major cities. The concept of new urbanism inspires developments such as housing, workplace, and shopping in the vicinity of each other, and walkable streets and blocks and reachable public spaces play a vital part in such developments.

According to Colliers Research, about 90 million sq ft of office space under the different stage of construction across India is likely to complete in the next three years, and to be precise IT-ITeS districts of the cities will promote such walk-to-work concepts in Indian cities.

Bengaluru residential developers have already started trying out the concept of walk-to-work with projects near Whitefield and Hebbal. Integrated developments with schools, colleges, malls and public spaces within 500 mts to 1 km range will further counterpart such walk-to-work growths.

Tier 1 developers are concentrating on integrated developments. Some of the most popular samples of the integrated township are Prestige Shantiniketan and Brigade Metropolis in Whitefield, World Trade Center in Yeswanthpur. More developers are going to join the league.

The Magarpatta city in Pune is also one such successful example of a viable development model integrated with the commercial zone, housing developments, institutions, healthcare facilities and entertaining spaces with best in class infrastructure.

At the same time, Transit Oriented Development (TOD) trends should create a balanced land-use blend with residential developments along the transit corridor that help in succeeding controlled developments within the cities.

With a focus on the creation of mixed-use development in the effect zone of transit stations that are within the walking distance of (500-800 m), TOD is possible to lessen the average travel time and expenditures on transportation.

TOD should also include a facility for public spaces, systematized parking and support foot-travelers, bicyclists and non-motorized transport (NMT) users in cities.

Recently, India has observed a notable economic growth, Indian cities are emerging at a rate faster than other cities in the world. According to the Ministry of Urban Development (MoUD), the urban population in the country, which is approximately 377 million, is expected to grow up to 600 million by 2030.

This rapid development coupled with growing residential and commercial developments has led to many critical significances such as road traffic issues, increased pollution, public safety, and flooding. This, in turn, is weakening the livability quotient in the fast urbanizing metro cities.

While India’s collective annual infrastructure investment amounts to 35% of GDP, the government evaluates that it needs USD 1.5 trillion in infrastructure investment in another ten years. Even this huge amount will possibly only help bridge the infrastructure shortfall rather than create room for future infrastructural development.

As per the study was done by Colliers Research, the real estate developers should also focus on mixed-use developments at city fringes or beyond the city limits to house the overflowing population of the urban region to stabilize population explosion in main cities.

This planning method will not just ease the burden of urban infrastructure but also drive affordable housing as it remains as a distant dream owing to the high land cost in overbuilt areas in the city.

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Real estate market trend 2018

Dec 1,2017 / By Priyanka / No Comment

Author –Mr.Vineet Goyal, Joint Managing Director,Kohinoor Group Pune

Indian real estate has seen a historical trend in 2017, which started with demonetization and then picked up with RERA (Real Estate Regulation Authority) and then GST (Goods and services tax) was the next step. The sector saw renaissance with absolute transparency, ease of transaction and confidence of buyers in the realty sector. What 2017 has given to real estate will not only have long-lasting effect in this sector but in the Indian economy as well. The year ahead will have many positive changes.

Increase in (FDI)Foreign Direct Investment

India has become one of the fastest growing investment destination for foreign investors , one of the reasons is the increase in the real estate and infrastructure investment. According to the World Bank, private investments in India are expected to grow by 8.8% in 2018-19.Indian real estate will see further increase in the global capital flow.

Due to the transparency brought in by RERA , NRIs will find Indian Real Estate market reliable and hence next year will see an increase in NRI homebuyers.

Demographic dividend will benefit real estate

Indian real estate will reap the dividends of its demographic potential. While more and more young men and women will join the workforce even aging workforce population will generate housing business. This will increase the overall demand for the residential and commercial spaces.

Real estate will contribute to the Sustainable Development Goals (SDGs)

The government has launched several ambitious programmes to implement SDG agenda. One such programme is Housing for all by 2022 which is providing direct financial assistance to the poor households. Affordable housing segment will see an upsurge in 2018 and the developers will consciously contribute towards the mission of Housing for all by 2022.Residential projects launches will be more focused on the affordable housing segment.

Smart City initiative

Real estate will play a vital role in Government’s Smart City initiative by developing the social and economic infrastructure of any smart city.The requirement for commercial space will go up due to improved infrastructure and connectivity. The development of smart cities will also push the demand from other asset classes such as serviced hostels, hotels and shopping malls. New job opportunities will be created which will push up the economic growth of the city.

Space Management

Fast growing cities will attract more and more people due to which cost of urban real estate per square metre will increase. With the increase in the competition for the space, the developers will become more innovative in terms of designing and building abodes .Apartments will be smaller but will be space efficient.

Digital presence will be more

Technology is influencing the buying behaviour and it is very evident in the home buying process. Homebuyers and home sellers will be using online platform more. Real estate firm will partner with major search engines and portals for the mutual benefit.

Consolidation in the realty sector will gain momentum

With the implementation of triple reform Demonetization, RERA and GST ,the real estate market has become transparent and the home buyer’s confidence has increased. The realty sector which is crowded now will become leaner and meaner. Smaller players will be bought by the bigger better organised players. Smaller players will not be able to comply with the rules of RERA and hence they will merge with the established players.

High energy prices, climate change and government regulation are already pushing “Sustainability” up the real estate agenda, but by 2018, their impact will be far greater. The real estate community will take a greater role in driving the financial ecosystem.

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BDA to give residential projects another shot

Nov 30,2017 / By Priyanka / No Comment

The Bengaluru Development Authority (BDA) has taken a turnaround from its earlier standpoint that it would not take up any new residential projects till all its current flats get homebuyers. Recently, BDA has gone ahead with floating proposals for two mega residential projects worth Rs 759 crore. The projects will come up at Konadasapura village in Bidarahalli Hobli in Bengaluru

The project will have more of 3BHK options as most buyers are seen to prefer this over 2BHK or 1BHK flats in its previous projects. The upcoming project will have 1,344 flats (3-BHK – carpet area of 1,150 square feet), 672 (2-BHK carpet area of 672 square feet) and 448 (1-BHK carpet area of 450 square feet). They are going to construct a total of 22 blocks, each of 14 floors.

A senior official of the BDA said, “We believe it to get a good response as it is located in the suburbs. This residential project is a part of many other property development projects, comprising of commercial complexes, amusement parks, and others.”

He further added that the BDA decided to take up the project to achieve revenue as it is facing a serious financial crunch. The BDA is anticipating on accepting business models that private builders use. The official said this is the first big residential project that the BDA is taking up after the Karnataka Real Estate Regulation Act (RERA) came into effect.

The BDA is trying hard to sell the flats that are already completed. The agency had to announce schemes like ‘across-the-table’ sale of flats for applicants because of the poor response from the public. The official said that after the initiative, 500-odd flats were sold, but a majority of the 2-BHK flats left unsold.

Last year, the BDA had marketed 3,100 flats for sale but received only 800-odd applications. The homebuyers had shown more interest in 3-BHK flats. Another BDA official said, “Our earlier experience tells us, there is more demand for 3-BHK flats so we have decided to build more of them. The project will also address various other issues like parking. In one of the projects, parking lots will be made available for more than 1,500 cars. We are hoping that people working in the IT sector may be interested in the project location is close to Whitefield.”

Peripheral roads will be constructed around the housing project borderline of 24-m width. Facility for solid waste management and other facilities has been made.

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Guidelines to distinguish between a good floor plan and a bad floor plan

Nov 29,2017 / By Priyanka / No Comment

There are many ways to judge while buying a property when it is mainly for the end-use purpose. One of such things is the floor plan. There are various things and components that contribute to making a good floor plan.
Here are few guidelines to distinguish between a good floor plan and a bad floor plan and how you can classify these:

View
For a pleasing view of the home, keep the kitchenette away from the entrance. The visitors should have a vision of the living room interiors and there should not be any obstruction in the inside view.

Common area
Space used by huge cupboards, big doorways are a waste and are of little use in average-sized apartments. Rather, go for built-in furniture such as convertible sofas, shelves, desks or tables that can also be used as iron table etc.

Room size
Choose a rectangular room over a square one. A good floor plan is the one that has a room of at least 12 ft long and 10 feet in width.

This means that in India the typical size of the bed is about 7-9 ft in length. The extra 5 ft space should be left for free movement in the room as well as placement of other things.

If you are thinking of a master bedroom, space should be at least 7-10 ft along with a master bathroom and a walk-in closet.

Loading
Homebuyers should make sure that the loading area should not be more than 30 percent and less than 25 percent as the common area spaces get compact.

The variance between carpet area and the super area is known as loading and is generally 30 percent of the total floor plan area.

Furniture
Any furniture in the residential space is kept at least 3 feet away from the wall. Make sure that there is enough space for placing furniture at different angles to avoid overcrowding.

Kitchen
A good floor plan provides an open kitchen as it offers easy access to other parts of the house and makes the common area appear large.

Make sure the kitchen and dining area are side by side as these are the most used areas of the home and should have a suitable access.

Bathrooms
This factor totally depends on the homebuyers’ necessities. Generally, a 1BHK has 1 attached bathroom while a 2BHK flat might have two, one attached to the room and the other one with the hall.

For a 3BHK flat, the third bathroom can be replaced as a storeroom, if you have a small family. It is suggested to keep the common area bathroom functional for guests.

Balconies
The area used for building the balconies is not calculated in the Floor Space Index (FSI). However, real estate developers add this in the carpet area to manage the loading.

Therefore, go for a larger balcony rather than several small balconies to make sure healthy ventilation.

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Festivals offer special boosters to Real Estate sector in India

Nov 24,2017 / By Priyanka / No Comment

We Indians have the deep down significance of festivals in our hearts; in our country, it is considered as one of the fortunate time to start something new and good. By the term “good” the general tendency of any individual is to make some investments in solid sectors like gold, stocks, diamonds etc. Hence with all those money flowing in the market real estate sector is buzzed with activity.

There is certain emotional novelty attached to the festivals and therefore the best month considered in calendars is from October to March. Given that these festivals offer a lot of freebies and discounts on the home buying the excitement and sentiments are totally relatable. The current market rate escalates due to rebounding economy, and some relief from the interest rates. But the economy and business does not totally run on sentiments of festivals, lets us see the current situation where actually these offers attract the buyers.

To attract more and more buyers and increase the sale of their inventories, real estate companies start rolling out great offers, freebies, cash discounts, gold coins, lucky draws, and jackpots. Some developers also provide international holiday package, free car parking, and many more offers. As we all know the online real estate portals in today’s time is the most visited and trusted source of getting information and selecting a property.

A real estate portal gives you an entire picture of a deal from its best rates to best choice of developers, they also show the clear picture of the property which gives an authentication to deal. Hence developers prefer these online sale markets and take the online portal route for marketing their project. To lure and attract the buyers these portals and developer work in collaboration making highly innovative deals which easily gets popular among the home buyers and investors too. Some of them are like-

- Online festival sale- these sales are a virtual sale and are of mostly 3 to 4 days longs giving various schemes at lowest prices. Consumers are offered various payment plans, rent back opportunities, free interior services or plumbing services for 1 year, less interest rate.

- Customized payment plans – flexible payment schemes are available on the online portals which allow the customers to modify the schedules of payment.

- Financing schemes- in simple language it is a scheme of 20:80, 30:70, etc. these schemes are marketed in the name of ‘subvention scheme’ i.e. Constructed linked plans & Possession linked plans.

- Another most interesting offers that run on portal is the ‘buyback and assured return’, here the buyer totally depends on the funding hence under this scheme, buyers are asked to pay a certain amount within given period of time where they are assured of returns

- Price fluctuations- running scheme of any developer that lure the buyer is ‘get a 3BHK flat in 2BHK rates’

- A buyer always looks for the loyal developer and therefore any builder does not want its image to rundown. They take testimony existing customers or old one works a lot.

- Cashback offers, no pre-EMI scheme, furnished flats, club membership free, and car parking free.

Freebies and offers are incidental at the look, when you go out to buy a dream home for yourself buyers must do due diligence and research asses of the effectiveness of the offers and schemes flooded on the online portals.

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Tag Archives: Indian real estate

Walk-to-work concept is gaining momentum in Indian Real Estate

Real estate market trend 2018

BDA to give residential projects another shot

Guidelines to distinguish between a good floor plan and a bad floor plan

Festivals offer special boosters to Real Estate sector in India