Metro Railway To Change The Mumbai Real Estate Scenario

Real estate is one of the most flourishing businesses of the time. The whole world is seeing a new era of business through real estate. In India too, the real estate market is on the rise. In the present scenario, with the establishment of a new government at the centre and the stock exchange going up, the real estate market is at its peak. The already famous metropolitan cities for real estate like Mumbai, New Delhi, Chennai, Hyderabad and Kolkata, are opening up newer prospects for real estate buyers. Mumbai has always been highly reputed for its real estate market until its latest setback a few years back. However Mumbai has coped up from its fall due to the factors that made it popular for real estate like work sector, education sector, weather, tourist spot and most importantly the famous Bollywood industry. Now there is the new, soon to appear Mumbai metro to add to its feather. A sturdy transport system like the metro railways will take the real estate market of Mumbai one level up in its demand.

Mumbai Metro

Talk of Mumbai metro railway has been the subject for quite some times now. In spite of so much of hopes and apprehensions there has been no concrete news regarding the metro railways. After a long wait of eight years, just a few days back, soon after the swearing in of the new government at the centre, the Railway board has granted approval to start the much awaited Mumbai metro. The MetroOne is to start initially with 11.4 km line linking the two stations of Versova Andheri and Ghatkopar (VAG). The time needed to travel from one of these places to the other at present is 90 minutes. After the metro railways commences the time will be drastically reduced to an amazing 21 minutes only. This news has certainly brought a sense of joy in the people and a relief in their lives.

As for the real estate business, since eight years back areas around the proposed metro zone has seen their prices to shoot up by a whopping 400 per cent for house for lease. Developers have already started pouring in on projects near the metro ever since the construction has begun. The areas surrounding the metro zone will soon be experiencing a demand which will lead to a price rise here again. Since the metro railway will connect the urban with the suburban, a craze for areas at the suburbs is going to increase at a greater pace. The connectivity between the North and the Eastern suburbs will increase many times. According to the Metro board the railways has the capacity to commute 7 lakhs people per day. It is highly promising for real estate buyers. The outskirts have already started experiencing a demand as developers have begun raising projects at these places because of the tremendous space crunch at the main city areas. Now it is going to be even more.

The monorail will open up the Eastern fringes of the city to real estate developers. The Eastern side is the emptiest area in the over populated and congested city. The metro may have certain disadvantages when compared to many other transport systems like the bus or the local train which has larger communication areas, but those who know how to take advantage of the metro will find good results. The already present Jogeshwari-Vikhroli Link Road (JVLSR), the Wadada-Chembur monorail and the Santacruz-Chembur Link Road (SCLR) are doing a lot of good for the city and the addition of another surface road link will shoot up the network system. Due to the monorail at Wadala-Chembur the prices of property at Wadala and Chembur have shot up by more than 100 per cent in the last few years. The same has happened at Santacruz due to the Santacruz-Chembur monorail. This piece of prediction has been related by real estate specialists like Mr. Nair. Taking into account these previous hikes the new railway system will definitely bring about a similar price hike in the concerned areas.

The Southern Mumbai is hot favourite among real estate businessmen. The northern and central secondary business districts or SBD are preferred locations for house for rent. The other preferred property locations at Mumbai zone for investors are the Bandra-Kurla complex or BKC and Central Business Districts or CBD. However the commencement of this metro projects will give opportunity to its surrounding areas to experience a great boost in terms of real estate business. The connection between the northern and eastern suburbs will increase due to this $720 million project. In the same way connection between the east and the west corridor will also increase to a large extent. There may be a hike in land price by nearly about 22 per cent. At Secondary Business Districts the availability of land is going to be an attraction to real estate buyers. As a result Central Business District which had so far been the activity centre may lose some importance to SBD. Even the south may lose at the face of SBD as many companies may shift to SBD. The Navi Mumbai will not be much affected.

This transformation in the political scenario will definitely have an impact on the real estate market in Mumbai and all over the country. After a span of many longs years from the Delhi metro, another metro connection is a great change for the country. Having a metro railway in a city is no small thing. It holds the capability to change lives overnight. It will link more places in one string and work places will come nearer to one’s residence. It comes as a boon to this world of serious time crunch. Metro railway will make transportation faster and life easier for the people of this over populated city. This will be a big factor in pulling more crowds to this city for its now easier lifestyle. There will soon be a high demand for space in Mumbai. The craze will be both for residential as well as commercial purposes. Thus it is the most proper time to buy real estate now.

Factors That Keep Your Home Loan From Being Sanctioned

Owning a house is one of the biggest dreams that a person has. Everyone works hard enough to save money for a down payment. However, when you are about to apply for a home loan, you get turned down by your bankers. This mostly happens because lenders check your credit reportoften, your income and other essential details for deciding whether you are a good candidate for a home loan.

Here are some reasons because of which Cibil reports reject your credit worthiness.

Checking Credit Report

In case you have taken a lot of loans in the past or had taken on a number of credit cards, then your past loaners must have gone through your Cibil report. If you had applied for multi credit facility particularly for loans that were unsecured simultaneously, it might have sent a warning signal to your loaners. Numerous enquiries can work to bring down your credit score. It could be a problem for you when at the time of applying for a mortgage. In order to evade this problem, you should not apply for credit cards or loans at least 6 months before applying for a mortgage.

Poor Credit Score

People with poor credit history are often rejected by lenders. Poor credit score refers to issue of late payments, payments which were missed and similar problems. Also, your Cibil score would not be very good if you had always been nearing your credit limit on credit cards. Having a large number of personal and unsecured loans on your history of debt against secured ones such as car loans, could be held against you.

One type of credit or no credit

A lot of Indians still believe that a life of credit is a bad idea and therefore they do not take out loans or credit cards. This is an indication that you are not responsible enough to handle clauses of loans. It may not send out the signal that you want it to send out- that you have no credit history and hence are trustworthy. Therefore, you should have both unsecured and secured loans and must have met the criterion for repayment.

Mismatched Identity or Disputes in Cibil

There may be some problem with your CIBIL report because your past lenders may have provided incorrect information to them. In case there is a massive fault, you may be a victim of mismatching identities. Therefore, you should keep checking your CIBIL scores frequently enough to get these discrepancies corrected in time.

Not checking your credit score might have a lot of undesirable effects. For example, a credit card is one of the most common banking instruments in determining credit history. Indiscriminate usage would lower your score of credit and even spoil your chances of getting a home loan or get it at a very high rate of interest. Consider this instance that your friend and you apply for a home loan of INR 50 lakhs payable over 20 years. You got your loan at an interest rate of 10 percent per year whereas your friend got it at 12 percent per annum. A reason for this discrepancy may be that your friend’s credit score was lower. This 2 percent difference in interest rate could lead to a difference in interest payment of almost Rs 8 lakhs!

There a many ways in which your credit card could affect your chances of getting a home loan.

Using a lot of credit cards

If you have a number of credit cards to your name then it indicates that you have an appetite for credit. Carrying around a number of multi-coloured cards may seem fun but they can be a very bad signal as they show that you are a credit hungry person. An appetite for credit may lower your credit score and diminish your possibilities of getting a secured mortgage loan for house for sale in Pondicherry.

Carryover of balance frequently

Companies that offer credit cards make it easy for subscribers to pay a token amount and carry over their balance for the next period. By carrying over your balance, you would be losing out on free credit periods and paying a very high rate of interest. There are many hidden implications of carrying your balance over. They act a little too much on your score of credit as your outstanding loan amount rises and the defaults would show on your score and imply that no lender should deal with you. Therefore, your carried over balance may prevent your home loan application for house for sale in Pondicherry from getting passed.

High Usage of Credit

Using your credit card to the hilt may also adversely impact your credit score. For example, if a credit of Rs 3 lakhs is your ceiling on your credits and you have used it up to Rs 2 lakhs, then the credit rating agency might take that as a negative. To keep a healthy credit score, you should use only 30 percent of the credit limit allotted to you. On the other hand, non-usage of credit cards would not help to build up a payment history of credit and therefore, it will not be good for you. Therefore, you should use your credit card in moderation so that you can get a home loan at an affordable rate without hassles.

Credit Portfolio with a lot of Unsecured Loans

Your credit portfolio must have a healthy quantity of both unsecured and secured loans. If you have only unsecured loans such as personal loans and credit card balances, then your credit rating will go down. Therefore, you should balance your portfolio with secured and unsecured loans equally so that you don’t face any glitches.

Past Discrepancies that were unsolved

There may be some discrepancy in your credit rating or some disagreement about some charges levied by your bank. If you do not solve these disputes and keep from paying for them, then it shows up as outstanding in your credit account. This is classified as an amount for default and might blemish your report of credit. Therefore, you should get these discrepancies solved so that it does not tamper your credit worthiness and keep you from getting your dream house.

Highest Rental Yield In Chennai In Sholinganallur

Sholinganallur is already on the property radar of house hunters as evident from the rise in rental and capital values of the area. The rental values increased by almost 15 percent whereas the capital values increased by 9 to 10 percent roughly. In the first quarter of 2013, per square feet price stood at Rs 4000 roughly which jumped to Rs 4600 roughly in the first quarter of 2014.

What are the main determinants of Sholinganallur’s popularity in the realty market?

Availability of jobs has uplifted the area’s real estate market through establishment of a preferred investment and rental choice. The IT corridors are near it which has led to an increase in the values of property in the capital market. Not only that, if you want to earn on lease house in Chennai Sholinganallur, then you would be in the top locality of Chennai which has highest rental yields.

If you invest INR 34 lakhs for a 2BHK apartment of 1000 square carpet area, you would manage to make Rs 10,000 to Rs 20,000 through monthly rent, based on the actual location of your apartment. Brokers reckon that for a fully furnished apartment with 1900 square feet carpet area which is located ideally, an amount as hefty as Rs 75,000 can be charged for it. If such a house has to be bought, then an investment of Rs 60 lakhs to Rs 90 lakhs needs to be pumped in. If you furnish it well enough, then you can rely on good returns in the rental market.

Price

A 2BHK apartment which is spread over 950 square feet is priced at roughly Rs 32 lakhs. The price of an apartment measuring 1600 square feet can be as high as Rs 80 lakhs. If you want to choose a 3BHK apartment, then you will be charged anything between Rs 35 lakhs to Rs 1.6 crores. A variety of residential property is up for sale here- plots, villas and residential houses. Paying guest accommodations, multi storey flats, studio apartments, villas are available for rent in Shollinganallur along with house for lease in Chennai. An apartment in a multi-storeyed complex would cost you anything between Rs 5000 to Rs 50,000 in a month as rent.

Most of the accommodations can be rented within Rs 14,000 to Rs 26,000 in a month. These are mostly semi furnished 3BHK apartments. Also 2BHK apartments ranging between 600 square feet and 1200 square feet are also available. For 3BHK units, you would have to settle for 850 square feet to 2100 square feet.

Shollinganallur is a promising neighbourhood for both prospective tenants and investors. It is the best place for rapid appreciation of capital value along with rental demand.

Why choose Sholinganallur?

Connected via the East Coast Road and OMR to other areas in the city, the area’s geographical location is quite attractive. Not only for residential properties, Sholinganallur is very attractive to corporates as well. In terms of physical and social infrastructure, the area has a lot of reputed colleges and schools, eateries and malls. The recreational spot, ECR Beach is also very close to Sholinganallur. Location wise, Sholinganallur has immense potential for appreciation. Closeness to the employment catchment area, Sholinganallur has attracted a number of tenants and buyers. Even single professionals turn up to buy or rent houses in this area for settling down. Ways to improve the area include flyovers for decongesting traffic during peak hours. Parking and traffic is a main concern point of the area. Auto rickshaws and local buses are the most chosen medium for commutation. The closest railway station to Sholinganallur is Velachery which is roughly 12 kilometres from here.

The area is a preferred rental location as evident from the annual yield of Rs 2.4 lakhs almost. Real estate investment made around and in IT destinations has always produced high rental returns and capital returns. The area has seen ever growing demand for rental accommodations and has been consistently features in the top 5 preferred localities in Chennai by various lists. Located along the Old Mahabalipuram Road, the area is a catchment area for IT professionals who work in the companies based out of the IT industry nearby.

The annual yield received by Sholinganallur is 4.35 percent in the January to March quarter of 2014 for rental properties. This has helped the area secure the top spot among areas preferred for rental purposes. In terms of rental yield, for 1000 square feet flat that you buy for Rs 50 lakhs in the area, you can earn almost Rs 2.4 lakhs in rental income. Therefore, you would be able to cover the cost of buying the apartment in no time. For the first time, Sholinganallur has been included in the top rental yielders list. There has been a consistent and regular rise in values of rent in the area. For example, the average rental rates in the area were between Rs 12,000 to Rs 13,000 in the second quarter of 2013. It went up to Rs 15,000 almost by the end of the third quarter of 2013. For the same property, you would have to pay Rs 17,000 in a month in today’s times. The area has to offer 3BHK flats of 1200-1800 square feet which will fetch a rental income of Rs 15,000 to Rs 24,000 in a month roughly. Flats in the 2BHK design can also be found here in the range of 800 to 1100 square feet. The rental value of these properties is between Rs 10,000 and Rs 16,000.

The closeness to IT hubs such as Gateway International, Siruseri IT Park and PSSB Millennium is what has triggered the demand of rental properties from IT employees. Moreover, the area is well connected to other parts of the city through important roads like Velachery Main Road, East Coast Road and Link Road. Via Old Mahabalipuram Road, the airport is only 20kms away from Sholinganallur whereas the central rail station is only 25 kms away roughly. You can find house for lease in Chennai here as well.

Factors Spearheading Growth Of Real Estate in Kochi

Kochi is one of the upcoming cities of southern India because of the launch of retail, IT, residential, infrastructure and commercial projects in the city. The values of residences in prime area have seen a rise in 12 to 15 percent in values whereas house for rent in Kochi has shown a growth of almost 25 percent in the past quarter. The meteoric growth of IT companies in Kochi primarily drives the growth of the city. The government of Kerala aims to place Kochi on the worldwide IT map which has led to a rapid rise in demand for property and hence property values.

Several IT projects like Infopark and the Special Economic Zone or SEZ, first IT one in Malabar, and UL Cyberpark in Kozhikode are some of the prime projects that is triggering the growth of real estate in the city. The first building in Kerala for IT and ITeS, Cyberpark is to be completed in 18 months while the other SEZ and IT projects like Technocity and Technopark have also been planned and pushed in the pipeline. Some of the completed buildings have already been leased to Infosys and TCS. Along with available physical and social infrastructure in the city, there is excellent connectivity too in these areas which makes them the most preferred localities of the city.

Currently per square feet capital values of flats in this area is between Rs 2,500 and Rs 4000. Per square feet values is expected to increase in the coming 6 to 8 months. Moreover, when the IT projects which are under construction are completed, the number of job opportunities in the city will go up which will cause an increase in the demand of houses. For a house for rent in Kochi, you might have to pay up almost twice or thrice of what you have to right now.

Another popular infrastructure project in the city is the one by Kochi Metro Rail Limited which has started off with some preliminary works which include road construction. The government of Kerala is currently drawing up plans for land acquisition. The KMRL project aims to solve the current problem of traffic congestion in Kochi and wants to provide glitch free movement to and from the outskirts and central business districts of the city. It will further improve connectivity inside the city by multiple folds and make property prices along the proposed roads increase steadily.

In the past 2-3 months, the real estate sector of Kochi has shown good appreciation in the value of property in locations where the metro railway works has started off. Prices of property have increased by almost 30 percent in the areas through which the metro railway is slated to pass. For the real estate sector, the starting of the metro railway has been quite positive. Localities in North Kochi along with areas like Kaloor have shown increase in values of both commercial and residential properties.

The Kochi Metro Railway project which has already begun is supposed to be completed in the next 3 years. Areas which are roughly 500 metres to a kilometre away from a metro station would perhaps have a rise of 20 to 30 percent in their mean market price.

The expansion of the ITeS and IT sector in Kochi has already made a niche section of buyers of property and the upcoming metro railway has acted as catalyst for pioneering the real estate development process. Vytilla, Pallarivattom, Edapally, South Ernakulam and Kalamassery are some of the localities that would benefit the most from these projects. The areas will not only be spared of traffic congestion but also enjoy better connectivity with the centre of the city and its peripheral areas.

The first phase of the metro railway is under construction and it is strengthening existing areas whereas it is discovering other avenues of growth on another hand. Newer areas have been thought of being included in the 2^nd and 3^rd phase of the metro railway. The areas which are rumoured to be included have already experienced a growth spurt in property value and real estate activities.

The areas in the vicinity of metro stations have seen a lot of retail, hospitality and commercial development because of improved accessibility. Newer projects like luxury hotels, hubs of entertainment and convention halls have come up in these areas. Capital values of flats in Edapally, Vytilla and Kaloor are between Rs 3000 and Rs 5000 for a square feet whereas the localities which are near the metro stations that have been planned are getting almost 16 to 20 percent increase in values. When the metro becomes operational in the next 2 to 3 years, property values are slated to increase by almost 40 to 50 percent.

Kakkanad in the Ernakulam district of Kochi is a rapidly growing area in the city. The area has witnessed high growth in retail, commercial and residential sector in the last 2 years. There has been a growth of almost 100 percent in capital values for commercial and residential properties which rental values have gone up by almost 150 percent in the last few years.

One of the major factors contributing to this phenomenon is the development of the IT sector. Kakkanad has the 2^nd biggest IT technological park called Kochi Infopark along with the biggest IT industrial township, the upcoming Kochi Smart City which is the primary driver of economic growth in the area. Located near famous educational and health care institutions along with sufficient water supply, the region is best for commerce and residential purposes. Kakkanad is connected to the National Highway 47 which is why it enjoys high connectivity with the peripheral areas as well as central areas of the city.

The increase in industries has led to robust demand for houses, commercial properties like malls and entertainment hubs nearby. Developers like Ebony Estates, DLF Lts, Confident Group and ABAD Builders have already launched large scale projects here.

The projects have been designed for providing lifestyle facilities and features to end users. The projects spearheaded by local developers in the city can be bought for Rs 30 lakhs to Rs 50 lakhs. However, the ones in luxury segment such as the DLF Infinity Tower can be bought from Rs 90 lakhs onwards.

Booming Real Estate in Mysore

The real estate scenario in Mysore is entering a booming phase as the municipal corporation of the city has issued more than 100 land permits to builders for developing residential communities. The city’s peripheral and arterial roads, particularly the ORR or Outer Ring Road have shown the highest possible development. For a plot measuring 240 sq. yard in Vijayanagar IV, you have to pay roughly Rs 15 lakhs, something which cost only Rs 4 lakhs previously.

Property prices in Mysore are going up in leaps and bounds and they have gone up four folds too in some areas, the trends make local property dealers and developers that in some areas the prices will go up three fold at least in the next 1 year. The value of agricultural lands by the Outer Ring Road has gone up by 10 times almost within a span of 5 years.

The rise has been across all kinds of property segments. For a residential plot which measures 100ftX80ft in the Ballal Circle area, you would have to pay Rs 60 lakhs to Rs 70 lakhs now, which was actually selling for only Rs 45 lakhs previously.  Rapid construction activities due to infrastructural development and arrival of corporates for setting up offices have led to this increase in property demand and prices.

For the high end projects in prime locations with top notch amenities in Mysore, per square feet rate is roughly Rs 2,000 to Rs 3,000 whereas for projects in peripheral areas, the per square feet rate comes to roughly Rs 1500 to Rs 2000. Nanjangud and Koodanahalli are two areas where villas are being developed for Rs 3000 square feet. The latest additions to Mysore’s residential colonies are Kuvempu Nagar, Vijaynagar, Nivedita Nagar, Jayalakshmipuram and Dattagalli. These areas have had the highest appreciation in property prices. The price of property in the new colonies began with Rs 250 to Rs 500 per square feet but they have gone up to Rs 3000 to Rs 3500 in the three years that followed. With the quick appreciation in property prices, house for rent in Mysore shall also witness an increase in rental values.

The market rates prevailing are roughly Rs 2100 per square feet in Siddhartha Nagar whereas in JayalakshmiPuram and Gokulam I the rates are a little higher at Rs 2500 to Rs 3000 roughly. In areas such as Vijaynagar I, II & III, the demography is becoming much cosmopolitan and there has been a quick growth in apartment communities where for an apartment you would have to pay around Rs 35 lakhs to Rs 39 lakhs.

Traditionally, Mysore has the advantage of exceptional connectivity, wide roads, large plots and pleasant weather. Coupled with the low price and current ancillary industries, many Biotech and IT companies have started operations in Mysore which has resulted in a slow and steady rise in the residential sector. Continuous rise in prices for developed plots and apartments in Tier I metros have brought about a need for the mid income group and investors to look at secondary towns for real estate investment. For people residing in Bangalore, Mysore offers a number of options to invest in today at prices which are quite competitive.

Moreover, there is a sudden increase in both the price of land and apartments which has persuaded investors to dive headfirst into investing in Mysore. With the expansion of the IT sector in Mysore, a number of IT employees are buying apartments here or looking for house for rent in Mysore.

The increase in demand for developed land parcels has been there for couple of months, as per inside information. As a matter of fact, some developers operating in North Mysore sell roughly 50 to 60 plots in a month. There is a reason for the increase in demand of developed plots in the city. Investors believe that the developed plots are affordable and will see an increase in price over time.

For developed plots, the prices range between Rs 500 to Rs 1000 per square feet depending on the developer, location and vicinity of landmarks and potential for growth of the areas nearby. Even in city areas, the prices of apartments range between Rs 30 lakhs and Rs 60 lakhs and the sale of plots are encouraging, according to realtors. Some of the leading construction giants of Bangalore like Brigade and Sobha have already started residential community projects in Mysore. Builders such as Salarpuria are poised to enter the market while Puravankara have been allotted properties in Mysore already.

There have been real estate developments in places such as JP Nagar and Eliwala where a number of projects have already begun. Builders have already reported steady increase in sales and land development is going on with full force through the city. End users planning to buy a house in the city prefer apartments whereas long term and medium term investors prefer to go for developed sites, as per realtors. Almost 30 percent of the real estate market in Mysore comprises of NRIs. On an average, builders sell 4 to 9 apartments in a month. Some of the builders which are already involved with construction here are Sankalp, Mittal Builders, Manasa Developers, Value Design Build etc.

Prestige Mall is being built which would boost the retail sector of the area. A couple of software companies in the middle segment and start-ups spearheaded by erstwhile employees of top companies are starting their offices here which are pushing up demand for office space.

Some Jet Airway’s flights are schedules to depart from Mysore and closeness of the city to Bangalore are also contributing to the decision of entrepreneurs choosing to locate their offices here in Mysore. The Comprehensive Development Plan or CDP, which got delayed, is now in its final preparatory stage and it may cover development plans till 2025 even.

The work of zoning is in progress now and there is some scope of including larger areas under Mysore Urban Development Authority. Strict norms for issuing completion certificate from MUDA have forced developers to stick by the timeline of completion of projects by builders. This will lead to increased availability of house for rent in Mysore.