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.

Realty Investment Prospects In Hyderabad And Secunderabad

As the speculations about the elections of 2014 have died down, prospective buyers eagerly await to see momentum in realty market of Hyderabad. Even though some people say that prices of property may remain steady in the next couple of months, a lot of others believe that buyer sentiments may push prices up.

For long, Hyderabad has been a favoured destination for investors and buyers alike. If you intend to buy property in Hyderabad, then you would be glad to know that more than 300 residential projects are coming up which include plots, multi-storey, villas and residential houses.

According to the MD of JLL of Hyderabad area, realty market in the city will continue to have its pre-eminence and relevance. In the next 6 to 9 months, the sentiments of businessman shall mostly remain stable. This period may be found favourable for investors as valuation of property is low and there is possibility of capitalization.

Location

Most of these projects are located in Kondakal, Gachibowli, Mutangi, Appa Junction, Chanda Nagar, Kukatpally, Shamshabad, Shad Nagar, HITEC City and Sainikpuri among others.

Kinds of Properties

Multi storeyed apartments, plots, villas and residential houses flood the market here. A favourite area for villas, plots and apartments is Gachibowli and construction magnets like Ramky Estates and Farms, Mantri Group and Aparna Constructions have projects located in this area. Shad Nagar, Adibatla, Kondakal, Shamshabad and Mokila are some of the areas for residential plots.

Prices

Prices for multi storeyed apartments begin from INR 11 lakhs for 2BHK units in Shad Nagar while it can go up to INR 2.65 crore for a 3BHK flat in Banjara Hills. Villas may be priced at INR 32 lakhs for 2BHK set ups which are located over 4500 square feet in Srisailam Ivy. In Gachhibowli, for a 5BHK villa which is laid out over 4050 square feet, you would have to pay INR 5.5 crores.

If you want a residential plot, you would have to pay Rs 1.35 lakhs for a plot measuring 1800 square feet along Warangal highway. The prices may go up to INR 1.50 crores for plots measuring 3870 square feet in Madhapur.

According to a recent study, realty sector in Hyderabad may gain after the creation of Telengana. According to the COO of Perfect Pincode, Ravi Varma, one out of fifteen enquiries has been converted into actual transactions. The price range of such conversions is between INR 25 lakhs and 75 lakhs.

New and Established Developers are entering this market and it is thought that most of the possessions shall take place in locations like Kondapur, Madhapur, Nalagandla, Miyapur, Appa Junction and Uppal. The regions have become the new cynosure for realty sector in Hyderabad.

Another popular area is the Yapral area in Northern Secunderabad. NizamNazirud Doula built the RashtrapatiNilayam in 1860 here which is also known as the Residency House. The construction became the country house of British Residents at that time in Secunderabad. Presently, it is a custom for the Indian President to stay here at least for one time in a year. Quite surprisingly, this grand structure which is only 9kms from Yapral is a USP spoken of by realtors when prospective buyers speak to them.

Located just 5kms from the area of Sainikpuri, Yapral is popular for those people employed in military services. Because of the cosmopolitan culture among the people in the military where people from different parts of India get together, non-locals prefer to stay in Yapral too.

The area is also very popular among retired military officers. Visitors may come across numerous majors and colonels who are non-natives but prefer staying in Yapral because of the good infrastructure and peaceful environment. For now, non-natives have taken a shining towards the area because of the North Indian population living here.

Kinds of Properties Available

Independent houses and villas are a common choice in this area of Secunderabad even though multi storeyed flats are slowly growing in number. Villas are chosen because of the kind of privacy they offer and they do not restrict one like flats might.

Local realtors state that there are a number of options available in Yapral. A gated residential community is not very uncommon in this area and they have all kinds of amenities at hand- club houses, supermarkets, gyms etc. The values of capital in Yapral range between INR 2,300 and INR 2,700 for square feet. Apartments which are in the 3BHK style cover an area of almost 1485 to 1586 per square feet can bill you between INR 34 lakhs to 40 lakhs.

Houses for residential which are in higher accommodations which range between 1900 and 2600 square feet which might cost you between INR 43 lakhs and INR 74 lakhs. The 5BHK apartments may cost almost INR 2 crore for a house that measure almost 5100 square feet. However, there are 3BHK and 4BHK villas which might cost you between Rs 55 lakhs and Rs 1.40 crores. You can also buy residential plots in this area.

Facilities

The Secunderabad Railway Station is only 11kms away from Yapral. By taking the Karimnagar-Hyderabad highway, the Begumpet airport shall be located only 13kms away. Unlike most areas, Yapral is peaceful and free from traffic jams as it is close to a military area. The APSRTC serves the area well as buses ply regularly here.

Most of the layouts are permitted by the HMDA and therefore electricity and water is looked after by the APSEB and HMWS respectively. There are some prestigious schools locate in the area too. Hospitals, colleges, environmental parks and restaurants are also located abundantly here.

Possibility of Appreciation

A villa that was worth Rs 48 to Rs 50 lakhs 2 years ago costs roughly between Rs 60 lakhs and Rs 70 lakhs. Investment in the area has gathered momentum after the elections have ended. As Hyderabad has been declared as the joint capital for the coming 10 years, buyers are making proper choices without past uncertainties.

Realty growth in Yapral is still in a developing stage. However, its proximity to military areas and Sainikpury, the liveability proportion is more. Yapral is already self sufficient in numerous ways although commercial developments are coming up.

Investment Interest In Apartment And Plots In Bangalore

The anticipated outcome of the general elections conducted in 2014 has led to a soaring of the share market and a rise in the value of rupee and strengthening foreign currency, more NRIs are inclined to invest in residential properties in Bangalore. The city is viewed as a premier market destination and checks off a number of boxes as the city to invest in.

The investment climate is healthy along with regularly expanding job scenario and better civic infrastructure, large platter of residential realty projects to pick from and an urban and active lifestyle is what is leading the cause for Bangalore as an attractive destination for real estate investment.

Premium locations for Residences

Although there are several older neighbourhoods which have retained their posh tag, several new locations have also been included in this group as they offer lifestyles comparable to that available abroad along with high quality social infrastructure.

Director of Silverline Realty, Zahed Mahmood has listed out some premium locales that NRIs consider such as Sadashivnagar, Jayamahal, Dollars Colony, RMV IInd Stage and RT Nagar and to a good extent, HRBR and HBR Layouts. Never areas such as Bellary Road, Jakkur and Hennur Road are also popular among NRIs. In short, areas in east and north are more preferred by Indians settled abroad.

While considering properties in the east, NRIs are still much convinced about Whitefield as enquiries about properties here pour in every day and many NRIs have already moved in here. Indiranagar is another preferred location. Places around Hennur Road, Whitefield and Thanisandra Road and areas along the 2 important technology parks are places where people prefer to invest. There are numerous luxury residential projects taking off in this area.

Conveniences and Lifestyle

Whitefield is mostly attractive to buyers because there have been a bunch of launches that offer good products. The business environment is quite rich here and there are many large facilities situated here that have good upcoming and established infrastructure in large malls for retailing.

Social infrastructure such as presence of renowned international schools, easy exit and entry to workplaces and airport, high quality finishing of property development projects in this price bracket and the lifestyle offered add up to increase the value of an apartment here. Open space for kids to play in and proximity to property where friends and relatives have bought apartments also become deciding factors in the purchase of apartments here.

Potential for Considerable Appreciation

Given the limited supply both currently and in the near future, Richmond Road, VittalMallya Road, Sadashivnagar, Ulsoor Road, Cunningham Road, Kormangala and Indiranagar are extremely plush locations and there is no overhand of supply whatsoever.

The lack of over supply is leading to very high capital appreciation potential. Even though a luxury apartment in these premier areas might cost between INR 6 crores and INR 30 crores here, compared to premium locations in cities like Mumbai and Delhi, it is quite reasonable.

Preference for Choices

Almost 75 percent of property demand in these areas is driver by end users. The demand is mainly in the Rs 2 crore to Rs 5 crore segments which stated preference for gated communities and large apartments or villas.

A lot of investor activity can be noted in the increase in price in North Bangalore, especially around Yelahanka and Hebbal, where investor interest is high. Nevertheless, considering the mostly healthy characteristics of the market and better offering involved, the areas and their nearby locations are quite reasonably priced as they offer a plush lifestyle and rank quite high in appreciation of capital value.

Bangalore residents are mostly enthusiastic at times of investing in plots for residences. Of the 12 percent prospective buyers of land in the nation, almost 30 percent of them are in Bangalore. The buyers want to invest in residential plots not only for reaping healthy returns but also to live on the land after building a house.

When considering the prospects of investment in land, it can be safely said that the returns on land is much than that in apartment and hence it is a better option for investment. Bangaloreans seem to be taking this nugget of advice more seriously than others. 

Almost 28 percent buyers of residential property in Bangalore demand residential plots. The highest demand for this kind of property type is located in the West and Northern region followed by the South and East. The only region left out is the Central part which does not have land parcels available for selling.

When supply is being considered, west, south and north showed a slight shortage by around 2 to 8 percent while the east showed an excess in supply by almost 12 percent when compared to demand. In east Bangalore, the highest supply of this kind of property is in Hoskote, Sarjapur and Whitefield.

The maximum plots available in Sarjapur within Rs 10 to Rs 20 lakhs budget followed by that in Rs 20 lakhs to Rs 30 lakhs and then Rs 30 lakhs to Rs 40 lakhs. Within this amount, buyers can buy plots which are almost 5000 sq. ft big. A few options of 850 to 1500 sq. ft. plots are also there and they cost around Rs 5 to Rs 10 lakhs.

Hoskote is an area rapidly developing along the city’s periphery and it offers mostly residential property. Almost 90 percent of the residential development is in the form of selling of plots. The plotted developments have been started to be converted into apartments and combined with the infrastructural improvement like the upcoming Bangalore Chennai Industrial Corridor and Pearl Ring Road, the region is believed to bring in healthy returns in the near future.

Plotted developments do not form the majority in Whitefield, but they do form a chunk in the total land inventory available. As it is an IT hub, the area is a part of the most pursued localities in Bangalore and has shown an appreciation in capital value by roughly 16 percent in the past 1 year.

Apart from these localities in the east, there is a good supply of plots in areas like Mysore Road, Electronic City and Devanahalli.

Housing Demand In North And South Chennai

Like the rest of India, the realty market in Chennai is facing a dry spell in terms of appreciation of value. However, there are several localities which have seen a noticeable increase in the capital value of property. For example, Korattur in North West Chennai has reportedly seen a rise of twenty percent in capital value of property in the last one year. The per square feet rate of apartments in this area has gone up by almost INR 1000, from INR 4,900 in the time frame of January to March 2013 to INR 5900 in January to March 2014.

There are several apartments and areas which have undergone an appreciation in the capital value. There are several reasons to such a phenomenon, of which the top ones have been discussed here.

Redevelopment

The area of Korattur is going through a phase of redevelopment. The Tamil Nadu Housing Board has allotted plots in this area for building independent houses. However, these very plots are not being sold to property developers who are building multiple storey apartments on these plots.

In Chennai, Korattur has the maximum redevelopment which is why newer dwelling units are available here. However, the supply and demand gap is very prevalent here which has led to a price rise, according to Director of Sarathi Engineer, DhayaNidhi.

The buyers of property in this area consists mainly of IT employees whose base is Ambattur. Aside from them, local entrepreneurs and businessmen also prefer to invest in Korattur because of its closeness to Tiny Sector which is a premier industrial area in Chennai.

Affordability

People who can’t afford to buy property in Anna Nagar feel Korattur is a model alternative for buying apartments for living. As property in Anna Nagar costs sky high, Korattur has reasonable properties in which investments can be made.

According to available data, 2BHK in Anna Nagar of 1000sq ft. size will cost between INR 85 lakhs and INR 1 crore while Korattur has 2BHK apartments of size 800 sq. ft. within INR 52 lakhs. In the same way, a 3BHK apartment in Anna Nagar will be priced at more than INR 1 crore. However, in Korattur, the same flat can be bought within Rs 70 and Rs 75 lakhs.

Saturation point has been reached in Anna Nagar. No new development program is taking place in the region which is why property demand is getting dissipated to the nearest location of Korattur which has veritable amenities and infrastructure, according to a local broker Lalith Jain, active in this area. Not only does Korattur offer good connectivity to the rest of the areas of Chennai but it is also much affordable. Korattur has its own train station which makes going towards Chennai Central much easy. The area shall also be connected to the Metro Rail Network via Anna Nagar Metro Station that is just 4kms from Korattur. A lake and natural dense green cover add beauty and serenity to the area of Korattur.

Experts at the market believe that even though Northern Chennai has developed to become an industrial hub, the corrections in infrastructure planned in the future shall boost the realty market in the area.

Even though slow in terms of actual transaction, realty market in Chennai is very active in terms of the supply side. According to a recent report published, there are more than 100 projects lined up in South Chennai of which 77 percent shall be providing multi storeyed apartments while the remaining are independent houses and single floor units. The localities where the largest numbers of projects are coming up include Tambaram, Kelambakkam, ECR, OMR, Thiruvanmiyur and Pallikamai.

A local broker working here has commented that demand and supply in Southern Chennai has kept pace with one another. As the infrastructure is expanding and there is higher pace of growth coupled with availability of land, the southern half of Chennai surpasses all other areas in terms of new construction and preference. Developers like Alameen International, Urban Tree Infrastructures, Rajkhan Builders, True Value Homes and Sanjay Developers are active in this area. Most of the building projects offer 2BHK and 3BHK flats which start at Rs 15 lakhs and can go up to Rs 12 crores even.

Tambaram has 2BHK apartments whose price starts from Rs 15 lakhs while Kelambakkam and OMR have the same sized flat in 2BHK style costing Rs 20 lakhs Pallikaranai on the other hand offers smaller apartments at Rs 28 lakhs as starting price. Of them all, ECR is most costly as it offers apartments near the beach. There is a lot of planned development going around in the area which attracts old money for building villas here. The starting cost of property in the area is around Rs 80 lakhs although plots of land are available over here than cost between Rs 5 and Rs 10 lakhs.

The projects being developed in South Chennai have all sorts of facilities like swimming pool, club house, big lawns and gymnasiums. Most of these projects offer possession to buyers towards the end of the year 2015. Some of these projects might also be delivered in the upcoming 6 months in Tambaram and Pallikaranai.

According to owner of AK Real Estate, Khader Khan, South Chennai has the highest demand from buyers employed in the IT sector located in the area. Proximity to the IT hub and affordability adds to the plus points of the area. Moreover, the localities have flats to suit different budgets that arouse the interest of different buyers to invest in this area.

What works actually in the favour of South Chennai are infrastructure and connectivity. It boasts wide connectivity via a network of railway tracks and roads. The Chennai Suburban Railway’s south line network links most of the localities with Chennai Central.  Moreover, those people moving outside the city towards Puducherry could drive through the ECR or East Coast Road which is a 2 lane highway and located at a distance of 1km from Thiruvanmiyur. Prominent colleges and schools and industries in the area, South Chennai has begun witnessing increased demands of housing units.

Why Kolkata’s Population Is Moving Towards The Suburbs

Kolkata is facing a unique real estate situation of sorts. There are loads of apartment complexes and other residential units coming up in the city. These include condominiums, mass housing enclaves, apartment blocks and gated communities and even luxury villas and exclusive housing projects. The sheer diversity of projects on offer promises much to prospective customers of these projects. However, in what is a natural occurrence, people in Kolkata are moving away towards the suburbs and outskirts of the city. This is a natural trend that is being witnessed all across the city especially on the northern and southern fringes.

More and more people are shifting to the suburbs and outer areas as the main city gets more and more congested, clogged and chaotic. Kolkata as a city was always unplanned and this did have to end in total chaos at some point of time. As a result, the mass exodus of property buyers from the heart of the city to its external fringes is being majorly witnessed as mentioned earlier. Why this exodus? Average citizens from all walks of life are considering moving away to homes in the suburbs and locations connected to Kolkata by the train, bus and road networks.

The city has expanded rapidly and its boundaries and frontiers have always been in a state of flux and constant evolution. The main city has become overtly congested, what with the narrow roads, lack of proper parking space, huge traffic levels and other woes. The city gets worse in the rainy season as well with high levels of water accumulation. Alongside, there is almost no space left to build a house in major areas of the city. This is not a problem if you venture into the outskirts or suburbs. Venturing into the suburbs is now a common activity even for those who have to commute to workplaces and offices in the central business hubs of the city.

This aspect proved to be a deterrent for many individuals and professionals earlier. As a result, many people did not quite like to venture into the outskirts or suburbs owing to these reasons. However, connectivity options have been greatly enhanced in today’s times. All major suburban areas and outskirts now have thriving transport networks, auto rickshaw routes, bus routes, governmental buses and of course, a solid train network. In some places, metro railway stations are not too far away as well. This makes it easier for people to commute to faraway areas and business centers in the heart of the city without any problems.

Alongside, suburban areas have witnessed skyrocketing development in recent times. There are many suburbs that have been transformed into major residential hubs these days. The demand for property in these suburban locations is very high because of prices that are still affordable and viable. Alongside, people are moving to the suburbs in large numbers in order to avoid congestion, pollution, traffic related problems and shortage of space. This makes certain areas very hot destinations currently in the Indian property market.

The Indian property market is very saturated now and the same situation has been prevalent in Kolkata as well. Prices have stabilized in areas at the heart of the city and other premier locations. As a result, many people are finding it unaffordable to buy these properties. They have no choice but to look for affordable housing options. These are only available in suburban areas and of course, the outer fringes of the city. There are some areas like Budge Budge, Maheshtala, Garia, Boral, Kamalgazi, Sonarpur, Rajpur, Baruipur and parts of the EM Bypass which have been witnessing rapid development owing to a sharp influx of customers into the area. Developers and real estate companies are also leaving no stone unturned to draw more and more customers to areas on the outskirts of the city. There are multiple projects being undertaken by top notch developers in these locations. These include entry and mid range projects which are priced within the INR 20 lakhs to INR 40 lakhs mark and also a few premium housing projects which cater to upper tier customers.

Areas like Sonarpur and Baruipur have developed beyond recognition. These areas have top notch transport networks and other amenities. Alongside, the EM Bypass has developed beyond belief. Multiple big ticket projects are coming up on various parts of the EM Bypass. Areas like the Jadavpur Connector and Kasba which are in close proximity to the actual Bypass, have now transformed into mini townships of sorts with top notch properties being sold, easy access to major amenities and other benefits. Alongside, these areas have also witnessed mushrooming hospitality endeavors, projects and other places of leisure and recreation. This is very much the trend in most areas on the outskirts.

Additional infrastructure usually comes hand in hand with big ticket real estate projects and properties and this has been witnessed all throughout the city. Areas like Garia and Boral are also developing rapidly owing to availability of flats in the same range of INR 20 lakhs to INR 40 lakhs as mentioned above. Prices are slightly more when it comes to the EM Bypass and areas like Maheshtala and Budge Budget still have properties priced at much lower rates. Additionally, one can still find viable plots of land in these areas and locations. This is one of the biggest advantages for investors looking to build their house. Building a house of one’s own is otherwise impossible in Kolkata.

Behala too, is another area which is witnessing the launch of multiple big ticket projects in recent times. This is another area where developmental winds are holding sway in full force. Behala still offers multiple affordable options to end users and investors especially in areas like Chowrasta, Thakurpur and even close to Joka. The mass exodus to the suburbs and outer fringes of the city is slated to continue even in the near future and developers are extending their reach to areas which are outside the main city in the bargain.