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.

How To Buy A Flat Without The Help Of A Real Estate Broker

Quite a few real estate buying and selling transactions are made in a year without involving a real estate brokers in the business. Hiring an agent requires a lump some amount to be paid for carrying out the deal by the buyer. Sometimes the seller too needs to pay some amount to the real estate agent in this business. Some buyers especially those buying a real estate for the first time do not trust real estate agents and may seem to be tired of them. At times such feelings may be proven true if the agent is interested only in closing the deal and not interested in the deal. But, this is not the case with most agents. There are certain risks involved in working without an agent, which however can be overcome. All the paper works have to be done by the buyer himself/herself. Negotiations have to be done and many more such works. However a few things kept in mind will help a buyer make a nice buy without a real estate agent.

• Pre-approval mortgage: Once the mind is made to buy a flat it is necessary to be pre-approved for loan. It would not be certainly possible for anyone to offer full cash for buying a flat or house under normal circumstances. A pre-approved mortgage will ensure how much amount one is liable to get. This will help in making the deal in future while making an offer and negotiating with the seller. This secures the financing part. This will also provide assurance to the seller that there is back-up for the offer and that the buyer is a genuine buyer.
• Search for flat on sale: Now a search for the flat of your choice should be made. There a wide range of sources to search from. There are real estate magazines to look into. Those on sale by owners should be considered as the deal is going to be carried out without an agent. Then there are the newspapers who publish advertisements from sellers in both real estate sections and classified sections. Some real estate websites online provide advertisements with great details and are really good sources to rely on for flat buying. Lastly, one could take a tour at desired localities to search for flats on sale.
• Contacting the owner: This is a short but nevertheless a very important step. The owner is to be contacted once a flat has been targeted. It is necessary to talk to the seller and clear all doubts that arise in the mind before seeing the flat. After the talk make an appointment for viewing the place.
• View the flat properly: Once the talk is over it is time to make a complete tour of the place that the buyer wishes to buy. It is really necessary to see the place in person. The place could be visited on the own or the seller or listing agent could be taken along with for making the tour. However if the listing agent is asked for accompaniment make things clear beforehand regarding the pay. He might expect the pay that was supposed to be paid to the agent not hired in this case.
• Look for an attorney: A real estate attorney is a must while buying a house or flat even if an agent is not required. This attorney should be hired before the dealings have gone too far. It is better to hire one as soon as the choosing and contacting the owner of the flat is made. The attorney will be essential in making the final deal and as soon as the paper works start. For verifying legal matters and the authenticity of the whole transaction an attorney of real estate is necessary.
• Offers and negotiations: Once the right flat is chosen according to the desire it is time now to make the offer. Let the offers be made in clear terms without keeping any grey areas. The offer should be less than the listing price as the seller would not require paying the buyer’s agent as there is no agent involved in the whole dealing. Make the negotiations wisely until an agreeable term is reached. Make sure that all contingencies are included in the negotiation. It will save the buyer’s money if the deal falls for any reason. Everything should be put down in pen and paper. The legal attorney’s help should be sought in the matter.
• Inspection and appraisals: The inspection procedure comes up next. The buyer needs to be present in both of these along with the real estate attorney. Since an agent is absent the listing agent could be cajoled into take some extra effort.
• Contract and closing: After so much hard work it is time to close the deal. The attorney should check and review everything properly before the signing work begins. There might be quite a lot of papers to sign on the part of the buyer. The seller requires some signing too. Let everything be put down in writing. The mortgage will be processed and the deal will be closed and the flat finally belong to the buyer.

Buying a property is not impossible or difficult without the involvement of a real estate agent. There are myths flying everywhere regarding the cons of buying houses and flats without hiring an agent. These are only myths and one must look beyond these if serious buying of flat is in mind of a person. The secret is to know the tactics of real estate purchases and the legal matters by heart and soul. This knowledge would never let the buyer be deceived in any way. It would also not require hiring an agent and thus prevent paying extra that is the agent’s due. Involving an attorney is a must however. The simple guidelines given above would certainly be beneficial for an aspiring buyer of a flat to undergo a deal with courage, especially for first time buyers. Be courageous and be independent.

Innovation- The Added Factor In Mumbai Real Estate

The Indian real estate industry has Mumbai as its hub of innovation. Migration of people from various parts of India, lack of space and increasing property prices have driven Mumbai’s property market to constantly innovate in every new project. This factor is solely responsible for keeping the real estate market in Mumbai moving.

The country head of Imperial Servcorp, Taranviir Kaur has said that innovation is the process through which enhancement in value can be achieved in commercial activities by introducing new or better goods and services and organizational and operational processes.  It acts as a significant factor for enhancing competitiveness, improving market share and quality along with lowering of costs. With changing market dynamics and business, the resources being pumped into business should also change. A good innovation is the introduction of virtual offices. It gives a corporate existence in the Indian CBD and flexibility for working from anywhere. It keeps overheads low and helps the corporate focus on sales. Trade experts belie that the process of innovation is ongoing over product development- construction, design and delivery. Technology is being employed extensively for making new benchmarks; projects are being styled bearing in mind environment friendliness and customer expectations. Therefore, no single factor can be emphasized upon. The process is complete and ongoing. Because of customer demand, real estate in Mumbai is coming up with newer technology and design. Compared to other metropolitan cities, Mumbai has the highest shortage of space which is why all builders are emphasizing on space based solutions.

Rajesh Krishnan of Brick Eagle Group has explained that builders are developing properties in the form of townships on the periphery of the city because it is more economical. Khopoli, Panvel, Karjat and the EMD or Eastern Mumbai District are hotspots for real estate development and they will benefit much due to the Delhi-Mumbai Industrial Corridor and the 12 lane multimodal highway from Virar to Alibaug projects.

Financial aspect is one of the key reasons for innovation where the entry point is being kept fairly low at 10 to 15 percent and builders also offer several schemes where buyers will have to pay less. Parallel funding also aids financial innovation and provides support for the growth of the real estate market. Discounts are one of the most common innovations in the market for real estate.

CFO and COO of the Wadhwa Group, Srinivasan Gopalan has said that all good developers are trying to innovate in some form or the other. Green projects, solar panels on the roof top and theme related styling are some of the innovative aspects that are being implemented much in real estate projects. Swimming pools were considered to be luxury earlier but nowadays they count as necessities. The parameters of innovation keep changing with time. A branded developer pays more heed to innovation than a non-branded one because they need to make sales and compete with other builders regularly. Lesser known developers cannot provide such amenities to customers. The models of innovation offer wider choice to customers as they can decide to pick a greener home with more amenities. Security is at its zenith and mechanization is there in everything. Modern facilities are being used to customize apartments according to requirements. Some 5 star hotels are also entering the realm of real estate and they are developing property in the form of service apartments. Some of them are also tying up with top rated hospital for providing 24 hours medical assistance to buyers.

Innovation In The Mumbai Property Market

The real estate market in Mumbai is much cluttered and much expensive compared to other metropolitan cities. This is the very reason why innovation is required because as commerce and population expands, faster modes of transport are required. President of Marketing at RNA Corp, Surjit Singh had explained that property market in Mumbai is unique in its own fashion. It cannot be compared with any other market as it has its own set of challenges. The challenges faced by the market make it more difficult to improvise and provide value to customers. Customers have become very demanding in their own way.

Development of something totally new or improvising on what currently exists is the essential ground work for innovation. Both builders and buyers are benefitted in multiple ways. Some of the innovations result in efficiency and better value, while some others can improve the living conditions and convenience. Automation of homes can spell savings and improved use of technology in security, apart from better style and convenience.

Tips for buyers to decide the premium value that corresponds with the innovation

Experts are very sure that Mumbai cannot go wrong in terms of innovation ever. One of the innovations, which is a good value for money to buyers is mechanised parking. Branded developers have the ability to provide such innovations which are technologically advanced. Buyers can recognize their wants and needs and match accordingly with the property options available to them along with the supportive facilities available with the alternatives. Innovations do not necessarily add cost to properties. On the contrary, they can bring down property prices owing to the use of modern technology. A premium is charged only if the input costs are impacted.

For selecting the property after evaluating the premium for innovation, Srinivasan has suggested that buyers should assess the property first and then the facilities provided. Keeping both factors in mind, buyers should take a decision regarding the property. Developers quote prices according to their condition of the market. Therefore, there will not be much shift in prices, except 2-3 percent give or take.

To be on the safe side, a buyer should judge his own budget and then take a decision about the suitability of the property. Properties that are near office areas are bound to be more expensive as residents would not need to spend much time commuting. Moreover, they would have other amenities such as restaurants, departmental stores and parks etc. nearby which are much important for quality living. 

The Real Estate Scenario in Indian Metros

Property in Delhi: In the past few years, there have been a number of foreign investments made in Delhi for commercial establishments which has helped open up new avenues for the real estate market in Delhi. Many multinational companies that have come in on the commercial properties of Delhi have helped create greater employment opportunities and consequently demand for residential space in and around the area has also increased by about 10 fold. People not only from Delhi but all parts of the country have contributed to this increased demand as job opportunities have led them to migrate to Delhi. Families who already own property around Delhi have viewed this as an opportunity to let go of their 9-5 routine jobs and use their property investments for some returns through renting out of office space, PG accommodations etc. On the other hand, lower and middle income group families for whom it had been difficult to purchase homes and flats for all these years are finding affordable housing projects coming up for them to invest in.

Investors in Mumbai: For those looking for opportunities to make new investments in flat Mumbai, the suburbs continue to come up with newer residential projects since the past few years. The skyrocketing prices of apartments and residential property both in central Mumbai and its suburbs have made it possible only for the high income group families to invest in the city. However, projects around Navi Mumbai have come up with many comparatively cheaper and affordable housing projects that have caused Navi Mumbai to flourish considerably. However, in the next few years, Navi Mumbai too shall see its share of price appreciation. Investments made here can be a promising venture for good returns in the future.PG accommodations Mumbai have also become quite popular.

Apartments in Mumbai

Apartment buying in Bangalore: If Delhi has made good progress in the IT sector, Bangalore is not far behind. Bangalore too has migrants from all over the country owing the development of the IT sector. The rise and demand for property in Bangalore is not restricted to the central city alone but extends to its suburbs as well. The following real estate hotspots: Bommanahalli, Electronic City, Begur Road and Hosur have numerous upcoming residential projects and are promising sectors to make long term investments in. Bommanahalli is located close to Hosur – the IT hub of the city which makes it easier for commuting for daily office goers, is in close proximity other important establishments like hospitals, shopping centres and much more. Hosur is a satellite town of the city and is like a focal point for developers who have created residential property for mid and luxury income group families. While Hosur is the IT hub, Electronic City is the commercial hub. For office and commercial spaces, Electronic City is an ideal property location. It also has sufficiently good connectivity to other main parts of the city like Hosur, Whitefield, Bannerghatta Road, Sarjapur Road etc.

Online Sources: Log on to online portals to find out information and search through a wide range of classifieds on upcoming residential projects in Bangalore, accommodations for paying guest Mumbai, service apartments Delhi and much more based on the city of your preference.

Property Investment in India for NRIs

Growth of Real Estate in India: While many countries around the world have been combatting recession, India on the other hand has seen immense growth and still holds much potential in the real estate sector with reports revealing that investors have gained up to 20% as returns on their real estate investments. Investments made by NRIs in the recent years have also been influential in creating an inflow of monetary gains for India. 

Investment Schemes for NRI: A lot of avenues have been created in the past few years that have helped and enabled many NRIs, PIO and OCIs to make investments through property in India. The RBI grants permission to own property in India if the person possesses an Indian passport and he or she is free to invest in either commercial or residential property as per his or her will.

Acts passed by RBI: FEMA or Foreign Exchange Management Act has been implemented by the RBI that has helped in relaxing the strict rules of buying and investing in property on Indian soil. Repatriation of the capital invested in Indian property is also a major cause that has assured NRIs and encouraged them to make investments in the country. According to this, all capital gains obtained from the transaction of property can be remitted outside of India once the person pays his due taxes on his gains. Since repatriation of funds abroad is possible now, more and more NRIs are looking for investment opportunities in India.

Eligibility for Home Loans: Relaxed norms have also made it feasible for NRIs to procure home loans based on any property that he or she possesses or new investments. The GMI or gross monthly income plays an important role in determining the amount of loan that the person can be eligible for.

Why Invest in Property in India? : Apart from the very obvious reasons of a booming real estate market, and affordability of NRIs to invest in property in India, a major reason for doing so is the sense of security. Possessing property in one’s homeland gives homeowners a feeling of stability and security in terms of owning a home. It also serves as an additional source of income and moreover, they attach a sentimental value to it as well.

Online Hunt for Property: Online portals have become the latest classifieds hotspot for Indians who are learning to avail of the many advantages and facilities the web has to offer. Look for land for sale Delhi, sell property in Bangalore, rent apartments in Mumbai everything is possible through these. The web based community requires users to sign up and become members thus enabling them to post or sift through innumerable free classifieds. Currently, Delhi NCR has its property highest on demand and there is much scope for property for sale in Delhi as well as investment. Look no further and log on for more details on upcoming residential and commercial projects based on your city of preference.