RBI Bans Subvention !!!

After the land bill getting approved from the RAJYA SABHA, now its another hit by RBI for the developers.
RBI has recently banned the subvention scheme or the 80:20 scheme which the developers used as a marketing tool to sell and promote their residential projects. The government has for sure pulled up socks against the real estate developers.

Bad News Developers !!!!

I wrote about the subvention plan earlier in my blog http://realestatenirad.blogspot.in/2013/07/subvention-scheme.html. This post discussed about the subvention plan, its benefits both to customers and the developers. The question arises Why should RBI ban a scheme which benefits both, the customers and the developers ?
I would like to enlighten the fact that the RBI has actually banned the upfront payment of 80% of total cost by the bank to the developer. This means that the developer cannot  demand the full payment from the bank under subvention irrespective of the construction status. This is what our respected RBI trying to curb.

In my opinion this would not affect the real estate industry, the developers or the customers. Most of the developers in NCR do not practice the process of acquiring the 80% of cost under 80:20 scheme at one go.
They follow the Construction linked plan while getting the disbursal from the bank. So the matter of banning upfront 80% disbursal from bank is null or void in NCR. Recently BPTP launched "Pedestal", Independent floors in Sector 70 A, Gurgaon under the same scheme. their subvention is planned as per the construction linked plan, which means, they demand the payment from the bank as per the construction stage.

Effect of RBI ban on Subvention !!

As customers move deep into the ban details, they would come to know that their is not any change in the plan. As earlier said that, it is a ban on the upfront payment of 80%, which is not practiced  by developers in NCR, the customers would come to know that the ban does not affect the subvention in NCR. But this is a fact which people will understand after getting deep into the details of the ban.
For Now, the developers are hit hard by the ban. The sales will surely come down as most developers used it as a marketing and sales tool. It was easier for a customer also, as he was not supposed to pay EMI till he get the possession or till the subvention period. Moreover the builder used this plan to generate funds at a lower rate of interest when compared to commercial loans or construction financing loans.
This move by RBI will make real estate transaction more transparent as the end users and the investors will come to know the facts of Subvention. For the financing authorities, this ban will compel them to think twice before financing a project.
In my opinion, RBI is trying to curb the generation of construction finance at the interest rate of retail home loan, as many builder used this technique to generate funds to finance their construction cost at a cheaper rate of interest.
Moreover as the loan was on the credibility of a individual, any default on the the loan(in the subvention period) would affect the credit score of the individual. RBI move is surely going to affect the builders who are used to malpractices with the help of subvention scheme.

Let's see what's next in the bag for the Real Estate Industry !!

If you found something useful in the post, remember to share it among your circle.


Thanks
Nirad K Singh

Land Bill 2013 !!!!

LAND ACQUISITION, REHABILITATION AND RESETTLEMENT BILL,2013

After the food bill getting consent it was the time for the cloth bill but we skipped it and came to a land bill being executed. We should have moved in the sequence of ROTI, KAPDA and MAKAAN but nevertheless, I expect a cloth bill in the near future.
Jokes apart, lets see what this land bill is, and how will it affect the real estate industry.

On 29.08.2013 the Lok Sabha passed land bill with 216 "yes" on the bill.
The major highlights of the bill are as follows :-
- Compensation for the acquired land @ 2 times in urban areas and 4 times in the rural area of the market value of the land.
- Consent of 80% of land owners for private players and 70% of land owners for PPP for acquiring the land.
- If a SC or ST land is acquired, the owner will be provided the same area of the land being acquired or two and half acres land (whichever is lesser) at some other place. If the land losing family of SC or ST is migrated to another district then other rules of rehabilitation and settlement also applies.
- If acquired land is sold again at a profit more than 40% of the acquired value, the profit is to be shared with the original owners also.
- Bill applicable on acquisition of 50 acres in urban areas and 100 acres in rural areas.
- The bill gives the right to states to impose restriction on acquisition of agricultural cultivation land.

Impact on Real Estate Industry :-

A simple impact which anyone can analyse is that the new entrants in the real estate industry will have to pay much more than before for purchasing land more than 50 acres in urban areas and 100 acres in rural areas.
This would simply affect the big infrastructural projects being executed and if executed would come at a premium price tag. With the bill being passed even the cost of the smaller pieces of land, which do not come under the provisions of the bill , will see an upward movement.
One of the highlights of land bill requires the consent of 80% of land owners for acquiring land by private players and 70% in case of PPP. This point will surely delay the land acquisition process as getting consent from the majority land owners requires a lot of negotiation with a lot of people. And for every negotiation every owner might not be available. So one can expect a major delay in the launching of next big housing or infrastructure project. This will not affect the retail users and the investors but will surely be a tedious job for a developer to complete.
The rehabilitation and settlement clause of the bill is expected to add that extra penny to the total cost of a house for the investors and the end users. The extra cost which the acquirer incurs, apart from the new acquiring cost, in the the form of rehabilitation and settlement expenses will trickle down to the overall cost of the final property.Thus increasing the total cost of the finished product . i.e. an apartment or a plot or a villa or a floor.
The major hit will be on the the affordable housing projects, as these projects are mainly dependent on the low cost of land. In my opinion, the concept of low budget will disappear in the future or the benchmark of the affordable housing will increase.
The bill confirms transparency in land acquisition process and safeguards the interests and rights of the land owners both in rural and urban areas. The only positive point, I could make out in context of the real estate industry.
So, as per the consequence of the bill, real estate industry will see a price increase of as much as 25% - 30%. It is a good news for the pre-bill investors as their return on investments will also see a sharp upward movement if this bill becomes a law after approval from the Rajya Sabha and our honorable President.

Follow and share among your circle, if you found something useful in this !!

Thanks
Nirad K Singh

How is Depreciating Rupee Affecting Real estate Industry ?

In the past few months, India has seen a major depreciation in the value of Rupee against Dollar. It is affecting the economy as well as the real estate Industry. The Rupee has depreciated 25-30% in the last few weeks. This depreciation has major affects on various industries, Real Estate being one.

Affects of Rupee-Dollar fight on Real Estate Industry :-

India imports a part of the raw materials , cement as well as the heavy machinery used in the construction process. Now with the increase in the value of dollar, these imports have become costlier and the overall construction cost has increased.The extra cost incurred in the import of these raw materials and machinery will be passed on to the end users or the customers in the form of escalation costs. This depreciation of rupee will make under construction property rates to move northwards.  The customers will have to shell out that extra bit of money from their pocket. 

The major contribution to that extra cost comes from the increase in oil prices. As India imports the major amount of fuel, the transportation cost also increases. This is applicable to all the sectors in India and so is applicable to the real estate sector also.

The depreciating rupee has forced the banks to increase the lending rates. Recently ICICI and HDFC bank have increased their lending rates which has affected the customers pockets.

The depreciating rupee is having a positive impact on the NRI's who are planning to own or invest into Indian Real estate. With the decrease in the rupee value, the NRI investors are attracted towards Indian Real estate industry as they have to shell out less money at the current rate of rupee than before. NRI's see this as a golden opportunity as for them the property prices in INDIA has decreased by 15-20%. The same property which costed them Rs 100 few weeks earlier is now costing them Rs.80 in terms of their currency.

So with lower rupee rates, Real Estate Industry can expect good sales from the NRI's especially during Deepawali time which is considered to be golden period in real estate industry.

One of the other communities who have gained from this rupee-dollar fight are the Indian exporters. They are booking more profits on the same articles than before. They can be the one who are better prospects to invest in Real Estate market.

So we can clearly make out that the this depreciating rupee has a negative impact on the local buyers but its a great opportunity for NRI's to invest in Indian Real Estate. Calculated predictions shows that the builders,channel partners and consultants will see an upward movement in the inquiries for real estate from overseas if the rupee does not stabilize in the next 2-3 months time.

Thanks 

Nirad K Singh 

Avalon Ridge View , NH8,Neemrana, Rajasthan

Avalon Group is soon going to launch a new residential project in Neemrana , Rajasthan. The project is bang on NH8 in the industrial town of Neemrana.

Tentative Details are as follows

2BHK - 1150 sq.ft
3BHK - 1550 sq.ft

Price- Rs.2725 psft.

Ing. Discount-Rs.100 psft
Land Area - 13.5 acres
Total Flats - 800-900
Booking Amt. - 3 Lacs & 4 Lacs

Notable Features:
Easy accessibility to NH8.
Very close to Japanese Zone in Neemrana.
Equipped with modern amenities.

Avalon Ridge View as an Investment !!
The location seems good but the only negative thing about it is the toll which is just before the site while moving from Delhi to Jaipur. With being very close to industrial hub and Japanese Zone, the project has the potential to deliver good returns on investment. Location not perfect but its not that dull too.
The reputation of developer is good and has recently seen enormous response for their project in Bhiwadi, Avalon Rosewood.
Pricing is competitive as projects from different developers are in the same range.
Good investment option only if you buy it at the first price with inaugural discounts and the channel partners' discount.

Thanks
Happy Investing !!
Nirad K Singh

Neemrana Real Estate !!

NEEMRANA

Neemrana, an ancient town in the district of Alwar in Rajasthan has become one of the hottest destinations of investment in NCR. Around 130 kms from Delhi on the NH8, Neemrana is rightly placed to become one of the hottest destination in real estate development in the coming 5 years. It is an important industrial hub along with Bhiwadi and Baawal in close viscinity. 

Major Developments in Neemrana

1. Part of the Delhi Mumbai Industrial Corridor (DMIC)

2. Around 2000 acres of Japanese Zone.

3. DMRC has plans to connect Neemrana with New Delhi.

4. Major Industrial hub with already operational companies like Daikin,Honda-Siel Cars,Hero,Nissan,Havells, Electrolux to name a few.

5. Proposed Greenfield Airport in Neemrana.

Neemrana is well placed with connectivity through NH8. Major MNC's are planning to set up their manufacturing units in Neemrana, Baawal and Bhiwadi, which forms the 3rd largest industrial hub in India.

With such massive plans for Neemrana, the requirement for quality housing will boost up in these areas.

Real estate Investment in Neemrana :

The development path for Neemrana looks bright. The Developments which have come and are yet to come is tremendous. With various MNC's planning to set up their manufacturing units in Neemrana, the real estate requirement will surely see a northward movement. The major reason for development is the 2000 acre Japanese Zone which has given a new face to an ancient historical town. The rates of property is quite low in Neemrana as of today. So, It can turn out to be a great investment option in NCR.  

The NCR real estate has already seen a transformation in the real estate prices in Bhiwadi. The prices of apartments have seen a constant growth in the last 1 year in Bhiwadi. Similar trend is expected in Neemrana.

Rajasthan Govt. is equally aiding in the development of Bhiwadi, Neemrana, Behror and Shahjahanpur in the form of RIICO. A realty investment in Neemrana will see a return of 70-80% in the next 3-5 years.

Neemrana Real estate is a long term game and one should not expect returns if their horizon is in months.

Infact, if your horizon is in months, keep away from Real Estate investment as it might turn out to be a nightmare. 

Real estate players have started building group housings in Neemrana. Major Players include Eldeco , Ashiana and Avalon.

Thanks

Happy Investing !!!

Nirad K Singh

Supertech New Project In Sector 68, Gurgaon !!

SUPERTECH NEW PROJECT ON SOHNA ROAD GURGAON

Once again a new opportunity for investment and for that matter, end use also Supertech is coming with a new project in Sector 68, Gurgaon.

Tentative Details :-
2 BHK (1200sq.ft)
3 BHK (1600 sq.ft)
4 BHK (2400 sq.ft)

Land Area - 28 acres
Price Band - Rs.5500-6000 psft.
Booking Amount - Rs. 5lacs
Tentative Launch date - September 2013.

Analysis of the project :

The pricing for the project seems good as far as the location is considered. It is minutes away from the already developed Sohna Road. Again for this project, Location is the very important parameter which can define its fate. Moreover, Google is planning to shift their office to Sohna Road, rates for various projects on Sohna Road will move towards North and that would benefit the Supertech's project also.
For investors , its again the 1st price for this project, Location is good and Builder is average. So one can consider it as an strong option for investment in Gurgaon as far as you are planning for a long term investment(more than 2 years).

Thanks
Happy Investing !!!
Nirad K Singh

Dwarka - Manesar Expressway !!

Northern Periphery Road

The Northern periphery Road, commonly known as Dwarka Expressway has been fascinating Investors ever since it came on papers. This 18 km, widest expressway is being developed under the PPP model and will connect Dwarka with Gurgaon on NH8 near the Kherki dhaula Village. It is being planned as an alternate connectivity between Delhi and Gurgaon and is expected to ease the traffic on NH8.
The property prices alongside Dwarka Expressway has seen an upward trend ever since the 1st project was launched. Numerous projects were launched and all have seen good price appreciation in it. Investors, also made huge money by investing on D-Eway. The prices shot up from Rs.2500 psft to a whopping Rs.10500 psft (Tata Sector 113). There were some projects which did see very less appreciation while being very close to D Eway.

Salient Features of Dwarka Expressway :-
1. Widest expressway of Asia.(150 meter wide)
2. Very Close to IGI airport and West Delhi.
3. Well planned Infrastructure.
4. Will reduce travel time between Gurgaon and Delhi Drastically.
5. Diplomatic Enclave in close vicinity.
6. Commercial Developments along side.
7. Metro Route Planned with D Eway

Dwarka Expressway as an Investment !!

Its not very difficult to say that Dwarka Expressway is a one of the best investment option available in the NCR after analyzing the past trends.It was and will be a destination which will keep on attracting investors by its extra ordinary returns. Many builders have come up with their world class projects alongside D Eway.
It is obvious, that it will be a place to stay in the near future with all the modern facilities and excellent connectivity.The Sectors alongside D Eway will soon become the posh sectors of gurgaon with options for both middle and upper class people. The Expressway has got a diverse range of offerings in terms of housing and commercial developments. The Price tag starts around Rs.50 lacs and shoots up to Rs. 8.5cr.

For a new investor, I would suggest that if you are investing on Dwarka Expressway, you should have patience and ability to hold your property for the next 2 years. Gone are the days when D Eway used to give returns in 6 months time. I agree to the point that D Eway prices has saturated to some extent, but still it has long way to go. This is the essence of Dwarka Expressway that TATA came up with a project with a price tag of Rs.10500 psft. The average prices on D Eway is around Rs. 5000 psft which is expected to double once the Expressway is operational.

Current Status :-
The prevailing litigation on D Eway is almost cleared now and NCR people can expect this expressway to be operational in 2 years time.(2nd quarter, 2015).
Early this year, there were some obstruction from the New Palam Vihar residents.

View 
Dwarka expressway will be a dream come true for the government officials,residents and the investors.Its very obvious that the hype created along Dwarka Expressway will not go into vain and one day it will come into operation. Its just a wait and watch game.

Happy Investing !!

Nirad K Singh

Subvention Scheme !!!

SUBVENTION SCHEME 

People who have interest in the real estate industry would have heard about the aforesaid word. Now a days it has now become a catalyst in boosting up the sales of any project and various known names (developers) use this tool to sell their projects. It is also fascinating home buyers who live on rent and cannot afford to pay the EMI and rent simultaneously.

I would like to elaborate more, the meaning of Subvention.

Subvention is marketing tool wherein the customer pays only 15% of the under development property value at the moment and finances the rest from a bank,whose EMI and interest starts after a certain period of time or after the customer gets the possession of the property.

Subvention is an arrangement between three parties. Builder, Customer and a bank. The bank, on the eligibility and credibility of the customer provides a loan to the builder. This loan, for a customer is a housing loan,whose EMI will start after a certain period of time. Generally this time period is either 18,24 30,36 months or till the possession. Till the subvention time period, builder on behalf of the customer pays the interest to the bank. As soon as the subvention time gets over, the EMI for the customer starts. 

Benefits of  Subvention to the customer :-

1. By paying only 15% (till subvention period) customers owns a property.

2. Less capital blockage. Till the subvention period one needs to pay only 15%.

3. Good returns expected by investing the minimum amount.

4. No hassle of Pre EMI or EMI.

5. Flexibility and ease of payment.

The only limitation of subvention for a customer is that his/her loan eligibility is blocked and the property is not transferable till the subvention time period is over.

Now the basic question arises, Why would builder pay the interest on behalf of customer ?

This subvention scheme helps the builder in the form of an economical way of fund generation as the builder is getting the money in form of a residence loan which is much cheaper when compared to commercial loans in terms of rate of interest. Moreover the builder gets the whole amount at one go, something you can correlate to a down payment plan.

We can conclude that subvention is a win win situation for both, the builder and the home seeker.

Comments Welcome !!

Nirad K Singh

World Trade Centre - Noida

WORLD TRADE CENTER - NOIDA

The World Trade Center, as we all know is a global brand present in 330 cities across the globe and houses most of the fortune 500 companies in its premises. The WTC Brand which houses around 1 million business in the world, is coming up in Greater Noida on the Yamuna Expressway. It is located in the 600 acre tech zone alongside the Yamuna Expressway. 

Spire Tech along with Sun World is developing the prestigious WTC . Spire World has got the licence of developing the World Trade Center in India.

The project will consist of office spaces, retail spaces, studio apartments and a 5 star hotel in an international standard premises.   

Details of the project :-

Furnished office spaces (Virtual) - 100 sq.ft. on wards @Rs. 7200 psft.

Furnished office spaces (Lockable) - 350,525,870 sq.ft @ Rs. 7200 psft.

Unfurnished office space (Virtual) - 500 sq.ft on wards @Rs. 5150 psft.

Unfurnished office space (Lockable) - 1000 sq.ft on wards @Rs. 5150 psft.

Returns :-

12% assured return till possession.

1st lease Guaranteed (36 months)

Salient Features.

1. Global brand which accounts for 1/3rd of global trade.

2. One brand which has 1 million business in its premises.

3. Security of investment

4. Returns guaranteed for the next 5-6 years

5. Research shows, WTC has 18% higher rental and 33% more occupancy.

WTC Noida as an Investment !!

As earlier quoted, a global brand which houses a million businesses across the globe is surely a place to infuse your hard earned money. WTC is a brand which is recognized all over the globe and has always become a landmark in the area in which it is located. Researches shows that WTC offices give higher rental and has more occupancy than any other commercial building in the same locality.

WTC Noida is located in the tech zone, Yamuna expressway. The government has allotted the land for IT development, in which NIIT is already operational. Wipro, infosys have their land in the same zone. Many group housing are coming up in the same vicinity. So there is no doubt, that the area will emerge as one of the destinations to look forward to. 

The main reason to invest in it, is the returns which the builder is guaranteeing. The builder guarantees you return for the next 6 years (3+3). Approximately 60% of your investment is returned back in the next 6 years, plus, you have a property in WTC. So, with the cost of 40% you own a property in WTC whose value will at least double in the next 6 years (2013 - 2019).

One can compare this WTC Investment with a Bank Fixed Deposit, former giving a better rate of return.

With Noida - Gr. Noida being the 4th largest IT-BPO destination in India and housing more than 50 IT MNC's is considered as one of the best location in North India.Furthermore, hi tech infrastructure, Connectivity to Delhi, Gurgaon, Faridabad, F1 Circuit, Gautam buddha University etc add few more feathers in the hat.

Comments Welcome !!!

Happy Investing !!

Nirad K Singh 

Krish launches New Project in Bhiwadi, Alwar By pass

Krish Launches a new Project on Alwar By Pass, Bhiwadi

Krish developers has come up with a new project on Alwar By Pass, Bhiwadi. Now the most exciting thing which fascinates me is that the project in located before the toll. The location is one of the best of bhiwadi.

Following are the details 

2-3 BHK (800-1250sq.ft)

Price @ Rs. 2600psft

Inaugural Discount - Rs.100000 /-

Important Features :-

1. Located on Alwar By Pass

2. Located before the toll on the Alwar By Pass.

3. Already developed area with people residing in the near by societies.

4. One of the known builders of Bhiwadi.

5. Malls already operational in front of the society.

Krish Aura as an investment !!!!

As earlier mentioned, the location is the best feature of the project. In terms of location , I would say that the location already has ready to move societies with occupancy of nearly 80% on an average. The ready to move in societies are at a BSP of around Rs. 3500 psft. So a deal at Rs.2600 psft at the same venue is worth investing. Furthermore, the developments which is gonna come in the next few years at Bhiwadi will add few more feathers in the hat. 

The demand for group housing in Bhiwadi will increase with leaps and bounds in the coming few years as it is becoming one of the most prominent locales in the NCR. Some of the manufacturing units which have already set up or planning to set up units in Bhiwadi include Honda,Hero,Honda Siel,Gillete India,Blue star,Kajaria,Parryware to name a few, will add up to the demand of residential group housing societies.

The DMIC (Delhi Mumbai Industrial Corridoor) will also play an important role in making Bhiwadi a most sought after destination.

With such parameters attached to Bhiwadi a return of around 80% is expected in the next 3 years.

Apart from Investment, the area before the toll on Alwar By Pass, is also good for end use purpose.

One can easily think of having a second home in Bhiwadi. 

Krish Aura will give a stiff competition to the newly launched project Avalon Rosewood (March 2013) in the same locality in terms of pricing. 

Its a simple, small and safe investment. But don't forget to bargain for discounts on it.

Happy Investing !!!

Thanks 

Nirad Singh 

  

Gaursons New Project on Yamuna Expressway

Think trust. Think Gaursons

Gaur is coming up with a new residential township on the Yamuna Expressway, Gaur Yamuna City.

Right now they have opened bookings for a group housing of 6.5 acres.
Following are the details
2-3 BHK options ranging from 1000 - 1375 sq.ft.
Price - Rs. 2095 - 2815 psft
G+26 story
Total apartments - 1400

Important Features
1 . Bang on Yamuna Expressway
2. Very close to F1 Circuit and Night Safari
3. Reputed Builder.
4. Part of a 300 acre township.
5. Huge potential of growth in coming 3-4 years.
6. Competitive pricing

Gaur Yamuna City as an Investment !!

From the investment point of view, the project has surely got a brand name attached to it. The builder is reputed and has already delivered many projects in Indirapuram,Ghaziabad and Noida. No question mark on the builder.
The location of the project will surely get developed in the coming 3-4 years. Though the infrastructure is already developed, but its difficult to live at such a place at present. One cannot think of possession for at least next 3 years. This is the time to invest on Yamuna Expressway as it is still at its inception stage and as the time passes, it will be one of the destinations to look forward to. With infrastructures like F1 track, Night Safari, International stadium to name a few, this area will come up as a city in itself.
The government also has huge plans for this mega upcoming satellite township. The government has already approved a 650 acre tech zone on Yamuna expressway. Companies like Wipro, infosys have acquired land in this tech zone. NIIT is already operational.
Many big universities are present alongside Yamuna Express Way.
With such developments paving its way , its obviously the destination for investment which would be a cash cow in the long run for an investor.

I suggest go for Yamuna Expressway and HOLD your property for next three years.
And do come back after 3 years to thank me.

Comments welcome !!
Happy Investing !!!!

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DELHI NCR - Future of Real estate

 Future of real estate in Delhi NCR !!

If we look at the trend ,we can easily say that the NCR Real estate has been growing for the last 10 years.

This growth has various macro level reasons. People migrating from various parts of the country and settling in NCR has led to the need of more and more houses. The real
estate industry has adjusted to the massive demand generated. The demand of being close to Delhi has boosted the realty market.

An average of 18% hike in prices has been recorded every year . For example , If we consider Sohna Road, Gurgaon,the average rates 5 years back were Rs. 2400 psft and today the prices have doubled twice.

If we consider these facts,one can easily comment that the future is bright...!!! But is it so...?

Let us look at some parameters for real estate growth which is about to come in future.

If we analyse, at the present moment,the real estate market in NCR is experiencing a setback. The major reason is the the inflation rate, Home loans rate , Cost of the property and the Rupee - Dollar battle.

This is the current scenario , but as an optimist,I would say that the growth in Real estate market is very close.

Government is supporting the public private partnership (PPP) model and is providing every support in creating a hi class infrastructure. The requirement of a good infrastructure ,Connectivity,Better standard of living etc. will act as a catalyst in real estate growth.

The upcoming roads like the Yamuna Expressway,Dwarka Expressway,Southern periphery road ,KMP Expressway are all experiencing good response in terms of residential and commercial projects being launched and they are going to be very popular in terms of infrastructure,Connectivity and a better standard of living. The popularity of these expressway and the projects on them will surely have a positive effect on the capital value.These days a lot of residential development at an affordable price is going on the Yamuna Expressway. Jaypee ,Gaursons,Supertech ,ATS etc are leaving no stones unturned in developing a masterpiece on Yamuna Expressway.

This is the time to invest on projects on Yamuna Expressway because this is the area which is gonna see great upward movements in the price in the coming 4-5 years. Government has allotted a 650 acre land for developing a Tech Zone beside the Yamuna Expressway. Huge residential and commercial developments are planned on Yamuna Expressway. But the only key to gain out of these developments is patience.

If you planning a short term investment,Yamuna expressway is not the place.

My suggestion - Invest on Yamuna Expressway and wait, to see the scenario changing. 

Happy Investing !!!!

Nirad Singh

  

Pre Launch Projects !!!

PRE LAUNCH

Delhi NCR investors and end users must be quite familiar with this word. But what does this word actually means in context of Real Estate?

It simply means, from the builders side, that "we are going to develop this land into a group housing but we are still in the phase of getting all the approvals and clearances from the concerned authorities."

   

It refers to builder raising funds for his upcoming project without the necessary approvals.
It is a tool which builder uses to check the demand for the project which it is going to develop.
Is it fair ..?
Now this question has a complex answer. For an end user, it is really difficult to decide without the total details of the group housing which will come up. Maximum end users keep themselves aloof from such phase.
Now ,if we talk about an investor, this is the golden period for him. He knows the importance and benefit of pre launch.The simple benefit he gets, is of the price and the short term return on his investment.
Is it wise to invest in a pre launch.....?
People who have made huge money out of real estate are either, one who had huge land bank or the one who invested in a pre launch. The Pre launch is not that risky if one is investing with a reputed builder.

Benefit of a pre launch revolves around only one Parameter :- THE PRICE.

So if you are new to Real estate Investment and you hear the word PRE LAUNCH ,just give it a try .
It might give you handsome returns. The only thing you need to check is the background of the developer.

ITS BETTER TO INVEST AND WAIT..... THAN WAIT AND INVEST !!!
Share if you understand the meaning.

Happy investing !!!!!!

Gurgaon Real Estate - Investors paradise !!!

As earlier quoted "the city with 3rd highest per capita income",Gurgaon has been an investors paradise for the early birds who invested in this city 8-10 years back. The rates were mouth watering when compared to today's scenario with very limited investors in the market .

Lets take a look at the Gurgaon real estate history and try to predict the next most sought destination in Gurgaon.

The first and the fore most real estate development in GGN took place on the today's prestigious Golf Course Road (G.C Road). This area today, is mostly inhabited with Gurgaon's most prestigious residential societies. The development here started 8-10 years back and the prices now have increased by 3-4 times.
It had the advantage of being very close to Delhi apart from the Today's Golf Course.One can easily find the costliest property in GGN on the G.C Road.
Very few were able to own a property on G. C Road. Some due to lack of foresightedness ,some due to financial constraints.

But those who missed Golf course road were happy to see a new development in the form of Sohna Road.
The 2nd development in GGN was seen on the Sohna Road. Eye witnesses say that once upon a time Sohna  
Road was a jungle. People dared not to go on that road after dusk. And today its one of the most sought destination in Gurgaon. Projects on the Sohna Road were launched at a mouth watering rates of around Rs.2400 psft. Its really tough to believe such rates today. The basic reason for this colossus development in the prices is the simple factor of Demand and Supply.
The demand for Group housing in Gurgaon has increased by leaps and bounds. Investors and the local residents of Sohna Road made huge money with the development of Sohna Road.

The 3rd Development came in the form of Golf Course Extension Road. This location is still in the development phase,as most of the projects are under construction. In today's time this road has left Sohna Road behind in terms of prices and G.C road in terms of infrastructure.The average pricing on this road is around Rs.8500-9500 psft with maximum pricing around Rs.14000 psft. Due to its pricing this road is frequently called as "God's Own Road"

The next development is in the form of SPR (Southern Periphery Road),an extension of the G.C. Extension till the NH8 and the New Gurgaon (Sectors 80's and 90's). The New Gurgaon is considered to be the most planned sectors of Gurgaon with better connectivity,better drainage system ,Underground electricity transmission etc.Developers like DLF ,Vatika have come up with world class townships in these sectors.
The development here started 3-4 years back and  investors here too, made good money.
The average pricing here is around Rs.5500-6500 psft which started from as low as Rs.2000 psft.

Last but not the least,came the most talked of destination in GGN - The Northern Periphery Road commonly known as the Dwarka Expressway.
It is an 18 km long,150 meter wide expressway connecting west Delhi ,IGI Airport to Gurgaon. It is one of the most preferred location in Gurgaon as it is still under construction,which means it has great potential for growth in the coming years. Various developers are planning their projects on both sides of this Expressway.
This location has again the benefit of being close to Delhi and IGI Airport apart from being very close to Diplomatic enclave. Dwarka Expressway has high fluctuations in terms of pricing. It has projects with pricing of Rs.4000 psft as well as projects with price tag of Rs.10000 psft.

As per me, Investment on this Expressway will give huge returns in a span of 2 years. The most valid reasons  to be :-
1. Widest expressway of Asia
2. Connectivity to IGI Airport and Delhi.
3. Connectivity to NH8
4. Metro route proposed.
5. Diplomatic Enclave
6. Price Band

The Expressway and the New Gurgaon is always compared when one talks of investment in Gurgaon.
Which one is better is always a question to be answered as both have their own significance in terms of Location,Connectivity,Pricing and delivery.


The above mentioned is completely my POV. Any discrepancy or dissatisfaction are welcomed in the comments box below.

Thanks
Happy Investing !!!!!

Basics of real estate investment !!

Real estate investment decision can be a tough job. An investor has to keep in mind a lot of parameters before investing into a real estate project. One also needs to compare it with other options available.
These comparison and consideration of various parameters actually increases the time period of the decision.
The decision making process becomes slow and sometimes may lead to a considerable loss.
In Investment advisory role, a good investment is taking the right path at the right time with right parameters into consideration.
Now, The basic question is :- What are the basics of real estate Investment ?

In my opinion following are important parameters which lead to good real estate transactions.

1. Location
2. Reputation of the Builder
3. First Price 

For any real estate project to be successful ,Location is the biggest factor. An investor should never compromise on the location of a project until and unless the project is from a very reputed builder who has the capacity to convert a dull location into a masterpiece in the coming time. A project near to a National Highway is always considered to be rightly located and past trends of price increase has proved it.

The reputation of the builder is also an important factor in deciding a good real estate transaction. As rightly said,the reputation of a builder can transform a dull location into a masterpiece.Reputation here refers to the background ,history,Quality of construction,timely delivery etc of the developer. In my opinion,an investor can compromise on the reputation of the builder only if the project has the best of the location.

Last but not the least,the price at which the property is being booked is the most important factor. Real estate history says,maximum profit is made only if the property is booked at the first price. Booking at the first price also has some risks attached to it. But an experienced investor can easily take these calculated risks.Booking at the first price gives an investor the EARLY MOVERS ADVANTAGE.
Compromising on the pricing parameter is feasible only if the above mentioned two parameters are being fulfilled.


Comments are welcome, both, supportive and argumentative !!!
Addition to the parameters will be accepted !!

Thanks !!!!

Where to invest in Real Estate - Gurgaon or Bhiwadi ..?

70% of real estate deals in Delhi NCR is done for investment purpose. Now, that's a huge percentage !!
So one can easily make out that the real estate market is driven by INVESTORS. Investors today have this question, GURGAON OR BHIWADI ....?
The answer depends on the amount the investor wants to infuse in real estate. At present in Gurgaon the capital needed for investment is huge and the time frame is a minimum of 12 months after which you get returns on the investment.Its a simple rule,the more you invest the more returns you can expect. So if one has good capital lying idle ,Gurgaon is the place.
For small investors Bhiwadi is the place ,where one can invest around Rs. 10 lacs for a year and can easily earn a return of 30% on his investment.

Following are some of the key strengths of both the places in terms of real estate investments.

Strength (Gurgaon)
1. Proximity to IGI Airport
2. 3rd highest per capita income ,means a huge capital flow.
3.Proximity to Delhi
4.Freehold property
5. Maximum MNC's presence

Strength (Bhiwadi)
1. 3rd Largest Industrial hub
2. DMIC
3. Affordable housing options
4. Prices
5. Great potential for growth in coming years.

Avalon Rosewood,Bhiwadi

Avalon Group is coming up with a  new project in Bhiwadi by the name of Rosewood.
Details are as follows.

Tentative Details-

Type - High Rise Residential Apartments

Unit Sizes: 1250 & 1650 sq. ft.

Location:  Located on 4 lane Mega Highway (200 ft Alwar Bypass road)

Bedroom: 2 & 3 BHK

price - Rs.2725 psft

The project is on the 4 lane alwar by pass with many delivered group housing near by.

Malls are already operational near the property.

Great time to invest in Bhiwadi.

Recent update on Avalon Rosewood Site.

Gurgaon - the city with the 3rd highest per capita income has become a centre for attraction for many investors in the past decade. With real estate Developments pacing throughout the city, it is surely going to become one of the finest planned city in the country.

But the question remains , Is it the city for the common man ? 

With the prevailing prices handful of people can afford to live in the city with the 3rd highest per capita income. Gurgaon has its benefits,but the benefits come at a cost.

Due to this cost investors have started looking for options for smaller investment. Thats the reason cities like Bhiwadi,Neemrana,Bahadurgarh,Sohna etc are seeing real estate boom.

Bhiwadi is one of the city which will come up very fast in the span of 3 years. With companies like Honda siel,Hero Honda,Honda Scooters,Saint Gobain,Pepsi,Jaguar,Gillete,blue star,Orient Craft,Kajaria Tiles etc,Bhiwadi will be the next industrial hub of Delhi NCR. 

Government is also supporting with maximum infrastructural developments in the city.

DMIC is planning to develop a freight corridoor which would connect the political capital to the financial capital which would pass through Bhiwadi and Neemrana.

Its the time to maximize returns by investing in the Bhiwadi Real Estate, but one should research well before investing into Bhiwadi. Research regarding builder,Location of a project,prices.
One of the main factor for Good returns in real estate is the Price at which you are booking a property.
Or one can use the basic thumb rule for real estate investment.
1. Good Developer.
2. Optimum Location.
3. The first price.

In Bhiwadi Real Estate,location is not a big issue as real estate development is going along only the Alwar By pass road. So one can easily understand the location and invest accordingly.
Some major developer of Bhiwadi Includes.
Ashiana Housing
Avalon Group
Omaxe
Krissh
MVL
Kajaria