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