Mutual Funds - Capitalizing on Real Estate Potential

Mutual Funds - Capitalizing on Real Estate Potential

The real estate stocks are difficult for an average retail investor to read. Wild swings have been the order of the day. However, mutual funds that have 3-4 per cent investments in real estate stocks allow a small investor to benefit from the surges but remain protected from the troughs.

Making an informed decision is necessary for the success of your investment goals. Mutual Funds (MFs) are certainly among the most sought-after investment instruments in the market but since you have to select from dozens of mutual funds and not all funds perform well, here we demystify the world of mutual fund investing for you.

What are MFs?

MFs are the professionally managed funds that invest in the equities of various companies, including real estate, listed on the Indian stock markets. These funds are governed by the Securities and Exchange Board of India (SEBI) that safeguards rights and interests of retail investors. Any citizen of India can buy mutual fund units that are available at certain Net Asset Value (NAV) declared every day by the fund managing company.

Should you invest in MFs?

As an investor you could well think of investing in the stocks of real estate companies directly. However, in order to make successful investment, you must take a look at the kind of volatility realty stocks witness on the stock exchanges. The Realty Index clocked whopping returns of 48 per cent between Feb 7, 2007 and Feb 7, 2008, on Bombay Stock Exchange (BSE) but it’s not that every investor who pumped in his money in realty companies directly into stock markets got such returns. In fact, there would be many who bought shares at the wrong time only to witness substantial erosion in the value of their investment.

Mutual funds, at the other end, are run by fund managers who have specialized knowledge over stock-market investing, and track market movements on professional basis. This way, they are well-positioned to make suitable decisions to invest and de-invest in the markets as per the circumstances. Though mutual funds do not guarantee a win-win situation all the way, investing in proven funds actually has the capacity to meet your objectives. As a matter of fact, the specialized investment management by mutual funds has evidently produced returns as high as 80 per cent a year, which a naive investor rarely achieves in the course of direct stock market trading.

Types of Mutual Fund

Selecting a mutual fund scheme mainly depends on your risk appetite, investment horizon, and future needs. Once you work out these factors, you can choose a suitable scheme for yourself.

Meanwhile, Brix Research brings you the insights on the various types of mutual funds classified on the basis of their investment strategy and time horizons.

Corpus investment Equity or Balanced - Equity funds park their corpus anywhere between 65 and 100% in equities. Balanced funds, on the other hand, maintain a fine balance between equity and fixed income securities. The latter option offers you security and the rate of return is relatively lower than the equity fund.

Growth or Dividend - Under a Growth fund, the returns generated over the capital invested keep on accumulating, and your cost per unit increases in tandem. You can redeem your mutual fund units, in case you want to book profits. Choosing the dividend option, on the flip side, entitles you to receive returns in the form of dividend that is distributed among the investors, on a periodic basis. Although it depends on the company’s policy, dividends are generally distributed 2-3 times a year.

Open-ended or Close-Ended - On the basis of investment horizon, mutual funds are divided into two categories: open-ended and close-ended. Open-ended funds allow you to purchase and redeem units at any time, however, in case of close-ended funds; there is a lock-in period under which you cannot redeem your mutual fund units for a certain period of time.

Specialty or Diversified - A Diversified Fund allocates its corpus into different sectors of FMCG, Auto, Petro, Pharma etc. In the event of slowdown in one sector, the other one may be able to compensate it. This way an investor invests his entire corpus in different companies and enjoys the advantages of diversification.

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Jaipur - Emerging Stronger From the Financial Crisis

Jaipur - Emerging Stronger From the Financial Crisis

Jaipur, popularly known as the 'Pink City' is one of the most promising real estate destinations in the country today and is considered to possess one of the best infrastructures.

Jaipur is all set to make a mark in the realm of economic growth in the country. The Jaipur Real Estate sector is looking very bright. The state government has taken various steps to make the city the next big destination for the Foreign Direct Investments. These include widening and improvement of major roads with flyovers and railway over-bridges, regularization of residential colonies on agricultural lands and improvement of overall infrastructure.

Jaipur property prices have shot up over the last couple of years due to an upsurge in demand. This has led to initiatives by developers like Parsvnath, Vatika and Ansal, to set up residential, retail, office and commercial spaces in the city. GE capital has moved into Jaipur and this has paved the way for the entry of a number of IT companies like Infosys and Wipro, which has worked to the city's advantage. Moreover, the real estate in Jaipur is steaming with a suit of mega projects. The largest of them include Mahindra's 3000 acre SEZ (Special Economic Zone), Anil Dhirubhai Ambani Group's (ADAG) Mega City Development Plans, and Hero Honda's Rs 700 crore manufacturing plant.

Jaipur properties today have become immensely popular because of the recent influx of investments in this sector. The reasons for this are manifold -

· Close proximity to the national capital, Delhi and NCR regions.

· Promising infrastructural base, an example of which is the existent 8-lane expressway

· Relatively lower property prices in comparison to adjacent metro cities

However, according to Jaipur real estate brokers, the global financial crisis couldn't have come at a worse time. Due to low liquidity of real estate and high mobility of investor capital, the city is witnessing a price correction. There has been a fall of 20 per cent in Jaipur property prices.

According to media reports, inflation has become all pervasive, and small investors especially will take a beating, because with huge debts and rising prices of home loan interest rates, new ventures are but a distant dream. In the past when markets slowed down, real estate developers held back supply. The difference this time according to Jaipur real estate builders however is that, a lot of private equity money has gone into the development of the real estate, which will lead to softening of prices and a consequent increase in supply.

Thus, even with minor hiccups such as the above stated, Jaipur is the place to be right now. It is the focus area of all major developers and it's essential to invest early to get high returns, feel industry experts.

George Gonigal provides you the best and latest info on Real estate in india. He would also let you know about property in jaipur. To know more, visit Real Estate Jaipur

Mumbai’s Residential Segment - Forever Active

Mumbai’s Residential Segment - Forever Active

Mumbai’s residential market has been active over the past two years. Most of the real estate activity in Mumbai has been in the middle to upper middle class segments, though the premium segment which has limited supply continues to attract buyers. There has been some appreciation in the values of prime properties in South Mumbai, Worli and Bandra areas.

Residential values are on the rise in the premium South Mumbai Properties. Demand continues and there are some new projects coming up in South Mumbai. This includes two towers of 60 stories each known as “S D Towers”.

The North Western and Eastern suburbs continue to be the preferred corporate locations in Mumbai. As a result, the suburban move by corporates has given a boost to residential developments. Mindspace and Hiranandani, on a regular basis, keep coming up with new developments. Relocation of the American School to suburbs has led to many expatriate officials also relocating their residences to the suburbs.

Residential categories all across the city are active. The residential market will see continued activity in the middle-class segment in Rs1-2.5 million (US$ 20,400-51,000) categories. All areas are seeing a rise in values. With office and residential projects going in tandem, real estate developers are now going in for integrated developments. Most large projects have school, college, hospitals etc incorporated as an integral part of the project.

K Raheja Corp, K. Raheja Constructions, Samir Bhojwani, K Raheja Developers, Tata Housing, GESCO, Mahindra & Mahindra, Kalpataru and Godrej Housing are the leading developers active in residential market. Central Mumbai areas such as Wadala (what were they earlier) Sion etc are coming up as preferred residential areas. Navi Mumbai market is witnessing a marginal increase in residential segment due to large off take of residential apartments by Reliance Industries.

George Gonigal provides you the best and latest information on Mumbai Real Estate Builders, If you want to Buy Apartments in Mumbai, he suggests you log on to www.magicbricks.com.

Mumbai Real Estate | Real Estate in Mumbai | Mumbai Properties | Property in Mumbai

Green Canopy Enticing Buyers in Mumbai

Green Canopy Enticing Buyers in Mumbai

Weakening property demands have resulted in Mumbai Real Estate Builders being weighed down with large stocks. But the developers are using their creative skills to sustain themselves in the business. They are coming up with innovative ideas to not let the Mumbai Property market scrub down.

While green buildings have already marked their entry in the Mumbai Real Estate market, the concept of green cover is burgeoning as well. A cover of flora is provided to the client on long terraces and podiums. Depending on the project size the cover spans up to 2.5 acres, research reports. It is provided on terraces, over huge multi-level car parks and 'relief' on the middle floors of high-rise complexes.

Talking about the advantages, for the buyer, who is getting more environment conscious day-by-day the benefits are apparent. Besides being healthy the green canopy is also a way to reminiscence the good old way of living in the nature's lap, feels Mr S Kapoor, Mumbai real estate agent. For the builders, the value the green canvas provides is enormous.

One of the largest such elevated gardens is being developed by Marathon Group. It is a mixed use residential-cum-commercial complex having a built-up area of about 7 lakh sq ft. The elevated garden project is 1.20 lakh sq ft in area. Also, Orbit Corporation has designed a garden and club house on the eighth floor of one of its projects, in addition to roof parks on every fifth floor of another.

According to Mumbai real estate builders, generally, the additional cost of Rs 250 to Rs 300 a sq ft for setting up the green cover has no influence on Mumbai property prices per se, that are in any case ascending Rs 10,000 per sq ft.

Moreover, on the back of lackluster sales Mumbai property rates are witnessing a dip, so to retain the interest of the buyers green canopy has now become a trend among the Mumbai Real Estate Developers.

George Gonigal provides you the best and latest information on Properties in India, If you want to Buy Real Estate in Mumbai, he suggests you log on to magicbricks.com

For a Diversified Real Estate Portfolio

For a Diversified Real Estate Portfolio

The Indian real estate boom means good news to you. As a young Indian who earns well, has spent wisely and drive his own car, live in his own house and is able to meet daily expenses without too much effort, good returns from real estate investments should typically be next on your investment agenda. So how do you determine how much of your investible surplus you should invest in real estate and how much to put into financial instruments such as mutual funds and Unit-Linked Insurance Policies (ULIPs). How will your investment in a second house allow you to capitalise on the current real estate boom?

“Anybody who is looking at real estate as an investment option is currently at least in the post-35 age group,” says chartered accountant Raghu Marwah. “In the current scenario, other financial instruments score over real estate as a long-term investment option. The returns in the short and long term are more attractive.” Portfolio advisor Sanjay Mittal too agrees. “Investment in mutual funds and stock markets is liquid. But investments in the property market are not. Mutual funds yield at least 40 per cent year-on- year returns. One of my investors put in Rs 20,000 per month in the Reliance growth fund and his returns are currently over Rs. 3.6 crore in 10 years.”

This is way above that in real estate. In fact, he gives a thumb rule based on the worst performing systematic investment plan mutual fund over the last 10 years. If you have invested for over seven years, returns are normally the amount invested multiplied by the number of years it was invested for. In the current scenario there is a phenomenal growth expected in sectors such as hospitality, logistics, warehousing, healthcare, etc. “Investment in real estate mutual funds, especially at a time when the SEBI has framed the guidelines, will be a bonanza for retail investors,” explains a market analyst.

The retail investor has more to look forward too in the future from real estate markets. The Securities and Exchange Board of India (SEBI) has already issued draft guidelines for Real Estate Investment Trusts (REITs) a sound financial instrument in developed real estate markets around the world. “This will open up a class of investment to the real estate retail buyer that was earlier not possible,” says Goel. Till now investors ended up exposing themselves to segments of the real estate market and their risks were high.

REITs function as funds which consolidate investments in property in different segments and geographies and allow the retail investor to truly encash the potential of the entire sector. It thus minimizes his risk. The investor has different yields and rewards to choose from. Recently SEBI has also issued clarifications on the functioning of Real Estate Mutual Funds. According to these guidelines the REMFs have to be close-ended and have to declare Net Asset Values every three months.

While REITs invest in physical properties and capitalise on regular rental returns, REMFs invest in the real estate stocks. So why are people investing in real estate at all? Where did all the hype about real estate growth come from? Explains Arun Vikram Goel, CEO of Dewan Housing Finance Venture Capital, “The hype around the real estate market comes primarily from speculative, extremely short-term investors. They have bought at launch prices and sold as the values of each subsequent release by the developer was raised and encashed their investment in the short term. These would have yielded very high gains. Nobody who has invested for the long term has contributed to the hype because chances are that they have not exited the market and their computed returns are notional. A long-term investor should not be looking at hyped gains.”

Explains another property investment advisor, “At the height of the boom, I had advised various investors to put their money into multiple projects and to recycle the investments for maximum returns. In fact, I managed portfolios of investors who had upto Rs 1 crore to invest by putting in the 10 per cent that was required to book a property and then to exit when the next installment was due. The gains so achieved were then reinvested in newer launches and the money was constantly increasing.”

But the current scenario is different. After 8-10 months of slow-down in transactions, developers are completing projects rather than launching numerous new ones. Even the rate of hike of value is steady and therefore the short-term speculator is kept at bay. Goel explains this phenomenon. “Immature markets tend to behave erratically. Initially rental markets are not stable and more users think of purchase rather than rentals. Once the supply comes in the rental markets pick up and those who do not want to occupy, lease out property. This hike in demand brings in the speculators and short-term buyers. Finally when there is a glut and capital values stop rising, the rentals will rise. But typically yields from residential real estate investments are only 5-6% in stable markets and 3-4% in unstable markets.”

So again why invest in real estate at all? Why not only in mutual funds if you are a retail investor? “To diversify your portfolio,” says Goel. And he has a simple mantra for the retail investor:

” Do not make investments on the basis of hype. Remember that in a market correction hype comes down and you get a realistic picture.

” It is wise to hold a diversified portfolio with real estate as one of the options.

” Time your entry correctly. The hype typically starts when the peak is reached. If you enter at the peak, you will not get the best rates and you may be part of the slide.

During investing for the long-term remember that returns average out. The property advisor, who does not wish to be named, maintains that normally even in weak market cycles property values double in five years. So if you are a 35+ age group, your property value will at least double every five years and you will never lose out. However, the rate of enhancement of the mutual fund investments is greater in the short term. Sanjay Mathur of Pearls Infrastructure says long-term real estate investments can be upto 200-300 per cent if you choose your investment destination correctly. If you invest in what is the periphery of the city today and hence cheaper, but if there is good economic activity there, the returns in the long term are definitely positive. Short-term returns are only high during speculative high-growth immature market cycles.

Goel agrees that the choice of investment destination is very important. “But real estate decisions are often very emotionally driven too. Aspirational considerations may drive the investors to look at property purchase than yield analysis alone. However, if the investor reads the future potential of markets correctly, he can get good returns. Goel sees younger investor opting more for systematic investments in mutual funds that is more speculative but has greater returns.

The REITs, which is expected to be functional by the next year, if the government gets its policy framework right, will attract an older investor who takes less risks, but opts for steady returns.

Source: Indian Real Estate (Vol.I)

Brixresearch.com

Surajkund - Lucrative Real Estate Options

Surajkund - Lucrative Real Estate Options

Real estate boom in India has activated many dormant areas to become super- active. Surajkund is currently going through this phase of activation and is ready to cross the threshold in order to emerge as a real estate destination. This boom is further strengthened by the relaxation of Foreign Direct Investment (FDI) in the real estate and construction sector. Additionally, the retail segment has opened the doors for the commercial real estate sector of India. Faridabad is fast becoming the next hot destination for expanding developmental activities. The pace of real estate growth is expected to prosper well as more and more companies are now choosing to opt for Surajkund. The city has become a prominent investment destination due to its proximity to Delhi and also because of the rising values of the real estate in Gurgaon and Noida.

Faridabad has traditionally been an industrial city, with 300 large and 10,000 small scale units and the Haryana Government’s new Industrial Model Township. However, the industrial town of Faridabad is now noticing new residential developments, especially in Surajkund village that spans across 30 acres. Surajkund, already known for its international Mela, is now a residential delight for many. The Surajkund mela was launched in 1981 by the Haryana Tourism and is held in the month of February from 1st-15th every year. This craft Mela (fair) serves as a meeting ground for talented artists, painters, weavers, sculptors and craftsmen from all over India who display handicraft products in the typical setting of a rural Indian market place. The place is visited by number of domestic and International tourists and the foot-falls seems to be multiplying every year.

Green Environment

Away from the hectic and congested life, Surajkund offers an environment like no other place in Delhi. The place displays a sense of peace and traditional touch which is envied by every Delhiite. People are opting for Surajkund for its peaceful natural surroundings. Renowned developers are coming up with township projects in and around localities of Surajkund. The first township project near Surajkund is Charmwood Village by the Eros Group covered in the area of 65 acres. Omaxe, Ansals are also setting up their residential projects.

These attractive townships are sufficient to satisfy the needs of people. Bungalows, apartments and villas are available here with all the modern amenities. The rates of residential properties range between Rs 6,500-Rs 8,000 per sq ft. The rent is around Rs 20,000 for 2 BHK flat and varies on the bases of size and type. Ansal and Crown Plaza have lavishly designed malls catering to children’s entertainment and hospitality, along with other commercial and residential projects. Numbers of other residential projects are in pipeline and soon going to be launched.

Infrastructural developments

Social infrastructure is also developing at the fast pace to support the physical infrastructure in Surajkund. All the national and international based schools and educational institutes have come up in the periphery to benefit the students with a pollution free atmosphere. MNV public school, Delhi Public School and Manav Rachna School are to name a few. Transportation is also improving by and by with Delhi’s bus stand just 1 km from the Surajkund. Local rickshaws and autos are also available for intra-city connectivity.

The property price of Surajkund has increased three times in last couple of years. Planned infrastructure, township projects of big brands, proposed Metro in main Faridabad and rise in the prices of real estate property of other cities, involvement of Haryana government in the overall development of Surajkund make it a good choice for real estate investors.

Magicbricks provides you the best and latest Real Estate in India. To know about Surajkund Properties and Faridabad Real Estate & to buy India Properties visit Magicbricks.

Source: Times Property (31^st August’08)

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Commercial Real Estate Developments in Kundli - Leaps Ahead

Commercial Real Estate Developments in Kundli - Leaps Ahead

Kundli real estate is bustling with activities. The commercial industry is hyper active with malls, office complexes, industries, SEZs and industrial parks all ready to be set up in the region. Brix Research tells you why.

The Kundli-Manesar-Palwal (KMP) expressway has already been a path beaker in the real estate scenario of the city. There have been number of notable developments along the expressway. These include the Rai-Kundli Multi-Functional Complex, which has an Export Promotion Industrial Park and a Food Park.

Global business corridor

Reaching new heights the proposed 135-km state of the art “global business corridor” to come along KMP expressway is likely to add-on to the already growing commercial real estate of Kundli. The business corridor is expected to further boost the residential segment. It is believed to see a huge demand for residential property from the workforce to be employed by companies on the corridor. According to industry reports, the corridor will also attract large influx of foreign investment of over Rs 2 lakh crore and generate a large pool of job opportunities. Some Japanese and European companies are already showing huge interest to establish their operation centers on the corridor.

Industrial and office space

The demand for office space in Kundli is growing with number of MNCs and IT companies venturing into the city. About 65 lakh sq ft of office space is likely to be on hand for IT companies in the next 2-3 years. Meanwhile, a second refinery has been announced at Panipat, which is expected to accelerate the development of this region.

Organised Retail

The retail like the industrial and residential segments is also growing immensely. Most of the new projects are mixed-use developments. Mapsco, Krishna Artec, Express Builders, DD City, TDI Group is all coming up with residential cum commercial township projects. A shopping complex called Roman Court Shopping Complex is also on the cards.

Mall culture like any other part of the country has gripped Kundli as well. Quite a handful of malls are on platter in Kundli by renowned real estate developers.

Mall Count

CMD Mall

Omaxe City

AMR Shopping Mall

TDI Mall

Rodeo Drive Mall

Parker Mall

Future Outlook

Though Kundli is witnessing massive development on commercial front there is lot more to be done before it can be termed as a real estate destination. According to M K Mishra, real estate agent operating in Kundli the value of commercial properties in Kundli is reported to be around Rs 4, 000-6,000 per sq ft.

25 acres of land has been allotted to DLF and Anant Raj Industries in Kundli for developing IT parks. The total constructed area of the projects is 51 lakh sq ft and 32 lakh sq ft respectively.

There is also a massive 20,000 acre multi-product SEZ in the pipeline being developed by Unitech group. Food processing, auto-components and textiles are some of the industries that will be set up within this SEZ.

Currently, the market is going through a slowdown phase. But, the proposed IT Parks, SEZs, malls and other ongoing infrastructure developments are expected to bump up Kundli’s economic prospects. These developments are anticipated to generate more employment opportunities. Further, all this will escalate the property prices in Kundli to new heights.

Value chart

Commercial unit type	Capital value (Rs/ sq ft)
Office space	3,000-5,000
Shop	3,000-6,000
Industrial land	15,000-20,000/sq yard

Source: Brix Research

Source: Times Property (31^st August’08)

www.brixresearch.com

Kolkata Real Estate Market - A Stable Market For Investors

Kolkata Real Estate Market - A Stable Market For Investors

Girikunj Phase II adjacent to New Alipore, is the newly found residential option in Kolkata. Private real estate developers have lined up their projects in the range of Rs. 28 -36 lakhs. Capital values of builder floor apartment in Tolly Gunj near Menoca cinema hall is Rs 65 lakhs and the rental value of an 1800 sq ft apartment in Tolly Gunj near Menoca cinema hall is Rs. 15000 per month. In Jadabpur the capital values of a 1000 to 1200 sq.ft is in the range of Rs. 25 to 48 lakhs whereas the premium apartments in this region is between 52 to 60 lakhs for a 1000 to 1200 sq.ft multi-storey apartment.

Kolkata Real Estate has witnessed an unprecedented price rise in the South Kolkata localities like Ballygunge, Prince Anwar Shah Road and Elgin road. The factors behind such a steep rise in select localities are the limited availability of real estate options, successful retail and commercial projects and improved connectivity with improved urban road build quality.

Rajarhat, unlike Salt Lake, is being developed as a new city, with not only residential projects but SEZs, IT Parks, hotels, malls and commercial and shopping complexes as well. This well balanced approach towards development has increased the possibility of commercial office demand shifting along with residential requirements. A gradual change is in the offing, with Park Street and its adjacent areas likely to emerge as retail high street locations. Over the last two-three years, residential property prices in the area had gone up by over 50 per cent. Developers are anticipating more than 15-20 per cent rise in the prices by this time of the year also.

Thus, it can be concluded by saying real estate in Kolkata is in a high growth phase, especially in office, hospitality, retail and residential sectors. For commercial, it is the EM Bypass, Sector V in Salt Lake, Park Street, Camac Street and Theatre Road. For residential, the majority is again around the EM Bypass towards the Rashbehari Connector and New Town. There are some pockets in Central Kolkata, but not too many projects are happening here due to the non- availability of large plots of land.

George Gonigal provides you the best and latest info on Real Estate India. He would also let you know about Kolkata Real Estate. To know more, visit Real Estate in Kolkata.

Floored!

Floored!

Flooring is perhaps one of the most important decisions that you will make for your home. Flooring needs not only to be attractive but it also needs to be functional. While choosing flooring the most critical feature today is ‘aesthetics’, besides price, usage, material and other such considerations. A wide spectrum of products, right from the framed natural marble to faux-finish vitrified, offers varied choice to consumers. Both conventional and unconventional designed flooring options exist. New material such as cork, bamboo and recycled tiles are also easily available. Understanding the importance of beautiful flooring and its significant role in home interiors we have compiled an assortment of flooring options for you to choose from. We have structured the flooring options by type so that it would be easier for you to choose the right kind of flooring most appropriate for the area under consideration.

Tiles

Tiles can be used on almost any type of flooring. Tiled floors are relatively inexpensive and durable. More so, these long-lasting pieces on the ground add creative value to the home.

Ceramic tile: The ultimate floor product that combines beauty with durability. The main advantage of ceramic tile is that it does not stain, mildew, burn or fade. Also, ceramics remain unaffected by moisture. Ceramic tiles can be used anywhere in the house. However, vitreous and impervious ceramic tiles are used outdoors or in bathrooms. Vitreous tiles have solidity of granite and marble yet retain the aesthetic appeal of ceramic.

Glazed Ceramic: This can be used in bathrooms, kitchen and any other room. The outer surface is glazed and gives shinning effect to the room. It also reflects light and creates an illusion of more space in the room.

Stone Tiles: These are suitable for use in rooms, especially kitchens and living rooms.

Brick Tiles: These are used in courtyards, garages, garden paths and passages.

Stones and Cement

Stone and cement flooring is a permanent, beautiful and economical flooring option, suited best for residential spaces. This type of flooring is very receptive to passive solar heating, as it holds and radiates heat long after the sun goes down. Cement tiles can be used in homes wherever solid flooring is required such as drawing room, bedroom, kitchen or lobby. Stone tiles are used for wet areas, especially where slip-resistance is a necessity such as bathroom or entrances.

Room Considerations Option

Living room: This area is a relaxing area for the family or a room to entertain visitors, easy to maintain flooring is preferred.

Option: Carpets or textured, laminated tiles, and hardwood or parquet.

Dining room Avoid choosing light-coloured flooring. Hypoallergic flooring is preferred.

Option: Tile, laminate, and wood.

Kitchen Flooring should be smooth, waterproof and non-slippery. Textured floors should not be used.

Option: Tile, laminate, and wood

Bathroom This room needs waterproof, washable, non-slip flooring. Light coloured and hypoallergic flooring are preferred.

Option: Laminated tiles and vinyl.

Bedroom Natural and soothing coloured flooring is preferred.

Option: Neutral shade tiles give the option of redecorating the room.

Maintenance tips

Do’s

· Sweep, dust mop or vacuum the floor.

· Be careful and protect wooden floors from soiling, abrasive wear, staining, abuse and moisture.

· Place mats and rugs at doorways to inhibit the tracking of grit, dirt and sand.

· If heavy wheeled equipment has to be moved across the wooden floor, wrap the wheel in white masking tape.

· Every monthly move the furniture carefully and use dust control mop to clean.

· Solid wood floors, depending on the traffic, would require waxing/sealing once or twice a year. Waxing/sealing would remove scratches on the floor.

· Buffing would bring the shine if you apply spray polish.

· Once a year or as required: pest control treatment should be done.

Don’ts

· Use rubber or latex backed mating or rugs as the plastic in the backing may discolor the finish and or the wood.

· Pull heavy furniture across the floor. Put fabric glides under the feet of the furniture works to avoid scuffling and scratching.

· Use any equipment that sits directly on the surface in one location for more than four hours.

· Wear high heels or rugged sports shoes which can dent the surface and damage the floor.

· Use tile floor cleaners, e.g. phenyl, on wooden floors.

· Clean your wooden floor with water.

· Use products such as soaps, detergents and oil soaps to clean the floor. As this can make your floor dull and damage it.

· Allow liquids to stand on your floor.

Source: Indian Real Estate (Vol. II)

indianrealestate@brixresearch.com

Real Estate India | Property | Properties in India | Real Estate

Bangalore's Passive Residential Market

Bangalore's Passive Residential Market

Bangalore is witnessing a slowdown in buy sell activities of residential property. Latest property trends of the city shows that the residential capital values are decreasing at certain localities. Eastern Bangalore region is facing recession in property market. Areas like Marathahalli, Airport road, Whitefield, Brookefields, Hoodi etc are seeing downfall in property rates as compared to last year. Reason cited by the local property dealer is that these areas are facing lot of traffic congestion and are commercialized. Therefore people are not interested in buying their residential property across these regions.

To reach Airport Road and Marathahalli one has to pass through several bottle neck areas with long traffic queues and congestion. Also there is construction work going on the route. The metro rail project is under construction from past one year which has resulted in traffic jam.

Another construction activity of a flyover near the old airport road causes lot of traffic jam. Thus people are not buying any residential property across these areas. Everyone wants to have home away from main city and that should have some free space and easy traffic movements. Most of the people are choosing Bangalore suburban areas for buying residential apartments and these areas are experiencing hike in property values.

As per a Brix research report Marathahalli has registered a decrease of 23% in apartment capital value while Whitefield registered decrease of 12 % in last quarter. Though lot of real estate activities is happening in Whitefield area but the residential apartment values are going down. Rental values at Marathahalli have gone down by 6% whereas at Whitefield rental values have gone down by 25% in last quarter. Similar is the case of other nearby region.

Brix research analytics team found out that there is an increasing demand of residential property at the areas which are free from traffic congestions, have good physical and social infrastructure, connectivity and availability of premium apartments. Nevertheless, localities like, CV Raman Nagar, Koramangala and Electronic City where demand is mostly driven by IT professionals are going steady.

Moreover, Bangalore residential real estate market is in passive stage and the buyers are investing smartly in property market.

George Gonigal provides you the best and latest information on Bangalore properties. If you want to buy Real Estate in Bangalore he suggests you log on Real Estate India.

Delhi NCR Real Estate - Suburban Growth Continues

Delhi NCR Real Estate - Suburban Growth Continues

The Delhi NCR region has grown to be one of the most favored real estate destinations of India. Delhi being the capital city has always been a delight for any property buyer or investor. With the city getting crunched for space, the NCR region gained popularity among the developers, buyers and investors alike.

The most sought-after locations in the Delhi NCR region include Gurgaon, Ghaziabad, Faridabad and Noida. Being in the proximity of the national capital, Gurgaon today is considered as one of the major towns of the country and is being termed as the 'Millennium City'. The apartment capital values in places like DLF and Sushant Lok are around Rs 4000-8000 per sq ft and the rentals are Rs 15000-30000 per month (approx). Sohna road commands Rs 4000-5000 per sq ft for a 2 BHK apartment. M.G. Road is another very affluent place in Gurgaon and it houses a number of glitzy malls.

In view of expanding horizons, Gurgaon now extends to Dharuhera, Manesar and Bhiwadi. It is expected that with the coming up Gurgaon-Delhi expressway Dharuhera along with Manesar can be the next NCR suburbs. The active real estate developers in the area include Parsvnath, Omaxe, Dwarkadhis, GTM, and Natraj.

Besides Gurgaon and Noida that are growing on a massive influx of IT industries, Ghaziabad has of late emerged as the residential nucleus of NCR. The city is also gaining popularity owing to its proximity to the Commonwealth Games location. The developers here are largely emphasizing on providing good quality infrastructure. Indirapuram is one such locality in Ghaziabad that has developed tremendously on the back of a strong infrastructure support. According to research reports, property rates in Indirapuram alone have registered a 70 to 80 per cent appreciation in the last one and a half years.

The demand is huge supply is erratic and hence, prices are sky-high in all these areas. Although, the current slowdown phase has put a dent on the real estate market worldwide including the Delhi NCR, but industry experts are optimistic that it will bounce back.

George Gonigal provides you the best and latest info on Real Estate India. He would also let you know about Real Estate in Delhi. To know more, visit Delhi Real Estate.

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Delhi Properties High on Preference

Delhi Properties High on Preference

Delhi, the capital of India, is a federally administered union territory and a bustling city. It houses many government buildings and embassies, apart from places of historical interest and tourist attractions. Various Multi National Companies (MNC's) have set up their businesses here. Industrial sector is growing tremendously and all this is resulting in increasing employment opportunities. Because of this, people are moving to Delhi from all over India.

Many renowned real estate developers like Ansal Properties, DLF and Unitech have played a prime role in shaping the real estate market of Delhi. The posh localities of Delhi have experienced a lot of growth in the real estate sector. Property rates keep swinging and builders and developers invest here in high amounts and build luxurious homes, flats, apartments, commercial malls, shopping malls, world-class theatres etc.

Real estate prices in Delhi are on an upswing, for both commercial and residential plots. A huge number of malls, shopping complexes, corporate spaces have been built and many more are under construction. Delhi's real estate market is on its way up due to the developments in and around Delhi.

Property values in Delhi vary considerably depending on the area and location. For example, the monthly rental value of a 2 bedroom flat in a good locality such as Greater Kailash varies from Rs 25000-50000 per month, whereas in Rohini, the rent varies from Rs 6000-12000 per month.

However, due to the current recession customers are no longer ready to pay the high prices that property all over Delhi command. Due to which number of transactions happening in the city have considerably gone down. But Delhi properties are high on everyone's preference list.

Talking about commercial real estate in Delhi the prices are dropping. According to Delhi real estate agents the retail and office rental prices have dropped. During the last two months, in Saket (south Delhi), the rates have dropped by 30-35 per cent.

However, support infrastructure like the Gurgaon Expressway, residential integrated townships, knowledge parks, proposed international airport and railways and the DMRC providing connectivity to the NCR region is expanding the Delhi real estate market far beyond the borders of the city.

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Infrastructure Makeover Changing the Face of Real Estate in Chennai

Infrastructure Makeover Changing the Face of Real Estate in Chennai

Chennai has retained its traditional charm for long. The city is known for its booming movie industry. Flourishing industries include hand looms, furnishings, fine silks, and traditional and trendy merchandise. Investment on the real estate in Chennai has been on the rise. With the talk of satellite townships coming in the outskirts of the city, the avenue for investment in real estate has never been this good. The landscape of Chennai is all set for a makeover. When the Rs 32,700 core plans for the metro is completed as scheduled in 10 years, the city’s skyline will be dotted with elevated highways, rapid transit ways for buses, truck terminals, mono-rail, a dozen more flyovers and several rail over/under bridges and multi-level car parks to accommodate the needs of an ever-growing populace.

With the impending infrastructure development plans in place Chennai property prices have already skyrocketed. Land prices in the industrial areas of Guindy and Ambattur are seeing climbing rates. In Central Chennai capital values of a multi storey apartment is in the range of Rs 7000-12000 per sq ft whereas West Chennai commands a price tag of Rs 2000-10000 per sq ft for the same. The IT Corridor of Chennai commands Rs 2500-5500 per sq ft for an apartment unit and in South Chennai it is between Rs 3500-10000 per sq ft. The apartment rental values are between Rs 10000-25000 per month in Central Chennai.

Many real estate developers are imminent in the city. L&T South City project is launching Eden Park. It is an integrated township and will be developed with an investment of over Rs 12 billion. The location of this massive project (around 100 acres) is near Siruseri on the OMR (Old Mahabalipuram Road). The project will be based on the concept of villa apartment, in which luxury and privacy of an independent villa is to be combined with the convenience, maintenance and security of an apartment. The project started on 18th January 2008 and will be completed in several phases.

Besides, another project Estancia is also an integrated township from L&T Urban Infrastructure Ltd in association with Arun Excello of Chennai. This project is coming up on 78 acres of land at an estimated cost of around Rs 1800/ crore. It will eventually house 2000 apartments, an IT Park, hotel, shopping mall and a school. L&T will provide the construction and project implementation for this Estancia venture.

The city of Chennai, though small in comparison to other metropolitan cities of India, has had an identity of its own that is unique, yet obvious. With proper infrastructure also in place Chennai real estate is all set to boom.

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What will real estate cos do now ?

What will real estate cos do now ?

Following an appeal by finance minister P Chidambaram to the entire real estate industry to cut prices and make houses more affordable to the buyers, the developers’ associations — National Real Estate Development Council (NAREDCO) and Confederation of Developers Associations of India (CREDAI) — both responded with appeals to their members to come up with whatever cuts that are possible.

So have developers cut prices and what does this mean for the end user buyer who had been priced out of the market during the boom years?

Rohtas Goel, Naredco chairman and CMD of Omaxe, says his company is offering 1-5% discounts to existing clients who have not defaulted on any payments. The discount is applicable for the Noida and Greater Noida projects. This discount would be offered on the balance amount to be paid. The discount would be applicable for about a year or according to market conditions.

Future projects in Noida, Faridabad, Ludhiana, Indore and Chandigarh, which are to be launched in 25 days or so, have discounts of between 5% and 10%. Affordable housing projects, the first of which is to be launched in Indore on January 26, come with a 15% discount.

Explains Prodipto Sen of Alpha G Corp, “We have not cut prices per se. But even before the FM’s appeal, we had launched a special category in our Karnal project where defence officers and public sector undertaking employees had been offered price discounts. This worked very well and we were overwhelmed by the response to our offer. So the price discounting is often market-linked rather than because of a specific appeal. After all, the developer has to factor in the cost of land, debt servicing and construction.

The appeal by the developers’ bodies has evoked mixed response across the board. Explains Pradip Jain of Parsvanath Developers, who is also a part of Credai, “We have not specified who has to cut how much. Some may have already cut prices according to market conditions. We can’t force them to cut prices again.” Jain maintains that he feels it is difficult for developers to drop prices on existing projects. New projects with lower specifications, sizes or facilities can be launched at lower prices.

“In our Greater Noida project, for instance, we had launched premium projects with high-end specifications. To suit the clients’ affordability today, we will launch the next round at lower prices with lower specifications such as tiled or stone floors instead of Italian marble floors.”

Kumar Gera, chairman of Pune-based Gera Properties and chairman of Credai, says it is important to understand what the association had issued in its appeal. “We had talked about five agencies that need to cooperate to bring down prices — the developer, government, material suppliers, service institutions and financial institutions. Simply dropping prices does not trigger sales. The fence-sitting buyer then waits for prices to fall further. The decisions to tinker with prices are largely on a project to project and location to location basis. The only reason for cutting prices is to impact the sentiment in the market and change the mood which will trigger buying.”

Suresh Jain of Vijay Shanti Developers in Chennai says prices had come to realistic levels even earlier because of market corrections about three to four months ago. Properties on the outskirts of the city that had been launched at about Rs 2,600/sq ft and progressively raised to Rs 4,300 per sq ft have come back to the launch price. This is a realistic value. However, if the government too can match this realism with a reduction in stamp duties and service tax that would help trigger sales.

Says Jain, “We are a group that has traditionally focused on the mid-segment buyers. That consumer is still worried. Earlier, getting a loan was not a problem for him. Today, even when loans are expected to be in the range of 85% of the published prices, many banks are only lending about 60% of the value. That leaves a deficit of 40%. If the government agencies can match the developers’ efforts with some financial trigger, it would help boost the markets.”

A West India-based developer who did not want to be quoted said they were reducing rates on a case to case basis. “Where the project had already sold almost 90%, we do not reduce rates but if a project is just being launched we have offer discounts between 2% and 15% according to the merit of the project, the location and various other factors.”

Ultimately, the rate cuts are not altruistic at all. The developer needs to cut rates to trigger sales as much as the government wants them to do so. However, policy measures to boost finance to the sector too may be required before the reluctant consumer is converted into a buyer.

Source: The Sunday ET, 30th Nov, 2008
Author: jayashree.kurup@magicbricks.com

REITs Yet To Be Unleashed

REITs Yet To Be Unleashed

Backed by strong economic fundamentals, financial reforms and rising per capita income, Indian real estate markets have witnessed amazing growth rate of plus 30% in the past four years. However, investing in real estate still remains cumbersome and risky for a retail investor. The advent of REITs in India is set to change the picture both for the investor and the industry players, who will then be able to access organised financing through this internationally-acclaimed investment vehicle. Brix Research tracks the global trends that may serve as India’s benchmark. Basically there are three types of REITs; Equity REITs, Mortgage REITs, Hybrid REITs.

Advantages of REITs

Real estate is an all-time favourite investment vehicle across the world. However, being an unorganized industry, constraints like speculative pricing, insecure mode of transaction, cumbersome legal processes, and tax burden make real estate investment a no-no for the common man. REITs with its bouquet of advantages come up as a potential alternative.

” Secured Investment: Since REITs are formed and managed by professionals, the retail investor is in a position to leverage their industry knowledge and skills. Besides, the investor does not need to take the pain of searching for the right property and then executing the transaction. You just need to buy units from REITs and invest your money in their portfolio.

” Stable Returns: As against equity-based financial products, investment in REITs brings stable and regular returns. Real estate rentals don’t fall the way stock markets do. This way you can expect an impressive rate of return on your investment, which are better than government securities and debt instruments.

” Diversification: If you invest in a particular property, you have to put a whole lot of money in it, and chances are, your bet does not bring expected returns or even undergo capital loss. REITs, on the other hand, may invest your money in different types of properties located across the country. This way, they spread the risk around different properties.

” Easy Liquidation: You can sell a property in a day but sometimes it takes several months to arrive at a deal, and things get worse in case you need to liquidate your investment in order to meet exigencies. However, in case of REITs, you can always redeem your unit holdings, which are generally listed on stock exchanges.

” Tax Sops: You don’t need to pay property tax, municipal and other related charges while investing in a REIT. In fact, you may be given tax exemptions by the government, as in most parts of the world.

REITs in India

India is looking forward to the introduction of REITs laws. Of late, the SEBI has issued a draft for REITs regulations that is expected to come into effect soon. Meanwhile, the regulator has clarified that any trust, banking, insurance or financial institution or body corporate with minimum net worth of Rs 5 crore can form a REITs. In order to protect investor interest, no REIT will expose more than 15 per cent of its corpus to a single project or more than 25 per cent of all real estate projects developed, marketed, owned or financed by a group of companies. The REITs are also prohibited from investing in vacant land or engaging in property development activities. To further safeguard investor interests, the regulator also intends to empanel independent agencies that will rate REITs schemes, which may remain close-ended for the period of three years but could be sold on stock exchanges. Industry captains, at the other end, are looking for waiver on capital gains tax on sale of assets by REITs. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), if REITs are to become a success in India, the stamp duty paid by such trusts should be allowed to be converted into value added tax. Meanwhile, it has been observed that tax breaks play a major role in driving REITs worldwide. A reform-oriented legal framework, investor-friendly approach and comprehensive tax policy is what can position REITs as a potential instrument of finance and investment in India.

Source: Indian Real Estate (Vol-I)
indianrealestate@brixresearch.com