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Bengaluru: Top investment bets in 2017

Bengaluru: Top investment bets in 2017

At a time when property experts are anticipating good times ahead in Indian real estate, Bengaluru property market will remain the top investment choice in 2017.

Bengaluru has recently been ranked number one based on investment prospects in a report prepared jointly by Urban Land Institute (ULI), along with PricewaterhouseCoopers (PwC). The report stated a strong shift towards two emerging Indian cities (Bengaluru and Mumbai) in the entire Asia Pacific region. In 2016, Bengaluru ranked 12th in ‘Historical Investment Prospect Rankings report’*.

Property analysts also predict that Bengaluru – the IT capital of India – is proving to be a bright destination for real estate investors. It is positive sign for Indian real estate that Bengaluru has emerged first in investment and development parameters for 2017. This is a big story for realty developers and end-users too.

According to R Rohit of brokerage firm RR Real Estates, “All thanks to booming civic infrastructures, new residential projects launch, establishment of Information Technology Services at large scale, BPO sectors that have been driving the Bengaluru residential as well as commercial property market for long”.

“We are very hopeful and happy that Bengaluru property market is gaining more prominence at the onset of New Year. This positive data will attract more and more investors as well as new home buyers to the market,” Rohit says.

Roundup 2016 for Bengaluru property market:

In a report released by real estate consultancy firm JLL India indicated that retail and commercial space are buzzing with many real estate activities while residential space is seeing less buyers. Bengaluru and Pune realty markets have emerged as new realty hotspot which will see price appreciation over time.

According to the report – retail spaces, especially malls are experiencing healthy rate of takeoff and occupancy, just because of favourable policies that have boosted the market after three years of drought. Policies such as 100 per cent FDI in single brand retail, relaxation for multi brand retailers and revised Model Shop and Establishment Act (that allows shops to remain open 24X7) have attributed for the rise in space offtake. The demand for retail space has picked up really well but there is a shortage from supply side. Market stature is experiencing robust demand but not many new malls are being built.

The real estate market of Bengaluru has been always the star performer in terms of highest counts residential units as well as office space absorption. In April-June quarter too, the city performed exceedingly well. About 48 per cent of the total units is accounted for Bengaluru, followed by Pune 21 per cent and Mumbai 16 per cent in this current quarter.

According to the report by Colliers International, India, The high volume of new launches during the second quarter was primarily driven by top six metro cities – Bengaluru, Pune, Mumbai, Chennai, Gurugram  and Noida.

According to the latest report released by real estate consultancy firm JLL India also, Bengaluru and Pune would be the two markets which would see a favourable price rise over a period of time. Bengaluru’s performance is noticeable as new launches have almost doubled from first quarter at nearly 11,500 units at the end of April-June quarter.

Bengaluru Metro Phase II to boost realty

Taking another step towards hassle free connectivity within Bengaluru city, Bangalore Metro Rail Corporation (BMRC) is working on expanding the proposed Namma metro network through phase II. The new phase of metro is likely to be completed by December 2020. Ahead of this, the real estate fraternity looking forward and say investment in property along the route will pay rich dividends. The demand for both residential and commercial property in the region is likely to increase.

*As quoted in http://www.pwc.com/sg/en/publications/assets/aprealestemerging_2017.pdf

Faridabad-Noida-Ghaziabad Eway driving realty

Faridabad-Noida-Ghaziabad Eway driving realty

Faridabad-Noida-Ghaziabad Expressway or FNG Expressway is making new property destinations in the NCR.  This expressway will pass through Noida, Ghaziabad, Faridabad and Gurugram to boost connectivity between these prominent cities. Thus, the localities along this Eway have emerged as property hotspot.

It is smart move that will offer safe and fast transport

Experts who are tracking this property market believe that the property aspects along the expressway corridors are promising. FNG expressway will offer direct connectivity between Noida and Faridabad. Once this long stretch is operational, people can travel between this stretch within half an hour.

FNG expressway is around 56 kilometer long stretch with 19-km stretch falls in Noida, 8 kilometers in Ghaziabad and the remaining 28 kilometers in Faridabad. Once this entire stretch is operational, it will alter the urban infrastructure of the region. This National Highway Project will not only accelerate the sale of land parcels in these areas, but also bring chance for mid-income class to buy budget houses in NCR. It is expected that this Eway  will be stretched up to Sohna Road Gurgaon that will further boost property market around Sohna Road.

Real estate developers are hoping big property market to emerge

Real estate developers of the NCR are very much optimistic about this locality, even prior to its completion.

According to Harmit Chawla, MD of real estate firm HCorp Realty Pvt. Ltd., “The national highway project is to benefit major chunk of people and will be an alternative route for commuters coming from from Meerut, Ghaziabad, Noida, Greater Noida, Gurugram and Hapur who wish to go to Faridabad and Agra. The expressway will cut travel time from two hours to 40 minutes and smoothen traffic pressure on the areas of NH-24, NH-58 and NH-2 that fall in the Delhi region. At present, people coming from Ghaziabad, Meerut and Hapur take these roads to reach Faridabad and Agra”.

Easy connectivity wins

Presently Ghaziabad, Noida and Greater Noida are accessible to Faridabad through NH-24 and NH-2 and these are much crowded roads of NCR. Experts say that, FNG expressway will ease connectivity to major hosing segments of NCR regions including Ghaziabad, Noida, Greater Noida, Faridabad and Gurugram and will transform the locality which leads high demand for residential property in near future. People can travel easily for work. The expressway will stimulate the growth of these locality through good network connectivity and will emerge as a hot property destinations.

Noida to digitise all property records

Noida to digitise all property records

The Noida Authority digitised 16,300 institutional, industrial and commercial properties. The digital services for these properties will be available from January 2, 2017 at www.noidaauthorityonline.com.

The Noida Authority digitised 16,300 institutional, industrial and commercial properties. According to officials, while the first phase of the project was soft-launched, digital services for these properties will be available from January 2, 2017.

With the digitisation of properties, a host of services, including permissions for mortgage, mutation of land, transfer of memorandum, completion and functional certificates, lease rent deposit, water bill payment, etc., will be a smooth affair for allottees in Noida, a senior official said.

“Within the next five months, we plan to digitise all Noida’s properties. The aim is to achieve minimum interface with the allottees but provide them with maximum transparency besides doing away with red tape,” said Deepak Agarwal, Noida Authority CEO.

“The services can be accessed from Noida’s website www.noidaauthorityonline.com. Each allottee will be provided with a unique user ID and password,” Agarwal explained.

“With the industrial application going online, investors and entrepreneurs will be able to view all available land for industries. While payments will be done online, the portal will also allow electronic communication. In future, GIS-based plot search and visibility will be added,” he explained.

“We are also working on Online Building Map Approval Process System (OBMAPS to speed up the process of building plan compliance check, in accordance with building by-laws,” Agarwal said.

Source: TOI

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Rent vs Buy : Should you buy a new home or just keep renting in 2017? [Infographic]

The common question that the first time home buyer poses is should he buy his own or stay on rent? The choice between buying a new home and keep renting is always among the biggest financial decisions an individual make. To help you answer this question, here we simplify which is a better deal.

For the years, becoming a house owner has been an essential part of an individual dream. Most of the young professions at the age of 20’s and early 30’s wish to have their own house now. So, it is very clear that owing a home is usually a smart decision, particularly when you are going to stay in an area nearby workplace. But it has everything to do with your own financial situation. Sometimes, buying a new home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Let us understand this through infographics taking you to the real situation and decide which one is ideal.

Meet Pallavi and Rishi who are on two different life paths but they keep same fate for real estate segment. Pallavi decides to stay with parents, so that she can buy own home. She thinks, It might take a couple of years. On the other hand, Rishi thinks that the process of buying home is tedious affair, so, I will keep renting. After five years Pallavi checks her financial situation and the true cost of HOME OWNERSHIP at happykyes and estimated her buying capability through Rent Vs. Buy Calculator….

rent vs buy should you buy a new home-or just keep renting in 2017
rent vs buy

 

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The 2016 Real Estate Market: A Year In Review [Infographic]

As 2016 winds up, it’s time to review the developments that took place through the year.

Undoubtedly, the year 2016 has been remarkable for the Indian real estate. The year will be remembered as the year of implementation of new laws and policy changes. The year also exposed the reality of real estate, where judicial intervention has not only underlined their aberrations, possession delays and defaults but also given a ray of hope to dejected home buyers. Several new laws and decisions announced during 2016, are likely to put great impact on the Indian real estate sector ahead. Happykeys will constantly examine how these policies will affect the property market in the short-term and long-term and what it means for home buyers.

 

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Year 2017 likely to be a trendsetter for real estate

Year 2017 likely to be a trendsetter for real estate

The Indian real estate market may become attractive at the onset of New Year. Happykeys takes a stock of developments and factors that will influence the real estate market this year.

As 2016 winds up, it’s time to review the developments that took place through the year. Undoubtedly, 2016 has been a remarkable year as far as India’s urban infrastructure is concerned. Hence, Indian real estate has many positives to look forward to.

Here is a report on how Indian real estate segment is expected to perform in 2017.

Demand Factors:

According to the Ministry of Statistics and Programme Implementation report the population rise in county is on a steady rise. With this rising population, there will be steep rise in housing demand also. The absorption of high number of housing units, itself depicts the picture of New Year that the occupancy rate is going to be high in 2017.

In a report by real estate consultancy firm JLL, in the last four quarters the property prices in Mumbai and Chennai improved by 3.7 per cent and 1.7 per cent respectively while the DELHI –NCR property market have remained stagnated. Market experts believe that this situation is anticipated to improve in New Year based on record of series of new launches and ease in property buying process due to government new laws and decisions.

Mr-Prashant-Tiwari-Chairman_Prateek-GroupAccording to Prashant Tiwari, Chairman Prateek Group, “The changes in real estate market have already started happening with measures like not increasing base rates, implementation of Real Estate (Regulation & Development) Act, relaxes in FDI norms and exemption of service tax on construction of affordable houses up to 60 square meters. Benami transaction act, infrastructural developments and many other proposals lying in pipeline will eventually take the realty market towards improvements and progressions in coming year. Therefore outlook for the next year 2017 is very much positive. We are optimistic that real estate sector will witness a changed environment with improved customer sentiments and enhanced growth“.

 

Mr.-Deepak-Kapoor-President-CREDAI-Western-U.P

Deepak Kapoor, President, CREDAI Western UP observes that, “There is growing positivity in the real estate sector that can now hope for a new phase of growth. The government has taken various steps to ensure that an atmosphere of growth and development is created for real estate sector. Moreover, the economic status of our country is also improving which will further boost the demand for properties. Considering the developments and changes which are taking place in the realty sector currently, property market is expected to much improve in 2017. “.

 

Mr-Akshay-Taneja-MD-TDI-Infratech-Ltd

According to Akshay Taneja, MD of TDI Infratech Ltd, “2017 will definitely be a good year for real estate sector. Year 2017 will help real estate sector in a big way as many positive changes have already taken place in the current year. These include reduction in interest rates, interest subsidy to home buyers, increased loan portfolios, increased and ease FDI in real estate & construction sector, implementation and introduction of real estate regulatory authority and GST bill etc. “.

 

 

Government Initiatives

A series of new decisions and laws promise to bring good days ahead to the Indian real estate market. The respective state governments has also taken several initiatives to encourage the developments in the real estate segment. Here is the list of some of the major government initiatives that will boost the morale and confidence of home buyers.

  • The Cabinet Committee on Economic Affairs (CCEA) has approved various measures to revive construction sector
  • The central government has brought Real Estate (RERA) act, 2016 on May 1, 2016, which is aimed at making necessary operational rules and protecting the interests of home buyers
  • New exit policy: With the enforcement of new exit policy, builders can complete their ongoing projects nearing completion and give possession of flats on time
  • Model Shop Establishment Act: The rule will give freedom to retail outlets to keep open 24×7. This act will promote investment in commercial sector. Investors can look in the commercial space as in the near future prices may go up
  • REIT rule relaxation for small investors.
Top 5 localities in Ghaziabad for real estate investment

Top 5 localities in Ghaziabad for real estate investment

Ghaziabad has been at the center of real estate activities in the NCR circuit owing to its strategic infrastructure and property price tag. Happykeys does a comparative analysis of top 5 residential destinations to help prospective home buyers to make an informed decision.

Here are the top most choices in terms of livability index, locality, connectivity, civic infrastructure and property prices.

#1. Indirapuram:

Indirapuram has emerged as the most expensive residential locality of Ghaziabad as per the Price Tracker Report by Happykeys.com. Undoubtedly, this locality is planned and more organised as compared to other residential localities. This locality offers multiple choice of multi-storied apartments and posh buildings. Average property cost recorded here in the last quarter was to the tune of Rs 5,300 per sq ft. The housing demand here is driven by working professionals who prefer living here due to smooth connectivity with Noida and Delhi. Presently, metro connectivity is up to its neighboring Vaishali but it has been stretched to Indirapuram linking the area with Greater Noida, Noida city centre and Rajiv Chowk. This is likely to be operational in 2017. The locality houses eight shopping malls.

#2. Raj Nagar Extension:

Raj Nagar Extension in Ghaziabad is fast emerging as a budget locality hub in Delhi-NCR, with thousands of families already moving in as the social infrastructure continues to improve. “In the last three years, Raj Nagar Extension has shifted its focus from being an affordable housing zone to premium lifestyle township offering everything — from residential apartments, schools, healthcare centres to shopping malls. This transformation has been noticed by investors and end users. It must be noted that the property value appreciation is comparatively highest here as compared to other regions” says Gaurav Gupta, general secretary, CREDAI Raj Nagar Extension.

#3. Crossing Republik:

Crossing Republik is situated next to Indirapuram and is considered a key micro-market of the NCR. The localities here have become well established residential hubs that have drawn the attention of buyer and investors interest. According to Bipin Chandra, a resident of Republik, “Crossing Republik is established and more developed residential area as it is one  of the first planned township in Delhi NCR developed in 2006”. A two bedroom apartment in the area ranges between Rs 42 – 59 lakh. A three bedroom home will cost upwards of Rs 60 lakh.

#4. Vaishali:

Another expensive locality in Ghaziabad is Vaishali which commands an average property rate of Rs. 6,000 per sq ft approximately. The real estate market here has been luring new home buyers and investors with ample options promising high ROI in future. The localities lying along the metro corridor have already registered steep rise in their capital values. Property rates and rental values are increasing due to its proximity to Indirapuram, Noida and Greater Noida.

#5. Kaushambi:

The USP of this locality is its connectivity via the Delhi metro, which extends to Ghaziabad and Anand Vihar. The two national highways – NH-24 and NH-58 pass through this locality. Kaushambi offers good mix of residential societies, malls and multiplexes promising a good life and transportation facilities. The prices of apartments are, however,  comparatively affordable as 1BHK apartments cost around Rs 15 lakh, two bedroom homes come at around Rs 60-65 lakh and 3 BHKs are priced upwards of Rs 1.1 crore.

Sachin Verma from DPR infrastructure explains that localities in this area were once old developments and also considered distant from Delhi. Developed and upcoming infrastructure has clearly demarcated the old areas from new ones. In the last few years these localities have seen tremendous growth in terms of real estate. These localities are now greener, safer and more organised than other locations of NCR circuits.

Due to its proximity to Delhi and connectivity advantages, these localities have emerged as key real estate destination in NCR,” says Mohit Srivastava, a real estate broker.