Pune real estate report

According to the latest reports from JLLM and Knight Frank, all segments of the real estate sector in the city have shown signs of stability and consolidation. Commercial real estate has witnessed some more consolidation compared to last year, thanks to the expansion of services sector and significant movement in retail, while luxury housing is making a comeback. Real estate sector observers said the subdued economic situation has led to lower interest in office space, but there has been some addition to the space absorbed by the services sector. On the retail front, too, there have been signs of consolidation, as organised retail is seeing a major shift from standalone locations to large malls which ensure better footfall. JLL said no new retail mall space was completed in October and rents and capital values remained stable over the month.

Residential segment saw impressive absorption as the market is marked by affordable prices in comparison with the rest of the metros, realty research firm Knight Frank said. The firm said that close to 130,000 units have been launched in Pune since 2009 and market vacancy levels are relatively healthy at 21%, compared to cities like Mumbai and National Capital Region, where vacancies range significantly over 30%.

According to Knight Frank, “The emergence of IT/ITeS sectors in Pune, in tandem with various manufacturing units being set up in the city and surrounding areas over the last decade, has resulted in the expansion of the real estate market in all directions. Ample availability of land in eastern and western peripheral locations ensures that the new residential product is well within the affordability criteria of their catchments.” The Pune market is largely end-user driven and as such not subject to much volatility, the firm said.

Destinations in Pune to invest in now:

Hinjewadi in Pune is expected to witness over 90 per cent rise in housing prices over the next five years, a report by property firm Knight Frank has revealed. Ulwe in Navi Mumbai, Wadala and Chembur are expected to generate the highest returns for residential real estate investors over the next five years, the report said.
Followed by Hinjewadi (rank7th), even Tathawade (rank 8th) and Ravet (rank 9th) are expected to grow close 90% in next 5 years.
In fact, seven of the top 9 spots on the list of 13 areas are occupied by localities in Mumbai and Pune. While rates in Ulwe are expected to rise 145% in five years, in Wadala and Chembur, the hike is likely to be 133% and 125%, respectively.
    The report seeks to identify areas that will develop because of factors such as job creation, infrastructure development and lifestyle change. “We identified 100 cities using banking penetration, hotel room demand, and air passenger traffic as surrogates for business activities. For infrastructure development, the current and proposed investment in infrastructure were taken as proxies.
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Rank	Destination City	City	Avg price 2012	Extd price 2017	Appreciation	Years to double prices
1	Ulwe	Mumbai	4,000	9,800	145%	3.4
2	Wadala	Mumbai	15,000	35,000	133%	3.8
3	Chembur	Mumbai	12,000	27,000	125%	4
4	Noida Extension	Delhi-NCR	3,200	6,760	111%	4.5
5	Dwarka Expressway	Delhi-NCR	4,900	10,200	108%	4.6
6	Medavakkam	Chennai	3,800	7,700	103%	4.9
7	Hinjewadi	Pune	4,000	8,000	100%	5
8	Tathawade	Pune	4,300	8,500	98%	5.1
9	Ravet	Pune	3,950	7,800	97%	5.1
10	Hebbal	Bengaluru	4,250	8,230	94%	5.3
11	Pallikarnai	Chennai	4,200	8,100	93%	5.4
12	Wakad	Pune	4,500	8,600	91%	5.5
13	KR Puram	Bengaluru	3,245	6,200	91%	5.5

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The work force in Hinjewadi is between 150000 to 175000 people approx which is expected to grow with phase -III of IT park and phase-IV still to operate fully. Also the Auto industry in Talegaon, Chakan areas still growing, the entire west and north Pune is the future growth corridor or Pune. By saying this East Pune doesnt lag behind but west will be the prefered destination which will be close to the Chakan airport, the Navi Mumbai airport and ofcourse Mumbai region.

So guys act fast and invest now or repent later.

Call for further more details and which projects to focus.

Always at your service

Regards

Hitendra
9158400500
9823116000

Who all can invest in Indian Real Estate?

 WHO CAN INVEST IN REAL ESTATE?

ü  Any person who is Indian Citizen residing in India can invest/acquire/ transfer real estate without any permission from the Reserve Bank of India.

ü  All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan require prior permission of the Reserve Bank for acquiring or transferring any immovable property in India.

ü  A person resident outside India, who has been permitted by the Reserve Bank to establish a branch or office or place of business in India (excluding a Liaison Office) in order to acquire immovable property in India which is necessary for or incidental to the activity. However, in such cases a declaration, in prescribed form is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.

ü  An Indian citizen resident outside India does not require any permission to transfer any immovable property, to a citizen of India who is resident in India.

ü  An Indian citizen resident outside India does not require any permission to transfer any immovable property:

o   is a citizen of India resident outside India;

o   is a person of Indian origin resident outside India.

ü  A person of Indian origin resident outside India does not require any permission to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of funds:

o   Received in India by way of inward remittance through banking channel from any place outside India.

o   Held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.

ü  A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India other than agricultural land/farm house/plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India.

ü  A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India.

ü  A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

ü  A person of Indian origin resident outside India does not require any permission to transfer agricultural land/farm house/plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India.

ü  A person of Indian origin resident outside India does not require any permission to transfer residential or commercial property in India by way of gift to a person resident in India or to person resident outside India who is a citizen of India or to a person of India origin resident outside India.

ü  Repatriation outside India, including credit to RFC, NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraph below.

ü  The event of sale of immovable property, other than agricultural land/farm house/plantation property in India by a person resident outside India, who is a citizen of India, or a person of Indian origin, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied.

ü  The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999.

ü  The sale takes place after three years from the date of acquisition of such immovable property or from the date of payment of final installment of consideration for its acquisition, whichever is later.

ü  The amount to be repatriated does not exceed:

o   The amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account.

o   The foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property.

o   In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

ü   All requests for acquisition of agricultural land/plantation/ property/farm house by any person resident outside India or foreign nationals may be made to the Chief General Manager, Reserve Bank of India, Central Office, Exchange Control, Department, Foreign Investment Division (III), Mumbai.

ü  The NRIs/PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely reportable outside India.

Prohibition on Direct Investment outside India

No Indian party shall make any direct investment in a foreign entity engaged in "real estate business" or banking business except after taking prior permission from RBI.

‘Real estate business’ means buying and selling of real estate or trading in Transferable Development Rights (TDRs) but does not include development of townships, construction of residential/commercial premises, roads or bridges.

(Notification No. FEMA 120/ RB-2004 dated: July 7, 2004)

Pre-Launch offers in a project

Well! What is a pre-launch offer for a project to be launched in a particular location? It actually means that one who is ready to take risk in life and wants to get a good rate than the current market rate is correct person to qualify to buy. Developers also are very pro-active in this period as their product is not yet tested in the market and they want to give the benefit of doubt to the initial risk takers. Say a Developer is offering that product at Rs. X/- per sqft for few bookings ( when the market rate is X + 200-300/-) and is waiting to launch the project at X +300-400/- per sqft in few months later. So one gets a straight benefit of Rs. 400/- the day it is launched in market. And one gets a wide choice of flats to choose from. And additionally you pay only the 15-20% of the cost and wait for the project to be launched and you do not pay till the work commences. *This is the case when you are booking with a good developer of good repute and the project is launched in 6 months time.

People generally wait for the project to be launched and then go ahead for booking a flat and end up paying high rate and also get less choice of availability to choose from. This means less risk but high rate when the launch takes place. So it is highly recommended to book in pre-launch offers.
Of course the risk of project launch getting indefinitely delayed because of xyz reasons. But it is the rule of the financial market High risk-High returns and Low risk-Low returns..

So I highly recommend buyers (Risk takers) to look for pre-launch offers.

If you do not have any, please connect with me for such option in Pune.

Good night....

Real Estate Product- What to buy and how?

When you go scouting for properties, what do you actually compare in projects? Lets take today's topic as actual product which a developer is offering. Product means the Apartment and its specifications, amenities which the Developers actually provide. Because there is no uniformity/standardisation in Real Estate or among Developers, for the internal specifications like flooring, toilet tiles, sanitary and CP fittings, doors, windows, electric wiring, door and window fittings, kitchen platform, paint, etc. and same with the external specs like elevation treatment, building architecture, club house finishes, landscape, lifts, and hell lot of items. White goods, like AC's Chimney and HOB, water purifier etc etc...
Does one look for the actual make and brand of these items?
Mostly good developers give you what they show you in the sample, model or show flat. Does this get captured in your contract agreement?

Anyways, you must check these finishes in the initial stages of your survey when you do the window shopping. Always insist to the sales person at site to clearly present you on what will be actually given to you as the final product. Do not assume that the sales guy will take care of this. People have burnt their fingers over many many years over this issue. As a buyer you must always make sure to ask what is the final finish and record it in the beginning only to avoid issues and disputes after 2 years when the project comes for finishing and record it in the agreement. Verbal commitments are like sales talks and as no one remembers what happened even couple off days back so how can one remember 1 or 2 or 3 years before things.

Coming back to the product and its pricing, make a comparison chart of shortlisted projects, their rates and actual offerings in terms of brands, finishes, makes and then only come to a conclusion of zeroing down to a particular apartment in a project.

There are many developers who themselves as will make this comparisons for you to pitch their product but you as a buyer should do this home work. If you do not do this then it is entirely your mistake when you do not get the desired product which was pitched to you in the beginning.

Many times what happens is that a good product with very good specifications by a grade A Developer and another product of much less specs and quality by a Grade B Developer, is offered at almost same rate ( at same location). And some buyers often buy the inferior product and then regret there after. This happens because there homework was not good at all or some other factor force them to buy the inferior product.

To avoid all these regrets and repents please wake up and buy with your eyes wide open.

Bottom line: A good product overall will always give value for money even after 15-20 years as it is the real good one.

Buying a Property-- Luxury apartment per se

Everyone likes to live a good, healthy, comfortable, and cozy lifestyle,

Which means Luxury-which actually means: Free or habitual indulgence in or

Enjoyment of comforts and pleasures,  in addition to those necessary for a reasonable standard of well-being.

What do you look for when you go for shopping a Luxury home: - Location, Connectivity, Developer brand, Project UPS’s: Area-carpet and sale area, Elevation, Specifications, Amenities, brands, Cost, hospitality of staff, possession time, services, after possession services tie-ups,

How many projects do you see? What do you compare in various projects and products? Do you compare apple to apple or to grapes? Do you need an influence in making decision?

How do you arrange for the cost of apartment-though self contribution or finance?

Do you have choices and is the product worth buying?

If a developer tells while sales pitching various development which are not in his control like roads, civic amenities, other developments, local daily shopping needs, do you take those talks or take a risk assuming things will move on and works will be done by the local government.

How much research do you do while and before making a decision to buy a home? Do you need assistance from some consultant or expert to guide you and enable your transaction? Do you look for that comfort and mediation from the expert to actually guide and make the entire buying experience a really exciting one?

What weightage do you give to all these and do you believe in such things like consultant, expert or broker?

Real Estate is such a complex and not so easy to understand industry which actually is very easy and simple to make money and high appreciation.

Here we come into picture and bring our experience and knowledge on table to share with you where we enable you to take a conscious decision to buy your dream home and a correct value.

Mostly buyers do their research themselves and compare very few things broadly like location, Developer, areas and its suitability, cost and product from macro perspective. Here they fail to do the micro analysis like actual product, the finishes, the brands, product range & series, their costing, legal aspects and  do not do actual comparison i.e. apple to apple, here they fail and make mistake, and actually end up paying wrong price for a wrong product.

It is advised to go hire a consultant to address all the above issues...to successfully enable the transaction to your satisfaction.

Buying a real estate property.

What first? Identify property first or organize your funds first.....

Is it a tricky question, that whether to identify a Real estate property and then arrange for finances? Normally what people do is they window shop for many days, see various locations, meet developers and then come back to see whether they can buy the identified property. And only then they know that they have to actually stretch by about 10 to 15% minimum or even more. This is case one for people who are going to self finance. But what about those who have to depend on the housing loan or any other assistance. I have come across people who do window shopping for property, identify it and do not give importance to know their eligibility from a housing finance company (HFC). Now when they go the HFC and they learn that they are falling short by 10 to 15% of total cost, because they have identified a property of say Rs. X + 20%X.

Now, lets make this very simple. You know your earning potential, your cash reserves, then you need to go to an HFC and get an in principle sanction letter for x amount. so you know for sure that you have to arrange the margin money i.e. total cost minus the loan amount = Margin money. You should look for a property in this budget only with a slight variation of 1 to 2 % which most of buyers can bridge and close.

It is much more easier to buy a property when you have a definite budget and got the means of  arranging it.

 i,e, you do not have disappointments later.

Real Estate has products which have the most variables in terms of areas, rates, specifications, locations, developer brand, possession time limits, amenities, specifications, carpet and sale areas, elevations, flat designs, Vastu, access roads, floors, garden and non garden facing, etc, etc.

So it is always good to have your buying capacity defined, preferences, likes and dislikes items and then look out for properties.

Happy property shopping......

What is the meaning of Real Estate?

The term ‘real estate’ refers to land as well as building. The word ‘land’ includes—the air or atmosphere above and the ground below and any buildings or structures on it. It covers residential houses, commercial offices, trading spaces such as theatres, hotels and restaurants, retail outlets, industrial buildings, factories and also government buildings.

The transaction includes:

* purchase,

* sale, and

* development of land (both residential and non-residential buildings).

Transfer of Property Act

As per the (Sec 3), ‘Immovable Property’ does not include standing trees, growing crops or grass. Thus, immovable property constitute of ‘Building’ and ‘Machinery’ if embedded in the building for the beneficial use thereof. Then it must be deemed to be a part of the building and the land on which the building is situated.

General Clauses Act 1897

As per Section 3(26), ‘immovable property’ shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth. This definition of immovable property is also not exhaustive.

The Registration Act 1908

The definition of the term ‘Immovable Property’ under the Registration Act 1908, which extends to the whole of India, except the State of Jammu and Kashmir, is comprehensive.

Section 2(6) defines ‘Immovable Property’ as under:

‘Immovable Property’ includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth or permanently fastened to any thing which is attached to the earth but not standing timber, growing crops nor grass.

India’s property markets are on a fast track, driven largely by the rapid expansion of its information technology industry, a retail boom and the simultaneous growth of its middle class. Robust economic growth and low interest rates have revived the demand for property across urban India.

Added to this is the release of large chunks of land for development. If it is the booming information technology industry that is fuelling the demand in south India, the industry-friendly policies of Himachal Pradesh, Haryana and Punjab are triggering an explosion in the north. In Mumbai it is the release of mill land now available for commercial/ residential development.

A flourishing economy, the entry of MNCs and the outsourcing wave have led to greater employment opportunities being created not only in urban areas but also surrounding suburbs and towns. This propels the demand for residential properties, as with business growth comes a spurt of population moving into these cities for employment purposes looking for accommodation in the city. This is leading to rapid urbanization, which is providing a huge impetus for the development of real estate.

The IT/ITES sector, along with retail stores, mega shopping malls and multiplexes, have provided scope for present and future development of real estate in not just the metros, but also tier-II cities. This hectic activity in real estate may have led prices to go up much faster, but only in some parts of the country such as Gurgaon, Noida and parts of Mumbai, Pune and Bangalore. In some other parts, the rates are the same as 10 years ago or even lower.

Real estate prices had witnessed a lull between 1995 and 2002 and it is only in recent years that they started moving up. We have seen that the interest in real estate and the corresponding demand is from genuine buyers and not from speculators or investors. Since the demand for housing is from genuine purchasers, there shouldn’t be too much concern of the market heating up.

Besides, the increase in property prices is due to better construction quality and provision of other amenities. The demand for housing has been growing because affordability has improved. Lower interest rates, tax concessions and rising income levels have contributed to the increased demand for housing. There has been a shift in the mindset of customers who were averse to take a loan earlier. Today, the aspirations of the urban middle class are rising with higher disposable incomes and they are eager to own things early. There is a rise in nuclear families and the average age of homebuyers has come down.

Shortage of housing in India is huge and is estimated to be in excess of 20+ million, the mortgage penetration is only 3-4% of GDP, which is very low compared to other countries. Adding to this, people are constantly upgrading themselves to a bigger home or a better location and with the influx of population pursuing job opportunities, the housing rent market is also growing. Due to the attractive tax benefits available on home loans, customers with higher incomes are ready to invest in a second home with the purpose of renting it out. Case in point: Bangalore, Pune, pockets of Chennai.

On the other side, in places like Mumbai, Pune, and other metros in India, where the boom is being driven largely by release of mill land/agricultural land for development, speculation is mainly on land prices. Whilst developers are purchasing large plots of land at a hiked price in anticipation of demand, they are cutting on their margins while selling developed properties to match up to the existing property prices. The hike is mainly on land prices, and not as much on house prices.