Pune the New Entry in the Real Estate Growth

With the increasing population in Pune, the challenge in infrastructure has been increasing, which has led to scarcity in available of land that has forced the extension in the boundaries of the city.

The venture of IT and ITeS industries boomed the residential segment in the Pune real estate market that gave way to many unrestricted developments.


The impractical property prices engulfing the Pune Real Estate Market, the city’s unique selling points (USPs) with customary comfort of living and pleasant environment underwent. Today, Central Pune is expanding fast by exploiting hills, trees, and concrete jungle to accommodate to accommodate the rising demand in the sector. In this situation, the town planning commission is helpless for development need, and outdid all practical and justifiable boundaries.

Real Estate Glooms in Central Pune
With the booming IT hubs, the form of development in Central Pune has been absolutely covetous and inadvertent. Few places like Hinjewadi saw increase in demand for homes, Aundh witnessed many projects by property developers, while property prices in Wakad and Baner increased sharply, which was finally altered.

Attention on Pimpri Chinchwad Municipal Corporation (PCMC)
Currently, central Pune has lost its earlier class and environment in residential property segment. Hence, homebuyers started to focus towards Pimpri-Chinchwad Municipal Corporation (PCMC), which has arisen as the last settlement in Pune with the comfort levels of past residential property.

The growth of the real estate sector in the Pimpri Chinchwad Municipal Corporation is closely controlled by the PCNTDA to confirm strategic and accurate development.

Central Pune is exploited from contamination, reducing greenery, traffic jams, dearth in water and power, shortage of proper infrastructure and impractical rates of residential property. For now, Pradhikaran is profited from practical real estate development and the city’s growth is directed in the North and North-Western direction and is substantial for long-term investment in residential property.

Pradhikaran in Prominence
The PCNTDA instigated to gain land in the Pimpri-Chinchwad Municipal Corporation (PCMC) area strategic growth in the future and involved the sharing out of definite areas for industrialized activities, residential property expansion, community parks, open spaces, office buildings, shopping centers, infrastructures and conveniences.

Water supply to all sectors was facilitated before the development in each sector was allowed. With the development in the PCMC industrial sector, the demand for residential property in the Pradhikaran area in the past two years saw an increase.

Today, Pradhikaran area stands for about 7000 acres and is repeatedly seeing infrastructural improvements like water, roads, electricity supply, and digital connectivity.

Pradhikaran now vaunts of huge integrated township projects that symbolize environment and ecological living and the existence of manor companies like Talawade, Tata Motors, Hinjewadi, Chakan, and the Pimpri-Chinchwad industrial areas enhance the worth of these integrated townships, along with the favorably reachable to the financial capital city of Mumbai through expressways.

Considering all these criteria, Pradhikaran is finest choice for investments for first home buyers in the Pune’s real estate market.

A Survey States That Investment Professionals Are Optimistic on Indian Economy

According to a survey by investment professionals’ grouping CFA Institute, a huge number of Indian investment professionals are positive about prospects of global as well as domestic economies. However, they are worried about lack of ethical culture in financial firms.

According to CFA Institute’s annual survey, titled ‘Global Market Sentiment Survey which was released on Monday, it stated that Indian members are even more optimistic about their local market. In 2014, around six in ten (61 percent) respondents expect the Indian economy to expand. But there are issues about the political instability which may have a negative effect on the outlook. A startling figure of eight in ten (78 percent) quote this as the huge risk to the local economy.


The report also stated that Indian members are increasingly concerned about the lack of moral culture within financial firms. About 62 percent identified this as the major cause causing the present lack of trust in the finance industry. The report also stated that only Singapore (63 percent) and Switzerland (71 percent) are more serious.

As many as 96 percent of respondents from India felt that effects on energy prices caused by unrest in the Middle East would have a negative impact.

The report went on to add that many more Indian respondents believed that progress of recovery in Europe might have a constructive impact (85 percent), to a much greater degree than they believed progress of recovery in China (56 percent) or even domestic political stability (58 percent) would.

India will be into a general election next year. This is being seen as the cause of domestic political instability. According to CFA Institute president and CEO, the number of members who anticipate the global economy to get bigger has nearly doubled in the last two years.

To Expand Business, Global IT Firms Look Out For Properties in Indian Cities

It is believed that the multinational information technology companies are on the lookout for property around major Indian cities. This is with the purpose to go on an expansion mode of the offices as well as look out for more people to run them. The real estate sector which for the past two years, is currently struggling with stooping sales and rising inventories is seeing brisk investment flow now.

In the last few months, around a dozen big-ticket lease agreements have been signed by these companies. It includes one by Oracle locked for 400,000 square feet of commercial space in Hyderabad.

Apart from this, CISCO, SAP Labs, Dell and Accenture are the other ITeS/ IT majors which have acquired or are about to acquire large office spaces. This is to accommodate their anticipated headcount growth.

Properties-in-Indian-Cities-dreamzinfraareviewAccording to an executive form Cushman & Wakefield, he said that after a situation of downward trend in 2013, the office market is likely to remain appealing for occupiers with steady increase in absorption. Moreover, with commercial real estate rental on low, the cost of availing office space has become very appealing.

On the Outer Ring Road in Bangalore, German-headquartered SAP Labs has picked up over 200,000 sq. ft. office space in RMZ Ecoworld. This is apart from the 400,000 sq. ft. that it is building in order to expand its campus in Bangalore. Amazon too has added 645,000 sq. ft. in SP Info City in Chennai.

As per the rule, companies usually provide 75-80 sq. ft. of space per employee. The other ITeS/ IT companies which have bought space of late are Adobe and Accenture. Whereas, Adobe has bought 250,000 sq. ft. in Bangalore’s Prestige Tech Platina, on the other hand, Accenture has taken over 400,000 sq. ft. of office space on the city’s Hosur Road.

Besides, the software firms and global IT services are facing two major challenges — stiff competition and constantly changing technology environment.

Moreover, companies are trying to shoot up their research and development strength besides shifting more and more high-value R&D work to their India centers. In the current fiscal, according to Nasscom, the IT export market is slated to grow by 12-14%.

It has been noticed that there are some companies which choose to expand in the same campus like CISCO, IBM and Dell. Cisco, currently occupies 2.3 million sq. ft. at Cessna Business Park in Bangalore. In the same facility, it has additional 0.5 million sq. ft. under construction. On the other hand, Dell is also setting up a 400,000 sq. ft. in the already existing campus in the city.

According to Cushman & Wakefield, commercial real estate absorption is likely to pick up at a growing pace with 28 million sq. ft. to be absorbed by 2015.

Highest Number of Residential Launches Seen in Bangalore

It has been noted that in the first quarter of 2013, real estate developers around India launched approximately 38,000 residential units. This was almost 2 Percent downward trend from the last quarter. There were various factors for this and some of them were passive demand and postponements in regulatory approvals in some markets and sufficient availability of stock.

Besides, Bangalore witnessed the maximum number of unveilings in the first quarter at 11,622 units. This contributed closely in the top eight cities to 31 Percent of the overall new supply. This was followed by NCR which witnessed 7,603 units that were launched. Mumbai stood at 7,226 units. This was according to the latest report by Cushman & Wakefield, global real estate consultancy.


Over the previous quarter, the NCR market witnessed a 40 Percent downward trend in new launches. Noida witnessed only 34 Percent launches whilst Gurgaon accounted for 66 Percent of the new launches. There was a decline of around 70 Percent due to passive demand. For the overall decline in the number of launches in Delhi NCR, this was the main reason. The report also stated that close to 80 Percent units sprung were in the mid-range sector.

In the first quarter, both Bangalore real estate and Pune real estate saw the highest number of unit launches (almost double) at 144 Percent and 109 Percent respectively. Whereas, Hyderabad saw close to 90 Percent downward trend.

Reviews on how ideal renovations would benefits new buyers

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You’ve unpacked, painted the walls, and taken care of other small home repair projects. Now it’s time to relax, open a bottle of wine and enjoy being a homeowner. Right? Think again.

“I tell my new homeowner customers that you’re going to find problems every season for a few years,” says Rich Escallier, a handyman in Chicago. “If you can go six months without finding something that raises your blood pressure, you’re lucky.”

Contractors and remodeling experts agree that new owners shouldn’t rest easy after their home purchase.

Starting from the moment they move in, new owners should look ahead to routine maintenance and take care of small home repairs right away to head off potentially costly mistakes. Here’s a quick timeline of things to look for.

Move-In Week

Make it a point to turn on all of your major appliances and let them run for a complete cycle, especially if your home is newly built. Believe it or not, contractors and home inspectors don’t always test out these devices after installing them. It’s easy to improperly connect appliances dishwashers and microwave ovens, says Daniel Cipriani of Kade Homes & Renovations outside Atlanta, Ga.

“If you have a minor leak under the dishwasher, that water leaks into the subfloor and you can’t see it,” Cipriani says. “But you’ll start to notice the hardwood floor buckling.”

Repairing the floor after a minor leak goes unnoticed can cost as much as $5,000.

If you’re in a new house, be sure to read your warranty — don’t wait until an emergency to start familiarizing yourself with your legal rights and responsibilities.

45 Days

Change the filter on your HVAC system, and vacuum out the air intake vents. Capturing dirt and dust with the right filter can go a long way toward preserving the new home appeal for a few years.

Six Months

During summer months, keep an eye out for invasive animals like squirrels, birds and wasps. These pests look for loose soffits and buckled siding as a way to get into your home. Once there, they can make a nest, raise young and wreak havoc on hard-to-reach areas of your home.

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Twice a year in the summer and fall, inspect the exterior of your house to make sure rainwater is draining properly. Clean out clogged gutters and downspouts. Construction professionals recommend six-inch gutters and proper landscaping so that rainwater is directed away from your foundation.

“Landscaping should be negatively graded away from the house,” Cipriani says. “People don’t think it’s a big problem, but otherwise water pools against the foundation and doesn’t have anywhere to go.”

Fixing up your foundation could cost upwards of $10,000. Even one crack in a poured concrete wall could cost $800 to $1,500 per crack, according to the Foundation Repair Network.

“If you can fit a nickel into it, you’ll know that it might be an issue,” Cipriani says.

Each winter, check to make sure that your pipes are properly insulated against freezing. Consider installing an inexpensive insulating hood over exterior water spigots.

Every Year

Inspect your roof or have a professional roofer conduct an inspection. Look for missing shingles, gaps in the flashing around chimneys and other hazards. Indoors, check your ceiling for water spots. If you see a spot, don’t panic — just trace the spot with a pencil so you can monitor its progress to see if it’s still growing. Some minor leaks will clear up without your help, but most don’t, so you have to stay vigilant.

Every Two Years

If you have a sewer line or a catch basin, expect to have it cleaned out and inspected by qualified plumbers. They’ll check for broken pipes, roots growing through the line and other potential flooding hazards.

Have a professional HVAC contractor inspect your furnace, air conditioner and hot water heater. Often hot water heaters are located close to other major appliances — and a ruptured reservoir could spill 40 gallons of water in a few hours. Escallier recommends installing an inexpensive water alarm with sensors in the collection pan beneath the hot water heater. A $25 water alarm can head off a potentially disastrous basement spill.

Above all, don’t put off little repairs — that just compounds the problem. The most common thing customers say to Escallier after a big repair job is, “We wish we would have done this sooner.”

“You want to enjoy living in your house,” he says. “Don’t put your head in the sand.”

Source – Yahoo News

Reviews on How Real Estate Developers are offering discounts

If you have been waiting to buy a home, this could be your chance for some bargain hunting as nearly five lakh apartments are expected to be delivered this year, shaking up an already oversupplied home market and forcing investors to sell them in a hurry.

“The widening demand supply gap will help prices fall further,” says Pankaj Kapoor, managing director of Liases Foras, a property research firm, which supplies market data to banks and industry.

ET reported that property prices have begun to soften around the country and builders have started to offer discounts as high as 10% in some cases. According to the National Housing Bank’s (NHB) residential housing index Residex, 22 of the 26 cities it tracks have seen a decline in home prices between 1% and 5% in the April to June quarter.

While builders under pressure have started offering discounts, an even better opportunity is emerging in the secondary-resale market where over-leveraged investors who had picked up properties over the last few years are willing to offload their inventory at discounts as high as 30%.

The advantage for a home buyer is that several of these apartments that investors are selling in cities like Gurgaon, Noida, Mumbai, Bangalore and others, will be delivered in 2013, so the wait for your dream home could become much shorter.

Many investors who are already sitting on ready-to-move-in properties are also exiting at discounts for want of funds and the fear of a further correction.

Amit Bansal, who runs a chemicals business and has been investing his business surplus into real estate, sold a 2,400 sq ft apartment in Emaar MGF’s Palm Terraces Select on Golf Road Extension in Gurgaon for Rs 8,300 sq ft fearing a drop in prices in the current market. Just a few months back he was getting offers of Rs 8,600 per sq ft for the same apartment.

For the end-user who bought the apartment, the price was a decent bargain, of over 40%, considering the developer’s price is around Rs 12,000 per sq ft. For Bansal too, it was a more than profitable exit as he had invested at a much lower price point.

In Mumbai, an investor is selling an apartment in a project called Dheeraj Celestial in Bandra for Rs 55,000 per sq ft while the builder is selling it at Rs 70,000 per sq ft.

In south Kolkata’s Topsia First lane, Mohammad Rafique bought a 1,100 sq ft apartment for Rs 2,500 per sq ft in 2007. While the developer’s rate is Rs 4,500 per sq ft in the same project today, Rafique sold it for Rs 4,000 per sq ft.

In search of liquidity, Prabhakar D, who bought a property in Channasandra in the eastern periphery of Bangalore, is selling an apartment that he got for Rs 36 lakh for Rs 50 lakh. The market price of the apartment is around Rs 70 lakh. “The response has been overwhelming,” says Prabhakar.

Source: economictimes.indiatimes.com/markets/real-estate/realty-trends/new-supplies-resellers-to-bring-down-home-prices/articleshow/22273085.cms

Reviews on Developers adopting latest technology to cut costs


Real estate developers are increasingly cutting 10-15 per cent of their costs by adopting new construction technologies. At a time when buyers are complaining about developers not sticking to delivery schedules and delays stretching for three-four years, these technologies have come as a boon. Along with reducing the time taken to complete units, these technologies also help overcome labor shortage and tackle the rise in input costs.


Now, precast technology and prefabricated structures are common in the realty sector. As the structure/wall panel/block is per-built in this case, the time taken to complete a unit is reduced manifold.

Brotin Banerjee, managing director and chief executive of Tata Housing, says the adoption of technology by the Indian realty sector has been slow, though it has picked up pace. “Over the past five years, there has been a shift in the trend. With growing labor shortages and increasing input costs, developers need to bring in new technologies to not only to save costs, but also improve the quality of construction,” he said.

“We have used low-cost technologies      and raw materials such as reinforced concrete blocks, precast hollow blocks, precast lintels, floor tiles and pre-fabricated panels and polymer panels for doors and windows. We have reduced construction costs 20-30 per cent. We have also been able to save seven-10 per cent of costs compared to conventional construction,” he added. An analyst tracking the sector said, “We will see more and more developers opting for technology innovation in construction. Apart from saving on costs, the developers are focusing on quality and timely delivery, which would also improve their brand value.”

Value and Budget Housing Corporation (VBHC), an affordable housing venture, has saved 10-15 per cent of costs by using new technologies. It has automated all facets of its operations—from procurement to construction. Sanjeev Kumar, general manager (design and planning), VBHC, said, “We use satellite imaging to analyse land parcels prior to a purchase. This preliminary analysis enables us to select land which results in lower infrastructure costs.”


The upfront analysis also reduces the design time and includes slope banding, which helps optimize ‘cut and fill’; watershed analysis is used to get an idea of the direction of water flow. For its coming projects, the company is also exploring technologies such as precast.



Source: business-standard.com/article/companies/realtors-embrace-new-technologies-to-cut-costs-113082100306_1.html

Bangalore-Mumbai Industrial Corridor boost for realty growth


The city’s IT industry and salubrious climate along with its cosmopolitan outlook and realty growth prospects can be comparable to that of Pune. Most of the IT workforce and MNCs prefer Pune after Bangalore. This is not only due to the access that the NH 4 provides, but also attributable to the weather and cultural implications that put the two cities almost on par. Giving a thrust to bridge the gap between these two cities is the proposed Bangalore-Mumbai Industrial Corridor (BMIC). Recently, the industry and experts from western Maharashtra were consulted to give their inputs for the blueprint for this proposed corridor.

“The BMIC is currently at a nascent stage with planning, formalisation, fund allocation and execution yet to commence. The proposed corridor is anticipated to connect the city in the north-west along Tumkur Road which will leverage residential, commercial and industrial developments,” explains Vijay Ganesh, Director – Land and Industrial, Cushman and Wakefield.

“Currently, the location has a few manufacturing units operational. Also, the Metro Rail work in progress and the proposed Peripheral Ring Road (PRR) are likely to enhance the attractiveness of the location in the coming years. Industries considering this corridor in future may evaluate land in locations such as Vasantha Narasapura Industrial Area where Karnataka Industrial Area Development Board (KIADB) has set up a park and is allocating land parcels. Further, industries may also look at land options in the National Investment and Manufacturing Zone, which is proposed to be set up at Tumkur,” he adds.


In western Maharashtra, the three districts of Satara, Sangli and Kolhapur, fall along the BMIC route and economic activity in the region is expected to become active. The blueprint once drafted will have to be approved by the State and Centre. Mumbai, Pune and Bangalore are wellconnected with air, rail and road connectivity. The NH 4 connects these three metros and strategically passes through the three districts of western Maharashtra as well as the districts of Belgaum, Dharwad and Chitradurga in Karnataka.

The Minister of State for Home, Maharashtra, who will be spearheading the initiative, said the proposed corridor will make a huge impact in the region. The corridor will shorten the distance and time between Mumbai-Pune-Bangalore routes in the coming days, according to industrialists in Maharashtra.

“This corridor is expected to connect India’s IT capital with its financial capital and also improve the commerce in the States of Karnataka and Maharashtra. It is anticipated to accommodate steel, cement, auto components, readymade garments, food processing and textile industries. This calls for umpteen employment opportunities within the next 5-10 years, especially since the UK is to extend financial assistance to the proposed corridor,” opines Shrinivas Rao, CEO, Asia Pacific, Vestian Global Workplace Solutions.

“Bangalore-Mumbai Industrial Corridor connects Bangalore with other prominent cities of Karnataka – Hukeri (Belgaum), Navanagara (Bagalkot), Belur (Dharwad), Bharamasagara (Chitradurga), Shimoga, Savanur (Hubli), Haveri, Kushtagi (Gadag), and Yelburga (Gadag), from where raw materials required for the industries are essentially procured. This mega industrial corridor also includes upcoming Tier II cities in Maharashtra such as Satara and Kolhapur and will connect Bangalore to major industrial and logistics hubs like Pune and Mumbai respectively. The availability of large land parcels, proactive government initiatives and existing industrial developments are sure to fuel investments in this corridor,” adds Shrinivas.

Closer to the city, this corridor will aid realty growth like never before. “The industrial connectivity to different States and setting up of special industrial zones in addition to support infrastructural developments will aid investments along the corridor. Some of the projects like the Peripheral Ring Road and Metro Rail are likely to increase the prominence of adjacent locations which will lead to real estate development,” says Vijay Ganesh.


NRI’s should look for strong portfolio while returning back to India

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More choice requires more clarity in decision making and non-resident Indians (NRIs), especially those living in the developed world, have a variety of avenues for their investments. They may, for example, choose to invest in the country of their residence or park their savings in the Indian market.

Though the Indian economy has slowed down significantly and is not as attractive an investment destination as it was until a few years ago, it remains one of the fastest growing large economies in the world. The motivation for investing in India could range from just diversification of the portfolio to better understanding of the Indian conditions.
However, questions such as the amount of allocation and the choice of assets must be answered before NRIs begin to build their India portfolio.

The allocation arithmetic:

To solve the puzzle of allocation, NRIs investing in India can be divided into two groups. First, those who have liabilities in India or those who want to come back and settle in India. Second, those who do not intend to come back in the foreseeable future.
Naturally, it would make more sense for NRIs who intend to return or have expenses in India to allocate more money towards an India-focused investment. Says Suresh Sadagopan, founder, Ladder7 Financial Advisories, a financial planning firm: “NRIs should look at Indian assets on merit.”
It should be noted that investing in India also has currency risk and may affect returns for NRIs looking forward to repatriate money back to the country of their residence. For example, if an NRI invests in an instrument in India and earns 10% in a year, but if the currency falls by more than 10%, as it has happened in the last few months, he will suffer a loss. However, if the idea is to invest for future needs in India, the rupee depreciation will not matter much as expense will also be in rupees.

Choice of assets:

NRIs have the choice of investing in equity, debt and real estate in India. NRIs can invest both directly and through mutual funds in the Indian equity and the debt markets.

Says B. Gopkumar, executive vice-president and head-broking, Kotak Securities Ltd: “The term deposits are very attractive for NRIs right now.” Term deposits are offered by commercial banks in India. Gopkumar argues that there is huge interest rate arbitrage for NRIs in term deposits. While an NRI will earn about 2.5-3% in the developed world, the interest rate is 8.5-9% on non-resident external (NRE) accounts, where money is freely repatriable and the interest is also tax-free in India. So even if gains are affected due to a fall in rupee, NRIs could still earn more on their investment compared with fixed-income products in the developed world.
NRIs comfortable with equity may also like to accumulate shares of some of the frontline companies in India.
In real estate, too, the case is more compelling for NRIs who wish to come back and settle in India. This asset class may not make much sense if the property is bought only for investment purpose. Since the owner will not be living in India, there is a chance that she will lose out on the rental income and it is only capital appreciation that will count, which according to experts, is similar to returns in other assets in the long run. Says Vishal Kapoor, general manager (wealth management), India and South Asia, Standard Chartered Bank: “One should not be over-exposed to real estate.” People generally see real estate as a high return asset, but Kapoor argues that it is not the only asset that gives good returns.

Money take:

For NRIs, investment in India should be part of the overall financial plan. However, it makes sense if NRIs with current or future financial commitments in India keep some part of their portfolio in India. For NRIs who do not plan to come back anytime soon, India is like any other market and the allocation should depend on the merit of Indian assets.

A Dreamz Infra Review – 3 Reason to Invest on Property in Bangalore

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Bangalore, recently, has been enjoying uninterrupted favoritism in terms of real estate investments. This ascending trend of preference has been triggered by certain factors responsible for welcoming more and more potential investors showing interest in residential as well as commercial complexes. If the wide ranged price bracket allowing all low-medium-high income clientele is kept aside, quality, institutional and infrastructure development rank as the top 3 reasons positively influencing investments inclinations towards Bangalore.

One of realtor highlighted the plus points of the city by the virtue of which it is being able to draw consistent attention of investors – Bangalore, absorbing the highest quantum of commercial space in India, flaunts one of the highest per capita incomes with rise in the number of white-collar professionals. Moreover, the increasing demand for residential housing is being met by developing good quality homes at affordable price compared to other national metros.

He also emphasized on the institutional development that complimented residential projects hand-in-hand based on the scale of massiveness. With more educational centers opening their gates, families have been expressing extended willingness to settle down in the vicinities of schools and colleges. Additionally, the genre of working youngsters, who prefer to cherish the luxurious amenities of gated communities and hence choose to rent them even at higher costs, when given an option to own them at affordable rates, never hesitate to do so.

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The vibrant infrastructure of Bangalore also attributes to popularity of the city. Together with the mixed platter of apartments, villas or row houses under varying ranges, the city poses a more welcoming realty market than other tier I and tier II cities.