5 Reasons Why India is One of the Top Realty Hotspots in Asia

There is a big change in the way people think about property nowadays. Previously one used to buy property for accommodation for themselves. But now, people buy property as a lifetime investment. If you are interested in investing a part of your income in real estate, you have to choose the property very carefully. Thankfully, finding real estate is never too hard as India is constantly expanding in the realty industry.

Presently, India is booming in real estate zone, especially in its metropolitan cities. In 2016, if you want to buy property in Mumbai or Bengaluru, it would be a wise investment. Followed by these cities are properties in Delhi, Chennai, and Pune. A recent survey stated that 35% of expats staying in the UAE wanted to buy property in Mumbai.

• The Attractive Government Policies

The Government of India has come up with some liberalization measures in the past few months which has increased foreign investors’ interest in real estate market in India. The Indian Property Show held this December from 11th -13th at the Dubai World Trade Center revealed Bengaluru as one of the favorite areas for NRI investment because of it’s growth in many fields simultaneously in the last few years.

This goes to show that the Government of India has paid serious attention in bringing in foreign investment through real estate. The minimum built-up area in case of foreign direct investment (FDI) was 50,000 sq. ft. which is now reduced to 20,000 sq. ft. Though the economic structure of the country shows dis-balance at times, the property investment has not been affected by this.

• Greater Demand

Presently there lies a huge opportunity of investment in upcoming and happening cities like Mumbai and Bengaluru. Mumbai stands as the first choice of real estate investment due to the immense business options and opportunities. Mumbai is facing problems with the scarcity of free land for further construction. So, Navi Mumbai and other cities are coming up in the periphery of the city of Mumbai. In the last one decade Bengaluru has developed massively in the technology industry, becoming the best hot spot for the IT sector in the country. The availability of skilled labor and capital-backed start-ups are also a prime reason for the city’s growth.

• Free Lands Readily Available

If you are planning to invest in real estate, India is an attractive destination. It is the right time to invest in a property in Bengaluru as it’s the information technology hub which in today’s world will provide jobs to millions. So, people will need places to live a smart life with lots of modern amenities. A large number of properties are available in the city and most of them are purely for investment purpose which offer good returns opportunities in the future. It is said that Bengaluru is the third largest real estate investment city for High Net worth Individuals (HNIs) and one of the cities right for Non Resident Indians (NRIs) to settle if they want to come back to India in the future to settle.

• Some Facts and Figures

‘Emerging Trends in Real Estate Asia Pacific 2014’ was a survey published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), which stated that Indian cities are in the list of top 25 real estate investment spots of the Asia Pacific region. A survey was made where about 22,300 NRIs participated all over the UAE. These are a few striking facts that revealed themselves after the survey.

The main reason of purchase of property in India remains for personal use, which is about 54.42% of the population. Now, 45.57% of people want to possess a property for investment only. More than 65% of NRIs are looking for financial institutions to help them invest in property. 68.75% of the NRIs are willing to invest in real estate properties within six months. 17.49% of the NRI investors are looking for properties at an affordable range of 5 to 25 lakhs, whereas 51.35% are willing to spend money in the mid segment of 26 to 75 lakhs, 31% are ready to invest in properties ranging from 76 lakhs and above.

NRIs are most interested in residential apartments, which is 79.33%. Then are the villas and the commercial properties are their last choice.

As is evident, India’s real estate market has all the makings for an investment hotspot in Asia, and the rest of the world. If you’re looking to buy a buy a house in India, visit commonfloor.com for a breezy property buying experience.

This is a guest post by Naresh G

An analysis of the Indian luxury real estate market

Gone are the days when people compromised on residential facilities and amenities. These days, everyone wishes to have a gym or swimming pool on their residential premises. Convenience is no longer an option. It has become a compulsion to homeowners. Thankfully, the Indian real estate market has evolved from being a market obsessive about a home with a location to a new and vibrant concept of branded homes. Luxury housing concept refers to houses that are approximately 2000 sq. feet in area as the starting size of apartments. It goes onto much larger sizes depending on the category of luxury housing that the project is looking at offering. At this moment, potential buyers are checking out luxury villas for sale in Bangalore, Hyderabad, and Chennai. Today, luxury homes are the fastest growing segment of residential housing. Studies reveal that to cater to this growth in demand, India would require 1.5 million luxury homes over the next 15 years.

• How has globalization contributed to the development of luxury real estate?

In the last decade, rapid globalization has paved the way for employment opportunities. Due to this, income earned on the executive level is significantly high. Individuals from this segment are exposed to world-class amenities, are well-read, well-traveled, and thus, have an idea of what they want as a reflection of their taste and lifestyle. It has acted as a catalyst and paved the way for real estate developers to earn high-incentives while simultaneously catering to the housing needs of the uber wealthy of the city. These are the ones who are happy to pay for a luxurious property that would be an indicator of their social and financial standing.

Indian real estate market has witnessed a surge in the sale of properties due to an emerging concept of owning more than one luxury property by the upper segments of society. Investment in premium properties further diversifies the assets of an individual and is primarily motivated by a variety of reasons that range towards a passionate inclination or even investment purposes.

• Factors that draw potential buyers towards luxurious segment

There are multiple factors that a customer keeps in mind before investing in luxurious properties. Apartments and villas in Devanahalli, Bangalore, and other locations of South India are widely in demand. The location is stated to be the prime factor. Outstanding infrastructure, the status of people living in the vicinity, trouble-free access to nearby locations, etc. play a crucial role. Properties that are situated near golf courses, beaches, mountain tops are all time favorite developments. Research indicates that top locations in luxury segments in India are like ones that have an inclination towards environment-friendly projects. A vast number of individuals are demanding homes that would have less impact or no impact on the Eco-system. Green Homes make use of Eco-friendly/recycled materials for construction, use of solar energy and bio-gas plants, have more windows to allow natural light. These are some features that are considered while making a purchase.

• What is the future of luxury residential real estate in India?

Major steps are being taken towards the creation of intelligent living spaces. The use of high-tech built-in features that allow you to lock-unlock doors, air-conditioners, turn on the lights, etc., with a click of your phone, high-speed elevators and security systems such as limited access cards always makes a mark. Builders are even collaborating with international designers and brands to create a statement. Currently, the luxury real estate market is going through a slowdown due to an oversupply situation. NRIs are skeptical about the investment in this sector due to global economic downturn.

Ultimately, a smart buyer knows that it would make sense to use, this time, as the property prices are at an all-time-low, and would rise in the long run.

This is a guest post by Deepak Yewle

Filipinos, Foreigners and Former-Filipinos: Process of having a Home in the Philippines

Having your own real estate in the Philippines is nice to hear. There are many beautiful places to go. Beaches like Boracay in Aklan, waterfalls like Pagsanjan falls in Laguna, and big shopping malls. If you are a foreigner, you will like the people here in the Philippines because of their warm hospitality. Having a home in this country is quite difficult, especially if you’re a foreigner. You must undergo processes to have one.

For Filipinos, owning or having a home by themselves is not quite easy. Finding a place that suites your taste, finding a place that is near in the places you want to go, and finding a perfect home for your family. But don’t worry, there are people who can help you, they are called Real Estate Brokers. Brokers will help you find your perfect home and place. Their responsibility is to offer you a development that’s probably close enough to your dream house.

For foreigners, you own a building, but not the piece of land where the building is put on. So you can rent the land for 25 years* (which should be enough) and build a house on it which you own.You can purchase a unit in condominium buildings or high-rise apartment as long as foreign ownership will not exceed to 40 percent in a single project. But if you are keen on purchasing your own land, there are options:

• If you are married to a Filipino citizen, you can buy land but the title will be provided in his/her spouse name, but if in event of death or separation, the land remains to the Filipinos and will be given to his/her heirs (siblings or families)

• Another option to acquire land is through corporation. And only 40% in corporation is foreign-owned and the 60% is to the Filipinos. The land can be leased by the foreigner on a long term contract for an initial 50 year period and renewable every 25 years.

• If you are a retired foreigner, you can own a business and property by the use of the visa called the Special Resident Retirement Visa (SRRV). This visa cost $1500 for application and $400 a year to renew it. You just have to deposit money in a local bank account with the amount of $10,000 and $50,000. The exact amount depends on your age and your pension status.

For Former-Filipinos, same as the natural Filipinos, the process of owning or having a home is the same. Former-Filipinos are natural born Filipinos that are naturalized citizens in different foreign countries. If a former-Filipino who avails Dual Citizenship Law can buy as much land as any other Filipino Citizens. If a Former-Filipino does not avail, they can still own land but it is limited.

For Residential Use

• Only up to 1,000 square meters of residential land.
• Only up to one (1) hectare of agricultural of farm land.

For Business / Commercial Use

• Only up to 5,000 square meters of urban land.
• Only up to three (3) hectares of rural land.

   
Ergo, owning or having a land in Philippines is not a joke. You must know the law and the processes and have to follow it for your own good. Don't get easily discouraged just because the process of having a home or land is quite hard because in the long run, it is really worth it. You have to be patient, and respect the country. Good day, and Happy Living and have a good life!

This is a guest post by Sam Lemuel Mabatid from Philippines

Emerging Trend of Affordable Luxury Housing

~ win- win situation for all

Fast emerging HNI segment in Delhi NCR has boosted strong demand for luxury homes, so much so that this segment has surpassed all expectations. Due to high disposable income and greater aspirations, HNI buyers naturally want to lead a better standard of life and hence the demand for quality dwellings has witnessed considerable upsurge. Even to meet their expectations, a large number of developers have also ventured into this segment, resulting into a massive upsurge of luxury housing projects around the capital.

However, not every project is compatible to provide the truly desired luxury and most of the so called luxury projects are nothing, but demonstration of basic luxury features and amenities. To fulfill the actual demand of the buyers and in order to provide similar facilities and amenities ‘affordable luxury’ is another growing segment. In this segment a strong demand has been witnessed over the years which have created a win-win situation for everyone. In other words, the concept of luxury homes in India is striving hard to have relevance to a wider cross-section of the population.

Resultant, the affordable luxury homes segment is fulfilling all the expectations in the integrated township format. Luxury living projects though involve larger spaces and the provision of exclusive features such as individual swimming pools, reserved parking and smart interiors, affordable luxury projects on the other hand, offer all these facilities, but in compact format.  In addition affordable luxury homes located in such a setting also bring with them the matchless benefits of integrated township living for the home-buyers.

Such projects are helpful for the middle income group in realizing their dream of improving their lifestyle. Affordable luxury projects have successfully captured the larger market by providing the home buyers actually what they truly want rather than what artificially created standards of luxury offers.

In simple terms affordable luxury project are developed in such a manner that these remain in the financial reach of a much larger audience. The whole aim of developing such projects is centered around a distinct luxury flavor and experience without pricing the project out of the pocket of the mid-income segment of buyers. Affordable luxury projects are thus conceived and designed to meet the aspirations of middle-income buyers and so the developer has to upgrade the projects to a superior lifestyle without increasing their financial burden.

However, looking at the current real estate development scenario and the inspirational level of the home buyers, affordable luxury market segment is a good investment option.

This is a guest post by Aman Nagar, Director-Paras Buildtech

 

Apartment Related Compliances a Real Estate Salesman must know

Though almost every Real Estate Development company has a separate Compliance officer, to take care of various compliance, but Real Estate Salesman should also be aware of various Unit/Flat related compliance as he is the first point of contact between the company and the Customer. Since he is meeting the customer, therefore, generally the compliance officer will get the compliance completed through him and also have various documents delivered to client through him.

Hence, Real estate salesman's knowledge of compliance is very critical.

• Booking Amount: 

When he receives booking amount , client is given a code in company’s system and under that code he should ensure that Client’s file is started. A receipt should be issued to client for the Booking Amount received and that receipt contains information like Client’s Name, His Father & Mother’s Names, His Contact Address, His Permanent Address, Details of Nominee like Name, Relation and preferably Nominee’s Signatures also, Details of Payment Received: Cheque/DD No. (If Cheque/DD) or Cash, Date, Amount, Unit Number (Here he is temporarily allotted a Unit Number also).

• Booking Documents

Along with booking amount salesman must take following documents so as to complete the booking documents set:

1. Booking/Registration Form along with booking terms & conditions completely filled & signed by client.
2. Price List, with the price at which he is purchasing circled & signed by client. However, if client is buying at a price other than printed, in that case that price should be handwritten on Price List, circled & signed.
3. Payment Plan: A company may have different payment plans, so the one applicable to this deal should be attached along with & signed.

Once this is done, he is through with the booking process and move on to the next steps of the process. Here one thing very important to mention is that every payment he receives from customer should be by adding 3.50% Service Tax. And this has to be religiously deposited to government at the end of month.

• Allotment Installment

Now the 2nd installment is called the “Allotment Installment”. Here again a routine receipt for payment received in issued. But what is more important is that, at this stage Buyer-Builder Agreement is signed between client & developer. Two completely filled copies of the same should be given to client for signing. Under no condition, should it be first signed by a representative of company. Client signs both the copies, and attaches his KYC documents along with it and returns it back to company.

Then Authorized person of company signs both the sets, after which one copy goes to Client & other to his file.

P.S.: Each & Every paper entering client file should be signed by Client

• Due Payment Intimation

Whenever a customer’s payment becomes due as per the Payment Schedule he has chosen , compliance officer , may be with the assistance of his team, sends him an intimation.
After the intimation has been sent by compliance officer, salesman should follow with client as well concerned channel partner to get the payment within due time.

• Cancellation Of Booking

If the payment doesn’t come even after the passage of 90 Days (Again varies from company to company), then a cancellation letter should be sent to customer through Registered/Speed Post.
Salesman should also intimate this to client as well concerned channel partner.

• Transfer Cases

Many a times clients will like to transfer their property in someone else name. For that, salesman should have a properly worded & vetted by a Lawyer Transfer Set. This Transfer Set on a Stamp Paper of Rs. 100 should be filled & signed by both Transferor & Transferee. Both will attach their KYC documents along with & get it notarized. On submission of this, Transferor will have no rights over this property.

• Cancellation

During the process many persons will like to get the unit cancelled also due to some reason or the other. For this also salesman should have a properly worded & vetted by an advocate cancellation set. Any person willing to cancel a unit will fill it on a stamp paper of Rs. 100. Then after submission of the same, salesman should release him the payment as per company’s policy.

Cancellation will be complete once that person has refund amount in his account after which he will have no right over the said property.


This is a guest post by G S Bedi