Unitech Project Delays in Gurgaon

Project delays in Gurgaon. Many buyers are left in lurch. Home buyers had invested their hard earned money in some of the Unitech Projects; however, project delays have taken its toll on these buyers. Many are paying EMIs as well as monthly rents. What is the solution?

Revival of the residential real estate market this year

From the past few years, India’s residential real estate market has experienced a slowdown. Thanks to the macroeconomic indicator and measures taken by the Indian government to bring transparency, this sector is all set to rebound.

It is believed that apartments in Whitefield (Bengaluru), apartments in OMR (Chennai), and apartments in Kondwa (Pune) are great for investment, at the moment.

Ashwinder Raj Singh, the CEO, residential services, JLL India, said,“India’s residential property market has been going through turbulent times for past few years. However, things are looking up now with changes in the economy and various initiatives announced by the government.”

Factors like low demand, high inventory levels, and limited fund flow has dwindled sales in the sector, affecting the new establishments.

As per a recent report by JLL, the novel residential venture launches witnessed a reduction by 6 percent in the first quarter of 2016 over the last quarter of 2015.

Overall sales of residential properties declined in the financial year 2015-16 compared to 2014-15. As per recent reports, 1,58,211 units were sold in the financial year 2015-16 as opposed to 1,61,875 units sold in the financial year 2014-15, which is a decline of 2.2 percent.

A ray of optimism was seen in the otherwise hopeless situation with the rise of sales in the first quarter of 2016.

Specialists believe that the implementation of the Real Estate Act will give a positive drive to the feeble sector by reviving the spirits of the buyers through manifold initiatives.
One of the best initiatives taken is that the aggrieved party has the right to claim the amount at the prescribed rate along with the interest if the possession is not given.

Shveta Jain, the managing director, residential services, Cushman & Wakefield said, “The Real Estate Regulation and Development Act 2016 will encourage investments from foreign and domestic financial institutions and protecting the interest of the home buyers. Mandatory disclosure of projects, including details of the promoter, project, land status, clearances, approvals, etc. would increase the credibility of developers and would protect consumer rights as well.”

Ashwinder Raj Singh of JLL states 5 points for the road ahead for the realty sector:

• The expectation of good monsoon, recovery in the economy, decreased inflation, and the fact that the rates of residential properties are on a hike again has brought a shift in the trend. Also, the combination of an improved regulatory environment of the realty sector and progressive Government schemes like AMRUT, Housing for all by 2022 and Smart Cities are starting to create a positive influence. Moreover, factoring in banks’ passing on of interest rate cut advantages to the end user; the residential department is on the path of regrowth. 

• At the end of the financial year 2015-16, the rates were stagnant or at a modest rise. While Lucknow witnessed a hike of 16.1% in the prices in third quarter 2015, NCR witnessed a price ascent of 5% during the second quarter of 2015. Moving forward, rates are expected to rise moderately.

• The establishment of the Real Estate Regulatory Authority to ensure timely delivery of the real estate projects and bring more transparency in the dealings with builders has build trust in the market, motivating the buyers to invest again. A credible start has been indicated by the affordable housing segment, with this division seeing heightened traction on the outskirts of the leading cities. Of the entire sales, more than half the properties were marked below Rs. 5000/sq ft in the financial year 2015-16.

• International factors have an effect, but India’s present low-interest rates and low inflation rates along with moving economy will encourage development in the residential realty sector in the mid-to-long term.

• The encouragement that the latest Union Budget is providing to both, the demand as well as supply side has improved the funding for the real estate industry. It has also helped in clearing problems on REITs. More impressive signs of recovery should be evident during the last quarter of the year 2016 or by the first quarter of 2017.

This is a guest post by Deepak Yewle

5 Top Affordable Rental Locations in Bangalore for Working Professionals

Bangalore has a number of IT and business parks where thousands of working professionals earn their livelihoods. But with the traffic situation in the city escalating to new heights every passing day, it doesn’t make neither financial nor logical sense to move to areas that aren’t close to your workplace.

However, there’s one more concern you need to address- the cost of living. Not every rental property close to these IT hubs come cheap, courtesy of the rising price of rental houses in Bangalore.

 (Picture Source – Pixabay)

Besides, not everybody can afford to buy a luxury apartment or live in a villa in this expensive city. So here are the top 5 affordable locations in Bangalore, you and every other working professional should know about.

• Whitefield

If you’re particularly in the IT industry, living anywhere in the Whitefield vicinity is the best decision you can make. For starters, you can find houses for rent at as little a budget as Rs. 7000 per month, which come semi-furnished with modular kitchen, geysers and the like. Another important aspect about Whitefield is that it’s a little far away from the fast-paced life of the city and sees relatively less traffic. Basically moving to Whitefield can save you a lot of money and time, which you’d otherwise spend on commute.

• Marathahalli

With plenty of tech parks and other employment hubs in its vicinity, Marathahalli is yet another locality that sees a vast majority of working professionals looking for an abode. You will get houses or flats for rental as little as Rs. 6000 per month, depending on the choice of area. Places like Prestige Tech Park, Ecospace, and Divyasree Technopolis are just a few of the well-known IT hubs in and around the area.

• KR Puram

With easy connection to ITPL and Marathahalli, KR Puram is slowly becoming the most sought-after locality in Bangalore. Besides, this area isn’t too far away from the city either. Located along the fringe of National Highway 44 (Bangalore to Hyderabad), this locality also offers you some respite if you’re looking to go for a long drive on a lazy weekend. Rents around here start from Rs. 6,000 per month for a 1 BHK and can go up to Rs. 20,000 per month based on your choices.

• Horamavu

Located along the Outer Ring Road stretch that connects Marathahalli and the Old Madras Road region to Bengaluru International Airport and Tumkur Road among others, Horamavu happens to be the least chaotic locality to live in. Close to Manyata Tech Park, which is at a distance of about 5 km from here, Horamavu offers a great place to relax and enjoy. Rent around the area start from Rs. 7000 per month for 1 BHK and can go as high as Rs. 30,000 per month depending on a house of your choice. It is close to several leisure places like Kammanahalli, an area that happens to be the most attractive proposition around here.

• Kaggadasapura

If you’d looked around Kaggadasapura over a decade ago, you’d either have seen acres of empty barren lands or under-construction apartment projects. But now this area is a major hub for working professionals. It is strategically located close to Bagmane Tech Park, which happens to be one of the most beautiful workplaces in the city with its own lake. It is also close to key parts of the city like Indiranagar and Domlur. You can find houses for rent around here starting from Rs. 6500 per month. In case you’re looking to lease flatsor apartments instead of renting, you can also find several interesting options to choose from.

Overall, these 5 prime localities are teeming with budget-friendly houses that you can choose from to improve your experience of staying in Bangalore.

This is a blog post by Chandni Lal