Future of real estate - Mixed-use realty development

With scarcity of land, more and more developers in India are thinking of going vertical. Mixed-use realty development has been very popular internationally and that is where the focus of Indian developers is shifting.

Generally in a mixed-use development building the first three floors are kept for commercial use and the rest for residential. People don't want much noise or chaos where they live, keeping this thing in mind about five per cent of space is used for retail. 

In Mumbai, Phoenix Mills is into developing mixed use projects. In Lower Parel, Phoenix has a hotel on top of a mall and in Kurla there is a mall on lower floors and office on the top. While the mall will provide steady cashflows to the company, offices will repay the debt of the project.

Hiranandani Developers is another group which is developing mixed use projects in Panvel near Mumbai and in Chennai. They have already developed two such projects in the past which have residential complexes, offices and a hotel. 

Consultants say mixed use projects are becoming popular due to easy financial closure and use perspective. The popularity of such projects with the multi-national corporate occupants is very high as these projects have food courts, night clubs, multiplexes, coffee shops, etc. in the same vicinity. Traffic problems can also be taken care off with such buildings.

Large townships with offices, retail, housing and commercial projects is one fine example of mixed-use development. The risk for developers is even reduced in such projects as if one segment is not doing well, the developer can shift focus on another segment and once the whole township is developed the developers can get a good premium. While investors can expect higher return, end users get the convenience.

However, in India a major chunk of the population come under the low income group category. The people in this category are those who do not go to malls and rather do their day-to-day shopping from small shops near their residences in their colonies.

But, once FDI is allowed in multi-brand retail, mixed-use realty development will be the future of buildings in India.

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The Indian Real Estate Sector - An investment option for NRIs

NRIs who have professional/entrepreneurial ambitions and who intend to set up businesses back in their home land are investing in residential real estate specifically in large Indian cities to build a back-up base in their own country and this they are doing over the past few years.

After the 2008-2009 global financial crisis which didn't affect India much because of its conservative banking sector has stood as an example for the world and more than anything else it has gained confidence of NRIs to seriously think of owning homes in India. Familiarity and stability on both the personal and professional fronts are again some of the reasons which attract NRIs to purchase properties in India.

  

Things which are in favor of NRIs 

There is no restrictions which limits the NRIs to how many commercial or residential properties they can have in India. However, when a NRI decides to sell back the property  and take the money back to the country of residence, he has to just give sale proceeds of only two units.

NRIs can avail home loan facility from an Indian Institution approved by the NHB, and loan repayment can be done either by the rental income earned in India or by borrowing from close relatives residing in India. They can even mortgage properties in India. They can even rent out their residential property.

No one can exactly predict the fate of any currency, or the stability of any economy but the current trends suggest that more NRIs are investing in the Indian real estate. To check out different property deals visit our website www.snapghar.com.

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What the forthcoming budget should have in store for real estate firms?

The real estate sector is looking up to the forthcoming Budget with the Reserve Bank of India continues countering inflation which has affected the industry badly and wants tax boosts for low-budget housing, infrastructure spending and a streamlining of regulatory processes.

Last year the government allocated more than 48 percent of the total planned expenditure in the 2011-12 Budget for new projects out of which several failed to take off due to delays in approvals and decision making.

After an increase in the infrastructure spending the value of neglected land assets in suburban areas and other districts is also set to increase.

The government also needs to pay special attention to enhancing connectivity and implementing partnerships for infra projects.

In order to address the problem of acute shortage of houses in the country, Kamal Khetan, chairman and MD, Sunteck Realty, in an interview with Deccan Herald said  affordable housing should continue to be a focus area in Budget 2012. “Rather than restricting it to unit sizes, as in the past to 1,000 / 1,500 sq feet per housing unit, the government could, instead, have a maximum per unit value of say Rs 15 lakh for units near Tier I cities, Rs 10 lakh for Tier II cities etc,” he said.

For banks to reach the common man the housing loans should also be made priority lending.

The government should allow foreign direct investment in multi-brand retail in Tier 2 and Tier 3 cities as it will not only provide a good source of much needed investments in the retail sector but also help in increasing employment and curbing inflation.

The forthcoming Budget should also introduce appropriate reductions in tax rates as nearly 35 percent of a home’s sale value consists of taxes like excise, VAT, service tax and stamp duty among other things. Finally, the real estate sector, which is a major driver of economic growth and contributes nearly 5 percent to the country’s GDP, should get an industry status.


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Investment in Indian Real Estate via Snap Ghar

Investing in property is one of the best things to do in today's time. In India real estate business is at boom and investing in a business which is at boom is always profitable. But to find your dream house or the right property deal you have to catch hold of a good licensed property dealer who has information on the best places available for sale and helps you find the right price for the same. In addition, you even need to create an appropriate plan for your budget, requirements and location, where you wish to purchase your space. But, when you go to a property dealer there is always a fees, a brokerage that you have to pay to the property dealer for his services.

Snap Ghar revamps the whole concept of this middleman. The whole concept behind Snap Ghar is that by using the power of internet make like-minded people come together to express their interest on a common property. By doing so they use the old rule of thumb that there is power in numbers and get discounts on the same. As internet is a huge collection of information and there are online real estate companies available to get all that information at one place is an added benefit.

Snap Ghar doesn't charges anything i.e. no membership fees or brokerage and gives you assured gifts. We even give sound advice on which property you should buy according to your budget and preference of location and make sure you get the best deal. Property developers also get benefited as they don't have to pay anything to a dealer and are able to sell bulk inventory in one go.

To sum up if you are considering property as an investment option, visit www.snapghar.com as it offers the best deals on property over the internet and answers all your queries.

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Rise in High-Rises in Mumbai

Mumbai, the Mecca of real estate in India, is undergoing a massive construction boom. With hundreds of skyscrapers being built around the city the eternal search for clouds still goes on. The choice of whether to go vertical or horizontal always comes up before the property developer.

The preferred choice of developers these days is to go vertical than to go horizontal as by going vertical they get enough land space to set amenities and do landscaping. The more the greenery and number of amenities the easier it becomes for a developer to promote its project on this USP. The demand for open spaces by the people who have lived a major portion of their lives in apartments keeps on rising. Better view, better ventilation and better environment with less pollution are also some of the reasons why people prefer the high-rises.

Far away from the hustle-bustle going on the ground, living in a high rise amongst the company of clouds with peace and solitude is increasingly becoming a craze among city dwellers. Growing urbanisation and changing lifestyle preferences are also some of the main reasons for people showing interest in high-rise buildings. Amongst these people 50% are NRIs, mostly from West Asia. The price you have to pay to stay away from the ground commotion, pollution and start living in sunlight rich apartments is an additional Rs50 per sq. ft. for every floor rise usually.

Location, proximity to work and schools and availability of social infrastructure are the key factors that come into play for many locals while selecting a high-rise. Other amenities come as icing on the cake.

Visit www.snapghar.com to get exciting deals on a number of high-rises.

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