2015: The Year of the Buyer

2015: The Year of the Buyer

Real Estate 20152014 was quite the interesting year for Indian real estate, much like several other sectors. The change in Government brought in the hope of a steady hand at the Centre and this positivity percolated down the ranks to various commercial establishments. New reforms brought in the promise of a better future and the positive sentiment spread among Indian and international investors alike. With all of this characterising the end of the year, 2015 has a great deal for the real estate industry and potential home buyer to look forward to.

A Mid-Range Buyer’s Market All the Way

With the positivity of 2014 spilling over, 2015 will see the tides turning and the sector turning into a buyer’s market. This will be triggered by the positive market sentiment and the expected cuts in interest rates this year. Other things you may expect to see are:

  • Many launches in the mid-end and low-end segments at introductory prices, which will have many takers.
  • Homes with basic, yet quality amenities at a value-based price point being in focus all through 2015.
    Innovation will be the name of the game this year, with builders working on innovative features to gain traction with potential customers, since price escalation is inevitable.
  • While the demand for premium housing will still be there, it may not see any increase.
  • Social media and online marketing will emerge as a strong means of wooing potential customers, thus helping brands reach out to a wide audience.

Suresh Hari, Secretary, CREDAI Bengaluru, speaks on buyer expectations and explains that there is a need for an attractively priced home, considering that there is huge gap between demand and supply. “I see the Smart City concept taking shape, thereby providing newer avenues of investment. I also feel that there is a need for a more user-friendly interface online to help deal with property related issues.”

A Decrease in Interest Rates a Possibility

Ganesh Vasudevan, CEO IndiaProperty.com, says, The drastic increase in the number of enquiries over the past two quarters indicates positive market sentiments amongst buyers.  The increase in the home loan exemption in 2014 was just the first step of the NaMo government towards its promise of providing houses to all by 2022. In the coming year, home buyers may expect more such buyer-centric policies. Project pricing will be the most critical aspect to attract home buyers this coming year.”

Suresh Hari reiterates this point saying that to ensure that the buyer is benefitted, there is need for home loan interest rates to be brought down to 8% or lower.

There is an expectation of tax exemption limits being increased under Section 80C of the Income Tax Act. This in turn will encourage savings and provide an impetus to buying new homes. The possible tax holidays to the making of affordable homes may result in monetary benefits that may be passed down to the end-user.

All this and more is what a potential home buyer may look forward to in 2015. Key areas in Bangalore that are likely to see development:

  • South Bangalore – thanks to better connect with Electronic City through the NICE Road
  • The ORR-Marathahalli-Whitefield area and beyond will be in demand
  • Kengeri
  • Varthur
  • Begur
  • Devanahalli are some of the areas to watch out for.

It would be a good idea to wait a while to see how the implementation of proposed reforms by the government plays out before making a decision to invest. Market sentiments are good and there is no reason to believe that this will not be a good year for realty, despite burgeoning prices of construction materials.

 

Takeaways

  • 2015 will be the year of mid-range housing projects with innovative features.
  • Financial reforms will come into picture, making it a buyer’s market.
  • Online marketing and interactivity will characteristic real estate transactions.
  • Key sectors in South and East Bangalore will be in demand.
How to Invest in Real Estate like a Pro?

How to Invest in Real Estate like a Pro?

Investing in Real Estate

Investing in Real Estate

 

Dearest Blog readers, this post follows our webinar conducted this week on ‘How to Invest in Real Estate like a Pro?’

Mr. Feroze Khan, COO, Vakil Housing and Mr. Ramesh Kumar, DGM, Sales & Marketing, Vakil Housing who have a combined experience of over 3 decades in real estate have an intimate knowledge of the field. In our webinar the two gentlemen discussed the 7 cardinal rules of investing and demystified the process of generating profits from Real Estate investments.  Here’s a summary of what we discussed.

Why investing in real estate is a good plan?

Many of us are wary of investing in real estate; the obvious reason is that a huge chunk of money gets blocked. Real estate is not an idle investment; it is rather savings with potential for great returns. A few reasons why real estate investments should be considered:

Go on to read through the 7 cardinal aspects to invest like a Pro. (more…)

Boom time ahead, Bangalore property prices all set to soar !

Boom time ahead, Bangalore property prices all set to soar !

Rise in property prices

Rise in property prices

 

Has the headline made you sit up and take notice?

Well it is true; Bangalore being one of the fastest growing real estate markets will soon see a significant rise in prices.

But what is it that is triggering the property price rise? and why should you hurry ?

1. Revised guidance values

As you know, that the guidance values of properties were last revised in 2011 across Bangalore and is set to be revised again in 2013.

Guidance values are mainly guidelines for the valuation of apartments and gated communities and they help in the revenue collection by the Central Valuation Committee.

This revision will increase your property price by a minimum of 10%.

2. Popular work-destination for the yuppies

Our Bangalore has not only shaped up as the IT capital of India but has also become the favoured destination of investors with both domestic and international companies setting up office here.

(more…)

Buying a Home? Obey These 4 Essential Laws to Avoid Regret Later

Buying a Home? Obey These 4 Essential Laws to Avoid Regret Later

What you need to do to avoid regret when buying a home.

What you need to do to avoid regret when buying a home.

We’ve been selling property in Bangalore for more than 15 years, and it surprises me how some of the brightest people make the most basic mistakes.

For example, not long ago I ran into someone who was the CEO of large software company in Bangalore.  Clearly he was someone who had done well for himself.

While talking to him, he shared with me details of a Property investment he made in a gated community near Electronic City.  I was astonished he paid a price much more than the market rate.

When I inquired further, this is what he said, “I’m too busy and I trust my agent to do all the negotiations.”  Clearly this agent took advantage of him.

If he had known about and obeyed the Essentials Laws l talk about below, he would’ve saved several Lakhs of Rupees.

(more…)

5 ways to make NRI property searches easy without visiting India

5 ways to make NRI property searches easy without visiting India

NRI Property Search

NRI Property Search

Chances are that you are reading this article because you are an NRI or PIO looking to invest in property in India.

Well congratulations on your great decision, because at this juncture India is a great place to invest in.  Why is that?

(more…)