NRI realty investments drop by over 50%

The NRI season is now at its fag end. Despite undertaking tours to the US, the UK and Middle East and doling out freebies and discounts, realtors have been unable to catch the attention of this cash-rich community.

The result: NRI investments in India-based properties dropped by over 50% this season, with the four metro cities and “NRI-heavy” mirco markets in states like Gujarat and Kerala being among the worst hit.

“Compared to last year, the drop in NRI interest in India-based properties has been almost 50% in all sectors. The metros showed a sharp drop in demand, largely owing to the steep prices”, says Sanjay Dutt, CEO – business, Jones Lang LaSalle Meghraj (JLLM), a global real estate consultancy firm. “Very few luxury homes have been sold as compared to last year”, he adds.

At a time when the domestic demand in micro-markets in Tier-I, II and III cities began to slump in the third quarter of this financial year, the developers were hopeful that the demand from the NRIs will pep up the sentiments in the realty markets.

However, the global slowdown and the resulting slump froze the bullish sentiments among NRIs. “Though a far-from-spectacular number of transactions have indeed taken place this season, generalised job insecurity and a desire to conserve available cash among IT employees abroad has curbed investment demand for high-end properties, Mr Dutt said adding that the response was “significantly muted” from the NRI community this season.

The sharp corrections seen in some larger cities has also led to an “acute wait-and-watch attitude among NRIs who – just like everyone else – are now very price sensitive”, he explained.

Source:Economics Times

Properties For Sale in India

A fundamental real estate investment mantra in India is that emerging localities are preferable to established and often saturated ones. Expressing their views on real estate markets in the year ahead, property consultants say that established areas eventually reach a peak in terms of appreciation potential, after which the growth rate either slows down or stagnates, moreover, there is little scope for new market drivers such as malls to find a place in saturated localities-where, property prices remain high.

According to property consultants Jones Lang LaSalle, this is not the best of scenarios from an investment point of view, since optimal investment requires low entry levels and appreciable growth within a realistic time-frame. Therefore, as one or the other destination reaches its peak potential on all these counts, new ones come into the limelight. Here is an overview on some emerging Properties for sale in India:

. Chandigarh: Though there has been a lot of speculation on Punjab’s real estate market, Chandigarh is among the emerging cities that are seeing very encouraging real estate trends. It is India’s first planned city, and it conforms perfectly to the key parameters by which we judge a city’s growth – property market, people, physical infrastructure, social infrastructure, and business environment. Areas where properties are available for sale include Panchkula (Rs. 2500-3000/sq.ft.), Mohali (Rs. 1500-2500/sq.ft, Dera Bassi (Rs. 1300-2000/sq.ft.) and Zirakpur (Rs. 2700-3200/sq.ft.).

. Indore: Indore’s Real Estate star is fundamentally on the rise, and offers good investment opportunities in project with low entry cost that are located in an area with good appreciation potential. Areas where properties are available for sale : Vijay Nagar (Rs. 3000 – 10000/sq.ft.), Bypass, A B Road (Rs. 3000 – 10000/sq.ft.), Rau (Rs. 600 – 1200/sq.ft.), Gulmohar Colony (Rs. 3500 – 6500/sq.ft.), Green Park Colony (Rs. 800 – 3500/sq.ft.).

. Nashik: Nashik is displaying an increasingly buoyant industrial scenario, with considerable growth expected in the IT/ITES industry. Overall infrastructure and connectivity Mumbai and other regional towns is improving rapidly, lending increased credibility to Nashik’s real estate market. It is a vertex of the Pune-Mumbai-Nashik Urban Golden Triangle.

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Apartments in Delhi – A Good Investment Option

Delhi is the national capital and also one of the best destinations for investors to buy property. Delhi having an advantage of good connectivity with most of the cities in India houses the top most corporate houses in the world. The main upswing of construction activities is going on in New Delhi, with number of residential as well commercial spaces being developed by prominent real estate developers.

DDA has drawn up several plans for next two years including mega housing project in Dwarka, Bio-diversity Park housing over 5,000 species of flora and fauna along the Yamuna banks, a spiritual garden forming a link between South Delhi’s three major temples in Kalkaji.

Ansal Properties is all set to carve a substantial niche for itself in Delhi with its real estate projects: Ansals Sushant City and Valley View Estate. Being the IT hub of India, Delhi proves to be the center for real estate transactions in the country.

With the increasing influx of students and tourists in the city, Delhi Real Estate Developers have started coming up with the idea of service apartments a concept borrowed from the West. The service apartments in Delhi are fully furnished and provide a nice staying experience in Delhi. They are are becoming very popular amongst these international tourists and students as they are cheaper than the hotels and give them a nice, secured homely experience.

With unavailability of land in rest of Delhi, Dwarka has become apparent choice for real estate developers in Delhi for constructing apartments. Investors are readily interested in buying apartments in Delhi as the rental values have also sky rocketed in the past few months. Moreover, with growing crime rates people are very all these apartments.

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Gurgaon Real Estate – Slump Continues

Gurgaon properties have seen a vital growth in the city’s development, thanks to Gurgaon real estate builders. The DLF Group is one of the foremost real estate development companies of India that have majorly contributed in the development of Gurgaon. The company is widely known for the development of both commercial and residential projects in Gurgaon.

However, the Gurgaon real estate developers are also facing a certain challenge like their counterparts in other parts of the country. Those economic drivers that form the basic spinal chord for running the property business, are facing a downward trend. This is the major reason currently that has further resulted in pushing down the demands for buying of property.

The current trends disclose that there is apparently a clear drop in the interest of property purchase by the end users. There seems to be no sign of recovery at least for the next one year, claims a local broker based out of Gurgaon. This is the reason why real estate in Gurgaon is undergoing a lull.

According to a market survey, more than one-third of the residential units in the newly constructed projects in Gurgaon are lying vacant. However, the Gurgaon Real Estate Developers do not disclose this fact to dissuade the buyers.

But the positive side is that all those who are really interested in buying property in Gurgaon can go ahead and negotiate with the real estate agents at Gurgaon.A lot will depend on your negotiating skills is so go ahead and take a chance. Gurgaon properties are waiting of you.

Drop in Mumbai Suburb Prices – Hopes For Buyers

Owing to nil supply the property prices in the core areas of Mumbai are buoyant as ever. However, the suburban areas are witnessing a drop in prices by 10-20 percent. As the supply side is in excess the values of property are much less in the suburbs as compared to the main city.

According to market research reports, while in Borivali, prices are likely to come down by 10 per cent, the drop would be in the range of 15-20 per cent in Thane and Navi Mumbai. Industry experts feel that it would take a long time for the real estate industry to recover from the current slump.

As per a recent survey, Mumbai is the 10th most expensive city in the world. Having said so to buy an apartment in Mumbai remains a distant dream for a larger section of population. The profile of the prospective buyers mainly consists of youngsters who have come to make a career in Mumbai and spend considerable years of their life in rented apartments and homes. The rented options cost a bomb as well. So, owing a house in Mumbai is a task in its self.

As it is the property are so high in Mumbai and on top of that the rising interest rates has hit the home sales hard. Since long the transactions have been very low all across Mumbai. Mumbai real estate builder, Neelkanth Group, has seen its sales dropping by over a third in the same period.

But the news of a drop in residential real estate prices has brought array of hope for many who are in search of a home in the city.

Mumbai Real Estate Developers, who have their projects in the city suburbs, are now hoping that their projects will soon find some takers. They are optimistic of a good business ahead. Real estate in Mumbai has always been a trendsetter in the property market of the country. Therefore, considering prices declining in its suburbs the property agents and developers are hoping the same trend in other metros as well.

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Chennai Real Estate – Victim of Market Slump

Real Estate in Chennai is on the verge of a crashing market, believes industry experts. Chennai property prices have seen an escalation of almost 200 per cent in the last few years. But with the global slump in the real estate industry Chennai real estate has also slowed down.

Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, “The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize.”

Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.

Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.

The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.

IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.

Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.