Where is the Indian real estate industry heading?

If one looks at the state of Indian real estate industry one would be a little startled. The reason is at one end there is a huge back log of unsold stock which is rising alarmingly and at the other end there is a shortage of housing. In cities where the unsold stocks are high are Mumbai, Bengaluru, Delhi and the NCR region and other places too. In these places high end properties are worth crores of rupees which is not affordable by the mid income group. The target market segment is probably waiting for the economic conditions to become more stable. With the RBI slashing the base lending rates the home loan interest rate has become less which should act as a trigger in increasing the affordability assessment quotient of the consumer. Government has even relaxed FEMA and NRI investment rules to foster the growth of foreign Direct Investment (FDI).

But the question still remains that is the Indian realty sector becoming stagnant. What makes someone to think this way? Well there are many reasons.

indian-real-estate

If one listens to the radio and the advertisements one would come across many developers who are offering bizarre gifts like television, Apple computers, iPhone and even there are buy one and get one free offers as well. This may seem a bit ridiculous that how did land or apartment purchase become similar to FMCG or clothing but that’s the stark reality.

Do these offers make you think that the companies and the developers have become generous all of a sudden? Certainly not! Then what is the real reason for flaunting such generous offers? The reason is that after the construction boom in 2006 and 2007 the recession struck and the dull period of the realty sector has started from then on. There was a lull in the last three or four years in the Indian realty sector and now the condition has become acute. After the budget and the government declaring a hike on the service tax, will even increase the cost or price of an apartment or property. This has been a reason for concern of the developers across the country. They feel this hike in service tax will be another reason to slow down the sales on top of the sluggish conditions of the market.

Top office bearers of the associations like Assocham and CREDAI remarks that now there is a situation which is ensuing that will force the developers to sell the properties with losses with unsold stock and the burden of loan interest surmounting day by day. What the public wants to know is, are these offers that we see due to the reason of the down turn of the market?

According to few of the critics, it has already become a buyer’s market in few of the cities of India. This may not be so much true in case of the end user driven market of Bengaluru where the job generation is among the highest in the country, but it is certainly true for Mumbai. The scene in Mumbai is that the developers are ready to give away a square feet of built up space at just Rs. 500 as against the price of 2014 which was at Rs. 1200. There are other continuous efforts to lure the buyers with gold coins, Apple iPhones, televisions and motorbikes.

Not going into the debate whether such marketing techniques will work or not but the fact is that the demand for high end residential house units is at a lower trough. The situation according to few critics is going bad and with the hike in the service tax effective from June 2015, it is sure to go even worse. But we need to wait and watch to see what happens in reality.

As Bengaluru is fast growing silicon city people are seeing for more investments in property and apartments of Dreamz Infra provides flats at affordable prices in all primary locations.

The areas the richie-rich of Bengaluru prefer

Bengaluru happens to be the city that pays the best to the salaried people on an average compared to other cities as per the recent news and surveys. So when one grows rich one would certainly look for a comfortable and better lifestyle whether it is one’s own house or a tenanted one. This is obvious as lifestyle is directly proportional to one’s bank balance. The market watchers opine that owing to the demand of the high income sector many renowned developers have started redefining the concept of luxury living and have developed such building in serene surroundings. This is truer for the class of people opting for such luxurious living as they look for connectivity but not necessarily a busy street with a Metro connectivity with the autos and busses honking too often. So the bottom line is due to social infrastructure few localities have become the city’s hub for the rich and the famous.

About Bengaluru Real Estate Growth 1

The data and various reports on the preference of the rich suggest that areas like Koramangala, Indiranagar, Fraser Town, Rajaji Nagar, Malleshwaram and Jayanagar are mostly preferred. These are some of the oldest places of Bengaluru where the capital values of land are high and are in the range of Rs. 6, 000 to Rs. 11, 000 per square feet. On the other hand Sarjapura Road, Whitefield and Electronic City are a few upcoming localities where the rich and the famous have started staying in complexes specially built to be sold in higher ranges. Here the apartments vary from a price range of Rs. 3, 800 to Rs. 6, 000 per square feet. It may even be higher as these apartments are rather built for individual residence than for investment.

In commenting about the luxury apartments the market watchers opine that places which are urban but still not within the busy areas of the city are in demand and meet the outlook of the echelons. Thus this feature may not be available in older localities although it is a fact that uber- luxury residents will always prefer a bit of aloofness. In commenting about social infrastructure and commerce they remarked that it is a ubiquitous phenomenon and cited examples of places like Jayanagar and Indiranagar where it is well planned and has considerable amount of greeneries and parks around. Apart from that these places have a look of upmarket regions but the commerce increased in the area owing to the density of people having more purchasing power. Thus the pries of articles in the shops and malls are not very affordable and target the affluent classes.

About Bengaluru Real Estate Growth 2

The market and the trend watchers opine that Indiranagar is relatively new compared to Malleshwaram or Jayanagar where the traditionally rich people have started staying with many homes of VIPs. Koramangala is much like Indiranagar and is noted to have posh malls emanating an aura of a culture of consumerism. Leisure in these areas is also defined according to the infrastructural geographies of the place and leisure and recreation hangouts are also blended according to the rich lifestyle of the place. The realtors and brokers say that rented apartments here are priced anywhere around Rs. 30, 000 to Rs. 50, 000 per month. People who want to stay in shared accommodations also seek for an uncompromising social life. The reason, explains a broker is quite simple. After a whole day’s work for about 10 to 12 hours most of them look for places with nearby infrastructure of leading a good social life and a night life and do not want to travel far for it.

Thus living on a high rental can be considered as one kind of luxury but on the other hand many dream of owning a house or apartment in these areas. Thus we see all kinds of professionals be it a writer or an IT professional or a lawyer, have all flogged into such areas. As the city increases the income levels of the individuals there are many who are choosing such lifestyles and areas. This is making the developers to build apartments for the luxury segment which is flourishing at a never before rate.

Brief Overview of the Housing scenario of Bengaluru

Overview of the Housing Scenario of Bengaluru

Bengaluru is the 23rd most preferred destination out of the 25 Asia Pacific cities as rated by the NRIs of the UAE and estimated by an international exhibition company. The other NRIs of other continents also treat Bengaluru as a preferred destination. For the growth of IT and ITeS sector Bengaluru has eked out a place in the global map and is the outsourcing destination of the globe. The government initiatives and efforts were Parallely present with all types of reforms and infrastructure growth to accommodate this growth surge. The result is that Bengaluru has a multi-cultural population which made it a cosmopolitan with few areas with more concentration of IT and ITeS sector companies and multinationals. Out of these areas the most promising are the micro-markets of Sarjapur Road, Outer Ring Road (ORR), Whitefield, Electronic City and few parts of North Bengaluru.

Bengaluru has a dispersion of three types of housing namely Low Income Group, Middle Income Group and the High Income Group. There is quite high demand of High Income Group housing owing to the fact that Bengaluru is the hub of the High Net worth Individuals. According to a recent estimate Bengaluru has more than 1, 000 individuals who are dollar millionaires. Apart from this Bengaluru has a striking population of expatriates who work and reside in the city too. These are well cultured and well-travelled population with money and an improved taste.  Experts and market watchers have noted high end housing demand in the Central Business Districts (CBD) of the city, the Secondary Business Districts (SBD), North Bengaluru, Whitefield and the micro-markets of Outer Ring Road. The realtors expect the demand to become steady from these submarkets.

Overview of the Housing Scenario of Bengaluru

Bengaluru also shows lot of demand for Villa projects and row houses. These micro-markets like Whitefield, Electronic City, Sarjapur and others also have a noted demand of Villas and Row houses. The realtors observe that high end house buyers are too sensitive about the location, amenities and facilities and the infrastructure around.

MIG Housing: The Middle Income group Housing of Bengaluru is being mainly driven by the IT and the ITeS industry. These house buyers are mainly concerned about the social and physical infrastructure, educational and medical facilities and proximity to workplaces. These areas have overgrown in these facilities and amenities due to which we see the micro-markets of Whitefield, ORR, Electronic City and few places of North Bengaluru being flooded with middle income housing.

Affordable Housing: This segment being extremely price sensitive, affordable housing are being constructed in the suburbs as these areas offer huge land parcels and the acquisition cost is also lower. Areas as Mysore Road, Hosur Road, Kanakapura Road and few more areas have witnessed lot of demand for the low priced and affordable housing. There has been a noted  increment in the concept of affordable housing which is being promoted by few developers like Dreamz Infra, Concorde Group, Shriram properties, Nitesh Estates, Ozone Group and Golden Gate Properties. These affordable flats for sale in Bengaluru have been compromising on civic amenities and have high demand owing to the price levels.

With many local developers there are big players also including Tata Housing, Godgrej Properties, Usha Breco reality, Jalandhar Constructions, Brigade group and many other companies who have joined the fray.

The Demand Scenario: Bengaluru market saw an absorption of 6, 519 units in the second quarter of 2013 as against the first quarter of 2013. Even the unsold stock also was 50, 184 in the second quarter of 2013 as compared to 46, 823 in the first quarter of 2013. The central business districts and the secondary Business Districts witnessed low supply and high demand of residential sector housing.

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If you are going for an apartment with amenities, what should you check for as must haves and why?

Amenities in Apartments

The era of apartment dwelling has been ushered in by the tier I and II cities in India. The four metropolitan cities have largely been the forerunners in this concept to be in vogue from early 1980s and following the trend the other tier I cities followed suit. The prices of land in cities were escalating each day and hence the houses were noticed to grow vertically.

The concept of better living in these apartments followed where luxurious spaces were provided with better comforts and extra amenities being added which was common to all occupants. With the increasing demand for apartments and housing, many of the amenities and features that attracted the buyers were curtailed and were literally replaced by concrete jungles. Bengaluru is an example of such a city where the ecological balance has been compromised for the housing of the migrating population.

Laxmi Iyer stays in an apartment of 1000 square feet in R.T Nagar with basic amenities and the maintenance charge is also just the electricity and water bills and she bought the flat at Rs. 45 lakhs. Ram Naik on the other hand is an employee of an IT company in the middle ranks and he has two children and lives with his spouse. He has decided to buy an apartment in Bangalore but is in a predicament whether to buy a flat with basic amenities or to go for an apartment with all added amenities with an extra cost.

This is often in the minds of the buyers thinking which one is more convenient. The users’ experiences say that this decision is entirely upon the occupant and their style of living. But in case of apartments with added facilities one can definitely be at peace with all amenities and services being present under one roof. With this, the question that one encounters is that many developers offer numerous amenities according to probably the demand and the cost effectiveness to make their products attractive. As a buyer or an occupant what are the amenities that one should look for while going for an apartment with extra amenities at an extra cost. Below, we evaluate these and list the ten must have amenities that should be provided for a pleasant, higher and hassle free lifestyle.

Amenities in Apartments

Lung Space:
Make sure that the vertical dwelling unit has more lung space in comparison to villas, row houses or independent houses with no common walls and windows and lot of ventilation and light and free interplay of air and breeze. One must make sure that the three sides are open.

Parking Space:
The apartment should have facility for covered parking and in case if one has more than one car there should be facility for additional parking and if so what is the price for it. Ensuring this will keep the occupant free of the worries of parking in an unprotected open space.

Power Back up:
Power situation in most of the cities are not so good with frequent power cuts. So a power back up system is required for uninterrupted power supply. One must also find out that the power back up system is available for the elevator and the common spaces.

Security Arrangements:
The situation in the city changes with law and order circumstances of an area being ever changing. It’s always better to have a 24 hour security system in your house to avert risk.

Drinking water:
The supply of drinking water in the apartment itself has to be ensured and the residents have to be consulted regarding the situation of drinking water in the building. There are many instances where the builder vanished and the dweller was left in the lurch who ended up fetching drinking water from the ground floor.

Power Transformer:
In few cities the electricity board insists that one apartment complex should have an independent transformer as a backup and not be dependent on the electricity board’s transformer on the street corner. Whether there are such restrictions in the city or not one should insist on the provision of the transformer of the apartment ensuring uninterrupted power supply.

Balconies:
Balconies are something that provides a feel of leisure and relaxation to an apartment. Larger balconies always makes a home more cozy giving the option to the dwellers to sit and chat together and relax if needed, compared to tiny cantilevers.

Work out space for the elderly:
Work place stress and many other factors have compelled many middle aged and elderly to work out and hence the requirement of space for many is a necessity nowadays. This has necessitated the trend of providing work out space for the middle aged and elderly. Ensure that it is there.

Kid’s area for playing:
It’s not advisable for children to stay in closed areas for long. So children’s play area helps not only the children but the occupants are also safe from the pranks of the children and make sure that is far away from the space for the elderly.

Rights to access the terrace:
The terrace is needed for all household for different needs like social gatherings, relaxation in the breeze or for social functions. Few builders deny the right to the terrace by adding the terrace to few apartments at the top of the building naming it “pent house”.

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Many projects on the way to Whitefield and will be complete by 2016

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Well, if you are planning to buy a ready-to-move-in apartment in the near future, you can look for Whitefield. The various data from different sources suggest that there are at least 40 projects in and around Whitefield which will be delivered in the coming two to three years. At present these projects are undergoing construction and are in different stages with the majority of them to be delivered in the next two to three years or by the end of 2016.

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Let’s look at the offers:
The starting price of the projects here is Rs. 24 lakhs and ranges up to Rs. 2.25 crores and even above which are 1 to 4 BHK apartments. The sizes range from 1 BHK being 450 sq. ft. to 750 sq. ft. and the 4 BHKs ranges from 2000 sq. ft. to 4500 sq. ft. The apartments come with amenities like club-house, swimming pools, parking spaces, private terrace and gardens, gymnasium, elevators, visitor’s parking space, banquet hall and internet/ Wi-Fi connectivity. The apartments have facilities like rain water harvesting and other water supply arrangements are also there.

Locational advantage of Whitefield:
Presence of IT corridors, improved civic and social infrastructure, upcoming metro connectivity, linkages to major commercial centres and along with a growing popularity of healthcare services available in the area and patients coming from all over India, Whitefield has all the parameters for your investment to be worthy. With regular and frequent BMTC busses plying in the area connecting to all parts of the city, Whitefield is connected to ORR (Outer Ring Road). With this communication facility being one of the key factors for Whitefield’s development, the commercialization of the place is also reaching saturation. Owing to presence of large IT companies and IT parks, the demand for rents in the area is perennial.

All these factors have resulted in price increase properties of about 20 to 25 percent in the last couple of years in Whitefield. Thus from the investment point of view as well, Whitefield has a comparative advantage as all the positive micro-market factors are present here with a chance of escalating earnings from rent. With the rapid development of the place and the price escalation of real estate property noted in the area, the property will undoubtedly yield huge resale value as well.

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Dreamz Infra Launched New Projects across Bangalore

Dreamz Infra India is one of the top Real Estate Residential builders in Bangalore. Dreamz Infra is providing Flats / Apartments 50% lesser than the market price. On the festival of Diwali Dreamz Infra is providing “Half Price Sale” in Bangalore. You can save 8 to 30 Lacs rupees on your Dream Home. Recently Dreamz Infra launched some of the new projects which are mentioned below:

Dreamz Infra Half Price Sale in Bangalore
Dreamz Sarvasva at Kanakapura Road
Features: Luxury 3 & 4 BHK
Size: 1750 Square Feet to 1950 Square Feet
Call us: 7353063111

Dreamz Savinay at Chandapura Road
Features: Luxury 1 & 2 BHK
Size: 450 Square Feet to 650 Square Feet
Call Us: 7353626111

Dreamz Samavesha at Kanakapura Road
Features: Luxury 2 & 3 BHK
Size: 850 Square Feet to 1100 Square Feet
Call Us: 7353614111

Dreamz Samarpit at Hebbal
Features: 1, 2 & 3 BHK
Size: 550 Square Feet to 1250 Square Feet
Call Us: 7353422111

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The Sunshine in the Real Estate of Northern Bangalore

The real estate has been flourishing ever since the Bangalore International Airport was set up in the year 2008. During that time the growth of the North real estate market in Bangalore was uprising and growing at a higher percentage.

The area northern Bangalore has been on a growth step up and advancements have been happening from residential sector to commercial sector and there has also been major infrastructural growth. To mark the authenticity of the growth the well-connected Hebbal Flyover, the Outer Ring Road and also the new Expressway over the Bellary Road has caught the attention of major developers along with a number of buyers and many potential investors.

Real Estate of North Bangalore

As per the recent reports from the realty gurus there has been a massive increase in the last two years. In case of Hebbal the report clearly shows that there has been an increase in the average cost of property which is nearly 70 percent in terms of growth in the last two years. During the year 2012 the property prices were nearly between Rs. 2,900 to Rs. 3,800 per sq. ft. today the property prices in Bangalore are approximately Rs. 4,900 to Rs. 6,700 per sq. ft. The major reason for the growth of this sector of Bangalore is its promise of a better connectivity connecting across the Outer Ring Road and Bellary Road on NH-7. This area is also an adjoining point for the BMTC buses and also the buses on the Airport route.

With a lot of development in the Northern Bangalore in terms of connectivity as well as better infrastructure and sever commercial zones being set up, there were progress happening in almost all verticals. The International Airport is just 45 minutes away and many major IT companies have set up their offices in the vicinity of this area. The Manyata Tech Park and also the Kirloskar Tech Park are some of the best business parks with the top class infrastructure. With these many major Technology and business pars there has been an increasing demand for housing too in this area and there has indeed been an impactful growth in the value of the properties available.
As soon as the Bangalore metros Phase II come into action there will be a better connectivity which will be extended to the Gottigere to Nagavara and up to Hebbal and Yelahanaka.

Hebbal Bangalore

The northern part of Bangalore is set to have many real estate ventures like under the residential segments offering affordable apartments and multi-story buildings. There is also a well-established social infrastructure comprising of reputed schools, colleges, banks and other shopping areas which are well- designed and very strategically placed.

Area like Thanisandra and RT Nagar also recorded a noticeable price appreciation along with Hebbal getting the highest appreciated prices. Thanisandra has seen nearly 28 percent of price appreciation whereas RT Nagar has seen nearly 12 percent price appreciation. This massive increase has completely changed the prices which from Rs. 2800- Rs. 3,200 per sq. ft. to Rs. 3,000 – Rs. 3,800 per sq. ft. in Thanisandra and Rs. 3,700 to Rs. 4,700 per sq. ft. to Rs. 4,100- Rs. 5,300 per sq. ft. in RT Nagar respectively.

Therefore it is an apparently clear that the prime localities in the Northern Bangalore have rendered a fine return in the times gone by. Along with the growth of the IT and the BPO sectors the industry has offered better plans of infrastructure along with the better real estate market emotion. This has also plans to offer a fixed remarkable and reasonably affordable growth to the major home buyers of the future.