Festive season offers

If we will look the business of real estate market at the time of festive season, so we will find that developers and the consultants are on the same side because they are accepting that it will continues to go through a slow time. There are many real estate developers in country which have strong financial support and they tend to challenge or complete the convincing progress of real estate market with their under-construction projects. Unfortunately fact this has been overly hyped by the media and real estate developers that they have strong financial background and they are able to complete their projects on time. But still there is drop in the overall confidence of end buyers because they are worried that if they will commit their money into properties which will not be delivered on time, so it could be problem for them.

Price Correction in Projects:

In last one year, the prices of property in Mumbai has been increased by 3.7 per cent, in Chennai its increased by 15 per cent, but in Delhi or NCR no change recorded in the price of property. All this rise represents the more or less stable scenario and it is expected that it will continue for another 2 or 3 quarters as there are many fence-sitting buyers, who are waiting for the time when real estate prices get correct. But according to real estate experts price correction will be location specific as well as developer and will happen only if there will be nothing to attract the buyers. There are few cities where demand is still sufficient and prices are more or less affordable and in those cities there will be no price correction. Apart from that the regions where people looking for more affordable property certainly price correction will happen in those areas. However; there are much activity to make the real estate market more affordable because developers are actively re-configuring their projects as per market conditions in process to save the cost and pass the benefit to buyers. Much number of real estate projects are about to launch and they all have been at lower rates than those of earlier projects launched in the same locations in such category projects.

Economical Scenario:

In present, economy has not shown any type of perk for which real estate developers are waiting. However; market has definitely improved in comparison of last year. But market is still improving and recently, RBI as cut the interest rates to help the sentiment of buyers and it is expected that it will be factor to drive more sales in real estate market. With the cut in interest rate, the RBI has sent the signal to the real estate market that inflation is under control and buyers and developers can be more confident about economic growth. However; these kinds of signals are positive for buyers and developers as well. If you will show the actual pertinence on property purchase, so it could draw big impact on the savings because impact may not be very significant, in expensive regions such as; MMR, NCR, Delhi and more. If property prices will be expensive in any case, then marginal reduction in the cost of borrowing will not make any big impact. However; the reduction in interest rates will draw a bigger impact on the buying behavior in less expensive markets such as; peripheral locations of tier I and tier II cities.

NRI Investment:

If will take a step towards the domestic real estate consumption and analyze the demand and supply ratio in metro cities so you will understand that outlook looks very upbeat. In present, there are many non-resident Indians (NRIs) who are extremely active while investing in Indian real estate market. In India, NRIs are among top five investor communities who are investing in countries property sector. Apart from that there is natural affinity to India that NRI with high intrinsic value prefer to buy property in India than buying property anywhere else in world. However; sometimes due to weaker rupee value NRIs prefer to invest in India.

This festive season it is expected that buyers will see the mixed bag, but still question remains same, is it a good time to buy? Definitely yes, for end buyers because they have never been more spoiled for choice with bargaining power and lower interest rates. There are many real estate developers who are offering hard discounts registration charges and waive on stamp duty, VAT service tax and on other services such as; floor rise premium, free parking space and more. This festive season is an ideal time to make the best deal of your life and turned your dream home into a reality.

Mumbai real estate

Swiss chemical giant Clarian on Wednesday sold its 87 acre land parcel at Kolshet in Thane district to the Lodha Group for Rs 1,154 crore. The plot has a development potential of nearly 6 million square feet. Earlier, Oberoi Realty and Tata Housing also went land shopping in Mumbai for development projects.

Niranjan Hiranandani, Managing Director, Hiranandani Group has observed resurgence in real estate demand as a lot of builders have been looking for land parcels in the last 10-15 days. A part of the revival in this demand can be ascribed to expectations of a stable government at the Centre.

Executive MD Cushman & Wakefield (South Asia), Sanjay Dot notes that real estate prices have bottomed out in Mumbai. He says Lodha’s recent big land deal signals a lot of on ground activities. When asked about the pockets in Mumbai that have the highest growth potential in terms of rate appreciation, this is what he had to say.

“If you talk about property within the Municipal limits of Mumbai, Sewri, Wadala, Goregaon (East) and certain pockets of Chembur. Further, there is a big delta in Bhandup, Kanjur Marg, LBS Marg and in terms of valuation this pocket seems very attractive.

If you go corridor by corridor, we have seen enough upside between Vasai-Virar belts and now it seems to be between Kalyan and Dombivli on the central corridor beyond Thane city towards Bhiwandi where there is lot of traction and appreciation. In the eastern corridor, it is the pockets between Kalamboli & Panvel.

So, despite the present dismal sentiment in the realty sector, we would see these pockets appreciate the most in the near future”.

gold vs property vs shares

Recently, in an interview with CNBC-TV18, Manishi Raychaudhuri of BNP Paribas stated that recent weakness in the prices of property and gold can be the main reason why domestic investors are flocking towards the stock market and it could be bounty for equity investors in the long term.

In present, it’s difficult to make any prediction because market is still uncertain. These days Indian public sector banks like Bank of Baroda and other banks are recording little small increase in non-performing loans (NPLs). Now in India market seems to be volatile as China and government is expecting to act as the backstop for their equities. According to experts, for short term India will continue to outperform because these days investors are appreciating as still it is one of the best markets with a good options and choice of stocks. As an investor we all like to invest in private sector banks because they are able to raise their capital and asset quality, which is very much alive. However; retail clients love to deal exclusively with institutional clients, but if you will analyze the performance of gold and property, so you will understand that they are used to occupy the lion’s share in the asset allocation when it comes to middle class. It means in the developing country like India most of the people are investing their more than half of the saving in real estate and gold. Apart from that now people also prefer to invest in the alternative asset classes and it seems to be pretty relative attractiveness of equities and unattractiveness of the alternative asset classes.

The saving rate of India is 30 to 40 per cent and it is a USD 2 trillion economies out of half comes from financial assets which is about USD 350 billion and if 10 per cent will go to the equities, so it will become the 30 to 40 billion per year. And it will be larger than the FII inflow in country, which India has received ever. These days financial experts are targeting a Sensex on 30,300 by the end of this calendar year and it will approximately 8 to 10 per cent from the present level. However; the appreciation of US dollar would obviously be another tailwind for this sector. There are few commodities such as; oil and gas or energy, and they all are refining the margins. With the performance of NIFTY at last Friday its clear that it was surprising as the entire rise are for short volume as well as momentum support. Nifty is closing in decisive manner and for August month we can expect certainly positive response.

Ready apartments in Thane

Thane Ghodbunder Road residential area comes as welcome news for the flat buyers who feel that realty in Mumbai is overly priced.

In near future, Ghodbunder Road is going to rival Andheri, Powai and Goregaon as far as the real estate is concerned given that Wadala-Ghodbunder road metro connectivity is going to be stretched all the way.

The area is going to witness project deliveries of more than 40 per cent projects active in the area. There are 65 active projects in the locality out of which over 20 will be giving possession in the next by the end of the year. “Ready stock is pushing up the demand in Ghodbunder Road. This stock offers properties in varied budget ranges of Rs 40 lakh to Rs 1 crore,” says Anand Patil, proprietor, Oceanic Realtors.

“Availability of comparatively affordable new property options makes the locality an attractive investment hub for young buyers aged between 27-35 years,” informs Patil. Apart from this, sentiments also improved as the Wadala-Thane Metro is expected to get funding from the World Bank.

Ghodbunder Road has entered the top 10 list of the most preferred localities for purchase, as per the real estate watchers.  The area is listed on the ninth spot and shares space with some top localities of Mumbai such as Andheri East and West, Powai and Goregaon.

As per the data, a 1BHK of 500-600 sq ft is available for Rs 50 to 64 lakh while a slightly larger apartment of 800 sq ft is offered for Rs 95 lakh. GB Road also has multiple 3BHK options available in a higher price bracket of Rs 1.8 crore to Rs 2.5 crore.

Areas along the Ghodbunder road like Manpada offers a 500 sq ft 1BHK apartment at a starting price of Rs 60 lakh, while Pokhran Road offers a similar size apartment in a budget range of Rs 68-74 lakh. Similarly, Mulund East offers smaller properties at Rs 90 lakh to Rs 1.2 crore for a 700 sq ft property.

Brahmand, Kasarvadavali, Hiranandani, Vijay Nagari are popular residential colonies along the Ghodbunder road. As per the Mumbai Metropolitan Region Development Authority (MMRDA) plan, all these localities will be having a metro station in the vicinity and would have direct connectivity to South Mumbai as well as to Thane’s Teen Hath Naaka. The metro connectivity is expected to boost real estate prices further in the area.

Residential Properties in Thane

Property Price in thane