Impact of Budget 2015 on India's Real Estate-01-01

As the Union Budget 2015 favored the housing sector, the Indian real estate market is likely to surge further. Here are the announcements that are made in the Union Budget 2015.

The future of the realty sector in Hyderabad is looking good. The storm surrounding the Telangana issue has passed. The political unrest did a number on the real estate scene of the city. The incessant riots brought the economy of the city to a grinding halt. Companies started viewing the city as a liability and stopped expending there. This had a big impact on the realty sector. Sales volumes and property prices took a nose dive.
The city was once the most preferred destination for Information Technology companies. The unrest leading up to the bifurcation of the state forced these companies to look elsewhere to set up shop. The city saw a mass exodus of companies during this phase. But there is hope yet for the city. With the bifurcation of the state, Hyderabad has been named as the joint capital of both Andhra Pradesh and Telangana for the next decade. Though the market has not recovered yet from the prolonged downturn, things are definitely looking up for it.

The new Telangana government is looking to boost the infrastructure of the city. One of the biggest projects that is being banked up on to help the city and its residents is the Metro Rail. An investment of INR 17000 crores is being pumped into this project. The project is set to have three lines and just the first phase is to have sixty six stations. Some reports suggest that 2 stretches are going to be thrown open to the public in October 2015. The two stretches are between Nagole and Begumpet and between Miyapur and SR Nagar. If you are planning to buy plot in Hyderabad then the places with metro connectivity are the best choice for you. Not only will you get amazing connectivity but the price of the property you purchased will also keep going up in the future. The new government is also pumping in money on many other infrastructure related projects to make the city more liveable. This automatically bumps up the real estate value of the micro markets which are being touched by these projects.

If you are looking to buy apartments in Hyderabad then the micro markets which are dominated by the IT sector is where you need to head to. Areas like Gachibowli and Hi Tech City always figure among the top choices for those who are looking to invest in this market. If you buy apartments in Hyderabad which are located in these two micro markets you can bet that you will see good price appreciation for them in the future. Those who are working in the various companies which have set up shop here prefer to walk it to their offices. Hence they want to live in these micro markets itself. The prices for properties here is also much below par when compared to the central business districts in the other metros. This makes them an ideal choice for those who are looking to buy plot in Hyderabad for investment purchases. These two micro markets are also good rental destinations making them an investor’s haven.

As Bangalore is being one of the major IT-ITES hubs of South India, the city attracts the working professionals across India for career opportunities. As a result, the need of home has been high over the past few years. With 243,000 housing units to be delivered by the year 2018, Bangalore’s residential property market is likely to remain high in the future.

According to a recent study by the global real estate consultancy Cushman and Wakefield (C&W), the home supply estimation indicates that nearly 56% of new housing units would be catered to the Middle Income Group (MIG), 29% to the Low Income Group (LIG) and remaining 15% to the High Income Group (HIG). Further, the progressive demand of residential property (Until 2018) is predicted to be 438,000 housing units with 31% in the LIG and 44% in the MIG. Considering these factors, the requirement for residential properties for sale in Bangalore will remain high at the time to come.

Bangalore’s residential real estate market is majorly focused on the MIG, as the city has the huge number of mid-level IT working professionals. However, as the metropolis has been the head-office for many multi-national companies across the globe, the demand for HIG housing units is likely to increase to a great extend. Therefore, the home buyers will witness more upcoming projects in Bangalore focusing on HIG in the future.

Property price trend in Bangalore is the another major factor that drives city’s real estate market. The home buyers who are looking for the residential projects in Bangalore can have multiple home buying choice, as they find properties that meet their budget and requirements. Be it a budget home or luxurious villa, the home buyers can find any type of property in Bangalore.

When it comes to residential demand in the other 8 major cities across India, it is expected that the highest volume of demand would be generated by the Mid-Income Group, which would be around 1.08 mn units until 2018. Followed by it, the demand of approx 1.05 mn units is expected to be generated by the Low-Income Group (LIG) and the demand of 0.5 mn units by the High-Income Group (HIG). Therefore, both MIG and LIG will generate nearly 80% of total residential demand in the eight major cities of India.

The expected development of residential properties including proposed, existing and under- construction projects in the top eight cities in India by 2018 is estimated around 1.3 mn. Moreover, a plethora of under-construction housing units been sold. In the next five years, Delhi-NCR will have the highest supply with nearly 516,000 housing units, followed by Bangalore close to 243,000 units and Mumbai around 203, 000 units.

Therefore, if you are a home buyers who is eager to make a property investment in Bangalore, this is the best time for investment. On considering the above-mentioned facts, buying a residential property in Bangalore will make you witness increased capital appreciation of your property in the near future. As the demand is high property in Bangalore, the property investors can earn a good return investment by renting their property.

Gurgaon today has emerged into a premium financial and industrial center in the National Capital Region. Located only 32 km south west of Central Delhi, Gurgaon boasts of high concentration of HNIs with the third highest concentration of per capita income in India. Inspite of all this the city sometimes suffers with lack of proper infrastructure planning, power shortages and utility issues from time to time. The area was known as Guru Gram later christened to Gurgaon. What started the major economic boom in Gurgaon was the setting up of the Maruti Suzuki Factories in the 1970s after which an array of Fortune 500 companies followed their way to the city.

Today its stands as an epitome for premium residential real estate in the National Capital Region. World class commercial facilities and connectivity to Delhi has made Gurgaon one of the most sought after localities in the region. Commercial and residential real estate has been flourishing in the region so much so that region has emerged to become the fastest growing market in the country. Developers are building several new flats in Gurgaon with pricing of these going up by 25% on an average. Top developers like Godrej Developers, Tata Realty & Sobha Developers have launched their new projects in Gurgaon. This has further created a healthy completion in the market for villas, 3BHK & 2BHK flats in Gurgaon.

IT/ITes have penetrated Gurgaon too generating many jobs. This job generation has further improved the residential real estate sector here, with buyers interested in buying properties in Gurgaon as well as improving the rental values in the region. The Gurgaon Manesar Master Plan 2025 has charted out many developments in the region. This has improved the sentiments of investors and enabled them to invest in real estate in the region. Investment has been primarily seen in high end luxury projects and high rise flats in Gurgaon.
The Master Plan has allocated nearly 14,000 hectares of land for residential purposes which will amount to almost 58 new sectors. Out of the allotted land most 40% has already come to the licensing stage. This massive development is sure to bring in many developers to have some world class projects in and around Gurgaon.

Top areas that have shown great growth in terms of real estate in Gurgaon are Golf Course Road, Sohna Road, Jaipur Highway, Pataudi Road etc. Manesar, Bhiwadi, New Gurgaon and Dharuhera are some top developing localities that have come under the realty radar. Top developers in Gurgaon are DLF, Unitech, Raheja, MGF EMAAR and many more. Today Gurgaon has great career opportunities because of its commercial establishments and top companies in the world. The retail market is also flourishing because of the high concentration of HNIs. This has in turn improved the residential real estate market. With purchasing power of residents in Gurgaon being high, the prices charged for a regular flats in Gurgaon is also very high, compared to other regions in NCR. Pricing of properties here is dependent on the area. Sector 42 and Sector 66 has shown a sale value of INR 18,000 to 20,000 per square feet. DLF city also demands high rental and well as capital value at INR 13,000 to 14000 per sq. ft. and rentals at INR 24 to 30 per square feet.

The real estate sector in Bangalore is one of the few ones that is thriving in the country. The single biggest factor responsible for the real estate growth of this market is the Information Technology sector. The Information Technology boom completely changed the real estate landscape of the city. It created more employment opportunities and hence put more money into the pockets of young people.
This is turn increased their purchasing power and hence the realty sector benefited immensely from it.
The IT corridors of the city have become very popular residential and rental markets. The walk to work concept has really caught on in the city. Most of the IT professionals prefer to live close to their places of work. They are the people who are primarily driving the real estate growth in these IT corridors.

In a market like Bangalore, locality plays an important role when it comes to the property purchasing decision. Buyers here are willing to forego other factors which influence the property purchase decision such as amenities, builder reputation etc for a property which is located in an good area. They also place infrastructure highly on their list. They are willing to pay good money for properties which are located in areas which have good infrastructure such as good roads, water supply and electricity. They are also looking for areas which come with the affordability tag. They are looking for properties which fall within the INR 30 to 50 lakhs range.

One such area which has caught the fancy of buyers is located in the south eastern part of the city. Marathahalli is one of the most sought after residential areas in the city. Apartments in Marathahalli are very popular among home buyers in Bangalore. It lies in close proximity to other IT hubs such as Whitefield and Electronics City. The micro market is a good mix of commercial and residential properties. There is a good presence of IT companies here which makes this a good micro market for both end users and those who are looking to invest.

Connectivity wise this area scores well. National Highway 7, the Old Airport Road and the ITPL Road pass through this locality. Buyers looking for apartments in Marathahalli are willing to spend anywhere between INR 30 to 50 lakhs making this market much more affordable than other IT hubs which surround it. The going rate for apartments in Marathahalli stands at INR 4700 per square feet on average. If one is looking for properties in Marathahalli such as plots and villas, they are also available at decent rates here.

Plots here cost INR 4000 to 5500 per square feet on average while villas can cost anywhere between INR 6000 to 10000 per square feet.

If a comparison is to be done among localities such as CV Raman Nagar, KR Puram and Marathahalli, then Marathahalli comes out on top. Those who are looking for flats here are looking to purchase flats which are sized between 1000 to 1250 square feet.

There has been a lot of activity in the market in this year 2015. This may be because of the increased faith in the new government or the revival of the economy in general. With importance given to affordable housing sector by the new government and REITs in place things are said to change in terms of investors in real estate are concerned. On the other end of the spectrum home buyers will benefit from the number of infrastructure activities planned in the national capital regions. Delhi NCR and especially Noida properties will see considerable push in the year 2015 and gaining momentum for the next few years. Noida is an ideal investment destination for investors because of the availability of land. Housing has been the need of the hour and the ever growing need to quality homes for a reasonable price has pushed the builders to capitalize on the current market scenario. Noida properties are an answer to reasonably priced homes at a good location. The penetration of metro has also resulted in significant improvement in the market. One needn’t stay in New Delhi, because metro and other roadways have eased the access to the employment zones. Noida in itself has IT dominant population with offices in the same location.

Santhosh Kumar, CEO Operations JLL India said to Money Control that, “What favours investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments. The realty market in Gurgaon has now crystallised into one most favourable for buyers in the premium segment. But the other side of the coin is that the high price points in Gurgaon suggest that properties there will no longer fetch high rates of appreciation.
With the fast-paced development in infrastructure in Noida and its vicinity, real estate growth has really picked up over the past few years. There have been announcements for many new such projects as well, which has had a positive effect on the real estate market.” He further adds that, “The proposed extension of the Dwarka-Noida City Center to Pari Chowk will give direct connectivity to Delhi and other NCR areas, and the project is expected to complete by 2021. The Noida Metro Rail Corporation (NMRC) has got the required approvals for the 29 km-long Noida-Greater Noida Metro link from the state government, as well. Simultaneously, the Greater Noida Industrial Development Authority (GNIDA) has plans to set up its own power plant, which will provide uninterrupted power supply to the region.”

Today you can find a number of affordable flats for sale in Noida. There is a high supply of these commodities. The price range in Noida varies as much as INR 2000 to 3000 per sq. ft. on one hand and property for sale in Noida for INR 2 crore and above. This diversity has been a healthy trend in the market. With upcoming projects like the Export Promotion Zone and the Taj Economic Zone along the Yamuna Expressway, the commercial and residential real estate is only said to pick up pace in the years to come.

The soaring property prices in Mumbai have surely made the city a haven for many investors- so it doesn’t come as a surprise to see many young investors now venturing into this field. And while many localities generating high rental yields, Mumbai is fast becoming one of the most sought after ‘investment’ destination in the country. Both local and reputed real estate developers are now tapping this trend and are creating various apartments in Mumbai for investors- which is thereby leading to generating an environment that is luring many tenants to settle down here.

And while tapping into the mindset of both investors and sellers, central localities in Mumbai have topped the chart in terms in terms of churning high rental returns. Neighbourhoods like Wadala and Sewri are cited to the most preferred and the growing demand has resulted in an escalation of rental prices. According to a report, rent values here have appreciated over 30 percent in the past few years. The increase in rental returns have lured many to buy in a number of property for sale in Mumbai- only with the motive to earn a handsome rental yield.

Another factor that is enticing many to shift base to these localities is its seamless networking. Its proximity to established areas like Chembur (from Wadala) via the monorail has lured many working professionals from Bandra-Kurla Complex to move here. Although the construction of Phase II of the project is delayed, its long term benefits of creating the perfect environment (presence of both residential and commercial spaces) are attracting many to move here. The great connectivity through the Eastern Freeway too has acted as an advantage, and property builders are cashing on the connectivity and are coming up with many high rise apartments in Mumbai especially in this stretch.

The prospect of converting Wadala into a state of the art business centre too has flourished the rental market of the neighbourhood. Investors are not shying away from spending that extra penny if it earns formidable returns for them. For instance, a property for sale in Mumbai especially in Wadala is expected to hover over a price bracket of Rs 1.5 crore and Rs 2 crore, however, the same property is qualified of generating rental returns anywhere between Rs 35,000 and Rs 55,000 per month- thereby making the investment worthy.

As far as Sewri is concerned, the availability to property is what is driving the rental demand. Apart from properties that are under the re-development category, ready to move in apartments are generating high rentals. Recent reports have suggested 1 BHK homes to generate average rental yields of Rs 70,000 per month. Although the traffic woes between Worli and Sewri are major concerns- the Worli-Sewri Elevate Road has attracted many to invest here. Capital values of 2 BHK apartments here are cited to hover over a price band of Rs 1.5 crore and Rs 5 crore- depending on the amenities and specifications provided builders. And investors are now purchasing various inventories here- remodelling them and giving them away at higher rental values. Semi furnished and furnished homes here are expected to yield Rs 50,000 and Rs 1 lakhs as rentals per month.

So if you are one who is looking for a fruitful realty investment, central localities in Mumbai are ideal destinations for you. The neighbouring employment market and the seamless connectivity ensure the demand for rental homes remains high.

XL Sankalp Dham is one of the residential development by XL Realty & Infrastructures. It is located at Virar East, Mumbai. It offers skillfully designed 1RK and 1BHK apartments. The project is well equipped with all the amenities to facilitate the needs of the residents. Round-the-clock security is also available.

Jaypee Gateway is a Well-Planned and self-contained, Jaypee Gateway makes your dream home a Reality. Tucked away from the hustle of the urban metropolis, Yet Close enough to its conveniences, this is a world of your own. Spread across an area of 10 acres, Jaypee Gateway well planned villas offers simplex & Duplex villas for sale with all amenities needed for a comfortable life style near Andhiwadi Stadium & check post , Attebele – TVS Road . This property is Good to invest because upcoming nr – TVS Factory Attebele having  Plot sizes are 1500 , 1750 , 1800 , 2800 sq.ft areas .

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