Budget 2015 will improve quality of life: Ganesh Vasudevan

“The objective of the budget was – to improve the quality of life and to pass benefits to common man. To an extent the budget has succeeded in doing so.

As expected the budget majorly focused on growth of infrastructure in the country. But the ambiguity on the smart city project which was announced in the previous budget continues with it getting no mention in the current budget.

Allocation of INR 70,000 crores to Infrastructure sector, tax-free bonds for projects in rail road and irrigation, revitalising the PPP model for infrastructure development – are just some of the inclusions which will help growth of infrastructure and thereby the realty industry in the country. As seen in the past infrastructure projects have proven to be seeds for the growing realty industry in India as they direct housing and commercial developments towards them.

With Ahmedabad-Dhaulera Investment region and Shendra-Bidkin Industrial Park now ready to get basic infrastructure, one can expect an increased interest from developers in the area.

6 crore housing units for rural and urban housing by 2022 is a positive move by the government towards fulfilling its agenda of housing for all by 2022 and filling the housing deficit in our country. Another highlight was the government’s commitment towards controlling flow of black money in the country especially in property dealings and promoting cashless transactions. The flow of funds via electronic transactions will have a high impact on the realty industry and would bring the much needed needed transparency in our industry.

Even though there is a proposal to rationalise the capital gains taxes for the listings of REITs in the country, the details of the proposal were not specified during the budget.

We believe that an increase in the buying capacity of home buyers will help recover the realty industry in India. Even though the industry was expecting some additional tax exemptions for common man, saving of up to INR 4,44,200 in a financial year will definitely motive property buyers.”

http://www.indiaproperty.com/

India’s economy is a ‘super giant’, said Finance Minister, Arun Jaitley while presenting the BJP government’s Budget 2015 which promises to ignite India’s growth engine and take it forward slowly but surely. Iamin looks at reactions from the people.

The Union budget 2015 has brought both relief and disapointment to the common man. Here’s what the aam aadmi of Delhi feels about Modi government’s version.

“I am happy that the government has finally spoken about senior citizens. For us, tax deductions under Section 80D has been raised to Rs. 30 thousands,” said Subhash Chander, a resident of Gurgaon.

“I am not happy with the budget as my mobile bills will go up now. Moreover, food will also cost us more in restaurants,” said Komal Sharma, a student of MA English.

“The budget comes as a positive sign for the economy. Perhaps for the first time, a finance minister who has given economy more importance than politics,” said Kshitij Sharma, software engineer at Infosys.

“As expected the budget majorly focused on growth of infrastructure in the country. However, the ambiguity on the smart city project, which was announced in the previous budget continues with it, getting no mention in the current budget,” said Ganesh Vasudevan, CEO Indiaproperty.com

“The provision of Rs. 1000 crore corpus to facilitate start-ups is a good start. However, more investment is required to establish India a major service provider globally, as Indian economy is entrepreneurship-driven,” said Bhuvnesh Talwar, budding entrepreneur.

“The benefit of the BJP government’s budget has been very nominal. They have not increased the limit for tax exemption, investment and PF. Since the overall growth of the economy is being aided by surplus money coming to the government treasury, they have increased investments in infrastructure, which is the only good step. There is no direct benefit for the common man,” said Vikram Sehgal, a self-employed Chartered Accountant.

“Eating out has been made more expensive, we will try to be more prudent. We had to set up a new home, which will be difficult as the prices of consumer durables will increase,” said Shweta and Anand Sethi, a newly married couple living in Delhi.

“The government is trying to encourage people to park their money in more saving instruments. I noticed that they have increased the travel allowance of people and given rebate on health premium,” said R Srikant, stock broker.

“We welcome the focus on giving financial aids for improving educational infrastructure and encouraging entrepreneurship. The setting up of Mudra Bank is an interesting development and will help business creation by providing financial aids, with a special allocation being made for the SC/ST/OBC communities which form the backbone of Indian entrepreneurial sector,” Pallavi Rao Chaturvedi, Director, AISECT.

Upgrading 80,000 secondary schools will boost the drive to eradicate illiteracy. The quality of education needs to improve as well, with a special emphasis on providing superior training to the teachers and supporting staff to empower the educational system,” said Nupur Kaul, a teacher in one of the private senior secondary schools.

http://www.indiaproperty.com/

NEW DELHI: The ambiguity on the smart city project which was announced in the previous budget continues with it getting no mention in the current budget, Ganesh Vasudevan, ceo, Indiaproperty.com

“The objective of the budget was – to improve the quality of life and to pass benefits to common man. To an extent the budget has succeeded in doing so. As expected the budget majorly focused on growth of infrastructure in the country. But the ambiguity on the smart city project which was announced in the previous budget continues with it getting no mention in the current budget.

Allocation of Rs 70,000 crore to Infrastructure sector, tax-free bonds for projects in rail road and irrigation, revitalising the PPP model for infrastructure development – are just some of the inclusions which will help growth of infrastructure and thereby the realty industry in the country. As seen in the past infrastructure projects have proven to be seeds for the growing realty industry in India as they direct housing and commercial developments towards them.

With Ahmedabad-Dhaulera Investment region and Shendra-Bidkin Industrial Park now ready to get basic infrastructure, one can expect an increased interest from developers in the area.

6 crore housing units for rural and urban housing by 2022 is a positive move by the government towards fulfilling its agenda of housing for all by 2022 and filling the housing deficit in our country. Another highlight was the government’s commitment towards controlling flow of black money in the country especially in property dealings and promoting cashless transactions. The flow of funds via electronic transactions will have a high impact on the realty industry and would bring the much needed transparency in our industry.

Even though there is a proposal to rationalise the capital gains taxes for the listings of REITs in the country, the details of the proposal were not specified during the budget.

We believe that an increase in the buying capacity of home buyers will help recover the realty industry in India. Even though the industry was expecting some additional tax exemptions for common man, saving of up to Rs 4,44,200 in a financial year will definitely motive property buyers.”

http://www.indiaproperty.com/

Mumbai: The real estate industry, which had pinned high hopes on Union Budget 2015 for revival of the liquidity-starved sector, welcomed some of the proposals of finance minister Arun Jaitley, but said that there was no clarity on development of 100 smart cities. The industry leaders said the document also lacks serious incentives to boost the key sector.

In the first full-year budget of the National Democratic Alliance (NDA) government, Jaitley proposed to rationalize the capital gains regime for the sponsors exiting at the time of listing of units of real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs) and also announced creation of six crore homes to meet the centre’s “housing for all” vision.
“Overall the budget’s direction is positive with several macro factors making way for a better economic regime. However, with three consecutive bad years for real estate that left developers and other stakeholders gasping for fresh air, the expectations were high. Unfortunately, the budget has not given them anything to cheer about,” said Shishir Baijal, chairman and managing director, Knight Frank India.

“The budget announced the government’s intention to build six crore houses towards the “Housing for all by 2022” initiative. Specific details on this subject, however, were not elaborated on and neither was any light shed on the Sardar Patel Urban Housing Mission in terms of fund allocation, funding instruments and entities, exact timelines and project locations, among other factors,” said Anshuman Magazine, CBRE South Asia’s chairman and managing director.

Gera Developments’s managing director Rohit Gera said, “Though the budget is positive, it has completely ignored the residential real estate market and there is a total lack of any push for the housing sector. We had hoped for increased deduction towards home loans amongst other things to give an impetus to the industry.” “Given the prevailing indirect taxes, stamp duty, borrowing costs for both buyers and developers, the industry was hoping for some serious incentive given the significant housing shortfall, but it was one big miss. However, the industry is hopeful in the course of the year the government will make some announcement in this regard,” said Gera.

Embassy Office Parks chief executive Mike Holland said, “Indications that tax pass through on REITs will be implemented is welcomed. We will await and review the detail but if the understanding is correct, this has the potential to stimulate the REIT market in India which can release lower cost capital, increase liquidity and stimulate the next phase of enhancement of India’s urban infrastructure.”
“The budget is positive and balanced. The proposal to rationalise capital gains tax regime for REITs is a welcome step. Also, the reduction in corporate tax will lead to higher investments in the realty sector,” said Gaurav Gupta, director of Omkar Developers.

“The decision on providing six crore urban and rural housing units, revisiting and revitalising the PPP model, increasing funding for infrastructure, introduction of predefined permissions regime and proposal to rationalise capital gains tax regime for REITs, will have a positive impact on the sector,” said Brotin Banerjee, managing director and chief executive of Tata Housing.

The industry, however, said the budget lacks direction for development of 100 smart cities, a pet project of Prime Minister Narendra Modi. “The budget did not provide any details on the initiative taken by the government for developing 100 smart cities. Factors such as how it will define these cities and which cities have been identified remain unclear. But increased allocations for rail-road development, penetration of education and training centres and push to Digital India initiative could contribute to the shaping of smart cities,” Anuj Puri, chairman and country head, Jones Lang LaSalle.

Indiaproperty.com CEO Ganesh Vasudevan said “the budget’s objective was to improve the quality of life and pass on benefits to the common man. To an extent the Budget has succeeded in doing so. As expected the Budget mainly focused on growth of infrastructure, but it had no mention of smart city project.”

http://www.indiaproperty.com/

The real estate situation of Bangalore has been the talk of the town over the last year or so. This city has become popular among home buyers who are looking for properties in all segments. The real estate sector here can boast and say that it is one among the few to be doing brusque business in the entire country. There has been a healthy demand for housing being witnessed in this city. Reports doing the rounds in the media have been constantly harping on the fact that the residential absorption rate in this market has been consistently high in all the quarters of 2014. The figures according to these reports have seen a remarkable growth when compared to 2013. This kind of growth has not been seen in any of the major metros across the country. In fact some markets have been witnessing a slump.

One of the main factors that is driving growth here is the Information Technology industry. If this industry is a positive zone, then the real estate industry will also prosper. If there is a slump in the IT industry the real estate market will also face a slump. Currently the IT industry is experiencing a positive growth spurt and this is aiding the growth of the real estate sector.

Another factor to take into consideration is pricing. Bangalore property prices can range between INR 5000 to 30000 per square feet according to reports. This shows that there are both affordable housing options and luxury housing options available in the city. In 2015, Bangalore property prices are looking to go up. There is a voracious appetite for the affordable housing segment in the city.

Here is the buyer’s preference for the year 2014:

A 2bhk flat for sale in Bangalore has been on the top of most buyers’ purchase list. They are also looking for 3 and 4 BHKs here. Apartments which are sized between 1001 to 1250 square feet came out on top as far unit size preference is concerned in this market. This is followed by the 1251 to 1500 square feet range and the 751 to 1000 square feet range. The most preferred budget range for apartments here falls between INR 30 to 40 lakhs. This is followed by the INR 40 to 50 lakhs range and the INR 20 to 30 lakhs range. Buyers were looking to buy properties in Bangalore which were priced less than INR 2000 per square the most in Bangalore. This is followed by the INR 3001 to 3500 per square feet range and the INR 3501 to 4000 per square feet range.

Some of the top localities amongst the buyers are micro markets which have a good presence of the IT and ITeS companies. Micro markets such as Electronic City, Sarjapur Road, Whitefield, Marathahalli, KR Puram and Yelahanka have emerged as top choices among property seekers here. A property such as a 2bhk flat for sale in Bangalore which is located in these micro markets have been selling like hot cakes.

The recent real estate development in Hi-Tech city has been one of the most important deals in the city. This could change the real estate sector in Hyderabad completely and affect the prices in a major way. Properties in Hi-tech city are a prized possession with a high appreciation value. With a number of developments in the recent past, it has reinforced the fact that this locality is one of the prime investment zones in Hyderabad. One of the top real estate consulting firms in the world, Jones Land LaSalle India have successfully closed one of the biggest real estate deals in Hyderabad. Prestige Estates Limited has acquired a whopping 5.8 acres of land in Hi-tech city. The IT hub of the city has been in the realty stage for quite a while with immense potential for real estate for builders. The growing demand has also supported the sector in a big way. This 5.8 acre parcel of land might seem small for a corporate like Prestige, but acquiring land in the city where there is already shortage of land and development is a massive achievement.

This land in Madhapur, one of the top localities in Hyderabad has will result in high end development has well as hike in real estate prices in post bifurcation Hyderabad. The Prestige Estates have planned to develop this into a 1.2 million square feet luxury residential hub in the locality. Properties in Hi-tech city which are already in the higher end of the spectrum will notice a sharp price rise once the development by prestige is announced. Additionally this will improve developments in its nearby sub localities and help create a luxury real estate zone in the region.

“The IT boom has had massive implications on real estate development in Hyderabad. The city has been transformed into the focal point of growth for the IT/ITes sector in Andhra Pradesh. Hitec City is at the very epicenter of this growth. Because of the high pay scales and concurrent aspiration levels associated with the IT/ITes industry, there is a massive demand for luxury residential spaces in this location. Land parcels here are scarce and therefore command premium price tags.” says Mayank Saksena, Managing Director – Land, Jones Lang LaSalle India to Money Control.

“We are extremely pleased with the acquisition of this plot on the competitive terms secured for us by Jones Lang LaSalle India. We are much attuned to the immense market potential for a luxury project in this location. Hi-tech City at Madhapur has the highest concentration of IT/ITES establishments in Hyderabad. It is a nexus of national and international corporate offices, and we are calibrating the offerings of this luxury residential project to suit the buyer profile of this catchment.” says Irfan Razzack, CMD – Prestige Estates Ltd to Money Control India.

Not only apartments but today the area is dotted with a number of villas in Hi-tech city and this new project will only earmark this locality as a prime residential real estate investment

Jaipur is emerging as one of top investment destination according to top Indian and international real estate research agencies. Research suggests that the property rates gave gone up by 11 to 12 % from 2009 to 2011. This is big for any Tier II city in India. Jaipur as any other developing real estate offers a great scope for appreciation and return on investment. “Price appreciation is not the sole determinant of long-term attractiveness for investment. Potential for demand growth, price stability, quality of infrastructure,” said Prasad Koparkar- Head- Industry and Customised Research at CRISIL to a leading newspaper. Jaipur tops the list in terms of sales among other top 10 small cities of India including Vizag, Vadodara, Surat, Indore, Nagpur, Coimbatore, Bhopal, Bhubaneswar & Lucknow. Properties in Jaipur is definitely a sop investment option for builders in Jaipur and end users.

The Delhi Jaipur Highway stretch is another realty hotspot in the region. It covers other developing localities like Manesar, Bhiwadi and Alwar. Investors are giving these localities a complete makeover with many new urban townships here. The highway not only provides good connectivity but creates catchment areas of builders in Jaipur serving as a spot for good real estate activity. This highway is where most activity and growth will be concentrated towards for the next few years. Jaipur city is a historically relevant location with tourism being one of the major drivers of the economy. With the tourism industry growing rapidly, commercial real estate has become one of the most valued asset in the region.

In terms of connectivity the city is connected via National Highway 8 linking Delhi and Mumbai and National Highway 12 from Bikaner to Agra. The state transport service runs frequent buses to different locations within the city and other states as well including Gujarat, Haryana, Delhi, Madhya Pradesh and within Rajasthan. Jaipur is one of the few Tier II cities that will see an operational metro rail by September 2014. This is better than most metros like Chennai, where the metro rail project has faced numerous roadblocks. Apart from this Jaipur is well connected all top cities in India and a few international locations via the Jaipur International Airport situated 10 km away from the main city.

The city boasts of good physical infrastructure to support the growing population in the city. The city poses great realty potential without a doubt. The residential properties in Jaipur have shown an upward price trend and this will continue for some time now. Most localities in Jaipur City show an average property price of multistorey apartments at INR 3500 to 4000 per square feet with a steady 4% increase each quarter. Apart from C Scheme and Bani Park where the pricing is on a premium range of INR 6500 to 8000 per square feet. Plots are very affordable with many localities within the city like Chitrakut, Nirman Nagar and Mansarovar showing an average pricing of INR 3500 per square feet.

With the property price soaring and central localities reaching their saturation point, many suburbs and peripherals are fast becoming some of the most sought after localities. And with Bangalore being the Silicon Valley of Indian thanks to the insurgence of many MNCs (Multi National Companies), suburbs are no longer villages that offer barren land. Today their are bustling neighbourhoods that provide the perfect blend of commercial and residential spaces. And one such suburb that has caught the eye of property seekers and builders a like is Marathahalli.

The vicinity is currently witnessing an upwards swing as the housing demand in increasing day by day. Some of the major factors that are driving the demand include seamless connectivity and the existence of many reputed health care facilities and shopping complexes. Barren plots in Marathahalli are being purchased by many real estate developers so they could build many highrises and gated communities that meet the needs and demands of MIGs (Middle Income Group individuals) and HNIs (High Net-worth Individuals).

The locality’s proximity to neighbouring IT hubs like Whitefield has fuelled the demand further. Apart from attracting a pool of working professionals, the region is also home to many families and retired personnel thanks to its growing social infrastructure. Local and national property builders are offering flats for sale in Marathahalli that range from being affordable to super luxurious abodes. According to current market trends, capital values of homes are estimated to hover anywhere between Rs 3,700 and Rs 4,600 per square feet.

Apart from being an end users market- the vicinity’s robust rental return is luring many homes buyers to settle down here. The sudden influx of housing demand has pushed rental values higher. According to data, the rental yields in the locality have increased by 20 percent in the past one year. The demand is exceeding the supply thereby resulting in high rental yields. Second time home buyers and investors are purchasing flats for sale in Marathahalli only to let them out on rent later. The formidable rental returns makes this vicinity a haven for many investors.

The regions seamless connectivity is another factor that is flourishing the areas realty sector. Easing access to neighbouring IT hubs and other established localities- Marathahalli is fast becoming one of the most sought after residential catchment area. Tapping into the growing rental demand, investors are letting out their inventories only to earn few quick bucks. For instance an apartment that costs less than Rs 70 lakhs is estimated to generate a rental yield of Rs 20,000 per month depending if the homes are semi of fully furnished.

Apart from catering to the needs and demands of the MIGs, the vicinity is also meeting the demands of many affluent. Senior executives and CEOs who are showing a keen interest in residing here and builders are cashing on the growing demand. Property real estate developers are wooing the affluent by offering state of the art amenities and facilities.

So no matter who you are, if you looking towards investing in properties in Bangalore- purchase properties in Marathahalli or own apartments here as inventories here not only promise high ROI but also churn high rental yields.

While most of the metros are moving away from creating independent homes, most properties in Bangalore for sale are individual homes and villas. According to a recent report, all regions across the city have witnessed an influx in demand for this property type. While the north and south region document an escalation of 10 percent, the eastern and central region saw an influx of 7 percent and 1 percent respectively.

The ever increasing property prices have resulted in the major shift. While property values of high rise multi-storey apartments lay on par with individual homes, property seekers and home buyers are showing a keen interest in settling down for the later option. Apart from owing the particular piece of land, a home buyer is at an added advantage when it comes to investing independent homes. Property seekers can not only buy a plot within their budget and build their dream home- they can save a penny or two when it comes to measuring the maintenance cost incurred every month while owning an flat.

With the Silicon Valley of India creating many employment opportunities, real estate developers and builders are entering the market to create living options based on the needs and demands of the migrants. But the sudden alteration has forced many to move away from creating the traditional multi-storey buildings to gated communities and township projects that are dotted with many affordable villas. Residential plot owners are now cashing on this demand and letting out their Bangalore plots for sale.

Busting the regular myth of apartments offering high ROI (Return on Investment), independent house in bangalore for sale have recorded a high yields. The constant demand has pushed capital values of homes to soar. According to current market trends, property values of residential homes have escalated over 76 percent in the past one year. Some of the localities that are bustling with construction activities include Ulsoor, Hebbal, Electronic City, KR Puram, Hennur, Koramangala and Sarjapur Road. Bangalore plots for sale along Sarjapur Road are being acquired by many local and national real estate developers who are keen on creating on many extraordinary living spaces. According to data, the area is all set to have 16 projects that offer premium villas starting at the budget of Rs 95 lakhs.

Wooing many white collared professionals by offering all the modern day amenities, villas today are cited to hover anywhere between the price bracket of Rs 5,700 and Rs 7,500 per square feet. Apart from targeting the MIGs (Middle Income Group individuals), the realty market is luring many HNIs (High Net-worth Individuals) and NRIs (Non Resident Indians). The high standard of living and the status symbol are some the elements that are enticing many investors. Reputed players have tapped the growing demand and have built and array of luxury villas that is roping in a lot of foreign investment. Some of the active residential catchment areas that are attracting many NRIs include HBR Layout, Dollars Colony and Bellary Road. Depending on the amenities and facilities offered by the builders, homes in these posh areas are cited to hove anywhere between Rs 7,500 and Rs 9,000 per square.

Apart from being economical, apartments in Bangalore for sale offer promising formidable returns, so don’t think twice before investing in villas!

Source: http://www.articlesbase.com/real-estate-articles/home-buyers-prefer-independent-homes-to-apartments-7205963.html

Kompally situated in the western part of Hyderabad has been the new investment destination in the city. Situated only 24 km from HITEC City and 15 Km from twin city Secunderabad, Kompally is another IT dominated locality in Hyderabad after HITEC City. There is no doubt the improved town planning and connectivity in Hyderabad has contributed to the increase in growth and development in the suburbs of the city. Properties in Kompally prove as a good investment option as a second home investment or a residential property. Property prices here are cheaper compared to other parts of the city, however capital appreciation observed is much higher.

The locality is well connected via public buses and MMTS service, however the metro connectivity hasn’t reached Kompally yet. It is connected via roadways through the Outer Ring Road. The locality also has a good number of schools, colleges and other social infrastructure facilities. National Highway 7 has completely changed the geography and demographics of this locality and has brought in a welcome change in the region surrounding it also. Today apartments in Kompally are springing up in every nook and corner.

The locality as a number of gated communities and has become a very popular choice of investment among residents of Hyderabad. It has been a very good option as almost all facilities are available within the compound and one hardly moves out for anything. Being a developing locality with limited social infrastructure, this facility has been an important selling point for many builders in the region. N V Natrajan a resident of Kompally, said to Times Property that, “I moved here four years ago from Ameerpet. The community has good roads, in house service men and excellent security. There is a water problem in the area; none of the houses have a connection. Our community buys water. We don’t face power cuts also as the community buys power in bulk and doesn’t depend on the board for power. There is negligible pollution and the cost of living is less by 50 per cent.”

There are many benefits of living in the suburbs, Kavita Jain another resident of the locality explains why. “It’s good to live away from the rush of the city. It’s well connected thanks to the ORR. It’s a very peaceful place. It’s safe too. I haven’t heard of any crime here, and driving on the highway is very relaxing. I bought property here because it was close to my work place. The land value has gone up by 30 per cent over the years. There has been a lot of development too. When I first moved here, there was only one bank and one hospital. Now there are ten banks and hospitals in the area.”

It’s beyond a doubt that this locality lets you experience luxury living at nearly half the cost. Apartments in Kompally today come at a rough cost of INR 2500 to 3500 per sq. ft. Properties in Kompally are exponentially cheaper than the city which has witnessed a price rise after the bifurcation. To enjoy a quality standard of living at a fraction of the cost, invest in Kompally.

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