1. Many large business entities are now branching out into real estate development, while real estate companies are entering other areas. What is the reason behind all this?
Diversification is a natura1consequence of India's economic boom. This boom is happening across various sectors, not only one. The action is spread across telecom, IT/ITeS (Information technology and IT-enabled services) retail, logistics and various other sectors. Any profit-making company has to invest its profits, and it makes eminent sense not to put all eggs in one basket. Moreover, bullion is not very strong and shares are volatile. Government bonds and fixed deposits are at best stable, the commodity market is seeing ups and downs and real estate is subject to various intricate market dynamics. It is not a good idea to depend on any single market when it comes to investment.
2. There is a lot of talk about a 'bubble' in the Indian real estate sector. Many are in a watch-and-wait mode, waiting for prices to crash. How do you see it?
When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof - beyond all affordability the current sentiment in the Indian real estate market is one of quiet outrage over the skyrocketing prices, but demand is still strong. It pays to keep in mind that increased incomes and strong economic fundamentals help balance the scales to a significant extent. We can talk of a 'bubble' when transactions slow down significantly or even grind to a complete halt. That would certainly indicate a dire need for prices to come down.
3. Facility management seems to be the new mantra among developers. What exactly does it entail and what is its future in India?
Developers who offer facility management in their projects do so because they wish to attract quality clients and establish a professional image. Obviously, in today's ever-changing scenario, what constitutes cutting-edge facility management is a very fluid concept. Some of the most advanced projects now offer concepts such as Computer Aided Facilities Management, in which computers are used to automate the collection and maintenance of facilities management information. In India, facility management is still a small sector in terms of volume. However: it is now recognized as a significant component in any real estate project established to garner high returns on investment. We see immense scope for expansion of this sector in context with special economic zones (SEZs), integrated townships, hospitals etc.
4. Is it true that Indians investing in property are getting younger almost every year?
Property buyers in the contemporary Indian context are certainly getting younger The average age of the Indian property buyer has dropped from 45 to 32 over the last decade. This is not surprising, considering that a majority of the young Indian entrepreneurs and IT employees are personally wealthy in their own right by age 32. This new, young breed of property buyers has its collective eye trained on stability and upward mobility in the future.
Courtesy:HT dtd 25-02-08
Tuesday, February 26, 2008
Monday, February 25, 2008
FAQs On The Reality Market by Anuj Puri Jones Lang LaSalle Meghraj
1. Many large business entities are now branching out into real estate development, while real estate companies are entering other areas. What is the reason behind all this?
Diversification is a natura1consequence of India's economic boom. This boom is happening across various sectors, not only one. The action is spread across telecom, IT/ITeS (Information technology and IT-enabled services) retail, logistics and various other sectors. Any profit-making company has to invest its profits, and it makes eminent sense not to put all eggs in one basket. Moreover, bullion is not very strong and shares are volatile. Government bonds and fixed deposits are at best stable, the commodity market is seeing ups and downs and real estate is subject to various intricate market dynamics. It is not a good idea to depend on any single market when it comes to investment.
2. There is a lot of talk about a 'bubble' in the Indian real estate sector. Many are in a watch-and-wait mode, waiting for prices to crash. How do you see it?
When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof - beyond all affordability the current sentiment in the Indian real estate market is one of quiet outrage over the skyrocketing prices, but demand is still strong. It pays to keep in mind that increased incomes and strong economic fundamentals help balance the scales to a significant extent. We can talk of a 'bubble' when transactions slow down significantly or even grind to a complete halt. That would certainly indicate a dire need for prices to come down.
3. Facility management seems to be the new mantra among developers. What exactly does it entail and what is its future in India?
Developers who offer facility management in their projects do so because they wish to attract quality clients and establish a professional image. Obviously, in today's ever-changing scenario, what constitutes cutting-edge facility management is a very fluid concept. Some of the most advanced projects now offer concepts such as Computer Aided Facilities Management, in which computers are used to automate the collection and maintenance of facilities management information. In India, facility management is still a small sector in terms of volume. However: it is now recognized as a significant component in any real estate project established to garner high returns on investment. We see immense scope for expansion of this sector in context with special economic zones (SEZs), integrated townships, hospitals etc.
4. Is it true that Indians investing in property are getting younger almost every year?
Property buyers in the contemporary Indian context are certainly getting younger The average age of the Indian property buyer has dropped from 45 to 32 over the last decade. This is not surprising, considering that a majority of the young Indian entrepreneurs and IT employees are personally wealthy in their own right by age 32. This new, young breed of property buyers has its collective eye trained on stability and upward mobility in the future.
Courtesy:HT dtd 25-02-08
Diversification is a natura1consequence of India's economic boom. This boom is happening across various sectors, not only one. The action is spread across telecom, IT/ITeS (Information technology and IT-enabled services) retail, logistics and various other sectors. Any profit-making company has to invest its profits, and it makes eminent sense not to put all eggs in one basket. Moreover, bullion is not very strong and shares are volatile. Government bonds and fixed deposits are at best stable, the commodity market is seeing ups and downs and real estate is subject to various intricate market dynamics. It is not a good idea to depend on any single market when it comes to investment.
2. There is a lot of talk about a 'bubble' in the Indian real estate sector. Many are in a watch-and-wait mode, waiting for prices to crash. How do you see it?
When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof - beyond all affordability the current sentiment in the Indian real estate market is one of quiet outrage over the skyrocketing prices, but demand is still strong. It pays to keep in mind that increased incomes and strong economic fundamentals help balance the scales to a significant extent. We can talk of a 'bubble' when transactions slow down significantly or even grind to a complete halt. That would certainly indicate a dire need for prices to come down.
3. Facility management seems to be the new mantra among developers. What exactly does it entail and what is its future in India?
Developers who offer facility management in their projects do so because they wish to attract quality clients and establish a professional image. Obviously, in today's ever-changing scenario, what constitutes cutting-edge facility management is a very fluid concept. Some of the most advanced projects now offer concepts such as Computer Aided Facilities Management, in which computers are used to automate the collection and maintenance of facilities management information. In India, facility management is still a small sector in terms of volume. However: it is now recognized as a significant component in any real estate project established to garner high returns on investment. We see immense scope for expansion of this sector in context with special economic zones (SEZs), integrated townships, hospitals etc.
4. Is it true that Indians investing in property are getting younger almost every year?
Property buyers in the contemporary Indian context are certainly getting younger The average age of the Indian property buyer has dropped from 45 to 32 over the last decade. This is not surprising, considering that a majority of the young Indian entrepreneurs and IT employees are personally wealthy in their own right by age 32. This new, young breed of property buyers has its collective eye trained on stability and upward mobility in the future.
Courtesy:HT dtd 25-02-08
Sunday, February 24, 2008
PRE-ENGINEERED BUILDINGS: WAY TO GO?
The Conventional construction industry in the country today is undergoing a change, with one of its most visible aspects being the emergence of Pre-Engineered Buildings (PEB).
Different from the usual concrete buildings with asbestos-type roofs and walls, a pre-engineered building is made of steel panels. In fact, a PEB is nothing but a steel-framed building with pre-designed components to best suit client requirements.
First introduced in the US, the PEB technique of construction is more popular with industrial townships. The National Highway-8 that leads from Delhi to Jaipur best exemplifies this trend; you can see a number of such buildings dotting the stretch in and around Gurgaon.
Leading the list of PEB's advantages is efficiency Says Mohit Khanna, Director, Lloyd Insulations, which in 1997 became the first Indian company to introduce the concept of PEB, "The use of pre-set methods for welding and predetermined stock sizes reduce the time taken for construction and fabrication," Khanna says.
PEBs are also said to be high on quality
Neeraj Gautam, who heads PEB sales for the northern region at Lloyd Insulations, says, "Since fabrication is done in a controlled and process oriented environment and the material used (steel plates) is sourced from quality labels, PEBs are real value for money"
"Though the initial cost of a PEB turn out to be 5 tol0 per cent higher than conventional buildings, it evens out when it comes to maintenance and early revenue generation," he says.
In India, the major PEB players are Lloyd Insulations, Kirby Buildings and Tiger Steels. According to Prashant Ranjan, manager, sales, Kirby Buildings, PEBs are the future of the construction industry
"In the past few years this concept has picked up quite well. We entered the market in 1990 with a manufacturing capacity of 36 tonnes per annum, and today it has increased to 2 lakh tonnes," he says.
PEB advocates also speak up for its safety.
Construction consultant Manish Shah says, "These buildings are designed in a special a way which makes them safer than conventional buildings, especially in the face of an earthquake."
www.zameen-zaidad.com
Courtesy: HT dtd:- 18thFeb 2008
Different from the usual concrete buildings with asbestos-type roofs and walls, a pre-engineered building is made of steel panels. In fact, a PEB is nothing but a steel-framed building with pre-designed components to best suit client requirements.
First introduced in the US, the PEB technique of construction is more popular with industrial townships. The National Highway-8 that leads from Delhi to Jaipur best exemplifies this trend; you can see a number of such buildings dotting the stretch in and around Gurgaon.
Leading the list of PEB's advantages is efficiency Says Mohit Khanna, Director, Lloyd Insulations, which in 1997 became the first Indian company to introduce the concept of PEB, "The use of pre-set methods for welding and predetermined stock sizes reduce the time taken for construction and fabrication," Khanna says.
PEBs are also said to be high on quality
Neeraj Gautam, who heads PEB sales for the northern region at Lloyd Insulations, says, "Since fabrication is done in a controlled and process oriented environment and the material used (steel plates) is sourced from quality labels, PEBs are real value for money"
"Though the initial cost of a PEB turn out to be 5 tol0 per cent higher than conventional buildings, it evens out when it comes to maintenance and early revenue generation," he says.
In India, the major PEB players are Lloyd Insulations, Kirby Buildings and Tiger Steels. According to Prashant Ranjan, manager, sales, Kirby Buildings, PEBs are the future of the construction industry
"In the past few years this concept has picked up quite well. We entered the market in 1990 with a manufacturing capacity of 36 tonnes per annum, and today it has increased to 2 lakh tonnes," he says.
PEB advocates also speak up for its safety.
Construction consultant Manish Shah says, "These buildings are designed in a special a way which makes them safer than conventional buildings, especially in the face of an earthquake."
www.zameen-zaidad.com
Courtesy: HT dtd:- 18thFeb 2008
Saturday, February 23, 2008
THE BRIGHTER SIDE
The negative flutter in the stock markets caused some anxiety to home buyers. After hearing various viewpoints about the real estate market crashing if the Sensex plunges futher, one should point out that real estate is an asset class, which is not directly impacted when the bears take over.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
Friday, February 22, 2008
THE BRIGHTER SIDE
The negative flutter in the stock markets caused some anxiety to home buyers. After hearing various viewpoints about the real estate market crashing if the Sensex plunges futher, one should point out that real estate is an asset class, which is not directly impacted when the bears take over.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
WHEN FAITH FUELS PROPERTY
SO YOU thought lifestyle was always about saunas and swimming pools, schools or golf courses ? Wrong.
Faith, they say, moves mountains. It certainly is now moving real estate developers, who are finding fortunes in targeting customers who are pilgrims or spiritualists.
Temple towns are witnessing a boom that nearly matches the growth in swanky metro suburbs. Haridwar, Rishikesh, Shirdi, Tirupait, Guruvayoor, Vrindavan and Mathura are among the places where many customers are seeking a second home and pureplay investors are happy to join the rush.
Apart from drawing devotees by the thousands, these places are also attracting home seeking who are looking for a peacefull life without having to compromise on the need for modern amenities.
For example, the Geetanjali Residency located next to Swami Ramdev’s Patanjali Yog Peeth premises just outside Haridwar.
Alka India Pvt. Ltd.’s Tridev city is all set to develop a chain of villas and duplexes in the same holy town. Also located on the banks of the Ganga is AEZ Group’s Aloha Rishikesh, just a mile away from the foothill town’s landmark Laxman Jhoola. Townships like Vedic Village and Divine City championed by local developers are also in the offing at Haridwar. And with the ambitious Ganga Expressway project in Uttar Pradesh getting underway, more holy towns along the sacred river are expected to find a place on the realty map.
In Vrindavan and Mathura, you will come across Suncity’s township at Mathura called Brij Darpan that aims to recreate the life of Lord Krishna over a huge 5,000 acre patch. Other developments in the area include Radhika Kunj by Ravindra Home Developers as well as townships by Magsons and Prabhatam Buildwell.
Magarpatta city outside Pune, promises a life that “revolves around the Rutu Chakra—the eternal time wheel of nature.”
Senior citizens seeking solace and salvation in their older years are a key constituency for spiritual real estate. The Tirupati Urban Development Authority is planning a township spread over 145 acres at Surappakasam village near the holy town, with an eye on “NRIs and millionaires wishing to spend their twilight years at the abode of Lord Venkateswara.
Due to such developments, property prices in these places have gone through the roof in the past few years, having doubled or more at most of these places. For instance, rates in Guruvayoor in Kerala have increased from Rs 700 per sq .ft. in 1990 to Rs 2,500 per sq. ft. in 2007.
Says Sanjeev Aeren, managing director of the AWZ Group, which has a project in Rishikesh, “Religious passion has emerged as a new factor pushing the growth of the real estate sector. The spiritual angle has always been a big draw for tourists coming to India. For us, it is also a marketing initiative that helps differentiate as well as attract like-minded people. As a developer, we get a confirmed customer and he gets some thing that he is looking for.”
Ashok Bansal , Director, Suncity Projects, says that such townships are ideal for those looking to lead a peacefull life, considering the rising stress levels today. So much so that private townships in places other than the holy towns are also incorporating features related to faith. Take the example ofpranayam, a 20-acre township coming up in Faridabad, which includes a meditation centre to be managed by Sri Sri Ravi Shankar’s Art of Living Foundation.
“Apart from the name, the meditation centre will act as a big draw in marketing the township. There are a substantial number of buyers who do not mind paying for facilities like this. And with our daily life becoming more of a grind, customers are always on the lookout for something that is linked to spirituality,” says Arjun Puri, Director, Puri Construction, the developer of Pranayam.
Courtesy:HT Dated 18 feb 2008
Faith, they say, moves mountains. It certainly is now moving real estate developers, who are finding fortunes in targeting customers who are pilgrims or spiritualists.
Temple towns are witnessing a boom that nearly matches the growth in swanky metro suburbs. Haridwar, Rishikesh, Shirdi, Tirupait, Guruvayoor, Vrindavan and Mathura are among the places where many customers are seeking a second home and pureplay investors are happy to join the rush.
Apart from drawing devotees by the thousands, these places are also attracting home seeking who are looking for a peacefull life without having to compromise on the need for modern amenities.
For example, the Geetanjali Residency located next to Swami Ramdev’s Patanjali Yog Peeth premises just outside Haridwar.
Alka India Pvt. Ltd.’s Tridev city is all set to develop a chain of villas and duplexes in the same holy town. Also located on the banks of the Ganga is AEZ Group’s Aloha Rishikesh, just a mile away from the foothill town’s landmark Laxman Jhoola. Townships like Vedic Village and Divine City championed by local developers are also in the offing at Haridwar. And with the ambitious Ganga Expressway project in Uttar Pradesh getting underway, more holy towns along the sacred river are expected to find a place on the realty map.
In Vrindavan and Mathura, you will come across Suncity’s township at Mathura called Brij Darpan that aims to recreate the life of Lord Krishna over a huge 5,000 acre patch. Other developments in the area include Radhika Kunj by Ravindra Home Developers as well as townships by Magsons and Prabhatam Buildwell.
Magarpatta city outside Pune, promises a life that “revolves around the Rutu Chakra—the eternal time wheel of nature.”
Senior citizens seeking solace and salvation in their older years are a key constituency for spiritual real estate. The Tirupati Urban Development Authority is planning a township spread over 145 acres at Surappakasam village near the holy town, with an eye on “NRIs and millionaires wishing to spend their twilight years at the abode of Lord Venkateswara.
Due to such developments, property prices in these places have gone through the roof in the past few years, having doubled or more at most of these places. For instance, rates in Guruvayoor in Kerala have increased from Rs 700 per sq .ft. in 1990 to Rs 2,500 per sq. ft. in 2007.
Says Sanjeev Aeren, managing director of the AWZ Group, which has a project in Rishikesh, “Religious passion has emerged as a new factor pushing the growth of the real estate sector. The spiritual angle has always been a big draw for tourists coming to India. For us, it is also a marketing initiative that helps differentiate as well as attract like-minded people. As a developer, we get a confirmed customer and he gets some thing that he is looking for.”
Ashok Bansal , Director, Suncity Projects, says that such townships are ideal for those looking to lead a peacefull life, considering the rising stress levels today. So much so that private townships in places other than the holy towns are also incorporating features related to faith. Take the example ofpranayam, a 20-acre township coming up in Faridabad, which includes a meditation centre to be managed by Sri Sri Ravi Shankar’s Art of Living Foundation.
“Apart from the name, the meditation centre will act as a big draw in marketing the township. There are a substantial number of buyers who do not mind paying for facilities like this. And with our daily life becoming more of a grind, customers are always on the lookout for something that is linked to spirituality,” says Arjun Puri, Director, Puri Construction, the developer of Pranayam.
Courtesy:HT Dated 18 feb 2008
Wednesday, February 20, 2008
READY FOR A HOME LOAN? CHECK THIS FIRST
Have the recent cuts in home loan rates by leading financial institutions in the country spurred you on to apply for a home loan? Go ahead, but before you finalise a deal, here are some points you should take into consideration:
1. Speak to your bank about home finance only after you have identified the property you want to buy. Note that some banks do not readily finance a self-constructed property. “Also, if the property is very old or is being developed by a relatively unknown builder, the bank might have an issue with providing a home loan,” says Harsh Vardhan Roongta, Chief Executive Officer, Apnaloan.com.
2. For loan eligibility, talk to several banks to find out which one can give you the maximum amount. Try to seek a bank that allows you to club the incomes of your other close relatives (parents, siblings, children etc.) to increase your loan eligibility.
3. Once you finalise your dream home, the bank will get the cost of the property evaluated by its own experts. Usually, the evaluation throws up a price different (in most cases, lower) from the actual price you are paying for the property. “In such cases, you will need to shell out the difference between the actual price and the bank's valuation as additional down payment. It makes sense to ask the bank to value the property (on payment of a small fee), especially if it is an old re-sale property,” says Roongta.
4. Shortlist four to five banks and get them to compete for your loan. The cost of your loan also depends a lot on your ability to negotiate.
5. Apart from interest rates, also check various charges like processing fees, pre-payment charges, legal fees, valuation fees and other hidden costs. Take all these factors into account before choosing your bank.
6. The processing fee varies from bank to bank, but is usually around 0.50 to 1.00 per cent of the total housing loan amount. It is non-refundable. Don’t believe the agents who tell you otherwise.
7. When opting for a 'fixed interest loan,’ remember that in some cases, it may remain fixed only for a certain period of time, as the bank may have the right to arbitrarily change even the so-called ‘fixed rate’. So, probe further and read the fine print before you sign on the dotted line.
8. If you have signed a floating rate loan, check whether the rates of your chosen lender had moved down in the years when interest rates were dropping. “This is a fair indicator of what you can expect as (not if) and when the interest rates start moving down and the time comes for the bank to pass on the benefit to you,” advises Roongta.
9. It is advisable to take a life insurance and critical illness policy along with a home loan. Life insurance policies provide monetary benefit in case of an unfortunate incident like death and ensure that your family members inherit your home — not your home loan.
http://www.zameen-zaidad.com
Courtesy:HT dtd.18-02-2008
1. Speak to your bank about home finance only after you have identified the property you want to buy. Note that some banks do not readily finance a self-constructed property. “Also, if the property is very old or is being developed by a relatively unknown builder, the bank might have an issue with providing a home loan,” says Harsh Vardhan Roongta, Chief Executive Officer, Apnaloan.com.
2. For loan eligibility, talk to several banks to find out which one can give you the maximum amount. Try to seek a bank that allows you to club the incomes of your other close relatives (parents, siblings, children etc.) to increase your loan eligibility.
3. Once you finalise your dream home, the bank will get the cost of the property evaluated by its own experts. Usually, the evaluation throws up a price different (in most cases, lower) from the actual price you are paying for the property. “In such cases, you will need to shell out the difference between the actual price and the bank's valuation as additional down payment. It makes sense to ask the bank to value the property (on payment of a small fee), especially if it is an old re-sale property,” says Roongta.
4. Shortlist four to five banks and get them to compete for your loan. The cost of your loan also depends a lot on your ability to negotiate.
5. Apart from interest rates, also check various charges like processing fees, pre-payment charges, legal fees, valuation fees and other hidden costs. Take all these factors into account before choosing your bank.
6. The processing fee varies from bank to bank, but is usually around 0.50 to 1.00 per cent of the total housing loan amount. It is non-refundable. Don’t believe the agents who tell you otherwise.
7. When opting for a 'fixed interest loan,’ remember that in some cases, it may remain fixed only for a certain period of time, as the bank may have the right to arbitrarily change even the so-called ‘fixed rate’. So, probe further and read the fine print before you sign on the dotted line.
8. If you have signed a floating rate loan, check whether the rates of your chosen lender had moved down in the years when interest rates were dropping. “This is a fair indicator of what you can expect as (not if) and when the interest rates start moving down and the time comes for the bank to pass on the benefit to you,” advises Roongta.
9. It is advisable to take a life insurance and critical illness policy along with a home loan. Life insurance policies provide monetary benefit in case of an unfortunate incident like death and ensure that your family members inherit your home — not your home loan.
http://www.zameen-zaidad.com
Courtesy:HT dtd.18-02-2008
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