Real Estate Investment and FDI in India

The real estate market in India has become the most desirable investment era. It has huge investment potential in residential real estate, commercial property, retail real estate, and health care etc. Reason is, fast appreciation of the property value, FDI, economic growth of India, easy policies by government and growth in other sectors like IT, education, medical and urbanization is playing in an important part in growth of real estate sector, and increasing demand of commercial and residential property. Real estate is participating an important role in the growth of Indian economy. 

 

When the economy of all leading developed countries is falling down, the realty sector in India is reaching at the new heights. There was a fall in 2005 but after that it has gained good acceleration again. Again in 2007-2008, real estate market in India was falling but after that things got much better as the property rates increased, and now the real estate market is at high level. 

 

After passing the Foreign Direct Investment (FDI) bill in parliament, foreign investors are looking towards the Indian retail market for investment. It is not only for investment in retail sector but in other industries and economic sectors as well. Ultimately, the growth in other sectors leads to appreciation in real estate sector and also, leads to increase in the demand of property in India. With foreign investors, the domestic investors also find the real estate investment as the most profitable option with the least probability of loss. 

 

As the population of India is growing year over year the demand for residential property in India is increasing gradually. The development in other industries like Automobile and IT are contributing in the growth of demand of luxuries real estate in India. Easy home loan policies are also encouraging the demand of property and lead to growth in real estate market. Industrialization is playing an important role in the growth of real estate demand. 

 

Nowadays, real estate sector is adopting advanced technology in construction, designing, security, home creation, offices and commercial spaces to attract the investors. For example, a few days ago, in Jaipur a building is constructed only in two days. By this example, you can have an idea about the future of real estate in Jaipur, as well as in other cities of India. 

 

Depreciation in the value of India rupee is also one of the reasons, which attracts the foreign investors and NRIs for investment in Indian real estate. NRIs those are looking for retirement homes in India have a nice choice to make their decision in terms of investment, cost, necessary amenities and homely surroundings.

Real Estate India : Forecast for 2013

According to the experts report, in last three quarters of 2012, the Indian GDP was revised downward and in 2013 it will be lower. The economy of India will certain improve in 2013, with a homologous gain in real estate momentum. The Indian real estate market will recover in 2013 as the policy and regulatory environment is excepted to have positive impact on the real estate sector.

The passage of land acquisition bill and property regulation act will help to improve the real estate market. The foreign investment in multi-brand retails will increase the demand of commercial property in India.

Due to the fall in demand and sales, and rising construction coast,the year 2012 disappointing the real estate developers, builders and investors. The revenue of the many real estate companies decreases up to 3.8% in the second quarter from year 2011. 
 

Residential real estate in 2013

The prices of residential property in tier I cities like mumbai, delhi had crossed the affordability limit of buyers . This factor will help the tier II to cities, the demand of property in tier II cities like Jaipur, Bhopal, Kanpur, Pune, etc., was increased in 2012 and it will gain more acceleration in 2013.

Since builders have to obtain 57 permissons to start construction of a project and mostly, this process takes two year. During this time, the acquisition cost and construction cost of a project rises. Builders are already beset with the increased cost. Therfore, the lowering the sales prices in 2013 will increase the sales residential real estate. 
 

According to the report, the projects that providing different products at better cost will accepted buy consumers in 2013. The builders, those are launching mass housing project with Rs. 4000 to Rs. 6000 per square feet in tier II cities and projects with Rs. 16500 to Rs. 20000 per square feet in the cities like Delhi, Mumbai central will gain good demand. 
 

Builders may be give discount and other attarctive offers on pre launch bids to boost the sales in intial months. Builders with large real estate project with share of unsold inventory will be more under pressure to give discount than those small projects builders and limited inventories.

In 2013, we will see the increase in residential real estate launches in the most of cities of the India. But, there will be declination in launches in Bangalore and chennai than 2012 because in 2012 these two cities make record history in term of the numbers of launches.

Commercial real estate in 2013

Recently, FDI in multibrand retails is approved in the Parliament, it will attract the overseas investors to invest in India and it will also boost the demand of commercial real estate in India. As well as, RBI decrease the interest rate in up coming months, it will benefits the builders, developers and consumers. 
 

In 2012, in major cities like Delhi, Chennai, Mumbai the commercial space absorption was about 73% of total commercial space absorption in India and in 2013 it will be about 76%. In terms of commercial property investment Mumbai, Delhi NCR and Bangalore will be on top. Commercial real estate in cities like Jaipur, Indore and Bhopal will also boom in 2013. The commercial real estate in cities like Gurgaon and Noida, the absorption share of office spaces will be about 80%. 

 

Conclusion

Finally year 2013, bring the lots new opportunities in both commercial and residential real estate investment. You can also see the new face of retail real estate and new segments residential, and commercial real estate with lucrative investment opportunities.

How to Invest in Commercial Real Estate

Investment in commercial property in India is a great way to extend your investment assets and also, to accelerate your income. The prices of commercial real estate at good location can increase dramatically. A leased or rented commercial property can provide steady cash flow to your financial pursuit, retirement and for investing. Here are some tips for commercial property investment in India that an individual investor can use.

Use your personal knowledge

You should use your own knowledge before buying a commercial property in India. You should try to find the property at your known area or at another location where you are familiar with the market, then decide, which commercial property you should buy and where to buy.

Keep patience

The commercial property deal takes some more time than residential property deal. You should take your time and be patient before buying the commercial property in India. Maybe you have huge stuff, it's doesn't mean you are ready for investment. You should wait for the perfect time for investment.

Commercial property in Jaipur

Build a healthy Network

It is an important part of an investment. Suppose that, you are form Jaipur, then make trustworthy relations with builders in Jaipur, Realtors, real estate developers and with other business associates like lawyers, banking associate, they can help you find the great deals and in decision making.

Finance

A commercial property needs much more advance money than a single residential property in India. The commercial property loan is completely different from a home loan. The down payment needed much higher percent and if you don’t have sufficient amount, then the deal may go down. Therefore, before final good deal arrange sufficient money. If you don’t have enough amounts, then you can arrange it from someone else. You may knock at private financiers.

Set your Goal

As a commercial property investor you must be able to look at the impact of short-term and long-term investment prospects. Since the changes impact the value of a property, therefore, if the commercial property is well connected with transportation and other commercial amenities, then according to business prospects it will become more profitable and other large investors can often be predicted with some success.

Don't go with a single investment

Don't invest all your capital in a single commercial real estate because, if the market takes U-turn then it may be risky. You should invest only one part of your capital to give support to other investors holding. You should invest in multi properties like residential property, office spaces, raw land and hotels, etc.

Real Esate Investment: Important Things you must know

There are many different ways to making money from investment in real estate. Finding the perfect property investment tactics is all about matching the right real estate problem with the right investment solution. Here, I am explaining the few strategic tips for property investment.

First thing, Decided the kind of property, residential or commercial, then choose the perfect location according to the kind of property, then choose the right property to buy and try to buy at least 20% less rate than market value, then make some necessary changes in the property to make it more valuable. Find the correct person, who may be interested to buy your property with a wrap strategy, then your property's value will be higher up to 30% than market value. You can also rent out your property. If you already rent out your property, then you can increase the rent amount by providing more facilities to your tenant.

Some people believe in buying the properties, those value increases in short time due to market broad- market evolution. It is also a good idea, but it is hard to know which area will soon appreciate. That's why, it may be risky somewhere.

Buy and Hold Technique

It is one of the effective ways to make huge stuff by property investment. There are two ways of holding one is held for the long-term and second is short-term, which is also called "flip".

• Long-term

Suppose that, you buy a property in Jaipur and hold it up to more than five years. In these years, you will find the value of your property will be doubled or more.

• Short-term or Flipping

If you want to buy a property and selling of that property as soon as possible is called flipping. You can also sell your property it before acquiring it or simultaneously with buying it.

Renovating the Property

You can also increase the value of your property by renovating it, then you can make a good stuff by selling that property for a good amount.

Leasing the Property

You can also offer you property to lease and can offer to buy that property to your tenant.

Commercial Property in Jaipur

Sell property at Finance

You can sell your property at finance. You can take a lump sum settlement amount from the buyer and the remaining amount in installment.

Cash Availability

If you are going to buy real estate foreclosures, then you will require huge amount to pay, while if you are going to property from a builder or in an auction, then you will require less amount. If you have good stuff then it will easier to go for investment.

Your Attitude

You should also think about your attitude about real estate investment. Are you well skilled for it not? Your way of interaction with other people also matter when you're buying or selling a property. If you are going to sell a property after long hold, then property ownership must be in your favor. You should have the capability of negotiation.

Living standards in flats and their advantages

Living in an apartment or flats has now increased all over the world, including India. The changes in the lifestyle of people are setting new trends of living in India.

Jaipur is also becoming metro city and getting rapid development in industries, education etc., thus, the real estate sector and property in Jaipur are at boom. Real estate builders in Jaipur and their projects are expanding in almost all the locations of Jaipur.

Migration of people from villages and small towns are creating demands of accommodation facilities in cities. Increase in the prices of land and independent houses, has generated the need of apartment and flats in Jaipur. 

Flats in Jaipur

Advantages of Apartment:--

There are various advantages of an apartment over independent houses such as:-

1. Mini World – Most of the apartments in big complexes provides all the best possible facilities like playgrounds, garden, gym, swimming pool, clubs etc. to make a complete package of living standards.

2. Facilities – Now a day, the scarcity of water and shortage of electricity is one of the major problems in India. Facilities like power supply backups and water tube-wells are provided in apartments that are mostly not available in independent house or costly to implant them.

3. Convenience - These apartments or flats are mostly built in prime locations which are connected with markets, schools, airport, station etc. which helps us in day to day life.

4. Security - In case you are out of your house for job tour or some other purpose, an apartment is more safe and secure than an independent house due to advanced security available in the apartments.

The multi-story buildings have numerous flats that are able to provide quality shelter to large number of people. The apartments are available in different sizes. Most of the builders in Jaipur offer 1BHK, 2BHK, 3BHK, 4BHK flats etc. as per the requirement of any family.

Things to remember before investing in a rental property in Jaipur

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In the last few years, Jaipur real estate market shows great potential in it. There is nothing like finding a great property deal. If you follow the correct way, then doesn't matter how much you are experienced and what is the level of your investment, your chance of success will increase.

When you are going to buy a property in Jaipur for renting purpose then you should have some knowledge about maintenance issues. If you don't have any idea about the renovation or maintenance cost, then it will be tough to turn the investment in a healthy profit. The knowledge about maintenance cost will help you to bargain the maintenance and replacement cost.

property in Jaipur

Real estate marketers help you find the potential buyer and market your property in Jaipur. For this, you have to pay them. You should list the expenses including all marketing expenses, electricity, water, sewage and maintenance cost, etc. And, when you sell out your property make sure your all expenses are covered in it or not.

If you are going to buy a renting property in Jaipur, then you should receive the current rent copies and take a look at the security deposit section. If there is any security deposit, you must claim for it from the seller because when the tenant will leave that property, he will claim for that money to you.

Make about the hidden charges or fees before buying a rental property because the fees on multi-unit properties are different from a single property. So make sure about them, before arranging the finance.

Real Estate India|India Properties-Indian Property News/Updates Site - propahmedabad.blogspot.com: Property investment hotspots for NRIs in India

Real Estate India|India Properties-Indian Property News/Updates Site - propahmedabad.blogspot.com: Property investment hotspots for NRIs in India

Builders in Jaipur : Shaping your Dreams

“Pink city”, another name of “Jaipur” is well known in the whole world for tourist places, forts, and heritage palaces. It is also famous for its gems, diamonds and jewelry business. As well as, it is is the part of “Golden Triangle” and well connected to the metro cities by express ways. That's why, in last the few years Jaipur real estate developing in the prodigious manner. And, nowadays, it has become the most preferred destination for new homebuyers and real estate investors.

Builders and developers in Jaipur are offering various kinds of world class residential and commercial projects to the real estate seekers. People can buy villas, flats, independent homes, as well as, commercial property from these builders. They are also offering investment and partnership opportunities to the interested investors. 

Residential Property

 

The agenda of the builders in Jaipur is providing the lucrative properties with splendid amenities. They are offering residential and commercial properties at all prime locations like Shyama Nagar, Mansarovar, Ajmer Road, Tonk Road, Jagatpura and at many other places. Nowadays, these the are most favorite destinations of the people to buy thier dream homes.

Since, in the last few years, industrialization in Jaipur at the peak, the demand of properties has been increasing gradually. Many IT companies and other MNCs want to establish their business here. Also, it becomes the one of the top cities in providing jobs. As well as, the Jaipur has become the favorite educational hub in India. Students from many state like Bihar, Uttar Pradesh, etc., immigrating here for higher education. These all the factors are leading to an eventual escalation in Jaipur real estate.

Commercial Property

If you are new in Jaipur city and want to buy a property or want to invest in property in Jaipur, then you should consult about it to a reputed and reliable builder here. Maybe you are not enough aware with the real estate market or if you had lack of knowledge about tactics of real estate investment, then it may be risky to taking chances without consultation. They will help you understand the scenario of the real estate market and to choose the right property for investment.