Finding a home is now just a click away

Gone are the days when people solely depended on ‘TO LET’ boards, property consultants or classified ads in a popular daily to find a home on rent or lease. With technological advancement, finding a house of one’s choice has now become less cumbersome.

Internet provides the best and reliable option to find rental homes and there has been several region-specific websites have cropped up which provide accurate choice in terms of accommodation, budget, area and other amenities.

The choice has become so narrow that people are now putting up various demands before finanlising a home. “Our clients even ask for the details about next door neighbours, their economic status, number of car parking and facilities available in the apartments for children etc, which will make the search more difficult for us,” says Mani Priyan, CMD, Vasavi Consultants in Chennai.

He agrees that online sites do provide much more options for people to zero-in on their rental needs or owners to find suitable tenants.

For students or working professionals who are looking for flats in major cities across India, online search option is a boon as they can fix up homes by sitting at their work places itself.

In an ideal renting site, one can find the exact location of the property with available facilities such as transport, schools, hospitals, infrastructure such as banks, shops etc and price listing of each property.

Some sites even provide verified listing of the property or videos of house/flat to cater to the need of tenants. 

“Listings of property with good images or videos get good number of views and bookings. It is indeed a great idea when a house owner offers a virtual tour of his apartment or house on lease or rent,” Vibha Sridhar, Chief Executive Officer of EasyRenting says.

To make the search more enjoyable and less time consuming, her site has recently launched verified listing property facility in Delhi, Noida, Bangalore and planning to launch similar facilities across India in the coming months.

To stay in the competition, some rental sites even send their team to clients’ place to get the picture or video of the property to show in the listing, apart from the accommodation details, the surrounding areas, approach roads, neighbourhood, next door neighbour/s, sanitation and children’s play area.

Such minute details will reduce the number of visits to the property sites by home seekers and make the search more specific.

“We have seen a rental ad about a property in Iyyappanthangal in a famous rental site. The advertiser gave a photo of the building but did not give details like proximity from the main road etc. When we reached the property, though we liked the flat, the infrastructure is awful and the property is 3 km from the main road with no transport facility to the main road. The approach road is also not laid properly. We went to three other properties, and found nothing was in our favour. We lost precious time and energy in finding a right home for us,” says Geeta Vasudevan, who works for TCS and looking for a 2 BHK in Porur area.

“Tenants always look for comfort, security and convenience when they hunt for an apartment. Our team goes to the location, takes videos of the property and then uploads the same on our site. This helps prospective tenants to get a clear picture of the property,” Vibha adds.

When a potential client virtually sees and gets a feel of the property, it becomes easy for him to take a decision faster, and more so, accurately. So, house owners who intend to let out their property for rent in major cities will have an edge over others, when their listings have clear videos. Such facility benefits property owners as well as seekers.

IT/IteS holds the key for revival of commercial real estate in 2014

With the real estate industry's fortunes are closely tied to the economic situation, a Knight Frank Research report has predicted that the revival of commercial real estate (CRE) in the second half of 2014 would largely depend on the results of the upcoming Parliamentary elections and the performance of IT/IteS as the fractured result would further take the economy to uncertainty mode.

“Increased likelihood of a fractured mandate in the upcoming general elections will put a question mark on the chances of economic stewardship in H2 2014.  With the economic momentum having slowed down drastically from over 9% in three years preceding the global financial crisis period to an estimated 4.8% in the current financial year, employment and income growth have suffered a severe setback,” the research firm said in its recent report on commercial real estate in India.

Pointing out that the slowdown has impacted the revenue growth and profitability in industries that drive office space demand, the report further stated that, “With the slowdown in IT/ITeS, manufacturing, BFSI, telecom and media sectors the rate of employee addition has declined drastically thereby adversely impacting demand for office space. Such a scenario raises a question mark over the fate of several CRE projects that are either completed or under construction across the urban landscape of the country. If at all there is light at the end of the tunnel, it cannot be assessed without conducting a threadbare analysis of the present financial health and future prospects of industries that consume office space.”

The report also noted that IT/IteS, compared to other sectors, still has the lions share in the commercial real estate. In the six major cities -- Mumbai, NCR, Bengaluru, Chennai, Hyderabad and Pune -- the IT/ITeS has absorbed 52% of the total office space during the last four years till 2013. In other words, the growth prospect of IT/ITeS sector has direct impact on the growth of CRE.

Blaming the multiple offices led to an increase in administrative costs and a bloated wage bill that took away the cost advantage India enjoyed in the global IT/ITeS market, for that the 43% decline in the absorption of office space by the IT/IteS companies during FY11-13, the report asked the IT/IteS entrepreneurs ‘to rethink their strategy in order to protect margins and have a sustainable business model.’

The report also noted that austerity measures taken by IT/IteS companies to cut cost had an adverse impact on the commercial office space demand as companies preferred to operate from multiple locations to single location.

As for as manufacturing sector, the Knight Frank research report noted that a stable central government and an unambiguous policy framework would be the key catalysts for the resumption of investment in the sector.

On BFSI, which contributes 16 per cent of total absorption of commercial real estate spaces, the report hoped that the, “The issuance of banking licenses will encourage office space absorption in the BFSI stronghold of Mumbai and provide a significant buffer for its commercial office space market.”

Predicting that the commercial office space would clock the absorption to the tune of 35-36 mn.sq.ft.in 2014, the report said, “The absorption levels in the IT/ITeS sector would dominate other markets as the sector outlook has eased considerably. Among the IT/ITeS pack Pune and Chennai markets would witness the highest growth in office space absorption during 2014 while Bengaluru, which is the IT/ITeS capital of India, would see the highest quantum of office space absorbed. Mumbai and NCR, considered to be the prime real estate markets in India, are expected to grow at a steadier pace. Similarly the NCR office space market which has a healthy share of IT/ITeS and BFSI sectors is expected to grow at a conservative rate of 3.8% in 2014.”

India's most efficient green building inaugurated in Delhi

New Delhi: Touted to be the most energy efficient structure in India, Environment Ministry's new office in Delhi - a green building which has several measures to save energy -- is not only energy self-sufficient, but can also sell electricity to the central power grid.

Indira Paryavaran Bhawan

Prime Minister Manmohan Singh on Tuesday inaugurated the building and was briefed about the various energy saving and energy generating features of the building, 'Indira Paryavaran Bhawan', by Environment Minister Veerappa Moily and Ministry officials.

Speaking about the building, the Minister said, "This is a very unique structure and has five blocks named after the five elements of nature namely earth, air, sky, water and fire. This also corresponds to our senses."

He said the building with its large solar panels, is "self sufficient in terms of power and we can even sell some power to the grid. It is the best building in the country and has been developed by the CPWD."

Moily said the logo of the building has been designed by the National Institute of Design which captures "the concept of the green building. The motif is of tiger, which is our national animal along with the national aquatic animal gangetic dolphin."

He credited his predecessor and Rural Development Minister Jairam Ramesh for the idea behind setting up of the building, a PTI report said.

Moily termed the increasing use of diesel cars as a "matter of concern" and said the Government was promoting the use of CNG and PNG as fuel in cars.

He said a proposal to make vehicles adhere to Bharat 5 standards of emission was "making good progress" as the Government is keen to cut down pollution drastically. Speaking on the occasion, Ramesh said the "new building has been able to cut down on air conditioning load from 1,000 tonnes to 500 tonnes. If all buildings are built like this, we would be able to meet our greenhouse gas emission targets."

Indira Paryavaran Bhawan

Cutting air conditioning load by using innovative methods such as geo-thermal and solar energy will help in cutting energy requirements, he added.

How To Succeed In Property Investment

Getting into real estate investment without a proper understanding of what you aim to achieve is not advisable. There are many risks involved in real estate investment. However, with the right data and advice, you can definitely succeed in property investment, says Kishor Pate, CMD - Amit Enterprises Housing Ltd, who explains the nuances of realty investment.

 

To begin with, you should know what the odds are. The fact is that the chances for inexperienced property investors to either succeed or lose a lot of money are more or less evenly balanced. The likelihood of suffering a loss is greater if the investor does not have a good idea of the state of the local property market.

Before investing in property, make sure that you have enough insurance. Many investors who have succeeded in the property arena safeguard their investments by floating a nominal limited liability company for their activities. This is certainly an option, but not really a necessity unless you are playing for very high stakes and investing in multiple properties.

Advice To End-User Investors

Property investors actually fall into two broad categories: end users and pure investors. That's right - even end users can technically be described as investors in some cases. These individuals seek to make a percentage of profit on properties that they are themselves occupying. This may involve partial rental or sale of a home or office, retail or factory space. This is not a very common practice, and is usually seen only in cases where the part of the property being rented out or sold would otherwise remain idle and non-productive.

A more rewarding option is the sale of the entire property. This is sometimes done for reasons other than investment - the seller may be seeking larger or more luxurious premises, may be in the process of relocation, or may not be satisfied with the property for other reasons. There may also be a need to downgrade on certain expenses such as maintenance costs. If the sale of such a property is need-based, the profitability usually reduces since the seller needs to cash in within a limited period.

The kind of profit an end user can make on the sale of a property depends on the age and state of the property, its location and its inherent value on the market. A residence purchased five or ten years ago will have appreciated in value for the simple reason that property rates are constantly increasing. The value of the property will be even higher if the location is one in high demand.

The price a 'second-hand' property will fetch will also depend on whether or not it is well maintained, the facilities it offers, the area it is located in, etc.

Advice To Pure Investors

Exclusive or pure investors buy property for the exclusive purpose of earning a profit on them; they do not utilize the estate personally. The properties in question can be residential (flats, bungalows, row houses, duplexes, etc.), commercial properties (offices, factory sheds, etc.), retail (e.g. mall space) and non-developed or partially developed land.

Pure investors have a better chance of making a profit in their dealings simply because their options are wider. There is also no immediacy or urgency involved, since the basic objective is profit.
Investors of this kind should keep certain guidelines in mind:

• Location is everything. Even if rates are steeper in a preferred area, go for it. It will pay rich dividends in the final analysis.
• It is always more profitable to invest in properties under construction or still in the planning stage. By the date of actual completion, rates will tend to be higher.
• If one chooses to invest in residential real estate, the first preference should be towards flats that are located on the first floor. They should offer a good view and ventilation and, ideally, the use of a swimming pool, clubhouse and other trendy facilities. They should also be backed by adequate parking facilities. Most buyers do not make compromises on this last factor, even if they give consideration to the others. 
• Choose to invest in properties by reputable developers. The very name of a famous builder makes a definite difference on the bottom-line of the sales deed.

A quick note on ready for possession properties. Certain dynamics of the property market remain constant, so a profit is still possible. However, a 'readymade' property bought for the purpose of investment will have to be given sufficient time to appreciate in value. Also, certain modifications specific to a potential customer's needs may have to be made. The cost that this involves would have to be adjusted in the final amount.

Finally, if you are new at property investment and are utilizing a housing/investment loan in order to invest in property, ensure that the ratio of self-finance-to-loan amount is conducive to a future profit. Double-check all legal documents.

Property investment is not a game of blind man's bluff. Fortunes can be lost for many reasons - spurious documentation, faulty judgment, market crashes and other unforeseen circumstances. There are a number of bases that need to be covered to reduce the risk factor.

‘FAIRPRO 2014’ witnessed record footfall at CTC

The three-day property exhibition, Fairpro 2014, sponsored by Confederation of Real Estate Developers Associations of India (CREDAI) which began at Chennai Trade Centre in Nandambakkam on Febrruary 21, has seen a record footfalls this year and if one go by the information gathered at the ticket counters and builders, above 9000 people have visited the fair.

Almost all the stalls have seen people thronging and enquiring about the housing projects being offered by them. As most of the builders an developers belonged to CREDAI family, most of the projects were targetting high-end home seekers.

However, a few builders were offering houses less then Rs 10 lakh (one BHK of around 300 sq ft specification -all inclusive) on the outskirts of the city.

In his inaugural speech on Friday, Tamil Nadu Governor K. Rosaiah has asked the construction sector in the state to meet the needs of people.

“In the age of information, the needs of people have changed drastically and it has become imperative for builders to plan their real estate projects to suit their changing needs,” Rosaiah said.

Pointing out the real estate sector was going through a transition, he said, in terms of quality of construction, India was on par with international standards. He also lauded CREDAI for being the guiding force to the industry and ushering in transparency in the sector.

Proximity to bus and railway stations, availability of water and basic infrastructure of a good quality topped the list of requirements of property hunters who visited the exhibition on the first two days of the fair.

Speaking on the occasion, R. Venkatesan, member secretary, Chennai Metropolitan Development Authority, said, in 2013, they had issued planning permits for 528 special buildings and 79 multi-storey buildings.

Thanga Kaliyaperumal, secretary, housing and urban development department, was present. Sandeep Mehta, president, Credai-Chennai, welcomed the gathering. Suresh Krishn, secretary and R. Sivagurunathan, convener, Fairpro 2014, also spoke.

The fair culminated on 23^rd February (Sunday).

Advantages of Maharashtra Housing Regulation and Promotion of Construction, Sale, Management and Transfer Act

Maharashtra Housing (Regulation and Promotion of
Construction, Sale, Management and Transfer) Act

The introduction of the Maharashtra Housing (Regulation and Promotion of Construction, Sale, Management and Transfer) Act can potentially have a very positive impact. It is certainly a concept whose time has come, says Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India.

The biggest advantage that it offers to buyers as industry stakeholders is that there will be an arbitrating body available to attend to their grievances and redressals. There has to be accountability at all levels of the approval process, and it needs to include all stakeholders involved with real estate - including the architect, the contractor and the developer. The housing regulator can potentially benefit buyers as well as all other stakeholders.

As of today, the real estate industry faces issues in terms of insufficient transparency over cost and timeframes and also lacks sufficient depth when it comes to credible developers. Hopefully, the State-level housing regulator will implement systems which will mitigate risks and increase accountability. It can potentially boost transparency by standardizing practices, streamlining procedure systems and attending to consumer grievances in a decisive and timely manner. It will therefore help in bringing about a greater level of trust between buyers, sellers, developers and financial institutions that fund the real estate sector. It can also help curb speculative activity in the sector and contribute towards keeping prices in check.

If the correct processes are followed as outlined, developers will benefit as much as buyers. As things stand today, developers have to go through very tedious, time-consuming and indefinite approval procedures. While it is not certain whether the Act will provide single-window clearance of projects, it would be ideal if such a system were also introduced.

T Bill: The Real Estate Impact

The Telangana Bill passed by Lok Sabha is being viewed by mixed feelings by various stakeholders, but it is still too early to gauge its impacts on the real estate industry, says Sandip Patnaik, Managing Director – Hyderabad, Jones Lang LaSalle India. 

That said, it is likely to end the political uncertainty that Hyderabad has been facing for the past few years. The outcomes are still unclear, but Brand Hyderabad is not likely to be overly affected as it is planned to serve as a joint capital for ten years.

Hyderabad has state-of-the-art infrastructure and is the most developed city in the state; therefore, it will continue to retain its relevance and pre-eminence going forward. Over the next six to nine months, the overall business sentiments in the city are likely to remain stable. Investors may find this period favourable, as property valuations are low and there is still potential to capitalize on this.

Similarly, this period will offer the best deals for genuine home buyers, as home prices will remain stable for at least the next six to nine months. As a result, residential sales are going to rise in the city. Office space occupiers are expected regain their confidence for business continuity in Hyderabad – a factor that was being negatively affected by the previous agitations. Leasing activity will improve now, and new occupiers will be attracted to the city.

Overall, Hyderabad City has immense growth potential and will definitely get back into growth trajectory once things stabilize.

Meanwhile, the formation of the new capital for the Andhra Pradesh (Seemandhra region) is waiting in the wings. This is likely to bring in new real estate opportunities in terms of the development of the new capital, which will witness immense infrastructural and real estate growth. However, these developments will depend largely on the support of policies and the leadership that will implement them. 

Other key cites of Andhra Pradesh - Vijayawada, Visakhapatnam, Guntur, Nellore, Ongole and Tirupathi - are also likely to witness increases in property prices going forward. As these cities are in the running for the new capital, they may witness increased speculation.