Bangalore Witnesses an Increased Demand for Luxury Homes Much Amidst a Booming Trend in Real Estate- Raja Aristos Cases Info

Bangalore is seen to be the latest realty center of the country. The city has also seen many Business Process Outsourcing (BPO) and Information Technology enabled Services (ITES) companies setting up offices in Bangalore. Hence, due to this the city is seeing an increased need for residential and commercial properties There was an increased need for office spaces when it comes to the commercial segment of the Bangalore.

Primarily there are seen to be two reasons for this. The first is that there are companies which are on an expansion mode of their office floor area. The second reason is that there are numerous IT companies which are forming a base in Bangalore. These two factors are seeing to it that there is an upward trend in the demand for residential spaces. This shoot up in the number of companies in Bangalore is also making the realty players, both from big to small ones to form attractive projects.

In Bangalore, the realty scenario has seen increased and active growth. Moreover, there has also been seen a progressive purchasing style from customers who have the aim to buy flats, villas and plots in and around Bangalore. It has been noticed that Bangalore has seen a strange pattern which is akin to the phenomenon across the world. There has also been confirmation on this style what with the detailed studies by various managements, related research organizations and real estate funds. What is the significance of this pattern is that it depicts that there has been seen an increased development in the outskirts of the city rather than the Central Business District (CBD) or the inner city area. Usually, BBMP areas are prominent in the CBD area.

Sahakar Nagar, RT Nagar and Hebbal in North Bangalore have come across as the best performing areas when it came to residential real estate. All through the year, these areas have been seeing an increase in appreciation for residential property and upward trend in demand. North Bangalore is fast emerging as the residential destination that is much sought after owing to the fact that there is proximity to BIAL, improved infrastructure in this region, besides complete greater connectivity.

In West Bangalore, Magadi Road, Vijaynagar and Tumkur Road are fast coming out as prime spots which are witnessing a constancy in demand owing to the fact that there is development of Metro line. The Metro line is slated to provide greater connectivity. Kanakapura Road is another layout that has already witnessed the greater advantages of Metro connectivity. What else is making the area emerge as the hot spot is the availability of Cauvery water and the establishment of the NICE Road (The Bangalore-Mysore Infrastructure corridor).

Moreover, what has been witnessed is that there are greater investments that have shooted up in the IT industry besides the tendency to spend and the salary to spend has also increased. What more has led to the boom of this sector is that in the year 2005, there has been a revision of the FDI policy.

Indian Realty Has More Room for Improvement - Raja Aristos News

Though 2013 proved to be a roller coaster ride for the Indian realty sector, towards the end the chances were favorable for a recovery, and it is expected to continue in 2014 as well. As of now, the sector is on the verge of a recovery, but not yet arrived at a safer pace.

However, both developers and customers are confident of further improvement especially after the upcoming general elections.

What is expected of 2014? Many experts point out that certain problems are likely to carry forward as they are unresolved, mainly during the first few months.

The prevailing problems include high levels of inflation, delay in project completion and delivery, financial fluctuations, unsold properties across the nation and reduced consumer interest.

Amidst the challenges, one respite was that the last year saw increased funding from NRIs into realty, yet, didn’t bring in the expected results.

Therefore, the time calls for reformatory actions from the Government, and there is hope that it would happen with the upcoming budget.

The budget would be realty friendly if more funds are allocated to the sector, by the new government taking charge post elections. Yet, the possibility for these expectations to revise cannot also be ruled out. Therefore, a lot depends upon the budget.

There have been attempts to correct the issues in 2013, in the form of new policies and regulations into sector, examples being the ‘real estate regulatory bill’, ‘land acquision act’ etc.

Though there are positive aspects, there are drawbacks with both these reforms, as both are likely to increase the construction cost to a very great extent.

The implementation of REITs, or the Real Estate Investment Trusts, seemed to be a well thought after decision, but it is yet to see whether it would bring the desired results.

The REITs were considered as an attempt to enhance the transparency in the sector. The Trusts, failed during the initial formulation owing to the economical imbalance. Therefore, the focus should be on not letting it happen again.

The escalating prices prevailed throughout the year 2013, and continue to affect this year’s realty prospects as well. The high prices forced buyers to wait for favorable times which significantly affected sales across the nation. Inventory pile-up was happening in a rapid phase and there were delays in new launches.

Experts are concerned that these issues might prevail in 2014 as well, in the first few months for sure. As the year progress, a reduction could be possible with less number of new launches.

Buyers are predicted to show alertness towards properties, say recent reports. All in all, housing markets are anticipated to observe steady capital values excluding those projects that are over-leveraged.

However, Indian realty sector continues to retain its global perspective as a great investment option and the on-going and upcoming infrastructure projects might enhance the status of Indian Metros as great housing options.

Indian realty sector is a great option, and with the right measures brought in, its image on the global level is likely to remain the same. 

Raja commonfloor states on commercial Realty Sector Plunge: A Harsh Reality Post the Economic Slowdown

Amidst reports on the possible recovery of economy as well as Indian realty sector, the impacts it left behind seem to be a matter of concern. Here is focus on the influence on one of the key revenue-generating sectors, the commercial real estate.

Though appears to fall on the right track, the housing sector is still far away from total recovery. Delay in project completion, lack of demand and inventory pile-up has had their impacts, calling for immediate implementation of the right measures.

The situation prevailing in the commercial sector is not much different from its housing counterpart. The weakening economy has forced companies to downsize or relocate, thereby reducing the demand for more office space.

Much of this reduction in demand happened during the third quarter in last year. Submissive demand along with high vacancy rates have made the conditions in commercial sector a bit tense, thereby calling for reforms to take place.

Contrary to the present financial and political setting, demand for retail real estate is likely to continue to be submissive in the immediate period. Corporates are anticipated to go on with their focus on optimum space utilization and cost cutting activities and transaction works are estimated to be inadequate concerning small and intermediate space. Lack of supply is expected to cause burden on rental as well as capital values.

Still, the ongoing recovery phase is likely to continue considering the fact that the rupee has recovered and is on the way to progress. In addition, non-resident buyers are now legalized to buy shares, whereas local firms are given sanction to invest 400% of their assets in overseas markets at present.

During the following 6 months, CBRE Research assumes that reforms would be approved so that the international exposure to Indian banking sector is increased thereby promoting investment from potential sources. 

Here, the export sector deserves a mention which plays its part perfectly with signs of improvement. And, of late, there are seen efforts to curb import activities and enhance export sector. All in all, scenarios for an enhancement in the exchange segment and India's foreign balances look absolutely superior than they did a few months ago.

The Monsoon season was with positive changes this year as compared to last year and yielded good agricultural productivity. Food prices had peaked during the recent time of crisis, further worsening the situation already affected by the weakening economy. With more productivity, the food prices seem to be in for a downward change, further easing the monetary imbalance.

In a nutshell, Indian economy can revive but with adequate and timely support from the governing bodies, regional as well as central. 

Experts emphasize on few key points for bringing in the desired results:

·         Allow more foreign investment

·         Boost investor sentiment

·         Identifying key areas with great potential

·         Bring in laws for fast-track approval

·         Exceptional economic management

·         Industry-centric approach

·         Easing rules regarding foreign investment

·         Set clear guidelines

·         After initial sectors, expand activities into other states as well.

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Raja Aristos reviews in case if you are opting for Stocks Vs. Real Estate

Profit is the ultimate driving factor behind any investment; therefore, it is worth assessing available options for the most perfect choice. Ideally, an investment should be safe and meet with your expectations of returns. And, when it comes to the choice, what turns important is your preference, requirement, future plans, return expectations and availability of finance. So, these factors have to be kept in mind while exploring the options of investment. The benefits and drawbacks of all options should be analyzed to arrive at a final conclusion.

Here two of the most popular options i.e real estate and stocks are analyzed.

Real Estate

Firstly, let’s find out what a real estate investment means exactly. A real estate investment means spending money on property or land. The amount involved varies based on the concerned property, type of property, location, taxes, maintenance etc.

Stocks

Buying stocks means investing in a piece of company regardless of its work. In other words, a stock means the investor is entitled for a share in its profit; it could be a small or big amount.

Now that we have defined both the investment options, here is further information on them.

When you invest in real estate, it automatically turns into a viable asset. Good returns in future are a certainty, but the exact amount of returns is variable, in view of location, depreciation in initial value and the development that happened in the concerned area.

For instance, the value of a flat or an apartment might suffer depreciation over time, say for example 15 to 20 years or so. Yet, a property assures more money as compared with initial investment. So, profit is guaranteed.

However, those opting for land don’t have to worry about the issue as land prices will always show upward trends.

Moreover, real estate gives you many options. You can go for a house, villa, flat, land or even commercial properties. Of late, more and more people are buying properties in city’s outskirts due to low prices and excellent returns that are assured.

Yet another important factor is the rental income from properties. Properties in premium locations could fetch you significant and steady rentals.

And, as compared with stocks, real estate is a safer option. You have control on your asset, which is not the case with stocks. 

The effect of inflation on a real estate investment is lesser in comparison with stocks.

Yes, stocks have their own advantages. An investment might be less hard work there compared to managing a property or running a business. Those comfortable with retaining the stocks for a long period could actually look forward to great returns. With each year, the value could increase in sync with the concerned organization’s growth.

Selling a stock is a matter of minutes whereas a real estate deal might take even few weeks.

Many companies offer shares at a much lesser price so that even middle class people could afford them. Stocks are profitable when you try borrowing against them and they offer more liquidity in comparison with real estate.

In short, many features are involved here, i.e while distinguishing between a stock or real estate. But, a house is mandatory and to deal with the inflation rates, real estate could be a viable option.

Raja Aristos Case Studies In Search of a Good Apartment in Bangalore? Then, a Must Read for You!

A decision on real estate investment is not an easy one, and should not be. For a large percentage of investors, it would be a life-changing decision, therefore, various aspects have to be assessed and all available options checked before arriving at the final judgment.  Often, residential investors could be in a dilemma as to whether it should be a house, flat or land. All properties have their own benefits, and therefore, your requirements and expectations from the concerned property should be the prime deciding factors.

Mostly, the location, price, return prospects, the features and amenities are the most assessed factors while a property is being negotiated, and this is where Raja Housing Ltd assumes prominence. Raja Housing is the property venture from the Raja Group, and offers affordable apartments on par with global lifestyle requirements in premium locations across the city. Raja Aristos, the luxury apartment project is the latest in their series. Do you feel confused about whether to go for a flat or an independent house?  Here are a few suggestions for you.

Security:  Assured security is the most beneficial aspect of owning a flat with security personnel to take care of the property even in your absence.

Prospects of Regular Income: Prominent locations in Bangalore will always have a steady demand for rentals and there are many takers for apartments.

Amenities: Apartments in general, comes with an array of amenities like club house, gymnasium, garden, play area etc, giving you the option of improved lifestyle.

Ease of Maintenance: Maintaining an apartment is an easier task, with presence of staff to address the requirements. Therefore, old people would find flats comfortable.

As an Investment: If you are looking for long-term investments, an apartment is better than a house. A period of 8- 10 years would be preferable. Flats from prominent builders in good locations are guaranteed sources of future income.

Real estate portals like commonfloor could give you genuine guidance on buying, selling and other aspects involved in a real estate deal.

Raja Housing News - Unsold Stock Flooded in Bangalore Residential Market

According to some reports, it has been estimated that Bangalore residential market has unsold stock of 50,184 units in second quarter (Q2) of 2013 as against 46,823 in first quarter (Q1) 2013. As far as the absorption was concerned, it stood at 6,519 units in 2Q13 as against 6,689 units in 1Q13.

According to a top executive from a leading realtor, it was believed that a total of 21residential projects were launched across Bangalore in 2Q13, thus offering 9,889 units against 10,009 units in 1Q13. In the meanwhile, eight residential projects consisting of 2,319 units in various sub-markets were withdrawn from active stock as they were completely sold out.

The executive further stated that in the Central (CBD) and Off Central (SBD), owing to low availability of large land parcels and high capital values, those micro-markets had witnessed a limited supply of residential developments. Moreover, those markets had very good social and physical infrastructure too.

Whilst in North Bangalore, the demand for high-end residential units remained high. After the launch of the Bangalore International Airport, residential real estate activity in North Bangalore has gained grip. With regards to this, the projects located around Bellary Road, Hebbal and surrounding areas are considered to be in the luxury segment.

The top executive also stated that North Bangalore was assured to be the next economic centre of Bangalore owing to its close proximity to the International Airport and planned social and the physical infrastructure in the North which have boosted development in the area.

However, on the other hand, demand for high-end residential developments is considered to be low in the South of Bangalore. In this micro-market, the housing requirement in this area increased after Electronic City established itself as an IT Hub. The top executive opined that despite this, it did not attract premium residential developments owing to poor social and urban infrastructure.

When it came to East Bangalore, Whitefield as a micro-market had developed into a self-sustaining area. The area is considered to be a good IT destination and the area also has good social infrastructure and developing physical infrastructure. Therefore, the demand for luxury residential developments remained high in the area.

The executive also went on to add that West Bangalore micro-market had not been that successful in attracting numerous realtors as it failed on the count of good social infrastructure. It was mainly dominated by industrial developments and had seen hardly witnessed any developments in high-end residential developments.