In residential space, the speculators can go to North India and invest in a pre-launch and make money in one year or two years. For mid to long-term investors the commercial spaces and retail work much better. But if one is looking at the real long term then one should better invest in land; nothing else can give as much returns as the land.
The development is currently under construction and is expected to be completed in the last quarter of 2018. The project has been one of the star performers of the London residential market with over 78 units worth almost USD 170 million (GBP 130 million) sold since its launch in May 2016. Construction is being carried out by Multiplex, the construction arm of global investment major, Brookfield.
The supply of quality housing even today is confined to eight key cities. It is not that the new cities are not coming up, but neither the investors nor even the end users want to buy a house in Tier II cities today. The dream and aspiration is always Delhi, Mumbai, Bangalore, Pune kind of life.
‘Location, Location & Location’ has been the tried and tested format of success in the Indian real estate. It has been the best calling card for the developers. Many even assumed that if the developer has got a piece of land in any of the highly desirable locations, that itself is enough to sell the project.
The budget factor can only lead to identifying one’s requirements and priorities with regards to location, number of bedrooms and amenities that one aspires to have. If the borrower has done his affordability calculation and knows his repayment and other expenses, then only one is technically and financially ready to borrow with full knowledge of his capacity to repay a loan, in addition to any savings one may be using as a down payment. These simple check marks will go a long way in deciding the future home and whether or not you are over leveraging yourself.
Buyers today wish to be part of the construction process. The question is to what extent it is feasible to bridge the trust deficit in the sector by involving the buyer. For example, a developer with plans of multi-city villa project has asked the home buyers to customize their requirements themselves on the developer’s website. The idea is to get the feedback of the end users’ needs and aspirations.
Most of the homebuyers as well as the other stakeholders of India’s housing market share the sentiments of this homebuyers. The Reserve Bank of India has indeed surprised many while keeping the repo rate unchanged at 6.25 per cent at the beginning of the new fiscal year. Even a symbolic rate cut would have helped the market change its outlook towards the economy.
Bangalore-based Nitesh Estates plans to grow its commercial & rental assets to more than 5 million sq. ft. of space in the near future. This includes locations in the central business districts and significant micro markets of Bengaluru. Nitesh Estates will develop and acquire A-Grade commercial & rental assets with an investment of around Rs. 1500- crore across multiple projects.
Godrej Properties has signed a new deal to develop a residential group housing project in the heart of Hinjawadi IT Park, Phase I, Pune.
There has been less of compact housing on offer and hence one wonders whether there are few takers for 1BHK in the city or there are certain other fundamentals of execution that come in the way of creating compact housing units.