You will be surprised to know that, the rain your region has a lot of impact on the real estate prices these season because at the dn of the day, it matters how much onions cost when you are investing in real estate. Due to quality rains in certain parts of the country, builders have a brighter look in Diwali. For instance, a lot of experts believe that property sales are expected to rise in Indore for the coming diwali by 10 to 15 percent. This number would be quite helpful for the property market in the long run. But the country as a whole is a seeing a positive vibe from the very positive festival of lights-Diwali. Let us take a loser look.
It is a well-known fact that the real estate market has been hit by a slow down for some time now. People have been less interested in this kind of investment both for residential purposes and simply as an investment. On the other hand there is this heap of Government housing projects on a role and capturing momentum such as the DDA in the capital and Pradhan Mantri Awaz Yojana in the rest of India. Unfortunately both these schemes and some other similar schemes are meant for LIG and EWS groups. Some people however may not be from that group but need to buy property. This can be unbelievably challenging unless it is Diwali.
In Diwali, things change. Companies in India, offer bonuses, which means a chance at more money and savings. Besides the Government housing projects such as DDA which has plans to offer around 12,000 apartments through their scheme, builders and real estate industry also look hopeful. Dussehra and Diwali, both are said to have some potential for good business for the construction and real estate industry.
The most shocking background are the 1000s of apartments that are lying unsold, affected by the slowdown for the last few years. But a matter of concern lies with the fact that certain smaller festivals, but with potential of increasing sales in property market were unsuccessful in doing so in Gudi Padwa, Ganesh Chaturthi and Akshay Tritiya this year added to the builders' woes. So, people do have some doubt on the same.
The marketing for new projects have already started across the country for the season with highways and bustling central streets showing hoardings of an Indian celebrity asking you to consider ‘the best apartment you can buy’. While this is happening in Northern India, Western India has a similar but slightly different story. President of Confederation of Real Estate Developers' Association of India (Credai), Sonal Kotawal in Nashik, believes that the past 3 months have been giving positive vibes due to the enquiries that have been made. Although the projects aren’t new in the city and the older and unoccupied projects are being promoted, the enquiries do matter. People are also willing to buy, given the fact that the real estate prices have not risen in the last couple of years due to the economical state of affairs.
Diwali is a festival of new hope and perhaps this year has some hope for certain city builders in and around second tier cities across the country. But as a whole, Diwali has this miraculous effect on people to do things they wouldn't do any other time of the year.
The name ‘Trump’ was licensed to Indian builders constructing luxury residential buildings in Mumbai and Pune, by the Trump Organization. Around half of the 46 apartments in the Pune Trump Towers on which construction has been finished, has been sold based on the information provided by Panchshil Realty, who is the developer of this project. At the Mumbai Trump Tower, which was a project announced in 2013, 226 of the almost-400 apartments have been sold, according to Lodha Group, the developer. Construction is still underway. In India, apartments are usually up for sale prior to the beginning of construction.
According to Sagar Chordia who is the Executive Director of Panchshil Realty, market sentiment is quite low but there is still a demand for quality residences. According to Mr. Chordia, Trump’s name has enabled him to charge high prices for his project. Apartments are selling for Rs.25,000 per square foot as opposed to Rs.15,000 per square foot in the area for other projects. In addition to this, Trump’s presidential bid is also helping generate visibility. He also said that vacancy rates are expected in luxury apartments.
14th November 2016
The government is preparing to announce a section of rules in the recently enacted Real Estate Act, taking another forward step in implementing the crucial legislation that seeks to enhance transparency and safeguard the interests of vulnerable homebuyers. The Act came into effect in May 2016 after it was passed by both houses earlier this year. A Spokesperson in the Ministry of Housing and Urban Poverty Alleviation, the Ministry responsible for notifying the rules, said that the new rules are expected to be announced within the next 10 days. The rules will also be applicable to the Union Territories of Lakshadweep, Dadar and Nagar Haveli, Daman and Diu, Andaman and Nicobar Islands and Chandigarh. The government has already notified 69 of the 92 sections of the 2016 Real Estate Act.
27th October 2016
With the onset of the much awaited festive season, residential builders are cashing in on the opportunity to attract buyers by launching a cluster of exciting offers. However, as the new notification on the Real Estate Rules is due to be announced soon, homebuyers have been advised by the Mumbai Grahak Panchayat (MGP) to hold-off any decisions and not get tempted by the tempting offers of major builders. The MGP is a prominent consumer rights organization that focuses on various aspects of consumer rights. In due accordance with the recently enacted Real Estate Act, state governments are obliged to create a framework of real estate rules and also form a Real Estate Regulatory Body to look into aspects that go against the interests of homebuyers. All project developers are required to register their projects with the Real Estate Regulatory Authority (RERA). The enactment of the act is expected to protect a vast section of home buyers against vested interests of residential developers.
26th October 2016