Why festive season is the ideal time to buy a home

Experts believe that the real estate sector has a lot of unsold inventory in the luxury space but not in the affordable housing space where there is a major supply shortfall.

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Hence, the customer has to first segregate both these markets and adopt a suitable approach for each of them that effectively enable them to get the best deal. In the luxury space, it's clearly a buyer's market; hence, the buyer can name his price within the region. A 15-20 percent discount below the listed price is possible in projects where the developer has a high debt.

Rohan Bulchandani, co-founder and president, Real Estate Management Institute (REMI) and The Annet Group explains, "The festival period, starting around Janmashtami (August-September) through the end of the year, is the ideal time to buy a home in Mumbai. It would appear that this period creates an almost perfect convergence of the three key elements required for a property transaction to culminate: demand, supply and money."

Buyer-led demand

For most Indians, the purchase of one's home is perhaps the most significant life-investment, requiring a large capital outlay and as a culture deeply rooted in spirituality, religious sentiment and superstition, there is a significant bias towards making such an important life-purchase decision during the festival season.

Developer-led supply

Developers are acutely aware of the buyer-led demand phenomenon during the festive period. Sluggish sales of completed homes over the prior months, have led to a glut in the finished goods inventory, which developers are now keen to offload. As many developers are faced with this situation, the competitive environment drives them to differentiate themselves by offering innovative deals in order to attract customers.

Bank and Housing Finance Corporations (HFCs)-led money supply

To further facilitate property transactions during the festival season, banks HFCs also play their role, in capitalising on the opportunity to increase business for them. In addition to interest rates and EMI reductions, institutions often sweeten their offerings by eliminating the processing fees, waiving customary pre-payment penalties and by including free property and accident insurance.

Things to keep in mind for value picking

"Pick projects where the developer has a good track record of quality, on-time delivery, amenities being delivered across other projects, etc. For the affordable housing space, always go with a branded developer with a high reputation; pick a project which is an integrated township near a railway station. Look for a place where people are already residing or the pos session is only a few months away. This way, the customer can be sure of the amenities being de livered and also that utilities such as water, electricity, etc, are not a problem," suggests Rohit Poddar, managing director, Poddar Developers.

Buying a property is a one-time decision for many, so while buying a property during the festive season; buyers should focus on the budget and the connectivity of the area as they are the most important factors one should keep in mind for value picking.

Gaurav Shah, director sales and marketing, Ravi Group, feels, "The cost of the property plays an important role, whether the buyer is buying an under construction flat or a resale property. If the cost is not considered, the dream home could end up becoming more of a worry than an escape. Another prime factor is the connectivity. The area should be well-connected to schools, colleges, hospitals, markets, shopping places and bus, train stations. The location is often an afterthought when it comes to purchasing a property because nowadays, buying a property in Mumbai is an expensive affair."

According to experts, the festive season creates a win-win-win situation wherein buyers, developers and financiers, all benefit from the appropriate environment. Historically, property transactions increase by 25-35 percent during the festive season and in certain cases, upto 40 percent of sales take place during this period.

Source - Property News

Housing.com, Credai forge three-year deal for exclusive partnership

Online real estate platform, Housing.com, and the Confederation of Real Estate Developers' Associations of India (Credai), India's apex real estate body, have signed a memorandum of understanding (MoU) for an exclusive partnership for three years.

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According to a statement issued by Credai, the objective of the MoU will be to improve the overall ecosystem and create a new-age platform that will enable developers to engage with consumers in a focused manner.

"The partnership is a testimony to the changing times in the way developers have been traditionally operating. This association is the first of its kind in the industry, and I am excited that it will redefine the way developers have been approaching buyers across India," said Jason Kothari, Chief Business Officer, Housing.com."We are confident that the alliance will prove to be mutually beneficial and make the community more transparent and consumer-centric."

Getamber Anand, President, Credai National, said: "We are enthusiastic to synergise with an organisation like Housing.com... We are certain that this relationship will go on in a fruitful way." 

Source - DNA 

Rupee closes at 6-week high, gains 65 paise

MUMBAI: Rising equity markets, monetary easing and approval for greater access to foreign funds to invest in government-backed securities propelled the Indian rupee to close at a six-week high of 65.51 to a dollar in the just-concluded weekly trade. 

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The rupee last breached the 65.55-level on August 20. The Indian currency gained for four consecutive sessions to strengthen by 65 paise in the weekly trade ended October 1. 

The rupee stood at 66.16 to a dollar on September 24, its previous weekly closing. On Thursday, it gained 7 paise at 65.51 from its previous close of 65.58 The Indian rupee gained 38 paise on Wednesday to close at a five-week high of 65.58 against the dollar. 

The rupee's rise is concurrent to the expectations that more foreign funds will flow into the Indian equity markets. 

The Indian equity markets continued their upward trajectory in the weekly trade ended October 1, after the Reserve Bank of India (RBI) cut key lending rates by 50 basis points. 

The equity markets were anticipating an easing of only 25 basis points. 

The barometer 30-scrip sensitive index (S&P sensex) of the Bombay Stock Exchange (BSE) gained 357.45 points or 1.38 percent to 26,220.95 points from its previous weekly close of 25,863.50 points. 

"Gains came on the back of RBI's rate cut on Tuesday. That has buoyed both the currency and equity markets. The selling by exporters and foreign banks also buoyed the rupee," Hiren Sharma, senior vice-president, currency advisory at Anand Rathi Financial Services, told IANS. 

On Tuesday, the Reserve Bank said it intended to provide a more predictable regime for investment by foreign funds and decided to raise their exposure limits in phases in central government securities to 5 percent of the outstanding stock by March 2018. 

In another key decision, the central bank set a separate limit for investment by such funds in state development loans, which are to be increased in phases to reach 2 per cent of the outstanding stock by March 2018. 

"The quarter-end dollar selling by the information technology (IT) companies and the RBI announcement of giving greater access to foreign funds to invest in central and state government bonds supported the rupee," Anindya Banerjee, associate vice-president for currency derivatives with Kotak Securities, told IANS. 

The RBI's decision on Tuesday is expected to usher in around $2.5 billion by this fiscal end.

against a greenback. 

Source - TOI

What is more crucial for Mumbai: Infra or liveability

During house-hunt, what demands more prominence the infrastructure of a locality or its livability quotient?

Mumbai's real estate market is displayed as one of the most expensive property markets to the world. Due to ever increasing rates, low FSI norms and a massive space crunch, a potential home buyer feels trapped when it comes to investing in his dream home. 

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A recent report by Knight Frank India stated that the housing market in Mumbai is still under pressure and the H1 2015 saw a 47 percent drop in new launches in the city. This raises a fundamental concern with regards to the lack of infrastructure that is plaguing certain parts of the city.

Rohit Poddar, MD, Poddar Developers says, "Infrastructure is obviously key. One cannot live in a standalone residential building, with nothing around it. The livability quotient of a potential home buyer depends on several factors social infrastructure such as a variety of schools, universities, hospitals, entertainment options such as malls, multiplexes, open playgrounds; connectivity roads, traffic conditions, local train, metro, BEST buses, taxis and 3 wheelers; law and order; availability of water and quality of electricity; etc."

Infrastructure plays a critical role to the livelihood of people in any locality. It greatly dominates the choice of a certain residential project over the other. A well planned infrastructure that includes the fine lines of transportation, connectivity and accessibility of social infrastructure, and other utilities, are some of the key factors that a buyer keeps in mind while finalising on an apartment.

While infrastructure is definitely a key aspect, which can make or break the home buying decision of an individual, there is no denying the fact that the livability quotient too cannot be ignored. Aspects like social infrastructure, malls, schools, medical stores, hospitals, restaurants and the amenities that are provided by the builder himself, go a long way in deciding whether a potential home-buyer would be interested in pooling his life savings into buying a home or not.

Siddharth Bhatia, marketing head, The Wadhwa Group outlines the major locations within the Mumbai Metropolitan Region (MMR) that are replete with the livability aspects that are essential for a comfortable living. "Areas like Bandra, Matunga, Worli in south Mumbai, Goregaon, Borivali in western suburbs and Thane, Panvel, Mulund in central Mumbai, have the ideal physical and social infrastructure that is needed for leading a peaceful life."

There is a peculiar paradox of sorts that emerges when it comes to the debate between infrastructure and livability. While there is a certain school of thought that believes that livability is prime, a majority of the players within the built environment feel that infrastructure is prime and everything else follows.

Ram Raheja, director, S Raheja Realty, signs off by saying, "Infrastructure plays a very crucial role when it comes to the life of the common man. It determines the overall productivity, development and quality of life the residents lead in a particular home, in a specific location. Effective growth within a society is directly dependent upon the development and subsequent management of infrastructure in a particular locality. Hence, the mantra of location, location, location and added infra to it, will be most important factors for real estate in Mumbai."

Source - TOI 

Turning Kolkata's New Town into a future city

The New Town Kolkata Development Authority (NKDA) will need to work on effective data collection and its graphic presentation to develop the township into a futuristic smart city, urban experts from the UK prescribed during a workshop held recently. 

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The six-member team from Future Cities Catapult (FCC) was in Kolkata for two days to visit New Town and organize a workshop where experts have put forward recommendations and suggestions to develop the township. 

The Housing Infrastructure Development Corporation (Hidco) authorities had signed an MoU with the agency during chief minister Mamata Banerjee's London visit on July this year. FCC is a global centre of excellence on urban innovation that is helping NKDA and Hidco as a handholding agency to prepare a road map. 

"The experts said New Town has the potential to become a true Asian Township. The recommendations will be followed," said NKDA chairman Debashis Sen. A state delegation, including Sen and other senior government officials, is scheduled to meet officials of the AmCham India national chapter in New Delhi on October 5 where discussions will take place on the four smart cities and six theme townships in the state. 

One of the main recommendations that came from the FCC team was to have an effective data collection system where data of different issues would be presented on a graphic manner. "For example, there could be a data of a day's traffic volume in a graphic manner as to which time of the day the traffic volume is highest, or lowest," an official said. 

Inward investment strategy, in which jobs and economic opportunities will be created within the township, was discussed at length at the workshop. 

Last week, the NKDA authorities held a consultation meet where local residents were asked to suggest on ways and means to develop the township. Proper pavements, traffic signals, car parking plazas and underpasses with escalators were some of the demands on part of the locals. They also called for a green and clean environment. 

The NKDA has launched a smart phone application, named as 'Smart City New Town', to get feedback of New Town residents. 

Source - TOI 

Sensex zooms 266 pts, Nifty above 8,000 on capital inflows

MUMBAI: The benchmark BSE Sensex climbed over 266 points and the NSE Nifty regained 8,000-mark in early trade on Thursday on buying in IT, pharma and banking stocks amid a firming trend overseas. 

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The 30-share index surged by 266.02 points, or 1.02 per cent, to 26,420.85 points in early trade. 

The gauge had gained 537.99 points in previous two straight sessions after RBI announced bigger-than-expected rate cut of 0.50 per cent to 6.75 per cent and announced other aggressive measures in its monetary policy review on Tuesday. All the sectoral indices, led by healthcare, FMCG and banking were trading in the positive zone with gains up to 1.11 per cent. 

The National Stock Exchange's index Nifty regained the 8,000-mark by surging 54.85 points, or 0.69 per cent to, 8,003.75. 

Brokers said sentiments turned bullish after RBI Governor Raghuram Rajan sprang a surprise by announcing a biggest-than-expected interst rate cut of 0.50 per cdent to 6.75, lowest in four-and-half-years to boost country's economic growth. 

Besides, a firming trend at other Asian markets following overnight gains on the Wall Street as investors bought recent beaten-down stocks boosted sentiments, they said. 

Japan's Nikkei moved up by 1.74 per cent in early trade Thursday, while financial markets in Hong Kong and China are closed on Thursday for a public holiday. 

The US Dow Jones Industrial Average ended 1.47 per cent higher in Wednesday's trade.

SOurce - TOI

Rupee extends gains vs dollar, up 7 paise

MUMBAI: The rupee extended gains for the fourth straight day against the dollar on Thursday, advancing by 7 paise to close at 65.51 per dollar on selling of dollar by banks and exporters on hopes of more foreign capital inflows into equity market. 

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Foreign portfolio investors (FPIs) net bought shares worth Rs 116.08 crore yesterday, as per the provisional figures issued by stock exchanges. 

The rupee resumed steady at 65.58 per dollar at the interbank foreign exchange (forex) market in view of cautious approach. It moved in a range of 65.48 per dollar and 65.67 per dollar before ending at 65.51 per dollar, showing a gain of seven paise or 0.11 per cent. 

It has gained 65 paise or 0.98 per cent in the last four sessions. 

The dollar index was trading higher by 0.11 per cent against a basket of six currencies in late afternoon trade. 

"The USD-INR pair traded range-bound as investors preferred to stay cautious ahead of the major US economic data due for the day which will show the road ahead to the market," Veracity Group CEO Pramit Brahmbhatt said. 

The trading range for the Spot USD/INR pair is expected to be within 65.10 to 65.90, he said. 

Meanwhile, the benchmark BSE sensex ended up by 66.12 points, or 0.25 per cent.

Source - TOI