Indian Real Estate: 2016
It is expected that in 2016 the various reforms will attract more investors and will boost the Indian real estate sector
According to reports of industry experts, the New Year 2016 shows signs of an uphill real estate market trend. Though slow, a positive sentiment is building in the industry attributed to the policy initiatives taken by the Government to bring back the real estate trends on track.
Introduction of Policy Measures
The introduction of various projects like the ‘Smart Cities’ scheme, ‘Housing for All by 2022’, promise of 24/7 electricity for all, and various other infrastructure developmental schemes promise to have a positive impact on the real estate sector. On the other hand, the approval of amendments to 'The Real Estate (Regulation and Development) Bill, 2013' and the Real Estate Investment Trusts (REITs) will make a set up for transparency in the sector.
With the current repo rate of 6.75%, there is scope for banks to reduce the lending rate to home buyers. This, coupled with lower EMIs, price reduction and discounts by the developers to clear their inventory stocks, invites end user home buyers as well as long term investors to buy property in 2016. With property prices expected to increase in the last quarter of 2016 and the rupee trading at a comparatively lower rate, NRIs can get a good exchange rate on the US dollar and make a profitable investment in the Indian real estate industry. Now is a conducive time to capitalise on the good exchange rate and favourable market condition in India.
Renewed FDI Norms
Relaxed foreign direct investment (FDI) norms will be a boon to the real estate industry in 2016. Along with investments, fresh ideas, knowledge, skilled labour and employment generation will be fuelled to the economy. It is expected to impact more than 30 sectors apart from the real estate industry. Thus, it is expected to give the much needed push to India’s affordable housing plans.
Commercial Space Scenario
The year 2015 saw optimistic growth activities and a mixed absorption pattern of old and new office space driven by IT and ITeS, e-commerce, consulting and start-up firms which is expected to grow stronger this year. Rents in 2015 rose at a faster pace in secondary and peripheral business cities than in the first tier, central business cities. The small scale markets showing more leasing activities in various cities in 2015 will continue to do so in the year 2016. A whopping 32 million sq. ft. net office space absorption is estimated this year, mostly by large IT occupiers.
On the whole, 2016 is the much awaited year of transformation for the Indian real estate industry with the introduction of REITs and Smart Cities project, approval of amendments to the Real Estate Bill and the relaxed FDI norms.
The property markets of India that are affordable
It is expected that with the new government policies and reforms in the real estate sector the face of the country will change. A change that is for the betterment of the nation and the countrymen
The growing urbanisation has led to an increase in the demand for residential properties in the bustling cities of the country. The expatriates, who relocate to the metros for job opportunities mostly prefer luxury homes or villas. For a higher segment of the society these properties are affordable, whereas for mid income segment people investing in such properties is next to impossible.
For such sections of society the government has taken an initiative 'Housing for All by 2022'. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakhs. This measure will include the neighbouring smaller cities around the developed cities.
Affordable housing basically refers to the residential units available in India’s developed cities at comparatively affordable rates. It is basically the properties available for people whose income fall within a specific income range. The cost of affordable housing cannot be defined on a single parameter as the costing depends on the location, construction, amenities etc. This concept is very important for the people of developing nations who cannot afford to invest on expensive homes.
For affordable homes it is important to look for cities that have residential properties within the budget of Rs. 30-50 lakhs and are classified as emerging submarkets supported by good infrastructural facilities. These cities offer a wide spectrum of investable options in the real estate with relatively lower price levels and healthy returns.
Following is the list of cities that have comparatively affordable property markets.
1. Navi Mumbai, Maharashtra
The real estate market in Mumbai has evolved since last decade. The city has grown with suburbs like Navi Mumbai, Kharghar, Nariman Point. Navi Mumbai is the city of the present and Mega City of the future. Developed in 1972, it is one of the largest planned townships in the world. Navi Mumbai is home to various residential, commercial, educational and industrial entities.
With a comprehensive infrastructure including an international airport at a distance of 6 km, Navi Mumbai along with surrounding areas offers good investment opportunities. It is planned to reduce burden of Mumbai with sustainable and planned infrastructure. It includes various nodes such as Vashi, Central Business district, Nerul and Kharghar.
While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs. 30-50 lakhs. With the increase in infrastructure developments like Navi Mumbai international airport, metro project, Sion-Panvel expressway, Nerul-Seawood-Uran Railway Corridor, the property prices of both residential and commercial are likely to increase. Also, the governments’ approval to the Mumbai Trans Harbour Link will prove to be a major game changer for the property market of Navi Mumbai.
2. Pune, Maharashtra
The presence of several IT companies, educational institutes, favourable climate and proximity to Mumbai, makes Pune an ideal choice of living and business. Pune has seen tremendous growth in infrastructure field in the last decade, with the world-class residential and commercial projects being set up in the city, gave the city a global stature. Its real estate market is considered as one of the best markets in India. Considering the needs of the people belonging to the middle class group, the developers of the city have now slightly shifted their focus from luxury housing to affordable housing.
A good growth has been observed in the affordable housing segment in the last few years. These projects are mostly located on the peripheral side of the city and offer small 1–2 BHK flats with basic facilities. There may be huge rise in the demand for luxury homes in Pune but the affordable housing segment is more attractive to the investors.
3. Ghaziabad, NCR
Ghaziabad is the next emerging market in the NCR region. It has a very high supply of residential properties in the budget of Rs 30-50 lakh. Well connected via Metro and roads to the job markets of Delhi-NCR region, the city caters largely to the mid-segment home buyers. The Ghaziabad sub-market enjoys a large population base from the industrial sector and SMEs, and low-income workers looking to upgrade to better accommodation. The areas within Ghaziabad, such as Indirapuram and Vaishali, are attracting investors on a wide spectrum.
Infrastructural developments such as the extension of the Metro Rail and the widening of the NH 24 to six lanes is likely to aid in furthering residential developments in this area.
4. Ahmedabad, Gujarat
Recently, Ahmedabad has emerged as an important economic and industrial hub in India. Ahmedabad's increasing population has resulted in an increase in the construction and housing industries resulting in recent development of skyscrapers. Ahmedabad is providing extraordinary and unprecedented returns on the real estate front, and is one of the most exciting investment destinations in India today. The growth corridors for real estate development are the Sarkhej-Gandhinagar Road, Sardar Patel Ring Road, and Maninagar and on the north side of the Inner Ring Road in areas like Nirnaynagar and Ranip. S-G Road and Sardar Patel Ring Road in particular have witnessed a lot of residential bungalow and farm house developments in the recent years. The maximum supply of properties within the range of Rs 30-50 lakh is evident along the SG Highway and in areas such as Gota, Bopal and Satellite.
5. Jaipur, Rajasthan
It has grown much beyond the old traditional ‘Pink City’. With the growing Centre of retail, commerce, administration, education, production and marketing, Jaipur offers countless options and varied opportunities in terms of both employment and lifestyle. From the horde of new projects coming up in Jaipur and from its ever changing skyline, it is evident enough that the city is growing tremendously.
Jaipur has grown beyond everyone’s expectation to become one of the top global outsourcing cities in India. It has attracted investors across the globe, who consider Jaipur as the growing city of opportunities. Some localities in Jaipur such as Malviya Nagar, Tonk Road and Ajmer Road are among the best emerging investment destinations in the country.
With the plans of the Metro, the infrastructure is likely to develop at a faster rate. The government is also taking keen interest in developing the infrastructure of this region, and property prices are expected to witness an upward surge in the next few years.
6. Hyderabad, Telangana
Hyderabad, a potential city has faced a lot of turmoil at the time when it was growing, due to the formation of a new state, new government and an unstable political environment. The city boasts of well-developed infrastructure, affordability and cosmopolitan ethos. Due to the partition of two states, and accompanying bifurcation of resources, the city has lagged behind from its counterparts like Bangalore, Pune. The city is now upcoming these issues and with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The flourishing IT industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces.
If compared to the other growing cities Hyderabad is one of the most affordable city in India. Even the well-developed residential localities in Hyderabad, such as Manikonda, Kukatpally, Miyapur and Sainikpuri offer residential properties in the budget range of Rs 30-50 lakh.
7. Kochi, Kerala
Kochi, a growing city can be termed as ‘the dark horse’ of the real estate market. The queen of the Arabian Sea is now a hot destination for real estate giants. The city has attracted many developers not only from the country but across the border. During the past six months, half-a-dozen developers have announced their plans to enter Kochi; many have already acquired huge parcels of land.
Kochi is a green city and a pollution free city, and this has made the real estate players shift their business from bustling metros to a calm city like Kochi. Today, the Kochi residential real estate market is dominated by affordable housing segment, which accounts to about 60% of the total housing projects in the city. The skyrocketing prices of properties have made difficult for mid-income segment people to own a house in Kochi. Hence the demand for affordable housing has paved its way through the posh areas.
8. Coimbatore, Tamil Nadu
Coimbatore has evolved a lot in terms of infrastructure and real estate. It is a multi-faceted market giving rise to more employments and leading to a rise in substantial amount of both residential and commercial properties. Coimbatore is the major industrial centre in Tamil Nadu after Chennai – and as incentives are given to IT companies by the Tamil Nadu government, Coimbatore has gained impetus as a preferred destination for IT/ITeS. Hence the demand for affordable housing has been prevailing in the city and the city is emerging as the favourite of the retired people.
Having a beautiful home is no more restricted to our dreams, it has become a reality. With developers coming up with new projects and well-designed homes having a good looking home is now possible.
From a studio apartment, a villa, a row house or a regular apartment choose whatever you like. In a plethora of amenities offered by the developers, which is developed to match a modern lifestyle and its requirements such as a well-equipped gym, a swimming pool, a club with indoor game or a lavish park you will ﬁnd exactly what you want and prefer. So why laze around and wait for the opportunity, just click PurpleHomes.Com and ﬁnd your dream home anytime anywhere.
And to get a clearer picture about the current real estate market behaviour and prevailing real estate rates and trends subscribe to our PurpleHomes.Com newsletter. The inaugural edition of our newsletter has articles related to affordable property markets of India, Indian Real Estate in 2016 and unique home décor ideas. Enjoy the issue!
Launch of PurpleHomes.Com
PurpleHomes.Com was launched on a grand scale at various metropolises of India with the best of the Real Estate developers from India participating in the launch events. Chennai was the first city where the unveiling took place on 9th September, 2015 and the following day of 10th September, 2015 the launch took place at India’s capital New Delhi. The unveiling of PurpleHomes.Com in Bangalore and Mumbai took place accordingly on the 12th and 14th of September, 2015.
The launch of PurpleHomes.Com at various cities saw the gathering of the best Real Estate developers from India eager to know more and “Get the Purple Connection”. The Chief guests to all the events were our Brand Ambassadors Mr. Arbaaz and Ms.Malaika Arora Khan. Accompanied with splendid performances by dance troops of various cities and a corporate video screening of what PurpleHomes.Com and the “Power of Purple” is all about, many developers were inquisitive about Sumansa Exhibitions latest initiative. Our Brand Ambassadors spoke about the exciting new sales and engagement platform and how it promises to bring developers and their developments closer to the dreams and aspirations of NRIs across the globe.
Tips for people looking for commercial properties
To ensure you a blessed living, we provide you a Vaastu expert, Dr. Padmaja Yadav. Well equipped with the ‘science of architecture’ Dr. Padmaja will opine you the right way
Dr. Padmaja Yadav
Different kind of properties be it a residential or a commercial property, based on their roles in the society have different rules. Any flaw in the land/layout/interiors may result in several problems, this may start right from the initial stages of construction. This could be anything from lack of proper flow of funds, approvals or problems with labour etc.
Therefore, before buying or renting a property, one must take care of this aspect called Vaastu apart from various other aspects like location, finance etc. as this will go a long way in terms of an overall growth. Vaastu is not an expenditure but an investment that is bound to give you results.
For any organization or commercial establishment it is very important to have the owners, managers and/or CEO’s sit in the South-West zone of the property facing North, East or North- East. This direction is ruled by Earth element which signifies stability. This helps them with not just a better command over the organization but also gives a boost to their confidence and empowers their decision taking capabilities. This helps in building a good leader for the organization, thus building and providing confidence and stability for the staff.
For any kind of commercial establishment it is recommended that the staff usually sit facing North or East for better output and creativity. Since North-East is associated with sunrise and symbolizes growth and opportunities, facing these directions brings in a lot of brighter prospects.
Thumb rule for life – declutter. Any kind of clutter is not recommended as per Vaastu and Feng-Shui. Clutter affects the creativity and output of an individual. It leads to confusion. Therefore, proper filing of documents and organization of space is very important.
Sunlight and fresh air helps in removal of stagnation of energy. This further enables smooth flow of day to day activities in an organization.
It is not advised to have one’s back towards a window. Sitting with a strong wall or a windowless wall behind the back provides proper support and confidence required to grow.
One must also avoid sitting under beams, as these are load bearing structures and lead to unnecessary stress.
Big, bright and attractive name plate or board is very important for an organization. This apart from giving a good visibility provides fame and identity.
Placement of fresh plants leads to a positive environment. Plastic or artificial plants are not a substitute for fresh plants.
One may always avoid a property that has toilets in the North-Eastern zone of the property. This will result in a sick organisation.
Yellow/gold colours in the North-Eastern zone give way to better opportunities and openings.
Beautify your home with some trendy interior designs
Make your home a beautiful place to live in, by using some décor tips
'Home is where the heart is' by Pinly the Elder, is a true saying. A home is a place where you long to go back after a hectic day. It is the place where you love to relax and spend some quality time with your family and friends. So definitely you want it to be the place that is designed according to your taste. In order to enhance the beauty of your house, read on to know about the latest interior designing trends:
1. Choose the colours that pleases you
Pleasing, soothing and subtle paint colours are in vogue these days. The comfort colours like blues, whites, creams, light greens, and greys are in fashion. So make your home look soft and subtle by painting it in light tones.
2. Eco-friendly designing trends
With increasing awareness about environment, people are contributing their bit to save the environment. This trend of using eco-friendly design has been very well applied to the new designing trends. Reusing old items to create new and innovative designs has caught the attention and fancy of many interior designers and home makers. That’s why you have wide and intriguing choices like insulation using old jeans, tables and countertops using stacks of magazines and a sheath of glass. So take your pick and go eco-friendly, while still being trendy!
3. Vintage showpieces
Old is gold. That’s why the rustic and antique decorative items are back in ‘home fashion’. Beautify your house with some old antiques like- a vintage sewing kit found at a market can easily be transformed into storage for jewellery; use coupe-style champagne glasses as tea light holders; or repaint that old chest of drawers in a bright colour and transport it to a new room of the house.
4. Attractive curtains
Embellish your home with colourful curtains. For curtains use colour that matches with the walls of the rooms. Avoid using bright and eye catching curtain colours as it makes the house feel heavy. Always opt for soft, subtle colours for curtains as it makes the house feel lighter and bright.
5. Change your upholstery
Sometimes, the only thing your house needs to look uplifted and cheery is a change in upholstery. Sofa covers and cushions can look worn out after they are used for a few years. Getting upholstery in a totally new colour scheme will give your interiors a breath of fresh air. Use plain, sequined and textured upholstery to make your home look new instantly.
6. Change the lighting of your interiors
Give your interiors a refreshing touch by changing the lighting scheme of your house. Use special drop down lights over paintings and use low lighting for vases, book shelves and accessories. You can also use mood lighting to create ambiance in the dining room, bedroom and living room. You will realize the significance of lighting in interior design when you see how different your own house looks with a new set of lights.
7. Decorate with frames and photos
Make a collage of your family and friends photos and hang it on the wall of your living room. This will make the room look live. Simply choose some stylish frames for your main wall to change the look of your wall. Make your wall look designer by these creative ideas to make the room look stylish.
8. Hang mirrors
Having mirrors mounted in strategic locations renders an illusion of space and style to your living room. Mirrors can have antique frames if you want to transform the space into a medieval theme.
9. Use a theme
To make interiors decoration an easy task, begin with a theme. A theme give you options and ideas. It covers almost all the aspects when it comes to every single thing, your living room must have. Walls, paints, furniture, and accessories can all be defined when there is a theme in mind.
10. Use candle holders
This is loved by most of the interior designers. You can use a vintage or a classy piece of candle holder and place it on a table in the corner, this enhances the beauty of a room.
11. Open Space
One of the interesting interior designing trends this season is the use of ‘open space’. People are interested in creating more personal and open space in their homes. This gives a feeling of personal touch and comfort to the house.
12. Wallpapers and paintings
Use beautiful wall papers or paintings of nature’s beauty or a scenery. Avoid paintings of wild animals or owl also don’t hang paintings of a sinking boat or that of a storm, as these make the house look dark and sad.
13. Rugs or carpets
Use an area rug that complements the room and lay it below the centre table.
Use these latest interior designing trends to create your own unique style!
What does your house speak about you?
From the colour of your walls to your furniture choices, your home displays your preferences, giving a deep insight into your personality
"Every house has its own story"
While going for interiors of your house you must know the fact that a house reflects your personality. The way you arrange the furniture, the colour of the walls, the curtains style, and the showpiece that you flaunt all depicts a clear picture of what kind of person you are. Read on to know what your choice of furniture and the colour of the walls of your home speaks about you.
If you choose antiques, old classic kinds of furniture, then this shows that you are an organised person with sober and sedate persona.
If you like eclectic furniture designs, which are a mix of different styles such as an antique sofa with a contemporary styled bed, then you are a person who doesn’t bother about trend and go for designs that you feel looks good.
On the other hand, if you go for trendy and modern design furniture then this shows that you love experimenting and is innovative by nature.
And if you like to design your house with eco-friendly items, then you are the person who loves nature and avoid machine made items.
Purple: If you have painted your walls purple, then it shows that you are a confident, creative, adventurous, sensitive, witty and an outgoing person.
Green: Green symbolises peace and harmony. If the walls of your house are green, it indicates that you are a down-to-earth person. You often avoid conflicts and love to maintain a balance between your personal and professional life. Green lovers are also aware of what others think of them and consider their reputation very important.
Blue: If your walls are painted blue then you are a calm and cool person who is a bit introvert. You are reliable, love harmony, sensitive and always make an effort to think of others.
Red: If you love red and go for red coloured walls then this indicates that you are a person who is outgoing, aggressive, passionate as red colour indicates power. Red lovers are also tenacious and determined in their endeavours.
White: Going for simply white shows that you are not so fond of colours and love to be simple. You are often organized and logical and don't have a great deal of clutter in your life.
We all know that colour affects our mood and typically reflects our personality. Our homes clearly speaks of who we are. Beautify your home in a way that signifies who you are and what you value.
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Impact of the Revised Real Estate Regulatory Bill
India has been in need of policy corrective measures in the real estate sector for a long time now. Stringent market and economic conditions have pressed the real estate trends into sluggish markets. Though the industry has recently observed an upward shift, there are other factors like delay in residential project completions and prolonged bank interest rates which have dampened the spirits of buyers. Read on to know what impact will the regulatory bill have on the real estate sector?
Redefine Luxury with Leather Wall Coverings
Today, we still think of leather as contemporary décor for modern homes just like old wine in a new bottle. Leather walls and cabinets are an exclusive trend for luxury homes in India. Know about this unique style of decorating a house.
Trending amenities to look for before buying an apartment
Due to high competition in the residential real estate segment, developers are providing a wide range of amenities at competitive prices. Here are a few questions to ask yourself while looking for in a budget apartment in India.
My first-time home buying experience!
I was 29 and wanted to buy a home! I did not have the faintest of idea of where to begin from. The first thought was to look for online property sites. With so many sites and most of them allowing brokers or dealers to promote properties, I was sceptical.
Know how PurpleHomes will help the NRIs in searching for their dream home
Real estate in India is a promising industry for profitable investments. PurpleHomes.Com is an online platform making these property investments easy for non-resident Indian (NRI) buyers by connecting them to Indian property developers. Know more about the other attributes of PurpleHomes that will help you in making the right choice when buying a new home
The Q & A Corner will address questions put forth by the residents of various cities in India, and will be answered by our panel of experts in the next edition of our PurpleHomes.Com newsletter
The entrance of my house is on East with living room in the South. The master bed room is in South East and the kitchen is in North East. Is it fine to have a bed room in South East and kitchen in the North East? Please suggest, if the direction of the rooms and the kitchen is fine according to the Vaastu Shashtra.
Mrs. P. Rajan, Bangalore
I am thinking of buying an apartment in Mumbai. Can you please suggest me as to which areas will be feasible as my budget is upto 90 lakhs?
Mr. Z. Merchant, Mumbai
I am thinking to buy a flat in Bangalore. Can you please guide as to how to find out the authenticity of a property?
Mr. R. Subramaniam, Bangalore
Hi, I have bought a two bedroom flat which has its entrance in East with living room in the North. The kitchen is in South East and the master bedroom is in South West. The other room is in the North West. Are the directions of the rooms and the kitchen fine according to Vaastu?
Mr. Asfi Pasha, Bangalore