Is real estate still a man’s domain?

Is real estate still a man’s domain? – Realsta Infratech

Over the years, real estate has traditionally been a man’s domain. It was the men in the family who decided which house to buy or rent. But just like in any other field, women are making their presence felt in the real estate world too. Single as well as married women are realising the importance of owning a property in their name. It is for this reason that, just like their male counterparts, women closely follow news and updates on the real estate scenario in their homeland. Women are gradually emerging in the forefront as they are making worthwhile contributions towards buying and selling homes. The last few years have witnessed the emergence of more and more female real estate agents. Here are a few reasons for the growing success of women in real estate:

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Women listen carefully

It has been proven time and again that men and women communicate differently. Women are known to be better listeners than men. This works to their advantage in a field like real estate because agent needs to listen carefully to their potential buyer’s needs. Only when you understand what the buyer is looking for, will you be able to make a successful sale.

Women are more detail oriented

This goes hand-in-hand with the first point. When you listen carefully to what your buyer is saying, you are able to pick on the details that are most important to him. For example, if the buyer addresses his concern about the neighbourhood not being child-friendly, you can pick on his concern and address the issue by providing a solution. When the buyer is assured that his concern has been successfully taken care of, he is more likely to consider buying the house.

Women understand families and children better

Women are naturally more nurturing than their male counterparts, and this gives them an edge in a field like real estate. For example, if a family consisting of a mother, father, and two young children are looking to buy a house, they’ll opt for friendly neighbourhoods with lots of children and a good school nearby. Instead of showing them around 10 houses that may or may not meet their criteria, women are more likely to show them three or four houses that they’ll take a liking to immediately.

Women inspire trust

Buying a house is a huge emotional and financial commitment. It’s not like you enter a shop to buy a laptop, have a 10 minute conversation with the salesperson and walk out with your purchase. You need to build a relationship of trust and understanding with your agent and men and women both find it easier to establish a connection with female agents.

There has been a paradigm shift in the job positions that were originally reserved for men. While both genders have their positive attributes, one cannot ignore the fact that women are gradually making their presence felt in the real estate world.


A real estate lesson from the Unitech case

A real estate lesson from the Unitech case – Realsta Infratech

The recent arrest of Unitech promoters was the result of homebuyers coming together and fighting the case tooth and nail. Here’s what you can learn from them

The large number of court cases filed by aggrieved homebuyers against real estate developers shows the sorry state of affairs. It seems there aren’t many developers who have not defaulted on promises or not broken rules. However, the recent arrest of managing directors of Unitech for not delivering a housing project on time, can be considered a big achievement for the homebuyers who are fighting the case against the developer. Not only the arrests, the Unitech case has witnessed many other landmark decisions as well.

In June 2015, the National Consumer Disputes Redressal Commission (NCDRC) had ordered the company to pay a penalty of 12% per annum for delay in delivery of flats, which itself was a path-breaking order. Unitech approached Supreme Court against the NCDRC order in August 2015, but the apex court upheld the decision in 2016.

There were many cases filed by homebuyers of different housing projects of Unitech. However, the above order was delivered under the case filed by group of homebuyers of the project named ‘Vistas’ by Unitech in Gurgaon. The project was launched in 2009; and initially the delivery was promised in December 2012. However, those who bought units in the project in 2010, were given a delivery date of 36 months from the signing of the builder’s buyer agreement—which means the apartments were to be delivered in 2013. However, “Out of five towers with about 1,300 apartments under the project, structure of only two towers has been constructed so far. For rest of the towers, even the foundation work has not been done,” said Rajendra Kumar Chopra, who has an apartment in the Vistas project. This is not an isolated case. Many other housing projects throughout the country are way behind schedule. And many homebuyers, like buyers of apartments in Vistas, are fighting cases against their developers for various reasons. However, there are also many who don’t know how to proceed against errant developers. Here’s a look at what the Unitech homebuyers did right to reach this stage in the dispute against their developer.

Be proactive

Mostly, even if the developers are at fault, homebuyers hesitate to take legal action. This is primarily because of the notion that builders have money and muscle power, and one should stay away from getting into trouble with them.

This belief is strengthened when one sees bouncers and gunmen as part of some the developers’ entourage, especially in the National Capital Region. There have been instances of clashes between protesting homebuyers and security personnel of developers. Builders can also afford to appoint big lawyers to defend them in court. Even in case of Unitech, lawyers like P. Chidambaram and Kapil Sibal (both former Union cabinet ministers in the earlier government) have represented Unitech.

But in this case, “Proactive homebuyers went ahead and filed the cases,” said Pawan Shree Agrawal, the advocate who represented Unitech homebuyers in one of the cases. “They also kept pursuing the case, even when the decision of the consumer court was challenged by the developer in the Supreme Court,” added Agrawal.

When you notice any discrepancy between what the developer has committed and the real situation “bring it to the notice of the developer by agitating,” said Harsh Pathak, a practicing advocate at the Supreme Court. “If a builder does not pay heed to your objections, take legal recourse immediately by sending a legal notice, followed by filing a case,” he added.

Group Action

The Unitech homebuyers formed a group and approached the authorities together. Many other homebuyers, who were not the part of initial group, joined in due course. “A large number of complainants helps push the case,” said Agrawal.

In some cases, lawyers representing developers objected and requested the court to dismiss the cases, saying that homebuyers cannot form a group to fight the case as a single entity. However, “Recently, in M/s Amrapali Sapphire Developer Pvt. Ltd versus M/s Amrapali Sapphire Flat Buyers Welfare Association, the Hon’ble Supreme Court of India passed an order inter alia allowing allottees to form an association and directly approach NCDRC on the basis of aggregate value of individual sale consideration, bypassing the usual hierarchy of forums,” said Amit Kolekar, associate partner, Rajani Associates, a Mumbai-based law firm. Based on this, Kolekar’s advice to homebuyers is to form an association and then file a case.

However, Chopra is fighting the case as an individual. “The group of Unitech homebuyers were demanding return of the money with compensation, whereas I want possession of the house along with compensation,” he said. At present, his case is in NCDRC, which incudes demand for compensation, at the rate of 24% per annum; for mental agony, and loss of rental and legal expenses. Chopra booked the flat in Vistas in 2010 and possession was promised in 2013. By 2012 he made 95% payment to Unitech. “I took loan to finance the house, and so far I have paid lakhs of rupees in interest,” said Chopra.

Proper documentation

In their case, Unitech homebuyers allege that the money received from them for the particular project was diverted elsewhere by the developer. The accusation was backed by documents of payment received by the developer, versus the status of construction, which did not match the money collected. Taking cognizance of this, the Economic Offence Wing (EOW) of Delhi Police booked the developer under a case of cheating, said Agrawal.

So, if you are in a similar situation, gather all the facts and documents starting from the advertisement brochures, and down to the booking receipts, all details of all payments, any letter sent by the developer, signed agreements, emails exchanged, photographs, and anything that can strengthen your case. These documents help in drafting a strong case.

Approach the Economic offences wing

The EOW is a special cell of the police force in most places, which “deals with cases related to deviations in financial transactions,” said Pathak. EOW’s expertise in this field means that cases get processed faster. Unitech homebuyers formed a group and filed a case jointly, which was referred to the EOW. But this does not happen with all the cases.

For example, “Homebuyers in Mumbai can lodge a complaint with the EOW, against respective unscrupulous developers for violation of regulations on economic or financial operations falling within the category of socioeconomic offences and involving money and/or assets having value of Rs3 crore and more. These prerequisites may differ in other states of India,” said Kolekar.

The Long road

While decisions have so far been in favour of Unitech homebuyers, the case has been going on for long. They are still waiting for all their money to be returned along with the appropriate amount of compensation.

However, given that a real estate regulator is set to take charge soon, many homebuyers are hoping that they will not have to undergo the legal process that Unitech homebuyers have had to suffer. “There is more clarity in laws under the Real Estate (Regulation and Development) Act compared to the current situation. I believe this will help homebuyers a lot,” said Agrawal.

Since under-construction projects will also come under the purview of the real estate regulator, faster respite can be expected.

The Act also stipulates that developers should have all the required approvals before launching the projects. “The Unitech case clearly reflects the nexus between the authority and the developer; the authority gave a freehand to construct the building even when the developer did not have the proper permissions that were required,” said Chopra. Besides that, with mandatory obligation under RERA to open an escrow account for each project, diversion of fund—which is typically the main cause of problem—can be checked.

Typically, homebuyers approach the developers as individuals and they usually have lesser bargaining power because the developer faces them as a unified and strong entity. But when things go wrong, the homebuyers need to be able to organise themselves if they want to successfully battle and organisation. If there is one lesson that the dissatisfied buyers of apartments in the long-delayed Vistas project have to teach us, this is it.

Realty stocks surge up to 85% this year; is there more steam left in them?

Realty stocks surge up to 85% this year; is there more steam left in them?

After having been beaten down for a long spell, real estate stocks are roaring on Dalal Street this year like there will be no tomorrow.

On a year-to-date basis, the Nifty Realty index has already surged 37 per cent with Delta CorpBSE 0.53 % surging nearly 85 per cent, followed by Sobha (up 62.83 per cent), UnitechBSE -1.23 % (up 46 per cent) and Godrej PropertiesBSE 1.26 % (up 44 per cent).

Other realty majors such as DLF, Prestige EstatesBSE 2.69 %, Oberoi RealtyBSE – and Indiabulls Real Estate have also surged between 25 per cent and 35 per cent during January 1 to April 5 this year.

With the government clearing the final hurdle for GST implementation, which is expected to be a shot in the arm for the realty sector, and the Reserve Bank of India allowing banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the outlook for the realty counter has improved further.

But how much can these stocks rise really? With the demand situation still bleak, what’s really driving these stocks?

Government push: The Centre as well as the states have taken several initiatives to push revival of the realty sector. The Smart City Project with a plan to build 100 smart cities is a prime opportunity for the real estate firms. Market experts believe game-changing events such as RERA and GST also augur well for the sector.

“The government thrust on low-cost housing, infrastructure status to affordable housing and high growth visibility have mainly improved sentiments,” said Ajay Jaiswal, President – Strategies & Head of Research, Stewart & Mackertich.

Target 2020: The Indian real estate market is expected to touch $180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country’s gross domestic product (GDP). Jimeet Modi, CEO, SAMCO Securities, said: “Falling inflation and lower interest rates will help the market size of this sector which is expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.”

More foreign investment: Market experts say the real estate sector is expected to draw more investment from non-resident Indians (NRIs) in both short term as well as long term. Bangalore is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Price volume breakout: Explaining the technical behaviour of the realty stocks, Chandan Taparia of Motilal Oswal said, “Most of the real estate stocks are crossing their hurdles with spurt in trading volume. Thus, they are attracting traders as well as investors to these counters to grab the immediate opportunity.

Strong PE interest: Private equity investment in real estate increased 26 per cent to a nine-year high of nearly Rs 40,000 crore ($6.01 billion) in 2016. The domestic realty sector has witnessed high growth in recent times with a rise in demand for office as well as residential spaces. According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received foreign direct investment (FDI) to the tune of $24.28 billion between April, 2000 and December, 2016.

Medium-term outlook good 

Most market experts remain bullish on the real estate stocks even after their recent rally. They believe the rally is likely to continue in the medium-to-long term. “As one of the sectoral themes, the long-term story for real estate is still intact. On the valuation front, while stocks are not cheap, looking at the project pipeline, they are not expensive either. After the demonetisation drive, the market is expected to see a lumpy phase, but well-capitalised real estate companies with decent pedigree of management will do well, said Modi of SAMCO Securities.

Omkar Tanksale, analyst fundamental, GEPL Capital sees further upside in real estate stocks in the long run. “GST will be a boon for the sector,” he said.

 

How realty and retail investors will gain from Real Estate Investment Trusts

How realty and retail investors will gain from Real Estate Investment Trusts

The Reserve Bank of India’s move to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) is being viewed by industry experts as a huge positive for the real estate sector.

The Reserve Bank of India’s move to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) is being viewed by industry experts as a huge positive for the real estate sector. According to them, the involvement of banks will help commercial realty by bringing in much-needed liquidity, which will set the momentum going for REIT, which has not taken off yet despite having huge potential.

“While clarity from the RBI will be forthcoming over the next few months, the move to allow banks to invest up to 20% of their Net-Owned Funds is a very positive move for both the eventual success of REITs as well as for banks,” says Gagan Randev, National Director, Capital Markets & Investment Services, Colliers International India.

According to him, banks will have an opportunity to diversify their investment portfolios and participate in a new asset class in a very efficient manner. Banks anyways have superior insights on trends of interest rates and yield curves and this would allow them to up their portfolio returns. Now the future of REITs would get a big boost by getting a new investor class with deep pockets and allow the advent of domestic investors along with the typical foreign funds which are attracted to REITs.

Ganesh Vasudevan, CEO, Indiaproperty.com, is also of the view that the RBI’s move to allow banks to invest in REITs as well as InvITs would benefit all the parties involved in the real estate sector. “Developers would get liquidity, banks would get an alternate asset class to invest, and common man would now be able to invest in high ticket commercial real estate. Since interest rates are falling, this move would give banks an alternate, yet less-risky vehicle to park their funds,” he says.

In India we have close to 1.73 billion sq ft commercial real estate (CRE) across top cities. Most of the times for an end user, investing in commercial real estate is not feasible as it is not only expensive but also involves high risk. Also, commercial properties available for sale to retail investors are very few. So they are limited to investing in residential real estate only. With REITs now they will be able to make small ticket investments in CRE, the same way they invest in mutual funds. Many more consumers would be able to participate.
REIT is based on returns from rent yielding completed commercial property and has globally proven to be a less risky investment. Investors would now be able to get periodic returns by investing in a safe and moderate yielding investment trust. Globally traded REITs have given better returns to investors compared to stock market investments.
“With more institutional investors like banks investing in REITs and InvITs, over the years it is expected that the supply constraint for CRE in big cities would ease out. Since liquidity in the sector would increase, supply is also expected to increase. This increase in supply would help end consumers as they will get access to more property at prime locations to rent. Overall REITs would help boost the realty industry in India by making more funds available for the sector,” Vasudevan says.

According to a JLL India report, retail investors are already excited at the new and easier real estate investment opportunity that REITs would open up for them. However, clarity on how big or small the ticket sizes turn out to be for them would emerge only after the first two or three REITs have been listed.

It says a smooth ride after the first REIT listing, which is expected to take place in the first half this year, will help retail investors become comfortable with this new investment avenue. However, it would be necessary to educate first-time investors about this platform, and sustained efforts to create awareness around REITs would be required.

Licensing must go, else real estate will be an over-regulated sector: DLF

Licensing must go, else real estate will be an over-regulated sector: DLF

“Any regulation in any sector is well intentioned. With all due respect, any regulation is better than no regulation but subsequently licensing needs to go otherwise it would be an over-regulated sector”, Rajeev Talwar, Group ED, DLF told CNBC-TV18.

Real Estate Regulatory Authority (RERA) act is expected to be implemented in Maharashtra by May 1, 2017. Rajeev Talwar, Group ED, DLF spoke about how much could the organised players in the space stand to benefit by this act.

He said the industry has taken up RERA very positively.

“Any regulation in any sector is well intentioned. With all due respect, any regulation is better than no regulation but subsequently licensing needs to go otherwise it would be an over-regulated sector”, he further added.

Below is the verbatim transcript of Rajeev Talwar’s interview to Latha Venkatesh, Sonia Shenoy and Guest Editor Adrian Mowat on CNBC-TV18.

Sonia: I just wanted to open the discussion by asking you what your view is on RERA once it get implemented post the May 1st? There will be a lot of transparency in execution etc. but there are some onerous announcements, clauses that have come in on the back of RERA, so tell us what is your view on how the industry could take it as a whole?

A: I think the industry has taken up as a very positive measure. Any regulation in any sector is probably well intentioned. But we were of course quite keen that instead of having such an onerous regulation, so many clauses including imprisonment I think a simple one line order if the government had given that you cannot sell any residential apartment in view of our past experienced of our decade without completing it first or at least completing the structure, I think that would have taken care of it. But with all due humility and respect, any regulation is better than no regulation, but subsequently licensing needs to go, otherwise it would be an over regulated sector.

Adrian: How do you see this new regulation changing your business model?

A: I hope you were in touch with DLF on various other counts and we have decided as a firm for the last four years when we saw this coming forth that we would only be selling completed apartments. So, over the last four years, we have delivered or tried to deliver all our customer commitments.

Hopefully, by the end of this calendar year, all our customer commitments would be met and yet we would be having readymade stock to sell as well as ready to be occupied immediately worth about more than USD 2 billion with us.

In all, we all will change to a model which will not merely promise on paper and then find the route a little cumbersome, but with RERA coming in and laying down stipulating that you can only announce a project after all clearances have been obtained, I am certain that there would be a year to two-years gap between any new launches because all builders will have to take all approvals, all clearances, land title within those two years would be very clear. So I think in all we should see a delay in some launches but so much a better deal for the customer and the buyer.

Adrian: Business direction has meant that some operating cash flow, free cash flows being negative for number of years. Do you think that now the adjustments being made that the real estate industry can move to a better free cash flow position?

A: Free cash flow I think in the immediate near future may be a problem and you are seeing many large companies and established companies facing a problem. But, overall yes with realisations getting better when apartments have all the clearances, their construction schedules would be online and plus with better value realisation of completed apartments, I am sure that lots of companies will change their business model and are able to adapt to new regulation will find it easier in the future, but I am not so sure in the next year or three four quarters.

Latha: I just want to take that point forward, RERA becomes a reality in Maharashtra on the May 1, now it would take a while before they are staffed, they hit the ground and some time before consumers start approaching them, so do you think immediately the real estate companies in Mumbai or in Maharashtra just be rushing to finish, initially will it be a crunch situation where they are only trying to meet old deadlines?

A: I think that was the intention of RERA itself that customer commitments must be met, they must be honoured and perhaps that is where the government, the courts and people at large including the media were finding it a problem to cope up with multiple delays in multiple projects all over the country. I am sure that it would be in good state for all real estate companies to finish their projects, to complete their customer commitments and then go in for fresh new projects. So, I think there will be two effects – one that yes customer commitments would be met, but the new system would also entail delays. So, I think in that meanwhile anyone who has a completed flat or a completed apartment will get a better value for it, so I think they would then stand to gain in the short term too.

Adrian: We have had nearly a six year downturn in the real estate industry, if we are looking at things like pre-sales. Do you think we have now got a very advantageous combination of events here, so we have got a new regulation which should improve the buyers’ confidence in the real estate product combined with the decline in mortgage rates that looks like a very attractive combination particularly considering we have been let us call it a six year bear market in residential real estate?

A: I am so glad that you deem it so yes, I think there are fortuitous circumstances taking place right now that first of all greater transparency, greater accountability. Number two- mortgage rates coming down, loan rates coming down and I think a very good direction by the government. The largest segment of housing shortage in this country is of what we now call affordable housing, 30 square meters to 60 square meters and a large number of incentives being given to them. There are still some polices tweaking which needs to be in place and no lesser than the Prime Minister’s Office (PMO) is on the task.

In India if you have seen it over a period of time that policy announcements once made measures taken need time to get fine-tuned, but eventually make a big difference whether it was the telecom sector, which began of in the mid-80s, whether it was the aviation sector which began off in the 90s, early 90s and now hopefully the direction being given by the current government on affordable housing will get tweaked over a period of next two to three years just like real estate investment trust (REITs) did initially and hopefully I think that would mean a big quantum jump in the volumes of work being undertaken by the construction and real estate industry. But more than that I think it will throw up a lot of people into this business afresh. That means a great jump for employment.

Sonia: Have we seen any improvement in demand at all because the NCR market is still extremely sluggish and when we spoke last during your previous quarter earnings you did mentioned that it will take at least a couple of more quarters before you see any recovery in demand, what is the status as of now?

A: I don’t think we could link demand with this oversupply. There is an oversupply it takes time to get absorbed just like the commercial sector did after the slowdown in 2008. It has taken almost seven years after that for the oversupply to get absorbed.

In the residential sector because of loan rates coming down, mortgage rates coming down, I think when Adrian was giving the example of Mexico he touched on a very critical point which is mortgage rates and the tenure of mortgages, we will come to that a little later. But, I think this oversupply will get absorbed on better earnings by the other industries in general in the economy and that will add fillip with lower interest rates to getting this oversupply in the residential segment absorbed.

I think that should take about three to four quarters, but within that period I think a newer regime would come into place, newer emphasis on affordable housing, more tweaking of policy on issues like floor area ratio (FAR), floor space index (FSI), density, standardised plans a larger number of projects being launched, public-private partnership on government lands and PSU lands which is public sector enterprises and public sector undertakings on those lands I think all that will mean a huge jump in the coming five years.

Latha: Your best place to advice audience on this entire Pradhan Mantri Awas Yojana itself, the affordable housing scheme. Who is likely to benefit most? If you were a betting man would you bet on cement, would you bet on housing finance companies, would you bet on real estate?

A: I think real estate, yes, how many of them would go public first of all and what kind of partnerships shape out, but of course the companies which supply the basic raw materials whether it is cement, steel, ceramics and of course housing finance companies they would do rather well.

Realty queries: Is it the right time to buy property as an investment?

Realty queries: Is it the right time to buy property as an investment?

I am planning to invest in real estate again, wanted to know is it better to invest in residential or commercial property?

It is only logical to assume that you want to invest for better returns. Real estate has been passing through turmoil for the last few years. The pain is expected to continue for next few years as well. Housing properties have been giving a rental return of barely sub-3% annually. So, unless your property price appreciation isn’t good enough to take it to a minimum 10% per year, you don’t have a case to buy a residential asset.

On the other side, office properties have been in a decent demand with the economic performance of the country faring well. A rental return of 9% to 10% per year is a fair expectation from an office property and a 3% to 4% price appreciation will only be a proverbial icing on the cake.So, for now, and for a few years to come, an investment in a commercial asset will far outweigh a residential one.

Indiabulls Real Estate extends gain after closure of buyback offer

Indiabulls Real Estate extends gain after closure of buyback offer

The stock soared 8% to Rs 98.60 in late noon trade, extending its past two days 3% gain on the BSE,

has soared 8% to Rs 98.60 in late noon deals, extending its two-session long gains of 3% on the BSE, after the company announced closure of share offer on April 10, 2017.

“Since the company has bought back 34.05 million equity shares utilizing a total of Rs 272 crore (excluding transaction costs),  which represents 50.38% of the maximum size, and is in excess of minimum size, the board decided to make an early closure of the  with effect from April 10, 2017,” said in a statement.
The equity shares were bought back at an average price of Rs 79.91 per share, it added.

Post offer, the promoters’ stake in increased to 50.92% from 47.50% earlier. While, public shareholding declined to 49.08% from 52.50, the company said.

In November last year, the board of real estate developer had approved buy back of shares at a price not exceeding Rs 90 per share, after the market price of company sharply from Rs 94 on October 10, 2016 to Rs 60.45 on November 21, 2016.

The company had said the buy-back will make the balance sheet of the Company leaner by reduction in the overall capital employed in its business, which in turn will lead to higher earnings per share and enhanced return on equity.

At 02:46 pm; the stock was up 7% at Rs 97.50 on BSE against 0.55% decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled 33.89 million shares changed hands on the BSE and NSE so far.

Delhi Metro ventures into real estate, to sell over 500 flats soon

Delhi Metro ventures into real estate, to sell over 500 flats soon

Delhi Metro Rail Corporation is all set to venture into the residential real estate market and will soon put up over 500 flats, in the Rs60 lakh to Rs1 crore range, for sale

Around 460 flats would be built in Janakpuri while 90 in Okhla, tentatively within two years. Photo: Priyanka Parashar/Mint

New Delhi: The Delhi Metro Rail Corporation is all set to venture into the residential real estate market and will soon put up over 500 flats, in the Rs60 lakh to Rs1 crore range, for sale.

A senior Delhi Metro Rail Corporation (DMRC) official said the Metro has initiated the process on this front and people will be able to book a flat, which will come up in Janakpuri and Okhla area, in a month or two.

  • Around 460 flats would be built in Janakpuri while 90 in Okhla, tentatively within two years.
  • Plots have been identified, however, construction work has not yet started.
  • Metro will soon make a formal announcement of the project.

The official said DMRC will follow the model of Delhi Development Authority (DDA) in selling the apartments, which essentially means allotment will be done through a lottery.

Fifteen percent of the flats, which will be a mix of 2- BHK and 3-BHK, would be reserved for the economically weaker section, metro said, adding that the brochures are likely to be out within a month.

This will be the metro’s maiden foray into the residential real estate market. It is already into property development and also has a number of staff quarters.

Real estate sector on a revival mode, what homebuyers should keep in mind

Real estate sector on a revival mode, what homebuyers should keep in mind

With RERA implementation around the corner and many pro-consumers policy announcements, the real estate sector is hinting towards a rebound.

Slowdown or recovering? These are the questions that play on an investors mind when he steps out in the market for a property investment. With RERA implementation around the corner and many pro-consumers policy announcements, the real estate sector is hinting towards a rebound. The residential real estate sector is gradually recovering from a prolonged slowdown, especially after the last year’s demonetisation move, experts said.

According to property consultant JLL India, primary sales by reputed developers after the demonitisation announcement were less affected, the secondary sales market definitely took a major hit and saw a 30-40 per cent decline. However, there is a gradual return of sentiment and the primary sales market is beginning to look healthier again.

“The level of revival is certainly not spectacular, but inquiries from genuine buyers are translating into actual sales when it comes to competitively-priced projects by good developers in good locations. Among pure investors, there is now a realization that prices will not go down further and that this is a good time to make investments and book decent future profits. They are aware that a minimum investment horizon of 4-6 years is essential – but these are definitely serious investors and not short-term speculators,” Ashwinder Raj Singh, CEO – residential services, JLL India said.

What factors are working in favour of the real estate sector? There is a general awareness that prices have bottomed out and that the schemes and incentives developers are offering provide a sound rationale for buying or investing now. Along with this, there is an adequate supply of ready-to-move options for the more cautious and risk-averse investors. Also, implementation of RERA (hopefully from May 1), will reinstate confidence among buyers and investors as it safeguards them from errant developers.

Sales in new projects – especially those with ready-to-move options – have picked up, but not spectacularly so. “Whilst there was a slowdown in sales post the demonetization, the activity has still not picked up to desired levels currently as buyers, especially HNI investors, are currently on the look-out for ‘good value’ deals because they know that many local developers are facing cash-flow problems. Hence, many of these developers are offering package deals that include waivers of fees and charges, add-ons in the form of parking, club membership, etc. and even very favourable payment terms that work out to an attractive discount to current quoted prices, which have been largely stable since the last year. However, where developers recently launched projects, keeping in mind the genuine demand from end-users, such as affordable sizes and ticket prices, the sales momentum has been good. Most of the developers are now earnestly looking at catering to the affordable housing segment as the recent government sops have made the segment attractive,” Siddhart Goel, Sr. director, research services, India, Cushman & Wakefield said.

In the current market scenario, homebuyers should exercise caution and go for builder/developers who have a verifiable track record for on-time project completions. They should look at the commitment/capability of developers to complete their existing projects in addition to the pricing offers during their decision-making process. Besides this, one should ensure a waterproof sales agreement which clearly outlines what you are buying and protects your interests at all levels. This is especially important if you are investing in an under-construction project.

And finally, as JLL’s Ashwinder Raj Singh puts it, “Be aware that there is a lot of supply on the market, so your chances of finding the right product at the right price and in the right location are very high right now. Do not compromise on your expectations.”