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Rental rates to go up after demonetisation

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Rental rates to go up after demonetisation

The average price of a house in the main cities across India has increased by 3.6% compared to last year while rental values have grown at a faster rate of 4.9% during the same period. And in the backdrop of demonetisation of Rs 500 and Rs 1000 notes, rental rates are expected to increase over the next 12 to 18 months, says a report titled Buy vs Rent report by financial management consultants ArthaYantra Corporation.

“At ArthaYantra, we expect to see a correction in real estate prices over the next six to 12 months. Customers would hold on to their buying decisions during this period. As a result, we expect to see upward pricing pressure on rentals as customers would focus on renting out and wait to make a purchase decision,” says Nitin Vyakaranam, CEO.

The earlier editions of the report covered only eight markets that included Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. In the latest edition, four new cities have been added. These include Indore, Kochi, Jaipur and Lucknow.

The four cities included this year were found to be more affordable for buying or renting a house. However, Hyderabad and Ahmedabad were found to be just as affordable. Mumbai continues to be the most expensive city for buying or renting a house followed by Delhi.

Delhi-NCR is the second most expensive city to buy or rent a property, says the report. The Capital has seen capital prices decrease by about 22% over the last four years, while the average rental values have increased by 10.79% during the same period.

Mumbai is the most expensive city for both buying and renting residential property. Though capital prices have dropped by 0.42% compared to last year, it is still beyond the reach of a middle income households. Therefore, it is the most suitable city for renting a house.

Bengaluru leads in renting options, which has pushed rental values down by 2.11% compared to last year. Capital rates are up by 4.35%.

Kolkata’s property prices have appreciated by 10.8% over the last five years. While capital rates in the city grew by 2.34%, rental rates fell by 5.53%.

Hyderabad continues to be the most affordable metro and the second most affordable city overall for both buying and renting. It is second only to Indore in terms of home prices or rental rates and has seen an increase of 21.75% over the last four years while residential property prices have dropped by 3.35% over the same period.

Chennai saw values of properties increasing by 9.10% as compared to last year. The city continues to be the third most expensive city to buy residential property. Rental values in the city have risen by 3.83% compared to last year.

In a related development, property portal Housing.com today announced that it would be expanding its presence from the core business of buying and selling housing to home rentals as well. Last year, Housing.com had taken a strategic decision to close rentals. It has now started preparing for the re-entry and plans to launch home rentals early next year.

While the company had planned to relaunch rentals towards end of next year, the government’s recent demonetisation move has led to an advancement in the plans. Demonetisation is expected to cause a slowdown in the home buying and selling segment, while it is likely to spur growth in the home rentals space, making it an opportune time to relaunch the rentals business, the company said in a statement.

“Although we had planned to restart rentals around end of 2017, but the recent demonetisation move has led us to advance our plans. We have started the preparations, and we look forward to an aggressive launch early next year,” says Jason Kothari, chief executive officer, Housing.com.

Source: hindustantimes.

Chennai Real Estate News

Home Buyers Lose The Agents And Opt For Digital Route

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With passing time digital media is becoming the preferable choice of the buyers as well as the developers. Developers are going to online platforms and social media to reach out to their target audience and also the buyers are increasingly going online for searching homes. This makes digital media a mainstream platform to advertise in real estate industry.

C Shekar Reddy, Immediate Past President of CREDAI explained why digital platforms are becoming more popular in the real estate. He said, “IT employees, NRIs form the majority of home buyers today who are tech savvy and use their smart phones for searching homes. Also most of the home buyers today are being influenced by social media while purchasing a home or property. As a result builders and realtors are putting utmost focus on digital platforms to reach out to potential consumers”.

The growing trend can be observed by the way the builders are spending on online platforms. It is far more than traditional marketing and publicity avenues unlike past. Builders have also become conscious of their presence and reputation on property portals and other online platforms. They are taking each step carefully so they can make the right connect with their buyers.

K Sreedhar Reddy of Telangana Real Estate Developers Association explained the growing importance of digital media, said, “Digital platforms and social media provide builders a chance to reach to the consumers in a more focused way. Also they can track the efficiency of strategy online. The cost of acquiring customers through online and social media is also lesser when compared to other advertising channels. Therefore digital platforms are becoming popular in realty sector”.

As per the inside sources, this trend is not only visible in the metros like Mumbai, Chennai or Hyderabad but also in Tier II & III cities. Customers as well as developers, both are relying more and more on digital platforms.

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Ahmedabad Real Estate News

CREDAI New India Summit

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credai new india summit

CREDAI is the apex body that represents over 12,000 private Real Estate developers spread across 23 state-level chapters and 177 cities in India. Established in 1999, CREDAI has worked hard to make the industry more organized and progressive by networking closely with Government representatives, policymakers, investors, finance companies, consumers and real estate professionals.

The New India Summit is another such effort from CREDAI to direct focus on Tier II, III and IV cities and develop them to be the forerunners of success. CREDAI New India Summit is all set to unleash the potential of an emerging India. This one small step has the power to give way to a new India.

For the longest time, our leaders and foresighted influencers have put all their time and energy in developing the Tier I cities namely Bengaluru, Mumbai, Delhi, Pune, Ahmedabad, Hyderabad, Chennai and Kolkata. No doubt, these cities have really changed the way people look at India today. These cities are the epitome of advanced technology and modern culture. But they also face challenges due to the grave pressure of urbanization. Decreasing quality of life, increasing the cost of living, overpopulation and unemployment, increase in transit time and traffic congestion, expensive housing, hospitality, education and healthcare facilities are some of the issues that all the Tier I cities face today.

According to a report, smaller cities are developing 79% faster as compared to metros with just 21%. Our of the 12,000 CREDAI members, 76.77% of them are from Tier II, III and IV cities. Looking at the scenario, it is only innate to divert the energies in developing the areas which still have potential. Thus, offering a good quality life to people in those cities itself and taking the pressure off of the Tier I cities.

The Forbes Magazine has said small cities are India’s emerging business locations. The government has also been putting dedicated efforts into schemes that directly benefit the growth of Tier II, III and IV cities. Sustainable economic development, improving infrastructure and transportation, increasing employment opportunities, and introducing technologies for rapid urbanization are some of the prime agendas that the government has been taking actions on.

The CREDAI New India Summit will take place on the 9th and 10th November 2017 in Nagpur, Maharashtra.

Also Read: FS Realty Bags The 9th Realty Plus Excellence Awards (North) 2017

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Ahmedabad Real Estate News

Tata Value Homes Launches “Offer Of The Century” With 99 Hours Flash Sale on Affordable Homes

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Mumbai, Maharashtra, India

Tata Value Homes – a 100 % subsidiary of Tata Housing – one of the leading real estate development companies in India, today announced the launch of ‘99 hours flash sale’ on Tata Value Homes across India. Through this offer, Tata Value Homes will enable customers to own their dream home with 99 percent funding by select banks. The scheme is applicable on the first 99 units across the projects and for a limited time frame of 99 hours starting from 2nd November to 6th November 2017.

Mr Rajeeb Dash, Head – Corporate Marketing, Tata Housing, said, “Tata Value Homes pioneered affordable housing in India and continues to introduce innovative offers to encourage fence-sitting buyers to take a first step towards owning a home. Customers have always been central to our business and this unique 99 hours flash sale is tailored to connect aspirers with their perfect residence from our diverse portfolio of projects.”

To avail the scheme, customers will have to log on to www.tatavaluehomes.com between 23rd October to 1st November and register using basic details. Post registration, customers can visit the site between 2nd November to 6th November 2017 to check for loan availability within 30 minutes and walk away with the allotment of the unit with a loan of 99% of the agreement value.

As the leading provider of homes under affordable housing segment, Tata Value Homes develops affordable housing that goes beyond merely providing a house, to one with a ‘neighbourhood and community’. The first 99 customers will have the convenience to buy a home from the Tata Value Homes projects such as New Haven, Bahadurgarh; New Haven Compact, Ahmedabad; Shubh Griha Ahmedabad; New Haven Boisar I & II; La Montana, Talegaon; New Haven Bengaluru, Santorini, Chennai; New Haven Ribbon Walk Chennai.

About Tata Value Homes Limited

Tata Value Homes Limited is 100% subsidiary of Tata Housing Development Company Limited, established in 2010, to exclusively focus on value and affordable housing. The vision of Tata Value Homes Limited is to be the largest home provider in India. Tata Value Homes Limited has introduced two pan-India brands – Shubh Griha (Value Homes) and New Haven (Affordable Homes). Tata Value Homes Limited is also developing a Mediterranean themed project “La Montana” near Talegaon, Pune, while Shubh Griha is currently being developed in Boisar & Vasind near Mumbai and Ahmedabad, and New Haven is currently being developed at  Bosiar,  Ahmedabad and Bengaluru. Tata Value Homes Limited today has projects in Mumbai, NCR, Ahmedabad, Bengaluru,  Chennai and Pune.

About Tata Housing

Tata Housing is a closely held public limited company and a subsidiary of Tata Sons. It is the first corporate to pioneer the concept of real estate development in India. It is widely recognized for quality construction, ethical and transparent business practices and timely delivery of properties. It has a pan-India and international presence with demonstrated capabilities in Construction, Engineering, Commercial / IT parks, Housing and Township development. It is known for international standards of design and green sustainable developments.

Also Read: Over 2 Crore Affordable Houses To Come Up Over Next Three Years

 

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