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Property Price Trends and Forecast for Key Metro Cities, in 2017

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Property Price Trends and Forecast for Key Metro Cities

Several factors have impacted the real estate market in the country in the past one year. We examine how these will affect property prices in some of the key metropolitan regions, in 2017

Realty prices in the country, have been impacted by various factors over the past year, such as the GST bill, RERA, demonetization and the support to affordable housing. Experts point out that property prices were largely stable before November 2016 and subsequently, there has been a correction of 2-5% in the secondary market. While developers have resisted price cuts, they continue to offer attractive payment plans.

The implementation of the Real Estate Regulation Act (RERA) and consumer activism against project delays, have pushed developers to focus on completion of existing projects. Institutional investors too maintained a strong interest in financing Grade A residential projects under-construction, in 2016, helping developers to complete their existing projects.

“Implementation of the RERA and GST, a lower home loan interest rate regime and fiscal benefits for tax payers in the Union Budget, will infuse a ‘feel good factor’, which is extremely important for the revival of the industry. The prime minister has already announced a gift to home buyers in the budget segment (both, in rural and urban areas), in the form of interest subvention for home loans,” says Shishir Baijal, chairman and managing director, Knight Frank (India) Pvt Ltd.

According to Surabhi Arora, senior associate director, research, at Colliers International India, the price trends in the top metro cities, have been as follows:

Mumbai and its peripheral areas: The Mumbai residential market started 2016 on a promising note but was adversely impacted by the demonetisation drive.

The gap between buyers’ and sellers’ expectations have widened.

Market activity is likely to remain slow but the second half of the year could be more active, as the gap between buyers’ and sellers’ expectations narrows again on account of realistic pricing.

Pune: Localities adjacent to the commercial hubs of Pune in the west (Baner, Hinjewadi), south (Undri, Handewadi), south-east (Keshavnagar, Hadapsar) and east (Kharadi), were most active throughout 2016. Despite being one of the most active residential markets in 2016, the market in Pune slowed down towards the end of the year.

Residential sales will pick up in 2017 and reputed developers may launch more affordable projects.

Delhi-NCR: New launches will remain limited in both, Noida and Gurgaon.

Contrary to general perception of a significant price correction, there is anticipation that prices will largely remain stable. However, a more noticeable correction of 5%-7% in emerging micro-markets such as Noida Extension, Sector 70 to 78 in Noida, Dwarka Expressway and Golf Course Extension Road looks probable, due to the high inventory available in the secondary market.

Kolkata: The market is almost stagnant and likely to remain so. However, we may see traction in affordable and mid-segment projects.

Bengaluru: Mid-segment projects with realistic pricing, are likely to remain afloat in both, the primary and the secondary markets.

Developers will probably resist cutting prices but continue to offer subsidised payment plans and price guarantees. Prospective buyers should not delay their decision unduly, as they can negotiate realistic prices in both markets.

Chennai: Chennai’s residential market remained subdued in terms of new launches, as well as sales, as buyers’ sentiments remained weak due to a series of events in 2016. However, with cheaper home loan interest rates and increased developer focus on completion of projects, buyers’ confidence should perk up.”

Property price trend and forecast for metro cities

Metro city Price range (Rs per sq ft) (As on March 2017) Change in price per sq ft (-/+) in the last one year Change % (YoY (-/+)) / Forecast for next one year
Mumbai
South Mumbai 45,000 – 66,000 -5% Overall stable in the secondary market. Deal-based discounts will be available in both, the primary and secondary markets.
Mumbai suburbs 20,000 – 40,000 -3%
Mumbai peripheral 7,000 – 20,000 -1%
Pune (city level) 4,200 – 16,000 -4% Overall stable in the secondary market. Deal-based discounts will be available in both, the primary and secondary markets.
Delhi-NCR
Gurgaon 6,000 – 36,000 -2% Overall stable in the secondary market. Deal-based discounts will be available in both, the primary and secondary markets.
Noida 4,300 – 11,500 -2% Overall stable in the secondary market. Deal-based discounts will be available in both, the primary and secondary markets.
Kolkata (city level) 2,500 – 10,000 0% Stable
Bengaluru
Central 19,000 – 27,000 -5% Stable in localities near commercial hubs. Central and peripheral locations may see 2% to 5% correction.
Central suburbs 7,000 – 14,000 -1% to -5%
Southern peripheral 4,500 – 8,500 2%
Northern peripheral 4,000 – 8,000 -2% to -4%
Hyderabad
Central 8,000 – 15,000 5% Stable
Central suburbs 4,000 – 6,900 0% -2% to -5%
Western peripheral 3,500 – 6,500 0% Stable
Chennai
Central 20,000 – 35,000 -1% Stable
Off-central 13,000 – 25,000 -2% 1% to 3%
Western suburbs 14,000 – 18,000 5% Stable
Southern suburbs 13,000 – 17,000 2% to 4% Stable
Kochi
Eastern peripheral 3,500 – 7,500 -5% Stable
Far northern peripheral 3,300 –  5,000 0% Stable
Jaipur (city level) 3,000 – 10,200 -1% Stable

Data provided by Colliers International India     

Source: Housing.com

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 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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